Document:

Exhibit 10.1

 

SIXTH
AMENDMENT TO

LOAN
AND SECURITY AGREEMENT AND WAIVER

 

This
Sixth Amendment to Loan and Security Agreement and Waiver (this “Amendment”) is entered into as of August 4,
2016, by and among MODERN SYSTEMS CORPORATION, a Delaware corporation, formerly known as BluePhoenix Solutions USA, Inc., a Delaware
corporation (“Modern”) and MS MODERNIZATION SERVICES, INC., a Texas corporation, formerly known as Sophisticated
Business Systems, Inc., successor by merger to BP-AT Acquisition LLC, a Delaware limited liability company f/k/a BP-AT Acquisition
Corporation, a Delaware corporation (“MS”, and collectively with Modern, “Borrowers”, and
each individually, a “Borrower”), and COMERICA BANK (“Bank”).

 

RECITALS

 

Borrowers
and Bank are parties to that Loan and Security Agreement dated October 2, 2013, as it may be amended from time to time, including
without limitation by that certain First Amendment to Loan and Security Agreement, Joinder, and Modification to Loan Documents
dated September 25, 2014, that certain Omnibus Modification to Loan Documents and Consent dated January 8, 2015, that certain
Third Amendment to Loan and Security Agreement, Modification to Loan Documents and Consent dated May 1, 2015, that certain Fourth
Amendment to Loan and Security Agreement dated May 11, 2015 and that certain Fifth Amendment to Loan and Security Agreement and
Waiver dated as of March 9, 2016 (as amended, the “Agreement”). The parties desire to amend the Agreement in
accordance with the terms of this Amendment and Borrowers have requested that Bank waive the occurrence of certain Events of Default.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.     
Borrowers failed to comply with Section 6.7(c) of the Agreement (Minimum to EBITDA) for the testing period ended February 29,
2016 (the “Covenant Violation”). Borrowers requested that Bank waive the Event of Default that has occurred
as a result of the Covenant Violation. Bank hereby waives the Event of Default that has occurred as a result of the Covenant Violation.
This waiver is specific as to content and time, shall be limited precisely as written, and shall not constitute a waiver of any
other current or future default or Event of Default or breach of any covenant contained in the Agreement or the terms and conditions
of any other Loan Documents. Bank expressly reserves all of its various rights, remedies, powers and privileges under the Agreement
and the other Loan Documents due to any other default, Event of Default or breach not waived herein.

 

2.     
Exhibit A of the Agreement is amended by amending and restating the following defined terms to read in their entireties as follows:

 

“Liquidity’
means the sum of Borrowers’ Cash at Bank (which Cash at Bank shall be no less than Two Hundred Fifty Thousand Dollars ($250,000))
plus eighty percent (80%) of Eligible Accounts.

 

“Non-Formula
Revolving Line Maturity Date” means July 1, 2018.

 

3.     
Sections 6.7(a) and 6.7(c) of the Agreement are amended and restated to read in their entireties as

follows:

 

“(a)
Bank Debt Liquidity Coverage. Tested monthly as of the last day of each month, commencing on the Revolving Line Increase
Effective Date, a ratio of Liquidity to all Indebtedness, other than Indebtedness that is guaranteed, to Bank of at least 1.25
to 1.00.

 

    	 	1	 

     

    

 

(b)
EBITDA. Tested monthly, EBITDA of Parent, measured on a trailing six (6) month basis ending on the date of determination,
of not less than the following amounts on the following dates:

 

	Testing Dates	 	Minimum EBITDA
	April 30, 2016	 	($1,500,000)
	May 31, 2016	 	($1,500,000)
	June 30, 2016	 	($1,000,000
	July 31, 2016	 	($1,000,000)
	August 31, 2016	 	($750,000)
	September 30, 2016	 	($750,000)
	October 31, 2016	 	($250,000)
	November 30, 2016	 	$250,000
	December 31, 2016	 	$250,000
	January 31, 2017 and the last day of each month thereafter	 	$500,000”

 

 

4.     
Exhibit E to the Agreement is deleted and replaced with Exhibit E attached hereto.

 

5.     
Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement,
as amended hereby, shall be and remains in full force and effect in accordance with its terms and hereby is ratified and confirmed
in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate
as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date
hereof.

