Document:

Exhibit
10.1

 

July
__, 2021

[_______________________]

 

[_______________________]

 

[_______________________]

 

	 	Re:	Reload
    Offer of Common Stock Purchase Warrants

 

To
Whom It May Concern:

 

Eastside
Distilling, Inc. (the “Company”) is pleased to offer to you the opportunity to receive new Common Stock purchase warrants
of the Company in consideration for the exercise of the existing Common Stock purchase warrants set forth on your signature page attached
hereto (the “Existing Warrants”) currently held by you (the “Holder”). The shares of common stock,
par value $0.0001 (“Common Stock”), underlying the Existing Warrants (“Existing Warrant Shares”)
have been registered for resale pursuant to a registration statement on Form S-3 (File No. 333-257152) (the “Registration Statement”).
The Registration Statement is currently effective and, upon exercise of the Existing Warrants, will, to the Company’s knowledge,
be effective for the resale of the Existing Warrant Shares. Capitalized terms not otherwise defined herein shall have the meanings
set forth in the Existing Warrants.

 

In
consideration for cash exercising certain of the Existing Warrants held by you on or before 9:00 a.m. (New York City time) on July 30,
2021 (the “Warrant Exercise”), the Company hereby offers to sell you or your designees one or more Common Stock purchase
warrants (the “New Warrants”) to purchase up to an aggregate number of shares of Common Stock equal to 100% of the
number of Existing Warrant Shares issued pursuant to each Warrant Exercise that occurs from and after the date hereof and prior to 9:00
a.m. on July 30, 2021. The New Warrants will be exercisable upon the Company’s receipt of the Stockholder Approval (as defined
below), expire on the five-year anniversary of the Company’s receipt of the Stockholder Approval, and have an exercise price equal
to $3.00 (the “New Warrant Exercise Price”), and will be in the form set forth on Annex B hereto. The
original New Warrant certificates will be delivered within two Business Days following each Warrant Exercise pursuant to this letter
agreement. Notwithstanding anything herein to the contrary, in the event the Warrant Exercise would otherwise cause the Holder to exceed
the beneficial ownership limitations (“Beneficial Ownership Limitation”) set forth in Section 2(e) of the Existing
Warrants, the Company shall only issue such number of Warrant Shares to the Holder that would not cause the Holder to exceed the maximum
number of Warrant Shares permitted thereunder with the balance to be held in abeyance until notice from the Holder that the balance (or
portion thereof) may be issued in compliance with such limitations, which abeyance shall be evidenced through the Existing Warrant which
shall be deemed prepaid thereafter, and exercised pursuant to a Notice of Exercise in the Existing Warrant (provided no additional exercise
price shall be payable).

 

The
Holder may accept this offer by signing this letter below, with such acceptance constituting the Holder’s exercise of the Existing
Warrants as set forth on the Holder’s signature page attached hereto for an aggregate exercise price as set forth on the Holder’s
signature page hereto (the “Aggregate Exercise Price”) on or before 9:00 a.m. (New York City time) on July 30, 2021.

 

    	 

    	 

    

 

Additionally,
the Company agrees to the representations, warranties, and covenants set forth on Annex A attached hereto. Holder represents and
warrants that, as of the date hereof it is, and on each date on which it exercises any New Warrants it will be, an “accredited
investor” as defined in Rule 501 of the Securities Act, and agrees that the New Warrants will contain restrictive legends when
issued, and neither the New Warrants nor the shares of Common Stock issuable upon exercise of the New Warrants will be registered under
the Securities Act, except as provided in Annex A attached hereto.

