Document:

Exhibit 10.1

 

NOTE PURCHASE AGREEMENT

 

THIS NOTE PURCHASE AGREEMENT
(the “Agreement”) is made as of June 3, 2019 (the “Effective Date”), by and among Phunware,
Inc., a Delaware corporation (the “Company”), and the lenders named on the Schedule of Lenders attached
hereto as Schedule I (the “Schedule of Lenders”) (each, a “Lender,” and collectively,
the “Lenders”). Capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed to
them in Section 1.

 

WHEREAS, each
Lender intends to provide the Consideration (as defined below) to the Company as set forth opposite the name of each Lender on
the Schedule of Lenders; and

 

WHEREAS, the
parties wish to provide for the sale and issuance of the Notes (as defined below) in exchange for the provision by the Lenders
of the Consideration to the Company.

 

NOW, THEREFORE, the
parties hereby agree as follows:

 

1. Definitions.

 

(a) “Common
Stock” shall mean the Company’s Common Stock, $0.0001 par value per share.

 

(b) “Consideration”
shall mean the purchase price paid by each Lender pursuant to this Agreement. Consideration shall be paid in the form of US dollars;
provided, however, that the Company shall have the sole discretion to accept payment of the purchase price by each Lender in Cryptocurrency
in lieu of US dollars.

 

(c) “Conversion
Price” shall equal $11.50 per share (as may be adjusted for stock splits, stock dividends, combinations, subdivisions,
recapitalizations, or the like).

 

(d) “Conversion
Shares” shall mean shares of Common Stock.

 

(e) “Cryptocurrency”
means Bitcoin (BTC), Ether (ETH), or another type of cryptocurrency or other digital asset accepted by the Company
in its sole discretion as payment of the purchase price by each Lender.

 

(f) “Cryptocurrency
Payment Agreement” means the separate and additional agreement to be signed by the Company and each Lender from whom
the Company will accept payment of the purchase price in Cryptocurrency in lieu of US dollars.

 

(g) “First
Payment Date” shall mean September 30, 2019.

 

(h) “Interest
Payment Date” shall mean the last day of each calendar quarter.

 

(i) “Majority
Noteholders” shall mean the holders of a majority in interest of the aggregate principal amount of the Notes then outstanding.

 

     

     

    

 

(j) “Maturity
Date” shall mean, with respect to each Note issued under this Agreement, June 3, 2024.

 

(k) “Notes”
shall mean the promissory notes issued to the Lenders pursuant to Section 2 in the form attached hereto as Exhibit A.

 

(l) “Person”
shall mean any individual, corporation, partnership, trust, limited liability company, association, or other entity.

 

(m) “Principal
Market” shall mean the Nasdaq Capital Market; provided, however, that in the event that the Common Stock is ever listed
or traded on the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the NYSE Amex, OTCQB, or OTCQX
(or any successor to any of the foregoing), then the “Principal Market” shall mean such other market or exchange
on which the Company’s Common Stock is then listed or traded.

 

(n) “Securities
Act” shall mean the Securities Act of 1933, as amended.

 

(o) “Trading
Day” shall mean a day on which the Principal Market is open for trading.

 

2. Issuance
of Notes. In exchange for the Consideration paid by each Lender and upon the execution and delivery of the Note Purchase Agreement
by each Lender, the Company shall sell and issue to such Lender one or more Notes. Each Note shall have a principal equal to the
Consideration paid by such Lender for such Note as set forth in the Schedule of Lenders. Notwithstanding the foregoing, if the
Company elects to accept Consideration in the form of Cryptocurrency, the principal shall be expressed in US dollars and valued
in accordance with the Cryptocurrency Payment Agreement. Each Note shall be convertible into Conversion Shares pursuant to this
Section 2. The Company shall not issue Notes in excess of $20,000,000.00 in the aggregate unless otherwise agreed by the Majority
Noteholders.

