Document:

exhibit10-4.htm

 

NONE OF THE SECURITIES REPRESENTED HEREBY, NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE, HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO A U.S. PERSON (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE AND FOREIGN SECURITIES LAWS.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

 

WARRANT CERTIFICATE

 

bBOOTH, INC.

 

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID AT THE TIME OF EXPIRY (AS DEFINED HEREIN).

 

	
Warrant Certificate No.:  RC-2015-12-01-15

	
Number of Warrants:  8,920,593

 

This is to certify that, for value received, RORY J. CUTAIA, of 306 Campbells Hollow Rd, Middlebrook, VA  24459 and at rory@thecutaiagropu.com (the “Holder”), is the registered holder of EIGHT MILLION NINE HUNDRED THWENTY THOUSAND FIVE HUNDRED NINETY-THREE (8,920,593) share purchase warrants (each, a “Warrant”) of bBOOTH, INC. (the “Company”). Each Warrant will entitle the Holder, upon and subject to the terms and conditions attached to this certificate or any replacement certificate (in either case the “Warrant Certificate”) as Appendix “A” (the “Terms and Conditions”), to acquire from the Company one fully paid and non-assessable share of common stock in the capital of the Company (each, a “Warrant Share”) at a price of $0.07 per Share at any time prior to 5:00 p.m. (Pacific time) on November 30, 2018 (the “Time of Expiry”).

 

The Warrants are issued subject to the Terms and Conditions, and the Holder may exercise the right to purchase Warrant Shares only in accordance with the Terms and Conditions.

 

Nothing contained herein or in the Terms and Conditions will confer any right upon the Holder, or any other Person (as defined in the Terms and Conditions), to subscribe for or purchase any Warrant Shares at any time subsequent to the Time of Expiry, and, from and after such time, the Warrants and all rights under this Warrant Certificate will be void and of no value.

 

IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed this 1st day of December, 2015.

 

bBOOTH, INC.

 

Per:  /s/ Jimmy Geiskopf

         Authorized Signatory

  

  

  

 

APPENDIX “A”

 

TERMS AND CONDITIONS

 

	
1.  

	
INTERPRETATION

 

	
1.1  

	
Definitions

 

In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith:

 

	
(a)  

	
“Business Day” means any day of the year other than Saturday, Sunday or any day on which banks are required or authorized to close in the State of California;

 

	
(b)  

	
“Company” means bBooth, Inc., until a successor corporation will have become such as a result of a Reorganization, and, thereafter, “Company” will mean such successor corporation;

 

	
(c)  

	
“Exchange” means the OTCQB Market of the OTC Markets Group, or such other stock exchange or quotation system on which the Shares may be principally traded or quoted at the applicable time;

 

	
(d)  

	
“Exercise Price” means $0.07 per Warrant Share, subject to adjustment as provided in Section 4.7;

 

	
(e)  

	
“Exercise Date” has the meaning given to such term in Section 4.2(a);

 

	
(f)  

	
“Holder” means the holder of the Warrants;

 

	
(g)  

	
“Issue Date” means December 1, 2015;

 

	
(h)  

	
“Person” means a natural person, corporation, limited liability corporation, unlimited liability corporation, joint stock corporation, partnership, limited partnership, limited liability partnership, trust, trustee, any unincorporated organization, joint venture or any other entity;

 

	
(i)  

	
“Reorganization” has the meaning given to such term in Section 4.7(a)(ii);

 

	
(j)  

	
“Shares” means the shares of common stock in the capital of the Company as constituted at the date hereof and any Shares resulting from any subdivision or consolidation of the Shares;

 

	
(k)  

	
“Subscription Form” has the meaning given to such term in Section 4.1(a);

 

	
(l)  

	
“Time of Expiry” means 5:00 pm (Pacific Time) on November 30, 2018];

 

	
(m)  

