Document:

Blueprint

 Exhibit 10.2

 

 

FORM
OF

JOINDER AND AMENDMENT TO EXCHANGE
AND SUBSCRIPTION AGREEMENT

 

This
JOINDER AND AMENDMENT (the “Amendment”) to the
EXCHANGE AND SUBSCRIPTION AGREEMENT, dated as of January 10, 2020
(the “Agreement”), as
amended from time to time by and among RUMBLEON, INC. (the
“Company”) and
___________________________
, ___________________________
, and ___________________________
, (each, an “Investor”) is
entered into and shall be effective as of January 13, 2020 (the
“Effective Date”), among each
Investor, ___________________________
.. (the “New
Investor”) and the Company (referred individually as
“Party” and
collectively as “Parties”).

 

WITNESSETH:

 

WHEREAS, the
Company and the Investors entered into the Agreement pursuant to
which the Investors (i) will tender their existing 6.75%
Convertible Senior Notes due 2024 (CUSIP 781386 AA5 and ISIN:
US781386AA56) (the “Old Notes”) for an amount of New
Notes determined as set forth in the Agreement and (ii) subscribed
for and will purchase from the Company New Notes for cash;
and

 

WHEREAS, the
Company and the Investors now wish to revise and update the
Agreement as of the Effective Date to add the New Investor and
amend certain terms as set forth below;

 

NOW,
THEREFORE, in consideration of the mutual agreements herein
contained, the receipt and legal sufficiency of which is hereby
acknowledged, the Parties agree as follows:

 

1.

Definitions. Terms defined in
the Agreement shall, except to the extent that the context
otherwise requires, bear the same respective meanings in this
Amendment.

 

2.

Amendments. The Agreement shall
be amended as follows:

 

a.

Section 5(s) shall
be deleted in its entirety and replaced with the
following:

 

Registration Rights of Third Parties.
Except (i) pursuant to that certain registration rights
agreement, dated May 14, 2019, between the Company and JMP
Securities LLC (“JMP Securities LLC Registration Rights
Agreement”), and (ii) as has been publicly disclosed in
the SEC Reports, no holders of any securities of the Company or any
rights exercisable for or convertible or exchangeable into
securities of the Company have the right to require the Company to
(i) register the sale or resale of any such securities of the
Company under the Securities Act (other than pursuant to the
Registration Rights Agreement), (ii) include any such securities in
a registration statement to be filed by the Company (including any
registration statement required to be filed pursuant to the
Registration Rights Agreement, other than the holders of the New
Notes) or (iii) register the resale of any securities of the
Company held by such persons, or that such persons may acquire upon
the exercise or conversion of any other securities of the Company
or pursuant to the prospectus as part of the Concurrent Common
Stock Offering. Company hereby represents and warrants that any
rights under the JMP Securities LLC Registration Rights Agreement
are not in conflict or inconsistent with any registration rights
granted to holders of the New Notes.

 

 

 

 

b.

Section 6(u) shall
be deleted in its entirety and replaced with the
following:

 

The
operations of the Investor have been conducted in material
compliance with the rules and regulations administered or conducted
by the U.S. Department of Treasury Office of Foreign Assets Control
(“OFAC”)
applicable to the Investor. The Investor, or its delegates have
performed due diligence necessary to reasonably determine that its
(or, where applicable, the Accounts’) investors are not named
on the lists of denied parties or blocked persons administered by
OFAC, resident in or organized under the laws of a country that is
the subject of comprehensive economic sanctions and embargoes
administered or conducted by OFAC (“Sanctions”), or otherwise the
subject of Sanctions.

 

c.

