Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”), effective July 19, 2021 (“Effective Date”), is made between U.S. Gold Corp.,
a Nevada corporation (“Employer” or the “Company”), and Kevin Francis (“Employee”). Employee and
the Company are sometimes referred to herein as the “Parties.”

 

RECITALS

 

A.
Employer is in the business (the “Business”) of natural resources exploration, development, and exploitation.

 

B.
Employer desires to obtain the services of Employee as its Vice President, Exploration and Technical Services, in which capacity Employee
has access to Employer’s Confidential Information (as hereinafter defined), and to obtain assurance that Employee will protect
Employer’s Confidential Information and will not solicit Employer’s customers or its other employees during the term of employment
and for a reasonable period of time after termination of employment pursuant to this Agreement, and Employee is willing to agree to these
terms.

 

C.
Employee desires to be assured of the salary, bonus opportunity and other benefits in this Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants in this Agreement, and other good and valuable consideration, the parties agree
as follows:

 

1.
Employment. The Company agrees to employ and Employee agrees to serve as the Company’s Vice President, Exploration and Technical
Services. The duties and responsibilities of Employee shall include the duties and responsibilities as the Board of Directors of the
Company (the “Board”) may assign to Employee from time to time, and set forth in the Job Description attached hereto as Exhibit
A, which may be amended by the Board in its sole discretion. The Employee shall devote such of Employee’s time, energy, skill and
reasonable best efforts on a full time basis and as is necessary to the performance of Employee’s duties hereunder in a manner
that will faithfully and diligently further the business and interests of the Company, and shall exercise reasonable best efforts to
perform Employee’s duties in a diligent, trustworthy, good faith and business-like manner, all for the purpose of advancing the
business of the Company. Provided that none of the additional activities interferes with the performance of the duties and responsibilities
of Employee or are determined by the Company to be inconsistent with the position, standing, stature, reputation or best interests of
the Company, nothing in this Section 1, shall prohibit Employee from (a) serving as a consultant, director or member of a committee,
paid or unpaid, for entities that, in the reasonable and good faith determination of the Board following Employee’s advance written
notice to the Board and with the Board’s prior consent, which shall not be unreasonably withheld, do not compete or present the
appearance of competition with the Company or otherwise create, or could create, in the good faith determination of the Board, a conflict
of interest or appearance of a conflict of interest with the business of the Company; (b) delivering lectures, fulfilling speaking engagements,
and any writing or publication relating to his area of expertise (c) serving as a director or trustee of any governmental, charitable
or educational organization; or (d) engaging in additional activities in connection with personal investments and community affairs;
provided that such activities are not inconsistent with Employee’s duties under this Agreement. Employee currently holds and intends
to continue to hold the following positions, which have been approved by Employer as in compliance with this Section 1 and the provisions
of this Agreement: (1) Member of the Board of Directors of Texas Mineral Resources Corp.; and (2) Principal, Mineral Resource Management
LLC; provided, however, that any of Employee’s activities as the Principal of Mineral Resource Management LLC that could, in the
good faith determination of the Board, violate the terms of Section 10.2(i) of this Agreement or that could otherwise create a conflict
of interest or appearance of a conflict of interest with the business of the Company, shall be subject to the prior written approval
by the Board, which approval shall not be unreasonably withheld.

 

    	 

    	 

    

 

2.
Term of Employment. The term of employment (“Term”) shall commence on or about July 19, 2021 and will not be for a definite
period, but rather continue indefinitely until terminated in accordance with the terms and conditions of this Agreement.

 

3.
Place of Employment. Employee’s services shall be performed at the Company’s offices or such other place as the Employee
is then located. The parties acknowledge, however, that Employee may be required to travel in connection with the performance of his
duties hereunder.

 

4.
Compensation. For the duration of Employee’s employment under this Agreement, the Employee will be entitled to compensation
which will be computed and paid pursuant to the following subparagraphs.

 

4.1
Base Salary. Employee shall initially be paid an aggregate annual base salary at the rate of $210,000 per year, less all applicable
withholdings and deductions (the “Base Salary”), payable in equal installments during each year in accordance with the payroll
practices for the executives of the Company. The Compensation Committee of the Board, or the Board if there is no Compensation Committee,
shall review Employee’s salary from time to time and may, in its sole discretion, increase but not decrease it. The Board of Directors
has the final authority to approve Base Salary adjustments.

 

4.2
Target Bonus. Subject to the other provisions of this Section 4, Employee will participate in Employer’s annual incentive bonus
plan under which Employee may earn an annual incentive bonus in an amount up to 75% of the Base Salary, less all applicable withholdings
and deductions (each, a “Performance Bonus”), which bonuses are expected to be paid on or before March 15 of the calendar
year following the calendar year to which the Performance Bonus relates. The terms of the annual incentive bonus plan, including, without
limitation, the criteria upon which Employee can earn the maximum bonus and the form of payment (i.e., in cash, equity, equity-based
compensation, or a combination thereof) will be determined annually by Employer’s Board. The criteria that shall apply to the Performance
Bonus for the first performance period during the Term are set forth on Exhibit B attached hereto. The Company may modify the criteria
applicable to the Performance Bonus from time to time by amending Exhibit B without the need to otherwise amend this Agreement, and any
such modifications may be made by the Board or any authorized representative of the Board. Except as set forth herein, to be eligible
to receive a Performance Bonus for a calendar year, Employee must remain employed through the payment date of such Performance Bonus.
Employee may also participate in other bonus or incentive plans adopted by Employer that are applicable to Employee’s position,
as they may be changed from time to time, but nothing herein shall require the adoption or maintenance of any such plan.

 

    	 

    	 

    

 

4.3
Long Term Incentives. Employee shall be eligible to participate in any long-term incentive plans adopted by the Company from time
to time and shall otherwise be eligible for annual long-term incentive awards in the discretion of the Board.

 

4.4
Reserved.

 

4.5
Clawback Rights. If and for so long as Employee is deemed an “executive officer” subject to Section 954 of the Dodd Frank
Act (defined below), any incentive compensation payable to Employee pursuant to this Agreement or Company incentive compensation plans
that qualifies as incentive compensation pursuant to the Dodd Frank Act (the “Clawback Benefits”) shall be subject to “Company
Clawback Rights” as follows: During the period that the Employee is employed by the Company and for a period of three (3) years
thereafter, if there is a Restatement (as defined below) of any financial results during the preceding three (3) fiscal year period from
which any Clawback Benefits to Employee shall have been determined, Employee agrees to repay any Clawback Benefits amounts which were
determined by reference to any Company financial results which were later restated, to the extent the Clawback Benefits amounts paid
exceed the Clawback Benefits amounts that would have been paid, based on the Restatement of the Company’s financial information.
All Clawback Benefits amounts resulting from such restated financial results shall be retroactively adjusted by the Compensation Committee
to take into account the restated results, and any excess portion of the Clawback Benefits resulting from such restated results shall
be promptly surrendered to the Company and if not so surrendered within ninety (90) days of the revised calculation being provided to
the Employee by the Company following a publicly announced Restatement, the Company shall have the right to take any and all action to
effectuate such adjustment. The calculation of the revised Clawback Benefits amount shall be determined by the Company in good faith
and in accordance with applicable law, rules, and regulations. All determinations by the Company with respect to the Clawback Rights
shall be final and binding on the Employee. The Clawback Rights shall be subject to applicable law, rules, and regulations. For purposes
of this Section 4.5, a restatement of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall
mean “a restatement resulting from material non-compliance of the Company with any financial reporting requirement under the federal
securities laws and shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements
or requirements which were not in effect on the date the financial statements were originally prepared (“Restatement”)”.
The parties acknowledge it is their intention that the foregoing Clawback Rights as related to a Restatement conform in all respects
to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”) and requires
recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd Frank Act and any and all rules and
regulations promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this Agreement shall be deemed
automatically amended from time to time to assure compliance with the Dodd Frank Act and such rules and regulation as hereafter may be
adopted and in effect, but shall not exceed the requirements of such rules and regulation.

 

    	 

    	 

    

 

5.
Indemnification. To the fullest extent permitted by law and the Company’s articles of incorporation and bylaws, the Company
hereby indemnifies Employee and holds him harmless from the Effective Date, through the Term, and after the period of Employee’s
employment hereunder, from and against all loss, costs, damages, and expenses including, without limitation, legal expenses of counsel
(which expenses the Company will, to the extent so permitted, advance to Employee as the same are incurred) arising out of or in connection
with the fact that Employee are or was a director, officer, attorney, employee, or agent of the Company or serving in such capacity for
another corporation at the request of the Company. This indemnification is in addition to that provided in the Company’s certificate
of incorporation and bylaws.

 

6.
D&O Insurance. The Company shall cover Employee under directors and officers liability insurance from the Effective Date, through
the Term, and, while potential liability exists, after the period of Employee’s employment hereunder, on the most favorable terms
as provided to any other director or executive officer of the Company.

