Document:

Exhibit 10.16
ROMEO SYSTEMS, INC.
2016 STOCK PLAN
NOTICE OF STOCK OPTION GRANT
Michael Patterson 
554 Muskingum Ave.
Pacific Palisades, CA 90272
You have been granted an option to purchase Class A Common Stock of Romeo Systems, Inc., a Delaware corporation (the “Company”), as follows:
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	Date of Grant:
	August [12], 2020

	Exercise Price Per Share:
	USD$0.8140 or, if the Board subsequently determines, in conjunction with the pending Company valuation, that the Fair Market Value of a share of Class A Common stock was higher on the Date of Grant, such higher amount as communicated to you in writing.

	Total Number of Shares:
	38,067,678

	Total Exercise Price:
	USD$30,987,090

	Type of Option:
	         Incentive Stock Option

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	   X     Nonstatutory Stock Option

	Expiration Date:
	The earlier of (i) August [12], 2023 or (ii) five (5) business days following the Liquidity Date

	Vesting Commencement Date:
	June 30, 2020

	Vesting/Exercise Schedule:
	Your Option shall vest based on both Continuous Service Status and the Liquid Share Price received by the holders of Common Stock in connection with a Liquidity Event. For the sake of clarity, if a Liquidity Event does not occur prior to the Expiration Date noted above, no portion of your Option will vest.
Time-Based Vesting. So long as your Continuous Service Status does not terminate, you will satisfy the time-based vesting component of vesting with respect to the Shares underlying this Option in accordance with the following schedule: 50% of the Total Number of Shares on the first anniversary of the Vesting Commencement Date and 1/12th of the remaining 50% of the Total Number of Shares on the same day of each month thereafter (and if there is no corresponding day, the last day of the month). Notwithstanding the foregoing, if (1) you remain in

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	Continuous Service Status from the Date of Grant through the Liquidity Date or (2) your Continuous Service Status is terminated by the Company without “Cause” or you for “Good Reason” within the period commencing 30 days prior the Closing of a SPAC Transaction and ending on the twelve-month anniversary of the closing of the SPAC Transaction you will be deemed to have fully satisfied the time-based vesting component.
Value-Based Vesting. Notwithstanding the foregoing, no portion of the Option will be fully vested until the occurrence of a Liquidity Event. If and when the Liquidity Event occurs, with respect to the value-based vesting component, you will vest in the following number of Shares subject to the Option as a function of the Liquid Share Price that is realized by the Company’s common stockholders pursuant to the Liquidity Event, regardless of the number of vested shares calculated pursuant to the time-based vesting schedule set forth above and no additional shares subject to the Option will vest based on Continuous Service Status following the Liquidity Event.

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	Liquid Share Price
	Cumulative Number of
Shares with respect to
which the Option will
Vest

	$0.8140 - $1.0889
	7,613,536

	$1.0890 - $1.4519
	15,227,071

	$1.4520 - $1.8149
	26,647,345

	$1.8150
	38,067,678

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	If a Liquidity Event involves any escrow or earn-out provisions, you may be entitled to additional vesting on distribution of such amounts if such distribution results in the satisfaction of an additional Liquid Share Price hurdle.

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	If your Continuous Service Status is terminated by the Company without “Cause” or by you for “Good Reason” within 12 months prior to the Liquidity Date, you will be deemed to be fully vested in the lesser of that portion of the Option for which (1) you satisfied the time-based vesting component of vesting as of the Termination Date

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	and (2) you satisfied the value-based-vesting component of vesting as of the Liquidity Date.

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	Notwithstanding anything to contrary in this Notice of Stock Option Grant, the Stock Option Agreement or the Plan, no time-based vesting shall occur following the Termination Date (as defined in Section 5 of the Stock Option Agreement) unless otherwise determined by the Company in its sole discretion).

	Termination Period:
	You generally may not exercise this Option after your Termination Date, except as set out in Section 5 of the Stock Option Agreement (but in no event later than the Expiration Date). You are responsible for keeping track of the exercise period, if any, following the Termination Date. The Company will not provide further notice of such periods.

	Transferability:
	You may not transfer this Option except as set forth in Section 6 of the Stock Option Agreement (subject to compliance with Applicable Laws). You must obtain Company approval prior to any transfer of the Shares received upon exercise of this Option.

	Definitions:
	Unless otherwise noted in this Notice of Stock Option Grant, capitalized terms shall have the same meaning assigned to them under the Plan or the Stock Option Agreement; provided, however, that if a capitalized term is assigned a meaning under both documents, the definition in the Stock Option Agreement shall control.

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[Signature Page Follows]
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By your signature and the signature of the Company’s representative or by otherwise accepting or exercising this Option, you and the Company agree that this Option is granted under and governed by the terms and conditions of this Notice and the Romeo Systems, Inc. 2016 Stock Plan and Stock Option Agreement (which includes the Country-Specific Addendum, as applicable), both of which are attached to and made a part of this Notice.
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In addition, you agree and acknowledge that your rights to any Shares underlying this Option will vest only as you provide services to the Company over time, that the grant of this Option is not as consideration for services you rendered to the Company prior to your date of hire, and that nothing in this Notice or the attached documents confers upon you any right to continue your employment or consulting relationship with the Company for any period of time, nor does it interfere in any way with your right or the Company’s right to terminate that relationship at any time, for any reason, with or without cause, subject to Applicable Laws.
Also, to the extent applicable, the Exercise Price Per Share has been set in good faith compliance with the applicable guidance issued by the IRS under Section 409A of the Code. However, there is no guarantee that the IRS will agree with the valuation, and by signing below, you agree and acknowledge that the Company, its Board, officers, employees, agents and stockholders shall not be held liable for any applicable costs, taxes, or penalties associated with this Option if, in fact, the IRS or any other person (including, without limitation, a successor corporation or an acquirer in a Change of Control) were to determine that this Option constitutes deferred compensation under Section 409A of the Code. You should consult with your own tax advisor concerning the tax consequences of such a determination by the IRS. For purposes of this paragraph, the term “Company” will be interpreted to include any Parent, Subsidiary or Affiliate.
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	THE COMPANY:

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	ROMEO SYSTEMS, INC.

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	By: 
	/s/ Lauren Webb

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	Name:
	Lauren Webb

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	Title: 
	Chief Financial Officer

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	OPTIONEE:

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	MICHAEL PATTERSON

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	/s/ Michael Patterson

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	Address:

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	554 Muskingum Ave.
Pacific Palisades, CA 90272
mwp@romeopower.com