 

2.1 Automatic
Conversion of Notes. In the event that (i) the closing sale price of the Common Stock on the Principal Market equals or exceeds
$17.25 per share for twenty (20) out of any thirty (30) consecutive Trading Days, and (ii) a registration statement under the Securities
Act is then in effect to cover the disposition of the Conversion Shares, then the outstanding principal and unpaid accrued interest
on each Note shall be automatically converted into the requisite number of Conversion Shares. The requisite number of Conversion
Shares to be issued upon such conversion of a Note shall be equal to the quotient obtained by dividing (x) the outstanding
principal and unpaid accrued interest on such Note as of the date of such conversion by (y) the Conversion Price, which quotient
shall be rounded down to the nearest whole share.

 

2.2 Optional
Conversion of Notes. At any time at the election of the holder, such holder’s Note will convert into that number of Conversion
Shares equal to the quotient obtained by dividing (x) the outstanding principal and unpaid accrued interest on such Note as
of the date of such conversion by (y) the Conversion Price, which quotient shall be rounded down to the nearest whole share.

 

    2

     

    

 

2.3 Restriction
on Conversion. Notwithstanding anything to the contrary set forth in Section 2.1 or Section 2.2, no conversion shall be effected
under this Section 2 at any time prior to the Final Closing without the Company’s prior written consent.

 

2.4 Mechanics
of Conversion. The Company shall not be required to issue or deliver any Conversion Shares to a holder of a Note until such
holder has surrendered such Note to the Company or has provided an affidavit of loss reasonably acceptable to the Company.

 

2.5 Authorized
Stock. The Company shall use its best efforts to authorize a sufficient number of shares of Common Stock for issuance pursuant
to conversion under this Section 2.

 

2.6 Prepayment;
Pro Rata Payment. Prepayment of principal, together with unpaid accrued interest, may be made at any time, without penalty,
at the Company’s option. The Notes shall be pari passu in right of payment with respect to each other. All payments to the
Lenders under the Notes shall be made on a pro rata basis among the Lenders based upon the aggregate principal and unpaid accrued
interest on the Notes outstanding immediately prior to any such payments.

 

3. Closing
Mechanics.

 

3.1 Initial
Closing. The initial closing of the sale of the Notes in return for the Consideration paid by each Lender (the “Initial
Closing”) will take place remotely via the exchange of documents and signatures on the date of this Agreement, or at
such other time and place as the Company shall designate. At the Initial Closing and each Subsequent Closing, each Lender will
deliver the Consideration to the Company and the Company will deliver to each Lender one or more executed Notes in return for the
respective Consideration provided to the Company.

 

3.2 Subsequent
Closing. In any subsequent closing (each, a “Subsequent Closing”), the Company may sell additional Notes
subject to the terms of this Agreement to any Lender as it shall select; provided that such sale will not take place later than
June 2, 2020, unless otherwise agreed by the Majority Noteholders. Any subsequent purchaser of Notes shall become a party to, and
shall be entitled to receive Notes in accordance with, this Agreement. Each Subsequent Closing shall take place at such locations
and at such times as shall be mutually agreed upon orally or in writing by the Company and such purchasers of additional Notes.
The Schedule of Lenders will be updated to reflect the additional Notes purchased at each Subsequent Closing and the parties purchasing
such additional Notes. The last Subsequent Closing effected under this Agreement shall be referred to herein as the “Final
Closing.”

 

4. Representations
and Warranties of the Company. In connection with the transactions provided for herein, the Company hereby represents and warrants
to the Lenders that the following representations and warranties are true and complete as of the date of the applicable Closing.

 

4.1 Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted. The
Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect on the Company’s business or properties.

 

    3

     

    

 

4.2 Authorization.
Except for the authorization and issuance of any Conversion Shares issued or issuable pursuant to Section 2, the Company and its
directors, officers and stockholders have taken all corporate action required for the authorization, execution and delivery of
this Agreement and the Notes. This Agreement and the Notes, when executed and delivered by the Company, shall constitute valid
and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally, or laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

 

4.3 Compliance
with Other Instruments. Neither the authorization, execution and delivery of this Agreement, nor the authorization, issuance,
execution and delivery of the Notes, shall constitute or result in a material default or violation of any law or regulation applicable
to the Company or any material term or provision of the Company’s Certificate of Incorporation or Bylaws or any material
agreement or instrument by which it is bound or to which its properties or assets are subject.

