Document:

Exhibit 10.13

 

[*] 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.

 

EXECUTION COPY

 

 

MASTER INDUSTRIAL AGREEMENT

 

by and among

 

CNH Industrial N.V., IVECO S.p.A,

 

And

 

NIKOLA Corporation

 

Dated as of September 3, 2019

 

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
Article I   Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1.
    	
Definitions
    	
1
    
	
Section 1.2.
    	
Interpretation and   Rules of Construction
    	
5
    
	
 
    	
 
    	
 
    
	
Article II   Contribution in Kind
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.1.
    	
General
    	
5
    
	
Section 2.2.
    	
S-Way Platform and   Product Sharing
    	
7
    
	
Section 2.3.
    	
Provision of Technical   Assistance Services
    	
8
    
	
Section 2.4.
    	
[*]
    	
9
    
	
Section 2.5.
    	
Daily Program
    	
9
    
	
Section 2.6.
    	
Approval of Specific   Programs
    	
9
    
	
 
    	
 
    	
 
    
	
Article III   Establishment of the Steering Committees; Tasks and Responsibilities of the   Steering Committee
    	
9
    
	
 
    	
 
    	
 
    
	
Section 3.1.
    	
Establishment of the   Steering Committee
    	
9
    
	
Section 3.2.
    	
Purpose
    	
9
    
	
Section 3.3.
    	
Tasks and   Responsibilities of Steering Committee
    	
9
    
	
Section 3.4.
    	
Sub-Committees
    	
10
    
	
Section 3.5.
    	
Initial Steering   Committee Members
    	
10
    
	
Section 3.6.
    	
Replacement; Vacancies
    	
10
    
	
 
    	
 
    	
 
    
	
Article IV   Meetings, Quorum and Resolutions of the Steering Committee
    	
10
    
	
 
    	
 
    	
 
    
	
Section 4.1.
    	
Meeting Schedule
    	
10
    
	
Section 4.2.
    	
Invitation Notice
    	
10
    
	
Section 4.3.
    	
Quorum
    	
11
    
	
Section 4.4.
    	
Voting Rights;   Resolutions
    	
11
    
	
Section 4.5.
    	
Failure of the Steering   Committee Members to Decide Unanimously
    	
11
    
	
Section 4.6.
    	
Conciliation Committee
    	
11
    
	
Section 4.7.
    	
Arbitration
    	
11
    
	
Section 4.8.
    	
Resolutions, Decisions   and Minutes
    	
12
    
	
 
    	
 
    	
 
    
	
Article V Binding   Effect of Steering Committee Decisions and Resolutions
    	
13
    
	
 
    	
 
    	
 
    
	
Section 5.1.
    	
Nikola BoD, CNHI BoD   and/or Iveco BoD Rules of Procedure
    	
13
    
	
Section 5.2.
    	
Instructions to Adhere
    	
13
    

 

i

 

	
Section 5.3.
    	
Binding Effect
    	
13
    
	
 
    	
 
    	
 
    
	
Article VI Term   and Termination
    	
13
    
	
 
    	
 
    	
 
    
	
Section 6.1.
    	
Term
    	
13
    
	
Section 6.2.
    	
Termination by Either   Party
    	
13
    
	
Section 6.3.
    	
Effect of Termination
    	
14
    
	
 
    	
 
    	
 
    
	
Article VII   Representations and Warranties
    	
14
    
	
 
    	
 
    	
 
    
	
Section 7.1.
    	
Representations and   Warranties
    	
14
    
	
Section 7.2.
    	
Disclaimer of   Warranties
    	
15
    
	
 
    	
 
    	
 
    
	
Article VIII Confidentiality   and Data
    	
15
    
	
 
    	
 
    	
 
    
	
Section 8.1.
    	
Confidential   Information
    	
15
    
	
Section 8.2.
    	
Permitted Use;   Disclosures
    	
16
    
	
Section 8.3.
    	
Data
    	
17
    
	
Section 8.4.
    	
Information Not Deemed   Confidential
    	
17
    
	
Section 8.5.
    	
Required Disclosures;   Notice
    	
17
    
	
Section 8.6.
    	
No Implied Rights
    	
18
    
	
Section 8.7.
    	
Injunctive Relief
    	
18
    
	
Section 8.8.
    	
Delivery of Data and   Information
    	
18
    
	
Section 8.9.
    	
Data Privacy
    	
19
    
	
 
    	
 
    	
 
    
	
Article IX   Miscellaneous
    	
19
    
	
 
    	
 
    	
 
    
	
Section 9.1.
    	
Relationship of the   Parties
    	
19
    
	
Section 9.2.
    	
Non-Solicitation
    	
20
    
	
Section 9.3.
    	
Language
    	
20
    
	
Section 9.4.
    	
Binding Effect;   Assignment
    	
20
    
	
Section 9.5.
    	
Entire Agreement;   Amendment
    	
20
    
	
Section 9.6.
    	
Notices
    	
20
    
	
Section 9.7.
    	
Counterparts
    	
21
    
	
Section 9.8.
    	
Severability
    	
21
    
	
Section 9.9.
    	
Consents and Approvals
    	
22
    
	
Section 9.10.
    	
No Waiver
    	
22
    
	
Section 9.11.
    	
Survival
    	
22
    
	
Section 9.12.
    	
No Third Party   Beneficiaries
    	
22
    
	
Section 9.13.
    	
Further Assurances
    	
22
    
	
Section 9.14.
    	
Damages
    	
22
    

 

ii

 

	
Section 9.15.
    	
Governing Law and Disputes
    	
23
    
	
Section 9.16.
    	
Expenses
    	
23
    

 

iii

 

MASTER INDUSTRIAL AGREEMENT

 

THIS MASTER INDUSTRIAL AGREEMENT (this “Agreement”) is entered into as of September 3, 2019 by and among CNH Industrial N.V., a public limited liability company (naamloze vennootschap) incorporated under the laws of the Netherlands (“CNHI”), Iveco S.p.A., a Società per Azioni organized and existing under the laws of Italy (“Iveco” and, collectively with CNHI, “CNHI/Iveco”) and Nikola Corporation, a Delaware corporation (“Nikola”). Nikola and CNHI/Iveco are referred to herein each individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, Nikola and CNHI/Iveco have entered into a Series D Preferred Stock Purchase Agreement, dated September 3, 2019, (the “Investment Agreement”);

 

WHEREAS, in accordance with the terms and conditions of the Investment Agreement, upon the Initial Closing, CNHI or one of its designated subsidiaries will receive up to 5,399,570 shares of Series D Preferred Stock, par value $0.00001 per share (“Series D Preferred Stock”) in Nikola as consideration for (i) a contribution of cash and (ii) Contributions in Kind from CNHI/Iveco of different licenses to certain IP of CNHI/Iveco and the establishment of certain service relationships;

 

WHEREAS, therefore, it is an essential part of the transactions described in the Investment Agreement that the Parties enter into this Agreement in order to provide for the rights and obligations of the Parties related to the industrial contributions and collaboration arrangements between the Parties;

 

WHEREAS, the Parties also wish to establish a Steering Committee (the “Steering Committee”), which shall serve as a governance structure for the Parties to use to optimize their operational and service relationships hereunder and to provide amicable dispute resolution in case of any controversy or dispute which may arise therefrom; and

 

NOW, THEREFORE, in consideration of the above premises, the Parties hereto hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1.                                 Definitions. Defined terms in this Agreement shall have the meanings given to them in the Investment Agreement, unless otherwise defined herein. The words in this Agreement have the meanings usually and customarily ascribed to them in commercial contracts, except that words that are defined below or in the Investment Agreement have the respective meanings given to them below or in the Investment Agreement, as applicable.

 

“AAA” has the meaning given to it in Section 9.17.

 

“Agreement” has the meaning given to it in the preamble hereto.

 

“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common

 

 

Control with such specified Person, and any other Person specifically identified and mutually agreed upon by the Parties.

 

“Ancillary Agreements” means the (a) S-Way Platform and Product Sharing Agreement, and (b) Technical Assistance Service Agreement. The term “Ancillary Agreement” shall include the Term Sheets attached to this Agreement to the extent provided in Section 2.1(b).

 

“BEV Royalty” has the meaning given to it in Section 2.2.

 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in Turin, Italy or Phoenix, Arizona, United States of America.

 

“Initial Closing” has the meaning ascribed thereto under the Investment Agreement.

 

“CNHI” has the meaning given to it in the preamble hereto.

 

“CNHI/Iveco” has the meaning given to it in the preamble hereto.

 

“CNHI BoD” means the Board of Directors of CNHI.

 

“CNHI/Iveco Appointee” has the meaning given to it in Section 3.5.

 

“CNHI/Iveco Technology” has the meaning given to it in Section 6.3(a)(ii).

 

“Conciliation Committee” has the meaning given to it in Section 4.6.

 

“Conciliation Period” has the meaning given to it in Section 4.6.

 

“Confidential Information” means any and all information which is non-public, confidential and/or proprietary in nature, including but not limited to technical, manufacturing, business, financial, operational, administrative, marketing, technical, performance, cost or economic information, data, documents, designs, drawings, research developments, testing (including bench testing and crash testing), manufacturing, technology, inventions, patents, materials, product samples, models, trade secrets, prototype parts, know-how and information about operations, processes, strategies, plans, business models, computer programs, software, source code, systems, methodology, techniques, future product development plans, customers, suppliers or personnel pertaining to CNHI/Iveco or their respective Affiliates disclosed by CNHI/Iveco or their respective Affiliates to Nikola or, as the case may be, pertaining to Nikola or its Affiliates disclosed by Nikola or its Affiliates to CNHI/Iveco or their respective Affiliates, whether orally or in writing or in pictorial form, magnetic diskette, flash memory storage drive, CD, DVD, through an electronic data room or in any other form whatsoever (whether in electronic or non-electronic form), in connection with this Agreement and the Ancillary Agreements, together with any analysis, compilation, forecast, study, memoranda, notes or other writing prepared by the Receiving Party which contains or otherwise reflects or is based on the above.

 

“Confidential Personal Information” has the meaning given to it in Section 8.9(a).

 

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“Contributions in Kind” means the contributions made by CNHI/Iveco and described in this Agreement and any of the individual Ancillary Agreements.

 

“Control” means, with respect to Person, the direct or indirect ownership of more than fifty percent (50%) of the stock or other equity interests having voting or other rights to direct the management of such entity.

 

“Disclosing Party” means the Party (whether CNHI, Iveco or Nikola or any of their respective Affiliates, as the case may be) which is disclosing Confidential Information.

 

“Disputed Agenda Item” has the meaning given to it in Section 4.5.

 

“EAA Deadline” has the meaning given to it in Section 2.1(b).

 

“European Alliance Agreement” means the alliance agreement between the Parties that will govern their cooperation in the European Union in the field of design and manufacturing of pure electric and hydrogen heavy trucks based on Nikola and Iveco technology.

 

“FCEV Royalty” has the meaning given to it in Section 2.2.

 

“[*]” has the meaning given to it in Section 2.4.

 

“Iveco” has the meaning given to it in the preamble hereto.

 

“Iveco BoD” means the Board of Directors of Iveco.

 

“Iveco World Class Manufacturing Methodology” means the methodologies, know-how, processes and practices adopted by CNHI/Iveco in their manufacturing operations.

 

“Initial Meeting” has the meaning given to it in Section 4.3.

 

“IP” has the meaning given to it in Section 2.2.

 

“Laws” means all laws, regulations, rules, orders, decrees or other directives carrying the force of law applicable to any activities engaged in by the Parties or their Affiliates in connection with this Agreement and the Ancillary Agreements from time to time, including, but not limited to, the U.S. Foreign Corrupt Practices Act and any similar anti-corruption or anti-bribery laws, rules or regulations applicable to the Parties in any jurisdiction other than the United States, without regard to their jurisdictional limitations, and export control under the laws, rules and regulations of the United States, the European Union, the United Nations, the Republic of Italy and other jurisdictions.

 

“Investment Agreement” has the meaning given to it in the recitals hereto.

 

“Nikola” has the meaning given to it in the preamble hereto.

 

“Nikola BoD” means the Board of Directors of Nikola.

 

“Nikola Appointee” has the meaning given to it in Section 3.5.

 

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“North America” means the United States of America, Canada and Mexico.

 

“Party” (and “Parties”) has the meaning given to such terms in the preamble hereto.

 

“Person” means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity.

 

“Preferred Shares” means shares of Series D Preferred Stock of Nikola to be issued and delivered to CNHI/Iveco pursuant to this Agreement.

 

“Receiving Party” means a Party receiving any Confidential Information of another Party.

 

“Representatives” means, in respect of any of Nikola, CNHI or Iveco or their respective directors, managers, officers, employees, accountants, consultants, attorneys, bankers or other advisors.

 

“Revenues” means all revenues, receipts, monies, or other consideration directly or indirectly collected or received, whether by way of cash or credit or any barter, benefit, advantage, or concession, by Nikola or its Affiliates from the marketing, sale and, distribution, or leasing of any Nikola vehicle, product, component, spare-part or related services (including any pay-per-use arrangements, but excluding any revenue associated with vehicle service, vehicle maintenance, vehicle fueling and fueling stations, or autonomous driving) incorporating all or a portion of the Licensed Iveco Technology. Where any Revenue is derived from a country other than the United States it shall be converted to the equivalent in U.S. dollars on the date Nikola or its Affiliates are deemed to have received such Revenue at the exchange rate for buying such currency published in the Wall Street Journal in effect as of that date. The amount of U.S. dollars pursuant to such conversion shall be included in the Revenue.

 

“Royalties” has the meaning given to it in Section 2.2.

 

“Rules” has the meaning given to it in Section 9.17.

 

“Series D Preferred Stock” has the meaning given to it in the recitals hereto.

 

“Start of Production” has the meaning given to it in Exhibit A attached hereto

 

“Services” has the meaning given to it in Section 2.3.

 

“Steering Committee” has the meaning given to it in the recitals hereto.

 

“Steering Committee Members” has the meaning given to it in Section 3.5.

 

“Sub-Committee” has the meaning given to it in Section 3.4.

 

“S-Way Platform and Product Sharing Agreement” has the meaning given to it in Section 2.2.

 

“Technical Assistance Services” has the meaning given to it in Section 2.3 hereto.

 

4

 

“Technical Assistance Service Agreement” has the meaning given to it in Section 2.3.

 

“Technology Extension Period” has the meaning given to it in Section 6.3(a)(ii).

 

“Term Sheets” means the term sheets with respect to the Ancillary Agreements attached

 

“Total Product Sharing Issuance” has the meaning given to it in Section 2.2.

 

“Third Party” means any Person other than Nikola, CNHI, Iveco or their respective Affiliates, and the respective directors, officers and employees thereof.

 

“Threshold” has the meaning given to it in Section 2.3.

 

Section 1.2.                                 Interpretation and Rules of Construction. In this Agreement and the Ancillary Agreements, except to the extent otherwise provided or that the context otherwise requires: (a) when a reference is made in this Agreement or the Ancillary Agreements to an Article, Recital, Section or Exhibit, such reference is to an Article or Recital or Section of or Exhibit to, this Agreement or the Ancillary Agreements unless otherwise indicated; (b) the headings for this Agreement and the Ancillary Agreements are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement and the Ancillary Agreements; (c) whenever the words “include,” “includes” or “including” are used in this Agreement and the Ancillary Agreements, they are deemed to be followed by the words “without limitation”; (d) the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement and the Ancillary Agreements, refer to this Agreement or the Ancillary Agreements as a whole and not to any particular provision of this Agreement or the Ancillary Agreements; (e) the definitions contained in this Agreement and the Ancillary Agreements are applicable to the singular as well as the plural forms of such terms; (f) references to a Person are also to the Person’s successors and permitted assigns; and (g) references to agreements and Laws are also to the same as amended, restated or otherwise modified from time to time.

 

ARTICLE II
 CONTRIBUTION IN KIND

 

Section 2.1.                                 General.

 

(a)                                                                                 This Agreement sets forth the terms and conditions governing the CNHI/Iveco Contributions in Kind in Nikola, whereby CNHI/Iveco will cooperate with and assist Nikola in the manufacture of pure electric and hydrogen heavy trucks in the United States by providing technical, management, and other contributions and cooperation support, principally in accordance with the provisions set forth herein and specifically pursuant to the Ancillary Agreements in exchange for the issuance and delivery of the Preferred Shares as detailed in this Agreement and in the Ancillary Agreements. This Agreement also sets forth certain additional terms and conditions governing the industrial cooperation between CNHI/Iveco, on the one hand, and Nikola, on the other hand.

 

(b)                                                                                 In the context of the relations established between the Parties (and as fundamental part of such relations) in the Investment Agreement, in this Agreement and the Ancillary Agreements, the Parties will also enter into the European Alliance Agreement no later

 

5

 

than September 30, 2019 (the “EAA Deadline”); provided that if the European Alliance Agreement has not been entered into by the EAA Deadline, then the EAA Deadline may be extended by either Party to a date not beyond October 31, 2019, and such date, as so extended shall be the EAA Deadline. If the European Alliance Agreement has not been entered into by the EAA Deadline, then CNHI may terminate this Agreement and the Ancillary Agreements in accordance with Section 6.2(c).

 

(c)                                                                                  To the extent a Term Sheet has not been replaced by a definitive Ancillary Agreement on or prior to the date of this Agreement, the term “Ancillary Agreement” shall include such Term Sheet, and the Parties will work together in good faith to negotiate a definitive Ancillary Agreement with respect to such Term Sheet as soon as reasonably practicable after the date of the Agreement, and in any event by December 31, 2019. During the time period from the date of this Agreement to the date a definitive agreement is duly executed and delivered, the Parties agree that the relevant Term Sheet represents a binding agreement between the Parties and each of them agrees to perform its obligations under any such Term Sheet as if such Term Sheet were a definitive agreement; provided that unless otherwise expressly provided therein, upon execution and delivery of a definitive agreement, the terms and conditions of the definitive agreement shall be deemed to have been applicable from the date of the applicable Term Sheet. Notwithstanding the express terms herein and in order to facilitate the mutual success and benefit of both parties, if either Party between the date hereof and December 31, 2019 identifies a term set forth in the Term Sheets that is substantially detrimental to such party, based upon new facts, information, or circumstances, CNHI/Iveco and Nikola shall use in good faith reasonably best efforts to agree upon new terms, provided that: (i) in no event neither the economic value of the contribution in kind made by CNHI/Iveco will be subject to further evaluation, nor the issuance and delivery of the Preferred Shares against such contributions, and (ii) nothing in this clause will be construed as to oblige each of the Party to agree upon an amendment proposed by other Party.

 

(d)                                                                                 In the event of a conflict between this Agreement and the applicable Term Sheet or any Ancillary Agreement, the terms of the applicable Term Sheet or Ancillary Agreement shall control.

 

(e)                                                                                  Notwithstanding the use in this Agreement and the Ancillary Agreements of the terms “CNHI”, “Iveco” and “Nikola”, (i) each of the rights and obligations arising pursuant to this Agreement and the Ancillary Agreements are applicable to and for the benefit of each Party and its applicable Affiliates; (ii) each Party has the right to designate any of its Affiliate(s) to provide or perform any of such Party’s obligations under this Agreement or under any Ancillary Agreement; and (iii) each of Iveco and CNHI shall be responsible for the obligations to be performed by its respective Affiliates under this Agreement and under the Ancillary Agreements.

 

(f)                                                                                   On or prior to the date hereof, Nikola shall have adopted all the necessary and appropriate corporate resolutions and shall have entered into all the other necessary and appropriate arrangements to approve the Contributions in Kind and issue and deliver to CNHI/Iveco the Preferred Shares correspondent to the value of each Contribution in Kind, all of which shall remain in full force and effect. Each of the Ancillary Agreements will include the terms and conditions whereby in exchange for each quarterly Contribution in Kind, Nikola shall issue and deliver to CNHI/Iveco a number of Preferred Shares equal to the value of each Contribution in Kind.

 

6

 

(g)                                                                                  It is understood that the Preferred Shares issued and delivered to CNHI/Iveco pursuant to Section 2.2 and 2.3 will enjoy full corporate rights (including, without limitation, voting rights, certain protective rights and governance rights, including the right to designate a director to the board of directors of Nikola, as granted in the Investment Agreement, the Fourth Amended and Restated Stockholder Agreement and the Fourth Amended Certificate) as of the date of issuance and delivery to CNHI/Iveco. With respect to the Preferred Shares issued and delivered to CNHI/Iveco pursuant to Section 2.2, the related economic rights (including, but not limited to, dividend rights) accrue to and are exercisable by CNHI/Iveco in equal installments on a quarterly basis until such time that the aggregate value of the access provided to Nikola under the S-Way Platform and Product Sharing Agreement reaches $50,000,000.00. With respect to the Preferred Shares issued and delivered to CNHI/Iveco pursuant to Section 2.3, the related economic rights (including, but not limited to, dividend rights) accrue to and are exercisable by CNHI/Iveco only upon the provision by CNHI/Iveco of an equal value of Technical Assistance Services (as such value is determined pursuant to Section 2.3).

 

Section 2.2.                                 S-Way Platform and Product Sharing. At the Initial Closing or, in any event, no later than December 31, 2019, the Parties shall enter into a S-Way Platform and Product Sharing Agreement in a form substantially consistent with the Term Sheet attached hereto as Exhibit A (the “S-Way Platform and Product Sharing Agreement”). The S-Way Platform and Product Sharing Agreement will contain the terms and conditions governing Nikola’s non-exclusive access to the Licensed Iveco Technology (as such term is defined in Exhibit A attached hereto). The Parties have agreed that CNHI/Iveco’s obligations to make the Contribution in Kind pursuant to the S-Way Platform and Product Sharing Agreement is valued $50,000,018.20 plus any Royalties (as such term is defined in Exhibit A attached hereto). As a result, at the initial Closing, Nikola shall issue and deliver to CNHI/Iveco no less than a total of 2,699,785 Preferred Shares at a value of $18.52 per share as consideration for the Contribution in Kind pursuant to the S-Way Platform and Product Sharing Agreement.

 

Under the S-Way Platform and Product Sharing Agreement Nikola will also pay to Iveco: (i) a 1.25% royalty on Nikola’s Revenues arising from any sale, lease or transfer (including pay- per-use arrangements, but excluding any revenue associated with vehicle service, vehicle maintenance, vehicle fueling and fueling stations, or autonomous driving) of Nikola’s FCEV products, vehicles, components, spare-parts (and any related services) incorporating all or any material portion of the IP rights included in the S-Way Platform and Product Sharing Agreement for a one-time period of seven (7) years beginning at the Start of Production (as such term is defined in Exhibit A attached hereto) of any FCEV product, vehicle, component and spare-parts (and any related services) (the “FCEV Royalty”), and (ii) a 1.00% royalty on Nikola’s Revenues arising from any sale, lease or transfer (including pay-per-use arrangements, but excluding any revenue associated with vehicle service, vehicle maintenance, vehicle fueling and fueling stations, or autonomous driving) of Nikola’s BEV products, vehicles, components and spare-parts (and any related services) incorporating all or any material portion of the IP rights included in the S-Way Platform and Product Sharing Agreement for a one-time period of seven (7) years beginning at the Start of Production of any BEV product, vehicle, component and spare-part (and any related service) (the “BEV Royalty” and together with the FCEV Royalty the “Royalties”). For the avoidance of doubt, each particular product will be subject to either the FCEV Royalty or the BEV Royalty, but in no event shall more than one (1) royalty apply to any particular product.

 

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All payments of the Royalties will be made by Nikola in U.S. Dollars within sixty (60) days after the end of each calendar quarter with respect to Revenues in such calendar quarter in accordance with the terms and conditions of the S-Way Platform and Product Sharing Agreement.

