Document:

Exhibit 10.34

 

 

THIS WARRANT AND THE SHARES ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS
OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 6.3 AND 6.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS
AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY, SUCH
OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

WARRANT TO PURCHASE STOCK

 

This WARRANT
TO PURCHASE STOCK (as amended and in effect from time to time, this “Warrant”) is issued as of the issue date set forth
on Schedule I hereto (the “Issue Date”) by the company set forth on Schedule I hereto (the “Company”)
to INNOVATION CREDIT FUND VIII-A, L.P., a Delaware limited partnership, in connection with that certain Mezzanine Loan and Security Agreement
of even date herewith between SVB INNOVATION CREDIT FUND VIII, L.P. and the Company, (as amended and/or modified and in effect from time
to time, the “Loan Agreement”). The parties agree as follows:

 

SCHEDULE I. WARRANT PROVISIONS.

 

	Warrant Section	Warrant Provision
	Recitals – “Issue Date”	August 2, 2021.
	Recitals – “Company”	Lantronix, Inc., a Delaware corporation.
	1.1 – “Class”	Common Stock, $0.0001 par value per share.
	1.1 – “Exercise Price”	$4.695 per Share.
	1.2 – “Shares”	63,898
	6.1(a) – “Expiration Date”	August 2, 2033.

 

SECTION 1.RIGHT TO PURCHASE SHARES.

 

1.1.             
Grant of Right. For good and valuable consideration, the Company hereby grants to INNOVATION CREDIT FUND VIII-A, L.P., a
Delaware limited partnership (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued
upon exercise hereof, “Holder”) the right, and Holder is entitled, to purchase from the Company up to the number of
fully paid and non-assessable shares (as determined pursuant to Section 1.2 below) of the class set forth on Schedule I hereto (the “Class”),
at a purchase price per Share set forth on Schedule I hereto (the “Exercise Price”), subject to the provisions and
upon the terms and conditions set forth in this Warrant.

 

1.2.             
Number of Shares. This Warrant shall be exercisable for the number of shares of the Class as set forth on Schedule I hereto
as may be adjusted from time to time in accordance with the provisions of this Warrant, the “Shares”).

 

1.3.             
Intentionally Omitted.

 

1.4.             
Intentionally Omitted.

 

SECTION 2.EXERCISE.

 

2.1.             
Method of Exercise. Holder may exercise this Warrant in whole or in part at any time and from time to time prior to the
expiration or earlier termination of this Warrant, by delivering to the Company the original of this Warrant together with a duly executed
Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant
to a cashless exercise set forth in Section 2.2 below, a check, wire transfer of same-day funds (to an account designated by the Company),
or other form of payment acceptable to the Company for the aggregate Exercise Price for the Shares being purchased. Notwithstanding any
contrary provision herein, to the extent that the original of this Warrant is an electronic original, in no event shall an original ink-signed
paper copy of this Warrant be required for any exercise of a Holder’s rights hereunder, nor shall this Warrant or any physical
copy hereof be required to be physically surrendered at the time of any exercise hereof.

 

 

    	 	1	 

     

    

 

2.2.             
Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Exercise Price in the manner specified
in Section 2.1 above, Holder may elect to surrender to the Company Shares having an aggregate value equal to the aggregate Exercise Price.
If Holder makes such election, the Company shall issue to Holder such number of fully paid and non-assessable Shares determined by the
following formula:

 

X = Y(A-B)/A

 

where:

 

X =       the number of
Shares to be issued to Holder;

 

Y =the number of Shares with
respect to which this Warrant is being exercised (inclusive of the Sharessurrendered to the Company in payment of the aggregate Exercise
Price);

 

A =       the fair market
value (as determined pursuant to Section 2.3 below) of one Share; and

 

B =       the Exercise
Price.

 

2.3.             
Fair Market Value. If shares of the Company’s common stock are then traded or quoted on a nationally recognized securities
exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock,
the fair market value of a Share shall be the closing price or last sale price of a share of the Company’s common stock reported
for the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company.
If shares of the Company’s common stock are not then traded in a Trading Market, the Board of Directors of the Company shall determine
the fair market value of a Share of the Class in its reasonable good faith judgment.

 

2.4.             
Delivery of Certificate and New Warrant. Within a reasonable time after Holder exercises this Warrant in the manner set
forth in Sections 2.1 or 2.2 above, the Company shall deliver to Holder a certificate (or, in the case of uncertificated securities, provide
notice of book entry) representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised and
has not expired, a new warrant of like tenor representing the Shares not so acquired (or surrendered in payment of the aggregate Exercise
Price).

 

2.5.             
Replacement of Warrant.

 

(a)                
Paper Original Warrant. To the extent that the original of this Warrant is a paper original, on receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction,
on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation,
on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder,
in lieu of this Warrant, a new warrant of like tenor and amount.

 

(b)                
Electronic Original Warrant. To the extent that the original of this Warrant is an electronic original, if at any time this
Warrant is rejected by any person (including, but not limited to, paying or escrow agents) or any such person fails to comply with the
terms of this Warrant based on this Warrant being presented to such person as an electronic record or a printout hereof, or any signature
hereto being in electronic form, the Company shall, promptly upon Holder’s request and without indemnity, execute and deliver to
Holder, in lieu of electronic original versions of this Warrant, a new warrant of like tenor and amount in paper form with original ink
signatures.

 

 

    	 	2	 

     

    

 

2.6.             
Treatment of Warrant Upon Acquisition of Company.

 

(a)                
Acquisition. “Acquisition” means any transaction or series of related transactions involving: (i) the
sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation
of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s
domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior
to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s
or the ultimate parent company of the surviving entity if the surviving entity if not the ultimate parent company) outstanding voting
power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders of the Company
of shares representing at least a majority of the Company’s then-total outstanding combined voting power. For the avoidance of doubt,
“Acquisition” shall not include any sale and issuance by the Company of shares of its capital stock or of securities or instruments
exercisable for or convertible into, or otherwise representing the right to acquire, shares of its capital stock to one or more investors
for cash in a transaction or series of related transactions the primary purpose of which is a bona fide equity financing of the Company.