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ROMEO SYSTEMS, INC.
2016 STOCK PLAN
STOCK OPTION AGREEMENT
1.              Grant of Option. Romeo Systems, Inc., a Delaware corporation (the “Company”), hereby grants to the person (“Optionee”) named in the Notice of Stock Option Grant (the “Notice”), an option (the “Option”) to purchase the total number of shares of Class A Common Stock (the “Shares”) set forth in the Notice, at the exercise price per Share set forth in the Notice (the “Exercise Price”) subject to the terms, definitions and provisions of the Romeo Systems, Inc. 2016 Stock Plan (the “Plan”) adopted by the Company, which is incorporated in this Stock Option Agreement (this “Agreement”) by reference. Unless otherwise defined in this Agreement, the terms used in this Agreement or the Notice shall have the meanings defined in the Plan.
2.              Designation of Option. This Option is intended to be an Incentive Stock Option as defined in Section 422 of the Code only to the extent so designated in the Notice, and to the extent it is not so designated or to the extent this Option does not qualify as an Incentive Stock Option, it is intended to be a Nonstatutory Stock Option.
Notwithstanding the above, if designated as an Incentive Stock Option, in the event that the Shares subject to this Option (and all other incentive stock options granted to Optionee by the Company or any Parent or Subsidiary, including under other plans) that first become exercisable in any calendar year have an aggregate fair market value (determined for each Share as of the date of grant of the option covering such Share) in excess of USD$100,000, the Shares in excess of USD$100,000 shall be treated as subject to a nonstatutory stock option, in accordance with Section 5(c) of the Plan.
3.              Exercise of Option. This Option shall be exercisable during its term in accordance with the Vesting/Exercise Schedule set out in the Notice and with the provisions of Section 7(c) of the Plan as follows:
(a)     Right to Exercise.
(i)           This Option may not be exercised for a fraction of a share.
(ii)          In the event of Optionee’s death, Disability or other termination of Continuous Service Status, the exercisability of this Option is governed by Section 5 below, subject to the limitations contained in this Section 3.
(iii)         In no event may this Option be exercised after the Expiration Date set forth in the Notice.
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(b)     Method of Exercise.
(i)             This Option shall be exercisable by execution and delivery of the Exercise Agreement attached hereto as Exhibit A or of any other form of written notice approved for such purpose by the Company which shall state Optionee’s election to exercise this Option, the number of Shares in respect of which this Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by Optionee and shall be delivered to the Company by such means as are determined by the Company in its discretion to constitute adequate delivery. The written notice shall be accompanied by payment of the aggregate Exercise Price for the purchased Shares.
(ii)            As a condition to the grant, vesting and exercise of this Option and as further set forth in Section 9 of the Plan, Optionee hereby agrees to make adequate provision for the satisfaction of (and will indemnify the Company and any Subsidiary or Affiliate for) any applicable taxes or tax withholdings, social contributions, required deductions, or other payments, if any (“Tax-Related Items”), which arise upon the grant, vesting or exercise of this Option, ownership or disposition of Shares, receipt of dividends, if any, or otherwise in connection with this Option or the Shares, whether by withholding, direct payment to the Company, or otherwise as determined by the Company in its sole discretion. Regardless of any action the Company or any Subsidiary or Affiliate takes with respect to any or all applicable Tax-Related Items, Optionee acknowledges and agrees that the ultimate liability for all Tax- Related Items is and remains Optionee’s responsibility and may exceed any amount actually withheld by the Company or any Subsidiary or Affiliate. Optionee further acknowledges and agrees that Optionee is solely responsible for filing all relevant documentation that may be required in relation to this Option or any Tax-Related Items (other than filings or documentation that is the specific obligation of the Company or any Subsidiary or Affiliate pursuant to Applicable Law), such as but not limited to personal income tax returns or reporting statements in relation to the grant, vesting or exercise of this Option, the holding of Shares or any bank or brokerage account, the subsequent sale of Shares, and the receipt of any dividends. Optionee further acknowledges that the Company makes no representations or undertakings regarding the treatment of any Tax-Related Items and does not commit to and is under no obligation to structure the terms or any aspect of the Option to reduce or eliminate Optionee’s liability for Tax-Related Items or achieve any particular tax result. Optionee also understands that Applicable Laws may require varying Share or option valuation methods for purposes of calculating Tax-Related Items, and the Company assumes no responsibility or liability in relation to any such valuation or for any calculation or reporting of income or Tax-Related Items that may be required of Optionee under Applicable Laws. Further, if Optionee has become subject to Tax-Related Items in more than one jurisdiction, Optionee acknowledges that the Company or any Subsidiary or Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
(iii)           The Company is not obligated, and will have no liability for failure, to issue or deliver any Shares upon exercise of this Option unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel. Furthermore, Optionee understands that the Applicable Laws of the country in which Optionee is residing or working at the time of grant,
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vesting, and/or exercise of this Option (including any rules or regulations governing securities, foreign exchange, tax, labor or other matters) may restrict or prevent exercise of this Option. This Option may not be exercised until such time as the Plan has been approved by the holders of capital stock of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of any Applicable Laws, including any applicable U.S. federal or state securities laws or any other law or regulation, including any rule under Part 221 of Title 12 of the Code of Federal Regulations as promulgated by the Federal Reserve Board. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by the Applicable Laws. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on the date on which this Option is exercised with respect to such Shares, subject to Applicable Laws.
(iv)           Subject to compliance with Applicable Laws, this Option shall be deemed to be exercised upon receipt by the Company of the appropriate written notice of exercise accompanied by the Exercise Price and the satisfaction of any applicable obligations described in Section 3(b)(ii) above.
4.              Method of Payment. Unless otherwise specified by the Company in its sole discretion to comply with Applicable Laws or facilitate the administration of the Plan, payment of the Exercise Price shall be by cash or check or, following the initial public offering of the Company’s Common Stock, by Cashless Exercise pursuant to which the Optionee delivers an irrevocable direction to a securities broker (on a form prescribed by the Company and according to a procedure established by the Company).
Optionee understands and agrees that, if required by the Company or Applicable Laws, any cross-border cash remittance made to exercise this Option or transfer proceeds received upon the sale of Shares must be made through a locally authorized financial institution or registered foreign exchange agency and may require Optionee to provide to such entity certain information regarding the transaction.  Moreover, Optionee understands and agrees that the future value of the underlying Shares is unknown and cannot be predicted with certainty and may decrease in value, even below the Exercise Price. Optionee understands that neither the Company nor any Subsidiary or Affiliate is responsible for any foreign exchange fluctuation between local currency and the United States Dollar or the selection by the Company or any Subsidiary or Affiliate in its sole discretion of an applicable foreign currency exchange rate that may affect the value of the Option (or the calculation of income or Tax-Related Items thereunder).
5.              Termination of Relationship. Following the date of termination of Optionee’s Continuous Service Status for any reason (the “Termination Date”), Optionee may exercise this Option only as set forth in this Section 5. If Optionee does not exercise this Option within the Termination Period set forth in the Notice or the termination periods set forth below, this Option shall terminate in its entirety. In no event may any Option be exercised after the Expiration Date of this Option as set forth in the Notice. For the avoidance of doubt and for purposes of this Option only, termination of Continuous Service Status and the Termination Date will be deemed to occur as of the date Optionee is no longer actively providing services as an Employee or Consultant (except, in certain circumstances, to the extent Optionee is on a Company-approved leave of absence and subject to any Company policy or Applicable Laws regarding such leaves)
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and will not be extended by any notice period or “garden leave” that may be required contractually or under Applicable Laws, unless otherwise determined by the Company in its sole discretion.
(a)   Termination in General. In the event of termination of Optionee’s Continuous Service Status other than as a result of (1) a resignation by Optionee for Good Reason or (2) a termination by the Company that was not for “Cause,” this Option (including any vested portion thereof) shall immediately terminate in its entirety.
(b)   Termination Prior to Liquidity Date. If (1) Optionee’s Continuous Service Status is terminated by the Company without “Cause” or by the Optionee for “Good Reason” and (2) a “Liquidity Event” (other than a SPAC Transaction) occurs within 12 months following the Termination Date, Optionee may, only within the 5 business days following the Liquidity Date, exercise this Option, but only to the extent Optionee is then- vested in the Optioned Stock. Any unexercised portion of the Option will immediately terminate in its entirety.
(c)   Termination in Connection with a SPAC Transaction. If Optionee’s Continuous Service Status is terminated by the Company without “Cause” or by the Optionee for “Good Reason” within the period commencing 30 days prior the Closing of a SPAC Transaction and ending on the twelve-month anniversary of the closing of the SPAC Transaction, Optionee may, only within the 5 business days following the Liquidity Date, exercise this Option, but only to the extent Optionee is then-vested in the Optioned Stock. Any unexercised portion of the Option will immediately terminate in its entirety.
(d)   Termination upon Disability of Optionee. In the event of termination of Optionee’s Continuous Service Status as a result of Optionee’s Disability, this Option (including any vested portion thereof) shall immediately terminate in its entirety.
(e)   Death of Optionee. In the event of termination of Optionee’s Continuous Service Status as a result of Optionee’s death, this Option (including any vested portion thereof) shall immediately terminate in its entirety.
(f)    Termination for Cause. In the event of termination of Optionee’s Continuous Service Status for Cause, this Option (including any vested portion thereof) shall immediately terminate in its entirety upon first notification to Optionee of such termination for Cause. If Optionee’s Continuous Service Status is suspended pending an investigation of whether Optionee’s Continuous Service Status will be terminated for Cause, all Optionee’s rights under this Option, including the right to exercise this Option, shall be suspended during the investigation period.
6.              Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee.
7.              Lock-Up Agreement. If so requested by the Company or the underwriters in connection with an IPO of the Company’s securities registered under the Securities Act of 1933,
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as amended (the “Securities Act”) or a SPAC Transaction, Optionee shall not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company however or whenever acquired (except for those being registered) without the prior written consent of the Company or such underwriters, as the case may be, for the period of time required by the Company or the underwriters, and Optionee shall execute an agreement reflecting the foregoing as may be requested by the Company or the underwriters at the time of such offering.
8.              Effect of Agreement. Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the Option terms), and hereby accepts this Option and agrees to be bound by its contractual terms as set forth herein and in the Plan. Optionee hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Administrator regarding any questions relating to this Option. In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of the Notice and this Agreement, the Plan terms and provisions shall prevail.
9.              Imposition of Other Requirements. The Company reserves the right, without Optionee’s consent, to cancel or forfeit outstanding grants or impose other requirements on Optionee’s participation in the Plan, on this Option and the Shares subject to this Option and on any other Award or Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with Applicable Laws or facilitate the administration of the Plan. Optionee agrees to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. Furthermore, Optionee acknowledges that the Applicable Laws of the country in which Optionee is residing or working at the time of grant, holding, vesting, and exercise of the Option or the holding or sale of Shares received pursuant to the Option (including any rules or regulations governing securities, foreign exchange, tax, labor, or other matters) may subject Optionee to additional procedural or regulatory requirements that Optionee is and will be solely responsible for and must fulfill. If applicable, such requirements may be outlined in but are not limited to the Country-Specific Addendum (the “Addendum”) attached hereto, which forms part of this Agreement. Notwithstanding any provision herein, Optionee’s participation in the Plan shall be subject to any applicable special terms and conditions or disclosures as set forth in the Addendum. The Optionee also understands and agrees that if the Optionee works, resides, moves to, or otherwise is or becomes subject to Applicable Laws or Company policies of another jurisdiction at any time, certain country- specific notices, disclaimers and/or terms and conditions may apply to him as from the date of grant, unless otherwise determined by the Company in its sole discretion.
10.              Electronic Delivery and Translation. The Company may, in its sole discretion, decide to deliver any documents related to Optionee’s current or future participation in the Plan, this Option, the Shares subject to this Option, any other Company Securities or any other Company-related documents, by electronic means. By accepting this Option, whether electronically or otherwise, Optionee hereby (i) consents to receive such documents by electronic means, (ii) consents to the use of electronic signatures, and (iii) if applicable, agrees to participate in the Plan and/or receive any such documents through an on-line or electronic system established and maintained by the Company or a third party designated by the Company, including but not limited to the use of electronic signatures or click-through electronic
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acceptance of terms and conditions. To the extent Optionee has been provided with a copy of this Agreement, the Plan, or any other documents relating to this Option in a language other than English, the English language documents will prevail in case of any ambiguities or divergences as a result of translation.
11.              No Acquired Rights or Employment Rights. In accepting the Option, Optionee acknowledges that the Plan is established voluntarily by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by the Company at any time. The grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of Options, other Awards or benefits in lieu of Options, even if Options have been granted repeatedly in the past, and all decisions with respect to future grants of Options or other Awards, if any, will be at the sole discretion of the Company. In addition, Optionee’s participation in the Plan is voluntary, and the Option and the Shares subject to the Option are extraordinary items that do not constitute regular compensation for services rendered to the Company or any Subsidiary or Affiliate and are outside the scope of Optionee’s employment contract, if any. The Option and the Shares subject to the Option are not intended to replace any pension rights or compensation and are not part of normal or expected salary or compensation for any purpose, including but not limited to calculating severance payments, if any, upon termination.
