Document:

EXHIBIT 10.1

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (the "Agreement"), dated as of July 17, 2015, by and between Peer to Peer Network, Inc., a Nevada corporation, with headquarters located at 2360 Corporate Circle Suite 400, Henderson, NV 89074 (the "Company"), and LG Capital Funding, LLC., a New York Limited Liability Company, with its address at 1218 Union Street, Suite #2, Brooklyn, NY 11225 (the "Buyer").

WHEREAS:

A.            The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "1933 Act");

B.            Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement  two 8% convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of $63,000.00 (with the first note being in the amount of $31,500.00 and the second note being in the amount of $31,500.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the "Note"), convertible into shares of common stock, of the Company (the "Common Stock"), upon the terms and subject to the limitations and conditions set forth in such Note. The first of the two notes (the "First Note") shall be paid for by the Buyer as set forth herein.  The second note (the "Second Note") shall initially be paid for by the issuance of an offsetting $31,500.00 secured note issued to the Company by the Buyer ("Buyer Note"), provided that prior to conversion of the Second Note, the Buyer must have paid off the Buyer Note in cash such that the Second Note may not be converted until it has been paid for in cash.

C.            The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

1.            Purchase and Sale of Note.

a.            Purchase of Note.  On each Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer's name on the signature pages hereto.

 

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b.            Form of Payment.  On each Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the "Purchase Price") by wire transfer of immediately available funds to the Company, in accordance with the Company's written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer's name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

c.            Closing Date.  The date and time of the issuance and sale of the Note pursuant to this Agreement (the "Closing Date") shall be on or about July 17, 2015, or such other mutually agreed upon time.  The closing of the transactions contemplated by this Agreement (the "Closing") shall occur on the Closing Date at such location as may be agreed to by the parties. Subsequent Closings shall occur when the Buyer Note is repaid.

2.            Buyer's Representations and Warranties.  The Buyer represents and warrants to the Company that:

a.            Investment Purpose.  As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the "Conversion Shares" and, collectively with the Note, the "Securities") for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

b.            Accredited Investor Status.  The Buyer is an "accredited investor" as that term is defined in Rule 501(a) of Regulation D (an "Accredited Investor").

c.            Reliance on Exemptions.  The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

d.            Information.  The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors.  The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company.  Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.  Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer's right to rely on the Company's representations and warranties contained in Section 3 below.  The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

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e.            Governmental Review.  The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

f.            Transfer or Re-sale.  The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an "affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) ("Rule 144")) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) ("Regulation S"), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case).  Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

g.            Legends.  The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

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"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected.  The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be considered an Event of Default under the Note.

h.            Authorization; Enforcement. This Agreement has been duly and validly authorized.  This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

i.            Residency.  The Buyer is a resident of the jurisdiction set forth immediately below the Buyer's name on the signature pages hereto.

3.            Representations and Warranties of the Company.  The Company represents and warrants to the Buyer that, except as otherwise disclosed in the Company's public filings and reports with the Securities and Exchange Commission:

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a.            Organization and Qualification.  The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

b.            Authorization; Enforcement.  (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company's Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

c.            Issuance of Shares.  The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

d.            Acknowledgment of Dilution.  The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note.  The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

e.            No Conflicts.  The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its subsidiaries is a party, or (iii)  result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect).  All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.  The Company is not in violation of the listing requirements of the Over-the-Counter Quotations Bureau (the "OTCQB") and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the foreseeable future, nor are the Company's securities "chilled" by FINRA.  The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

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f.            Absence of Litigation.  There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse effect.  Schedule 3(f) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its subsidiaries, without regard to whether it would have a material adverse effect.  The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

g.            Acknowledgment Regarding Buyer' Purchase of Securities.  The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm's length purchasers with respect to this Agreement and the transactions contemplated hereby.  The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer' purchase of the Securities.  The Company further represents to the Buyer that the Company's decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

h.            No Integrated Offering.  Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer.  The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company's securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

i.            Title to Property.  The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would not have a material adverse effect.  Any real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

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j.            Bad Actor.  No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities and Exchange Commission.

k.            Breach of Representations and Warranties by the Company.  If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of default under the Note.