 

(b)                
Treatment of Warrant in Cash/Public Acquisition. In the event of an Acquisition in which the consideration to be received
by the holders of the outstanding shares of the Class (in their capacity as such) consists solely of cash, solely of Marketable Securities
(as hereinafter defined) or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the
fair market value of one Share as determined in accordance with Section 2.3 above would be greater than the Exercise Price in effect as
of immediately prior to the closing of such Cash/Public Acquisition, and Holder has not previously exercised this Warrant in full, then,
in lieu of Holder’s exercise of the unexercised portion of this Warrant, this Warrant shall, as of immediately prior to such closing
(but subject to the occurrence thereof) automatically cease to represent the right to purchase Shares and shall, from and after such closing,
represent solely the right to receive the aggregate consideration that would have been payable in such Acquisition on and in respect of
all Shares for which this Warrant was exercisable as of immediately prior to the closing thereof, net of the aggregate Exercise Price
therefor, as if such Shares had been issued and outstanding to Holder as of immediately prior to such closing, as and when such consideration
is paid to the holders of the outstanding shares of the Class. In the event of a Cash/Public Acquisition in which the fair market value
of one Share as determined in accordance with Section 2.3 above would be equal to or less than the Exercise Price in effect as of immediately
prior to the closing of such Cash/Public Acquisition, then this Warrant will automatically and without further action of any party terminate
as of immediately prior to such closing.

 

(c)                
Treatment of Warrant in non-Cash/Public Acquisition. Upon the closing of any Acquisition other than a Cash/Public Acquisition,
the acquiring, surviving or successor entity shall assume this Warrant and the Company’s obligations hereunder, and this Warrant
shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise
of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, at an aggregate
Exercise Price equal to the aggregate Exercise Price in effect as of immediately prior to such closing, all subject to further adjustment
from time to time thereafter in accordance with the provisions of this Warrant.

 

(d)                
Marketable Securities. “Marketable Securities” means securities meeting all of the following requirements
(determined as of immediately prior to the closing of the Acquisition): (i) the issuer thereof is then subject to the reporting requirements
of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then
current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares
or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant
on or prior to the closing thereof is then traded in a Trading Market, and (iii) following the closing of such Acquisition, Holder would
not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by Holder in
such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition, except to the extent that
any such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six
(6) months from the closing of such Acquisition. Notwithstanding the foregoing provisions of this Section 2.6(d), securities held in escrow
or subject to holdback to cover indemnification-related claims shall be deemed to be Marketable Securities if they would otherwise be
Marketable Securities but for the fact that they are held in escrow or subject to holdback to cover indemnification-related claims.

 

 

    	 	3	 

     

    

 

SECTION 3.CERTAIN ADJUSTMENTS TO
THE SHARES, CLASS AND EXERCISE PRICE.

 

3.1.             
Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the
Class payable in additional shares of the Class (including fractional shares) or other securities or property (other than cash), then
upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and
kind of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or
distribution occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number
of shares, the number of Shares purchasable hereunder shall be proportionately increased, even if such number would include fractional
shares, and the Exercise Price shall be proportionately decreased. If the outstanding shares of the Class are combined or consolidated,
by reclassification or otherwise, into a lesser number of shares, the Exercise Price shall be proportionately increased and the number
of Shares shall be proportionately decreased, even if such number would include fractional shares.

 

3.2.             
Reclassification, Exchange, Combination or Substitution. Upon any event whereby all of the outstanding shares of the Class
are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series,
then from and after the consummation of such event, “Class” shall mean such securities and this Warrant will be exercisable
for the number of such securities that Holder would have received had the Shares been outstanding on and as of the consummation of such
event, at an aggregate Exercise Price equal to the aggregate Exercise Price in effect as of immediately prior to such event, all subject
to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 3.2
shall similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events.

 

3.3.             
Adjustment to Exercise Price on Cash Dividend. In the event that the Company at any time or from time to time prior to the
exercise in full of this Warrant pays any cash dividend on the outstanding shares of the Class or makes any cash distribution on or in
respect of all outstanding shares of the Class (other than a distribution of cash proceeds received by the Company in connection with
an Acquisition described in Section 2.62.6(a)(i) above), then on and as of the date of each such dividend payment and/or distribution,
the Exercise Price shall be reduced by an amount equal to the amount paid or distributed upon or in respect of each outstanding share
of the Class; provided that in no event shall the Exercise Price be reduced below the then-par value, if any, of a share of the Class.

 

3.4.             
No Fractional Share. No fractional Share shall be issued upon exercise of this Warrant, and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of this Warrant, the Company
shall eliminate such fractional Share interest by paying Holder in cash an amount equal to (a) such fractional interest, multiplied by
(b)(i) the fair market value (as determined in accordance with Section 2.3 above) of a full Share, less (ii) the then-effective Exercise
Price (the “Fractional Share Value”), unless Holder otherwise elects, in its sole discretion, to waive such payment.
Notwithstanding any contrary provision herein, if this Warrant becomes exercisable for a fractional Share interest at any time or from
time to time prior to the exercise in full of this Warrant, and the Company eliminates such fractional Share interest prior to any exercise
of this Warrant, then the then-effective Exercise Price shall be reduced by an amount equal to the Fractional Share Value, unless Holder
otherwise elects, in its sole discretion, to waive such reduction.

 

3.5.             
Certificate as to Adjustments. Within a reasonable time following each adjustment of the Exercise Price, Class and/or number
of Shares pursuant to the terms of this Warrant, the Company, at its expense, shall deliver a certificate of its Chief Financial Officer
or other authorized officer to Holder setting forth the adjustments to the Exercise Price, Class and/or number of Shares and the facts
upon which such adjustments are based. The Company shall, at any time and from time to time within a reasonable time following Holder’s
written request and at the Company’s expense, furnish Holder with a certificate of its Chief Financial Officer or other authorized
officer setting forth the then-current Exercise Price, Class and number of Shares and the computations or other determinations thereof.

 

 

    	 	4	 

     

    

 

SECTION 4.REPRESENTATIONS AND COVENANTS
OF THE COMPANY.

 

4.1.             
Representations and Warranties. The Company represents and warrants to, and agrees with, Holder as follows:

 

 

(a)                
Intentionally Omitted.

 

(b)                
Intentionally Omitted.

 

(c)                
All Shares which may be issued upon the exercise of this Warrant, shall, upon issuance, be duly authorized, validly issued, fully
paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under the Company’s
Certificate of Incorporation or Bylaws, each as amended and in effect from time to time (the “Charter Documents”),
any stockholder agreement (to the extent Holder is then a party thereto or otherwise subject thereto in accordance with the provisions
of Section 5.3 below) or applicable federal and state securities laws. The Company covenants that it shall at all times cause to be reserved
and kept available out of its authorized and unissued capital stock such number of shares of the Class and other securities as will be
sufficient to permit the exercise in full of this Warrant.

 

(d)                
Intentionally Omitted.

