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EXECUTION COPY MASTER NETTING AGREEMENT MASTER NETTING AGREEMENT (the
“Agreement”), dated as of July __. 2020, by and among Phunware, Inc., a Delaware
corporation with offices located at 7800 Shoal Creek Blvd, Suite 230-S, Austin,
Texas 78757 (the “Company”) and the investor signatory hereto (the “Investor”,
and together with the Company, the “Parties” and each a “Party”). WHEREAS, prior
to the date hereof, (i) the Parties have entered into that certain Securities
Purchase Agreement, dated July 14. 2020, pursuant to which, among other things,
the Investor shall, among other things, acquire a senior secured convertible
note (the “Series B Note”) issued by the Company (the “Securities Purchase
Agreement”), which is secured by a first priority perfected lien in the Investor
Note (as defined below) and (ii) the Parties have entered into that certain Note
Purchase Agreement, dated July 14. 2020, pursuant to which, among other things,
the Company shall acquire a certain secured promissory note (the “Investor
Note”) issued by the Investor (the “Note Purchase Agreement”), which is secured
by certain Eligible Assets (as defined in the Investor Note), as payment of the
purchase price of the Series B Note pursuant to the Securities Purchase
Agreement. The Note Purchase Agreement, the Investor Note, the Series B Note and
the Securities Purchase Agreement are collectively referred to herein as the
“Underlying Agreements”; WHEREAS, each Party desires to provide in this
Agreement for, among other things, when the Parties shall be required to Net (as
defined below) Obligations (as defined below) arising under the Underlying
Agreements upon the occurrence of one or more Netting Events (as defined below)
and recover against the other Party under and across the Underlying Agreements
as herein specified and to treat this Agreement and the Underlying Agreements as
a single agreement for the purposes set forth herein and the Note Purchase
Agreement and the Securities Purchase Agreement each as a “securities contract”
(11 U.S.C. § 741), or other similar agreements; and WHEREAS, the Parties desire
that the provisions of each Underlying Agreement remain in force under each
applicable Underlying Agreement to the extent such provisions are not expressly
superseded or amended hereby. NOW THEREFORE, in consideration of the mutual
agreements herein made and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, each Party agrees as follows:
1. Single Agreement. This Agreement is entered into in reliance on the Parties'
agreement that, for the purposes set forth herein, this Agreement and the
Underlying Agreements form a single integrated agreement between the Parties,
and the Parties would not otherwise enter into this Agreement and the Underlying
Agreements. The Company and the Investor hereby acknowledge and agree (a) that
the Note Purchase Agreement and the Securities Purchase Agreement each are a
“securities contract” as defined in 11 U.S.C. § 741 and that Investor shall have
all rights in respect of the Underlying Agreements as are set forth in 11 U.S.C.
§ 555 and 11 U.S.C. § 362(b)(6), and (b) that this Agreement is a “master
netting agreement” as that term is used in 11 U.S.C. § 362(b)(27) and 11 U.S.C.
§ 561 and is a “master agreement” as that term is used in 11 U.S.C. § 362(b)(6)
and that Investor shall have all rights in respect of this Agreement (and in
respect of the Underlying Agreements as incorporated herein) as are set forth in
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U.S.C. § 362(b)(27), 11 U.S.C. § 561, and 11 U.S.C. § 362(b)(6), including in
respect of both the foregoing clause (a) and the foregoing clause (b), without
limitation, all rights of credit, deduction, setoff, offset, recoupment, and
netting (collectively, “Netting” or “Net”) as set forth in this Agreement, the
Investor Note and the Series B Note. 2. Definitions. Terms capitalized herein
but not defined herein shall have the meanings given to such terms in the
Securities Purchase Agreement. In the event of any conflict or inconsistency
between a term defined herein and in any of the Underlying Agreements, such term
as used in this Agreement shall govern and have the meaning ascribed to it in
this Agreement for the purposes of this Agreement. All references to “$” shall
be to lawful currency of the United States of America, unless otherwise
specified. All references to Sections, Exhibits, and other provisions are to
Sections, Exhibits and other provisions of this Agreement unless otherwise
expressly stated. The following terms used in this Agreement are defined as
follows: “Acceleration” means the acceleration, exercise of redemption rights,
required redemption, exercise of prepayment rights or the occurrence of the
Maturity Date (as defined in the Series B Note or Investor Note, as applicable),
in whole or in part, of the Series B Note or the Investor Note, as applicable,
in accordance with this Agreement or the applicable Underlying Agreement.