 

If
this offer is accepted and this letter agreement is executed and delivered to the Company on or before 9:00 a.m. (New York City time)
on July 30, 2021, the Company shall issue a press release disclosing the material terms of the transactions contemplated hereby (the
“Press Release”) on or before 9:15 a.m. (New York City time) on July 30, 2021 and (ii) file a Current Report on Form
8-K with the Securities and Exchange Commission disclosing all material terms of the transactions contemplated hereunder, including this
letter agreement as an exhibit thereto with the Commission within the time required by the Exchange Act. From and after the issuance
of the Press Release, the Company represents to the Holder that it shall have publicly disclosed all material, non-public information
delivered to the Holder by the Company or any of its officers, directors, employees, or agents in connection with the transactions contemplated
hereby. In addition, effective upon the issuance of the Press Release, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company or any of its officers, directors, agents, employees
or Affiliates on the one hand, and the Holder or any of its Affiliates on the other hand, shall terminate. Other than the transactions
contemplated hereby, from and after the issuance of the Press Release, the Company represents to the Holder that none of the Company’s
directors, officers, employees, or agents will have provided the Holder with any material, nonpublic information that is not disclosed
in the Press Release.

 

The
Company represents, warrants, and covenants that, upon acceptance of this offer, all of the Existing Warrant Shares being exercised shall
be delivered electronically through the Depository Trust Company within one (1) Trading Day of the date the Company receives the Aggregate
Exercise Price (or, with respect to shares of Common Stock that would otherwise be in excess of the Beneficial Ownership Limitation,
within one (1) Business Day of the date the Company is notified by Holder that its ownership is less than the Beneficial Ownership Limitation).
Except as set forth herein, the terms of the Existing Warrants, including, but not limited to, the obligations to deliver the Existing
Warrant Shares, shall remain in effect as if the acceptance of this offer was a formal exercise notice under the Existing Warrants.

 

    	 

    	 

    

 

The
Company acknowledges and agrees that the obligations of the Holder under this letter agreement are several and not joint with the obligations
of any other holder of Common Stock purchase warrants of the Company (each, an “Other Holder”) under any other agreement
related to the exercise of such warrants (“Other Warrant Exercise Agreement”), and the Holder shall not be responsible
in any way for the performance of the obligations of any Other Holder or under any such Other Warrant Exercise Agreement. Nothing contained
in this letter agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and the Other Holders
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and the Other
Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this letter
agreement and the Company acknowledges that the Holder and the Other Holders are not acting in concert or as a group with respect to
such obligations or the transactions contemplated by this letter agreement or any Other Warrant Exercise Agreement. The Company and the
Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice
of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation,
the rights arising out of this letter agreement, and it shall not be necessary for any Other Holder to be joined as an additional party
in any proceeding for such purpose.

 

Each
party shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery, and performance of this letter agreement, except that the
parties agree that up to $5,000, representing legal fees of the Holder for this letter agreement and the transactions related hereto,
shall be deducted from the Aggregate Exercise Price to be paid by the Holder to the Company on the date of the Warrant Exercise. The
Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Existing
Warrant Shares. This letter agreement shall be governed by the laws of the State of Nevada without regard to the principles of conflicts
of law thereof.

 

***************

 

    	 

    	 

    

 

To
accept this offer, Holder must counter execute this letter agreement and return the fully executed letter agreement to the Company at
e-mail: ggwin@eastsidedistilling.com, attention: Geoffrey Gwin, on or before 9:00 am (New York City time) on July 30, 2021.

 

Please
do not hesitate to call me if you have any questions.

 

	 	Sincerely
    yours,
	 	 
	 	EASTSIDE
    DISTILLING, INC. 
	 	 	 
	 	By:	
	 	Name:	Geoffrey
    Gwin
	 	Title:	CFO

 

[Signature
Page to Warrant Exercise Inducement Letter]

 

    	 

    	 

    

 

Accepted
and Agreed to:

 

	HOLDER:
	 
	[_______________________]
	 
	By:	                                	 
	Name:	 	 
	Title:	 	 

 

	Existing
    Warrant Shares: __________
	 
	Number(s)
    of Existing Warrants being exercised contemporaneously with signing this letter: Warrant No. _______________
	 
	Aggregate
    Exercise Price of the Existing Warrants being exercised contemporaneously with signing this letter: $_______________
	 
	New
    Warrant Shares: _____________
	 
	New
    Warrant Exercise Price: $3.00
	 
	Address
    for Delivery of New Warrant: [_______________________]

