Document:

Exhibit 10.2

 

Certain portions of
this exhibit have been omitted pursuant
to Rule 601(b)(10) of Regulation S-K. The omitted information
is (i) not material and (ii) the type that the registrant treats as private or confidential. Information that has been omitted has
been noted in this document with a placeholder identified by the mark “[***]”.

 

SUPPLY AGREEMENT

 

THIS SUPPLY AGREEMENT (“Agreement”)
is made and entered into as of August 3, 2022 between Volcon, Inc., a Delaware Corporation, with registered
office in 2590 Oakmont Drive, Suite 520 Round Rock, TX (“Buyer”), and General Motors LLC, a Delaware
limited liability company (“Seller”), each of Buyer and Seller referred to individually as a “Party,”
and collectively as the “Parties”.

 

PREMISE

 

	A.	Seller is engaged in the business of, among other things, designing, developing, manufacturing, assembling, marketing and selling electrification
systems and other electrification products such as drive units and related components, parts and/or accessories;
	B.	Buyer is engaged in the business of, among other things, off-highway applications of electrification
systems; and
	C.	Buyer desires to purchase from Seller, and Seller desires to manufacture and sell to Buyer, Products for use in Buyer’s applications.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants set forth herein, the Parties agree as follows:

 

AGREEMENT

 

1. DEFINITIONS
AND INTERPRETATION

 

		1.1	Definitions

 

“Affiliate” of
a Party means a Person directly or indirectly controlling or controlled by or under direct common control with the Party. For purpose
of this definition, “control” means the direct or indirect ownership of at least twenty percent (20%) of the voting rights
(or their equivalent) of an entity or the rights to exercise management control.

 

“Agreement” means
this Supply Agreement together with its Exhibits and any Amendments thereto.

 

“Confidential Information”
has the meaning set forth in Article 17.

 

“End Customer”
means: (1) the owner, operator or purchaser of a Modified Vehicle; or (2) any company or organization that purchases a Product from Buyer.

 

“Field Action”
means any recall, quality improvement, or service campaign to address a quality issue that is systemic or common to a substantial number
of Products.

 

“Field Issue” means
a systemic Product quality issue that may result in a Field Action.

 

“Incoterms” means
the Incoterms published by the International Chamber of Commerce, 2020 Edition.

 

 

 

 

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“Intellectual
Property” means any letters patent, patented articles, patent applications, designs, industrial designs, copyrights and copyrightable
works, inventions whether or not capable of protection by patent or registration, techniques, technical data and know-how, whether registered
or unregistered and including applications, registrations and renewals in connection thereunder for the grant of any such assets or rights
of the foregoing descriptions and all rights or forms of protection having equivalent or similar effect.

 

“Modified Vehicle”
means a vehicle in which a Product is, or will be, installed.

 

“NOC Process” is
as defined in Section 9.2.

 

“Party” or “Parties”
means individually or collectively the Seller and/or Buyer.

 

“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.

 

“Pricing Package”
means the document issued by Seller from time to time and prepared for Buyer that sets forth pricing, forecast, shipping, payment, etc.
requirements applicable to the Products (defined below) to be purchased by Buyer, and to be attached hereto as Exhibit 2.2, which
pricing shall be subject to Exhibit 7.1.

 

“Product” or “Products”
means the electrification systems as described in Exhibit 2.1, as may be changed from time to time according to the NOC Process
(see definition below).

 

“REACH” (Registration,
Evaluation, Authorisation and restriction of Chemicals) is a regulation of the European Union, adopted to improve the protection the environment
from the risks that can be posed by chemicals, while enhancing the competitiveness of the EU chemicals industry.

 

“Service Parts”
means the components or parts that Buyer may purchase from time to time for the purpose of servicing or repairing the Products.

 

		1.2	Interpretations

 

In this Agreement, except to the extent
that the context otherwise requires:

 

		(a)	when a reference is made in this Agreement to a Section or Exhibit, such reference is to a Section of,
or an Exhibit to, this Agreement unless otherwise indicated;

 

		(b)	the table of contents and headings for this Agreement are for reference purposes only and do not affect
in any way the meaning or interpretation of this Agreement;

 

		(c)	whenever the words “include”, “includes” or “including” are used in
this Agreement, 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, refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

		(e)	all terms defined in this Agreement have the defined meanings when used in any certificate or other document
made or delivered pursuant hereto, unless otherwise defined therein;

 

		(f)	the definitions contained in this Agreement are applicable to the singular as well as the plural forms
of such terms;

 

 

 

 

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		(g)	any law defined or referred to herein or in any Agreement or instrument that is referred to herein means
such Law or statute as from time to time amended, modified, or supplemented, including by succession of comparable successor Laws;

 

		(h)	references to a Person are also to its permitted successors and assigns; and

 

		(i)	the use of “or” is not intended to be exclusive unless expressly indicated otherwise.

 

		2.	SUPPLY AND PURCHASE

 

		2.1	Seller agrees to sell Parts to Buyer for distribution
in accordance with the information provided in the Questionnaire attached as Exhibit 1. Buyer understands that this Agreement is
limited to the purchase of Products approved by Seller and for the types of customers and applications authorized by Seller as set forth
in Exhibit 2, as may be modified from time to time with approval of Seller. To seek preapproval, Buyer shall provide Seller with
a completed Questionnaire, included as Exhibit 1, for review. Following submission, Seller will review the Questionnaire, and,
if approved, add the third party/use case to Exhibit 2. Sales of Products not approved by Seller, or sale of Products to customer
not authorized by Seller, shall allow Seller, in its sole discretion, to immediately terminate this Agreement.

 

		2.2	During the term of this Agreement and subject to its terms and conditions,
Seller will sell to Buyer the Products as described in Exhibit 2.1, as may be amended from time-to-time, only for use in off-highway
electrification applications. 

 

	2.3	The operational and communication requirements between the Parties for the supply and purchase of the Products will be set forth in each
Pricing Package, each of which will become part of this Agreement. Model Year 2022 Pricing Package is attached hereto as Exhibit 2.2.
Each Pricing Package is fixed for the applicable model year and shall govern until the Pricing Package for the following model year
becomes effective.

 

	2.4	No later than (6) six months prior to the start of production of each model year, Buyer will provide
Seller an estimated, non-binding forecast for the upcoming and remaining model years under this Agreement. Buyer
will provide Seller forecast updates in accordance with the Pricing Package.

 

		2.5	It is anticipated that the annual volume of Products to be supplied and purchased under this Contract
will not exceed the units per year indicated in the Exhibit 2.3. Should Purchaser request to purchase units in addition to quantity
per year indicated in the Exhibit 2.3, the Parties will separately discuss potential capacity increases.

 

		2.6	All Freight Cost is incurred by the customer. The customer selects the mode of transportation (truck carrier
of choice or Federal Express). GM has the capability to expedite at the customer expense.

 

		2.7	The Products will meet the specifications as attached in Exhibit 2.1.

 

		2.8	Buyer will be responsible for the integration of Products into the off-highway
electrification applications; and Seller will have no responsibility or liability with respect to the integration of the Products into
the off-highway electrification applications.

 

		2.9	Buyer will provide Seller with the connectivity/telematic information set forth in Exhibit 2.1
to monitor the performance of the Products.

 

		2.10	Seller
reserves the right, in its sole discretion, to cancel production of the Products to be supplied to Buyer under this Agreement based on
market conditions. Seller will provide Buyer reasonably advanced notice of a planned production cancellation. Such notice will be made,
in writing, no later than six (6) months prior to planned production cancelation.

 

 

 

 

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		2.11	The Parties will execute an amendment to this Agreement with each specific anticipated use case Buyer
intends for Connected Products. In advance of the Amendment, the Parties agree to the Product principles and data collection requirements
set forth in Exhibit 2.10, to be articulated in more detail in each use case amendment. “Connected Product”
means any Product that may connect to, communicate with and transmit data to other systems (including Seller’s hardware and software
systems).

 

		3.	MANUFACTURE

 

		3.1	The Products will be manufactured using Seller’s manufacturing system, validation requirements,
and quality systems. Notwithstanding the foregoing, any obligations with respect to quality, disruption of supply, and damages will be
in accordance with the specific terms of this Agreement.

 

		3.2	Seller will perform quality control of Products in accordance with its currently established quality control
procedures. The Parties will work together on details surrounding quality assurance aimed at improving overall quality.

 

		3.3	Seller will be solely responsible for determining manufacturing location and providing the floor space,
equipment, personnel, and working capital required to manufacture the Products. In case of a planned change of the manufacturing location
Seller will provide Buyer reasonably advanced notice and execution thereof will be managed through the NOC Process.

 

		3.4	Seller may, upon reasonable notice to Buyer, subcontract its manufacturing and assembly requirements for
the Products. Seller will remain responsible for its obligations under this Agreement.

 

		3.5	Unless otherwise agreed in writing, Buyer will not become the owner of any production equipment or tooling
used in the manufacture of the Products.

 

		4.	AFTERSALES

 

If applicable, the purchase of Service
Parts and Customer Care and Aftersales (“CCA”) engineering services shall be governed by a separate Aftersales Supply/
Service Agreement between the Parties and/or their Affiliates.

 

		5.	FORECAST AND ORDERING PROCEDURE

 

		5.1	The Parties will follow the forecast and ordering requirements for the Products, as set forth in each
Pricing Package.
		 	 
		5.2	Buyer and Seller’s manufacturing facility sourcing the Products will establish respective single points of contact for scheduling
communication and coordination of the Products.

 

		5.3	Seller and Buyer will use manual or electronic Purchase Orders to communicate with respect to the Products,
including ship-based schedules, order forecast information and shipping notification (unless alternative process as agreed by the Parties
is in place).

 

		5.4	No pre-printed or standardized terms and conditions of purchase or sale used
by Buyer or Seller will be applicable, unless specifically and expressly agreed to in writing by the Parties with a specific reference
to this Agreement and the Parties’ intent to modify this Agreement. In case of any conflict
between the terms of a purchase order and the terms of this Agreement, the terms of this Agreement will prevail.

 

		6.	TITLE AND RISK OF LOSS; LABELING, PACKAGING AND DELIVERY/SHIPPING

 

		6.1	Except as provided herein or otherwise agreed
in writing, all deliveries under this Agreement will be FCA (as defined in Incoterms 2020 as published by the International Chamber of
Commerce) Seller’s manufacturing location. Title to the Products will pass to Buyer and responsibility of Seller for loss or damage
to the Products will cease upon FCA delivery. 