	
“VWAP” means either: (i) if the Shares are then listed or quoted on the Exchange, the volume weighted average price per Share of the Shares on the Exchange, or (ii) if the Shares are not then listed or quoted on the Exchange, the fair market value per Share as determined by: (A) an independent appraiser selected in good faith by the Holder and the Company or (B) as otherwise may be mutually agreed upon by the Holder and the Company;

 

  

  

  

	
(n)  

	
“Warrant Certificate” means the Warrant Certificate attached to these Terms and Conditions;

 

	
(o)  

	
“Warrants” means the share purchase warrants of the Company represented by the Warrant Certificate; and

 

	
(p)  

	
“Warrant Shares” means the Shares issuable upon exercise of the Warrants.

 

	
1.2  

	
Gender

 

Words importing the singular number include the plural and vice versa, and words importing the masculine gender include the feminine and neuter genders.

 

	
1.3  

	
Interpretation not affected by Headings

 

The division of these Terms and Conditions into sections and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation thereof.

 

	
1.4  

	
Applicable Law

 

The Warrants will be exclusively construed in accordance with the laws of the State of Nevada. The Warrant Certificate and these Terms and Conditions are governed by the laws of the State of California and the federal laws of the United States applicable therein.

 

	
1.5  

	
Currency

 

Unless otherwise provided, all dollar amounts referred to in the Warrant Certificate and these Terms and Conditions are in lawful money of the United States of America.

 

	
2.  

	
ISSUE OF WARRANTS

 

	
2.1  

	
Additional Warrants

 

The Company may at any time and from time to time issue additional warrants or grant options or similar rights to purchase Shares.

 

	
2.2 

	
Warrants to Rank Pari Passu

 

All Warrants and additional warrants, options or similar rights to purchase Shares from time to time issued or granted by the Company will rank pari passu, whatever may be the actual dates of issue or grant thereof, or of the dates of the certificates by which they are evidenced.

 

	
2.3  

	
Replacement of Lost or Damaged Warrant Certificate

 

	
(a)  

	
If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company, at its discretion, may issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for, in place of, and upon cancellation of, such mutilated Warrant Certificate, or in lieu of, and in substitution for, such lost, destroyed or stolen Warrant Certificate.

 

  

A2

  

	
(b)  

	
The applicant for the issue of a new Warrant Certificate pursuant hereto will bear the cost of such issue and, in case of loss, destruction or theft, will furnish to the Company such evidence of ownership and of loss, destruction or theft of the Warrant Certificate so lost, destroyed or stolen as will be satisfactory to the Company in its discretion. Such applicant may also be required to furnish indemnity in amount and form satisfactory to the Company in its discretion, and will pay the reasonable charges of the Company in connection therewith.

 

	
2.4  

	
Holder Not a Shareholder

 

The holding of the Warrant Certificate will not constitute the Holder a shareholder of the Company, nor entitle it to any right or interest in respect thereof except as expressly provided in the Warrant Certificate.

 

	
3.  

	
NOTICE

 

	
3.1  

	
Notice to Holders

 

Any notice required or permitted to be given to the Holder will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Holder appearing on the Warrant Certificate or to such other address as the Holder may specify by notice in writing to the Company to the address set forth in Section 3.2, and any such notice will be deemed to have been given and received by the Holder: (i) if mailed, on the third Business Day following the mailing thereof; (ii) if by facsimile or other electronic communication, on successful transmission; or (iii) if delivered, on delivery, but if at the time of mailing, or between the time of mailing and the third Business Day thereafter, there is a strike, lockout or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

 

	
3.2  

	
Notice to the Company

 

Any notice required or permitted to be given to the Company will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Company set forth below or such other address as the Company may specify by notice in writing to the Holder to the address of the Holder appearing on the Warrant Certificate, and any such notice will be deemed to have been given and received by the Company: (i) if mailed, on the third Business Day following the mailing thereof; (ii) if by facsimile or other electronic communication, on successful transmission; or (iii) if delivered, on delivery, but if at the time of mailing, or between the time of mailing and the third Business Day thereafter, there is a strike, lockout or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

 

Notices to the Company will be delivered to:

 

bBooth, Inc.

