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  Exhibit 10.2

 

INTERCREDITOR AGREEMENT

 

THIS
INTERCREDITOR AGREEMENT (as amended, restated, supplemented or
otherwise modified from time to time, this “Agreement”) is entered
into as of April 30, 2018, by and between (a) HERCULES CAPITAL,
INC., a Maryland corporation, in its capacity as administrative
agent under the Hercules Loan Agreement, as defined below
(“Hercules”), and (b) ALLY
BANK (“Ally
Bank”), and ALLY FINANCIAL INC. (“Ally Financial”, and
together with Ally Bank, collectively, the “Ally Parties”), as
lenders under the Ally Financing Agreement, as defined below.
Hercules and the Ally Parties are each sometimes referred to herein
individually as a “Lender” and collectively as
“Lenders”.

 

RECITALS

 

 

A. Hercules, RUMBLEON,
INC., a Nevada corporation (“Parent”), NEXTGEN PRO,
LLC, a Delaware limited liability company (“NextGen Pro”), RMBL
MISSOURI, LLC, a Delaware limited liability company
(“RMBL
Missouri”), RMBL TEXAS, LLC, a Delaware limited
liability company (“RMBL Texas”), and certain
other persons from time to time party hereto (together with Parent,
NextGen Pro, RMBL Missouri and RMBL Texas, individually, each, a
“Borrower”, and
collectively, “Borrowers”) are parties
to that certain Loan and Security Agreement, dated as of April 30,
2018 (as may be amended, modified, restated, replaced, or
supplemented from time to time, the “Hercules Loan
Agreement”), whereby Hercules has made or will make
available to Borrower a secured loan facility in the maximum
principal amount of Twenty Million Dollars ($20,000,000). The
facility contemplated by the Hercules Loan Agreement shall be
referred to herein as the “Hercules
Loan”.

 

 

B. The Ally Parties
and RMBL Missouri are parties to that certain Inventory Financing
and Security Agreement, dated as of February 16, 2018 (as the same
has been and may be further amended, modified, restated, replaced,
or supplemented from time to time pursuant to the terms herein, the
“Ally Financing
Agreement”), whereby the Ally Parties have agreed to
make available to RMBL Missouri a secured loan facility up to an
aggregate principal amount of Twenty-Five Million Dollars
($25,000,000). The facility contemplated by the Ally Financing
Agreement shall be referred to herein as the “Ally Loan”.

 

C. All of the
obligations and indebtedness of Borrower to Hercules under the
Hercules Loan Documents are secured by the Hercules Collateral and
all of the obligations and indebtedness of Borrower to the Ally
Parties under the Ally Financing Documents are secured by the Ally
Collateral, each as defined below.

 

D. Hercules and the
Ally Parties desire to set forth in this Agreement their respective
rights and obligations with respect to the Collateral, as defined
below.

AGREEMENT

 

The
parties agree as follows:

 

1.

DEFINITIONS AND
CONSTRUCTION

 

1.1 Definitions. As used in this
Agreement, the following terms shall have the following
definitions:

 

“Account” is any
“account” as defined in the UCC, and includes, without
limitation, all accounts receivable and other sums owing to any
Borrower.

 

“Account Control
Agreement” means any agreement entered into by and
among Hercules, any Borrower and a third party bank or other
institution in which any Borrower maintains a Deposit Account or
Investment Account and which perfects Hercules’s first
priority security interest in and/or provides rights to exercise
exclusive control with respect to the subject account or
accounts.

 

 

 

 

“Ally Bank” has the
meaning given to such term in the preamble.

 

“Ally Collateral” means
the property of certain Borrowers described in Exhibit
B.

 

“Ally Credit Balance”
means moneys paid by Borrower to Ally Bank pursuant to that certain
Credit Balance Agreement, dated as of February 16, 2018, by and
between Ally Bank and RMBL Missouri, provided that such amount
shall not exceed 10% of the approved credit line under the Ally
Financing Documents.

 

“Ally Debt Cap” means
$27,500,000 (or such higher amount as permitted under the Hercules
Loan Agreement as Qualified Inventory Financing (as defined in the
Hercules Loan Agreement)).

 

“Ally Financed Vehicles”
means, as of any date of determination, vehicles then held by RMBL
Missouri and acquired with or held as a result of inventory
financing provided pursuant to the Ally Financing Agreement,
including any vehicle with respect to which the Ally Parties have
made a loan or advance secured by such vehicle and which is
specifically identified in written or electronic documents
customarily or regularly prepared and delivered to Borrower for the
purpose of identifying the vehicle as one for which the Ally
Parties have given new value.

 

“Ally Financial” has the
meaning given to such term in the preamble.

 

“Ally Financing Agreement”
has the meaning given to such term in Recital B.

 

“Ally Financing Documents”
means the Ally Financing Agreement, any addenda thereto, including
the Addendum to Inventory Financing and Security Agreement,
effective as of February 16, 2018, the Guaranty dated as of
February 16, 2018, by Parent for the benefit of the Ally Parties,
the General Security Agreement, dated as of February 16, 2018,
among the Ally Parties and Parent, the Cross Collateral, Cross
Default and Guaranty Agreement, dated as of February 16, 2018, by
and among the Ally Parties, RMBL Missouri and Parent, the Credit
Balance Agreement, dated as of February 16, 2018, by and between
Ally Bank and RMBL Missouri, the SmartCash Agreement, dated as of
February 16, 2018, by and between Ally Bank and RMBL Missouri, and
all other documents entered into in connection with the Ally
Financing Agreement, in each case as may be amended, modified,
restated, replaced, or supplemented from time to time pursuant to
the terms herein.

 

“Ally Loan” has the
meaning given to such term in Recital B.

 

“Ally Parties” has the
meaning given to such term in the preamble.

 

“Ally Priority Collateral”
means, as of any date of determination, all right, title, and
interest of RMBL Missouri in and to any Ally Financed Vehicle. For
further clarity, if no Event of Default has occurred, Proceeds of
any Ally Financed Vehicle shall cease to constitute Ally Priority
Collateral upon the earlier of payment to the Ally Parties of the
advance associated with such Ally Financed Vehicle or 30 days after
RMBL Missouri’s sale or disposition of such Vehicle. After
the occurrence of an Event of Default, provided that the Ally
Parties have provided notice of such Event of Default to Hercules
within 30 days of such Event of Default, Proceeds of all Collateral
constituting Ally Financed Vehicles at the time that the Event of
Default occurred shall constitute Ally Priority Collateral (or if
notice was provided later than 30 days after such Event of Default,
Collateral constituting Ally Financed Vehicles as of the date that
is 30 days prior to the date the notice of Event of Default was
given).

 

“Bankruptcy Code” means
the federal bankruptcy law of the United States as from time to
time in effect, currently as Title 11 of the United States
Code. Section references to current sections of the Bankruptcy Code
shall refer to comparable sections of any revised version thereof
if section numbering is changed.

 

“Borrower” and
“Borrowers” have the
respective meanings given to such terms in the
preamble.

 

“Business Day” means any
day other than Saturday, Sunday and any other day on which banking
institutions in the State of California are closed for
business.

 

 

2

 

 

“Claim” means, with
respect to any Lender, any and all present and future
“claims” (used in its broadest sense, as contemplated
by and defined in Section 101(5) of the Bankruptcy Code, but
without regard to whether such claim would be disallowed under the
Bankruptcy Code) of such Lender now or hereafter arising or
existing under or relating to the respective Loan Documents (as
applicable), whether joint, several, or joint and several, whether
fixed or indeterminate, due or not yet due, contingent or
non-contingent, matured or unmatured, liquidated or unliquidated,
or disputed or undisputed, whether under a guaranty or a letter of
credit, and whether arising under contract, in tort, by law, or
otherwise, any interest or fees thereon (including interest or fees
that accrue after the filing of a petition by or against Borrower
under the Bankruptcy Code, irrespective of whether allowable under
the Bankruptcy Code), any costs of Enforcement Actions, all
reasonable attorneys’ fees and costs incurred by a Lender
under, in connection with or related to its respective Loan
Documents, and all prepayment or termination premiums and other
fees and sums payable by Borrower to Lender under its respective
Loan Documents.

 

“Collateral” means, as the
context may require, the Hercules Collateral and/or the Ally
Collateral.

 

“Deposit Account” means
any “deposit account” of Borrower as such term is
defined in the UCC, and includes any checking account, savings
account, or certificate of deposit.

 

 “Enforcement
Action” means, with respect to any Lender and with
respect to any Claim of such Lender or any item of Collateral in
which such Lender has or claims a Lien or right of offset, any
action, whether judicial or nonjudicial, to repossess, collect,
accelerate, offset, recoup, give notification to third parties with
respect to, sell, dispose of, foreclose upon, give notice of sale,
disposition, or foreclosure with respect to, or obtain equitable or
injunctive relief with respect to, such Claim or Collateral. The
filing by any Lender, or the joining in the filing by any Lender,
of an Insolvency Proceeding against Borrower is also an Enforcement
Action.

 

“Event of Default” means
an “Event of Default”, as defined in the Hercules Loan
Documents, or a “Default”, as defined in the Ally
Financing Documents.

 

“Hercules” has the meaning
given to such term in the preamble.

 

“Hercules Collateral”
means the property of Borrower described in Exhibit A.

 

“Hercules Loan” has the
meaning given to such term in Recital A.

 

“Hercules Loan Agreement”
has the meaning given to such term in Recital A.

 

“Hercules Loan Documents”
means the Hercules Loan Agreement and all of the “Loan
Documents” as defined in the Hercules Loan Agreement except
any warrant issued by Borrower, in each case as may be amended,
modified, restated, replaced, or supplemented from time to
time.

 

“Hercules Priority
Collateral” means, as of any date of determination,
all of the Hercules Collateral, other than Ally Priority Collateral
as of such date.

 

“Insolvency Event” means
any distribution, division, or
application, partial or complete, voluntary or involuntary, by
operation of law or otherwise, of all or any part of the property
of Borrower or the Proceeds
thereof to the creditors of Borrower, or the readjustment of any of the Claims,
whether by reason of liquidation, bankruptcy, arrangement,
receivership, assignment for the benefit of creditors or any other
action or proceeding involving the readjustment of all or any part
of any of the Claims, or the application of the property of
Borrower to the payment or liquidation
thereof, or upon the dissolution or other winding up of
Borrower’s business, or upon the
sale of all or any substantial part of Borrower’s property.

 

“Insolvency Proceeding”
means any bankruptcy, assignment for the benefit of creditors, or
reorganization of a Borrower.

 

“Investment Accounts”
means any account holding Investment Property of a
Borrower.

 

 

3

 

 

“Lender” or
“Lenders” have the
meanings given to such terms in the preamble.

 

“Lien” means a lien or
security interest in Collateral to secure a Claim of a
Lender.

 

“Loan” means, as the
context may require, singularly the Hercules Loan, the Ally Loan,
or any other extension of credit pursuant to a Loan Agreement; and
“Loans” means
collectively the Hercules Loan, the Ally Loan, and any other
extension of credit pursuant to a Loan Agreement.

 

“Loan Agreement” means, as
the context may require, singularly the Hercules Loan Agreement or
the Ally Financing Agreement; and “Loan Agreements” means
collectively, the Hercules Loan Agreement and the Ally Financing
Agreement.

 

“Loan Documents” means, as
applicable, the Hercules Loan Documents and the Ally Financing
Documents.

 

“Non-filing Lender” has
the meaning given to such term in Section 3.6.

 

“Option Period” has the
meaning given to such term in Section 4(b).

 

“Parent” has the meaning
given to such term in the preamble.

 

“Priority Collateral”
means, as the context may require and as of any date of
determination, the Hercules Priority Collateral or the Ally
Priority Collateral.

 

“
Proceeds” means
“proceeds,” as such term is defined in the
UCC.

 

“Proceeds of Collection”
means, collectively, the Proceeds of Collateral from any
Enforcement Action taken with respect to such Collateral under the
Loan Documents, or any distribution of any Borrower’s assets
of any kind or character upon any dissolution or winding up or
total or partial liquidation or reorganization, whether voluntary
or involuntary, or adjustment or protection or relief or
composition of Borrower or Borrower’s debts, or in any
Insolvency Event, including without limitation, bankruptcy,
insolvency, receivership, arrangement, reorganization, relief or
other proceeding of any Borrower or upon an arrangement for the
benefit of Borrower’s creditors or any other marshalling of
Borrower’s assets and liabilities, in each case, after the
occurrence and during the continuance of an Event of
Default.

 

“Purchase” has the meaning
given to such term in Section 4(b).

 

“Purchase Documents” has
the meaning given to such term in Section 4(b).

 

“Purchase Notice” has the
meaning given to such term in Section 4(a).

 

“Purchase Price” has the
meaning given to such term in Section 4(b).

 

“RMBL Missouri” has the
meaning given to such term in the preamble.

 

“UCC” means the Uniform
Commercial Code as the same may, from time to time, be in effect in
the State of California; provided, that in the event that, by
reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of, or remedies with respect to
any Lender’s Lien on any Collateral is governed by the
Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of California, the term “UCC”
shall mean the Uniform Commercial Code as enacted and in effect in
such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority or
remedies and for purposes of definitions related to such
provisions. Unless otherwise defined herein, terms that are defined
in the UCC and used herein shall have the meanings given to them in
the UCC.

 

 

4

 

 

1.2           Other
Interpretive Provisions. References in this Agreement to
“Recitals,” “Sections,” and
“Exhibits” are to recitals, sections, and exhibits
herein and hereto unless otherwise indicated. References in this
Agreement to any document, instrument or agreement shall include
(a) all exhibits, schedules, annexes and other attachments
thereto, (b) all documents, instruments or agreements issued
or executed in replacement thereof, and (c) such document,
instrument or agreement, or replacement or predecessor thereto, as
amended, modified and supplemented from time to time and in effect
at any given time. The words “include” and
“including” and words of similar import when used in
this Agreement shall not be construed to be limiting or exclusive.
The Recitals constitute a part of the agreement among the parties
hereto.

 

2.

INTERCREDITOR ARRANGEMENTS

 

2.1 Priority of Security
Interests.

 

(a) Notwithstanding any
contrary priority established by (i) the filing dates of their
respective financing statements, (ii) the recording dates of any
other security perfection documents, (iii) which Lender has
possession of, or control over, any of the Collateral or (iv) any
statute or rule of law to the contrary, the Lenders agree that,
except as otherwise provided under Section 3:

 

(i) As of any date of
determination, the Liens of the Ally Parties in Collateral
constituting Ally Priority Collateral, determined as of such date,
shall be senior in rank and order of priority and enforcement to
the Liens and enforcement rights of Hercules in and against such
Collateral;

 

(ii) As
of any date of determination, the Liens of Hercules in Collateral
constituting Hercules Priority Collateral, determined as of such
date, shall be senior in rank and order of priority and enforcement
to the Liens and enforcement rights of the Ally Parties in and
against such Collateral;

 

(iii) As
of any date of determination, the Liens of the Ally Parties in
Collateral constituting Hercules Priority Collateral, determined as
of such date, shall be junior and subordinate in rank, priority and
enforcement to the Lien and enforcement rights of Hercules in and
against such Collateral;

 

(iv) As
of any date of determination, the Liens of Hercules in Collateral
constituting Ally Priority Collateral, determined as of such date,
shall be junior and subordinate in rank, priority and enforcement
to the Lien and enforcement rights of the Ally Parties in and
against such Collateral; and

 

(v) The Proceeds of
Collection of the Hercules Priority Collateral and the Ally
Priority Collateral shall be distributed as provided in
Section
3
below.