 

7.
Expenses. Subject to Section 28.2, Employee shall be entitled to prompt reimbursement by the Company for all reasonable ordinary
and necessary travel, entertainment, and other business expenses, including cell phone and home office phone used for business purposes,
incurred by Employee while employed (in accordance with the policies and procedures established by the Company and as in effect from
time to time for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided,
that Employee shall properly account for such expenses in accordance with Company policies and procedures.

 

8.
Other Benefits. Employee will be eligible to participate in all employee benefit programs established by Employer that are applicable
to management personnel such as medical, retirement, disability and life insurance plans on a basis commensurate with Employee’s
position and in accordance with Employer’s policies from time to time, but nothing herein shall require the adoption or maintenance
of any such plan or prevent Employer from amending or terminating any such plan from time to time. During any period where Employer is
not offering a group health insurance plan, Employer will reimburse Employee for his reasonable monthly insurance premiums actually incurred
for health insurance coverage for himself and his eligible dependents, if any, subject to the Company’s expense reimbursement policies
and procedures as in effect from time to time, to the extent such reimbursements are permitted by applicable law and any corresponding
regulations and with such monthly amount included in Employee’s taxable income if required by law.

 

    	 

    	 

    

 

9.
Termination of Employment.

 

9.1
By Employer For Cause, By Employee Without Good Reason, or Due to Disability or Death. If Employer terminates Employee’s employment
for Cause (as defined below), if Employer terminates employment with the Company other than for Good Reason (as defined below), or if
Employee’s employment terminates due to death or Disability (as defined below), the Company shall pay to the Employee (or, if applicable,
his estate) in a lump sum (i) any unpaid portion of Employee’s accrued Base Salary and unused Paid Time Off; (ii) any amounts payable
to Employee pursuant to the terms of any retirement or welfare benefit plan, and (iii) any expense reimbursements payable pursuant to
the Company’s reimbursement policy (the “Accrued Obligations”). Unvested equity grants shall be forfeited as of the
date of termination, and any vested equity awards shall be treated as specified in the applicable equity plan and award agreement.

 

9.2
By Employer Without Cause or By Employee for Good Reason Outside of Change in Control Period. The Company may terminate Employee’s
employment at any time without Cause. Upon Employee’s termination of employment by the Company without Cause or Employee’s
resignation for Good Reason outside of a Change in Control Period (as defined below), in addition to the Accrued Obligations, Employee
shall be entitled to receive a lump-sum severance payment in an amount equal to the sum of Employee’s then in effect annual Base
Salary and a portion of Employee’s target bonus, calculated at 100% of target performance completion of goals and objectives, prorated
for the portion of the calendar year that has passed as of Employee’s last day of employment, in each case, less all applicable
withholdings and deductions. Any unvested equity grants, any annual long-term incentive awards, or any other equity awards made during
the Term shall fully and immediately vest (and in the case of options become exercisable), as of the date of termination, and any vested
equity awards shall be treated as specified in the applicable equity plan and award agreement.

 

9.3
By Employer Without Cause or By Employee for Good Reason Within Change in Control Period. Upon Employee’s termination of employment
by the Company without Cause or Employee’s resignation for Good Reason, in either case, within six (6) months prior to, upon, or
within six (6) months following a Change in Control (“Change in Control Period”), Employee shall be entitled to receive the
payments and benefits provided in Section 9.2, except that the amount of the lump-sum severance payment to be paid to Employee shall
instead be equal to the sum of one and a half times (1.5) times Employee’s then in effect annual Base Salary and 100% of Employee’s
target annual bonus for the year in which the termination occurs.

 

    	 

    	 

    

 

9.4
Benefits. Employee’s eligibility to participate in the Company’s medical, dental, and vision benefit plans and other
insured benefits (such as life, accident, and disability coverage) will terminate upon Employee’s termination of employment according
to the terms of the relevant benefit plan. Employee may elect to participate in medical, dental, and vision benefits provided through
an outside vendor, in conjunction with continued insurance coverage available to Employee under the provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended, or similar state law (“COBRA”), to the extent applicable, at the applicable
COBRA rates for up to eighteen (18) months. In the event Employee is entitled to severance payment benefits pursuant any paragraph in
this Section 9, provided Employee timely elects COBRA continuation coverage, or, if COBRA continuation coverage is not available because
the Company does not sponsor a group health plan that is required to provide COBRA continuation coverage, the Company shall continue
to provide all welfare benefits provided to Employee immediately before such termination (including, without limitation, health and life
insurance (or the reimbursement of health insurance premiums as provided in Section 8), but excluding disability insurance) for a period
following Employee’s termination of employment of eighteen (18) months, to the extent permitted pursuant to the terms of such benefit
plans, at the same cost and to the same extent that such insurance (or reimbursements thereof) continues to be provided to similarly
situated employees at the time of Employee’s termination; provided, however, that to the extent Employee becomes re-employed and
eligible for benefits with another employer prior to the expiration of such period, Employee will elect such benefits and promptly notify
the Company so that the Company will have no further obligation to provide benefits under this subsection 9.4 unless, and then only to
the extent that, the benefits that are being provided by the Company are more favorable than such benefits provided by the other company,
as determined by Employee in his reasonable discretion.

 

9.5
Payment Timing/Release of Claims. The payment and provision of any and all severance benefits pursuant to this Section 9 shall be
conditioned upon and subject to execution of a release of claims by Employee at the time of termination of employment and in a form acceptable
to the Company within the Company’s sole reasonable discretion (“Release of Claims”). All lump-sum payments due pursuant
to this Agreement shall be payable sixty (60) days following the termination date, provided that before such date, Employee has timely
signed (and not revoked) the Release of Claims. The payment of the Accrued Obligations is not subject to Employee’s execution of
a Release of Claims.

 

9.6
No Obligation to Mitigate. Except as provided in Section 9.4, Employee shall not be required to mitigate the amount of any payment
provided for in this Section 9 by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section
9 be reduced by any compensation earned by the Employee as the result of employment by another employer or business or by profits earned
by Employee from any other source at any time before and after the termination date. The Company’s obligation to make any payment
pursuant to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other
right that the Company may have against Employee for any reason.

 

    	 

    	 

    

 

9.7
Definitions. 

 

(i)
Cause. “Cause” Shall mean:

 

(1)
conviction of a felony or a crime involving fraud or moral turpitude; or

 

(2)
theft, material act of dishonesty or fraud, material and intentional falsification of any employment or Company records, or commission
of any criminal act which impairs Employee’s ability to perform appropriate employment duties for the Company; or

 

(3)
intentional or reckless conduct or gross negligence materially harmful to the Company (or the successor to the Company after a Change
in Control), including violation of a non-competition or confidentiality agreement; or

 

(4)
willful failure to follow lawful instructions of the person or body to which Employee reports; or

 

(5)
gross negligence or willful misconduct in the performance of Employee’s assigned duties. Cause shall not include mere unsatisfactory
performance in the achievement of Employee’s job objectives.

 

(ii)
Disability. “Disability” means a physical or mental illness, injury, or condition that prevents Employee from performing
substantially all of Employee’s duties associated with Employee’s position or title with the Company for at least 90 days
in a twelve (12) month period.

 

(iii)
Good Reason. Resignation for “Good Reason” shall mean, without the express written consent of Employee, the occurrence
of one of the following arising on or after the Effective Date, as determined in a manner consistent with Treasury Regulation Section
1.409A-1(n)(2)(ii):

 

(1)
a material reduction or change in Employee’s title or job duties, responsibilities, and requirements inconsistent with Employee’s
position with the Company and Employee’s prior duties, responsibilities, and requirements,

 

(2)
a material reduction of Employee’s then in effect Base Salary or Employee’s target bonus as set forth in Section 4.2 above;

 

(3)
following a Change in Control, Employee not serving as the Executive Chairman or equivalent position of the surviving entity to the Company;

 

(4)
the relocation of Employee’s primary place of employment or home base by fifty (50) miles or more; or

 

(5)
any material breach of this Agreement by Company.

 

    	 

    	 

    

 

In
the case of Employee’s allegation of Good Reason, (x) Employee shall provide written notice to the Company of the event alleged
to constitute Good Reason within 90 days after the initial occurrence of such event, and (y) the Company shall have the opportunity to
remedy the alleged Good Reason event within 90 days from receipt of notice of such allegation (the “Cure Period”). If not
remedied within the Cure Period, Employee may submit a written notice of termination, provided that the notice of termination must be
given no later than 45 days after the expiration of the Cure Period; otherwise, Employee is deemed to have accepted such event, or the
Company’s remedy of such event, that may have given rise to the existence of Good Reason; provided, however, such acceptance shall
be limited to the occurrence of such event and shall not waive Employee’s right to claim Good Reason with respect to future similar
events.

