Document:

Blueprint

 

 

Exhibit 4.3

 

$38,750,000

RUMBLEON, INC.

6.75% Convertible Senior Notes Due 2025

Form of

Registration Rights Agreement

 

January 14, 2020

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

RumbleOn, Inc., a Nevada corporation (the
“Company”), proposes to issue to
___________________________ and ___________________________, (the
“Investors”) pursuant to the Exchange and Subscription
Agreement dated January 10, 2020, between the Company and the
Initial Holders (the “Exchange and Subscription
Agreement”), as amended
by that certain Joinder and Amendment, dated January 13, 2020, by
and among the Company, the Investors and
___________________________.
(“___________________________” and together with the Investors, each an
“Initial
Holder” and collectively,
the “Initial
Holders”). $38,750,000
aggregate principal amount of its 6.75% Convertible Senior Notes
due 2025 (the “Notes”) upon the terms and subject to the
conditions set forth in the Exchange and Subscription
Agreement.

 

As
an inducement to the Initial Holders to enter into the Exchange and
Subscription Agreement and in satisfaction of a condition to the
obligations of the Initial Holders thereunder, the Company agrees
with the Initial Holders, for the benefit of the Holders (as
defined below), as follows:

 

1.                  

Certain Definitions.

 

Capitalized
terms used but not defined herein shall have the meanings given to
such terms in the Exchange and Subscription Agreement. For purposes
of this Registration Rights Agreement, the following terms shall
have the following meanings:

 

(a) “Additional
Interest” has the meaning
assigned thereto in Section 2(d).

 

1

 

 

 

(b) “Additional
Interest Payment Date”
has the meaning assigned thereto in Section
2(d).

 

(c) “Affiliate”
has the meaning set forth in Rule 405 under the Securities Act,
except as otherwise expressly provided herein.

 

(d) “Agreement”
means this Registration Rights Agreement, as the same may be
amended from time to time pursuant to the terms
hereof.

 

(e) “Automatic
Shelf Registration Statement” has the meaning set forth in Rule 405
under the Securities Act.

 

(f) “Business
Day” means any day that
is not a Saturday, Sunday or other day on which commercial banks in
New York City are authorized or required by law to remain
closed.

 

(g) “Commission”
means the Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular
purpose.

 

(h) “Company”
has the meaning assigned thereto in the first paragraph of this
Agreement.

 

(i) “Deferral
Notice” has the meaning
assigned thereto in Section 3(b).

 

(j) “Deferral
Period” has the meaning
assigned thereto in Section 3(b).

 

(k) “Effective
Period” has the meaning
assigned thereto in Section 2(a).

 

(l) “Exchange
Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

(m) “Exchange
and Subscription Agreement” has the meaning assigned thereto in the
first paragraph of this Agreement”

 

(n) “FINRA”
means the Financial Industry Regulatory Authority,
Inc.

 

(o) “Holder”
means each holder, from time to time, of Registrable Securities
(including the Initial Holders).

 

(p) “Indemnified
Holder” has the meaning
assigned thereto in Section 6(a).

 

(q) “Indenture”
means the Indenture dated as of January 14, 2020 between the
Company and the Trustee, pursuant to which the Notes are being
issued.

 

(r) “Initial
Holders” has the meaning
assigned thereto in the first paragraph of this
Agreement.

 

(s) “Last
Reported Sale Price” has
the meaning assigned to it in the Indenture.

 

(t) “Material
Event” has the meaning
assigned thereto in Section 3(a)(iv).

 

 

2

 

 

 

(u) “Majority
Holders” means, on any
date, the holders of the majority in aggregate amount of the
Registrable Securities; provided that such aggregate amount, with
respect to Notes that are Registrable Securities will be based on
the aggregate principal amount of Notes that are Registrable
Securities, and with respect to Shares that are Registrable
Securities, will be based on the average of the Last Reported Sale
Prices of the Company’s Common Stock for each of five
consecutive trading days ending on a date chosen by the Company in
a reasonable manner to effect the intent of this Agreement
multiplied by the number of such Shares that are Registrable
Securities; provided further that whenever the consent or approval
of the Majority Holders is required hereunder, any Registrable
Securities owned directly or indirectly by the Company or any
Affiliate shall not be counted in determining whether such consent
or approval was given by the Majority Holders.

 

(v) “Notice
and Questionnaire” means
a written notice delivered to the Company containing substantially
the information called for by the Form of Selling Securityholder
Notice and Questionnaire attached as Annex A to this
Agreement.

 

(w) “Notice
Holder” means, on any
date, any Holder that has delivered a properly completed Notice and
Questionnaire to the Company on or prior to such
date.

 

(x) “Notes”
has the meaning assigned thereto in the first paragraph of this
Agreement.

 

(y) “Person”
means a corporation, limited liability company, association,
partnership, organization, business, individual, government or
political subdivision thereof or governmental
agency.

 

(z) “Prospectus”
means the prospectus included in any Shelf Registration Statement
(including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of
an effective registration statement in reliance upon Rule 430A,
430B or 430C under the Securities Act), as amended or supplemented
by any amendment or prospectus supplement, including post-effective
amendments, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such
Prospectus.

 

(aa) “Registrable
Securities” means the
Securities; provided, however,
that such Securities shall not be
Registrable Securities if as of the applicable date of
determination (i) such Securities have ceased to be outstanding;
(ii) in the circumstances contemplated by Section 2(a), a
registration statement registering such Securities under the
Securities Act has been declared or becomes effective and such
Securities have been sold or otherwise transferred or disposed of
by the Holder thereof pursuant to such effective registration
statement; or (iii) Securities that have been transferred or sold
in a transaction in which the Company delivered a new security in
place of the Securities and such new security (x) is not subject to
transfer restrictions under the Securities Act, (y) does not bear a
restrictive legend and (z) is assigned an unrestricted
CUSIP.

 

(bb) “Registration
Default” has the meaning
assigned thereto in Section 2(d).

 

(cc) “Registration
Expenses” has the meaning
assigned thereto in Section 5.

 

(dd) “Rule
144,”
“Rule
144A,”
“Rule
405,”
“Rule
415” and
“Rule
433” mean, in each case,
such rule as promulgated under the Securities
Act.

 

(ee) “Securities”
means the Notes and the Shares.

 

 

3

 

 

 

(ff) “Securities
Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

(gg) “Shares”
means the shares of Class B Common Stock of the Company, par value
$0.001 per share (the “Common Stock”), as of the date hereof (and subject to
Section 14.07 of the Indenture), into which the Notes are
convertible or that have been issued upon any conversion of Notes
into Common Stock of the Company, including any Interest Make-Whole
Payment (as defined in the Indenture).

 

(ii)            

“Shelf
Inspectors” has the
meaning assigned thereto in Section 3(a)(vii).

 

(hh) “Shelf
Registration Statement”
means the shelf registration statement referred to in Section 2(a),
as amended or supplemented by any amendment or supplement,
including post-effective amendments and any additional information
contained in a form of prospectus or prospectus supplement that is
deemed retroactively to be a part of the Shelf Registration
Statement pursuant to Rules 430A, 430B or 430C, and all materials
incorporated by reference or explicitly deemed to be incorporated
by reference in such Shelf Registration Statement, which may be an
Automatic Shelf Registration Statement.

 

(ii) “Special
Counsel” shall have the
meaning assigned thereto in Section 5.

 

(jj) “Trust
Indenture Act” means the
Trust Indenture Act of 1939, as amended, or any successor thereto,
and the rules, regulations and forms promulgated thereunder, all as
the same shall be amended from time to time.

 

(kk) “Trustee”
shall have the meaning assigned such term in the
Indenture.

 

Unless
the context otherwise requires, any reference herein to a
“Section” or “clause” refers to a Section
or clause, as the case may be, of this Agreement, and the words
“herein,” “hereof” and
“hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Section or
other subdivision. Unless the context otherwise requires, any
reference to a statute, rule or regulation refers to the same
(including any successor statute, rule or regulation thereto) as it
may be amended from time to time.

 

2.                 

Registration Under the Securities Act.

 

(a)         The
Company shall file an Automatic Shelf Registration Statement, if
the Company is eligible to do so and has not already done so
(provided such previously filed Automatic Shelf Registration
Statement covers all Holders of Registrable Securities determined
as of the date such subsequent obligation arose), and, if the
Company is not eligible for an Automatic Shelf Registration
Statement, then in lieu of the foregoing the Company shall file a
Shelf Registration Statement for the registration of, and the sale
on a continuous or delayed basis by the Holders of, all of the
Registrable Securities pursuant to Rule 415 or any similar rule
that may be adopted by the Commission, and use its commercially
reasonable efforts to cause the Shelf Registration Statement to
become or be declared effective under the Securities Act on the day
that is 120 days after the date of this Agreement. It being
understood that if there are no Registrable Securities entitled to
be included in the Shelf Registration Statement at such time that
the Company shall have no obligation to file such Shelf
Registration Statement at such time.

 

The Company agrees to use its commercially
reasonable efforts to keep such Shelf Registration Statement
continuously effective, subject to Section 3(b), until the earliest
of (x) the date by which all Registrable Securities have been sold
pursuant to such Shelf Registration Statement; and (y) such date as
each of the Registrable Securities covered by the Shelf
Registration Statement ceases to be a Registrable Security (the
“Effective
Period”).

 

 

4

 

 

 

(b) The
Company further agrees that it shall cause the Shelf Registration
Statement, the related Prospectus and any amendment or supplement
thereto, as of the effective date of the Shelf Registration
Statement, as of the time of sale of any Securities under such
Shelf Registration Statement, and as of the date of any such
amendment or supplement, (i) to comply in all material respects
with the applicable requirements of the Securities Act and (ii) not
to contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order
to make the statements therein (in the case of the Prospectus, in
the light of the circumstances under which they were made) not
misleading, and the Company agrees to furnish to the Holders such
number of copies as such Holders may reasonably request of any
supplement or amendment prior to its being used or promptly
following its filing with the Commission; provided, however,
that the Company shall have no
obligation to deliver to Holders copies of any amendment consisting
exclusively of an Exchange Act report or other Exchange Act filing
otherwise publicly available on the Commission’s Edgar
database. If the Shelf Registration Statement, as amended or
supplemented from time to time, ceases to be effective for any
reason at any time during the Effective Period (other than because
all Registrable Securities registered thereunder shall have been
sold pursuant thereto or shall have otherwise ceased to be
Registrable Securities), the Company shall use its commercially
reasonable efforts to obtain the prompt withdrawal of any order
suspending the effectiveness thereof.

 

 

(c) Each
Holder agrees that if such Holder wishes to sell Registrable
Securities pursuant to the Shelf Registration Statement and related
Prospectus, it will do so only in accordance with this Section 2(c)
and Section 3(c) and Section 4 hereof. From and after the date the
Shelf Registration Statement is initially effective and until the
tenth (10th)
Business Day prior to the expiration of the Effective Period, the
Company shall, as promptly as is reasonably practicable after the
date a Notice and Questionnaire is delivered by a Notice Holder,
and in any event within (x) ten (10) Business Days after the date
such Notice and Questionnaire is received by the Company, (y) if a
Notice and Questionnaire is so received during a Deferral Period,
ten (10) Business Days after the expiration of such Deferral Period
or (z) if a Notice and Questionnaire is received prior to a
Deferral Period, but a Deferral Period occurs prior to ten (10)
Business Days after such receipt, ten (10) Business Days after the
expiration of such Deferral Period,

 

(i) if
required by applicable law, file with the Commission a
post-effective amendment to the Shelf Registration Statement or
prepare and, if required by applicable law, file a supplement to
the related Prospectus or a supplement or amendment to any document
incorporated therein by reference or file any other required
document so that the Holder delivering such Notice and
Questionnaire is named as a selling security holder in the Shelf
Registration Statement and the related Prospectus in such a manner
as to permit such Holder to deliver such Prospectus to purchasers
of the Registrable Securities in accordance with applicable law
and, if the Company shall file a post-effective amendment to the
Shelf Registration Statement and such amendment is not
automatically effective, use its commercially reasonable efforts to
cause such post-effective amendment to be declared or to otherwise
become effective under the Securities Act as promptly as is
reasonably practicable;

 

(ii) provide
such Holder with as many copies of any documents filed pursuant to
Section 2(c)(i) as such Holder may reasonably request in connection
with the Securities covered by such Holder’s Notice and
Questionnaire; and

 

 

5

 

 

 

(iii) notify
such Holder as promptly as reasonably practicable after the
effectiveness under the Securities Act of any post-effective
amendment filed pursuant to Section 2(c)(i);

 

provided that if such Notice
and Questionnaire is delivered during a Deferral Period, the
Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in this Section
2(c) above upon expiration of the Deferral Period in accordance
with Section 3(b). Notwithstanding anything contained herein to the
contrary, the Company shall be under no obligation to name any
Holder that is not a Notice Holder as a selling securityholder in
any Shelf Registration Statement or related Prospectus or
prospectus supplement; provided, however,
that any Holder that becomes a Notice
Holder pursuant to the provisions of this Section 2(c) (whether or
not such Holder was a Notice Holder at the time the Shelf
Registration Statement was declared or otherwise became effective)
shall be named as a selling securityholder in the Shelf
Registration Statement or related Prospectus in accordance with the
requirements of this Section 2(c). Notwithstanding the forgoing, in
no event shall the Company be required to file more than one
post-effective amendment to the Shelf Registration Statement
pursuant to Section 2(c)(i) during any 45-day
period.