 

 

 

 

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		6.2	Seller will prepare packing specifications for the Products. Such packing will be suitable for transportation,
loading and unloading so as to prevent the Products from rust condition and damage for delivery to Seller. Seller will be the owner of
all packaging (including returnable racks and containers) unless otherwise agreed by the Parties.

 

		6.3	Periodically Buyer and Seller will cooperate to schedule and implement an inventory of all containers.
Buyer is responsible for any damage or loss related to packaging incurred while the packaging is in the possession of the Buyer or its
carrier or any of its other service providers.

 

		6.4	If returnable racks and containers are used,
Buyer is responsible for all freight and any other costs to return racks, and containers to the location Seller delivered them to the
Buyer and to manage the returned racks and containers of Seller consistent with Seller’s schedules for production of the Products.

 

		6.5	The Party responsible for returnable rack and container procurement will be responsible for repair and
replacement of damaged or lost containers and racks; however, the responsible Party will be reimbursed by the other Party when the damage
or loss occurred when in the possession or control of such other Party or any of its service providers. Buyer will bear any cost of maintaining
the racks and containers in good condition.

 

		6.6	If Buyer cannot return the containers or racks to Seller within a reasonable time period after shipment
of the Products, Buyer will notify Seller of such delay, the cause and corrective actions, and the estimated date of return, and will
be responsible for any related costs, including, but not limited to, storage fee, incurred by Seller due to the delay.

 

		6.7	Labeling of containers will be in accordance with GM 1724 Shipping & Parts Identification Standard
(A, B, C), such standard being available on GM Supply Power, unless otherwise agreed upon by the Parties. Any unique labeling requirements
driven by local regulations must be followed after review by the Parties. If the local regulations requiring unique labeling are a result
of requirements attributable solely to Buyer, Buyer will be responsible for all related costs to provide labels that deviate from, or
in addition to, the GM Standard. Otherwise, the costs of any unique labeling will be borne equally by both Parties.

 

		6.8	Labeling of product (for example engraving or bar code identification or emission parts type number identification
for certification) will be in accordance with the GM 1738 Global Transport Label Standard unless otherwise agreed by the Parties. The
Parties will agree on the best method for implementing any unique labeling requirements. If the local regulations requiring unique labeling
are a result of requirements attributable solely to Buyer, then any additional costs will be met at Buyer’s expense and will be
agreed by the Parties. Otherwise, the costs of any unique labeling will be borne equally by both Parties.

 

		7.	PRICING

 

		7.1	Buyer will pay the Product prices specified in Exhibit 7.1. The Parties agree that the prices set
forth in Exhibit 7.1 are the base pricing for the Products as of the date of this Agreement. Pricing changes will be communicated
to Buyer in revised Pricing Packages on an annual basis.

 

		7.2	Prices will be exclusive of any applicable sales or other similar tax, if any, that is required by law
to be added to the sales price.

 

		7.3	Buyer will be responsible for the installation and any vehicle adaptation charges directly with End Customer.

 

		8.	PAYMENT

 

		8.1	Buyer will pay for the Products in US dollars. Buyer’s payment for the products shall be net 25th
proximo. Payment of invoices dated the 1st through the end of the month are due on the 25th of the following month.
One invoice and one delivery note will be issued for each shipment
of Products. Payment terms and trade credit limit are subject to Buyer meeting Seller’s regular credit standards. 

 

		8.2	Banking information and applicable contact information will be as set forth in the Pricing Package.

 

 

 

 

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		9.	PRODUCT CHANGES

 

		9.1	The Parties agree that the Products are supplied as-is and Seller will be under no obligation to make
any changes to the Products for Buyer. Buyer is buying the Products as manufactured by Seller.

 

		9.2	Any component changes to the Products from Seller will be communicated to Buyer in accordance with Seller’s
applicable Notice of Change Process (“NOC Process”).

 

		9.3	Breakpoints for any requested change will be coordinated between the Parties, including appropriate consideration
of the impact on inventory and scrapping cost.

 

		9.4	In the event Seller discontinues the manufacture or production of Product components, Seller shall provide
Buyer with prompt written notice of such decision and will provide Buyer with the opportunity to affect a one-time or all-time purchase
of a reasonable quantity of such components.

 

		10.	EXPORT CONTROL AND ENVIRONMENTAL LAWS

 

		10.1	Buyer will comply with all federal, state, and local laws, regulations, and standards in performance of rights and obligations under
this Agreement and Buyer is solely responsible for ensuring—and will ensure—the compliance of the end-product Modified Vehicles
with all federal, state, and local laws, regulations and standards. Buyer is solely responsible for acquiring any certifications for
the Modified Vehicles, if needed, to satisfy any requirements set forth by the U.S. National Highway Traffic Safety Administration (“NHTSA”)
and the Federal Motor Vehicle Safety Standards (“FMVSS”).
			 
		10.2	The products,
services and/or technical data (collectively “Items”) delivered under this Agreement may be subject to U.S. and other applicable
export control and economic sanctions laws and regulations (collectively "Export Laws"), including, but not limited to, the
International Traffic in Arms Regulations or the Export Administration Regulations and/or other relevant country laws and regulations.
The Parties shall, at their own cost, comply with all applicable Export Laws and shall not export, re-export, release or otherwise transfer
Items without first obtaining, at their own cost, all required licenses and approvals. Without limiting the foregoing, if Buyer intends
to export any Items, it is solely responsible for all expenses, including but not limited to securing a freight forwarder and customs
broker services, associated with shipping the Items outside of the United States. Seller will not be responsible for any expenses associated
with shipping the Items outside of the United States. Seller is committed to comply with export control laws and regulations of all
countries in which it does business. Export Compliance controls govern Seller’s activities globally and, in some instances,
may prohibit the export of certain products (which includes equipment, machinery, vehicles, materials, components and any other hardware
item), software, technology and services to specific countries, entities, or individuals. As a U.S. company and in compliance with
U.S. law, it is Seller’s policy not to conduct any business, directly or indirectly, with Cuba, Iran, Syria, North Korea, and
the Crimea, Donetsk, or Luhansk regions of Ukraine, unless the transactions are permitted under applicable laws and regulations.
The violation of export control laws and regulations can subject Seller and individual employees to both civil and criminal penalties.
			 
		10.3 	Buyer shall
be solely responsible for evaluating and ensuring Products supplied under this Agreement are compliant with all applicable environmental
laws in all regions in which the Products will be distributed, including but not limited to, REACH (EC 1907/2006), the End-of-Life Vehicles
Directive (Directive 2000/53/EC), and the Restriction of the Use of Hazardous Substances in Electrical Equipment Directive (Directive
2011/65/EU), as adopted and amended. Seller shall have no obligation to provide chemical or material identification information or assessments
to Buyer for Products. As a non-EU manufacturer, Seller shall have no REACH obligations under this Agreement, and is neither an importer
nor an “only representative” for purposes of REACH.
			 
		10.4	Buyer shall
be solely responsible for ensuring environmental certification and/or type approval of Products and/or the vehicle
applications to which they are being integrated, in accordance with applicable laws in the region where the Products supplied and/or
vehicle applications to which they are being integrated under this agreement will be distributed. Buyer shall certify or type approve
Products and/or corresponding vehicle applications through its own actions, or by requiring its customers to certify or type approve Products
and/or corresponding vehicle applications in accordance with all applicable laws.

 

 

 

 

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		10.5	Seller may provide, in its discretion, technical or other information about the Products to assist Buyer,
but Buyer will control and bear full responsibility for the integration of the Products into the Modified Vehicles.

 

		10.6	Buyer is solely responsible for any warranties it may provide End Customers regarding its work and/or
the Modified Vehicles. Seller is not responsible for any such End Customer warranties, nor is it responsible for the safety or quality
of design features, materials, or workmanship of Buyer.

 

	11.	WARRANTIES; LIMITATION OF LIABILITY

 

		11.1	Seller warrants that the Products supplied under
this Agreement will (a) be free from defects in materials or workmanship; (b) comply with the applicable Product specifications set forth
in Exhibit 2.1, for each Product purchased hereunder; and (c) be free and clear of any liens or encumbrances. [***] Buyer’s
exclusive remedies for breach of warranty are those outlined in Article 12. The warranty will not apply to any Products that were (i)
improperly integrated into the off-highway electrification application system applications; by or on behalf of Buyer, (ii) damaged through
misuse, negligence, accident, or improper handling, maintenance, or application after delivery to Buyer under this Agreement, (iii) lost
or damaged during transportation from place of delivery to Buyer’s manufacturing facility, or (iv) repaired or altered by or on
behalf of Buyer without Seller's prior written consent.

 

		11.2	EXCEPT AS OTHERWISE PROVIDED EXPRESSLY IN THIS AGREEMENT, THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER WILL NOT BE LIABLE TO BUYER ON ANY CLAIM
OF NEGLIGENCE OR MANUFACTURER’S STRICT LIABILITY ON PRODUCTS OR PARTS THEREOF SOLD TO BUYER EXCEPT IN CASE OF SELLER WILLFUL MISCONDUCT.
EXCEPT AS OTHERWISE SET FORTH HEREIN, SELLER ASSUMES NO OBLIGATIONS OR LIABILITIES, AND SELLER HAS AUTHORIZED NO OTHER PERSON OR PARTY
TO ASSUME FOR IT ANY OBLIGATIONS OR LIABILITIES, IN CONNECTION WITH SUCH PRODUCTS OR PARTS THEREOF.

 

		12.	CLAIMS

 

		12.1	Buyer will submit to Seller a claim in writing for any Products that (i) have been incorrectly included
in a shipment by Seller, (ii) have been omitted from a shipment as a result of a short delivery by Seller, or (iii) fail to meet the standards
set forth in Section 11.1.

 

		12.2	Claims under Sections 12.1(i) and 12.1(ii) must be submitted to Seller within forty-five (45) days of
Buyer taking ownership of the Products. Claims under Section 12.1(iii) must be submitted to Seller within one year of Buyer taking ownership
of the Products. Any claim not submitted within the periods stated above is barred from any remedy, except that if the submission of a
claim is delayed due to an event of Force Majeure, the period of submitting such claim is extended for the duration of such event of Force
Majeure.