 

6.     
Borrowers represent and warrant that the representations and warranties contained in the Agreement are true and correct in all
material respects as of the date of this Amendment, and that, other than the Covenant Violation, no Event of Default has occurred
and is continuing.

 

7.     
As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the
following:

 

(a)     this Amendment, executed by Borrowers; and

 

(b)     all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of Borrowers’ accounts.

 

8.     
This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one instrument.

 

[Remainder
of Page Intentionally Left Blank]

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF, Borrowers and Bank have executed and delivered this Sixth Amendment to Loan and Security Agreement as of the
date first set forth above.

 

	 	MODERN SYSTEMS CORPORATION, a Delaware
	 	corporation, formerly known as BluePhoenix Solutions USA, Inc.
	 	 
	 	By: 	                    

	 	Printed Name:
 	 

	 	Title: 	        

 

	 	MS MODERNIZATION SERVICES, INC., a Texas
	 	corporation, formerly known as Sophisticated Business Systems, Inc., successor by merger to BP-AT Acquisition LLC, formerly known as BP-AT Acquisition Corporation
	 	
	 	By: 	                      

	 	Printed Name:  	 

	 	Title: 	 
	 	 	 
	 	COMERICA BANK
	 	 	 
	 	By: 	             

	 	Printed Name:  	 

	 	Title: 	 

  

[Signature
Page to Sixth Amendment to Loan and Security Agreement (11851718)]

 

    	 	3	 

     

    

 

EXHIBIT
E

 

COMPLIANCE CERTIFICATE

 

	Please send all Required Reporting to:	Comerica Bank
	 	Technology & Life Sciences Division
	 	Loan Analysis Department
	 	250 Lytton Avenue
	 	3rd Floor, MC 4240
	 	Palo Alto CA 94301
	 	Phone: (650) 462-6060
	 	Fax: (650) 462-6061

 

FROM:
Modern Systems Corporation and MS Modernization Services, Inc.

 

The
undersigned authorized Officer of Modern Systems Corporation and MS Modernization Services, Inc. (individually and
collectively, “Borrower”), hereby certifies that in accordance with the terms and conditions of the Loan and
Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the
period ending 
                       ,
201 with all required covenants, including without limitation the ongoing registration of intellectual property rights in
accordance with Section 6.8, except as noted below and (ii) all representations and warranties of Borrower stated in the
Agreement are true and correct in all material respects as of the date hereof; provided, however, that those representations
and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such
date. Attached herewith are the required documents supporting the above certification (“Supporting Documents”).
The Officer further certifies the Supporting Documents are prepared in accordance with Generally Accepted Accounting
Principles (GAAP) and are consistently applied form one period to the next except as explained in an accompanying letter or
footnotes.

 

Please
indicate compliance status by circling Yes/No under “Complies” or “Applicable” column,

 

	REPORTING
    COVENANTS	 	REQUIRED	 	COMPLIES
	Company Prepared
    Monthly F/S	 	Monthly, within
    30 days	 	YES	 	NO
	Compliance Certificate	 	Monthly, within 30 days	 	YES	 	NO
	CPA Audited, Unqualified F/S
    for Parent	 	Annually, within 150 days of
    FYE	 	YES	 	NO
	Company Prepare Annual Consolidating
    F/S for Parent	 	Annually, within 150 days of
    FYE (commencing 2014 FY)	 	YES	 	NO
	Company Prepared Annual F/S	 	Annually, within 150 days of
    FYE	 	YES	 	NO
	Borrowing Base Cert, A/R &
    A/P Agings	 	Monthly, within 30 days	 	YES	 	NO
	Annual Business Plan	 	Annually, on or before 1/31	 	YES	 	NO
	Intellectual Property Report	 	Quarterly within 30 days	 	YES	 	NO
	Audit	 	Semi-annual	 	YES	 	NO
	 	 	 	 	 	 	 
	If Public:	 	 	 	 	 	 
	10-Q	 	Quarterly, within 5 days of
    SEC filing (50 days)	 	YES	 	NO
	10-K	 	Annually, within 5 days of
    SEC filing (95 days)	 	YES	 	NO
	 	 	 	 	 	 	 