 

(d)          If
any of the following events (any such event a
“Registration
Default”) shall occur,
then additional interest (the “Additional
Interest”) shall become
payable by the Company to Holders in respect of the Notes as
follows:

 

(i) if
on the day that is 120 days after the date of this Agreement,
Registrable Securities are held by any Person other than the
Company and the Shelf Registration Statement has not been filed
with and declared effective by the Commission by such date (other
than pursuant to Section 3(b) hereof), and the Company does not
file and have declared effective a Shelf Registration Statement
within five (5) Business Days, then, commencing on the day
following the Registration Default, Additional Interest shall
accrue on the principal amount of the outstanding Notes that are
Registrable Securities at a rate of 0.50% per annum;

 

(ii) [Reserved];

 

(iii) if
the Shelf Registration Statement has become or been declared
effective but such Shelf Registration Statement ceases to be
effective or the prospectus contained therein ceases to be usable
in connection with the resales of Registrable Securities at any
time during the Effective Period (other than pursuant to Section
3(b) hereof), and the Company does not cure the Registration
Default within five (5) Business Days by a post-effective amendment
or a report filed pursuant to the Exchange Act, then, commencing on
the day such Shelf Registration Statement ceases to be effective,
Additional Interest shall accrue on the principal amount of the
outstanding Notes that are Registrable Securities at a rate of
0.50% per annum;

 

(iv) if
the aggregate duration of Deferral Periods in any period exceeds
the number of days permitted in respect of such period pursuant to
Section 3(b) hereof, then, commencing on the day the aggregate
duration of Deferral Periods in any period exceeds the number of
days permitted in respect of such period, Additional Interest shall
accrue on the principal amount of the outstanding Notes that are
Registrable Securities at a rate of 0.50% per annum;

 

provided, however, that the
Additional Interest rate on the Notes shall not exceed in the
aggregate 0.50% per annum and shall not be payable under more than
one clause above for any given period of time; provided
further, however, that
Additional Interest on the Notes that are Registrable Securities as
a result of clauses (i) through (iv) above, shall cease to accrue
upon the earlier of (1) the filing and effectiveness of the Shelf
Registration Statement (in the case of clause (i) above), (2) the
effectiveness of the Shelf Registration Statement which had ceased
to remain effective (in the case of clause (iii) above), (3) the
termination of the Deferral Period that caused the limit on the
aggregate duration of Deferral Periods in a period set forth in
Section 3(b) to be exceeded (in the case of clause (iv) above), (4)
the date the Notes cease to be Registrable Securities or (5) the
date the Notes cease to be outstanding (as determined in accordance
with the terms of the Indenture).

 

 

6

 

 

 

 

 

Additional Interest on the Notes, if any, will be
payable in arrears in cash on January 1 and July 1 of each year
(the “Additional Interest Payment
Date”) to holders of
record of outstanding Notes that are Registrable Securities at the
close of business on December 15 or June 15 (whether or not a
Business Day), as the case may be, immediately preceding the
relevant Additional Interest Payment Date; provided that (x) any accrued and unpaid Additional
Interest with respect to any Notes or portion thereof submitted for
conversion shall be paid in the manner and to the extent provided
for the payment of interest in Section 14.02(h) of the Indenture
and (y) that any accrued and unpaid Additional Interest with
respect to any Notes or portion thereof submitted for repurchase on
a Fundamental Change Repurchase Date (as defined in the Indenture),
and not withdrawn in compliance with Section 15.03 of the
Indenture, shall be paid in the manner provided for the payment of
interest in Section 15.02(a) of the Indenture. Following the cure
of all Registration Defaults requiring the payment of Additional
Interest to the Holders of Notes that are Registrable Securities
pursuant to this Section 2(d), the accrual of Additional Interest
will cease (without in any way limiting the effect of any
subsequent Registration Default requiring the payment of Additional
Interest). Additional Interest on the Notes, if any, will accrue
beginning on the date provided for in clauses 2(d)(i) through (iv)
above, as applicable, to, but excluding, the date on which all
Registration Defaults have been cured. If a Holder converts some or
all of the Notes into Shares, such Holder will not be entitled to
receive Additional Interest on such Shares.

 

The
Company shall notify the Trustee as promptly as reasonably
practicable upon the happening of each and every Registration
Default. The Trustee shall be entitled, on behalf of Holders, to
seek any available remedy for the enforcement of this Agreement,
including for the payment of any Additional Interest if any becomes
due.

 

Notwithstanding
the foregoing, the parties agree that the sole monetary damages
payable for a violation of the terms of this Agreement with respect
to which additional monetary amounts are expressly provided shall
be as set forth in this Section 2(d). Nothing shall preclude a
Notice Holder or Holder from pursuing or obtaining specific
performance or other equitable relief with respect to this
Agreement.

 

3.                  

Registration
Procedures.

 

The
following provisions shall apply to the Shelf Registration
Statement filed pursuant to Section 2:

 

(a)            

The
Company shall:

 

(i) notify
the Holders of Registrable Securities at least 20 (twenty) Business
Days before filing any Shelf Registration Statement pursuant to
Section 2 of the Company’s intent to file such Shelf
Registration Statement and seeking a determination from such Holder
as to whether such Holder elects to have its Registrable Securities
included in such Shelf Registration Statement;

 

(ii) before
filing any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto with the Commission, furnish to
the Initial Holders copies of all such documents proposed to be
filed and use its commercially reasonable efforts to reflect in
each such document when so filed with the Commission such comments
as such Initial Holders reasonably shall propose within three (3)
Business Days of the delivery of such copies to the Holders;
provided, however, that the Company shall be permitted to file
prospectus supplements or post-effective amendments to reflect
additional selling securityholders without prior review of the
Initial Holders;

 

 

7

 

 

 

(iii) use
its commercially reasonable efforts to prepare and file with the
Commission such amendments and post-effective amendments to the
Shelf Registration Statement and file with the Commission any other
required document as may be necessary to keep such Shelf
Registration Statement continuously effective until the expiration
of the Effective Period; cause the related Prospectus to be
supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar
provisions then in force) under the Securities Act; and comply with
the provisions of the Securities Act applicable to it with respect
to the disposition of all Securities covered by such Shelf
Registration Statement during the Effective Period in accordance
with the intended methods of disposition by the sellers thereof set
forth in such Shelf Registration Statement as so amended or such
Prospectus as so supplemented;

 

(iv) as
promptly as reasonably practicable, notify the Notice Holders (A)
when such Shelf Registration Statement or the Prospectus included
therein or any amendment or supplement to the Prospectus or
post-effective amendment has been filed with the Commission, and,
with respect to such Shelf Registration Statement or any
post-effective amendment that is not an Automatic Shelf
Registration Statement, when the same is declared or has become
effective, provided, that the availability of such Shelf Registration
Statement or any Prospectus or post-effective amendment on the
Commission’s EDGAR database shall be considered notice for
the purpose of this Section 3(a)(iv),
(B)
of any request (but not the nature or
details regarding such request), following the effectiveness of the
Shelf Registration Statement, by the Commission or any other
federal or state governmental authority for amendments or
supplements to the Shelf Registration Statement or related
Prospectus (other than any such request relating to a review of the
Company’s Exchange Act filings), (C) of the issuance by the
Commission of any stop order suspending the effectiveness of such
Shelf Registration Statement or the initiation or written threat of
any proceedings for that purpose, (D) of the receipt by the Company
of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or written threat of any proceeding
for such purpose, (E) of the occurrence of any event or the
existence of any fact (but not the nature of or details concerning
such event or fact) (a “Material
Event”) as a result of
which any Shelf Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were
made, not misleading; provided, however,
that no notice by the Company shall be
required pursuant to this clause (E) in the event that the Company
either promptly files a prospectus supplement, amendment to the
Shelf Registration Statement to update the Prospectus or a Form 8-K
or other appropriate Exchange Act report that is incorporated by
reference into the Shelf Registration Statement, which, in either
case, contains the requisite information with respect to such
Material Event that results in such Shelf Registration Statement or
Prospectus, as the case may be, no longer containing any untrue
statement of material fact or omitting to state a material fact
required to be stated therein or necessary to make the statements
contained therein (in the case of the Prospectus, in light of the
circumstances under which they were made) not misleading, (F) of
the determination by the Company that a post-effective amendment to
the Shelf Registration Statement (other than for the purpose of
naming a Notice Holder as a selling securityholder therein) will be
filed with the Commission, which notice may, at the discretion of
the Company (or as required pursuant to Section 3(b)), state that
it constitutes a Deferral Notice, in which event the provisions of
Section 3(b) shall apply or (G) at any time when a Prospectus is
required (or but for the exemption contained in Rule 172 would be
required) to be delivered under the Securities Act, that the Shelf
Registration Statement, Prospectus, Prospectus amendment or
supplement or post-effective amendment does not conform in all
material respects to the applicable requirements of the Securities
Act and the rules and regulations of the Commission
thereunder;

 

 

8

 

 

 

(v) prior
to any public offering of the Registrable Securities pursuant to
the Shelf Registration Statement, use its commercially reasonable
efforts to register or qualify, or cooperate with the Notice
Holders included therein and their respective counsel in connection
with the registration or qualification of Securities for offer and
sale under the securities or blue sky laws of such jurisdictions
within the United States as any such Notice Holders reasonably
request in writing and do any and all other acts or things
reasonably necessary or advisable to enable the offer and sale in
such jurisdictions of the Securities covered by the Shelf
Registration Statement; prior to any public offering of the
Registrable Securities pursuant to the Shelf Registration
Statement, use its commercially reasonable efforts to keep each
such registration or qualification (or exemption therefrom)
effective during the Effective Period in connection with such
Notice Holder’s offer and sale of Registrable Securities
pursuant to such registration or qualification (or exemption
therefrom) and use its commercially reasonable efforts to provide
for the disposition in such jurisdictions of such Registrable
Securities in the manner set forth in the Shelf Registration
Statement and the related Prospectus; provided that for purposes of this Section 3(a)(v), the
Company will not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or to take any
action which would subject it to general service of process or to
taxation in any such jurisdiction where it is not then so
subject;

 

(vi) use
its commercially reasonable efforts to lift any suspension of the
qualification of any of the Registrable Securities for sale in any
jurisdiction in which they have been qualified for sale, in each
case at the earliest practicable date;

 

(vii) upon
reasonable written notice, and only in connection with a
disposition of Securities under the Shelf Registration Statement,
for a reasonable period prior to the filing of the Shelf
Registration Statement, and throughout the Effective Period (but
not during a Deferral Period), (i) make reasonably available for
inspection by a representative of, and Special Counsel acting for,
the Majority Holders and any underwriter (and its counsel)
participating in any disposition of Securities pursuant to such
Shelf Registration Statement (collectively, the
“Shelf
Inspectors”), all
relevant and material financial and other records and pertinent
corporate documents of the Company and its subsidiaries and (ii)
use commercially reasonable efforts to have its officers,
employees, accountants and counsel make available all relevant
material information reasonably requested by such representative,
Special Counsel or any such underwriter in connection with such
Shelf Registration Statement, in each case as is reasonable and
customary for similar “due diligence” examinations of
issuers of similar size and business of the Company;
provided, however, that such persons shall first agree with the
Company that any information that is reasonably designated by the
Company as confidential at the time of delivery shall be kept
confidential by such persons and shall be used solely for the
purposes of exercising rights under this Agreement and satisfying
“due diligence” obligations under the Securities Act
and such person shall not engage in trading any securities of the
Company until such material non-public information becomes properly
publicly available, unless (w) disclosure of such information is
required by court or administrative order or is necessary to
respond to inquiries of regulatory authorities, (x) disclosure of
such information is required by law, including any disclosure
requirements pursuant to federal securities laws in connection with
the filing of any Shelf Registration Statement or the use of any
Prospectus or prospectus supplement referred to in this Agreement
upon a customary opinion of counsel for such persons delivered and
reasonably satisfactory to the Company, (y) such information
becomes generally available to the public other than as a result of
a disclosure or failure to safeguard by any such person, or (z)
such information becomes available to any such person from a source
(other than the Company, its Affiliates, officers, employees,
accountants, agents and counsel) and such source is not bound by a
confidentiality agreement; provided, further, that with respect to any Special Counsel engaged
by the Majority Holders, the foregoing inspection and information
gathering shall be coordinated by one counsel designated by the
Majority Holders;

 

 

9

 

 

 

(viii) if
requested by the Majority Holders, their Special Counsel or the
managing underwriters (if any) in connection with an underwritten
offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use its commercially reasonable efforts to
cause (i) its counsel to deliver an opinion relating to the Shelf
Registration Statement and the Securities in a customary form, (ii)
its officers to execute and deliver all customary documents and
certificates reasonably requested by the Majority Holders, their
Special Counsel or the managing underwriters (if any) and (iii) its
registered independent public accounting firm to provide a comfort
letter or letters relating to the Shelf Registration Statement in a
reasonable and customary form, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement
of Auditing Standards No. 72 or any successor statement thereto,
covering matters of the type customarily covered in comfort letters
in connection with secondary underwritten offerings;
provided,
that in no event shall the Company be
required to furnish such opinions, documents or comfort letters
pursuant to the provisions of this Section in more than three
underwritten offerings.

