Document:

Exhibit 4.1

 

AMENDED AND RESTATED SUBSCRIPTION AGREEMENT

 

Arcimoto, Inc.

2034 West 2nd Avenue

Eugene, Oregon 97402

Ladies and Gentlemen:

 

WHEREAS, the Company and Investor originally entered into a
subscription agreement (“Original Subscription Agreement”) dated December 27, 2018 with respect to Investor’s
purchase of common stock and a note, with warrant coverage.

 

WHEREAS, the Company and the Investor desire to amend the Original
Subscription Agreement by entering into this Subscription Agreement (defined below) and a convertible promissory note (“Convertible
Note”).

 

WHEREAS, this Subscription Agreement hereby amends, restates
and replaces the Original Subscription Agreement.

 

The undersigned (the “Investor”) hereby
confirms its agreement with Arcimoto, Inc., an Oregon corporation (the “Company”), as follows:

 

1. This
Subscription Agreement, including the Terms and Conditions for Purchase of Securities attached hereto as Annex A (collectively,
this “Subscription Agreement”) is made as of the date set forth below between the Company and the Investor
for the Investor’s purchase of shares of the Company’s common stock and a note, with warrant coverage, for an aggregate
purchase price of $4.5 million (the “Aggregate Purchase Price”) and an additional purchase price of $500
thousand as set forth below.

 

2. Shares
– The Company has authorized the sale and issuance to the Investor of 500,000 authorized and unissued shares (the “Shares”)
of its common stock, no par value per share. The Investor will receive Shares at an offering price equal to $3.00 per share for
an aggregate purchase price of $1.5 million (the “Share Purchase Price”).

 

3. Warrant
– The Company has authorized the sale and issuance to the Investor of a warrant (the “Warrant”)
to purchase 942,857 authorized and unissued Shares. The warrant exercise price shall be equal to $3.50 per share for an aggregate
exercise price of $3.3 million (the “Warrant Exercise Price”). The exercise period for the Warrant shall
be three (3) years from the Closing Date (as defined in Section 3.1 of Annex A) (the “Exercise Period”).
The Warrant shall be in the form attached hereto as Exhibit A.

 

4. Notes.

 

(a) $3,000,000
Note.

 

(i) The
Company authorized the sale and issuance to the Investor of a note (the “Note”) in the aggregate amount
of $3.0 million (the “Note Purchase Price”). In exchange for the Note Purchase Price paid by the Investor,
the Company will sell and issue to the Investor the Note. Starting on the Closing Date, the Note shall accrue non-compounding interest
on its unpaid principal balance at ten (10%) percent per annum. The Company shall pay to the Investor a minimum of one (1) year
of interest. The Company shall pay the unpaid principal amount and accrued interest under the Note on the earlier of: (a) the Maturity
Date; or (b) the Company’s Prepayment to the Investor, prior to the Maturity Date, of the full amount of principal and accrued
interest on the Note.

 

(ii) As
long as there is no existing Event of Default, the Company shall have the option to extend the Maturity Date to eighteen (18) months
after the Closing Date by providing Investor with: (i) written notice within twelve (12) months of the Closing Date of Company’s
intention to extend the Maturity Date and (ii) payment of Three Hundred Thousand Dollars ($300,000) as an additional fee (the “Maturity
Date Extension Option”). Other than through the exercise of the Maturity Date Extension Option, the Company and Investor
may only adjust or extend the Maturity Date by written agreement.

 

     

     

    

 

(iii) The
Note shall be substantially in the form attached hereto as Exhibit B, and secured by all of the Company’s assets pursuant
to the terms of a security agreement in the form attached hereto as Exhibit C (the “Security Agreement”),
an intellectual property security agreement in the form attached hereto as Exhibit D (the “IP Security Agreement”),
and a collateral assignment of lease agreement in the form attached hereto as Exhibit E (the “Lease Collateral
Assignment”).

 

(b) $500,000
Note.