 

(b) The relative
priorities set forth in subsection (a) above are
subject to the following:

 

(i) No Lender shall
challenge or contravene the creation, attachment, perfection or
enforceability of the Lien of the other Lender in its respective
Collateral. The relative priorities described in Section 2.1(a) above, shall not
apply to, however, and the provisions of this Agreement shall not
be effective as to, any Lien which otherwise would be prior and
superior, which Lien, by reason of any act or omission to act by
the Lender whose rights therein under the Agreement would be
superior, is judicially determined as not to be effective, or is
rendered ineffective by reason of any act or omission to act of any
third party to this Agreement; provided that such determination is
not made on the basis of a claim or motion advanced by or on behalf
of the other Lender.

 

(ii) A
Lender’s relative priority in the Proceeds (within the
meaning of the UCC, including insurance proceeds) of an asset of a
Borrower shall be determined based upon that Lender’s
relative priority in the asset from which such Proceeds arose, as
set forth in subsection
(a) above, except as expressly provided otherwise in the
defined term “Ally Priority Collateral”.

 

 

5

 

 

(iii) If
a Lender conducts an Enforcement Action, such Lender shall provide
the other Lender with copies of all demands, communications,
correspondence, and pleadings which relate to such Enforcement
Action and a written statement of the results of such liquidation
and the distribution of the Proceeds of Collection. The Proceeds of
Collection shall be distributed in accordance with Section 3 below.

 

2.2 Limitation on Further Loans.
After the date hereof, except pursuant to the Ally Financing
Agreement and subject to the Ally Debt Cap, the Ally Parties may
not make loans to or otherwise extend credit to Borrower without
notice to and the consent of Hercules.

 

2.3 Transfer of Interest in Loans.
Any sale or transfer of an interest in this Agreement and the Loan
Documents shall be voidable at the option of any other Lender
unless the following provisions are satisfied:

 

(a) Consent. Each of Hercules and
the Ally Parties agree that each of them will not transfer any of
its interest in its Loan Documents or its Loan without first
delivering a copy of this Agreement to the proposed transferee or
assignee, and obtaining the acknowledgment of the proposed
transferee or assignee that the transfer or assignment is subject
to all of the terms of this Agreement; provided, however, each Lender may sell
to any other financial entity participation interests in such
Lender’s rights under this Agreement and its respective Loan
Documents, provided that notwithstanding the sale of
participations, such Lender shall remain solely responsible for the
performance of its obligations under this Agreement and its
applicable Loan Documents, and the other Lender shall continue to
deal solely and directly with such Lender in connection with this
Agreement and its Loan Documents unless otherwise agreed to in
writing by each Lender.

 

(b) Assumption of Obligations. The
transferee shall assume all obligations of the transferring Lender
with respect to the portion of the transferor’s interest
under this Agreement and the applicable Loan Documents; provided
that to the extent the transferor shall not transfer the entirety
and shall retain any portion of its interest in its Loan Document,
the transferor shall retain its obligations under this Agreement,
its Loan Agreement and its other applicable Loan Documents with
respect to that portion of its interest.

 

2.4 Bailee for Perfection. Each
Lender hereby appoints the other Lender as agent for the purposes
of perfecting its Liens in and on any of its Collateral in the
possession or under the control of such other Lender; provided,
that, a Lender in possession or having control of any Collateral
shall not have any duty or liability to protect or preserve any
rights pertaining to any of the other Lender’s Collateral
and, except for gross negligence or willful misconduct as
determined pursuant to a final non-appealable order of a court of
competent jurisdiction, the non-possessing and/or non-controlling
Lender hereby waives and releases the other Lender from all claims
and liabilities arising pursuant to the possessing Lender’s
role as bailee with respect to such Collateral, so long as the
possessing and/or controlling Lender shall use the same degree of
care with respect thereto as the possessing and/or controlling
Lender uses for similar property pledged to the possessing and/or
controlling Lender as collateral for indebtedness of others to the
possessing and/or controlling Lender.

 

2.5 Insolvency Proceeding. In any
Insolvency Proceeding, the Collateral of each Lender shall include
applicable Collateral acquired by Borrower, or arising, after the
commencement of the Insolvency Proceeding, and this Agreement shall
continue to apply during any such Insolvency
Proceeding.

 

 

6

 

 

3.

PAYMENTS AND REMEDIES UPON AN EVENT OF DEFAULT

 

3.1 Exercise of Remedies
by Hercules. Notwithstanding anything to the contrary
contained in this Agreement or in the Hercules Loan Agreement, upon the occurrence of an Event of
Default, Hercules shall be free
at all times to exercise or to refrain from exercising any and all
rights and remedies it may have with respect to the Hercules
Priority Collateral under the Hercules Loan Documents or under applicable law (and
continue to receive regularly scheduled payments or any prepayment
of the Hercules Loans pursuant
to the terms therein). In no event shall Hercules
take any Enforcement Action against
any Collateral then constituting Ally Priority Collateral without
the prior written consent of the Ally Parties, provided that
with respect to Ally Priority Collateral consisting of cash
Proceeds maintained in Deposit Accounts or Investment Accounts
subject to an Account Control Agreement in favor of Hercules,
Hercules may give notice of exclusive control with respect to such
Deposit Account or Investment Account and, if required pursuant to
the terms of such Account Control Agreement cause the transfer of
funds or assets therefrom pending determination which portion
thereof constitutes Ally Priority Collateral, provided further that
amounts constituting Ally Priority Collateral shall be received by Hercules in trust for and shall be
promptly paid over to the Ally Parties for application to the
payments of amounts due in respect of the Claims of the Ally
Parties until such Claims are paid in full, subject to the Ally
Debt Cap.

 

3.2 Exercise of Remedies
by Ally. Notwithstanding
anything to the contrary contained in this Agreement or in the Ally
Financing Agreement, upon the occurrence of an Event of
Default, the Ally Parties shall
be free at all times to exercise or to refrain from exercising any
and all rights and remedies it may have with respect to the Ally
Priority Collateral under the Ally Financing Documents or under
applicable law (and continue to receive regularly scheduled
payments or any prepayment of the Ally Loans pursuant to the terms therein). In no event
shall any one of the Ally Parties take any Enforcement Action against any Collateral
then constituting Hercules Priority Collateral without the prior written
consent of Hercules.

 

3.3 Application of
Proceeds of Collection of Ally Priority Collateral after an Event
of Default. Notwithstanding
anything to the contrary in the Loan Documents, as among the
Lenders, the Proceeds of Collection of all Collateral then
constituting Ally Priority Collateral, determined as of the date of
the occurrence of an Event of Default, shall upon receipt by either
Lender, after the occurrence and during the continuation of an
Event of Default be paid to and applied as
follows:

 

(a) First,
to the payment of then outstanding reasonable out-of-pocket costs
and expenses of the Ally Parties (i) expended to preserve the value
of the Ally Priority Collateral, (ii) of foreclosure or suit with
respect to Ally Priority Collateral, if any, and (iii) of such
sale, foreclosure or suit with respect to the Ally Priority
Collateral;

 

(b) Second,
to the Ally Parties in an
amount up to the Ally Debt Cap
to be applied to the Claims of the Ally
Parties;

 

(c) Third, to Hercules in an amount
up to Hercules’s Claims until all such Claims are satisfied
in full;

 

(d) Fourth, to the Ally Parties in
an amount up to the Ally Parties’ Claims until all such
Claims are satisfied in full; and

 

(e) Fifth,
to Borrowers or whomsoever may be lawfully entitled to receive the
same.

 

3.4 Application of
Proceeds of Collection of Hercules Priority Collateral
after an Event of Default.
Notwithstanding anything to the contrary in the Loan Documents, as
among the Lenders, the Proceeds of Collection of all Collateral
then constituting Hercules Priority Collateral shall upon receipt by either
Lender, after the occurrence of an Event of Default be paid to and
applied as follows:

 

(a) First,
to the payment of then outstanding reasonable out-of-pocket costs
and expenses of Hercules’s (i) expended to preserve the value
of the Hercules Priority Collateral, (ii) of foreclosure or suit
with respect to Hercules Priority Collateral, if any, and (iii) of
such sale, foreclosure or suit with respect to the Hercules
Priority Collateral;

 

 

7

 

 

(b) Second,
to Hercules in an amount up
to Hercules’s Claims
until all such Claims are satisfied in full;

 

(c) Third, to the Ally Parties in
an amount up to the Claims of the Ally Parties until all such
Claims are satisfied in full; and

 

(d) Fourth,
to Borrowers or whomsoever may be lawfully entitled to receive the
same.

 

3.5 Insurance.
In the event of any loss affecting any Collateral, the Lender
having a senior Lien in the affected Collateral under this
Agreement shall, subject to Borrower’s rights under the applicable Loan
Documents, have the sole and exclusive right (but not the
obligation) to adjust settlement of any insurance policy applicable
to such Collateral. All Proceeds of insurance applicable to the
affected Collateral shall (subject to Borrower’s rights under the applicable Loan
Documents) be applied in the same manner set forth in
Sections
3.3
and
3.4
with respect to such Collateral itself
and other Proceeds thereof.

 

3.6 Insolvency Events. In the event of any Insolvency Event, then, and in
any such event, and subject to any subordination arrangements to
which the Lenders may be subject, (a) all payments and
distributions of any kind or character, whether in cash or property
or securities in respect of the Lenders’ Claims shall be
distributed pursuant to the provisions of Sections
2.1, 3.3
and
3.4
hereof; (b) each Lender shall
promptly file a claim or claims, on the form required in such
proceeding, for the full outstanding amount of such Lender’s
Claim, and shall use its commercially reasonable efforts to cause
said claim or claims to be approved; (c) each of the Lenders
hereby irrevocably agrees that, to the extent that it fails timely
to do so (a “Non-filing
Lender”), the other
Lender may in the name of the Non-filing Lender, or otherwise, file
and prove up any and all claims of the Non-filing Lender relating
to the Non-filing Lender’s Claim; (d) in the event that,
notwithstanding the foregoing, but subject to the provisions
of Sections
2.1, 3.3
and
3.4, any payment or distribution of any kind or
character, whether in cash, properties or securities, shall
be received by a Lender in excess of the amount agreed to herein,
then the portion of such payment or distribution in excess of such
Lender’s permitted amount shall be received by such Lender in trust for and shall
be promptly paid over to the other Lender for application to the
payments of amounts due on the other Lender’s Claims; and
(e) each of the Lenders hereby irrevocably agrees that
neither Lender shall assert or otherwise approve, without the prior
written consent of the other Lender, any claim, motion, objection
or argument in respect of the other Lender’s Collateral in
connection with any Insolvency Proceeding which could otherwise be
asserted or raised in connection with such Insolvency Proceeding
(including, without limitation, any claim, motion, objection or
argument seeking adequate protection or relief from the automatic
stay in respect of such Collateral), that is otherwise inconsistent
with the terms of this Agreement. The Ally Parties will not object
to Hercules providing debtor in possession financing, provided that
such debtor in possession financing does not vary the relative
priority of the Claims of the Ally Parties or adversely affect the
Ally Parties’ Lien on the Ally Priority Collateral. Each
Lender agrees that if an Insolvency Event occurs, such Lender will
not seek relief from automatic stay with respect to the other
Lender’s Priority Collateral or oppose a request by the other
Lender for relief from the automatic stay with respect to the other
Lender’s Priority Collateral.

 

3.7 Return
of Payments. To the extent any
payment for the account of Borrower is required to be returned as a voidable transfer
or otherwise, the Lenders shall contribute to one another as is
necessary to ensure that such return of payment is in accordance
with the terms of this Agreement.

 

3.8 Foreclosure.

 

(a) Credit Bid By Lenders. 
Hercules agrees that the Ally Parties shall have the right to
credit bid under Section 363(k) of the Bankruptcy Code with respect
to, or otherwise object to any such sale or other disposition of,
the Ally Priority Collateral and the Ally Parties agree that
Hercules shall have the right to credit bid under Section 363(k) of
the Bankruptcy Code with respect to, or otherwise object to any
such sale or other disposition of, the Hercules Priority
Collateral; provided, however, that the Ally Parties shall not be
deemed to have agreed to any “credit bid” by Hercules
in connection with the sale or other disposition of Collateral
which includes Collateral then constituting Ally Priority
Collateral, and Hercules shall not be deemed to have agreed to any
“credit bid” by the Ally Parties in connection with the
sale or other disposition of Collateral which includes Collateral
then constituting Hercules Priority Collateral.

 

 

8

 

 

(b) Cash
Bid for Account of One Lender.  No Lender shall make or
cause to be made a cash bid at any foreclosure sale or other sale
of any of the Collateral without the prior written consent of the
other Lender, unless the Proceeds of the amount of such bid after
allocation in accordance with Section 3.3 or 3.4, as
applicable, will be equal to or in excess of the amount of the
other Lender’s Claims, as demonstrated by calculations
satisfactory to such other Lender.  If a cash bid is made and
is successful, then (i) the Proceeds of the sale shall be
allocated as set forth in Section 3.3 or 3.4 as
applicable, and (ii) the Lender that entered the successful
bid shall acquire the Collateral so purchased for its own account,
and the other Lender shall have no further interest in that
Collateral upon the payment to such other Lender of the shares of
the Proceeds in accordance with Section 3.3 or 3.4 as
applicable.  The Proceeds allocated under the foregoing
clause (i) shall be
allocated between the Lenders pursuant to Sections 3.3 or 3.4 as
applicable, according to the net book value (per Borrowers’
books) of their respective Priority Collateral which is a part of
such Collateral (and Accounts shall be valued at face
amount).

 

4.

PURCHASE
OPTION.

 

(a) Purchase Option Triggers.
(i) At any time after acceleration of either Loan,
(ii) at any time during an Event of Default, and (iii) at
any time following the commencement of an Insolvency Proceeding,
Hercules shall have the right, but not obligation, upon giving
written notice to the Ally Parties, to acquire from the Ally
Parties all (but not less than all) of the right, title, and
interest of the Ally Parties in and to the Ally Loan and the Ally
Financing Documents (a “Purchase
Notice”).

