Document:

Exhibit

Exhibit 10.45

OMNIBUS AMENDMENT NO. 1 TO TRANSACTION DOCUMENTS
(ALLY-CARVANA WAREHOUSE)

OMNIBUS AMENDMENT NO. 1, dated as of January 4, 2018 (this “Amendment”), among CARVANA, LLC, an Arizona limited liability company (“Carvana”, the “Originator”, the “Seller”, and the “Trust Administrator”), SONORAN AUTO RECEIVABLES TRUST 2017-1, a Delaware statutory trust, as the Trust and the Borrower (in such capacities, the “Trust” and the “Borrower”),  CARVANA AUTO RECEIVABLES 2016-1 LLC, a Delaware limited liability company (“CAR 2016-1” and the “Transferor”), ALLY BANK, a Utah chartered bank, as a Lender and as the Administrative Agent (in such capacities, a “Lender” and the “Administrative Agent”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Collateral Custodian and Account Bank (in such capacities, the “Collateral Custodian” and “Account Bank”) and BRIDGECREST CREDIT COMPANY, LLC, an Arizona limited liability company (the “Servicer”). Capitalized terms used but not defined herein shall have the meanings assigned to them in Appendix A to the Master Transfer Agreement, dated as of November 3, 2017, between the Transferor and the Trust (the “Master Transfer Agreement”, provided that if not defined therein, as defined in the Loan and Security Agreement, dated as of November 3, 2017 (the “Loan and Security Agreement”), among the Borrower, the Transferor, the Trust Administrator and Ally Bank.
RECITALS:
WHEREAS, (i) Carvana and CAR 2016-1 are parties to the Master Sale Agreement (Warehouse), dated as of November 3, 2017 (the “Master Sale Agreement”), (ii) the Transferor and the Trust are parties to the Master Transfer Agreement (iii) the Borrower, the Transferor, the Trust Administrator, and Ally Bank and parties to the Loan and Security Agreement and (iv) the Borrower, the Transferor, Carvana, Wells Fargo Bank, National Association, the Administrative Agent, and the Servicer are parties to the Collateral Custodian Agreement, dated as of November 3, 2017 (the “Collateral Custodian Agreement”); and
WHEREAS, the parties hereto wish to amend the Master Sale Agreement, the Master Transfer Agreement, the Loan and Security Agreement, and the Collateral Custodian Agreement in certain respects.
NOW, THEREFORE, intending to be bound, the parties hereto agree as follows:
ARTICLE I
AMENDMENT TO MASTER SALE AGREEMENT
Section 1.01    Amendment to Section 6.20(k) (Compliance with System Description).  Section 6.20(k) of the Master Sale Agreement is hereby deleted in its entirety and replaced with the following:
“(k)  Compliance with System Description.  It will, and will cause the Collateral Custodian, E-Vault Provider and, to the extent applicable to the then-applicable E-Vault System, E-Sign Provider to, at all times comply in all material respects with the System Description with respect to matters related to the perfection in the Receivables, the Purchased Receivables, and the Collateral by “control” (as such term is used in Section 9-105 of the UCC).”
Section 1.02    No Other Amendments to the Master Sale Agreement.  Except as expressly set forth in Section 1.01, the provisions of the Master Sale Agreement are and shall remain in full force and effect.

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ARTICLE II
AMENDMENTS TO COLLATERAL CUSTODIAN AGREEMENT
Section 2.01    Amendment to Section 1.1.  The definition of E-Vault System in Section 1.1 of the Collateral Custodian Agreement is hereby deleted in its entirety and replaced with the following:
“E-Vault System: shall mean (x) prior to the E Sign Transition Period, “eOriginal, Inc. Authoritative Copy System” maintained by the E-Vault Provider, (y) during the E-Sign Transition Period, (i) “eOriginal, Inc. Authoritative Copy System” maintained by the E-Vault Provider with respect to Electronic Contracts originated on such system or (ii) the “Authoritative Copy integrated with eOriginal Vaulting” provided by E-Sign Provider and maintained by the E-Sign Provider and the E-Vault Provider with respect to Electronic Contracts originated on such system and (z) after the E Sign Transition Period, the “Authoritative Copy integrated with eOriginal Vaulting” provided by E-Sign Provider and maintained by the E-Sign Provider and the E-Vault Provider.” 
Section 2.02    Amendment to Section 2.7(h).  Section 2.7(h) of the Collateral Custodian Agreement is hereby deleted in its entirety and replaced with the following:

“(h)    The Collateral Custodian shall not be responsible for the acts or omissions of the Servicer, the Transferor, the Borrower, the Administrative Agent, the E-Sign Provider, the E-Vault Provider, or any other Person, and may assume compliance by such parties with their obligations under this Agreement or any related agreements, unless an Authorized Signatory of the Collateral Custodian shall have received written notice to the contrary.  The parties acknowledge and agree that in making statements herein regarding “control” of the Contracts which are Electronic Contracts, the Collateral Custodian is relying on, and shall be entitled to conclusively rely on, representations and covenants from the E-Sign Provider and the E-Vault Provider regarding the E-Vault System and the various criteria constituting “control” (within the meaning of Section 9-105 of the UCC).”
Section 2.03    Amendment to the Schedules.  The system descriptions attached hereto as Exhibit 1 are hereby attached to and incorporated into the Collateral Custodian Agreement as Schedule C.
Section 2.04    No Other Amendments to Collateral Custodian Agreement.  Except as expressly set forth in Sections 2.01, 2.02, and 2.03, the provisions of the Collateral Custodian Agreement are and shall remain in full force and effect.
ARTICLE III
AMENDMENTS TO LOAN AND SECURITY AGREEMENT
Section 3.01    Amendments to Section 1.1 (Definitions). 
(a)    Section 1.1 of the Loan and Security Agreement is hereby amended by deleting the following definitions in their entirety and replacing them with the following:
Carvana E-Vault Services Agreement: (a) prior to the E Sign Transition Period, the Carvana E-Vault Services Agreement, and (b) during the E-Sign Transition Period, (i) the Carvana E-Vault Services Agreement with respect to Electronic Contracts originated on such system or (ii) the DocuSign Services Agreement with respect to Electronic Contracts originated on the DocuSign system, and (c) after the E Sign Transition Period, the DocuSign Services Agreement.
Interest Rate: With respect to any Interest Period occurring prior to March 1, 2018, LIBOR plus the Interest Rate Margin; provided that with respect to any Interest Period occurring on or after March 1, 

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2018, the Interest Rate with respect to any subsequent Interest Period shall be the fixed rate as agreed upon by the Parties; provided, further, notwithstanding the foregoing, if a Servicer Termination Event or Termination Event shall have occurred and be continuing, LIBOR plus the Default Rate Margin.
System Description: means (a) prior to the E Sign Transition Period, the written description of the eOriginal e-contract system attached to the Loan and Security Agreement as Schedule E, (b) during the E-Sign Transition Period, (i) the written description of the eOriginal e-contract system attached to the Loan and Security Agreement as Schedule E or (ii) the written descriptions of the eOriginal, Inc. Authoritative Copy System Description and the DocuSign System Description Authoritative Copy attached to the Loan and Security Agreement as Schedule G, and (c) after the E Sign Transition Period, the written descriptions of the eOriginal, Inc. Authoritative Copy System Description and the DocuSign System Description Authoritative Copy attached to the Loan and Security Agreement as Schedule G.
(b)    The following definitions are hereby added to Section 1.1 of the Loan and Security Agreement in their proper alphabetical order:
DocuSign Services Agreement: means DocuSign Master Services Agreement between the E-Sign Provider and Carvana, dated October 19 and attached to the Loan and Security Agreement as Schedule H.
E-Sign Provider: shall mean DocuSign, Inc.
E Sign Transition Period: shall mean the period beginning on November 29, 2017 and ending on December 4, 2017 or such other day as the Transferor shall specify in writing to the Administrative Agent.  
E-Vault System: shall have the meaning set forth in the Custodial Agreement.
Section 3.02    Amendment to Section 2.7(ii).  Section 2.7(ii) of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following:
“(ii) Second, (A) first, pro rata, to the Administrative Agent in an amount equal to any accrued and unpaid Administrative Agent Fees, the Collateral Custodian, in an amount equal to any accrued and unpaid Collateral Custodian Fees, the Account Bank in an amount equal to any accrued and unpaid Account Bank Fees, the Owner Trustee, in an amount equal to any accrued and unpaid owner trustee fees, to the Trust Administrator, in an amount equal to any accrued and unpaid Trust Administrator Fee, and to the E-Sign Provider and E-Vault Provider in an amount equal to its accrued and unpaid fees in respect of Electronic Contracts (other than the fees required to be paid by the Collateral Custodian under the terms of the E-Vault Access Agreement not incurred in connection with the actions taken at the direction of the Administrative Agent or the Required Lenders) then (B) second, pro rata, to the Servicer, Administrative Agent, Collateral Custodian, Account Bank, Owner Trustee, E-Sign Provider and E-Vault Provider any expense reimbursements and indemnified amounts payable thereto in accordance with this Agreement, the Servicing Agreement, the Collateral Custodian Agreement, the Account Control Agreement, the Trust Agreement or the E-Vault Access Agreement (in the case of the E-Vault Provider, other than the expenses required to be paid by the Collateral Custodian under the terms of the E-Vault Access Agreement not incurred in connection with the actions taken at the direction of the Administrative Agent or the Required Lenders), in each of clauses (A) and (B) subject, in the case of any Settlement Date occurring prior to the occurrence of the Termination Date, to the Annual Expenses Cap, as applicable;”
Section 3.03    Amendment to Section 2.11(b).  Section 2.11(b) of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following:
(b)    For the avoidance of doubt, the reasonable and documented fees and expenses (other than those required to be paid by the Collateral Custodian pursuant to the E-Vault Access Agreement and 