 

(i) The
Company authorized the sale and issuance to the Investor of a Convertible Note in the aggregate amount of $500 thousand (the “Convertible
Note Purchase Price”). In exchange for the Convertible Note Purchase Price paid by the Investor, the Company will
sell and issue to the Investor the Convertible Note. Starting on the Second Closing Date, the Convertible Note shall accrue interest,
compounded monthly, on its unpaid principal balance at ten (10%) percent per annum until the earlier of (a) one (1) year from the
Second Closing Date (“Second Maturity Date”) or (b) the conversion, solely at Investor’s option,
of the principal and accrued interest of the Convertible Note into the Company’s common stock at a conversion price per share
of $4.25.

 

(ii) The
Note shall be substantially in the form attached hereto as Exhibit F, and secured by all of the Company’s assets pursuant
to the terms of the Security Agreement, IP Security Agreement and Lease Collateral Assignment.

 

5. Seniority
– Notwithstanding any provision in this Subscription Agreement to the contrary, the indebtedness evidenced by the Note and
Convertible Note shall be senior in all respects to the liens, terms, covenants and conditions of all existing debt, except for
the Permitted Senior Obligations. To the extent of any conflict or inconsistency between the other terms of this Subscription Agreement
and this Section 5, the provisions of this Section 5 shall control. The Investor’s rights and remedies under this Subscription
Agreement, the Note, the Convertible Note, the Security Agreement, the IP Security Agreement and the Lease Collateral Assignment
shall be senior to the rights and remedies of any other lender except for the Permitted Senior Obligations.

 

6. Use
of Proceeds – The proceeds from the sale and issuance of the Note, Convertible Note and the Warrant shall be used: (a)
to provide working capital and funds for capital expenditures and general corporate purposes for the Company; and (b) to pay liabilities,
fees, costs and expenses, including those incurred in the execution and delivery of this Subscription Agreement and the Other Investor
Agreements.

 

7. Payment
and Prepayment of the Note and Payment of the Convertible Note.

 

(a) $3,000,000
Note.

 

(i) Principal
and Interest Payments.

 

A. Prepayment.
Principal and interest on the Note may be prepaid in whole or in part at any time prior to the Maturity Date at the election of
the Company (a “Prepayment”) upon at least two (2) days’ prior written Notice to the Investor.
Full or partial Prepayments shall be allowed without any prepayment fee or penalty provided that by the time that the Note is paid
in full, the Company shall have paid to the Investor a minimum interest payment of one (1) year’s interest.

 

B. Principal
and interest on the Note shall be due and payable as follows:

 

(1) Outstanding
principal shall be due and payable on the Maturity Date, unless the Company has made a Prepayment of the full amount of principal
and accrued interest on the Note to the Investor.

 

(2) Accrued
interest (minimum of one (1) year’s interest) shall be due and payable in arrears on the Maturity Date, unless the Company
has made a Prepayment of the full amount of principal and accrued interest on the Note. Notwithstanding any provision to the contrary
in this Subscription Agreement or any of the Other Investor Agreements, the Company shall not be required to pay, and the Investor
shall not be permitted to contract for, take, reserve, charge or receive, any compensation that constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

 

C. In
the event the Company has made a partial Prepayment to the Investor, the amount of principal and interest (minimum of one year’s
interest) on the Note due to the Investor on the Maturity Date shall be offset by any Prepayment amount.

 

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(b) $500,000
Note.

 

(i) Principal
and Interest Payments.

 

A. Principal
and interest on the Convertible Note shall be due and payable as follows, unless the Investor has exercised its Conversion Option
(defined below):

 

(1) Outstanding
principal shall be due and payable on the Second Maturity Date.

 

(2) Accrued
interest shall be due and payable in arrears on the Second Maturity Date. Notwithstanding any provision to the contrary in this
Subscription Agreement or any of the Other Investor Agreements, the Company shall not be required to pay, and the Investor shall
not be permitted to contract for, take, reserve, charge or receive, any compensation that constitutes interest under applicable
law in excess of the maximum amount of interest permitted by law.

 

(ii) Conversion
of Convertible Note.

 

A. Conversion
Rate and Price. The Convertible Note may be converted, at the sole election of the Investor, into the number of shares of common
stock of the Company as determined by dividing the principal amount of the Convertible Note plus accrued interest by $4.25 (“Conversion
Shares”).

