Document:

Exhibit 10.2

 

NEITHER THIS CONVERTIBLE NOTE NOR THE SECURITIES
ISSUABLE UPON THE CONVERSION HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), 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 TO THE HOLDER (IF
REQUESTED BY THE COMPANY), FROM REPUTABLE COUNSEL, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO
BE SOLD PURSUANT TO RULE 144 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. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE
TERMS OF THIS NOTE, INCLUDING SECTIONS 2(c)(vi) AND 8 HEREOF.  THE PRINCIPAL AMOUNT REPRESENTED BY THIS
NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT
TO SECTION 2(c)(vi) OF THIS NOTE. 

 

Mullen
Automotive Inc.

 

Convertible
Note

 

	Issuance Date:  November 15, 2022	Original Principal Amount: U.S. $[●]

 

FOR VALUE RECEIVED, Mullen
Automotive Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of [●] or its registered
assigns (“Holder”) the principal sum set forth above as the Original Principal Amount (as reduced pursuant to the terms
hereof pursuant to redemption or otherwise, the “Principal Amount”) together with interest on any outstanding Principal
(as such interest on any outstanding Principal may be reduced pursuant to the terms hereof pursuant to redemption or otherwise) from the
date set out above as the Issuance Date. This Convertible Note (with all notes issued in exchange, transfer or replacement hereof, this
 “Note”) is one of an issue of convertible notes of the Company (collectively, the “Convertible Notes”)
issued pursuant to that certain Securities Purchase Agreement, dated as of June 7, 2022, by and between the Company, Holder and other
investors named therein (the “Securities Purchase Agreement”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Securities Purchase Agreement.

 

1.             
Payments of Principal and Interest. Interest and principal under this Note shall be payable as follows:

 

(a)         Except
as otherwise provided in this Note, the outstanding Principal Amount shall accrue interest at an annual rate equal to the Interest Rate
from the date of this Note until the entire Principal Amount is paid in full, whether at maturity, upon acceleration, by prepayment, or
otherwise.

 

(b)        The
Company shall pay accrued interest at the Interest Rate on the Principal Amount in arrears on the last Business Day of each calendar year
quarter (each an “Interest Payment Date”), with the first interest payment accrued on the outstanding Principal Amount
due on December 31, 2022.

 

(c)         Unless
earlier converted into shares of Common Stock, the outstanding Principal and accrued but unpaid interest of this Note will be due and
payable by the Company on November 15, 2023 (the “Maturity Date”).

 

(d)         From
and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased to twenty
percent (20.0%) per annum. In the event that such Event of Default is subsequently cured, the adjustment referred to in the preceding
sentence shall cease to be effective as of the date of such cure; provided that the Interest as calculated and unpaid at such increased
rate during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of
such Event of Default through and including the date of such cure of such Event of Default.

 

     

     

    

 

(e)         All
computations of interest shall be made on the basis of the actual number of days elapsed in a year of 360 days. Interest shall commence
to accrue on the Principal Amount on the Execution Date and shall not accrue on the Principal Amount on the day on which it is paid if
payment is made to Holder prior to 12:00 p.m. ET. Any payment of principal on this Note after 12:00 p.m. ET on any Business Day shall
be credited against this Note on the next Business Day and interest will continue to accrue until so credited.

 

(f)          All
payments made under this Note will be made in lawful money of the United States of America at the principal office of the Company, or
at such other place as the Holder may from time to time designate in writing to the Company. Payment will be credited first to accrued
interest due and payable, with any remainder applied to Principal.

 

(g)         The
agreements made by Company with respect to this Note and the other Transaction Documents are expressly limited so that in no event shall
the amount of interest received, charged, or contracted for by Holder exceed the highest lawful amount of interest permissible under the
laws applicable to the Loan. If at any time performance of any provision of this Note or the other Transaction Documents results in the
highest lawful rate of interest permissible under applicable laws being exceeded, then the amount of interest received, charged, or contracted
for by Holder shall automatically and without further action by any party be deemed to have been reduced to the highest lawful amount
of interest then permissible under applicable laws. If Holder shall ever receive, charge, or contract for, as interest, an amount which
is unlawful, at Holder’s election, the amount of unlawful interest shall be refunded to the Company (if actually paid) or applied
to reduce the then unpaid Principal Amount. To the fullest extent permitted by applicable laws, any amounts contracted for, charged, or
received under the Transaction Documents included for the purpose of determining whether the Interest Rate would exceed the highest lawful
rate shall be calculated by allocating and spreading such interest to and over the full stated term of this Note.

  

2.              Conversion.
This Note shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock on the terms and conditions set
forth in this Section 2.

 

(a)         Conversion.
The Holder’s rights and obligations with regard to the conversion of this Note are as follows:

 

(i)          Holder’s
Conversion Right. Subject to the provisions of Section 2(e), at any time or times on or after the Execution Date, the Holder shall
be entitled to convert any portion or the entirety of the outstanding Principal and/or accrued interest under this Note into validly
issued, fully paid and non-assessable shares of Common Stock in accordance with Section 2(c). 

 

(ii)         Mandatory
Conversion. Subject to the provisions of Section 2(e), the outstanding Principal and accrued but unpaid interest shall automatically
and mandatorily (and without further action required) be converted into validly issued, fully paid and non-assessable shares of Common
Stock on November 21, 2022, provided, however, that the number of shares of Common Stock issued upon the mandatory conversion of the
Note under this Section 2(a)(ii), when combined with the number of authorized shares of Common Stock then outstanding on November 21,
2022, shall be less than the number of shares of Common Stock authorized pursuant to the Company’s certificate of incorporation.

 

Any such portion of the outstanding
Principal and/or accrued interest to be converted in accordance with this Section 2 is referred to herein as the “Note Conversion
Amount.”

 

(b)         Securities
Issued Upon Conversion

 

(i)          Number
of shares of Common Stock. The number of shares of Common Stock issuable upon conversion of the Note Conversion Amount shall be determined
according to the following formula: 

 

Note Conversion Amount

Note Conversion Price

 

     

     

    

 

No fractional shares of Common
Stock are to be issued upon the conversion of this Note. If the issuance would result in the issuance of a fraction of a share, the Company
shall round such fraction of a share up to the nearest whole share.

 

(ii)         Warrants.
For no additional consideration, for every share of Common Stock issued to Holder upon conversion of this Note, the Holder shall receive
five-year Warrants in the form included as Exhibit A to the Securities Purchase Agreement exercisable for 1.85 shares of Common Stock
at an exercise price equal to the applicable Note Conversion Price.

  

(c)         Mechanics
of Conversion. The conversion shall be conducted in the following manner:

 

(i)          Holder’s
Conversion. To convert all or a portion of this Note into shares of Common Stock on any date or, if later, the Issuance Date (a “Conversion
Date”), a Holder shall deliver to the Company (whether via facsimile or otherwise), for receipt on or prior to 11:59 p.m., New
York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the
 “Conversion Notice”). 

