Document:

Exhibit 10.5

 

LINE
OF CREDIT AGREEMENT

 

$150,000

 

Dated:
December 8, 2013

 

FOR
VALUE RECEIVED, Mullen Motor Company, a California corporation with an address at 300 and 308 East Second Avenue, La Habra, California
90631 (referred to herein as "Debtor"), hereby irrevocably promises and agrees to pay to the order of Primco
Management Inc., a Delaware corporation with an address at 1875 Century Park East 6th Floor, Suite 73, Century City,
CA 90067 ("Creditor"), or at such other place as set forth herein or as designated in writing by the Holder (as
defined below) hereof, in lawful money of the United States of America, the principal sum of up to one hundred and fifty thousand
dollars ($150,000), together with interest thereon (if any) and other fees in connection therewith, all in accordance with the
terms and conditions set forth below.

 

1.        There
will be no interest on the unpaid principal balance up until December 31, 2014. Starting January 1, 2015, the principle balance
on this line of credit will accrue interest at 4% per annum. The line of credit shall be due on or before December 31, 2015.

 

2.        Creditor
may not sell, assign, transfer, pledge or hypothecate this Line of credit and any or all of its rights and remedies hereunder
at any time, without notice to Creditor.

 

3.        Debtor
may prepay any amount due hereunder, in whole or in part, at any time without penalty or premium for such early payment. Debtor
shall also be entitled to offset against this Line of credit any amount owed by Creditor to Debtor, including without limitation
any losses or expenses actually incurred by Debtor as a result of a breach by Creditor of any of its obligations between Debtor
and Creditor.

 

4.        If
(a) any payment or delivery required by this Line of credit is not made when due hereunder, or any obligation or covenant undertaken
by Debtor hereunder is not performed or observed as and when required hereby, (b) Debtor defaults in the performance of any obligation
evidenced by this Line of credit, (c) any representation or warranty made by Debtor in this Line of credit or any other instrument,
agreement or document delivered by Debtor or any other party for Debtor's benefit in connection herewith proves to have been materially
false or inaccurate when made, (d) any event of default occurs under any instrument securing the obligations evidenced by this
Line of credit, or (e) Debtor files an assignment for the benefit of creditors or for relief under any provisions of the Bankruptcy
Code, or suffers an involuntary petition in bankruptcy or receivership to be filed and not vacated within 30 days, then the Holder
may at its sole option consider the entire unpaid principal balance and accrued but unpaid interest hereunder at once become due
and payable without notice (time being the essence hereof). The exercise or failure to exercise such remedy shall not constitute
a waiver of the right to exercise such remedy or preclude the exercise of any other remedy in the event of any subsequent default,
event or circumstance that gives rise to such right of acceleration.

 

5.        In
the event that any payment under this Line of credit is not made at the time and in the manner required (whether before or after
maturity), Debtor agrees to pay any and all costs and expenses (regardless of the particular nature thereof and whether incurred
before or after the initiation of suit or before or after judgment) which may be incurred by Holder in connection with the enforcement
of any of its rights under this Line of credit, including, but not limited to, attorneys' fees and all costs and expenses of collection.

 

6.        Debtor,
on behalf of itself and all sureties, guarantors, and endorsers hereof, if any, hereby waives presentment for payment, demand,
and notice of dishonor and nonpayment of this Line of credit, and consents to any and all extensions of time, renewals, waivers,
or modifications that may be granted by Holder with respect to the payment or other provisions of this Line of credit, and to
the release of any security, or any part thereof, with or without substitution.

 

7.        The
failure of Holder in any one or more instances to insist upon strict performance of any of the terms and provisions of this Line
of credit, or to exercise any option conferred herein shall not be construed as a waiver or relinquishment, to any extent, of
the right to assert or rely upon any such terms, provisions or options on any future occasion.

 

    	 

    	 

    

  

8.        This
Line of credit is delivered in the State of California and shall be governed by and construed in accordance with the laws of said
state, without giving effect to any conflict of laws provisions. This Line of credit shall bind the successors and assigns of
Debtor and shall inure to benefit of the successors and assigns of Creditor.

 

9.        This
Line of credit constitutes the entire understanding and agreement between the parties with regard to the subject matters hereof
and thereof, and supersedes and replaces any prior understanding or agreement, oral or written, relating to such subject matters.

 

IN
WITNESS WHEREOF, Debtor has executed this Line of credit on or as of the day and year first above written.

