Item 1.01 Entry into a Material Definitive Agreement.
4, 2017, InterCloud Systems, Inc. (the “Company”) entered into an equity line financing agreement (the “Investment
Agreement”) with an institutional investor (the “Investor”). Under the Investment Agreement, and subject to certain
restrictions and conditions, the Company in its discretion may issue and sell to the Investor, and the Investor may purchase from
the Company, the lower of (i) 200,000,000 shares of duly authorized, validly issued, fully paid and nonassessable shares of common
stock and (ii) up to $5,000,000 of duly authorized, validly issued, fully paid and nonassessable shares of common stock (the “Maximum
Commitment Amount”) over a period of thirty (30) months from the effective date of the Investment Agreement (the “Commitment
Commitment Period, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, the shares
of common stock in respect of each put. The maximum number of shares of common stock that Company is entitled to put to the Investor
in any one put notice is the lower of (i) up to $200,000 of shares of common stock and (ii) 200% multiplied by the average of the
daily trading volume for ten (10) trading days immediately preceding the date of delivery of the applicable put notice. The purchase
price with respect to any put shall be set at ninety percent (90%) multiplied by the lowest daily volume weighted average price
(VWAP) of the common stock during the five (5) trading days immediately preceding the date of delivery of the applicable put notice.
The issuance and sale of shares of common stock to the Investor pursuant to any put shall occur on the applicable closing date
provided that all of the conditions precedent set forth in the Investment Agreement shall have been fulfilled on or prior to such
closing date. On each closing date, the Investor’s Maximum Commitment Amount automatically shall be reduced by the aggregate
purchase price from the previous put on a dollar-for-dollar basis, by the total number of shares of common stock issued by the
Company on such closing date or in connection therewith.
Agreement also contains customary representations and warranties of each of the parties. The representations and warranties were
made for purposes of the Investment Agreement and are subject to qualifications and limitations agreed to by the respective parties
in connection with negotiating the terms of the Investment Agreement. The Investment Agreement further provides that the Company
and the Investor are each entitled to customary indemnification from the other for, among other things, any losses or liabilities
they may suffer as a result of any breach by the other party of any provisions of the Investment Agreement or Registration Rights
Agreement (as defined below). Investors should read the Investment Agreement together with the other information concerning the
Company that the Company publicly file in reports and statements with the Securities and Exchange Commission (the “SEC”).
the terms of a registration rights agreement (the “Registration Rights Agreement”) dated October 4, 2017, the Company
agreed to file with the SEC a registration statement on Form S-1 (the “Registration Statement”) relating to the resale
by the Investor of the shares of common stock underlying the Investment Agreement (the “Registrable Securities”). In
addition, subject to the terms of the Registration Agreement, the Company agreed to use its best efforts to cause the Registration
Statement to be declared effective by the SEC within 120 days after the date of the Investment Agreement.
descriptions of the Investment Agreement and the Registration Rights Agreement are qualified in entirety by reference to the respective
agreements, which are filed as Exhibits 4.12 and 10.77 to the Company’s Registration Statement on Form S-1 (File No. 333-220812),
filed with the SEC on October 4, 2017, and are incorporated herein by reference.