 

(iv)
Change in Control. “Change in Control” shall mean the occurrence of any one or more of the following: (i) the accumulation
(if over time, in any consecutive twelve (12) month period), whether directly, indirectly, beneficially or of record, by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of 50.1% or more
of the shares of the outstanding Common Stock of the Company, whether by merger, consolidation, sale or other transfer of shares of Common
Stock (other than a merger or consolidation where the stockholders of the Company prior to the merger or consolidation are the holders
of a majority of the voting securities of the entity that survives such merger or consolidation), (ii) during any period of twelve (12)
consecutive months ending on the date of the most recent acquisition, a sale of the assets of the Company that have a total gross fair
market value equal to or greater than 40%of the total gross fair market value of all of the Company’s assets immediately prior
to such acquisition or acquisitions or (iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning
of such period, constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the
beginning of the twelve (12) month period or whose election or nomination for election was previously so approved, cease for any reason
to constitute at least a majority of the Board; provided, however, that the following acquisitions shall not constitute a Change in Control
for the purposes of this Agreement: (A) any acquisitions of Common Stock or securities convertible, exercisable or exchangeable into
Common Stock directly from the Company or from any affiliate of the Company, or (B) any acquisition of Common Stock or securities convertible,
exercisable or exchangeable into Common Stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company.
Notwithstanding the foregoing, an event shall not constitute a Change in Control unless such event also constitutes a “change in
control event” for purposes of Section 409A (as defined below) and as described in Treas. Reg. § 1.409A-3(i)(5).

 

    	 

    	 

    

 

10.
Restrictive Covenants.

 

10.1
Employee agrees and acknowledges that the Confidential Information that Employee has already received and will receive is valuable
to the Company and that its protection and maintenance constitutes a legitimate business interest of the Company, to be protected by
the restrictions set forth herein. Employee agrees and acknowledges that the restrictions set forth herein are reasonable and necessary
and do not impose undue hardship or burdens on the Employee.

 

10.2
Employee hereby agrees and covenants that during the Term and for a period of twelve (12) months thereafter, he shall not, without
the prior written consent of the Company:

 

(i)
on his own behalf, individually or as a principal, partner, stockholder, manager, agent, consultant, contractor, employee, lender, investor,
or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever, establish, manage, engage
in, operate, control, work for, consult with, render services for, do business with, maintain any interest in (proprietary, financial,
or otherwise), or participate in the ownership, establishment, management, operation, or control of, any business, individual, partnership,
firm, corporation, or other entity that directly competes with any existing business or service which Employer provides;

 

(ii)
recruit, solicit, attempt to persuade, or assist in the recruitment or solicitation of, any employee of the Company who was an employee,
officer or agent of the Company during the three (3) month period immediately preceding the date of Employee’s termination for
the purpose of employing the individual or obtaining the individual’s services or otherwise causing the individual to leave employment
with the Company;

 

(iii)
solicit or divert to any competing business any customer or prospective customer with which Employee had contact during the twelve months
prior to leaving the Company

 

Employer
and Employee agree that: these provisions do not impose an undue hardship on Employee and are not injurious to the public; that these
provisions are necessary to protect the business of Employer and its affiliates; the nature of Employee’s responsibilities with
Employer under this Agreement require Employee to have access to confidential information which is valuable and confidential to all of
the Company’s business; the scope of this Section 10 is reasonable in terms of length of time and geographic scope; and adequate
consideration supports this Section 10 including the consideration set forth in this Agreement.

 

Notwithstanding
the foregoing, Section 10.2(i) shall not apply to Employee’s activities as the Principal of Mineral Resource Management LLC to
the extent that such activities satisfy the requirements set forth in Section 1 of this Agreement.

 

    	 

    	 

    

 

11.
Confidential Information. Employee recognizes that Employer’s Business and continued success depend upon the use and protection
of confidential and proprietary business information, including, without limitation, the information and technology developed by or available
through licenses to Employer, to which Employee has access (all such information being “Confidential Information”). For purposes
of this Agreement, the phrase “Confidential Information” includes, for Employer and its current or future subsidiaries and
affiliates, without limitation, and whether or not specifically designated as confidential or proprietary: all business plans and marketing
strategies; information concerning existing and prospective markets and customers; financial information; information concerning the
development of new products and services; information concerning any personnel of Employer (including, without limitation, skills and
compensation information); and technical and non-technical data related to software programs, designs, specifications, compilations,
inventions, improvements, methods, processes, procedures and techniques; provided, however, that the phrase does not include
information that (a) was lawfully in Employee’s possession prior to disclosure of such information by Employer; (b) was, or at
any time becomes, available in the public domain other than through a violation of this Agreement; (c) is documented by Employee as having
been developed by Employee outside the scope of Employee’s employment and independently; or (d) is furnished to Employee by a third
party not under an obligation of confidentiality to Employer. Employee agrees that during Employee’s employment and after termination
of employment irrespective of cause, Employee will use Confidential Information only for the benefit of Employer and will not directly
or indirectly use or divulge, or permit others to use or divulge, any Confidential Information for any reason, except as authorized by
Employer. Employee’s obligation under this Agreement is in addition to any obligations Employee has under state or federal law.
Employee agrees to deliver to Employer immediately upon termination of Employee’s employment, or at any time Employer so requests,
all tangible items containing any Confidential Information (including, without limitation, all memoranda, photographs, records, reports,
manuals, drawings, blueprints, prototypes, notes taken by or provided to Employee, and any other documents or items of a confidential
nature belonging to Employer) whether in hard copy, electronic, or other format, together with all copies of such material in Employee’s
possession or control. Employee agrees that in the course of Employee’s employment with Employer, Employee will not violate in
any way the rights that any entity has with regard to trade secrets or proprietary or confidential information. Employee’s obligations
under this Section 11 are indefinite in term and shall survive the termination of this Agreement. However, Employee further understands
that nothing in this Agreement prohibits Employee from reporting to any governmental authority information concerning possible violations
of law or regulation and that Employee may disclose Confidential Information to a government official or to an attorney and use it in
certain court proceedings without fear of prosecution or liability, provided Employee files any document containing Confidential Information
under seal and does not disclose the Confidential Information, except pursuant to court order. Employee understands that in the event
it is determined that the disclosure of Company trade secrets was not done in good faith pursuant to the above, Employee will be subject
to substantial damages, including punitive damages and attorneys’ fees.

 

    	 

    	 

    

 

12.
Work Product and Copyrights. Employee agrees that all right, title, and interest in and to the materials resulting from the performance
of Employee’s duties at Employer and all copies thereof, including works in progress, in whatever media, (the “Work”),
will be and remain in Employer upon their creation. Employee will mark all Work with Employer’s copyright or other proprietary
notice as directed by Employer. Employee further agrees:

 

12.1
To the extent that any portion of the Work constitutes a work protectable under the copyright laws of the United States (the “Copyright
Law”), that all such Work will be considered a “work made for hire” as such term is used and defined in the Copyright
Law, and that Employer will be considered the “author” of such portion of the Work and the sole and exclusive owner throughout
the world of such copyright; and

 

12.2
If any portion of the Work does not qualify as a “work made for hire” as such term is used and defined in the Copyright
Law, that Employee hereby assigns and agrees to assign to Employer, without further consideration, all right, title and interest in and
to such Work or in any such portion of such Work and any copyright in such Work and further agrees to execute and deliver to Employer,
upon request, appropriate assignments of such Work and copyright in such Work and such other documents and instruments as Employer may
request to fully and completely assign such Work and copyright in such Work to Employer, its successors or nominees, and that Employee
appoints Employer as attorney-in-fact to execute and deliver any such documents on Employee’s behalf in the event Employee should
fail or refuse to do so within a reasonable period following Employer’s request.

 

13.
Inventions and Patents. For purposes of this Agreement, “Inventions” includes, without limitation, information, inventions,
contributions, improvements, ideas, or discoveries, whether protectable or not, and whether or not conceived or made during work hours.
Employee agrees that all Inventions conceived or made by Employee during the period of employment with Employer belong to Employer, provided
they grow out of Employee’s work with Employer or are related in some manner to the Business, including, without limitation, research
and product development, and projected business of Employer or its affiliated companies. Accordingly, Employee will:

 

13.1
Make adequate written records of such Inventions, which records will be Employer’s property;

 

13.2
Assign to Employer, at its request, any rights Employee may have to such Inventions for the U.S. and all foreign countries;

 

13.3
Waive and agree not to assert any moral rights Employee may have or acquire in any Inventions and agree to provide written waivers
from time to time as requested by Employer; and

 

13.4
Assist Employer (at Employer’s expense) in obtaining and maintaining patents or copyright registrations with respect to such
Inventions.

 

Employee
understands and agrees that Employer or its designee will determine, in its sole and absolute discretion, whether an application for
patent will be filed on any Invention that is the exclusive property of Employer, as set forth above, and whether such an application
will be abandoned prior to issuance of a patent. Employer will pay to Employee, either during or after the term of this Agreement, the
following amounts if Employee is sole inventor, or Employee’s proportionate share if Employee is joint inventor: $750 upon filing
of the initial application for patent on such Invention; and $1,500 upon issuance of a patent resulting from such initial patent application,
provided Employee is named as an inventor in the patent.