 

4.2.             
Notice of Certain Events. If the Company proposes at any time to:

 

(a)                
declare any dividend or distribution upon the outstanding shares of the Class, whether in cash, stock or other securities or property
and whether or not a regular cash dividend;

 

(b)                
effectanyredemption,reclassification,exchange,combination,substitution, reorganization or recapitalization
of the outstanding shares of the Class on a pro rata basis; or

 

(c)                
effect an Acquisition, or to liquidate, dissolve or wind up the Company;

 

then, in connection with each such event, the Company shall
give Holder (pursuant to Section 6.5 below):

 

(1)                
in the case of the matters referred to in (a) above, at least seven (7) Business Days prior written notice of the earlier to occur
of the effective date thereof or the date on which a record will be taken for such dividend, distribution, or subscription rights (and
specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote,
if any;

 

(2)                
in the case of the matters referred to in (b) and (c) above, at least seven (7) Business Days prior written notice of the date
when the same shall take effect (and specifying, in the Company’s good faith estimate, the date on which the holders of outstanding
shares of the Class will be entitled to exchange their shares for the securities or other property deliverable upon the occurrence of
such event and such reasonable information as Holder may reasonably require regarding the treatment of this Warrant in connection with
such event giving rise to the notice); and

 

4.3.             
Certain Company Information. The Company will provide such information requested by Holder from time to time, within a reasonable
time following each such request, that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting
requirements.

 

 

 

    	 	5	 

     

    

 

SECTION 5.REPRESENTATIONS AND
COVENANTS OF HOLDER.

 

Holder represents and warrants to, and agrees with, the Company
as follows:

 

5.1.             
Investment Representations.

 

(a)                
Purchase for Own Account. This Warrant and the Shares to be acquired upon exercise hereof are being acquired for investment
for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of
the Act. Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

(b)                
Disclosure of Information. Holder is aware of the Company’s business affairs and financial condition and has received
or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect
to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions of and receive
answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain
additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to Holder or to which Holder has access.

 

(c)                
Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial
risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the
economic risk of such Holder’s investment in this Warrant and its underlying securities for an indefinite period of time, and has
such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment
in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain
of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business
acumen and financial circumstances of such persons.

 

(d)                
Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated
under the Act.

 

(e)                
The Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under
the Act or registered or qualified under the securities laws of any state, and are issued in reliance upon specific exemptions therefrom,
which exemptions depend upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder
understands that the Company is under no obligation to so register or qualify this Warrant, the Shares or such other securities. Holder
understands that this Warrant and the Shares issued upon any exercise hereof are “restricted securities” under applicable
federal and state securities laws and must be held indefinitely unless subsequently registered under the Act and registered or qualified
under applicable state securities laws, or unless exemptions from such registration and qualification are otherwise available. Holder
is aware of the provisions of Rule 144 promulgated under the Act.

 

5.2.             
No Stockholder Rights. Without limiting any provision of this Warrant, Holder agrees that as a Holder of this Warrant it
will not have any rights (including, but not limited to, voting rights) as a stockholder of the Company with respect to the Shares issuable
hereunder unless and until the exercise of this Warrant and then only with respect to the Shares issued on such exercise.

 

5.3.             
Intentionally Omitted.

 

5.4.             
Intentionally Omitted.

 

5.5.             
Confidential Information. Holder agrees to treat and hold all information provided by the Company pursuant to this Warrant
in confidence in accordance with the applicable provisions of the Loan Agreement (regardless of whether the Loan Agreement shall then
be in effect).

 

 

    	 	6	 

     

    

 

SECTION 6.MISCELLANEOUS.

 

6.1.             
Term; Automatic Cashless Exercise Upon Expiration.

 

(a)                
Term. Subject to the provisions of Section 2.6 above, this Warrant is exercisable in whole or in part at any time and from
time to time on or before 6:00 PM, Pacific time, on the expiration date set forth on Schedule I hereto (the “Expiration Date”)
and shall be void thereafter; provided that if the Company does not deliver to Holder written confirmation of the fair market value of
a Share pursuant to Section 6.1(b) below, then the Expiration Date shall automatically be extended until the earlier to occur of (i) such
date as the Company delivers such written confirmation and (ii) one (1) year after the Expiration Date.

 

(b)                
Automatic Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share
as determined in accordance with Section 2.3 above is greater than the Exercise Price in effect on such date, then this Warrant shall
automatically be deemed on and as of such date to be exercised pursuant to Section 2.2 above as to all Shares for which it shall not previously
have been exercised, and the Company shall, within a reasonable time following Holder’s written request, deliver a certificate (or,
in the case of uncertificated securities, provide notice of book entry) representing the Shares issued to Holder upon such exercise. If
shares of the Company’s common stock are not then traded in a Trading Market, the Company shall deliver to Holder, prior to the
Expiration Date, written confirmation of the fair market value of a Share (as determined pursuant to Section 2.3 above) to be used in
determining whether this Warrant shall automatically exercise on the Expiration Date pursuant to this Section 6.1(b).

 

6.2.             
Legends. Each certificate or notice of book entry evidencing Shares shall be imprinted with a legend in substantially the
following form (together with such additional legends as may be required by the Charter Documents or under any stockholder agreement (to
the extent Holder is then a party thereto or otherwise subject thereto in accordance with the provisions of Section 5.3 above)):

 

THE SHARES EVIDENCED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE
AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO INNOVATION CREDIT FUND VIII-A, L.P. DATED AUGUST
2, 2021, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION
OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

6.3.             
Compliance with Securities Laws on Transfer. This Warrant and the Shares issued upon exercise hereof may not be transferred
or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee
(including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company,
as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to any
affiliate of Holder; provided that any such transferee is an “accredited investor” as defined in Regulation D promulgated
under the Act.

 

6.4.             
Transfer Procedure. Subject to the provisions of Section 6.3 and upon providing the Company with written notice, Holder
and any subsequent Holder may transfer all or part of this Warrant or the Shares issued upon exercise of this Warrant to any transferee;
provided that in connection with any such transfer, Holder or any subsequent Holder will give the Company notice of the portion of the
Warrant and/or Shares being transferred with the name, address and taxpayer identification number of the transferee, and Holder will surrender
this Warrant, or the certificates or other evidence of such Shares or other securities, to the Company for reissuance to the transferee(s)
(and to Holder if applicable); and provided further, that any such subsequent transferee shall make substantially the representations
set forth in Section 5.1 above and shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant;
and provided further, that the transfer of any Shares issued on exercise hereof shall be subject to the provisions of the stockholder
agreements to the extent Holder is then a party thereto or otherwise subject thereto in accordance with the provisions of Section 5.3
above.