901 Hancock Ave, Unit 308

West Hollywood, CA  90069

Attn:    Jimmy Geiskopf

Email:  jimmy@bbooth.com

 

  

A3

  

	
4.  

	
EXERCISE OF WARRANTS

 

	
4.1  

	
Method of Exercise of Warrants

 

The Holder may exercise its right to purchase the Warrant Shares at the Exercise Price at any time until the Time of Expiry by:

 

	
(a)  

	
providing the Company with the Warrant Certificate and a completed and executed subscription form, in the form attached as Appendix “B” hereto (the “Subscription Form”), for the number of Warrant Shares which the Holder wishes to purchase;

 

	
(b)  

	
surrendering the Warrant Certificate and the Subscription Form to the Company at the address set forth in Section 3.2; and

 

	
(c)  

	
either: (i) paying the appropriate Exercise Price for the number of Warrant Shares subscribed for, either by bank draft, certified cheque or money order, payable to the Company, and delivering such payment to the Company at the address set forth in Section 3.2, or by wire transfer to such account as may be provided by the Company to the Holder upon request, or (ii) indicating in the Subscription Form that the Holder intends to exercise the applicable Warrants by cashless exercise as provided for in Section 4.3.

 

	
4.2  

	
Effect of Exercise of Warrants

 

	
(a)  

	
On the first Business Day following the date the Company receives a duly executed Subscription Form and the Exercise Price for the number of Warrant Shares specified in the Subscription Form (the “Exercise Date”), the Warrant Shares so subscribed for will be deemed to have been issued and the Person(s) to whom such Warrant Shares have been deemed to be issued will be deemed to have become the holder (or holders) of record of such Warrant Shares on such date.

 

	
(b)  

	
As promptly as practicable after the Exercise Date and, in any event, within ten (10) Business Days of the Exercise Date, the Company will cause to be delivered to the Person in whose name the Warrant Shares so subscribed for are to be registered as specified in the Subscription Form, and courier to such Person at its respective address specified in the Subscription Form, a certificate for the appropriate number of fully paid and non-assessable Warrant Shares, which will not exceed that number which the Holder is entitled to purchase pursuant to the Warrant Certificate surrendered.

 

	
4.3  

	
Cashless Exercise.

 

If at any time between the date that is six months following the Issue Date and the Expiry Time, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then the Warrants may be exercised, in whole or in part, by means of a “cashless exercise” pursuant to the following formula:

 

X = Y(A-B)

 

      A

 

	
where:                X    =

	
the number of Warrant Shares to be issued to the Holder upon the cashless exercise;

 

	
  

	
Y   =

	
the number of Warrants to be exercised by way of cashless exercise;

 

	
  

	
A    =

	
the VWAP per Share for the ten (10) Business Days immediately preceding the Exercise Date; and

 

	
  

	
B     =

	
the Exercise Price at the time the Warrants are to be exercised.

 

  

A4

  

	
4.4  

	
Subscription for Less Than Entitlement

 

The Holder may subscribe for and purchase a number of Warrant Shares less than the number which the Holder is entitled to purchase pursuant to the surrendered Warrant Certificate.  In the event of any purchase of a number of Warrant Shares less than the number which can be purchased pursuant to the Warrant Certificate, the Holder, upon exercise thereof, will be entitled to receive a new Warrant Certificate in respect of the balance of the Warrant Shares which the Holder was entitled to purchase pursuant to the surrendered Warrant Certificate and which were not then purchased.

 

	
4.5  

	
Warrants for Fractions of Warrant Shares

 

If, on exercise or partial exercise of any Warrant, the Holder is entitled to receive a fraction of a Warrant Share, such Warrant may be exercised in respect of such fraction only in combination with another Warrant or Warrants which, in the aggregate, entitle the Holder to receive a whole Warrant Share.