 

    	 

    	 

    

 

Employee
further agrees that Employee will promptly disclose in writing to Employer during the term of Employee’s employment and for one
(1) year thereafter, all Inventions whether developed during the time of such employment or thereafter (whether or not Employer has rights
in such Inventions) so that Employee’s rights and Employer’s rights in such Inventions can be determined. Except as set forth
on the initialed Exhibit C (List of Inventions) to this Agreement, if any, Employee represents and warrants that Employee has no Inventions
or other works of authorship useful to Employer in the normal course of the Business, which were conceived, made or written prior to
the date of this Agreement and which are excluded from the operation of this Agreement.

 

NOTICE:
This Section 13 does not apply to Inventions for which no equipment, supplies, facility, or trade secret information of Employer was
used and which was developed entirely on Employee’s own time, unless: (a) the Invention relates (i) directly to the business of
Employer or (ii) to Employer’s actual or demonstrably anticipated research or development, or (b) the Invention results from any
work performed by Employee for Employer.

 

14.
Non-Disparagement. During Employee’s employment with the Company and any time thereafter, Employee shall not make, publish,
or otherwise transmit any false, disparaging or defamatory statements, whether written or oral, regarding the Company and any of its
employees, executives, agents, investors, procedures, investments, products, policies, or services. Similarly, the Company shall not
make, publish, or otherwise transmit any false, disparaging or defamatory statements, whether written or oral, regarding the Employee.

 

15.
No Interference. Notwithstanding any other provision of this Agreement, (i) Employee may disclose Confidential Information
when required to do so by a court of competent jurisdiction, by any governmental agency having authority over Employee or the business
of the Company or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Employee
to divulge, disclose or make accessible such information; and (ii) nothing in this Agreement is intended to interfere with Employee’s
right to (a) report possible violations of state or federal law or regulation to any governmental or law enforcement agency or entity;
(b) make other disclosures that are protected under the whistleblower provisions of state or federal law or regulation; (c) file a claim
or charge with the Equal Employment Opportunity Commission (“EEOC”), any state human rights commission, or
any other governmental agency or entity; or (d) testify, assist, or participate in an investigation, hearing, or proceeding conducted
by the EEOC, any state human rights commission, any other governmental or law enforcement agency or entity, or any court. For purposes
of clarity, in making or initiating any such reports or disclosures or engaging in any of the conduct outlined in subsection (ii) above,
Employee may disclose Confidential Information to the extent necessary to such governmental or law enforcement agency or entity or such
court, need not seek prior authorization from the Company, and is not required to notify the Company of any such reports, disclosures
or conduct.

 

    	 

    	 

    

 

16.
Defend Trade Secrets Act. Employee is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Employee
will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is
made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the
purpose of reporting or investigating a suspected violation of law, or is made in a complaint or other document that is filed under seal
in a lawsuit or other proceeding. If Employee files a lawsuit for retaliation against the Company for reporting a suspected violation
of law, Employee may disclose the Company’s trade secrets to Employee’s attorney and use the trade secret information in
the court proceeding if Employee files any document containing the trade secret under seal, and does not disclose the trade secret, except
pursuant to court order.

 

17.
Remedies. Notwithstanding other provisions of this Agreement regarding dispute resolution, Employee agrees that Employee’s
violation of any of 10, 11, 12, 13 or 14 of this Agreement would cause Employer irreparable harm which would not be adequately compensated
by monetary damages and that an injunction may be granted by any court or courts having jurisdiction, restraining Employee from violation
of the terms of this Agreement, upon any breach or threatened breach of Employee of the obligations set forth in any of Sections 10,
11, 12, 13 or 14. Employee shall also be permitted to seek an injunction in the event of the Company’s violation of the terms hereunder.
The preceding sentence shall not be construed to limit the Parties from any other relief or damages to which either may be entitled as
a result of a breach of any provision of this Agreement, including Sections 10, 11, 12, 13 or 14. In the event of a violation by the
Employee of Sections 10, 11, 12, 13 or 14 hereof, any severance being paid to the Employee pursuant to this Agreement or otherwise shall
immediately cease , and any severance previously paid to the Employee shall be immediately repaid to the Company.

 

18.
Dispute Resolution. Except for the right of Employer and Employee to seek injunctive relief in court, any controversy, claim or dispute
of any type arising out of or relating to Employee’s employment or the provisions of this Agreement shall be resolved in accordance
with this Section 18 regarding resolution of disputes, which will be the sole and exclusive procedure for the resolution of any disputes.
This Agreement shall be enforced in accordance with the Federal Arbitration Act, the enforcement provisions of which are incorporated
by this reference. Matters subject to these provisions include, without limitation, claims or disputes based on statute, contract, common
law, and tort and will include, for example, matters pertaining to termination, discrimination, harassment, compensation, and benefits.
Matters to be resolved under these procedures also include claims and disputes arising out of statutes such as the Fair Labor Standards
Act, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, Nevada State Law. Nothing in this provision is intended
to restrict Employee from submitting any matter to an administrative agency with jurisdiction over such matter.

 

    	 

    	 

    

 

18.1
Mediation. Employer and Employee will make a good faith attempt to resolve any and all claims and disputes by submitting them to
mediation in Nevada before resorting to any other dispute resolution procedure, with the exception of administrative processes, such
as the U.S. Equal Employment Opportunity Commission and in other instances where the statute of limitations does not permit such process.
The mediation of any claim or dispute must be conducted in accordance with the then-current JAMS procedures for the resolution of employment
disputes by mediation, by a mediator who has had both training and experience as a mediator of general employment and commercial matters.
If the parties to this Agreement cannot agree on a mediator, then the mediator will be selected by JAMS in accordance with JAMS’
strike list method. Within thirty (30) days after the selection of the mediator, Employer and Employee and their respective attorneys
will meet with the mediator for one mediation session of at least four hours. If the claim or dispute cannot be settled during such mediation
session or mutually agreed continuation of the session, either Employer or Employee may give the mediator and the other party to the
claim or dispute written notice declaring the end of the mediation process. All discussions connected with this mediation provision will
be confidential and treated as compromise and settlement discussions. Nothing disclosed in such discussions, which is not independently
discoverable, may be used for any purpose in any later proceeding. The mediator’s fees will be paid in equal portions by Employer
and Employee, unless Employer agrees to pay all such fees.

 

18.2
Arbitration. If any claim or dispute has not been resolved in accordance with Section 18.1, then the claim or dispute will be determined
by arbitration in accordance with the then-current JAMS employment arbitration rules and procedures, except as modified herein. The arbitration
will be conducted by a sole neutral arbitrator who has had both training and experience as an arbitrator of general employment and commercial
matters and who is and for at least ten (10) years has been, a partner, a shareholder, or a member in a law firm. If Employer and Employee
cannot agree on an arbitrator, then the arbitrator will be selected by JAMS in accordance with Rule 15 of the JAMS employment arbitration
rules and procedures. No person who has served as a mediator under the mediation provision, however, may be selected as the arbitrator
for the same claim or dispute. Reasonable discovery will be permitted, and the arbitrator may decide any issue as to discovery. The arbitrator
may decide any issue as to whether or as to the extent to which any dispute is subject to the dispute resolution provisions in Section
18 and the arbitrator may award any relief permitted by law. The arbitrator must base the arbitration award on the provisions of Section
18 and applicable law and must render the award in writing, including an explanation of the reasons for the award. Judgment upon the
award may be entered by any court having jurisdiction of the matter, and the decision of the arbitrator will be final and binding. The
statute of limitations applicable to the commencement of a lawsuit will apply to the commencement of an arbitration under Section 18.2.
The arbitrator’s fees will be paid in equal portions by Employer and Employee, unless Employer agrees to pay all such fees.

 

    	 

    	 

    

 

19.
Fees Related to Dispute Resolution. Unless otherwise agreed, the prevailing party will be entitled to its costs and attorneys’
fees incurred in any litigation or dispute relating to the interpretation or enforcement of this Agreement, which shall not exceed the
amount of total compensation Employee received in the last twelve (12) months of his employment with the Employer.

 

20.
Disclosure. Employee agrees fully and completely to reveal the terms of this Agreement to any future employer or potential employer
of Employee and authorizes Employer, at its election, to make such disclosure.

 

21.
Representation of Employee. Employee represents and warrants to Employer that Employee is free to enter into this Agreement and has
no contract, commitment, arrangement or understanding to or with any party that restrains or is in conflict with Employee’s performance
of the covenants, services and duties provided for in this Agreement. Employee agrees to indemnify Employer and to hold it harmless against
any and all liabilities or claims arising out of any unauthorized act or acts by Employee that, the foregoing representation and warranty
to the contrary notwithstanding, are in violation, or constitute a breach, of any such contract, commitment, arrangement or understanding.

 

22.
Conditions of Employment. Employer’s obligations to Employee under this Agreement are conditioned upon Employee’s timely
compliance with requirements of the United States immigration laws.