 

(b) Consummation of Purchase. Upon
the Ally Parties’ receipt of the Purchase Notice, Hercules
irrevocably shall be committed to acquire from the Ally Parties,
and the Ally Parties irrevocably shall be committed to sell to
Hercules, all (but not less than all) of the aggregate amount of
the Ally Loan and the right, title, and interest of the Ally
Parties in and to the Ally Financing Documents (the
“Purchase”), by paying to
the Ally Parties, within ten (10) Business Days (the
“Option
Period”) following receipt of the Purchase Notice, in
immediately available funds by Federal funds wire transfer, a
purchase price (the “Purchase Price”) equal
to: 100% of the outstanding balance with respect to the Ally Loan
due thereunder (including, without limitation, principal, interest
accrued and unpaid thereon and any unpaid fees and reasonable and
documented expenses to the extent earned or due and payable in
accordance with the Ally Financing Documents). The Ally Parties
agree to provide customary loan sale documents (the
“Purchase
Documents”) to effectuate the Purchase within three
(3) Business Days following receipt of the Purchase Notice and
shall provide copies of all of the Ally Financing Documents then in
effect. Upon execution and delivery of the Purchase Documents and
payment of the Purchase Price, the Ally Parties (i) shall assign
and deliver to Hercules the Ally Financing Documents, with
appropriate assignment and endorsement, and any Collateral in its
possession, and (ii) shall execute and deliver such other
documents, instruments, and agreements reasonably necessary to
effect such assignment. The Purchase shall be without any
representation, recourse, or warranty, except that the Ally Parties
shall represent and warrant to Hercules (i) the amount of
principal, interest and fees owed to the Ally Parties on the
closing date of the Purchase, (ii) that none of the Ally Parties
has assigned or encumbered its rights in the Ally Loan or the Ally
Financing Documents, (iii) that the Ally Financing Documents,
as provided by the Ally Parties are the complete and correct forms
thereof, and (iv) that each of the Ally Parties owns and has
the unrestricted right to transfer to Hercules all right, title,
and interest with respect to the Ally Financing Documents at no
expense or charge to Hercules other than payment of the Purchase
Price. In the event the Ally Parties do not timely comply with the
respective obligations set forth above, the Option Period shall be
extended, provided that the foregoing shall not constitute a waiver
by Hercules for any other remedies it may have in law or equity for
failure by the Ally Parties to timely comply with their respective
obligations. Upon receipt of the Purchase Notice, the Ally Parties
shall cease and refrain from exercising any Enforcement Actions
until the expiration of the Option Period.

 

5.

EXCULPATION OF AND DELEGATION BY LENDERS

 

5.1 Exculpation.
In connection with any exercise of Enforcement Actions hereunder,
no Lender or any of its partners, or any of their respective
directors, officers, employees, attorneys, accountants, or agents
shall be liable as such to any other Lender for any action taken or
omitted by it or them, except with respect to any violation of this
Agreement or any gross negligence or willful
misconduct.

 

 

9

 

 

5.2 Delegation of
Duties. Each Lender may execute
any of its powers and perform any duties hereunder either directly
or by or through agents or attorneys-in-fact. Each Lender shall be
entitled to advice of counsel concerning all matters pertaining to
such powers and duties.

 

6.

RIGHTS IN THE WARRANTS

 

Notwithstanding
anything to the contrary herein, no warrants issued to any Lender
(or any affiliate thereof) by Borrower, the stock issuable
thereunder, any equity securities purchased by any Lender (or any
affiliate thereof), any amounts paid thereunder, any dividends, or
any other rights in connection therewith shall be subject to the
terms and conditions of this Agreement. Nothing herein shall affect
any Lender’s rights (or the rights of any affiliate thereof
as assignee) under any such warrants or stock to administer,
manage, transfer, assign, or exercise such warrants or stock for
its own account.

 

7.

NO RESPONSIBILITY FOR INVESTIGATION

 

Each of
the Lenders represents that it has made, and agrees that it will
continue to make its own independent investigation of the financial
condition and affairs of Borrowers in connection with the making,
administration and enforcement of its Loan, and that it has made
and shall continue to make its own appraisal of the
creditworthiness of Borrowers. No Lender shall have any duty or
responsibility either initially or on a continuing basis to make
any such investigation or any such appraisal on behalf of any other
party, or to provide any other party with any credit or other
information with respect thereto, whether coming into its
possession before the date hereof or any time or times thereafter,
and shall further have no responsibility with respect to the
accuracy of or the completeness of the information provided to the
Lenders by Borrowers.

 

8.

REPRESENTATIONS AND WARRANTIES

 

8.1 Due Organization and
Qualification. Each Lender
represents and warrants to the other parties that it is a
corporation or other entity duly existing and in good standing
under the laws of its state of organization and it is qualified and
licensed to do business in, and is in good standing in, any state
in which the conduct of its business or its ownership of property
requires that it be so qualified, except for such states as to
which any failure so to qualify would not have a material adverse
effect on such Lender.

 

8.2 Authority.
Each Lender represents and warrants that it has all necessary power
and authority to execute, deliver and perform this Agreement in
accordance with the terms hereof and that it has all requisite
power and authority to own and operate its properties and to carry
on its business as now conducted.

 

8.3 Authorization;
Enforceability. Each Lender
represents and warrants that (a) the execution and delivery of
this Agreement and the consummation of the transactions
contemplated herein have each been duly authorized by all necessary
action on its part, and (b) this Agreement has been duly
executed and delivered and constitutes a legal, valid and binding
obligation of such person, enforceable against it in accordance
with its terms, except as the enforceability thereof may be limited
by bankruptcy, insolvency or other similar laws of general
application relating to or affecting the enforcement of
creditors’ rights or by general principles of
equity.

 

8.4 Copies of
Documents. Each Lender
represents and warrants that it has provided the other with true
and complete copies of its Loan Documents in effect as of the date
of this Agreement.

 

9.

NOTICES

 

(a) Unless otherwise
provided in this Agreement, all notices or demands by any party
relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except informal
documents which may be sent by email) shall be deemed to have been
validly served, given, delivered and received upon the earlier of
(i) the day of hand delivery or delivery by an overnight
express service or overnight mail delivery service; or
(ii) the third calendar day after deposit in the United States
of America mails, with proper first class postage prepaid, return
receipt requested in each case, addressed to the party to be
notified as follows:

 

 

10

 

 

	

If to Hercules:

 

	

Hercules
Capital, Inc., as agent

Attn:
Chief Legal Officer and Tom
Harris

400 Hamilton Ave.

Suite #310

Palo Alto, CA 94301

Email: legal@herculestech.com; tharris@htgc.com

 

	

If to the Ally Parties:

 

	

Ally Bank and Ally Financial Inc.

Attn:
Sheldon Nicklin, Executive Risk Director

3200 Bristol Street, Suite 700

Costa Mesa, California 92626

Email: sheldon.w.nicklin@ally.com

 

 

The
parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner
given to the other. In addition, each Lender agrees (i) to use its
best efforts to notify the other Lender promptly upon receipt
of any material written notice from Borrowers and (ii) at the
other Lender’s request, to send a copy of any such notice to
the other Lender, but neither Lender shall have any liability to
the other Lender for any inadvertent failure to give such notice
under clause (i) or
(ii) above.

 

(b) Each Lender agrees
to provide the other Lender with (i) copies of any notice of
demand, or similar communication as and when given to a Borrower or
any co-borrower or guarantor with respect to a Loan, (ii) as and
when received, given, or executed, a copy of any amendment,
modification, waiver (including waiver of any Event of Default),
replacement or supplement of the Loan Documents, (iii) notice of
any intent to sell or transfer all or any part of its right, title
and interest in the Loan Documents to any third party (other than a
controlled affiliate of such Lender or a successor in interest
through merger) at least ten (10) Business Days prior to
consummating such sale or transfer.

 

10.

NO BENEFIT TO THIRD PARTIES

 

The
terms and provisions of this Agreement shall be for the sole
benefit of Lenders, and their respective successors and assigns,
and no other person or entity (including Borrowers) shall have any
right, benefit, priority, or interest under, or because of this
Agreement.

 

11.

CERTAIN AGREEMENTS OF
THE ALLY PARTIES.

 

(a) The Ally Parties
acknowledge and consent to (i) the Hercules Loan Documents, (ii)
the grant by Borrowers of a Lien on the Hercules Collateral, and
(iii) only prior to the occurrence of an Event of Default, the
transfer from RMBL Missouri to Parent, in the ordinary course of
Borrowers’ business, of any cash Proceeds from the sale of an
Ally Financed Vehicle provided the Ally Parties have been paid in
full for the outstanding balance of any advance associated with
such Ally Financed Vehicle.

 

(b) Notwithstanding
Section 12.1, the
Ally Parties shall not amend the Ally Financing Documents, without
prior written consent of Hercules, to (i) increase the interest
rate by more than 3.0 percentage points (excluding increases
resulting from (A) increases in the underlying reference rate
not caused by an amendment of the Ally Financing Documents, or
(B) the accrual of interest at the default rate), or
(ii) increase the Ally Credit Balance required to be provided
to be in excess of 10% of the approved credit line under the Ally
Financing Documents.

 

 

11

 

 

12.

GENERAL PROVISIONS

 

12.1 Lenders’
Rights. Hercules, on the one
hand, and the Ally Parties on
the other hand, agree that each Lender may at any time, and from
time to time, without the consent of the other Lender and without
notice to the other Lender: (i) renew or extend any of
Borrower’s indebtedness and
obligations owing to such Lender or that of any other person at any
time directly or indirectly liable for the payment thereof; (ii)
accept partial payments of its Claims; (iii) settle, release (by
operation of law or otherwise), compromise, collect or liquidate
any of its Claims; (iv) release, exchange, fail to perfect, delay
the perfection of, fail to resort to, or realize upon Collateral
then constituting its Priority Collateral; (v) change, alter or
vary the interest charge on, or any other terms or provisions of
its Claims or any present or future instrument, document or
agreement with any Borrower;
and (vi) take any other action or omit to take any other action
with respect to its Claims as it deems necessary or advisable in
its sole discretion; subject,
however,
in all cases, to the specific provisions of this Agreement. Each
Lender waives any right to require the other Lender to
proceed first against some Collateral
before proceeding against other Collateral, or to exercise certain
remedies before exercising other remedies, whether under the
equitable doctrine of marshalling or otherwise, but subject, in all
cases, to the provisions of this Agreement.

 

12.2 Non-Avoidability.
The subordinations and priorities specified in this Agreement are
expressly conditioned upon the nonavoidability and perfection of
the security interest to which another security interest is
subordinated, and if the security interest to which another
security interest is subordinated is not perfected or is avoidable,
for any reason, then the subordinations and relative priority
provided for in this Agreement shall not be effective as to the
particular Collateral that is the subject of the unperfected or
avoidable security interest.

 

12.3 Successors
and Assigns. This Agreement
shall bind and inure to the benefit of the respective successors
and permitted assigns of each of the Ally Parties
and Hercules; provided, however, that neither this Agreement
nor any rights hereunder may be assigned, transferred or
participated by any of the parties hereto without being in
compliance with Section
2.3, and subject to Section
4.

 

12.4 Severability
of Provisions. Each provision
of this Agreement shall be severable from every other provision of
this Agreement for the purpose of determining the legal
enforceability of any specific provision.

 

12.5 Entire
Agreement; Construction; Amendments and Waivers.

 

(a) This
Agreement constitutes and contains the entire agreement among the
Lenders, and supersedes any and all prior agreements, negotiations,
correspondence, understandings and communications between the
parties, whether written or oral, respecting the subject matter
hereof.

 

(b) This
Agreement is the result of negotiations between and has been
reviewed by each of the Lenders executing this Agreement as of the
date hereof and their respective counsel; accordingly, this
Agreement shall be deemed to be the product of the parties hereto,
and no ambiguity shall be construed in favor of or against any
party. Lenders agree that they intend the literal words of this
Agreement and that no parole evidence shall be necessary or
appropriate to establish any of their actual
intentions.

 

(c) Any
and all amendments, modifications, discharges or waivers of, or
consents to any departures from any provision of this
Agreement shall not be effective
without the written consent of each Lender. Any waiver or consent
with respect to any provision of this Agreement shall be effective
only in the specific instance and for the specific purpose for
which it was given. Any amendment, modification, waiver or consent
effected in accordance with this Section 12.5(c)
shall be binding upon each
Lender.

 

12.6 Counterparts.
This Agreement may be executed in any number of
counterparts, including counterparts transmitted by
facsimile or other means of electronic transmission, and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be
an original, and all of which, when taken together, shall
constitute but one and the same Agreement.

 

 

12

 

 

12.7 Termination.
This Agreement shall terminate upon the later of (a) irrevocable
payment in full to each Lender of all amounts (other than
unasserted amounts in connection with obligations that specifically
survive termination of the applicable Loan Documents) owing to it
under the applicable Loan Documents, and (b) the termination
of all obligations to lend thereunder.

 

12.8 Reinstatement.
Notwithstanding any provision of this Agreement to the contrary,
the rights and obligations of the parties hereunder shall be
reinstated and revived if and to the extent that for any reason any
payment by or on behalf of Borrower is rescinded, or must be otherwise restored by
Lenders, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, all as though such amount had not been
paid. To the extent any payment is rescinded or restored, the
obligations shall be revived in
full force and effect without reduction or discharge for that
payment.

 

12.9 Survival.
All covenants, representations and warranties made in this
Agreement shall continue in full force and effect so long as any
obligations remain outstanding hereunder.

 

13.

RELATIONSHIP OF LENDERS

 

Lenders
shall not under any circumstances be construed to be partners or
joint venturers of one another; nor shall the Lenders under any
circumstances be deemed to be in a relationship of confidence or
trust or a fiduciary relationship with one another, or to owe any
fiduciary duty to one another. Lenders do not undertake or assume
any responsibility or duty to one another to select, review,
inspect, supervise, pass judgment upon or otherwise inform each
other of any matter in connection with Borrowers’ property,
any Collateral held by any Lender or the operations of Borrowers.
Each Lender shall rely entirely on its own judgment with respect to
such matters, and any review, inspection, supervision, exercise of
judgment or supply of information undertaken or assumed by any
Lender in connection with such matters is solely for the protection
of such Lender.

 

14.

CHOICE OF LAW AND VENUE; AND JURY TRIAL WAIVER

 

THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO
CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF
ANY LAWS OTHER THAN THE LAWS OF THE STATE OF CALIFORNIA, AND EACH
OF THE LENDERS HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF CALIFORNIA. TO
THE EXTENT NOT PROHIBITED BY APPLICABLE STATE LAW, LENDERS HEREBY
WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM,
PROCEEDING OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
HERETO. If the foregoing waiver of jury trial is ineffective or
unenforceable, the parties agree that all claims arising out of
this Agreement and the transactions related thereto shall be
resolved by reference to a private judge sitting without a jury,
pursuant to Code of Civil Procedure Section 638, before a mutually
acceptable referee or, if the parties cannot agree, a referee
selected by the Presiding Judge of the Santa Clara County,
California. Such proceeding shall be conducted in Santa Clara
County, California, with California rules of evidence and discovery
applicable to such proceeding.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

13

 

 

[SIGNATURE
PAGE TO INTERCREDITOR AGREEMENT]

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first above written.

 

HERCULES CAPITAL,
INC., in its capacity as administrative agent on behalf of certain
lenders

 

By:
_/s/ Zhuo Huang
_______________

Name:
__Zhuo
Huang________________

Title:
_Associate General
Counsel_______

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE
PAGE TO INTERCREDITOR AGREEMENT]

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first above written.

 

ALLY
BANK

 

By:
_/s/ Margaret
Gabriel ____________

Name:
_Margaret
Gabriel_____________

Title:
_Authorized
Representative ______

 

ALLY
FINANCIAL INC.

 

By:
_/s/ Margaret
Gabriel ____________

Name:
_Margaret
Gabriel_____________

Title:
_Authorized
Representative ______

 

 

 

 

 

[SIGNATURE
PAGE TO INTERCREDITOR AGREEMENT]

 

Each of
the undersigned Borrowers, acknowledges and approves of the terms
of this Agreement and further agrees that it shall not take any
action (or fail to take any action) in contravention of the terms
of this Agreement.