 

	
4.6  

	
Expiration of Warrants

 

The Holder agrees that, after the Time of Expiry, all rights under the Warrant Certificate and these Terms and Conditions will wholly cease and terminate and the Warrants will be void and of no further force and effect.

 

	
4.7  

	
Adjustment of Exercise Price

 

	
(a)  

	
The Exercise Price and the number of Warrant Shares deliverable upon the exercise of the Warrants will be subject to adjustment in the event of and in the manner following:

 

	
(i)  

	
if and whenever the Shares at any time outstanding are subdivided into a greater, or consolidated into a lesser, number of Shares, the Exercise Price will be decreased or increased proportionately as the case may be. Upon any such subdivision or consolidation, the number of Warrant Shares deliverable upon the exercise of the Warrants will be increased or decreased proportionately as the case may be; and

 

	
(ii)  

	
in the case of any capital reorganization or of any reclassification of the capital of the Company, or in the case of the consolidation, merger or amalgamation of the Company with or into any other company (in any case, a “Reorganization”), each Warrant will, after such Reorganization, be deemed to confer the right to purchase the number of Warrant Shares or other securities of the Company (or of the company resulting from such Reorganization) which the Holder would have been entitled to upon the Reorganization if the Holder had been a shareholder of the Company at the time of such Reorganization.

 

  

A5

  

	
(b)  

	
In the case of any Reorganization, appropriate adjustments will be made in the application of the provisions of this Section 4.7 relating to the rights and interest thereafter of the Holder so that the provisions of this Section 4.7 will be made applicable as nearly as reasonably possible to any Warrant Shares or other securities deliverable after the Reorganization on the exercise of the Warrants.

 

	
(c)  

	
The subdivision or consolidation of Shares at any time outstanding into a greater or lesser number of Shares (whether with or without par value) will not be deemed to be a Reorganization for the purposes of this Section 4.7.

 

	
(d)  

	
The adjustments provided for in this Section 4.7 are cumulative and will become effective immediately after the applicable record date or, if no record date is fixed, the effective date of the event which results in such adjustments.

 

	
4.8  

	
Determination of Adjustments

 

If any questions will at any time arise with respect to the Exercise Price or any adjustment provided for in Section 4.7, such questions will be conclusively determined by the independent firm of accountants duly appointed as auditors of the Company, or, if they decline to so act, by any other firm of certified public accountants registered with the Public Company Accounting Oversight Board that the Company may designate and who will have access to all appropriate records, and such determination will be binding upon the Company and the Holder.

 

	
5.  

	
WAIVER OF CERTAIN RIGHTS

 

The Holder, as part of the consideration for the issue of the Warrants, waives and will not have any right, cause of action or remedy now or hereafter in any jurisdiction against any past, present or future incorporator, shareholder, director or officer of the Company for the issue of Warrant Shares pursuant to the exercise of any Warrant, or on any covenant, agreement, representation or warranty by the Company herein contained or contained in the Warrant Certificate.

 

	
6.  

	
MODIFICATION OF TERMS AND CONDITIONS FOR CERTAIN PURPOSES

 

From time to time, the Company may, subject to the provisions herein, modify the Terms and Conditions for the purpose of correction or rectification of any ambiguities, defective provisions, errors or omissions.

 

	
7.  

	
TIME OF ESSENCE

 

Time will be of the essence hereof.

 

	
8.  

	
SUCCESSORS

 

This Warrant Certificate will enure to the benefit of, and will be binding upon, the Company and its successors.

 

	
9.  

	
WARRANTS NOT TRANSFERABLE

 

None of the Warrants, nor any rights attached to any of them, are transferable.

  

A6

  

A

APPENDIX B

 

SUBSCRIPTION FORM

 

	
TO:

	
bBooth, Inc.