 

(ix) if
reasonably requested in writing by any Initial Holder or any Notice
Holder as a result of the “due diligence” examination
referred to in Section 3(a)(vii) above, promptly incorporate in a
prospectus supplement or post-effective amendment to the Shelf
Registration Statement such information as such Initial Holder or
such Notice Holder shall, on the basis of a written opinion of
Special Counsel, determine to be required to be included therein by
applicable law and make any required filings of such prospectus
supplement or such post-effective amendment; provided, that the Company shall not be required to take
any actions under this Section 3(a)(ix) that are not, in the
reasonable opinion of counsel for the Company, in compliance with
applicable law; provided,
further, that the Company shall
have no liability for Additional Interest under this Agreement if
it reasonably objects to making such additional filing and if such
additional filing would otherwise cause the Company to pay
Additional Interest.

 

(x) as
promptly as practicable furnish to each Notice Holder and the
Initial Holders, upon their request and without charge, at least
one (1) conformed copy of the Shelf Registration Statement and any
amendments thereto, including financial statements but excluding
schedules, all documents incorporated or deemed to be incorporated
therein by reference and all exhibits; provided, however,
that the Company shall have no
obligation to deliver to Notice Holders or the Initial Holders a
copy of any amendment publicly available on the Company’s
website or in the Commission’s EDGAR
database;

 

(xi) during
the Effective Period, deliver to each Notice Holder in connection
with any sale of Registrable Securities pursuant to the Shelf
Registration Statement, upon their request and without charge, as
many copies of the Prospectus relating to such Registrable
Securities (including each preliminary prospectus) and any
amendment or supplement thereto as such Notice Holder may
reasonably request; and the Company hereby consents (except during
such periods that a Deferral Notice is outstanding and has not been
revoked) to the use of such Prospectus or each amendment or
supplement thereto by each Notice Holder in connection with any
offering and sale of the Registrable Securities covered by such
Prospectus or any amendment or supplement thereto in the manner set
forth therein and subject to applicable law; and

 

(xii) during
the Effective Period, cooperate with the Notice Holders to
facilitate the timely preparation and delivery of certificates
representing Securities to be sold pursuant to the Shelf
Registration Statement free of any restrictive legends, unless
required by applicable law, and in such denominations as permitted
by the Indenture and registered in such names as the Holders
thereof may request in writing at least one (1) Business Days prior
to sales of Securities pursuant to such Shelf Registration
Statement; provided, that nothing herein shall require the Company to
deliver certificated Securities to any beneficial holder of
Securities, except as required by the Indenture;
provided
further however, such Notice
Holders shall pay any such tax that is due because such Notice
Holder requests any shares of Common Stock to be issued in a name
other than the holder’s name as provided for in Sections
2.05(a) and 14.02(e) of the Indenture.

 

 

10

 

 

 

(b)          Upon
(A) the issuance by the Commission of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation
of proceedings with respect to the Shelf Registration Statement
under Section 8(d) or 8(e) of the Securities Act, (B) the
occurrence of any event or the existence of any Material Event as a
result of which the Shelf Registration Statement shall contain any
untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the
statements therein not misleading, or any Prospectus shall contain
any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under
which they were made, not misleading, or (C) the occurrence or
existence of any corporate development or business reason that, in
the sole discretion of the Company, makes it appropriate to suspend
the availability of the Shelf Registration Statement and the
related Prospectus, including, without limitation, the acquisition
of assets, pending corporate developments, public filings with
Commission and similar events, the Company will (i) in the case of
clause (B) above, subject to the second sentence of this provision,
use its commercially reasonable efforts to prepare and file an
amendment to such Shelf Registration Statement or a supplement to
the related Prospectus or any document incorporated therein by
reference or file any other required document that would be
incorporated by reference into such Shelf Registration Statement
and Prospectus so that (1) such Shelf Registration Statement does
not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and (2) such
Prospectus does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, as
thereafter delivered or made available to the purchasers of the
Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to the Shelf Registration Statement,
subject to the second sentence of this provision, use its
commercially reasonable efforts to cause it to be declared
effective or otherwise become effective and (ii) give notice to the
Notice Holders that the availability of the Shelf Registration
Statement is suspended (a “Deferral
Notice”). The Company
will use its commercially reasonable efforts to ensure that the use
of the Prospectus may be resumed (x) in the case of clause (A)
above, as promptly as reasonably practicable, (y) in the case of
clause (B) above, as soon as, in the sole judgment of the Company,
public disclosure of such Material Event would not be prejudicial
to or contrary to the interests of the Company or, if necessary to
avoid unreasonable burden or expense, as soon as practicable
thereafter and (z) in the case of clause (C) above, as soon as, in
the sole discretion of the Company, such suspension is no longer
appropriate; provided that the period during which the availability of
the Shelf Registration Statement and any Prospectus is suspended
(the “Deferral
Period”), without the
Company incurring any obligation to pay Additional Interest
pursuant to Section 2(d), shall not exceed forty-five (45) days in
the aggregate in any ninety (90) day period or an aggregate of
ninety (90) days in any 12-month period.

 

(c)           Each
Holder agrees that upon receipt of any Deferral Notice from the
Company, such Holder shall forthwith discontinue (and cause any
placement or sales agent or underwriters acting on their behalf to
discontinue) the disposition of Registrable Securities pursuant to
the Shelf Registration Statement until such Holder (i) shall have
received copies of such amended or supplemented Prospectus and, if
so directed by the Company, such Holder shall deliver to the
Company (at the Company’s expense) all copies, other than
permanent file copies, then in such Holder’s possession of
the Prospectus covering such Registrable Securities at the time of
receipt of such notice or (ii) shall have received notice from the
Company that the disposition of Registrable Securities pursuant to
the Shelf Registration may continue. Each Holder shall keep
confidential any communication received by it from the Company
regarding the suspension of the use of the Prospectus, except as
required by applicable law.

 

 

11

 

 

 

(d) The
Company may require each Holder as to which any registration
pursuant to Section 2(a) is being effected to furnish to the
Company such information regarding such Holder and such
Holder’s intended method of distribution of such Registrable
Securities as the Company may from time to time reasonably request
in writing, but only to the extent such information is required to
comply with the Securities Act.

 

(e) The
Company shall provide a CUSIP number for all Registrable Securities
covered by the Shelf Registration Statement not later than the
effective date of such Shelf Registration Statement and provide the
Trustee and the transfer agent for the Shares with printed
certificates for the Registrable Securities that are in a form
eligible for deposit with The Depository Trust
Company.

 

(f) The
Company shall use commercially reasonable efforts to provide such
information as is required for any filings required to be made with
FINRA.

 

(g) Until
the expiration of the Effective Period, the Company will not
resell, and will use its commercially reasonable efforts to prevent
its “affiliates” (as defined in Rule 144) from
reselling, any of the Notes that have been reacquired by any of
them except pursuant to an effective registration statement under
the Securities Act.

 

(h) The
Company shall cause the Indenture to be qualified under the Trust
Indenture Act in a the manner prescribed by the Trust Indenture Act
and shall enter into any necessary supplemental indentures in
connection therewith.

 

(i) The
Company shall enter into such customary agreements and take such
other reasonable and lawful actions in connection therewith
(including those reasonably requested by the Majority Holders) in
order to expedite or facilitate disposition of such Registrable
Securities.

 

(j) The
Company shall cause the Shares covered by the Shelf Registration
Statement to be listed or quoted, as the case may be, on each
securities exchange or automated quotation system on which the
Common Stock is then listed or quoted.

 

4.                  

Holders’
Obligations.

 

(a) In
addition to the other limitations and requirements described
herein, each Holder agrees, by acquisition of the Registrable
Securities, that no Holder shall be entitled to sell any of such
Registrable Securities pursuant to the Shelf Registration Statement
or to receive a Prospectus relating thereto, unless such Holder has
furnished the Company with a completed Notice and Questionnaire as
required pursuant to Section 2(c) hereof (including the information
required to be included in such Notice and Questionnaire) and the
information set forth in the next sentence. Each Notice Holder
agrees to notify the Company as promptly as practicable of any
inaccuracy or change in information previously furnished by such
Notice Holder to the Company or of the occurrence of any event in
either case as a result of which any Prospectus relating to such
registration contains or would contain an untrue statement of a
material fact regarding such Notice Holder or such Notice
Holder’s intended method of disposition of such Registrable
Securities or omits to state any material fact regarding such
Notice Holder or such Notice Holder’s intended method of
disposition of such Registrable Securities necessary to make the
statements therein, in light of circumstances in which they were
made, not misleading, and promptly to furnish to the Company (i)
any additional information required to correct and update any
previously furnished information or required so that such
Prospectus shall not contain, with respect to such Notice Holder or
the disposition of such Registrable Securities, an untrue statement
of a material fact or omit to state a material fact necessary to
make the statements therein, in light of the circumstances in which
they were made, not misleading and (ii) any other information
regarding such Notice Holder and the distribution of such
Registrable Securities as may be required to be disclosed in the
Shelf Registration Statement under applicable law or pursuant to
Commission comments. Each Holder further agrees not to sell any
Registrable Securities pursuant to the Shelf Registration Statement
without delivering, causing to be delivered, or, if permitted by
applicable law, making available, a Prospectus to the purchaser
thereof and, following termination of the Effective Period, to
notify the Company, within ten (10) Business Days of a request by
the Company, of the amount of Registrable Securities sold pursuant
to the Shelf Registration Statement and, in the absence of a
response, the Company may assume that all of the Holder’s
Registrable Securities were so sold in compliance with applicable
law and this Agreement unless and until the Company is notified
otherwise.

 

 

12

 

 

 

(b) Any
sale of any Registrable Securities by any Holder shall constitute a
representation and warranty by such Holder that the information
relating to such Holder and its plan of distribution is as set
forth in the Prospectus delivered by such Holder in connection with
such disposition, that such Prospectus does not as of the time of
such sale contain any untrue statement of a material fact relating
to or provided by such Holder or its plan of distribution and that
such Prospectus does not as of the time of such sale omit to state
any material fact relating to or provided by such Holder or its
plan of distribution necessary to make the statements in such
Prospectus, in the light of the circumstances under which they were
made, not misleading. Each Holder further agrees that such Holder
will not make any offer relating to the Registrable Securities that
would constitute an “issuer free writing prospectus”
(as defined in Rule 433) or that would otherwise constitute a
“free writing prospectus” (as defined in Rule 405)
required to be filed by the Company with the Commission or retained
by the Company under Rule 433 of the Securities Act, unless it has
obtained the prior written consent of the Company.

 

(c) The
Holders shall not offer Registrable Securities under the Shelf
Registration Statement in an underwritten offering without the
Company’s prior written consent. Any underwritten offering
agreed to by the Company shall be on terms and conditions agreed to
by the Company in connection with such offering. The Company shall
not be required to undertake more than three underwritten offerings
pursuant to this Agreement.

 

5. Registration
Expenses.

 

The Company agrees to bear and to pay or cause to
be paid promptly after request being made therefor all fees and
expenses incident to the Company’s performance of or
compliance with this Agreement, including, but not limited to, (a)
all Commission and any FINRA registration and filing fees and
expenses, (b) all fees and expenses in connection with the
qualification of the Securities for offering and sale under the
state securities and blue sky laws referred to in Section 3(a)(v)
hereof, including reasonable fees and disbursements of one counsel
for the placement agent or underwriters, if any, in connection with
such qualifications, (c) all expenses relating to the preparation,
printing, distribution and reproduction of the Shelf Registration
Statement, the related Prospectus, each amendment or supplement to
each of the foregoing, the certificates representing the Securities
and all other documents relating hereto, (d) fees and expenses of
the Trustee under the Indenture, any escrow agent or custodian, and
of the registrar and transfer agent for the Shares, (e) in
connection with an underwritten offering, fees, disbursements and
expenses of counsel and the registered independent public
accounting firm of the Company (including the expenses of any
opinions or “cold comfort” letters required by or
incident to such performance and compliance) and (f) reasonable
fees, disbursements and expenses of one counsel for all Holders
retained in connection with the Shelf Registration Statement, as
selected by the Company (unless reasonably objected to by the
Majority Holders, in which case the Majority Holders shall select
such counsel for the Holders) (“Special
Counsel”), and fees,
expenses and disbursements of any other Persons, including special
experts, retained by the Company in connection with such
registration (collectively, the “Registration
Expenses”). To the extent
that any reasonable and proper Registration Expenses are incurred,
assumed or paid by any Holder or any underwriter or placement agent
therefor, the Company shall reimburse such Person for the full
amount of the Registration Expenses so incurred, assumed or paid
promptly after receipt of a documented request therefor.
Notwithstanding the foregoing, the Holders of the Registrable
Securities being registered shall pay all underwriting discounts
and commissions and placement agent fees and commissions
attributable to the sale of such Registrable Securities and the
fees and disbursements of any counsel or other advisors or experts
retained by such Holders (severally or jointly), other than the
Special Counsel and experts specifically referred to
above.

