Document:

Exhibit 4.1

       

      

      
        Execution Copy

      

       

      

      BA CREDIT CARD TRUST

       

      as Issuer

       

      CLASS A(2022-2) TERMS DOCUMENT

       

      dated as of November 23, 2022

       

      to

       

      THIRD AMENDED AND RESTATED BASERIES INDENTURE SUPPLEMENT

       

      dated as of December 17, 2015

       

      to

       

      FOURTH AMENDED AND RESTATED INDENTURE

       

      dated as of December 17, 2015

       

      THE BANK OF NEW YORK MELLON

       

      as Indenture Trustee

       

      

      
        
          

      

      
      TABLE OF CONTENTS

       

      	 	 	 	 	
              
                Page

              

            
	 	 	 	 	 
	
              ARTICLE I

            	
              Definitions And Other Provisions Of General Application

            	
              1

            
	 	 	 
	 	
              Section  1.01.

            	 	
              Definitions

            	
              1

            
	 	
              Section 1.02.

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

            	
              5

            
	 	
              Section 1.03.

            	 	
              Counterparts

            	
              6

            
	 	
              Section 1.04.

            	 	
              Ratification of Indenture and Indenture Supplement

            	
              6

            
	 	 	 	 	 
	
              ARTICLE II

            	
              The Class A(2022-2) Notes

            	
              7

            
	 	 	 
	 	
              Section 2.01.

            	 	
              Creation and Designation

            	
              7

            
	 	
              Section 2.02.

            	 	
              Specification of Required Subordinated Amount and other Terms

            	
              7

            
	 	
              Section 2.03.

            	 	
              Interest Payment

            	
              7

            
	 	
              Section 2.04.

            	 	
              Payments of Interest and Principal

            	
              8

            
	 	
              Section 2.05.

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

            	
              8

            
	 	
              Section 2.06.

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

            	
              8

            
	 	
              Section 2.07.

            	 	
              Targeted Deposits to the Accumulation Reserve Account

            	
              8

            
	 	 	 	 	 
	
              ARTICLE III

            	
              Representations and Warranties

            	
              9

            
	 	 	 
	 	
              Section 3.01.

            	 	
              Issuer’s Representations and Warranties

            	
              9

            

       

      
        - i -

        
          

      

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

       

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

       

      ARTICLE I

        

      

      Definitions and Other Provisions of General Application

       

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

       

      
        	 	
                (1)

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

              

      

       

      
        	 	
                (2)

              	
                all other terms used herein which are defined in the Third Amended and Restated BAseries Indenture Supplement, dated as of December 17, 2015 (as modified, amended or supplemented from time to time, the “Indenture

                    Supplement”), between the Issuer and the Indenture Trustee, or the Fourth Amended and Restated Indenture, dated as of December 17, 2015 (as modified, amended or supplemented from time to time, the “Indenture”), between the
                  Issuer and the Indenture Trustee, as acknowledged and accepted by BANA, as Servicer, either directly or by reference therein, have the meanings assigned to them therein;

              

      

       

      
        	 	
                (3)

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

              

      

       

      
        	 	
                (4)

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

              

      

       

      
        	 	
                (5)

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

              

      

       

      
        - 1 -

        
          

      

      
        	 	
                (6)

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

              

      

       

      
        	 	
                (7)

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

              

      

       

      
        	 	
                (8)

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

              

      

       

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

       

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

       

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

       

      

      
        - 2 -

        
          

      

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

       

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

       

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

       

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

       

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

       

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

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

       

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

       

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

       

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

       

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

       

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

       

      “Issuance Date” means November 23, 2022.

       

      “Legal Maturity Date” means April 17, 2028.

       

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

       

      

      
        - 3 -

        
          

      

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      

      
        - 4 -

        
          

      

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      

      
        - 5 -

        
          

      

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

       

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

       

      [END OF ARTICLE I]

       

      

      
        - 6 -

        
          

      

       ARTICLE II

       

      The Class A(2022-2) Notes

       

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

       

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

       

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

       

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

       

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

       

      Section 2.03.         Interest Payment.