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not incurred in connection with actions taken at the direction of the Administrative Agent) due and payable to the E-Sign Provider and the E-Vault Provider, including those relating to access and management or to Exporting any Contracts (other than an Exporting of Contracts following the termination of the E-Vault Access Agreement either at the election of the Collateral Custodian or due to an event of default with respect to or breach by the Collateral Custodian), shall be the obligation of the Borrower and shall be paid in accordance with Section 2.7 of this Agreement.    
Section 3.04    Amendment to Section 6.1(n) (Compliance with System Description).  Section 6.1(n) of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following:
“(n)  Compliance with System Description.  The Borrower will, and will cause the Servicer to, at all times comply in all material respects with the System Description with respect to matters related to the perfection in the Receivables by “control” (as such term is used in Section 9-105 of the UCC).”
Section 3.05    Amendment to Section 11.1(xvii).  Section 11.1(xvii) of the Loan and Security Agreement is hereby deleted in its entirety and replaced with the following:
“(xvii) the conduct by the Originator, Bridgecrest Credit Company, LLC, as Servicer, the Transferor, the Borrower and any Obligor of any transaction by electronic means, (b) the creation, generation, communication or transfer of Contracts by electronic means, (c) the utilization by the Originator, Bridgecrest Credit Company, LLC, as Servicer, the Transferor, the Borrower or the Servicer of the web portal, the E-Vault System or software of the E-Sign Provider or E-Vault Provider, (d) the failure of the E-Vault System to create and maintain a single Authoritative Copy of an Electronic Contract or to otherwise conform (including the Carvana Vault Partition and the Warehouse Vault Partition) to the System Description, (e) the negligence, or fraudulent or willful misconduct of the E-Sign Provider or the E-Vault Provider in connection with the Electronic Contracts, or the failure of the E-Sign Provider, the E-Vault Provider, the Originator, Bridgecrest Credit Company, LLC, as Servicer, the Transferor, the Borrower or the Servicer to comply with any term, provision or covenant contained in the DocuSign Services Agreement, the Carvana E-Vault Services Agreement or the DT E-Vault Services Agreement, (f) any system failure, loss of data, data breach or other impairment with respect to, or any inability of the Collateral Custodian, the Servicer or the Borrower to access, the E-Vault System or the Warehouse Vault Partition or the Contracts therein or the records of any Title Intermediary; or”
Section 3.06    Amendment to the Schedules. The system descriptions attached hereto as Exhibit 1 are hereby attached to and incorporated into the Master Purchase and Sale Agreement as Schedule G.
Section 3.07    No Other Amendments to Loan and Security Agreement. Except as expressly set forth in Sections 3.01, 3.02, 3.03, 3.04 and 3.05, the provisions of the Loan and Security Agreement are and shall remain in full force and effect.
ARTICLE IV
AMENDMENT TO MASTER TRANSFER AGREEMENT
Section 4.01    Amendment to Section 6.20(k) (Compliance with System Description).  Section 6.20(k) of the Master Transfer Agreement is hereby deleted in its entirety and replaced with the following:
“(k)  Compliance with System Description.  It will, and will cause the Collateral Custodian and E-Vault Provider to, at all times to comply in all material respects with the System Description with respect to matters related to the perfection in the Receivables, the Purchased Receivables, and the Collateral by “control” (as such term is used in Section 9-105 of the UCC).”