 

Section 2.3.                                 Provision of Technical Assistance Services. No later than December 31, 2019, the Parties shall enter into a Technical Assistance Service Agreement, in a form substantially consistent with the Term Sheet attached hereto as Exhibit B (the “Technical Assistance Service Agreement”). The Technical Assistance Service Agreement will contain terms and conditions governing the advisory services to be provided by CNHI/Iveco to Nikola (in accordance with an agreed RASIC allocation of roles) in connection with the manufacturing of BEV and FCEV heavy duty trucks (the “Technical Assistance Services”). Such Technical Assistance Services will include, inter alia, project coordination, drawings and documentation support, engineering support, vehicle integration and product validation support, purchasing, quality, and the introduction in Nikola’s plants of the Iveco World Class Manufacturing Methodology. The Parties have agreed that the value of the Technical Assistance Services will be [*] for technical assistants and [*] for project managers and they have also agreed that such Technical Assistance Services up to the amount of $100,000,000.00 (the “Threshold”) shall constitute a Contribution in Kind made by CNHI/Iveco pursuant to the Technical Assistance Service Agreement. In order to validate and confirm the Contributions in Kind pursuant to the Technical Assistance Service Agreement, CNHI/Iveco shall permit Nikola to access the relevant facilities, work product, time logs, and any other documentation as Nikola deems necessary, in the form to be agreed by the Parties at the Initial Closing. Nikola has also irrevocably agreed that, subject to the consummation of the Initial Closing, by or around December 31,2022 Nikola will use its best efforts to purchase Technical Assistance Services so as to reach (or exceed) the Threshold by December 31, 2022. Pursuant to this irrevocable commitment, at the end of every calendar quarter of 2020, Nikola shall issue and deliver to CNHI/Iveco 1,349,892 Preferred Shares at a deemed purchase price of $18.52 per share, irrespective of the actual value of the Technical Assistance Services rendered by CNHI/Iveco during each quarter of 2020; provided, however, that if Nikola’s purchase of services totals less than the Threshold during such period, Nikola may issue additional Preferred Shares at the value of any shortfall on or before such date and have the right to receive such services up to the value of such shortfall after such date. Subject to the above, it is understood that: (i) any excess over the Threshold shall be shall be invoiced in U.S. Dollars by CNHI/Iveco and paid in cash (in U.S. Dollars) by Nikola to CNHI/Iveco in accordance with the terms and conditions of the Technical Assistance Service Agreement; and (ii) no such payment with respect to such excess will be due by Nikola until the Threshold has been reached (or exceeded) either in 2020 or subsequently. From and after January 1, 2021, the value of the FTE per hour shall be increased on an annual basis to take into account any increase in Euro area Harmonized Index of Consumer Prices (HICP). All payments due for any Technical Assistance Services in excess of the Threshold will be invoiced by CNHI/Iveco on a monthly basis and paid by Nikola within sixty (60) days after the date of the invoice in accordance with the terms and conditions of the Technical Assistance Service Agreement.

 

Should the Initial Closing not occur by October 31, 2019 the Technical Assistance Services shall be invoiced by CNHI/Iveco and paid in cash (in U.S. Dollars) by Nikola in accordance with the terms and conditions of the Technical Assistance Service Agreement.

 

Section 2.4.                                 [*]. [*]

 

8

 

Section 2.5.                                 Daily Program. In connection with this Agreement, Iveco will evaluate the technical and financial feasibility of manufacturing the Iveco Daily at Nikola’s plant. If Iveco determines that it is feasible, then Iveco and Nikola shall cooperate and negotiate in good faith to enter into a definitive agreement, mutually agreed by the Parties, subject to due diligence. Potential cooperation of Nikola and Iveco in this respect will be subject to due diligence and a mutually satisfactory agreement.

 

Section 2.6.                                 Approval of Specific Programs. It is understood that the Parties may agree from time to time to implement further specific programs to support and strengthen their cooperation in accordance with the respective internal approval procedures of the Parties.

 

ARTICLE III
 ESTABLISHMENT OF THE STEERING COMMITTEES; TASKS AND RESPONSIBILITIES OF THE STEERING COMMITTEE

 

Section 3.1.                                 Establishment of the Steering Committee. On the date hereof, Nikola and CNHI/Iveco shall form the Steering Committee, which shall consist of six individuals, three of whom shall be nominated by Nikola, and three of whom shall be nominated by CNHI/Iveco, each initially in accordance with the provisions set forth in Section 3.5.

 

Section 3.2.                                 Purpose. The Steering Committee shall perform its activities in accordance with all legal requirements applicable to the cooperation of independent companies, including all applicable antitrust and competition Laws, and the resolutions of the Nikola BoD, CNHI BoD and Iveco BoD.

 

Section 3.3.                                 Tasks and Responsibilities of Steering Committee. The Steering Committee shall provide a venue to enable the Parties to review any issue or resolve any dispute relating to or arising under the Ancillary Agreements, including any questions regarding the interpretation of the Ancillary Agreements as well as to provide unified guidance to facilitate the industrial cooperation between CNHI/Iveco and Nikola under this Agreement, the Ancillary Agreement and the execution of the European Alliance Agreement no later than September 30, 2019.

 

The Steering Committee will seek to:

 

(a)                                                                                 interpret this Agreement and the Ancillary Agreements, as well as resolve items of common interest prior to the Initial Closing; provided, however, that the Steering Committee obligations with respect to the European Alliance Agreement shall cease upon the closing of the European Alliance Agreement;

 

(b)                                                                                 amicably resolve any controversy or dispute arising out of or in connection with the Ancillary Agreements, following submission to the Steering Committee of such dispute by either Party;

 

(c)                                                                                  decide on all other matters or resolve such controversy jointly referred to the Steering Committee by both Parties; and

 

(d)                                                                                 facilitate to the extent possible the consummation of the Initial Closing and the execution and delivery of the European Alliance Agreement.

 

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Section 3.4.                                 Sub-Committees. The Steering Committee may, consistent with the terms and conditions of this Agreement, establish one or more sub-committees (each, a “Sub- Committee”), each of which shall consist of an equal number of Nikola and CNHI/Iveco representatives. A Sub-Committee may coordinate the day-to-day operations and management of the subject matter of one or more Ancillary Agreements. The Parties agree to cause their respective Steering Committee representatives to resolve all matters delegated for decision or resolution as soon as reasonably practicable in accordance with the rules established for such Sub-Committee by the Steering Committee. The Steering Committee and Sub-Committee members shall not receive any remuneration attributable to their service as members of such committees. Costs and expenses incurred by the Steering Committee and Sub-Committee members in connection with their activities as members of such committees shall be borne by the Party nominating such member in accordance with the relevant Party’s internal policies.

 

Section 3.5.                                 Initial Steering Committee Members. Each of Nikola and CNHI/Iveco shall have the right to nominate three (3) members of the Steering Committee of the respective Party. The members nominated by CNHI/Iveco shall be referred to as the “CNHI/Iveco Appointees” and the members nominated by Nikola shall be referred to as the “Nikola Appointees”. The CNHI/Iveco Appointees and the Nikola Appointees collectively shall be referred to as the “Steering Committee Members”. The initial members are set forth in Schedule A hereto.

 

Section 3.6.                                 Replacement; Vacancies. Each of the Nikola Appointees and the CNHI/Iveco Appointees shall serve on the Steering Committee during the term of this Agreement unless such appointee is replaced by another individual appointed by the relevant Party pursuant to the provisions of this Section 3.6. Nikola shall have the right to replace any of the Nikola Appointees at any time by written notice to CNHI/Iveco; CNHI/Iveco shall have the right to replace any of the CNHI/Iveco Appointees at any time by written notice to Nikola. Any Steering Committee Members may resign at any time by giving written notice to all other Steering Committee Members, Nikola and CNHI/Iveco. Nikola shall have the right to fill any vacancy caused by the resignation of a Nikola Appointee and CNHI/Iveco shall have the right to fill any vacancy caused by the resignation of a CNHI/Iveco Appointee, in each case by written notice to the other Party. The appointment of such individual shall be effective immediately upon such written notice.

 

ARTICLE IV
 MEETINGS, QUORUM AND RESOLUTIONS OF THE STEERING COMMITTEE

 

Section 4.1.                                 Meeting Schedule. The Steering Committee shall meet as often as it deems necessary or appropriate (but in no event less frequently than quarterly) or on request of at least two (2) Steering Committee Members. The Steering Committee may meet in person, by telephone conference or by video conference (or by any combination thereof).

 

Section 4.2.                                 Invitation Notice. If any two Steering Committee Members (at least one (1) CNHI/Iveco Appointee and one (1) Nikola Appointee), acting together, request a meeting of the Steering Committee they shall do so by written notice via email to the other Steering Committee Members. Such notice must state the location or the phone or video conference arrangements, date and hour of the proposed meeting and shall be issued as early as possible but not less than five (5) Business Days prior to the proposed meeting. The notice shall provide a specific agenda for the

 

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proposed meeting as well as a description of the items requiring discussion and resolution by the Steering Committee. All Steering Committee Members shall be provided with the same documentation proposed to be reviewed in connection with any proposed meeting.

 

Section 4.3.                                 Quorum. No meeting of the Steering Committee may take place unless a quorum is present as determined in accordance with this Section 4.3. The Steering Committee shall have a quorum if at least two (2) Nikola Appointees and at least two (2) CNHI/Iveco Appointees are present or represented by another Steering Committee Member presenting a written proxy notice to act on the Steering Committee Member’s behalf at the applicable meeting. If a quorum is not present at any meeting (“Initial Meeting”), a second meeting having only the agenda of the Initial Meeting shall be convened. Two Steering Committee Members, acting together, shall be entitled to give notice, including the items required to be included in the notice in accordance with Section 4.2, via email to the other Steering Committee Members of such second meeting, provided, however, that (i) the notice period for the second meeting is not less than ten (10) Business Days prior to the proposed meeting and (ii) the notice explicitly states that such second meeting shall have a quorum if at least one (1) Nikola Appointee and at least one (1) CNHI/Iveco Appointee are present.

 

Section 4.4.                                 Voting Rights; Resolutions. The Nikola Steering Committee Members shall collectively have one (1) vote and the CNHI/Iveco Steering Committee Members shall collectively have one (1) vote, and all decisions and resolutions of the Steering Committee shall be made or passed unanimously.

 

Section 4.5.                                 Failure of the Steering Committee Members to Decide Unanimously. If the Steering Committee Members cannot decide or resolve an agenda item unanimously at any meeting of the Steering Committee, the meeting shall be adjourned with respect to such agenda item (“Disputed Agenda Item”). The Steering Committee members may call a special meeting of the Steering Committee, in accordance with Section 4.2, to decide or resolve the Disputed Agenda Item. If no such special meeting has been called, the Disputed Agenda Item shall be an agenda item at the next regularly scheduled Steering Committee meeting. This meeting (and only for the Disputed Agenda Item) shall have a quorum if at least one CNHI/Iveco Appointee and one Nikola Appointee are physically present. Each of the Steering Committee Members present shall have one vote and any decision or resolution must be passed unanimously to be approved.

 

Section 4.6.                                 Conciliation Committee. If the Disputed Agenda Item cannot be decided or resolved unanimously, two Steering Committee Members (at least one (1) CNHI/Iveco Appointee and one (1) Nikola Appointee), acting together, shall be entitled to submit the Disputed Agenda Item to a committee, which shall be comprised of a designee of CNHI/Iveco and a designee of Nikola (“Conciliation Committee”). The Conciliation Committee shall decide or resolve unanimously in a reasonable time period, but not later than thirty (30) days after the Conciliation Committee has received the respective request (“Conciliation Period”) taking into account the legitimate business interests of the parties affected by such decision or resolution.

 

Section 4.7.                                 Arbitration. If the Conciliation Committee fails to provide a unanimous decision or resolution within the Conciliation Period, then either Party may request the dispute be resolved by binding arbitration administered by the American Arbitration Association (the “AAA”) pursuant to its Commercial Arbitration Rules then in existence (the “Rules”) and in

 

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accordance with this Section 4.7. The decision of the arbitration panel shall be final and binding on the Parties, and will not be subject to any appeal or proceedings to vacate, except on the grounds set forth in the Federal Arbitration Act, 9 U.S.C. § 1, et seq. The arbitration award may be enforced in any court of competent jurisdiction.

 

(a)                                                                                 The situs of the arbitration and any evidentiary proceedings shall be in the City of New York and all proceedings and submissions shall be in the English language. The panel may conduct proceedings in other locations if necessary for the taking of evidence or as otherwise agreed by the Parties involved in such arbitration.

 

(b)                                                                                 The arbitration panel shall consist of three members, one to be appointed by CNHI/Iveco, one to be appointed by Nikola, and the third arbitrator, who shall preside over the arbitration panel, to be chosen by the two Party-appointed arbitrators. If either CNHI/Iveco or Nikola fails to appoint an arbitrator or the two Party-appointed arbitrators fail to appoint the third within the time periods prescribed below, then the appointments shall be made by the AAA pursuant to the Rules.

 

(c)                                                                                  Arbitration may be commenced by any Party by giving written notice setting out the nature of the dispute to each other Party and to the AAA pursuant to the Rules. Within five (5) days of such notice, the party demanding arbitration shall appoint its arbitrator. Within 15 days of that appointment, the other party shall appoint its arbitrator. Within 30 days after the appointment of both Party-appointed arbitrators, those two shall appoint the third.

 

(d)                                                                                 Except as required by applicable Law, none of CNHI/Iveco, Nikola or the arbitration panel may disclose the existence, content or results of the arbitration unless and to the extent that disclosure is required by applicable Law or is necessary for permitted court proceedings.

 

(e)                                                                                  The arbitration panel shall be authorized to award monetary damages and to grant injunctive relief, including interim relief pending the final award. Any interim or provisional measure in the form of conservatory or injunctive relief ordered by the arbitration panel shall, to the extent permitted by applicable Law, be deemed a final arbitration award for purposes of enforceability. For the avoidance of doubt, nothing in this Section 4.7 should be interpreted to preclude any party from seeking interim relief from a court of competent jurisdiction prior to the formation of the arbitration panel. Any monetary award may include interest and shall be stated and payable in U.S. currency. The arbitration panel is not authorized to award punitive or exemplary damages.

 

Section 4.8.                                 Resolutions, Decisions and Minutes. Resolutions, decisions and minutes of all meetings of the Steering Committee shall be prepared by at least one (1) Steering Committee Member of each of CNHI/Iveco and Nikola and shall be signed by two Nikola Appointees and two CNHI/Iveco Appointees. The signed minutes shall form the basis for the interpretation of the decisions and resolutions made or passed by the Steering Committee.

 

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ARTICLE V
 BINDING EFFECT OF STEERING COMMITTEE DECISIONS AND RESOLUTIONS

 

Section 5.1.                                 Nikola BoD, CNHI BoD and/or Iveco BoD Rules of Procedure. The rules of procedure of both the CNHI BoD and Iveco BoD and the Nikola BoD (including, but not limited to any requirement to involve, prior to any decision or resolution, the CNHI BoD, Iveco BoD and Nikola BoD and/or supervisory bodies) shall remain unaffected.

 

Section 5.2.                                 Instructions to Adhere. The Parties shall cause its respective Affiliates, that are a party to the respective Ancillary Agreement if any, to adhere to this Agreement as if such party were a Party to this Agreement.

 

Section 5.3.                                 Binding Effect. Notwithstanding the generality of the foregoing, the Parties and their Affiliates shall be bound by the decisions and resolutions of the Steering Committee, the Conciliation Committee and the Sub-Committees to the extent such decisions and resolutions are made in accordance with the terms of this Agreement.

 

ARTICLE VI
 TERM AND TERMINATION

 

Section 6.1.                                 Term. This Agreement shall become effective on the Initial Closing and shall continue to be effective unless and until terminated in accordance with the terms hereof.

 

Section 6.2.                                 Termination by Either Party. This Agreement and all of the Ancillary Agreements shall terminate upon:

 

(a)                                                                                 mutual agreement of the Parties;

 

(b)                                                                                 the election of the non-breaching Party upon the material breach by the other Party of this Agreement or one or more Ancillary Agreements (with materiality determined with reference to all Ancillary Agreements taken as a whole) if the breach has not been cured within thirty (30) days after the giving of written notice thereof by the non-breaching Party to the breaching Party;

 

(c)                                                                                  the election of CNHI/Iveco if the European Alliance Agreement has not been entered into by CNHI and Nikola by the EAA Deadline;

 

(d)                                                                                 the commencement of a voluntary or involuntary case or other proceeding by or against Nikola seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect, which in the case of an involuntary proceeding is not stayed or lifted within 30 days; the application for or consent to the appointment of a receiver, trustee, liquidator or custodian by Nikola for itself or of all or a substantial part of its property; the making by Nikola of a general assignment for the benefit of any of its creditors; or the taking by Nikola of any action for the purpose of effecting any of the foregoing; or

 

(e)                                                                                  the commencement of a voluntary or involuntary case or other proceeding by or against any of CNHI/Iveco seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect, which in the case of an

 

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involuntary proceeding is not stayed or lifted within 30 days; the application for or consent to the appointment of a receiver, trustee, liquidator or custodian by any of CNHI/Iveco, any for itself or of all or a substantial part of its property; the making by any of CNHI/Iveco of a general assignment for the benefit of any of its creditors; or the taking by any of CNHI/Iveco of any action for the purpose of effecting any of the foregoing.

 

Section 6.3.                                 Effect of Termination.

 

(a)                                                                                 Upon the occurrence of a termination event other than under Section 6.1(c):

 

(i)                                                                                     CNHI/Iveco will surrender all of its right, title and interest in and to any unissued Preferred Shares if such termination occurs prior to the corresponding consummation of one or more of each of the Contributions in Kind;

 

(ii)                                                                                  Unless termination is due to Nikola’s uncured breach of its obligation to deliver the Preferred Shares or otherwise make any required payment to which CNHI/Iveco is entitled hereunder, Nikola shall retain the right to use (and, as applicable, receive supply of) the product platforms, components, parts, technology, data, documentation, and other similar information and materials, including any IP rights in the foregoing, that CNHI/Iveco makes available to Nikola hereunder and under any Ancillary Agreement (the “CNHI/Iveco Technology”), at the applicable Royalty; provided, however, that such CNHI/Iveco Technology will continue to be subject to any limitations on licensing and branding then in effect under the applicable Ancillary Agreement and that in no event will the Royalty be reduced.

 

(iii)                                                                               Upon the occurrence of a termination under Section 6.2(c) CNHI/Iveco shall retain the right to immediately terminate each of the Ancillary Agreements.

 

(b)                                                                                 Upon the occurrence of any termination:

 

(i)                                                                                     each Party may use the ideas, concepts, know-how and techniques related to the other Party’s business activities which are contained in the Confidential Information of that other Party and retained in the unaided memories of employees who have had access to such Confidential Information pursuant to this Agreement and the Ancillary Agreements; and

 

(ii)                                                                                  each Party will negotiate in good faith the terms and conditions of transition services required by both Parties under each Ancillary Agreement, each in accordance with the applicable transition services provision upon termination set forth in each such Ancillary Agreement.

 

ARTICLE VII
 REPRESENTATIONS AND WARRANTIES

 

Section 7.1.                                 Representations and Warranties. Each Party represents and warrants to the other Party that:

 

(a)                                                                                 the execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of the Party;

 

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(b)                                                                                 this Agreement has been duly executed and delivered, and (assuming due authorization, execution and delivery by the other Party) constitutes the legal, valid and binding obligations of the Party, enforceable against such Party in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency (including all Laws relating to fraudulent transfers), reorganization, moratorium or similar Laws affecting creditors’ rights generally and subject to the effect of general principles of equity (regardless of whether considered in a proceeding at Law or in equity);

 

(c)                                                                                  the execution, delivery and performance of this Agreement, and the consummation by it of the transactions contemplated thereby, do not and will not conflict with, or result in a breach or violation of or default under, the organizational documents of such Party, any applicable Law or any note, indenture, contract, agreement or instrument to which it is a party or is otherwise subject; and

 

(d)                                                                                 it is and shall be in compliance with applicable Laws in connection with its performance under this Agreement and under the Ancillary Agreements.

 

Section 7.2.                                 Disclaimer of Warranties. EXCEPT AS SET FORTH IN THIS ARTICLE VII, IN THE INVESTMENT AGREEMENT OR IN ANY ANCILLARY AGREEMENT, NONE OF THE PARTIES, THEIR AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKE OR HAVE MADE ANY OTHER REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF SUCH PARTY, SUCH PARTY’S ASSETS OR LIABILITIES OR SUCH PARTY’S PERFORMANCE, IN EACH CASE RELATED TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, INCLUDING WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND THE PARTIES EXPRESSLY DISCLAIM ANY OTHER REPRESENTATIONS OR WARRANTIES.

 

ARTICLE VIII
 CONFIDENTIALITY AND DATA

 

Section 8.1.                                 Confidential Information. Each Receiving Party shall during the term of this Agreement through the termination of this Agreement and for a period of three (3) years after termination of this Agreement:

 

(a)                                                                                 treat and hold all Confidential Information of the Disclosing Party in its possession in strict confidence using the same degree of care that it uses to protect its own Confidential Information of like importance and at least corresponding to the standard of care normally applied in the automotive industry;

 

(b)                                                                                 ensure proper and secure storage for all written or pictorial or magnetic Confidential Information of the Disclosing Party in its possession;

 

(c)                                                                                  reveal such Confidential Information only to those of its Representatives or Affiliates who (i) need to know the Confidential Information solely for the purpose of performing responsibilities consistent with this Agreement and the Ancillary Agreements, (ii) before disclosure of the Confidential Information to them are informed by the Receiving Party of the confidential nature of the Confidential Information, and (iii) in the case of Affiliates, agree to act

 

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in accordance with the terms and conditions of this Agreement, as if they were a Party hereto and thus obligated to comply herewith;

 

(d)                                                                                 procure that all of its Representatives to whom such disclosure is made will act in accordance with the terms and conditions of this Agreement, as if each of them were a Party hereto and thus obligated to comply herewith and be responsible for any unauthorized disclosure or use of any Confidential Information by its Representatives;

 

(e)                                                                                  not divulge or disclose to Third Parties, directly or indirectly, in whole or in part, orally, in writing, in pictorial form, on a flash memory storage drive, CD, DVD or magnetic diskette, through an electronic data room or in any other form whatsoever (whether in electronic or non-electronic form) any Confidential Information of the Disclosing Party without the Disclosing Party’s prior written consent;

 

(f)                                                                                   not use, in whole or in part, any Confidential Information of the Disclosing Party for any purpose other than performance of its obligations hereunder and under the Ancillary Agreements; and

 

(g)                                                                                  not copy, duplicate, reproduce or record in whatsoever manner the Disclosing Party’s Confidential Information except as necessary for circulation among its (and its Affiliate’s) key employees and Representatives for a purpose expressly permitted by this Agreement.

 

Section 8.2.                                 Permitted Use; Disclosures.

 

(a)                                                                                 To the extent that any Confidential Information of a Party is IP of that Party or constitutes IP that such Party is licensed or otherwise permitted by other persons to use, the Receiving Party shall be permitted to use such Confidential Information in accordance with the terms and conditions of this Agreement if and to the extent provided by the rights and licenses granted in the Ancillary Agreements and nothing in this Agreement shall limit, alter or supplant such rights or licenses. Notwithstanding anything to the contrary herein, if the rights and licenses granted in the Ancillary Agreements permit the sublicensing or disclosure of IP that also constitutes Confidential Information of a Party, the Receiving Party may disclose such IP without obtaining the consent of the Disclosing Party, provided that the Receiving Party procures that all Third Parties to whom such disclosure is made will agree to measures that are at least as protective of the disclosed information as the terms hereof.

 

(b)                                                                                 After notification in writing to the Disclosing Party, the Receiving Party may disclose Confidential Information to a contractor or supplier of the Receiving Party who reasonably needs to know such Confidential Information in order for the Receiving Party to fulfill its obligations hereunder, including any Ancillary Agreements, or that is reasonably necessary to enable the contractor or supplier to: (i) quote or supply a product, component or technology, to the Receiving Party or its Affiliates; (ii) provide engineering services to the Receiving Party or its Affiliates; or (iii) to assemble or manufacture any product, component or technology on behalf of the Receiving Party or its Affiliates; provided, however, that the contractor or supplier of the Receiving Party agrees in writing (or as otherwise agreed) to protect the confidentiality of such

 

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Confidential Information in a manner consistent with the procedures that the Disclosing Party uses to protect such Confidential Information and has conveyed such procedures to the Receiving Party.

 

Section 8.3.                                 Data. With respect to data and information used by a Party or its Affiliates in the course of performing its obligations or receiving any benefit pursuant to this Agreement and the Ancillary Agreements, and except as may be set forth in any other written agreement between the Parties or their Affiliates:

 

(a)                                                                                 As between the Parties and their Affiliates, except as otherwise set forth herein or in an Ancillary Agreement, each Party and its Affiliates shall retain all IP rights in all data and information owned by such Party as of the date of this Agreement.