 

	 	Primco
    Management, Inc. (Creditor)
	 	 
	 	Name:	David
    Michery
	 	Signature:	/s/
    David Michery
	 	Date:	12-8-13
	 	 	 
	 	Mullen
    Motor Company (Debtor)
	 	 	 
	 	Name:	David
    Michery
	 	Signature:	/s/
    David Michery
	 	Date:	12-8-13Exhibit
10.8

 

PRIMCO
MANAGEMENT, INC.

 

$90,000.00

 

FIVE
PERCENT (5%) CONVERTIBLE NOTE

DATED AS OF FEBRUARY 28, 2014

 

THIS
NOTE (the "Note") is a duly authorized Convertible Note of Primco Management, Inc., a Delaware corporation (the "Company").
This Note is a replacement for the indebtedness of the Company to Pegasus Capital, Inc. assigned to the Holder (as defined below)
pursuant to that certain Debt Purchase Agreement of even date (the "Agreement"). By execution below, the Company affirms
the Debt de novo represented by the original indebtedness. All terms capitalized in this Note but not defined will have the meanings
as defined in the Agreement.

 

FOR
VALUE RECEIVED, the Company promises to pay SFH Capital, LLC (the "Holder"), the principal sum of Ninety Thousand United
States Dollars ($90,000) (the "Principal Amount") or such lesser principal amount following the conversion or conversions
of this Note in accordance with Paragraph 2 (the "Outstanding Principal Amount") on February 28, 2015 (the "Maturity
Date"), and to pay interest on the Outstanding Principal Amount ("Interest") in a lump sum on the Maturity Date,
at the rate of Five Percent (5%) per Annum (the "Rate") from the date of issuance.

 

Accrual
of Interest shall commence on the date of this Note and continue until the Company repays or provides for repayment in full the
Outstanding Principal Amount and all accrued but unpaid Interest. Accrued and unpaid Interest shall bear Interest at the Rate
until paid, compounded monthly. The Outstanding Principal Amount of this Note is payable on the Maturity Date in such coin or
currency of the United States as at the time of payment is legal tender for payment of public and private debts, at the address
last appearing on the Note Register of the Company as designated in writing by the Holder from time to time. The Company may prepay
principal and interest on this Note at any time before the Maturity Date.

 

The
Company will pay the Outstanding Principal Amount of this Note on the Maturity Date, free of any withholding or deduction of any
kind (subject to the provision of paragraph 2 below), to the Holder as of the Maturity Date and addressed to the Holder at the
address appearing on the Note Register.

 

This
Note is subject to the following additional provisions:

 

1.        All
payments on account of the Outstanding Principal Amount of this Note and all other amounts payable under this Note (whether made
by the Company or any other person) to or for the account of the Holder hereunder shall be made free and clear of and without
reduction by reason of any present and future income, stamp, registration and other taxes, levies, duties, cost, and charges whatsoever
imposed, assessed, levied or collected by the United States or any political subdivision or taxing authority thereof or therein,
together with interest thereon and penalties with respect thereto, if any, on or in respect of this Note (such taxes, levies,
duties, costs and charges being herein collectively called "Taxes").

 

    	1

    	 

    

 

 

2.        The
Holder of this Note is entitled, at its option, at any time after the issuance of this Note, to convert all or any lesser portion
of the Outstanding Principal Amount and accrued but unpaid Interest into common stock of the Issuer (the "Common Stock")
at a conversion price for each share of Common Stock equivalent to Fifty Percent (50%) of the lowest closing bid price for the
Issuer's Common Stock, during the Ten (10) trading days immediately preceding a conversion date, as reported by Bloomberg, unless
otherwise modified by mutual agreement between the Parties (the "Conversion Price"). (The Common stock into which the
Note is converted shall be referred to in this agreement as "Conversion Shares.") The Issuer will not be obligated to
issue fractional Conversion Shares. The Holder may convert this Note into Common Stock by surrendering the Note to the Company,
with the form of conversion notice attached to the Note as Exhibit A, executed by the Holder of the Note evidencing such Holder's
intention to convert the Note.

 

The
Company will not issue fractional shares or scrip representing fractions of shares of Common Stock on conversion, but the Company
will round the number of shares of Common Stock issuable up to the nearest whole share. The date on which a Notice of Conversion
is given shall be deemed to be the date on which the Holder notifies the Company of its intention to so convert by delivery, by
facsimile transmission or otherwise, of a copy of the Notice of Conversion. Notice of Conversion may be sent by facsimile to the
Company, attn: Mr. David Michery, Chairman. The Holder will deliver this Note, together with original executed copy of the Notice
of Conversion, to the Company within three (3) business days following the Conversion Date. At the Maturity Date, the Company
will pay any unconverted Outstanding Principal Amount and accrued Interest thereon, at the option of the Company, in either (a)
cash or (b) Common Stock valued at a price equal to the Conversion Price determined as if the Note was converted in accordance
with its terms into Common Stock on the Maturity Date.