	Total amount of Borrower’s
    cash and investments	 	Amount: $                          	 	YES	 	NO
	Total amount of Borrower’s
    cash and investments maintained with Bank	 	Amount: $                          	 	YES	 	NO

  

	 	 	DESCRIPTION	 	APPLICABLE
	Legal Action >
    $250,000 (Sect. 6.2(iv))	 	Notify promptly
    upon notice                           	 	YES	 	NO
	Inventory Disputes> $250,000
    (Sect. 6.3)	 	Notify promptly upon
    notice                           	 	YES	 	NO
	Mergers & Acquisitions>
    $250,000 (Sect. 7.3)	 	Notify promptly upon
    notice                           	 	YES	 	NO
	Cross default with other agreements
    >$250,000 (Sect. 8.6)	 	Notify promptly upon
    notice                           	 	YES	 	NO
	Judgments/Settlements >  $250,000
    (Sect. 8.8)	 	Notify promptly upon
    notice                           	 	YES	 	NO

 

	FINANCIAL
    COVENANTS	 	REQUIRED	 	ACTUAL	 	COMPLIES
	Bank Debt Liquidity
    Ratio (tested monthly commencing on the Revolving Line Increase Effective Date)	 	1.25:1.00	 	             :1.00	 	YES	 	NO
	New Equity	 	See Sec. 6.7(b)	 	$                                   	 	YES	 	NO
	Minimum EBITDA	 	See Sec. 6.7(c)	 	$                                   	 	YES	 	NO

 

	FINANCIAL
    COVENANTS	 	REQUIRED	 	ACTUAL	 	COMPLIES
	 	 	 	 	 	 	 	 	 
	Permitted Indebtedness
    for equipment leases	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Investments for stock
    repurchase	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Investments for subsidiaries	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Investments for employee
    loans	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Investments for joint
    ventures	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Liens for equipment leases	 	<$250,000	 	$                                   	 	YES	 	NO
	Permitted Transfers	 	<$250,000	 	$                                   	 	YES	 	NO
	Cash Transfer to Parent	 	<$450,000	 	$                                   	 	YES	 	NO

 

Please
Enter Below Comments Regarding Violations:

     

     

    

 

The
undersigned further acknowledges that at any time Borrower is not in compliance with all the terms set forth in the Agreement,
including, without limitation, the financial covenants, no Credit Extensions will be made.

 

Very
truly yours,

 

MODERN
SYSTEMS CORPORATION, for itself and on behalf of MS Modernization Services, Inc.

 

  

 

Authorized
Signer

 

 

 

Name

 

 

 

TitleNEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
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. 

 

	Principal
    Amount: $105,000	Issue
    Date: June 24, 2016

 

SECURED
CONVERTIBLE PROMISSORY NOTE

 

FOR
VALUE RECEIVED, CCGI/PAT, LLC, a Pennsylvania limited liability company (hereinafter called “Borrower”), hereby
promises to pay to the order of THE FARKAS GROUP INC. (collectively, the “Holder”), without demand, the sum
of One Hundred Five Thousand Dollars ($105,000.00) (“Principal Amount”), with interest accruing thereon, on
the earlier of (i) the sixty (60) day anniversary date of the Issue Date or (ii) the date on which the Company has received payment
under its existing grant with the Pennsylvania Turnpike (the “Maturity Date”), if not sooner paid.

 

This
Note also contains a three (3) year warrant to purchase 525,000 shares of common stock substantially in the form attached as Exhibit
C to the Note (the “Warrant”).

 

ARTICLE
I

GENERAL
PROVISIONS

 

1.1Interest
Rate. Interest payable on this Note shall accrue at the annual rate of eighteen percent (18%) and be payable on the Maturity
Date, accelerated or otherwise, when the principal and remaining accrued but unpaid interest shall be due and payable, or sooner
as described below.

 

1.2Payment
Grace Period. The Borrower shall have a ten (10) day grace period to pay any monetary amounts due under this Note. After the
expiration of the grace period, during the pendency of an Event of Default (as described in Article III), a default interest rate
equal to the highest legally allowable rate shall be in effect.

 

1.3Conversion
Privileges. The Conversion Rights set forth in Article II shall remain in full force and effect immediately from the
date hereof and until the Note is paid in full regardless of the occurrence of an Event of Default. This Note shall be payable
in full on the Maturity Date, unless previously converted into Common Stock in accordance with Article II hereof.

