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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): October 14, 2022 (October 7, 2022)  

 

MULLEN AUTOMOTIVE INC.

_____________________________________________________________

(Exact name of registrant as specified in its charter)

 

Delaware 001-34887 86-3289406
(State or other jurisdiction of
incorporation)
(Commission File Number) (IRS Employer Identification No.)

 

1405 Pioneer Street, Brea, California 92821

(Address, including zip code, of principal executive offices)

 

Registrant’s telephone number, including area code (714) 613-1900  

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading
symbol(s)
Name of each exchange on which
registered
Common Stock, par value $0.001 MULN The Nasdaq Stock Market, LLC (Nasdaq Capital Market)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

As disclosed in that certain Form 8-K, filed on September 8, 2022, on September 7, 2022 (the “Closing Date”), Mullen Automotive Inc. (the “Company”) consummated the acquisition of 544,347 shares of common stock of Bollinger Motors, Inc., a Delaware corporation (“Bollinger Motors”), pursuant to (i) that Common Stock Purchase Agreement, dated September 7, 2022 (the “Primary Purchase Agreement”), by and among Bollinger Motors, the Company and Robert Bollinger (“Bollinger”), (ii) that Common Stock Purchase Agreement, dated September 7, 2022, by and between Bollinger and the Company (the “Bollinger Purchase Agreement”), (iii) that Common Stock Purchase Agreement, dated September 7, 2022, by and between John Masters and the Company (the “Masters Purchase Agreement”), and (iv) that Common Stock Purchase Agreement, dated September 7, 2022, by and between Seaport Global Asset Management SPV LLC – Series A and the Company (the “Seaport Purchase Agreement”, and together with the Primary Purchase Agreement, Bollinger Purchase Agreement and the Masters Purchase Agreement, the “Purchase Agreements”). In connection with the entry into the Purchase Agreements, the Company, Bollinger Motors, Bollinger and Continental Stock Tranfer and Trust Company, in its capacity as escrow agent (the “Escrow Agent”), entered into a Cash Escrow Agreement, dated September 7, 2022 (the “Cash Escrow Agreement”). Additionally, the Company, Bollinger Motors, Bollinger and Continental Stock Tranfer and Trust Company, in its capacity as transfer agent (the “Transfer Agent”), entered into a Stock Reservation Agreement, dated September 7, 2022 (the “Stock Reservation Agreement”).

 

On October 7, 2022, the parties entered into a First Amendment to each of the Primary Purchase Agreement, the Cash Escrow Agreement and the Stock Reservation Agreement.

 

Pursuant to the First Amendment to the Primary Purchase Agreement, dated October 7, 2022, by and among the Company, Bollinger Motors and Bollinger (the “Amendment to the Primary Purchase Agreement”), Section 1.3(c) of the Primary Purchase Agreement was replaced, such that after the closing, the Company will pay $32,000,000 to Bollinger Motors by making the following installment payments: (a) on or before the 30th day of November, 2022 $15,500,000 will be paid to Bollinger Motors (the “First Installment Payment”); (b) on or before the fifth business day of February 2023 $5,500,000 will be paid to Bollinger Motors; (c) on or before the fifth business day of May 2023 $5,500,000 will be paid to Bollinger Motors, and (d) on or before the fifth business day of August 2023 $5,500,000 (collectively, the “Installment Payments”). On or before the 30th day of November 2022, the Company shall deposit $16,500,000 with the Escrow Agent to be held in a cash escrow account (the “Additional Escrowed Cash”). The Additional Escrowed Cash shall be payable to Bollinger Motors in accordance with Section 2.1 of the Cash Escrow Agreement, as amended. The Additional Escrowed Cash shall be used to allow the Escrow Agent to automatically pay to Bollinger Motors the Installment Payments, together with the automatic release of the Cash Escrow Agreement, as reflected on the amended Schedule 2 to the Cash Escrow Agreement.

 

 

 

 

The Amendment to the Primary Purchase Agreement also amended and restated Section 1.3(d) of the Primary Purchase Agreement such that, immediately prior to the closing, the Company shall enter into the Stock Reservation Agreement and instruct the Transfer Agent to reserve for issuance, in the name of the Bollinger Motors, shares of common stock of the the Company valued at $38,400,000 (calculated using the five (5) trading day volume weighted average price, which shall be determined for any trading day (or any trading period) via a Bloomberg Terminal) (the “Reserved Shares”). In addition, the number of Reserved Shares shall be adjusted on a quarterly basis to ensure that the value of such Reserved Shares is at all times equal to at least one hundred twenty percent (120%) of the unpaid Installment Payments.  The Reserved Shares will act as security and collateral for the Installment Payments, in each case, subject to the terms and conditions set forth in the Stock Reservation Agreement, as amended.  In the event that the Company fails to timely pay the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Amount (as defined below), or timely pay the Deposit Payment Penalty Amount (as defined below), the Company shall instruct the Transfer Agent to reserve for issuance additional Reserved Shares with a value equal to 120% of the cash value of the First Installment Payment, Additional Escrowed Cash, Payment Default Amount, or Deposit Payment Penalty Amount, as applicable.