901 Hancock Ave, Unit 308

West Hollywood, CA  90069

 

The undersigned holder of the within Warrant Certificate (the “Holder”) hereby subscribes for:

 

	
(a)  

	
shares of common stock (each, a “Share”) in the capital of bBooth, Inc. (the “Company) at an exercise price of $0.07 per Share, in which case this Subscription Form is accompanied by a certified cheque or bank draft payable to the Company, or the Holder has arranged for a wire transfer to such account as has been directed by the Company, for the whole amount of the purchase price of the Shares; or

 

	
(b)  

	
such number of Shares as is determined in accordance with the cashless exercise mechanism set out in Section 4.3 of the Terms and Conditions to which this Appendix B is attached (the “Terms and Conditions”),

 

in either case in accordance with the Terms and Conditions.

 

The Holder represents and Warrants that the Holder is an accredited investor (as such term is defined in Regulation D promulgated under the Securities Act of 1933, as amended).

 

The Holder hereby directs that the Shares hereby subscribed for be registered and delivered as follows:

 

	
NAME(S) IN FULL

	  	
ADDRESS(ES)

	  	
NUMBER OF SHARES

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	
TOTAL:

	  	  

 

(Please print the full name in which share certificates are to be issued, stating whether Mr., Mrs. or Miss is applicable).

 

DATED this _____ day of ______________________, 20___.

 

In the presence of:

 

 

_____________________________________________________

Signature of Holder

 

 

_____________________________________________________

Name of Holder (please print)

 

 

 

_____________________________________________________

Address of Holder

 

 

  

A7

  

LEGENDS

 

The certificates representing the Shares acquired on the exercise of the Warrants will bear the following legends, if and as applicable, and all such other legends as may be required at the time of exercise under applicable securities laws:

 

NONE OF THE SECURITIES REPRESENTED HEREBY, NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE, HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO A U.S. PERSON (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE AND FOREIGN SECURITIES LAWS.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

 

INSTRUCTIONS FOR SUBSCRIPTION FORM

 

The signature to the Subscription Form must correspond in every particular with the name written upon the face of the Warrant Certificate without alteration or enlargement or any change whatever.  If there is more than one subscriber, all must sign.

 

In the case of Person(s) signing by agent or attorney or by personal representative(s), the authority of such agent, attorney or representative(s) to sign must be proven to the satisfaction of the Company.

 

If the Warrant Certificate and the Subscription Form are being sent by mail, they must be sent by registered mail.

 

 

  

A8ex4-3.htm

Exhibit 4.3

 

RICH UNCLES NNN REIT, INC.

 

SHARE REPURCHASE PROGRAM

 

The Board of Directors (the “Board”) of Rich Uncles NNN REIT, Inc., a Maryland corporation (the “Company”), has adopted this Share Repurchase Program (this “Repurchase Program”) to permit and authorize the Company to repurchase shares of its Common Stock, par value $0.01 per share (the “Shares”), subject to the terms, conditions and limitations set forth herein.

 

The effective date of this Repurchase Program is [            ], 2016.

 

Repurchase Price.

 

The Company is authorized to repurchase Shares from its stockholders at the following prices per Share:

 

	
  

	
if the Shares have been beneficially owned by the requesting stockholder continuously for less than one (1) year, the repurchase price per Share shall be equal to 97.0% of the most recently published NAV (as defined below), or, if none, then $10.00 per Share;

 

	
  

	
if the Shares have been beneficially owned by the requesting stockholder continuously for at least one (1) year, but less than two (2) years, the repurchase price per Share shall be equal to 98.0% of the most recently published NAV, or, if none, then $10.00 per Share;

 

	
  

	
if the Shares have been beneficially owned by the requesting stockholder continuously for at least two (2) years, but less than three (3) years, the repurchase price per Share shall be equal to 99.0% of the most recently published NAV, or, if none, then $10.00 per Share; and

 

	
  

	
if the Shares have been beneficially owned by the requesting stockholder continuously for at least three (3) years, the repurchase price per Share shall be equal to 100.0% of the most recently published NAV, or, if none, then $10.00 per Share.