 

1.4Prepayment.
This Note may be prepaid by the Borrower in whole, at any time, or in part, from time to time, without penalty or premium, upon
four (4) business days prior written notice to the Holder. Upon receipt of such notice, the Holder may determine to convert the
Note pursuant to Article II. No such notice shall be necessary if payment will be made on the Maturity Date.

 

1.5Use
of Funds. The Principal Amount received by the Borrower hereunder shall be used solely for the purpose of paying vendors of
the Borrower under its existing grant with the Pennsylvania Turnpike.

 

    	 	 	 

     

    

 

ARTICLE
II

CONVERSION
RIGHTS

 

The
Holder shall have the right to convert the principal and any interest due under this Note into Shares of Common Stock, $0.001
par value per share (“Common Stock”) of Car Charging Group, Inc. (“CCGI”), the ultimate parent
of Borrower, as set forth below.

 

2.1.Conversion
into CCGI’s Common Stock.

 

(a)The
Holder shall have the right from and after the date of the issuance of this Note and then at any time until this Note is fully
paid, to convert any outstanding and unpaid principal portion of this Note, and accrued interest, at the election of the Holder
(the date of giving of such notice of conversion being a “Conversion Date”) into fully paid and non-assessable
shares of Common Stock as such stock exists on the date of issuance of this Note, or any shares of capital stock of Borrower into
which such Common Stock shall hereafter be changed or reclassified, at the Fixed Conversion Price (as defined in Section 2.1(b)
hereof), determined as provided herein. Upon delivery to CCGI of a completed Notice of Conversion, a form of which is annexed
hereto as Exhibit B, Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion
Date (such third day being the “Delivery Date”) that number of shares of Common Stock for the portion of the
Note converted in accordance with the foregoing. At the election of the Holder, CCGI will deliver accrued but unpaid interest
on the Note, if any, through the Conversion Date directly to the Holder on or before the Delivery Date. The number of shares of
Common Stock to be issued upon each conversion of this Note shall be determined by dividing that portion of the principal of the
Note and interest, if any, to be converted, by the Fixed Conversion Price.

 

(b)Subject
to adjustment as provided herein, the fixed conversion price per share shall be equal to $0.70 (“Fixed Conversion Price”).

 

(c)
The Fixed Conversion Price and number and kind of shares or other securities to be issued upon conversion determined pursuant
to Section 2.1(a), shall be subject to adjustment from time to time upon the happening of certain events while this conversion
right remains outstanding, as follows:

 

A.Merger,
Sale of Assets, etc. If (A) CCGI effects any merger or consolidation of CCGI with or into another entity, (B) CCGI effects
any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange
offer (whether by CCGI or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange
their shares for other securities, cash or property, (D) CCGI consummates a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more persons
or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other
persons or entities making or party to, such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the
“beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of CCGI, or (F) CCGI effects any reclassification of the Common Stock or any merger or voluntary or compulsory share
exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property
(in any such case, a “Fundamental Transaction”), this Note, as to the unpaid principal portion thereof and
accrued interest thereon, shall thereafter be deemed to evidence the right to convert into such number and kind of shares or other
securities and property as would have been issuable or distributable on account of such Fundamental Transaction, upon or with
respect to the securities subject to the conversion right immediately prior to such Fundamental Transaction. The foregoing provision
shall similarly apply to successive Fundamental Transactions of a similar nature by any such successor or purchaser. Without limiting
the generality of the foregoing, the anti-dilution provisions of this Section shall apply to such securities of such successor
or purchaser after any such Fundamental Transaction.

 

B.Reclassification,
etc. If CCGI at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number
of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid principal portion thereof
and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities
and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior
to such reclassification or other change.

 

    	 	 	 

     

    

 

C.Fundamental
Transaction. In the event CCGI undergoes a Fundamental Transaction, as a condition thereof, Borrower covenants and agrees
to cause the surviving entity to such transaction to assume the obligations under this Note, including the right to convert the
outstanding Principal and Interest hereon into common stock of the company into which shares of the Common Stock of Borrower are
exchanged or issues at the Fixed Conversion Price and upon the closing of such Fundamental Transaction, and as a condition thereof,
such company shall assume the obligations of Borrower as if named as Borrower herein.