Nothing contained in this Agreement is intended to constitute or create a contract of employment, nor shall it constitute or create the right to remain associated with or in the employ of the Company or any Subsidiary or Affiliate for any particular period of time. This Agreement shall not interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate Optionee’s employment or service at any time, subject to Applicable Laws.
12.              Data Privacy. Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, whether in electronic or other form, of Optionee’s personal data (as described below) by and among, as applicable, the Company and any Subsidiary or Affiliate or third parties as may be selected by the Company for the exclusive purpose of implementing, administering, and managing Optionee’s participation in the Plan. Optionee understands that refusal or withdrawal of consent may affect Optionee’s ability to participate in the Plan or to realize benefits from the Option.
Optionee understands that the Company and any Subsidiary or Affiliate may hold certain personal information about Optionee, including, but not limited to, Optionee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company or any Subsidiary or Affiliate, details of all Options or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Optionee’s favor (“Personal Data”). Optionee understands that Personal Data may be transferred to any Subsidiary or Affiliate or third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the United States, Optionee’s country, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than Optionee’s country.
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13.          Definitions. As used herein and in the Notice, the following definitions shall apply:
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(a) Cause: has the meaning ascribed to such term in the Employment Agreement.
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(b) Employment Agreement: means the Employment Agreement entered into by and between the Optionee and the Company as of the Date of Grant, a copy of which is attached as Exhibit B.
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(c) Good Reason: has the meaning ascribed to such term in the Employment Agreement.
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(d) IPO: means the initial public offering of the Company’s securities pursuant to a registration statement of the Company filed with and declared effective by the Securities and Exchange Commission pursuant to the Securities Act.
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(e) Liquid Share Price: means the price per share of Common Stock realized by the holders of Common Stock in connection with a Liquidity Event. The Liquid Share Price will be determined assuming that Optionee has exercised the applicable number of Shares subject to the Option that have vested in accordance with the table set forth in the Notice. The Liquid Share Price will determined as of the date on which all shares of Common Stock are freely tradeable and/or convertible into cash; provided, however, that in the case of a SPAC Transaction or IPO, the Liquid Share Price will be the average of the market closing price at the end of each of the five trading days following the expiration of all lockup periods.
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(f)  Liquidity Date: means the date on which all shares Common Stock are freely tradable or convertible into cash at the same per-share amount and, for the sake of clarity, in the case of a SPAC Transaction or an IPO, the Liquidity Date will be the date on which all lock-up requirements expire (e.g., the date on which all shares of Common Stock become freely tradable).
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(g) Liquidity Event: means that prior to the expiration of the Option, the Company has completed a transaction or series of transactions that results in liquid, realized returns for all of the Company’s stockholders.
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(h) SPAC Transaction: means the acquisition of the Company by a special purpose acquisition company that is publicly-traded on either the New York Stock Exchange, the Nasdaq Global Select Market or the Nasdaq Global Market.
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14.     Adjustments to Option.
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The rights of the Administrator and the Company under Section 10 of the Plan shall apply in the event of a Liquidity Event and a Liquidity Event shall be deemed a “Corporate Transaction” within the meaning of the Plan. In addition, in connection with a Corporate Transaction, the Administrator may adjust the Liquid Share Price hurdles and the number of shares covered by the Option or make other changes to the Option as it may determine in its sole
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discretion to be desirable to preserve in-so-far as possible the intended economics of the Option. In addition, in connection with a Liquidity Event that is not a SPAC Transaction or an IPO, the Board will use good faith efforts to cause the purchaser to assume the Option. In addition, if, in connection with a Liquidity Event, the Board will use good-faith efforts to modify this Option into an incentive plan or similar program (e.g., a phantom option) with the surviving or acquiring entity, such that similar economic benefits are realized by Optionee at similar valuation hurdles as a function of the Liquid Share Price realized by the existing Company stockholders as of the date of the Liquidity Event and may make such adjustments in the course of doing so that it determines are appropriate in its sole and good faith judgment. If the Board is unsuccessful in obtaining such an agreement with the surviving or acquiring entity, it will use good-faith efforts to cause its shareholders to enter into an agreement with Optionee to enable Optionee to realize similar economic benefits at similar valuation hurdles as a function of the Liquid Share Price realized by the existing Company stockholders as of the date of the Liquidity Event, which may contain such adjustments that it determines are appropriate in its sole and good faith judgment. If the Board is unsuccessful in obtaining any of the foregoing outcomes, this Option shall terminate without consideration therefore.
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In addition to the foregoing, in the event that Optionee receives an increase in base salary, bonus, or other compensation, or any equity awards, or other incentive awards, whether deferred or not (“Additional Compensation”) in connection with an IPO or SPAC Transaction or thereafter, but prior to the Liquidity Date, the Board or the Board of Directors of the special purpose acquisition company (or their successors) shall have the right, but not the obligation, to adjust the Liquid Share Price hurdles and the number of shares covered by the Option or make other changes to the Option as it may determine in its sole discretion to be desirable to ensure in- so-far as possible that the economics of the Option and the Additional Compensation in the aggregate are similar to the intended economics of the Option.
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15.     Liquidity Event Exercise.
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Optionee agrees that the Company may, upon written request, require Optionee to exercise the Option at least five (5) business days prior to a Liquidity Event that is not an IPO or a SPAC Transaction, and any Shares acquired upon such exercise will be subject to the value- based vesting requirement, which restriction will lapse on the Liquidity Date. Such exercise may be in the form of a Cashless Exercise at Optionee’s request. If Optionee fails to complete such exercise, the Option shall immediately terminate without consideration therefor or with such consideration as the Board may determine in its sole and absolute discretion.
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16.     Miscellaneous.
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(a)   Governing Law. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of California, without giving effect to principles of conflicts of law. For purposes of litigating any dispute that may arise directly or indirectly from this Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the state of California and agree that any such litigation shall be conducted only in the courts
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of California or the federal courts of the United States located in California and no other courts.
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(b)   Entire Agreement. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof.
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(c)   Amendments and Waivers. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.
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(d)   Successors and Assigns. Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company.
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(e)   Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature page, at the most recent address set forth in the Company’s books and records.
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(f)    Severability. If one or more provisions of this Agreement are held to be unenforceable under Applicable Law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.
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(g)   Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.
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(h)   Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement. Execution of a facsimile
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or scanned copy will have the same force and effect as execution of an original, and a facsimile or scanned signature will be deemed an original and valid signature.
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Country-Specific Addendum
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This Addendum includes additional country-specific notices, disclaimers, and/or terms and conditions that apply to individuals who are working or residing in the countries listed below and that may be material to Optionee’s participation in the Plan. Such notices, disclaimers, and/or terms and conditions may also apply, as from the date of grant, if the Optionee moves to or otherwise is or becomes subject to the Applicable Laws or Company policies of the country listed. However, because foreign exchange regulations and other local laws are subject to frequent change, Optionee is advised to seek advice from his or her own personal legal and tax advisor prior to accepting or exercising an Option or holding or selling Shares acquired under the Plan. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Optionee’s acceptance of the Option or participation in the Plan. Unless otherwise noted below, capitalized terms shall have the same meaning assigned to them under the Plan, the Notice of Stock Option Grant and the Stock Option Agreement. This Addendum forms part of the Stock Option Agreement and should be read in conjunction with the Stock Option Agreement and the Plan.
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Securities Law Notice: Unless otherwise noted, neither the Company nor the Shares are registered with any local stock exchange or under the control of any local securities regulator outside the United States. The Stock Option Agreement (of which this Addendum is a part), the Notice of Stock Option Grant, the Plan, and any other communications or materials that you may receive regarding participation in the Plan do not constitute advertising or an offering of securities outside the United States, and the issuance of securities described in any Plan-related documents is not intended for public offering or circulation in your jurisdiction
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EXHIBIT A
ROMEO SYSTEMS, INC.
2016 STOCK PLAN
EXERCISE AGREEMENT
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This Exercise Agreement (this “Agreement”) is made as of                                , by and between Romeo Systems, Inc., a Delaware corporation (the “Company”), and                                          (“Purchaser”). To the extent any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed to them in the Company’s 2016 Stock Plan (the “Plan”) and the Option Agreement (as defined below).
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1.            Exercise of Option. Subject to the terms and conditions hereof, Purchaser hereby elects to exercise his or her option to purchase                                             shares of the Class A Common Stock (the “Shares”) of the Company under and pursuant to the Plan, the Notice of Stock Option Grant and the Stock Option Agreement granted                                             , 2020 (the “Option Agreement”). The purchase price for the Shares shall be USD$                                         per Share for a total purchase price of USD$          . The term “Shares” refers to the purchased Shares and all securities received in connection with the Shares pursuant to stock dividends or splits, all securities received in replacement of the Shares in a recapitalization, merger, reorganization, exchange or the like, and all new, substituted or additional securities or other property to which Purchaser is entitled by reason of Purchaser’s ownership of the Shares.
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2.            Time and Place of Exercise. The purchase and sale of the Shares under this Agreement shall occur at the principal office of the Company simultaneously with the execution and delivery of this Agreement, the payment of the aggregate exercise price by any method listed in Section 4 of the Option Agreement, and the satisfaction of any applicable tax, withholding, required deductions or other payments, all in accordance with the provisions of Section 3(b) of the Option Agreement.  The Company shall issue the Shares to Purchaser by entering such Shares in Purchaser’s name as of such date in the books and records of the Company or, if applicable, a duly authorized transfer agent of the Company, against payment of the exercise price therefor by Purchaser. The Company will deliver to Purchaser a stock certificate or, upon request in the case of uncertificated securities, a notice of issuance, for the Shares as soon as practicable preceding such date.
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3.            Limitations on Transfer. Purchaser acknowledges and agrees that the Shares purchased under this Agreement are subject to (i) the transfer restrictions set forth in Section 12 of the Plan, (ii) the terms and conditions that apply to the Company’s Common Stock, as set forth in the Company’s Amended and Restated Bylaws, including (without limitation) certain transfer restrictions set forth in Section 8.9 of the Company’s Amended and Restated Bylaws, as may be in effect at the time of any proposed transfer (the “Bylaw Provisions”), and (iii) any other limitation or restriction on transfer created by Applicable Laws. Purchaser shall not assign, encumber or dispose of any interest in the Shares except to the extent permitted by, and in compliance with, Section 12 of the Plan, the Bylaw Provisions, Applicable Laws, and the provisions below.
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(a)   Transfer Restrictions; Right of First Refusal. Before any Shares held by Purchaser or any transferee of Purchaser (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company shall first, to the extent the Company’s approval is required by the Plan or any applicable Bylaw Provisions, have the right to approve such sale or transfer, in full or in part, and shall then have the right to purchase all or any part of the Shares proposed to be sold or transferred, in each case, in its sole and absolute discretion (the “Right of First Refusal”).  If the Holder would like to sell or transfer any Shares, the Holder must provide the Company or its assignee(s) with a Notice (as defined below) requesting approval to sell or transfer the Shares and offering the Company or its assignee(s) a Right of First Refusal on the same terms and conditions set forth in this Section 3(a). The Company may either (1) exercise its Right of First Refusal in full or in part and purchase such Shares pursuant to this Section 3(a), (2) decline to exercise its Right of First Refusal in full or in part and permit the transfer of such Shares to the Proposed Transferee (as defined below) in full or in part or (3) decline to exercise its Right of First Refusal in full or in part and, to the extent the Company’s approval is required by the Plan or any applicable Bylaw Provisions, decline the request to sell or transfer the Shares in full or in part.
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(i)           Notice of Proposed Transfer. The Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating: (A) the Holder’s intention to sell or otherwise transfer such Shares; (B) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (C) the number of Shares to be sold or transferred to each Proposed Transferee; (D) the terms and conditions of each proposed sale or transfer, including (without limitation) the purchase price for such Shares (the “Purchase Price”); and (E) the Holder’s offer to the Company or its assignee(s) to purchase the Shares at the Purchase Price and upon the same terms (or terms that are no less favorable to the Company).