 

3.        No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to the payment
of the Outstanding Principal Amount of this Note at the Maturity Date, and in the coin or currency herein prescribed. This Note
and all other Notes now or hereafter issued on similar terms are direct obligations of the Company. In the event of any liquidation,
reorganization, winding up or dissolution, repayment of this Note, except as excluded below, shall not be subordinate in any respect
to any other indebtedness of the Company outstanding as of the date of this Note or hereafter incurred by the Company.

 

Such
non-subordination shall exclude any and all indebtedness of the Company to banks, financial institutions, other secured lenders,
equipment lessors and equipment finance companies, but shall include trade debts. Any warrants, options or other securities convertible
into stock of the Company issued before the date hereof shall rank pari passu with the Note in all respects.

 

4.        If
at any time or from time to time after the date of this Note, the Common Stock issuable upon the conversion of the Note is changed
into the same or different numbers of shares of any class or classes of stock, whether by recapitalization or otherwise, then
in each such event the Holder shall have the right thereafter to convert the Note into the kind of security receivable in such
recapitalization, reclassification or other change by holders of Common Stock, all subject to further adjustment as provided herein.
In such event, the formulae set forth herein for conversion and redemption shall be equitably adjusted to reflect such change
in number of shares or, if shares of a new class
of stock are issued, to reflect the market price of the class or classes of stock issued in connection with the above described
transaction.

 

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5.        If
one or more of the "Events of Default" as described in the Agreement shall occur, the Company agrees to pay all costs
and expenses, including reasonable attorney's fees, which the Holder may incur in collecting any amount due under, or enforcing
any terms of, this Note.

 

6.        Prepayment.
At any time that the Note remains outstanding, upon three business days written notice (the "Prepayment Notice") to
the Holder, the Company may pay One Hundred and Fifty Percent (150%) of the entire Outstanding Principal Amount of the Note plus
any accrued but unpaid Interest. If the Company gives written notice of prepayment, the Holder continues to have the right to
convert principal and interest on the Note into Conversion Shares until three business days elapses from the Prepayment Notice.

 

7.        The
Company covenants that until all amounts due under this Note are paid in full, by conversion or otherwise, unless waived by the
Holder or subsequent Holder in writing, the Company shall:

 

(i)
give prompt written notice to the Holder of any Event of Default or of any other matter which has resulted in, or could reasonably
be expected to result in a materially adverse change in its financial condition or operations;

 

(i)
give prompt notice to the Holder of any claim, action or proceeding which, in the event of any unfavorable outcome, would or could
reasonably be expected to have a Material Adverse Effect (as defined in the Note Purchase Agreement) on the financial condition
of the Company;

 

(iii)
at all times reserve and keep available out of its authorized but unissued Common Stock, for the purpose of effecting the conversion
of this Note into Common Stock, such number of its duly authorized shares of Common Stock as shall from time to time be sufficient
to effect the conversion of the Outstanding Principal Amount of this Note into Common Stock.

 

8.        Upon
receipt by the Company of evidence from the Holder reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Note,

 

(i)
in the case of loss, theft or destruction, upon provision of indemnity reasonably satisfactory to it and/or its transfer
agent, or

 

(ii)
in the case of mutilation, upon surrender and cancellation of this Note,

 

then
the Company at its expense will execute and deliver to the Holder a new Note, dated the date of the lost, stolen, destroyed or
mutilated Note, and evidencing the outstanding and unpaid principal amount of the lost, stolen, destroyed or mutilated Note.

 

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9.        If
any term in this Note is found by a court of competent jurisdiction to be unenforceable, then the entire Note shall be rescinded,
the consideration proffered by the Holder for the remaining Debt acquired by the Holder not converted by the Holder in accordance
with this Note shall be returned in its entirety and any Conversion Shares in the possession or control of the Investor shall
be returned to the Issuer.

 

10.        The
Note and the Agreement between the Company and the Holder (including all Exhibits thereto) constitute the full and entire understanding
and agreement between the Company and the Holder with respect to the subject hereof. Neither this Note nor any term hereof may
be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11.        This
Note shall be governed by and construed in accordance with the internal laws of the State of Delaware.

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized, as of the
date first written above.

 

	 	PRIMCO
    MANAGEMENT, INC.
	 	 
	 	By:	/s/
    David Michery
	 	 	David
    Michery, President and Director

 

 

4

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