 

		12.3	To the extent that Seller accepts a particular claim, Seller will authorize repair, replacement, or provide
credit to Buyer’s account for such defective, short shipped, wrongly shipped or damaged Products. Seller’s only obligation
under this Agreement is to provide a credit or repair or replace the part(s), at Seller's reasonably exercised option and expense, including
the cost of the Products or parts and transportation, including freight, insurance, and customs duty to the warehouse designated by Buyer.

 

		12.4	If Seller reasonably decides to authorize the repair of the Products by Buyer, then (i) Seller’s
quality standard for such parts will apply, and (ii) repair rates at currency per hour and labor times will be mutually agreed upon before
commencement of the repair work. Rework by Buyer on defective Products will be carried out in accordance with the following procedure:

 

		(a)	Seller gives official rework authorization (by model) to Buyer, and Buyer will perform or assign the third
parties to perform the rework subject to the authorization;

 

		(b)	Seller provides the instruction and any necessary training of Buyer’s technicians for rework;

 

		(c)	Seller provides the list of necessary repair parts; and

 

		(d)	Seller gives a clear definition of the scope of rework to be carried out by Buyer (including which parts
are authorized).

 

 

 

 

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		12.5	If Seller reasonably decides to replace defective Products or component parts, then Seller will be responsible
only for the cost of the Products or parts and transportation, including insurance, freight and customs duty to the warehouse designated
by Buyer.

 

		12.6	Buyer will contact its assigned OEM Sales Quality Representative to report and resolve problems.

 

		13.	field
                                            actions; PRODUCT LIABILITY; indemnification and insurance

 

		13.1	The Parties recognize that, as a result of integration, for which Buyer will be solely responsible as
well as other issues, the Products may perform differently in the off-highway application environments than in other vehicles and applications.
As a result, a Field Issue may exist on Products used in some applications that may not exist in other applications. Each Party will have
the right, at its sole discretion, to institute any Field Action investigation and Buyer will have the right, at its sole discretion,
to institute any Field Action in relation to the Products it purchases under this Agreement that are incorporated into the off-highway
applications. The Parties agree to put into place internal policies, procedures and practices for the investigation
and resolution of Product quality issues that could lead to a Field Action. If a Party elects to institute a Field Action investigation
which may lead to a Field Action decision, then the instituting Party will notify the other Party as soon as possible prior to instituting
any Field Action, but not less than three business days prior to that Party’s anticipated Field Action decision. 

 

		13.2	The Parties agree to cooperate with respect to any Field Action investigation,
including, but not limited to, exchanging relevant field and other information, at the discretion of the Parties acting in good faith.
Notwithstanding this Section 13.2, either Party can require the Parties to enter into a confidentiality agreement before sharing such
field and other information. 

 

		13.3	Buyer will be responsible for all costs associated with a Buyer Field Action.
In the event Buyer decides to institute a Field Action on Products but Seller decides not to conduct such Field Action on its Product
not otherwise sold to Buyer under this Agreement (“Seller’s Product”), Buyer shall be responsible for all costs
associated with any Buyer Field Action, In the event Seller decides to institute a Field Action on Seller’s Products but Buyer decides
not to conduct such Field Action on its Product, Seller shall be responsible for all costs associated with any Seller Field Action performed
on Seller’s Product. Buyer shall be responsible for and bear all costs associated with its decision not to carry out a Field Action
on Products.

 

		13.4	Buyer will be responsible for the defense and
all costs of product liability claims and litigation involving or brought against either Party involving the Products supplied to Buyer
hereunder, whether based on negligence, strict liability or any other legal theory for (i) damage to property (ii) personal injury or
(iii) death.

 

		13.5	With respect to any actual, potential, or threatened claim described in Section 13.4 above, the Parties
hereby agree to (i) communicate and cooperate with each other and, if required, with the appropriate insurance carrier, to the fullest
extent reasonably possible in investigating the facts and circumstances surrounding the claim and in litigating the matter; (ii) refrain
to the fullest extent reasonably possible from taking positions adverse to the interests of each other; and (iii) not, except in enforcement
of any rights under this Agreement, institute any claim, action or proceeding, whether by cross claim, third party claim, interpleader
or otherwise, against each other.

 

		13.6	With respect to field product quality issues, the Parties agree to work together to resolve the quality
issues.

 

		13.7	Buyer will defend, indemnify and hold harmless Seller and its Affiliates, directors, officers, employees
and agents (collectively, the “Indemnified Party”) from and against any and all suits, actions, enforcement actions,
claims, judgments, debts, obligations or rights of action of any nature or description, including product liability and recall claims,
and all costs, including attorneys’ fees, incurred by Seller and its Affiliates in connection therewith, arising out of or relating
to Products purchased by Buyer for Buyer’s development, assembly, manufacture, preparation, promotion, marketing, distribution,
sale and servicing of Products and/or integration of Products into the off-highway electrification applications or parts thereof, or any
acts, omissions, statements or representations of any employee, agent, officer or director of Buyer relating thereto. Seller will notify
Buyer of any such suit, action, claim, judgment, debt, obligation or right of action, promptly upon receiving notice or being informed
of the existence thereof. Upon such notice from Seller, Buyer will promptly take such action as may be necessary to protect and defend
the Indemnified Party against such suit, action, claim, judgment, debt, obligation or right of action, and will indemnify the Indemnified
Party against any loss, costs or expenses incurred in connection therewith.

 

 

 

 

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		13.8	Buyer will obtain and maintain pursuant to the terms of this Agreement, at its sole expense, the following
types of insurance coverage, with minimum limits as set forth below:

 

		(a)	Commercial General Liability covering liability arising from premises, operations, independent contractors,
products-completed operations, personal and advertising injury, and contractual liability – [***] each occurrence.

 

		(b)	Commercial Product Liability insurance – [***] each occurrence.

 

		(c)	Compulsory road traffic insurance in accordance with the Buyer’s Country Laws for all vehicles registered
on Buyer.

 

		(d)	Workers Compensation – statutory limits for all states of operation.

 

		(e)	Employers Liability – all of Buyer’s employees are subject to the Workers Insurance foreseen
in the Buyer Country, including its provisions on occupational injury compensation.

 

If any coverage is written on a Claims-made
basis, the retroactive date, if any, must precede the commencement of the performance of this Agreement. In addition, Buyer will purchase
an extended reporting period if the retroactive date is advanced or if the policy is canceled or not renewed and not replaced by another
claims-made policy with the same (or an earlier) retroactive date either during the term of the Agreement or within 3 years after completion
of the Agreement.

 

All policies of insurance procured by
Buyer herein will be written as primary policies, not contributing with nor in excess of coverage that Seller may carry. If Buyer’s
liability policies do not contain the standard separation of insured’s provision, or a substantially similar clause, they must be
endorsed to provide cross-liability coverage.

 

Buyer will provide Seller with a certificate
of insurance evidencing compliance with the insurance requirements set forth above. Certificate(s) will provide that Seller will be named
an additional insured on all liability policies (except Workers’ Compensation and Employers Liability). The certificate(s) will
provide that Seller will receive thirty (30) days’ prior written notice from the insurer of any termination or material reduction
in the amount or scope of coverage.

 

Such certificates must be in a form
acceptable to and underwritten by insurance company (ies) reasonably satisfactory to Seller. By requiring insurance herein, Seller does
not represent that coverage and limits will necessarily be adequate to protect Buyer. The purchase of appropriate insurance coverage by
Buyer or the furnishing of certificate(s) of insurance will not release Buyer from its respective obligations or liabilities under this
Agreement.

 

		14.	FORCE MAJEURE

 

		14.1	An “Event of Force Majeure” means with respect to a Party any event beyond the reasonable
control of such Party, including (i) any act of God, natural disaster, or war, (ii) any strike, lockout, or labor dispute at the plant
of such Party or its relevant suppliers, (iii) any shortage of electrical power at the facilities of such Party or its relevant suppliers
which materially affects the production of Products or Service Parts (iv) any act or omission of any government authority (including failure
to approve Agreements within a commercially reasonable time period), which materially affects the production
of Products or Service Parts; (v) any shortages of raw materials beyond Seller’s control; or (vi) any other event beyond the reasonable
control of such Party or its suppliers.

 

		14.2	If one Party is wholly or partially prevented from performing its responsibilities stipulated in this
Agreement by reason of an Event of Force Majeure, it will (i) notify the other Party in writing as soon as reasonably practicable after
the occurrence of such Event of Force Majeure, (ii) during the duration of an event of Force Majeure the Parties will use reasonable efforts
to mitigate damages, to the extent possible and (iii) the affected party will take appropriate means to minimize or remove the effects
of the Event of Force Majeure and, within the shortest practicable time, attempt to resume performance of the obligation affected by the
Event of Force Majeure. If an Event of Force Majeure occurs, the affected party will not be obligated to perform the affected obligations
during such period and the other Party will not be obligated to pay for any services or products not delivered.

 

 

 

 

    	 	9	 

     

    

 

		14.3	In case of an Event of Force Majeure, the allocation of Products in short supply during the time of such
Event of Force Majeure, or the allocation of capacity as production recovers from the Event of Force Majeure, will be the subject of good
faith negotiations between the Parties, and could include temporary arrangements for Buyer to purchase comparable Product from another
party while the Force Majeure continues.

 

		15.	TERM AND TERMINATION

 

		15.1	This Agreement will have an Effective Date of
August 3, 2022, and will continue in force through December 31, 2025 (the “Term”).

 

		15.2	Either Party may terminate this Agreement in the event of the happening of a material breach by the other
Party of performance of material obligations under this Agreement, which breach has not been remedied or waived within sixty (60) days
following receipt of written notification of the breach. For the avoidance of doubt, undisputed payment obligations will be considered
to be material obligations under this Agreement.

 

		15.3	Either Party may terminate this Agreement immediately if (a) the other Party voluntarily enters into bankruptcy
or similar proceedings, or (b) the other party involuntarily enters into bankruptcy or similar proceedings and such involuntary proceedings
are not vacated or nullified within fifteen (15)
days after being instituted.

 

		15.4	Termination of this Agreement will not affect any liability, which (i) has arisen prior to such termination,
or (ii) may arise after such termination, based on transactions made prior to such termination, or any obligations which, from the context
hereof, are intended to survive termination. Upon any termination Buyer shall be responsible to pay any demonstrated costs incurred by
Seller, unless terminated because of Seller’s breach under Section 15.1. Buyer shall also be responsible for the costs arising from
any commitments made by Seller on behalf of Buyer prior to receipt of the termination notice that cannot be mitigated or reversed.