 

(ii)         Company’s
Response. Not later than the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company
shall transmit by email an acknowledgment of confirmation, in the form attached hereto as Exhibit B, of receipt of
such Conversion Notice to such Holder and the Company’s transfer agent (the “Transfer Agent”), which confirmation
shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before
the second (2nd) Trading Day following the date of receipt by the Company of such Conversion Notice (the “Required
Delivery Date”), the Company shall (1) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program (which the Company shall cause the Transfer Agent to do at Holder’s request) and provided
the legends would be eligible to be removed from such shares of Common Stock pursuant to the Securities Purchase Agreement, upon the request
of the Holder, credit such aggregate number of Conversion Shares to which the Holder is entitled pursuant to such conversion to the Holder’s
or its designee’s balance account with DTC through its Deposit/ Withdrawal at Custodian system, or (2) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program or the legends would not be eligible to be removed from such shares
of Common Stock pursuant to the Securities Purchase Agreement, issue and deliver to the Holder or, at the Holder’s instruction pursuant
to the Conversion Notice, the Holder’s agent or designee, in each case, in uncertificated form by means of a book-entry kept by
the Company’s transfer agent and registrar in the name of the Holder or its designee (as indicated in the applicable Conversion
Notice), for the number of shares of Common Stock to which the Holder is entitled pursuant to such conversion.  

 

(iii)         Record
Holder. Upon delivery of a Conversion Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record
of the shares of Common Stock with respect to which such Conversion Notice was issued, irrespective of the date such shares of Common
Stock are credited to the Holder’s DTC account or the date of delivery in uncertificated form by means of a book-entry evidencing
such shares of Common Stock.

 

(iv)         Company’s
Failure to Timely Deliver Securities. If the Company fails to issue and deliver (or cause to be delivered) to the Holder by the Required
Delivery Date confirmation of the issuance of the shares of Common Stock in uncertificated form by means of a book-entry representing
the shares of Common Stock or credit the balance account of Holder or Holder’s nominee with DTC for such number of shares of Common
Stock so delivered to the Company, then, in addition to all other remedies available to Holder, at the sole discretion of Holder, the
Company shall: 

 

(A) pay in cash to Holder on
each Trading Day after the Required Delivery Date that the issuance or credit of such shares of Common Stock is not timely effected an
amount equal to 1% of the product of (A) the number of shares of Common Stock not so delivered or credited (as the case may be) to Holder
or Holder’s nominee multiplied by (B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the Required
Delivery Date; or

 

     

     

    

 

(B) if on or after the Required
Delivery Date, Holder (or any other Person in respect, or on behalf, of Holder) purchases (in an open market transaction or otherwise)
shares of Common Stock (“Replacement Shares”) to deliver in satisfaction of a sale by Holder of all or any portion
of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of
shares of Common Stock, that Holder so anticipated receiving from the Company without any restrictive legend, then, within five (5) Trading
Days after Holder’s request and in Holder’s sole discretion, either (x) pay cash to Holder in an amount equal to Holder’s
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the Replacement Shares (the “Buy-In
Price”), at which point the Company’s obligation to so deliver such certificate or credit Holder’s balance account
shall terminate and such shares shall be cancelled, or (y) promptly honor its obligation to so credit the balance account of Holder or
Holder’s nominee with DTC for such number of shares of Common Stock or deliver to Holder in uncertificated form by means of a book-entry
such number of shares of Common Stock that would have been so delivered if the Company timely complied with its obligations hereunder
and pay cash to Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (1) such number of shares of
Common Stock that the Company was required to deliver to Holder by the Required Delivery Date multiplied by (2) the lowest Closing Sale
Price of the Common Stock on any Trading Day during the period commencing on the date Holder purchased Replacement Shares and ending on
the date of such delivery and payment under this clause (B).

 

To the extent permitted by law, the Company’s
obligations to issue and deliver the shares of Common Stock in accordance with the terms hereof are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder or any other person of any obligation to the Company or any violation or alleged violation
of law by the Holder or any other person, and irrespective of any other circumstance that might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of the shares of Common Stock. Nothing herein shall limit the Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver the shares of Common Stock as required pursuant
to the terms hereof.

 

(v)         Disputes.
In the case of a dispute as to the determination of the Note Conversion Price or the arithmetic calculation of the number of shares of
Common Stock to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of shares of Common
Stock that are not disputed, provided that following such issuance to Holder such dispute shall be resolved in accordance with Section
23.

 

(vi)        Book-Entry.
Notwithstanding anything to the contrary set forth in this Section 2, upon conversion of any portion of this Note in accordance with the
terms hereof, no Holder thereof shall be required to physically surrender this Note to the Company. If this Note is surrendered as provided
by Section 8, then, provided that there remains outstanding Principal and accrued interest under this Note at the time of surrender, the
Company shall, as soon as practicable and in no event later than three (3) Trading Days after receipt of this Note and at its own expense,
issue and deliver to such Holder (or its designee) a new Note (in accordance with Section 8(d)) representing the outstanding Principal
and accrued interest (if any) under this Note. Each Holder and the Company shall maintain records showing the portion of the Note
so converted by such Holder and the dates of such conversions or shall use such other method, reasonably satisfactory to such Holder and
the Company, so as not to require physical surrender of the Note upon each such conversion. In the event of any dispute or discrepancy,
such records of such Holder establishing the portion of the Note to which the record holder is entitled shall be controlling and determinative
in the absence of manifest error. A Holder and any transferee or assignee, by acceptance of a certificate, acknowledge and agree that,
by reason of the provisions of this paragraph, following conversion of any portion of the Note, the outstanding Principal represented
by such Note may be less than stated on the face thereof.  Each Note shall bear the following legend:

 

ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY
REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 2(c)(vi) AND 8(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY,
THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 2(c)(vi)
OF THIS NOTE. 

 

     

     

    

 

(d)         Taxes.
The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof), issuance and other
similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon the conversion of the Note.

 

(e)         Limitation
on Beneficial Ownership, Exchanges. Notwithstanding anything to the contrary contained in this Note, this Note shall not be convertible
or exchangeable by the Holder hereof to the extent (but only to the extent), after giving effect to the issuance of Common Stock issuable
upon such conversion, the Holder or any of its affiliates would beneficially own in excess of 9.9% of the number of shares of Common Stock
then outstanding, as calculated in accordance with Section 13(d) of the Exchange Act (the “Maximum Percentage”). To
the extent the above limitation applies, the determination of whether this Note shall be convertible or exchangeable (vis-à-vis
other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities shall
be convertible, exercisable or exchangeable (as among all such securities owned by the Holder) shall, subject to such Maximum Percentage
limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be).
No prior inability to convert or exchange this Note pursuant to this paragraph shall have any effect on the applicability of the provisions
of this paragraph with respect to any subsequent determination of convertibility or exchangeability. For the purposes of this paragraph,
beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial
ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum
Percentage limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Note. The holders of Common
Stock shall be third party beneficiaries of this paragraph and the Company may not waive this paragraph without the consent of holders
of a majority of its Common Stock. For any reason at any time, upon the written or oral request of the Holder, the Company shall within
two (2) Business Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding, including by
virtue of any prior conversion or exercise or exchange of convertible or exercisable or exchangeable securities into shares of Common
Stock, including, without limitation, pursuant to this Note or securities issued pursuant to the Securities Purchase Agreement. In addition,
under no circumstances whatsoever may the aggregate number of shares of Common Stock issuable to the Holder in connection with the conversion
or exchange by the Holder of this Note, when added to the aggregate number of shares of Common Stock issuable in connection with the conversion
or exchange of all other Convertible Notes, at any time exceed 19.9% of the total number of shares of Common Stock outstanding or of the
voting power of the Common Stock (the “Exchange Maximum”) as of the Execution Date unless the Company has obtained
stockholder approval in compliance with Nasdaq Listing Rule 5635(d) to authorize the issuance of shares of Common Stock in connection
with the conversion or exchange of all Convertible Notes (the “Stockholder Approval”) and thereafter the approval from
the Principal Market (“Exchange Approval”).