 

23.
Assignability. During Employee’s employment, this Agreement may not be assigned by either party without the written consent
of the other; provided, however, that Employer may assign its rights and obligations under this Agreement without Employee’s consent
to a successor by sale, merger or liquidation, if such successor carries on the Business substantially in the form in which it is being
conducted at the time of the sale, merger or liquidation. This Agreement is binding upon Employee, Employee’s heirs, personal representatives
and permitted assigns and on Employer, its successors and assigns.

 

24.
Notices. Any notices required or permitted to be given hereunder are sufficient if in writing and delivered by hand, by facsimile,
by registered or certified mail, or by overnight courier, to Employee at Kevin Francis, 553 Sage Circle, Highlands Ranch, CO 80126 or
to Employer at U.S. Gold Corp., Suite 102 – Box 604, 1910 E Idaho Street, Elko, NV 89801. Notices shall be deemed to have been
given (i) upon delivery, if delivered by hand, (ii) seven days after mailing, if mailed, (iii) one business day after delivery, if delivered
by courier, and (iv) one business day following receipt of an appropriate electronic confirmation, if by facsimile.

 

    	 

    	 

    

 

25.
Severability. If any provision of this Agreement or compliance by any of the parties with any provision of this Agreement constitutes
a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law,
unenforceable or void, shall be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or
void, and such provision will be enforced to the fullest extent permitted by law. The Parties shall engage in good faith negotiations
to modify and replace any provision which is declared invalid or unenforceable with a valid and enforceable provision, the economic effect
of which comes as close as possible to that of the invalid or unenforceable provision which it replaces. If such modification is not
possible, said provision, to the extent that it is in violation of law, unenforceable or void, shall be deemed severable from the remaining
provisions of this Agreement, which provisions will remain binding on the parties.

 

26.
Waivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder will operate
as a waiver thereof; nor will any single or partial waiver of a breach of any provision of this Agreement operate or be construed as
a waiver of any subsequent breach; nor will any single or partial exercise of any right or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right or remedy granted hereby or by law.

 

27.
Governing Law. Except as provided in Section 18 above, the validity, construction and performance of this Agreement shall be governed
by the laws of the State of Nevada without regard to the conflicts of law provisions of such laws. The parties hereto expressly recognize
and agree that the implementation of this Section 27 is essential in light of the fact that Employer has its corporate headquarters and
its principal executive offices within the State of Nevada, and there is a critical need for uniformity in the interpretation and enforcement
of the employment agreements between Employer and its key employees.

 

28.
409A Savings Provisions.

 

28.1
The provisions of this Agreement are intended to be exempt from or otherwise comply with Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”) and any final regulations and authoritative guidance promulgated thereunder (“Section
409A”) and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.
The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
which are necessary, appropriate, or desirable to avoid imposition of any additional tax or income recognition prior to actual payment
to Employee under Section 409A.

 

28.2
To the extent that Employee will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section
409A, (a) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount
of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be
violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses
are subject to a limit related to the period the arrangement is in effect and (c) such payments shall be made on or before the last day
of the taxable year following the taxable year in which the expenses were incurred.

 

    	 

    	 

    

 

28.3
A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of employment unless such termination constitutes a “Separation
from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,”
“termination of employment” or like terms shall mean Separation from Service.

 

28.4
Each installment payment payable hereunder shall constitute a separate payment for purposes of Section 409A. Each payment that is
made within the terms of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended
to meet the “short-term deferral” rule. Each other payment is intended to be a payment upon an involuntary Separation from
Service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation,
with any amount that is not exempt from Code Section 409A being subject to Code Section 409A.

 

28.5
Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the meaning
of Section 409A at the time of Employee’s termination, then only that portion of the severance and benefits payable to Employee
pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered deferred compensation
under Section 409A (together, the “Deferred Compensation Separation Benefits”), which (when considered together) do not exceed
the Section 409A Limit (as defined herein) may be made within the first six (6) months following Employee’s termination of employment
in accordance with the payment schedule applicable to each payment or benefit. Any portion of the Deferred Compensation Separation Benefits
in excess of the Section 409A Limit otherwise due to Employee on or within the six (6) month period following Employee’s termination
will accrue during such six (6) month period and will become payable in one lump sum cash payment on the date six (6) months and one
(1) day following the date of Employee’s termination of employment. All subsequent Deferred Compensation Separation Benefits, if
any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to
the contrary, if Employee dies following termination but prior to the six (6) month anniversary of Employee’s termination date,
then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after
the date of Employee’s death, and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment
schedule applicable to each payment or benefit.

 

28.6
For purposes of this Agreement, “Section 409A Limit” will mean a sum equal (i) to the amounts payable prior to March
15 following the year in which Employee’s employment terminates plus (ii) the lesser of two (2) times: (x) Employee’s annualized
compensation based upon the annual rate of pay paid to Employee during the Company’s taxable year preceding the Company’s
taxable year of Employee’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any
IRS guidance issued with respect thereto; or (y) the maximum amount that may be taken into account under a qualified plan pursuant to
Section 401(a)(17) of the Code for the year in which Employee’s employment is terminated.

 

    	 

    	 

    

 

29.
Golden Parachute Limitation. Notwithstanding any other provision of this Agreement, in the event that it shall be determined that
the aggregate payments or distributions by the Company to or for the benefit of Employee, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise (the “Payments”), constitute “excess parachute payments”
(as such term is defined under Section 280G of the Code or any successor provision, and the regulations promulgated thereunder (collectively,
“Section 280G”)) that would be subject to the excise tax imposed by Section 4999 of the Code or any successor provision (collectively,
“Section 4999”) or any interest or penalties with respect to such excise tax (the total excise tax, together with any interest
and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Payments shall be either (a) delivered
in full, or (b) delivered to such lesser extent that would result in no portion of the Payments being subject to the Excise Tax, whichever
of the foregoing amounts, taking into account the applicable Federal, state or local income and employment taxes and the Excise Tax,
results in the receipt by Employee, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion
of such benefits may be subject to the Excise Tax. In the event that the Payments are to be reduced pursuant to this Section 29, such
Payments shall be reduced such that the reduction of compensation to be provided to Employee as a result of this Section 29 is minimized.
In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A and where two economically
equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis (but not
below zero). All calculations required pursuant to this Section 29 shall be performed in good faith by nationally recognized registered
public accountants or tax counsel selected by the Company.

 

30.
Counterparts. This agreement may be executed in counterpart in different places, at different times and on different dates, and in
that case all executed counterparts taken together collectively constitute a single binding agreement.

 

31.
Costs and Fees Related to Negotiation and Execution of Agreement. Except as otherwise provided herein, each Party shall be responsible
for the payment of its own costs and expenses, including legal fees and expenses, in connection with the negotiation and execution of
this Agreement. Neither Party will be liable for the payment of any commissions or compensation in the nature of finders’ fees
or brokers’ fees, gratuity or other similar thing or amount in consideration of the other Party entering into this Agreement to
any broker, agent or third party acting on behalf of the other Party. Notwithstanding the foregoing, the Company shall reimburse Employee
up to $2,500, less applicable deductions and withholdings, for his reasonable, documented out-of-pocket legal fees actually incurred
by Employee for the purpose of reviewing this Agreement.

 

32.
Entire Agreement. This instrument contains the entire agreement of the parties with respect to the relationship between Employee
and Employer and supersedes all prior agreements and understandings, and there are no other representations or agreements other than
as stated in this Agreement related to the terms and conditions of Employee’s employment. This Agreement may be changed only by
an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is
sought, and any such modification will be signed by the Chairman of the Board of Directors of Employer.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have duly signed and delivered this Agreement as of the day and year first above written.

 

	 	U.S.
    GOLD CORP. 
	 	 
	 	By:	/s/
    George Bee
	 	Name:	George
    Bee
	 	Title:	President
    & CEO
	 	 	 
	 	Kevin
    Francis
	 	 
	 	/s/
    Kevin Francis

 

    	 

    	 

    

 

Exhibit
A

 

Job
Description

Vice
President Exploration and Technical Services

 

Employee’s
duties will include but not be limited to the following roles, duties, and tasks as part of the executive management team of US Gold
Corp.:

 

Take
all reasonable measures to ensure that the company’s resources and reserves are accurately reported. This may include the selection
of independent, qualified third parties to act as a Qualified Person as contemplated in the Acts, Laws and Regulations pertaining to
the public disclosure of the company’s assets.

 

Lead
and direct the exploration, development, and operation of the company’s mineral assets as it pertains to the geologic and technical
aspects in coordination with the company’s executive management group.

 

Evaluate,
recommend, and select the appropriate third-party consultants and contractors necessary to advance the assets in the company’s
portfolio, or as part of an evaluation for a “Mergers and Acquisition” transaction. Cognizance should be made of the cost,
qualifications, and context of the business environment in which the company is operating.

 

As
an experienced and senior professional contribute to all aspects of the day-to-day business activities, participating a member of the
senior leadership team.

 

Be
prepared to assume management and leadership roles to cover short-term absences of the company’s other senior leadership.

 

Report
to the company board, as necessary, to assist with the proper dissemination of information concerning the business and to ensure that
proper governance is maintained.