“Bankruptcy Code” means Title 11 of the U.S. Bankruptcy Code. “Default” means,
as applicable, a Default (as defined in the Investor Note) or an Event of
Default (as defined in the Series B Note). “Netting Party” means the Party
exercising the right to effect any Netting hereunder or under the applicable
Underlying Agreement. “Other Party” means the Party other than the Netting
Party. “Obligation” or “Obligations” means, with respect to a Party, each and
every present or future payment or performance obligation or liability of such
Party under this Agreement or an Underlying Agreement, whether fixed, matured,
unmatured, liquidated, or unliquidated. “Remaining Investor Note Principal
Amount” means, as of any time of determination, the aggregate amount of
Principal (as defined in the Investor Note) outstanding under the Investor Note
as of such time of determination. “Unpaid Amounts” means, as of any date of
determination, the Obligations owed by one Party to the other under such
Underlying Agreements that have not been paid as of the date of determination,
whether or not such amounts are then due and payable and without regard to the
fair market value of the Series B Note or the Investor Note at such time, as
applicable. 3. Netting. (a) Event of Default Netting. At any time on or after
the occurrence of any Event of Default under the Series B Note, regardless of
whether the Holder has submitted an Event of Default Redemption Notice (as
defined in the Series B Note) and whether such Event of Default - 2 - Error!
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(as defined in the Series B Note) has been subsequently cured, the Investor may,
at its sole discretion, by written notice to the Company, Net (each, an “Event
of Default Netting”) all, or any part, of the outstanding obligations under the
Series B Note (and/or other Unpaid Amounts (as elected by the Investor in such
written notice)) by the cancellation of such portion of the outstanding
obligations under the Series B Note (and/or other Unpaid Amounts (as elected by
the Investor in such written notice)) as set forth in such written notice in
exchange for the surrender and concurrent cancellation of an equal amount of
Principal (as defined in the Investor Note) then outstanding under the Investor
Note (each, an “Event of Default Netting Principal Amount”). Upon any Event of
Default Netting, any accrued and unpaid Interest (as defined in the Investor
Note) then outstanding under the Investor Note with respect to such Event of
Default Netting Principal Amount being satisfied in such Event of Default
Netting shall be automatically cancelled as of the date of such Event of Default
Netting and, thereafter, such Event of Default Netting Principal Amount of the
Investor Note (together with any accrued and unpaid Interest (as defined in the
Investor Note) thereon then outstanding) shall be deemed to be paid in full.
Each Event of Default Netting shall be effective upon the date the Investor
delivers notice to the Company of the Investor’s election to effect such Event
of Default Netting. (b) Automatic Netting at Redemption Date. With respect to
any redemption of all, or any part, of the Series B Note, solely to the extent
such portion of the Conversion Amount (as defined in the Series B Note) subject
to such redemption includes Restricted Principal (as defined in the Series B
Note) (such aggregate amount of Restricted Principal, each, a “Redemption
Restricted Amount”), on the applicable Redemption Date (as defined in the Series
B Note), such portion of the outstanding obligations under the Series B Note
equal to such Redemption Restricted Amount shall automatically Net (each, a
“Redemption Netting”) by the cancellation of the Redemption Restricted Amount of
the outstanding obligations under the Series B Note in exchange for the
surrender and concurrent cancellation of such portion of the Investor Note with
an amount of aggregate Principal (as defined in the Investor Note) outstanding
under the Investor Note equal to such Redemption Restricted Amount (each a
“Redemption Netting Principal Amount”) and any related Restricted OID (as
defined in the Series B Note) shall be automatically cancelled in connection
therewith. Upon any Redemption Netting, any accrued and unpaid Interest (as
defined in the Investor Note) then outstanding under the Investor Note with
respect to such Redemption Netting Principal Amount being cancelled in such
Redemption Netting shall be automatically cancelled as of the date of such
Redemption Netting and, thereafter, such Redemption Netting Principal Amount of
the Investor Note (together with any accrued and unpaid Interest (as defined in
the Investor Note) thereon then outstanding) shall be deemed to be paid in full.