 

(f)         Reservation
of Shares; Insufficient Authorized Shares.  The Company shall initially reserve out of its authorized and unissued shares
of Common Stock a number of shares of Common Stock equal to 100% of the maximum number of shares of Common Stock issuable to satisfy
the Company's obligations to issue shares of Common Stock hereunder, and the Company shall at all times keep reserved for issuance under
this Note a number of shares of Common Stock equal to 100% of the maximum shares of Common Stock issuable to satisfy the Company’s
obligation to issue shares of Common Stock hereunder.

 

3.             
Rights upon Event of Default; Acceleration.

 

(a)          Event
of Default.  Each of the following events shall constitute an “Event of Default”:

 

(i)         the Company’s
failure to obtain Stockholder Approval and thereafter Exchange Approval on December 23, 2022;

 

     

     

    

 

(ii)     the Company’s
failure from the date that is ten (10) calendar days after obtaining Exchange Approval to maintain sufficient reserves of its authorized
and unissued shares of Common Stock to redeem 100% of the maximum number of shares of Common Stock issuable upon conversion of all the
Convertible Notes then outstanding;

 

(iii)     the Company’s
failure from the date that is ten (10) calendar days after obtaining Exchange Approval to maintain sufficient reserves of its authorized
and unissued shares of Common Stock to redeem 200% of the Warrant Shares that would be issuable upon exercise thereof;

 

(iv)    the
Company’s (A) failure to timely deliver the required number of shares of Common Stock upon conversion of this Note or the required
number of shares of Common Stock upon exercise of the Warrants, and any such failure remains uncured for a period of five (5) Business
Days, or (B) notice, written or oral, to any holder of the Convertible Notes or Warrants, including, without limitation, by way of public
announcement or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of
any Convertible Notes into shares of Common Stock that is requested in accordance with the provisions of the Convertible Notes, in each
case, other than pursuant to Section 2(e) of this Note or any comparable provision of the Warrants; 

 

(v)    the
Company’s or any Subsidiary’s failure (A) to pay to the Holder any amount of Principal or Interest when and as due under this
Note or (B) to pay to the Holder, within five (5) days after the delivery by the Holder of written notice thereof, any amount or penalties
or other amounts due under this Note or any amount due under any other Transaction Document (as defined in the Securities Purchase Agreement)
or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated hereby and
thereby;

 

(vi)    the
Company fails to remove any restrictive legend on any certificate or any Common Stock issued to the Holder upon conversion or exercise
(as the case may be) of any shares of Preferred Stock acquired by the Holder under the Securities Purchase Agreement as and when required
by the Securities Purchase Agreement or by the terms of such Securities, unless otherwise then prohibited by applicable federal securities
laws, and any such failure remains uncured for a period of five (5) Business Days;

 

(vii)    the
occurrence of (A) any default under or acceleration prior to maturity of any Indebtedness (as defined in the Securities Purchase Agreement,
but excluding clause (E) of such definition and clauses (F) and (G) to the extent they relate to Indebtedness describe in clause (E))
of the Company or any of its Subsidiaries in an aggregate amount in excess of $300,000, subject to any cure or grace period provided in
the governing documents of such Indebtedness, or (B) a payment default under any such Indebtedness, if such default remains uncured for
a period of ten (10) consecutive Trading Days;

 

(viii)    bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or against
the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed within
thirty (30) days of their initiation;

 

(ix)    the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or any
Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law,
or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of
its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the
occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its
debts generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any
such action or the taking of any action by any Person to commence a UCC foreclosure sale or any other similar action under federal,
state or foreign law;

 

     

     

    

 

(x)    the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar
law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or insolvent, or approving
as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company
or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order, judgment or other similar document appointing
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any
substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order,
judgment or other similar document or any such other decree, order, judgment or other similar document unstayed and in effect for a period
of thirty (30) consecutive days;

 

(xi)    a
final judgment, judgments, any arbitration or mediation award or any settlement of any litigation or any other satisfaction of any claim
made by any Person pursuant to any litigation, as applicable, (each a “Judgment”, and collectively, the “Judgments”)
with respect to the payment of cash, securities and/or other assets with an aggregate fair value (as determined in accordance with Section
6(a)(iv) below) in excess of $300,000 are rendered against, agreed to or otherwise accepted by, the Company and/or any of its Subsidiaries
and which Judgments are not, within thirty (30) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not
discharged within thirty (30) days after the expiration of such stay; provided, however, any Judgment which is covered by insurance or
an indemnity from a credit worthy party shall not be included in calculating the $300,000 amount set forth above so long as the Company
provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory
to the Holder) to the effect that such Judgment is covered by insurance or an indemnity and the Company or such Subsidiary (as the case
may be) will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance of such Judgment;

 

(xii)    other
than as specifically set forth in another clause of this Section 3(a), the Company or any Subsidiary breaches any representation
or warranty when made, or any covenant or other term or condition of any Transaction Document, and, only, in the case of a breach of a
covenant or other term or condition that is curable, if such breach remains uncured for a period of ten (10) consecutive Trading Days
after the delivery by Holder of written notice thereof;

 

(xiii)    any
breach or failure in any respect by the Company or any subsidiary to comply with any provision of Section 11 of this Note, and any such
breach or failure remains uncured for a period of ten (10) consecutive Trading Days after the delivery by Holder of written notice thereof;

 

(xiv)    any
provision of any Transaction Document (shall at any time for any reason (other than pursuant to the express terms thereof)) cease to be
valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested by any party
thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having jurisdiction over any
of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary shall deny in writing that
it has any liability or obligation purported to be created under any Transaction Document.

  

Upon the occurrence of an
Event of Default with respect to this Note the Company shall promptly, but in no case later than two (2) Business Days, deliver written
notice thereof via email and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to
the Holder.

 

(b)    Remedies.
Upon the occurrence of an Event of Default and at any time thereafter, Holder may at its option: (a) declare the entire principal
amount of this Note, together with all accrued interest thereon, immediately due and payable; and (b) exercise any or all of its
rights, powers, or remedies under the Transaction Documents or applicable law or available in equity; provided, however that, if an
Event of Default described in Sections 3(a)(viii)-(x) of this Note shall occur, the principal of and accrued interest shall
become immediately due and payable automatically and without any notice, declaration, or other act on the part of Holder.

 

(c)    Acceleration
by Subsidiary Spin-Off. Upon the occurrence of a Subsidiary Spin-Off and at any time thereafter, Holder may at its option declare
the entire principal amount of this Note, together with all accrued interest thereon, immediately due and payable. 

 

     

     

    

 

4.       Adjustment of Note Conversion
Price and Number of shares of Common Stock. The Note Conversion Price and number of shares of Common Stock issuable upon conversion
of this Note are subject to adjustment from time to time as set forth in this Section 4.

 

(a)       [Reserved].