 

To
accomplish, or caused to be accomplished, whatever tasks are necessary to advance the business interest of the company taking into consideration
the size, scale, and position of the company withing the business sector in which it is operating.

 

At
all time work under the highest professional and ethical standards.

 

    	 

    	 

    

 

Exhibit
B

 

Target
Bonus – 2021 Performance Goals

 

Project
Goals (timing for all goals may be adjusted to adapt to the impacts of COVID 19)

 

	 	I.	CK Gold Project. Weight 45%

 

	 	●	Complete
    new Resource Model and Geological update by April 30th, 2021
	 	●	Complete
    Prefeasibility Study by June 30, 2021; technical, engineering, environmental and social studies completed to BFS standards
	 	●	Complete
    Budget for CK Gold project (detailed on planned activities and quotes where possible) through December 2021 by June 30, 2021.
	 	●	Complete
    Indicative budget for 2022 (estimates based on stated assumptions, e.g. board approval to proceed on FS) August 31, 2021. Activities
    include FS Study, Permitting, PR and ongoing field work.
	 	●	Build
    positive working relationships with regulators, government agencies and officials, nearby/impacted ranchers and landowners
	 	●	Develop
    and strategy and advance discussions with Martin Marietta for southern access and potential for infrastructure sharing

 

	 	II.	Keystone Project. Weight 15%

 

	 	●	Obtain
    all permits, clearance and coordination with regulators
	 	●	Solicit
    and engage in JV, or similar investment, discussions with potential partners (2 plus) for Keystone exploration.
	 	●	Execute
    20-hole exploration Drill Program, assuming Board approval of proposed expenditure and exploration plan

 

	 	III.	Maggie Creek. Weight 5%

 

	 	●	Complete
    minimum exploration expenditure and program ($300K +/- 10%) to comply with contractual obligations
	 	●	Seek
    consolidation of claims to support exploration activities or improved terms and conditions surrounding holdings
	 	●	Consider
    joint venture or sale process

 

	 	IV.	Challis Project. Weight 10%

 

	 	●	Complete
    scout geological analysis and interpretation
	 	●	Conduct
    detailed soil sampling program
	 	●	Submit
    Plan of Operation permit application

 

Corporate
Goals

 

	 	I.	Financing. Weight 10%

 

	 	●	Secure
    between $5 and $15 million by Q2 2021 to carry CK Gold through FS and permit application

 

    	 

    	 

    

 

	 	II.	Marketing and Corporate Performance. Weight 5%

 

	 	●	Double
    market capitalization by December 2021 (measured as at November 1st 2020) with proportional increase in shareholder value
    and minimal dilution
	 	●	Obtain
    coverage from at least 2 leading market analysts
	 	●	Attend
    3 investment conferences

 

	 	III.	Management Objectives, Weight 10%

 

	 	●	Document
    USAU internal controls by Dec 31, 2021
	 	●	Develop
    and implement an industry best practice ESG policy and Safety policies and practices by Dec 31, 2021
	 	●	Build
    a new internal financial model post-PFS to share with analysts, investors, etc.
	 	●	M&A.
    Present at least two new opportunities, and identify and consider opportunities for projects/potential merger/potential takeover;
    respond and act appropriately to new business opportunities
	 	●	Consider
    expanding the Board in 2021, adding a high-profile, qualified Director
	 	●	Hire
    necessary and appropriate expertise to advance corporate and project objectives, permanent and temporary as appropriate

 

    	 

    	 

    

 

Exhibit
C

 

List
of Inventionsex_264134.htm

Exhibit 10.4

 

SECURED CONVERTIBLE PROMISSORY NOTE AND SECURITY AGREEMENT

 

(MULLEN TECHNOLOGIES, INC.)

 

	$23,831,553.98	July 23, 2020

 

This SECURED PROMISSORY NOTE AND SECURITY AGREEMENT (this “Note”) is entered into pursuant to that certain Settlement, Termination, Release and Equity Purchase and Loan Agreement of even date herewith by and among the parties hereto and Drawbridge Investments LLC (the “Agreement”). For value received, MULLEN TECHNOLOGIES, INC., a California corporation, its affiliates, successors, and assigns (“Borrower”), hereby irrevocably and unconditionally promise to pay to the order of DBI LEASE BUYBACK SERVICING LLC, a Delaware limited liability company (together with any and all of its successors and assigns and/or any other holder of this Note, “Lender”), without offset, in immediately available funds in lawful money of the United States of America, at an address to be specified in writing by the Lender to Borrower, the principal sum of TWENTY THREE MILLION, EIGHT HUNDRED THIRTY ONE THOUSAND, FIVE HUNDRED AND FIFTY THREE DOLLARS AND 98/100 ($23,831,553.98), together with interest on the unpaid principal balance of this Note from day to day outstanding as hereinafter provided (the “Loan”).

 

Section 1.    Payment and Maturity Date. Subject to the terms and conditions of this Note and the Agreement, Borrower promises to pay the entire unpaid principal amount, together with all accrued and unpaid interest due hereunder, on or before July 23, 2022 (the “Maturity Date”). The period beginning on the date hereof and continuing through the Maturity Date shall be referred to herein as the “Term.” Notwithstanding the foregoing, during the Term, Borrower will pay interest accrued on the outstanding principal balance of this Note monthly in arrears on the first Business Day (as defined below) of each calendar month, commencing on August 3, 2020 (each such date, an “Interest Payment Date”), and continuing until the Maturity Date, when the entire amount of principal and interest owing hereunder will be due and payable in full; provided, that at Borrower’s sole and absolute election, all or a portion of the interest due and payable on each Interest Payment Date may be payable in kind, with such interest amount added to, and made part of, the outstanding principal amount of the Loan on such date.

 

Section 2.    Interest Rate. The unpaid principal balance of this Note from day to day outstanding shall bear interest at the rate per annum beginning on the date hereof, equal to twenty eight percent (28%). Interest hereunder shall be compounded monthly, and shall be computed on the basis of a 360-day year and the actual number of days elapsed. Interest on the principal indebtedness evidenced by this Note shall accrue on the actual number of days any principal balance hereof is outstanding.

 

Section 3.    Prepayments. Borrower may make voluntary prepayments of the principal balance of this Note, in full at any time or in part from time to time, without premium or penalty; provided, however, that Borrower shall be required to prepay the principal balance of this Note with 50% of the net proceeds (which shall be deemed gross proceeds minus direct selling costs, expenses and commissions) received, directly or indirectly by Borrower and/or its subsidiaries from the issuance of any equity or equity-linked financing (including convertible debt), less any selling commissions, will be applied towards the outstanding amounts owed under the this Note, except for the approximately up to $10 million of capital to be contributed by NetElement, Inc. in connection with a proposed reverse merger transaction (a “Financing”); and provided, further, that in either case, Borrower shall provide to Lender prior written notice of Borrower's: (a) intent to prepay; (b) the amount of such prepayment (including, in the case of any prepayment with the proceeds of a Financing, the aggregate gross and net proceeds of such Financing to be received by Borrower and/or its subsidiaries), and (c) the date on which the prepayment will be made. In the case of a prepayment to be made with the proceeds of a Financing, such prepayment shall be made by Borrower no later than the second Business Day following the closing of the Financing. All payments under this Note, including any prepayments, shall be made by wire transfer or check in accordance with Lender’s instructions, and shall be payable in lawful money of the United States.

 

 

 

 

Section 4.    Security Interest. Borrower hereby pledges and grants to Lender an irrevocable and continuing first-priority security interest in all of its right, title, and interest in and to the Collateral (as such term is defined below), to secure the prompt payment and performance of all of Borrower’s present and future debts, obligations, and liabilities of whatever nature to Lender, including, without limitation, all obligations of Borrower arising from or relating to this Note. Borrower hereby agrees to execute and deliver such further documentation and take such further actions as Lender may request in order to enforce and protect the aforesaid security interest, including, without limitation, one or more account control agreements by and among the Borrower, Lender and any bank where the Borrower maintains any deposit accounts that are subject to Lender’s security interest hereunder. Borrower hereby authorizes Lender to notify any account debtor on any accounts that are the subject of Lender’s security interest hereunder of the existence of Lender’s interest and further, such notices may direct that after an Event of Default, any further payments shall be made directly to Lender. Borrower authorizes Lender to collect and enforce any of the Collateral, with the proceeds to be applied to the indebtedness outstanding hereunder, without liability to Borrower in connection with any such collection or enforcement and provided Borrower shall pay costs incurred by Lender, including reasonable attorneys’ fees and costs, for such collection and enforcement. Borrower hereby authorizes Lender to perfect its security interest in the Collateral including, without limitation, filing, amending, and renewing one or more UCC-1 Financing Statements or continuation statements in respect thereof, and amendments thereto, relating to all or any part of the Collateral without the prior approval or signature of the Borrower where permitted by law and at Borrower’s expense. Without first obtaining Lender’s prior written consent and so long as any amounts under this Note or the Agreement remain owing, Borrower shall not move, sell, transfer, assign, dispose, or encumber the Collateral outside the ordinary course of Borrower’s business. Borrower shall adequately insure the Collateral for full replacement value and in conformity with industry standard practices and shall list Lender as an additional insured.