 

Additionally, the Amendment to the Primary Purchase Agreement added a new Section 1.3(f), such that in the event that the Company does not timely pay the First Installment Payment in-full in accordance with Section 1.3(c) and the Cash Escrow Agreement, the Company shall pay to Bollinger Motors an additional $1,500,000 in cash as a penalty (the “Payment Default Penalty Amount”) on the 30th day of November, 2022. In the event that the Company does not timely deposit the Additional Escrowed Cash with the Escrow Agent in accordance with Section 1.3(c), the Company shall pay to Bollinger Motors an additional $1,500,000 in cash as a penalty (the “Deposit Payment Penalty Amount”) on the 30th day of November, 2022. The failure of the Company to timely pay to Bollinger Motors the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Penalty Amount, or timely pay the Deposit Payment Penalty Amount shall each be deemed to be a Missed Installment Issuance pursuant to Section 3.1 of the Stock Reservation Agreement, as amended, and Bollinger and Bollinger Motors shall in any such case be entitled to the remedies under Section 3.1 with respect to a Missed Installment Issuance (including but not limited to having the Transfer Agent issue to Bollinger Motors such number of the Reserved Shares with a value equal to the cash value of the Missed Installment Issuance). In addition, any such failure shall be deemed to be a “Mullen Default” as defined in, and in accordance with, the Amended and Restated Stockholders Agreement of Bollinger Motors, by and among the Bollinger Motors, Bollinger, the Company and the other stockholders named therein. Each of the Payment Default Penalty Amount and the Deposit Payment Penalty Amount shall bear interest at a rate of 15% per year, based on the number of elapsed days and a 365 day year, until such amounts are paid in cash in full (inclusive of all accrued interest).

 

Lastly, the Amendment to the Primary Purchase Agreement provides that upon confirmation that the Additional Escrowed Cash has been deposited with the Escrow Agent and the First Installment Payment has been paid in accordance with Section 1.3(c) of the Primary Purchase Agreement, as amended, and the Escrow Agreement, the Company, Bollinger and Bollinger Motors shall instruct the Transfer Agent under the Stock Reservation Agreement, as amended, to eliminate the reservation of the Reserved Shares.

 

 

 

 

Pursuant to the First Amendment to the Cash Escrow Agreement, dated October 7, 2022, by and among the Company, Bollinger Motors, Bollinger and the Escrow Agent (the “Amendment to the Cash Escrow Agreement”), Section 1.1 of the Cash Escrow Agreement was amended to provide that: (i) on or prior to the 30th day of November, 2022, the Company will be depositing with the Escrow Agent an additional amount equal to $16,500,000 (the “Installment Escrow”), and such amount shall be held in accordance with the terms of the Escrow Agreement; (ii) the term Cash Escrow Amount shall be defined to include the Installment Escrow at such time as the Installment Escrow is deposited with the Escrow Agent; and (iii) upon receipt of the Installment Escrow, the Escrow Agent is instructed to pay the Installment Payments in accordance with Section 2.1 (and Schedule 2) of the Cash Escrow Agreement, as amended.

 

Additionally, the Amendment to the Cash Escrow Agreement deleted the Schedule 2 originally attached to the Cash Escrow Agreement, and replaced it in its entirety with a new Schedule 2 to propery reflect the revised Installment Payments.

 