4.            COVENANTS.

a.            Expenses.  At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith ("Documents"), including, without limitation, reasonable attorneys' and consultants' fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents.  When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer. The Company's obligation with respect to this transaction is to reimburse Buyer' expenses shall be $1,500 in legal fees (and similar amounts for the Second Note) which shall be deduced from each Note when funded.

b.            Listing.  The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note.  The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement exchange, the Nasdaq National Market ("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq SmallCap"), the New York Stock Exchange ("NYSE"), or the American Stock Exchange ("AMEX") and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority ("FINRA") and such exchanges, as applicable.  The Company shall promptly provide to the Buyer copies of any notices it receives from the OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.

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c.            Corporate Existence.  So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company's assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company's assets, where the surviving or successor entity in such transaction (i) assumes the Company's obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

d.            No Integration.  The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

e.            Breach of Covenants.  If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.             Governing Law; Miscellaneous.

 

a.            Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York.  The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.  The Company and Buyer waive trial by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.  In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.   Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

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b.            Counterparts; Signatures by Facsimile.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

c.            Headings.  The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

d.            Severability.  In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

e.            Entire Agreement; Amendments.  This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

f.            Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, (iv) via electronic mail or (v) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received) or delivery via electronic mail, or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

If to the Company, to:

Peer to Peer Network, Inc.

2360 Corporate Circle Suite 400

Henderson, NV 89074

Attn: Christopher Esposito, CEO

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                   If to the Buyer:

LG CAPITAL FUNDING, LLC

1218 Union Street, Suite #2,

Brooklyn, NY 11225

Attn: Joseph Lerman

Each party shall provide notice to the other party of any change in address.

g.            Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.  Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other.  Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its "affiliates," as that term is defined under the 1934 Act, without the consent of the Company.

h.            Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

i.            Survival.  The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer.  The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

j.            Further Assurances.  Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

k.            No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

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l.            Remedies.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

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IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

 

Peer to Peer Network, Inc.

By: _______________________________

Christopher Esposito

Chief Executive Officer

 

 

LG CAPITAL FUNDING, LLC.

By:   _______________________________                                                                                 

Joseph Lerman

Manager

AGGREGATE SUBSCRIPTION AMOUNT:

Aggregate Principal Amount of Notes:                                                                                                                                              $63,000.00

Aggregate Purchase Price:

Note 1: $31,500.00 less $1,500.00 in legal fees

Note 2: $31,500.00 less $1,500.00 in legal fees

 

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EXHIBIT A

144 NOTE - $31,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT B

BACK END NOTE

$31,500

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14EX-4.4

 Exhibit 4.4 

SUNRUN INC. 
 STOCK
ISSUANCE AGREEMENT 
 This Stock Issuance Agreement (the “Agreement”) is made as of
            , 2015, by and between Sunrun Inc., a Delaware corporation (the “Company”), and the persons and entities (each, a “Stockholder” and
collectively, the “Stockholders”) listed on the Schedule of Stockholders attached as Exhibit A (the “Schedule of Stockholders”). 

RECITALS 
 A. The Company is
contemplating a potential initial public offering (“IPO”) of its common stock (the “Common Stock”). 
 B.
The consent of the Stockholders may be required for the automatic conversion of the Series D Preferred Stock and Series E Preferred Stock into shares of common stock immediately prior to the IPO, pursuant to the contemplated terms of the IPO. 

C. Certain Stockholders may be entitled to an adjustment to the conversion price of their shares of Preferred Stock pursuant to the
contemplated terms of the IPO. 
 D. The Stockholders wish to consent to the automatic conversion of the Series D Preferred Stock and Series
E Preferred Stock into shares of common stock immediately prior to the closing of the IPO pursuant to section 4(b)(ii) and section 4(b)(i)(ii) of the Certificate of Incorporation, respectively, and waive any adjustment to the conversion price of
their shares of Preferred Stock resulting from the issuance of shares of Common Stock in the IPO. 
 E. The Company wishes to issue to the
Stockholders, subject to the terms and conditions of this Agreement, (1) up to an aggregate of 1,667,683 shares of Common Stock (the “Shares”) and (2) warrants to purchase up to 1,250,764 shares of Common Stock (the
“Warrants”) pursuant to the letter of intent attached hereto as Exhibit B (“LOI”). 
 In consideration of
the mutual covenants and representations set forth below, the Company and the Stockholder agree as follows: 
 AGREEMENT 