 

B. Conversion
Event. The Convertible Note may be converted, at the option of the Investor into Conversion Shares (“Conversion
Option”) upon providing written notice to the Company that Investor elects to exercise its Conversion Option.

 

C. Financing
Agreements. Investor acknowledges that the conversion of the Convertible Note into common stock pursuant to Section 7(b) may
require such Investor’s execution of certain agreements relating to the purchase and sale of the common stock, as well as
registration rights, (collectively, the “Financing Agreements”). Investor agrees to execute all of the
Financing Agreements in connection with Investor’s exercise of the Conversion Option.

 

(c) Direct
Payment. The Company will pay all sums becoming due hereunder on the Note and Convertible Note to the Investor by same day
wire transfer of immediately available lawful money of the United States of America to an account designated in writing by the
Investor to Company. All payments by the Company shall be made without offset, counterclaim, or deduction of any kind.

 

(d) Payments
Payable on Business Days. Payments of all amounts due hereunder, under the Note or Convertible Note shall be made on a Business
Day. Any payment due on a day that is not a Business Day shall be made on the immediately preceding Business Day, together with
all interest (if any) accrued to and including such preceding Business Day.

 

8. Form
of Note and Convertible Note; Replacement.

 

(a) Form
of Note. The Note will be substantially in the form attached hereto as Exhibit B, in each case appropriately completed
to show the name of the Investor and the principal amount of the Note.

 

(b) Form
of Convertible Note. The Convertible Note will be substantially in the form attached hereto as Exhibit F.

 

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(c) Replacement
of Note or Convertible Note. Upon receipt of evidence satisfactory to the Company of the loss, theft, mutilation, or destruction
of the Note or Convertible Note and, in the case of mutilation, upon surrender and cancellation of such mutilated Note or Convertible
Note, the Company, without charge to the Investor, will make and deliver a new note of like tenor in lieu of such lost, stolen,
destroyed or mutilated Note or Convertible Note. The affidavit of an authorized officer of the Investor setting forth the fact
of loss, theft or destruction of the Note or Convertible Note shall be accepted as satisfactory evidence thereof, and no further
indemnity shall be required as a condition to the execution and delivery of a new Note or Convertible Note, as applicable. In the
event the Note or Convertible Note is replaced under this Section 8, any reference in this Subscription Agreement to the “Note”
or “Convertible Note” shall apply equally to the replacement note, as applicable.

 

(d) Withdrawals.
Except as provided in this Subscription Agreement, the Investor may not request redemption of the Note or Convertible Note, or
demand any return of capital from the Company.

 

9. The
offering and sale of the Shares and Warrant (the “Offering”) are being made pursuant to (i) an effective
Registration Statement on Form S-3, File No. 333-227683 (the “Registration Statement”) filed by the Company
with the Securities and Exchange Commission (the “SEC”) (including the prospectus contained therein)
and (2) a prospectus supplement dated December 2018, and any other prospectus supplement we may file with the SEC, containing certain
supplemental information regarding the Shares, Warrant and Note and terms of the Offering that has been or will be filed with the
SEC and made available to the Investor; provided, however, that the Company has no intention to list the Warrant
or Note on an exchange or any trading market and does not expect a trading market to develop for the Warrant or Note. The Note
is being issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.

 

10. The
Company and the Investor agree that (a) at the Closing (as defined in Section 3(a)(ii) of Annex A), the Investor will purchase
from the Company and the Company will issue and sell to the Investor the Shares, Warrant and Note for the Aggregate Purchase Price
and (b) at the Second Closing (as defined in Section 3(a)(iv) of Annex A), the Investor will purchase from the Company and the
Company will issue and sell to the Investor the Convertible Note. The Shares, Warrant, Note and Convertible Note shall be purchased
pursuant to the Terms and Conditions for Purchase of Securities attached hereto as Annex A and incorporated herein by this
reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by any placement
agent and that there is no minimum offering amount.