Pursuant to the First Amendment to the Stock Reservation Agreement, dated October 7, 2022, by and among the Company, Bollinger Motors, Bollinger and the Transfer Agent (the “Amendment to the Stock Reservation Agreement”), Section 2.4 of the Stock Reservation Agreement was amended such that, notwithstanding anything contained in the Stock Reservation Agreement to the contrary, in no event shall the number of shares of the Company’s Common Stock to be issued pursuant to the Bollinger Purchase Agreement, the Masters Purchase Agreement and the Seaport Purchase Agreement (collectively, the “Secondary Purchase Agreements”) plus the number of the Reserved Shares, as adjusted from time pursuant to Section 2.4, exceed 19.99% of the Company’s issued and outstanding common stock immediately prior to the closing of the transactions contemplated in the Primary Purchase Agreement and the Secondary Purchase Agreements (the “Share Cap”). For the avoidance of doubt, the parties agree that any adjustments required to be made to ensure compliance with the immediately preceding sentence shall be made to the number of Reserved Shares only. In addition, if an upward adjustment of the Reserved Shares pursuant to Section 2.4 is ever limited because of the Share Cap (a “Share Cap Limitation Event”), then upon such Share Cap Limitation Event, the Company shall upward adjust the Reserved Shares in accordance with Section 2.4 to the Share Cap and shall be prohibited during the remainder of the term of the Stock Reservation Agreement, as amended, from any downward adjustment pursuant to Section 2.4 (unless such downward adjustment is required to meet the Share Cap at which point such downward adjustment will only be made to the number of Reserved Shares necessary to comply with the Share Cap, such required downward adjustment, the “Share Cap Compliance Adjustment”) until all Installment Payments have been made to Bollinger Motors. If a Share Cap Limitation Event has occurred, the parties agree that, after each Installment Payment is made, review of a potential adjustment pursuant to Section 2.4 will occur with each Installment Payment and that, in accordance with the immediately previous sentence and subject to any necessary Share Cap Compliance Adjustment, only an upward adjustment to the number of Reserved Shares up to the Share Cap would be permissible.

 

 

 

 

Additionally, the Amendment to the Stock Reservation Agreement provides that the parties to the Stock Reservation Agreement acknowledge and agree that, without limiting anything contained in the such agreement (including Section 3.1 thereof) and in addition to the provisions contained therein, the failure of the the Company to timely pay the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Amount, or timely pay the Deposit Payment Penalty Amount shall each be deemed to be a Missed Installment Issuance pursuant to Section 3.1 and Bollinger and Bollinger Motors shall in any such case be entitled to the remedies thereunder with respect to a Missed Installment Issuance (including but not limited to having the Transfer Agent issue to Bollinger Motors such number of the Reserved Shares with a value equal to the cash value of the Missed Installment Issuance). Furthermore, upon confirmation that the Additional Escrowed Cash has been deposited with the Escrow Agent and the First Installment Payment has been paid in accordance with Section 1.3(c) of the Primary Purchase Agreement, as amended, the Company, Bollinger and the Bollinger Motors shall instruct the Transfer Agent under the Stock Reservation Agreement, as amended, to eliminate the reservation of the Reserved Shares.

 

The foregoing descriptions of the Amendment to the Primary Purchase Agreement, the Amendment to the Cash Escrow Agreement and the Amendment to the Stock Reservation Agreement are a summary of their material terms, do not purport to be complete, and are qualified in their entirety by reference thereto, copies of which are filed as Exhibits 2.1, 2.2, and 2.3, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.

 

Item 9.01. Financial Statements and Exhibits

        

(d) Exhibits.

 

Exhibit
No.
  Description
2.1   First Amendment to the Common Stock Purchase Agreement, dated as of October 7, 2022, by and among Mullen Automotive Inc., Bollinger Motors, Inc., and Robert Bollinger.
2.2   First Amendment to the Cash Escrow Agreement, dated as of October 7, 2022, by and among Mullen Automotive Inc., Bollinger Motors, Inc., Robert Bollinger and Continental Stock Transfer & Trust Company.
2.3   First Amendment to the Stock Reservation Agreement, dated as of October 7, 2022, by and among Mullen Automotive Inc., Bollinger Motors, Inc., Robert Bollinger and Continental Stock Transfer & Trust Company.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MULLEN AUTOMOTIVE INC.
   
Date: October 14, 2022 By: /s/ David Michery
    David Michery
    Chief Executive Officer

 

 

 

 

Exhibit 2.1

 

FIRST AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT

 

THIS FIRST AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT (this “Amendment”) is entered into, as of this 7th day of October, 2022 (the “Effective Date”), by and among Bollinger Motors, Inc., a Delaware corporation (“Company”), Mullen Automotive, Inc. (the “Purchaser”) and Robert Bollinger in his individual capacity (“Bollinger”).