 

For purposes of determining the time period a stockholder has held each Share, the time period begins as of the date the stockholder acquired the Share (whether by third party re-sale or from directly from the Company). For the avoidance of doubt, and as described above, the Shares owned by a stockholder may be repurchased at different prices depending on how long the stockholder has held each Share submitted for repurchase. Notwithstanding anything to the contrary herein, the price for the repurchase of Shares shall not exceed a per Share amount equal to the then current public offering price for the Shares during the period of any on-going public offering.

 

“NAV” shall mean the net asset value per Share as determined, on an annual basis, by an independent valuation conducted by a third-party firm selected by the Company, commencing December 31, 2016, as published, from time to time, in the Company’s Annual Report on Form 10-K, a Quarterly Report on Form 10-Q and/or a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”).  The Company will also provide information about its NAV on its website (such information may be provided by means of a link to the Company’s public filings on the SEC’s website, www.sec.gov).

 

Terms for Repurchases.

 

General.  The Company’s Repurchase Program is designed to provide eligible stockholders with limited, interim liquidity by enabling them to sell Shares back to the Company prior to a secondary trading market for the Shares developing. A stockholder may elect to participate in the Repurchase Program with respect to all or a designated portion of that stockholder’s Shares.  If, after giving effect to a stockholder’s request to repurchase less than all of such stockholder’s Shares, such stockholder would own less than 500 Shares, then the Company shall have the right to repurchase all of such stockholder’s shares.

 

Funding.  The Company is authorized, for the purpose of repurchasing Shares under this Repurchase Program, in a particular calendar month, to use solely the Company’s cash reserves, net proceeds from the Company’s lines of credit, if any, net proceeds from Shares sold during the month Shares are submitted for repurchase, if any, and net proceeds from the sale of Shares under the Company’s Distribution Reinvestment Plan, (such amounts, in aggregate, the “Funds”). The Company may increase or decrease the funding available for the repurchase of Shares pursuant to the Repurchase Program upon ten (10) business days’ notice to its stockholders. The Company may provide notice by including such information (i) in the Company’s Annual Report on Form 10-K, a Quarterly Report on Form 10-Q and/or a Current Report on Form 8-K filed with the SEC or (ii) in a separate written notification to its stockholders.  Notwithstanding anything to the contrary herein, if, during any calendar month, the aggregate amount of Funds exceeds the aggregate amount needed to repurchase all Shares for which repurchase requests have been received by the Company, the Company may, but shall not be obligated to, carry over the excess amount of Funds to a subsequent calendar month(s) for use in addition to the amount of Funds otherwise available for repurchases during such subsequent calendar month(s).

 

  

  

  

 

Repurchase Limitations.  Notwithstanding anything to the contrary herein, the Company may not repurchase Shares in an amount that would violate the restrictions on distributions under Maryland law, which prohibit distributions that would cause a corporation to fail to meet statutory tests of solvency. Further, in any given calendar month, funds used for the purpose of repurchases may not exceed the Funds, including any excess amount carried over pursuant to Section 2(b) above (the “Repurchase Limitations”).

 

Pro Rata Repurchase; Repurchase of Shares in the Following Month.  The Company cannot guarantee that it will be able to repurchase all Shares for which repurchase requests are received. In any calendar month, if the Company determines not to repurchase all Shares presented for repurchase during that month, including as a result of the application of the Repurchase Limitations, the Company shall, to the extent it decides to make repurchases, repurchase Shares from stockholders on a pro rata basis, based on the number of Shares requested to be repurchased, up to, but not in excess of, the Repurchase Limitations. Any stockholder (i) whose repurchase request has been partially accepted by the Company in a particular calendar month or (ii) whose repurchase request was not fulfilled in part or in full as a result of the Company not receiving the repurchase request in time, the suspension of the Repurchase Program, or otherwise, shall, in each of (i) and (ii), have all or the remainder, as applicable, of his, her or its request included with all new repurchase requests received by the Company in the immediately following calendar month. In the event a stockholder wishes to withdraw his, her or its repurchase request in the following calendar month, he, she or it may provide the Company with a written request of withdrawal pursuant to Section 3(d).  Notwithstanding anything to the contrary contained herein, if a pro rata repurchase would result in a stockholder owning less than 500 Shares, then the Company shall repurchase all of such stockholder’s Shares.