 

 

13

 

 

 

6. Indemnification.

 

(a)           The
Company shall indemnify and hold harmless each Notice Holder
(including, without limitation, the Initial Holders), its
Affiliates, their respective officers, directors, employees,
representatives and agents, and each Person, if any, who controls
such Notice Holder within the meaning of the Securities Act or the
Exchange Act (collectively referred to for purposes of this Section
6 and Section 7 as an “Indemnified
Holder”) from and against
any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, without limitation, any loss,
claim, damage, liability or action relating to purchases and sales
of Registrable Securities), to which that Indemnified Holder may
become subject, whether commenced or threatened, under the
Securities Act, the Exchange Act, any other federal or state
statutory law or regulation, at common law or otherwise, insofar as
such loss, claim, damage, liability or action arises out of, or is
based upon, (i) any untrue statement or alleged untrue statement of
a material fact contained in any such Shelf Registration Statement
or any Prospectus forming part thereof, or (ii) the omission or
alleged omission to state therein a material fact required to be
stated therein or necessary in order to make the statements therein
(in the case of any Prospectus, in the light of the circumstances
under which they were made) not misleading, and shall reimburse
each Indemnified Holder promptly upon demand for any legal or other
expenses reasonably incurred by that Indemnified Holder in
connection with investigating or defending or preparing to defend
against or appearing as a third party witness in connection with
any such loss, claim, damage, liability or action as such expenses
are incurred; provided, however,
that the Company shall not be liable
in any such case to the extent that any such loss, claim, damage,
liability or action arises out of, or is based upon, an untrue
statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in
conformity with any information provided by such Indemnified Holder
in writing to the Company expressly for use therein including its
Notice and Questionnaire. This indemnity agreement shall be in
addition to any liability that the Company may otherwise
have.

 

(b)           Each
Notice Holder (including, without limitation, the Initial Holders)
shall indemnify and hold harmless the Company, its Affiliates,
their respective officers, directors, employees, representatives
and agents, and each Person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act
(collectively referred to for purposes of this Section 6(b) and
Section 7 as the Company), from and against any loss, claim, damage
or liability, joint or several, or any action in respect thereof,
to which the Company may become subject, whether commenced or
threatened, under the Securities Act, the Exchange Act, any other
federal or state statutory law or regulation, at common law or
otherwise, insofar as such loss, claim, damage, liability or action
arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such
Shelf Registration Statement or any Prospectus forming part
thereof, or (ii) the omission or alleged omission to state therein
a material fact required to be stated therein or necessary in order
to make the statements therein (in the case of any Prospectus, in
the light of the circumstances under which they were made) not
misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with any
information furnished to the Company in writing by such Notice
Holder expressly for use therein including its Notice and
Questionnaire, and shall reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection
with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such
loss, claim, damage, liability or action as such expenses are
incurred; provided, however,
that no such Notice Holder shall be
liable for any indemnity claims hereunder in excess of the amount
of net proceeds received by such Notice Holder from the sale of
Registrable Securities pursuant to such Shelf Registration
Statement. This indemnity agreement will be in addition to any
liability which any such Notice Holder may otherwise
have.

 

 

 

14

 

 

 

(c)           Promptly
after receipt by an indemnified party under this Section 6 of
notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party pursuant to Section 6(a) or
6(b), notify the indemnifying party in writing of the claim or the
commencement of that action; provided, however,
that the failure to notify the
indemnifying party shall not relieve it from any liability that it
may have under this Section 6 except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights
or defenses) by such failure; and provided, further,
that the failure to notify the
indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under this Section
6. If any such claim or action shall be brought against an
indemnified party, and it shall notify the indemnifying party
thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense
thereof with counsel reasonably satisfactory to the indemnified
party. After notice from the indemnifying party to the indemnified
party of its election to assume the defense of such claim or
action, the indemnifying party shall not be liable to the
indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by the indemnified party in
connection with the defense thereof other than the reasonable costs
of investigation; provided, however,
that an indemnified party shall have
the right to employ its own counsel in any such action, but the
fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party
unless (1) the employment of counsel by the indemnified party has
been authorized in writing by the indemnifying party, (2) the
indemnified party has reasonably concluded (based upon advice of
counsel to the indemnified party) that there may be legal defenses
available to it or other indemnified parties that are different
from or in addition to those available to the indemnifying party,
(3) a conflict or potential conflict exists (based upon advice of
counsel to the indemnified party) between the indemnified party and
the indemnifying party (in which case the indemnifying party will
not have the right to direct the defense of such action on behalf
of the indemnified party) or (4) the indemnifying party has not in
fact employed counsel reasonably satisfactory to the indemnified
party to assume the defense of such action within a reasonable time
after receiving notice of the commencement of the action, in each
of which cases the reasonable fees, disbursements and other charges
of counsel will be at the expense of the indemnifying party or
parties. It is understood that the indemnifying party or parties
shall not, in connection with any proceeding or related proceedings
in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm of
attorneys (in addition to any local counsel) at any one time for
all such indemnified party or parties. Each indemnified party, as a
condition of the indemnity agreements contained in Sections 6(a)
and 6(b), shall use its reasonable efforts to cooperate with the
indemnifying party in the defense of any such action or claim. No
indemnifying party shall be liable for any settlement of any such
action effected without its written consent (which consent shall
not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment for the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold
harmless any indemnified party from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding
the foregoing sentence, if at any time an indemnified party shall
have requested an indemnifying party to reimburse the indemnified
party for fees and expenses or counsel as contemplated by this
section, the indemnifying party agrees that it shall be liable for
any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of a request in writing
setting forth proposed settlement terms from the indemnified party
and (ii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with the aforesaid request prior to
the date of such settlement. No indemnifying party shall, without
the prior written consent of the indemnified party (which consent
shall not be unreasonably withheld), effect any settlement of any
pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such
settlement (i) includes an unconditional release of such
indemnified party from all liability on claims that are the subject
matter of such proceeding and (ii) does not include a statement or
admission of fault, culpability or a failure to act, by or on
behalf of the indemnified party.

 

 

15

 

 

 

(d)           The
provisions of this Section 6 and Section 7 shall remain in full
force and effect, regardless of any investigation made by or on
behalf of any Notice Holder, the Company, or any of the indemnified
Persons referred to in this Section 6 and Section 7, and shall
survive the sale by a Notice Holder of Registrable Securities
covered by the Shelf Registration Statement.

 

7. Contribution.

 

If the indemnification provided for in Section 6
is unavailable or insufficient to hold harmless an indemnified
party under Section 6(a) or 6(b), then each indemnifying party
shall, in lieu of indemnifying such indemnified party, contribute
to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect
thereof, (i) in such proportion as shall be appropriate to reflect
the relative benefits received by the Company from the offering and
sale of the Notes, on the one hand, and a Holder with respect to
the sale by such Holder of Registrable Securities, on the other, or
(ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand
and such Holder on the other with respect to the statements or
omissions that resulted in such loss, claim, damage or liability,
or action in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the
Company on the one hand and a Holder on the other with respect to
such offering and such sale shall be deemed to be in the same
proportion as the total net proceeds from the offering of the Notes
(before deducting expenses) received by or on behalf of the
Company, on the one hand, and the total net proceeds (before
deducting expenses) received by such Holder upon a resale of the
Registrable Securities, on the other, bear to the total gross
proceeds from the sale of all Registrable Securities pursuant to
the Shelf Registration Statement in the offering of the Registrable
Securities from which the contribution claim arises. The relative
fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact
relates to the Company or information supplied by the Company on
the one hand or to any information contained in the relevant Notice
and Questionnaire supplied by such Holder on the other, the intent
of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such untrue statement or
omission. The Notice Holders’ respective obligations to
contribute pursuant to this Section 7 are several in proportion to
the respective number of Registrable Securities they have sold
pursuant to the Shelf Registration Statement and not joint. The
parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 7 were to be determined
by pro
rata allocation or by any other
method of allocation that does not take into account the equitable
considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this
Section 7 shall be deemed to include, for purposes of this Section
7, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending or
preparing to defend any such action or claim. Notwithstanding the
provisions of this Section 7, an indemnifying party that is a
Holder shall not be required to contribute any amount in excess of
the amount by which the total price at which the Registrable
Securities sold by such indemnifying party to any purchaser exceeds
the amount of any damages which such indemnifying party has
otherwise paid or become liable to pay by reason of any untrue or
alleged untrue statement or omission or alleged omission. No Person
guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

 

16

 

 

 

8. Information
Requirements.

 

The
Company covenants that, if at any time before the end of the
Effective Period the Company is not subject to the reporting
requirements of the Exchange Act, it will cooperate with any Holder
and take such further customary action as any Holder may reasonably
request in writing (including, without limitation, making such
representations as any such Holder may reasonably request), all to
the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144
and Rule 144A under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions. Upon the written
request of any Holder, the Company shall deliver to such Holder a
written statement as to whether it has complied with such filing
requirements, unless such a statement has been included in the
Company’s most recent report filed pursuant to Section 13 or
Section 15(d) of Exchange Act. Notwithstanding the foregoing,
nothing in this Section 8 shall be deemed to require the Company to
register any of its securities under any section of the Exchange
Act.

 

9. Miscellaneous.

 

(a)           Amendments
and Waivers. The provisions of
this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may
not be given, unless the Company has obtained the written consent
of the Majority Holders. Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a
matter that relates exclusively to the rights of Holders whose
Registrable Securities are being sold pursuant to the Shelf
Registration Statement and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of a
majority in aggregate amount of the Registrable Securities being
sold by such Holders pursuant to the Shelf Registration
Statement; provided that such aggregate amount, with respect to such
Registrable Securities that are Notes will be based on the
aggregate principal amount of such Notes that are Registrable
Securities, and with respect to such Registrable Securities that
are Shares, will be based on the average of the Last Reported Sale
Prices of the Company’s Common Stock for each of five
consecutive trading days ending on a date chosen by the Company in
a reasonable manner to effect the intent of this Agreement
multiplied by the number of such Registrable Securities that are
Shares. Notwithstanding the foregoing sentence, (i) this Agreement
may be amended by written agreement signed by the Company and the
Initial Holders, without the consent of the Holders, to cure any
ambiguity or to correct or supplement any provision contained
herein that may be defective or inconsistent with any other
provision contained herein, or to make such other provisions in
regard to matters or questions arising under this Agreement that
shall not adversely affect the interests of the Holders. Each
Holder at the time of any such amendment, modification, supplement,
waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected
pursuant to this Section 9(a), whether or not any notice, writing
or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

 

 

17

 

 

 

(b)           Notices.
All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class
mail, telecopier or air courier guaranteeing next-day
delivery:

 

(1) If
to the Company, initially at the address set forth in the
Indenture; and

 

(2) If
to a Holder, to the address of such Holder set forth in the
register (described in Section 2.06 of the Indenture), the Notice
and Questionnaire or other records of the Company.

 

All
such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; one (1)
Business Day after being delivered to a next-day air courier; five
(5) Business Days after being deposited in the mail, if being
delivered by first-class mail; and when receipt is acknowledged by
the recipient’s telecopier machine, if sent by
telecopier.

 

Notwithstanding
the foregoing, the notice required pursuant to Section 3(a)(i)
shall be given in the same manner that notices are required to be
delivered to holders of Notes pursuant to the
Indenture.

 

(c)           Successors
and Assigns. This Agreement
shall be binding upon the Company and each of its successors and
assigns. Any Person who purchases any Securities from any Initial
Holder shall be deemed, for purposes of this Agreement, to be an
assignee of such Initial Holder. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each
of the parties and shall inure to the benefit of and be binding
upon each Holder, provided that
nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Indenture. If any
transferee of any Holder shall acquire Registrable Securities, in
any manner, whether by operation of law or otherwise, such
Registrable Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Registrable
Securities, such Person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of
this Agreement and such Person shall be entitled to receive the
benefits hereof.