 

		15.5	Seller shall fulfill all orders of Buyer which
were placed by Buyer and accepted by Seller prior to the notice of termination, unless such termination is by Seller in accordance with
Section 15.1 due to Buyer’s failure to pay undisputed amounts due
from Buyer to Seller pursuant to this Agreement, or Buyer’s bankruptcy
or similar proceeding under Section 15.2. 

 

		16.	TRADEMARKS, INTELLECTUAL PROPERTY RIGHTS

 

		16.1	Except as may be provided in a separate written agreement, neither Seller nor Buyer will use or authorize
the use of any trademarks or trade names or other distinctive marks or signs owned by the other or its Affiliates or any mark, name, word,
or sign which so nearly resembles any of the foregoing marks, names, words, or signs as to be likely to cause confusion or mistake or
to deceive the public.

 

		16.2	Buyer is aware, understands and fully accepts that, through this Agreement, it will not acquire any Intellectual
Property rights in the Products.

 

		16.3	Buyer
may not, and may not permit any of its agents or consultants to, modify,
decompile, copy, disassemble, translate, or reverse engineer the Products, Seller processes, or Confidential Information related to the
Products.

 

		17.	CONFIDENTIALITY and Data Privacy

 

		17.1	Confidential Information.

 

		(i)	“Confidential Information” means any information that the disclosing party would reasonably
expect the receiving party to keep confidential, including (i) technical information, including patent, copyright, trade secret and other
proprietary information, techniques, sketches, drawings, models, inventions, know-how, processes, apparatus, equipment, algorithms, software
programs, software source documents, and formulae related to the current, future and proposed Products and services of Seller or its Affiliates,
or (ii) non-technical information relating to the Products including, without limitation, pricing, margins, merchandising plans and strategies,
finances, financial and accounting data and information, suppliers, customers, customer lists, purchasing data, sales and marketing plans,
future business plans. Seller’s Confidential Information includes, but is not limited to, the mapping of data in the Product, messaging
protocols, OnStar architecture, OnStar product design, Seller’s institutional knowledge, or any process or processes to interact
with Product or related components, firmware or software. Confidential Information further includes, but is not limited to, all data and
information conveyed by Seller or its Affiliates as part of providing technical assistance to Buyer;

 

 

 

 

    	 	10	 

     

    

 

		(ii)	regardless of whether transmitted orally, in writing, or in any other tangible or machine readable form,
and whether or not labeled “confidential”, which is hereafter disclosed to either Party or its directors, officers employees,
or other agents by or on behalf of each Party or each Party’s Affiliates, or any of their respective directors, officers, employees,
or other agents; and

 

		(iii)	including, without limitation, any information or data of whatever kind generated by either Party, its
directors, officers, employees to the extent that it is generated from information or data referred to in 17.1(i) above.

 

		17.2	The obligations with respect to the Confidential Information will not apply if the Confidential Information:

 

		(i)	becomes public through no action of the receiving Party or its Affiliates;

 

		(ii)	is known or independently developed by each Party independent of its receipt of the Confidential Information;

 

		(iii)	becomes known to the receiving party from a source other than the disclosing party without breach of this
Agreement by the receiving party;

 

		(iv)	is disclosed by each Party to a third party without similar restrictions on disclosure;

 

		(v)	is disclosed with the written approval of the other Party; or

 

		(vi)	is required to be disclosed pursuant to a governmental or judicial process, provided that notice of any
such process is promptly provided to the other Party, to the extent allowable, in order that the other Party may have reasonably opportunity
to intercede in such process to contest such disclosure by any appropriate means, including seeking a protective order.

 

		17.3	Each Party will request, receive and use the Confidential Information only for the purposes described
under this Agreement, and both Party will not otherwise use or attempt to use the Confidential Information or any part of it for its own
advantage or gain, or the advantage or gain of any other Person, directly or indirectly other than what has been specified in this Agreement.
Neither this Agreement nor any activities contemplated herein affects the continued ownership of, or the right to use, the Confidential
Information by the owner of the Confidential Information.

 

		17.4	Each Party will keep the Confidential Information in safe custody and maintain it as secret and confidential,
and may not, without the prior written consent of an officer of the other Party disclose or divulge or cause or permit to be disclosed
or divulged the Confidential Information received from the other Party or from the other Party’s Affiliates (in whole or in part)
to any third party except as specifically set forth in this Agreement.

 

		17.5	Each Party will only allow access to the Confidential Information to persons in the other Party’s
organization with a need-to-know and only to the extent bona fide necessary to complete the activities contemplated within this Agreement,
and only if they are under a similar obligation of confidentiality.

 

		17.6	Upon written demand by either Party
at any time, each Party will return to the other Party the Confidential Information as well as any copies or duplicates thereof, or provide
the other Party with an officer’s certificate to confirm that any documents, data, duplicates, tangible copies of the Confidential
Information disclosed have been retrieved from all recipients and storage locations, destroyed, removed or deleted without retaining any
copies of such. Notwithstanding the foregoing, the Recipient may retain
copies of Confidential Information stored on electronic back-up media automatically generated in the routine course of business by the
Recipient until such automatically generated backups are destroyed in the routine course of its business. Such automatically generated
backup copies of Confidential Information shall be subject to the terms of this Agreement until destruction.

 

 

 

 

    	 	11	 

     

    

 

		17.7	Each Party must advise the other Party in writing promptly after discovering, or having cause to suspect,
any breach of this Article 17 and will assist in investigating and prosecuting any such breach including but not limited to:

 

		(i)	providing any information of the breach to the other Party;

 

		(ii)	reporting (only with the consent of the other Party), or assisting the other Party in reporting such activities
to the administrative and judicial authorities with competent jurisdiction;

 

		(iii)	issuing (only with the consent of the other Party), any statements and affidavits regarding any such breach;
and

 

		(iv)	causing its directors, officers, employees, and agents to provide assistance for each Party to gather
necessary information or evidence.

 

		17.8	The obligation of confidentiality and non-disclosure contained in this Agreement will not apply to the
extent that disclosure is required by a valid subpoena, order or regulation of a governmental agency or a court of competent jurisdiction
or arbitral panel with jurisdiction, provided that such required disclosure will, to the extent practicable, only be made after the other
Party has been given a reasonable opportunity to review and challenge such disclosure and after taking into account the reasonable requirements
of the other Party as to the timing, content and matter of such disclosure.

 

		17.9	Buyer acknowledges and understands that any Buyer employee or agent that is to be granted access to any Confidential Information or data
shall first sign an Individual Confidentiality and Data Protection Agreement (attached hereto as Exhibit 17.9).

 

		18.	INFORMATION SECURITY AND PRIVACY
		 	 
		 	Buyer is solely responsible for the
information technology infrastructure, including all computers, software, databases, electronic systems (including database management
systems) and networks used by or for Buyer to access Seller systems or Seller’s Confidential Information or otherwise in connection
with the provision of Products and shall prevent unauthorized access to Seller systems or Confidential Information through Buyer’s
systems. Throughout the Term, and at all times in connection with its actual or required performance hereunder, Buyer will maintain and
enforce an information security program including safety and physical and technical security policies and procedures with respect to its
processing of Seller’s Confidential Information that meet or exceed the requirements of Seller’s Third Party Information Security
Requirements set forth in Exhibit 18.1.

 

		19.	NOTICES

 

Any notice required to be given by
either Party to the other in connection with this Agreement will be made in writing and will be sent by prepaid registered mail to such
Party’s address set forth in Exhibit 19. Notices pertaining to matters other than termination or modification of this Agreement
may instead be transmitted by means of facsimile or email.

 

		20.	AMENDMENTS

 

Any amendment or modification to this
Agreement must be made in writing and signed by an authorized representative of the Parties. This applies also to amendments to this Article
20.

 

		21.	ASSIGNMENT

 

No Party may assign its rights or interests
under this Agreement or delegate its duties hereunder without the prior written consent of the other Party. Any purported assignment or
transfer of this Agreement without such consent, or any substantial change in the ownership of the capital stock of either Party shall
entitle the other Party to terminate this Agreement upon 30 days’ written notice, subject to a final accounting for goods sold and
received. “Substantial”, for purposes of this Article 21, is defined as fifty percent (50%) or more ownership interest. The
foregoing does not apply to assignments to successors in interest, upon which this Agreement shall be binding.

 

 

 

 

    	 	12	 

     

    

 

		22.	SEVERABILITY

 

Invalidity of any provision of this
Agreement will not affect any other provision and, in the event of a judicial finding of such invalidity, this Agreement will remain in
force in all other respects. The Parties will in good faith attempt to agree a valid substitute clause that will preserve as near as possible
the original intent of this Agreement; in the absence of such agreement Michigan law will apply as substitute for the invalid provision.

 

		23.	NO IMPLIED WAIVERS

 

Failure of Buyer or Seller at any
time to require performance by the other of any provision hereof will in no way affect the full right to require such performance at any
time thereafter. Waiver by either Buyer or Seller of a breach of any obligation hereunder will not constitute a waiver of any succeeding
breach of the same obligation itself. Failure of either Buyer or Seller to exercise any of its rights provided under this Agreement will
not constitute a waiver of such right.

 

		24.	NO AGENCY

 

		24.1	Nothing in this Agreement will give rise to an agency or partner relationship or otherwise create any
rights in either Party to act as a legal representative of the other Party for any purpose. Neither is granted any express or implied
right or authority to assume or to create any obligation on behalf of or in the name of the other or its Affiliates, or to bind them in
any manner whatsoever.

 

		24.2	Unless otherwise agreed herein, Buyer and Seller will each be solely responsible for any and all expenditures,
obligations or responsibilities made, incurred or assumed by it in preparation for performance or in the performance of its obligations
under this Agreement.

 

		25.	GOVERNMENT APPROVALS

 

		25.1	The Parties will cooperate in securing any government approvals or permits required to affect the transactions
contemplated by this Agreement.

 

		25.2	Unless otherwise agreed by the Parties, Seller will be responsible for securing any licenses or permits
and paying any duties or fees required to export Products from their country of manufacture. Buyer will be responsible for securing any
licenses or permits and paying any duties or fees required to import Products into the country of Buyer or to import Products into any
other country or jurisdiction. Failure of Buyer to fulfill any such responsibility will not relieve Buyer of any obligations to Seller
in connection with any such Products purchased by Buyer.