 

11. The
Shares purchased by the Investor and all shares issued pursuant to exercise of the Warrant and/or Conversion Option, if any, will
be registered directly on the Company’s records in book-entry form through the facilities of The Depository Trust Company’s
Direct Registration System (DRS) in accordance with the instructions set forth on the signature page attached hereto.

 

UPON THE CLOSING, THE INVESTOR SHALL REMIT BY WIRE TRANSFER
THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE TO THE ACCOUNT PREVIOUSLY PROVIDED TO THE INVESTOR BY THE COMPANY.

 

UPON THE SECOND CLOSING, THE INVESTOR SHALL REMIT BY WIRE
TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE CONVERTIBLE NOTE PURCHASE PRICE TO THE ACCOUNT PREVIOUSLY PROVIDED TO THE INVESTOR BY
THE COMPANY.

 

12. The
Investor represents that (a) it has had no position, office or other material relationship within the past three years with the
Company or persons known to it to be affiliates of the Company, (b) it is not a member of the Financial Industry Regulatory Authority,
Inc. (“FINRA”) or an Associated Person (as such term is defined under the FINRA’s NASD Membership
and Registration Rules Section 1011) as of the Closing, and (c) neither the Investor nor any group of Investors (as identified
in a public filing made with the SEC) of which the Investor is a part in connection with the Offering, acquired, or obtained the
right to acquire, 20% or more of the Company’s common stock (or securities convertible into or exercisable for common stock)
or the voting power of the Company on a post-transaction basis.

 

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13. The
Investor represents that it has had access to (i) the prospectus, dated October 17, 2018, which is a part of the Company’s
Registration Statement, and the documents incorporated by reference therein, (ii) the prospectus supplement dated December 2018,
and the documents incorporated by reference therein, and (iii) any additional prospectus supplement the Company has filed in connection
with the Offering with the SEC (collectively, the “Disclosure Package”), prior to or in connection with
the receipt of this Subscription Agreement.

 

14. The
Investor acknowledges that it has received such information, as it deems necessary in order to make an investment decision with
respect to the Shares, Warrant, Note and Convertible Note. The Investor understands that it and its professional advisor(s), if
any, have the right to ask questions of and receive answers from the Company and its officers and directors, and to obtain such
information concerning the terms and conditions of the offering of the Shares, Warrant, Note and Convertible Note to the extent
that the Company possesses the same or could acquire it without unreasonable effort or expense, as the Investor, and its professional
advisor(s) deem necessary to verify the accuracy of the information referred to in the Disclosure Package pursuant to which the
Shares, Warrant, Note and Convertible Note are being offered. The Investor represents and agrees that it and its professional advisor(s),
if any, have asked such questions, received such answers and obtained such information as the Investor and its professional advisor(s),
if any, deem necessary to verify the accuracy (a) of the information referred to in the Disclosure Package and (b) of any other
information that the Investor and its professional advisor(s), if any, deem relevant to making an investment decision with respect
to the Shares, Warrant, Note and Convertible Note.

 

15. The
Investor acknowledges that ROTH Capital Partners (“ROTH”) has acted as a financial advisor for the Company
and Investor in connection with the issuance of the Shares, Warrant and Note and consents to ROTH’s actions in this regard
and hereby waives any and all claims, actions, liabilities, damages or demands it may have against ROTH in connection with any
alleged conflict of interest arising from ROTH’s engagement as financial advisor.

 

16. Assignment
– Neither party may assign any of its rights or delegate any of its obligations hereunder without the prior written consent
of the other party, which consent shall not be unreasonably withheld, conditioned, or delayed.

 

17. Definitions
– Capitalized words not otherwise defined in this Subscription Agreement will have the meanings set forth in this Section
17:

 

(a) “Aggregate
Purchase Price” has the meaning ascribed to it in Section 1.

 

(b) “Amendment
Legal Fees” has the meaning ascribed to it in Section 16 of Annex A.

 

(c) “Business
Day” means each day of the week except Saturdays, Sundays, and days on which banking institutions are authorized
by law to close in Oregon.

 

(d) “Closing”
has the meaning ascribed to it in Section 3(a)(ii) of Annex A.