 

Section 5.    Collateral.

 

(a) “Collateral” shall mean all of Borrower’s right, title and interest in and to all of the assets of Borrower, including without limitation, the following assets (whether now existing or hereafter arising or acquired, wherever located):

 

(i) All present and future income, accounts, accounts receivable, rights to payment and all forms of consideration and obligations owing to Borrower or in which the Borrower may have any interest, however created or arising and whether or not earned by performance;

 

(ii) All deposit accounts, securities, securities entitlements, securities accounts, investment property and certificates of deposit now owned or hereafter acquired;

 

(iii) All other real and personal property now owned or hereafter acquired, including, and all accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; and

 

(iv) All other contract rights, intellectual property (including know-how, trade secrets, patents, copyrights, trade and service marks, licenses; issued, pending, or planned; and registered or at common law), and general intangibles now owned or hereafter acquired, including, without limitation, income tax refunds, credits, deposits, payments of insurance and rights to payment of any kind.

 

2

 

 

(b) Exclusions to Collateral. Notwithstanding the foregoing, Collateral shall not include (i) any real property owned by Borrower as of the date hereof or (ii) any hereinafter acquired real or personal property (including, without limitation, all other contract rights, intellectual property (including know-how, trade secrets, patents, copyrights, trade and service marks, licenses; issued, pending, or planned; and registered or at common law), and general intangibles) further to which the seller thereof self-finances or provides seller-backed financing.

 

Section 6.    Corporate Guaranty. In the event that Borrower undertakes a merger, acquisition, purchase and sale, change of control, joint venture, or reorganization, including but not limited to a reverse merger transaction with NetElement, Inc. or any other public reporting entity (each a “Reporting Co.”), any Reporting Co., parent, subsidiary or successor company and any of its subsidiaries shall unconditionally guaranty Borrower’s payment and performance under this Note (as this Note may be amended from time to time) as primary obligor and not merely as a surety.

 

Section 7.    Rights to Collateral. Lender shall have such rights and remedies with respect to the Collateral as are available under the provisions of all applicable laws, including without limitation, the Uniform Commercial Code, in addition to all other rights and remedies existing at law, in equity, or by statute, or provided in the Agreement or this Note, which may be exercised without notice to, or consent by, Borrower.

 

Section 8.    Conversion

 

(a)    Optional Conversion. Lender may by written election elect to convert all or any portion of the then-outstanding principal balance of this Note into that number of shares of the common stock of the Borrower or Reporting Co., as applicable, equal to the number obtained by dividing the outstanding principal balance of this Note to be so converted by the greater of (i) $10.00 or (ii) 70% of the lowest closing sales price on the Nasdaq Capital Market (or such principle market if not traded on the Nasdaq Capital Market) of shares of the common stock of Mullen or Reporting Co., as the case may be, during the three consecutive trading days prior to the date of conversion (“Conversion Price”), provided, however, that if the Reporting Co. is not NetElement, Inc., the Borrower and Lender shall negotiate in good faith as to the fixed conversion price.

 

(b)    Conversion Process. In the event of the conversion of this Note pursuant to this Section 8: (i)  Lender agrees to surrender this Note for conversion and deliver the attached form of notice of conversion and (ii) Borrower shall, at its sole cost and reasonably promptly following such delivery (but in no event later than three business days after delivery of those items referenced in Section 8(b)(i)), issue and deliver certificates representing the requisite number of fully paid and non-assessable shares of common stock and any balance note (to the extent all amounts owing under this Note are not so converted) and shall pay to Holder cash in an amount equal to that portion of the principal balance, if any, that would otherwise convert into a fractional share of common stock pursuant to this Section 8.

 

(c)    Authorization of Shares. Borrower (and any Reporting Co.) shall take all action necessary and appropriate to designate and authorize a sufficient number of shares of common stock issuable upon conversion of this Note.

 

(d)    Limitations on Conversion. Notwithstanding anything to the contrary contained herein, this Note shall not be convertible by a holder to the extent (but only to the extent) that the holder or any of its affiliates would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the common stock of the Borrower. To the extent the above limitation applies, the determination of whether the Note shall be convertible (vis-à-vis other convertible securities owned by the holder or any of its affiliates) and of which such securities shall be convertible (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 corporation for conversion. No prior inability to convert the 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. 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 Securities Exchange Act of 1934, as amended, 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 the Note. The holders of common stock of the Borrower shall be third party beneficiaries of this paragraph and the Borrower may not amend or 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 Borrower shall within one (1) Business Day confirm orally and in writing to the holder the number of shares of common stock then outstanding, including by virtue of any prior conversion of convertible securities into common stock, including, without limitation, pursuant to this Note. By written notice to the Borrower, any holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any such increase will not be effective until the 61st day after such notice is delivered to the Borrower, and (ii) any such increase or decrease will apply only to such holder sending such notice and not to any other holder.

 

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Section 9.    Events of Default. The occurrence of any one or more of the following shall constitute an “Event of Default” under this Note:

 

(a)    Borrower fails to pay when and as due and payable any amounts payable by Borrower to Lender under the terms of this Note and such failure is not cured within five (5) Business Days following written notice thereof from the Lender;

 

(b)    Borrower fails to use reasonable care to protect and preserve any Collateral or fails to keep accurate books and records with respect to the Collateral, and such failure is not reasonably cured within ten (10) Business Days following written notice thereof from the Lender;

 

(c)    Selling, transferring, encumbering, or suffering any material damage or loss of the Collateral outside the ordinary course of Borrower’s business;

 

(d)    Borrower fails or neglects to perform, keep or observe any term, provision or agreement contained in the Agreement or this Note (inclusive of Borrower’s warranties, representations, and covenants), other than as provided in Section 9(a) above, and such failure is not reasonably cured within ten (10) Business Days following written notice thereof from the Lender;

 

(e)    Borrower becomes unable to pay its debts as they generally become due or Borrower ceases operations in the normal course; or

 

(f)    The institution by Borrower of proceedings to be adjudicated as bankrupt or insolvent, or the institution of bankruptcy or insolvency proceedings against it that are not dismissed within sixty (60) days of filing, or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of Borrower, or of any substantial part of its property, or the making of an assignment for the benefit of creditors (any of the foregoing, a “Bankruptcy Proceeding”), or the taking of corporate action by Borrower in furtherance of any such action.

 

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Section 10.    Representations and Warranties. Borrower hereby represents, warrants, and covenants to Lender that:

 

(a)    Borrower is duly incorporated, validly existing, legally competent and has the power and authority to execute and deliver this Note and has duly executed and delivered this Note;

 

(b)    This Note is the legal, valid and binding obligation of Borrower, enforceable in accordance with its terms;

 

(c)    Borrower’s books and records with respect to the Collateral are true and accurate in all material respects;

 

(d)    Borrower has the present ability to perform its obligations and make the requisite payments under this Note;

 

(e)    During the Term, Borrower shall comply with all applicable laws; and

 

(f)    The execution and delivery of this Note and the borrowing evidenced hereby do not require the consent or approval of any other party (including any governmental or regulatory party), and do not violate any law, regulation or agreement to which Borrower is a party or to which Borrower or any of its assets may be subject.

 

Section 11.    Remedies. Upon the occurrence of an Event of Default, Lender may at any time thereafter exercise any one or more of the following rights, powers and remedies:

 

(a)    In the case of an Event of Default specified in clauses (a), (b) or (c) of Section 9, Lender may accelerate the Maturity Date and declare the unpaid principal balance and accrued but unpaid interest on this Note, and all other amounts payable hereunder, at once due and payable, and upon such declaration the same shall at once be due and payable; and

 

(b)    In the case of a Bankruptcy Proceeding, the unpaid principal balance and accrued but unpaid interest on this Note, and all other amounts payable hereunder, shall at once become and be due and payable; and

 

(c)    Lender may exercise any of its other rights, powers and remedies at law or in equity, including foreclosing on the Collateral in accordance with the remedies provided to a lender under the Uniform Commercial Code.

 

Section 12.    Remedies Cumulative. All of the rights and remedies of Lender under this Note are cumulative of each other and of any and all other rights at law or in equity, and the exercise by Lender of any one or more of such rights and remedies shall not preclude the simultaneous or later exercise by Lender of any or all such other rights and remedies. No single or partial exercise of any right or remedy shall exhaust it or preclude any other or further exercise thereof, and every right and remedy may be exercised at any time and from time to time. No failure by Lender to exercise, nor delay in exercising, any right or remedy shall operate as a waiver of such right or remedy or as a waiver of any Event of Default.