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Section 4.02    No Other Amendments to the Master Transfer Agreement.  Except as expressly set forth in Section 4.01, the provisions of the Master Transfer Agreement are and shall remain in full force and effect.
ARTICLE V
MISCELLANEOUS PROVISIONS.
Section 5.01    Conditions to Effectiveness.  This Amendment shall become effective as of the date first written when a signed counterpart to this Amendment shall have been duly executed and delivered by each of the parties hereto.
Section 5.02    Representations and Warranties.  The representations and warranties of  Carvana, CAR 2016-1, Sonoran Auto Receivables Trust 2017-1, the Servicer, and the Collateral Custodian contained in the Transaction Documents shall be true and correct in all material respects as of the effective date of this Amendment.
Section 5.03    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. This Amendment contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings other than any fee letter contemplated hereby.
Section 5.04    Governing Law.  This Amendment and the rights and obligations of the parties hereunder will be governed by and interpreted in accordance with the laws of the State of New York, without regard to the principles of conflicts of laws thereof or of any other jurisdiction other than Section 5-1401 and Section 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties under this amendment shall be determined in accordance with such laws. Each of the parties hereto hereby agrees to the non- exclusive jurisdiction of the courts of the state of New York, located in the borough of Manhattan and the federal courts located within the state of New York in the borough of Manhattan. Each of the parties hereto hereby waives any objection based on forum non conveniens, and any objection to venue of any action instituted hereunder in any of the aforementioned courts and consents to the granting of such legal or equitable relief as is deemed appropriate by such court.
Section 5.05    WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE  RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS  AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.
Section 5.06    Effect of Headings.  The section headings herein are for convenience  only and shall not affect the construction hereof.
Section 5.07    Ratification of Agreements.  As amended by this Amendment, each of   the Master Sale Agreement, the Master Transfer Agreement, the Loan and Security Agreement and the Collateral Custodian Agreement is in all respects ratified and confirmed and each of the Master Sale Agreement, the Master Transfer Agreement, the Loan and Security Agreement and the Collateral Custodian Agreement as so amended by this Amendment shall be 

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read, taken and construed as one and the same instrument.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as or constitute a waiver of any other  right, power or remedy of any of the parties under the Master Sale Agreement, the Master Transfer Agreement, the Loan and Security Agreement and the Collateral Custodian Agreement or any other Transaction Document.
Section 5.08    It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered by Wilmington Trust, National Association (“WTNA”), not individually or personally but solely as Owner Trustee of the Trust, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not as personal representations, undertakings and agreements by WTNA but is made and intended for the purpose of binding only the Trust, (c) nothing herein contained shall be construed as creating any liability on WTNA, individually or personally, to perform any covenant either expressed or implied contained herein of the Trust, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) WTNA has made no investigation as to the accuracy or completeness of any representations and warranties made by the Trust in this Agreement and (e) under no circumstances shall WTNA be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other Transaction Documents.

[SIGNATURES FOLLOW]

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IN WITNESS WHEREOF, the parties have caused this Omnibus Amendment No. 1 to be duly executed by their respective officers effective as of the day and year first above written.

