AXL Electric Vehicles Inc. (“AXL”)

Reservation Terms and Conditions

Reservation: This reservation agreement is made between customer(s) reserving our electric vehicle(s), you (“you”) and AXL Electric Vehicles Inc. (“AXL”). By completing your reservation online, you are agreeing to AXL’s Terms and Conditions and confirming that you are 18 years of age or older.

Effective Date: Once we receive your payment for reservation, your reservation will become effective. This payment will guarantee the estimated delivery priority of your vehicle when AXL enters in the country you have chosen.

Personal Information: To fulfill our obligations under these Terms, we may request that you provide us with specific personal information. We will handle your personal information as per our privacy policy. You are responsible for informing us of any changes in your contact information, so that we can keep you informed about your vehicle reservation and purchase.

Reservation Fee: You agree to reserve one (1) AXL vehicle (“Vehicle”) per reservation from AXL website www.axlev.com by providing a payment of $100 USD (“Reservation Fee”) to AXL. The Reservation Fee would be applied towards the purchase price of the Vehicle only when you enter into a purchase agreement with AXL.

Limited Time Free Reservation: The free reservation offer may only be available for a set period of time indicated at the time of reservation, after which the regular reservation fee will apply. Reservations may be prioritized in the order they are received by AXL, meaning those who reserve early may receive their vehicle before those who reserve later. For the limited free reservation, once you click on the reservation tab your reservation will become effective. Your reservation will indicate the estimated delivery priority of your vehicle when your Vehicle enters the country you have chosen.

Availability: Reservation does not guarantee availability of the specific model or desired configuration, as it is subject to production and delivery timelines.

Final purchase price: Reservation does not lock in a final purchase price, as pricing may be subject to change based on factors such as taxes and fees, and market demand.

Purchase Process and Agreement: Note, these reservation Terms do not constitute an order or agreement for the sale and delivery of a vehicle to you. Your reservation payment does not serve as a deposit toward payment of your vehicle, unless you enter into a purchase agreement with AXL. We will inform you when we are approaching the date to start producing your reserved Vehicle. We will prepare a distinct agreement named the “Purchase Agreement” that will show the estimated cost of your vehicle, including the base price and options if any. The Purchase Agreement will set forth the terms and conditions of the purchase of the Vehicle, including the final purchase price, payment terms, and warranty provisions. Once the production process of your vehicle is initiated, the final payment of the purchase price, taxes, title or registration fees, and delivery charges, along with the final purchase agreement, will be due upon the vehicle’s delivery.

Vehicle Specifications: AXL will provide You with the specifications of the Vehicle at the time of reservation. At the time of your reservation, the development and production of the vehicle are not yet finalized. AXL reserves the right to modify the specifications of the Vehicle at any time prior to signing of the Purchase Agreement. Prior to entering into a Purchase Agreement, you will have the chance to confirm the ultimate specifications and colour of your Vehicle. Colour of the vehicles may not appear as they look in our website and colours may vary in production of each model. You admit that your vehicle’s performance will rely on the final vehicle specifications and the model and options you choose. By consenting to these Terms, you confirm that you understand that the Vehicle specifications may change before entering into a Purchase Agreement.

Range: At present, the EPA Estimated ranges are unavailable, and any ranges given are based on our estimation of the EPA estimated ranges for the production vehicles. These approximations are created using an estimation of an EPA test cycle. By reserving a vehicle at this moment, you expressly recognize that you are not depending on any estimated ranges projected before your reservation. EPA estimated ranges are designed to be a general reference for customers to compare vehicles. Your actual range will differ based on several factors, such as battery age, driving and charging habits, temperatures, accessory usage, and other factors explained in the owner’s manual.

Delivery: AXL will deliver the Vehicle to You at a location to be determined by AXL. Delivery times are estimates only and are subject to change. There are several factors outside of AXL’s control that may impact the delivery dates, and as a result, AXL will not be liable for such delay in delivery.

Priority and Deferrals: Your reservation date will be utilized as an estimated priority to decide when you will receive an invitation to finalize your custom vehicle order. Our objective is to serve customers based on their reservation dates; however, we hold the right to rearrange reservations according to the available delivery locations and vehicle configurations. If you fail to enter into a Purchase Agreement with us within a reasonable timeframe, we may offer a purchase invitation to the next individual on the reservations list. Your reservation under these Terms cannot be transferred or assigned to another person, unless AXL provides you with a written approval upon your request.