 

DTC
Instructions:

 

The
Existing Warrant Shares shall be delivered to the following DWAC Account Number:

 

	 	Broker
    Name:	
	 	 	 
	 	Broker
    DTC DWAC #:	
	 	 	 
	 	Account
    #:	

 

 

[Signature
Page to Warrant Exercise Inducement Letter]

 

    	 

    	 

    

 

Annex
A – Representations, Warranties, and Covenants

 

Representations,
Warranties, and Covenants of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

(a)
Registration Statement. The Existing Warrant Shares are registered for issuance on a Registration Statement on Form S-3 (File
No. 333-257152) (the “Registration Statement”) and the Company knows of no reason why such registration statement
shall not remain effective for the foreseeable future. The Company shall use commercially reasonable efforts to keep the Registration
Statement effective and available for use by the Holder until all Existing Warrant Shares underlying the Existing Warrants are sold by
the Holder.

 

(b)
Authorization; Enforcement. The Company will have the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this letter agreement and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of this letter agreement by the Company and the consummation by the Company of the transactions contemplated hereby will
be duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of
directors or its stockholders in connection therewith. This letter agreement has been duly executed by the Company and, when delivered
in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(c)
No Conflicts. The execution, delivery, and performance of this letter agreement by the Company and the consummation by the Company
of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate
of incorporation, bylaws or other organizational or charter documents; or (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 in connection with, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument (evidencing
Company debt or otherwise) or other material understanding to which such Company is a party or by which any property or asset of the
Company is bound or affected, other than for which a waiver has been obtained by the Company; or (iii) subject to Section (d) below,
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 is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected.

 

(d)
Nasdaq Corporate Governance. The transactions contemplated under this letter agreement, comply with all rules of Nasdaq.

 

    	 

    	 

    

 

(e)
Issuance of the New Warrant. The issuance of the New Warrants is duly authorized and, upon the execution of this letter agreement
by the Holder, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company, and
the shares issuable upon exercise of the New Warrants (the “New Warrant Shares”), when issued in accordance with the
terms of the New Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.

 

(f)
Legends and Transfer Restrictions.

 

(i)
The New Warrants and New Warrant Shares may only be disposed of in compliance with state and federal securities laws. In connection with
any transfer of New Warrants or New Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of the Holder or in connection with a pledge, the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall
be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred New Warrant
and New Warrant Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by
the terms of this letter agreement.

 

(ii)
The Holder agrees to the imprinting, so long as is required by this Section (f), of a legend on any of the New Warrants and New Warrant
Shares in the following form:

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	 

    	 

    

 

The
Company acknowledges and agrees that the Holder may, from time to time, pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the New Warrants to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this letter agreement
and, if required under the terms of such arrangement, the Holder may transfer pledged or secured New Warrants to the pledgees or secured
parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the Holder’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of New Warrants may reasonably
request in connection with a pledge or transfer of the New Warrants or New Warrant Shares.

 

(g)
Listing of Common Stock. The Company shall apply to list or quote all of the New Warrant Shares on Nasdaq and promptly secure
the listing of all of the New Warrant Shares on Nasdaq (the “New Warrant Shares Listing”).

 

(h)
Registration Statement. The Company shall file, within fifteen (15) days of obtaining the Stockholder Approval (as defined below),
a registration statement on Form S-3 (or other appropriate form if the Company is not then S-3 eligible) providing for the resale by
the Holders of the New Warrant Shares issued and issuable upon exercise of the New Warrants pursuant to the same terms and conditions
of that certain Registration Rights Agreement by and between the Company and the Holder dated as of April 19, 2021, as if the New Warrant
Shares were “Registrable Securities” thereunder.

 

(i)
Stockholder Approval. The Company will use commercially reasonable efforts to obtain approval from its stockholders as soon as
possible following the date hereof (the “Stockholder Approval”) to (1) amend its articles of incorporation to increase
its authorized common stock to a number of shares that equals or exceeds 17,000,000 shares, and (2) to approve the terms and issuance
of the New Warrants.