	
					
	 
	 
	SONORAN AUTO RECEIVABLES TRUST 2017-1,
	 

	 
	 
	as Borrower and Trust
	 

	 
	 
	 
	 
	 

	 
	 
	By: WILMINGTON TRUST, NATIONAL ASSOCIATION, 
	 

	 
	 
	not in its individual capacity but solely as Owner Trustee
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Dorri Costello
	 

	 
	 
	Name:
	Dorri Costello
	 

	 
	 
	Title:
	Vice President

	 
	 
	 
	 
	 

	 
	 
	CARVANA AUTO RECEIVABLES 2016-1, LLC,
	 

	 
	 
	as Transferor
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul Breaux
	 

	 
	 
	Name:
	Paul Breaux
	 

	 
	 
	Title:
	Vice President

	 
	 
	 
	 
	 

	 
	 
	CARVANA, LLC,
	 

	 
	 
	as Originator, Seller and Trust Administrator
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul Breaux
	 

	 
	 
	Name:
	Paul Breaux
	 

	 
	 
	Title:
	Vice President

[SIGNATURES CONTINUE]

	
					
	 
	 
	ALLY BANK,
	 

	 
	 
	as Administrative Agent and Lender
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ D. P. Shevsky
	 

	 
	 
	Name:
	D. P. Shevsky
	 

	 
	 
	Title:
	Chief Risk Officer

	 
	 
	 
	 
	 

[SIGNATURES CONTINUE]

	
					
	 
	 
	SOLELY WITH RESPECT TO SECTION III.2
	 

	 
	 
	Consented to by:
	 

	 
	 
	 
	 
	 

	 
	 
	Wilmington Trust, National Association, not in its individual capacity but solely as Owner Trustee
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Dorri Costello
	 

	 
	 
	Name:
	Dorri Costello
	 

	 
	 
	Title:
	Vice President

	 
	 
	 
	 
	 

[SIGNATURES CONTINUE]

 
	
					
	 
	 
	BRIDGECREST CREDIT COMPANY, LLC,
	 

	 
	 
	as Servicer
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul Kaplan
	 

	 
	 
	Name:
	Paul Kaplan
	 

	 
	 
	Title:
	President

	 
	 
	 
	 
	 

[SIGNATURES CONTINUE]

 

	
					
	 
	 
	SOLELY WITH RESPECT TO ARTICLE II
	 

	 
	 
	 
	 
	 

	 
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, 
	 

	 
	 
	as Collateral Custodian and Account Bank
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Jeanine C. Casey
	 

	 
	 
	Name:
	Jeanine C. Casey
	 

	 
	 
	Title:
	Vice President

	 
	 
	 
	 
	 

EXHIBIT 1 TO OMNIBUS 
AMENDMENT NO. 1
SYSTEM DESCRIPTIONS

[Schedule C to Collateral Custodian Agreement]
[Schedule G to Loan and Security Agreement]Exhibit

     

Exhibit 10.46
Amendment No. 1  
to the 
Fourth Amended and Restated Limited Liability Company Agreement 
of 
Carvana Group, LLC

This Amendment No. 1 (this “Amendment No. 1”) to the Fourth Amended and Restated Limited Liability Company Agreement (the “LLC Agreement”) of Carvana Group, LLC (the “Company”) is made effective as of December 5, 2017 (the “Amendment Date”). Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the LLC Agreement.
WHEREAS, in connection with Carvana Co.’s issuance of Class A Convertible Preferred Stock as of the Amendment Date (the “Preferred Stock Issuance”), the Manager desires to amend the LLC Agreement as set forth herein and in accordance with Sections 3.2(a) and 11.2 of the LLC Agreement; and
WHEREAS, the Manager has determined that it is advisable and in the best interests of the Company to amend the LLC Agreement as set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Manager hereto agree as follows:
1.Amendment. The LLC Agreement is hereby amended as follows:
(a)The definition of “Tax Distributions” is deleted in its entirety.
(b)    The following definitions are added to Article I in the appropriate alphabetical order: 
“Applicable Class A Convertible Preferred Unit Tax Rate” means, for any calendar year, a percentage determined by the Manager (which may be zero) to be the sum of the federal, state, and local income tax rates that, in the discretion of the Manager, would provide an amount of Class A Convertible Preferred Unit Tax Distributions that would be sufficient to pay the actual, current income tax obligations incurred by the holder of the Class A Convertible Preferred Units arising from the aggregate taxable income of the Company allocated with respect to the Class A Convertible Preferred Units (as provided in more detail in Section 4.1(a)(i)), taking into account, among other factors, other income and losses of the Company, the character of the Company’s income and the deductibility of state and local taxes for federal income tax purposes.