 

RECITALS

 

WHEREAS, the Purchaser, Company and Bollinger entered into a Common Stock Purchase Agreement, dated as of September 7, 2022 (“SPA”), pursuant to which Purchaser purchased 282,825 shares of the common stock of the Company (the “Company Common Stock”), representing 31.17% of the applicable equity ownership interests in the Company on a fully diluted basis (after giving effect to the conversion or exercise of any outstanding debt and equity securities or equivalents);

 

WHEREAS, pursuant to Section 1.3(b) of the SPA, immediately prior to the closing of the SPA, Purchaser, Company, Bollinger and Continental Stock Transfer & Trust Company, a New York corporation (the “Escrow Agent”) entered into the Cash Escrow Agreement, dated as of September 7, 2022 (the “Escrow Agreement”), pursuant to which the Purchaser deposited certain amounts with the Escrow Agent to be paid in accordance with the SPA and the Escrow Agreement;

 

WHEREAS, pursuant to Section 1.3(d) of the SPA, immediately prior to the closing of the SPA, Purchaser entered into the Stock Reservation Agreement, dated as of September 7, 2022 (the “Stock Reservation Agreement”), by and among, the Purchaser, the Company, Bollinger and the Continental Stock Transfer & Trust Company, a New York corporation (the “Transfer Agent”), pursuant to which the Purchaser instructed the Transfer Agent to reserve for issuance, in the name of the Company, shares of common stock of the Purchaser, par value $0.001 per share, pursuant to Section 1.3(d) of the SPA as collateral for payments to be made under Section 1.3(c) of the SPA; and

 

WHEREAS, it is intended that the Escrow Agreement and the Stock Reservation Agreement will be amended contemporaneously with the execution of this Amendment; and

 

WHEREAS, the parties hereto mutually desire to amend the SPA as herein set forth and are executing and delivering this Amendment for such purpose.

 

AGREEMENTS

 

NOW, THEREFORE, in consideration of the premises, the terms and conditions set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Recitals. The foregoing recitals are true and correct and are hereby incorporated into this Amendment for all purposes. Any capitalized term used in this Amendment and not defined herein shall have the meaning assigned to such term in the SPA.

 

 

 

 

2.             Replacement of Section 1.3(c). Section 1.3(c) of the SPA is deleted in its entirety and the following language is hereby inserted in lieu thereof:

 

(c)            Installment Payments. After the Closing, the Purchaser will pay $32,000,000 to the Company by making installments in accordance with the following schedule: (a) on or before the 30th day of November, 2022, $15,500,000 will be paid to the Company (the “First Installment Payment”); (b) on or before the fifth Business Day of February 2023 $5,500,000 will be paid to the Company; and (c) on or before the fifth Business Day of May 2023 $5,500,000 will be paid to the Company, and (d) on or before the fifth Business Day of August 2023 $5,500,000 (collectively, the “Installment Payments”). On or before the 30th day of November 2022, Purchaser shall deposit $16,500,000 with the Escrow Agent to be held in a cash escrow account (the “Additional Escrowed Cash”). The Additional Escrowed Cash shall be payable to the Company in accordance with this Section 2.1 of the Cash Escrow Agreement, as amended. For the avoidance of doubt the Additional Escrowed Cash shall be used to allow the Escrow Agent to automatically pay to the Company the Installment Payments, together with the automatic release of the Cash Escrow Account, as reflected on the amended Schedule 2 to the Cash Escrow Agreement.

 

3.             Restatement of Section 1.3(d). Section 1.3(d) of the SPA is deleted in its entirety and the following language is hereby inserted in lieu thereof:

 

(d)            Stock Reservation. Immediately prior to the Closing, the Purchaser shall enter into an agreement with the Transfer Agent, the Company and Bollinger in substantially the form attached hereto as Exhibit C (the “Stock Reservation Agreement”), whereby the Purchaser shall instruct the Transfer Agent to reserve for issuance, in the name of the Company, shares of common stock of the Purchaser valued at $38,400,000 (calculated using the five (5) trading day volume weighted average price, which shall be determined for any trading day (or any trading period) via a Bloomberg Terminal) (the “Reserved Shares”). The number of Reserved Shares shall be adjusted on a quarterly basis to ensure that the value of such Reserved Shares is at all times equal to at least one hundred twenty percent (120%) of the unpaid Installment Payments. The Reserved Shares will act as security and collateral for the Installment Payments, in each case, subject to the terms and conditions set forth in the Stock Reservation Agreement. In the event that the Purchaser fails to timely pay the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Amount (defined below), or timely pay the Deposit Payment Penalty Amount (defined below), the Purchaser shall instruct the Transfer Agent to reserve for issuance additional Reserved Shares with a value equal to 120% of the cash value of the First Installment Payment, Additional Escrowed Cash, Payment Default Amount, or Deposit Payment Penalty Amount, as applicable.