 

RUMBLEON,
INC.

 

By:
_/s/ Steven R.
Berrard________

Name:
__Steven R.
Berrard_______

Title:__Chief
Financial Officer____

 

 

 

RMBL
MISSOURI, LLC

 

By:
_/s/ Steven R.
Berrard________

Name:
__Steven R.
Berrard_______

Title:__Manager________________

 

 

 

RMBL
TEXAS, LLC

 

By:
_/s/ Steven R.
Berrard________

Name:
__Steven R.
Berrard_______

Title:__Manager________________

 

 

 

NEXTGEN
PRO, LLC

 

By:
_/s/ Steven R.
Berrard________

Name:
__Steven R.
Berrard_______

Title:__Manager________________

 

 

 

 

 

 

Exhibit A

 

Hercules Collateral

 

All
right, title and interest of each Borrower in the
following:

 

(a)
Receivables

 

(b)
Equipment

 

(c)
Fixtures

 

(d)
General Intangibles

 

(e)
Inventory

 

(f)
Investment Property

 

(g)
Deposit Accounts

 

(h)
Cash

 

(i)
Goods

 

and all
other tangible and intangible personal property of Borrower whether
now or hereafter owned or existing, leased, consigned by or to, or
acquired by, Borrower and wherever located, and any of
Borrowers’ property in the possession or under the control of
Hercules; and, to the extent not otherwise included, all Proceeds
of each of the foregoing and all accessions to, substitutions and
replacements for, and rents, profits and products of each of the
foregoing.

 

For
purposes of the foregoing, the following capitalized terms shall
have the following meanings:

 

“Cash”
means all cash, cash equivalents and liquid funds.

 

“Deposit
Accounts” means any “deposit accounts,” as
such term is defined in the UCC, and includes any checking account,
savings account, or certificate of deposit.

 

“Receivables”
means (i) all of each Borrower’s Accounts, Instruments,
Documents, Chattel Paper, Supporting Obligations, letters of
credit, proceeds of any letter of credit, and Letter of Credit
Rights, and (ii) all customer lists, software, and business records
related thereto.

 

To the
extent not otherwise defined, capitalized terms used in this
Exhibit A shall
have the respective meanings given to them in the UCC.

 

 

 

 

Exhibit B

 

Ally Collateral

 

RMBL Missouri

 

All
right title and interest of RMBL Missouri in the following: all
Vehicles, including but not limited to those for which either of
the Ally Parties provides Inventory Financing; other inventory;
equipment; fixtures; accounts, including factory open accounts of
RMBL Missouri; deposit and other accounts with banks and other
financial institutions; cash and cash equivalents; general
intangibles; all documents; instruments; investment property; and
chattel paper.

 

The
Ally Credit Balance, to the extent determined to be property of
Borrower.

 

For
purposes of the foregoing, the following capitalized terms have the
following meanings:

 

“Inventory
Financing” means advancing the purchase price of the
Vehicles directly to the Vehicle Sellers, advancing funds to other
third parties who are not Vehicle Sellers or loaning money directly to RMBL Missouri for
Vehicles purchased from Vehicle Sellers by RMBL
Missouri.

 

“Vehicle
Seller” means manufacturer, distributor, dealers, auctioneer,
merchant, customer, broker, seller, or other
supplier.

 

“Vehicles”
means new and used automobiles,
trucks, cars, vans, chassis, buses, trailers, motor homes,
recreational vehicles, towable recreational vehicles, motorcycles,
all-terrain vehicles, snowmobiles, motorized carts, motor vehicles,
other vehicles and/or campers (together with all accessories,
accessions, additions and attachments to such
vehicles).

 

Parent

 

All of
the following described property in which Parent now or hereafter
acquires an interest, wherever located, in whatever form: all
inventory; equipment; fixtures; accounts, including factory open
accounts; accounts with banks and other financial institutions;
cash and cash equivalents; general intangibles; all documents;
instruments; investment property; and chattel paper.Blueprint

  Exhibit 10.3

 

SUBORDINATION AGREEMENT

 

This
Subordination Agreement is made as of April 30, 2018 by and among
HALCYON CONSULTING, LLC (“Creditor”), RUMBLEON, INC., a
Nevada corporation (“Parent”), NEXTGEN PRO,
LLC, a Delaware limited liability company (“NextGen Pro”), RMBL
MISSOURI, LLC, a Delaware limited liability company
(“RMBL
Missouri”), RMBL TEXAS, LLC, a Delaware limited
liability company (“RMBL Texas”), and each of
their Qualified Subsidiaries from time to time party hereto
(together with Parent, NextGen Pro, RMBL Missouri and RMBL Texas,
individually, each, a “Borrower”, and
collectively, “Borrowers”), and HERCULES
CAPITAL, INC. (“Agent”), in its capacity
as administrative agent for itself and Lender (as defined in the
Loan Agreement (as defined below)).

 

RECITALS

 

A. Borrowers have
requested certain loans and other credit accommodations pursuant to
the terms of that certain Loan and Security Agreement dated as of
April 30, 2018 by and between Borrowers, Agent and certain lenders
from time to time party to thereto (as amended, restated,
supplemented or otherwise modified from time to time, the
“Loan
Agreement”), and have granted a security interest in
substantially all assets to secure the obligations
thereunder.

 

B. NextGen Pro and
Parent have entered into certain agreements and instruments with
NextGen Dealer Solutions, LLC (“Dealer Solutions”)
including, without limitation, a Subordinated Secured Confessed
Judgment Promissory Note, dated February 8, 2017, issued by Parent
(the “Subordinated
Note”), an Unconditional Guaranty Agreement, dated as
of February 8, 2017, by NextGen Pro to and for the benefit of
Dealer Solutions, a Security Agreement, dated as of February 8,
2017, by and between NextGen Pro and Dealer Solutions, a Patent
Security Agreement, dated as of February 8, 2017, by and between
NextGen Pro and Dealer Solutions and a Trademark Security
Agreement, dated as of February 8, 2017, by and between NextGen Pro
and Dealer Solutions (collectively, the Subordinated Note
Documents”).

 

C. On December 31,
2017, Dealer Solutions assigned all of its right, title and
interest in and to the Subordinated Note Documents to
Creditor.

 

D. Creditor is willing
to subordinate: (i) all of each Borrower’s indebtedness
and obligations to such Creditor, whether presently existing or
arising in the future, (the “Subordinated Debt”) to
all of Borrowers’ indebtedness and obligations to Agent and
Lender; and (ii) all of such Creditor’s security
interests, if any, in each Borrower’s property to all of
Agent’s security interests in Borrowers’ property, all
in accordance with the provisions set forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, THE PARTIES AGREE AS FOLLOWS:

 

1. Creditor
subordinates to Agent any security interest or lien that Creditor
may have in any property of each Borrower. Notwithstanding the
respective dates of attachment or perfection of the security
interest of Creditor and the security interest of Agent, the
security interest of Agent in the Collateral, as defined in the
Loan Agreement, shall at all times be prior to the security
interest of Creditor. Capitalized terms not otherwise defined
herein shall have the same meaning as in the Loan
Agreement.

 

2. Except as expressly
set forth in Section 3, all Subordinated Debt is subordinated in
right of payment to all obligations of each Borrower to Agent and
Lender now existing or hereafter arising, together with all costs
of collecting such obligations (including attorneys’ fees),
including, without limitation, all interest accruing after the
commencement by or against each Borrower of any Bankruptcy,
reorganization or similar proceeding, and all obligations under the
Loan Agreement (the “Senior
Debt”).

 

 

1

 

 

 

3. Creditor will not
demand or receive from any Borrower (and no Borrower will pay to
Creditor) all or any part of the Subordinated Debt by way of
payment, prepayment, setoff, lawsuit or otherwise, nor will
Creditor exercise any remedy with respect to the Collateral, nor
will Creditor commence, or cause to commence, prosecute or
participate in any administrative, legal or equitable action
against any Borrower, for so long as any portion of the Senior Debt
remains outstanding. Notwithstanding the foregoing, Creditor shall
be permitted to receive, and Borrowers shall be permitted to pay,
the following payments:

 

(a)

If an Advance has
been made pursuant to Tranche III of the Loan Agreement, regularly
scheduled payments as set forth in the Subordinated Note in the
form attached hereto, but only if no Event of Default has occurred
and is continuing as of the date of such payment and no Event of
Default would result from such payment.

 

(b)

If no Advance has
been made pursuant to Tranche III of the Loan Agreement, (a)
regularly scheduled payments of interest as set forth in the
Subordinated Note in the form attached hereto, but only if no Event
of Default has occurred and is continuing as of the date of such
payment and no Event of Default would result from such payment, and
(b) regularly scheduled payments of principal as set forth in the
Subordinated Note in the form attached hereto, but only if (i)
after giving pro forma effect to such payment, Borrowers would have
cash in Deposit Accounts or Investment Accounts subject to Account
Control Agreements (as such terms are defined in the Loan
Agreement) in favor of Agent in an amount not less than $7,500,000,
on a consolidated basis, or (ii) as of the end of the last fiscal
quarter for which financial statements were required to be
delivered to Agent pursuant to the Loan Agreement, Parent
maintained Adjusted EBITDA (as defined in the Loan Agreement) for
the twelve month period ended as of such date, of not less than
$2,000,000.

 

4. Creditor shall
promptly deliver to Agent in the form received (except for
endorsement or assignment by Creditor where required by Agent) for
application to the Senior Debt any payment, distribution, security
or proceeds received by Creditor with respect to the Subordinated
Debt other than in accordance with this Agreement.

 

5. In the event of any
Borrower’s insolvency, reorganization or any case or
proceeding under any Bankruptcy or insolvency law or laws relating
to the relief of debtors, these provisions shall remain in full
force and effect, and Agent’s and Lender’s claims
against such Borrower shall be paid in full before any payment is
made to Creditor.

 

6. For so long as any
of the Senior Debt remains unpaid, Creditor irrevocably appoints
Agent as Creditor’s attorney-in-fact, and grants to Agent a
power of attorney with full power of substitution, in the name of
Creditor or in the name of Agent, for the use and benefit of Agent,
without notice to Creditor, to perform at Agent’s option the
following acts in any Bankruptcy, insolvency or similar proceeding
involving a Borrower

 

a.

To file the
appropriate claim or claims in respect of the Subordinated Debt on
behalf of Creditor if Creditor does not do so prior to 30 days
before the expiration of the time to file claims in such proceeding
and if Agent elects, in its sole discretion, to file such claim or
claims; or

 

b.

To accept or reject
any plan of reorganization or arrangement on behalf of such
Creditor and to otherwise vote such Creditor’s claims in
respect of any Subordinated Debt in any manner that Agent deems
appropriate for the enforcement of its rights
hereunder.

 

 

2

 

 

7. In the event of a
Borrower’s insolvency, reorganization or any case or
proceeding, arrangement or transaction under any federal or state
bankruptcy or insolvency law or similar laws or proceedings
involving a Borrower, for so long as any of the Senior Debt remains
unpaid, if Agent, Lender or any of them shall seek to provide any
Borrower or any of their subsidiaries with any financing under
Section 364 of the Bankruptcy Code , or Agent or Lender
support or consent to such financing provided by a third party, or
consent to any order for the use of cash collateral under
Section 363 of the Bankruptcy Code (each, a
“DIP
Financing” or “Cash Collateral Use”),
with such DIP Financing or Cash Collateral Use to be secured by all
or any portion of the Collateral (including assets that, but for
the application of Section 552 of the Bankruptcy Code (or any
similar provision of any foreign laws relating to the relief of
debtors) would be Collateral), then Creditor agrees that it will
raise no objection and will not support, directly or indirectly,
any objection to such DIP Financing or Cash Collateral Use nor
object to the liens or claims granted in connection therewith on
any grounds, including a failure to provide “adequate
protection” for the liens, if any, securing any Subordinated
Debt (and will not request any adequate protection as a result of
such DIP Financing or Cash Collateral Use, and will not support any
debtor-in-possession financing or Cash Collateral Use which would
compete with such DIP Financing or Cash Collateral Use which is
provided to or consented to by Agent or Lender). In addition,
Creditor agrees that it will not provide nor seek to provide or
support any debtor-in-possession financing without the prior
written consent of Agent.

 

8. Creditor shall
immediately affix a legend to the instruments evidencing the
Subordinated Debt stating that the instruments are subject to the
terms of this Agreement. No amendment of the documents evidencing
or relating to the Subordinated Debt shall directly or indirectly
modify the provisions of this Agreement in any manner which might
terminate or impair the subordination of the Subordinated Debt or
the subordination of the security interest or lien that Creditor
may have in any property of a Borrower. In addition, such
instruments shall not be amended to (i) increase the rate of
interest with respect to the Subordinated Debt, or
(ii) accelerate the payment of the principal or interest or
any other portion of the Subordinated Debt. Creditor represents and
warrants that a true copy of the Subordinated Note, as in effect as
of the date hereof is attached as Exhibit A hereto, and that
neither the Subordinated Note, nor any of the Subordinated Note
Documents have been assigned to any other person (it being
understood that a security interest in the Subordinated Note has
been granted to Cycle Express, LLC).

 

9. This Agreement
shall remain effective for so long as Agent or Lender has any
obligation to make credit extensions to a Borrower or any Borrower
owes any amounts to Agent or Lender under the Loan Agreement or
otherwise. If, at any time after payment in full of the Senior Debt
any payments of the Senior Debt must be disgorged by Agent or
Lender for any reason (including, without limitation, the
Bankruptcy of a Borrower), this Agreement and the relative rights
and priorities set forth herein shall be reinstated as to all such
disgorged payments as though such payments had not been made and
Creditor shall immediately pay over to Agent all payments received
with respect to the Subordinated Debt to the extent that such
payments would have been prohibited hereunder. At any time and from
time to time, without notice to Creditor, Agent or Lender may take
such actions with respect to the Senior Debt as Agent and Lender,
respectively, in its sole discretion, may deem appropriate,
including, without limitation, terminating advances to a Borrower,
increasing the principal amount (which may include any DIP
Financing), extending the time of payment, increasing applicable
interest rates, renewing, compromising or otherwise amending the
terms of any documents affecting the Senior Debt and any collateral
securing the Senior Debt, and enforcing or failing to enforce any
rights against a Borrower or any other person. No such action or
inaction shall impair or otherwise affect Agent’s or
Lender’s rights hereunder.

 

10. This Agreement
shall bind any successors or assignees of Creditor and shall
benefit any successors or assigns of Agent. This Agreement is
solely for the benefit of Creditor, Agent and Lender and not for
the benefit of any Borrower or any other party. Creditor further
agrees that if a Borrower is in the process of refinancing a
portion of the Senior Debt with a new lender, and if Agent makes a
request of Creditor, Creditor shall agree to enter into a new
subordination agreement with the new lender on substantially the
terms and conditions of this Agreement.