 

(e) “Closing
Date” has the meaning ascribed to it in Section 3(a)(iii) of Annex A.

 

(f) “Closing
Fees” has the meaning ascribed to it in Section 16 of Annex A.

 

(g) “Conversion
Option” has the meaning ascribed to it in Section 7(b)(ii)B.

 

(h) “Conversion
Shares” has the meaning ascribed to it in Section 7(b)(ii)A.

 

(i) “Convertible
Note” has the meaning ascribed to it in the recitals hereto.

 

(j) “Convertible
Note Purchase Price” has the meaning ascribed to it in Section 4(b)(i).

 

(k) “Disclosure
Package” has the meaning ascribed to it in Section 13.

 

(l) “Due
Diligence Fees” has the meaning ascribed to it in Section 16 of Annex A.

 

(m) “Economic
Default” has the meaning ascribed to it in Section 4(a)(i) of Annex A.

 

    5

     

    

 

(n) “Event
of Default” has the meaning ascribed to it in Section 4(a) of Annex A.

 

(o) “Exercise
Period” has the meaning ascribed to it in Section 3.

 

(p) “Financing
Agreement” has the meaning ascribed to it in Section 7(b)(ii)C.

 

(q) “Florida
Keys” has the meaning ascribed to it in Section 6(l) of Annex A.

 

(r) “Governmental
Authority” means the government of any nation or any political subdivision thereof, whether at the national, state,
territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of,
or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank).

 

(s) “Intellectual
Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service
marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing;
(ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential know-how;
(iv) patents and patent applications; (v) internet domain name registrations; and (vi) other intellectual property and related
proprietary rights, interests and protections

 

(t) “IP
Security Agreement” has the meaning ascribed to it in Section 4(a)(iii).

 

(u) “Lease
Collateral Assignment” has the meaning ascribed to it in Section 4(a)(iii).

 

(v) “Legal
Fees” has the meaning ascribed to it in Section 16 of Annex A.

 

(w) "Material
Adverse Effect" means a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent),
operations, or condition (financial or otherwise) of the Company, (b) the validity or enforceability of the Subscription Agreement
or the Other Investor Agreements, (c) the perfection or priority of any lien purported to be created by any collateral document,
(d) the rights or remedies of the Investor under the Subscription Agreement or the Other Investor Agreement or (e) the ability
of the Company to perform any of its material obligations under the Subscription Agreement or the Other Investor Agreements.

 

(x) “Maturity
Date” means twelve (12) months from the Closing Date unless the Company elects the Maturity Date Extension Option
pursuant to Section 4(b), in which case the Maturity Date shall mean eighteen (18) months from the Closing Date.

 

(y) “Maturity
Date Extension Option” has the meaning attributed to it in Section 4(a)(ii).

 

(z) “Non-Economic
Default” has the meaning attributed to it in Section 4(a)(ii).

 

(aa) “Note” has
the meaning attributed to it in Section 4(a)(i).

 

(bb) “Note Purchase Price”
has the meaning ascribed to it in Section 4(a)(i).

 

(cc) “Notice”
has the meaning attributed to it in Section 8 of Annex A.

 

(dd) “Offering”
has the meaning ascribed to it in Section 9.

 

(ee) “Original Subscription
Agreement” has the meaning ascribed to it in the recitals hereto.

 

(ff) “Other Investor Agreements”
means the Note, the Convertible Note, the Security Agreement, the IP Security Agreement, the Warrant, the Lease Collateral Assignment
and all other agreements, instruments and documents (including, without limitation, notes, guarantees, powers of attorney, consents,
assignments, contracts, notices, subordination agreements and all other written matter), and all renewals, modifications and extensions
thereof, whether heretofore, now or hereafter executed by or on behalf of the Company, any guarantor or any other Person and delivered
to and for the benefit of the Investor.