 

4.             Amendment of Section 1.3. The SPA is further Amended by inserting the new Section 1.3(f) after Section 1.3(e):

 

(f)            Failure of Payment Obligations. In the event that Purchaser does not timely pay the First Installment Payment in-full in accordance with Section 1.3(c) and the Cash Escrow Agreement, Purchaser shall pay to Company an additional $1,500,000 in cash as a penalty (the “Payment Default Penalty Amount”) on the 30th day of November, 2022. In the event that Purchaser does not timely deposit the Additional Escrowed Cash with the Escrow Agent in accordance with Section 1.3(c), Purchaser shall pay to Company an additional $1,500,000 in cash as a penalty (the “Deposit Payment Penalty Amount”) on the 30th day of November, 2022. The failure of the Purchaser to timely pay the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Penalty Amount, or timely pay the Deposit Payment Penalty Amount shall each be deemed to be a Missed Installment Issuance pursuant to Section 3.1 of the Stock Reservation Agreement and Bollinger and the Company shall in any such case be entitled to the remedies under said Section with respect to a Missed Installment Issuance (including but not limited to having the Transfer Agent issue to the Company such number of the Reserved Shares with a value equal to the cash value of the Missed Installment Issuance). In addition, any such failure shall be deemed to be a “Mullen Default” as defined in, and in accordance with, the Amended and Restated Stockholders Agreement of Company, by and among the Company, Bollinger, Purchaser and the other stockholders named therein. Each of the Payment Default Penalty Amount and the Deposit Payment Penalty Amount shall bear interest at a rate of 15% per year, based on the number of elapsed days and a 365 day year, until such amounts are paid in cash in full (inclusive of all accrued interest).

 

2

 

 

5.             Reservation of Shares. Upon confirmation that the Additional Escrowed Cash has been deposited with the Escrow Agent and the First Installment Payment has been paid in accordance with Section 1.3(c) and the Escrow Agreement, Purchaser, Bollinger and Company shall instruct Escrow the Transfer Agent under that certain Stock Reservation Agreement, dated as of September 7, 2022 (the “Stock Reservation Agreement”), by and among, the Purchaser, the Company, Bollinger and the Transfer Agent, to eliminate the reservation of the Reserved Shares (as defined in the Stock Reservation Agreement).

 

6.             Amendment. The parties agree that notwithstanding anything contained in the SPA to the contrary, the provisions set forth in this Amendment shall be deemed to be part of the SPA and shall supersede any contrary provisions in the SPA and prevail and control for all purposes. This Amendment embodies the entire agreement and understanding among the parties hereto in respect of the matters contemplated hereby and supersedes all prior or contemporaneous agreements and understandings of the parties, verbal or written, relating to the subject matter hereof. Except as modified herein, all of the other terms, covenants and conditions of the SPA are hereby ratified and affirmed and the same shall remain in full force and effect.

 

7.             Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. The signatures of the parties to this Amendment may be delivered by facsimile or as an attachment to an email (e.g., as a PDF file) and such delivery is effective delivery of such facsimile or email attachment.

 

8.             Reference to the SPA. On and after the date hereof, each reference in the SPA to “this Agreement,” “hereof,” “herein,” “herewith,” “hereunder” and words of similar import shall, unless otherwise stated, be construed to refer to the SPA as amended by this Amendment. No reference to this Amendment need be made in any instrument or document at any time referring to the SPA and a reference to the SPA in any such instrument or document shall be deemed to be a reference to the SPA as amended by this Amendment.

 

9.             Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. In any action between the parties arising out of or relating to this Amendment or any of the transactions contemplated by this Amendment: (a) each of the parties irrevocably and unconditionally consents and submits to the non-exclusive jurisdiction and venue of the state and federal courts located in the State of New York; and (b) if any such action is commenced in a state court, then, subject to applicable law, no party shall object to the removal of such action to any federal court located in the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

  THE COMPANY:
   
  BOLLINGER MOTORS, INC.
   
  By: /s/ Robert Bollinger
  Name: Robert Bollinger
  Title: Chief Executive Officer
   
  THE PURCHASER:
   
  MULLEN AUTOMOTIVE, INC.
   
  By: /s/ David Michery
  Name: David Michery
  Title: Chief Executive Officer
   
  BOLLINGER:
   
  /s/ Robert Bollinger
  Robert Bollinger

 

[Signature Page to the First Amendment to the Common Stock Purchase Agreement]

 

 

 

 

Exhibit 2.2

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE THAT THE REGISTRANT NORMALLY TREATS AS PRIVATE AND CONFIDENTIAL.

 

FIRST AMENDMENT TO CASH ESCROW AGREEMENT

 

THIS FIRST AMENDMENT TO CASH ESCROW AGREEMENT (this “Amendment”) is entered into, as of this 7th day of October, 2022 (the “Effective Date”), by and among Mullen Automotive, Inc. (the “Purchaser”); Bollinger Motors, Inc., a Delaware corporation (“Company”); Robert Bollinger in his individual capacity (“Bollinger”) and Continental Stock Transfer & Trust Company, a New York corporation (the “Escrow Agent”).