 

(j) Reservation.
Upon receiving the Stockholder Approval, the Company will reserve from its duly authorized capital stock a number of shares of
Common Stock for issuance of the New Warrant Shares in full (calculated at the time of the Stockholder Approval).

 

(k)
Stockholder Approval Failure. At any time during the period commencing from the nine month
anniversary of the date hereof and ending at such time that the Holder ceases to own any New Warrants or New Warrant Shares, if either
(x) the Company has not obtained the Stockholder Approval (a “Stockholder Approval Failure”) or (y) the Company has
not secured the New Warrant Shares Listing (a “Listing Approval Failure”, and together any Stockholder Approval Failure,
each an “Approval Failure”) then, in addition to the Holder’s other available remedies, the Company shall pay
to the Holder or its designated affiliate, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in
or reduction of its ability to exercise the New Warrants and/or sell the New Warrant Shares, monthly cash payments each in an amount
equal to three percent (3.0%) of the aggregate New Warrant Exercise Price for the purchase of all New Warrant Shares under the Holder’s
New Warrants (such amount being equal to $40,500.00 as of the date hereof) (with each monthly payment pro-rated for the number of days
of each calendar month during which such Approval Failure remains uncured), beginning from the first month during which any Approval
Failure occurs and for each calendar month thereafter, until the earlier of (a) the date such Approval Failure is cured and (b) the two
year anniversary of the date hereof. The payments to which the Holder shall be entitled pursuant to this Section (k) are referred to
herein as “Approval Failure Payments.” Approval Failure Payments shall be paid on the earlier of (i) the last day
of the calendar month during which such Approval Failure Payments are incurred and (ii) the third (3rd) Business Day after the event
or failure giving rise to the Approval Failure Payments is cured. 

 

    	 

    	 

    

 

(l)
Indemnification. The Company agrees to indemnify and hold the Holder and its officers, directors, agents, employees, advisors,
counsel and Affiliates (each such person being an “Indemnitee”), harmless from and against any and all losses, claims,
damages, liabilities, costs or expenses (including attorneys’ fees and expenses), including amounts paid in settlement, court costs,
and the fees and expenses of counsel, imposed on, incurred by or asserted against any of them in connection with any litigation, investigation,
claim or proceeding (“Proceedings”) commenced or threatened related to the negotiation, preparation, execution, delivery,
enforcement, performance or administration of this letter agreement and/or the New Warrants, or any Proceedings related to any of the
transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto, including without limitation
Proceedings arising out of an alleged failure of the Company to comply with the rules and regulations promulgated under the Securities
Act, Exchange Act, and/or any rules and regulations of the NASDAQ Global Market (or any successor thereto) in connection with the issuance
of the New Warrants and the disclosures relating thereto in connection with the Company’s seeking of Stockholder Approval. To the
extent that the undertaking to indemnify, pay and hold harmless set forth in this Section (l) may be unenforceable because it violates
any law or public policy, the Company shall pay the maximum portion which it is permitted to pay under applicable law to the Holder in
satisfaction of indemnified matters under this Section (l). To the extent permitted by applicable law, the Company shall not assert,
and the Company hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this letter agreement,
the New Warrants or any undertaking or transaction contemplated hereby. All amounts due under this Section shall be payable upon demand.
The foregoing indemnity shall survive the payment of the Aggregate Exercise Price, the performance by the Company of its other obligations
hereunder and the termination or non-renewal of this letter agreement.