 

 

    	 	7	 

     

    

 

6.5.             
Notices. All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered
and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified
mail, postage prepaid, (iii) upon actual receipt if given by electronic mail and such receipt is confirmed in writing by the recipient,
or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such
address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to
time in accordance with the provisions of this Section 6.5. All notices to Holder shall be addressed as follows until the Company receives
notice of a change of address in connection with a transfer or otherwise:

 

Innovation Credit Fund VIII-A, L.P.

c/o SVB Capital

2770 Sand Hill Road

Menlo Park, CA 94025

Attn: SVB Capital Finance and Operations

Email: svbcapitalcredit@svbank.com; and SVBCapCreditFinance@svb.com

 

All notices to the Company shall be addressed
as follows until Holder receives notice of a change in address:

 

Lantronix, Inc. 

7535 Irvine Center Drive, Suite 100

Irvine, CA 92618

Attn: Jeremy Whitaker, CFO

Email: jeremy.whitaker@lantronix.com

Website URL: www.lantronix.com

 

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

 

Lantronix, Inc.

7535 Irvine Center Drive, Suite 100

Irvine, CA 92618

Attn: David Goren, Vice President Email: legal@lantronix.com

 

6.6.             
Amendment and Waiver. Notwithstanding any contrary provision herein or in the Loan Agreement, this Warrant may be amended
and any provision hereof waived (either generally or in a particular instance and either retroactively or prospectively) only by an instrument
in writing signed by Holder and any party against which enforcement of such amendment or waiver is sought.

 

6.7.             
Counterparts; Electronic Signatures; Status as Certificated Security. This Warrant may be executed by one or more of the
parties hereto in any number of separate counterparts, all of which together shall constitute one and the same instrument. The Company,
Holder and any other party hereto may execute this Warrant by electronic means and each party hereto recognizes and accepts the use of
electronic signatures, including any Electronic Signature as defined in the Electronic Transactions Law (2003 Revision) of the Cayman
Islands (the “Cayman Islands Electronic Signature Law”), and the keeping of records in electronic form, including any
Electronic Record, as defined in Cayman Islands Electronic Signature Law, by any other party hereto in connection with the execution and
storage hereof. To the extent that this Warrant or any agreement subject to the terms hereof or any amendment hereto is executed, recorded
or delivered electronically, it shall be binding to the same extent as though it had been executed on paper with an original ink signature,
as provided under applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the
Cayman Islands Electronic Signature Law; provided that Sections 8 and 19(3) of the Cayman Islands Electronic Signature Law shall not apply
to this Warrant or the execution or delivery hereof. The fact that this Warrant is executed, signed, stored or delivered electronically
shall not prevent the transfer by any Holder of this Warrant pursuant to Section 6.4 or the enforcement of the terms hereof. To the extent
that the original of this Warrant is an electronic original, this Warrant, and any copies hereof, shall NOT be deemed to be a “certificated
security” within the meaning of Section 8102(a)(4) of the California Commercial Code. Physical possession of the original of this
Warrant or any paper copy thereof shall confer no special status to the bearer thereof.

 

 

    	 	8	 

     

    

 

6.8.             
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning
of any provision of this Warrant.

 

6.9.             
Business Days. “Business Day” means any day that is not a Saturday, Sunday or a day on which banks in
California are closed.

 

SECTION 7.GOVERNING LAW, VENUE
AND JURY TRIAL WAIVER; JUDICIAL REFERENCE.

 

7.1.             
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California, without
giving effect to its principles regarding conflicts of law.

 

7.2.             
Jurisdiction and Venue. The Company and Holder each irrevocably and unconditionally submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Warrant shall be deemed to
operate to preclude Holder from bringing suit or taking other legal action in any other jurisdiction to enforce a judgment or other court
order in favor of Holder. Each of the Company and Holder expressly, irrevocably and unconditionally submits and consents in advance to
such jurisdiction in any action or suit commenced in any such court, and each of the Company and Holder hereby irrevocably and unconditionally
waives, to the fullest extent permitted by applicable law, any objection that it may have based upon lack of personal jurisdiction, improper
venue, or forum non conveniens and hereby irrevocably and unconditionally consents to the granting of such legal or equitable relief as
is deemed appropriate by such court. Each of the Company and Holder hereby waives personal service of the summons, complaints, and other
process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered
or certified mail addressed to the Company or Holder, as applicable, in accordance with Section 6.5 of this Warrant and that service so
made shall be deemed completed upon the earlier to occur of the Company’s actual receipt thereof of three (3) days after deposit
in the U.S. mails, proper postage prepaid.

 

7.3.             
Jury Trial Waiver. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY AND HOLDER EACH WAIVES ITS RIGHT TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS WARRANT, THE LOAN AGREEMENT OR ANY CONTEMPLATED TRANSACTION,
INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES’ AGREEMENT TO
THIS WARRANT. EACH PARTY HERETO HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

7.4.             
Judicial Reference. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT
TO A TRIAL BY JURY, if the waiver of the right

to a trial by jury in Section 7.3
above is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any
time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding
Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638
(or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting
without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings
shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure Sections 638 through 645.1,
inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary
restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the
public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires
to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such
party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be
conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties
shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery
applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable
to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall
have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon
pursuant to California Code of Civil Procedure Section 644(a). Nothing in this Section 7.4 shall limit the right of any party at any time
to exercise self-help remedies or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability,
interpretation, and enforceability of this Section 7.4.

 

7.5.             
Survival. This Section 7 shall survive the termination of this Warrant.

 

[Signature page follows]

 

 

    	 	9	 

     

    

 

 

IN WITNESS WHEREOF, the
parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of the Issue Date
written above.

 

COMPANY:

 

LANTRONIX, INC.

 

 

By: /s/ Jeremy Whitaker                               
 

Name: Jeremy Whitaker

Title: Chief Financial Officer

 

HOLDER:

 

INNOVATION CREDIT FUND VIII-A, L.P.

By: SVB Innovation Credit Partners VIII-A, LLC,
a Delaware limited liability company, its General Partner

 

By: /s/ Andrew Olson                                       

Name: Andrew Olson 

Title: Chief Financial Officer

 

 

    	 	10	 

     

    

 

APPENDIX 1

 

Form of Notice of Exercise of Warrant

 

1.The undersigned Holder hereby exercises its right to
purchase ___________ shares of the Common Stock of _________________ (the “Company”) in accordance with the attached
Warrant to Purchase Stock, and tenders payment of the aggregate Exercise Price for such shares as follows:

 

	
    [

     

    [
	
    ]

     

    ]
	
    Check in the amount of $__________ payable to order
of the Company enclosed herewith

     

    Wire transfer of immediately available funds to the Company’s
    account

	 	 	 
	[	]	
    Cashless exercise pursuant to Section 2.2 of the Warrant,
resulting in the issuance of _________ shares of the Common Stock of the Company

	 	 	 
	[	]	Other [Describe] _____________________________

 

2.
  Please issue a certificate or certificates (or evidence of book entry) representing the Shares
in the name specified below:

 

 

 

 

Holder’s Name

 

 

 

 

 

 

 

(Address)

 

3.       By
its execution below and for the benefit of the Company, Holder hereby makes each of the representations and warranties set forth in Section
5.1 of the Warrant To Purchase Stock as of the date hereof.