 

(d)During
the period the conversion right exists, Borrower will reserve from its authorized and unissued Common Stock not less than an amount
of Common Stock equal to 120% of the amount of shares of Common Stock issuable upon the full conversion of this Note. Borrower
represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. Borrower agrees that
its issuance of this Note shall constitute full authority to its officers, agents, and transfer agents who are charged with the
duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon
the conversion of this Note.

 

2.2Method
of Conversion. This Note may be converted by the Holder in whole or in part as described in Section 2.1(a) hereof.
Upon partial conversion of this Note, a new Note containing the same date and provisions of this Note shall, at the request of
the Holder, be issued by the Borrower to the Holder for the principal balance of this Note and interest which shall not have been
converted or paid.

 

2.3.Maximum
Conversion. The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that
number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially
owned by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted
portion of the Note, and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which
the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock of CCGI on such Conversion Date. For the purposes
of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d)
of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall
not be limited to aggregate conversions of 4.99%. The Holder shall have the authority and obligation to determine whether the
restriction contained in this Section 2.3 will limit any conversion hereunder and to the extent that the Holder determines
that the limitation contained in this Section applies, the determination of which portion of the Notes are convertible shall be
the responsibility and obligation of the Holder.

 

2.4Registration
Rights.CCGI shall grant to the Holder or its assignees, for any shares of Common Stock issued pursuant to this Note, piggyback
registration rights, on Form S-3, Form SB-2, S-1 or such other form as may be applicable pursuant to the Securities Act of 1933
as amended in accordance with the terms set forth below. Except as provided herein, CCGI shall pay all expenses in connection
with all registration of shares of the Common Stock. Notwithstanding the foregoing, each of CCGI and the Holder shall be responsible
for its own internal administrative and similar costs, which shall not constitute registration expenses.

 

ARTICLE
III

EVENT
OF DEFAULT

 

The
occurrence of any of the following events of default (“Event of Default”) shall, at the option of the Holder
hereof, make all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately
due and payable, upon demand, without presentment, or grace period, all of which hereby are expressly waived, except as set forth
below:

 

3.1Failure
to Pay Principal or Interest. The Borrower fails to pay any installment of principal, interest or other sum due under this
Note when due.

 

3.2Breach
of Covenant. The Borrower breaches any material covenant or other term or condition of this Note in any material respect and
such breach, if subject to cure, continues for a period of ten (10) business days after written notice to the Borrower from the
Holder.

 

    	 	 	 

     

    

 

3.3Breach
of Representations and Warranties. Any material representation or warranty of the Borrower made herein, or in any agreement,
statement or certificate given in writing pursuant hereto or in connection therewith shall be false or misleading in any material
respect as of the date made.

 

3.4Liquidation.
Any dissolution, liquidation or winding up of Borrower or any substantial portion of its business.

 

3.5Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due.

 

3.6Receiver
or Trustee. The Borrower or any Subsidiary of Borrower shall make an assignment for the benefit of creditors, or apply for
or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a
receiver or trustee shall otherwise be appointed.

 

3.7Judgments.
Any money judgment, writ or similar final process shall be entered or filed against Borrower or any of its property or other assets
for more than $500,000, unless stayed vacated or satisfied within thirty (30) days.

 

3.8Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any
law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the
Borrower.

 

3.9Reservation
Default. Failure by the Borrower to have reserved for issuance upon conversion of the Note the number of shares of Common
Stock as required in this Note.

 

ARTICLE
IV

SECURITY
INTEREST

 