1. Issuance of Shares and Warrants; Consideration.  

A. Issuance of Shares. Subject to the terms and conditions of this Agreement, the Company agrees to issue to each Stockholder the
number of Shares set forth in the column designated “Number of Shares” opposite such Stockholder’s name on the Schedule of Stockholders, which issuance will be effective as of immediately prior to the closing of the IPO.
Notwithstanding the foregoing, (1) no issuance of Shares to the Stockholders designated as “Series D Stockholders” on the Schedule of Purchasers will occur pursuant to this Agreement if the closing of the IPO does not occur on or
prior to August 31, 2015, and (2) no issuance of Shares to the Stockholders designated as “Series E Stockholders” on the Schedule of Purchasers will occur pursuant to this Agreement if the closing of the IPO does not occur on or
prior to August 31, 2015. The Company’s agreement with each Stockholder is a separate agreement, and the issuance of the Shares to each Stockholder is a separate issuance. The obligation of the Stockholders to consent to the conversion of
the Series E Preferred Stock into shares of Common Stock is conditioned upon conversion of the Series D Preferred Stock converting into shares of Common Stock on the terms set forth in this Agreement. 

 B. Issuance of Warrants. Subject to the terms and conditions of this Agreement, if the
conditions set forth in the LOI are met, the Company agrees to issue to each Stockholder a Warrant to purchase up to that number of shares of Common Stock set forth in the column designated “Number of Warrants” opposite such
Stockholder’s name on the Schedule of Stockholders, which issuance will be made pursuant to the terms set forth in the LOI. The terms of the Warrants will be substantially as set forth in the LOI in form and substance reasonably satisfactory to
the Company and the Stockholders. 
 C. Consideration. As consideration for the issuance of the Shares and the Warrants, each
Stockholder agrees to and hereby does (1) waive any and all conversion price adjustments pursuant to the Company’s Amended and Restated Certificate of Incorporation, as amended, that may result from the issuance of Common Stock by the
Company in the IPO or as contemplated by this Agreement (the “Anti-Dilution Adjustment”), and (2) consent to the automatic conversion of all shares of Series D Preferred Stock and Series E Preferred Stock into shares of Common
Stock at the then applicable conversion rate pursuant to section 4(b)(ii)(ii) and section 4(b)(i)(ii) of the Certificate of Incorporation, respectively, which the parties agree shall be 1:1 assuming the accuracy of Section 2.B. below and
assuming that there are no issuances of securities or other events that would result in a conversion price adjustment between the execution of this Agreement and the closing of the IPO, immediately prior to the closing of the IPO (the
“Automatic Conversion”), in each case, subject to (1) the aggregate offering proceeds from the IPO being at least $60 million dollars, and (2) the closing of the IPO occurring on or prior to August 31, 2015. 

2. Company Representations and Warranties. The Company hereby represents and warrants to the Stockholders as follows:. 

A. Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate actions on the part of the Company. The shares of Common Stock issuable upon exercise of the Warrants has been reserved by the Company. 

B. No Anti-Dilution Adjustment; No Additional Consideration. The IPO and the transactions contemplated by this Agreement, including the
issuance of the Shares and the issuance of the Warrants, does not require the adjustment of the conversion price of any series of preferred stock of the Company or any similar provision of any other security of the Company, in each case which has
not otherwise been waived. Except as set forth in this Agreement. the Company has not provided any consideration to any stockholder of the Company in connection with the conversion of such stockholder’s preferred stock into shares of Common
Stock in connection with the IPO or provided any consideration to any stockholder or securityholder in connection with the transactions contemplated by this Agreement. 