For the avoidance of doubt, if prior to the date of the applicable Redemption
Netting all, or any portion, of a Redemption Restricted Amount becomes
Unrestricted Principal (as defined in the Series B Note) or, with respect to an
Installment Amount (as defined in the Series B Note), subject to a Deferral (as
defined in the Series B Note) or a waiver of an Equity Conditions Failure or
such other event occurs whereafter such portion of the Redemption Restricted
Amount is not required to be redeemed on the Redemption Date in accordance with
the terms of the Series B Note (as amended, modified or waived on or prior to
such date)(each a “Reversed Redemption Restricted Amount”), solely with respect
to such Redemption Date, no Redemption Netting shall occur with respect to such
Reversed Redemption Restricted Amount and any related Restricted OID shall not
be cancelled in connection therewith. - 3 - Error! Unknown document property
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(c) Automatic Netting Upon any Bankruptcy Event of Default. Upon any Bankruptcy
Event of Default under the Series B Note, the Remaining Principal Amount as of
such time of determination, such portion of the outstanding obligations under
the Series B Note equal to the Remaining Investor Note Principal Amount shall
automatically Net by the cancellation of such portion of the outstanding
obligations under the Series B Note in exchange for the surrender and concurrent
cancellation of the entire Investor Note (each, a “Bankruptcy Event of Default
Netting”) and any related Restricted OID shall be cancelled in connection
therewith. For the avoidance of doubt, upon any Bankruptcy Event of Default
Netting, all accrued and unpaid Interest (as defined in the Investor Note) then
outstanding under the Investor Note shall be automatically cancelled as of the
date of such Bankruptcy Event of Default Netting and, thereafter, the Investor
Note shall be deemed to be paid in full and shall be null and void. Each
Bankruptcy Event of Default Netting shall be effective upon the date of the
earliest occurrence of a Bankruptcy Event (as defined in the Series B Note)
under the Series B Note. (d) Automatic Netting Upon Prohibited Transfers of the
Series B Note. If for any reason, the Series B Note or any interest in the
Investor Note is pledged, assigned or transferred to any Person other than the
Company without the prior written consent of the Investor, whether by contract,
operation of law, court order or otherwise (each, a “Prohibited Transfer”), such
portion of the outstanding obligations under the Series B Note equal to 75% of
the remaining Restricted Principal (as defined in the Series B Note) (together
with any related Restricted OID with respect thereto) then outstanding under the
Series B Note (with the remaining 25% of the Restricted Principal (together with
any related Restricted OID with respect thereto) of the Series B Note
automatically becoming Unrestricted Principal (as defined in the Series B Note)
thereunder) in exchange for the surrender and concurrent cancellation of the
entire Investor Note. For the avoidance of doubt, upon any Prohibited Transfer,
all accrued and unpaid Interest (as defined in the Investor Note) then
outstanding under the Investor Note shall be automatically cancelled as of the
date of such Prohibited Transfer and, thereafter, the Investor Note shall be
deemed to be paid in full and shall be null and void. (e) Automatic Default
Netting. Upon the occurrence of any Investor Note Acceleration (as defined in
the Investor Note), such portion of the outstanding obligations under the Series
B Note equal to the Remaining Investor Note Principal Amount shall automatically
Net by the cancellation of such portion of the Restricted Principal under the
Series B Note (together with any related Restricted OID with respect thereto) in
exchange for the surrender and concurrent cancellation of the entire Investor
Note (each, a “Default Netting”, and together with the Bankruptcy Event of
Default Netting, Redemption Netting and Event of Default Netting, collectively,
the “Netting Events”). Each Default Netting shall occur on the date of such
Investor Note Acceleration. For the avoidance of doubt, upon any Default
Netting, all accrued and unpaid Interest (as defined in the Investor Note) then
outstanding under the Investor Note shall be automatically cancelled as of the
date of such Default Netting and, thereafter, the Investor Note shall be deemed
to be paid in full and shall be null and void. (f) Miscellaneous. (i) If an
Unpaid Amount is unascertainable, the Investor may, acting in a commercially
reasonable manner, estimate the Unpaid Amount thereof and Net in respect of the
estimate, subject to accounting to the Company when the Unpaid Amount is - 4 -
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ascertained. For the avoidance of doubt, except with the written consent of the
Investor to a different application of Netting against any Unpaid Amounts, if
Unpaid Amounts exist with respect to both the Series B Notes and other
Underlying Agreements, the Netting shall be applied first to obligations under
such other Underlying Agreements (until such obligations are satisfied in full)
and thereafter to obligations under the Series B Notes. (ii) All Netting
provisions of the Investor Note, including without limitation the provisions set
forth in Section 7 of the Investor Note, are hereby incorporated in this
Agreement and made a part hereof as if such provisions were set forth herein.