Section 8 shall be
deleted in its entirety and replaced with the
following:

 

Covenant and Acknowledgment of the
Company. At or prior to 9:00 a.m., New York City time, on
the first business day after the date hereof, the Company shall
issue a press release or file with the Commission a Current Report
on Form 8-K announcing the New Notes Offering and disclosing all
material terms of the transaction contemplated by this Agreement as
well as any material non-public information, which press release
the Company acknowledges and agrees will disclose all confidential
information communicated by or on behalf of the Company to the
Investor in connection with the New Notes Offering and any
transaction contemplated by this Agreement. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of the
Investor, any of its Accounts, or their respective affiliates and
investment advisors, or include the name of the Investor, any of
its Accounts, or their respective affiliates and investment
advisors in any press release or in any filing with the Commission
or any regulatory agency or trading market, without the prior
written consent of the Investor, except (i) as required by the
federal securities laws in connection with the transaction
contemplated hereby, and (ii) to the extent such disclosure is
required by law, at the request of the Staff of the Commission, any
representative of Nasdaq or any other regulatory agency, in which
case the Company shall, to the extent practicable, provide the
Investor with prior written notice of such disclosure.

 

d.

Exhibit A of the
Agreement shall be deleted in its entirety and replaced with
Exhibit A attached hereto.

 

e.

Exhibit B of the
Agreement shall be deleted in its entirety and replaced with
Exhibit B attached hereto.

 

f.

Except as expressly
provided herein, no other changes or modifications to the Agreement
are intended or implied, and in all other respects the Agreement is
hereby specifically ratified, restated and reaffirmed by the
Parties.

 

3.

Representations. Each party
represents to the other parties that all representations contained
in the Agreement are true and accurate as of the date of this
Amendment, and that such representations are deemed to be given or
repeated by each Party, as the case may be, on the date of this
Amendment.

 

4.

Integration/Effect of
Amendment. This Amendment and any instrument and agreements
delivered pursuant hereto constitute the entire agreement of the
Parties with respect to the subject matter hereof and thereof, and
supersede all prior oral and written communications with respect to
the subject matter hereof and thereof. To the extent that any
provision of the Agreement is inconsistent with the provisions of
this Amendment, the provisions of this Amendment shall
control.

 

5.

Governing Law. This Amendment
shall be construed in accordance with and governed by the laws of
the State of New York excluding any principles of conflicts of law
or other rule of law that would cause the application of the law of
any jurisdiction other than the laws of the State of New
York.

 

6.

Counterparts. This Amendment
may be executed in any number of counterparts and any such
counterpart shall be deemed an original, but all such counterparts
shall constitute one and the same agreement.

 

 

 

 

[Remainder
of this page intentionally left blank; signature page to
follow]

 

IN
WITNESS WHEREOF, the parties hereto have entered into this
Amendment as of the date set forth above.

 

 

	

 

	
___________________________

By:

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

	

 

	
RUMBLEON,
INC.  

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

	

 

	
___________________________

By:

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

 

	

 

	

 

	

By:  
 

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

	

 

	
___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

 

	

 

 

	

 

	
___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	
	

 

  

	
 

	
___________________________

	
 

	
 

	
 

	
 

	
 

	

	
By:  

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	
	
 

 

 

 

 

EXHIBIT A

 

 

The Exchange Ratio: 1.0

 

 

 

 

 

 

 

 

EXHIBIT BBlueprint

Exhibit 10.3 

 

FORM OF

 

NOTE EXCHANGE AGREEMENT

 

THIS NOTE EXCHANGE
AGREEMENT (this
“Agreement”) is dated as of January 14, 2020 (the
“Closing
Date”), between RumbleOn,
Inc., a Nevada corporation (the “Company”), and ___________
(the “Holder”) and relates to the proposed exchange of
that certain promissory note, dated ___________,
payable by the Company to the Holder (the
“Note”),
which Note is attached hereto as Exhibit
A, for a new note
substantially in the form attached
hereto as Exhibit B
(“New Note”);

 

Recitals

 

WHEREAS, the principal and accrued interest from January
1, 2020 due under the terms of the Note as of the Closing Date is
$___________
(the “Outstanding
Amount”);

 

WHEREAS, the Note is set to mature on March 31, 2020 (the
“Maturity
Date”);
and

 

WHEREAS, the parties wish to cancel the Note in exchange
for the New Note for the Outstanding Amount, substantially
in the form attached hereto as Exhibit B.