 

11. This Agreement may
be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one
instrument.

 

12. This Agreement
shall be governed by, and construed in accordance with, the
internal laws of the State of California, without regard to
principles of conflicts of law. Jurisdiction shall lie in the State
of California. THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL
BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER
CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY,
AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH
COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND
FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY
JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN
THE UNDERSIGNED PARTIES. If the jury waiver set forth in this
Section is not enforceable, then any dispute, controversy or
claim arising out of or relating to this Agreement or any of the
transactions contemplated herein shall be resolved by judicial
reference pursuant to Code of Civil Procedure Section 638 et
seq before a mutually acceptable referee or, if none is selected,
then a referee chosen by the Presiding Judge of the California
Superior Court for Santa Clara County, provided this provision
shall not restrict any party from seeking to enforce any
prejudgment remedies.

 

13. This Agreement
represents the entire agreement with respect to the subject matter
hereof, and supersedes all prior negotiations, agreements and
commitments. Creditor is not relying on any representations by
Agent, Lender or any Borrower in entering into this Agreement.
Creditor has kept and will continue to keep itself fully apprised
of the financial and other condition of each Borrower. This
Agreement may be amended only by written instrument signed by
Creditor, Agent and Borrowers.

 

14. In the event of any
legal action to enforce the rights of a party under this Agreement,
the party prevailing in such action shall be entitled, in addition
to such other relief as may be granted, all reasonable costs and
expenses, including reasonable attorneys’ fees, incurred in
such action.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

3

 

[SIGNATURE
PAGE TO SUBORDINATION AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

 

AGENT:

 

HERCULES CAPITAL,
INC.

 

By: /s/ Zhuo
Huang                                                      

Name: Zhuo
Huang                               

Title: Associate General
Counsel                                       

 

 

 

 

[SIGNATURE
PAGE TO SUBORDINATION AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

 

 

CREDITOR:

 

HALCYON
CONSULTING, LLC

 

By: /s/ Kartik
Kakarala                                          

Name: Kartik
Kakarala                 

Title: CEO                                                  

 

 

 

 

 

[SIGNATURE
PAGE TO SUBORDINATION AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

 

BORROWERS:

 

RUMBLEON,
INC.

 

Signature:         

_/s/ Steven R. Berrard
____

Print
Name:     

__Steven R. Berrard
______

Title:                   

__Chief Financial
Officer__

 

 

NEXTGEN
PRO, LLC

 

Signature:          

_/s/ Steven R. Berrard
____

Print
Name:     

__Steven R. Berrard
______

Title:           

___Manager_____________

 

 

RMBL
MISSOURI, LLC

 

Signature:      

_/s/ Steven R. Berrard
____

Print
Name:     

__Steven R. Berrard
______

Title:            

___Manager_____________

 

 

RMBL
TEXAS, LLC

 

Signature:           

_/s/ Steven R. Berrard
____

Print
Name:   

__Steven R. Berrard
______

Title:             

___Manager_____________

 

 

 

 

 

 

 

 

 

EXHIBIT
A

 

SUBORDINATED
NOTE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBORDINATED SECURED CONFESSED JUDGMENT PROMISSORY
NOTE

 

	

$1,333,333

	

February 8, 2017 (“Effective Date”)

 

IMPORTANT NOTICE

 

THIS
INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH
CONSTITUTES A WAIVER OF IMPORTANT RIGHTS YOU MAY HAVE AS A DEBTOR
AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT
ANY FURTHER NOTICE.

 

FOR VALUE RECEIVED, the undersigned,
Smart Server, Inc., a Delaware corporation (“Borrower”), does hereby
promise to pay to the order of NextGen Dealer Solutions, LLC
(“Lender”), on the third
anniversary of the Effective Date (the “Maturity Date”), or such
earlier time as provided herein, the principal sum of One Million
Three Hundred Thirty Three Thousand Three Hundred Thirty Three
Dollars ($1,333,333) (the “Principal Amount”), in
lawful money of the United States of America, together with any
unpaid, accrued interest (“Interest”) thereon, on
the terms and conditions set forth in this Subordinated Secured
Confessed Judgment Promissory Note (this “Note”).

 

1. Interest.
From the Effective Date through and until the second anniversary of
the Effective Date, Interest shall accrue on the outstanding and
unpaid Principal Amount at the rate of 6.5% per annum. From the
second anniversary of the Effective Date and until the Maturity
Date, Interest shall accrue on the outstanding and unpaid Principal
Amount at the rate of 8.5% per annum. Interest shall be computed on
the basis of a 365-day year for the actual number of days in the
interest period. All Interest shall be paid to Lender semi-annually
in arrears on the last day of each six month anniversary of the
Effective Date, including, if applicable, on the Maturity
Date.

 

2. Maturity
Date. Borrower will repay the
outstanding Principal Amount, together with any accrued and unpaid
Interest thereon, in one lump sum on the Maturity
Date.

 

3. Prepayment.
The Principal Amount and any Interest accrued thereon may be
prepaid by Borrower at any time prior to the Maturity Date without
premium or penalty.

 

4. Application of
Payments. All payments made under this Note shall be applied
first to late penalties or other sums owed to the holder of this
Note, next to accrued interest, if any, and then to the Principal
Amount.

 

 

 

 

5. Default. If
(1) Borrower shall fail to pay the then unpaid Principal Amount on
the Maturity Date or any Interest accrued thereon when due, (2)
Borrower shall fail to perform, observe or comply with any other
obligation under this Note, which failure is not cured promptly but
in no case more than fifteen (15) days after written notice to
Borrower, except that in the event Borrower is unable to complete
the cure within the fifteen (15) day period, the cure period shall
be extended if Borrower has commenced the cure within fifteen (15)
days and is diligently pursuing the cure; in no event, however,
shall the cure period exceed thirty (30) days from the date of
Lender’s notice, unless Lender and Borrower mutually agree to
an extension of the cure period, (3) NextGen Pro, LLC shall fail to
pay any amount due under the Unconditional Guaranty Agreement
attached hereto and incorporated herein by reference as Exhibit A and executed on
the date hereof by the NextGen Pro, LLC in favor of the Lender (the
“Guaranty”), (4) NextGen Pro, LLC shall fail to
perform, observe or comply with any other obligation under the
Guaranty or the Security Agreement attached hereto and incorporated
herein by reference as Exhibit B and executed on
the date hereof by the NextGen Pro, LLC in favor of the Lender (the
“Security Agreement”), which failure is not cured
promptly but in no case more than fifteen (15) days after written
notice to NextGen Pro, LLC, except that in the event NextGen Pro,
LLC is unable to complete the cure within the fifteen (15) day
period, the cure period shall be extended if NextGen Pro, LLC has
commenced the cure within fifteen (15) days and is diligently
pursuing the cure; in no event, however, shall the cure period
exceed thirty (30) days from the date of Lender’s notice,
unless Lender and NextGen Pro, LLC mutually agree to an extension
of the cure period, (4) Borrower or NextGen Pro, LLC is acquired in
a merger, consolidation or transfer of all or substantially all of
its assets, or (5) Borrower shall commence a voluntary case
concerning itself under Title 11 of the United States Code entitled
“Bankruptcy,” as now or hereafter in effect, or any
successor thereto (the “Bankruptcy Code”); or an
involuntary case is commenced against Borrower under the Bankruptcy
Code, and the petition is not controverted within 30 days, or is
not dismissed within 90 days, after commencement of the case; or a
trustee or custodian is appointed for, or takes charge of, all or
substantially all of the property of Borrower, or Borrower
commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to Borrower, or there
is commenced against Borrower any such proceeding which remains
undismissed for a period of 90 days, or Borrower is adjudicated
insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or Borrower makes
a general assignment for the benefit of creditors (any of the
events referred to in Section 4 (1) – (5) above being
referred to herein as a “Default”); then Lender, by
written notice to Borrower, may declare the unpaid Principal Amount
and any accrued Interest thereon to be, and the same shall
thereupon become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are
hereby waived by Borrower, and Interest on the unpaid Principal
Amount shall thereafter accrue at the rate of ten percent (10%) per
annum.

 

6. Security.

 

As
security for the prompt payment and complete performance of
Borrower of its obligations under this Note, NextGen Pro, LLC has
executed and delivered to the Lender on the date hereof the
Guaranty and the Security Agreement.

 

 

 

 

7. Subordination.

 

(a) Notwithstanding
anything to the contrary set forth in this Note, all of the
obligations under this Note ("Subordinated Obligations")
shall at all times and in all respects be subordinate and junior in
right of payment to all Senior Debt (defined below), and for so
long as any Senior Debt shall be outstanding, Borrower shall not be
obligated to make any payments otherwise required hereunder if the
Borrower is then in default under any agreements evidencing and
securing the Senior Debt ("Senior Debt Documents") or the
payment would cause the Borrower to be in default under the Senior
Debt Documents. For purposes of this Note, "Senior Debt" shall mean any
indebtedness of the Borrower as defined under United States
Generally Accepted Accounting Principles, as in effect on the date
hereof, that is secured by any assets of the Borrower, including,
but not limited to (i) any indebtedness for borrowed money or
indebtedness evidenced by notes, bonds or similar instruments,
including any term loan, revolving credit financing, working
capital financing, floor plan financing or real estate financing,
and (ii) purchase money indebtedness and capital leases, , in each
case, whether now existing or entered into after the date
hereof.

 

(b) The security
interest granted under the Security Agreement (the “Security
Interest”) shall be subordinated for all purposes and in all
respects to the liens and security interests securing any Senior
Debt, regardless of the time, manner or order of perfection of any
such liens and security interests.

 

(c) Promptly upon
Borrower's request, Lender will from time to time execute and
deliver a subordination agreement on the terms consistent with this
Section 7 and reasonably requested by any holder of any Senior Debt
(or any agent for such holders), including but not limited to
subordination provisions providing for "deep subordination" of this
Note, the Subordinated Obligations and the Security Interest to any
Senior Debt; provided that the provisions of such subordination
agreement shall not expand the limitations on Borrower's payment
obligations set forth in the first sentence of Section
7(a).

 

(d) The
subordination, agreements and priorities set forth in this Section
7 shall remain in full force and effect until this Note shall have
been indefeasibly paid in full (regardless of whether or not any
Senior Debt shall be outstanding), and in the event the Lender is
required to return to any party funds or other property that Lender
receives from Borrower or any of its respective affiliates in
respect of the Subordinated Obligations, the Lender shall not have
been deemed to have waived its rights to payment in full under this
Note, provided that the provisions of this Section 7 shall apply to
such rights to payment of the Lender and to the continuing
obligations of the Borrower in respect thereof (which for all
purposes shall continue to be Subordinated Obligations hereunder),
and Lender agrees to be bound thereby.

 

8. CONFESSION
OF JUDGMENT. UPON A DEFAULT
OF THIS NOTE, THE BORROWER AUTHORIZES ANY ATTORNEY ADMITTED TO
PRACTICE BEFORE ANY COURT OF RECORD IN THE UNITED STATES, INCLUDING
GLENN D. SOLOMON, AS THE BORROWER’S TRUE
AND LAWFUL ATTORNEY-IN-FACT, WITH FULL POWER AND AUTHORITY FOR THE
BORROWER, IN THE BORROWER’S NAME, PLACE AND STEAD,
ON BORROWER’S BEHALF, TO
WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND CONFESS JUDGMENT AGAINST THE BORROWER, IN
THE FULL AMOUNT THEN DUE UNDER THIS NOTE, INCLUDING ANY EXPENSES OF
COLLECTION, PLUS REASONABLE ATTORNEYS’ FEES. THE AUTHORITY
AND POWER TO APPEAR FOR AND ENTER JUDGMENT AGAINST THE BORROWER
SHALL NOT BE EXTINGUISHED BY ANY JUDGMENT ENTERED PURSUANT THERETO;
SUCH AUTHORITY AND POWER MAY BE EXERCISED ON ONE OR MORE OCCASIONS
FROM TIME TO TIME, IN THE SAME OR DIFFERENT JURISDICTIONS, AS OFTEN
AS THE HOLDER OF THIS NOTE SHALL DEEM NECESSARY OR ADVISABLE UNTIL
ALL SUMS DUE UNDER THIS NOTE HAVE BEEN PAID IN
FULL.

 

 

 

 

9. No Waiver or
Modification Except in Writing. No failure on the part of
Lender to exercise, and no delay in exercising, any right, remedy,
or power under this Note or under any other document or agreement
executed in connection with this Note shall operate as a waiver
thereof. This Note may not be amended or modified orally, nor may
any right or provision hereof be waived orally, but only by an
instrument in writing signed by the party against which enforcement
of such amendment, modification or waiver is sought.

 

10. Waiver of
Presentment. Borrower hereby waives presentment for payment,
protest and notice of maturity or non-payment.

 

11. Severability.
If any provision of this Note is held invalid or unenforceable by
any court of competent jurisdiction, the other provisions of this
Note will remain in full force and effect. Any provision of this
Note held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or
unenforceable. The parties consent to the reformation of any
invalid or unenforceable provision so that it is enforceable to the
maximum extent permitted by law.

 

12. Notices. All
notices, requests, consents, demands, and other communications
under this Note shall be in writing and shall be delivered either
(a) via hand delivery; (b) via facsimile to the recipient’s
number (with a confirmation copy delivered via reputable airborne
carrier); or (c) via reputable airborne carrier (e.g., Federal
Express or DHL). Notice shall be deemed delivered when actually
received by the intended recipient. All notices shall be addressed
to such address as any party may indicate for itself by written
notice to the other party.

 

13. Assignments.
The Lender shall not assign or transfer any claim, or suffer or
permit the creation or attachment of any lien, claim, encumbrance,
hypothecation or pledge upon any claim, with respect to the
Subordinated Obligations, unless such assignment or transfer is
made expressly subject to this Note, and Lender agrees to provide
to any holder of Senior Debt (or its agents) written confirmation
from any such assignee or transferee of receipt of, and agreement
to be bound by, this Note. Borrower agrees that Lender may pledge
this Note to Cycle Express, LLC as security for the repayment of
the $250,000 Promissory Note executed by the Lender on the date
hereof in favor of Cycle Express, LLC. Cycle Express, LLC and any
other assignee or pledgee of this Note shall promptly deliver to
Borrower a written acknowledgement of the subordination provisions
contained in Section 7 of this Note and its obligation to comply
therewith. In the event one or more subordination agreements are in
effect, Cycle Express, LLC and any other assignee or pledgee of
this Note shall promptly execute a joinder to or an acknowledgement
of such subordination agreement(s) in the form reasonably
acceptable to the Senior Lender(s) party to such subordination
agreement(s).

 

14. Governing
Law. This Note shall be governed by and construed in
accordance with the laws of the State of Maryland.

 

15. Consent to
Jurisdiction. Each of Borrower
and Lender submits to the exclusive jurisdiction of any state or
federal court within the State
of Maryland in any action or proceeding arising out of or relating
to this Agreement and agrees that all claims in respect of the
action or proceeding shall be exclusively heard and determined in
any such court. The parties hereby irrevocably waive, to the
fullest extent permitted by applicable law, any objection which
they may now or hereafter have to the laying of venue of any such
dispute brought in such court. Each of the Parties waives any
defense of inconvenient forum to the maintenance of any action or
proceeding so brought.

 

 

 

 

 

16. WAIVER OF JURY
TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
NOTE OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS NOTE, INCLUDING, WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON
LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY
EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT
TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND
REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.