 

RECITALS

 

WHEREAS, Purchaser, Company, Bollinger and the Escrow Agent entered into a certain Cash Escrow Agreement, dated as of September 7, 2022 (the “Escrow Agreement”), pursuant to which the Purchaser deposited certain amounts with the Escrow Agent to be paid in accordance with the SPA and the Escrow Agreement;

 

WHEREAS, the SPA is being amended pursuant to a first amendment (the “SPA Amendment”) simultaneously with the execution of this Amendment to, among other things, provide that additional amounts will be placed into escrow with the Escrow Agent; and

 

WHEREAS, the parties hereto mutually desire to amend the Escrow Agreement as herein set forth and are executing and delivering this Amendment for such purpose.

 

AGREEMENTS

 

NOW, THEREFORE, in consideration of the premises, the terms and conditions set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.            Recitals. The foregoing recitals are true and correct and are hereby incorporated into this Amendment for all purposes. Any capitalized term used in this Amendment and not defined herein shall have the meaning assigned to such term in the Escrow Agreement.

 

2.            Amendment to Section 1.1. Section 1.1 of the Escrow Agreement is amended in all ways necessary to provide that: (i) on or prior to the 30th day of November, 2022, Purchaser will be depositing with the Escrow Agent an additional amount equal to $16,500,000 (the “Installment Escrow”), and such amount shall be held in accordance with the terms of the Escrow Agreement; (ii) the term Cash Escrow Amount shall be defined to include the Installment Escrow at such time as the Installment Escrow is deposited with the Escrow Agent; and (iii) upon receipt of the Installment Escrow, the Escrow Agent is hereby instructed to pay the Installment payments to in accordance with Section 2.1 (and Schedule 2) of the Escrow Agreement as amended hereby.

 

3.            Amendment of Schedule 2. Schedule 2 of the Escrow Agreement is deleted in its entirety and Schedule 2 attached hereto is hereby inserted in lieu thereof.

 

4.            Amendment. The parties agree that notwithstanding anything contained in the Escrow Agreement to the contrary, the provisions set forth in this Amendment shall be deemed to be part of the Escrow Agreement and shall supersede any contrary provisions in the Escrow Agreement and prevail and control for all purposes. This Amendment embodies the entire agreement and understanding among the parties hereto in respect of the matters contemplated hereby and supersedes all prior or contemporaneous agreements and understandings of the parties, verbal or written, relating to the subject matter hereof. Except as modified herein, all of the other terms, covenants and conditions of the Escrow Agreement are hereby ratified and affirmed and the same shall remain in full force and effect.

 

 

 

 

5.            Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. The signatures of the parties to this Amendment may be delivered by facsimile or as an attachment to an email (e.g., as a PDF file) and such delivery is effective delivery of such facsimile or email attachment.

 

6.            Reference to the Escrow Agreement. On and after the date hereof, each reference in the Escrow Agreement to “this Agreement,” “hereof,” “herein,” “herewith,” “hereunder” and words of similar import shall, unless otherwise stated, be construed to refer to the Escrow Agreement as amended by this Amendment. No reference to this Amendment need be made in any instrument or document at any time referring to the Escrow Agreement and a reference to the Escrow Agreement in any such instrument or document shall be deemed to be a reference to the Escrow Agreement as amended by this Amendment.

 

7.            Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. In any action between the parties arising out of or relating to this Amendment or any of the transactions contemplated by this Amendment: (a) each of the parties irrevocably and unconditionally consents and submits to the non-exclusive jurisdiction and venue of the state and federal courts located in the State of New York; and (b) if any such action is commenced in a state court, then, subject to applicable law, no party shall object to the removal of such action to any federal court located in the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

2

 

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

  THE COMPANY:
   
  BOLLINGER MOTORS, INC.
   
  By: /s/ Robert Bollinger
  Name: Robert Bollinger
  Title: Chief Executive Officer
   
  BOLLINGER
   
  /s/ Robert Bollinger
  Robert Bollinger
   
  THE PURCHASER:
   
  MULLEN AUTOMOTIVE, INC.
   