 

 

HOLDER

 

_________________________________________________

 

By: ______________________________________________

Name: ____________________________________________

Title: _____________________________________________

(Date):
____________________________________________

 

 

 

 

 

Appendix 1EX-10.3

 Exhibit 10.3 
  

 
 NON-DISCLOSURE AGREEMENT 

This NON-DISCLOSURE AGREEMENT (this “Agreement”) is made and entered into as of
[DATE] (the “Effective Date”), by and between Romeo Power, Inc., a Delaware corporation (“Romeo”), and Nikola Corporation, a Delaware Corporation (the “Counterparty”). Romeo and the Counterparty
agree to the terms set forth below. 
 1. Purpose. Romeo and Counterparty wish to explore a potential strategic and/or commercial
business transaction between the parties (a “Potential Transaction”) and, in connection therewith, each party (the “Discloser”) may disclose or make available to the other party (the “Recipient”)
certain Confidential Information (as defined below) related to the Discloser. Each party is willing to furnish and/or accept such information pursuant to the terms of this Agreement. 

2. Definitions. As used in this Agreement: 

(a) A party’s “Associates” shall include such party’s affiliates, and each of their respective officers, directors,
managers, employees, agents and representatives (including, without limitation, consultants, accountants, potential debt financing sources, attorneys and financial advisors), provided that, with respect to the Recipient, the term
“Associates” shall not include the Recipient’s affiliates unless such affiliates receive Confidential Information from or on behalf of the Recipient or otherwise in connection with the Recipient’s consideration of the Potential
Transaction. 
 (b) “Confidential Information” means: 

(i) All non-public information, in whatever form, disclosed in connection with the Potential
Transaction; and 
 (ii) such portions of any memorandum, analysis, compilation, summary, interpretation, study, report or other document,
record or material that is or has been prepared by or for the Recipient or any of its Associates and that contains, reflects, interprets or is based directly or indirectly upon any information of the type referred to in
Section 2(b)(i) (collectively, “Analyses”). 
 Notwithstanding the foregoing, Confidential Information does not
include information that: (A) was in the possession of the Recipient or its Associates at the time of disclosure; (B) is disclosed or otherwise becomes available to the Recipient or any of its Associates from a source other than the
Discloser or its Associates, provided that the source of such information was not known by the Recipient to be bound by a confidentiality agreement between the Discloser and such source prohibiting the disclosure of such information or bound
by a legal, contractual or fiduciary obligation owed to the Discloser prohibiting the disclosure of such information; (C) prior to or after the time of disclosure, becomes generally available to the public, in each case other than as a result
of any inaction or action of the Recipient or any of its Associates in breach of the terms hereof; or (D) is independently developed by or on behalf of the Recipient without use of or reference to any Confidential Information. 

 

 Additionally, the parties hereto acknowledge that Romeo and Counterparty have entered into, and may in the
future enter into, commercial agreements (including, without limitation, agreements relating to the development and supply of battery packs and related services) (“Commercial Agreements”) under which the parties have exchanged and
may in the future exchange confidential and trade secret information subject to terms that permit the use of that information for purposes relating to the subject matter of the applicable Commercial Agreement. Information disclosed pursuant and
subject to a Commercial Agreement shall not be deemed to be Confidential Information hereunder, and nothing in this Agreement shall restrict the use or disclosure or require the return of, or otherwise apply to, any such information. Non-public information shall be deemed to have been disclosed in connection with the Potential Transaction and to be Confidential Information subject to this Agreement if, at the time of disclosure, Discloser
notifies Recipient in writing that such information is disclosed pursuant to this Agreement (including, without limitation, by email or letter identifying the information that is disclosed and stating that it is disclosed pursuant to this Agreement
or by a stamp or other marking affixed to such information that states that it is disclosed pursuant to this Agreement, in each case identifying this Agreement by subject matter and date).1 

3. Restrictions on Disclosures and Use of Confidential Information. 

(a) Recipient, on behalf of itself and its Associates, covenants and agrees not to disclose any of the Discloser’s Confidential
Information publicly or to any third party, to not use such Confidential Information only to evaluate, negotiate and consummate a Potential Transaction and for no unauthorized purpose, and to take reasonable care to prevent the unauthorized use or
disclosure of the Confidential Information. Neither party shall disclose the existence or terms of this Agreement, or that the parties are considering a Potential Transaction, without the other party’s prior written consent, provided
that the foregoing restriction shall not restrict either party from making any public disclosures that it concludes, based on advice of legal counsel and, if reasonably practicable, after consulting with the other party and redacting all
confidential and competitive information to the extent permitted, is necessary to comply with securities laws or stock exchange rules applicable to the party concluding such disclosure is required. 

(b) Counterparty agrees that neither it nor any of its Associates shall, except as directed in writing (which may include electronic mail) by
Romeo or any of its Associates, contact any employee of Romeo concerning, or in furtherance of the Counterparty’s consideration, negotiation or consummation of, a Potential Transaction. 

(c) Subject to Section 4, the Recipient agrees that it may disclose and make available the Confidential Information
only to its Associates who require such material for the purpose of assisting the Recipient in evaluating, negotiating and consummating a Potential Transaction, and neither the Recipient nor any of its Associates shall use any Confidential
Information for its own use or for any purpose except for purposes related to evaluating, negotiating and consummating a Potential Transaction. The Recipient has informed or will inform those of its Associates to whom Confidential Information is
disclosed or who have access to Confidential Information of the existence of this Agreement and the Recipient’s obligations under this Agreement with respect to Confidential Information. A breach of the terms of this Agreement by any Associate
of the Recipient shall be deemed a breach of this Agreement by the Recipient. The Recipient agrees that 
  

	1 	 Note to Draft: Given the existing NDAs between the parties, we thought it would be helpful to include
this language. 

  
 2 

Confidential Mutual Non-Disclosure Agreement 

 
it will take, and require that its Associates take, all reasonable measures to protect the secrecy of and avoid disclosure or use of Confidential Information in order to prevent it from falling
into the public domain or the possession of any person other than the Recipient or its Associates, which measures shall include the same degree of care that the Recipient utilizes to protect its own Confidential Information of a similar nature, but
in no event less than a reasonable degree of care. 
 (d) The Recipient acknowledges and agrees that neither the Discloser nor any of its
Associates makes any express or implied representation or warranty as to the accuracy or completeness of the Confidential Information, or that it has provided the Recipient with all of the information the Recipient requires or has requested. Except
as may be provided in a subsequent definitive written agreement negotiated, executed and delivered by the parties with respect to a Potential Transaction (a “Definitive Agreement”), if any, the Recipient agrees that neither the
Discloser nor its Associates shall have any liability to the Recipient or any of its Associates resulting from the use of the Confidential Information by the Recipient or its Associates or their reliance thereon. Unless and until the parties enter
into a Definitive Agreement, this Agreement shall not obligate either party to negotiate or enter into any business relationship or contract with the other party. The Discloser reserves the right, in its sole discretion to (i) conduct any
process it deems appropriate with respect to any Potential Transaction involving the Discloser, and to modify any procedures relating to any such process without giving notice to the Recipient or any other person, (ii) reject any proposal made
by the Recipient with respect to a Potential Transaction between the parties and (iii) terminate discussions and negotiations with the Recipient regarding a Potential Transaction at any time. 