       

      

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

        

         

        

      

      
        - 7 -

        
          

      

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      [END OF ARTICLE II]

       

      

      
        - 8 -

        
          

      

       ARTICLE III

       

      Representations and Warranties

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      [END OF ARTICLE III]

      

      

      
        - 9 -

        
          

        

      

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

       

      

      	
              

              

            	BA CREDIT CARD TRUST, 

            
	
              

              

            	by BA CREDIT CARD FUNDING, LLC,
	
              

              

            	as Beneficiary and not in its individual capacity
	 	 	 
	 	By: 	/s/ Keith W. Landis
	 	 	
              Name:  Keith W. Landis

            
	 	 	
              Title:  CEO & President

            

       

      

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

          

        

        
          

        

      

      	
              

              

            	THE BANK OF NEW YORK MELLON, as Indenture Trustee
	
              

              

            	and not in its individual capacity
	 	 	 
	 	By:	/s/ Leslie Morales
	 	 	
              Name:  Leslie Morales

            
	 	 	
              Title:  Vice President

            

      

      

      

      

      [Signature Page to the Class A(2022-2) Terms Document]Exhibit 10.1

      

       

      

      VENUS CONCEPT INC.

       

      STOCK OPTION GRANT NOTICE AND STOCK OPTION AGREEMENT

       

      Venus Concept Inc. (the “Company”) hereby grants to the participant set forth below (“Participant”),

        an Option to purchase the number of shares of the Company’s Common Stock (referred to herein as “Shares”) set forth below. This grant is being made outside of the Company’s 2019 Incentive
        Award Plan (the “Plan”) as an employment inducement award under Nasdaq Listing Rule 5635(c)(4).  Although this grant is not being made under the Plan, the terms of the Option will be
        governed by both the Grant Notice, the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the terms of the Plan, including the administrative
        provisions of the Plan. For the avoidance of doubt, although the Option is governed by the same terms and conditions of the Plan, the Shares issuable under the Option are not being issued under the Plan.

       

      	
              Grantee’s Name and Address:

            	
              Rajiv De Silva

            
	 	
              [reserved]

            
	 	
              
                [reserved]

              

              
                [reserved]

              

            

       

      

      	
              Award Number

            	
               I001541& N001541

            	 
	 	 	 
	
              Date of Award

            	
              October 2, 2022

            	 
	 	 	 
	
              Vesting Commencement Date

            	
              October 2, 2022

            	 
	 	 	 
	
              Exercise Price per Share

            	
              $0.44

            	 
	 	 	 
	
              Total Number of Shares Subject

              to the Option (the “Shares”), subject to adjustment as provided in Section 14.2 of the Plan

            	
               

              

              3,300,000

            	 
	 	 	 
	 	 	 
	
              Type of Option:

            	
              Non-Qualified Stock Option

            	 
	 	 	 
	
              Expiration Date:

            	
               October 2, 2032

            	 
	 	 	 
	
              Post-Termination Exercise Period:

            	
              Three (3) Months, subject to Section 2.3(b) of the Option Agreement

            	 

       

      

      
        
          

      

      
      Vesting Schedule:

       

      The options will vest on the following schedule:  (i) 25% on the twelfth (12th) month anniversary from start date, and (ii) the remaining balance of 75% will vest quarterly in twelve (12) equal installment over the following 3 years.

       

      For purposes of the foregoing schedule, any fractional share for any monthly anniversary shall be rounded down to the next whole share, except for the last monthly anniversary set forth above which shall include the
        balance of unvested Shares subject to the Award.  The foregoing vesting schedule is subject to the Change in Control provisions of Section 14.2 of the Plan.

       

      By his or her signature and the Company’s signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Stock Option Agreement and this Grant Notice. Participant has reviewed the Stock
        Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Stock Option Agreement
        and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator of the Plan upon any questions arising under the Plan or the Option.

       

      	
              VENUS CONCEPT INC.:

            	 	
              PARTICIPANT:

            
	

            	 

            	 	 	 
	
              By:

            	/s/ Domenic Della Penna	 	

            	

            
	 	 	 	
              By:

            	/s/ Rajiv De Silva
	
              Name:

            	
              Domenic Della Penna

              

            	 	
              Name:

            	
              Rajiv De Silva

              

            
	
              Title:

            	
              Chief Financial Officer

              

            	 	 	 

      

      

      
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      EXHIBIT A

       

      TO STOCK OPTION GRANT NOTICE

       

      STOCK OPTION AGREEMENT

       

      Pursuant to the Stock Option Grant Notice (“Grant Notice”) to which this Stock Option Agreement (this “Agreement”)

        is attached, Venus Concept Inc. (the “Company”) has granted to Participant an Option to purchase the number of Shares indicated in the Grant Notice.  This grant is being made outside of
        the Company’s 2019 Incentive Award Plan (the “Plan”) as an employment inducement award under Nasdaq Listing Rule 5635(c)(4).  Although this grant is not being made under the Plan, the
        terms of the Option will be governed by both the Grant Notice, this Agreement and the terms of the Plan, including the administrative provisions of the Plan. For the avoidance of doubt, although the Option is governed by the same terms and
        conditions of the Plan, the Shares issuable under the Option are not being issued under the Plan

       

      ARTICLE I

       

      GENERAL

       

      1.1          Defined Terms.  Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

       

      1.2          Incorporation of Terms of Plan.  The Option is subject to the terms and conditions of the Plan which are incorporated herein by reference. In the event of a conflict between the terms of the
        Agreement and the Plan, the terms of the Plan shall control.