  By: /s/ David Michery
  Name: David Michery
  Title: Chief Executive Officer
   
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation
   
  By: /s/ Henry Farrell
  Name: Henry Farrell
  Title: Vice President

 

[Signature Page to the First Amendment to the Cash Escrow Agreement]

 

 

 

 

SCHEDULE 2

 

Payments Schedule

 

Payments Pursuant to the SPA

 

Company – Automatic Releases

 

$7,500,000 to be released on November 5, 2022

$13,000,000 to be released on February 5, 2023

$13,000,000 to be released on May 5, 2023

$13,000,000 to be released on August 5, 2023

 

W-9/8 for payee account has been provided to the Escrow

 

Payments Pursuant to the Secondary SPAs

 

Robert Bollinger ($16,059,637) – Automatic Releases

 

$4,014,909 to be released on November 5, 2022

$4,014,909 to be released on February 5, 2023

$4,014,909 to be released on May 5, 2023

$4,014,910 to be released on August 5, 2023

 

W-9/8 for payee account has been provided to the Escrow

 

Seaport Global Asset Management and its affiliates ($3,135,108) – Automatic Releases

 

$783,777 to be released on November 5, 20222

$783,777 to be released on February 5, 2023

$783,777 to be released on May 5, 2023

$783,777 to be released on August 5, 2023

 

Seaport Affiliates  11/5/2022   2/5/2023   5/5/2023   8/5/2023 
[***]                    

 

W-9/8 for payee account has been provided to the Escrow

 

John Masters $805,255– Automatic Releases

 

$201,314 to be released on November 5, 2022

$201,314 to be released on February 5, 2023

$201,314 to be released on May 5, 2023

$201,313 to be released on August 5, 2023

 

W-9/8 for payee account has been provided to the Escrow

 

 

 

 

Exhibit 2.3

 

FIRST AMENDMENT TO STOCK RESERVATION AGREEMENT

 

THIS FIRST AMENDMENT TO STOCK RESERVATION AGREEMENT (this “Amendment”) is entered into, as of this 7th day of October, 2022 (the “Effective Date”), by and among Mullen Automotive, Inc. (the “Purchaser”); Bollinger Motors, Inc., a Delaware corporation (“Company”); Robert Bollinger in his individual capacity (“Bollinger”) and Continental Stock Transfer & Trust Company, a New York corporation (the “Transfer Agent”).

 

RECITALS

 

WHEREAS, the Purchaser, Company and Bollinger entered into a Common Stock Purchase Agreement, dated as of September 7, 2022 (“SPA”), pursuant to which Purchaser purchased 282,825 shares of the common stock of the Company (the “Company Common Stock”), representing 31.17% of the applicable equity ownership interests in the Company on a fully diluted basis (after giving effect to the conversion or exercise of any outstanding debt and equity securities or equivalents);

 

WHEREAS, the SPA is being amended pursuant to a first amendment (the “SPA Amendment”) simultaneously with the execution of this Amendment to, among other things, provide that the Reserved Shares may be released from reservation upon additional circumstances.

 

WHEREAS pursuant to Section 1.3(d) of the SPA, immediately prior to the closing of the SPA, Purchaser entered into the Stock Reservation Agreement, dated as of September 7, 2022 (the “Stock Reservation Agreement”), by and among, the Purchaser, the Company, Bollinger and the Transfer Agent, pursuant to which the Purchaser instructed the Transfer Agent to reserve for issuance, in the name of the Company, shares of common stock of the Purchaser, par value $0.001 per share, pursuant to Section 1.3(d) of the SPA as collateral for payments to be made under Section 1.3(c) of the SPA; and

 

WHEREAS, the parties hereto mutually desire to amend the Stock Reservation Agreement as herein set forth and are executing and delivering this Amendment for such purpose.

 

AGREEMENTS

 

NOW, THEREFORE, in consideration of the premises, the terms and conditions set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.            Recitals. The foregoing recitals are true and correct and are hereby incorporated into this Amendment for all purposes. Any capitalized term used in this Amendment and not defined herein shall have the meaning assigned to such term in the Stock Reservation Agreement.

 

2.            Amendment to Section 2.4. The following text is hereby added after the last sentence in Section 2.4 of the Stock Reservation Agreement:

 

Notwithstanding anything contained in this Agreement to the contrary, in no event shall the number of shares of the Purchaser Stock to be issued pursuant to the Secondary SPAs plus the number of the Reserved Shares, as adjusted from time pursuant to this Section 2.4, exceed 19.99% of the Purchaser’s issued and outstanding common stock immediately prior to the closing of the transactions contemplated in the SPA and the Secondary SPAs (the “Share Cap”). For the avoidance of doubt, the parties agree that any adjustments required to be made to ensure compliance with the immediately preceding sentence shall be made to the number of Reserved Shares only. In addition, if an upward adjustment of the Reserved Shares pursuant to this Section 2.4 is ever limited because of the Share Cap (a “Share Cap Limitation Event”), then upon such Share Cap Limitation Event, Purchaser shall upward adjust the Reserved Shares in accordance with this Section 2.4 to the Share Cap and shall be prohibited during the remainder of the term of this Agreement from any downward adjustment pursuant to this Section 2.4 (unless such downward adjustment is required to meet the Share Cap at which point such downward adjustment will only be made to the number of Reserved Shares necessary to comply with the Share Cap, such required downward adjustment, the “Share Cap Compliance Adjustment”) until all Installment Payments have been made to the Company. If a Share Cap Limitation Event has occurred, the parties agree that, after each Installment Payment is made, review of a potential adjustment pursuant to this Section 2.4 will occur with each Installment Payment and that, in accordance with the immediately previous sentence and subject to any necessary Share Cap Compliance Adjustment, only an upward adjustment to the number of Reserved Shares up to the Share Cap would be permissible.