 

4.4 Valid
Issuance of Stock. The Conversion Shares to be issued, sold and delivered upon conversion of the Notes shall be duly authorized
and validly issued, fully paid and nonassessable and, subject to the truth and correctness of the representations and warranties
of the Lenders in Section 5, shall be issued in compliance with all applicable federal and state securities laws.

 

5. Representations
and Warranties of the Lenders. In connection with the transactions provided for
herein, each Lender hereby represents and warrants to the Company, severally and not jointly, as of the date of the applicable
Closing that:

 

5.1 Authorization.
This Agreement constitutes such Lender’s valid and legally binding obligation, enforceable in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization, or similar laws relating to or affecting the enforcement
of creditors’ rights and laws relating to the availability of specific performance, injunctive relief or other equitable
remedies. Each Lender represents that it has full power and authority to enter into this Agreement.

 

5.2 Purchase Entirely
for Own Account. Each Lender acknowledges that this Agreement is made with such
Lender in reliance upon such Lender’s representations and warranties to the Company set forth in this Agreement, including,
without limitation, such Lender’s representation to the Company that the Note or Notes and any Conversion Shares issued
to such Lender pursuant to Section 2 (collectively, the “Securities”) will be acquired for investment for such
Lender’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and that such Lender has no present intention of selling, granting any participation in or otherwise distributing the same. By
executing this Agreement, each Lender further represents that such Lender does not have any contract, undertaking, agreement or
arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to the
Securities.

 

    4

     

    

 

5.3 Disclosure of
Information. Each Lender acknowledges that it has had the opportunity to review
the reports, schedules, forms, statements and other documents filed by the Company with the SEC (the “SEC Reports”)
and that the SEC Reports constitute all of the information such Lender considers necessary or appropriate for deciding whether
to acquire the Securities. Each Lender further represents that it has had an opportunity to ask questions and receive answers
from the Company regarding the terms of the offering of the Securities. Each Lender hereby represents, warrants, and certifies
to the Company as follows: (i) that such Lender became interested in the offering of the Notes through a substantive, pre-existing
relationship with the Company or through direct contact by the Company or its agents outside of the Company’s public offering
effort and not as a result of the Company’s pending registration statement; and (ii) that such Lender did not independently
contact the Company as a result of the Company’s pending registration statement. Additionally, each Lender hereby represents
and warrants to the Company that none of such Lender or any of such Lender’s covered persons has been convicted of any of
the felonies or misdemeanors, and that none of such persons has been subject to any of the orders, judgments, decrees or other
conditions, set forth in Rule 506(d) of Regulation D promulgated by the SEC. Each Lender covenants to provide immediate written
notice to the Company in the event such Lender or any of such Lender’s covered persons is convicted of any felony or misdemeanor
or becomes subject to any order, judgment, decree or other condition set forth in Rule 506(d) of Regulation D promulgated by the
SEC, as may be amended from time to time. Each Lender covenants to provide such information to the Company as the Company may
reasonably request in order to comply with the disclosure obligations set forth in Rule 506(e) of Regulation D promulgated by
the SEC, as may be amended from time to time.

 

5.4 Investment Experience.
Each Lender is an investor in securities of companies in the growth stage and acknowledges that it is able to fend for itself,
can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the Securities. If other than an individual, each Lender also
represents it has not been organized solely for the purpose of acquiring the Securities.

 

5.5 Accredited Investor.
Each Lender is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act, as presently in effect.

 

5.6 Restricted Securities.
Each Lender understands that the Securities are characterized as “restricted securities” under the federal securities
laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such
laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited
circumstances. Each Lender represents that it is familiar with Rule 144 under the Act, as presently in effect, and understands
the resale limitations imposed thereby and by the Securities Act as a whole.

 

    5

     

    

 

5.7 Further Limitations
on Disposition. Without in any way limiting the representations and warranties
set forth above, each Lender further agrees not to make any disposition of all or any portion of the Securities unless and until
the transferee of such disposition has agreed in writing for the benefit of the Company to be bound by this Section 5 and:

 

(a) there
is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is
made in accordance with such registration statement; or

 

(b) (i) the
Lender has notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition and (ii) if reasonably requested by the Company, the Lender shall have furnished the Company
with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such
shares under the Securities Act.