 

		25.3	Buyer will present this Agreement to appropriate government agencies for registration, if required. Buyer
will pay all costs and expenses incidental to such presentation, and to the preparation, execution and stamping, if any of this Agreement.

 

		26	SET OFF

 

Neither Party will be entitled to
set off any claims against any claims of the other Party resulting from this Agreement unless by means of a final and binding judgment
of court or arbitration panel.

 

		27.	ENTIRE AGREEMENT

 

		27.1	There are no other agreements or understandings, either oral or written, between the Parties affecting
this Agreement or relating to the supply of the Products, except as otherwise specifically provided or referred to in this Agreement.
For the purpose of clarification, it is expressly agreed that no general terms and conditions will apply to the sale of the Products hereunder.

 

 

 

 

    	 	13	 

     

    

 

		27.2	Except as otherwise provided in this Agreement, no agreement between the Parties which is at variance
with any of the provisions of this Agreement or which imposes definite obligations upon either Party not specifically imposed by this
Agreement or which is intended to be effective or performed following the expiration or other termination of this Agreement and imposes
obligations or extends the time for performance thereof other than as provided in this Agreement will be binding upon either Party unless
it is in writing and is executed by a duly authorized representative of each of the Parties.

 

		28.	GOVERNING LAW, JURISDICTION; DISPUTE RESOLUTION

 

		28.1	This Agreement, including, but not limited to, its validity, interpretation, performance, effects, derivatives
and consequences, is governed by the laws of the Michigan, USA, without reference to the conflict of laws principles thereof. Each Party
consents, for purposes of enforcing this Agreement, to personal jurisdiction, service of process and venue in any state or federal court
within the Michigan having jurisdiction over the subject matter. Both Parties acknowledge that the United
Nations Convention on Agreements for the International Sale of Goods does not apply to the transaction contemplated under this Agreement.

 

		28.2	EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS
RELATING TO THIS AGREEMENT.

 

		28.3	Before the filing of any claim in any court (except in cases where a Party is threatened with irreparable
harm and seeks injunctive relief), a Party will serve on the other (a) written notice of the claim, specifying the exact amount claimed
and the provision of this Agreement or other authority for the claim; and (b) a copy of all supporting documents.

 

Within 10 business
days after service, the Responding Party will serve on the serving Party (a) a written response, setting out its position and specifying
the provision of this Agreement relied on; and (b) a copy of all supporting documents.

 

Within 10 days after
service of the response, the Parties will meet to discuss resolution of the claim. Each Party may bring up to three people to this negotiation,
at least one of whom is an executive who is not involved in the performance of this Agreement. The written claim notice and response and
the documents produced, but not the subsequent discussion, are admissible in any court proceeding.

 

		29.	COUNTERPARTS

 

This Agreement may
be executed simultaneously in counterparts (and may be delivered by facsimile), each of which will be deemed an original, but all of which
together will constitute a single agreement.

 

IN WITNESS WHEREOF, this Agreement has
been executed on behalf of the Parties by their duly authorized representatives.

 

 

	General Motors LLC	Volcon, Inc.
	 	 
	By: /s/ John Roth                                    	By: /s/ Jordan Davis                                 
	 	 
	Name: John Roth	Name: Jordan Davis
	Title: Global Vice President	Title: CEO
	Date: August 9, 2022	Date: 8/3/2022

 

 

 

    	 	14	 

     

    

 

Exhibits 

[***] 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	15Exhibit 10.3

 

Certain portions of
this exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is (i) not material
and (ii) the type that the registrant treats as private or confidential. Information that has been omitted has been noted in
this document with a placeholder identified by the mark “[***]”.

 

SUPPLIER AGREEMENT

 

This Supplier Agreement (“Agreement”)
is made as of August 11, 2022 (“Effective Date”), by and between Volcon, Inc., a Delaware corporation, of 2590 Oakmont Dr.,
STE 520, Round Rock, Texas 78665(“Company”), and GLV Ventures, of 417 E 2nd ST, Rochester, Michigan 48307, (GLV), (“Supplier”)
(mutually, the “Parties”).

 

Company desires to have Supplier perform services
and manufacturing of the Volcon Stag throughout its production life and as identified in the attached Exhibits, and in accordance with
the terms and conditions of this Agreement.

 

NOW THEREFORE, the parties agree as follows:

 

	1.	SERVICES

 

		1.1.	Statement of Work. Company and Supplier have executed a statement of work,
substantially in the form attached hereto as Exhibit A, which describes the specific services to be performed by Supplier (as executed,
the “Statement of Work”). The Statement of Work will expressly refer to this Agreement, will form a part of this Agreement,
and will be subject to the terms and conditions contained herein. The Statement of Work may be amended only by written agreement of the
parties.

 

		1.2.	Performance of Services. Supplier will perform the services described in
the Statement of Work (the “Services”) in accordance with the terms and conditions set forth in the Statement of Work and
this Agreement.

 

		1.3.	Delivery. Supplier will deliver to Company any company owned deliverables,
designs, modules, software, products, documentation and other materials specified in the Statement of Work (individually or collectively,
“Deliverables”) in accordance with the delivery schedule and other terms and conditions set forth in the Statement of Work.

 

		1.4.	Consideration. As Supplier’s sole compensation for the performance
of the Services and the rights granted hereunder, Company will provide Supplier the consideration set forth in the Statement of Work,
on the terms and in the manner set forth in the Statement of Work. Without limiting the generality of the foregoing, Supplier acknowledges
and agrees that, if specified in the Statement of Work, Company’s payment obligations will be expressly subject to Supplier’s
completion or achievement of certain milestones to Company’s reasonable satisfaction.

 

		1.5.	Expenses. Unless otherwise specified in the Statement of Work, Company will
not reimburse Supplier for any expenses incurred by Supplier in connection with performing Services and any expenses incurred by Supplier
in performing the Services will be the sole responsibility of Supplier. Any specialty software licenses needed for projects, other than
general design software, will be approved by Company and provided at Company’s expense.

 

		1.6.	Payment Terms. All fees and other amounts payable set forth in the Statement
of Work, if any, are stated in and are payable in U.S. dollars. Unless otherwise provided in the Statement of Work, Supplier will invoice
Company upon completion of the list of deliverables identified below for all fees and expenses payable to Supplier, and Company will pay
the full amount of each such invoice within thirty (30) days following issuance of invoice except for any amounts that Company disputes
in good faith. The parties will use their respective commercially reasonable efforts to promptly resolve any such payment disputes. All
past due amounts shall bear finance charges at a rate of the lesser of 1.5% per month (18% annual percentage rate) or the maximum rate
permitted by law.

 

 

 

 

    	 	1	 

     

    

 

		1.7.	Schedule of Deliverables for Invoicing:

 

		1.7.1.	Production Tooling Kickoff – beginning [***] as required and approved by
Volcon

 

		1.7.2.	Production Kickoff [***]

 

		1.8.	Manufacturing Deliverables for the Invoicing of Finished Goods:

 

		1.8.1.	[***]

 

		1.8.2.	FOB: South Texas

 

		1.8.3.	Payment terms: Net 30 at shipment of product from Supplier Facility

 

		1.8.4.	Motor, [***], Controller, and Harness based on existing BOM pricing as quoted by
Powertrain Control Solutions (PCS)

 

		1.9.	Company Forecast and Purchase Order Requirements. The Company shall provide
the Supplier with a twelve-week (12) rolling forecast, each week, delivered to the Supplier no later than the end of the day, each Monday.
Purchase Order Releases shall be placed 30 days in advance of expected delivery and shall request four (4) weeks’ worth of delivery
volume, scheduled weekly. Volumes set forth in said Purchase Orders shall substantially match the volumes represented in the most recent
forecast’s first four-week (4) period, however, the Supplier will make commercially reasonable efforts to accommodate additional
demand up to 20%. In addition, the Company shall provide a 90-day material forecast for planning purposes. The Company will be responsible
for all costs associated with materials and finished goods within the forecast period in the event the Company terminates production,
delays production due to design changes, or terminates this agreement. In the event production is terminated, delayed, or this Agreement
is terminated for cause related to a material breach or non-performance, the Company will not be liable for costs associated with materials
and/or finished goods within the most recent forecast period. Supplier will reserve production capacity of up to 30% increases year over
year during the term of this agreement to accommodate annual increases in demand forecasts.

 

		1.10.	Service and Warranty Parts. Supplier shall maintain a commercially reasonable
level of replacement part inventory during the term of the agreement. At any given time, the level of aggregate inventory should be no
less than [***]. Supplier shall sell to Company parts at [***] cost of the part(s), FOB South Texas.

 

		1.11.	Supplier Personnel. Supplier will perform all Services only through its regular,
full-time employees and through subcontractors to the extent that any Supplier Personnel are required to perform Services at a Company
facility, Supplier will first ensure that such Supplier Personnel have been informed of Company’s workplace, computer and security
policies and procedures, and will comply with such policies and procedures at all times.

 

		1.12.	Company Personnel. Supplier shall permit Company personnel to work with Supplier
personnel at the Supplier’s site(s) to assist in the identification of engineering, manufacturing, or quality issues, including
designs, specifications, prototypes, verifications, compliance, and regulatory issues. Company personnel shall be permitted to observe
the manufacturing of the goods during the manufacturing process, provided the Company’s personnel do not interfere with the manufacturing
of the vehicle(s). Company personnel shall be permitted to communicate quality control issues and concerns with Supplier during the manufacturing
of the vehicle(s).

 

		1.13.	End of Line Testing. The Parties shall collaborate on end of line testing.
Seller shall provide appropriate diagnostic tools for end of line testing. The Parties shall mutually agree on pass/fail criteria for
end of line testing. The Goods shall be compatible with On-Board Diagnostics II systems, or component manufactured specific and diagnostic
tool will be provided for end of line testing

 

		1.14.	Labeling and Packaging. Supplier shall provide Company with documentation
showing Supplier’s identification number for each unit (including each unit’s Vehicle Identification Number), the quantity
of units in each delivery, the bill of lading number and the country of origin. Supplier shall maintain a record of such documents for
ten (10) years after delivery. In the event labeling and/or packaging are necessary, labeling and packaging requirements will be specified
in writing by Company and all costs associated with labeling and/or packaging will be the responsibility of the Company.