3. Stockholder Representations and Warranties. Each Stockholder hereby, severally and not jointly, represents and warrants to the
Company as follows: 
 C. No Registration. The Stockholder understands that the Shares have not been, and will not be, registered
under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the
Stockholder’s representations as expressed herein or otherwise made pursuant hereto. 
 D. Investment Intent. The Stockholder is
acquiring the Shares for investment for its own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, and that the Stockholder has no present intention of selling, granting any
participation in, or otherwise distributing the same. The Stockholder further represents that it does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or
entity or to any third person or entity with respect to any of the Shares. 

  
 -2- 

 E. Investment Experience. The Stockholder has substantial experience in evaluating and
investing in private placement transactions of securities in companies similar to the Company and acknowledges that the Stockholder can protect its own interests. The Stockholder has such knowledge and experience in financial and business matters so
that the Stockholder is capable of evaluating the merits and risks of its investment in the Company. 
 F. Speculative Nature of
Investment. The Stockholder understands and acknowledges that an investment in the Company is highly speculative and involves substantial risks. The Stockholder can bear the economic risk of the Stockholder’s investment and is able, without
impairing the Stockholder’s financial condition, to hold the Shares for an indefinite period of time and to suffer a complete loss of the Stockholder’s investment. 

G. Accredited Investor. The Stockholder is an “accredited investor” within the meaning of Regulation D, Rule 501(a),
promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company. The Stockholder has furnished or made available any
and all information requested by the Company or otherwise necessary to satisfy any applicable verification requirements as to “accredited investor” status. Any such information is true, correct, timely and complete. 

H. Residency. The residency of the Stockholder (or, in the case of a partnership or corporation, such entity’s principal place of
business) is correctly set forth on the Schedule of Stockholders. 
 I. Rule 144. The Stockholder acknowledges that the Shares must
be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. The Stockholder is aware of the provisions of Rule 144 promulgated under the Securities Act which permit resale of
shares purchased in a private placement subject to the satisfaction of certain conditions, which may include, among other things, the availability of certain current public information about the Company; the resale occurring not less than a
specified period after a party has purchased and paid for the security to be sold; the number of shares being sold during any three-month period not exceeding specified limitations; the sale being effected through a “brokers’
transaction,” a transaction directly with a “market maker” or a “riskless principal transaction” (as those terms are defined in the Securities Act or the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder); and the filing of a Form 144 notice, if applicable. The Stockholder acknowledges and understands that the Company may not be satisfying the current public information requirement of Rule 144 at the time the
Stockholder wishes to sell the Shares, and that, in such event, the Stockholder may be precluded from selling such securities under Rule 144, even if the other applicable requirements of Rule 144 have been satisfied. The Stockholder acknowledges
that, in the event the applicable requirements of Rule 144 are not met, registration under the Securities Act or an exemption from registration will be required for any disposition of the Shares. The Stockholder understands that, although Rule 144
is not exclusive, the Securities and Exchange Commission has expressed its opinion that persons proposing to sell restricted securities received in a private offering other than in a registered offering or pursuant to Rule 144 will have a
substantial burden of proof in establishing that an exemption from registration is available for such offers or sales and that such persons and the brokers who participate in the transactions do so at their own risk. 

J. Authorization. 

(i) The Stockholder has all requisite power and authority to execute and deliver this Agreement, to purchase the Shares hereunder and to
carry out and perform its obligations under the terms of 

  
 -3- 

 
this Agreement, including the waiver of the Anti-Dilution Adjustment and the consent to the Automatic Conversion. All action on the part of the Stockholder necessary for the authorization,
execution, delivery and performance of this Agreement, and the performance of all of the Stockholder’s obligations under this Agreement, has been taken or will be taken prior to the issuance of the Shares. 

(ii) This Agreement, when executed and delivered by the Stockholder, will constitute valid and legally binding obligations of the
Stockholder, enforceable in accordance with its terms. 
 (iii) No consent, approval, authorization, order, filing, registration or
qualification of or with any court, governmental authority or third person is required to be obtained by the Stockholder in connection with the execution and delivery of this Agreement by the Stockholder or the performance of the Stockholder’s
obligations hereunder. 
 K. Tax Advisors. The Stockholder has reviewed with its own tax advisors the U.S. federal, state, local and
foreign tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, the Stockholder relies solely on such advisors and not on any statements or representations of the Company or any of its
agents, written or oral. The Stockholder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this Share issuance or the transactions contemplated by this Agreement. 

