Item
1.01 Entry into a Material Definitive Agreement
Securities
Purchase Agreement, Promissory Note, and Common Stock Purchase Warrant.
Car
Charging Group, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase Agreement dated October
7, 2016 (the “Purchase Agreement”) with JMJ Financial, a Nevada sole proprietorship (“JMJ,” and together
with the Company, the “Parties”). In accordance with its terms, the Purchase Agreement became effective upon (i) execution
by the Parties of the Purchase Agreement, Note, the Warrant, and (ii) delivery of an initial advance pursuant to the Note of $500,000,
which occurred on October 13, 2016. The Note and Warrant were issued on October 13, 2016. Pursuant to the Purchase Agreement,
JMJ purchased from the Company (i) a Promissory Note in the aggregate principal amount of up to $3,725,000 (the “Note”)
due and payable on the earlier of February 15, 2017 or if the Listing Approval End Date (as defined in the Note) is February 28,
2017, March 31, 2017, or the third business day after the closing of the Public Offering (as defined in the Purchase Agreement),
and (ii) a Common Stock Purchase Warrant (the “Warrant”) to purchase 714,285 shares of the Company's common stock
(“Common Stock”) at an exercise price per share equal to the lesser of (i) 80% of the per share price of the Common
Stock in the Company's contemplated Public Offering, (ii) $0.70 per share, (iii) 80% of the unit price in the Public Offering
(if applicable), (iv) the exercise price of any warrants issued in the Public Offering, or (v) the lowest conversion price, exercise
price, or exchange price, of any security issued by the Company that is outstanding on October 13, 2016. Additionally, pursuant
to the Purchase Agreement, on the fifth (5
th
) trading day after the pricing of the Public Offering, but in no event
later than February 28, 2017, or, if the Listing Approval End Date is February 28, 2017, in no event later than March 31, 2017,
the Company shall deliver to JMJ such number of duly and validly issued, fully paid and non-assessable Origination Shares (as
defined in the Purchase Agreement) equal to $1,680,000, divided by the lowest of (i) $0.70 per share, or (ii) the lowest daily
closing price of the Common Stock during the ten days prior to delivery of the Origination Shares (subject to adjustment for stock
splits), or (iii) 80% of the Common Stock offering price of the Public Offering, or (iv) 80% of the unit price offering price
of the Public Offering (if applicable), or (v) the exercise price of any warrants issued in the Public Offering.
Pursuant
to the Note, JMJ is obligated to provide the Company additional $250,000 or $500,000 advances under the Note as certain milestones,
contained in the Funding Schedule within the Note, are achieved (the “Additional Advances”). In the event of an Additional
Advance, the Company shall deliver an additional warrant within three (3) days of such advances in the form of the Warrant (the
“Additional Warrant”), with the following terms: (i) an aggregate exercise amount equal to 100% of the principal sum
attributable to the Additional Advance or Further Advance, respectively (ii) at the per share exercise price then in effect on
the Warrant, and (iii) the number of shares for which the Additional Warrant is exercisable equal to the aggregate exercise amount
for the Additional Warrant divided by the exercise price. JMJ may, at its election, exercise the Warrant, and each Additional
Warrant, if any, pursuant to a cashless exercise.
If
the Company fails to repay the balance due under the Note, or issues a Variable Security (as defined in the Note) up to and including
the date of the closing of the Public Offering, JMJ has the right to convert all or any portion of the outstanding Note into shares
of Common Stock, subject to the terms and conditions set forth in the Note. All amounts due under the Note become immediately
due and payable upon the occurrence of an event of default as set forth in the Note.
The
foregoing descriptions of the Purchase Agreement, the Note, and the Warrant do not purport to be complete and are qualified in
their entirety by the terms and conditions of such documents. Copies of the Purchase Agreement, the Note, and the Warrant are
attached hereto as Exhibits 10.1, 10.2, and 4.1, respectively, and are incorporated herein by reference.