 

NOW, THEREFORE,
in consideration of the foregoing and
for other good and valuable consideration, the receipt and
sufficiency of which are hereby agreed and acknowledged, the
parties hereto hereby agree as follows:

 

1. Securities
Exchange.

 

(a)
Upon the following terms and subject
to the conditions contained herein, the Holder agrees to deliver to
the Company the Note in exchange for the New Note and the Company
agrees to deliver to the Holder the New Note.

 

(b)
The execution and delivery of this
Agreement by the parties hereto and the closing under this
Agreement (the “Closing”) shall occur upon execution of this
Agreement and the delivery of the Note to the Company for
cancellation. At Closing, (i) the New Note issued in exchange for
cancellation of the Note shall be deemed the full and final
consideration for the cancellation of the Note, and the Note shall
thereby be fully satisfied, terminated and of no further force and
effect without any further action by any party; and (ii) all
security interests and other liens of every type at any time
granted to or held by the Holder as security for the indebtedness
evidenced by the Note shall be terminated and automatically
released without further action by the Holder.

 

2. Waiver.
The Holder hereby irrevocably waives the provisions set forth in
the Note such that: (i) the Company will not incur any penalty or
premium by the exchange of the Note for the New Note; (ii) the
Company will not be obligated or required to pay any further
interest accrued under the terms of the Note; and (iii) and the
Holder will accept the New Note, rather than cash, as full
satisfaction of the Company’s obligations under the
Note.

 

 

 

 

3. Representations,
Warranties and Covenants of the Holder. The Holder hereby makes the following
representations and warranties to the Company, and covenants for
the benefit of the Company.

 

(a)
This Agreement has been duly
authorized, validly executed and delivered by the Holder and is a
valid and binding agreement and obligation of the Holder
enforceable against the Holder in accordance with its terms,
subject to limitations on enforcement by general principles of
equity and by bankruptcy or other laws affecting the enforcement of
creditors’ rights generally, and the Holder has the power and
authority to execute and deliver this Agreement and documents
contemplated hereby and to perform its obligations hereunder and
thereunder.

 

(b)
The Holder did not receive any other
form of additional consideration in connection with the issuance of
the New Note.

 

(c)
The Holder understands that the New
Note is being offered and sold in reliance on specific provisions
of federal and state securities laws and that the Company is
relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the
Holder set forth herein for purposes of qualifying for exemptions
from registration under the Securities Act of 1933, as amended (the
“Securities
Act”), and applicable
state securities laws.

 

 (d)
The Holder owns and holds,
beneficially and of record, the entire right, title, and interest
in and to the Note free and clear of all rights and Encumbrances
(as defined below) other than restrictions under the Securities Act
and other applicable federal and state securities laws. The Holder
has full power and authority to transfer and dispose of the Note
free and clear of any right or Encumbrance other than restrictions
under the Securities Act and other applicable federal and state
securities laws. Other than the transactions contemplated by this
Agreement, there is no pending proposal, or other right of any
person to acquire all or any of portion of the Note.
“Encumbrances”
shall mean any security or other property interest or right, claim,
lien, pledge, option, charge, security interest, contingent or
conditional sale, or other title claim or retention agreement
interest or other right or claim of third parties, whether
perfected or not perfected, voluntarily incurred or arising by
operation of law, and including any agreement (other than this
Agreement) to grant or submit to any of the foregoing in the
future.

 

 (e)
The Holder is an “accredited
investor” as defined under Rule 501 of Regulation D
promulgated under the Securities Act, with sufficient knowledge and
experience in financial matters as to be capable of evaluating the
risks and merits of the transaction contemplated
hereby.

 

(f)
The Holder is acquiring the New Note
for the Holder’s own account, for investment purposes, and
not with a view to any resale or distribution in whole or in part,
in violation of the Securities Act or any applicable securities
laws; provided, however, that by making the representations herein, the
Holder does not agree to hold the New Note for any minimum or other
specific term and reserves the right to dispose of any shares of
the Company’s Class B Common Stock, $0.001 par value,
issuable upon conversion of the New Note
(“Conversion
Shares”) at any time in
accordance with federal and state securities laws applicable to
such disposition.