L. Legends. The Stockholder understands and agrees that any certificates evidencing the Shares shall bear the following legend (in
addition to any legend required under applicable state securities laws): 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
FOR INVESTMENT PURPOSES AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT.  

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE
ISSUER’S REGISTRATION STATEMENT FILED UNDER THE ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP
PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES. 

  
 -4- 

 4. Market Stand-Off Agreement. Each of the Stockholders hereby agrees that the Shares
acquired by such Stockholder pursuant to this LOI, including the warrants and the shares issuable upon exercise of the warrants, shall be subject to the Market Stand-Off Agreement in Section 2.12 of that certain Tenth Amended and Restated
Investor Rights Agreement dated March 31, 2015 by and between the Company and the other parties thereto. Each Stockholder further agrees that the Shares are subject to the underwriters’ “lockup” agreement as previously executed
and delivered to the Company (and if such Stockholder has not previously executed and delivered such underwriters’ “lockup” agreement, it agrees to do so as soon as possible, and in any event prior to the issuance of the Shares to
such Stockholder). 
 5. General Provisions. 

A. Choice of Law. This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of California.

 B. Integration. This Agreement, including all exhibits hereto, represents the entire agreement between the parties with respect to
(1) the issuance of the Shares by the Company to the Stockholders, (2) the waiver of the Anti-Dilution Adjustment by the Stockholders, and (3) the consent to the Automatic Conversion by the Stockholders, and supersedes and replaces
any and all prior written or oral agreements regarding the subject matter of this Agreement. 
 C. Assignment; Transfers. Except as
set forth in this Agreement, this Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by the Stockholder without the prior written consent of the Company. Any attempt by a
Stockholder without such consent to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall be void. Except as set forth in this Agreement, any transfers in violation of any restriction upon
transfer contained in any section of this Agreement shall be void, unless such restriction is waived in accordance with the terms of this Agreement. 

D. Severability. Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions shall
nevertheless remain effective and shall remain enforceable to the greatest extent permitted by law. 
 E. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals. 

(signature page follows) 

  
 -5- 

	
	COMPANY:
	
	SUNRUN INC.
	
	  

	Signature
	
	  

	Print Name
	
	  

	Print Title

	
	STOCKHOLDER:
	
	[NAME OF STOCKHOLDER]
	
	  

	Signature
	
	  

	Print Name
	
	  

	Print Title

  
 -2- 

 EXHIBIT A 

SCHEDULE OF STOCKHOLDERS 
  

											
	 Name
	  	 Address
	  	Number of
Shares	 	  	Number of
Warrants	 
	
	 Series D Stockholders:
	   

				
	 Madrone Partners, L.P.
	  	             	  	 	116,203	  	  	 	87,152	  
				
	 Credit Suisse NEXT Investors, LLC
	  		  	 	23,241	  	  	 	17,431	  
				
	 Foundation Capital VI, L.P.
	  		  	 	7,661	  	  	 	5,746	  
				
	 Sequoia Capital U.S. Growth Fund IV, L.P.
	  		  	 	7,420	  	  	 	5,565	  
				
	 Accel X L.P.
	  		  	 	6,947	  	  	 	5,210	  
				
	 Accel X Strategic Partners L.P.
	  		  	 	521	  	  	 	391	  
				
	 Sequoia Capital USGF Principals Fund IV, L.P.
	  		  	 	327	  	  	 	245	  
				
	 Accel Investors 2009 L.L.C.
	  		  	 	279	  	  	 	209	  
				
	 Foundation Capital VI Principals Fund, LLC
	  		  	 	86	  	  	 	65	  
	
	 Series E Stockholders:
	   

				
	 The Canyon Value Realization Master Fund, L.P.
	  		  	 	400,000	  	  	 	300,000	  
				
	 Canyon Balanced Master Fund, Ltd.
	  		  	 	350,000	  	  	 	262,500	  
				
	 Canyon Value Realization Fund, L.P.
	  		  	 	200,000	  	  	 	150,000	  
				
	 The Whittemore Collection, Ltd.
	  		  	 	150,000	  	  	 	112,500	  
				
	 Madrone Partners, L.P.
	  		  	 	102,189	  	  	 	76,642	  
				
	 SCGE Fund, L.P.
	  		  	 	80,000	  	  	 	60,000	  

											
	 Canyon-GRF Master Fund II, L.P.
	  	              