(e) The Discloser acknowledges and agrees that nothing herein shall be construed to limit or prevent in any manner (i) the operation by
the Recipient or any of its affiliates of any current or prospective lines of business, even such lines of business engaged in or proposed to be engaged in by the Discloser or its affiliates, (ii) the investment or consideration for investment
by the Recipient or any of its affiliates in any entity, even those entities engaged in the same or related businesses as those engaged in or proposed to be engaged in by the Discloser or its affiliates, or (iii) the participation in any
capacity by the Recipient or any of its affiliates in the operation of any existing or future business by virtue of having reviewed the Confidential Information, in each case so long as the Recipient does not disclose or use the Confidential
Information except as expressly permitted herein. 
 (f) Notwithstanding anything to the contrary set forth herein, Counterparty agrees that
it will not disclose any Confidential Information with the intent of engaging or potentially engaging, any financial or legal advisor without the prior written consent of Romeo. In the event that Romeo provides such consent with respect to a
potential financial or legal advisor, such potential financial or legal advisor shall thereafter be deemed to be an Associate of Counterparty for all purposes of this Agreement. You also agree that you will not disclose any Confidential Information
to any potential equity or debt financing source without the prior written consent of Romeo. In the event that Romeo provides such consent with respect to a potential equity or debt financing source, such potential financing source shall thereafter
be deemed to be an Associate of Counterparty for all purposes of this Agreement. 

  
 3 

Confidential Mutual Non-Disclosure Agreement 

 4. Obligations. 

(a) This Agreement does not create an obligation to disclose Confidential Information. The Disclosing Party warrants that it has the right to
disclose the Confidential Information under this Agreement. No other warranties are made whether express, implied, or statutory. 
 (b) The
exchange of information pursuant to this Agreement is subject to all applicable laws and regulations including all export laws and regulations of the jurisdiction(s) in which the transfer of Confidential Information occurs. If applicable, each Party
shall be responsible for obtaining any necessary export licenses or other governmental authorizations for its disclosure of any Confidential Information governed by this Agreement. 

5. Return or Destruction of Materials.2 Promptly following the Recipient’s
receipt of a written request by the Discloser, the Recipient shall, and shall direct its Associates to, at the Recipient’s option, deliver to the Discloser or destroy (and delete if in electronic form) any written Confidential Information and
all copies or modifications thereof, as well as any tangible material containing any Confidential Information, except for that portion of the Confidential Information which consists of Analyses prepared by or for the Recipient or its Associates.
That portion of the Confidential Information or any modification thereof which consists of Analyses prepared by or for the Recipient or its Associates and that is not returned to the Discloser shall be destroyed (or deleted if in electronic form).
Promptly thereafter, a duly authorized officer of the Recipient shall confirm in writing to the Discloser that all written Confidential Information (including any Analyses) not delivered to the Discloser has been destroyed. Notwithstanding the
foregoing, (a) copies of Confidential Information may be retained by (i) the Recipient’s internal legal counsel or compliance staff solely for the purposes of complying with applicable legal or regulatory requirements, or in defense
of any action, suit or proceeding against the Recipient, and (ii) the Recipient’s applicable third-party Associates solely for purposes of complying with applicable legal or regulatory requirements or professional standards, and
(b) nothing in this Agreement shall require the alteration, modification, deletion or destruction of back-up tapes or other comparable electronic records made in the ordinary course of business pursuant
to the Recipient’s or its Associates’ respective electronic information systems. Notwithstanding the return, destruction or deletion of Confidential Information pursuant to this Section 5 by the Recipient and its
Associates, the Recipient and its Associates shall continue to be obligated to maintain the confidentiality of, and not use for any purpose not described in this Section 5, any Confidential Information retained or archived
by the Recipient and its Associates. 
 6. No License Granted; Privileged Information. Nothing in this Agreement is intended to grant
any rights to the Recipient under any patent, copyright, trade secret or other intellectual property right, nor shall this Agreement grant the Recipient any rights in or to the Confidential Information, except the limited right to review such
Confidential Information solely for the purposes of evaluating, negotiating and consummating a Potential Transaction between the parties. To the extent that any Confidential Information includes materials or other information that may be subject to
the attorney-client privilege, work-product doctrine or any other applicable privilege or doctrine concerning any Confidential Information or any pending, threatened or prospective 

 

	2 	 Note to Draft: We view this obligation as being entirely customary for the nature of potential
transactions that Romeo and Nikola will discuss and the materials that will be shared in connection therewith. Additionally, we included carve-outs (fourth sentence) that are meant to address the issues that parties generally identify with
return/destroy obligations, but please let us know if you have other concerns. 

  
 4 

Confidential Mutual Non-Disclosure Agreement 

 
action, suit, proceeding, investigation, arbitration or dispute, it is acknowledged and agreed that the parties have a commonality of interest with respect to such Confidential Information or
action, suit, proceeding, investigation, arbitration or dispute and that it is the parties’ mutual desire, intention and understanding that the sharing of such materials and other information is not intended to, and shall not, affect the
confidentiality of any of such materials or other information or waive or diminish the continued protection of any of such materials or other information under the attorney-client privilege, work-product doctrine or other applicable privilege or
doctrine. Accordingly, all Confidential Information that is entitled to protection under the attorney-client privilege, work-product doctrine or other applicable privilege or doctrine shall remain entitled to protection thereunder and shall be
entitled to protection under the joint defense doctrine, and the parties agree to take all reasonable measures necessary to preserve, to the fullest extent possible, the applicability of all such privileges or doctrines. 