 

(b)                                                                                 Except as set forth in this Section 8.3, unless otherwise agreed in writing by the Parties or in an Ancillary Agreement, each Disclosing Party shall own all IP rights in data and information it develops in the course of performing its obligations hereunder and under the Ancillary Agreements. All other data and information provided by each Party (including its Affiliates) and their respective licensors and information and content provided in connection with performance hereunder and under the Ancillary Agreements shall remain the property of such Party.

 

(c)                                                                                  Each Party will securely store data and information owned by or together with the other Party. Such data and information shall be deemed Confidential Information hereunder. If a Receiving Party loses or damages the Disclosing Party’s data and information for storage by the Receiving Party, the Receiving Party shall immediately notify the Disclosing Party in writing of such loss or damage and shall use commercially reasonable efforts to recover and re-process such data and information as soon as reasonably practical and at the Disclosing Party’s own costs.

 

Section 8.4.                                 Information Not Deemed Confidential. Confidential Information does not include information which: (a) is or becomes generally available to the public other than as a result of a disclosure by the Receiving Party or its Affiliates or Representatives in violation of this Agreement; (b) was available to the Receiving Party on a non-confidential basis prior to its disclosure by the Disclosing Party; (c) becomes available to the Receiving Party on a non- confidential basis from a Person other than the Disclosing Party who is not otherwise bound by a confidentiality agreement with the Disclosing Party, or is otherwise not under an obligation to the Disclosing Party not to transmit the information to the Receiving Party; (d) has been independently developed by the Receiving Party and the Receiving Party can so prove; or (e) the Disclosing Party has previously authorized in writing to divulge or communicate to third parties.

 

Section 8.5.                                 Required Disclosures; Notice. In the event that the Receiving Party, or its Representative, as the case may be, is requested pursuant to, or required by, applicable Law or by legal process (including by oral questions, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand or other similar process) to disclose any part of the Confidential Information, or that the Confidential Information has been made available, the Receiving Party, or its Representative, as the case may be, requested or required to make the disclosure shall, if possible, provide the Disclosing Party with prompt notice of any such request or requirement, and cooperate with such Disclosing Party to limit such disclosure in a manner

 

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which attempts to maintain the confidentiality of the subject Confidential Information to the extent permitted by Law including, but not limited to, seeking a protective order or any other appropriate remedy. If, in the absence of a protective order or other remedy or the receipt of a waiver by the Disclosing Party, the Receiving Party, or its Representative, as the case may be, requested or required to make the disclosure is nonetheless, after consultation with counsel, legally compelled to disclose the Confidential Information, the Receiving Party, or its Representative, as the case may be, requested or required to make the disclosure may, without liability hereunder, disclose only that portion of the Confidential Information which it reasonably believes is legally required to be disclosed. Notwithstanding any of the foregoing, a Disclosing Party may, in its sole discretion, waive compliance with the confidentiality provisions of this Agreement.

 

Section 8.6.                                 No Implied Rights. Except as expressly provided in this Agreement, all Confidential Information is and shall remain the property of the Disclosing Party and/or its Affiliates. By disclosing Confidential Information to the Receiving Party, the Disclosing Party and/or its Affiliates do(es) not grant any express or implied rights or license to the Receiving Party and/or its Affiliates to or under any patents, patent applications, inventions, copyrights, trademarks, trade secret information, or other intellectual property rights heretofore or hereafter possessed by the Disclosing Party and/or its Affiliates.

 

Section 8.7.                                 Injunctive Relief. Each Party agrees that, due to the unique nature of the Confidential Information of the other Party, the unauthorized disclosure or use of the Disclosing Party’s Confidential Information may cause irreparable harm and significant injury to such Party, the extent of which shall be difficult to ascertain and for which there may be no adequate remedy at Law. Accordingly, the Receiving Party agrees that the Disclosing Party, in addition to any other available remedies, shall have the right to seek an immediate injunction and other equitable relief enjoining any breach or threatened breach of this Article VIII without the necessity of posting any bond or other security.

 

Section 8.8.                                 Delivery of Data and Information. If so requested in writing, a Party holding any Confidential Information or other data and information owned by the other Party shall promptly deliver such data and information to the other Party, at the requesting Party’s expense, in the format in which the delivering Party holds such Confidential Information or other data and information as of the time of such request. If requested by the requesting Party, after delivery, the delivering Party shall delete or destroy any copies of such Confidential Information or other data and information in the delivering Party’s possession, provided that if the delivering Party requires such information in order to perform an obligation hereunder, then the delivering Party shall not be required to continue to perform such obligation. Notwithstanding the foregoing, (i) if the delivering Party is unable to access the Confidential Information or other data and information using its reasonable best efforts, the delivering Party shall be relieved of its delivery obligation, and (ii) if the delivering Party is unable to delete the Confidential Information or other data and information from its archives using its reasonable best efforts, the delivering Party may retain the relevant Confidential Information or other data and information and provide a copy thereof to the requesting Party. In either event, the delivering Party shall provide notice to the requesting Party that it was unable to deliver or delete such data, and the delivering Party shall be prohibited from using such Confidential Information or other data and information for any purpose unrelated to this Agreement and the Ancillary Agreements and the delivering Party and its Affiliates and Representatives will continue to be bound by its obligations of confidentiality and other obligations

 

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hereunder. Notwithstanding the foregoing, the Receiving Party may retain one (1) copy of the Confidential Information to the extent required by Law or a bona fide internal compliance policies, which Confidential Information shall continue to remain subject to the confidentiality and non-use obligations set forth herein.

 

Section 8.9.                                 Data Privacy.

 

(a)                                                                                 The Parties will treat Confidential Personal Information (as defined below) confidentially and use or disclose Confidential Personal Information only in connection with performing their obligations under this Agreement and under the Ancillary Agreements. The Parties each will restrict disclosure of Confidential Personal Information to their Affiliates, employees or agents who have a need to know such information in connection with performing their obligations under this Agreement and under the Ancillary Agreements. “Confidential Personal Information” means all personally identifiable information about employees, customers and their representatives or any other person whose personally identifiable information is subject to the performance of the Parties’ obligations under this Agreement and under the Ancillary Agreements.

 

(b)                                                                                 Unless otherwise prohibited by Law each Party will promptly notify the other Party of any legal process served on such Party for the purpose of obtaining Confidential Personal Information and, prior to disclosure of any Confidential Personal Information in connection with such process, use its commercially reasonable best efforts to give the other Party adequate time to exercise its legal options to prohibit or limit such disclosure.

 

(c)                                                                                  In furtherance of their obligations under this Article VIII, each Partywill implement appropriate measures designed to meet the following objectives: (a) protect the security and confidentiality of Confidential Personal Information, (b) protect against any anticipated threats or hazards to the security or integrity of such information, (c) protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to the person about whom the Confidential Personal Information refers and (d) otherwise safeguard and protect such information in compliance with all applicable Law.

 

(d)                                                                                 Until such time as the Parties agree on alternate measures to ensure adequate protection of Confidential Personal Information, without limiting the foregoing, in connection with the performance of their obligations under this Agreement and under the Ancillary Agreements, each Party shall comply with a privacy policy mutually agreed by the Parties and meeting any legal requirements applicable to Nikola and/or to CNHI/Iveco. The foregoing provisions also apply to a Party that has access to Confidential Personal Information owned by the other Party (including its Affiliates) for any reason.

 

ARTICLE IX
 MISCELLANEOUS

 

Section 9.1.                                 Relationship of the Parties. The Parties intend to create an independent contractor relationship and nothing contained in this Agreement or the Ancillary Agreements will be construed as creating a joint venture, association, partnership, franchise, or other form of business or relationship except to the extent a partnership is considered to exist for U.S. federal

 

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income tax purposes, and nothing contained in this Agreement or the Ancillary Agreements will be construed as making a Party liable for the debts or obligations of the other Party, unless expressly provided in this Agreement or the Ancillary Agreements.

 

Section 9.2.                                 Non-Solicitation. The Parties agree not to directly or indirectly, solicit, attempt to solicit, hire or attempt to hire any individual then employed or engaged by the other Party at any time during the term of this Agreement and for a period of 180 days after the expiration or termination of this Agreement. CNHI/Iveco agrees that the rights and obligations set forth in the prior sentence will apply to CNHI and its controlled Affiliates (which, for the avoidance of doubt, includes Iveco). The provisions of this Section 9.2 will not apply to individuals hired as a result of the use of an independent employment agency (so long as the agency was not directed to solicit individuals employed by the other Party) or as a result of the use of a general solicitation (such as a newspaper advertisement or on radio, television or internet job site) not specifically directed to such individuals.

 

Section 9.3.                                 Language. The Parties agree that this Agreement, the Ancillary Agreements and all communications exchanged by the Parties pursuant to the Agreement and the Ancillary Agreements will be provided in the English language. If this Agreement or any Ancillary Agreement is translated into another language for the convenience of a Party, the English text will govern any question with respect to interpretation of such Agreement or Ancillary Agreement.

 

Section 9.4.                                 Binding Effect; Assignment. This Agreement binds and inures to the benefit of the parties hereto and their respective successors and assigns. This Agreement and the rights, obligations and remedies hereunder (including any amounts to be paid or received hereunder) shall not be assignable or transferable by either Party (including by operation of Law) without the prior written consent of the other Party (to be given in its sole discretion), except that either Party may assign, delegate or transfer this Agreement to any Affiliate of such Party, or in connection with a merger, acquisition, change of control or sale of substantially all of the assets of such Party related to this Agreement and the Ancillary Agreements.

 

Section 9.5.                                 Entire Agreement; Amendment. This Agreement, including the Ancillary Agreements, any annexes and attachments referred to herein or attached hereto, each of which is incorporated herein for all purposes, constitutes the entire agreement between the Parties with respect to the subject matter hereof. No amendment, modification, change, waiver, or discharge hereof shall be valid unless in writing and signed by an authorized representative of the Party against which such amendment, modification, change, waiver or discharge is sought to be enforced.

 

Section 9.6.                                 Notices. Any notice, notification, request, demand or determination provided by a Party shall be in writing and shall be delivered in hard copy using one of the following methods and shall be deemed delivered upon receipt: (i) personally, (ii) by an internationally recognized express courier with a reliable system for tracking delivery, (iii) by registered or certified mail, return receipt requested, postage prepaid or (iv) by facsimile or email so long as such facsimile or email is confirmed orally or in writing by the recipient thereof. Unless otherwise notified, the foregoing notices shall be delivered as follows:

 

(a)                                                                                 if to CNHI/Iveco:

 

20

 

CNH Industrial N.V. 
 25 St. James’s Street 
 London, SW1A 1HA 
 United Kingdom

 

Attention: General Counsel

 

And

 

Iveco S.p.A. 
 Via Puglia 35
 10135 Turin 
 Italy
 Attention: General Counsel 
 Email:

 

With a copy (which shall not constitute notice) to:

 

Sullivan & Cromwell LLP
 125 Broad Street
 New York, New York 10004 
 Attention: Scott D. Miller 
 Telephone:                       
 Email:

 

if to Nikola:

 

Nikola Corporation
 4141 East Broadway Road 
 Phoenix, AZ 85040
 Attention:                                         Britton Worthen, Chief Legal Officer 
 Email:

 

With a copy (which shall not constitute notice) to:

 

Pillsbury Winthrop Shaw Pittman LLP
 2550 Hanover Street
 Palo Alto, CA, 94304-1115
 Attention:                                         Stanley F. Pierson 
 Telephone:                                                                
 Email:

 

Section 9.7.                                 Counterparts. This Agreement may be executed in several counterparts, all of which taken together shall constitute one single agreement between the Parties hereto.

 

Section 9.8.                                 Severability. If any provision of this Agreement (or any portion thereof) or the application of any such provision (or portion thereof) to any person, entity or circumstance is held to be invalid, illegal or otherwise unenforceable in any respect by a final judgment, order of

 

21

 

a court of competent jurisdiction, such provision shall be deemed to be void and unenforceable. Notwithstanding the preceding sentence, the remaining provisions of this Agreement, if capable of substantial performance, shall remain in full force and effect.

 

Section 9.9.                                 Consents and Approvals. Except where expressly provided as being in the sole discretion of a Party, where any agreement, approval, acceptance, consent, confirmation, determination, notice or similar action by either Party is required under this Agreement, such action shall not be unreasonably conditioned, delayed or withheld. An approval or consent given by a Party under this Agreement shall not relieve the other Party from responsibility for complying with the requirements of this Agreement, nor shall it be construed as a waiver of any rights under this Agreement, except as and to the extent otherwise expressly provided in such approval or consent.

 

Section 9.10.                          No Waiver. A delay or omission by either Party hereto to exercise any right or power under this Agreement shall not be construed to be a waiver thereof. A waiver by either of the Parties hereto of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant herein contained. All waivers must be in writing and signed by the Party waiving its rights.

 

Section 9.11.                          Survival. Any provision of this Agreement or an Ancillary Agreement which contemplates performance or observance subsequent to any termination or expiration of this Agreement shall survive any termination or expiration of this Agreement and continue in full force and effect. Specifically, Sections 4.5, 4.6, 4.7, 6.3, Article III, Article VIII and Article IX shall survive any termination or expiration of this Agreement.

 

Section 9.12.                          No Third Party Beneficiaries. Except for applicable Affiliates ofthe Parties, this Agreement is entered into solely between, and may be enforced only by, Nikola, on the one hand, and CNHI/Iveco, on the other hand, and shall not be deemed to create any rights or causes of action in or on behalf of any third parties, including employees, suppliers and customers of a Party, or to create any obligations of a Party to any such third parties, unless expressly agreed in writing by the Parties.

 

Section 9.13.                          Further Assurances. Each Party covenants and agrees that, subsequent to the execution and delivery of this Agreement and without any additional consideration, each Party shall execute and deliver any further legal instruments and perform any acts that are or may become reasonably necessary to effectuate the purposes of this Agreement.

 

Section 9.14.                          Damages. No Party hereto shall have any liability under any provision of this Agreement or any Ancillary Agreement for any consequential, indirect, exemplary, special, punitive or incidental damages, or damages that result from the application of a multiplier, arising out of the breach or alleged breach of this Agreement or any Ancillary Agreement, except to the extent such damages are payable in connection with:

 

(a)                                                                                 a third party claim;

 

(b)                                                                                 illegal actions;

 

(c)                                                                                  fraud or willful misconduct; or

 

22

 

(d)                                                                                 breaches of confidentiality obligations.

 

Section 9.15.                          Governing Law and Disputes. This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by and construed in accordance with the Law of the State of Delaware, without giving effect to the principles thereof relating to the conflicts of Laws. Except as otherwise provided in Section 4.7, any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought against each Party in the state or federal courts located in the State of Delaware, and each Party consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waive any objection to venue in those courts. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER IN CONTRACT, STATUTE, TORT, OR OTHERWISE) RELATING TO THIS AGREEMENT. Process in any action or proceeding referred to in the preceding sentence may be served on each Party anywhere in the world.

 

Section 9.16.                          Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be borne by the Party incurring such costs and expenses, whether or not a Closing shall have occurred.

 

[SIGNATURE PAGE TO FOLLOW]

 

23

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above.

 

	
 
    	
NIKOLA   CORPORATION
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Trevor Milton
    
	
 
    	
 
    	
Name:   
    	
Trevor   Milton
    
	
 
    	
 
    	
Title:   
    	
CEO
    
	
 
    	
 
    	
 
    
	
 
    	
CNH   INDUSTRIAL N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Massimiliano Chiara
    
	
 
    	
 
    	
Name:   
    	
Massimiliano   Chiara
    
	
 
    	
 
    	
Title:   
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
IVECO   S.p.A.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Gerrit Marx
    
	
 
    	
 
    	
Name:   
    	
Gerrit   Marx
    
	
 
    	
 
    	
Title:   
    	
Pres.   C&SV CNH Ind.
    

 

24

 

EXECUTION VERSION

 

AMENDMENT TO MASTER INDUSTRIAL AGREEMENT

 

This AMENDMENT TO MASTER INDUSTRIAL AGREEMENT (this “Amendment”) is made and entered into as of December 26, 2019, by the undersigned, pursuant to that certain Master Industrial Agreement, dated as of September 3, 2019 (the “Agreement”), by and among CNH Industrial N.V., a public limited liability company (naamloze vennootschap) incorporated under the laws of the Netherlands (“CNHI”), Iveco S.p.A., a Società per Azioni organized and existing under the laws of Italy (“Iveco” and, collectively with CNHI, “CNHI/ Iveco”) and Nikola Corporation, a Delaware corporation (“Nikola”).

 

WHEREAS, pursuant to Section 9.5 of the Agreement, the Agreement may be amended upon the written agreement of Iveco, Nikola and CNHI; and

 

WHEREAS, Iveco, Nikola and CNHI desire to amend the Agreement as set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows:

 

1.              Section 2.1 — General.  Section 2.1(c) of the Agreement is deleted in its entirety and replaced with the following:

 

“To the extent a Term Sheet has not been replaced by a definitive Ancillary Agreement on or prior to the date of this Agreement, the term “Ancillary Agreement” shall include such Term Sheet, and the Parties will work together in good faith to negotiate a definitive Ancillary Agreement with respect to such Term Sheet as soon as reasonably practicable after the date of the Agreement, and in any event by January 31, 2020.  During the time period from the date of this Agreement to the date a definitive agreement is duly executed and delivered, the Parties agree that the relevant Term Sheet represents a binding agreement between the Parties and each of them agrees to perform its obligations under any such Term Sheet as if such Term Sheet were a definitive agreement; provided that unless otherwise expressly provided therein, upon execution and delivery of a definitive agreement, the terms and conditions of the definitive agreement shall be deemed to have been applicable from the date of the applicable Term Sheet.  Notwithstanding the express terms herein and in order to facilitate the mutual success and benefit of both parties, if either Party between the date hereof and January 31, 2020 identifies a term set forth in the Term Sheets that is substantially detrimental to such party, based upon new facts, information, or circumstances, CNHI/Iveco and Nikola shall use in good faith reasonably best efforts to agree upon new terms, provided that: (i) in no event neither the economic value of the contribution in kind made by CNHI/Iveco will be subject to further evaluation, nor the issuance and delivery of the Preferred Shares against such contributions, and (ii) nothing in this clause will be construed as to oblige each of the Party to agree upon an amendment proposed by other Party.”

 

2.              Section 2.2 — S-Way Platform and Product Sharing.  The first sentence of Section 2.2 of the Agreement is deleted in its entirety and replaced with the following:

 

 

“At the Initial Closing or, in any event, no later than January 31, 2020, the Parties shall enter into a S-Way Platform and Product Sharing Agreement in a form substantially consistent with the Term Sheet attached hereto as Exhibit A (the “S-Way Platform and Product Sharing Agreement”).”

 

3.              Section 2.3 — Provision of Technical Assistance Services.

 

(a)                                 The first sentence of Section 2.3 of the Agreement is deleted in its entirety and replaced with the following:

 

“No later than January 31, 2020, the Parties shall enter into a Technical Assistance Service Agreement, in a form substantially consistent with the Term Sheet attached hereto as Exhibit B (the “Technical Assistance Service Agreement”).”

 

(b)                                 The seventh sentence of Section 2.3 of the Agreement is deleted in its entirety and replaced with the following:

 

“Pursuant to this irrevocable commitment, Nikola shall issue and deliver to CNHI/Iveco: (a) prior to December 31, 2019, 269,978 Preferred Shares at a deemed purchase price of $18.52; (b) within three (3) Business Days following the end of the first calendar quarter of 2020, 1,079,914 Preferred Shares at a deemed purchase price of $18.52 per share; and (c) within three (3) Business Days following the end of every calendar quarter of 2020 (other than the first calendar quarter of 2020), 1,349,892 Preferred Shares at a deemed purchase price of $18.52 per share, in each case irrespective of the actual value of the Technical Assistance Services rendered by CNHI/Iveco during the period from the date hereof until December 31, 2019 and during each quarter of 2020; provided, however, that if Nikola’s purchase of services totals less than the Threshold during such period, Nikola may issue additional Preferred Shares at the value of any shortfall on or before such date and have the right to receive such services up to the value of such shortfall after such date.”

 

4.              Exhibit A — S-Way Platform and Product Sharing Term Sheet.  The second sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the S-Way Platform and Product Sharing Term Sheet attached as Exhibit A to the Agreement is deleted in its entirety and replaced with the following:

 

“As soon as practicable and no later than January 31, 2020, the Parties shall work together in good faith to negotiate and enter into a definitive S-Way Platform and Product Sharing Agreement implementing the understandings in this Term Sheet (the “Agreement”) in accordance with Section 2.2 of the Master Industrial Agreement.”

 

5.              Exhibit B — Technical Assistance Service Term Sheet.

 

(a)                                 The first sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the Technical Assistance Service Term Sheet attached as Exhibit B to the Agreement is deleted in its entirety and replaced with the following:

 

 

“As soon as practicable and no later than January 31, 2020, the Parties shall work together in good faith to negotiate a definitive Technical Assistance Service Agreement with respect to this Term Sheet (the “Agreement”) in accordance with Section 2.3 of the Master Industrial Agreement.”

 

(b)                                 The third sentence of Section 4 (Pricing) of the Technical Assistance Service Term Sheet attached as Exhibit B to the Agreement is deleted in its entirety and replaced with the following:

 

“Pursuant to this irrevocable commitment, Nikola shall issue and deliver to CNHI/Iveco: (a) prior to December 31, 2019, 269,978 Preferred Shares at a deemed purchase price of $18.52; (b) within three (3) Business Days following the end of the first calendar quarter of 2020, 1,079,914 Preferred Shares at a deemed purchase Price of $18.52 per share; and (c) within three (3) Business Days following the end of every calendar quarter of 2020 (other than the first calendar quarter of 2020), 1,349,892 Preferred Shares at a deemed purchase price of $18.52 per share, in each case irrespective of the actual value of the Technical Assistance Services rendered by CNHI/Iveco during the period from the date hereof until December 31, 2019 and each quarter of 2020.”

 

6.              Governing Law.  This Amendment shall be governed by and construed in accordance with the Laws of the State of Delaware.

 

7.              Effectiveness.  This Amendment shall become effective as of the date first set forth above.

 

8.              Effect of this Amendment.  In the event of any conflict or inconsistency between the Agreement and this Amendment, this Amendment shall prevail and control.  Except as specifically amended as set forth herein, the Agreement shall remain in full force and effect in accordance with its terms.

 

9.              Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

[Remainder of page intentionally blank]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date set forth in the first paragraph hereof.

 

	
 
    	
IVECO   S.p.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerrit Marx
    
	
 
    	
Name:
    	
Gerrit Marx
    
	
 
    	
Title:
    	
President, Commercial   and Specialty Vehicles, CNH Industrial N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
CNH   INDUSTRIAL N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Massimiliano Chiara
    
	
 
    	
Name:
    	
Massimiliano Chiara
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
NIKOLA   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Britton M. Worthen
    
	
 
    	
Name:
    	
Britton M. Worthen
    
	
 
    	
Title:
    	
Chief Legal Officer
    

 

SIGNATURE PAGE
 AMENDMENT TO MASTER INDUSTRIAL AGREEMENT

 

 

EXECUTION VERSION

 

SECOND AMENDMENT TO MASTER INDUSTRIAL AGREEMENT

 

This SECOND AMENDMENT TO MASTER INDUSTRIAL AGREEMENT (this “Second Amendment”) is made and entered into as of January 31, 2020, by and among CNH Industrial N.V., a public limited liability company (naamloze vennootschap) incorporated under the laws of the Netherlands (“CNHI”), Iveco S.p.A., a Società per Azioni organized and existing under the laws of Italy (“Iveco” and, collectively with CNHI, “CNHI/Iveco”) and Nikola Corporation, a Delaware corporation (“Nikola”).