 

General Terms of Repurchase.

 

Repurchase Requests.  A stockholder may request (a “Requesting Party”) that the Company repurchase Shares by submitting a repurchase request to the Company, in the form attached as Exhibit A hereto (as may be amended from time to time by the Company) or through such stockholder’s personal on-line dashboard at www.RichUncles.com.  To be effective in a particular calendar month, the Company must receive a repurchase request no later than the fifth day of the month prior to the Repurchase Date (as defined in Section 3(c) below). No repurchase request shall be given preference over any other repurchase request.

 

No Encumbrances.  All Shares requested to be repurchased under this Repurchase Program must (i) be beneficially owned by the stockholder(s) of record making the presentment, or the party presenting the Shares must be authorized to do so by the owner(s) of record of the Shares, and (ii) fully transferable and not be subject to any liens or other encumbrances. In certain cases, the Company may ask the Requesting Party to provide evidence satisfactory to the Company, in its sole discretion, that the Shares requested for repurchase are free from liens and other encumbrances. If the Company determines that a lien or other encumbrance exists against the Shares, the Company shall have no obligation to repurchase, and shall not repurchase, any of the Shares subject to the lien or other encumbrance.

 

Time of Repurchase.  The Company shall make repurchases of Shares under this Repurchase Program on the fifth business day of each calendar month (the “Repurchase Date”). As soon as reasonably practicable following the date of each monthly repurchase hereunder, the Company shall send to the applicable Requesting Party all cash proceeds resulting from the repurchase of the stockholder’s Shares.

 

Withdrawal of Repurchase Request.  In the event a Requesting Party wishes to withdraw his, her or its repurchase request to have Shares repurchased under this Repurchase Program, he, she or it shall provide the Company with a written request of withdrawal. The Company will not repurchase Shares so long as the Company receives the written request of withdrawal at least five (5) business days prior to the Repurchase Date.

 

Ineffective Withdrawal.  In the event the Company receives a written notice of withdrawal, as described in Section 3(d), from a Requesting Party less than five (5) business days prior to the Repurchase Date, the notice of withdrawal shall not be effective with respect to the Shares repurchased, but shall be effective with respect to any of the Shares not repurchased. The Company shall provide the Requesting Party with prompt written notice of the ineffectiveness or partial ineffectiveness of the written notice of withdrawal.

 

  

  

  

 

	
  

	
Treatment of Repurchased Shares.  All Shares repurchased by the Company pursuant to this Repurchase Program shall be cancelled and shall have the status of authorized but unissued shares.

 

	
  

	
Termination of Repurchase Program.  This Repurchase Program shall be suspended or terminated, as the case may be, and the Company shall not accept Shares for repurchase upon the occurrence of any of the following:

 

This Repurchase Program shall immediately terminate, without further action by the Board or any notice to the Company’s stockholders, in the event the Shares are approved for listing on any national securities exchange or included for quotation in a national securities market or a secondary trading market for the Shares otherwise develops.

 

This Repurchase Program may be suspended (in whole or in part) or terminated at any time by the Board, in its sole discretion.  Any such suspension or termination shall not require stockholder approval.

 

	
  

	
Amendment.  Notwithstanding anything to the contrary herein, this Repurchase Program may be amended, in whole or in part, by the Board, in its sole discretion, at any time or from time to time. Any such amendment shall not require stockholder approval.

 

Miscellaneous.