 

 

 

    	 	2	 

     

    

 

		1.15.	End of Life and Wind Down. Following the expiration or termination of this
Agreement, the Supplier shall offer to the company the right of first refusal to purchase any and all tooling applicable to the production
of the Goods (excluding production conveyor). Supplier shall cooperate with Company and provide reasonable assistance to affect the orderly
and efficient transfer of the manufacturing from Supplier to Company or a third party designated by the Company and without disruption
to the Company’s business. This assistance shall include:

 

		1.15.1.	the continued manufacture of the Goods by Seller after the termination or expiration
date for a transition period and on terms mutually agreeable to the Parties and contingent on the availability of Third Party Products;

 

		1.15.2.	the transfer of all inventories of Goods and works in process (upon payment for
such Goods); and,

 

		1.15.3.	the transfer of any Tooling for which Company has fully paid

 

		1.16.	Discontinuation of Production. Supplier agrees to make available for purchase
replacement parts to the Company for a period of [***] years after the end of mass production for the contracted product and subcomponents.
Supplier agrees in the case of termination of supply a lifetime forecast and buy is conducted with both parties in agreement. The parts
and components are to be exclusively used to supply the Company. In the event Supplier is unable to procure and sell components, sub-assemblies,
or replacement parts to Buyer, Supplier will use commercial best efforts to transfer supply chain points relationships to Buyer and to
assist in establishing a flow of parts, sub-assemblies and replacement parts to ensure after sale service continuity.

 

	2.	TOOLING.

 

		2.1.	Supplier Responsibility. Supplier assumes all responsibility for cost of
applicable tooling and fixturing regarding any and all items sourced to or provided by Supplier. This includes all design and engineering
required for tools, fixtures, and parts pertaining to the assembly or construction of these products and all items, including tooling
and fixtures and all equipment and fixtures paid for by the supplier will be owned by Supplier. Supplier is responsible for any and all
tool maintenance and repair including any associated expenses.

 

	3.	RELATIONSHIP OF THE PARTIES

 

		3.1.	Independent Contractor. Supplier is an independent contractor and nothing
in this Agreement will be construed as establishing an employment or agency relationship between Company and Supplier or any Supplier
Personnel. Supplier has no authority to bind Company by contract or otherwise. Supplier will perform Services under the general direction
of Company, but Supplier will determine, in Supplier’s sole discretion, the manner and means by which Services are accomplished,
subject to the requirement that Supplier will at all times comply with applicable law.

 

		3.2.	Taxes and Employee Benefits. Supplier will report to all applicable government
agencies as income all compensation received by Supplier pursuant to this Agreement. Supplier will be solely responsible for the payment
of all compensation to all Supplier Personnel as well as for the payment of all withholding taxes, social security, workers’ compensation,
unemployment and disability insurance or similar items required by any government agency. Supplier Personnel will not be entitled to any
benefits paid or made available by Company to its employees, including, without limitation, any vacation or illness payments, or to participate
in any plans, arrangements or distributions made by Company pertaining to any bonus, stock option, profit sharing, insurance or similar
benefits. Supplier will indemnify and hold Company harmless from and against all damages, liabilities, losses, penalties, fines, expenses
and costs (including reasonable fees and expenses of attorneys and other professionals) arising out of or relating to any obligation imposed
by law on Company to pay any withholding taxes, social security, unemployment or disability insurance or similar items in connection with
compensation received by Supplier pursuant to this Agreement.

 

		3.3.	Liability Insurance. Supplier acknowledges that Company will not carry any
liability insurance on behalf of Supplier. Supplier will maintain in force adequate liability insurance to protect Supplier from (i) claims
under workers’ compensation and state disability acts, and (ii) claims of personal injury (or death) or tangible or intangible property
damage (including loss of use) that arise out of any act or omission of Supplier or any Supplier Personnel. Supplier will carry general
insurance coverage for manufacturing facilities and inventory valid throughout any country where the Supplier maintains operations applicable
to the manufacture of the Goods in the amount of $1,000,000.00 per occurrence, and $2,000,000.00 in aggregate during the term of this
Agreement and for 1 years following the termination or expiration of the Agreement.

 

 

 

 

    	 	3	 

     

    

 

		3.4.	Force Majeure. In the event either party is unable to fully perform its
obligations hereunder (except for Company’s obligation to pay for Goods ordered) due to events beyond its reasonable control including
but not limited to acts of God, action by any governmental authority (whether valid or invalid), fires, floods, windstorms, explosions,
riots, natural disasters, wars, pandemics, epidemics, sabotage, inability to obtain power, material, equipment or transportation, or court
injunction or order, that party shall be relieved of its obligations to the extent it is unable to perform. Timely notice of such inability
to perform shall be given to the other party.

 

		3.5.	Compliance with Laws. Each Party shall at all times comply with all local,
regional, national, and international Laws applicable to this Agreement, the Party’s performance of its obligations hereunder, and
the Party’s use or sale of the Goods. Without limiting the generality of the foregoing, each Party shall (a) at its own expense,
maintain all certifications, credentials, licenses, and permits necessary to conduct its business relating to the purchase, use or resale
of the Goods and (b) not engage in any activity or transaction involving the Goods, by way of resale, lease, shipment, use or otherwise,
that violates any Law.

 

	4.	OWNERSHIP.

 

		4.1.	Disclosure of Work Product. Supplier will, as an integral part of the performance
of Services, disclose in writing to Company (if applicable) all inventions, products, designs, drawings, notes, documents, information,
test data, documentation, improvements, works of authorship, processes, techniques, know-how, algorithms, specifications, biological or
chemical specimens or samples, hardware, circuits, computer programs, databases, user interfaces, encoding techniques, and other materials
of any kind that Supplier may make, conceive, develop or reduce to practice, alone or jointly with others, in connection with performing
Services, before or after the Effective Date, or that result from or that are related to such Services, whether or not they are eligible
for patent, copyright, mask work, trade secret, trademark or other legal protection (collectively, “Supplier Work Product”).
Supplier Work Product includes, without limitation, any Deliverables that Supplier delivers to Company pursuant to Section 1.3

 

		4.2.	Ownership of Supplier Work Product. Supplier and Company agree that, to
the fullest extent permitted by applicable law, and if applicable, each item of Supplier Work Product, if applicable and owned by company,
will be a work made for hire owned exclusively by Company. Supplier agrees that, regardless of whether an item of Supplier Work Product
is a work made for hire, all Supplier Work Product will be the sole and exclusive property of Company. Supplier hereby irrevocably transfers
and assigns to Company, and agrees to irrevocably transfer and assign to Company, all right, title and interest in and to the Supplier
Work Product, including all worldwide patent rights (including patent applications and disclosures), copyright rights, mask work rights,
trade secret rights, know-how, and any and applicable intellectual property or proprietary rights (collectively, “Intellectual Property
Rights”) therein. At Company’s request and expense, during and 90 days after the term of this Agreement, Supplier will assist
and cooperate with Company in all respects and will cause all Supplier Personnel to assist and cooperate with Company in all respects,
and will execute documents and will cause all Supplier Personnel to execute documents, and, subject to the reasonable availability of
Supplier, give testimony and take such further acts reasonably requested by Company to enable Company to acquire, transfer, maintain,
perfect and enforce its Intellectual Property Rights and other legal protections for the Supplier Work Product. Nothing in this Agreement
grants or confers or shall be construed to grant or confer to Supplier, expressly or impliedly, any right or license to any Intellectual
Property Rights or to any application for any Intellectual Property Rights (including patent applications or patents) that are transferred
to, assigned to, held by and/or that are in the name of Company.

 

		4.3.	Moral Rights. To the fullest extent permitted by applicable law, Supplier
also hereby irrevocably transfers and assigns to Company, and agrees to irrevocably transfer and assign to Company, and waives and agrees
never to assert, any and all Moral Rights (as defined below) that Supplier or any Supplier Personnel may have in or with respect to any
Supplier Work Product, during and after the term of this Agreement. “Moral Rights” mean any rights to claim authorship of
a work, to object to or prevent the modification or destruction of a work, to withdraw from circulation or control the publication or
distribution of a work, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is called or generally referred to as a “moral right.”

 

		4.4.	Related Rights. To the extent that Supplier owns or controls (presently or
in the future) any patent rights, copyright rights, mask work rights, trade secret rights, or any other intellectual property or proprietary
rights that may block or interfere with, or may otherwise be required for, the exercise by Company of the rights assigned to Company under
this Agreement (collectively, “Related Rights”), Supplier hereby grants or will cause to be granted to Company (as applicable)
a non-exclusive, royalty-free, irrevocable, perpetual, transferable, worldwide license (with the right to sublicense) to make, have made,
use, offer to sell, sell, import, copy, modify, create derivative works based upon, distribute, sublicense, display, perform and transmit
any products, software, hardware, methods or materials of any kind that are covered by such Related Rights, to the extent necessary to
enable Company to exercise all of the rights assigned to Company under this Agreement.

 

 

 

 

    	 	4	 

     

    

 

		4.5.	Excluded Inventions. Attached hereto as Exhibit B is a list describing all
existing inventions, if any, that may relate to Company’s business or actual or demonstrably anticipated research or development
and that were made by Supplier or acquired by Supplier prior to the Effective Date, and which are not to be assigned to Company (“Excluded
Inventions”). For purposes of this Agreement, “Other Inventions” means inventions, if any, in which Supplier has or
may have an interest, as of the Effective Date or thereafter, other than Supplier Work Product and the Excluded Inventions. As applicable,
supplier shall not use the Excluded Inventions or any Other Inventions in any Supplier Work Product without Company’s prior written
consent. Supplier acknowledges and agrees that if, in the scope of providing the Services contemplated by this Agreement, Supplier desires
to use any Excluded Inventions or any Other Inventions, or if Supplier desires to include any Excluded Inventions or Other Inventions
in any product or service of Company or if Supplier’s rights in any Excluded Inventions or Other Inventions may block or interfere
with, or may otherwise be required for, the exercise by Company of any rights assigned to Company under this Agreement, Supplier will
first immediately so notify Company in writing. Unless Company and Supplier agree otherwise in writing as to particular Excluded Inventions
or Other Inventions, Supplier hereby agrees to grant, and hereby does grant, to Company, in such circumstances (whether or not Supplier
gives Company notice as required above), a perpetual, irrevocable, nonexclusive, transferable, world-wide, royalty-free license to use,
disclose, make, sell, offer for sale, import, copy, distribute, modify and create works based on, perform, and display such Excluded Inventions
and Other Inventions, and to sublicense third parties in one or more tiers of sublicensees with the same rights. This excludes any data
or components that are not in the control of the Supplier including but not limited to: Powertrain Control Systems (“PCS”)
and General Motors (“GM”).