“Certificate of Designations” means the Certificate of Designations, Preferences, Powers and Rights of Class A Convertible Preferred Stock of Carvana Co., filed with the Delaware Secretary of State on December 5, 2017, as the same may be amended, amended and restated, changed or replaced from time to time in accordance with its terms.

“Class A Convertible Preferred Stock” means the Class A Convertible Preferred Stock of Carvana Co., the rights and preferences of which are set forth in the Certificate of Designations.

“Class A Preferred Stock Cash Dividend” means any dividend declared and actually paid in cash by Carvana Co. in respect of the Class A Convertible Preferred Stock.

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“Class A Preferred Stock Cash Dividend Amount” means, with respect to any Class A Preferred Stock Cash Dividend, the aggregate amount paid in cash by Carvana Co. in connection with such Class A Preferred Stock Cash Dividend.

“Class A Preferred Stock Liquidation Payment” means any distribution of the Liquidation Payment Amount by Carvana Co. pursuant to Section G.1. of the Certificate of Designation in respect of the Class A Convertible Preferred Stock.

“Class A Preferred Stock Cash Liquidation Payment Amount” means, with respect to any Class A Preferred Stock Liquidation Payment, the aggregate amount distributed by Carvana Co. in connection with such Class A Preferred Stock Liquidation Payment.

“Class A Preferred Stock Change of Control Repurchase” means a repurchase of Class A Convertible Preferred Stock by Carvana Co. required pursuant to the Certificate of Designations because of the occurrence of a Change of Control (as such term is defined in the Certificate of Designations).

“Class A Convertible Preferred Unit” means a Unit, issued to Carvana Co. Sub on the Amendment Date, having the rights and obligations specified with respect to a Class A Preferred Unit in Amendment No. 1 to this Agreement.

“Class A Convertible Preferred Unit Tax Distribution” has the meaning set forth in Section 4.1(a)(i).

“Common Unit Tax Distribution” has the meaning set forth in Section 4.1(a)(i).

(c)    Section 3.2 of the LLC Agreement is amended to add the following Section 3.2(g):
(g)    In the event Carvana Co. issues any Class A Common Stock upon conversion of any shares of Class A Convertible Preferred Stock or in connection with any Class A Preferred Stock Change of Control Repurchase, a corresponding number of Class A Convertible Preferred Units shall be cancelled and cease to be outstanding, and the Company shall issue to Carvana Co. Sub Class A Common Units in accordance with Section 3.2(b) hereof without any further action by the Company or the Manager.

(d)    Section 4.1 of the LLC Agreement is amended as follows:
(i)    The existing Section 4.1(a) (Tax Distributions) is deleted in its entirety and is replaced with the following:
(a)    Tax and Preferred Distributions.

(i)    Tax Distributions.  To the extent funds of the Company may be available for distribution by the Company (as determined by the Manager in its sole discretion), with respect to each Fiscal Quarter, the Company shall distribute to each holder of Class A Convertible Preferred Units an amount of cash (a “Class A Convertible Preferred Unit Tax Distribution”) equal to the excess, if any, of (i) (A) the aggregate taxable income of the Company for the Taxable Year to date allocated with respect to the Class A Convertible Preferred Units held (with taxable income reflecting, without limitation, adjustments  under Sections 704(c), 