 

 

 

 

3.            Amendment to Section 3.1. The parties hereto acknowledge and agree that, without limiting anything contained in the Stock Reservation Agreement (including Section 3.1 thereof) and in addition to the provisions contained therein, the failure of the Purchaser to timely pay the First Installment Payment, timely deposit the Additional Escrowed Cash with the Escrow Agent, timely pay the Payment Default Amount, or timely pay the Deposit Payment Penalty Amount (as each such term is defined in the SPA Amendment) shall each be deemed to be a Missed Installment Issuance pursuant to said Section 3.1 and Bollinger and the Company shall in any such case be entitled to the remedies thereunder with respect to a Missed Installment Issuance (including but not limited to having the Transfer Agent issue to the Company such number of the Reserved Shares with a value equal to the cash value of the Missed Installment Issuance). Section 3.1 of the Stock Reservation Agreement is hereby amended in all such ways as may be necessary to give effect to this Section 3. Furthermore, upon confirmation that the Additional Escrowed Cash has been deposited with the Escrow Agent and the First Installment Payment has been paid in accordance with Section 1.3(c) of the SPA, as amended by the SPA Amendment, Purchaser, Bollinger and the Company shall instruct the Transfer Agent under that certain Stock Reservation Agreement, dated as of September 7, 2022 (the “Stock Reservation Agreement”), by and among, the Purchaser, the Company, Bollinger and the Transfer Agent, to eliminate the reservation of the Reserved Shares (as defined in the Stock Reservation Agreement).

 

4.            Amendment. The parties agree that notwithstanding anything contained in the Stock Reservation Agreement to the contrary, the provisions set forth in this Amendment shall be deemed to be part of the Stock Reservation Agreement and shall supersede any contrary provisions in the Stock Reservation Agreement and prevail and control for all purposes. This Amendment embodies the entire agreement and understanding among the parties hereto in respect of the matters contemplated hereby and supersedes all prior or contemporaneous agreements and understandings of the parties, verbal or written, relating to the subject matter hereof. Except as modified herein, all of the other terms, covenants and conditions of the Stock Reservation Agreement are hereby ratified and affirmed and the same shall remain in full force and effect.

 

5.            Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. The signatures of the parties to this Amendment may be delivered by facsimile or as an attachment to an email (e.g., as a PDF file) and such delivery is effective delivery of such facsimile or email attachment.

 

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6.            Reference to the Stock Reservation Agreement. On and after the date hereof, each reference in the Stock Reservation Agreement to “this Agreement,” “hereof,” “herein,” “herewith,” “hereunder” and words of similar import shall, unless otherwise stated, be construed to refer to the Stock Reservation Agreement as amended by this Amendment. No reference to this Amendment need be made in any instrument or document at any time referring to the Stock Reservation Agreement and a reference to the Stock Reservation Agreement in any such instrument or document shall be deemed to be a reference to the Stock Reservation Agreement as amended by this Amendment.

 

7.            Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. In any action between the parties arising out of or relating to this Amendment or any of the transactions contemplated by this Amendment: (a) each of the parties irrevocably and unconditionally consents and submits to the non-exclusive jurisdiction and venue of the state and federal courts located in the State of New York; and (b) if any such action is commenced in a state court, then, subject to applicable law, no party shall object to the removal of such action to any federal court located in the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

  THE COMPANY:
   
  BOLLINGER MOTORS, INC.
   
  By: /s/ Robert Bollinger
  Name: Robert Bollinger
  Title: Chief Executive Officer
   
  BOLLINGER
   
  /s/ Robert Bollinger
  Robert Bollinger
   
  THE PURCHASER:
   
  MULLEN AUTOMOTIVE, INC.
   
  By: /s/ David Michery
  Name: David Michery
  Title: Chief Executive Officer
   
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation
   
  By: /s/ Henry Farrell
  Name: Henry Farrell
  Title: Vice President

 

[Signature Page to the First Amendment to the Stock Reservation Agreement]