 

WHEREAS, CNHI/Iveco and Nikola entered into that certain Master Industrial Agreement, dated as of September 3, 2019, as amended by that certain First Amendment to Master Industrial Agreement, dated as of December 26, 2019 (together, the “Agreement”);

 

WHEREAS, pursuant to Section 9.5 of the Agreement, the Agreement may be amended upon the written agreement of Iveco, Nikola and CNHI; and

 

WHEREAS, Iveco, Nikola and CNHI desire to further amend the Agreement as set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows:

 

1.              Section 2.1 — General. Section 2.1(c) of the Agreement is deleted in its entirety and replaced with the following:

 

“To the extent a Term Sheet has not been replaced by a definitive Ancillary Agreement on or prior to the date of this Agreement, the term “Ancillary Agreement” shall include such Term Sheet, and the Parties will work together in good faith to negotiate a definitive Ancillary Agreement with respect to such Term Sheet as soon as reasonably practicable after the date of the Agreement, and in any event by February 29, 2020. During the time period from the date of this Agreement to the date a definitive agreement is duly executed and delivered, the Parties agree that the relevant Term Sheet represents a binding agreement between the Parties and each of them agrees to perform its obligations under any such Term Sheet as if such Term Sheet were a definitive agreement; provided that unless otherwise expressly provided therein, upon execution and delivery of a definitive agreement, the terms and conditions of the definitive agreement shall be deemed to have been applicable from the date of the applicable Term Sheet. Notwithstanding the express terms herein and in order to facilitate the mutual success and benefit of both parties, if either Party between the date hereof and February 29, 2020 identifies a term set forth in the Term Sheets that is substantially detrimental to such party, based upon new facts, information, or circumstances, CNHI/Iveco and Nikola shall use in good faith reasonably best efforts to agree upon new terms, provided that: (i) in no event neither the economic value of the contribution in kind made by CNHI/Iveco will be subject to further evaluation, nor the issuance and delivery of the Preferred Shares against such contributions, and (ii) nothing in this clause will be construed as to oblige each of the Party to agree upon an amendment proposed by other Party.”

 

 

2.              Section 2.2 — S-Way Platform and Product Sharing. The first sentence of Section 2.2 of the Agreement is deleted in its entirety and replaced with the following:

 

“At the Initial Closing or, in any event, no later than February 29, 2020, the Parties shall enter into a S-Way Platform and Product Sharing Agreement in a form substantially consistent with the Term Sheet attached hereto as Exhibit A (the “S-Way Platform and Product Sharing Agreement”).”

 

3.              Section 2.3 — Provision of Technical Assistance Services. The first sentence of Section 2.3 of the Agreement is deleted in its entirety and replaced with the following:

 

“No later than February 29, 2020, the Parties shall enter into a Technical Assistance Service Agreement, in a form substantially consistent with the Term Sheet attached hereto as Exhibit B (the “Technical Assistance Service Agreement”).”

 

4.              Exhibit A — S-Way Platform and Product Sharing Term Sheet. The second sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the S-Way Platform and Product Sharing Term Sheet attached as Exhibit A to the Agreement is deleted in its entirety and replaced with the following:

 

“As soon as practicable and no later than February 29, 2020, the Parties shall work together in good faith to negotiate and enter into a definitive S-Way Platform and Product Sharing Agreement implementing the understandings in this Term Sheet (the “Agreement”) in accordance with Section 2.2 of the Master Industrial Agreement.”

 

5.              Exhibit B — Technical Assistance Service Term Sheet. The first sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the Technical Assistance Service Term Sheet attached as Exhibit B to the Agreement is deleted in its entirety and replaced with the following:

 

“As soon as practicable and no later than February 29, 2020, the Parties shall work together in good faith to negotiate a definitive Technical Assistance Service Agreement with respect to this Term Sheet (the “Agreement”) in accordance with Section 2.3 of the Master Industrial Agreement.”

 

6.              Governing Law. This Amendment shall be governed by and construed in accordance with the Laws of the State of Delaware.

 

7.              Effectiveness. This Amendment shall become effective as of the date first set forth above.

 

8.              Effect of this Amendment. In the event of any conflict or inconsistency between the Agreement and this Amendment, this Amendment shall prevail and control. Except as specifically amended as set forth herein, the Agreement shall remain in full force and effect in accordance with its terms.

 

9.              Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date set forth in the first paragraph hereof.

 

	
 
    	
IVECO S.p.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gerrit Marx
    
	
 
    	
Name:   
    	
Gerrit Marx
    
	
 
    	
Title:   
    	
President, Commercial   and Specialty Vehicles, CNH Industrial N.V.
    
	
 
    	
 
    
	
 
    	
CNH   INDUSTRIAL N.V.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Massimiliano Chiara
    
	
 
    	
Name:   
    	
Massimiliano Chiara
    
	
 
    	
Title:   
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
NIKOLA   CORPORATION
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Britton M. Worthen
    
	
 
    	
Name:   
    	
Britton M. Worthen
    
	
 
    	
Title:   
    	
Chief Legal Officer
    

 

SIGNATURE PAGE

SECOND AMENDMENT TO MASTER INDUSTRIAL AGREEMENT

 

 

EXECUTION VERSION

 

THIRD AMENDMENT TO MASTER INDUSTRIAL AGREEMENT

 

This THIRD AMENDMENT TO MASTER INDUSTRIAL AGREEMENT (this “Amendment”) is made and entered into as of February 28, 2020, by the undersigned, pursuant to that certain Master Industrial Agreement, dated as of September 3, 2019 (the “Agreement”), by and among CNH Industrial N.V., a public limited liability company (naamloze vennootschap) incorporated under the laws of the Netherlands (“CNHI”), Iveco S.p.A., a Società per Azioni organized and existing under the laws of Italy (“Iveco” and, collectively with CNHI, “CNHI/Iveco”) and Nikola Corporation, a Delaware corporation (“Nikola”).

 

WHEREAS, CNHI/Iveco and Nikola entered into that certain Master Industrial Agreement, dated as of September 3, 2019, as amended by that certain First Amendment to Master Industrial Agreement, dated as of December 26, 2019 and that certain Second Amendment to Master Industrial Agreement, dated as of January 31, 2020 (together, the “Agreement”);

 

WHEREAS, pursuant to Section 9.5 of the Agreement, the Agreement may be amended upon the written agreement of Iveco, Nikola and CNHI; and

 

WHEREAS, Iveco, Nikola and CNHI desire to amend the Agreement as set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows:

 

1.              Section 2.1 — General.  Section 2.1(c) of the Agreement is deleted in its entirety and replaced with the following:

 

“To the extent a Term Sheet has not been replaced by a definitive Ancillary Agreement on or prior to the date of this Agreement, the term “Ancillary Agreement” shall include such Term Sheet, and the Parties will work together in good faith to negotiate a definitive Ancillary Agreement with respect to such Term Sheet as soon as reasonably practicable after the date of the Agreement, and in any event by March 31, 2020.  During the time period from the date of this Agreement to the date a definitive agreement is duly executed and delivered, the Parties agree that the relevant Term Sheet represents a binding agreement between the Parties and each of them agrees to perform its obligations under any such Term Sheet as if such Term Sheet were a definitive agreement; provided that unless otherwise expressly provided therein, upon execution and delivery of a definitive agreement, the terms and conditions of the definitive agreement shall be deemed to have been applicable from the date of the applicable Term Sheet.  Notwithstanding the express terms herein and in order to facilitate the mutual success and benefit of both parties, if either Party between the date hereof and March 31, 2020 identifies a term set forth in the Term Sheets that is substantially detrimental to such party, based upon new facts, information, or circumstances, CNHI/Iveco and Nikola shall use in good faith reasonably best efforts to agree upon new terms, provided that: (i) in no event neither the economic value of the contribution in kind made by CNHI/Iveco will be subject to further evaluation, nor the issuance and delivery of the Preferred Shares against such contributions, and (ii)

 

 

nothing in this clause will be construed as to oblige each of the Parties to agree upon an amendment proposed by other Party.”

 

2.              Section 2.2 — S-Way Platform and Product Sharing.  The first sentence of Section 2.2 of the Agreement is deleted in its entirety and replaced with the following:

 

“At the Initial Closing or, in any event, no later than March 31, 2020, the Parties shall enter into a S-Way Platform and Product Sharing Agreement in a form substantially consistent with the Term Sheet attached hereto as Exhibit A (the “S-Way Platform and Product Sharing Agreement”).”

 

3.              Section 2.3 — Provision of Technical Assistance Services.

 

(a)                                 The first sentence of Section 2.3 of the Agreement is deleted in its entirety and replaced with the following:

 

“No later than March 31, 2020, the Parties shall enter into a Technical Assistance Service Agreement, in a form substantially consistent with the Term Sheet attached hereto as Exhibit B (the “Technical Assistance Service Agreement”).”

 

(b)                                 The seventh sentence of Section 2.3 of the Agreement is deleted in its entirety and replaced with the following:

 

“Pursuant to this irrevocable commitment, Nikola shall issue and deliver to CNHI/Iveco: (a) prior to December 31, 2019, 269,978 Preferred Shares at a deemed purchase price of $18.52; (b) within three (3) Business Days following the end of the first calendar quarter of 2020, 1,079,914 Preferred Shares at a deemed purchase price of $18.52 per share; and (c) within three (3) Business Days following CNHI/Iveco’s receipt of the Merger Closing Notice (as defined in the Investment Agreement), 4,049,675 Preferred Shares at a deemed purchase price of $18.52 per share, in each case irrespective of the actual value of the Technical Assistance Services rendered by CNHI/Iveco during the period from the date hereof until the date such shares are issued pursuant to this Section 2.3; provided, however, that if Nikola’s purchase of services totals less than the Threshold during any such period, Nikola shall have the right to receive such services up to the value of such shortfall after such date.”

 

4.              Section 2.7 — Exclusive Industrial Partner.  The following is added as Section 2.7, immediately following the end of Section 2.6 of the Agreement:

 

“Section 2.7 Exclusive Industrial Partner.  Nikola acknowledges and agrees that following the consummation of the business combination transaction (the “Merger”) contemplated by the Business Combination Agreement, dated as of March , 2020, by and among VectoIQ Acquisition Corp., VCTIQ Merger Sub Corp. and Nikola (the “Business Combination Agreement”), CNHI/Iveco will be the exclusive original equipment manufacturer of vehicles classified in U.S.  Federal Highway Administration Classes 6, 7 and 8 based on the vehicles’ gross vehicle weight rating (“Class 6-8 Trucks”), and Nikola will not enter into any strategic transactions, arrangements or agreements with any Person engaged directly in, together with any ultimate parent company of such Person and any

 

 

other subsidiaries of such parent company or such Person, the original equipment manufacturing of Class 6-8 Trucks without the prior written consent of CNHI/Iveco, which shall not be unreasonably withheld.”

 

5.              Section 9.4 — Binding Effect; Assignment.  Section 9.4 of the Agreement is deleted in its entirety and is replaced with the following:

 

“This Agreement binds and inures to the benefit of the parties hereto and their respective successors and assigns.  This Agreement and the rights, obligations and remedies hereunder (including any amounts to be paid or received hereunder) shall not be assignable or transferable by either Party (including by operation of Law) without the prior written consent of the other Party (to be given in its sole discretion), except that either Party may assign, delegate or transfer this Agreement to any Affiliate of such Party, or in connection with a merger, acquisition, change of control or sale of substantially all of the assets of such Party related to this Agreement and the Ancillary Agreements, provided that such successor or assign agrees to be bound by the terms of this Agreement and the Ancillary Agreements.  For the avoidance of doubt, this Agreement will be binding on Nikola’s successor in interest following the Merger.”

 

6.              Section 9.5 — Entire Agreement; Amendment.  Section 9.5 of the Agreement is deleted in its entirety and is replaced with the following:

 

“This Agreement, including the Ancillary Agreements and that certain letter agreement with respect to Business Opportunities in South America, Australia and Asia, dated September 30, 2019, by and between CNHI, Iveco and Nikola (the “Business Opportunities Side Letter”), any annexes and attachments referred to herein or attached hereto, each of which is incorporated herein for all purposes, constitutes the entire agreement between the Parties with respect to the subject matter hereof.  No amendment, modification, change, waiver, or discharge hereof shall be valid unless in writing and signed by an authorized representative of the Party against which such amendment, modification, change, waiver or discharge is sought to be enforced.  For the avoidance of doubt, the Business Combination Agreement and the Merger, shall not amend or modify the terms and conditions of or the obligations of the Parties under this Agreement, any Ancillary Agreements or the Business Opportunities Side Letter.”

 

7.              Exhibit A — S-Way Platform and Product Sharing Term Sheet.  The second sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the S-Way Platform and Product Sharing Term Sheet attached as Exhibit A to the Agreement is deleted in its entirety and replaced with the following:

 

“As soon as practicable and no later than March 31, 2020, the Parties shall work together in good faith to negotiate and enter into a definitive S-Way Platform and Product Sharing Agreement implementing the understandings in this Term Sheet (the “Agreement”) in accordance with Section 2.2 of the Master Industrial Agreement.”

 

 

8.              Exhibit B — Technical Assistance Service Term Sheet.

 

(a)                                 The first sentence of Section 3 (Conversion of this Term Sheet into Definitive Agreements) of the Technical Assistance Service Term Sheet attached as Exhibit B to the Agreement is deleted in its entirety and replaced with the following:

 

“As soon as practicable and no later than March 31, 2020, the Parties shall work together in good faith to negotiate a definitive Technical Assistance Service Agreement with respect to this Term Sheet (the “Agreement”) in accordance with Section 2.3 of the Master Industrial Agreement.”

 

(b)                                 The third sentence of Section 4 (Pricing) of the Technical Assistance Service Term Sheet attached as Exhibit B to the Agreement is deleted in its entirety and replaced with the following:

 

“Pursuant to this irrevocable commitment, Nikola shall issue and deliver to CNHI/Iveco: (a) prior to December 31, 2019, 269,978 Preferred Shares at a deemed purchase price of $18.52; (b) within three (3) Business Days following the end of the first calendar quarter of 2020, 1,079,914 Preferred Shares at a deemed purchase Price of $18.52 per share; and (c) within three (3) Business Days following CNHI/Iveco’s receipt of the Merger Closing Notice (as defined in the Investment Agreement), 4,049,675 Preferred Shares at a deemed purchase price of $18.52 per share, in each case irrespective of the actual value of the Technical Assistance Services rendered by CNHI/Iveco during the period from the date hereof until the date such shares are issued.”

 

9.              Governing Law.  This Amendment shall be governed by and construed in accordance with the Laws of the State of Delaware.

 

10.       Effectiveness.  This Amendment shall become effective as of the date first set forth above.

 

11.       Effect of this Amendment.  In the event of any conflict or inconsistency between the Agreement and this Amendment, this Amendment shall prevail and control.  Except as specifically amended as set forth herein, the Agreement shall remain in full force and effect in accordance with its terms.

 

12.       Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

[Remainder of page intentionally blank]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date set forth in the first paragraph hereof.

 

	
 
    	
IVECO S.p.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gerrit Marx
    
	
 
    	
Name:   
    	
Gerrit Marx
    
	
 
    	
Title:   
    	
President, Commercial   and Specialty Vehicles, CNH Industrial N.V.
    
	
 
    	
 
    
	
 
    	
CNH   INDUSTRIAL N.V.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Massimiliano Chiara
    
	
 
    	
Name:   
    	
Massimiliano Chiara
    
	
 
    	
Title:   
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
NIKOLA   CORPORATION
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Britton Worthen
    
	
 
    	
Name:   
    	
Britton Worthen
    
	
 
    	
Title:   
    	
Chief Legal Officer
    

 

SIGNATURE PAGE
 THIRD AMENDMENT TO MASTER INDUSTRIAL AGREEMENTExhibit 10.14

 

EXECUTION VERSION

 

[*] 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.

 

 

AMENDED AND RESTATED

 

EUROPEAN ALLIANCE AGREEMENT

 

dated as of

 

February 28, 2020

 

between

 

NIKOLA

 

CORPORATION,

 

IVECO S.p.A., and

 

solely with respect to Sections 9.5 and 16.18,

 

CNH INDUSTRIAL N.V.

 

 

 

THIS AMENDED AND RESTATED EUROPEAN ALLIANCE AGREEMENT (this “Agreement”) is made and entered into as of February 28, 2020, by and between Iveco S.p.A., a corporation duly organized and validly existing under the laws of the Republic of Italy, having its principal place of business at, Turin, Italy (“Iveco”) and a wholly-owned subsidiary of CNH Industrial N.V., a public limited liability company incorporated under the laws of the Netherlands (“CNH Industrial”), Nikola Corporation, a corporation duly organized and validly existing under the laws of Delaware, having its principal place of business at Phoenix, Arizona (“Nikola”), and solely with respect to Sections 9.5 and 16.18, CNH Industrial.

 

WHEREAS, Nikola, CNH Industrial and Iveco have entered into a Master Industrial Agreement dated as of September 3, 2019 (the “Master Agreement”), pursuant to which, inter alia, Nikola and Iveco have agreed to establish a European Alliance for the purposes of designing, development, engineering and manufacturing of pure electric (“BEVs”) and hydrogen (“FCEVs”) heavy trucks in the Territory on the basis of Nikola and Iveco Contributions and Nikola and Iveco IP (as defined below);

 

WHEREAS, the original European Alliance Agreement was entered into on October 22, 2019 and amended by that certain Amendment to European Alliance Agreement, dated December 26, 2019 (together, the “Original Agreement”);

 

WHEREAS, Iveco and Nikola wish this Agreement to record and confirm their intention to (i) establish, on or before [*] (the “Target Date”), an entity duly organized and validly existing under the laws of a jurisdiction (the “Jurisdiction”) to be mutually selected by the Parties (the “Company”), (ii) combine certain Iveco Operations (as defined below) and the Nikola License (as defined below) in the Company by way of contribution of such Iveco Operations and Nikola License in the Company, (iii) establish their reciprocal rights and obligations with respect to the Company, and (iv) establish the governance of the Company; and

 

WHEREAS, the parties wish to amend and restate the Original Agreement in its entirety to, among other things, change the definitions of Target Date and Europe and clarify that the Merger (as defined below) shall have no effect on the validity of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereby amend and restate the Original Agreement in its entirety as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

Defined terms in this Agreement shall have the meaning given to them in the Master Agreement, unless otherwise defined herein.  The words in this Agreement have the meanings usually and customarily ascribed to them in commercial contracts, except that words that are defined below or in the Master Agreement have the respective meaning given to them below or in the Master Agreement, as applicable:

 

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under Common Control with such specified Person, and any other Person specifically identified

 

 

and mutually agreed upon by the Parties, provided that for the purposes of this Agreement EXOR N.V., Fiat Chrysler Automobiles N.V. and Ferrari N.V. and their subsidiaries will not be considered to be Affiliates of Iveco;

 

“Appropriate Value” means the value of all of the outstanding Shares as determined in accordance with the provisions of Section 14.3(b);

 

“Appropriate Value Purchase Price” means, with respect to any Shares subject to any Bankruptcy Call Option, an amount equal to the product of (i) the Appropriate Value determined in connection with such Option divided by the number of outstanding Shares, multiplied by (ii) the number of Shares subject to such Bankruptcy Call Option.

 

“Articles of Association” has the meaning given to it at Section 2.1;

 

“BEVs” has the meaning given to it in the Recitals;

 

“Budget” means the budget of the Company for the years 2020—2021 containing a detailed estimate of all revenues, operating expenses, operating cash flows, capital expenditures and financing and funding expenditures to be received or to be incurred by the Company, which the parties will complete on or before the Target Date, and a sample of which, for illustrative purposes only, is attached to this Agreement as Exhibit 1.1A;

 

“Business” means the design, development, manufacturing and sale to Iveco for distribution to customers of BEVs and FCEVs in the Territory;

 

“Business Day” means any day other than a Saturday, Sunday or other day that is a partial or full bank holiday in Italy and the U.S.;

 

“Business Plan” has the meaning given to it in Section 2.4(b);

 

“Change of Control” means, with respect to any Person, any of the following, occurring in a single transaction or in a series of related transactions: (a) the acquisition by another Person of all or substantially all of the assets of the first Person and its subsidiaries, taken as a whole, (b) the acquisition by another Person of more than fifty percent (50%) of the voting power of the first Person then outstanding, (c) the merger, consolidation, business combination, recapitalization, liquidation, dissolution or similar transaction involving the first Person whereby more than fifty percent (50%) of the voting power of the surviving entity is owned or Controlled by another Person, and (d) the occurrence of the events under section 9.6 of the Fourth Amended and Restated Stockholder Agreement attached to the Master Agreement;

 

“Class 6-8 Trucks” means vehicles classified in U.S. Federal Highway Administration Classes 6, 7 and 8 based on the vehicles’ gross vehicle weight rating;

 

“Closing” means the consummation of the transactions and the satisfaction or waiver, as the case may be, of the conditions set forth in Section 3;

 

“CNH Industrial” has the meaning given to it in the first paragraph of this Agreement;

 

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“CNHI Competitor” means any Person engaged directly in, together with any ultimate parent company of such Person and any other subsidiaries of such parent company or such Person, [*];

 

“Contributions” means collectively the Iveco and Nikola Contributions;

 

“Control” (including the terms “Controlled by” and “under Common Control with”) means the possession, directly or indirectly or as trustee or executor, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or credit arrangement or otherwise;

 

“Deploy” means to use design, develop, engineer, manufacture, have manufactured, assemble, service, sell, offer for sale, import and distribute, including with respect to spare parts and components;

 

“Europe” means the following countries: Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Gibraltar (UK), Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan, Vatican City State;

 

“European Supply Agreement” means the supply agreement to be entered into between Iveco and the Company for the sale and purchases of BEVs and FCEVs;

 

“FCEVs” has the meaning given to it in the Recitals;

 

“Fiscal Year” means the 12-month period starting on January 1 and ending on December 31 of a given calendar year;

 

“Governmental Authority” means any government, governmental entity, regulatory authority, department, commission, board, agency or instrumentality, or any court, arbitrator, tribunal or judicial body, whether supranational, regional, national, state or local;

 

“Intellectual Property” means any and all intellectual property or proprietary rights in or with respect to (i) inventions, discoveries and ideas, and all patents, registrations and applications therefor, including divisions, continuations, continuations-in-part and renewal applications, and applications claiming priority thereto, and including renewals, extensions, re-examinations and reissues; (ii) confidential and proprietary information, trade secrets and know-how, including processes, schematics, databases, formulae, drawings, prototypes, models and designs; and (iii) published and unpublished works of authorship (including with respect to computer software), copyrights therein and thereto, and registrations and applications therefor, and all renewals, extensions, restorations and reversions thereof);

 

4

 

“Iveco Contribution” means the contribution in cash and/or in kind, as the case may be, to be made by Iveco at Closing;

 

“Iveco Group” means Iveco and its Affiliates;

 

“Iveco IP” means the Intellectual Property relating to the S-Way Platform (as described in Exhibit 2.3(b) under the heading “S-Way Platform”) that Iveco or any of its current Affiliates owns or has the right to license or sublicense during a then-applicable Term that are necessary or useful in connection with the Deployment of BEVs or FCEVs, including, for the avoidance of doubt, any S-Way Platform Intellectual Property in or to the Iveco Technical Information, and any Improvements to any of the foregoing;

 

“Iveco IP License” has the meaning given to it in Section 2.3(c);

 

“Iveco Plant” has the meaning given to it in Section 2.3(a);

 

“Iveco Shares” means the shares of the Company to be issued on or before the Closing and to be delivered to Iveco in exchange for its contribution;

 

“Iveco Technical Information” means information and materials described on Exhibit 2.3(b) under the heading “S-Way Platform”;

 

“Law” means any domestic or foreign or supranational government, or governmental, regulatory or administrative law, rule, regulation, order, judgment or decree;

 

“Jurisdiction” has the meaning given to it in the Recitals;

 

“LCIA” means the London Court of International Arbitration;

 

“Licenses” means, collectively, the Nikola License, the S-Way BEV License and the Iveco IP License;

 

“Managerial Report” means reports prepared by the Company which are progress reports setting out the status of the Business as compared to the Business Plan, the Yearly Business Plan, the Budget or the Yearly Budget;

 

“Material Adverse Effect” means, with respect to a Person, any change, effect or circumstance that is or is reasonably likely to be materially adverse to the business, results of operations or financial condition of such Person and its Subsidiaries, taken as a whole, other than any change, effect or circumstance relating to or resulting from (i) general changes in the heavy trucks industry, (ii) changes in general economic conditions or securities markets in general or (iii) this Agreement;

 

“Merger” means the proposed business combination transaction contemplated by the Business Combination Agreement, dated as of March        , 2020, by and among VectoIQ Acquisition Corp., VCTIQ Merger Sub Corp. and Nikola.