 

17. Facsimile
Signature. The execution of this Note by Borrower and the
delivery to Lender of a facsimile or PDF copy of such executed Note
shall be effective to obligate Borrower hereunder for all purposes
and such facsimile or PDF copy shall be deemed to be an original
for all purposes.

 

18. Usury Laws.
It is the intention of the parties to conform strictly to all
applicable usury laws now or hereafter in force, and if the
interest imposed hereunder is in excess of the maximum legal amount
allowed under the applicable usury laws as now or hereafter
construed by the courts having jurisdiction over such matters (the
“Usury Laws’) any Interest payable under this Note
shall be subject to reduction to the amount equal to the maximum
legal amount allowed under the Usury Laws. The aggregate of all
interest (whether designated as interest, service charges, points,
or otherwise) contracted for, chargeable, or receivable under this
Note shall under no circumstances exceed the maximum legal rate
upon the unpaid principal balance of this Note remaining unpaid. If
such interest does exceed the maximum legal rate, it shall be
deemed a mistake and such excess shall be canceled automatically
and, if theretofore paid, rebated to Borrower or credited on the
unpaid Principal Amount, or if this Note has been repaid, then such
excess shall be rebated to Borrower.

 

19. Expenses of
Collection. Upon a Default, this Note may be referred to an
attorney for collection, whether or not judgment has been confessed
or suit has been filed, and the Borrower shall pay all of the
reasonable costs, fees, and expenses, including reasonable
attorney’s fees, incurred by the Lender.

 

20. Binding
Nature. This Note shall inure to the benefit of and be
enforceable by the Lender and the Lender’s successors and
permitted assigns, and shall be binding and enforceable against the
Borrower and the Borrower’s successors and
assigns.

 

 

 

 

NOW THEREFORE, Borrower has executed
this Subordinated Secured Confessed Judgment Promissory Note under
seal on the date first above written.

 

	
 WITNESS:

	
BORROWER:

	
 

 

 

 

 

____________________________                              

	

SMART
SERVER, INC.

 

 

 

                                                

By: /s/ Marshall
Chesrown

 

Name:
Marshall Chesrown

Title:
Chief Executive Officer

	
  

	
  

 

ACKNOWLEDGED
AND AGREED:

 

 

 

LENDER:

 

 

 

NEXTGEN
DEALER SOLUTIONS, LLC

 

 

By: /s/ Kartik
Kakarala        

Name:
Kartik Kakarala

Title:
President

 

 

 

 

EXHIBIT
A

 

 

 

UNCONDITIONAL
GUARANTY AGREEMENT

 

 

 

 

 

 

 

 

 

UNCONDITIONAL GUARANTY AGREEMENT

 

 

 

THIS
UNCONDITIONAL GUARANTY AGREEMENT (the "Guaranty") is made as of the
8th day of February, 2017, by NEXTGEN PRO, LLC, a Delaware limited
liability company (the "Guarantor") to and for the benefit of
NEXTGEN DELAER SOLUTIONS, LLC, a Delaware limited liability company
(the "Lender").

 

 

R E C I T A L S

 

A.           Pursuant
to the Asset Purchase Agreement executed on January 8, 2017 by and
among the Lender, Smart Server, Inc. (“Borrower”),
Halcyon Consulting, LLC (“Halcyon”) and certain other
parties signatory thereto, the Lender agreed to sell and the
Borrower agreed to purchase substantially all of the assets of the
Lender (the “Asset Purchase Agreement”).

 

B.           One
Million Three Hundred Thirty-Three Thousand Three Hundred
Thirty-Three Dollars ($1,333,333.00) of the purchase price under
the Asset Purchase Agreement is to be paid pursuant to the terms
and conditions set forth in the Subordinated Secured Confessed
Judgment Promissory Note of even date herewith executed by Borrower
in favor of the Lender (the "Note").

 

C.           On
the date hereof, Borrower assigned its rights, but not obligations,
under the Asset Purchase Agreement to the Guarantor.

 

D.           As
a condition precedent to the Lender’s agreement to close
under the Asset Purchase Agreement, the Guarantor has agreed to
execute and deliver this Guaranty pursuant to which the Guarantor
will guarantee to the Lender (the "Beneficiary") the full payment
and performance of all of the Borrower's obligations under the
Note.

 

NOW,
THEREFORE, in consideration of the foregoing recitals, and other
good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Guarantor agrees as
follows:

 

1.           Guaranty.
The Guarantor unconditionally guarantees to the Beneficiary and its
respective successors and assigns, the full and prompt payment to
the Beneficiary when due of all amounts of every kind due to the
Beneficiary from the Borrower pursuant to the Note, and the full
and prompt performance of all of the Borrower's obligations to the
Beneficiary under the Note. The Guarantor unconditionally
guarantees that all sums due and owing under the Note shall be paid
when and as due, whether by reason of installments, acceleration or
otherwise, time being of the essence.

 

 

 

 

2.           Nature
of the Guaranty. This is a guaranty of payment and not of
collection and the obligations of the Guarantor hereunder shall be
direct, immediate and primary. This Guaranty shall in all respects
be a continuing absolute and unconditional guarantee irrespective
of the genuineness, validity or enforceability of the Note or any
part thereof, or by the existence, enforceability, perfection or
extent of any collateral therefor.

 

3.           Beneficiaries
Need Not Pursue Rights Against Borrower, Any Guarantor, or
Collateral. The Guarantor authorizes the Beneficiary without
notice, demand or any reservation of rights against the Guarantor
and without affecting the Guarantor's obligations hereunder, from
time to time, to resort to the Guarantor for payment of the amounts
due and performance of the obligations under the Note or any part
thereof, whether or not the Beneficiary shall have resorted to any
collateral securing the Note or any part thereof or shall have
proceeded against any other person principally or secondarily
obligated with respect to the Note or any part
thereof.

 

4.           Accuracy
of Representations. The Guarantor warrants that all of the
representations made by the Guarantor in connection with the Note
and the transactions contemplated thereby are true and correct and
not knowingly misleading and the Guarantor agrees to indemnify the
Beneficiary from any loss or expense as a result of any
representation or statement of the Guarantor or the Borrower being
false, incorrect, or knowingly misleading

 

5.           Representations
of the Guarantor. To induce the Beneficiary to accept this
Guaranty for the purposes for which it is given, the Guarantor
represents and warrants to the Beneficiary as follows:

 

A.           Organization. Guarantor is a
limited liability company, duly organized, validly existing and in
good standing under the laws of the State of Delaware, and has all
requisite corporate power and authority to own, lease and operate
its properties and to carry on its business. Guarantor is duly
qualified or authorized to do business as a foreign company and is
in good standing under the laws of each jurisdiction in which the
conduct of its business or the ownership of its properties requires
such qualification or authorization, except to the extent the
failure to do so would not reasonably be expected to result in a
material adverse effect on Guarantor.

 

B.           Non-Existence
of Defaults, etc. The Guarantor is not in material default
with respect to any of its existing indebtedness, and the making
and performance of this Guaranty will not immediately, or with the
passage of time, the giving of notice, or both, constitute a
default under any existing indebtedness of Guarantor.

 

C.           Violation
of Laws. In the conduct of its businesses and affairs, the
Guarantor is not in violation of any applicable federal, state or
local laws, the violation of which would cause a material adverse
effect on the Guarantor.

 

D.           Capacity.
The execution, delivery and performance of this Guaranty has been
duly authorized by all necessary action by or on behalf of
Guarantor. The Guarantor has the legal capacity to execute and
deliver this Guaranty as a valid obligation, which is binding and
enforceable in accordance with the terms hereof.

 

 

 

 

E.           No
Insolvency. There is no pending or threatened bankruptcy or
insolvency proceeding by or against the Guarantor.

 

6.           Security.
As security for the prompt payment and complete performance by
Guarantor of its obligations under this Guaranty, Guarantor has
executed and delivered to the Lender on the date hereof the
Security Agreement (hereinafter defined in Section 9).

 

7.           Rights
of Beneficiary to Deal With Borrower, Guarantor, and
Collateral. The Beneficiary may, without compromising,
impairing, diminishing, or in any way releasing the Guarantor from
the Guarantor's obligations hereunder and without notifying or
obtaining the prior approval of the Guarantor at any time or from
time to time: (a) waive or excuse a default or defaults by the
Borrower or any person who has guaranteed in whole or in part any
of the Borrower's obligations under the Note, or a delay in the
exercise by the Beneficiary of any or all of the Beneficiary's
rights or remedies with respect to such default or defaults; (b)
grant extensions of time for payment or performance by the Borrower
or any person who has guaranteed in whole or in part any of the
Borrower's obligations under the Note; (c) release, substitute,
exchange, surrender, or add collateral of the Borrower or any
person who has guaranteed in whole or in part any of the Borrower's
obligations under the Note, or waive, release or subordinate, in
whole or in part, any lien or security interest held by the
Beneficiary on any real or personal property securing payment or
performance, in whole or in part, of the Borrower's obligations
under the Note; (d) release the Borrower or any person who has
guaranteed in whole or in part, any of the Borrower's obligations
under the Note; (e) apply payments made by the Borrower, or by any
person who has guaranteed in whole or in part, any of the
Borrower's obligations under the Note, to any sums owed by the
Borrower to the Beneficiary, in any order, or manner, or to any
specific account or accounts, as the Beneficiary may elect; or (f)
modify, change, renew, extend, or amend, in any respect any of the
provisions of the Note or this Guaranty.

 

8.           Waivers
by the Guarantor. The Guarantor waives: (a) any and all
notices whatsoever with respect to this Guaranty or with respect to
any of the Borrower's obligations under the Note, including, but
not limited to, notice of: (i) the Beneficiary's acceptance hereof
or the Beneficiary's intention to act, or the Beneficiary's action,
in reliance hereon; (ii) the present existence or future occurrence
of an event of default of any of the Borrower's obligations under
the Note or any terms or amounts thereof of any change therein;
(iii) any default by the Borrower or any surety, pledgor, grantor
of security, guarantor or other person who has guaranteed or
secured in whole or in part the Borrower's obligations under the
Note; and (iv) the obtaining or release of any guaranty or surety
agreement (in addition to this Guaranty), pledge, assignment, or
other security for any of the Borrower's obligations under the
Note; and (b) (i) presentment, protest and demand for payment of
any sum due from the Borrower under the Note or any person who has
guaranteed in whole or in part any of the Borrower's obligations
under the Note, including the Guarantor; (ii) notice of default by
the Borrower or any person who has guaranteed in whole or in part
any of the Borrower's obligations under the Note, including the
Guarantor; (iii) demand for performance by the Borrower or any
person who has guaranteed in whole or in part any of the Borrower's
obligations under the Note.

 

 

 

 

9.           Events
Authorizing Acceleration of Guaranty. In the event any of
the following occur with respect to the Guarantor or, with respect
to the Borrower (an "Event of Default"), the Beneficiary may, in
the Beneficiary's sole and absolute discretion, accelerate and call
due as to the Guarantor all sums due from the Borrower: (a)
Guarantor shall commence a voluntary case concerning itself under
Title 11 of the United States Code entitled
“Bankruptcy,” as now or hereafter in effect, or any
successor thereto (the “Bankruptcy Code”); or an
involuntary case is commenced against Guarantor under the
Bankruptcy Code, and the petition is not controverted within 30
days, or is not dismissed within 90 days, after commencement of the
case; or a trustee or custodian is appointed for, or takes charge
of, all or substantially all of the property of Guarantor, or
Guarantor commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to Guarantor, or there
is commenced against Guarantor any such proceeding which remains
undismissed for a period of 90 days, or Guarantor is adjudicated
insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or Guarantor
makes a general assignment for the benefit of creditors; (b) any
"Default" as defined under the Note or under the Security Agreement
between the Guarantor and the Lender, dated the date hereof,
attached hereto as Exhibit A and incorporated herein by reference
(the “Security Agreement”), or (c) a default by the
Guarantor in payment or in performance of any of its obligations
under this Guaranty.

 

10.           Confession
of Judgment. UPON A DEFAULT
OF THIS GUARANTY, THE GUARANTOR AUTHORIZES ANY ATTORNEY ADMITTED TO
PRACTICE BEFORE ANY COURT OF RECORD IN THE UNITED STATES, INCLUDING
GLENN D. SOLOMON, AS GUARANTOR’S TRUE AND
LAWFUL ATTORNEY-IN-FACT, WITH FULL POWER AND AUTHORITY FOR
GUARANTOR, IN GUARANTOR’S NAME, PLACE AND STEAD,
ON GUARANTOR’S BEHALF, TO
WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND CONFESS JUDGMENT AGAINST GUARANTOR, IN THE
FULL AMOUNT THEN DUE UNDER THIS GUARANTY, INCLUDING ANY EXPENSES OF
COLLECTION, PLUS REASONABLE ATTORNEYS’ FEES. THE AUTHORITY
AND POWER TO APPEAR FOR AND ENTER JUDGMENT AGAINST GUARANTOR SHALL
NOT BE EXTINGUISHED BY ANY JUDGMENT ENTERED PURSUANT THERETO; SUCH
AUTHORITY AND POWER MAY BE EXERCISED ON ONE OR MORE OCCASIONS FROM
TIME TO TIME, IN THE SAME OR DIFFERENT JURISDICTIONS, AS OFTEN AS
THE BENEFICIARY SHALL DEEM NECESSARY OR ADVISABLE UNTIL ALL SUMS
DUE UNDER THE GUARANTY HAVE BEEN PAID IN FULL.

 

11.           Collection
Expenses. All reasonable and documented out-of-pocket costs
and expenses (including reasonable attorney fees and expenses) of
the prevailing party in any action to enforce any rights under this
Guaranty, shall be borne and paid by the non-prevailing
party.

 

12.           Subordination
of Certain Indebtedness. If the Guarantor shall advance any
sums to Borrower or its successors or assigns or if the Borrower or
its successors or assigns shall hereafter become indebted to the
Guarantor, such sums and indebtedness shall be subordinate in all
respects to the amounts then or thereafter due and owing to the
Beneficiary. Nothing herein contained shall be construed to give
the Guarantor any right of subrogation in and to any obligations of
the Borrower to the Beneficiary, or in any of the collateral
therefor, or all or any part of the Beneficiary's interest
therein.

 

 

 

 

13.           Invalidity
of Any Part. If any provision or part of any provision of
this Guaranty shall for any reason be held invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provisions or the
remaining part of any effective provisions of this Guaranty and
this Guaranty shall be construed as if such invalid, illegal, or
unenforceable provision or part thereof had never been contained
herein, but only to the extent of its invalidity, illegality, or
unenforceability.

 

14.           Subrogation
Rights. The Guarantor waives and releases the Beneficiary
from any damages which the Guarantor may incur as a result of any
impairing, diminishing, or destroying of any of the Guarantor's
rights of subrogation, unless such impairing, diminishing or
destroying is willful or grossly negligent. To the extent that the
Guarantor satisfies or discharges any of the Borrower's obligations
to the Beneficiary, the Beneficiary does hereby assign, transfer
and convey unto the Guarantor any and all rights, interests,
actions or causes of action, claims and remedies of the
Beneficiary, provided, that, any and all such rights of the
Guarantor shall be subordinate to the rights and interests of the
Beneficiary hereunder.