4.1Security
Interest. As Security for this amounts payable under this Note, CCGI hereby guarantees the payment of the amounts due hereunder
and further assigns, pledges, transfers and grants to Holder a first priority lien on and continuing security interest in all
of CCGI’s assets listed on Exhibit A hereto (collectively hereinafter referred to as the “Collateral”).
CCGI shall execute such documents as may be reasonably required by Holder to perfect its security interest in the Collateral (including,
without limitation, a financing statement and security agreement). This Promissory Note shall create a continuing security interest
in the Collateral and shall (a) remain in full force and effect until the payment in full of amounts due hereunder, (b) be binding
upon CCGI and its successors and assigns and (c) inure to the benefit of the Holder and its successors, transferees and assigns.
In the Event of an uncured Default, Holder shall have all of the rights and remedies of a secured party under the Uniform Commercial
Code as in effect in the State of Florida. Upon the payment in full of amounts due hereunder, the security interest granted hereby
shall terminate and all rights to the Collateral shall revert to CCGI. Upon any such termination, the Holder will execute and
deliver to CCGI such documents as CCGI shall reasonably request to evidence such termination. Notwithstanding anything to the
contrary, CCGI hereby pledges to the Holder, and creates in the Holder for its benefit, a first priority security interest for
such time until all of the obligations are paid in full, in and to all of the property and assets of CCGI including but not limited
to all of the property and assets as set forth in Exhibit “A” attached hereto, whether presently owned or existing
or hereafter acquired or coming into existence, and all additions and accessions thereto and all substitutions and replacements
thereof (collectively, the “Pledged Property”). 

 

4.2Waiver
of Automatic Stay. CCGI acknowledges and agrees that should a proceeding under any bankruptcy or insolvency law be commenced
by or against CCGI, or if any of the Collateral should become the subject of any bankruptcy or insolvency proceeding, then the
Holder should be entitled to, among other relief to which the Holder may be entitled under hereunder and/or applicable law, an
order from the court granting immediate relief from the automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder
to exercise all of its rights and remedies pursuant to this Note and/or applicable law. CCGI EXPRESSLY WAIVES THE BENEFIT OF THE
AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION 362. FURTHERMORE, CCGI EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION
362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105)
SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
UNDER THIS NOTE AND/OR APPLICABLE LAW. CCGI hereby consents to any motion for relief from stay that may be filed by the Holder
in any bankruptcy or insolvency proceeding initiated by or against CCGI and, further, agrees not to file any opposition to any
motion for relief from stay filed by the Holder. CCGI represents, acknowledges and agrees that this waiver is knowingly, intelligently
and voluntarily made, that neither the Holder nor any person acting on behalf of the Holder has made any representations to induce
this waiver, that CCGI has been represented (or has had the opportunity to he represented) in the signing of this Note and in
the making of this waiver by independent legal counsel selected by CCGI and that CCGI has discussed this waiver with counsel.

 

    	 	 	 

     

    

 

ARTICLE
V

MISCELLANEOUS

 

5.1Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

5.2Notices.
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, or (iv) 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 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 first 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: (i) if to the Borrower to: Car Charging Group, Inc., 1691 Michigan Avenue, Suite
601, Miami Beach, FL 33139, facsimile: (305) 521-0201 and (ii) if to the Holder, to the name, address and facsimile number set
forth on the front page of this Note.

 

5.3Amendment
Provision. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented. This Note may only be amended
or modified by a written document signed by Borrower and Holder.

 

5.4Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and
its successors and assigns. The Borrower may not assign its obligations under this Note except as required in connection with
a Fundamental Transaction or upon the prior written consent of Holder.

 

5.5Cost
of Collection. If default is made in the payment of this Note, Borrower shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys’ fees.

 

5.6Governing
Law, Venue, Waiver of Jury Trial. This Note shall be governed by and construed in accordance with the laws of the State of
Florida without regard to conflicts of laws principles that would result in the application of the substantive laws of another
jurisdiction. Any action brought by either party against the other concerning the transactions contemplated by this Agreement
must be brought only in the civil or state courts of Florida or in the federal courts located in the State of Florida, County
of Miami-Dade. Both parties and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction
of such courts. 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 Note 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 unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s
obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other
decision in favor of the Holder. THE HOLDER AND THE BORROWER HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE, ANY OTHER CONTRACT OR INSTRUMENT DELIVERED IN CONNECTION HEREWITH
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

    	 	 	 

     

    

 

5.7Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum rate permitted by applicable law. In the event that the rate of interest required to be paid or other
charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum rate shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

 

5.8Non-Business
Days. Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under the laws
of the State of Florida, such payment may be due or action shall be required on the next succeeding business day and, for such
payment, such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

 

5.9Redemption.
This Note may not be redeemed or called without the consent of the Holder except as described in this Note.

 

5.10Shareholders,
Officers and Directors Not Liable. In no event shall any shareholder, officer or director of Borrower be liable for any amounts
due or payable pursuant to this Note.