 

(m) Limitation
on Certain Issuances. Until the Company shall have obtained the Stockholder Approval, the Company shall not make any sale,
grant, or other disposition or issuance (or announce any sale, grant or other disposition or issuance) of (i) any Common Stock or
any rights, options, or warrants to purchase or securities convertible into or exercisable or exchangeable for Common Stock, or (ii)
any rights to reprice any Common Stock or any rights, options, or warrants to purchase or securities convertible into or exercisable
or exchangeable for Common Stock, if any such sale, grant, or other disposition or issuance would entitle any Person to acquire
shares of Common Stock for a consideration per share less than a price equal to the New Warrant Exercise Price in effect immediately
prior to such sale, grant, or other disposition or issuance or deemed sale, grant, or other disposition or issuance; provided,
however, that the foregoing provisions of this sentence shall not be applicable to any sale, grant, or other disposition or issuance
(or announcement of any sale, grant or other disposition or issuance) of any Excluded Securities (as defined in the New Warrants) or
any Excluded Securities (as defined in the Notes). The Holder shall be entitled to obtain injunctive relief against the Company to
preclude any issuance that would contravene the provisions of the immediately preceding sentence, which remedy shall be in addition
to any right to collect damages.

 

    	 

    	 

    

 

Annex
B – Form of New WarrantDocument

Exhibit 10.3

SEVENTEENTH AMENDMENT

SEVENTEENTH AMENDMENT, dated as of June 30, 2021 (this “Amendment”) to the Amended and Restated Master Purchase and Sale Agreement, dated as of March 6, 2017, as amended by the First Amendment, dated as of September 14, 2017, by the Second Amendment, dated as of November 3, 2017, by Omnibus Amendment No. 2 to Basic Documents (Ally-Carvana Flow), dated as of January 4, 2018, by the Third Amendment, dated as of November 2, 2018, by the Fourth Amendment, effective as of January 4, 2019, by the Fifth Amendment, effective as of March 6, 2019, by the Sixth Amendment, effective as of April 19, 2019, by the Seventh Amendment, effective as of March 19, 2020, by the Eighth Amendment, effective as of March 24, 2020, by the Ninth Amendment, effective as of April 29, 2020, by the Tenth Amendment, effective as of May 19, 2020, by the Eleventh Amendment, effective as of June 30, 2020, by the Twelfth Amendment, dated as of September 29, 2020, by the Thirteenth Amendment, dated as of December 30, 2020, by the Fourteenth Amendment, dated as of January 29, 2021, by the Fifteenth Amendment, dated as of March 19, 2021 and by the Sixteenth Amendment, effective as of May 1, 2021 (the “Master Purchase and Sale Agreement”), among CARVANA AUTO RECEIVABLES 2016-1 LLC, a Delaware limited liability company, as Transferor (the “Transferor”), ALLY BANK, a Utah chartered bank, as a Purchaser (in such capacity, a “Purchaser”), and ALLY FINANCIAL INC., a Delaware corporation, as a Purchaser (in such capacity, a “Purchaser” and, together with Ally Bank, the “Purchasers”).

WITNESSETH:

WHEREAS, the Transferors and the Purchasers are parties to the Master Purchase and Sale Agreement pursuant to which the Purchasers have agreed to purchase specified portfolios of receivables and related property from the Transferor; and

WHEREAS, the parties wish to amend the Master Purchase and Sale Agreement in certain respects;

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

SECTION I 
DEFINITIONS

Section 1.01    Defined Terms.  Unless otherwise defined herein, capitalized terms used in the above recitals and in this Amendment are defined in and shall have the respective meanings assigned to them in (or by reference in) Appendix A to the Master Purchase and Sale Agreement.

SECTION II
AMENDMENTS

Section 2.01    Amendments to Appendix A (Definitions).  Appendix A to the Master Purchase and Sale Agreement is hereby amended by:

(a)deleting the stricken text where such deletions appear below to clause (viii) of the “Eligible Receivable” definition:

“(viii)  (a) a Title Lien Nominee is named as the first lien holder on the Certificate of Title for the related Financed Vehicle, or if a new or replacement Certificate of Title is being or will be applied for with respect to such Financed Vehicle, documentation has been or will be submitted to obtain title thereto noting such Person as lien holder and such title is free and clear of all Liens and adverse claims that are equal or superior to the Lien of such Person and its assigns and (i) if the Certificate of Title has not been received, the Collateral Custodian will have received a copy of the title application within 45 days of inclusion as part of the Purchased Property and (ii) such Certificate of Title will be received within (x) 180 days, or (y) solely with respect to any Receivable included in a Receivables Pool that was purchased by the Purchasers during the time period from June 30, 2020 through December 31, 2020, 300 days, of inclusion as part of the Purchased Property or (b) in those states that permit electronic recordation of Liens, such Person is named as the first lien holder on the Certificate of Title for the related Financed Vehicle on the electronic Lien and title system of the applicable state, or the Servicer or the Originator has submitted for electronic recordation, by either a third-party service provider or the relevant state registrar of titles, for such Person to be named as the lien holder on the Certificate of Title on the electronic Lien and title system of the applicable state and (i) if a confirmation has not been received, the Collateral Custodian will have received a copy of the electronic submission within 45 days of inclusion as part of the Purchased Property and (ii) a confirmation document is received within (x) 180 days solely with respect to any Receivable included in a Receivables Pool that was purchased by the Purchasers during the time period from June 30, 2020 through December 31, 2020, 300 days, of inclusion as part of the Purchased Property and such title is free and clear of all Liens and adverse claims that are equal or superior to the Lien of such Person and its assigns;”

(b)inserting each of the following terms which are double underlined in the place where such term appears below to the “Warranty Payment” definition:

“Warranty Payment” means, with respect to a Warranty Receivable within a First Tier Receivables Pool or a Receivables Pool, as applicable, to be repurchased as of the last day of a Collection Period, a payment equal to the sum of (i) the product of (a) the Outstanding Principal Balance with respect to such Warranty Receivable as of such date and (b) the 

Receivables Purchase Rate, or solely with respect to any Receivable being repurchased pursuant to Section 7.2(ii) of the Master Sale Agreement or Section 8.2(ii) of the Master Purchase and Sale Agreement, 1, and (ii) the product of (x) the amount set forth in clause (i) above, (y) the APR of such Administrative Receivable and (z) (1) for a Flex Receivable prior to receipt of the first scheduled payment, the actual number of days from the related Cutoff Date through the repurchase date, divided by 360 or (2) (1) for a Flex Receivable prior to receipt of the first scheduled payment, the actual number of days from the related Cutoff Date through the repurchase date, divided by 360 or (2) in all other cases, 30/360.

(c)adding a new definition of “Action Plan Meeting Regarding Certificates of Title” in proper alphabetical order to read as follows:

“Action Plan Meeting Regarding Certificates of Title”, with respect to all of the Receivables in all Receivables Pools, has the meaning set forth in Section 3.16(g) of the Master Servicing Agreement.

(d)adding a new definition of “Action Plan Regarding Certificates of Title” in proper alphabetical order to read as follows:

“Action Plan Regarding Certificates of Title”, with respect to all of the Receivables in all Receivables Pools, has the meaning set forth in Section 3.16(h) of the Master Servicing Agreement.

and

(e)adding a new definition of “Seller Certificate of Title Review Trigger Event” in proper alphabetical order to read as follows:
                                   
 “Seller Certificate of Title Review Trigger Event” has the meaning set forth in Section 3.16(g) of the Master Servicing Agreement.”

Section 2.02    Amendment to Section 4.2(cc)(vi) (Security Interest in Financed Vehicle).  Section 5.2(cc)(vi) of the Master Purchase and Sale Agreement is hereby amended as set forth below by inserting each term thereof which is double underlined in the place where such term appears below:

“(vi)    Security Interest in Financed Vehicle.  Immediately prior to the sale, transfer and assignment thereof pursuant hereto and the related Second Step Receivables Assignment, each such Receivable with respect to the related Receivables Pool was secured by a valid security interest in the Financed Vehicle in favor of the Transferor as secured party, or all necessary and appropriate actions shall have been commenced that would result in the valid perfection of a first priority security interest in the Financed Vehicle favor of the Transferor as secured party.”