 

(d) Counterparts.
This Agreement may be executed in any number of counterparts (which
may be delivered in original form or by telecopier) and by the
parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken
together shall constitute one and the same
agreement.

 

(e) Headings.
The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning
hereof.

 

(f) Governing
Law. THIS AGREEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF NEW YORK, AND FOR
ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW
YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS
THEREOF).

 

(g) Remedies.
In the event of a breach by the Company or by any Holder of any of
their respective obligations under this Agreement, each Holder or
the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law, including recovery of damages
(other than the recovery of damages for a breach by the Company of
its obligations under Section 3 hereof for which Additional
Interest has been paid pursuant to Section 2 hereof), will be
entitled to specific performance of its rights under this
Agreement. The Company and each Holder agree that monetary damages
would not be adequate compensation for any loss incurred by reason
of a breach by it of any of the provisions of this Agreement and
hereby further agree that, in the event of any action for specific
performance in respect of such breach, it shall waive the defense
that a remedy at law would be adequate.

 

 

18

 

 

 

(h) No
Inconsistent Agreements. The
Company represents, warrants and agrees that (i) it has not entered
into and shall not on or after the date of this Agreement enter
into any agreement that is inconsistent with the rights granted to
the Holders in this Agreement or otherwise conflicts with the
provisions hereof, (ii) it has not previously entered into any
agreement which remains in effect and does not currently
contemplate entering into any agreement granting any registration
rights with respect to any of its debt securities to any Person
other than this Agreement and (iii) without limiting the generality
of the foregoing, without the written consent of the Majority
Holders, it shall not grant to any Person the right to request the
Company to register any securities of the Company under the
Securities Act unless the rights so granted are not in conflict or
inconsistent with the provisions of this
Agreement.

 

(i) Piggyback
on Registrations. The Company
may grant registration rights that would permit any person that is
a third party the right to piggyback on any Shelf Registration
Statement, provided that if the managing underwriter, if any, of
any underwritten offering conducted pursuant to Section 4(c) hereof
notifies the Company that the total amount of securities which the
Notice Holders and the holders of such piggyback rights intend to
include in any Shelf Registration Statement is so large as to
materially threaten the success of such offering (including the
price at which such securities can be sold), then the amount,
number or kind of securities to be offered for the account of
holders of such piggyback rights will be reduced to the extent
necessary to reduce the total amount of securities to be included
in such offering to the amount, number and kind recommended by the
managing underwriter prior to any reduction in the amount of
Registrable Securities to be included in such Shelf Registration
Statement; provided that it would not be a default under the
agreements granting such piggyback rights to make such reduction;
provided further that to the extent it would be such a default
under any such agreement to make such reduction, the Company will
use its commercially reasonable efforts to obtain appropriate
waivers.

 

(j) Severability.
The remedies provided herein are cumulative and not exclusive of
any remedies provided by law. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto
shall use their commercially reasonable efforts to find and employ
an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without
including any term, provision, covenant or restriction that may be
hereafter declared invalid, illegal, void or
unenforceable.

 

(k) Survival.
The respective indemnities, agreements, representations, warranties
and each other provision set forth in this Agreement or made
pursuant hereto shall remain in full force and effect regardless of
any investigation (or statement as to the results thereof) made by
or on behalf of any Holder, any director, officer or partner of
such Holder, any agent or underwriter or any director, officer or
partner thereof, or any controlling Person of any of the foregoing,
and shall survive (x) the delivery and payment for the Notes
pursuant to the Exchange and Subscription Agreement and (y) the
transfer and registration of Registrable Securities by holders of
Registrable Securities.

 

(l) Securities
Held by the Company, etc. Whenever the consent or approval of Holders of a
specified percentage of Securities is required hereunder,
Securities held by the Company or its Affiliates (other than
subsequent Holders if such subsequent Holders are deemed to be
Affiliates solely by reason of their holdings of such Securities)
shall not be counted in determining whether such consent or
approval was given by the Holders of such required
percentage.

 

 

 

19

 

If the
foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us a counterpart hereof,
whereupon this instrument will become a binding agreement between
the Company and the Initial Holders in accordance with its
terms.

 

Very
truly yours,

 

THE COMPANY

 

RUMBLEON,
INC.

 

By:

 

Name:

Title:

 

 

 

Accepted: January 14, 2020

 

 

 

___________________________

 

 

 

 

By: 

 

Name:

 

Title:

 

 

 

 

 

___________________________

 

 

 

 

 

 

 

 

By:                                                   

Name:

Title:

 

By:                                                              

Name:

Title:

 

 

 

 

 

___________________________

 

 

 

 

 

By:

Name:

Title:

 

 

20

 

 

 

___________________________

 

 

By: 

Name:

Title:

 

___________________________

 

 

By:

Name:

Title:

 

 

 

 

21

 

 

 

 

Annex A

 

 

 

 

Form of Selling Stockholder

Notice and Questionnaire

 

 

 

 

 

 

22Blueprint

 

Exhibit 10.1 

 

FORM
OF 

NOTE
EXCHANGE & SUBSCRIPTION AGREEMENT

January
10, 2020

 

RumbleOn,
Inc.

1350
Lakeshore Drive, Suite 160

Coppell,
Texas 75019

Attention:
Chief Financial Officer

 

Re: 

Exchange
and Subscription for RumbleOn, Inc. Convertible Senior Notes due
2025

 

Ladies
and Gentlemen:

 

RumbleOn,
Inc., a Nevada corporation, (the “Company”), is offering a new
series of 6.75% Convertible Senior Notes due 2025 (the
“New Notes”).
The New Notes will be convertible into cash, shares
(“Underlying
Shares”) of Class B common stock of the Company, par
value $0.001 per share (“Common Stock”), or a combination
thereof, at the Company’s election. The New Notes will be
issued pursuant to an Indenture, to be dated as of the Closing Date
(as defined below), between the Company and Wilmington Trust, N.A.,
as trustee (the “Trustee”), the form of which is
attached hereto as Exhibit
E (the “Indenture”).

 

The
undersigned (the “Investor”), for itself and, in
relation to the New Notes Offering (as defined below), on behalf of
the accounts (if any) listed on Exhibit A and Exhibit B hereto (the
“Accounts” and,
collectively with the Investor, the “Purchasers”), agrees
to:

 

(1)

tender the
Company’s existing 6.75% Convertible Senior Notes due 2024
(CUSIP 781386 AA5 and ISIN: US781386AA56) (the “Old Notes”) for an amount of New
Notes determined as set forth herein (the “Exchange”); and

 

(2)

subscribe for and
purchase from the Company New Notes for cash (the
“Subscription”
and, together with the Exchange, the “New Notes Offering”),

 

in each
case, pursuant and subject to the terms and conditions set forth in
this agreement (this “Agreement”).

 

The
Investor and each Account understands that the New Notes Offering
is being made without registration under the Securities Act of
1933, as amended (the “Securities Act”), or any
securities laws of any state of the United States or of any other
jurisdiction, and that the New Notes Offering is only being made to
investors who are both “accredited investors” (as
defined in Rule 501 of Regulation D under the Securities Act) and
“qualified institutional buyers” (as defined in Rule
144A under the Securities Act) in reliance upon one or more
exemptions from registration under the Securities Act.

 

The
holders of the New Notes will be entitled to the benefits of a
registration rights agreement, to be dated as of the Closing Date,
the form of which is attached hereto as Exhibit F (the
“Registration Rights
Agreement”), between the Company and the Investors,
pursuant to which the Company will agree to file one or more
registration statements with the U.S. Securities and Exchange
Commission (the “Commission”) providing for the
registration under the Securities Act of the resale of the New
Notes and the Underlying Shares. This Agreement, the Indenture, the
New Notes and the Registration Rights Agreement are referred to
herein collectively as the “Transaction
Documents.”

 

Concurrently
with the New Notes Offering, the Company is selling, in a
transaction registered under the Securities Act, shares of Common
Stock (the “Concurrent Common
Stock Offering”), and the Company is amending and
exchanging certain of its outstanding subordinated secured
promissory notes in an aggregate principal amount of $2.0 million
to extend the maturity of a portion of such notes (the
“Concurrent
Investor Note
Exchange”). The net proceeds of the Concurrent Common
Stock Offering, less commissions to the placement agent and
estimated expenses payable by the Company, are expected to be at
least $10 million. As contemplated by Section 7(b) of this Agreement, the
New Notes Offering is contingent upon completion of the Common
Stock Offering.

 

 

 

 

1.

The Exchange. Subject to the
terms and conditions of this Agreement, the Purchasers hereby
tender, assign and transfer to the Company all right, title and
interest in the aggregate principal amount (the “Exchanged Principal Amount”) of
Old Notes set forth in column 2 of Exhibit A hereto (such
principal amount of Old Notes, the “Exchanged Old Notes”) in exchange
for New Notes having an aggregate principal amount, for each
Purchaser, equal to the product of (x) the Exchange Ratio, as set
forth in Exhibit A
and (y) the Exchanged Principal Amount of Exchanged Old Notes for
such Purchaser, rounded to the nearest integral multiple of $1,000
in principal amount, if applicable, as set forth in column 4 of
Exhibit A hereto
(such aggregate principal amount of New Notes, as so rounded, if
applicable, the “Exchanged
New Notes”), and the Company agrees to issue such
Exchanged New Notes to the Purchasers in exchange for such
Exchanged Old Notes. For the avoidance of doubt, the Company will
make separate cash payment in respect of rounded amounts or
interest, if any, accrued and unpaid to the Closing Date (as
defined below) for the Exchanged Old Notes. Subject to the terms
and conditions of this Agreement, the Investor, on behalf of itself
and each Account, hereby (a) waives any and all other rights
with respect to such Exchanged Old Notes, and (b) releases and
discharges the Company from any and all claims the Investor and
each Account may now have, or may have in the future, arising out
of, or related to, such Exchanged Old Notes.

2.

The Subscription. Subject to
the terms and conditions of this Agreement, the Purchasers hereby
agree to purchase from the Company, and the Company hereby agrees
to issue and sell to the Investor and/or any such Account, New
Notes (the “Purchased New
Notes”) having an aggregate principal amount as set
forth in column 2 of Exhibit B hereto (the
“Purchased Principal
Amount”), for an aggregate purchase price in cash in
respect of such Purchased New Notes as set forth in column 3 of
Exhibit B (such
aggregate cash purchase price, the “Cash Purchase
Price”).

 

3.

The Closing. The closing of the
New Notes Offering (the “Closing”) shall take place at the
offices of Akerman LLP, 350 East Las Olas Boulevard, Fort
Lauderdale, Florida 33301 at 10:00 a.m., New York City time, on
January 14, 2020 or, subject to the immediately succeeding
sentence, at such other time and place as the Company may designate
by notice to the Investor (the “Closing Date”).

 

4.

Closing Mechanics.

 

(a)

The Depository
Trust Company (“DTC”) will act as securities
depositary for the New Notes.

 

(b)

At or prior to the
times set forth in the Exchange/Subscription Procedures set forth
in Exhibit C hereto
(the “Exchange/Subscription
Procedures”), the Investor, on behalf of itself and/or
any other Account, shall:

 

(i)

deliver and/or
cause the Purchaser to deliver the Exchanged Old Notes, by book
entry transfer through the facilities of DTC, to the Trustee, for
the account/benefit of the Company for cancellation as instructed
in the Exchange/Subscription Procedures; and

 

(ii)

transfer the Cash
Purchase Price by wire in immediately available funds to the
account of the Company designated in the Exchange/Subscription
Procedures.

 

 

(c)

On the Closing
Date, subject to satisfaction of the conditions precedent specified
in Section 7 hereof, and the prior
receipt by the Trustee from each Purchaser of the Exchanged Old
Notes to be tendered by such Purchaser and the prior receipt by the
Company of the Cash Purchase Price from such
Purchaser:

 

(i)

the Company shall
execute and deliver the Indenture; and

 

(ii)

the Company shall
execute, cause the Trustee to authenticate and cause to be
delivered to the DTC account(s) specified by the Investor or the
relevant Account in Exhibit D hereto, the Exchanged
New Notes and the Purchased New Notes.

 

All
questions as to the form of all documents and the validity and
acceptance of the Old Notes and the New Notes will be determined in
good faith by the Company.

 

5.

Representations and Warranties of the
Company. The Company represents and warrants to the Investor
(and each Account, as applicable) that:

 

(a)

Organization. The Company and each of
the subsidiaries of the Company set forth in the SEC Reports
(defined below) (the “Subsidiaries”) is an entity duly
incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, with the requisite power and authority to own and use
its properties and assets and to carry on its business as described
in the SEC Reports. Neither the Company nor any Subsidiary is in
violation nor default of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the
Subsidiaries is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the
case may be, could not have or reasonably be expected to result in
a material adverse effect on (i) the legality, validity or
enforceability of any Transaction Document, (ii) the results of
operations, assets, business, prospects or condition (financial or
otherwise) of the Company and the Subsidiaries, taken as a whole,
or (iii) on the Company’s ability to perform in any material
respect on a timely basis its obligations under any Transaction
Document (a “Material Adverse
Effect”).