 

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(gg) “Permitted Senior Obligations”
means : means the obligations of the Company to the companies listed below, as secured by UCC Financing Statements listed below
filed on the dates listed below:

 

	Secured Party	 	UCC Number	 	Date Filed
	HYG Financial Services, Inc. (Lessor)	 	91396133	 	12/7/2017
	Intech Funding Corp	 	91429051	 	1/11/2018
	Crestmark Equipment Finance, Inc.	 	91457717	 	2/13/2018
	m2 Lease Funds LLC (Seller)	 	91464987	 	2/21/2018
	Midland States Bank (Lessor)	 	91491268	 	3/20/2018
	PNC Equipment Finance, LLC	 	91503323	 	3/30/2018
	International Financial Services Corporation	 	91514613	 	4/11/2018
	International Financial Services Corporation	 	91514620	 	4/11/2018
	Sumitomo Mitsui Finance & Leasing Co., Ltd.	 	91547292	 	5/14/2018
	Bryn Mawr Equipment Finance, INC. (Lessor)	 	91564120	 	5/30/2018
	Sumitimo Mitsui Finance & Leasing CO., Ltd.	 	91580426	 	6/18/2018
	Bank of the West	 	91709514	 	10/29/2018
	Bank of the West	 	91803271	 	2/14/2019

 

(hh) “Person”
means any individual, sole proprietorship, corporation, business trust, unincorporated organization, association, limited liability
company, partnership, joint venture, governmental authority (whether a national, federal, state, county, municipality or otherwise,
and shall include without limitation any instrumentality, division, agency, body or department thereof), or other entity.

 

(ii) “Prepayment”
has the meaning attributed to it in Section 7(a)(1)A.

 

(jj)  “Registration Statement”
has the meaning ascribed to it in Section 9.

 

(kk) “ROTH” has
the meaning ascribed to it in Section 15.

 

(ll) “Second Closing”
has the meaning ascribed to it in Section 3(a)(iv) of Annex A.

 

(mm) “Second Closing Date”
has the meaning ascribed to it in Section 3(a)(v) of Annex A.

 

(nn) “Second Maturity Date”
has the meaning ascribed to it in Section 4(b)(i).

 

(oo) “Security
Agreement” has the meaning attributed to it in Section 4(a)(iii).

 

(pp) “Shares”
has the meaning attributed to it in Section 2.

 

(qq) “Share Purchase Price”
has the meaning ascribed to it in Section 2.

 

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(rr) “Share Transfer Date”
has the meaning ascribed to it in Section 3(a)(i) of Annex A.

 

(ss) “Subscription Agreement”
has the meaning ascribed to it in Section 1.

 

(tt) “Transfer Agent”
has the meaning ascribed to it in Section 3(a)(i) of Annex A.

 

(uu) “Warrant”
has the meaning ascribed to it in Section 3.

 

(vv) “Warrant Exercise Price”
has the meaning ascribed to it in Section 3.

 

[SIGNATURE PAGE FOLLOWS]

 

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	Number of Shares:	 	 	500,000	 
	Warrant:	 	 	942,857 shares	 
	Note Amount:	 	$	3,000,000	 
	Aggregate Purchase Price:	 	$	4,500,000	 

 

DRS ELECTRONIC BOOK ENTRY CONFIRMATION Delivery Instructions:

Name in which Shares should be issued: FOD Capital, LLC

Tax ID Number for the Investor, if applicable: ______________________

DRS Account Number for the Investor, if applicable: ______________________

Address for Shareholder Communications:

Street: 7009 Shrimp Road, Suite #4

City/State/Zip: Key West, FL 33040________________________________

Attention: Michael T. Raymond, Manager

Telephone No.: (248)433-7273

 

Please confirm that the foregoing correctly
sets forth the agreement between us by signing in the space provided below for that purpose.

 

	 	Dated as of: September 12, 2019 
	 	 	 
	 	INVESTOR: FOD Capital, LLC
	 	 	 
	 	By:	 
	 	 	 
	 	Print Name: 	Michael T. Raymond
	 	 	 
	 	Title:	Manager

 

Agreed and Accepted

this 12th day of September, 2019:

 

	ARCIMOTO, INC.	 
	 	 	 