 

(b)      Stock
Dividends and Splits. Without limiting any provision of Section 6, if the Company, at any time on or after the date of the Securities
Purchase Agreement, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes
a distribution on any class of capital stock that is payable in Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its then outstanding Common Stock into a larger number of shares or (iii) combines (by combination,
reverse stock split or otherwise) one or more classes of its then outstanding Common Stock into a smaller number of shares, then in each
such case the Note Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date
for the determination of shareholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or
(iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring
an adjustment under this paragraph occurs during the period that a Note Conversion Price is calculated hereunder, then the calculation
of such Note Conversion Price shall be adjusted appropriately to reflect such event.

 

(c)      [Reserved].

 

(d)           
Calculations. All calculations under this Section 4 shall be made by rounding to the nearest 1/10000th of cent
and the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall
not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue
or sale of shares of Common Stock.

 

(e)            
Other Events. In the event that the Company shall take any action to which the provisions hereof are not strictly applicable,
or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions
of this Section 4 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the Company’s board of directors shall in good faith determine
and implement an appropriate adjustment in the Note Conversion Price and the number of shares of Common Stock issuable upon conversion
of this Note (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 4(e)
will increase the Note Conversion Price or decrease the number of shares of Common Stock issuable upon conversion of this Note as otherwise
determined pursuant to this Section 4, provided further that if the Holder does not accept such adjustments as appropriately protecting
its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith,
upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall
be final and binding and whose fees and expenses shall be borne by the Company.

 

     

     

    

 

5.           
Rights Upon Distribution of Assets. In addition to any adjustments pursuant to
Section 4, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets)
to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock
or other securities, indebtedness, property or options by way of a dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction, other than a distribution of Common Stock covered by Section 4(b)) (a
 “Distribution”), at any time after the issuance of this Note, then, in each such case, provision shall be made so
that upon conversion of this Note, the Holder shall be entitled to participate in such Distribution to the same extent that the
Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete conversion of this Note (without regard to any limitations on conversion hereof, including without limitation, the
Maximum Percentage) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken,
the date as of which the record holders of Common Stock are to be determined for the participation in such Distribution (provided,
however, to the extent that the Holder’s right to participate in any such Distributions would result in the Holder exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (or the beneficial
ownership of any such shares of Common Stock as a result of such Distribution to such extent) and such Distribution to such extent
shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the
Holder exceeding the Maximum Percentage). 

 

6.            Purchase
Rights; Fundamental Transaction.

 

(a)       Purchase
Rights. In addition to any adjustments pursuant to Section 5 herein, if at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class
of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of
Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on exercise hereof, including without
limitation, the Maximum Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase
Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue
or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right
to such extent (or beneficial ownership of such Common Stock as a result of such Purchase Right to such extent) and such Purchase Right
to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Maximum Percentage).

 

(b)       Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing
all of the obligations of the Company under this Note and the other Transaction Documents related to this Note in accordance with the
provisions of this Section 6(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder, including
agreements confirming the obligations of the Successor Entity as set forth in this Note and an obligation to deliver to the Holder in
exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Note, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to
the Common Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the conversion of this Note)
prior to such Fundamental Transaction, and with a Note Conversion Price which applies the Note Conversion Price hereunder to such shares
of capital stock (but taking into account the relative value of the Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Note immediately prior to the consummation of such Fundamental Transaction). Notwithstanding
the foregoing, at the election of the Holder upon conversion of this Note following a Fundamental Transaction, the Successor Entity shall
deliver to the Holder, in lieu of the Common Stock (or other securities, cash, assets or other property (except such items still issuable
under Sections 5 and 6(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Note prior to the
applicable Fundamental Transaction, such shares of common stock (or its equivalent) of the Successor Entity (including its Parent Entity),
or other securities, cash, assets or other property, which the Holder would have been entitled to receive upon the happening of the applicable
Fundamental Transaction had this Note been exercised immediately prior to the applicable Fundamental Transaction; provided, however, that
such amount of reserved shares of Common Stock shall be limited by the Maximum Percentage of shares of Common Stock.

 

7.         [Reserved] 

 

     

     

    

 

8.         Reissuance
of Note. 

 

(a)     Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and
deliver upon the order of the Holder a new Note (in accordance with Section 8(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new
Note (in accordance with Section 8(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any
assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 2(c)(vi) following conversion
or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on
the face of this Note.

 

(b)     Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence),
and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable
form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder
a new Note (in accordance with Section 8(d)) representing the outstanding Principal.

 

(c)     Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office
of the Company, for a new Note or Notes (in accordance with Section 8(d) and in principal amounts of at least $10,000) representing in
the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal
as is designated by the Holder at the time of such surrender.

 

(d)     Issuance
of New Note. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of
like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in
the case of a new Note being issued pursuant to Section 18(a) or Section 18(c), the Principal designated by the Holder which, when added
to the Principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding
under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such
new Note, which is the same as the Execution Date of this Note, and (iv) shall have the same rights and conditions as this Note.

 

9.         
Voting Rights. The Holder shall have no voting rights as the holder of this Note, except as required
by law, including but not limited to Delaware corporate law, and as expressly provided in this Note.

 

10.        
Covenants. Until this Note has been entirely converted, redeemed or otherwise satisfied in accordance with its terms:

 

(a)      Rank.
This Note shall be senior in right of payment to all other current notes to which the Company is a party. 

   

(b)      [Reserved]

   

(c)      Restricted
Payments. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem, defease,
repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way
of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (excluding payments
with respect to Senior Indebtedness), whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness,
if at the time such payment is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Event of
Default has occurred and is continuing or (ii) an event that with the passage of time and without being cured would constitute an Event
of Default has occurred and is continuing.

 

     

     

    

 

(d)     Restriction
on Redemption and Cash Dividends. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or
indirectly, redeem, repurchase or pay any cash dividend or distribution on any of its capital stock (other than dividends by wholly-owned
Subsidiaries to the Company) without the prior express written consent of the Holder.

 

(e)     Restriction
on Transfer of Assets. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
sell, lease, license, assign, transfer, convey or otherwise dispose of any assets or rights of the Company or any Subsidiary owned or
hereafter acquired whether in a single transaction or a series of related transactions, other than sales, leases, licenses, assignments,
transfers, conveyances and other dispositions of such assets or rights by the Company and its Subsidiaries that, in the aggregate, do
not have a fair market value in excess of $1,000,000 in any twelve (12) month period, and other than (i) sales, leases, assignments, transfers,
conveyances and other dispositions of such assets or rights by the Company in the ordinary course of business and (ii) sales of inventory
in the ordinary course of business. 

 

(f)     Change
in Nature of Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
engage in any material line of business substantially different from those lines of business conducted by the Company and each of its
Subsidiaries on the Issuance Date or any business substantially related or incidental thereto.  The Company shall not, and the
Company shall cause each of its Subsidiaries to not, directly or indirectly, modify its or their corporate structure or purpose.

 

(g)     Preservation
of Existence, Etc.  The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve,
its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and
in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its
business makes such qualification necessary.

 

(h)     Maintenance
of Properties, Etc.  The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve,
all of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases to which
it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

(i)     Maintenance
of Insurance.  The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and
reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such amounts
and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally
in accordance with sound business practice by companies in similar businesses similarly situated.