 

5.8 Legends.
It is understood that the Securities may bear the following legend:

 

“THESE SECURITIES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT OR A SALE IN COMPLIANCE WITH RULE 144 UNDER
THE ACT.”

 

5.9 Residence.
If the Lender is an individual, such Lender resides in the state or province identified in the address shown on such Lender’s
signature page hereto. If the Lender is a partnership, corporation, limited liability company, or other entity, such Lender’s
principal place of business is located in the state or province identified in the address shown on such Lender’s signature
page hereto.

 

5.10 Accuracy
of Information. All of the information provided by the Lender pursuant to this Agreement, the Cryptocurrency Payment Agreement
(if applicable), and all attachments, exhibits and other documents related hereto and thereto is true, correct, and complete in
all respects.

 

6. Miscellaneous.

 

6.1 Successors
and Assigns. Except as otherwise provided herein, the terms of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties; provided, however, that, except in connection with an
assignment by operation of law by the Company to the acquirer of the Company, the Company may not assign its obligations under
this Agreement or under any Note without the written consent of the Majority Noteholders. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. For
the avoidance of doubt, a transaction or series of related transactions in which a person, or a group of related persons, acquires
from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the
Company shall not constitute an assignment by the Company hereunder.

 

    6

     

    

 

6.2 Governing
Law. This Agreement and the Notes shall be governed by and construed under the laws of the State of Delaware as applied to
agreements among Delaware residents, made and to be performed entirely within the State of Delaware.

 

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

 

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

 

6.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

6.5 Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (i) upon
personal delivery to 

the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of
the recipient, if not so confirmed, then on the next business day, (iii) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the
respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with
this Section 6.5):

 

If to the Company:

 

Phunware, Inc.

7800 Shoal Creek
Boulevard, Suite 230-S

Austin, Texas
78757

Attention: CFO

 

If to Lenders:

 

At the respective addresses shown on Schedule I.

 

    7

     

    

 

6.6 Finder’s
Fee. Each party represents that it neither is nor will be obligated for any finder’s fee or commission in connection
with this transaction. Each Lender agrees to indemnify and to hold harmless the Company from any liability for any commission or
compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted
liability) for which such Lender or any of its officers, partners, employees or representatives is responsible. The Company agrees
to indemnify and hold harmless the Lenders from any liability for any commission or compensation in the nature of a finder’s
fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

 

6.7 Expenses.
If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled. The Company shall pay all costs and expenses that it incurs with respect to the negotiation, execution,
delivery and performance of this Agreement.

 

6.8 Entire
Agreement. This Agreement (including the Exhibits hereto), the Notes and, with respect to each Lender from whom the Company
will accept payment of the purchase price in Cryptocurrency in lieu of US dollars, the Cryptocurrency Payment Agreement, constitute
the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written
or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

 

6.9 Amendments
and Waivers. Any term of this Agreement or the Notes may be amended and the observance of any term of this Agreement or the
Notes may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written
consent of the Company and the Majority Noteholders. Any waiver or amendment effected in accordance with this Section shall be
binding upon each party to this Agreement and any holder of any Note purchased under this Agreement at the time outstanding and
each future holder of all such Notes. Each Lender acknowledges that, by the operation of this Section 6.9, the Majority Noteholders
have the right and power to diminish or eliminate all rights of such Lender under this Agreement and each Note issued to such Lender.

 

6.10 Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

6.11 Exculpation
Among Lenders. Each Lender acknowledges that it is not relying upon any Person or stockholder, other than the Company and its
directors and officers in their capacities as such, in making its investment or decision to invest in the Company. Each Lender
agrees that no other Lender nor the respective controlling Persons, directors, officers, partners, agents, stockholders or employees
of any other Lender shall be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection
with the purchase and sale of the Notes. The Company’s agreements with each of the Lenders are separate agreements, and the
sales of the Notes to each of the Lenders are separate sales.

 

6.12 Specific
Enforcement. Each party acknowledges and agrees that the Company will be irreparably damaged in the event any of the provisions
of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly,
it is agreed that the Company shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement
of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject
matter jurisdiction.