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734 and 743 of the Code and net of Taxable losses of the Company allocated in respect of prior Fiscal Quarters and not previously taken into account under this clause and including, if applicable, any income under Sections 707(a) or (c) of the Code), multiplied by (B) the Applicable Class A Convertible Preferred Unit Tax Rate over (ii) the cumulative amount of prior Class A Convertible Tax Distributions made pursuant to this Section 4.1(a)(i) with respect to such Class Convertible Preferred Units for the Taxable Year in question; provided that the amount of Class A Convertible Preferred Unit Tax Distributions made with respect to the Class A Convertible Preferred Units shall be the same for every Class A Convertible Preferred Unit and shall be equal to the highest amount that any holder of Class A Convertible Preferred Units would otherwise be entitled to receive on a per Unit basis under this Section 4.1(a)(i).  If the Manager determines there are insufficient funds available to pay the Class A Convertible Preferred Unit Tax Distributions in full, then Class A Convertible Preferred Unit Tax Distributions shall be made to each holder of Class A Convertible Preferred Units on a pro rata basis, with each Class A Convertible Preferred Unit receiving the same amount on a per Unit basis.  After the distribution of the Class A Convertible Preferred Unit Tax Distributions, to the extent funds of the Company remain which may be available for distribution by the Company (as determined by the Manager in its sole discretion), with respect to each Fiscal Quarter, the Company shall distribute to each holder of Class A Common Units an amount of cash (a “Common Unit Tax Distribution”) equal to the excess, if any, of (i) (A) the aggregate taxable income of the Company for the Taxable Year to date allocated with respect to the Class A Common Units held (with taxable income reflecting, without limitation, adjustments under Sections 704(c), 734 and 743 of the Code and net of Taxable losses of the Company allocated in respect of prior Fiscal Quarters and not previously taken into account under this clause), multiplied by (B) the Applicable Tax Rate over (ii) the cumulative amount of prior Tax Distributions made pursuant to this Section 4.1(a)(i) with respect to such Class A Common Units for the Taxable Year in question; provided that the amount of Tax Distributions made with respect to the Class A Common Units shall be the same for every Class A Common Unit and shall be equal to the highest amount that any holder of Class A Common Units would otherwise be entitled to receive on a per Unit basis under this Section 4.1(a)(i).  If the Manager determines there are insufficient funds available to pay the Common Unit Tax Distributions in full, then Common Unit Tax Distributions shall be made to each holder of Class A Common Units on a pro rata basis, with each Class A Common Unit receiving the same amount on a per Unit basis.  Common Unit Tax Distributions shall be made with respect to each holder of Class B Common Units under the same principles as set forth above for Class A Common Units, except that the amount distributed with respect to each Class B Common Unit shall be based on the amount of taxable income allocated with respect to such Unit, with no requirement that the amounts distributed with respect to each Class B Common Unit be equal to amounts distributed for other Class B Common Units.  If the Manager determines there are insufficient funds available to pay Common Unit Tax Distributions in full, Common Unit Tax Distributions shall be made to each holder of Class B Common Units on a pro rata basis in proportion to the amount otherwise distributable to such holder with respect to such Class B Common Units.  Any funds available shall first be used to make Class A Convertible Preferred Unit Tax Distributions until those amounts are paid in full.  Any remaining funds available shall be initially apportioned between (i) the Class A Common Units and (ii) the Class B Common Units in proportion to the aggregate amounts otherwise distributable to each class of Units as Common Unit Tax Distributions. To the extent that any Unitholders have not received Class A Convertible Preferred Unit Tax Distributions or Common Unit Tax Distributions in full under this Section 4.1(a)(i), such unpaid amounts 

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shall carryforward and shall be distributed in future periods as Class A Convertible Preferred Unit Tax Distributions or Common Unit Tax Distributions, as the case may be, under this Section 4.1(a)(i). Common Unit Tax Distributions shall be treated as advances of any amounts Unitholders are entitled to receive pursuant to Section 4.1(b); Class A Convertible Preferred Unit Tax Distributions shall not be treated as advances of any amounts otherwise payable with respect to the Class A Convertible Preferred Units under this Agreement.  For the avoidance of doubt, unless the Manager specifies that a distribution is not a Class A Convertible Preferred Tax Distribution or a Common Tax Distribution pursuant to this Section 4.1(a)(i), each Distribution with respect to a Unit shall be treated as a Class A Convertible Preferred Tax Distribution or as a Common Tax Distribution.
(ii)    The reference to Section 4.1(a) in Section 3.5(b)(i) of the LLC Agreement shall be deemed to refer to Section 4.1(a)(i).
(iii)    Section 4.1(a) is amended to add the following Sections 4.1(a)(ii), 4.1(a)(iii), 4.1(a)(iv) and 4.1(a)(v):
(ii)    Class A Convertible Preferred Unit Cash Dividend Distributions. In the event Carvana Co. declares and pays a Class A Convertible Preferred Stock Cash Dividend, on or before the related Dividend Payment Date (as defined in the Certificate of Designations) the Manager shall cause the Company to make a Distribution of cash in respect of the Class A Convertible Preferred Units in an amount equal to the related Class A Preferred Stock Cash Dividend Amount.