 

 

 

 

(b)

Due Authorization. The Company has the
requisite corporate power and authority to enter into and to
consummate the transactions contemplated by each of the Transaction
Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of each of the Transaction
Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and
no further action is required by the Company, the board of
directors of the Company (the “Board of Directors”) or the
Company’s stockholders in connection herewith or therewith
other than in connection with the Required Approvals (as defined
below). This Agreement, the Indenture and each other Transaction
Document to which the Company is a party has been (or upon delivery
will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability
may be limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium, and other laws relating to or affecting
creditors’ rights generally and by general equitable
principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law) (collectively, the
“Enforceability
Exceptions”).

 

(c)

New Notes. The Company has all
requisite corporate power and authority to execute, issue, sell and
perform its obligations under the New Notes. The New Notes have
been duly authorized and, at the Closing Date, will have been duly
executed by the Company and, when authenticated, issued and
delivered in the manner provided for in the Indenture and delivered
in the Exchange and the Subscription as provided in this Agreement,
will constitute valid and binding obligations of the Company
entitled to the benefits of the Indenture, enforceable against the
Company in accordance with their terms, except as the enforcement
thereof may be limited by the Enforceability Exceptions, and will
be in the form contemplated by, and entitled to the benefits of,
the Indenture.

 

(d)

Underlying Shares. The maximum number
of Underlying Shares initially issuable upon conversion of the New
Notes (assuming settlement solely in shares of Common Stock and
taking into account the maximum make-whole adjustment under the
Indenture) have been duly and validly authorized and reserved for
by the Company and, when issued upon conversion of the New Notes in
accordance with the terms of the New Notes, will be validly issued,
fully paid and non-assessable, and the issuance of any Underlying
Shares will not be subject to any preemptive or similar
rights.

 

(e)

Exemption from Registration. Assuming
the accuracy of the representations and warranties of the Investor
and each other investor executing an Agreement, (1) each of
the issuance of the Exchanged New Notes in connection with the
Exchange and the issuance of the Purchased New Notes in connection
with the Subscription, as the case may be, pursuant to this
Agreement is exempt from the registration requirements of the
Securities Act; and (2) the Indenture is not required to be
qualified under the Trust Indenture Act of 1939, as
amended.

 

(f)

New Class. The New Notes, when issued,
will not be of the same class as securities listed on a national
securities exchange registered under Section 6 of the
Securities Exchange Act of 1934, as amended (the
“Exchange Act”),
or quoted in a U.S. automated inter-dealer quotation system, within
the meaning of Rule 144A(d)(3)(i) under the Securities
Act.

 

(g)

No Conflicts. The execution, delivery
and performance by the Company of each of the Transaction
Documents, and the consummation by it of the transactions
contemplated thereby, including the offer and sale of the New Notes
and the Underlying Shares do not and will not (i) conflict with or
violate any provision of the Company’s or any
Subsidiary’s certificate or articles of incorporation, bylaws
or other organizational or charter documents, (ii) conflict with,
or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation
of any lien upon any of the properties or assets of the Company or
any Subsidiary, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any agreement, credit facility, debt or
other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any
Subsidiary is a party or by which any property or asset of the
Company or any Subsidiary is bound or affected, or (iii) subject to
the Required Approvals, conflict with or result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which
the Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset
of the Company or a Subsidiary is bound or affected; except in the
case of each of clauses (ii) and (iii), such as could not have or
reasonably be expected to result in a Material Adverse
Effect.

 

(h)

Conduct of Business. Since December 31,
2018, except as has been publicly disclosed in the SEC Reports and
except for the Concurrent Common Stock Offering, the Company has
conducted its business in the ordinary course materially consistent
with past practice. Since December 31, 2018, there has not been any
Material Adverse Effect with respect to the Company or any of its
Subsidiaries nor has there occurred any event that is reasonably
likely to result in a Material Adverse Effect with respect to the
Company or any of its Subsidiaries.

 

 

 

 

(i)

Filings, Consents and Approvals. The
Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing
or registration with, any court or other federal, state, local or
other governmental authority or other person in connection with the
execution, delivery and performance by the Company of the
Transaction Documents, the consummation by the Company of the
transactions contemplated thereby, including the offer and sale of
the New Notes and the Underlying Shares, in each case other than:
(i) the filings required pursuant to Section 8 of this Agreement, (ii)
application(s) to The Nasdaq Stock Market LLC (“Nasdaq”) for the listing of the
Underlying Shares for trading thereon in the time and manner
required thereby, and (iii) such filings as are required to be made
under applicable state securities laws (collectively, the
“Required
Approvals”).

 

(j)

Capitalization. The capitalization of
the Company is as set forth in the SEC Reports, except to the
extent affected by the Concurrent Common Stock Offering and the
Concurrent Note Exchange. Except as contemplated by the Concurrent
Common Stock Offering, the Company has not issued any capital stock
since its most recently filed periodic report under the Exchange
Act, other than pursuant to the vesting and delivery of awards
under the Company’s employee equity plans outstanding as of
the date of the most recently filed periodic report under the
Exchange Act. No person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents. All
issued and outstanding securities of the Company issued prior to
the transactions contemplated by this Agreement have been duly
authorized and validly issued and are fully paid and
non-assessable; the holders thereof have no rights of rescission
with respect thereto, and are not subject to personal liability by
reason of being such holders; and none of such securities were
issued in violation of the preemptive rights of any holders of any
security of the Company or similar contractual rights granted by
the Company. The offers and sales of the outstanding shares of
Class A Common Stock and Common Stock were at all relevant times
either registered under the Securities Act and the applicable state
securities or “blue sky” laws or, based in part on the
representations and warranties of the purchasers of such shares of
Class A Common Stock and Common Stock, exempt from such
registration requirements.

(k)

SEC Reports. Since January 9, 2017, the
Company has filed all reports, schedules, forms, statements and
other documents required to be filed by the Company under the
Securities Act and the Exchange Act, including pursuant to Section
13(a) or 15(d) thereof (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”), on a timely basis
or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such
extension. As of their respective dates, the SEC Reports complied
in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC
Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading.

 

(l)

Financial Statements. The financial
statements, including the notes thereto and supporting schedules,
included in the SEC Reports, fairly present the financial position
and the results of operations of the Company at the dates and for
the periods to which they apply; and such financial statements have
been prepared in conformity with U.S. generally accepted accounting
principles (“GAAP”), consistently applied
throughout the periods involved (provided that unaudited interim
financial statements are subject to year-end audit adjustments that
are not expected to be material in the aggregate and do not contain
all footnotes required by GAAP). All disclosures contained in the
SEC Reports regarding “non-GAAP financial measures” (as
such term is defined by the rules and regulations of the
Commission), if any, comply with Regulation G of the Exchange Act
and Item 10 of Regulation S-K of the Securities Act, to the extent
applicable. The SEC Reports disclose all material off-balance sheet
transactions, arrangements, obligations (including contingent
obligations), and other relationships of the Company with
unconsolidated entities or other persons that may have a material
current or future effect on the Company’s financial
condition, changes in financial condition, results of operations,
liquidity, capital expenditures, capital resources, or significant
components of revenues or expenses. Except as disclosed in the SEC
Reports, (a) the Company has not incurred any material liabilities
or obligations, direct or contingent, or entered into any material
transactions other than in the ordinary course of business, (b) the
Company has not declared or paid any dividends or made any
distribution of any kind with respect to its capital stock, (c)
there has not been any change in the capital stock of the Company,
or, other than in the course of business, any grants under any
stock compensation plan, and (d) there has not been any material
adverse change in the Company’s long-term or short-term
debt.

(m)

Disclosure Controls. The Company
maintains disclosure controls and procedures as required by Rule
13a-15 or 15d-15 under the Exchange Act. Such disclosure controls
and procedures are effective to ensure that all information
required to be disclosed by the Company is recorded and reported on
a timely basis to the individuals responsible for the preparation
of the SEC Reports and other public disclosure documents. The
Company maintains systems of “internal control over financial
reporting” (as defined under Rules 13a-15 and 15d-15 under
the Exchange Act Regulations) that comply with the requirements of
the Exchange Act and have been designed by, or under the
supervision of, its principal executive and principal financial
officers, or persons performing similar functions. Such systems of
internal control over financial reporting are effective in
providing reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with GAAP and include policies and
procedures that provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or
specific authorizations; (ii) transactions are recorded as
necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with
respect to any differences. No attorney representing the Company or
any of its Subsidiaries, whether or not employed by the Company or
any of its Subsidiaries, has reported evidence of a violation of
securities laws, breach of fiduciary duty or similar violation by
the Company or any of its officers, directors, employees or agents
pursuant to the rules adopted pursuant to Section 307 of the
Sarbanes-Oxley Act.

 

(n)

Internal Controls. The Company has
disclosed, based on the most recent evaluation by its chief
executive officer and its chief financial officer prior to the date
hereof, to the Company’s auditors and the Audit Committee of
Board of Directors (i) any significant deficiencies in the design
or operation of its internal controls over financial reporting that
are reasonably likely to adversely affect the Company’s
ability to record, process, summarize and report financial
information and has identified for the Company’s auditors and
Audit Committee of the Board of Directors any material weaknesses
in internal control over financial reporting and (ii) any fraud,
whether or not material, that involves management or other
employees who have a significant role in the Company’s
internal control over financial reporting. No material complaints
from any source regarding accounting, internal accounting controls
or auditing matters, and no concerns from the Company’s
employees regarding questionable accounting or auditing matters,
have been received by the Company or, to the knowledge of the
Company, the Company’s independent registered public
accounting firm.

 

(o)

Nasdaq Compliance. The Company is in
compliance in all material respects with the applicable listing and
corporate governance rules and regulations of Nasdaq. From January
1, 2017 through the date hereof, the Company has not received any
comment letter from the Commission or the staff thereof or, except
as disclosed in the SEC Reports, any correspondence from the Nasdaq
or the staff thereof relating to the delisting or maintenance of
listing of Common Stock on Nasdaq, other than such disclosures or
documents that can be obtained on the Commission’s website at
www.sec.gov. No approval of the stockholders of the Company under
the rules and regulations of Nasdaq (including Rule 5635 of the
Nasdaq Marketplace Rules) is required to issue and deliver the New
Notes to the Purchasers or the Underlying Securities upon the
conversion of the New Notes.

 

 

 

 

(p)

Investment Company. The Company is not,
and is not an Affiliate of, and immediately after receipt of
payment for the New Notes, will not be or be an Affiliate of, an
“investment company” within the meaning of the
Investment Company Act of 1940, as amended. The Company shall
conduct its business in a manner so that it will not become an
“investment company” subject to registration under the
Investment Company Act of 1940, as amended.

 

(q)

Information Provided. The Company
confirms that, to its knowledge, with the exception of the proposed
sale of the New Notes under this Agreement and the Transaction
Documents relating hereto, neither the Company nor any other
persons acting on its behalf has provided any of the Investors or
their agents or counsel with any information that constitutes or
might constitute material, nonpublic information. The Company
further confirms that until public disclosure of the events
described above, the Investors will be restricted by the insider
trading prohibitions under the Exchange Act from trading or
“tipping” on the basis of such
information.