 

(signature page follows)

 

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IN WITNESS WHEREOF,
the Company has executed this Agreement as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	PHUNWARE, INC.
	 	 	 
	 	By:	 
	 	 	Alan S. Knitowski, Chief Executive Officer

 

Signature
Page to Phunware, Inc.

Note
Purchase Agreement

 

     

     

    

 

IN WITNESS WHEREOF,
each Lender has executed this Agreement as of the date first written above.

 

	 	 	 LENDERS:
	 	 	 
	 	 	If individual:
	 	 	 	 
	 	 	 
	 	 	(signature)
	 	 	 	 
	 	 	Print Name: 	 
	 	 	 
	 	 	If
entity:
	 	 	 	 
	 	 	 
	 	 	(name of entity)
	 	 	 	 
	 	 	By: 	 
	 	 	Name: 	 
	 	 	Title: 	                                      
	 	 	 	 
	 	Address:	
	 	 	
	 	 	

 

Signature
Page to Phunware, Inc.

Note
Purchase Agreement

 

     

     

    

 

SCHEDULE I

 

Schedule of Lenders

 

	Lender Name and Address	 	Consideration and Principal Amount of Note	 
		 	 	       	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	TOTAL	 	 	 	 

 

     

     

    

 

EXHIBIT A

 

Form of NoteExhibit 10.2

 

CRYPTOCURRENCY PAYMENT AGREEMENT

 

THIS CRYPTOCURRENCY
PAYMENT AGREEMENT (the “Agreement”) is made as of ________ __, 2019 (the “Effective Date”),
by and among Phunware, Inc., a Delaware corporation (the “Company”), and the persons named on Schedule
I attached hereto (the “Schedule”) (each, a “Named Lender,” and collectively, the “Named
Lenders”). Capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed to them in that
certain Note Purchase Agreement by and among the Company, the Named Lenders, and the other Lenders identified therein, dated as
of June 3, 2019 (the “Note Purchase Agreement”).

 

WHEREAS, the
Note Purchase Agreement provides that, if the Company elects to accept Consideration in the form of Cryptocurrency, the principal
shall be expressed in US dollars (“USD”) and valued in accordance with this Agreement; and

 

WHEREAS, each
Named Lender intends to provide the Consideration to the Company in the form of Cryptocurrency as set forth opposite the name of
such Named Lender on the Schedule.

 

NOW, THEREFORE, the
parties hereby agree as follows:

 

1. Transfer
of Cryptocurrency. If the Company elects to accept Consideration in the form of Cryptocurrency, as of the applicable Initial
Closing or Subsequent Closing (as the case may be), each Named Lender hereby assigns and transfers unto the Company all of such
Named Lender’s right, title and interest of every kind, nature and description in the Consideration in the form of Cryptocurrency
owned by such Named Lender.

 

2. Additional
Closing Mechanics. The payment procedures, exchange rate methodology and other provisions set forth below shall apply to each
Named Lender, severally and not jointly.

 

2.1 Timing
of Payment; Company Wallet. Unless agreed otherwise with the Company, payment shall be made by each Named Lender’s delivery
of Cryptocurrency to the Company’s Wallet at or before 5:00 p.m. (eastern time) on the date of the Initial Closing or Subsequent
Closing, as the case may be (in each case free and clear of liens and other encumbrances). The Company’s “Wallet”
means the location, wallet, address, account or storage device designated by the Company in a written notice given to each Named
Lender as the location to which Cryptocurrency to be delivered to the Company pursuant hereto should be sent.

 

2.2 
Exchange Rate. The USD value of Consideration in the form of Cryptocurrency to which a Named Lender will be entitled under
the Agreement will be determined as follows, or as otherwise agreed with the Company. Consideration received by the Company shall
be converted into USD based upon the daily exchange rate for such Cryptocurrency to provide the USD equivalent Consideration. The
daily exchange rate shall be the last traded price for such Cryptocurrency to USD exchange transaction, as reflected on www.gdax.com
(GDAX) closest to 5:00:00, meaning the last trade closest to and including 5:00:00p.m. (ET) (but not after 5:00:00) on the date
of the Initial Closing or Subsequent Closing, as applicable.