 

11.        
[Reserved]

 

12.        
[Reserved]

 

13.          Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Note shall be
cumulative and in addition to all other remedies available under this Note and the other Transaction Documents, at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder
to pursue actual damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder
that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or
provided for herein with respect to payments, conversions and the like (and the computation thereof) shall be the amounts to be
received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the
performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the holder of this Note shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the
Holder to confirm the Company’s compliance with the terms and conditions of this Note (including, without limitation,
compliance with Section 4 hereof). The issuance of shares of Common Stock and certificates for shares
of Common Stock as contemplated hereby upon the conversion of this Note shall be made without charge to the Holder or such shares of
Common Stock for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the
Holder or its agent on its behalf. 

 

     

     

    

 

14.          
Payment of Collection, Enforcement and Other Costs. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or
to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings
affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred by the
Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding,
including, without limitation, attorneys’ fees and disbursements. 

 

15.           Non-circumvention. The Company hereby
covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all
the provisions of this Note and take all action as may be required to protect the rights of the Holder. Without limiting the generality
of the foregoing, the Company (i) shall take all such actions as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non-assessable shares of Common Stock upon the conversion of this Note, and (ii) shall, so long as any
of the Principal under this Note remains outstanding, take all action necessary to reserve and keep available out of its authorized and
unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Note, the maximum number of shares of Common
Stock as shall from time to time be necessary to effect the exercise of this Note.

 

16.           Failure or Indulgence
Not Waiver.  No failure or delay on the part of a Holder 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. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party.

 

17.           Notices.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with
Section 10(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken
pursuant to this Note, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality
of the foregoing, the Company will give written notice to the Holder (i) as soon as practicable upon each adjustment of the Note Conversion
Price and the number of shares of Common Stock issuable upon conversion of this Note, setting forth in reasonable detail, and certifying,
the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes
a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to any grants, issuances or sales of
any Options, Convertible Securities or rights to purchase stock, warrants, securities, indebtedness, or other property pro rata to holders
of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided
in each case that such information (to the extent it constitutes, or contains, material, non-public information regarding the Company
shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10)
Trading Days prior to the consummation of any Fundamental Transaction. It is expressly understood and agreed that the time of execution
specified by the Holder in each Conversion Notice shall be definitive and may not be disputed or challenged by the Company.

 

18.           
[Reserved]. 

 

     

     

    

 

19.         
Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this
Note, unless otherwise expressly set forth herein, such payment shall be made in lawful money of the United States of America by wire
transfer of immediately available funds by providing the Company with prior written notice setting out the Holder’s wire transfer
instructions. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same
shall instead be due on the next succeeding day which is a Business Day. Any amounts due under the Transaction Documents which is not
paid when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at
the rate of fifteen percent (15%) per month from the date such amount was due until the same is paid in full. 

 

20.          Transferability of Note.
A Holder may transfer some or all of this Note, or any shares issuable upon conversion of this Note, without the consent of the Company,
subject only to the limitations of Section 2(f) of the Securities Purchase Agreement.

 

21.          Register.  The
Company shall maintain a register (the “Register”) and record the names and addresses of the holders of each Convertible
Note and the Principal amount of the Convertible Notes held by such holders (the “Registered Notes”). The entries in
the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of the Notes shall treat
each Person whose name is recorded in the Register as the owner of a Note for all purposes, including, without limitation, the right to
receive payments of Principal and interest hereunder, notwithstanding notice to the contrary. A Registered Note may be assigned or sold
in whole or in part only by registration of such assignment or sale on the Register. Upon its receipt of a request to assign or sell all
or part of any Registered Note by a Holder, the Company shall record the information contained therein in the Register and issue one or
more new Registered Notes in the same aggregate Principal amount as the Principal amount of the surrendered Registered Note to the designated
assignee or transferee.

 

22.         Amendment. Except
as otherwise provided herein, the provisions of this Note may be amended and the Company may take any action herein prohibited, or omit
to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. The Holder
shall be entitled, at its option, to the benefit of any amendment of any other similar Convertible Note issued by the Company under the
Securities Purchase Agreement.

 

23.          Dispute Resolution.
In the case of a dispute as to the determination of the Note Conversion Price or the arithmetic calculation of the shares of Common Stock
issuable upon conversion of this note (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations
or arithmetic calculations (as the case may be) via facsimile (i) within two (2) Business Days after receipt of the applicable notice
giving rise to such dispute to the Company or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time
after the Holder or the Company (as the case may be) learned of the circumstances giving rise to such dispute. If the Holder and the Company
are unable to agree upon such determination or calculation (as the case may be) within three (3) Business Days of such disputed determination
or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business
Days submit via facsimile (a) the disputed arithmetic calculation of the shares of Common Stock and the disputed determination of the
Note Conversion Price to an independent, reputable investment bank selected by the Holder, with the consent of the Company (which may
not be unreasonably withheld, conditioned or delayed), or (b) if acceptable to the Holder, the disputed arithmetic calculation of the
shares of Common Stock and the disputed determination of the Note Conversion Price to the Company’s independent, outside accountant.
The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations
(as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
such disputed determinations or calculations (as the case may be). Such investment bank’s or accountant’s determination or
calculation (as the case may be) shall be binding upon all parties absent demonstrable error. The fees and expenses of such investment
bank or accountant shall be borne by the parties in the same proportion as the respective amounts by which the investment bank’s
or accountant’s determination differs from such party’s calculation.

 

24.          
Waiver of Notice.  To the extent permitted by law, the Company hereby irrevocably waives
demand, notice, presentment, protest and all other demands and notices in connection with the delivery, acceptance, performance, default
or enforcement of this Note and the Securities Purchase Agreement.

 

     

     

    

 

25.          
Governing Law.  This Note shall be governed by and construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.
The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or
that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing
suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder
or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE
TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS
NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

26.          Certain Defined Terms.
For purposes of this Note, the following terms shall have the following meanings:

 

(a)         “Bloomberg”
means Bloomberg, L.P.

 

(b)          “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and
the last closing trade price, respectively, for such security on the Principal Market, or if the foregoing do not apply, the average of
the bid prices, or the ask prices, respectively, of all of the market makers for such security as reported in the “pink sheets”
by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security
on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section
23. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction
during such period.

 

(c)           “Execution
Date” means the date first set forth on the cover of this Note.

 

(d)          “Fundamental
Transaction” means that (i) the Company shall, directly or indirectly, in one or more related transactions, (1) consolidate
or merge with or into (whether or not the Company is the surviving entity) any other Person unless the shareholders of the Company immediately
prior to such consolidation or merger continue to hold more than 50% of the outstanding shares of Voting Stock after such consolidation
or merger, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its properties or
assets to any other Person, in connection with which the Company is dissolved, or (3) allow any other Person to make a purchase, tender
or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons
making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person
whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of
Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons
making or party to, such stock or share purchase agreement or other business combination), or (ii) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and regulations promulgated thereunder)
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50%
of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

     

     

    

 

(e)         “Interest
Rate” means fifteen percent (15%) per annum, in each case as may be adjusted from time to time in accordance with Section 1(d).

 

(f)         “Note Conversion
Price” means (i) when converted pursuant to Section 2(a)(ii), the lower of (A) $0.303 or (ii) the closing price of the Common
Stock on the Principal Market on November 18, 2022, and (ii) when converted pursuant to Section 2(a)(i), the lower of (A) $0.303 or (ii)
the closing price of the Common Stock on the Principal Market on January 3, 2023; provided, however, that the Note Conversion Price will
be subject to adjustment as provided herein; provided, further, that, notwithstanding anything to the contrary contained in this Note,
the Note Conversion Price shall not be less than $0.10 per share. For the avoidance of doubt, the $0.10 floor price shall not be subject
to adjustment provided for in this Note that is otherwise applicable to the Note Conversion Price.