(iii)    Class A Preferred Stock Change of Control Repurchase.  In the event Carvana Co. is required to make a Class A Preferred Stock Change of Control Repurchase, on or before the date of the related Change of Control Exchange (as defined in the Certificate of Designations), the Manager shall cause the Company to make a Distribution of cash in respect of the Class A Convertible Preferred Units in an amount equal to the aggregate Change of Control Price (as defined in the Certificate of Designations) which is to be paid in cash and not in shares of Class A Common Stock.

(iv)    Class A Convertible Preferred Unit Liquidation Payment. In the event Carvana Co. makes a Class A Convertible Preferred Stock Liquidation Payment, on or before the related date fixed for liquidation, winding-up or dissolution of Carvana Co. the Manager shall cause the Company to make a Distribution in respect of the Class A Convertible Preferred Units in an amount equal to the related Class A Preferred Stock Liquidation Payment Amount.

(v)    The Manager shall not approve, and the Company shall not make, any Distribution pursuant to Section 4.1(b) at any time that Carvana Co. is not permitted to pay a dividend or make a liquidating distribution in respect of Junior Securities pursuant to the Certificate of Designations. In addition, for the avoidance of doubt, Distributions made in respect of Class A Convertible Preferred Units shall not result in any adjustment to the Participation Threshold of any Class B Common Unit pursuant to Section 3.5(b) above.

(e)    Section 4.3(g) of the LLC Agreement is amended to add the following sentence to the end of such Section:
Any items of deduction (including a deduction described in Code Sections 707(c) and 162(a)) with respect to or arising from the Class A Convertible Preferred Units 

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shall be allocated to the holders of such Class A Convertible Preferred Units unless such treatment is prohibited by law.  For the avoidance of doubt, all tax deductions described in this Section 4.3(g) shall be taken into account in determining the amount of tax distributions made under the provisions of Section 4.1(a)(i). 

(f)    The first sentence of Section 10.2(c) of the LLC Agreement is amended to delete the existing reference to “Section 4.1(b)” and replace it with “Section 4.1,” so that it now reads as follows:
(c)    As soon as the Liquidation FMV and the proper amounts of Distributions have been determined in accordance with Section 10.2(b) above, the liquidators shall promptly distribute the Company’s Liquidation Assets to the holders of Units in accordance with Section 4.1 above.

2.Issuance of Class A Convertible Preferred Units. Pursuant to this Amendment, the Manager hereby authorizes the Company to issue 100,000 Class A Convertible Preferred Units to Carvana Co. Sub, effective as of the Amendment Date, in consideration for the capital contribution made or deemed to have been made by Carvana Co. Sub of the net proceeds of the Preferred Stock Issuance.
3.Applicable Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.
4.Entire Agreement. This Amendment, the LLC Agreement as amended hereby and those other documents expressly referred to herein or therein embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.
*    *    *    *

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IN WITNESS HEREOF, the undersigned have executed this Amendment No. 1 to Fourth Amended and Restated Limited Liability Company Agreement of Carvana Group, LLC, effective as of the date first written above.
	
					
	 
	 
	CARVANA CO. SUB, LLC, as the sole Manager
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul Breaux
	 

	 
	 
	Name:
	Paul Breaux
	 

	 
	 
	Title:
	Vice President, General Counsel and Secretary

	 
	 
	 
	 
	 

	 
	 
	CARVANA GROUP, LLC
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Paul Breaux
	 

	 
	 
	Name:
	Paul Breaux
	 

	 
	 
	Title:
	Vice President, General Counsel and Secretary

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