 

5

 

“Nikola Contribution” means the contribution in cash and/or in kind, as the case may be, to be made by Nikola at Closing;

 

“Nikola Group” means Nikola and its Affiliates;

 

“Nikola IP” means all Intellectual Property that Nikola or any of its Affiliates owns or has the right to license or sublicense during a then-applicable Term that are necessary or useful in connection with the Deployment of BEVs or FCEVs, including, for the avoidance of doubt, any Intellectual Property in or to the Nikola Technical Information, and any Improvements to any of the foregoing;

 

“Nikola License” has the meaning given to it in Section 2.3(c)(i);

 

“Nikola Shares” means the shares of the Company that on or before Closing will be issued and are to be delivered to Nikola in exchange for its contribution;

 

“Nikola Technical Information” means the information and materials described on Exhibit 2.3(b) under the heading “Nikola Technology,” and any other information or materials that Nikola or any of its Affiliates owns or otherwise has the right to provide during a then-applicable Term that are necessary or useful in connection with the Deployment of BEVs or FCEVs;

 

“North America” means the United States of America, Canada and Mexico;

 

“North American Supply Agreement” means the supply agreement to be entered into between Nikola and the Company for the sale and purchases of BEVs and FCEVs in North America;

 

“Party” means, either, Iveco or Nikola;

 

“Parties” means collectively Iveco and Nikola;

 

“Person” means an individual, corporation, limited liability company, partnership, limited partnership, syndicate, person, trust, association or entity or government, political subdivision, agency or instrumentality of a government;

 

“Preliminary Business Plan” means the preliminary business plan for Fiscal Years 2020—2025 of the Company prepared attached to this Agreement as Exhibit 1.1B;

 

“Senior Managers” means any of the officers of the Company directly reporting to the Chief Executive Officer of the Company;

 

“Shares” means collectively the Iveco Shares and the Nikola Shares;

 

“Statement of No-Confidence” means a written statement addressed by one Party to the other Party, stating the reasons for which the Party making such statement has lost its confidence in the capacity of the Chairman or the Chief Executive Officer to properly fulfill

 

6

 

his or her duties and responsibilities in accordance with the scope, targets and criteria set forth in this Agreement;

 

“Steering Committee” means the Steering Committee, the establishment of which is provided for in Section 3 of the Master Agreement;

 

“S-Way BEV” means the BEV developed by Nikola on the basis of Nikola IP and the S-Way License granted to Nikola under the Master Agreement;

 

“Sub-suppliers” has the meaning given to it in the Master Agreement;

 

“Target Date” means [*];

 

“Territory” means Europe;

 

“Valuation Notice” has the meaning given to it in Section 13.5;

 

“Yearly Budget” means the annual update of the Budget; and

 

“Yearly Business Plan” means the annual update of the Business Plan, prepared on a rolling five (5)-year basis.

 

1.2                               Additional Definitions

 

Each of the following terms is defined in the Section mentioned opposite the term:

 

	
Term
    	
 
    	
Section
    
	
 
    	
 
    	
 
    
	
“Acquiring Party”
    	
 
    	
9.4
    
	
 
    	
 
    	
 
    
	
“Acquiror Resolution”
    	
 
    	
13.5
    
	
 
    	
 
    	
 
    
	
“Agreement”
    	
 
    	
Preamble
    
	
 
    	
 
    	
 
    
	
“Applications”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Appraiser”
    	
 
    	
14.1
    
	
 
    	
 
    	
 
    
	
“Auditor”
    	
 
    	
6.5
    
	
 
    	
 
    	
 
    
	
“Bankrupt Party”
    	
 
    	
13.3(a)
    
	
 
    	
 
    	
 
    
	
“Bankruptcy Call Notice”
    	
 
    	
13.3(c)
    
	
 
    	
 
    	
 
    
	
“Bankruptcy Call Option”
    	
 
    	
13.3(c)
    
	
 
    	
 
    	
 
    
	
“Bankruptcy Event”
    	
 
    	
13.3(a)
    
	
 
    	
 
    	
 
    
	
“BEVs/FCEVs Spare Parts”
    	
 
    	
2.5(f)
    
	
 
    	
 
    	
 
    
	
“Board”
    	
 
    	
4.2(a)
    
	
 
    	
 
    	
 
    
	
“Breach”
    	
 
    	
13.2(a)
    
	
 
    	
 
    	
 
    
	
“Breaching Party”
    	
 
    	
13.2(a)
    

 

7

 

	
Term
    	
 
    	
Section
    
	
 
    	
 
    	
 
    
	
“Chairman”
    	
 
    	
4.2(c)
    
	
 
    	
 
    	
 
    
	
“Change of Control Call   Option”
    	
 
    	
13.5(e)
    
	
 
    	
 
    	
 
    
	
“Change of Control Notice”
    	
 
    	
13.5
    
	
 
    	
 
    	
 
    
	
“Chief Executive Officer”
    	
 
    	
4.2(d)
    
	
 
    	
 
    	
 
    
	
“CNHI Offer”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Company”
    	
 
    	
Recitals
    
	
 
    	
 
    	
 
    
	
“Competing Business”
    	
 
    	
9.4
    
	
 
    	
 
    	
 
    
	
“Deadlock”
    	
 
    	
12.1
    
	
 
    	
 
    	
 
    
	
“Deadlock Notice”
    	
 
    	
12.1
    
	
 
    	
 
    	
 
    
	
“Directors”
    	
 
    	
4.2(a)
    
	
 
    	
 
    	
 
    
	
“Dispute”
    	
 
    	
16.15
    
	
 
    	
 
    	
 
    
	
“Distributor”
    	
 
    	
2.5(b)
    
	
 
    	
 
    	
 
    
	
“Equivalent Price”
    	
 
    	
9.4
    
	
 
    	
 
    	
 
    
	
“European Supply Spare Parts   Agreement”
    	
 
    	
2.5(f)
    
	
 
    	
 
    	
 
    
	
“Exit Notice”
    	
 
    	
13.1(f)
    
	
 
    	
 
    	
 
    
	
“Exit Notifying Party”
    	
 
    	
13.1(f)
    
	
 
    	
 
    	
 
    
	
“Exit Receiving Party”
    	
 
    	
13.1(f)
    
	
 
    	
 
    	
 
    
	
“Involved Company”
    	
 
    	
9.4
    
	
 
    	
 
    	
 
    
	
“Iveco Directors”
    	
 
    	
4.2(a)
    
	
 
    	
 
    	
 
    
	
“Iveco Operations”
    	
 
    	
2.3(a)(i)
    
	
 
    	
 
    	
 
    
	
“Last Call Notice”
    	
 
    	
13.5(e)
    
	
 
    	
 
    	
 
    
	
“Liquidation Committee”
    	
 
    	
15.1
    
	
 
    	
 
    	
 
    
	
“Liquidation Expert”
    	
 
    	
15.2
    
	
 
    	
 
    	
 
    
	
“Liquidation Principles”
    	
 
    	
15.1
    
	
 
    	
 
    	
 
    
	
“Master Agreement”
    	
 
    	
Recitals
    
	
 
    	
 
    	
 
    
	
“New Technology”
    	
 
    	
2.5(h)(ii)
    
	
 
    	
 
    	
 
    
	
“Nikola Directors”
    	
 
    	
4.2(a)
    
	
 
    	
 
    	
 
    
	
“Nikola License Fees”
    	
 
    	
2.3(a)(i)
    
	
 
    	
 
    	
 
    
	
“Non-Bankrupt Party”
    	
 
    	
13.3(a)
    
	
 
    	
 
    	
 
    
	
“Non-Breaching Party”
    	
 
    	
13.2(a)(c)
    
	
 
    	
 
    	
 
    
	
“Non-Valuation Notice”
    	
 
    	
13.5(c)
    

 

8

 

	
Term
    	
 
    	
Section
    
	
 
    	
 
    	
 
    
	
“Notifying Party”
    	
 
    	
13.5(c)
    
	
 
    	
 
    	
 
    
	
“OEMs”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Request for Arbitration”
    	
 
    	
12.1(d)
    
	
 
    	
 
    	
 
    
	
“Request for Informal Dispute   Resolution”
    	
 
    	
16.15
    
	
 
    	
 
    	
 
    
	
“ROFO Notice”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Rules”
    	
 
    	
16.16
    
	
 
    	
 
    	
 
    
	
“Solicitation”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Term”
    	
 
    	
13.1(b)
    
	
 
    	
 
    	
 
    
	
“Third Party Offer”
    	
 
    	
9.5
    
	
 
    	
 
    	
 
    
	
“Transfer”
    	
 
    	
7.1(a)
    
	
 
    	
 
    	
 
    
	
“Unresolved Deadlock”
    	
 
    	
12.2(d)
    
	
 
    	
 
    	
 
    
	
“Valuation Methodologies”
    	
 
    	
14.2
    
	
 
    	
 
    	
 
    
	
“Vice Chairman”
    	
 
    	
4.2(c)
    

 

1.3                               Interpretation and Rules of Construction

 

In this Agreement, including its Exhibits and Annexes, except to the extent otherwise provided or that the context otherwise requires: (a) when a reference is made in this Agreement to a Section, Exhibit or Annex, such reference is to a Section of, or an Exhibit or Annex to this Agreement unless otherwise indicated; (b) the headings for this Agreement or an Exhibit or Annex to this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement, its Exhibits and Annexes; (c) whenever the words “include,” “includes” or “including” are used in this Agreement, its Exhibits and Annexes, they are deemed to be followed by the words “without limitation”; (d) the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, its Exhibits and Annexes refer to this Agreement as a whole and not to any particular provision of this Agreement, its Exhibits and Annexes; (e) the definitions contained in this Agreement, its Exhibits and Annexes are applicable to the singular as well as the plural forms of such terms; (f) references to a Person are also to the Person’s successors and permitted assignees; and (g) reference to agreements and Laws are also the same as amended, restated or otherwise modified from time to time.

 

2.                                      FORMATION, CONTRIBUTION AND PURPOSE OF THE COMPANY

 

2.1                               Formation

 

On or before Closing, under the supervision of the Steering Committee, the Parties will take appropriate corporate resolutions and actions so as to incorporate the Company under the laws of the Jurisdiction.  The articles of association or comparable organizational

 

9

 

documents of the Company based on the Jurisdiction will be mutually agreed upon by the Parties (the “Articles of Association”).  The name of the Company will include the corporate names of Iveco and Nikola.

 

2.2                               Capitalization

 

On or before Closing, the Parties will take appropriate corporate resolutions and actions to ensure that the Company will issue and deliver to each of Iveco and Nikola exactly 50% of the share capital of the Company in exchange for the Iveco Contribution and the Nikola Contribution, respectively.  It is the intention of the Parties that, except as otherwise provided for in this Agreement or as subsequently agreed to by the parties in writing, the ratio of shareholding between Iveco Group and Nikola Group shall, at all times, be equal.

 

2.3                               Contribution

 

(a)                                 Contribution Principles — IP Licenses

 

(i)                                     Contribution

 

Each party shall contribute, and shall procure as necessary, on or before Closing equal amounts of cash and equal amounts of in kind contribution necessary to subscribe for 50% of the capital stock of the Company in accordance with this Agreement and the Business Plan.

 

Should the Steering Committee determine that the Company will utilize one of the current Iveco (or of any of its Affiliates) plants or a portion of it (the “Iveco Plant”), Iveco (or any of its Affiliates) will provide, as part of the Iveco Contribution, a long-term lease of such Iveco Plant, together with all the relevant assets, liabilities and personnel (the “Iveco Operations”) for a term that shall be equal to the terms of this Agreement.

 

Should the Parties agree that the long-term lease of the Iveco Plant will constitute part of the Iveco Contribution, the Company and Iveco will enter into a long-term lease agreement and such long-term lease shall be charged to the Company at its fair market value, to be determined by the Parties.  In such event, the Company shall also enter into a line of business sale and purchase agreement with the appropriate Iveco Affiliate to ensure that at Closing the relevant assets, liabilities and personnel will be transferred to the Company.  For clarity, if the long-term lease is not contributed as part of the Iveco Contribution, the Company shall pay rental fees to Iveco; provided, however, that the Company shall not pay any long-term rental fee to Iveco until such time that the Company has reported net profits for a given Fiscal Year and achieved a solid and stable cash position to allow the payment of the rental fees without generating a negative cash-flow to the Company for a given fiscal year.  The commencement of rental payments to Iveco will be approved by the Company’s Board.

 

Iveco shall undertake any action necessary to ensure that in the framework of the contribution of the Iveco Operations no assets, business, or interests other than those related to and necessary to the Company, nor any liability unrelated to the Business that will be

 

10

 

pursued by the Company, are attributed to the Company at Closing.  The Iveco Operations shall be contributed free of any liens, charges or other third-party rights.  The Iveco Operations will be contributed by way of deed or equivalent instrument under the applicable Law substantially in accordance with the term sheet set forth in Exhibit 2.3(a)(i).

 

(b)                                 Technology Documentation

 

(i)                                     On the timelines set forth in Exhibit 2.3(b), and otherwise upon the Company’s reasonable written request, (A) Nikola shall deliver to the Company copies of all Nikola Technical Information, and (B) Iveco shall deliver to the Company copies of all Iveco Technical Information, in each case, in a reasonable form and format and in a manner consistent with industry practices.

 

(ii)                                  As reasonably requested by the Company from time to time, Nikola and Iveco and each of their respective Affiliates shall, in the manner described under Exhibit 2.3(b), provide the Company with reasonable access to their respective employees (or employees of their respective Affiliates) as reasonably necessary for the Company to incorporate and implement the Nikola Technical Information and Iveco Technical Information, as applicable, in connection with the Deployment of BEVs and FCEVs.

 

(c)                                  IP Licenses

 

On or before Closing:

 

(i)                                     Nikola hereby grants and shall grant, and shall cause its Affiliates to grant to the Company, an exclusive, royalty-free (except as set forth on Exhibit 2.3(c)), non-sublicensable (except as set forth in this Section 2.3(c)), non-assignable, irrevocable (solely until the termination or expiration of the final Term) license under the Nikola IP to Deploy BEVs and FCEVs in the Territory in accordance with the terms of this Agreement (the “Nikola License”).  The Company shall pay to Nikola certain licensing fees in exchange for the Nikola License in accordance with Exhibit 2.3(c) (the (“Nikola License Fees”).  The Nikola License is exclusive, even as to Nikola and its Affiliates, with respect to any Deployment of electric and hydrogen trucks (including BEVs and FCEVs) in the Territory.  The Company shall not be required to pay any Nikola License Fees until such time that the Company has reported net profits for a given Fiscal Year and achieved a solid and stable cash position to allow the payment of the Nikola License Fees without generating a negative cash-flow to the Company for a given Fiscal Year.

 

(ii)                                  In case Nikola elects to charge Nikola’s License Fee with an initial lump sum, in no event shall such lump sum exceed the total value of the long-term lease of the Iveco Plant.

 

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(iii)                               The Company shall have the right to freely access Nikola suppliers, and Nikola shall use its commercially reasonable efforts to facilitate the Company’s access to know-how and technical information controlled by such suppliers with respect to certain key components (as further described in Exhibit 2.3(c)) developed by such suppliers to meet the technical requirements of Nikola.

 

(iv)                              Effective as of the Closing, Nikola hereby grants and shall grant, and shall cause its Affiliates to grant, to the Company, an exclusive, royalty-free (except as set forth on Exhibit 2.3(c)), non-sublicensable (except as set forth in this Section 2.3(c)), non-assignable, irrevocable (solely until the termination or expiration of the final Term) license under any Nikola IP for the Company to Deploy the S-Way BEV in the Territory (the “S-Way BEV License”).  The S-Way BEV License is exclusive, even as to Nikola and its Affiliates, with respect to any Deployment of electric and hydrogen trucks (including BEVs and FCEVs) in the Territory.  Solely to the extent necessary to permit Nikola to grant the S-Way BEV License to the Company on the terms set forth under this Agreement, Iveco hereby waives any territorial restrictions set forth under the S-Way Platform and Product Sharing Term Sheet that would prohibit such grant.

 

(v)                                 Effective as of the Closing, Iveco hereby grants and shall grant, and shall cause its Affiliates to grant, to the Company, a non-exclusive, royalty-free, non-sublicensable (except as set forth in this Section 2.3(c)), non- assignable, irrevocable (solely until the termination or expiration of the final Term) license under the Iveco IP to Deploy BEVs and FCEVs in the Territory in accordance with the terms of this Agreement (the “Iveco IP License”).

 

(vi)                              Subject to appropriate confidentiality obligations, the Company shall have the right to grant non-exclusive sublicenses to any of its Sub-suppliers with or without consent, for the design, manufacture and supply of localized components and spare parts in connection with the Company’s Deployment of BEVs and FCEVs in the Territory, without violating any third-party right.  Any other sublicensing of the licenses granted under this Section 2.3 shall be subject to the applicable licensing Party’s prior written consent, which shall not be unreasonably withheld.

 

(d)                                 Costs and Expenses

 

(i)                                     Between the date hereof and Closing, the Parties shall consult one another in relation to their respective Contributions and provide one another with any relevant information in this respect, including any information about the anticipated time necessary to complete the Contributions.

 

(ii)                                  Each Party shall bear its costs (including taxes) related to its Contributions (including but not limited to advisory fees and the like).

 

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2.4                               Purpose of the Company — Business Plan

 

(a)                                 Purpose of the Company

 

The purpose of the Company will be to develop and manufacture competitive BEVs and FCEVs within the Territory exclusively for the benefit of Iveco and Nikola, by adopting any appropriate quality improvement, plant optimization, cost reduction, common components development and manufacturing, and any other technical optimization.

 

The first operational target of the Company will be to leverage the Iveco and Nikola Contribution and Licenses with the aim of starting manufacturing in the Territory of BEVs in Fiscal Year [*] and of FCEVs in Fiscal Year [*].

 

(b)                                 The Business Plan

 

Between the date hereof and Closing, the Parties, under supervision of the Steering Committee, will revise and update the Preliminary Business Plan.  On or before the Closing, such revision of the Preliminary Business Plan shall be presented for approval by the Board (following Board approval, the “Business Plan”).

 

2.5                               Operations of the Company

 

The Company will use commercially reasonable efforts to minimize costs and maximize synergies.  All synergies will be passed back to the Parties and/or their respective Affiliates in accordance with the European Supply Agreement and applicable future arrangements among each of the Parties and the Company.  In addition, the Company will conduct its operations in accordance with the operating principles set forth below.

 

(a)                                 Leveraging

 

The Company shall endeavor to utilize and leverage upon the Contributions of the Parties and to the extent commercially reasonable by utilising any other existing capabilities of the Iveco and Nikola Groups, respectively.

 

(b)                                 Brands, homologation, distribution and service

 

The Company shall manufacture products under the unique brand, for example “Nikola made by Iveco,” subject to Iveco’s and Nikola’s prior written consent and license for any use or display of their respective trademarks and service marks.

 

The Company shall sell its products exclusively to the Iveco Group (the “Distributor”) in accordance with the terms and conditions of the European Supply Agreement.  Homologation of Company products shall be completed under Iveco’s name to ensure that Iveco will be treated as the registered manufacturer and sole distributor of all Company products in the Territory.  Iveco shall receive all carbon dioxide (“CO2”) credits provided by the European Union for all Company products [*].  To the extent there is a subsidy or other benefit that can be monetized, including a carbon tax credit, Iveco and Nikola agree to share equally in those benefits.

 

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Iveco shall have the sole responsibility to distribute any such products sold by the Company and provide assistance through Iveco’s own distribution channels selected and appointed in accordance with any applicable Law.

 

Nikola and Iveco will use commercially reasonable efforts to ensure that the BEVs and FCEVs produced by the Company will utilize/fill at Nikola’s hydrogen stations in the Territory on a non-exclusive basis when these become available.  Moreover, Nikola shall provide access to its hydrogen stations for other CNH Industrial products at conditions to be defined.

 

Homologation, production and distribution flows will be set up and, if needed, adjusted to allow both Nikola and Iveco to comply with European emission policies in force in 2025 and beyond.

 

(c)                                  Production

 

If the Company does not enter into a long-term lease agreement with Iveco for the Iveco pursuant to Section 2.3(a) on or before the Closing, the Parties shall identify the Company’s manufacturing site in accordance with the Business Plan as revised on or before Closing.  The initial installed capacity of this manufacturing site shall be of [*] trucks per year in [*] shifts.

 

(d)                                 Service Agreements

 

As part of the Parties’ overall relationship in the context of the Master Agreement and this Agreement, Iveco and Nikola, if required by the Company, shall enter into, or cause their Affiliates to enter into, any service agreement to allow the Company the benefit of such services provided by either Party (e.g., technical assistance).  The pricing policies for the supply of such services will be, unless otherwise agreed in writing, based on a cost plus fee mechanism.

 

(e)                                  Production Forecasting and Allocation of Manufacturing Capacity

 

The Parties will agree in writing no later than December 31, 2020, on the forecast and ordering procedure, scheduling and capacity planning process and allocation of manufacturing capacity of the Company.  Iveco, Nikola and the Company shall consult with one another regarding this forecast activity and the product planning.  The Company will propose product alternatives and product portfolio reconciliation to optimize cost savings, quality, technology and delivery.

 

The implementation of any material change that either Party intends to propose with respect to the product program or capacity requires prior approval of the Board, which shall consult in advance with the Steering Committee on such proposed change.

 

Following the Closing and subject to the above provisions, the Board of Directors of the Company will revise on a quarterly basis the forecast and ordering in consultation with each Party and will make the necessary amendments to satisfy the requirements of each Party.

 

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(f)                                   Spare Parts

 

The Company shall supply BEVs and FCEVs spare parts (“BEVs/FCEVs Spare Parts”) manufactured by the Company for the benefit of the Iveco Group in the Territory in accordance with the terms and conditions of the European Spare Parts Supply Agreement to be agreed upon no later than December 31, 2020 (the “European Spare Parts Supply Agreement”).  The supply of BEVs/FCEVs Spare Parts will be based on [*].  The Company shall continue to supply spare parts in order to meet each of the Iveco requirements for spare parts for 10 years after Iveco Group ceases to purchase either BEVs or FCEVs.  Except as otherwise provided in the European Supply Agreements, the Iveco Group may purchase BEVs/FCEVs Spare Parts from third parties, [*].  Iveco may sell BEV/FCEV spare parts directly to their dealers and final customers only, provided that in no event the Company may sell or otherwise transfer BEV/FCEV Spare Parts to third parties other than members of the Iveco Group.

 

(g)                                  Purchasing

 

The Company may enter into purchasing arrangements at arm’s-length terms and conditions with either Iveco or Nikola or both to leverage upon the existing purchasing operations of either Nikola or Iveco or both in respect of sourcing of components, spare parts and raw materials.  The Company will consult with the Steering Committee before entering into such arrangements.

 

(h)                                 Intellectual Property

 

(i)                                     Improvements:

 

The Company’s licenses granted under Section 2.3(c) automatically extend (at no cost) to any Improvements to the Iveco IP and the Nikola IP developed during any Term of this Agreement.

 

The Company will own all Intellectual Property in or to any Improvement directly developed by or on behalf of the Company in respect of the Iveco IP and the Nikola IP.

 

In respect of such Improvements, the Company hereby grants, (A) to Iveco and its Affiliates, and, (B) to Nikola and its Affiliates, a fully assignable, fully sublicensable, worldwide, fully paid-up, royalty-free perpetual and irrevocable right and license under any and all Improvements made with respect to Iveco IP and Nikola IP to Deploy any products or services of Iveco or any of its current affiliates and Nikola or any of its current Affiliates.

 

Unless otherwise agreed in writing, the Company, Iveco and Nikola will own an undivided joint ownership interest, with no duty of accounting to each other, any Improvement for which the Company, Iveco and Nikola jointly share development costs.  The Parties shall further agree to reasonable conditions and procedures with respect to the registration, maintenance, enforcement and licensing of any material Improvements that are jointly owned between the Parties.  The Company, Iveco and Nikola each hereby assigns to each

 

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other an undivided joint ownership interest in and to such jointly owned Improvements described in this paragraph.

 

The Company shall use commercially reasonable efforts to require that any Sub-supplier that is sublicensed to use any Iveco IP or Nikola IP to expressly assign to the Company any Intellectual Property that would constitute an Improvement.  If and to the extent any such Intellectual Property in or to any Improvements in not assigned from Sub-suppliers to Company, the Company shall use its commercially reasonable efforts to cause the applicable Sub-suppliers to grant to Iveco and Nikola a worldwide, royalty-free, sublicensable, assignable, perpetual and irrevocable license for use of such Improvements for any purpose.  The Company and the Parties shall use commercially reasonably efforts to, as soon as reasonably practicable, jointly define the terms and conditions by which Iveco and Nikola will be permitted to exploit and use the Improvements before engaging Sub-suppliers that will, or are reasonably expected to, develop any Improvements.

 

For the purposes of this agreement the term “Improvement” means collectively any upgrades, modifications and enhancements to the Iveco IP or the Nikola IP made by or on behalf of the Company during any Term of the Agreement (which typically involve: (1) product cost reduction initiatives, (2) improvements designed to optimize product performance, or (3) non-material adaptation work for new supplier items). “Improvement” specifically excludes Intellectual Property developed pursuant to significant investments such as new platforms or platform versions.