 

	5.	CONFIDENTIAL INFORMATION.

 

		5.1.	For purposes of this Agreement, “Confidential Information” means and
will include: (i) any information, materials or knowledge regarding Company and its business, financial condition, products, programming
techniques, customers, suppliers, technology or research and development that is disclosed to Supplier or to which Supplier has access
in connection with performing Services; (ii) the Supplier Work Product; and (iii) the terms and conditions of this Agreement. Confidential
Information will not include any information that: (a) is or becomes part of the public domain through no fault of Supplier; (b) was rightfully
in Supplier’s possession at the time of disclosure, without restriction as to use or disclosure; or (c) Supplier rightfully receives
from a third party who has the right to disclose it and who provides it without restriction as to use or disclosure. At all times, both
during Supplier’s engagement by Company as an independent contractor and after, and to the fullest extent permitted by law, Supplier
agrees to hold all Confidential Information in strict confidence, not to use it in any way, commercially or otherwise, except in performing
Services, and not to disclose it to others. Supplier further agrees to take all actions reasonably necessary to protect the confidentiality
of all Confidential Information, including, without limitation, implementing and enforcing procedures to minimize the possibility of unauthorized
use or disclosure of Confidential Information. No disclosure of Confidential Information by Company to Supplier will in any way be deemed
a license (except for the limited purpose of performing Services) or other grant of proprietary interest in Confidential Information.
In reference to Volcon and Company mutual NDA.

 

	6.	WARRANTIES.

 

		6.1.	No Pre-existing Obligations. Supplier represents and warrants that Supplier
has no pre-existing obligations or commitments (and will not assume or otherwise undertake any obligations or commitments) that would
be in conflict or inconsistent with or that would hinder Supplier’s performance of its obligations under this Agreement.

 

		6.2.	Performance Standard. Supplier represents and warrants that the Services
will be performed in a thorough and professional manner, consistent with high professional and industry standards by individuals with
the requisite training, background, experience, technical knowledge and skills to perform the Services.

 

		6.3.	Non-infringement. Supplier represents and warrants that the Supplier Work
Product will not infringe, misappropriate, or violate the rights of any third party, including, without limitation, any Intellectual Property
Rights or any rights of privacy or rights of publicity, except to the extent any portion of the Supplier Work Product is created, developed
or supplied by Company or by a third party on behalf of Company.

 

 

 

 

    	 	5	 

     

    

 

		6.4.	Competitive Activities. During the term of this Agreement, Supplier will
not, directly or indirectly, in any individual or representative capacity, engage or participate in or provide services to any business
that is competitive directly, as it pertains to current products at the commencement of this agreement, with the types and kinds of business
being conducted by Company.

 

		6.5.	Non-Solicitation of Personnel. During the term of this Agreement and for
a period of three (3) years thereafter, Supplier will not directly or indirectly solicit the services of any Company employee or Supplier
for Supplier’s own benefit or for the benefit of any other person or entity.

 

		6.6.	Agreements with Supplier Personnel. Supplier represents and warrants that
all Supplier Personnel who perform Services are and will be bound by written agreements with Supplier under which: (i) Supplier owns or
is assigned exclusive ownership of all Supplier Work Product, including all Intellectual Property Rights therein; and (ii) Supplier Personnel
agree to limitations on the use and disclosure of Confidential Information no less restrictive than those provided in Section 5.

 

	7.	MUTUAL INDEMNIFICATION.

 

		7.1.	Parties will defend, indemnify and hold harmless its Parties and its representatives,
officers, directors, employees, agents, affiliates, successors, and assigns from and against all claims, damages, liabilities, losses,
expenses and costs (including reasonable fees and expenses of attorneys and other professionals) arising out of or resulting from: (i)
any action by a third party against Parties that is based on a claim that any Services performed under this Agreement, or the results
of such Services (including any Supplier Work Product), or Company’s use thereof, infringe, misappropriate or violate such third
party’s Intellectual Property Rights; and (ii) any action by a third party against Company that is based on any act or omission
of Supplier or any Supplier Personnel and that results in: (i) personal injury (or death) or tangible or intangible property damage (including
loss of use); or (ii) the violation of any statute, ordinance, or regulation.

 

	8.	TERM AND TERMINATION.

 

		8.1.	Term. This Agreement will commence on the Effective Date and, unless terminated
earlier in accordance with the terms of this Agreement, will remain in force and effect for as long as Supplier is performing Services
pursuant to the Statement of Work.

 

		8.2.	Termination for Breach. Either party may terminate this Agreement (including
the Statement of Work) if the other party breaches any material term of this Agreement and fails to cure such breach within sixty (60)
days following written notice thereof from the non-breaching party.

 

		8.3.	Effect of Termination. (a) Upon the expiration and payment to Supplier
in full, and if applicable and owned by Company, Supplier will promptly deliver to Company all Supplier Work Product, software licenses,
equipment provided by Company to Supplier, including all work in progress on any Supplier Work Product not previously delivered to Company,
if any. (b) Upon the expiration, Company will pay Supplier any amounts that are due and payable under Section 1.2 for Services performed
by Supplier prior to the effective date of expiration. (c) Upon the expiration of this Agreement, Supplier will promptly notify Company
of all Confidential Information in Supplier’s possession or control and will promptly deliver all such Confidential Information
to Company.

 

		8.4.	Survival. The rights and obligations of the parties under Sections 3, 4,
5, 6, 7, 8 and 9 will survive the expiration or termination of this Agreement.

 

	9.	LIMITATION OF LIABILITY.

 

		9.1.	IF A CONDITION ARISES BASED ON THE ACTIONS OF COMPANY, COMPANY WILL BE LIABLE FOR
ANY SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN IF COMPANY HAS BEEN INFORMED
IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

 

 

 

 

    	 	6	 

     

    

 

	10.	GENERAL.

 

		10.1.	Assignment. Supplier may not assign or transfer this Agreement, in whole
or in part, without Company’s express prior written consent. Any attempt to assign this Agreement, without such consent, will be
void. Subject to the foregoing, this Agreement will bind and benefit the parties and their respective successors and assigns. The Company
may assign or transfer this Agreement, in whole or in part, without Supplier’s consent, as long as this agreement stays in effect.

 

		10.2.	No Election of Remedies. Except as expressly set forth in this Agreement,
the exercise by Company of any of its remedies under this Agreement will not be deemed an election of remedies and will be without prejudice
to its other remedies under this Agreement or available at law or in equity or otherwise.

 

		10.3.	Equitable Remedies. Because the Services are personal and unique and because
Supplier will have access to Confidential Information of Company, Company will have the right to enforce this Agreement and any of its
provisions by injunction, specific performance or other equitable relief. Company must post a bond or other consideration, in addition
to all other remedies that Company may have for a breach of this Agreement at law or otherwise.

 

		10.4.	Attorneys’ Fees. If any action is necessary to enforce the terms
of this Agreement, the substantially prevailing party will be entitled to reasonable attorneys’ fees, costs and expenses in addition
to any other relief to which such prevailing party may be entitled.

 

		10.5.	Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Texas, excluding its body of law controlling conflict of laws. Any legal action or proceeding arising under
this Agreement will be brought exclusively in the federal or state courts located in Williamson County, Texas and the parties hereby irrevocably
consent to the personal jurisdiction and venue therein.

 

		10.6.	Severability. If any provision of this Agreement is held invalid or unenforceable
by a court of competent jurisdiction, the remaining provisions of this Agreement will remain in full force and effect, and the provision
affected will be construed so as to be enforceable to the maximum extent permissible by law.

 

		10.7.	Waiver. The failure by either party to enforce any provision of this Agreement
will not constitute a waiver of future enforcement of that or any other provision.

 

		10.8.	Notices. All notices required or permitted under this Agreement will be
in writing, will reference this Agreement, and will be deemed given: (i) when delivered personally; (ii) when delivered by confirmed electronic
transmission (including email); (iii) one (1) business day after deposit with a nationally recognized express courier, with written confirmation
of receipt; or (iv) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage
prepaid. All such notices will be sent to the addresses set forth above or to such other addresses as may be specified by either party
to the other party in accordance with this Section.

 

		10.9.	Performance Consequential Damages. If Supplier has not achieved the performance
deliverable pursuant to Exhibit A, Section 4.1(c) - Production Ramp (First Customer Shipments “FCS”) – Week of June
5, 2023, or earlier as agreed to by Company and the Supplier, the Supplier shall be notified as identified in Supplier Agreement, Section
10.9. Upon receipt of written notice of default, the Supplier will have ten (10) calendar days to provide a written explanation of any
justification that may be applicable to the Consequential damages being considered and a corrective action plan for bringing the operations
within the standards specified. Company will have the right to approve and make changes to the corrective action plan submitted by Supplier.
The corrective action plan must be implemented by Supplier at no cost to and upon approval by Company. Consequential damages will not
be assessed during the specified cure period for the activity in question. Supplier’s failure to achieve the approved corrective
action plan may be deemed by Company as a breach of this Agreement. If otherwise a corrective action plan is not provided by Supplier,
Consequential damages shall be assessed at up to [***] per calendar day. Consequential damages shall be deducted from future payments
to Supplier until remedied. If the company makes changes to the product or the schedule that disrupts continuous production and causes
production delays, Consequential damages shall be assessed at up to [***] per calendar day.

 

 

 

 

    	 	7	 

     

    

 

		10.10.	Entire Agreement. This Agreement, together with the Statement of Work, constitutes
the complete and exclusive understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior
or contemporaneous understandings and agreements, whether written or oral, with respect to the subject matter hereof. In the event of
a conflict, the terms and conditions of the Statement of Work will take precedence over the terms and conditions of this Agreement. Any
waiver, modification, or amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto.

 

		10.11.	Interpretation. The titles, captions and headings of this Agreement are included
for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated,
(a) all references herein to “sections” and “exhibits” will mean “sections” and “exhibits”
to this Agreement; (b) all references herein to “days” will refer to “calendar days”; and (c) all references to
“including” will mean “including without limitation.”