	  	 	50,000	  	  	 	37,500	  
				
	 Pine River Master Fund Ltd.
	  		  	 	50,000	  	  	 	37,500	  
				
	 Sequoia Capital U.S. Growth Fund IV, L.P.
	  		  	 	47,890	  	  	 	35,918	  
				
	 Foundation Capital VI, L.P.
	  		  	 	27,503	  	  	 	20,627	  
				
	 Accel X L.P.
	  		  	 	13,450	  	  	 	10,088	  
				
	 TTCER Partners, LLC
	  		  	 	10,000	  	  	 	7,500	  
				
	 Nisswa Acquisition Master Fund Ltd.
	  		  	 	5,000	  	  	 	3,750	  
				
	 Peter and April Kelly Family Trust
	  		  	 	5,000	  	  	 	3,750	  
				
	 Risk Family Trust Dtd 6/23/06
	  		  	 	5,000	  	  	 	3,750	  
				
	 Dach Dickie Family Trust, Martha Sue Dickie, Trustee
	  		  	 	2,500	  	  	 	1,875	  
				
	 Dach, Leslie
	  		  	 	2,500	  	  	 	1,875	  
				
	 Sequoia Capital USGF Principals Fund IV, L.P.
	  		  	 	2,110	  	  	 	1,583	  
				
	 Accel X Strategic Partners L.P.
	  		  	 	1,009	  	  	 	757	  
				
	 Accel Investors 2009 L.L.C.
	  		  	 	540	  	  	 	405	  
				
	 Foundation Capital VI Principals Fund, LLC
	  		  	 	307	  	  	 	230	  

  
 -2- 

 EXHIBIT B 

LETTER OF INTENT 

 

 
 July     , 2015 

Allen Ba 
 Canyon Capital Advisors
LLC 
 Jamie McJunkin 
 Madrone
Capital 
 Dear Allen and Jamie: 
 This letter of intent sets
forth certain of the terms upon which Canyon Capital Advisors and its affiliates (“Canyon”) and Madrone Capital (“Madrone”), as the holders of a majority of shares of the Series E preferred stock (“Series E Shares”) and
Series D preferred stock (“Series D Shares”) of Sunrun Inc. (the “Company”), respectively, agree to waive certain conversion price adjustments and to consent to the automatic conversion of the Series E Shares and Series D Shares
into shares of the Company’s common stock (the “Common Stock”) immediately prior to the closing of the Company’s initial public offering (“IPO”), which waiver and consent has been separately agreed upon by the parties
hereto pursuant to a Stock Issuance Agreement dated on or about the date hereof. 
 As further consideration of the waiver and consent, the Company agrees
to issue warrants (“Warrants”) to purchase shares of Common Stock of the Company (“Shares”) to each of the holders of the Series E Shares and Series D Shares upon the terms set forth below: 

 

	 	•	 	Warrants shall only be issued pursuant to this letter of intent to holders of Series D Shares and Series E Shares if both of the following conditions are met: (i) the Company successfully closes its IPO no later
than August 31, 2015 and (ii) the VWAP (as customarily calculated using the “Bloomberg VWAP” for the Common Stock, without regard to after-hours trading or any other trading outside of the regular trading session trading hours)
for the period starting on the third trading day on the NASDAQ Stock Market and ending on the 32nd trading day on the NASDAQ Stock Market is less than $17.50. 