	By:	 	 
	 	Name:	Mark Frohnmayer	 
	 	Title:	CEO	 

 

Signature Page to Subscription AgreementExhibit 10.1

 

Form of Convertible Note

 

CONVERTIBLE
PROMISSORY NOTE

 

	$500,000	Date of Issuance: September 12, 2019

 

FOR VALUE RECEIVED,
Arcimoto, Inc.., an Oregon corporation (the “Company”), hereby promises to pay to the order of FOD
Capital LLC, a Florida limited liability company (together with its permitted successors and assigns, hereinafter referred
to as the “Holder”), the principal sum of $500,000 together with interest thereon from the date of this note
(the “Convertible Note”). Interest will accrue at a rate of ten (10%) percent per annum, compounded monthly.
Interest shall accrue and be payable to Holder from the date of the date of this Convertible Note until the earlier of (a) the
Second Maturity Date or (b) the conversion, solely at Holder’s option, of the principal and accrued interest of the Convertible
Note into the Company’s common stock at a conversion price per share of $4.25. This Convertible Note is issued pursuant to
the Subscription Agreement between the Company and the Holder of even date herewith (“Subscription Agreement”),
and capitalized terms not defined herein will have the meanings set forth in the Subscription Agreement. This Convertible Note
is secured pursuant to the terms of a Security Agreement, a Patent Security Agreement and a Lease Collateral Assignment between
the Company and the Holder dated as of the Closing Date.

 

1. Payment.
All payments will be made in lawful money of the United States of America by same day wire transfer of immediately available funds
to an account designated by Holder in writing to the Company at least five (5) Business Days prior to the date of any payment.
Payment will be credited first to accrued interest due and payable, with any remainder applied to principal. The Convertible Note
may be prepaid in whole or in part prior to the Maturity Date (which includes the closing of a Qualified Subsequent Financing),
at any time at the election of the Company, upon at least seven (7) days prior written notice to the Holder.

 

2. Security.
This Convertible Note is a general secured obligation of the Company, as set forth in the Security Agreement, Patent Security Agreement
and Lease Collateral Assignment.

 

3. Conversion
of the Convertible Note. This Convertible Note may be converted into Conversion Shares in the following manner:

 

a. Conversion
Rate and Price. The Convertible Note may be converted, at the sole election of the Holder, into the number of shares of common
stock of the Company as determined by dividing the principal amount of the Convertible Note plus accrued interest by $4.25 (“Conversion
Shares”).

 

b. Conversion
Event. The Convertible Note may be converted, at the option of the Holder into Conversion Shares upon written notice to the
Company that Holder elects to exercise its Conversion Option.

 

c. Financing
Agreements. Holder acknowledges that the conversion of the Convertible Note into common stock pursuant to Section 3(b) may
require such Holder’s execution of certain agreements relating to the purchase and sale of the common stock, as well as registration
rights, (collectively, the “Financing Agreements”). Holder agrees to execute all of the Financing Agreements
in connection with Holder’s exercise of the Conversion Option.

 

     

     

    

 

4. Events
of Default. a. The occurrence of any one or more of the following events shall constitute an “Event of Default”:

 

i. The
Company shall fail to perform or observe any material agreement, covenant, term or condition contained in the Subscription Agreement,
the Note, the Convertible Note or the Warrant, including, but not limited to, if the Company shall fail to pay, when due, any principal,
interest, or other sums payable under either the Note, the Convertible Note or the Subscription Agreement and/or the Company fails
to provide Holder with franchise rights pursuant to Section 6(l) of Annex A to the Subscription Agreement (an “Economic
Default”); or

 

ii. The
Company: (i) becomes insolvent; (ii) is generally unable to pay, or fails to pay, its debts as they become due; (iii) files, or
has filed against it, a petition for voluntary or involuntary bankruptcy or pursuant to any other insolvency law; (iv) makes or
seeks to make a general assignment for the benefit of its creditors; (v) applies for, or consents to, the appointment of a trustee,
receiver or custodian for a substantial part of its property or business, or (vi) if there is an inaccuracy in or breach of any
of the representations, warranties or covenants of the Company contained in the Subscription Agreement or any of the Other Investor
Agreements. Any Event of Default described under this Section 4, the Note, the Convertible Note, the Security Agreement, the IP
Security Agreement, or the Lease Collateral Assignment, other than an Economic Default, shall be referred to as a “Non-Economic
Default.”