(iii) The right of Netting provided for in this Section 3 is in addition to but
without duplication of, and not in limitation of, any other right or remedy
available to the Parties, whether arising under this Agreement or any Underlying
Agreement, or any other agreement, under applicable law, in equity, or
otherwise. The Netting provided in this Section 3 shall be permitted without
regard to fair market value of the Series B Note or the Investor Note at any
given time of determination and without giving effect to equitable subordination
or any other condition effecting the rank or priority of any Obligations under
any Underlying Agreement. (iv) The Netting Party shall give the Other Party
notice of any Netting pursuant to this Section 3, as soon as practicable
thereafter, provided that failure to give such notice shall not affect the
validity of the Netting. 4. Representations and Warranties. As of the later of
(x) the Closing Date (as defined in the Securities Purchase Agreement) and (y)
the Closing Date (as defined in the Note Purchase Agreement) (such later date,
the “Effective Date”), each Party represents and warrants to the other Party
that (i) it is duly organized, validly existing, and in good standing under the
laws of the jurisdiction of its incorporation, formation, or organization and
any other jurisdictions where its activities so require, has all necessary power
and authority to execute and deliver this Agreement and to perform its
obligations hereunder and has taken all necessary actions to authorize such
execution, delivery, and performance; (ii) the person signing this Agreement on
its behalf was duly authorized to do so on its behalf on the Effective Date;
(iii) this Agreement and the Underlying Agreements to which it is a party
constitute its legal, valid, and binding obligations, enforceable against it in
accordance with their terms, subject to applicable bankruptcy, reorganization,
insolvency, conservatorship, receivership, moratorium, or other similar laws
affecting creditors' rights generally and subject, as to enforceability, to
equitable principles of general application (regardless of whether enforcement
is sought in a proceeding in equity or at law); (iv) its execution and delivery
of this Agreement does not contravene, or constitute a default under, any
provision of applicable law or regulation (including, without limitation, any
order, decree, judgment, injunction, or other judicial or governmental
restriction applicable to such Party or any portion of its assets) or of the
organizational documents of such Party, or of any material agreement, judgment,
injunction, order, decree or other instrument binding upon such Party or result
in the creation or imposition of any lien on any asset of such Party other than
as provided herein; and (v) the jurisdiction of - 5 - Error! Unknown document
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the Company’s incorporation, formation, or organization and the location of its
chief executive office are correctly set forth in the Underlying Agreements. 5.