Communication: Regardless of any previous or current decision to opt in or opt out of receiving telemarketing calls or text messages from us, our agents, representatives, affiliates, or any individuals acting on our behalf, you explicitly consent that we may contact you by reasonable means, including text messages, calls utilizing pre recorded messages, and calls and messages sent using auto telephone dialing system or an automatic texting system. We may also contact you from time to time to keep you informed about our products and services, exclusive events, and other associated activities using the contact information you provided to us throughout the reservation process. You acknowledge that you may change your decision with respect to the types of communications at any time by using the contact details available on our website and expressing your wishes to AXL in writing at info@axlev.com.

Cancellation of Reservation: You may cancel this Reservation Agreement and receive a full refund of the Reservation Fee at any time prior to entering into a purchase agreement with AXL by sending an email to reservations@axlev.com.

Governing Law: This Reservation Agreement shall be governed by and construed in accordance with the laws of Canada in which AXL is headquartered.

Limitation and liability: Our liability, subject only to applicable law, will not exceed the total amount paid by you to us under these Terms. This limit applies to all liability arising from or related to these Terms, including breach of contract, tort (including negligence), or any other legal theory. We will not be liable for any consequential, indirect, incidental, special, exemplary, punitive, or enhanced damages resulting from any breach of these Terms. This is regardless of whether such damages were foreseeable, whether we were advised of the possibility of such damages, or the legal or equitable theory upon which the claim is based.

Waiver of Disputes, Arbitrations, and Class Actions:

In the event of a dispute between us, either AXL or reserving customer may initiate the dispute resolution process by sending a written notice to the other party, specifying the nature of the dispute and the desired outcome. Such disputes can be sent to legal@axlev.com . If a dispute remains unresolved after 60 days, both parties agree to settle any disputes or claims related to these Terms through binding arbitration, rather than in court, unless either party can assert claims in a small claims court. Arbitration does not involve a judge or jury, and the arbitrator’s decision is final and binding, with limited court review. The arbitrator can award same damages and relief as a court, and must follow the Terms as a court would, including the award of injunctive and declaratory relief or statutory damages. Disputes related to the validity, application, scope, enforceability, or interpretation of the Arbitration Agreement will also be resolved by an arbitrator.

If there is no prior agreement, the Canadian Arbitration Association (CAA) will conduct the arbitration. The arbitration proceedings must follow the Consumer Arbitration Rules of the CAA which can be found on their website at www.canadianarbitrationassociation.ca or by contacting them at 1-877-862-8825. The process of arbitration will involve selecting a neutral arbitrator.

Under Arbitration Rules 3 of CAA, if a party intends to commence arbitration, they shall deliver a Notice of Arbitration to the other party and shall at the same time deliver a copy of the Notice of Arbitration to the Canadian Arbitration Association. Arbitration Rules at www.canadianarbitrationassociation.ca .

If the arbitrator does not consider your claims frivolous, we will reimburse you for the cost of the arbitration. You have the option of selecting arbitration via telephone or video, based on written submissions, or in person in your county of residence or another location agreed upon by both parties.

You and AXL agree that any disputes between us must be brought on an individual basis and not as a class member in a class, collective, consolidated, or representative action. The arbitrator does not have the authority to combine more than one claim into a single case or preside over class, collective, consolidated, or representative arbitration proceedings, unless both parties agree to it in writing. However, we also both agree that either party may bring legal action in court for injunction order against the party who infringes or misuses intellectual property rights, files bankruptcy, enforces a security interest in the vehicle by repossession, takes legal action in court to enforce the arbitrator’s decision, or requests that a court review whether the arbitrator exceeded the authority granted by this Arbitration Agreement.

Any claim or cause of action arising out of or related to these Terms must be filed within one year after such claim or cause of action arose or be barred forever, regardless of any statute or law to the contrary. If any part of this Arbitration Agreement is deemed unenforceable, it shall be severed, and the remaining parts shall be enforced. If the waiver of class action rights is deemed unenforceable in connection with a claim involving class allegations, the entire Arbitration Agreement shall be unenforceable. If multiple claims or remedies are asserted in one action and some of those claims or remedies would not be subject to arbitration, we agree that the claims or remedies that would not be subject to arbitration must be stayed until all claims or remedies subject to arbitration have been resolved. Similarly, if claims or remedies are asserted against multiple parties, some of whom are not required to arbitrate, the claims or remedies subject to arbitration must be severed.

You have the right to opt-out of the Arbitration Agreement within 60 days of signing this agreement. To do so, send an email from the email address associated with your reservation to legal@axlev.com with “Arbitration Opt-Out” in the subject line. In the body of the email, please state your request to opt-out of the arbitration provision.

Arbitration Governing Law: These terms will be governed by the Commercial Arbitration Act Canada and Canadian arbitration law.