(r)

Intellectual Property. The Company owns
or possesses or has valid rights to use all patents, trademarks,
service marks, trade names, trademark registrations, service mark
registrations, copyrights, licenses, trade secrets and similar
rights (“Intellectual
Property Rights”), if any, necessary for the conduct
of the business of the Company as currently carried on and as
described in the SEC Reports. To the knowledge of the Company, no
action or use by the Company necessary for the conduct of its
business as currently carried on and as described in the SEC
Reports will involve or give rise to any infringement of, or
license or similar fees for, any Intellectual Property Rights of
others. Except as would not reasonably be expected to result,
individually or in the aggregate, in a Material Adverse Effect, the
Company has not received any notice alleging any such infringement,
fee or conflict with asserted Intellectual Property Rights of
others. Except as would not reasonably be expected to result,
individually or in the aggregate, in a Material Adverse Effect (A)
to the knowledge of the Company, there is no infringement,
misappropriation or violation by third parties of any of the
Intellectual Property Rights owned by the Company; (B) there is no
pending or, to the knowledge of the Company, threatened action,
suit, proceeding or claim by others challenging the rights of the
Company in or to any such Intellectual Property Rights, and the
Company is unaware of any facts which would form a reasonable basis
for any such claim, that would, individually or in the aggregate,
together with any other claims in this Section 5(r), reasonably be expected
to result in a Material Adverse Effect; (C) the Intellectual
Property Rights owned by the Company and, to the knowledge of the
Company, the Intellectual Property Rights licensed to the Company,
have not been adjudged by a court of competent jurisdiction invalid
or unenforceable, in whole or in part, and there is no pending or,
to the Company’s knowledge, threatened action, suit,
proceeding or claim by others challenging the validity or scope of
any such Intellectual Property Rights, and the Company is unaware
of any facts which would form a reasonable basis for any such claim
that would, individually or in the aggregate, together with any
other claims in this Section 5(r), reasonably be expected
to result in a Material Adverse Effect; (D) there is no pending or,
to the Company’s knowledge, threatened action, suit,
proceeding or claim by others that the Company infringes,
misappropriates or otherwise violates any Intellectual Property
Rights or other proprietary rights of others, the Company has not
received any written notice of such claim and the Company is
unaware of any other facts which would form a reasonable basis for
any such claim that would, individually or in the aggregate,
together with any other claims in this Section 5(r), reasonably be expected
to result in a Material Adverse Effect; and (E) to the
Company’s knowledge, no employee of the Company is in
violation in any material respect of any term of any employment
contract, patent disclosure agreement, invention assignment
agreement, non-competition agreement, non-solicitation agreement,
nondisclosure agreement or any restrictive covenant to or with a
former employer where the basis of such violation relates to such
employee’s employment with the Company, or actions undertaken
by the employee while employed with the Company and could
reasonably be expected to result, individually or in the aggregate,
in a Material Adverse Effect. To the Company’s knowledge, all
material trade secrets developed by and belonging to the Company
which have not been patented have been kept confidential. The
Company is not a party to or bound by any options, licenses or
agreements with respect to the Intellectual Property Rights of any
other person or entity that are required to be set forth in the SEC
Reports and are not described therein. None of the technology
employed by the Company has been obtained or is being used by the
Company in violation of any contractual obligation binding on the
Company or, to the knowledge of the Company, any of its officers,
directors or employees, or otherwise in violation of the rights of
any persons.

 

(s)

Registration Rights of Third Parties.
Except (i) pursuant to that certain registration rights
agreement, dated May 14, 2019, between the Company and JMP
Securities LLC, and (ii) as has been publicly disclosed in the
SEC Reports, no holders of any securities of the Company or any
rights exercisable for or convertible or exchangeable into
securities of the Company have the right to require the Company to
(i) register the sale or resale of any such securities of the
Company under the Securities Act (other than pursuant to the
Registration Rights Agreement), (ii) include any such securities in
a registration statement to be filed by the Company (including any
registration statement required to be filed pursuant to the
Registration Rights Agreement, other than the holders of the New
Notes) or (iii) register the resale of any securities of the
Company held by such persons, or that such persons may acquire upon
the exercise or conversion of any other securities of the Company
or pursuant to the prospectus as part of the Concurrent Common
Stock Offering.

(t)

No Integration. Neither the Company nor
any of its affiliates has, directly or through any agent, sold,
offered for sale, solicited offers to buy or otherwise negotiated
in respect of, any security (as defined in the Securities Act),
that is or will be integrated with the Exchange or the Subscription
in a manner that would require registration of the Securities under
the Securities Act.

 

(u)

Litigation; Governmental Proceedings.
There is no action, suit, proceeding, inquiry, arbitration,
investigation, litigation or governmental proceeding pending or, to
the Company’s knowledge, threatened against, or involving the
Company which (i) has not been disclosed in the SEC Reports and, if
resolved adversely to the Company, is reasonably likely to result
in a Material Adverse Effect or (ii) adversely affects or
challenges the legality, validity or enforceability of any of the
Transaction Documents, the New Notes or the Underlying
Shares.

 

 

 

 

6.

Representations and Warranties of the
Investor. The Investor hereby represents and warrants to and
covenants with the Company, on behalf of itself and each Account,
as applicable, that:

 

(a)

The Investor is a
corporation, limited partnership, limited liability company or
other entity, as the case may be, duly formed, validly existing and
in good standing under the laws of the jurisdiction of its
formation.

 

(b)

The Investor has
full power and authority to tender, assign and transfer the
Exchanged Old Notes in exchange for the Exchanged New Notes
pursuant to this Agreement and to enter into this Agreement and
perform all obligations required to be performed by the Investor
hereunder. If the Investor is executing this Agreement on behalf of
an Account, (i) the Investor has all requisite authority to enter
into this Agreement on behalf of, and, bind, each Account to the
terms of this Agreement, (ii) Exhibit A hereto is a true,
correct and complete list of (A) the name of each Purchaser and (B)
the principal amount of each Purchaser's Exchanged Old Notes and
(iii) Exhibit B
hereto is a true, correct and complete list of each Purchaser and
the aggregate principal amount of Purchased New Notes each such
Purchaser agrees to purchase hereunder.

 

(c)

Each Purchaser
participating in the Exchange is the current beneficial owner of
the Exchanged Old Notes. When the Exchanged Old Notes are
exchanged, the Company will acquire good, marketable and
unencumbered title thereto, free and clear of all liens,
restrictions, charges, encumbrances, adverse claims, rights or
proxies.

 

(d)

Participation in
the New Notes Offering will not contravene (1) any law, rule
or regulation binding on the Investor or any investment guideline
or restriction applicable to the Investor (or, if applicable, any
Account) and (2) the charter or bylaw (or equivalent
organizational documents) of the Investor (or, if applicable, any
Account).

 

(e)

The Investor (or
applicable Account) is a resident of the jurisdiction set forth in
Exhibit D and,
unless otherwise set out in Exhibit A and Exhibit B hereto is not
acquiring the Exchanged New Notes or the Purchased New Notes,
respectively, as a nominee or agent or otherwise for any other
person.

(f)

The Investor has
received a copy of the Transaction Documents. The Investor
acknowledges that: (1) no person has been authorized to give any
information or to make any representation concerning the New Notes
Offering or the Company or any of its subsidiaries, other than as
contained in this Agreement or the Transaction Documents or in the
information (i) contained in the Company’s periodic and
current reports filed by the Company with the Commission or (ii)
given by the Company’s duly authorized officers and employees
in connection with the Investor’s examination of the Company
and its subsidiaries and the terms of the New Notes Offering; and
(2) the Company and its subsidiaries do not take any responsibility
for, and cannot provide any assurance as to the reliability of, any
other information that may have been provided to the
Investor.

 

(g)

The Investor
understands and accepts that acquiring the New Notes in the New
Notes Offering involves risks, including those risks set forth in
the SEC Reports. The Investor has such knowledge, skill and
experience in business, financial and investment matters that the
Investor is capable of evaluating the merits and risks of the New
Notes Offering and an investment in the New Notes. With the
assistance of its own professional advisors (to the extent the
Investor has deemed appropriate), the Investor has made its own
legal, tax, accounting and financial evaluation of the merits and
risks of an investment in the New Notes and the consequences of the
New Notes Offering and this Agreement. The Investor has considered
the suitability of the New Notes as an investment in light of its
own circumstances and financial condition, and the Investor is able
to bear the risks associated with an investment in the New
Notes.

 

(h)

The Investor
confirms that it is not relying on any communication (written or
oral) of the Company or any of its agents or affiliates as
investment advice or as a recommendation to participate in the New
Notes Offering and receive the New Notes pursuant to the terms
hereof. It is understood that information provided in the
Transaction Documents, or by the Company or any of its agents or
affiliates, shall not be considered investment advice or a
recommendation with respect to the New Notes Offering, and that
neither the Company nor any of its agents or affiliates is acting
or has acted as an advisor to the Investor in deciding whether to
participate in the New Notes Offering.

 

(i)

The Investor
confirms that the Company has not (1) given any guarantee or
representation as to the potential success, return, effect or
benefit (either legal, regulatory, tax, financial, accounting or
otherwise) of an investment in the New Notes; or (2) made any
representation to the Investor regarding the legality of an
investment in the New Notes under applicable investment guidelines,
laws or regulations. In deciding to participate in the New Notes
Offering, the Investor is not relying on the advice or
recommendations of the Company, and the Investor has made its own
independent decision that the investment in the New Notes is
suitable and appropriate for the Investor.

 

(j)

The Investor is a
sophisticated participant in the transactions contemplated hereby
and has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an
investment in the New Notes, is experienced in investing in capital
markets and is able to bear the economic risk of an investment in
the New Notes. The Investor is familiar with the business and
financial condition and operations of the Company and its
subsidiaries and has conducted its own investigation of the Company
and its subsidiaries and the New Notes and has consulted with its
own advisors concerning such matters and shall be responsible for
making its own independent investigation and appraisal of the
transactions contemplated hereby. The Investor has had access to
the Company filings with the Commission and such other information
concerning the Company and its subsidiaries and the New Notes as it
deems necessary to enable it to make an informed investment
decision concerning the New Notes Offering. The Investor has been
offered the opportunity to ask questions of the Company and its
representatives and has received answers thereto as the Investor
deems necessary to enable it to make an informed investment
decision concerning the New Notes Offering and the New
Notes.

 

 

 

 

(k)

The Investor
understands that no federal, state, local or foreign agency has
passed upon the merits or risks of an investment in the New Notes
or made any finding or determination concerning the fairness or
advisability of such investment.

 

(l)

The Investor is an
“accredited investor” as defined in Rule 501(a) under
the Securities Act and a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act. The
Investor agrees to furnish any additional information reasonably
requested by the Company or any of its affiliates to assure
compliance with applicable U.S. federal and state securities laws
in connection with the New Notes Offering.

 

(m)

The Investor is not
directly, or indirectly through one or more intermediaries,
controlling or controlled by, or under direct or indirect common
control with, the Company and is not, and has not been for the
immediately preceding three months, an “affiliate”
(within the meaning of Rule 144 under the Securities Act) of the
Company.

 

(n)

The Investor is
acquiring the New Notes solely for the Investor’s own
beneficial account, or for an account with respect to which the
Investor exercises sole investment discretion, for investment
purposes, and not with a view to, or for resale in connection with,
any distribution of the New Notes that is impermissible under
applicable law. The Investor understands that the offer and sale of
the New Notes have not been registered under the Securities Act or
any state securities laws by reason of specific exemptions under
the provisions thereof that depend in part upon the investment
intent of the Investor and the accuracy of the other
representations made by the Investor in this
Agreement.

 

(o)

The Investor
understands that the Company is relying upon the representations
and agreements contained in this Agreement (and any supplemental
information) for the purpose of determining whether the
Investor’s participation in the New Notes Offering meets the
requirements for the exemptions referenced in Section 6(n) above.

 

(p)

The Investor
acknowledges that the New Notes have not been registered under the
Securities Act. As a result, until registered under the Securities
Act, the New Notes may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons,
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act as
described in the Indenture, and the Investor hereby agrees that it
will not sell the New Notes other than in compliance with such
transfer restrictions. Further, the Investor acknowledges that the
New Notes will initially be issued pursuant to a restricted CUSIP
number.

 

(q)

The Investor
acknowledges that the terms of the New Notes Offering have been
mutually negotiated between the Investor and the Company. The
Investor was given a meaningful opportunity to negotiate the terms
of the New Notes Offering.

 

(r)

The Investor will,
upon request, execute and deliver any additional documents,
information or certifications reasonably requested by the Company,
the Trustee to complete the New Notes Offering.

(s)

The Investor
understands that, unless the Investor notifies the Company in
writing to the contrary before the Closing, each of the
Investor’s representations and warranties contained in this
Agreement will be deemed to have been reaffirmed and confirmed as
of the Closing, taking into account all information received by the
Investor.

 

(t)

The Investor
acknowledges that it had a sufficient amount of time to consider
whether to participate in the New Notes Offering and that the
Company has not placed any pressure on the Investor to respond to
the opportunity to participate in the New Notes Offering. The
Investor acknowledges that it did not become aware of the New Notes
Offering through any form of general solicitation or advertising
within the meaning of Rule 502 under the Securities
Act.

 

(u)

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

 

 

 

 

7.

Conditions to Obligations of the
Investor and the Company. The obligations of the Investor to
deliver, or to cause the Accounts to deliver, the Exchanged Old
Notes and the Cash Purchase Price and of the Company to deliver the
Exchanged New Notes and Purchased New Notes are subject
to:

 

(a)

The satisfaction at
or prior to the Closing of the condition precedent that the
representations and warranties of the Company on the one hand, and
of the Investor on the other contained in Sections 5 and 6, respectively, shall be
true and correct as of the Closing in all material respects with
the same effect as though such representations and warranties had
been made as of the Closing.

 

(b)

The receipt by
the Company of at least $10 million in net proceeds from the
issuance and sale of Common Stock in the Concurrent Common Stock
Offering.

 

(c)

The maximum number
of Underlying Shares initially issuable upon conversion of the New
Notes (assuming settlement solely in shares of Common Stock and
taking into account the maximum make-whole adjustment under the
Indenture) have been approved for listing on Nasdaq.

 

(d)

Solely as to the
obligations of the Investor:

 

i.