Interpretation. The Parties intend that (a) this Agreement constitute and be
deemed to be a “master netting agreement” (or any substantially similar term)
and that the Parties be deemed to be “master netting agreement participants” (or
any substantially similar term) within the meaning of, and as such terms are
used in, any law, rule, regulation, statute, or order applicable to the Parties'
rights herein, whether now or hereafter enacted or made applicable, including,
but not limited to, the Bankruptcy Code at 11 U.S.C. §§ 101(25), 101(47),
101(53B), 741(7) and 761(4); and (b) all Netting effectuated pursuant to this
Agreement or any Underlying Agreement, be governed by the following Bankruptcy
Code sections in the event of the bankruptcy of either Party: (i) Sections 555,
556, 559 and 560; (ii) Section 362(b)(6), (7) and/or (17); (iii) Sections
546(e)-(g); and (iv) Section 548(d)(2). The Parties also agree that such Netting
contemplated hereunder or under any Underlying Agreement arise under “securities
contracts” and constitute “settlement payments” as set forth in Sections 101 and
741 of the Bankruptcy Code. The Parties further intend that the Underlying
Agreements constitute “securities contracts” as such term is defined in the
Bankruptcy Code. Moreover, with respect to any Underlying Agreement, each Party
thereto constitutes a “stockbroker”, “financial institution” or “securities
clearing agency” within the meaning of, and as such terms are used in the
Bankruptcy Code and/or any law, rule, regulation, statute, or order applicable
to the Parties' rights herein, whether now or hereafter enacted or made
applicable. 6. Conflicts and Inconsistencies. In the event of any conflict or
inconsistency between any provision of this Agreement and any provision of any
Underlying Agreement concerning the matters set forth in this Agreement, the
provisions of this Agreement shall govern. 7. Miscellaneous. (a) Governing Law;
Jurisdiction; Jury Trial. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
The City of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT - 6 -
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MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY. (b) Counterparts. This Agreement may be
executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which
contains a portable document format (.pdf) file of an executed signature page,
such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such signature page were an original thereof. (c) Headings;
Gender. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to
include the masculine, feminine, neuter, singular and plural forms thereof. The
terms “including,” “includes,” “include” and words of like import shall be
construed broadly as if followed by the words “without limitation.” The terms
“herein,” “hereunder,” “hereof” and words of like import refer to this entire
Agreement instead of just the provision in which they are found. (d)
Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. The Parties intend that this Agreement be
construed to give full effect to the intent of the Parties with respect to the
Netting provisions contained herein. If any portion of the Netting contemplated
herein shall be in any respect deemed or held to be invalid, illegal, or
unenforceable, all other provisions of this Agreement shall survive. (e)
Amendments. No provision of this Agreement may be amended or waived other than
by an instrument in writing signed by the Company and the Investor. (f) Notices.
Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement shall be governed by the provisions
of Section 9(f) of the Securities Purchase Agreement. (g) Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and assigns. No party may assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the other party. (h) No Third Party Beneficiaries. This Agreement is
intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person. (i) Survival. The representations,
warranties, agreements and covenants shall survive - 7 - Error! Unknown document
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the Effective Date. The Investor shall be responsible only for its own
representations, warranties, agreements and covenants hereunder. (j) Further
Assurances. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as any other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.
(k) Construction. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party. (l) No Waiver. A failure
or delay in exercising any right, power, or privilege in respect of any
Underlying Agreement or this Agreement will not be presumed to operate as a
waiver of that right, power, or privilege, and a single or partial exercise of
any right, power, or privilege will not be presumed to preclude any subsequent
or further exercise of that right, power, or privilege, or the exercise of any
other right, power, or privilege. (m) Term. This Agreement shall continue in
effect from the Effective Date until terminated by agreement of the Parties or,
if earlier, such time as no Investor Note remains outstanding. [Signature Page
Follows] - 8 - Error! Unknown document property name.

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IN WITNESS WHEREOF, the Investor and the Company have caused their respective
signature page to this Master Netting Agreement to be duly executed as of the
date first written above. COMPANY: PHUNWARE, INC. By: Name: Title: Error!
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IN WITNESS WHEREOF, the Investor and the Company have caused their respective
signature page to this Master Netting Agreement to be duly executed as of the
date first written above. INVESTORS: ALTO OPPORTUNITY MASTER FUND, SPC -
SEGREGATED MASTER PORTFOLIO B By: Name: Title: 1 Error! Unknown document
property name.

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