 

Except as otherwise expressly set forth in this agreement, investments or expenditures that are necessary or advisable in order for the Company to exploit the Iveco IP and Nikola IP shall be borne by the Company.

 

(ii)                                  New Technology:

 

With respect to any technology developed for or by the Company that does not qualify as an Improvement in accordance with the section above (hereinafter referred to as a “New Technology”), unless otherwise agreed in writing, the Company, Iveco and Nikola will own an undivided joint ownership interest, with no duty of accounting to each other, in the New Technology for which the Company, Iveco and Nikola jointly share development costs.

 

The Parties shall further agree on reasonable procedures to facilitate each Party’s ability to exercise its rights to any Improvements and New Technology created during the term of the Agreement.

 

(iii)                               Code of Conduct

 

The Parties shall cause the Company to establish as soon as possible after Closing a code of conduct, setting out the basic rules concerning, inter alia, compliance with applicable Laws, anti-bribery policies, treatment of confidential or proprietary information, relations with suppliers, human resources and other matters.

 

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3.                                      CLOSING

 

Closing of this Agreement is conditional upon the following conditions having been fulfilled or (if capable of waiver) waived:

 

(a)                                 Conditions in favor of Iveco:

 

(i)                                     The Nikola contribution having been completed in accordance with this Agreement and its Exhibits;

 

(ii)                                  No Governmental Authority having taken, or threatened to take, any action that would have the effect of making any of the transactions contemplated by this Agreement prohibited or illegal or otherwise having, or reasonably likely to have, a Material Adverse Effect on Iveco.

 

(b)                                 Conditions in favor of Nikola:

 

(i)                                     The Iveco Contribution having been completed in accordance with this Agreement and its Exhibits;

 

(ii)                                  Iveco and the Company having entered into the Iveco IP License;

 

(iii)                               No Governmental Authority having taken, or threatened to take, any action that would have the effect of making any of the transactions contemplated by this Agreement prohibited or illegal or otherwise having, or reasonably likely to have, a Material Adverse Effect on Nikola.

 

(c)                                  Conditions Precedent in favor of each Party:

 

(i)                                     The Company having been established and incorporated under the laws of the Jurisdiction in accordance with the provisions of this Agreement;

 

(ii)                                  The Parties, by virtue of a resolution of the Steering Committee or otherwise, having agreed (i) whether or not the Company shall enter into a long-term lease for the Iveco Plant and/or whether Iveco shall make available any other Iveco Operations, and (ii) the values of the Iveco and Nikola Contributions in accordance with this Agreement;

 

(iii)                               The Iveco Contributions and the Nikola Contribution having been contributed (including any necessary adjustment in kind or in cash, as the case may be, to reflect any difference in value between the date hereof and Closing) in accordance with the provisions of this Agreement and the determinations of the Steering Committee and shares of the Company having been issued and delivered to each of the Parties pursuant to Section 2.2 hereof such that upon the Closing Iveco and Nikola will hold all of the stock of the Company in equal amounts;

 

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(iv)                              The Company will have taken all the required and appropriate corporate resolutions (including the appointment of the Board of Directors and the Auditor) in accordance with this Agreement so that the Closing be consummated in a timely and orderly fashion;

 

(v)                                 The Company will have entered into with Iveco the European Supply Agreement;

 

(vi)                              The Company will have entered into with Nikola the North American Supply Agreement;

 

(vii)                           In the event the Iveco Contribution includes the Iveco Plant, any appropriate trade unions notification or consultation process necessary or appropriate for the transfer of the Iveco personnel included in the Iveco Operations from the relevant Iveco Affiliate will have been duly completed;

 

(viii)                        In the event the Iveco Contribution includes the Iveco Plant, the Company will have entered into a lease agreement, sale and purchase line of business agreement with the appropriate Iveco Affiliate to ensure that the Iveco Operations are transferred to the Company;

 

(ix)                              Iveco and Nikola, each for their respective part, will have entered into the license agreements and instruments described in Section 2.3(a)(ii);

 

(x)                                 The Parties shall have agreed on the Business Plan and such Business Plan shall have been adopted by the Board of the Company; and

 

(xi)                              The approval of the transactions contemplated by this Agreement by the competition authorities in the jurisdictions set forth in Exhibit 3(c)(xi) (as may be updated by the Parties prior to Closing) having been obtained or the applicable waiting periods having expired.

 

4.                                      CORPORATE GOVERNANCE OF THE COMPANY

 

4.1                               General Meetings

 

(a)                                 Annual General Meeting

 

The Company shall hold its annual general Parties meeting in accordance with the provisions set forth in the Articles of Association.

 

(b)                                 Extraordinary General Meetings

 

The Company shall hold its extraordinary general Parties meetings in accordance with the provisions set forth in the Articles of Association.

 

(c)                                  Quorum; Valid Action

 

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Except as specified in the Articles of Association, a quorum at any Parties meeting shall be constituted by the presence, in person, of at least one person validly representing a majority of the Shares held by Iveco (or any of its Affiliates) and at least one person validly representing a majority of the Shares held by Nikola (or any of its Affiliates), failing which there shall be no quorum.  No action or vote of Parties is valid or effective unless such action or vote is approved by the vote of a majority of the outstanding Shares held by Iveco (or any of its Affiliates) and a majority of the outstanding Shares held by Nikola (or any of its Affiliates).

 

(d)                                 Voting

 

The following actions with respect to the Company must be approved in advance by the Parties in accordance with the provisions set forth above and in the Articles of Association:

 

(i)                                     an amendment to the Articles of Association of the Company;

 

(ii)                                  any proposal to change the name of the Company;

 

(iii)                               any increase or decrease in the share capital of the Company, provided that this action is not explicitly accounted for in the Yearly Budget;

 

(iv)                              approval of additional capital contributions by the Parties;

 

(v)                                 any issuance of any equity interest in, or right to acquire any equity interest in, the Company;

 

(vi)                              appointing or removing the Auditors;

 

(vii)                           approval of the payment of dividends by the Company;

 

(viii)                        approval of any proposal to liquidate the Company;

 

(ix)                              establishment of any company directly or indirectly controlled by the Company;

 

(x)                                 any material change in the nature or scope of the business purpose of the Company;

 

(xi)                              approval of any public offering of the Shares;

 

(xii)                           provided that any such action is not explicitly accounted for in the Yearly Budget, approval of any material transaction, inclusive of joint ventures or mergers or any other type of business combinations;

 

(xiii)                        approval of the yearly annual accounts, balance sheets, profit and loss accounts and other financial statements of the Company;

 

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(xiv)                       increasing or decreasing the size of the Board; and

 

(xv)                          any other action by the Company requiring Parties approval under applicable Laws.

 

(e)                                  Exercise of Control

 

Each of the Parties undertakes that it shall exercise its powers in such a manner that the Company will operate in accordance with this Agreement and its Exhibits and that the Company will implement, to the extent reasonably possible, the Business Plan.

 

4.2                               Board of Directors

 

(a)                                 Initial Board

 

The initial Board of Directors of the Company (the “Board”) consists of six directors of the Company (“Directors”), three of whom will be selected by Iveco and three will be selected by Nikola, each to serve in such capacity until his or her successor is duly elected and qualified.  Directors will be elected for an initial term 3 years and for subsequent terms of three 3 years.

 

Also with respect to such subsequent terms, for so long as each Party continues to hold 50% of the capital stock of the Company, Iveco shall be entitled to designate one-half of the total number of Directors and Nikola shall be entitled to designate one-half of the total number of Directors, whatever such number of Directors shall be.  For purposes of this Agreement, “Iveco Directors” shall mean those Directors designated by Iveco (or any of its Affiliates) and “Nikola Directors” shall mean those Directors designated by Nikola (or any of its Affiliates).

 

(b)                                 Election to Board

 

Each of Iveco and Nikola shall vote at the appropriate general meeting of the Company in favor of the resolutions appointing the other Party’s nominees to the Board.

 

(c)                                  Chairman and Vice-Chairman

 

For the first term, the Nikola Directors shall designate the Chairman of the Board (the “Chairman”) to serve in such capacity until his successor is duly elected and qualified.  The Chairman shall, in such capacity, call and chair the meetings of the Board in accordance with the provisions set forth herein and in the Articles of Association.

 

For the first term, the Iveco Directors shall designate the Vice-Chairman of the Board (the “Vice-Chairman”) to serve in such capacity until his successor is duly elected and qualified.

 

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(d)                                 Meetings of the Board

 

The Board shall have regular meetings at least on a quarterly basis.  Special meetings of the Board may be called upon the written request of at least one (1) Iveco Director and one (1) Nikola Director, which request shall be provided to the Chairman.  Promptly upon the receipt of such request, the Chairman shall call a special meeting of the Board.  The Senior Officers may attend the meetings of the Board if invited by the Chairman or the Chief Executive Officer of the Company (the “Chief Executive Officer”), but shall have no voting rights unless such Senior Officers are also Directors.

 

(e)                                  Location of Meetings

 

Unless otherwise agreed to by the Board, meetings of the Board shall take place at the corporate seat of the Company.  Board meetings may be validly held by means of conference telephone, video conference or similar communications equipment if all persons participating in the meeting can hear each other.

 

(f)                                   Notice of Meetings; Waiver of Notice

 

At least fourteen (14) calendar days prior to the date of each meeting of the Board, the Chairman shall send each Director notice of such meeting and, within a reasonable period of time before such meeting, provide each Director with an agenda of the meeting, including any proposed resolutions and all necessary documentation related thereto.  Attendance by a Director at a meeting of the Board constitutes a waiver of notice of such meeting.

 

(g)                                  Board Quorum

 

The presence of at least four (4) Directors, including at least two (2) Iveco Directors and two (2) Nikola Directors, constitutes a quorum for the transaction of business by the Board.  If a quorum is not present within 60 minutes from the time a Board meeting is scheduled to begin or if during a Board meeting there shall no longer be a quorum, such Board meeting must be adjourned for a period of not less than three (3) calendar days and not more than seven (7) calendar days, the actual time and date to be determined by the Chairman.

 

(h)                                 Voting Rules

 

Each Director has one (1) vote.  Unless otherwise provided herein, any action taken by the Board requires (i) a majority vote of all of the Directors attending, or being duly represented at, any meeting of the Board and (ii) the approval of at least two Iveco Directors and two Nikola Directors.

 

(i)                                     Removal

 

Any Iveco Director may be removed from office with or without cause only on the initiative of Iveco.  Any Nikola Director may be removed from office with or without cause only on the initiative of Nikola.  Each of the holders of the Shares agrees to vote for the removal of any Director designated for removal pursuant to the provisions of this subsection (i).

 

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(j)                                    Vacancies

 

In the event a designee of either Iveco or Nikola, as the case may be, vacates a position on the Board, irrespective of the cause of such vacation (and therefore including death, disability, removal, resignation or otherwise), the Party who designated such Director is entitled to designate a new director and the Parties agree to elect such new director as soon as practicable.

 

4.3                               Steering Committee

 

In addition to the relevant provisions of the Master Agreement and this Agreement, the Board shall consult with the Steering Committee and give due regard to its views before making decisions with respect to the following matters:

 

(a)                                 any new project with a capital expenditure of over $5 million unless specifically approved as a separate project in the Yearly Budget;

 

(b)                                 the approval of the Yearly Business Plan and Yearly Budget; and

 

(c)                                  any new financing or funding or refinancing or refunding of the Company not expressly included in the Yearly Budget.

 

If a deadlock arises because the Board fails to agree on any matter requiring its decision, the Directors shall consult the Steering Committee in accordance with the procedure set forth in Section 11.

 

5.                                      MANAGEMENT OF THE COMPANY

 

5.1                               The Chief Executive Officer and the Chief Financial Officer

 

The Board shall delegate to the Chief Executive Officer such powers and responsibilities as set forth in Exhibit 5.1.  The Chief Executive Officer shall be appointed by the Iveco Directors.  Nikola shall cause the Nikola Directors to vote for the Chief Executive Officer so designated to serve in such capacity until his successor is duly elected and qualified.

 

The Chief Financial Officer of the Company shall be appointed by the Nikola Directors.  Iveco shall cause the Iveco Directors to vote for the Chief Financial Officer so designated to serve in such capacity until his successor is duly elected and qualified.

 

The powers and responsibilities of the Chief Executive Officer and Chief Financial Officer will be set forth on or before Closing by the Board (in consultation with the Steering Committee).  Such powers and responsibilities may be supplemented by the Board from time to time in accordance with this Agreement.

 

Notwithstanding the foregoing, the following actions relating to the Company or any of its Subsidiaries must be approved by the Board:

 

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(a)                                 approval of the Yearly Business Plan, the Yearly Budget for submission to the Parties and any relevant update thereto;

 

(b)                                 provided this action is not explicitly accounted for in the Yearly Budget, approval of the creation of any mortgage, charge, encumbrance or other security interest over any part of any property or asset of the Company where such property or asset has a value exceeding $1,000,000;

 

(c)                                  provided that any such action is not explicitly accounted for in the Yearly Budget and the total value of such transaction amounts to at least $1,000,000, such threshold being subject to modification by all the Parties in writing, approval of: (i) a sale of any business in which the Company is engaged or (ii) the acquisition of a tangible or intangible asset;

 

(d)                                 except as expressly already provided in this Agreement and its Exhibits, the approval of any transaction by the Company with any member of either the Iveco Group or the Nikola Group that (i) is outside the ordinary course of business, or (ii)involves a value of $1,000,000 or more;

 

(e)                                  appointment of the Chief Executive Officer and the Chief Financial Officer and the appointment of the Chairman and the Vice-Chairman;

 

(f)                                   entrusting the Chairman, the Chief Executive Officer or any other officer of the Company with powers, duties and responsibilities not expressly provided for in this Agreement;

 

(g)                                  approval of any contract with a term of twenty-four (24) months or more or having a value of over $1,000,000, other than purchases of direct materials; and

 

(h)                                 approval or authorization of any changes to the personnel policies of the Company or any related actions, in each case, that could reasonably be expected to have a material impact on the current relationships between the Iveco Group, the Nikola Group, or the Company and any of their respective trade unions; and

 

(i)                                     proposal to distribute any dividend.

 

5.2                               Senior Officers and Organizational Chart of the Company

 

The organizational chart of the Company identifying the officers of the Company reporting to the Chief Executive Officer (the “Senior Managers”) will be approved by the Board of Directors on or before Closing in consultation with the Steering Committee.

 

5.3                               Appointments and Replacements of Senior Managers

 

(a)                                 Appointments

 

The Chief Executive Officer shall select the persons he wishes to appoint as Senior Managers, with exception of the Chief Financial Officer, and shall thereafter submit such

 

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candidates to the Chairman.  Upon approval of the Chairman, the Chief Executive Officer shall appoint or cause such Senior Managers to be appointed.

 

(b)                                 Removal

 

The Chief Executive Officer may submit the name of a Senior Manager for removal to the Chairman.  Upon approval of the Chairman, the Chief Executive Officer may remove such Senior Manager.

 

(c)                                  Replacements

 

The Chief Executive Officer shall select the persons he wishes to appoint as replacement Senior Managers and shall thereafter submit such candidates to the Chairman.  Upon approval of the Chairman, the Chief Executive Officer shall thereafter appoint or cause such Senior Managers to be appointed as replacements.

 

5.4                               Incentives

 

The Company will adopt, on or before Closing, executive compensation incentives, to be approved by the Board, based upon the Company’s achievement of quality, cost and technology targets to be approved by the Board.

 

5.5                               Statement of No-Confidence

 

Either Party may express a Statement of No-Confidence concerning the Chief Executive Officer, the Chief Financial Officer, the Chairman or the Vice-Chairman.  The Statement of No-Confidence should identify with appropriate evidence the reasons upon which it is grounded.  Promptly after the notification of the Statement of No-Confidence by one Party to the other Party, the Steering Committee shall meet to discuss the reasons causing the notification of such Statement of No-Confidence and decide the best course of action to be adopted.

 

6.                                      ACCOUNTS, FINANCING, DIVIDEND POLICY AND SHARE CAPITAL

 

6.1                               Books and Statements of Accounts

 

(a)                                 Books and Records of the Company

 

The Board shall ensure that the Company will maintain all books and statements of accounts, and prepare all financial reports, as required by Law, the provisions of this Agreement and the Company’s own internal control practices, consistently applied, and audited by the Auditors.  The final approval of the annual accounts of the Company shall be effected by the Parties’ meeting in accordance with applicable Laws.

 

(b)                                 Fiscal Year

 

The Fiscal Year of the Company begins on January 1 and ends on December 31 of each year.  The first Fiscal Year will start on the day the Company is incorporated, even if

 

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its operations begin at a later date, and will end on December 31 of the same year, except as otherwise agreed between the Parties.

 

6.2                               Financial Reporting

 

(a)                                 Annual Financial Accounts

 

Within a mutually agreed-upon period of time after the end of each Fiscal Year, the Board shall deliver to the Parties (i) the audited balance sheets of the Company as of the end of such fiscal year, (ii) audited statements of income and accumulated earnings and changes in cash flows of the Company for such fiscal year and (iii) where applicable, explanatory notes thereto.  Such annual accounts must be prepared in accordance with U.S. GAAP and IFRS and must be in such form as is necessary to enable each Party to prepare its own financial statements in accordance with applicable Laws and relevant stock exchange requirements.  The Company shall bear the costs and expenses with respect to the preparation of such annual accounts.

 

(b)                                 Quarterly Reports

 

Within a mutually agreed-upon period of time after the end of each quarter, the Company shall deliver to the Parties as requested (i) the balance sheets of the Company as of the end of such quarter, and (ii) statements of income and accumulated earnings and changes in cash flows of the Company for such quarter.  Such quarterly reports must be prepared consistently with the annual accounts contemplated by subsection (a), and must be in such form as is necessary to enable each Party to prepare its own financial statements in accordance with applicable Laws, and relevant stock exchange requirements.  The Company shall bear the costs and expenses with respect to the preparation of such quarterly reports.

 

(c)                                  Consolidation Packages

 

Within a mutually agreed-upon period of time, the Company shall deliver to the Parties on a quarterly basis a consolidation package to enable each Party to prepare its own consolidated financial statements in accordance with applicable Laws and the practices of each Party, taking into account the accounting principles used by each Party.

 

6.3                               Audit Right

 

Each Party is entitled to obtain, at any time, complete information with respect to the activities of the Company and all accounts and financial reports, including, but not limited to, Managerial Reports and operating information relating to the Company’s costs and expenditures in such form as a Party reasonably requires to keep it properly informed about the business and affairs of the Company.  Each Party (either by its own personnel or by its accounting advisors) may, upon reasonable notice to the Company, review the books, records, and related accounting systems of the Company during regular business hours.  The Party exercising its right to audit shall each bear its own costs.

 

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6.4                               Managerial Reports, Yearly Business Plan and Yearly Budget

 

(a)                                 Managerial Reports

 

The Company shall prepare yearly, quarterly and monthly Managerial Reports and shall transmit copies of such to each Party on a timely basis.

 

(b)                                 Yearly Business Plan and Yearly Budget

 

The Company shall prepare, for approval by October 31 of each calendar year, the Yearly Business Plan and the Yearly Budget for the subsequent Fiscal Year and submit such documents to the Board for approval.  The Board shall endeavor to approve the Yearly Business Plan and the Yearly Budget by November 30 of each year.  Each of the Party shall provide in a timely fashion to the Company relevant assumptions and volumes for preparation of the Yearly Business Plan and the Yearly Budget.

 

6.5                               Auditors

 

On or before Closing, the Company shall engage an auditor of the Company to prepare and revise the annual accounts of the Company (the “Auditor”).  The final appointment or removal of the Auditor must be effected by the Parties at a meeting of the shareholders (or of the Board, as the case may be under the Applicable Law) in accordance with applicable Law.

 

6.6                               Profit Allocation and Dividend Policy

 

The Parties have agreed that the Company will use commercially reasonable efforts to operate so as not to incur Losses as a result of the [*] pricing adopted in the European Supply Agreement and the North American Supply Agreement.  From time to time, the Company may require a capital injection, and the Parties agree that such capital injection will be made in proportion to Iveco’s and Nikola’s respective shareholdings.

 

Unless the Parties mutually agree otherwise, the Company will not pay any dividend until at least the end of Fiscal Year 2025 and will allocate to the retained earnings and other appropriate reserves under the applicable Law any profits incurred in the previous Fiscal Year.  The dividend policy thereafter will be established by the Board of Directors in consultation with the Steering Committee; provided that no dividend will be in any event distributed until the retained earning reserve will be equal to one-fifth of the Contributions.

 

6.7                               Increase in Share Capital

 

Unless the Parties mutually agree otherwise, the Company shall not issue any additional Shares unless an equal number of Shares are issued to the Iveco and Nikola Groups, respectively.

 

6.8                               Funding

 

The Company will be funded in accordance with the Business Plan through the Contributions made by each of the Parties.  Notwithstanding anything else in this Agreement, neither party nor any Party has an obligation to provide any funding of any

 

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kind whatsoever to the Company unless otherwise agreed to in writing by such party or Party.  The Company may raise debt financing funding through financial institutions upon approval of the Board.

 

7.                                      TRANSFER OF SHARES

 

7.1                               Transfer Prohibition — Authorized Transfer

 

(a)                                 No Transfer of Shares to Third Party

 

During the term of this Agreement (which, for this purpose, means from Closing until any termination of this Agreement in accordance with its terms), neither Party may, directly or indirectly, sell, assign, give, pledge, hypothecate, encumber, or in any other manner transfer any of the Shares held by them, or any pre-emptive or preferential right to new Shares or any warrant or other instrument or security giving a right to obtain Shares, including by operation of Law (each of the foregoing being a “Transfer”) nor take or permit any action leading to or likely to result in a Transfer, whether voluntarily or involuntarily, except as (i) agreed upon in writing by the other Party, (ii) otherwise provided for pursuant to Section 13 herein or (iii) otherwise provided for pursuant to subsection (b) below.

 

(b)                                 Authorized Transfer

 

Any Party may, upon thirty (30) days’ advance notice to the other Party, transfer its entire legal and beneficial interest in all or part of its Shares, a directly or indirectly, to any other Affiliate of Nikola or Iveco, respectively, subject to applicable Laws; provided that the transferee shall, in writing and prior to such transfer, agree to and assume all the rights and obligations of the transferring Party under this Agreement.  If a Party transfers its Shares or rights to acquire Shares in accordance with the provisions of this Section 7.1(b), such Party shall remain jointly responsible with its transferee for the full compliance with and the performance of all obligations set forth herein.  Each of Nikola or Iveco (as the case may be) shall cause any Affiliate of Nikola or Iveco respectively, to transfer all of the Shares which it then holds to another wholly owned subsidiary of Nikola or Iveco, as applicable, before it ceases to be a wholly owned subsidiary of Nikola or Iveco.

 

8.                                      EMPLOYEE ISSUES

 

8.1                               Personnel Policies

 

Promptly after Closing, the Company shall establish personnel policies, subject to compliance with applicable local Laws or applicable labour agreements and in consultation with the Steering Committee.  The Company will use its reasonable best efforts to avoid the adoption of personnel policies that could reasonably lead to any labour unrest at the Iveco Group and/or Nikola Group.

 

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8.2                               Secondment of Employees

 

Should the Parties determine that one or more employees need to be seconded by either Iveco (or any of its Affiliates) or Nikola (or any of its Affiliates), the terms and conditions of such secondment will be established by the Company and either Iveco (or any of its Affiliates) or Nikola (or any of its Affiliates) or both, as the case may be, under the supervision of the Steering Committee.  The costs of the seconded employees will be borne by the Company.

 

9.                                      EXCLUSIVITY AND NONCOMPETITION

 

9.1                               Exclusive Purchase Obligations

 

Subject to Section 9.3 below, from and after the Closing, for as long as this Agreement is in full force and effect, Iveco shall purchase and shall cause all other members of the Iveco Group to purchase the products listed in Exhibit 9.1, in each case, exclusively from the Company for sale in the Territory.  For the avoidance of doubt, Iveco and members of the Iveco Group may develop, manufacture, sell and purchase BEVs and FCEVs, including those listed in Exhibit 9.1, outside the Territory.Subject to Section 9.3 below, from and after the Closing, for as long as this Agreement is in full force and effect, Nikola and the Nikola Group shall not develop, manufacture, distribute, sell or purchase the products listed in Exhibit 9.1, for sale in the Territory.  For the avoidance of doubt, Nikola and members of the Nikola Group may develop, manufacture, sell and purchase BEVs and FCEVs listed in Exhibit 9.1 outside the Territory.