7. Non-Solicitation of Employees.3 The
Recipient covenants and agrees that during the twelve (12) month period commencing as of the Effective Date, it shall not (and shall cause its controlled affiliates who have received Confidential Information not to), directly solicit for
employment any of the Discloser’s or its subsidiaries’ senior management-level employees or any other employees with whom the Recipient had direct contact during its consideration of a Potential Transaction or, solicit any such employees
to terminate their employment with the Discloser or its subsidiaries; provided, however, that this Section 7 will not prevent the Recipient or its Associates from (a) causing to be placed any general
advertisements in newspapers and/or other media of general circulation (including, without limitation, advertisements posted on the Internet) that is not targeted specifically at such employees of the Discloser or its subsidiaries and employing such
persons who respond to such general advertisements, (b) engaging any recruiting firm or similar organization to identify and solicit such persons for employment on behalf of the Recipient or its Associates, so long as such recruiting firm or
organization is not instructed to specifically target any such employees of the Discloser or its subsidiaries, and employing any such persons, or (c) employing any such person who contacts the Recipient on his or her own initiative without any
direct or indirect solicitation in violation of the terms hereof. 
 8. Standstill. 

(a) During the twelve (12) month period commencing on the date of this Agreement, except pursuant to a Definitive Agreement between Romeo
and the Counterparty, the Counterparty shall not, in any manner, directly or indirectly: 
 (i) make, effect, initiate, cause or participate
in (A) any acquisition of beneficial ownership of any securities or debt obligations of Romeo or any securities or debt obligations of any subsidiary or other Affiliate of Romeo or rights or options to acquire such securities or debt
obligations, (B) any acquisition of any assets of Romeo or any assets of any subsidiary or other Affiliate of Romeo (other than the purchase or acquisition by the Counterparty 

 

	3 	 Note to Draft: We have modified the non-solicitation obligations
to be mutual. We view this provision as quite important in light of the nature of potential transactions that Romeo and Nikola will discuss, and we note that the provision is drafted with middle-of-the-road guardrails (e.g., (i) limited applicability to senior management-level employees or employees with whom the Recipient had direct contact
(i.e., not the full universe of employees) and (ii) the carve-outs in the proviso). 

  
 5 

Confidential Mutual Non-Disclosure Agreement 

 
of products of Romeo or any of its subsidiaries in the ordinary course of business), (C) any tender offer, exchange offer, merger, business combination, recapitalization, restructuring,
liquidation, dissolution, extraordinary transaction or any similar transaction involving Romeo or any subsidiary or other Affiliate of Romeo, or involving any securities, debt obligations or assets of Romeo or any securities, debt obligations or
assets of any subsidiary or other Affiliate of Romeo, or (D) any “solicitation” of “proxies” (as those terms are used in the proxy rules of the Securities and Exchange Commission) or consents with respect to any securities
of Romeo or any subsidiary or other Affiliate of Romeo; 
 (ii) form, join or participate in a “group” (as defined in the
Securities Exchange Act of 1934 and the rules promulgated thereunder) with respect to the beneficial ownership of any securities of Romeo; 

(iii) act, alone or in concert with others, to seek to control or influence the management, board of directors or policies of Romeo or any
subsidiary or Affiliate of Romeo; 
 (iv) take any action which might force Romeo to make a public announcement regarding any of the types
of matters set forth in clause “(i)” of this sentence; 
 (v) agree or offer to take, or encourage or propose (publicly or
otherwise) the taking of, any action referred to in clauses “(i)”, “(ii)”, “(iii)” or “(iv)” of this sentence; 

(vi) assist, induce or encourage any other Person to take any action referred to in clauses “(i)”, “(ii)”,
“(iii)” or “(iv)” of this sentence; or 
 (vii) enter into any discussions or arrangements with any third party with
respect to the taking of any action referred to in clauses “(i)”, “(ii)”, “(iii)” or “(iv)” of this sentence. 

(b) Notwithstanding any provision of Section 8(a) to the contrary, the provisions of
Section 8(a) shall terminate and be of no further force and effect in the event (i) any Person or “group” (as defined in the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder)
shall have commenced a Romeo Acquisition Transaction (as defined below), or (ii) the board of directors of Romeo shall have publicly endorsed, approved, recommended, or resolved to endorse, approve or recommend a Romeo Acquisition Transaction.
All of the provisions of Section 8(a) shall be reinstated and shall apply in full force according to their terms in the event that: (i) if the provisions of Section 8(a) shall have terminated
as the result of a tender offer, such tender offer (as originally made or as amended or modified) shall have terminated (without closing) prior to the commencement of a tender offer by the Counterparty or any of its Associates that would have been
permitted to be made pursuant to the first sentence of this Section 8(b) as a result of such third-party tender offer; (ii) any tender offer by the Counterparty or any of its Associates (as originally made or as
extended or modified) that was permitted to be made pursuant to this Section 8(b) shall have terminated (without closing); or (iii) if the provisions of Section 8(a) shall have terminated as a
result of any action by the board of directors of Romeo referred to in clause (ii) of the first sentence of this Section 8(b), the board of directors of Romeo shall have determined not to take any of such actions (and
no such transaction considered by the board of directors of Romeo shall have closed) prior to the commencement of a tender offer by the Counterparty that would have been permitted to be made pursuant to this Section 8(b) as
a result 

  
 6 

Confidential Mutual Non-Disclosure Agreement 

 
of the initial determination of the board of directors of Romeo referred to in clause (ii) of the first sentence of this Section 8(b), unless prior to such
determination by the board of directors of Romeo not to take any such actions, any event referred to in clause (i) of the first sentence of this Section 8(b) shall have occurred. Upon reinstatement of the provisions of
Section 8(a), the provisions of this Section 8(b) shall continue to govern in the event that any of the events described in clauses (i) and (ii) of the first sentence of this
Section 8(b) shall occur. Upon the closing of any tender offer for or acquisition of any securities of Romeo or rights or options to acquire any such securities by the Counterparty or any of its Associates that would have
been prohibited by the provisions of Section 8(a) but for the provisions of this Section 8(b), all provisions of Section 8(a) and 8(b) shall terminate. For purposes
of this Section 8(b), a “Romeo Acquisition Transaction” shall mean (i) the commencement (within the meaning of Rule 14d-2 under the Securities Exchange Act of
1934, as amended) of a tender or exchange offer by a third party for at least 50% of the outstanding capital stock of Romeo or any direct or indirect subsidiary of Romeo, (ii) the commencement by a third party of a proxy contest with respect to
the election of any directors of Romeo, (iii) any sale, license, lease, exchange, transfer, disposition or acquisition of any portion of the business or assets of Romeo or any direct or indirect subsidiary of Romeo or (iv) any merger,
consolidation, business combination, share exchange, reorganization, restructuring or similar transaction or series of related transactions involving Romeo or any direct or indirect subsidiary of Romeo. 