 

(g)
The Holder understands that the
Conversion Shares are “restricted securities,” as that
term is defined in the Securities Act and the rules thereunder,
have not been registered under the Securities Act, and that none of
the Conversion Shares can be sold or transferred unless they are
first registered under the Securities Act and such state and other
securities laws as may be applicable or an exemption from
registration under the Securities Act is available (and then the
Conversion Shares may be sold or transferred only in compliance
with such exemption and all applicable state and other securities
laws).

 

(h)
No person or entity, other than the
Company, has been authorized to give any information or to make any
representation on behalf of the Company in connection with the New
Note, and if given or made, such information or representations
have not been relied upon by the Holder as having been made or
authorized by the Company. The only representations and warranties
made by the Company in connection with the New Note are those
contained in this Agreement, and the only information made
available by the Company in connection with the New Note is
contained in this Agreement.

 

 

 

 

4. Representations,
Warranties and Covenants of the Company. The Company represents and warrants to the
Holder, and covenants for the benefit of the Holder, as
follows:

 

(a)
The Company has been duly incorporated
and is validly existing and in good standing under the laws of the
state of Nevada, with full corporate power and authority to own,
lease and operate its properties and to conduct its business as
currently conducted.

 

(b)
This Agreement has been duly
authorized, validly executed and delivered on behalf of the Company
and is a valid and binding agreement and obligation of the Company
enforceable against the Company in accordance with its terms,
subject to limitations on enforcement by general principles of
equity and by bankruptcy or other laws affecting the enforcement of
creditors’ rights generally, and the Company has full
corporate power and authority to execute and deliver this Agreement
and the other agreements and documents contemplated hereby and to
perform its obligations hereunder and
thereunder.

 

(c)
The Company covenants and agrees that
promptly following the Closing, the Note will be cancelled and
retired by the Company.

 

5. Fees and
Expenses. Each party hereto
shall pay the fees and expenses of its advisors, counsel,
accountants and other experts, if any, and all other expenses,
incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this
Agreement.

 

6. Waiver of
Interest. In addition to the
waiver of any and all further accrued interest under Section 2 of
this Agreement, the Holder hereby irrevocably waives any and all
claims, demands, suits, actions, causes of action and rights
whatsoever at law or in equity, now existing or arising relating to
any further accrued and unpaid interest on the Note or any other
agreement between the parties. The Holder hereby acknowledges and
agrees that it shall not commence or prosecute in any way, or cause
to be commenced or prosecuted, any action in any court relating to
such accrued and unpaid interest.

 

7. Governing Law; Consent
to Jurisdiction. This Agreement
shall be governed by and interpreted in accordance with the laws of
the State of Nevada without giving effect conflicts of law
principles that would result in the application of the substantive
laws of another jurisdiction. EACH PARTY WAIVES ITS RIGHT TO A
TRIAL BY JURY.

 

8. Entire
Agreement. This Agreement
constitutes the entire understanding and agreement of the parties
with respect to the subject matter hereof and supersedes all prior
and/or contemporaneous oral or written proposals or agreements
relating thereto all of which are merged herein. This Agreement may
not be amended or any provision hereof waived in whole or in part,
except by a written amendment signed by all of the parties
hereto.

 

9. Counterparts.
This Agreement may be executed by facsimile signature or electronic
PDF signature and in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the
same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

	
 

 

 

 

 

 

 

 

 

IN
WITNESS WHEREOF, this Agreement was duly executed on the date first
written above.

 

 

	

 

	
RUMBLEON,
INC.

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	
Marshall
Chesrown

	

 

	

 

	

 

	

Chief Executive
Officer

	

 

	

 

	

 

	

 

	

 

	

 

	

By:  
 

	

	

 

	

 

	

 

	

Name: 

	

 

	

 

	

 

	

Title: 

	

 

 

 

 

 

EXHIBIT A

 

The Note

(see attached)

 

 

 

EXHIBIT B

 

New Note

 
See Exhibit 10.4 to the Form 8-K.

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