 

15.           Notices.
Any notice or consent required or permitted by this Guaranty (but
without implying any obligation to give a notice or obtain a
consent) shall be in writing and shall be made by hand delivery, by
overnight mail by nationally recognized courier, by wire or by
certified mail, return receipt requested, postage prepaid,
addressed to the Beneficiary or the Guarantor at the appropriate
address set forth below or to such other address as may be
hereafter specified by written notice by either party, and shall be
considered given as of the date of hand delivery or wire, one day
after being sent by overnight mail or as of two (2) business days
after the date of mailing, as the case may be:

 

If to
the Beneficiary:

 

NextGen
Dealer Solutions, LLC

1431
Greenway Drive

Suite
775

Irving,
TX 75038

Attention: Kartik
Kakarala

 

With a
copy (which shall not constitute notice) to:

 

Glenn
D. Solomon, Esquire

Offit
Kurman, P.A.

8171
Maple Lawn Boulevard

Suite
200

Maple
Lawn, MD 20759

 

If to
the Guarantor:

 

NextGen
Pro, LLC

4521
Sharon Road

Suite
370

Charlotte, NC
28211

Attn:
Steven Berrard

 

 

 

 

With a
copy (which shall not constitute notice) to:

 

Akerman
LLP

Three
Brickell City Centre

98 SE
7th
Street

Miami,
FL 33131

Attn:
Scott A. Wasserman

 

16.           Effective
Date. The guaranty of the Guarantor as herein set forth
shall be effective as of the date of this Guaranty, independent of
the date of execution or delivery thereof.

 

17.           Duration.
This Guaranty shall be a continuing one and shall be binding upon
the Guarantor regardless of how long before or after the date of
this Guaranty any of the Borrower's obligations to the Beneficiary
were or are incurred by the Borrower. The guaranty under this
Guaranty shall be terminated upon the repayment and performance in
full of all of the Borrower's obligations under the
Note.

 

18.           Binding
Nature. This Guaranty shall inure to the benefit of and be
enforceable by the Beneficiary and the Beneficiary's successors and
assigns and any other person to whom the Beneficiary may grant an
interest in the Borrower's obligations to the Beneficiary, and
shall be binding upon and enforceable against the Guarantor's
heirs, personal representatives, and assigns.

 

19.           Assignability.
This Guaranty may be assigned by the Beneficiary at any time or
from time to time. This Guaranty may not be assigned by the
Guarantor.

 

20.           Choice
of Law; Consent to Jurisdiction. This Guaranty shall be
construed, interpreted, and enforced under the laws of the State of
Maryland.

 

21.           Tense,
Gender, Defined Terms, Captions. As used herein, the plural
shall refer to and include the singular, and the singular the
plural, and the use of any gender shall include and refer to any
other gender. All captions are for the purpose of convenience
only.

 

 

 

 

IN
WITNESS WHEREOF, the Guarantor has executed this Guaranty under
seal as of the date first written above, with the specific
intention that this Guaranty constitutes an instrument under
seal.

 

 

WITNESS:                                                                                      

GUARANTOR

 

 

NEXTGEN
PRO, LLC

 

 

_______________________

 By:
/s/ Marshall
Chesrown (SEAL)

 

 

 

 

 

 

 

EXHIBIT
B

 

 

 

SECURITY
AGREEMENT

 

 

 

 

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT (the
“Agreement”), made this 8th day of February, 2017, by
and between NEXTGEN PRO, LLC, a Delaware limited liability company,
with an address of 4521 Sharon Road, Suite 370, Charlotte, North
Carolina 28211 ("Debtor"),
and NEXTGEN DEALER SOLUTIONS, LLC, a Delaware limited liability
company, with an address of 1431 Greenway Drive, Suite 775, Irving,
Texas 75038 (the "Secured
Party").

 

1.            

Grant
of Security Interest. Subject
to the applicable terms of this Security

Agreement, Debtor grants to Secured Party a security interest in
the Collateral to secure the payment of the Obligation, provided
that the security interest granted hereby is subject to the
provisions of applicable law (e.g., UCC Section
9-408(c).

 

2.            

The
Obligation. As used in this
Agreement, "Obligation"
means collectively all

 

of the following:

 

(a) All
amounts due pursuant to the terms of an Unconditional Guaranty
Agreement dated even date herewith (the "Guaranty")
from the Debtor to Secured Party, pursuant to which the Debtor
guaranteed the payment and performance of all obligations of Smart
Server, Inc. under a Subordinated Secured Confessed Judgment
Promissory Note dated even date herewith in the face amount of One
Million Three Hundred Thirty-Three Thousand Three Hundred
Thirty-Three Dollars ($1,333,333.00).

 

(b) All
costs incurred by Secured Party to enforce the security interest
granted hereby ("Security
Interest"), collect the
Obligation, and maintain the Collateral free of liens (other than
Permitted Encumbrances as defined on Exhibit A
attached hereto), and including (but
not limited to) reasonable attorneys' fees and legal expenses, and
expenses of sale.

 

3.            

The
Collateral. As used in this
Security Agreement, "Collateral"
shall mean all

of Debtor's assets, both now and hereafter acquired, and wherever
located, including but not limited to:

 

(a) Accounts;

 

(b) Chattel
paper;

 

(c) Contracts;

 

(d) Deposit
accounts;

 

(e) Documents;

 

(f) Equipment;

 

(g) Farm
products;

 

(h) Fixtures;

 

 

 

 

(i) General
intangibles;

 

(j) Goods;

 

(k) Instruments;

 

(l) Inventory;

 

(m) Investment
property;

 

(n) Letter-of-credit
rights;

 

(o) Franchise
agreements; and

 

(p) The
Patent Collateral (hereinafter defined);

 

(q) The
Trademark Collateral (hereinafter defined);

 

(r) Intellectual
property; and

 

(s) Proceeds
and products of all of the foregoing;

 

provided however, that the "Collateral" shall
exclude the "Excluded
Property". Excluded Property
means (i) motor vehicles and other assets subject to certificates
of title, letter of credit rights and commercial tort claims; (ii)
pledges and security interests prohibited by applicable law, rule,
regulation; (iii) equity interests in any person other than
wholly-owned subsidiaries of Borrower; (iv) any lease, license or
other agreement to the extent that a grant of a security interest
therein would violate or invalidate such lease, license or
agreement or create a right of termination in favor of any other
party thereto; (v) any governmental licenses or state or local
franchises, charters and authorizations (but not registered patents
and trademarks); (vi) any equipment or other asset subject to liens
securing capitalized lease obligations or permitted purchase money
indebtedness.

 

“Patent
Collateral” means:

 

(a) All
patents and patent applications, including patent application
number 14614160 known as “Near Field Communication (NFC)
Vehicle Identification System and Process” filed with the
United States Patent and Trademark Office and all registrations,
reissues, divisions, continuations, continuations-in-part,
renewals, extensions and reexaminations thereof and amendments
thereto (the "Patents");

 

(b) all
rights of any kind whatsoever of Debtor accruing under any of the
Patents provided by applicable law of any jurisdiction, by
international treaties and conventions and otherwise throughout the
world;

 

(c) any
and all royalties, fees, income, payments and other proceeds now or
hereafter due or payable with respect to any and all of the
Patents; and

 

 

 

(d)           any
and all claims and causes of action, with respect to any of the
Patents, whether occurring before, on or after the date hereof,
including all rights to and claims for damages, restitution and
injunctive and other legal and equitable relief for past, present
and future infringement, misappropriation, violation, misuse,
breach or default, with the right but no obligation to sue for such
legal and equitable relief and to collect, or otherwise recover,
any such damages.

 

“Trademark Collateral” means:

 

(a) All
trademark registrations and applications, including the trademark
“CyclePro” registered with the United States Patent and
Trademark Office, Registration number 4,662,863, together with the
goodwill connected with the use of and symbolized thereby and all
extensions and renewals thereof (the "Trademarks"), excluding only United States intent-to-use
trademark applications to the extent that and solely during the
period in which the grant of a security interest therein would
impair, under applicable federal law, the registrability of such
applications or the validity or enforceability of registrations
issuing from such applications;

 

(b) all
rights of any kind whatsoever of Debtor accruing under any of the
Trademarks provided by applicable law of any jurisdiction, by
international treaties and conventions and otherwise throughout the
world;

 

(c) any
and all royalties, fees, income, payments and other proceeds now or
hereafter due or payable with respect to any and all of the
Trademarks; and

 

(d) any
and all claims and causes of action, with respect to any of the
Trademarks, whether occurring before, on or after the date hereof,
including all rights to and claims for damages, restitution and
injunctive and other legal and equitable relief for past, present
and future infringement, dilution, misappropriation, violation,
misuse, breach or default, with the right but no obligation to sue
for such legal and equitable relief and to collect, or otherwise
recover, any such damages.

 

4.            

Debtor's
Covenants.

 

(a) Debtor
shall maintain at its principal place of business complete records
regarding all account balances due Debtor, whether secured or
unsecured, which account balances comprise the Collateral
hereunder. Such records shall include, without limitation, current
statements of balances due, and copies of all contracts,
instruments or documents evidencing, securing or guarantying such
balances. Upon reasonable prior notice by Secured Party, Debtor
shall make all such records available for inspection and copying by
Secured Party and/or its agents during normal business
hours.

 

(b) Debtor
covenants and agrees that it shall: (i) take adequate care of the
Collateral (except as provided in 4(b)(viii) below) in accordance
with reasonable and customary business practices for similar
businesses as the Debtor's, reasonable wear and tear excepted;
(ii) insure
the Collateral for such hazards and in such amounts customary for
similar businesses as the Debtor's, with policies to name the
Secured Party as additional insured and/or loss payee, as the case
may be; (iii) pay all costs necessary to enforce the Security
Interest, collect the Obligation, and maintain the Collateral free
of liens (other than Permitted Encumbrances), including (but not
limited to) taxes, assessments, reasonable attorneys' fees and
legal expenses, and expenses of sale; (iv) furnish Secured Party
with any information on the Collateral reasonably requested by
Secured Party; (v) upon receipt of reasonable prior written notice,
allow Secured Party to inspect the Collateral, and inspect and copy
all records relating to the Collateral and the Obligation, in each
case, during business hours; (vi) take commercially reasonable
steps to preserve the liability of account debtors, obligors, and
secondary parties whose obligations are part of the Collateral;
(vii) notify Secured Party of any material change occurring in or
to the Collateral, taken as a whole, and (viii) in its sole
discretion, make the decisions regarding any continued prosecution
and maintenance of the Patent Collateral and Trademark
Collateral.

 

 

 

 

(c) Debtor
agrees and covenants that it shall not (without Secured Party's
consent, which shall not be unreasonably withheld): (i) remove the
Collateral or any records relating thereto from the address set
forth above; (ii) allow the Collateral to become an accession to
other goods; or (iii) allow the Collateral to be affixed to real
estate, except goods identified herein as fixtures.

 

(d) Debtor
warrants and represents to the best of its information, knowledge
and belief, as follows: no financing statement or collateral
assignment has been filed or executed with respect to the
Collateral except in favor of the Secured Party; (ii) Debtor is
absolute owner of the Collateral and the Collateral is not
encumbered other than by Permitted Encumbrances; (iii) none of the
Collateral is affixed to real estate or an accession to other
goods, nor will Collateral acquired hereafter be affixed to real
estate or an accession to other goods when acquired, unless Debtor
has furnished Secured Party the consents or disclaimers necessary
to make this Security Interest valid against persons holding
interests in the real estate or other goods; (iv) all of the
Collateral is located at Debtor's address set forth above; (v)
Debtor has never been known by, or done business under, any name
other than those set forth above.

 

(e) Debtor
authorizes Secured Party to (i) file financing statements and
assignments covering the Collateral and all personal property of
Debtor and containing such legends as Secured Party shall deem
necessary or desirable to protect Secured Party's interest in the
Collateral, and (ii) file and have recorded with the United States
Patent and Trademark Office a short-form of a security agreement
evidencing the Security Interest in the Patent Collateral and
Trademark Collateral in the forms attached hereto and incorporated
herein by reference as Exhibits B and C.

 

5.            

Default.

 

(a)           Any
"Default" as defined under the Note or the Guaranty shall be an
event of default hereunder. "Senior Debt" means any indebtedness of
the Debtor as defined under United States Generally Accepted
Accounting Principles ("GAAP"),
as in effect on the date hereof, that is secured by any assets of
the Debtor, including, but not limited to (i) any indebtedness for
borrowed money or indebtedness evidenced by notes, bonds or similar
instruments, including any term loan, revolving credit financing,
working capital financing, floor plan financing or real estate
financing, and (ii) purchase money indebtedness and capital leases,
in each case, whether now existing or entered into after the date
hereof.

 

 

 

 

(b)           When
an event of default occurs, the entire Obligation becomes
immediately due and payable at Secured Party's option without
notice to Debtor, and Secured Party may proceed to enforce payment
of same and exercise any and all of the rights and remedies
available to a secured party under the Uniform Commercial Code as
well as all other rights and remedies provided for herein or by
law. When Debtor is in default, Debtor, upon demand by Secured
Party, shall assemble the Collateral and make it available to
Secured Party at a place reasonably convenient to both parties.
Debtor is entitled to any surplus and shall be liable to Secured
Party for any deficiency, arising from accounts, contract rights,
or chattel paper included in the Collateral through sale thereof to
the Secured Party.

 

6.            Remedies
of Secured Party. Secured Party
may, in its discretion, after an event of default: (i) require
Debtor to give possession or control of the Collateral to Secured
Party, and Secured Party may take possession of the Collateral
without the exercise of judicial process; (ii) indorse as Debtor's
agent any instruments or chattel paper in the Collateral; (iii)
notify account debtors and obligors on instruments to make payment
directly to Secured Party; (iv) contact account debtors directly to
verify information furnished by Debtor; (v) take control of
proceeds and use cash proceeds to reduce any part of the
Obligation; (vi) take any action Debtor is required to take or
otherwise necessary to perfect, preserve, and enforce the Security
Interest, and maintain and preserve the Collateral, without notice
to Debtor, and add costs of same to the Obligation (but Secured
Party is under no duty to take any such action); (vii) release
Collateral in its possession to Debtor, temporarily or otherwise;
(viii) take control of funds generated by the Collateral, such as
dividends, interest, proceeds or refunds from insurance, and use
same to reduce any part of the Obligation; and (ix) waive any of
its rights hereunder without such waiver prohibiting the later
exercise of the same or similar rights.

 

7.            Satisfaction
of Liens. If Secured Party
disposes of the Collateral following default, the proceeds of such
disposition shall be applied first to the Note secured by the
Guaranty included in the Obligation, and thereafter to all
remaining Obligations secured hereby. For purposes of this
paragraph, an extended or renewed guaranty will be considered
executed on the date of the original Guaranty.

 

8.            Subordination.
Notwithstanding anything to the contrary set forth in this Security
Agreement:

 

(a) The
Security Interest shall be subordinated for all purposes and in all
respects to the liens and security interests securing any Senior
Debt, regardless of the time, manner or order of perfection of any
such liens and security interests.

 

(b) Promptly
upon Debtor's request, Secured Party will from time to time execute
and deliver a subordination agreement on the terms consistent with
Section 7 of the Note and this Section 8 and reasonably requested
by any holder of any Senior Debt (or any agent for such holders),
including but not limited to subordination provisions providing for
subordination of the Note, the Obligation and the Security Interest
to any Senior Debt.