The execution and
delivery of the Registration Rights Agreement by the Company and
the execution and delivery by the Company and the Trustee of the
Indenture.

 

ii.

The delivery to the
Investor of a certificate of the chief financial officer or chief
accounting officer of the Company and one additional senior
executive officer of the Company confirming that the
representations and warranties of the Company in this Agreement are
true and correct as of the Closing Date and that the Company has
complied with all agreements and satisfied all conditions on their
part to be performed or satisfied hereunder at or prior to the
Closing Date.

 

iii.

The delivery to the
Investor of an opinion from (x) Akerman LLP (or if Akerman LLP is
unable to issue such an opinion, of another nationally recognized
law firm proposed by the Company that is reasonably acceptable to
the Investor), and (y) Snell & Wilmer L.L.P., Nevada counsel
for the Company, in each case, dated as of the Closing Date and in
form and substance reasonably satisfactory to the
Investor.

 

iv.

The payment of fees
of counsel of King & Spalding LLP as contemplated by that Fee
Letter, dated January 5, 2020, between the Company and King &
Spalding LLP.

 

v.

From the date
hereof to the Closing Date, trading in the Common Stock shall not
have been suspended by the Commission or Nasdaq, and, at any time
prior to the Closing Date, trading in securities generally as
reported by Bloomberg L.P. shall not have been suspended or
limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, or on Nasdaq,
nor shall a banking moratorium have been declared either by the
United States or New York State authorities nor shall there have
occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its
effect on, or any material adverse change in, any financial market
which, in each case, in the reasonable judgment of the Investor,
makes it impracticable or inadvisable to proceed with the
Closing

 

8.

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

 

9.

Integration. The Company shall
not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the offer or sale
of the New Notes or the Underlying Shares in a manner that would
require the registration under the Securities Act of the sale of
the Shares or that would be integrated with the offer or sale of
the Shares for purposes of the rules and regulations of any trading
market on which the Common Stock is listed such that it would
require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the
closing of such subsequent transaction.

10.

Covenant of the Investor. No
later than one (1) business day after the date hereof, the Investor
agrees to deliver settlement instructions for each Purchaser to the
Company substantially in the form of Exhibit D hereto.

 

 

 

 

11.

Waiver, Amendment. Neither this
Agreement nor any provisions hereof shall be modified, changed,
discharged or terminated except by an instrument in writing, signed
by the party against whom any waiver, change, discharge or
termination is sought.

 

12.

Assignability. Neither this
Agreement nor any right, remedy, obligation or liability arising
hereunder or by reason hereof shall be assignable by the Company or
the Investor without the prior written consent of the other
party.

13.

Taxation. The Investor
acknowledges that, if the Investor (or any Account) is a United
States person for U.S. federal income tax purposes, either
(1) the Company must be provided with a correct taxpayer
identification number (“TIN”), generally a person’s
social security or federal employer identification number, and
certain other information on Internal Revenue Service
(“IRS”) Form
W-9, which is provided as an attachment hereto, and a
certification, under penalty of perjury, that such TIN is correct,
that the Investor (or such Account) is not subject to backup
withholding and that the Investor is a United States person, or
(2) another basis for exemption from backup withholding must
be established. The Investor further acknowledges that, if the
Investor (or any Account) is not a United States person for U.S.
federal income tax purposes, (1) the Company must be provided
the appropriate IRS Form W-8 signed under penalties of perjury,
attesting to that non-U.S. Investor’s foreign status, and
(2) the Investor (or such Account) may be subject to U.S.
federal withholding or U.S. federal backup withholding tax on
certain payments made to the Investor (or such Account) unless the
Investor (or such Account) properly establishes an exemption from,
or a reduced rate of, withholding or backup
withholding.

 

14.

Waiver of Jury Trial. EACH OF
THE COMPANY AND THE INVESTOR (FOR ITSELF AND, IF APPLICABLE, ON
BEHALF OF EACH ACCOUNT) IRREVOCABLY WAIVES ANY AND ALL RIGHT TO
TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

15.

Governing Law. THIS AGREEMENT
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE
APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

16.

Submission to Jurisdiction.
Each of the Company and the Investor (for itself and, if
applicable, on behalf of each Account) (a) agrees that any
legal suit, action or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby shall be
instituted exclusively in the courts of the State of New York
located in the City and County of New York or in the United States
District Court for the Southern District of New York;
(b) waives any objection that it may now or hereafter have to
the venue of any such suit, action or proceeding; and
(c) irrevocably consents to the jurisdiction of the aforesaid
courts in any such suit, action or proceeding. Each of the Company
and the Investor (for itself and, if applicable, on behalf of each
Account) agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner
provided by law.

 

17.

Venue. Each of the Company and
the Investor (for itself and, if applicable, on behalf of each
Account) irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it
may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement
in any court referred to in Section 16. Each of the Company and
the Investor (for itself and, if applicable, on behalf of each
Account) irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

 

18.

Service of Process. Each of the
Company and the Investor (for itself and, if applicable, on behalf
of each Account) irrevocably consents to service of process in the
manner provided for notices in Section 21. Nothing in this
Agreement will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.

 

19.

Section and Other Headings. The
section and other headings contained in this Agreement are for
reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

 

20.

Counterparts.
This Agreement may be executed by one or more of the parties hereto
in any number of separate counterparts (including by facsimile or
other electronic means, including telecopy, email or otherwise),
and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed
signature page of this Agreement by facsimile or other transmission
(e.g., “pdf” or “tif” format)
shall be effective as delivery of a manually executed counterpart
hereof. 

 

 

 

 

21.

Notices. All notices and other
communications to the Company provided for herein shall be in
writing and shall be deemed to have been duly given if delivered
personally or sent by registered or certified mail, return receipt
requested, postage prepaid to the following addresses, or, in the
case of the Investor or any Account, the address provided in
Exhibit D (or such
other address as either party shall have specified by notice in
writing to the other):

 

 

	
 

	
 

	
 

	
 

	
 

	

If to
the Company:

	

RumbleOn,
Inc.

901 W.
Walnut Hill Lane

Irving,
Texas 75038

Attention:
Chief Financial Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

In each
case, with a copy to (which shall not constitute
notice):

	

Akerman
LLP

350 E.
Las Olas Boulevard

Fort
Lauderdale, FL 33301

Attn:
Michael Francis; Christina Russo

 

	
 

	
 

	
 

	
 

22.

Binding Effect. The provisions
of this Agreement shall be binding upon and accrue to the benefit
of the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

 

23.

Notification of Changes. The
Investor (for itself and, if applicable, on behalf of each Account)
hereby covenants and agrees to notify the Company upon the
occurrence of any event prior to the Closing that would cause any
representation, warranty, or covenant of the Investor (and/or such
Account) contained in this Agreement to be false or incorrect in
any material respect.

24.

Severability. If any term or
provision (in whole or in part) of this Agreement is invalid,
illegal or unenforceable in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other term or
provision of this Agreement or invalidate or render unenforceable
such term or provision in any other jurisdiction.

 

[Signature
Pages Follow]

 

 

 

IN WITNESS WHEREOF, the Investor (for itself and, if
applicable, on behalf of each Account) has executed this Agreement
as of the date first written above.

 

 

	

 

	
Legal
Name of Executing Investor:

___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

[Signature Page to
Agreement]

 

 

 

 

IN WITNESS WHEREOF, the Investor (for itself and, if
applicable, on behalf of each Account) has executed this Agreement
as of the date first written above.

 

 

	

 

	

___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

	

 

	
___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

  

	

 

	
___________________________

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

 

[Signature
Page to Agreement]

 

 

ACCEPTED AND AGREED:

 

 

	

 

	
RUMBLEON,
INC.

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	

	

 

	

 

	

 

	

	

 

	

 

	

 

	

	

 

 

[Signature Page to
Agreement]

 

 

 

 

EXHIBIT A

 

The Exchange Ratio: 1.0

 

 

 

 

 

EXHIBIT B

 

 

 

 

 

 

EXHIBIT C

 

 

NOTICE OF EXCHANGE/SUBSCRIPTION PROCEDURES

 

Attached
are Exchange/Subscription Procedures for the settlement of the
RumbleOn, Inc. (the “Company”) exchange and
subscription of its Convertible Senior Notes due 2025 (the
“New Notes”)
pursuant to the Agreement, dated as of January 10, 2020, between
you and the Company which is expected to occur on or about January
14, 2020. To ensure timely settlement, please follow the
instructions for exchanging your existing RumbleOn, Inc.’s
6.75% Convertible Senior Notes due 2024 (the “Old Notes”) and subscribing for
New Notes as set forth on the following page.

 

These instructions supersede any prior instructions you received.
Your failure to comply with the attached instructions may delay
your receipt of the New Notes.

 

If you
have any questions, please contact Nathan Plotkin at
(860) 251-5320.

 

Thank
you.

 

 

 

 

	

 

Delivery of Old Notes

 

You must direct the
eligible DTC participant through which you hold a beneficial
interest in the Old Notes to post on January 14, 2020, no later than 9:00 a.m.,
New York City time, one-sided withdrawal instructions
through DTC via DWAC for transfer to Wilmington Trust, National
Association, the aggregate principal amount1 of Exchanged Old
Notes (CUSIP 781386 AA5 / ISIN: US781386AA56) set forth in column 2
of Exhibit A
(“Aggregate Principal Amount of Exchanged Old Notes”)
of the Agreement.

 

It
is important that this instruction be submitted and the DWAC posted
on January 14, 2020, no later than 9:00 a.m., New York City
time.

 

To receive New Notes

 

You must direct
your eligible DTC participant through which you wish to hold a
beneficial interest in the New Notes to post and accept on January
14, 2020, no later than 9:00 a.m., New York City time, a one-sided
deposit instruction through DTC via DWAC from Wilmington Trust,
National Association for the aggregate principal amount2 of Exchanged New
Notes (CUSIP/ISIN #781386 AB3 / US781386AB30) set forth in column 4
of Exhibit A
(“Aggregate Principal Amount of Exchanged New Notes”)
of the Agreement.

 

It
is important that this instruction be submitted and the DWAC posted
on January 14, 2020, no later than 9:00 a.m., New York City
time.

 

AND

 

1.

No later than 11:00 a.m., New York City time, on January 14
2020, you must pay the Cash Purchase Price set forth in
column 3 of Exhibit
B3
(“Cash Purchase Price”) of the Agreement by wire
transfer in immediately available funds to the following account of
the Company:

 

 Beneficiary
Financial Center Name and Address:  

 

______________________

 

______________________

 

______________________

 

Account
Holder/Beneficiary: __________ 

 

Beneficiary Account
Name: ___________

 

Beneficiary Account
Number: _________ 

 

ABA/Routing Number:
______________  

 

You must complete
ALL steps described above in
order to complete the exchange of Old Notes for New
Notes.

 

 

1 Note that the
DWAC instruction should specify the principal amount, not the
number, of Exchanged Old Notes.

2 Note that the
DWAC instruction should specify the principal amount, not the
number, of New Notes.

3 The Cash
Purchase Price is the amount of cash that you must wire to the
Company in connection with your purchase of New Notes.

 

 

 

 

EXHIBIT D

 

Purchaser Settlement Details

 

These settlement instructions are to be delivered to the Company
for each Purchaser no later than one (1) business day after the
date of the Agreement.

 

Name of
Purchaser:                                                                                      

 

Purchaser
Address:

 

                                                                                      

                                                                                      

                                                                                      

 

Telephone: 
                                                                                 
                                                                           

 

Email
Address:                                                                            
                                                                          

 

	
 

SETTLEMENT

 

On
January 14, 2020, after the Company receives your Old Notes and
your Cash Purchase Price and your delivery instructions as set
forth above, and subject to the satisfaction of the conditions to
closing as set forth in your Agreement, the Company will deliver
your New Notes in accordance with the delivery instructions set
forth above.

  

 

Country of
Residence:                                                                   

 

Taxpayer
Identification Number:                                                                

 

Exchanged Old Notes

 

DTC Participant
Number:                                                                

 

DTC Participant
Name:                                                                                                                                          

 

 

 

 

DTC Participant
Phone Number:                                                                

 

DTC Participant
Contact Email:                                                                

 

FFC Account #:
                                                               

 

Account # at
Bank/Broker:                                                                

 

Exchanged New Notes (if different from Exchanged Old
Notes)

 

 

 

DTC Participant
Number:                                                                

 

DTC Participant
Name:                                                                

 

DTC Participant
Phone Number:                                                                

 

DTC Participant
Contact Email:                                                                

 

FFC Account #:
                                                               

 

Account # at Bank/Broker:                                                                

 

EXHIBIT E

 

Indenture

 

See
Exhibit 4.1 to the Form 8-K.

 

 

 

 

EXHIBIT F

 

Registration Rights Agreement

 

See Exhibit 4.3 to the Form 8-K.

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