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(ii)          Exercise of Right of First Refusal. At any time within 30 days after receipt of the Notice, the Company and/or its assignee(s) shall deliver a written notice to the Holder indicating whether the Company and/or its assignee(s) elect to permit or reject the proposed sale or transfer, in full or in part, and/or elect to accept or decline the offer to purchase any or all of the Shares proposed to be sold or transferred to any one or more of the Proposed Transferees, at the Purchase Price, provided that if the Purchase Price consists of no legal consideration (as, for example, in the case of a transfer by gift), the purchase price will be the fair market value of the Shares as determined in good faith by the Company. If the Purchase Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Company in good faith.
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(iii)         Payment. Payment of the Purchase Price shall be made, at the election of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness, or by any combination thereof within 60 days after receipt of the Notice or in the manner and at the times set forth in the Notice.
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(iv)         Holder’s Right to Transfer. If any of the Shares proposed in the Notice to be sold or transferred to a given Proposed Transferee are both (A) not purchased by the Company and/or its assignee(s) as provided in this Section 3(a) and (B) approved by the Company to be sold or transferred, then the Holder may sell or otherwise transfer any such
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Shares to the applicable Proposed Transferee at the Purchase Price or at a higher price, provided that such sale or other transfer is consummated within 120 days after the date of the Notice; provided that any such sale or other transfer is also effected in accordance with the Bylaw Provisions the transfer restrictions set forth in the Plan and any Applicable Laws and the Proposed Transferee agrees in writing that the Plan, the Bylaw Provisions and the provisions of the Option Agreement and this Agreement, including this Section 3 and the waiver of statutory information rights in Section 8 shall continue to apply to the Shares in the hands of such Proposed Transferee. The Company, in consultation with its legal counsel, may require the Holder to provide an opinion of counsel evidencing compliance with Applicable Laws. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, or if the Holder proposes to change the price or other terms to make them more favorable to the Proposed Transferee, a new Notice shall be given to the Company, and the Company and/or its assignees shall again have the right to approve such transfer and be offered the Right of First Refusal.
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(v)          Exception for Certain Family Transfers. Anything to the contrary contained in this Section 3(a) notwithstanding, the transfer of any or all of the Shares during Holder’s lifetime or on Holder’s death by will or intestacy to Holder’s Immediate Family or a trust for the benefit of Holder’s Immediate Family shall be exempt from the provisions of this Section 3(a). “Immediate Family” as used herein shall mean lineal descendant or antecedent, spouse (or spouse’s antecedents), father, mother, brother or sister (or their descendants), stepchild (or their antecedents or descendants), aunt or uncle (or their antecedents or descendants), brother-in-law or sister-in-law (or their antecedents or descendants) and shall include adoptive relationships, or any person sharing Holder’s household (other than a tenant or an employee). In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of the Plan, the Bylaw Provisions and the provisions of the Option Agreement and this Agreement, including this Section 3 and Section 8, and there shall be no further transfer of such Shares except in accordance with the terms of this Section 3, the Plan, and the Bylaw Provisions.
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(b)   Company’s Right to Purchase upon Involuntary Transfer.  In the event of any transfer by operation of law or other involuntary transfer (including death or divorce, but excluding a transfer to Immediate Family as set forth in Section 3(a)(v) above) of all or a portion of the Shares by the record holder thereof, the Company shall have an option to purchase any or all of the Shares transferred at the Fair Market Value of the Shares on the date of transfer (as determined by the Company in its sole discretion). Upon such a transfer, the Holder shall promptly notify the Secretary of the Company of such transfer. The right to purchase such Shares shall be provided to the Company for a period of 30 days following receipt by the Company of written notice from the Holder.
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(c)   Assignment. The right of the Company to purchase any part of the Shares may be assigned in whole or in part to any holder or holders of capital stock of the Company or other persons or organizations.
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(d)   Restrictions Binding on Transferees. All transferees of Shares or any interest therein will receive and hold such Shares or interest subject to the Plan, the Bylaw Provisions, the provisions of the Option Agreement and this Agreement, including, without
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limitation, Sections 3 and 8 of this Agreement, Section 7 of the Option Agreement and Section 12 of the Plan. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied.
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(e)   Termination of Rights. The transfer restrictions set forth in Section 3(a) above and Section 12 of the Plan, the Right of First Refusal granted the Company by Section 3(a) above and the right to repurchase the Shares in the event of an involuntary transfer granted the Company by Section 3(b) above shall terminate upon (i) the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”) (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan) or (ii) any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct or indirect parent corporation thereof is registered under the Exchange Act. Upon termination of such transfer restrictions, the Company will remove any stop-transfer notices referred to in Section 6(b) below and related to the restrictions in this Section 3 and a new stock certificate or, in the case of uncertificated securities, notice of issuance, for the Shares not repurchased shall be issued, on request, without the legend referred to in Section 6(a)(ii) below and delivered to Holder.
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(f)    Lock-Up Agreement. The lock-up provisions set forth in Section 7 of the Option Agreement shall apply to the Shares issued upon exercise of the Option hereunder and Purchaser reaffirms Purchaser’s obligations set forth therein.
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4.            Investment and Taxation Representations. In connection with the purchase of the Shares, Purchaser represents to the Company the following:
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(a)   Purchaser is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Purchaser is purchasing the Shares for investment for Purchaser’s own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the Securities Act or under any applicable provision of state law. Purchaser does not have any present intention to transfer the Shares to any other person or entity.
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(b)   Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein.
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(c)   Purchaser further acknowledges and understands that the securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the Company is under no obligation to register the securities.
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(d)   Purchaser is familiar with the provisions of Rule 144, promulgated under the Securities Act, which, in substance, permits limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer of the securities (or from an affiliate of such issuer), in a non-public offering subject to the satisfaction of certain conditions. Purchaser understands that the Company provides no assurances as to whether he or she will be able to resell any or all of the Shares pursuant to Rule 144, which rule requires, among other things, that the Company be subject to the reporting requirements of the Exchange Act, that resales of securities take place only after the holder of the Shares has held the Shares for certain specified time periods, and under certain circumstances, that resales of securities be limited in volume and take place only pursuant to brokered transactions. Notwithstanding this Section 4(d), Purchaser acknowledges and agrees to the restrictions set forth in Section 4(e) below.
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(e)   Purchaser further understands that in the event all of the applicable requirements of Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.
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(f)    Purchaser represents that Purchaser is not subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act. Purchaser also agrees to notify the Company if Purchaser becomes subject to such disqualifications after the date hereof.
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(g)   Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents that Purchaser has consulted any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.
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5.            Voting Provisions. As a condition precedent to entering into this Agreement, at the request of the Company, Purchaser shall become a party to any voting agreement to which the Company is a party at the time of Purchaser’s execution and delivery of this Agreement, as such voting agreement may be thereafter amended from time to time (the “Voting Agreement”), by executing an adoption agreement or counterpart signature page agreeing to be bound by and subject to the terms of the Voting Agreement and to vote the Shares in the capacity of a “Common Holder” and a “Stockholder,” as such terms may be defined in the Voting Agreement.
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6.            Restrictive Legends and Stop-Transfer Orders.
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(a)   Legends. Any stock certificate or, in the case of uncertificated securities, any notice of issuance, for the Shares shall bear the following legends (as well as any legends required by the Company or applicable state and federal corporate and securities laws):
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(i)           “THE SECURITIES REFERENCED HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.”
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(ii)          “THE SECURITIES REFERENCED HEREIN MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH AND MAY BE OBTAINED FROM THE SECRETARY OF THE COMPANY AT NO CHARGE.”
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(iii)         THE TRANSFER OF THE SECURITIES REFERENCED HEREIN IS SUBJECT TO CERTAIN TRANSFER RESTRICTIONS SET FORTH IN THE COMPANY’S BYLAWS AND STOCK PLAN, COPIES OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS. THE COMPANY SHALL NOT REGISTER OR OTHERWISE RECOGNIZE OR GIVE EFFECT TO ANY PURPORTED TRANSFER OF SECURITIES THAT DOES NOT COMPLY WITH SUCH TRANSFER RESTRICTIONS.”
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(iv)         Any legend required by the Voting Agreement, as applicable.
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(b)   Stop-Transfer Notices. Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.
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(c)   Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.
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(d)          Required Notices.  Purchaser acknowledges that the Shares are issued and shall be held subject to all the provisions of this Section 6, the Certificate of Incorporation and the Bylaws of the Company and any amendments thereto, copies of which are on file at the principal office of the Company. A statement of all of the rights, preferences, privileges and restrictions granted to or imposed upon the respective classes and/or series of shares of stock of the Company and upon the holders thereof may be obtained by any stockholder upon request and without charge, at the principal office of the Company, and the Company will furnish any stockholder, upon request and without charge, a copy of such statement. Purchaser acknowledges that the provisions of this Section 6 shall constitute the notices required by Sections 151(f) and 202(a) of the Delaware General Corporation Law and the Purchaser hereby expressly waives the requirement of Section 151(f) of the Delaware General Corporation Law
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that it receive the written notice provided for in Sections 151(f) and 202(a) of the Delaware General Corporation Law within a reasonable time after the issuance of the Shares.
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7.            No Employment Rights. Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a parent, subsidiary or affiliate of the Company, to terminate Purchaser’s employment or consulting relationship, for any reason, with or without cause.
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8.            Waiver of Statutory Information Rights. Purchaser acknowledges and understands that, but for the waiver made herein, Purchaser would be entitled, upon written demand under oath stating the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the Company’s stock ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the Company, if any, under the circumstances and in the manner provided in Section 220 of the Delaware General Corporation Law (any and all such rights, and any and all such other rights of Purchaser as may be provided for in Section 220, the “Inspection Rights”). In light of the foregoing, until the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, Purchaser hereby unconditionally and irrevocably waives the Inspection Rights, whether such Inspection Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenants and agrees never to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any claim, action, cause of action, or other proceeding to pursue or exercise the Inspection
Rights. The foregoing waiver applies to the Inspection Rights of Purchaser in Purchaser’s capacity as a stockholder and shall not affect any rights of a director, in his or her capacity as such, under Section 220. The foregoing waiver shall not apply to any contractual inspection rights of Purchaser under any written agreement with the Company.
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9.            Miscellaneous.
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(a)   Governing Law. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of California, without giving effect to principles of conflicts of law. For purposes of litigating any dispute that may arise directly or indirectly from this Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the state of California and agree that any such litigation shall be conducted only in the courts of California or the federal courts of the United States located in California and no other courts.
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(b)   Entire Agreement. This Agreement, sets forth the entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof.
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(c)   Amendments and Waivers. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in
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writing signed by the parties to this Agreement.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.
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(d)   Successors and Assigns. Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company.
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(e)   Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature page, at the most recent address set forth in the Company’s books and records.
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(f)    Severability. If one or more provisions of this Agreement are held to be unenforceable under Applicable Law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.
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(g)   Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.
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(h)   Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement. Execution of a facsimile or scanned copy will have the same force and effect as execution of an original, and a facsimile or scanned signature will be deemed an original and valid signature.
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(i)    Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to this Agreement or any notices required by applicable law or the Company’s Certificate of Incorporation or Bylaws by email or any other electronic means. Purchaser hereby consents to (i) conduct business electronically (ii) receive such documents and notices by such electronic delivery and (iii) sign documents electronically and agrees to participate through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
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(j)     California Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.
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[SIGNATURE PAGE FOLLOWS]
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The parties have executed this Exercise Agreement as of the date first set forth above.
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	THE COMPANY:

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	ROMEO SYSTEMS, INC.

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	By:
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	(Signature)

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	Name:
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	Title:
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	Address:

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	PURCHASER:

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	(PRINT NAME)

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	(Signature)

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	Address:

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	Email:
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I,                                               , spouse of                                   (“Purchaser”), have read and hereby approve the foregoing Agreement. In consideration of the Company’s granting my spouse the right to purchase the Shares as set forth in the Agreement, I hereby agree to be bound irrevocably by the Agreement and further agree that any community property or other such interest that I may have in the Shares shall hereby be similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise or waiver of any rights under the Agreement.
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	Spouse of Purchaser (if applicable)

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EXHIBIT B
EMPLOYMENT AGREEMENT

​Exhibit 10.17
BATTERY RECYCLING AGREEMENT
This BATTERY RECYCLING AGREEMENT (this "Agreement") is made this 2nd day of October, 2020 (the "Effective Date") by and among Heritage Battery Recycling, LLC, an Indiana limited liability company, an affiliate of Heritage Environmental Services, Inc. (“HES”), having its principal office and place of business at 6510 Telecom Drive, Indianapolis, Indiana, 46278 ("HBR"), and Romeo Systems Inc., a Delaware corporation ("Romeo").
RECITALS:
WHEREAS, Romeo is a manufacturer of lithium ion battery packs (“Battery Packs”) for sale to and use by commercial vehicle original equipment manufacturers (“OEMs”);
WHEREAS, HBR has intellectual property, proprietary knowledge and specialized know-how with regard to processing, recycling and refurbishing lithium ion battery packs, including without limitation, Battery Packs (the “HBR Recycling Process”);
WHEREAS, HBR desires to construct, and Romeo desires to invest in and supply Battery Packs for processing through, a facility for battery reuse and recycling (the “System”), located at HES’s facility in Coolidge, Arizona (the “Facility”), subject to and in accordance with the terms and conditions set forth herein; and
WHEREAS, in addition to processing Battery Packs supplied by Romeo and its customers, the parties desire that the System become the end-of-life recycler of Battery Packs for OEMs in North America;
NOW, THEREFORE, in consideration of the premises, the undertakings of the parties in this Agreement and other good and valuable consideration, it is agreed as follows:
Article 1          Definitions.
1.1.      "Affiliate" shall mean any individual, partnership, corporation, limited liability company, trust, or other Entity directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with a party to this Agreement.  The term "control," as used in the immediately preceding sentence, means, with respect to a corporation the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation, and, with respect to any individual, partnership, trust or other Entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies thereof.
1.2.      "Entity" shall mean any association, corporation, general partnership, limited partnership, limited liability partnership, limited liability company, joint stock association, joint venture, firm, trust, business trust, cooperative, or foreign associations of like structure.
Article 2          Requirements.
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This Agreement and the obligations of the parties hereto hereunder are subject to and contingent upon (i) the closing of Romeo’s financing and capital raise transaction currently in process (the “Financing”) and (ii) Romeo receiving upon such closing at least two hundred million dollars ($200,000,000) in net proceeds from the Financing after payment of expenses.
Article 3          Investment and Development of the System.
3.1.      HBR will design, scope, build and operate the System in accordance with the parameters determined by HBR based on its experience and know-how and in consultation with Romeo, such that it can process Battery Packs in accordance with Article 4.  HBR will be the sole owner of the System.
3.2.      Concurrently with the closing of the Financing, Romeo will pay to HBR thirty-five million dollars ($35,000,000) as Romeo’s portion of the System costs.  For the avoidance of doubt, such amount does not include any amount relating to the pilot program described in Section 7.4 and on Exhibit A.
3.3.      After the System is operational, HBR will refurbish and recycle Battery Packs using the System and the HBR Recycling Process.  In addition, after commissioning of the System, HBR will establish quality assurance and control procedures applicable to such processing.
3.4.      HBR will be responsible for the operation, maintenance and repair of the System and all costs related thereto (“System Costs”), provided that, in the event that there is an operating shortfall (as determined in accordance with generally accepted accounting principles consistently applied with respect to HBR and its Affiliates) due to the volume of Battery Packs processed, each of HBR and Romeo will fund such shortfall System Costs, with HBR responsible for seventy percent (70%) and Romeo responsible for thirty percent (30%) of any such shortfall.  Within thirty (30) days after the end of each calendar quarter during the Term, HBR will provide Romeo with a summary of Systems Costs for such calendar quarter.
Article 4          Processing of Battery Packs.
4.1.      HBR and Romeo agree that it is the intent of the parties that the System be used to process both Battery Packs supplied by Romeo and its customers (“Romeo Battery Packs”) and Battery Packs supplied by other parties (“Third Party Battery Packs”), provided that, to the extent reasonably practicable and allowable pursuant to HBR’s quality assurance and control procedures, processing of Romeo Battery Packs will take precedence over processing of Third Party Battery Packs.
4.2.      HBR reserves the right to reject any Battery Pack based on criteria determined by HBR and provided to Romeo and return such Battery Pack(s) to the sender at the sender’s sole cost and expense.
4.3.      Battery Packs received at the Facility for processing using the System shall be processed in 1 of the following manners, as determined by HBR:
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4.3.1.   Redeployment (the “Redeployment Option”) of the Battery Pack, which may be elected if the useful life of the Battery Pack is recoverable for placement to either (a) resell for a secondary use application (e.g., solar power storage or redundant power supply) or (b) donate to a charitable organization (e.g. a solar array for remote island locations);
4.3.2.   Recycling (the “Recycling Option”) of the Battery Pack to precursor or secondary use material through the System; or
4.3.3.   Disposing (the “Disposal Option”) of the Battery Pack if it has no recoverable attributes or it has hazardous processing considerations.
4.4.      Pricing for the services hereunder with respect to each of the Redeployment Option, the Recycling Option and the Disposal Option shall be determined and adjusted on a periodic basis by HBR in accordance with the pricing policies determined and updated on a periodic basis by HBR or as otherwise mutually agreed by the parties hereto.  HBR’s prices for any services it provides with respect to Romeo Battery Packs at any time shall be no higher than the prices it then charges its other customers for such services.  For Battery Packs supplied by Romeo, HBR shall invoice Romeo monthly based on Battery Packs processed during the preceding month.  Romeo shall remit payment of undisputed amounts to HBR within thirty (30) days of receipt of such invoice.  HBR shall be entitled to set any past due undisputed amounts against payments of Romeo Profit Share (as defined below) at the election of HBR.
Article 5          Term.
5.1.      The term of this Agreement shall commence on the Effective Date and shall continue for a period of ten (10) years, unless earlier terminated pursuant to this Agreement (the "Initial Term").  Upon the expiration of the Initial Term, the Agreement shall automatically renew for successive one (1) year terms (each a "Renewal Period" and each Renewal Period, collectively with the Initial Term, the "Term").
Article 6          Profit Sharing; Future Expansion.
6.1.      HBR shall pay to Romeo thirty percent (30%) of the Net Profit (as determined by HBR’s accountants in accordance with Generally Accepted Accounting Principles, consistently applied with respect to HBR and its Affiliates) generated by the System (the “Romeo Profit Share”).  The Romeo Profit Share shall be paid quarterly on or before the thirtieth (30th) day after the end of the applicable calendar quarter.  Concurrently with each payment of the Romeo Profit Share, HBR will provide a financial report detailing the calculation of Net Profit for the applicable period.  Romeo may audit HBR’s books and records one (1) time per calendar year during the Term for purposes of verifying the calculation of the Romeo Profit Share, which audit will be conducted at a time and place mutually agreeable to HBR and Romeo, provided that, Romeo may conduct more than one (1) audit per calendar year if Romeo can demonstrate reasonable cause that HBR has incorrectly calculated the Romeo Profit Share.  The Romeo Profit Share will not apply to any Battery Packs processed other than through the System and/or any future lithium ion battery
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processing locations for which Romeo has supplied at least thirty percent (30%) of the capital requirements.
6.2.      In the event that HBR determines to develop any future lithium ion battery processing location in North America or Europe, it shall first provide written notice of such intent to Romeo (a “New Site Notice”).  The New Site Notice will provide reasonable detail with regard to such new location as well as the anticipated cost, including all information that would be deemed material by a reasonable person considering an investment in such new site.  Romeo shall have the right to participate in the development of such new location on terms and conditions mutually agreeable to HBR and Romeo, provided that, unless HBR agrees otherwise, Romeo shall be required to provide at least thirty percent (30%) of the required capital for such project.  To exercise this option, Romeo shall provide HBR with written notice of an intent to proceed within thirty (30) days after receipt of the New Site Notice (an “Exercise Notice”).  A failure to provide an Exercise Notice within such time period shall be deemed to be a declination to exercise such right and Romeo shall have no further rights with respect to such project.  If Romeo timely delivers an Exercise Notice, HBR and Romeo will cooperate in good faith to agree upon terms for the new project within thirty (30) days after HBR’s receipt of the Exercise Notice.  If, despite such good faith efforts, HBR and Romeo are unable to agree on terms during such time period, HBR may develop the project without Romeo and Romeo will have no further rights with respect to such project.
Article 7          Other Agreements.
7.1.      If Romeo notifies HBR in writing of its desire for a location in Europe to receive, prepare and safely package for shipping Battery Packs, HBR will work in good faith with Romeo to identify and/or develop such a facility, and the parties will agree on a mutually acceptable cost sharing and minimum volume requirement such that the Battery Packs can be sent from such location to the Facility for processing through the System in an economically advantageous way.  So long as both HBR and Romeo use good faith efforts to develop such a facility, neither shall be obligated to proceed with such a facility if the other party does not find the cost sharing or minimum volume proposals acceptable in its reasonable discretion.