 

     

     

    

 

2.3 Acceptance
by the Company; Completion of Transaction. Each Named Lender acknowledges that transfer and payment of Consideration
in the form of Cryptocurrency is only complete once the Cryptocurrency has been successfully delivered to the Company’s Wallet
and the Company has accepted the Cryptocurrency as Consideration as of the Initial Closing or Subsequent Closing. Upon acceptance,
and once the USD equivalent Consideration is determined, the Company will provide the applicable Named Lender with a confirmation
email, which substantiates the Consideration in the form of Cryptocurrency.

 

2.4 Effect
of Transfer. Each Named Lender further acknowledges that, once such Named Lender transfers the Cryptocurrency and the applicable
Initial Closing or Subsequent Closing occurs, the Company acquires the entire economic interest in the Cryptocurrency and the Cryptocurrency
is exclusively owned and controlled by the Company.

 

2.5 Additional
Information and Documentation. Upon request by the Company, the Named Lender may be required to provide additional information
and documentation regarding the Cryptocurrency to the Company or its designated service provider, including but not limited to
the purchase source and date and time of acquisition.

 

2.6 Non-Acceptance
by the Company. Should the Company determine, in its sole discretion, that it is unable to accept Consideration in the form
of Cryptocurrency, each Named Lender acknowledges that the Company will return the amount of Cryptocurrency contributed by such
Named Lender to such Named Lender’s wallet, if the Company has not yet converted the Cryptocurrency to USD. If the Company
determines, in its sole discretion, that it cannot accept the Consideration in the form of Cryptocurrency after the Company has
converted the Cryptocurrency to USD, the Company will use the proceeds of the conversion to buy Cryptocurrency with the USD proceeds
from the sale of the contributed Cryptocurrency. In any such instance, the returned Cryptocurrency may not be the exact amount
of Cryptocurrency that the Named Lender originally contributed.

 

3. Representations
and Warranties of each Named Lender. In connection with the transactions provided for herein, each Named Lender hereby represents
and warrants to the Company, severally and not jointly, as of the date of the applicable Initial Closing or Subsequent Closing
(as the case may be) that:

 

3.1 Authorization.
Each Named Lender agrees that any Consideration in the form of Cryptocurrency, once accepted by the Company, represents an irrevocable
payment to the Company and is not refundable to the Named Lender (except in the event that the Company determines, in its sole
discretion, that it cannot accept the Consideration in the form of Cryptocurrency).

 

3.2 Volatility
of Cryptocurrency. Each Named Lender acknowledges that the Cryptocurrency may be volatile, and that the Cryptocurrency received
by the Company and/or the funding amount (or the amount of Cryptocurrency returned to the Named Lender in the event that the Company
determines, in its sole discretion, that it cannot accept the Consideration in the form of Cryptocurrency after it has been converted
into USD) may be different (higher or lower) from the fair market value or other measure of the value of the Cryptocurrency at
the time of the payment to the Company.

 

    2

     

    

 

3.3 Ownership
of Cryptocurrency. Each Named Lender has, or will have, at the time of (and immediately prior to) the applicable Initial Closing
or Subsequent Closing (as the case may be), (i) the right to assign such Cryptocurrency, (ii) sole legal ownership of such Cryptocurrency,
free and clear of all liens, and (iii) sole legal ownership of all applicable funding asset addresses and custodial accounts.

 

3.4 No
Unlawful Sources. Each Named Lender agrees that, to the best of his or her knowledge, such Named Lender’s Consideration
in the form of Cryptocurrency is not derived from unlawful sources or activities. Each Named Lender acknowledges that, due to anti-money
laundering requirements, the Company may require additional documentation before the Company accepts Consideration in the form
of Cryptocurrency. Please be aware that a Named Lender’s failure to provide or a delay in providing any such documentation
may delay acceptance by the Company or cause such Named Lender’s Consideration in the form of Cryptocurrency to be rejected
entirely.