 

Notice.  In the event of any amendment, suspension or termination of this Repurchase Program pursuant to Section 5 or Section 6 hereof, as the case may be, the Company shall provide written notice to its stockholders at least thirty (30) days prior to the effective date of the amendment, suspension or termination; provided, that, the Company may increase or decrease the funding available for the repurchase of Shares pursuant to the Repurchase Program upon ten (10) business days’ notice to its stockholders. The Company may provide notice by including such information (i) in the Company’s Annual Report on Form 10-K, its Quarterly Report on Form 10-Q and/or its Current Report on Form 8-K filed with the SEC or (ii) in a separate written notification to its stockholders.  During the Company’s primary offering stage, the Company would also include this information in a prospectus supplement or post-effective amendment to its registration statement, as required under federal securities law.

 

Liability.  Subject to the limitations contained in the Company’s articles of incorporation, as amended, the Company shall not have any liability to any stockholder for the value of the Shares presented for repurchase, the repurchase price of the Shares or for any damages resulting from the presentation of Shares for repurchase or the repurchase of Shares under this Repurchase Program or from the Company’s determination not to repurchase Shares under the Repurchase Program, except as a result of the Company’s negligence, misconduct or violation of applicable law; provided, however, that nothing contained herein shall constitute a waiver or limitation of any rights or claims that a stockholder may have under federal or state securities laws.

 

Taxes.  Stockholders shall have sole responsibility and liability for the payment of all taxes, assessments and other applicable obligations resulting from the repurchase of Shares pursuant to this Repurchase Program and the Company shall not have any such responsibility or liability.

 

Administration and Costs.  The Company shall perform all recordkeeping and other administrative functions involved in operating and maintaining the Repurchase Program and shall bear all costs involved in organizing, administering and maintaining the Repurchase Program. No fees will be paid to the Company’s sponsor, its business manager, its directors or any of their affiliates in connection with the repurchase of shares by the Company pursuant to this Repurchase Program.

 

  

  

  

EXHIBIT “A”

SHARE REPURCHASE REQUEST

The undersigned stockholder of Rich Uncles NNN REIT, Inc. (the “Company”) hereby requests that, pursuant to the Company’s Share Repurchase Program, the Company repurchase the number of shares of Company common stock (the “Shares”) indicated below.

 

STOCKHOLDER’S NAME:

 

STOCKHOLDER’S ADDRESS:

 

TOTAL SHARES OWNED BY STOCKHOLDER:

NUMBER OF SHARES PRESENTED FOR REPURCHASE:

By signing and submitting this form, the undersigned hereby acknowledges and represents to the Company the following:

The undersigned is the owner (or duly authorized agent of the owner) of the Shares presented for repurchase, and thus is authorized to present the Shares for repurchase.

 

The Shares presented for repurchase are eligible for repurchase pursuant to the Share Repurchase Program. The Shares are fully transferable and have not been assigned, pledged, or otherwise encumbered in any way.

 

The undersigned hereby indemnifies and holds harmless the Company and its respective officers, directors and employees from and against any liabilities, damages, expenses, including reasonable attorneys’ fees, arising out of or in connection with any misrepresentation made herein.

 

Stock certificates for the Shares presented for repurchase (if applicable) are enclosed, properly endorsed with signature guaranteed.

 

It is recommended that this Share Repurchase Request and any attached stock certificates be sent to the Company, at the address below, via overnight courier, certified mail, or other means of guaranteed delivery.

 

Rich Uncles NNN REIT, Inc.

ATT:  Share Repurchase Department

3080 Bristol Street, Suite 550

Costa Mesa, CA 92626

(855) 742-4862

 

	
 

Stockholder Name:____________________________

 

Signature:____________________________________

 

Name of Signatory (if Stockholder is an entity):______________________________________

 

Title of Signatory (if Stockholder is an entity):______________________________________

 

Date:________________________________________

 

	  

Office Use Only

 Date Request Received:

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