7.2.      In consideration for developing and operating the System in accordance with this Agreement, so long as HBR is not in breach of its obligations under this Agreement, HBR shall be Romeo’s exclusive worldwide provider for recycling and/or disposing of Battery Packs, provided that Romeo shall in good faith recommend HBR to its customers, but a customer may use another provider of recycling or disposal services if such customer desires and provided further that Romeo may use another provider of recycling or disposal services in any geographic location in which HBR does not have an appropriate facility, if HBR is unable to timely meet all of Romeo’s needs for recycling or disposal services or if HBR rejects any Romeo Battery Packs.  For the avoidance of doubt, Romeo acknowledges and agrees that the Facility does constitute such an appropriate facility for North America and Europe.
7.3.      Nothing in this Agreement shall grant any rights in any intellectual property owned by HBR, including without limitation, the HBR Recycling Process, to Romeo.  HBR will remain
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the sole and exclusive owner of all such intellectual property and any and all Improvements thereon.  To the extent that Romeo were to have any rights in any such Improvements, Romeo hereby acknowledges and agrees that all such rights shall be immediately assigned to HBR, and Romeo will take all actions and execute all documents and instruments determined by HBR to be necessary or advisable to effectuate the foregoing.  Nothing in this Agreement shall grant any rights in any intellectual property owned by Romeo to HBR.  Romeo will remain the sole and exclusive owner of all such intellectual property and any and all Improvements thereon.  To the extent that HBR were to have any rights in any such Improvements, HBR hereby acknowledges and agrees that all such rights shall be immediately assigned to Romeo, and HBR will take all actions and execute all documents and instruments determined by Romeo to be necessary or advisable to effectuate the foregoing. “Improvement” with respect to any underlying intellectual property means any enhancement or new development that directly and particularly relates to such underlying intellectual property.
7.4.      HBR hereby agrees that from and after execution of this Agreement HBR and HES will participate with Romeo in a commercial vehicle pilot and vehicle conversion pilot program with respect to using Romeo Battery Packs in HBR and HES, and their Affiliates’, vehicles.  The pilot program will be in accordance with the terms set forth on Exhibit A.
Article 8          Warranty/Limitations on Liability.
8.1.      Romeo warrants that it has good and marketable title to Battery Packs supplied by it, or will arrange for transfer of title for its customers sending Battery Packs for processing using the System.
8.2.      HBR warrants that it is engaged in the business of performing services with respect to recycling and disposal of materials and has the requisite expertise to develop and operate the System as agreed to by Romeo and HBR hereunder.  HBR will operate the System in a safe and workmanlike manner without violation of any intellectual property rights of any person.
8.3.      Each party hereto represents and warrants that, in the execution and performance of this Agreement, such party shall comply with all applicable provisions of federal, state and local laws, ordinances, rules, codes and regulations, and that the Battery Packs have been supplied in compliance with all applicable provisions of federal, state and local laws, ordinances, rules, codes and regulations.
8.4.      Neither party shall be liable to the other, in any event, for special, incidental, consequential, statutory or punitive damages.  The term "consequential damages" shall include, but not be limited to, loss of anticipated profits, loss of use, loss of revenue, business interruption, cost of capital and damage or loss of other property or equipment.
Article 9          Force Majeure.
9.1.      The failure or inability of either party to timely perform any of its obligations under this Agreement shall not constitute a default or give rise to liability to the other party if the failure
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or inability is caused by a Force Majeure Event (as defined below) and such delay in or failure of performance could not have been avoided or mitigated by the affected party’s reasonable adherence to industry standards and common practices.
9.2.      As used in this Agreement, the term "Force Majeure Event" means and includes act of God, nature or the public enemy, operational malfunction or interruption, fire, storm, earthquake, flood, drought, severe adverse weather conditions (including the inability to perform excavation activities due to frozen ground conditions), perils of the sea, riots, sabotage, embargo, war (whether or not declared and whether or not the United States is a participant), strikes, lockouts, labor disputes, epidemics, pandemics (including as it relates to COVID-19), inability to obtain labor or materials or reasonable substitutes therefor, governmental restrictions, governmental regulations, governmental controls, enemy or hostile government action, civil commotion, the effects of compliance with a court order or order of an administrative agency,  or a governmental authority failing to grant or rejecting a governmental approval that is required to construct or operate the Facility in material compliance with this Agreement.  Neither party shall be required to resolve labor disputes, or disputes with third parties such as suppliers, except in accordance with its business judgment as to its best interest.
9.3.      Upon the occurrence of a Force Majeure Event:  (i) the affected party shall promptly notify the other party of the existence of the Force Majeure Event, its expected duration, and the estimated effect upon its ability to perform its obligations under this Agreement; and (ii) the affected party shall proceed promptly and in a commercially reasonable manner to overcome the Force Majeure Event.  The affected party shall promptly notify the other party when the Force Majeure Event has ceased to affect its ability to perform.
Article 10        Termination.
10.1.    Either party shall have the right to terminate this Agreement effective upon written notice to the other party (the "Defaulting Party") if one or more of the following described events of default shall occur:
10.1.1. the Defaulting Party fails to materially comply with any material term or requirement of this Agreement and such failure to comply is not cured ninety (90) days after written notice thereof; provided, however, that where such a breach is capable of remedy, if a failure to comply cannot be cured within ninety (90) days, this Agreement shall not terminate under this provision if the Defaulting Party commences, and thereafter diligently pursues, a cure within the ninety (90) day period to the reasonable satisfaction of the non-Defaulting Party; or
10.1.2. the Defaulting Party: (i) files a voluntary petition in bankruptcy; (ii) files a voluntary petition or answer seeking reorganization, rearrangement or readjustment of its debts or for any other relief under the bankruptcy or insolvency act or law of any jurisdiction, now or hereafter existing; (iii) files for appointment of a receiver or trustee for all or a substantial portion of its properties (where the receiver or trustee does not assume the Defaulting Party's liabilities and obligations under this Agreement); (iv) makes a general assignment for the benefit of creditors; (v) suffers issuance of a warrant of attachment or execution of similar process against a substantial
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part of its property; (vi) agrees or consents to any of the foregoing; or (vii) is unable to obtain discharge of  a petition or proceeding filed against it within sixty (60) calendar days.
10.2.    The expiration or termination of this Agreement shall not affect the rights and liabilities of either party arising during the period prior to termination or release either party from any obligation to pay any undisputed amounts owed prior to termination pursuant to this Agreement.  Romeo acknowledges and agrees that no termination or expiration of this Agreement shall entitle it to a return or refund of the payment described in Section 3.2, provided that nothing in this Section 10.2 is intended to or shall limit Romeo’s right to seek remedies (including money damages) for HBR’s breach of this Agreement.  HBR acknowledges and agrees that no termination or expiration of this Agreement due to a breach by HBR shall affect Romeo’s right to receive the Romeo Profit Share, and that nothing in this Section 10.2 is intended to or shall limit HBR’s right to seek remedies (including money damages) for Romeo’s breach of this Agreement.
Article 11        Indemnity.
11.1.    Romeo shall defend, indemnify and hold harmless HBR, its parent, Affiliates, subsidiaries, successors and assigns and their respective officers, directors and employees and agents from and against any and all third party suits, claims, losses, liabilities, demands, judgments, costs, fines, damages, penalties or expenses (including, without limitation, attorney's fees) of any nature (including, but not limited to, third party claims for personal injury, bodily injury, property damage or economic injury)(collectively, "Third Party Claims") to the extent such Third Party Claims result or arise, or allegedly result or arise from: (i) Romeo's negligent performance or non-performance, or other breach, under this Agreement; (ii) any negligent actions taken by any Romeo personnel or its agents, representatives or invitees or (iii) any defect in the design or manufacture of Romeo Battery Packs that was not known by, and would not in the exercise or reasonable diligence have become known by, HBR (collectively,  "HBR Damages").
11.2.    HBR shall defend, indemnify and hold harmless Romeo, its parent, Affiliates, subsidiaries, successors and assigns and their respective officers, directors and employees and agents from and against any and all Third Party Claims to the extent such Third Party Claims result or arise, or allegedly result or arise from: (i) HBR's negligent performance, non-performance or other breach under this Agreement; or (ii) any negligent actions taken by any HBR personnel or its agents, representatives or invitees (collectively, "Romeo Damages").
11.3.    Within fifteen (15) days following receipt by Romeo or HBR, as the case may be (respectively, an "Indemnified Person"), of notice of the commencement of any claim for which indemnity is sought pursuant to Section 11.1 or 11.2, as the case may be, such Indemnified Person will, if an indemnifying claim is to be made against the other party pursuant to Section 11.1 or 11.2, as the case may be (the "Indemnifying Person"), give notice to the Indemnifying Person of the commencement of such claim; provided that the failure to notify the Indemnifying Person will not relieve the Indemnifying Person of any liability that it may have to any Indemnified Person, except to the extent that the Indemnifying Person demonstrates that the defense of such action is materially prejudiced by the Indemnified Person's failure to give such notice.