 

		10.12.	Counterparts; Signatures. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one
and the same agreement. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the
U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed
to have been duly and validly delivered and be valid and effective for all purposes.

 

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the Effective Date.

 

 

	COMPANY: Volcon Inc.	SUPPLIER: GLV Ventures
	 	 
	By: Jordan Davis	By: Gilbert Villarreal
	 	 
	Name: /s/ Jordan Davis               	Name: /s/ Gilbert Villareal              
	 	 
	Title: CEO	Title: CEO
	 	 
	Address: 2590 Oakmont Dr, STE 520,
Round Rock	Address: 417 E. 2nd St, Rochester MI 48307 78665

 

ATTACHMENTS

 

Exhibit A: Volcon Stag Production
Launch Proposal-SOW

 

Exhibit B: Preexisting Inventions

 

Exhibit C: RASIC

 

Exhibit D: Product Specifications

 

 

 

    	 	8	 

     

    

 

EXHIBIT A

VOLCON STAG PRODUCTION LAUNCH
SOW

 

		1.	PROJECT SUMMARY AND SCOPE

 

		1.1.	Summary. This plan details the Volcon Stag Production project, which commences
after the PVT build. GLV will support of Volcon, and their partners, as outlined in the RASIC included in this proposal.

 

		1.2.	Project Duration. The effective date of this Agreement and continuing through
Stag production life

 

		1.3.	Location of Service.

 

	 	Company Name:	GLV, LLC
	 	Contact Name:	[***]
	 	Address:	417 E. 2nd Street, Rochester, MI 48307
	 	Project Director:	[***]
	 	Other Company Personnel:	[***]
	 	Permitted Subcontractors:	As required (with NDA on file) 

 

		1.4.	Goals and Objectives.

 

		1.4.1.	Production Tooling Launch

 

		1.4.2.	Production Vehicle Launch

 

	2.	RASIC. See Exhibit C

 

	3.	SCOPE OF PROJECT

 

		3.1.	GM Battery Pack, [***]

 

		3.2.	Powertrain Control Solutions (PCS) – [***]

 

		3.3.	Chassis, Body Panels, Suspension, Remaining BOM Target = [***]

 

		3.4.	Manufacturing Cost = [***]

 

		3.5.	Sale Package to Volcon = [***]

 

		3.6.	Estimated Volumes:

 

		3.6.1.	MY 2024 (June 2023 to June 2024)[***]

 

		3.6.2.	MY 2025 (June 2024 to June 2025)[***]

 

		3.6.3.	MY 2026 (June 2025 to June 2026)[***]

 

 

 

 

    	 	9	 

     

    

 

		3.7.	Coordinate selection of components and hardware for the Stag, with Volcon

 

		3.8.	As required, includes PPAP Qualifications, GD&T, DFMEA, Analysis, and 2D Drawings
on all newly designed components

 

	4.	PROJECT SCHEDULE

 

		4.1.	Deliverables.

 

		4.1.1.	Production System Fill – [***]

 

		4.1.2.	Production Kickoff – [***]

 

		4.1.3.	Production Ramp (First Customer Shipments (“FCS”)) – [***], or
earlier as mutually agreed to by Company and Supplier

 

	5.	TERMS AND CONDITIONS

 

		5.1.	Product Conformance.

 

		5.1.1.	All product shall conform to product requirements including, but not limited to released drawings, FAI
samples, specifications, ECOs (Engineering Change Orders), PPAP Qualifications, approved deviations and any general quality agreements
or logistics/ purchasing agreements. Any product found to be in nonconformance shall not be eligible for payment until such nonconformance
is cured in agreement with the Company. Company has final approval on all design requirements, material selections, and approval of production
processes.

 

		5.2.	Product Cost.

 

		5.2.1.	Supplier agrees to make available at request all product related cost structures, bill of materials
and any costs associated with the product overall cost including direct labor, freights, tariffs, directly assigned to the product or
the procurement and manufacturing of the product and its subcomponents.

 

		5.2.2.	Supplier further agrees that cost savings realized through manufacturing improvements, design changes,
souring and negotiations shall be shared between the Parties equally.

 

		5.3.	Program Improvements.

 

		5.3.1.	Supplier agrees cooperate fully in conjunction with cost and quality initiatives, value analysis, and
other improvement projects at the supplier site or that of the sub suppliers. These activities will be coordinated closely with the Parties.

 

		5.4.	Product Changes.

 

		5.4.1.	All changes to released products will be handled via an ECO process or deviation process. All changes
must be documented, and written approval granted prior to implementing any changes to the product.

 

		5.4.2.	Company has the right to refuse deviation requests. Supplier is responsible for all costs associated
with the test, validation, and approval of deviation requests and assumes liability for any service and warranty costs associated with
deviations to the required specifications.

 

		5.4.3.	All ECOs on the behalf of the Company shall be evaluated in good faith and implemented immediately.
Supplier is required to evaluate and support all change orders. All costs impacts will be evaluated and agreed upon and as such Supplier
agrees to provide fully documented cost impacts. Costs associated with Company directed Supplier changes will be the liability of the
Company.

 

 

 

 

    	 	10	 

     

    

 

		5.5.	Product Cost.

 

		5.5.1.	Supplier agrees to maintain pricing per contract on a yearly basis and agrees to participate in good
faith to achieve further cost reductions below the maximum price set forth in the above contract. If no improvements are made or price
changes are agreed to, the pricing set forth from the previous year will remain as the prevailing agreed upon price.

 

		5.5.2.	Supplier agrees to participate in alternative sourcing, value analysis, and lean manufacturing activities
in conjunction with the Company and any cost savings identified shall be shared mutually between the Parties.

 

		5.6.	Sub Supplier Decisions.

 

		5.6.1.	Directed suppliers as identified by the Company will be the responsibility of the Company for cost,
quality, and timing. The Supplier may also offer alternative sub suppliers in which case they would manage and take responsibility for.
Any supplier that is defined as a directed supplier shall be documented in writing as such and acknowledged by both Parties.

 

		5.6.2.	Company reserves the right to select and make final determination on alternate sub suppliers based on
cost, quality, and delivery performance.

 

		5.7.	Tooling and Equipment.

 

		5.7.1.	Parties agree to transfer the legal
                                                                                                                                    ownership of initial and all replacement tooling paid for by Company upon completion of the PPAP qualification and final tooling
                                                                                                                                    payment made to Supplier. Company shall possess sole title to tooling. Supplier agrees to permanently identify tooling with Company
                                                                                                                                    name and permanent ID tag. Supplier agrees to provide on request updated list of all owned tooling including location, condition,
                                                                                                                                    and contact for any sub supplier in possession of tooling. 

 

		5.7.2.	Company has the right to inspect and verify any tooling, manufacturing, or assembly facility during
the normal business hours of the facility.

 

		5.7.3.	Supplier agrees to provide Company with capacity checks, tooling audits and all required technical documents
related to tooling to support the analysis of production or alternate supply decisions including technical documents and drawings.

 

		5.7.4.	All issues with tooling for capacity, defects, quality, or life shall be immediately communicated to
the Company that have impact or potential impact to quality or delivery of finished goods. Supplier agrees to maintain at their cost the
tooling ensuring the same level of performance and quality demonstrated during the PPAP qualification.

 

		5.7.5.	Tooling is for the exclusive use to manufacture products on behalf of Company and in no instance shall
be used for the production of product for any party other than the Company.

 

		5.7.6.	In the event of insolvency, breach, or termination of manufacturing agreements the Company will have
the exclusive right to purchase the specified tooling and production fixtures at the Supplier or their contracted sub suppliers that has
not already been paid for by the Company.

 

		5.7.7.	Tooling shall not be scrapped without the
                                                                                                                                    written permission of the Company.

 

		5.7.8.	Supplier
                                                                    is required to store tooling for a period of 1.5 years beyond the end of production at their expense and support the Company with
                                                                    mutually agreed terms and pricing for any small production runs to support the service and warranty period, or end of life
                                                                    purchases.

 

 

 

 

    	 	11	 

     

    

 

		5.7.9.	Company has the right to withdraw
                                                                    tooling with the termination of this agreement, Supplier inability to supply product, Supplier is delayed, cannot meet quality
                                                                    requirements or is unwilling to supply product at the agreed upon terms. Supplier agrees to make readily available tooling without
                                                                    damage to Company upon written request from Company. 

 

		5.8.	Warranty.

 

		5.8.1.	Suppliers guarantees that all supplied products will be free from defect in materials, workmanship and
will conform to all applicable product specifications and drawings.

 

		5.8.2.	The warranty period of the products shall be a [***] period commencing when the vehicle is registered
or is put into use at the time of retail sale, else [***] from the time of factory exit of Supplier at the FOB point of Texas.

 

		5.8.3.	Warranty shall cover all manufactured and purchased components contained within the purchased products
including vehicles as well as any service, warranty, or accessory components.

 

		5.8.4.	In the event of defective Product, the Supplier shall promptly sort, and repair or replace at Company’s
direction, the defective Product at the Supplier’s expense.

 

		5.8.5.	In the event the defective Product is discovered in the field, the supplier agrees to provide support
and necessary materials to promptly address any warranty, recall, or service type event with the Company’s dealer network and reimburse
the Company for the expenses incurred to resolve the event.

 

		5.8.6.	Company reserves the right to cancel or retain a partial payment in the event the defect is unable to
be resolved or the product fails.

 

		5.8.7.	Suppliers agrees to reimburse cost associated with warranty events including but not limited to, reasonable
and industry standard Dealer service fees, component costs, travel, labor, storage or other associated costs to repair or replace the
defective product. Supplier shall have the first right to perform such task.

 

		5.8.8.	Supplier agrees to reimburse all damages, losses and costs associated with recalls, field safety measures,
defect service events, or other product related events that call for repair or replacement of vehicles in service upon Supplier and Company
mutual concurrence

 

		5.8.9.	Supplier agrees to share any information of known risks without delay that could present a possible
safety or quality concern to the Product. Parties agree to work together to address and resolve such instances.

 

		5.9.	This agreement does not include the Supplier Agreement dated March 11, 2022, established and in place,
between GLV and Volcon for the development and launch of the Volcon Stag.

 

		6.	PRODUCT SPECIFICATIONS. Attached hereto as Exhibit D.

 

 

 

 

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EXHIBITS

[***]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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