 

b. Remedies
of the Holder upon Occurrence of Event of Default. If any Event of Default described in Section 4(a) occurs and continues for
a period of ten (10) days, in the case of an Economic Default, or thirty (30) days, in the case of a Non-Economic Default, after
written Notice thereof given by the Holder to the Company, then the Holder shall elect in writing within three (3) days to (i)
either: (a) declare the Note immediately due and payable; or (b) continue to hold the Note with the rate of interest increased
by 8% (from 10% to 18%) for so long as the Event of Default shall remain uncured and (ii) either: (a) declare the Convertible Note
immediately due and payable; or (b) continue to hold the Convertible Note with the rate of interest increased by 8% (from 10% to
18%) for so long as the Event of Default shall remain uncured.

 

5. Amendments
and Waivers; Resolutions of Dispute; Notice. The amendment or waiver of any term of this Convertible Note, the resolution
of any controversy or claim arising out of or relating to this Convertible Note, and the provision of notice among the Company
and the Holder will be governed by the terms of the Subscription Agreement.

 

6. Successors
and Assigns. This Convertible Note applies to, inures to the benefit of, and binds the respective successors and assigns
of the parties hereto; provided, however, that the Company may not assign its obligations under this Convertible Note without the
written consent of the Electing Holders. Any transfer of this Convertible Note may be affected only pursuant to the Subscription
Agreement and by surrender of this Convertible Note to the Company and reissuance of a new note to the transferee. The Holder and
any subsequent holder of this Convertible Note receives this Convertible Note subject to the foregoing terms and conditions, and
agrees to comply with the foregoing terms and conditions for the benefit of the Company and any other purchasers (or their respective
successors or assigns).

 

    2

     

    

 

7. Officers
and Directors not Liable. In no event will any officer or director of the Company be liable for any amounts due and payable
pursuant to this Convertible Note.

 

8. Limitation
on Interest. In no event will any interest charged, collected, or reserved under this Convertible Note exceed the maximum
rate then permitted by applicable law, and if any payment made by the Company under this Convertible Note exceeds such maximum
rate, then such excess sum will be credited by the Holders as a payment of principal.

 

9. Governing
Law. This Convertible Note will be governed by and construed in accordance with the internal laws of the State of Oregon
without giving effect to any choice or conflict of law provision or rule (whether of the State of Oregon or any other jurisdiction).

 

10. Approval.
The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved the Company’s
execution of this Convertible Note based upon a reasonable belief that the principal provided hereunder is appropriate for the
Company after reasonable inquiry concerning the Company’s financing objectives and financial situation. In addition, the
Company hereby represents that it intends to use the principal of this Convertible Note primarily for the operations of its business,
and not for any personal, family, or household purpose.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY
SET FORTH HEREIN, THIS CONVERTIBLE NOTE AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY AND PAYMENTS HEREUNDER ARE SUBORDINATE
AND SUBJECT TO ALL PROVISIONS OF THE OF THE SUBSCRIPTION AGREEMENT, OF WHICH SECTION 7(b) IS INCORPORATED HEREIN BY THIS REFERENCE,
AND TO THE EXTENT OF ANY CONFLICT OR INCONSISTENCY, THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT SHALL CONTROL OVER THE TERMS OF
THIS CONVERTIBLE NOTE.

 

[Signature Page Follows]

 

    3

     

    

 

The undersigned expressly
waives any presentment, demand, protest, notice of default, notice of intention to accelerate, notice of acceleration or notice
of any other kind except as expressly provided in the Subscription Agreement.

 

	 	Arcimoto, Inc.
	 	 	 
	 	By:	 
	 	Name:	Mark Frohmayer
	 	Title:	CEO

 

	AGREED AND ACKNOWLEDGED:	 
	 	 
	PAYEE:	 
	 	 
	FOD Capital LLC	 
	 	 	 
	By:	 	 
	Name:	Michael T. Raymond	 
	Title:	Manager	 

 

[Signature Page – Convertible Note]

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