Section 2.03    Amendment to Section 7.14 (Indemnity).  Clause (c) of Section 7.14 of the Master Purchase and Sale Agreement is hereby amended as set forth below by deleting the stricken text in the place where such deletions appear below:

“(c)  The Transferor shall indemnify, defend and hold harmless the Indemnified Parties from and against any and all costs, expenses, losses, claims, damages and liabilities, including reasonable external legal fees and expenses (i) to the extent that such cost, expense, loss, claim, damage, or liability arose out of, resulted from or was imposed upon any such Indemnified Party through the negligence (except for reasonable errors in judgment), willful misfeasance or bad faith of the Transferor or agent in the performance of its duties under this Agreement or the other Basic Documents to which it is a party or by reason of a breach of its obligations or duties under this Agreement or the other Basic Documents to which it is a party, (ii) arising out of, or resulting from, any breach of any representation, warranty, covenant or obligation of the Transferor in this Agreement, the other Basic Documents to which it is a party or in any Schedule, Exhibit, written statement or certificate furnished by the Transferor pursuant to this Agreement or the other Basic Documents to which it is a party (in each case, as each such representation or warranty would read if all qualifications as to knowledge or materiality, including each reference to the defined term “Material Adverse Effect,” were deleted therefrom),  (iii) arising out of, or resulting from, any untrue statement of a material fact in any written information provided or delivered by the Transferor, or any Affiliate of the Transferor on its behalf, to the Purchasers pursuant to, for the purposes of, or in connection with, this Agreement or the other Basic Documents to which it is a party, (iv) arising out of, or resulting from, any action, suit, proceeding or claim or other litigation to the extent resulting from the actions or omissions of the Seller, the Transferor or any of their consolidated Affiliates or any of their respective agents, directors, officers, servants or employees, excluding, however, any costs, expenses, losses, claims, damages or liabilities resulting from the gross negligence, bad faith or willful misconduct on the part of any such Indemnified Party, and (v) resulting from any conduct or omission of the Seller or the Transferor that results in failure of either Purchaser to have a perfected and enforceable security interest against a related Obligor in the related Financed Vehicle, including any failure to obtain a first priority perfected security interest in the related Financed Vehicle in connection with the origination of the Receivable.  Indemnification under this Section 7.14 shall include reasonable fees and expenses of one external counsel and reasonable costs and expenses of litigation; provided, however, that the Transferor pursuant to this Section 7.14, the Seller pursuant to Section 5.4 of the Master Sale Agreement and the Servicer pursuant to Section 5.2 of the Master Servicing Agreement shall only be responsible collectively for reasonable fees and expenses of one external counsel.  If the Transferor has made any indemnity payments pursuant to this Section 7.14 and the recipient thereafter collects any of such amounts from others with respect to such claim, the recipient shall promptly repay such amounts collected to the Servicer, without interest.”

Section 2.04    Amendment to Section 8.2 (Repurchase of Receivables Upon Breach by the Transferor).  Section 8.2 of the Master Purchase and Sale Agreement is hereby amended as set forth below by deleting the stricken text in the place where such deletions appear below:

“Repurchase of Receivables Upon Breach by the Transferor.  Upon (i) the discovery of any breach of any representation or warranty as set forth in Section 5.2(cc) of this Agreement (and with respect to paragraphs (i)(B)(ii) and (x) therein, without giving effect to any knowledge requirements) or (ii) the Purchasers incurring any cost, expense, loss, claim, damage or liability resulting from any conduct or omission of the Seller or the Transferor that results in the failure of either Purchaser to have a perfected and enforceable security interest against a related Obligor in the related Financed Vehicle (including any failure to obtain a first priority perfected security interest in the related Financed Vehicle in connection with the origination of the Receivable), the Party discovering such breach shall give prompt written notice of the breach to the other Parties.  Such notice shall specify the reason for such ineligibility or breach and shall identify all Receivables that the party preparing such notice knows is so ineligible or in breach as of such date. Unless the breach described in clause (i) above has been cured in all material respects by the last day of the Collection Period immediately following the Collection Period during which such breach is discovered or notice of such breach is given and, with respect to the failure described in clause (ii) above, in each such circumstance, the Transferor shall repurchase, as of the last day of such Collection Period, any Receivable for which such representation or warranty was breached for the Warranty Payment.  In consideration of the repurchase of a Warranty Receivable, the Transferor shall remit, or cause to be remitted the Warranty Payment to the applicable Collection Account for distribution pursuant to Section 4.2 of the Master Servicing Agreement.  The obligation of the Transferor to repurchase any Receivable as to which a breach has occurred and is continuing, shall, if such obligation is fulfilled, constitute the sole remedy (except as provided in Section 7.14 of this Agreement) against the Transferor for such breach available to the Purchasers.”