 

(g)         “Options”
means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

(h)         “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent
equity security is quoted or listed on a national securities exchange, or, if there is more than one such Person or Parent Entity, the
Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(i)          
 “Senior Indebtedness” means any Indebtedness of the Company or its Subsidiaries incurred after the Execution Date that
is secured by any Lien on any assets of the Company or any of its Subsidiaries, including under any bank or seller-backed financing secured
by real or personal property.

  

(j) 
         “Subsidiary” means any Person in which the Company, directly or indirectly, (I) owns
any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part
of the business, operations or administration of such Person; provided, that after the Subscription Date, a Person (other than Subsidiaries
as of the Subscription Date) shall not become a Subsidiary pursuant to clause (I) unless the Company, directly or indirectly, owns at
least 10% of any of the outstanding capital stock or holds at least 10% of any equity or similar interest of such person.

 

(k)        
“Subsidiary Spin-Off” means any inquiry, proposal or offer from any Person relating to
any (a) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of assets of a Subsidiary
(excluding sales of assets in the ordinary course of business) equal to 51% or more of the value of the assets of the Subsidiary or to
which 51% or more of the revenues or earnings of the Subsidiary are attributable, (b) tender offer for, or direct or indirect acquisition
(whether in a single transaction or a series of related transactions) of 51% or more of the outstanding equity securities of any Subsidiary,
or (c) merger, consolidation, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction
involving substantially all of any Subsidiary or involving the assets of the any Subsidiaries with a value set forth in clause (a) of
this definition.

 

(l)
          “Successor Entity” means the Person (or, if so elected by the Holder, the
Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the
Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

(m)        
“Voting Stock” of a Person means capital stock of such Person of the class or classes
pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of
the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class
or classes shall have or might have voting power by reason of the happening of any contingency).

 

     

     

    

 

IN
WITNESS WHEREOF, Holder and the Company have caused their respective signature page to this Convertible Note to be duly executed as
of the date first written above.

 

	 	COMPANY
	 	 	 
	 	Mullen Automotive Inc.
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

     

     

    

 

*  *  *  *  *

EXHIBIT A

 

Mullen
Automotive Inc.

CONVERSION NOTICE

 

Reference is made to that
certain Convertible Note (the “Note”) issued by Mullen Automotive Inc., a Delaware corporation (the “Company”)
to the undersigned Holder on November [●], 2022. Capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Note.

 

The undersigned holder hereby
exercises the right to convert the portion of the Note indicated below into shares of Common Stock, par value $0.001 per share, of the
Company (the “Common Stock”) as of the date specified below.

 

	 	Date of Conversion:	 	 

 

	 	Principal Amount of Note to be Converted:	 	 

 

	 	Tax ID Number (If applicable):	 	 

 

	 	Applicable Conversion Price:	 	 

  

	 	          $___________	 	 

 

	 	Number of shares of Common Stock to be issued:	 	 

 

Please issue the shares of Common Stock into which
the Note is being converted in the following name and to the following address:

 

	 	Issue to:	 	 
	 	 	 	 

 

	 	Address:	 	 

 

	 	Telephone Number:	 	 

 

	 	Facsimile Number:	 	 

 

	 	Holder:	 	 

 

	 	By:	 	 

 

     

     

    

 

	 	Title:	 	 

 

	 	Dated:	 	 

 

	 	Account Number (if electronic book entry transfer):	 	 

 

	 	Transaction Code Number (if electronic book entry transfer):	 	 

 

     

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

Mullen Automotive Inc., a
Delaware corporation (the “Company”) hereby acknowledges its receipt of the enclosed Conversion Notice and hereby directs
[______________] to issue the above indicated number of shares of Common Stock.

 

	 	Mullen Automotive Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:EXHIBIT 4.1

     

    

    BA CREDIT CARD TRUST

     

    as Issuer

     

    CLASS A(2022-2) TERMS DOCUMENT

     

    dated as of November 23, 2022

     

    to

     

    THIRD AMENDED AND RESTATED BASERIES INDENTURE SUPPLEMENT

     

    dated as of December 17, 2015

     

    to

     

    FOURTH AMENDED AND RESTATED INDENTURE

     

    dated as of December 17, 2015

     

    THE BANK OF NEW YORK MELLON

     

    as Indenture Trustee

    

    

    
      
        

    

    
    TABLE OF CONTENTS

     

    	 	 	  	
            Page

          
	
            ARTICLE I

          	
            Definitions And Other Provisions Of General Application

          	
            1

          
	 	 	 
	 	
            Section 1.01.

          	 	
            Definitions

          	1

          
	 	
            Section 1.02.

          	 	
            Governing Law; Submission to Jurisdiction; Agent for Service of Process

          	
            5

          
	 	
            Section 1.03.

          	 	
            Counterparts

          	6

          
	 	
            Section 1.04.

          	 	
            Ratification of Indenture and Indenture Supplement

          	6

          
	 	 	 	 	 
	
            ARTICLE II

          	
            The Class A(2022-2) Notes

          	7

          
	 	 	 
	 	
            Section 2.01.

          	 	
            Creation and Designation

          	7

          
	 	
            Section 2.02.

          	 	
            Specification of Required Subordinated Amount and other Terms

          	7

          
	 	
            Section 2.03.

          	 	
            Interest Payment

          	7

          
	 	
            Section 2.04.

          	 	
            Payments of Interest and Principal

          	8

          
	 	
            Section 2.05.

          	 	
            Form of Delivery of Class A(2022-2) Notes; Depository; Denominations

          	8

          
	 	
            Section 2.06.

          	 	
            Delivery and Payment for the Class A(2022-2) Notes

          	8

          
	 	
            Section 2.07.

          	 	
            Targeted Deposits to the Accumulation Reserve Account

          	8

          
	 	 	 	 	

          
	ARTICLE III	Representations and Warranties	9

          
	 	 	 
	 	Section 3.01.	 	Issuer’s Representations and Warranties	9

          

    

    

    
      -i-

      
        

    

    THIS CLASS A(2022-2) TERMS DOCUMENT (this “Terms Document”), by and between BA CREDIT CARD TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”),
      having its principal office at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee (the “Indenture Trustee”), is made and entered into
      as of November 23, 2022.

     

    Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class A Notes and shall specify the principal terms thereof.

     

    ARTICLE I

     

    Definitions and Other Provisions of General Application

     

    Section 1.01.          Definitions.  For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 

     

    (1)          the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

     

    (2)         all other terms used herein which are defined in the Third Amended and Restated BAseries Indenture Supplement, dated as of December 17, 2015 (as modified, amended or
      supplemented from time to time, the “Indenture Supplement”), between the Issuer and the Indenture Trustee, or the Fourth Amended and Restated Indenture, dated as of December 17, 2015 (as modified, amended or supplemented from time to time, the
      “Indenture”), between the Issuer and the Indenture Trustee, as acknowledged and accepted by BANA, as Servicer, either directly or by reference therein, have the meanings assigned to them therein;

     

    (3)         all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as
      otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States of America at the
      date of such computation;

     

    (4)         all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of
      this Terms Document as originally executed;

     

    
      
        

    

    
    
      (5)         the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 

    

     

    

    (6)         in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or
      the Indenture, the terms and provisions of this Terms Document shall be controlling;

     

    (7)          each capitalized term defined herein shall relate only to the Class A(2022-2) Notes and no other tranche of Notes issued by the Issuer; and 

     

    (8)          “including” and words of similar import will be deemed to be followed by “without limitation.”