 

 

 

 

9.            Release.
Upon payment in full of the Obligation, the Security Interest shall
automatically terminate and be released without any further action
of the Secured Party, and at such time Debtor is authorized to file
terminations, releases and any other document necessary to
terminate and release any evidence of the Security Interest
delivered by Debtor or otherwise recorded or filed to evidence the
Security Interest, including releases of UCC financing
statements.

 

10.            Miscellaneous.
The rights and privileges of Secured Party shall inure to its
successors and assigns. All representations, warranties, covenants
and agreements of Debtor shall bind Debtor and Debtor's successors
and assigns. Unless otherwise defined herein, definitions in the
Uniform Commercial Code apply to words and phrases in this
Agreement. Debtor waives presentment, demand, notice of dishonor,
protest, and extension of time without notice as to any instruments
and chattel paper in the Collateral. Notice mailed to Debtor's
address set forth above, or to Debtor's most recent changed address
on file with Secured Party, at least five (5) days prior to the
related action (or, if the Uniform Commercial Code specifies a
longer period, such longer period prior to the related action),
shall be deemed reasonable. The laws of the State of Maryland shall
govern the rights and obligations of the parties to this Security
Agreement and the interpretation, construction and enforceability
thereof. As used herein, the singular shall include the plural, the
plural shall include the singular, and the use of any gender shall
include all genders. A photographic or other reproduction of this
Security Agreement, or any financing statement signed by Debtor, is
sufficient as a financing statement.

 

 

 

 

IN
WITNESS WHEREOF, the parties have executed this Security Agreement
under seal as of the day and year first above written.

 

WITNESS:                                                        

NEXTGEN
DEALER SOLUTIONS, LLC

 

_________________________________           
By: /s/ Marshall
Chesrown(SEAL)

                                                                                    
Marshall Chesrown, President

 

"Debtor"

 

WITNESS:                                                        

NEXTGEN
DEALER SOLUTIONS, LLC

 

_________________________________           
By: /s/ Kartik
Kakarala  (SEAL)

Kartik
Kakarala, Manager

 

"Secured
Party"

 

 

 

 

EXHIBIT "A"

 

Permitted Encumbrances

 

(a) liens
created hereby or otherwise securing the Note;

 

(b) the
following liens existing on the date hereof and any renewals or
extensions

thereof:                                                                                                                

;

 

(c) liens
(other than liens imposed under ERISA) for taxes, assessments or
governmental charges or levies not yet due or which are being
contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained
on the books of the applicable person in accordance with
GAAP;

 

(d) statutory
or common law liens of landlords (and customary landlords’
liens in leases), carriers, warehousemen, mechanics, materialmen
and suppliers and other liens imposed by law or pursuant to
customary reservations or retentions of title arising in the
ordinary course of business, provided that such liens secure only
amounts not overdue by more than 90 days or, if more than 90 days
overdue, are unfiled and no other action has been taken to enforce
such lien or which are being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance
with GAAP have been established;

 

(e) pledges
or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other
social security legislation, other than any lien imposed by
ERISA;

 

(f) deposits
to secure the performance of bids, trade contracts and leases,
statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary
course of business;

 

(g) easements,
rights-of-way, restrictions and other similar encumbrances
affecting real property which, in the aggregate, are not
substantial in amount, and which do not in any case materially
detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business of
the applicable person;

 

(h) judgment
liens in respect of judgments, the uninsured portion of which, if
any, does not exceed $100,000;

 

(i) liens
securing Senior Debt;

 

(j) leases
or subleases granted to others not interfering in any material
respect with the business of Debtor;

 

(k) any
interest of title of a lessor under, and liens arising from UCC
financing statements (or equivalent filings, registrations or
agreements in foreign jurisdictions) relating to,
leases

 

 

 

 

(l) normal
and customary rights of setoff upon deposits of cash in favor of
banks or other depository institutions;

 

(m) liens
of a collection bank arising under Section 4-210 of the Uniform
Commercial Code on items in the course of collection;

 

(n) liens
of sellers of goods to the Debtor arising under Article 2 of the
Uniform Commercial Code or similar provisions of applicable law in
the ordinary course of business, covering only the goods sold and
securing only the unpaid purchase price for such goods and related
expenses; and

 

(o) liens
existing on property at the time of its acquisition;
provided,
that,
(i) such lien was not created in contemplation of such acquisition,
and (ii) such lien does not encumber any property other than the
property encumbered at the time of such
acquisition.

 

 

 

 

 

 

 

 

 

 

EXHIBIT
“B”

 

PATENT
SECURITY AGREEMENT

 

 

 

 

 

 

 

 

 

PATENT SECURITY AGREEMENT

 

THIS PATENT SECURITY AGREEMENT (the
“Agreement”),
made this 8th day of February, 2017, by and between NEXTGEN PRO,
LLC, a Delaware limited liability company, with an address of 4521
Sharon Road, Suite 370, Charlotte, North Carolina 28211
(“Debtor”),
and NEXTGEN DEALER SOLUTIONS, LLC, a Delaware limited liability
company, with an address of 1431 Greenway Drive, Suite 775, Irving,
Texas 75038 (the “Secured
Party”).

 

WHEREAS, Debtor has executed an Unconditional
Guaranty Agreement dated even date herewith (the
"Guaranty")
in favor of the Secured Party, pursuant to which the Debtor
guaranteed the payment and performance of all obligations of Smart
Server, Inc. under a Subordinated Secured Confessed Judgement
Promissory Note executed in favor of the Secured Party on the date
hereof.

 

WHEREAS, to secure the obligations under the
Guaranty, the Debtor executed and delivered to the Secured Party
that certain Security Agreement dated as of the date hereof (the
“Security
Agreement”).

 

WHEREAS,
under the terms of the Security Agreement, the Debtor granted to
the Secured Party, a security interest in, among other property,
certain intellectual property of the Debtor, and agreed to execute
and deliver this Patent Security Agreement, for recording with
national, federal and state government authorities, including, but
not limited to, the United States Patent and Trademark
Office.

 

NOW
THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Debtor agrees with
the Secured Party as follows:

 

1.            

Grant of
Security. Debtor hereby pledges
and grants to the Secured Party a security interest in and to all
of the right, title and interest of such Debtor in, to and under
the following, wherever located, and whether now existing or
hereafter arising or acquired from time to time (the
“Patent
Collateral”):

 

(a) All
patents and patent applications, including patent application
number 14614160 entitled “Near Field Communication (NFC)
Vehicle Identification System and Process” filed with the
United States Patent and Trademark Office and all registrations,
reissues, divisions, continuations, continuations-in-part,
renewals, extensions and re-examinations thereof and amendments
thereto (the “Patents”);

 

(b) all
rights of any kind whatsoever of such Debtor accruing under any of
the Patents provided by applicable law of any jurisdiction, by
international treaties and conventions and otherwise throughout the
world;

 

 

 

 

(c) any
and all royalties, fees, income, payments and other proceeds now or
hereafter due or payable with respect to any and all of the
Patents; and

 

(d) any
and all claims and causes of action, with respect to any of the
Patents, whether occurring before, on or after the date hereof,
including all rights to and claims for damages, restitution and
injunctive and other legal and equitable relief for past, present
and future infringement, misappropriation, violation, misuse,
breach or default, with the right but no obligation to sue for such
legal and equitable relief and to collect, or otherwise recover,
any such damages.

 

2.             Recordation.
Debtor authorizes the Commissioner for Patents and any other
government officials to record and register this Patent Security
Agreement upon request by the Secured Party.

 

3.             Loan
Documents. This Patent Security
Agreement has been entered into pursuant to and in conjunction with
the Security Agreement, which is hereby incorporated by reference.
The provisions of the Security Agreement, including the provisions
in Section 8 for subordination, shall supersede and control over
any conflicting or inconsistent provision herein. The rights and
remedies of the Secured Party with respect to the Patent Collateral
are as provided by the Security Agreement, and nothing in this
Patent Security Agreement shall be deemed to limit such rights and
remedies.

 

4.             Execution
in Counterparts. This Patent
Security Agreement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed
counterpart of a signature page to this Patent Security Agreement
by facsimile or in electronic (i.e., “pdf” or
“tif” format) shall be effective as delivery of a
manually executed counterpart of this Patent Security
Agreement.

 

5.             Successors
and Assigns. This Patent
Security Agreement will be binding on and shall inure to the
benefit of the parties hereto and their respective successors and
assigns.

 

6.             Governing
Law. This Patent Security
Agreement and any claim, controversy, dispute or cause of action
(whether in contract or tort or otherwise) based upon, arising out
of or relating to this Patent Security Agreement and the
transactions contemplated hereby and thereby shall be governed by,
and construed in accordance with, the laws of the United States and
the State of Maryland, without giving effect to any choice or
conflict of law provision or rule (whether of the State of Maryland
or any other jurisdiction).

 

[Intentionally Left Blank—Signature Page
Follows]

 

 

 

 

IN
WITNESS WHEREOF, Debtor has caused this Patent Security Agreement
to be duly executed and delivered by its officer thereunto duly
authorized as of the date first above written.

 

NEXTGEN
PRO, LLC

 

 

 

 

                                                                             By:
/s/ Marshall
Chesrown 

Name:
Marshall
Chesrown

Title: President

Address
for Notices:

4521
Sharon Road

Suite
370

Charlotte,
North Carolina 28211

Attention:
Steven Berard

 

 

AGREED
TO AND ACCEPTED:

 

NEXTGEN
DEALER SOLUTIONS. LLC

 

By: /s/ Kartik
Kakarala

Name:
Kartik Kakarala

Title:
President

 

Address
for Notices:

1431
Greenway Drive

Suite
775

Irving,
Texas 75038

Attention:
Kartik Kakarala

 

 

 

 

EXHIBIT “C”

 

TRADEMARK SECURITY AGREEMENT

 

 

 

 

 

 

 

 

 

 

TRADEMARK SECURITY AGREEMENT

 

THIS TRADEMARK SECURITY AGREEMENT (the
“Agreement”),
made this 8th day of February, 2017, by and between NEXTGEN PRO,
LLC, a Delaware limited liability company, with an address of 4521
Sharon Road, Suite 370, Charlotte, North Carolina 28211
(“Debtor”),
and NEXTGEN DEALER SOLUTIONS, LLC, a Delaware limited liability
company, with an address of 1431 Greenway Drive, Suite 775, Irving,
Texas 75038 (the “Secured
Party”).

 

WHEREAS, Debtor has executed an Unconditional
Guaranty Agreement dated even date herewith (the
"Guaranty")
in favor of the Secured Party, pursuant to which the Debtor
guaranteed the payment and performance of all obligations of Smart
Server, Inc. under a Subordinated Secured Confessed Judgement
Promissory Note executed in favor of the Secured Party on the date
hereof.

 

WHEREAS, to secure the obligations under the Note,
the Debtor executed and delivered to the Secured Party that certain
Security Agreement dated as of the date hereof (the
“Security Agreement”).

 

WHEREAS,
under the terms of the Security Agreement, the Debtor granted to
the Secured Party, a security interest in, among other property,
certain intellectual property of the Debtor, and agreed to execute
and deliver this Trademark Security Agreement, for recording with
national, federal and state government authorities, including, but
not limited to, the United States Patent and Trademark
Office.

 

NOW
THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Debtor agrees with
the Secured Party as follows:

 

1.            

Grant of
Security. Debtor hereby pledges
and grants to the Secured Party a security interest in and to all
of the right, title and interest of such Debtor in, to and under
the following, wherever located, and whether now existing or
hereafter arising or acquired from time to time (the
“Trademark
Collateral”):

	

 

(a)            

All
trademark registrations and applications, including the
trademark

 

registered with the United States Trademark and
Trademark Office, Registration number 4,662,863, together with the
goodwill connected with the use of and symbolized thereby and all
extensions and renewals thereof (the “Trademarks”),
excluding only United States intent-to-use trademark applications
to the extent that and solely during the period in which the grant
of a security interest therein would impair, under applicable
federal law, the registrability of such applications or the
validity or enforceability of registrations issuing from such
applications;

 

 

 

 

(b) all
rights of any kind whatsoever of such Debtor accruing under any of
the Trademarks provided by applicable law of any jurisdiction, by
international treaties and conventions and otherwise throughout the
world;

 

(c) any
and all royalties, fees, income, payments and other proceeds now or
hereafter due or payable with respect to any and all of the
Trademarks; and

 

(d) any
and all claims and causes of action, with respect to any of the
Trademarks, whether occurring before, on or after the date hereof,
including all rights to and claims for damages, restitution and
injunctive and other legal and equitable relief for past, present
and future infringement, dilution, misappropriation, violation,
misuse, breach or default, with the right but no obligation to sue
for such legal and equitable relief and to collect, or otherwise
recover, any such damages.

 

2.             Recordation.
Debtor authorizes the Commissioner for Trademarks and any other
government officials to record and register this Trademark Security
Agreement upon request by the Secured Party.

 

3.             Loan
Documents. This Trademark
Security Agreement has been entered into pursuant to and in
conjunction with the Security Agreement, which is hereby
incorporated by reference. The provisions of the Security
Agreement, including the provisions in Section 8 for subordination,
shall supersede and control over any conflicting or inconsistent
provision herein. The rights and remedies of the Secured Party with
respect to the Trademark Collateral are as provided by the Security
Agreement, and nothing in this Trademark Security Agreement shall
be deemed to limit such rights and remedies.

 

4.             Execution
in Counterparts. This Trademark
Security Agreement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed
counterpart of a signature page to this Trademark Security
Agreement by facsimile or in electronic (i.e., “pdf” or
“tif” format) shall be effective as delivery of a
manually executed counterpart of this Trademark Security
Agreement.

 

5.             Successors
and Assigns. This Trademark
Security Agreement will be binding on and shall inure to the
benefit of the parties hereto and their respective successors and
assigns.

 

6.             Governing
Law. This Trademark Security
Agreement and any claim, controversy, dispute or cause of action
(whether in contract or tort or otherwise) based upon, arising out
of or relating to this Trademark Security Agreement and the
transactions contemplated hereby and thereby shall be governed by,
and construed in accordance with, the laws of the United States and
the State of Maryland, without giving effect to any choice or
conflict of law provision or rule (whether of the State of Maryland
or any other jurisdiction).

 

 

 

 

IN
WITNESS WHEREOF, Debtor has caused this Trademark Security
Agreement to be duly executed and delivered by its officer
thereunto duly authorized as of the date first above
written.

 

NEXTGEN
PRO, LLC

 

 

 

 

                                                                             By:
/s/ Marshall
Chesrown 

Name:
Marshall
Chesrown

Title: President

 

Address
for Notices:

4521
Sharon Road

Suite
370

Charlotte,
North Carolina 28211

Attention:
Steven Berrard

 

AGREED
TO AND ACCEPTED:

 

NEXTGEN
DEALER SOLUTIONS. LLC

 

By: /s/ Kartik
Kakarala

Name:
Kartik Kakarala

Title:
President

 

Address
for Notices:

1431
Greenway Drive

Suite
775

Irving,
Texas 75038

Attention:
Kartik Kakarala

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