9. Term. 
 (a) This
Agreement covers Confidential Information disclosed by either Party on and after the Effective Date and continues in effect until terminated by either Party. Either Party may terminate this Agreement at any time, without any liability for such
termination, by giving thirty (30) days prior written notice to the other Party. Termination shall end all activity in connection with the Purpose but shall not affect the obligations created in this Agreement with respect to the Confidential
Information disclosed hereunder. 
 (b) Except as expressly provided in the last sentence of Section 5, this
Agreement shall expire, and the parties’ obligations under this Agreement shall terminate, upon the date that is the 36 month anniversary of the Effective Date; provided, that, to the extent that any Confidential Information
constitutes a trade secret under the laws of the United States, the Recipient’s obligations hereunder concerning such Confidential Information shall continue indefinitely under applicable law, subject to the Defend Trade Secrets Act of 2016, 18
U.S.C. § 1833(b) (“DTSA”). Notwithstanding anything herein to the contrary, the Discloser will not provide any trade secrets to the Recipient without (i) providing prior written notice to the Recipient that it intends to
disclose a particular trade secret to the Recipient; and (ii) subsequently receiving affirmative written consent from the Recipient prior to the disclosure of each particular trade secret.4

  

	4 	 Note to Draft: The proviso re: trade secrets and the last sentence of this Section 9(b) mirror the
language included in the existing Romeo, Nikola and Novelis three-way NDA. We thought it would be important, and helpful to both parties, to reflect the trade secret concept in this NDA as well.

  
 7 

Confidential Mutual Non-Disclosure Agreement 

 10. Assignment. Neither this Agreement nor any rights or obligations hereunder may be
assigned by either party hereto without the prior written consent of the other party, and any attempted assignment of this Agreement or any rights or obligations hereunder by either party without the prior written consent of the other party shall be
void, provided that the foregoing restriction shall not apply to an assignment that occurs in connection with a sale of all or substantially all of the assets of a party, and a sale of stock or merger involving a party shall not be deemed to
constitute an assignment by such party. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. 

11. Amendment; Waiver. This Agreement shall not be amended, modified or waived except by an agreement in writing duly executed and
delivered by each of the parties. No failure or delay of either party to exercise any right or remedy given to such party under this Agreement or otherwise available to such party, or to insist upon strict compliance by the other party with its
obligations hereunder, no single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, and no custom or practice of the parties in variance with the terms hereof, shall
constitute a waiver of either party’s right to demand exact compliance with the terms hereof. Any written waiver shall be limited to those items specifically waived therein and shall not be deemed to waive any future breaches or violations or
other non-specified breaches or violations unless, and to the extent, expressly set forth therein. 
 12.
Governing Law and Jurisdiction. This Agreement shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation, inducement to enter and/or performance of this Agreement
(whether related to breach of contract, tortious conduct or otherwise and whether now existing or hereafter arising) shall be governed by, the internal laws of the State of Delaware, without giving effect to any law that would cause the laws of any
jurisdiction other than the State of Delaware to be applied. Each party: (a) irrevocably and unconditionally consents and submits to the exclusive jurisdiction of the state and federal courts located in the State of Delaware for purposes of any
action, suit or proceeding arising out of or relating to this Agreement; (b) agrees that service of any process, summons, notice or document by U.S. registered mail to a party’s address (as such party may have given to the other party)
shall be effective service of process for any action, suit or proceeding brought against such party; (c) irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of or relating to
this Agreement in any state or federal court located in the State of Delaware; and (d) irrevocably and unconditionally waives the right to plead or claim, and irrevocably and unconditionally agrees not to plead or claim, that any action, suit
or proceeding arising out of or relating to this Agreement that is brought in any state or federal court located in the State of Delaware has been brought in an inconvenient forum. 

13. Specific Performance. Each party agrees that its obligations hereunder are necessary and reasonable in order to protect its business,
and expressly agrees that monetary damages may be inadequate to compensate such party for any breach by the other party or any of the other party’s Associates of any covenants and agreements set forth herein. Accordingly, each party agrees and
acknowledges that any breach or threatened breach of this Agreement by the other party or the other party’s Associates may cause irreparable injury to the non-breaching party and that, in addition to any
other remedies that may be available, in law, in equity or otherwise, the non-breaching party shall be entitled to seek specific performance and other injunctive relief against the continued breach of this
Agreement or the threatened breach thereof without the necessity of proving actual damages or securing or posting a bond, and the breaching party agrees not to oppose specific performance and other injunctive relief on the basis that monetary
damages would provide an adequate remedy. Such equitable remedies will not be the exclusive remedy for breach of this Agreement, but rather will be in addition to all other remedies available at law or in equity to the parties. 

  
 8 

Confidential Mutual Non-Disclosure Agreement 

 14. No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is
intended to confer on any person (other than the parties or their respective successors and permitted assigns) any rights, remedies, obligations or liabilities under or by reason of this Agreement. 

15. Relationship. The relationship of the Parties shall be that of independent contractors and nothing contained herein shall be deemed
to create any relationship of agency, joint venture or partnership. The Parties hereto shall not have any power to commit, contract for or otherwise obligate the other Parties. 

16. Severability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future
law, (a) such provision will be fully severable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by such illegal, invalid or unenforceable provision or by its severance from this Agreement, and (d) in lieu of such illegal, invalid or unenforceable provision, there will
be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 

17. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto relating to the subject matter hereof and
supersedes all prior agreements or understandings between the parties, oral or written, with respect to the subject matter hereof; provided (for the avoidance of doubt) that this Agreement does not supersede any Commercial Agreement. If there is any
inconsistency between this Agreement and the terms and conditions of any agreement that the Recipient or any of its Associates must “click through” for online data room access to any Confidential Information, then the terms and conditions
of this Agreement shall govern in all respects. 
 18. Counterparts; Deliveries. This Agreement may be executed in counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement and any amendments hereto, to the extent signed and delivered by means of electronic transmission of .pdf files or other
image files via e-mail, cloud-based transfer or file transfer protocol, or use of a facsimile machine, shall be treated in all manner and respects and for all purposes as an original agreement or instrument
and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party to any such agreement or instrument shall raise the use of electronic transmission or a facsimile machine
to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of electronic transmission or a facsimile machine as a defense to the formation or enforceability of a contract, and
each such party forever waives any such defense. 
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Confidential Mutual Non-Disclosure Agreement 

 

 
  

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by its
authorized representative as of the Effective Date. 
  

			
	ROMEO POWER, INC.
		
	By:	 	 /s/ Matthew Sant

	Name: Matthew Sant
	Title: General Counsel
	
	NIKOLA CORPORATION
		
	By:	 	 /s/ Kim J. Brady

	Name: Kim J. Brady
	Title: CFO

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