     

    “Accumulation Reserve Funding Period” shall mean, (a) if the Accumulation Period Length is determined to be one (1) month, there shall be no Accumulation Reserve Funding Period and (b)
      otherwise, the period (x) commencing on the earliest to occur of (i) the Monthly Period beginning three (3) calendar months prior to the first Transfer Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account of
      the Class A(2022-2) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period following the first Transfer Date following and including the October 2023 Transfer Date for which the Quarterly Excess Available Funds
      Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 24 months prior to the Expected Principal Payment Date, (iii) the Monthly Period following the first Transfer Date
      following and including the April 2024 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior
      to the Expected Principal Payment Date, and (iv) the Monthly Period following the first Transfer Date following and including the June 2024 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 4%, but in such event the
      Accumulation Reserve Funding Period shall not be required to commence earlier than 16 months prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding the earlier to occur of
      (i) the Expected Principal Payment Date for the Class A(2022-2) Notes and (ii) the date on which the Class A(2022-2) Notes are paid in full.

     

    “Base Rate” means, with respect to any Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding BAseries Notes and the Class D Certificate (as such term is
      defined in the Series 2001‐D Supplement), (ii) the Net Servicing Fee Rate (as such term is defined in the Series 2001‐D Supplement) and (iii) so long as BANA or The Bank of New York Mellon is the Servicer, the Servicer Interchange Rate, in each case,
      for such Monthly Period.

     

    “BAseries Servicer Interchange” means, with respect to any Monthly Period, an amount equal to the product of (a) the Servicer Interchange (as such term is defined in the Series 2001‐D
      Supplement) with respect to such Monthly Period and (b) a fraction the numerator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period and the denominator of which is the Weighted Average
      Available Funds Allocation Amount for all series of Notes for such Monthly Period.

     

    

    
      -2-

      
        

    

    “Class A(2022-2) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2022-2) Note and duly executed
      and authenticated in accordance with the Indenture.

     

    “Class A(2022-2) Noteholder” means a Person in whose name a Class A(2022-2) Note is registered in the Note Register.

     

    “Class A(2022-2) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2022-2) Notes is paid in full,
      (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof.

     

    “Class A Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a). 

     

    “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b).

     

    “Controlled Accumulation Amount” means $104,166,667; provided, however, if the Accumulation Period Length is determined to be less than twelve (12) months pursuant to Section

        3.10(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount shall be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement.

     

    “Excess Available Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the preceding Monthly Period exceeds the Base Rate for such
      Monthly Period.

     

    “Expected Principal Payment Date” means November 17, 2025.

     

    “Initial Dollar Principal Amount” means $1,250,000,000.

     

    “Interest Payment Date” means the fifteenth day of each month, or if such fifteenth day is not a Business Day, the next succeeding Business Day, commencing January 17, 2023.

     

    “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from
      and including the Issuance Date) through the day preceding such Interest Payment Date.

     

    “Issuance Date” means November 23, 2022.

     

    “Legal Maturity Date” means April 17, 2028.

     

    “Note Interest Rate” means a per annum rate equal to 5.00%.

     

    “Paying Agent” means The Bank of New York Mellon.

    

    

    
      -3-

      
        

    

    “Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which is (a) the amount of Available Funds allocated to the
      BAseries pursuant to Section 501 of the Indenture, plus (b) the amount of Available Funds distributed pursuant to Sections 4.06(a)(ii) and (iii) of the Series 2001‐D Supplement, plus (c) any Interest Funding sub‐Account
      Earnings on the related Transfer Date, plus (d) any amounts to be treated as BAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (e) the BAseries Servicer Interchange for such Monthly
      Period, minus (f) the excess, if any, of the sum of the PFA Prefunding Earnings Shortfall plus the PFA Accumulation Earnings Shortfall over the sum of the aggregate amount to be treated as BAseries Available Funds for such Monthly Period pursuant to
      Sections 3.04(a)(ii) and 3.25(a) of the Indenture Supplement plus any other amounts applied to cover earnings shortfalls on amounts in the Principal Funding sub‐Account for any tranche of BAseries Notes for such Monthly Period, minus
      (g) the BAseries Investor Default Amount for such Monthly Period, minus (h) the Aggregate Class D Investor Default Amount (as such term is defined in the Series 2001‐D Supplement) for such Monthly Period, and the denominator of which is the Weighted
      Average Floating Allocation Investor Interest (as such term is defined in the Series 2001‐D Supplement) for such Monthly Period.

     

    “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose
      of this definition, any Note authenticated and delivered under Section 306 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

     

    “Quarterly Excess Available Funds Percentage” means, with respect to the October 2023 Transfer Date and each Transfer Date thereafter, the percentage equivalent of a fraction the numerator of
      which is the sum of the Excess Available Funds Percentages with respect to the immediately preceding three Monthly Periods and the denominator of which is three.

     

    “Record Date” means, for any Transfer Date, the last day of the preceding Monthly Period.

     

    “Required Accumulation Reserve sub-Account Amount” means, with respect to any Monthly Period during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding
      Dollar Principal Amount of the Class A(2022-2) Notes as of the close of business on the last day of the preceding Monthly Period or (ii) any other amount designated by the Issuer; provided, however, that if such designation is of a
      lesser amount, the Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change.

     

    “Servicer Interchange Rate” means, for any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the BAseries Servicer Interchange for such Monthly Period, and the
      denominator of which is the Weighted Average Floating Allocation Investor Interest (as such term is defined in the Series 2001‐D Supplement) for such Monthly Period.

     

    

    
      -4-

      
        

    

    “Stated Principal Amount” means $1,250,000,000.

     

    “Weighted Average Interest Rates” means, with respect to any Outstanding Notes of a class or tranche of the BAseries or the Class D Certificate (as such term is defined in the Series 2001‐D
      Supplement), or of all of the Outstanding Notes of the BAseries and the Class D Certificate, on any date, the weighted average (weighted based on the Outstanding Dollar Principal Amount of the related Notes on such date or, in the case of the Class D
      Certificate, based on the Class D Investor Interest (as such term is defined in the Series 2001‐D Supplement) on such date) of the following rates of interest:

     

    (a)          in the case of the Class D Certificate or a tranche of Dollar Interest-bearing Notes with no Derivative Agreement for interest, the rate of interest applicable to that tranche or the
      Class D Certificate on that date;

     

    (b)          in the case of a tranche of Discount Notes, the rate of accretion (converted to an accrual rate) of that tranche on that date;

     

    (c)          in the case of a tranche of Notes with a payment due under a Performing Derivative Agreement for interest, the rate at which payments by the Issuer to the applicable Derivative
      Counterparty accrue on that date (prior to the netting of such payments, if applicable); and 

     

    (d)          in the case of a tranche of Notes with a non-Performing Derivative Agreement for interest, the rate specified for that date in the related terms document.