 

3.5 Certain
AML Compliance Obligations. None of such Named Lender or, to the knowledge of such Named Lender, any director, officer, employee,
agent, or affiliate of such Named Lender, is an individual or entity (“person”) that is, or is owned or controlled
by persons that are: (i) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office
of Foreign Assets, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury,
or other relevant sanctions authority (collectively, “Sanctions”), or (ii) located, organized or resident in
a country or territory that is, or whose government is, the subject of Sanctions. Each Named Lender (and, if such Named Lender
is an entity, its directors, officers and employees) and, to the knowledge of such Named Lender, the agents of such Named Lender,
are in compliance with all applicable Sanctions and with the Foreign Corrupt Practices Act of 1977 and the rules and regulations
thereunder (the “FCPA”) and any other applicable anti-corruption law.

 

3.6 No
Tax Advice. Such Named Lender has not relied on the Company or any director, officer, employee, agent, or affiliate of the
Company for any tax or accounting advice concerning this Agreement, the Note Purchase Agreement, or the Note, and has made its
own determination as to the tax and accounting treatment of the transactions contemplated hereby and thereby. The Company does
not provide legal or tax advice.

 

4. Miscellaneous.

 

4.1 Further
Assurances. In connection with this Agreement, and all transactions contemplated by this Agreement, each Named Lender agrees
to execute and deliver such additional documents and instruments and to perform additional acts as may be necessary and appropriate
to effectuate, carry out and perform the terms of this Agreement and such transactions.

 

4.2 Indemnification.
Each Named Lender, severally and not jointly, agrees to indemnify and hold harmless the Company and its affiliates, and the officers,
directors, employees, and agents of any of the foregoing (together, the “Indemnified Persons”), from and against
any and all loss, damage, liability or expense, including reasonable costs and attorneys’ fees and disbursements, which an
Indemnified Person may incur by reason of, or in connection with, any representation or warranty made in this Agreement not having
been true, correct and complete when made or any misrepresentation made by such Named Lender or any failure by such Named Lender
to fulfill any of the covenants or agreements set forth in this Agreement or in any other document provided by the Named Lender
to the Company.

 

    3

     

    

 

4.3 Incorporation
by Reference. Each party acknowledges and agrees that the provisions of Section 6 (Miscellaneous) of the Note Purchase Agreement
are incorporated into this Agreement by reference, mutatis mutandis, except that Sections 6.1 (Successors and Assigns) and
6.9 (Amendments and Waivers) of the Note Purchase Agreement shall not be incorporated by reference.

 

4.4 Successors
and Assigns. Except as otherwise provided herein, the terms of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties.

 

4.5 Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the
holders of a majority in interest of the aggregate principal amount of the Notes then outstanding and held by the Named Lenders
(the “Majority Named Lenders”). Each Named Lender acknowledges that, by the operation of this Section 4.5, the
Majority Named Lenders have the right and power to diminish or eliminate all rights of such Named Lender under this Agreement.

 

4.6 Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

(signature page follows)

 

    4

     

    

 

IN WITNESS WHEREOF,
the Company has executed this Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	PHUNWARE, INC.
	 	 	 
	 	By:	 
	 	 	Alan S. Knitowski, Chief Executive Officer

 

Signature
Page to Phunware, Inc.

Cryptocurrency Payment
Agreement

 

     

     

    

 

IN WITNESS WHEREOF,
each Named Lender has executed this Agreement as of the date first written above.

 

	 	 	NAMED
    LENDERS:
	 	 	 
	 	 	If
    individual:
	 	 	 	 
	 	 	 
	 	 	(signature)
	 	 	 	 
	 	 	Print Name: 	 
	 	 	 
	 	 	If
    entity:
	 	 	 	 
	 	 	 
	 	 	(name
    of entity)
	 	 	 	 
	 	 	By:
    	 
	 	 	Name:
    	 
	 	 	Title:
    	                                      
	 	 	 	 
	 	Address:	
	 	 	
	 	 	

 

Signature
Page to Phunware, Inc.

Cryptocurrency Payment
Agreement

 

     

     

    

 

SCHEDULE I

 

Schedule of Named Lenders

 

	Named Lender Name and Address	 	Consideration
 (Type of Cryptocurrency)
	 	Principal Amount of Note
 (in US dollars)

		 		 	
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	TOTAL

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