 

5.11Shareholder
Status. The Holder shall not have rights as a shareholder of the Borrower with respect to unconverted portions of this Note.
However, the Holder will have the rights of a shareholder of the Borrower with respect to the Shares of Common Stock to be received
after delivery by the Holder of a Conversion Notice to the Borrower.

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized officer as of the date and year first
above written.

 

	Borrower: CCGI /PAT, LLC	 
	 	 	 
	By:	 	 
	 	Mike
    Calise, Authorized Signatory	 
	 	 	 
	For Purposes of Article IV Only:	 
	CAR CHARGING GROUP, INC.	 
	 	 	 
	By:	 	 
	 	Mike
    Calise, Chief Executive Officer	 

 

    	 	 	 

     

    

 

Exhibit
A

DEFINITION OF COLLATERAL

 

For
the purpose of securing prompt and complete payment and performance by the Borrower of all of the obligations under the Note,
CCGI unconditionally and irrevocably hereby grants to the Holder (hereinafter the “Secured Party”) a continuing first
priority security interest in and to, and lien upon, the following pledged property of CCGI:

 

1all
cash, negotiable instruments, escrow funds, bank accounts, assets of all subsidiaries, shares of stocks of all subsidiaries, contract
rights, prepaid expenses and claims; 

 

(b)all
goods of CCGI, including, without limitation, machinery, equipment, computer, furniture, furnishings, fixtures, signs, lights,
tools, parts, supplies and motor vehicles of every kind and description, now or hereafter owned by CCGI or in which CCGI may have
or may hereafter acquire any interest, and all replacements, additions, accessions, substitutions and proceeds thereof, arising
from the sale or disposition thereof, and where applicable, the proceeds of insurance and of any tort claims involving any of
the foregoing;

 

(c)all
inventory of CCGI, including, but not limited to, all goods, wares, merchandise, parts, supplies, finished products, other tangible
personal property, including such inventory as is temporarily out of Company’s custody or possession and including any returns
upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing;

 

(d)all
contract rights and general intangibles of CCGI, including, without limitation, goodwill, trademarks, trade styles, trade names,
leasehold interests, partnership or joint venture interests, patents and patent applications, copyrights, deposit accounts whether
now owned or hereafter created;

 

(e)all
documents, warehouse receipts, instruments and chattel paper of CCGI whether now owned or hereafter created, including without
limitation all files, records, books of account, business papers and computer programs;

 

(f)all
accounts and other receivables, instruments or other forms of obligations and rights to payment of CCGI (herein collectively referred
to as “Accounts”), together with the proceeds thereof, all goods represented by such Accounts and all such
goods that may be returned by CCGI’s customers, and all proceeds of any insurance thereon, and all guarantees, securities
and liens which CCGI may hold for the payment of any such Accounts including, without limitation, all rights of stoppage in transit,
replevin and reclamation and as an unpaid vendor and/or lienor, all of which CCGI represents and warrants will be bona fide and
existing obligations of its respective customers, arising out of the sale of goods by CCGI in the ordinary course of business;

 

(g)to
the extent assignable, all of CCGI’s rights under all present and future authorizations, permits, licenses and franchises
issued or granted in connection with the operations of any of its facilities; and

 

(h)all
products and proceeds (including, without limitation, insurance proceeds) from the above-described Pledged Property.

 

    	 	 	 

     

    

 

Exhibit
B

NOTICE OF CONVERSION

 

(To
be executed by the Registered Holder in order to convert the Note)

 

The
undersigned hereby elects to convert $_________ of the principal and $_________ of the interest due on the Note issued by CCGI/PAT,
LLC on June 24, 2016 into Shares of Common Stock of CAR CHARGING GROUP, INC. (the “Borrower”) according to the conditions
set forth in such Note, as of the date written below.

 

Date
of Conversion:____________________________________________________________________

 

Conversion
Price:______________________________________________________________________

 

Number
of Shares of Common Stock Beneficially Owned on the Conversion Date: __________________

 

Shares
To Be Delivered:_________________________________________________________________

 

Signature:___________________________________________________________________________

 

Print
Name:_________________________________________________________________________

 

Address:____________________________________________________________________________

 

____________________________________________________________________________

 

    	 	 	 

     

    

 

Exhibit
C

WARRANT

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