SECTION III
MISCELLANEOUS

Section 3.01    Conditions to Effectiveness.  This Amendment shall become effective as of the date first written above upon the receipt of the following:

(a)a signed counterpart to this Amendment duly executed and delivered by each of the parties hereto; 

(b)a signed copy of the Fourteenth Amendment to the Master Sale Agreement, effective as of the date hereof, shall have been duly executed and delivered by  Carvana Auto Receivables 2016-1 LLC, Carvana, LLC, Ally Financial, and Ally Bank; and

(c)a signed copy of the Seventh Amendment to the Master Servicing Agreement, effective as of the date hereof, shall have been duly executed and delivered by  Bridgecrest Credit Company, LLC, Ally Financial, Ally Bank, DriveTime Automotive Group, Inc., and Carvana, LLC.

Section 3.02    Continuing Effect of the Master Purchase and Sale Agreement.  Except as specifically amended and modified above, the Master Purchase and Sale Agreement is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Purchasers under the Master Purchase and Sale Agreement, nor constitute a waiver of any provision of the Master Purchase and Sale Agreement.

Section 3.03    Representations and Warranties. The representations and warranties of  the Seller and the Transferor contained in the Basic Documents shall be true and correct in all material respects as of the effective date of this Amendment.

Section 3.04    Binding Effect.  This Amendment shall be binding upon and inure to the benefit of the Purchasers, the Servicer and their respective successors and permitted assigns.

Section 3.05    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. The words “execution”, “signed”, “signature”, and words of like import in any such amendment, waiver, certificate, agreement or document related to this Amendment shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the UCC.  In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. This Amendment contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings other than any fee letter contemplated hereby.

Section 3.06    GOVERNING LAW. SUBMISSION TO JURISDICTION, ETC.

(a)THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE 

PARTIES UNDER THIS AMENDMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

(b)THE TRANSFEROR AND THE PURCHASERS HEREBY MUTUALLY AGREE TO SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AMENDMENT, ANY OTHER BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH OF THE TRANSFEROR AND THE PURCHASERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(c)THE TRANSFEROR AND THE PURCHASERS EACH HEREBY WAIVES (TO EXTENT THAT IT MAY LAWFULLY DO SO) ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AMENDMENT. INSTEAD, ANY DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

Section 3.07    Effect of Headings. The section headings herein are for convenience  only and shall not affect the construction hereof.

[remainder of the page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

												
	CARVANA AUTO RECEIVABLES 2016-1 LLC,	
		as Transferor	
				
	By:	/s/ Paul Breaux	
		Name:	Paul Breaux	
		Title:	Vice President	
				
				
	ALLY BANK,	
		as Purchaser	
				
	By:	/s/ Scott M. Brobecker	
		Name:	Scott M. Brobecker	
		Title:	Authorized Representative	
				
				
	ALLY FINANCIAL INC.,	
		as Purchaser	
				
	By:	/s/ Thomas Elkins	
		Name:	Thomas Elkins	
		Title:	Authorized Representative	

 

[Signature page to Seventeenth Amendment to Amended and Restated Master Purchase and Sale Agreement]

						
	Agreed to and Accepted By:
		
	CARVANA, LLC,
		as Seller
		
		
	By:	/s/ Paul Breaux
	Name:	Paul Breaux
	Title:	Vice President
		

[Signature page to Seventeenth Amendment to Amended and Restated Master Purchase and Sale Agreement]

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