 

9.2                               Non-Competition Obligations

 

Subject to Section 9.3 below, neither Iveco (nor any of its Affiliates), nor Nikola (nor any of its Affiliates), as the case may be, shall engage in the Business directly or indirectly through a participation and/or partnership with another company (including by way of licensing, or contracts for the purchase or sale of BEVs or FCEVs or otherwise), in the Territory, other than through the Company.  Iveco and Nikola may purchase or hold shares in another company engaged in a Competing Business; provided that this is purely for financial investment purposes, without granting Iveco or Nikola, directly or indirectly, management functions or any material influence in such other company.

 

9.3                               Exceptions

 

The restrictions set forth in Sections 9.1 and 9.2 do not apply if an exception to either such provision (i) is approved in writing by the Parties; or (ii) concerns resales within the respective Group of the relevant Party.

 

9.4                               Acquisitions of Competing Businesses

 

If either Iveco or Nikola, or any of their respective Affiliates, acquires Control of a Person, the principal activity of which is engaging in a business that competes directly with the Company’s Business in whole or in part in the Territory (the activity “Competing Business” and the target of the acquisition “Involved Company”) or acquires all or substantially all of the assets of an Involved Company (in such capacity either party being

 

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referred to herein as the (“Acquiring Party”)), the Acquiring Party shall offer to transfer and sell, or cause to be offered to be transferred and sold, the competing business of such Involved Company to the Company according to the following procedures:

 

(i)                                     the Acquiring Party shall ensure that, within 180 calendar days from the acquisition, the Acquiring Party offers to sell the competing business of such Involved Company to the Company at a price (the “Equivalent Price”), terms and conditions substantially similar as reasonably practical to the terms on which the Acquiring Party acquired Control of the relevant assets;

 

(ii)                                  the Company may accept the Acquiring Party’s offer at the Equivalent Price any time within 60 calendar days from the date on which such offer was made;

 

(iii)                               the Acquiring Party’s representatives on the Board shall not prevent or hinder any decision to be made by the Company on whether to accept the offer.  If there is disagreement between the Iveco Directors and the Nikola Directors, this decision must be made exclusively by the Directors that are not the representatives of the Acquiring Party, and the Acquiring Party shall cause the Directors designated by the members of its Group to vote in favor of that decision; and

 

(iv)                              if the Company does not accept the offer within the specified time period granted, the Acquiring Party may, notwithstanding the provisions of Sections 9.1 and 9.2, retain the competing business of the Involved Company, to the extent the deployment of such Competing Business would not cause a Material Adverse Effect on the Company.

 

9.5                               Business Opportunities in the Territory

 

The Parties agree that the Company will have the right to cooperate with vehicle original equipment manufacturers (“OEMs”) that are not direct competitors of Iveco (e.g., General Motors Company, Honda Motor Company and any other similar OEM) solely for the design, development and manufacture of BEVs and FCEVs in the Territory.  The Parties further agree to work together in good faith to facilitate cooperation with other OEMs, so long as there is no material impact on either Iveco’s commercial or industrial business interests or its investment in Nikola and the Company, and to the extent such cooperation would not have a Material Adverse Effect on the Company.  Notwithstanding the foregoing, Nikola acknowledges and agrees that following the Merger, Iveco will be the exclusive original equipment manufacturer of Class 6-8 Trucks, and neither Nikola nor the Company will enter into any strategic transactions, arrangements or agreements with any CNHI Competitor, without the prior approval of Iveco, which approval shall not be unreasonably withheld.

 

Subject to Section 9.4, in accordance with the fundamental principles set forth herein, whenever any member of the Iveco Group or the Nikola Group receives inquiries or

 

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proposals from third parties, or identifies opportunities with respect to Competing Businesses in the Territory, such member shall, promptly and in the most appropriate manner, forward such inquiries, proposals or opportunities to the Chief Executive Officer of the other Party.

 

CNH Industrial may discuss with Nikola a license to utilize Nikola’s background technology in the Territory for applications outside the Company in the Territory upon agreement of specific terms and agreeable to Nikola, including payment of a license fee to be agreed between the parties according to market standards for similar transactions.

 

If requested by CNH Industrial, Nikola shall negotiate with CNH Industrial a license granting CNH Industrial the right to use Nikola’s IP in the Territory for applications outside the Company upon terms and conditions mutually agreed by the Parties that are no less favourable than those terms and conditions granted to the Company.  If Nikola solicits offers (a “Solicitation”) with respect to [*] (the “Applications”), Nikola shall provide a written notice to CNH Industrial (the “ROFO Notice”).  Upon receipt of the ROFO Notice, CNH Industrial shall have the right to submit a written offer with respect to such Solicitation, which shall set forth the material terms and conditions of such offer (the “CNHI Offer”).  No later than ten (10) Business Days after receipt of the CNHI Offer, Nikola shall provide written notice to CNH Industrial indicating whether it has accepted the CNHI Offer.  If Nikola accepts the CNHI Offer, the Parties shall consummate the transactions contemplated by the CNHI Offer as promptly as reasonably practicable following the delivery to CNH Industrial of a written acceptance of the CNHI Offer.  If Nikola does not accept the CNHI Offer, then Nikola may accept an offer from a third party in response to the Solicitation (a “Third Party Offer”) so long as such Third Party Offer is not upon terms and conditions which are, in the reasonable determination of the board of directors of Nikola, no less favourable than the terms and conditions set forth in the CNHI Offer.  If (i) the transactions contemplated by the Third Party Offer are not consummated within three (3) months from the acceptance of the Third Party Offer or (ii) Nikola changes the parameters of the Solicitation, then Nikola shall be required to comply with this Section 9.5 anew.

 

9.6                               Reserved

 

10.                               SUPPLY AGREEMENTS

 

10.1                        European Supply Agreement

 

On or before the Target Date, under the supervision of the Steering Committee, the Parties will agree upon all the terms and conditions that will govern the supply from the Company to Iveco (and all of its Affiliates operating in the Territory) of BEVs and FCEVs (the “European Supply Agreement”).

 

In this respect, the Parties agree that the European Supply Agreement will provide:

 

(i)                                     Appropriate provisions to ensure that the Company will be the exclusive supplier of the Iveco Group of BEVs and FCEVs to be sold in the Territory

 

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and that such exclusivity will apply to any Affiliates of Iveco Group incorporated during the term of this Agreement;

 

(ii)                                  the Company shall not supply BEVs and FCEVs to any Person other than members of the Iveco Group in the Territory;

 

(iii)                               a detailed ordering system, and a forecast and ordering procedure, as well as procedures to ensure appropriate scheduling of the manufacturing activities required by Iveco to the Company;

 

(iv)                              [*];

 

(v)                                 payment terms and conditions in accordance with the applicable Laws and as usually established in this type of transactions;

 

(vi)                              product warranties in accordance with all applicable Laws;

 

(vii)                           adequate mechanisms to ensure fair allocation of costs between the Parties and the Company in the event of recall campaigns; and

 

(viii)                        any other term and condition as customary in this type of transactions (including force majeure, treatment of confidential information, audit rights, dispute resolution mechanism so as to ensure a fair handling of disputes, and governing law).

 

10.2                        North American Supply Agreement.

 

On or before the Target Date, under the supervision of the Steering Committee, the Parties will agree upon all the terms and conditions that will govern the supply from the Company to Nikola (and all of its Affiliates operating in North America) of BEVs and FCEVs (the “North American Supply Agreement”).

 

In this respect, the Parties agree that the North American Supply Agreement will provide:

 

(i)                                     the North American Supply Agreement shall terminate no later than two (2) years after the date that Nikola begins manufacturing BEVs and FCEVs in North America; provided, however, that following such termination, the Company will use commercially reasonable best efforts to supply parts, as requested by Nikola from time to time, on the same cost-plus fee pricing principles as set out in the North American Supply Agreement prior to its termination;

 

(ii)                                  the wind down of supply under the North American Supply Agreement shall be forecasted and executed to allow stable production volumes for the Company;

 

(iii)                               appropriate provisions to ensure that the Company will be the exclusive supplier of the Nikola Group of BEVs and FCEVs to be sold in the North

 

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America and that such exclusivity will apply to any Affiliates of Nikola Group incorporated during the term of this Agreement;

 

(iv)                              the Company shall not supply BEVs and FCEVs to any Person other than members of the Nikola Group in North America;

 

(v)                                 a detailed ordering system, and a forecast and ordering procedure, as well as procedures to ensure appropriate scheduling of the manufacturing activities required by Nikola to the Company;

 

(vi)                              [*];

 

(vii)                           payment terms and conditions in accordance with the applicable Laws and as usually established in this type of transaction;

 

(viii)                        product warranties in accordance with all applicable Laws;

 

(ix)                              adequate mechanisms to ensure fair allocation of costs between the Parties and the Company in the event of recall campaigns;

 

(x)                                 homologation of Company products in North America shall be completed under Nikola’s name to ensure that Nikola will be treated as the registered manufacturer and sole distributor of all Company products in North America.  Nikola shall receive all CO2 credits provided by the United States for all Company products;

 

(xi)                              any other term and condition as customary in this type of transaction (including force majeure, treatment of confidential information, audit rights, dispute resolution mechanism so as to ensure a fair handling of disputes, and governing law).

 

The Company and Nikola will also enter into a spare parts agreement that provides for the supply by the Company of BEVs and FCEVs spare parts (“BEVs/FCEVs Spare Parts”) manufactured by the Company for the benefit of Nikola in North America in accordance with the terms and conditions of the North American Spare Parts Supply Agreement to be agreed upon no later than December 31, 2020.  The supply of BEVs/FCEVs Spare Parts to Nikola in North America will be based on the same [*] pricing principles as set out in the North American Supply Agreement.

 

11.                               TAX MATTERS

 

11.1                        Administration and Management of Pre-Closing Tax Matters

 

The preparation of tax returns, management of tax audits, appeals, or litigation, or any other tax affairs of the Company, with respect to any period up to and including Closing, if required, shall be the joint responsibility of, and shall be jointly directed by, the Parties or the Parties’ advisors under the supervision of the Steering Committee.

 

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11.2                        Administration and Management of Post-Closing Tax Matters

 

After Closing, the preparation of tax returns, management of tax audits, appeals, or litigation, and the handling of any other tax affairs of the Company shall be the responsibility of the Company, acting in consultation with the Steering Committee.

 

11.3                        Cooperation on Tax Matters

 

Each Party shall cooperate, and ensure that the members of its Group cooperate, to the extent that such cooperation is reasonably requested by the other Party or the Company in connection with the preparation of tax returns, management of tax audits, appeals, or litigation, or handling of other tax affairs of the Company.

 

The Parties shall cooperate in good faith, having regard to the duties of the Directors, to arrange the tax affairs of the Company in a manner which is tax efficient having regard (inter alia) to the Business Plan.

 

The Company shall not without the prior written consent of the relevant Party, enter into any transaction or arrangement for tax planning purposes if that transaction or arrangement might reasonably be expected to adversely affect the interests of that Party or any Affiliate of that Party (including its general reputation).

 

11.4                        Tax Information

 

Subject to Section 16.4 (Confidentiality), the Company shall provide, in a timely fashion, all information and assistance reasonably requested by any Party that is necessary to enable that Party or any of its Affiliates to:

 

(a)                                 complete any tax returns, elections or other tax filings or to comply with any tax reporting requirements or other requirements of a tax authority or in connection with any tax audits; and

 

(b)                                 determine the tax consequences of any transaction relating to the Company that that Party or Affiliate undertakes or proposes to undertake.

 

12.                               DEADLOCK

 

12.1                        Occurrence of a Deadlock

 

At any time during the term of this Agreement, a Party may deliver to the other Party and the Board a written notice (a “Deadlock Notice”) within forty-five (45) calendar days after the occurrence of any of the following events (each such event being referred to herein as a “Deadlock”):

 

(a)                                 the Board is unable, after two (2) duly convened meetings of the Board, (i) to approve the Yearly Business Plan, (ii) to approve the level of spending provided for in the proposed Yearly Budget, or (iii) to reach any other approval or decision; or

 

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(b)                                 If a quorum of Directors is not obtained for (i) three consecutive meetings of the Board or (ii) three out of five consecutive meetings of the Board.

 

12.2                        Solving Mechanisms of a Deadlock

 

(a)                                 Board

 

Promptly, but not later than 15 calendar days, after receipt of a timely Deadlock Notice from a Party, the Board shall meet pursuant to the terms of such Deadlock Notice to discuss alternative solutions in order to resolve the Deadlock, including by agreeing the Liquidation of the Company under Section 15.

 

(b)                                 Steering Committee

 

If the Board fails to meet as provided above or fails to resolve the Deadlock within 15 calendar days after the receipt of the Deadlock Notice, the Steering Committee shall promptly, and, in any event, within 30 calendar days, meet pursuant to the terms of such Deadlock Notice to discuss alternative solutions in order to resolve the Deadlock, including by agreeing the Liquidation of the Company under Section 15.

 

(c)                                  CEOs of the Parties

 

If the Steering Committee fails to resolve the Deadlock within 45 calendar days after the Board’s receipt of the Deadlock Notice, the CEOs of the two Parties shall meet within the next 21 calendar days to find a mutually satisfactory solution to the Deadlock, including by agreeing the Liquidation of the Company under Section 15.

 

(d)                                 Arbitration

 

If the Parties fail to resolve the Deadlock within ten (10) calendar days after the meeting between the CEOs of the two Parties or if such meeting is not held within 30 calendar days from the delivery of a written invitation of either Party regarding a meeting between the CEOs of the two Parties (the expiration of either one of these periods, an “Unresolved Deadlock”), either Party may file a Request for Arbitration with the Secretariat of the LCIA (a “Request for Arbitration”) in respect of the Unresolved Deadlock or otherwise.  The arbitration shall be held in accordance with the Rules of LCIA and the provisions of Section 16.15 herein.

 

The initiation of the procedures set forth in this Section (including proceedings under Section 16.15) shall not excuse Iveco, the Iveco Group or Nikola, Nikola Group, or any of their respective Affiliates, from performing all of their respective obligations under this Agreement, the European Supply Agreement or otherwise.  While these procedures will be pending, both Parties (and their respective Affiliates) shall continue to perform all their respective obligations in good faith.

 

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12.3                        Commitment of the Parties to Fulfill Their Contractual Obligations

 

The initiation of the procedures set forth in this Section (including proceedings under Section 12.2(f)) shall not excuse Iveco, the Iveco Group or Nikola, Nikola Group, or any of their respective Affiliates, from performing all of their respective obligations under this Agreement, the European Supply Agreement or otherwise.  While the procedures set forth in this Section 12 are pending, both Parties (and their respective Affiliates) shall continue to perform all their respective obligations in good faith.

 

13.                               TERM, TERMINATION AND EXIT

 

13.1                        Term and Termination

 

(a)                                 Lapse and Termination

 

If Closing is not consummated on or prior to December 31, 2020, this Agreement will (unless the Parties otherwise agree) automatically lapse and cease to have any further force or effect.

 

(b)                                 Term and Renewal

 

The initial term of this Agreement expires on December 31, 2030, at which time this Agreement is automatically renewed for successive ten (10) year terms (each such term, including the initial term, a “Term”), in each case unless otherwise terminated in accordance with this Agreement (pursuant to action taken under Section 13.1(b) (Term and Renewal), 13.2 (Exit for Breach), 13.3 (Exit for Bankruptcy), 13.4 (Exit for Unresolved Deadlock), or 13.5 (Exit for Change of Control)).

 

(c)                                  Termination

 

Subject to Section 13.1(a), this Agreement shall terminate: (i) if at any time there ceases to be at least two Parties comprising (A) one or more members of the Iveco Group and (B) one or more members of the Nikola Group; and/or (ii) upon final completion of any Liquidation carried out pursuant to Section 15.

 

(d)                                 Effect of Termination

 

If this Agreement is terminated as provided for in this Section 13.1(d), this Agreement shall forthwith cease to have effect and there shall be no further liability on the part of any party hereto except (i) in respect of material breaches of this Agreement prior to the termination of this Agreement, and (ii) any other provision set forth in this Agreement with reference to obligations to be performed after termination of this Agreement.

 

(e)                                  Change of Name

 

If either the Nikola Group or the Iveco Group ceases or is about to cease to hold any Shares and the Company is not placed into liquidation, each Party shall on the request of Nikola or Iveco, as the case may be, exercise its powers with a view to ensuring that the Company’s name (and that of any other relevant member of the Company) is changed so

 

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that it no longer includes the name, initials or trademark, or any reference to the name, initials or trademark, of the relevant Party (or any member of the Iveco Group or the Nikola Group, as applicable) effective at the same time as or as soon as reasonably practicable after the relevant Party (or any member of the Iveco Group or the Nikola Group, as applicable) ceases to be a holder of any Shares, but in no event later than 90 days after such occurrence.

 

(f)                                   Exit Notice

 

In order to exit the Company at the end of a Term, a Party (the “Exit Notifying Party”) shall notify the other Party (the “Exit Receiving Party”) in writing of its decision to exit the Company (an “Exit Notice”) by sending an Exit Notice to the Exit Receiving Party not later than December 31, 2029 for the initial Term of this Agreement and not later than the end of the 7th year of any subsequent Term.  Immediately after the receipt of the Exit Notice, either Party may request that the Company would be put in Liquidation under Section 15.

 

(g)                                  Negotiation

 

If a Party delivers an Exit Notice to the other Party, the Parties shall negotiate in good faith and, to the extent applicable, based on the Liquidation Principles, to resolve any differences or reach an agreed method for exiting the Company.

 

(h)                                 Liquidation

 

If the Parties fail to resolve their differences or to reach an agreed method for exiting the Company pursuant to subsection (g) above within (i) 120 calendar days of the delivery of the Exit Notice or (ii) 90 calendar days after delivery of the request for Liquidation of the Company under Section 15, the Parties shall liquidate the Company in accordance with the provisions set forth in Section 15 herein.

 

13.2                        Exit for Breach

 

(a)                                 General

 

A Party (the “Non-Breaching Party”) may elect to exit the Company pursuant to this Agreement if (i) the other Party (the “Breaching Party”) has substantially failed to perform any of its material obligations under this Agreement or under any ancillary agreement thereto, and (ii) such failure to perform has a Material Adverse Effect on the Company taken as a whole or on the Non-Breaching Party’s Group, including, but not limited to, a willful act of misconduct, a failure to act, a breach of an essential undertaking, or a breach which makes the continuation of this Agreement impossible or so onerous as to effectively deprive the Non-Breaching Party’s Group of the expected benefits arising from the Agreement (clauses (i) and (ii) being a “Breach”), and such Breach has not been remedied within 90 calendar days after delivery of a written notice by the Non-Breaching Party to the Breaching Party specifying such Breach and requiring that it be remedied.

 

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(b)                                 Breach Notice

 

In the event a Party believes a Breach by the other Party has occurred and not been remedied, it may enforce its rights pursuant to this Section 13.2 only by providing a written notice to the other Party within 30 calendar days after the expiration of the 90 calendar day period set forth above stating that the Party intends to exit the Company because of a Breach (a “Breach Notice”).

 

(c)                                  Arbitration

 

Upon the delivery of a timely Breach Notice to a Party, the recipient Party has 60 calendar days from the delivery of such notice to provide a Request for Arbitration to the Secretariat of the LCIA regarding the disputed Breach.  The arbitration shall be held in accordance with the Rules of LCIA and the provisions of Section 16.15 herein.

 

The initiation of the procedures set forth in this Section 13.2 (including proceedings under Section 13.2(c)) shall not excuse Iveco, the Iveco Group or Nikola, Nikola Group, or any of their respective Affiliates, from performing all of their respective obligations under this Agreement, the European Supply Agreement or otherwise.  While these procedures set forth in this Section 13.2 are pending, both Parties (and their respective Affiliates) shall continue to perform all their respective obligations in good faith.

 

(d)                                 Negotiation

 

If (irrespective of either Party having filed a Request for Arbitration) the Non- Breaching Party so elects by providing appropriate notice to the other Party, the Parties shall promptly negotiate in good faith and, to the extent applicable, to reach an agreed method for exiting the Company on the basis of the Liquidation Principles.

 

(e)                                  Liquidation

 

In the event the Parties fail to reach an agreed method for exiting the Company pursuant to subsection (i) above within 90 calendar days from the request of negotiation, the Non-Breaching Party may elect within the subsequent 15 calendar days to cause the liquidation of the Company in accordance with the provisions set forth in Section 15 herein by sending a liquidation notice to that effect to the Breaching Party.  The Breaching Party shall agree to this request and liquidation shall be conducted in accordance with Section 15.

 

13.3                        Exit for Bankruptcy

 

(a)                                 General

 

A Party (the “Non-Bankrupt Party”) may enforce the Bankruptcy Call Option set forth in subsection (c) below if there has been, in relation to the other Party (the “Bankrupt Party”) or any parent company of that Party, any proceeding (which has not been withdrawn) under applicable insolvency or bankruptcy Laws, including, but not limited to, a petition to be declared under suspension of payments, a petition for bankruptcy, voluntary or judicial reorganization of debt with all the creditors, judicial appointment of trustee(s), administrator(s) or similar officer(s) or any general assignment for the benefit of creditors (a “Bankruptcy Event”).

 

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(b)                                 Notice

 

Upon the occurrence of a Bankruptcy Event, the Non-Bankrupt Party may (i) enforce the Bankruptcy Call Option below by providing a Valuation Notice to the Bankrupt Party within 30 calendar days of the occurrence of such Bankruptcy Event coming to its attention or (ii) elect to enforce the provisions set forth in Sections 13.4(f) and (g) below.

 

(c)                                  Bankruptcy Call Option

 

Within 15 calendar days after the receipt of the Appraisal Report, the Non- Bankrupt Party may deliver a notice to the Bankrupt Party to exercise its rights pursuant to the Bankruptcy Call Option (the “Bankruptcy Call Notice”).  Upon delivery of the Bankruptcy Call Notice, the Non-Bankrupt Party shall be obligated to purchase all the Shares owned at that time by the Bankrupt Party, and the Bankrupt Party shall sell all such Shares to the Non-Bankrupt Party, at a price equal to the Appropriate Value Purchase Price (the “Bankruptcy Call Option”), and the Appropriate Value determined in connection with the Bankruptcy Call Option shall be final and binding on the Bankrupt Party for purposes of the Bankruptcy Call Option.  If the Non-Bankrupt Party fails to provide such notice, the provisions of Sections 13.4(f) and (g) shall automatically apply to the parties.

 

(d)                                 Buy-Out Procedure

 

The Bankrupt Party shall sell, assign and transfer to the Non-Bankrupt Party all of its Shares free of any lien, pledge, security interest or other third-party rights, and the Non-Bankrupt Party shall purchase such Shares and pay to the Bankrupt Party an amount in cash of immediately available funds equal to the Appropriate Value.  The sale and purchase must be:

 

(i)                                     completed within 180 calendar days of the delivery of the Bankruptcy Call Notice or immediately after the obtaining of all regulatory approvals and any required Parties approval; and

 

(ii)                                  consummated and closed at the registered office of the Company and the Parties shall execute and deliver all documents and instruments as are reasonably deemed appropriate to affect such sale and purchase.

 

Notwithstanding the foregoing, the Non-Bankrupt Party’s obligation to buy the Bankrupt Party’s Shares shall terminate (at the Non-Bankrupt Party’s option) if any necessary regulatory approval is not obtained within 180 calendar days of the receipt of the Bankruptcy Call Notice or upon any relevant authority conclusively refusing to grant any such regulatory approval.  In any event, the Bankrupt Party will continue to be obligated under this paragraph (d) until the Non-Bankrupt Party elects to terminate the Bankruptcy Call Option.

 

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(e)                                  Termination of the European Supply Agreement

 

If the Bankruptcy Call Option has been exercised and the purchase contemplated by paragraph (d) consummated, the Non-Bankrupt Party may, within twenty (20) calendar days after such consummation, cause the Company to terminate all supply arrangements with the Bankrupt Party’s Group, in accordance with the provisions of the Supply Agreement.  The Iveco IP License and the Nikola License shall expire.

 

(f)                                   Valuation

 

If the Non-Bankrupt Party elects to deliver a Bankruptcy Call Notice pursuant to Section 13.4(c), the Non-Bankrupt Party shall concurrently elect to deliver a Valuation Notice to the Bankrupt Party in order to appoint the Appraiser to determine the Appropriate Value.