 

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Section 13.    Notices. All notices or elections required or permitted under this Note will be in writing and will be delivered in person, by facsimile, electronic mail or equivalent form of written telecommunication (with confirmation of delivery), or sent by certified or registered mail via the U.S. Postal service, return receipt requested, postage prepaid or by Federal Express, DHL or UPS, to the address for each party set forth on the signature page to the Agreement or such other address as a party may designate in a written notice served upon the other party in the manner provided for herein. All notices required or permitted hereunder will be deemed duly given and received (a) on the date received, if personally delivered or sent by facsimile or electronic mail, (b) two (2) business days after being sent by Federal Express, DHL or UPS, and (c) five (5) business days after deposit with the U.S. Postal Service, if sent by registered or certified mail.

 

Section 14.    Costs and Expenses of Enforcement. Borrower agrees to pay to Lender on demand all costs and expenses incurred by Lender in seeking to collect this Note or enforce or collect upon any of the Collateral, including court costs and reasonable attorneys' fees and expenses, whether or not suit is filed hereon, or whether in connection with bankruptcy, insolvency or appeal.

 

Section 15.    Service of Process. Borrower hereby consents to process being served in any suit, action, or proceeding instituted in connection with this Note by the mailing of a copy thereof by certified mail, postage prepaid, return receipt requested, to Borrower. Borrower irrevocably agrees that such service shall be deemed to be service of process upon Borrower in any such suit, action, or proceeding. Nothing in this Note shall affect the right of Lender to serve process in any manner otherwise permitted by law, and nothing in this Note will limit the right of Lender otherwise to bring proceedings against Borrower in the courts of any jurisdiction or jurisdictions.

 

Section 16.    Heirs, Successors and Assigns. The terms of this Note shall bind and inure to the benefit of the heirs, devisees, representatives, successors and permitted assigns of the parties. Borrower may not assign or transfer its rights or obligations hereunder without the prior written consent of Lender. Lender may freely assign all or a portion of this Note.

 

Section 17.    General Provisions Time is of the essence with respect to Borrower's obligations under this Note. Borrower hereby (a) waives demand, presentment for payment, notice of dishonor and of nonpayment, protest, notice of protest, notice of intent to accelerate, notice of acceleration and all other notices (except any notices which are specifically required by this Note), filing of suit and diligence in collecting this Note, and (b) consents to any extensions or postponements of time of payment of this Note for any period or periods of time and to any partial payments, before or after maturity, and to any other indulgences with respect hereto, without notice thereof to any of them. A determination that any provision of this Note is unenforceable or invalid shall not affect the enforceability or validity of any other provision and the determination that the application of any provision of this Note to any person or circumstance is illegal or unenforceable shall not affect the enforceability or validity of such provision as it may apply to other persons or circumstances. This Note may not be amended except in a writing specifically intended for such purpose and executed by the party against whom enforcement of the amendment is sought. Captions and headings in this Note are for convenience only and shall be disregarded in construing it. This Note and its validity, enforcement and interpretation shall be governed by and construed in accordance with the laws of the State of New York (without regard to any principles of conflicts of laws) and applicable United States federal law. Whenever a time of day is referred to herein, unless otherwise specified such time shall be the local time of the place where payment of this Note is to be made. The term “Business Day” shall mean a day on which Lender is open for the conduct of substantially all of its business at its office in the city in which this Note is payable (excluding Saturdays and Sundays). The words “include” and “including” shall be interpreted as if followed by the words “without limitation.”

 

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Section 18.    Mandatory Binding Arbitration; Consent to Jurisdiction. Except as set forth in this Section 18, the sole remedy for any claim, controversy or other dispute between or among the parties, or any of them, regarding any matter relating to this Note or any breach or interpretation of this Note (each a “Dispute”), shall be settled and resolved by binding arbitration in New York, New York, before a panel of three arbitrators at Judicial Arbitration and Mediation Services, Inc. (“JAMS”). Each party shall select one arbitrator and those two arbitrators together shall select the third arbitrator. The arbitration shall be conducted in accordance with JAMS’s rules and procedures, including JAMS’s Comprehensive Arbitration Rules and Procedures, except as expressly modified by this paragraph. In reaching a decision on any Dispute, the arbitrators shall be bound by the provisions of this Note and by the law that the parties have selected to govern the enforcement and interpretation of this Note. The arbitrators shall be required to render their decision in writing. The arbitrators‘ decision on the Dispute shall be a final and binding determination, and such decision may be confirmed and shall be fully enforceable as an arbitration award in any court having jurisdiction and venue over the parties. The arbitrators shall have exclusive jurisdiction to determine any questions of arbitrability and any such question shall be governed by the New York civil practice laws and rules. The arbitrators shall also award the prevailing party or parties such party’s or parties’ reasonable attorneys’ fees and litigation expenses in accordance with Section 19 below, and shall order the non-prevailing party or parties to pay the prevailing party’s or parties’ arbitrator’s fees and expenses as part of the arbitration award. For such purpose, the arbitrators shall determine the prevailing party or parties. Each party agrees to accept service of process for all arbitration proceedings in accordance with JAMS’s rules. Nothing in this paragraph shall prevent any party from (a) seeking and obtaining injunctive or other equitable relief through an action in court; (b) joining any party as a defendant in any action brought by or against a third party; (c) bringing an action in court to effect any attachment or garnishment; or (d) bringing an action in court to compel arbitration as required by this paragraph. The parties agree that in the event the arbitrators decide that a Dispute is not subject to arbitration, all actions or proceedings arising directly or indirectly from this Note shall be litigated in courts having a situs within New York County, New York, and hereby consent to the jurisdiction of any federal court in which such an action is commenced that is located in New York County, New York and agree not to disturb such choice of forum.

 

Section 19.    Attorneys’ Fees. If an action (including arbitration) is brought to interpret, apply or enforce any of the terms of this Note, or because of a party’s breach of any provision of this Note, the losing party shall pay the prevailing party’s or parties’ attorneys’ fees, costs and expenses, court costs and other costs of action incurred in connection with the prosecution or defense of such action, whether or not the action is prosecuted to a final judgment. In addition to the foregoing award of attorneys’ fees, the prevailing party or parties shall be entitled to such party’s or parties’ attorneys’ fees incurred in any post-judgment proceeding to enforce any award or judgment arising out of an action in connection with this Note.

 

Section 20.    No Usury. It is expressly stipulated and agreed to be the intent of Borrower and Lender at all times to comply with applicable state law or applicable United States federal law (to the extent that it permits Lender to contract for, charge, take, reserve, or receive a greater amount of interest than under state law), including but not limited to pursuant to New York General Obligations Law § 5-501(6)(a) and (6)(b), and that this Section 20 shall control every other covenant and agreement in this Note. If applicable state or federal law should at any time be judicially interpreted so as to render usurious any amount called for under this Note, or contracted for, charged, taken, reserved, or received with respect to the Loan, or if Lender's exercise of the option to accelerate the Maturity Date, or if any prepayment by Borrower results in Borrower having paid any interest in excess of that permitted by applicable law, then it is Lender's express intent that all excess amounts theretofore collected by Lender shall be credited on the principal balance of this Note, and the provisions of this Note shall immediately be deemed reformed and the amounts thereafter collectible hereunder and thereunder reduced, without the necessity of the execution of any new documents, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder or thereunder. All sums paid or agreed to be paid to Lender for the use or forbearance of the Loan shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated Term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the maximum lawful rate from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.

 

[Remainder of page intentionally left blank]

 

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Intending to be bound, the authorized representatives of Borrower and Lender have duly executed this Note as of the date first above written.

 

 

	 	BORROWER:	 
	 	 	 	 
	 	MULLEN TECHNOLOGIES, INC.,	 
	 	a California corporation	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ David Michery	 
	 	Name:	David Michery	 
	 	Title:	CEO	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	LENDER:	 
	 	 	 	 
	 	 	 	 
	 	DBI LEASE BUYBACK SERVICING LLC,	 
	 	a Delaware limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Tsvi Davis	 
	 	Name:	Tsvi Davis	 
	 	Title:	Member	 

 

8

 

 

FORM OF NOTICE OF CONVERSION OF SECURED CONVERTIBLE PROMISSORY NOTE

 

 

(To be executed only upon conversion

of the Secured Convertible Promissory Note in whole or in part)

 

To Mullen Technologies, Inc.

 

The undersigned registered holder of the accompanying Secured Convertible Promissory Note, hereby gives notice of its election to convert _______________________ Dollars of the Note into Common Stock at the Conversion Price ($____ , which represents the greater of (i) $10.00 or (ii) 70% of the lowest closing sales price on the Nasdaq Capital Market (or such principle market if not traded on the Nasdaq Capital Market) of shares of the common stock of Mullen or Reporting Co., as the case may be, during the three consecutive trading days prior to the date of conversion). The undersigned requests that the certificates for such shares of Common Stock (and, if applicable, a new note evidencing the balance of the unconverted portion of the Note) be issued in the name of, and delivered to,  , whose address is ____________________________________________________________________.

 

Dated: ______________________________

 

 

	 	 	 	 
	 	(Name must conform to name of holder as specified	 
	 	on the face of Note)	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	Address of holder:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

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