       

      1.3          Grant of Option.  In consideration of Participant’s past and/or continued employment with or service to the Company or a parent or subsidiary and for other good and valuable consideration,
        effective as of the grant date set forth in the Grant Notice (the “Grant Date”), the Company irrevocably grants to Participant an Option to purchase any part or all of an aggregate of the
        number of Shares set forth in the Grant Notice, subject to adjustment as provided in Section 14.2 of the Plan, upon the terms and conditions set forth in the Plan and this Agreement.  Unless designated as a Non-Qualified Stock Option in the Grant
        Notice, the Option shall be an Incentive Stock Option to the maximum extent permitted by law.

       

      1.4        Effect of Agreement on Rights of Company and Participant.  This Agreement does not confer any right on the Participant to continue in the employ of the Company, any Subsidiary or affiliate or
        interfere in any way with the rights of the Company, any Subsidiary or affiliate to terminate the employment of the Participant.

       

      1.5        Acceptance of Option and Acknowledgments.  The Participant hereby (a) accepts the Option granted under the Plan, (b) acknowledges that he has received, read and understood the Plan and (c) agrees
        to be bound by the terms and provisions of the Plan, as amended from time to time.

      

      

      ARTICLE II

       

      PERIOD OF EXERCISABILITY

       

      2.1          Vesting; Commencement of Exercisability.

       

      (a)          Subject to Sections 2.1(b) and 2.3 below, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the vesting schedule in the Grant Notice
        (the “Vesting Schedule”).

       

      (b)         Unless otherwise determined by the Administrator, any portion of the Option that has not become vested and exercisable on or prior to the date of Participant’s Termination of Service
        shall be forfeited on the date of Participant’s Termination of Service and shall not thereafter become vested or exercisable.

       

      
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      2.2        Duration of Exercisability.  The installments provided for in the Vesting Schedule are cumulative. Each such installment which becomes vested and exercisable pursuant to the Vesting Schedule shall
        remain vested and exercisable until it becomes unexercisable under Section 2.3 below or pursuant to the terms of the Plan. Once the Option becomes unexercisable, it shall be forfeited immediately.

       

      2.3          Expiration of Option.  The Option may not be exercised to any extent by anyone after the first to occur of the following events:

       

      (a)          The Expiration Date set forth in the Grant Notice;

       

      (b)         The expiration of three (3) months following the date of Participant’s Termination of Service, unless such Termination of Service occurs by reason of Participant’s death, Disability or
        Termination of Service for Cause;

       

      (c)          The expiration of one (1) year following the date of Participant’s Termination of Service by reason of Participant’s death or Disability; or

       

      (d)          The date of Participant’s Termination of Service for Cause.

       

      Participant acknowledges that an Incentive Stock Option exercised more than three months after Participant’s Termination of Service as an Employee, other than by reason of death or Disability, will be taxed as a
        Non-Qualified Stock Option.

       

      2.4         Special Tax Consequences.  Participant acknowledges that, to the extent that the aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to which
        Incentive Stock Options, including the Option, are first exercisable for the first time by Participant in any calendar year exceeds $100,000 (or such other limitation as imposed by Section 422(d) of the Code), the Option and such other options
        shall be treated as not qualifying under Section 422 of the Code but rather shall be considered Non-Qualified Stock Options. Participant further acknowledges that the rule set forth in the preceding sentence shall be applied by taking Options and
        other “incentive stock options” into account in the order in which they were granted.

       

      ARTICLE III

       

      EXERCISE OF OPTION

       

      3.1         Person Eligible to Exercise.  Except may be otherwise provided by the Administrator, during the lifetime of Participant, only Participant may exercise the Option or any portion thereof.  After the
        death of Participant, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 2.3 above, be exercised by Participant’s personal representative or by any person empowered to do so under the
        deceased Participant’s will or under the then applicable laws of descent and distribution.

       

      3.2          Partial Exercise.  Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or
        portion thereof becomes unexercisable under Section 2.3 above.