 

(g)                                  Liquidation

 

In the event the Non-Bankrupt Party has elected not to deliver a Bankruptcy Call Option Notice or a Valuation Notice, the Non-Bankrupt Party may elect within 45 calendar days from the Bankruptcy Event to cause the liquidation of the Company in accordance with the provisions set forth in Section 15 herein by sending a liquidation notice to that effect to the Bankrupt Party.  The Bankrupt Party shall agree to this request and liquidation shall be conducted in accordance with Section 15.

 

13.4                        Exit for Unresolved Deadlock

 

(a)                                 General

 

Upon the occurrence of an Unresolved Deadlock, the Parties shall take any necessary and appropriate actions to liquidate the Company in accordance with the provisions set forth in Section 15 herein and on the basis of the Liquidation Principles.

 

13.5                        Exit for Change of Control

 

(a)                                 Notice

 

Upon the occurrence of a direct or indirect Change of Control of either Iveco or Nikola, the Party subject to such Change of Control may serve a written notice to the other Party within 40 calendar days of such Change of Control coming to its knowledge (a “Change of Control Notice”).

 

For the purpose of this Agreement, the following will not be considered a Change of Control: (i) the completion of the potential spin-off transaction involving Iveco announced on September 3, 2019 by CNH Industrial; and (ii) the consummation of the Merger.

 

(b)                                 Consultation Between the Parties

 

Within 15 calendar days after the receipt of a Change of Control Notice, the Parties shall meet to determine in good faith whether they agree that (i) the benefits of the Company may be preserved for both Parties, (ii) the Change of Control would have a

 

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Material Adverse Effect on the Party that is not subject to the Change of Control, and (iii) the Party subject to the Change of Control or its acquiror has proposed effective measures to cure such Material Adverse Effect (an “Acquiror Resolution”).

 

(c)                                  Negotiation

 

If the Parties fail to reach an Acquiror Resolution within 60 calendar days from the date of receipt of the Change of Control Notice, either Party (the “Notifying Party”) may further deliver to the other Party within 15 calendar days either (i) a notice (the “Valuation Notice”) to the other Party requesting that the Appraiser be selected in order to determine the Appropriate Value pursuant to the provisions set forth in Section 14 or (ii) a notice indicating it elects to proceed with the negotiation and liquidation provisions set forth below without a determination of Appropriate Value (the “Non-Valuation Notice”).  In the event one Party will deliver a Valuation Notice and the other Party a Non-Valuation Notice, the Valuation Notice will prevail.

 

If only a Non-Valuation Notice is delivered, the Parties shall negotiate in good faith to reach an agreed method for exiting the Company to the extent applicable, based on the Liquidation Principles in Section 13.

 

(d)                                 Liquidation

 

If the Parties fail to reach an agreed method for exiting the Company pursuant to the “Negotiation” subsection above within 90 calendar days of the receipt of the Non- Valuation Notice, as applicable, the Parties shall liquidate the Company in accordance with the provisions set forth in Section 15 herein.

 

(e)                                  Change of Control Call Option

 

Upon the occurrence of a direct or indirect Change of Control, if Notifying Party has provided to the other Party a Valuation Notice the following provisions shall apply.  Within 15 calendar days after the receipt of the Appraisal Report from the Appraiser setting forth the Appropriate Value, the Party that is subject to the Change of Control shall be obligated to purchase all the Shares owned at that time by the Party that is not subject to the Change of Control, and such Party shall sell all such Shares to the Party subject to the Change of Control, at a price equal to the Appropriate Value Purchase Price (the “Change of Control Call Option”), and the Appropriate Value determined in connection with the Change of Control Call Option shall be final and binding on the Party that is not subject to the Change of Control for purposes of the Change of Control Call Option.  If any Party does not issue a Valuation Notice or Non-Valuation Notice within seventy-five (75) days from the Change of Control Notice, the Party not subject to the Change of Control shall have the opportunity to issue a last call notice (the “Last Call Notice”) to purchase the Shares held by the Party that is subject to the Change of Control.

 

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(f)                                   Buy-Out Procedure

 

The Party not subject to the Change of Control shall sell, assign and transfer to the Party that is subject to the Change of Control all of its Shares free of any lien, pledge, security interest or other third-party rights, and the Party that is subject to the Change of Control shall purchase such Shares and pay to the Party not subject to the Change of Control an amount in cash of immediately available funds equal to the Appropriate Value.  The sale and purchase must:

 

(i)                                     be completed within 90 calendar days of the delivery of the Change of Control Call Notice or immediately after the obtaining of all regulatory approvals and any required Parties approval;

 

(ii)                                  be consummated and closed at the registered office of the Company and the Parties shall execute and deliver all documents and instruments as are reasonably deemed appropriate to affect such sale and purchase;

 

(iii)                               include non-exclusive, royalty-free, fully assignable, fully sub-licensable, worldwide, fully paid-up, royalty-free, perpetual and irrevocable license rights for the intellectual property owned by the Company to allow each Party to practice the Company’s technology without restriction;

 

(iv)                              include perpetual license rights for the Nikola IP and Iveco IP to allow each Party to practice Nikola and Iveco IP to Deploy the products listed in Exhibit 9.1 in the Territory.  The terms and conditions applied to any Party to access to Nikola IP and Iveco IP shall be no less favorable than the terms applied by Nikola and Iveco to the Company at Closing;

 

(v)                                 confirm the Company’s long-term lease agreement for the remaining duration of the lease agreement at terms and conditions no less favorable than the terms applied at Closing;

 

(vi)                              ensure that the Party not subject to the Change of Control can purchase the minimum volume of Company products necessary for such Party to meet European Union emission regulations for no less than three (3) years from the date of the Valuation Notice or Non-Valuation Notice or the Last Call Notice, whichever is later.  The Party not subject to Change of Control shall be entitled to purchase the Company products at pricing terms no less favorable than those terms applied by the Company to the Distributor at the Closing for no less than three (3) years; and

 

(vii)                           the Party subject to Change of Control shall bear any costs induced on the distribution network by its take-over.

 

Notwithstanding the foregoing, the Party subject to the Change of Control obligation’s to buy the Shares held by the Party not subject to the Change of Control shall terminate (at the Party’s subject to the Change of Control option) if any necessary regulatory approval is not obtained within 90 calendar days of the receipt of the Change of Control Call Notice or upon any relevant authority conclusively refusing to grant any such regulatory approval.

 

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In any event, the Party not subject to Change of Control will continue to be obligated under this section until the Party subject to the Change of Control elects to terminate the Change of Control Call.

 

(g)                                  Termination of the Supply Agreements

 

If the Change of Control Call Option has been exercised and the purchase consummated, the Party that exercises the Change of Control Call Option may, within twenty (20) calendar days after such consummation, cause the Company to terminate all supply arrangements with the other Party effective no earlier than three (3) years from the date of the Valuation Notice or Non-Valuation Notice or the Last Call Notice, whichever is later, in accordance with the provisions of the European Supply Agreement or the North American Supply Agreement.

 

(h)                                 License upon Change of Control Exit

 

In the event that either Party exercises its Valuation Notice, Non-Valuation Notice or Last Call Notice, then the exercising Party shall grant and hereby does grant to the other Party a fully paid-up, royalty-free, perpetual, fully sublicensable, fully assignable, non-exclusive license to Deploy under the IP of any Party, in each case, that exists as of the time that the Change of Control, solely for the Deployment in the Territory of any BEVs and FCEVs that are manufactured or in development by the Company as of the Exhibit 9.1 or prior to the date on which the Change of Control occurs at conditions on the same or better terms and conditions applied by Nikola and Iveco to the Company at Closing.  Within 30 days following the date that the Change of Control occurs, the Company shall deliver to each Party copies of all information and materials that the Company owns or otherwise has the right to provide that are necessary or useful in connection with the Deployment of BEVs and FCEVs, in each case, in a reasonable form and format and in a manner consistent with industry practices.

 

14.                               APPRAISAL

 

14.1                        Notice and Appointment of the Appraiser

 

To begin the process of determining the Appropriate Value as contemplated by Section 13.3 (Exit for Bankruptcy) or Section 13.5 (Exit for Change of Control), a Party entitled to request the appraisal must deliver a Valuation Notice to the other Party requesting that the Appraiser be selected in order to determine the Appropriate Value.  In such event, within 15 calendar days from the date of delivery of the Valuation Notice, Iveco and Nikola shall appoint an internationally recognized investment banking firm (the “Appraiser”).  In the event the Parties fail to reach an agreement on the Appraiser’s appointment, the Appraiser will be designated by the Secretariat of the LCIA and such determination shall be binding upon the Parties.

 

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14.2                        Valuation Methodologies

 

Within 15 Business Days of the date of appointment, the Appraiser shall determine the valuation methodologies (the “Valuation Methodologies”) to be applied in its determination of Appropriate Value in accordance with customary criteria for this kind of evaluation.

 

14.3                        Determination of Appropriate Value

 

(a)                                 Due Diligence

 

The Appraiser shall conduct its due diligence on the Company at its discretion.  In such exercise, the Appraiser will have access to:

 

(i)                                     customary financial information in type and quantity sufficient to determine net book value and fair market value;

 

(ii)                                  such Company’s personnel and additional diligence information and data as is necessary to permit them to conduct such diligence and analyses as are customary for this type of determination; and

 

(iii)                               the Parties at a meeting with the representatives of the Appraiser so as to allow the Parties to discuss their views on the operations and prospects of the Company.

 

(b)                                 Procedure

 

The Appraiser shall determine the Appropriate Value at its discretion within 90 calendar days after its appointment and deliver to the Parties a report setting forth the Appropriate Value (the “Appraisal Report”).  Such determination shall be final and binding upon the Parties and each Party shall bear half of the Appraiser’s fees and expenses (including any accountants, legal or other advisors fee).

 

15.                               LIQUIDATION

 

15.1                        Liquidation Committee

 

If the Company is to be liquidated pursuant to this Agreement, a liquidation committee shall be established to formulate liquidation procedures (the “Liquidation Committee”).  The Liquidation Committee shall consist of four (4) members, two (2) appointed by Iveco and two (2) appointed by Nikola.  The Parties may appoint or hire accountants, legal or other advisors as members of, or to render advice to, the Liquidation Committee.  The Parties shall jointly appoint a chairman and the vice-chairman of the Liquidation Committee.  Any decisions made or actions taken by the Liquidation Committee may only be made or taken upon the unanimous vote of all of its members.  The Liquidation Committee shall (i) assess and evaluate the assets and liabilities of the Company and may, for such purpose, appoint any relevant advisors as it sees fit including an independent accounting firm of internationally recognized standing, an independent investment bank of internationally recognized standing and an independent law firm of internationally recognized standing (collectively referred to herein as “Advisors”), (ii) determine the best

 

43

 

manner of liquidating the assets and liabilities of the Company in accordance with the liquidation principles attached as Exhibit 15.1 (the “Liquidation Principles”) and consult in good faith with the Parties with respect thereto, and (iii) fulfill all other tasks assigned to it by the Board and under applicable Laws.

 

15.2                        Expert

 

If the Liquidation Committee is unable to reach an agreement regarding the formulation of the best manner of liquidating the Company within 120 calendar days of the establishment of the Liquidation Committee, the Parties shall select and appoint an expert (the “Liquidation Expert”) who shall have the same qualifications as a mediator who shall (i) assess and evaluate the assets and liabilities of the Company, and may, for such purpose, appoint any advisors as it sees fit, and (ii) decide upon the best manner of liquidating the assets and liabilities of the Company consistently with the Liquidation Principles.  Should the Parties fail to reach an agreement on the appointment of the Liquidation Expert within 15 calendar days after the expiration of the previous 120 calendar day period, the Liquidation Expert shall be appointed by the Secretariat of the LCIA.  The Liquidation Expert shall act as an expert and not an arbitrator.  The decision of the Liquidation Expert, irrespective whether appointed by the Parties or by the Secretariat of the LCIA, shall be final and binding upon the Parties and the Company.

 

15.3                        Liquidation Procedure and Post-Liquidation Matters

 

(a)                                 Procedure

 

Upon the determination of the liquidation procedures by the Liquidation Committee or the Liquidation Expert, as applicable, the parties and the Company shall take formal action under any applicable Law and proceed with the liquidation of the assets and liabilities of the Company as soon as reasonably practicable.  Any remaining amount after the liquidation of the assets of the Company and discharge of all its liabilities must be distributed to the Parties in a proportion equal to their Shares.

 

(b)                                 Liquidation Committee Report

 

After the liquidation of the Company is completed, either (i) the Liquidation Committee shall promptly submit a report thereon to the Board for approval that the liquidation was completed based upon the Liquidation Committee’s determination of the liquidation procedures pursuant to Section 15.1 or (ii) the Liquidation Expert shall promptly submit a report thereon to the Parties if the liquidation was completed based upon the Liquidation Expert’s determination of the liquidation procedures pursuant to Section 15.2.

 

(c)                                  Supply and IP Upon Liquidation

 

Unless otherwise decided by the Liquidation Committee or the Liquidation Expert, as the case may be, the European Supply Agreement shall continue during the liquidation process.  After the Liquidation of the Company, each Party has an option to (i) maintain its Group’s then-current supply arrangements to the extent it is supplied from the assets it did

 

44

 

not receive in the liquidation, on terms and conditions substantially similar to the European Supply Agreement and/or (ii) cause the other Parties to maintain its Group’s then-current supply arrangements to the extent it is supplied from the assets its Group did not receive in the liquidation, in each case on terms and conditions substantially similar to the European Supply Agreement for a period of five (5) years from the date of completion of such liquidation, unless the Liquidation Committee or Liquidation Expert, as applicable, decides a longer or shorter period is necessary in order to avoid a material disruption to the business or operations of any of the Party’s respective Group members.

 

In the event of a Liquidation, each Party shall have a fully paid-up, royalty-free, perpetual, fully sublicensable, fully assignable, non-exclusive license to the Intellectual Property owned by and licensed to the Company and to the Nikola IP and Iveco IP in order to Deploy the BEV and FCEV at conditions no less favourable than those conditions at the Closing.

 

16.                               MISCELLANEOUS

 

16.1                        Exercise of Rights and Powers

 

As far as it is legally practicable, each Party shall exercise all voting rights and powers (direct or indirect) available to it in relation to any Person and/or the Company so that the provisions of this Agreement (and the other agreements referred to in this Agreement) are completely and punctually fulfilled, observed and performed and, generally, that full effect is given to the principles set out in this Agreement.

 

16.2                        Performance by Affiliates

 

Each Party shall, to the extent it is legally able to do so, cause each member of its Group to perform all obligations under this Agreement or under any agreement entered into by any other member of its Group pursuant to this Agreement.

 

16.3                        Expenses

 

Each Party shall bear and pay its own expenses (including any fees for legal services) incurred in connection with the preparation and the entering into of this Agreement.

 

16.4                        Confidentiality

 

Section 8.1 of the Master Agreement shall apply also in respect of any confidential information exchanged by the Parties in connection with this Agreement.

 

16.5                        Assignment

 

No party shall assign its rights or obligations under this Agreement without the prior written consent of the other parties hereto, other than, in the case of a Party, an assignment to an Affiliate, in accordance with the provisions set forth in Section 7.1 hereto.

 

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16.6                        Waiver

 

Failure of any party hereto to enforce any of the provisions of this Agreement or any right with respect thereto, or failure to exercise any election provided for herein shall not be considered a waiver of such provision, right or election, or in any way affect the validity of this Agreement.

 

The failure of any party to enforce any of such provisions, rights or elections shall not preclude or prejudice such party from later enforcing or exercising the same or other provisions, rights or elections which they may have under this Agreement.

 

16.7                        Remedies

 

All rights and remedies of the parties, hereunder shall be in addition to all other legal rights and remedies belonging to them and the same shall be deemed to be cumulative and not alternative to such legal rights and remedies, except that there shall be no right or remedy involving termination of this Agreement, and no party to this Agreement may terminate this Agreement, except in accordance with the express provisions of this Agreement.

 

16.8                        Rights of Third Parties

 

(a)                                 Subject to paragraph (b) below, a person who is not a party to this Agreement shall not be entitled to enforce any of its terms under the Contract (Rights of Third Parties) Act 1999.

 

(b)                                 The Parties agree that certain provisions of this Agreement confer a benefit on the Company and that such provisions are intended to benefit and be enforceable by the Company in its own right under the Contract (Rights of Third Parties) Act 1999.  Notwithstanding the foregoing, under no circumstances shall any consent be required from the Company for the termination, rescission, amendment or variation of this Agreement, whether or not such termination, rescission, amendment or variation affects or extinguishes any such benefit or right.

 

16.9                        Amendment

 

No amendment to any provision of this Agreement shall be effective or binding on any party unless set forth in writing and executed by a duly authorised representative of each party.

 

16.10                 Severability

 

In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.  The invalidity, illegality or unenforceability of any provision in this Agreement in any jurisdiction shall not invalidate or render illegal or unenforceable such provision in any other jurisdiction.

 

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16.11                 Counterparts

 

This Agreement shall be executed in two or more counterparts, each of which shall be deemed to be an original, and all shall constitute one and the same Agreement.

 

16.12                 Notices

 

All notices, requests, consents, approvals, waivers and other communications hereunder shall be deemed to have been duly given and made if in writing, in English, and if served by personal delivery upon the party for whom they are intended, if delivered by registered or certified mail, return receipt requested, or by a national courier service, or if sent by email or facsimile, provided that the email or facsimile is promptly confirmed by telephone confirmation thereof, to the person at the address set forth below, or such other address as may be designated in writing hereafter, in the same manner, by such person and shall be effective upon receipt:

 

(a)                                 if to Iveco:

 

Iveco S.p.A.

via Puglia 35

Turin

Italy

Attention:                                         Roberto Russo, General Counsel

Email:

Attention:                                         General Counsel

 

With a copy (which shall not constitute notice) to:

 

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

Attention:                                         Scott D. Miller

Telephone:

Email:

 

if to Nikola:

 

Nikola Corporation

4141 East Broadway Road

Phoenix, AZ 85040

Attention:                                         Britton Worthen, Chief Legal Officer

Email:

 

With a copy (which shall not constitute notice) to:

 

Pillsbury Winthrop Shaw Pittman LLP

2550 Hanover Street

Palo Alto, CA 94304-1115

Attention:                                         Stanley F. Pierson

Telephone:

Email:

 

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16.13                 Public Disclosure

 

No press release or similar public announcement or communication may be made or caused to be made concerning the execution or performance of this Agreement or the matters contemplated hereby unless specifically approved by Nikola and Iveco in writing, except as may be required to comply with the requirements of any applicable Laws (in which case Nikola or Iveco, as the case may be, shall, as far as practicable, provide the other with copies of such release, publication or communication prior to its publication or release in order to take account of any reasonable requests of the other made in relation thereto).

 

16.14                 Applicable Law

 

The validity, interpretation and implementation of this Agreement shall be governed by and construed in accordance with the Laws of England and Wales.

 

16.15                 Informal Dispute Resolution

 

Unless otherwise provided in this Agreement, the Parties shall attempt to resolve amicably and informally any dispute, controversy or claim between the parties and/or the Parties, or between a Party and the Company, arising out of or relating to this Agreement (the “Dispute”).  A party or Party may initiate informal negotiations to resolve the Dispute by giving the other party or Party a request for informal dispute resolution (a “Request for Informal Dispute Resolution”) of such intent.  The Request for Informal Dispute Resolution must (i) describe the Dispute and (ii) propose the procedure for its amicable resolution, including, if appropriate, the hiring of consultants.  Within thirty days of the date of such Request for Informal Dispute Resolution, the parties and/or the Parties shall attempt to resolve the Dispute amicably.  No party or Parties may resort to any other means of dispute resolution for at least thirty days after such Request for Informal Dispute Resolution has been delivered.

 

This Section 16.15 shall not apply in the event either Party has delivered a Deadlock Notice or a Breach Notice under Sections 12.1 and 13.2.

 

16.16                 Arbitration

 

If a Dispute is not resolved pursuant to Section 16.14 within the period provided therein, any party or Party may demand arbitration administered by the LCIA under its rules presently in force (the “Rules”).

 

The decision of the arbitration panel shall be final and binding on the Parties, and it will not be subject to any appeal or proceedings to vacate.  The arbitration award may be enforced in any court of competent jurisdiction.

 

The situs of the arbitration and any evidentiary proceedings shall be London and all proceedings and submissions shall be in the English language.  The panel may conduct proceedings in other locations if necessary for the taking of evidence or as otherwise agreed by the Parties involved in such arbitration.

 

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The arbitration panel shall consist of three members, one to be appointed by Iveco, one to be appointed by Nikola, and the third arbitrator, who shall preside over the arbitration panel, to be chosen by the two Party-appointed arbitrators.  If either Iveco or Nikola fails to appoint an arbitrator or the two Party-appointed arbitrators fail to appoint the third within the time periods prescribed below, then the appointments shall be made by the Secretariat of the LCIA pursuant to the Rules.

 

Arbitration may be commenced by any Party by giving written notice setting out the nature of the dispute to each other Party and to the LCIA pursuant to the Rules.  Within 5 calendar days of such notice, the party demanding arbitration shall appoint its arbitrator.  Within 15 calendar days of that appointment, the other party shall appoint its arbitrator.  Within 30 calendar days after the appointment of both Party-appointed arbitrators, those two Party-appointed arbitrators shall appoint the third arbitrator.

 

Except as required by applicable Law, none of Iveco, Nikola or the arbitration panel may disclose the existence, content or results of the arbitration unless and to the extent that disclosure is required by applicable Law or is necessary for permitted court proceedings.

 

The arbitration panel shall be authorized to award monetary damages and to grant injunctive relief, including interim relief pending the final award.  Any interim or provisional measure in the form of conservatory or injunctive relief ordered by the arbitration panel shall, to the extent permitted by applicable Law, be deemed a final arbitration award for purposes of enforceability.  For the avoidance of doubt, nothing in this Section should be interpreted to preclude any party from seeking interim relief from a court of competent jurisdiction prior to the formation of the arbitration panel.  Any monetary award may include interest and shall be stated and payable in U.S. currency.  The arbitration panel is not authorized to award punitive or exemplary damages.

 

16.17                 Obligations of the Company

 

Following the date on which the Company is established and incorporated under the laws of the Jurisdiction in accordance with the provisions of this Agreement, the Parties shall, and shall cause their respective Affiliates to, (including by exercising their respective voting rights in respect of the Shares) cause the Company to (i) perform any and all obligations of the Company under this Agreement and (ii) enter into a deed of adherence in customary form mutually agreed to by the Parties.

 

16.18                 Amendment to Master Agreement

 

Nikola, Iveco and CNH Industrial hereby agree to amend the Master Agreement to delete the following clause in Section 3.3: “provided, however, that the Steering Committee obligations with respect to the European Alliance Agreement shall cease upon the closing of the European Alliance Agreement;”.

 

For the avoidance of doubt, the obligations of the Steering Committee shall continue beyond the Closing of this Agreement and in accordance with the provisions herein.

 

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This Section 16.18 shall constitute a modification made in writing and signed by an authorized representative of the parties pursuant to Section 9.5 of the Master Agreement.

 

16.19                 Effect of Merger

 

For the avoidance of doubt, the consummation of the Merger shall not amend or modify the terms and conditions of this Agreement, and this Agreement shall continue in full force and effect. Nikola acknowledges and agrees that Nikola’s successor in interest following the Merger will be bound by the terms of this Agreement.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
 
    	
IVECO   S.p.A., a corporation duly organised and validly existing   under the laws of the Republic of Italy
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerrit Marx
    
	
 
    	
 
    	
Name:
    	
Gerrit Marx
    
	
 
    	
 
    	
Title: 
    	
President, Commercial   and Specialty Vehicles, CNH Industrial N.V.
    
	
 
    	
 
    
	
 
    	
NIKOLA   CORPORATION, a corporation duly organised and validly   existing under the laws of Delaware
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Britton Worthen
    
	
 
    	
 
    	
Name:
    	
Britton Worthen
    
	
 
    	
 
    	
Title:
    	
Chief Legal Officer
    
	
 
    	
 
    
	
 
    	
CNH   INDUSTRIAL N.V., a public limited liability company (naamloze vennootschap) incorporated   under the laws of the Netherlands
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Massimiliano Chiara
    
	
 
    	
 
    	
Name:
    	
Massimiliano Chiara
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer

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