     

    Section 1.02.          Governing Law; Submission to Jurisdiction; Agent for Service of Process.  This Terms Document shall be governed by and construed in accordance with the laws of the State
      of Delaware, without regard to principles of conflict of laws.  The parties hereto declare that it is their intention that this Terms Document shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be
      applied in interpreting its provisions in all cases where legal interpretation shall be required.  Each of the parties hereto agrees (a) that this Terms Document involves at least $100,000.00, and (b) that this Terms Document has been entered into by
      the parties hereto in express reliance upon 6 DEL. C. § 2708.  Each of the parties hereto hereby irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware and of the federal courts
      sitting in the State of Delaware, and (b)(1) to the extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party’s agent for acceptance of legal
      process, and (2) that, to the fullest extent permitted by applicable law, service of process may also be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence
      of valid service, and that service made pursuant to (b)(1) or (2) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware.

     

    

    
      -5-

      
        

    

    Section 1.03.          Counterparts.  This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts
      will together constitute but one and the same instrument.

     

    Section 1.04.          Ratification of Indenture and Indenture Supplement.  As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement is in all respects
      ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented and this Terms Document shall be read, taken and construed as one and the same instrument.

     

    [END OF ARTICLE I]

    
      -6-

      
        

    

    ARTICLE II

     

    The Class A(2022-2) Notes

     

    Section 2.01.          Creation and Designation.  There is hereby created a tranche of BAseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as
      the “BAseries Class A(2022-2) Notes.”

     

    Section 2.02.          Specification of Required Subordinated Amount and other Terms. 

     

     

    (a)          For the Class A(2022-2) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to 14.28571% of (i) the Adjusted
      Outstanding Dollar Principal Amount of the Class A(2022-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2022-2) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2022-2) Notes
      shall have occurred or if the Class A Usage of the Class B Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2022-2) Notes as of close of business on
      the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class B Required Subordinated Amount exceeded zero.

     

    (b)          For the Class A(2022-2) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 12.69841% of (i) the Adjusted
      Outstanding Dollar Principal Amount of the Class A(2022-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2022-2) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2022-2) Notes
      shall have occurred or if the Class A Usage of the Class C Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2022-2) Notes as of close of business on
      the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class C Required Subordinated Amount exceeded zero.

     

    (c)          The Issuer may change the percentages set forth in clause (a) or (b) above without the consent of any Noteholder so long as the Issuer has (i) received written confirmation from each
      Note Rating Agency that has rated any Outstanding Notes of the BAseries that the change in either of such percentages will not result in a Ratings Effect with respect to any Outstanding Notes of the BAseries and (ii) delivered to the Indenture
      Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 

     

    Section 2.03.          Interest Payment.

     

    (a)          For each Interest Payment Date (other than the first Interest Payment Date), the amount of interest due with respect to the Class A(2022-2) Notes shall be an amount equal to one-twelfth
      of the product of (i) the Note Interest Rate times (ii) the Outstanding Dollar Principal Amount of the Class A(2022-2) Notes determined as of the Record Date preceding the related Transfer Date; provided,
      however, that for the first Interest Payment Date the amount of interest due is $9,027,777.78.  Interest on the Class A(2022-2) Notes will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

     

    

    
      -7-

      
        

    

    (b)          Pursuant to Section 3.03 of the Indenture Supplement, on each Transfer Date, the Indenture Trustee shall deposit into the Class A(2022-2) Interest Funding sub-Account the portion
      of BAseries Available Funds allocable to the Class A(2022-2) Notes. 

     

    Section 2.04.          Payments of Interest and Principal.  Any installment of interest or principal, if any, payable on any Class A(2022-2) Note which is punctually paid or duly provided for
      by the Issuer and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2022-2) Note (or one or more Predecessor Notes) is registered on the
      Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day
      preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on
      the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee.

     

    The right of the Class A(2022-2) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2022-2) Termination Date.

     

     Section 2.05.          Form of Delivery of Class A(2022-2) Notes; Depository; Denominations.

     

    (a)          The Class A(2022-2) Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and 301(i) of the Indenture, respectively.

     

    (b)          The Depository for the Class A(2022-2) Notes shall be The Depository Trust Company, and the Class A(2022-2) Notes shall initially be registered in the name of Cede & Co., its
      nominee.

     

    (c)          The Class A(2022-2) Notes will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount.

     

    Section 2.06.          Delivery and Payment for the Class A(2022-2) Notes.  The Issuer shall execute and deliver the Class A(2022-2) Notes to the Indenture Trustee for authentication, and the
      Indenture Trustee shall deliver the Class A(2022-2) Notes when authenticated, each in accordance with Section 303 of the Indenture.

     

    Section 2.07.          Targeted Deposits to the Accumulation Reserve Account.  The deposit targeted to be made to the Accumulation Reserve Account for any Monthly Period during the
      Accumulation Reserve Funding Period will be an amount equal to the Required Accumulation Reserve sub-Account Amount.

     

    [END OF ARTICLE II]

     

    
      -8-

      
        

    

    ARTICLE III

     

    Representations and Warranties

     

    Section 3.01.          Issuer’s Representations and Warranties.  The Issuer makes the following representations and warranties as to the Collateral Certificate on which the Indenture Trustee
      is deemed to have relied in acquiring the Collateral Certificate.  Such representations and warranties speak as of the execution and delivery of this Terms Document, but shall survive until the termination of this Terms Document.  Such
      representations and warranties shall not be waived by any of the parties to this Terms Document unless the Issuer has obtained written confirmation from each Note Rating Agency that there will be no Ratings Effect with respect to such waiver.

     

    (a)          The Indenture creates a valid and continuing security interest (as defined in the Delaware UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest
      is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Issuer.

     

    (b)          The Collateral Certificate constitutes either an “account,” a “general intangible,” an “instrument,” or a “certificated security,” each within the meaning of the Delaware UCC.

     

    (c)          At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Issuer owned and had good and marketable title to the
      Collateral Certificate free and clear of any lien, claim or encumbrance of any Person.

     

    (d)          The Issuer has caused, within ten days of the execution of the Indenture, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions
      under applicable law in order to perfect the security interest in the Collateral Certificate granted to the Indenture Trustee pursuant to the Indenture.

     

    (e)          Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise
      conveyed the Collateral Certificate.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering the Collateral Certificate other than any financing
      statement relating to the security interest granted to the Indenture Trustee pursuant to the Indenture or any financing statement that has been terminated.  The Issuer is not aware of any judgment or tax lien filings against the Issuer.

     

    (f)          All original executed copies of the Collateral Certificate have been delivered to the Indenture Trustee.

     

    (g)          At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Collateral Certificate had no marks or notations
      indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee.

     

    [END OF ARTICLE III]

     

    

    
      -9-

      
        

    

    IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the day and year first above written.

     

    

    	 	
            BA CREDIT CARD TRUST,

          
	 	
            by BA CREDIT CARD FUNDING, LLC,

          
	 	
            as Beneficiary and not in its individual capacity

          
	 	 
	 	
            By: 

          	

          
	 	

          	
            Name:  Keith W. Landis

          
	

          	

          	
            Title:  CEO & President

          

    

    

    [Signature Page to the Class A(2022-2) Terms Document]

    
      -10-

      
        

    

    	

          	
            THE BANK OF NEW YORK MELLON, as Indenture Trustee

          
	

          	
            and not in its individual capacity

          
	 	 
	

          	
            By:

          	

          
	

          	

          	
            Name:  Esther Antoine

          
	

          	

          	
            Title:  Vice President

          

    

    

    

    

    [Signature Page to the Class A(2022-2) Terms Document]

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