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11.4.    The Indemnifying Person will be entitled to participate in such proceeding and, to the extent that it wishes (unless the Indemnifying Person is also a party to such proceeding and the Indemnified Person determine in good faith that joint representation would be inappropriate), to assume the defense of such proceeding with counsel reasonably satisfactory to the Indemnified Person and, after notice from the Indemnifying Person to the Indemnified Person of its election to assume the defense of such proceeding, the Indemnifying Person will not, as long as it diligently conducts such defense, be liable to the Indemnified Person under this Article 10 for any fees of other counsel or any other expenses with respect to the defense of such proceeding, in each case subsequently incurred by the Indemnified Person in connection with the defense of such proceeding.  If the Indemnifying Person assumes the defense of a proceeding, no compromise or settlement of any claims made in that proceeding may be effected by the Indemnifying Person without the Indemnified Person's consent (which shall not be unreasonably withheld) unless (i) there is no admission by the Indemnified Person of any violation of applicable law or any violation of the rights of any person or any finding of the same, and there is no effect on any other claims that may be made against the Indemnified Person, and (ii) the sole relief provided is monetary damages that are paid in full by the Indemnifying Person.  If the Indemnifying Person fails to defend against a proceeding, subject to the limitations set forth in this Article 15, the Indemnified Person may assume control of the defense, and if the Indemnified Person shall undertake at any time to compromise such proceeding, it shall promptly notify the Indemnifying Person of its intention to do so and shall obtain the Indemnifying Person's prior written consent to any final compromise or settlement, which consent shall not be unreasonably withheld or delayed.  The parties shall provide reasonable cooperation to each other in the defense of any such claims.
11.5.    Notwithstanding the foregoing, if any Indemnified Person determines in good faith that there is a reasonable probability that a proceeding may adversely affect it other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the Indemnified Person may, at its cost, by notice to the Indemnifying Person, assume the exclusive right to defend, compromise, or settle such proceeding, but the Indemnifying Person will not be bound by any determination of a proceeding so defended or any compromise or settlement effected without its consent (which may not be unreasonably withheld, conditioned or delayed).  This Article 10 shall survive expiration or earlier termination of this Agreement and shall be unlimited in amount.
11.6.    UNDER NO CIRCUMSTANCES SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, OR OTHER INDIRECT LOSS OR DAMAGES (INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, LOSS OF REVENUE, LOSS OF USE, LOSS OF OPERATION TIME, PRODUCT OR BUSINESS INTERRUPTION, HOWEVER CAUSED), PUNITIVE, OR EXEMPLARY DAMAGES OR COSTS HOWSOEVER CAUSED, AND EACH PARTY HEREBY EXPRESSLY WAIVES ITS RIGHT TO ANY SUCH DAMAGES.
Article 12        Confidentiality.
12.1.    In carrying out this Agreement, all information disclosed by one party (hereafter the "Disclosing Party") to the other party (hereafter the "Receiving Party") shall be deemed to be
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"Confidential Information". Confidential Information includes, but is not limited to, the terms and conditions of this Agreement, business and technical information and data, whether communicated in oral, written, graphic, physical or electronic form, as well as information or data generated or derived as a result of the discussions hereunder. Confidential Information shall be in writing marked confidential at the time it is received by a Receiving Party or, if first disclosed in some other manner, shall be documented in writing as confidential by the Disclosing Party within thirty (30) days of such disclosure. Such documentation shall be promptly transmitted to the Receiving Party.  Each party covenants that neither it nor its officers, directors, employees, owners, consultants and Affiliates (collectively, "Representatives") shall use the other party's Confidential Information nor disclose the same to any third party, without the express, written consent of the other party; provided, however, each party shall be permitted to disclose Confidential Information to its Representatives as may be necessary to perform under this Agreement; provided, further, that the Receiving Party will inform its Representatives of the confidential nature of Confidential Information and cause them to agree to be bound by confidentiality obligations commensurate with those imposed by this Article 16; provided, further, each party shall be obligated for any breach of this Agreement by its Representatives.  Each party agrees to allow only those within its organization who have a legitimate need to know access to Confidential Information disclosed by the other party.  Notwithstanding the foregoing, each party hereto may disclose the terms and conditions of this Agreement (i) to its financial, legal and other advisors or to any actual or potential creditor, investor or other person similarly having a reasonable interest therein, provided that, to the extent reasonably practicable, such disclosure shall be made subject to written obligations of confidentiality that are at least as protective of the Confidential Information as this Section 12, or (ii) as required by law, regulation or the rules of any securities exchange.
12.2.    Confidential Information shall not include any information which (i) now is or hereafter becomes publicly known without wrongful act of the Receiving Party; (ii) is received from a third party who rightfully made such disclosure; (iii) is approved for disclosure or use by written authorization from the Disclosing Party prior to such use; (iv) is independently developed by an employee or employees of the Receiving Party that did not receive the information, directly or indirectly, from the Disclosing Party; or (v) was already in the possession of the Receiving Party prior to receipt hereunder that was not subject to confidentiality obligations.  In addition, a party may disclose Confidential Information required to be disclosed by operation of law, governmental regulation or court order, provided that the Receiving Party gives the Disclosing Party notice of such required disclosure prior to making such disclosure, and the Receiving Party uses all reasonable effort to secure confidential protection for such information, provided, further, that prompt written notice thereof shall be given to the Disclosing Party by the Receiving Party hereto to enable the Disclosing Party or parties to seek a protective order or otherwise prevent such disclosure.
12.3.    Upon request from the Disclosing Party after termination or expiration of this Agreement, the Receiving Party shall promptly return all originals and copies of Confidential Information as well as permanently delete all electronically or otherwise stored Confidential Information from all systems containing such Confidential Information, except that one (1) copy may be retained in a secure area solely as a measure of the Receiving Party's obligations hereunder.
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The Receiving Party, however, will have no obligation to retrieve and destroy Confidential Information stored and retained on its or its Representatives' back-up data storage systems and tapes as part of their respective ordinary course procedures or as required by law.
12.4.    This Agreement does not authorize either party to use the other party's Confidential Information for development, experimentation, optimization, patent applications or product registration.
12.5.    Each party agrees that it shall not knowingly export, directly or indirectly, any United States source technical data acquired from a United States based company, or any direct product of that technical data, to any country for which the United States government or any agency thereof at the time of export requires an export license or other approval, without first obtaining such license or approval, when required by applicable United States law.
12.6.    With respect to Confidential Information of either party that constitutes a trade secret under applicable law, obligations under this Article 11 shall survive this Agreement and bind each party until such time that such Confidential Information no longer constitutes a trade secret under applicable law, and with respect to all other Confidential Information, for a period of five (5) years.  It is agreed that a breach of any of the covenants or obligations contained in this Article 11 may result in a material and irreparable injury to HBR, or Romeo, as applicable, for which there is no adequate remedy at law, and that injury and damages to HBR, or Romeo, as applicable, resulting from such breach will be immeasurable.  Notwithstanding Article 18, and without limiting the rights or remedies, both legal and equitable, available to HBR, or Romeo, as applicable, in the case of an actual or threatened breach, HBR, or Romeo, as applicable, shall be entitled to seek and obtain a temporary restraining order and/or a preliminary or permanent injunction against any party, which shall prevent such party from engaging in any activities prohibited by, or to seek and obtain such other relief against the party as may be required to specifically enforce any of the covenants or obligations contained in this Article 11.  The parties further agree to waive any requirement for any party to secure or post any bond in connection with such remedies.
12.7.    Except as required under applicable law, neither party hereto shall make any public announcement of the subject matter described in this Agreement without the other’s prior written consent.
Article 13        Complete Agreement, Modification.
13.1.    The parties contemplate that, from time to time during the term of this Agreement, either or both of the parties will utilize various documents in order to conveniently facilitate the delivery and processing of Battery Packs, and that these documents (including, but not limited to, purchase orders, delivery orders and negotiable and non-negotiable instruments of title) may include terms and conditions different from those of this Agreement.  The parties agree that these documents shall not modify the terms and conditions of this Agreement, and that the terms and conditions contained in such documents that purport to modify this Agreement shall have no force or effect. The parties also contemplate that there will be routine dealings between their employees.
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Each party acknowledges that the employees of the other party have no authority to waive, modify or interpret this Agreement.  Each party agrees that statements, representations, warranties and promises of the other party's employees supplemental to, or varying from, the terms and conditions of this Agreement shall not be binding and each party shall conduct its business without reliance upon, or regard to, such statements, representations, warranties and promises.
13.2.    This Agreement may be amended only by a written document signed by both of the parties that specifically references this Article 13 and this Section 13.2 cannot be orally waived or amended.
13.3.    This Agreement contains the entire agreement of the parties relating to the subject matter set forth herein and supersedes any and all prior agreements, including without limitation, the Memorandum of Understanding between HES, Heritage Research Group and Romeo dated as of August 29, 2020.
Article 14        Assignment.  Neither party shall assign or transfer any of its rights or obligations arising from this Agreement, either directly or indirectly, expressly or by operation of law without the prior written consent of the other party and any attempt to effect such an assignment without such consent shall be of no force or effect; provided that either party may assign or transfer any of its rights or obligations to its affiliates or, in the event of a change in control of such party or a sale of substantially all of its assets, its successors-in-interest.
Article 15        Notices.
15.1.    Any notice to be given or to be served upon HBR or Romeo in connection with this Agreement must be in writing and will be deemed to have been given and received when delivered to the address specified by the party to receive the notice. Such notices shall be given to a party at the addresses specified below.  Any party may, at any time by giving five (5) days' prior written notice to the other parties, designate and other address in substitution of the foregoing address to which notice will be given.
If to HBR:
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c/o Heritage Environmental Services, LLC