  
 2 

	 	•	 	If the conditions set forth above are met, the Company will issue the Warrants within 10 business days following the 32nd trading day on the NASDAQ Stock Market, upon
the following terms: 

  

	 	•	 	The Warrants will expire three years from the date of issuance. In addition, the Warrants will provide that the Company may cause the Warrants to terminate in connection with an Acquisition (as defined in the
Company’s Certificate of Incorporation as in effect on the date hereof) of the Company as provided herein. In the event of an Acquisition of the Company prior to the third anniversary of the date of issuance of the Warrants in which the
consideration to be received by the stockholders of the Company consists solely of cash, the Warrants will provide that any unexercised Warrants may be terminated by the Company immediately prior to the effective time of such Acquisition by paying
the holders of the Warrants an amount equal to the difference between the cash consideration per share to be received by stockholders of the Company in such Acquisition and $22.50 (as adjusted from time to time) per Warrant share. In the event of an
Acquisition of the Company prior to the third anniversary of the date of issuance of the Warrants in which the consideration to be received by the stockholders of the Company consists of securities or a combination of cash and securities, the
Warrants will provide that any unexercised Warrants may be terminated by the Company immediately prior to the effective time of such Acquisition by paying the holders of the Warrants an amount equal to $17.50 per Warrant share (as adjusted from time
to time). The Warrants will provide that (1) in order for the Company to terminate the Warrants as provided in the previous two sentences, the Company must provide written notice to the holders of the Warrants at least five business days prior
to the effective time of such Acquisition indicating that it will terminate the Warrants immediately prior to the effective time of such Acquisition and the details of the payment to be made to such holders in respect of each Warrant share, and
(2) such termination will only be effective with respect to any Warrants that remain unexercised at the effective time of such Acquisition (which exercise by the holders of the Warrants can be made conditioned upon the closing of the
Acquisition). 

  

	 	•	 	The Warrants will have an exercise price of $22.50 per Share (as adjusted from time to time). The Warrants will provide for adjustment to the exercise price and the number of Warrant Shares to reflect stock splits,
consolidations, combinations, consolidation, recapitalization and the like of the underlying Common Stock and dividends (of securities, including stock, cash and other property). 

 

	 	•	 	Any Shares issued in respect of the Warrants during the IPO underwriter’s lock-up period will be subject to the terms of the lock-up agreement entered into between the holder of the Warrants and the Company’s
underwriters, and Shares issued after the expiration of the lock-up period described therein will not be subject to the lock-up agreement. 

  

	 	•	 	If the conditions set forth above are met, 1,128,750 Warrants will be issued to the holders of the Series E Shares, which will be issued ratably in proportion to each holder’s ownership percentage of the Series E
Shares, as set forth in Schedule A hereto. 

  

	 	•	 	If the conditions set forth above are met, 122,014 Warrants will be issued to the holders of Series D Shares, which will be issued ratably in proportion to each holder’s ownership percentage of the Series D Shares,
as set forth in Schedule B hereto. 

  

	 	•	 	 Holders of the Warrants may, at their option, exercise Warrants through a “cashless” transaction pursuant to which the Company will issue a
net number of Shares equal to the product of (1) the number of Shares to be exercised and (2) the difference between the 10-day 

  
 3 

	 	 
VWAP (to be defined in the definitive documentation for the Warrants using customary definitions and methodologies) for the period ending on the trading day immediately prior to the date of
exercise and $22.50 (as adjusted from time to time). 

  

	 	•	 	Any transfer of Warrants will be subject to satisfaction of applicable securities laws. No Warrants may be transferred unless such transfer is to a transferee who, pursuant to such transfer, receives at least 20% of the
Warrant shares (as adjusted to reflect stock splits, consolidations, stock dividends, combinations, consolidation, recapitalization and the like of the underlying Common Stock) initially issued to the original Warrant holder. 

 

	 	•	 	The Warrants will contain other customary representations and terms which will be set forth in definitive documentation at the time of the issuance of the Warrants and will be in form and substance reasonably
satisfactory to the Company, Canyon and Madrone. 

 Best regards, 

Lynn Jurich 
 CEO 

Sunrun Inc. 
 Agreed and Acknowledged: 

 

	
	Canyon Capital Advisors LLC
	
	  

	
	Allen Ba
	
	Madrone Capital
	
	  

	
	Jamie McJunkin

  
 4

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