       

      3.3        Manner of Exercise.  The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary of the Company or the Secretary’s office, or such other place as may be
        determined by the Administrator, of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 2.3 above:

       

      (a)         An exercise notice in substantially in the form as is prescribed by the Administrator (the “Exercise Notice”) in writing or
        electronic signed by Participant or any other person then entitled to exercise the Option or portion thereof, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the
        Administrator; and

       

      (b)          Subject to Article 6 of the Plan:

       

      (i)          Full payment (in cash or by check) for the Shares with respect to which the Option or portion thereof is exercised; or

       

      
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      (ii)         With the consent of the Administrator, any other method of payment permitted under Section 12.1 of the Plan; or

       

      (iii)        Subject to any applicable laws, any combination of the consideration allowed under the foregoing paragraphs; and

       

      (c)          The receipt by the Company of full payment for any applicable withholding tax in cash or by check or in the form of consideration permitted by the Administrator in Section 12.2 of the
        Plan; and

       

      (d)         In the event the Option or portion thereof shall be exercised pursuant to Section 3.1 above by any person or persons other than Participant, appropriate proof of the right of such
        person or persons to exercise the Option as provided in Section 6(c) of the Plan.

       

      3.4        Option Not Transferable.  The rights of the Participant under this Agreement are not subject to the claims of his or her creditors and may not (except as may otherwise be permitted by the Plan) be
        voluntarily or involuntarily transferred, assigned, alienated, accelerated or encumbered; provided, however, that the Option may, to the extent permitted under the Plan, be transferred by will or by the laws of descent and distribution upon the
        death of the Participant.  During the lifetime of the Participant, this Option may (except as may otherwise be permitted by the Plan) only be exercised by the Participant.

       

      3.5         Delivery or Recordation of Certificates; Shareholder Rights.  Subject to the foregoing, the Company shall deliver or record in book-entry or electronic form a certificate or certificates
        representing the number of Shares to which the person exercising the Option is entitled as soon as practicable after the date of exercise.  The Participant shall have no rights as a shareholder with respect to any shares subject to this Option
        until a certificate for the shares is issued to or recorded for the benefit of the Participant.  Except as otherwise provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date precedes the date of
        issuance of such certificate.  In no event shall dividends or dividend equivalents be paid with respect to this Option.

       

      ARTICLE IV

       

      OTHER PROVISIONS

       

      4.1        Further Conditions of Exercise.  The obligation of the Company to deliver shares on exercise of the Option shall be subject to the effectiveness of a Registration Statement under the Securities Act
        of 1933, as amended, with respect to such shares, if deemed necessary or appropriate by the Committee.  If, at the time of exercise of the Option, no such Registration Statement is in effect, the shares delivered on exercise of the Option may be
        made subject to such transfer restrictions (including the placing of an appropriate legend on the certificates restricting the transfer of the stock) as the Committee may deem necessary or appropriate to comply with applicable securities laws.  If
        such Registration Statement is not in effect prior to the exercise of the Option under this Agreement, the notice of exercise shall be accompanied by a representation or agreement of the person exercising the Option to the Company to the effect
        that such shares are being acquired for investment and not with a view to the resale or distribution of the shares, and such further documentation as may be required by the Company, unless the Company determines in its sole discretion that such
        representation, agreement or documentation is not necessary to comply with the Securities Act of 1933, as amended.

       

      4.2          Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company at its principal executive offices in care of the Secretary of the Company, and
        any notice to be given to Participant shall be addressed to Participant at the most recent address for Participant shown in the Company’s records. By a notice given pursuant to this Section 4.2, either party may hereafter designate a different
        address for notices to be given to that party. Any notice which is required to be given to Participant shall, if Participant is then deceased, be given to the person entitled to exercise his or her Option by written notice under this Section 4.2.
        Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal
        Service.

       

      
        A-3

        
          

      

      4.3          Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

       

      4.4        Governing Law; Severability.  This Agreement and the Exercise Notice shall be administered, interpreted and enforced under the laws of the State of Delaware, without regard to the conflicts of law
        principles thereof. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

       

      4.5        Conformity to Securities Laws.  Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all
        regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be
        exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
        regulations.

       

      4.6         Successors and Assigns.  The Company may assign any of its rights under this Agreement and the Exercise Notice to single or multiple assignees, and this Agreement shall inure to the benefit of the
        successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.

       

      4.7       Entire Agreement.  The Plan and this Agreement (including all Exhibits hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of
        the Company and Participant with respect to the subject matter hereof.

       

       

      

      
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