6510 Telecom Drive, Suite 400
Indianapolis, Indiana  46278
Attn: Ali Alavi
Telephone: (317) 334-7067
E-mail:  aalavi@heritage-enviro.com
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with a copy (that shall not
constitute notice) to:
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Ice Miller LLP
One American Square, Suite 2900
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Indianapolis, IN 46282
Attn:    Joshua L. Christie
Facsimile:        (317) 592-5476
Telephone:      (317) 236-5802
E-mail:  joshua.christie@icemiller.com
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If to Romeo:
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4380 Ayers Avenue
Vernon, California  90058
Attn:  Lionel Selwood, President
Telephone: 323 679 4295
E-mail: lionel@romeopower.com
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with a copy (that shall not
constitute notice) to:
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Paul Hastings LLP
1999 Avenue of the Stars, 27th Floor
Century City, California  90067
Attn:    David Hernand
Telephone: (310) 620-5750
E-mail:  davidhernand@paulhastings.com
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All notices so sent shall be effective on the date of receipt if delivered personally; three (3) business days after posting if sent by certified mail, return receipt request, postage prepaid; one (1) business day after posting if sent by facsimile or E-mail, confirmed within twenty-four (24) hours by first class mail, postage prepaid; or one (1) business day after sending if sent by overnight courier.
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Article 16       Independent Contractor.  Each party hereto shall be an independent contractor in connection with this Agreement and any Services which are performed pursuant to this Agreement and shall assume all of the rights, obligations, and liabilities applicable to it as such independent contractor. Any provisions in this Agreement which may appear to give one party the right to direct the other party as to the details of performing under this Agreement or to exercise a measure of control over such performance or the Services, shall be construed to mean that such party shall follow the other party's directions solely in relation to the results desired from the performance under this Agreement.  No HBR or Facility personnel shall be considered an employee or agent of Romeo, nor shall any Romeo personnel be considered an employee or agent of HBR. No partnership, co-venture, or joint-employer relationship shall be created by virtue of this Agreement or a contract arising from the performance of Services under this Agreement. All persons respectively engaged by HBR or Romeo as employees or agents, or otherwise, to respectively assist HBR or Romeo in the performance of any Services or any other performance
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under this Agreement shall be of each party's own respective selection, for its own account, at its own expense, and under its supervision.
Article 17        Interpretation.  The headings of the clauses of this Agreement have been inserted for convenience only and they shall not affect its interpretation.
Article 18        Survival.  The provisions of this Agreement that by their nature are intended to survive the termination, cancellation, completion or expiration of the Agreement shall continue as valid and enforceable obligations of the parties notwithstanding any such termination, cancellation, completion or expiration.
Article 19        Governing Law; Choice of Forum; Dispute Resolution.
19.1.    This Agreement of the parties under this Agreement shall be governed by, and interpreted and enforced in accordance with, the laws of the State of Delaware without reference to principles of conflicts of laws.  The parties to this Agreement hereby irrevocably agree and consent to the exclusive jurisdiction of the courts of the State of Delaware and the federal courts of the United States sitting in Wilmington, Delaware, for the adjudication of any matters arising under or in connection with this Agreement.  The parties to this Agreement hereby irrevocably waive, to the fullest extent they may effectively do so under applicable law, any objection which they may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in any such court, and any claim that such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
19.2.    The parties agree to work in good faith to resolve issues that may arise under this Agreement that are not informally resolved, pursuant to the following process:
a)         The dispute is to be presented by one party to the other party in a written summary, with appropriate attachments.
b)         The party receiving a written dispute shall respond with a dispute response, a similar written document as the written dispute summary, within ten (10) working days of receipt of the written dispute summary.
c)         Each party's document shall include the name and contact information of a company executive that shall have authority to resolve the dispute.
d)         The two executives shall attempt to resolve the dispute in the ten (10) working days after receipt of the dispute response.
e)         Thereafter, the parties may take their dispute to any court of the State of Indiana or the federal courts of the United States sitting in Wilmington, Delaware, as further described in Section 19.1 above.
Article 20        Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, invalid, unreasonable, or unenforceable under the present or
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future laws effective during the term of this Agreement, such provision will be fully severable; this Agreement will be construed and enforced as if such illegal, invalid, unreasonable, or unenforceable provision had never comprised a part of this Agreement; and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, unreasonable, or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid, unreasonable, or unenforceable provision, if permitted under applicable law, a court of competent jurisdiction will add automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid, unreasonable, or unenforceable provision as may be possible and be legal, valid, reasonable, and enforceable.
Article 21        Parties in Interest.  This Agreement shall be binding upon, and shall inure to the benefit of, the parties and their respective legal representatives, successors and assigns.  Nothing herein is intended to confer any rights upon any person other than Romeo and HBR.
Article 22        Entire Agreement.  This Agreement and other documents which are incorporated in this Agreement by reference, constitute the entire Agreement of HBR and Romeo regarding the subject matter of this Agreement and there are no representations, inducements, promises, guarantees, warranties, agreements, arrangements, undertakings, oral or written, between HBR and Romeo regarding such subject matter other than those expressly set forth in this Agreement and duly executed in writing.
Article 23        Exhibits.  The exhibits attached hereto are made a part of this Agreement as if the contents of the exhibits were fully set forth herein.  These exhibits may be amended or modified from time to time upon the mutual written consent of the parties.
Article 24        Non-Waiver.  The failure of either party to insist upon strict performance of any provision hereof shall not constitute a waiver of, or estoppel against asserting, the right to require such performance in the future, nor shall it be a waiver or estoppel with respect to later breach of a similar nature or otherwise, unless such waiver be expressed in writing and signed by the party to be bound.
Article 25        Multiple Counterparts.  This Agreement may be executed in several counterparts, each of which will be deemed to be an original but all of which will constitute one and the same instrument.  However, in making proof with respect to this Agreement it will be necessary to produce only one copy hereof signed by the party to be charged.
Article 26        Authority.  Any legal Entity who is a party to this Agreement, including, but not limited to any corporation, limited liability company, partnership, or trust, represents to the other party that this Agreement and the transaction contemplated in this Agreement and the execution and delivery of this Agreement have been duly authorized by all necessary corporate, limited liability company, partnership, or trust proceedings and actions including, without limitation, the action on the part of the directors, officers, and agents of the legal Entity.
Article 27        Negotiated Agreement.  This Agreement and the documents to be executed pursuant to this Agreement are the result of negotiations among the parties.  Accordingly, no single
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party to this Agreement shall be deemed to be the author of this Agreement or the resulting documents, and there shall be no presumption that this Agreement or any of such documents are to be construed for or against any party to this Agreement on the basis of authorship.
[Signatures Appear on the Following Page]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first set forth above.
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	HERITAGE BATTERY RECYCLING, LLC
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	By: 
	/s/ Chad Peterson
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	Name:
	Chad Peterson
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	Title:
	Authorized Signer
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	ROMEO SYSTEMS INC.
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	By:
	/s/ Michael Patterson
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	Name:
	Michael Patterson
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	Title:
	CEO
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EXHIBIT A
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COMMERCIAL VEHICLE PILOT PROGRAM TERMS
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1.   Romeo will finance  the building of the infrastructures to support a short haul BEV program and a long-haul BEV program and to source 10 BEV commercial vehicles from Romeo Power for the purpose of conducting a one-year pilot to determine the feasibility of the BEV fleet conversion program on terms mutually agreed upon by HBR, HES and Romeo.  Romeo agrees that HES will incur costs in connection with the program and that Romeo will reimburse such costs to HES on a monthly basis during the pilot program.
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2.   Charging stations will be provided by Romeo and installed at HES locations in Signal Hill, Fontana, Coolidge and Hayward for purposes of the pilot.
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3.   Pilot success criteria will be mutually agreed upon by HBR, HES, Romeo and OEMs.
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4.   A successful pilot (as determined based on the mutually agreed success criteria) will waterfall to a tiered supply agreement (between HES Affiliates, referral partners and Romeo) for 500 plus vehicles procured through Romeo, on terms and conditions acceptable to each of HBR, HES and Romeo.
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5.   Romeo will select the OEMS for the pilot and the ensuing supply agreement and the BEVs therefor will utilize Battery Packs not smaller than 150 kWh.
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6.   Romeo will endeavor to cause supply agreements between Romeo Power and OEM’s to include battery recycling operations and toll processing arrangements using the System, provided that, although Romeo will recommend HBR, Romeo’s OEMs may have their end-of-life batteries processed at any facility of their choice.
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7.   Notwithstanding the foregoing, all expenses incurred by Romeo in connection with the pilot or otherwise under this Exhibit A, including but not limited to the building of infrastructure, sourcing of BEV commercial vehicles, reimbursement of HES costs, provision, and the delivery and installation of charging stations, will be capped at $10,000,000.

A-1

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