Document:

Exhibit

EXHIBIT 10.2

NOTICE OF GRANT OF PERFORMANCE SHARE UNITS

Pursuant to the terms and conditions of the Oasis Petroleum Inc. Amended and Restated 2010 Long Term Incentive Plan, as amended (the “Plan”), and the associated Performance Share Unit Agreement (the “Agreement”), you are hereby granted an award of Performance Share Units, whereby each Performance Share Unit that becomes earned, as determined by the Committee in its sole and absolute discretion, represents the right to receive one share of common stock of the Company, par value $0.001 per share (“Stock”), plus rights to certain Dividend Equivalents described in Section 3 of the Agreement, under the terms and conditions set forth below, in the Agreement, and in the Plan (the “Performance Share Units”).  Capitalized terms used but not defined herein shall have the meanings set forth in the Plan or the Agreement.

Date of Grant:                        [___________] (“Date of Grant”)

Number of Performance
Share Units:                           The number of shares of Stock that may be deliverable in respect of this Award may range from 0% to 200% of the number of Performance Share Units awarded to you as shown on the Morgan Stanley Smith Barney (MSSB) Benefits Access Online Award Acceptance website (the “Initial Performance Units”).

Performance Cycle:               The Performance Cycle applicable to the Performance Share Units begins on [___________] and ends on:

(a) [___________] (24 months) for one third of the Initial Performance Units,
(b) [___________] (36 months) for one third of the Initial Performance Share Units, and
(c) [___________] (48 months) for the final third of the Initial Performance Share Units

(each such period, a “Performance Cycle” and the period from [___________] (the Date of Grant) to [___________], the “Grant Cycle”).

Vesting Requirements:           Your right to receive Stock in respect of Performance Share Units is generally contingent, in whole or in part, upon (a) except as otherwise provided below, your continuous active service with the Company through the end of the applicable Performance Cycle (the “Continuous Service Requirement”), and (b) the level of achievement of the TSR Vesting Objective as outlined below and in Appendix A, which summarizes the TSR Vesting Objective.

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The  “TSR  Vesting  Objective”  means  the  Company’s  relative ranking in respect of the applicable Performance Cycle with regard to Total Shareholder Return (as defined in Appendix A) as compared to Total Shareholder Return of the Peer Companies (as defined in Appendix A).   The level of achievement of the TSR Vesting   Objective   shall   be   determined   in   accordance   with Appendix A.  After the end of each applicable Performance Cycle, the Committee will determine the Company’s Total Shareholder Return as compared to Total Shareholder Return of the Peer Companies and will certify the level of achievement with respect to the TSR Vesting Objective and what percentage of the Initial Performance Units  eligible to vest for such  Performance Cycle have  been  earned  in  accordance  with  the  table  set  forth  in Appendix  A  (such  number  of  Performance  Share  Units  that become earned  shall  hereinafter be called  the “Earned Performance   Units”),   subject   to   your   satisfaction   of   the Continuous Service Requirement.

Notwithstanding anything to the contrary herein, in the Agreement, in the Plan or in any other arrangement between you and the Company (including any employment agreement or the Amended and Restated Executive Change in Control and Severance Benefit Plan, if you participate in such plan):

(a)       if a Change in Control occurs prior to the end of the Grant Cycle (the date of such occurrence, the “Change in Control Date”) and you have remained in continuous service with the Company through  the  Change  in  Control  Date,  then,  upon  the occurrence of such Change in Control, with respect to any Initial Performance Units eligible to vest for a Performance Cycle that has not ended prior to the Change in Control Date, you shall be deemed to have earned a number of Performance Share Units equal to  the  number  of  Earned  Performance  Units  you  would  have earned in accordance with Appendix A, but assuming that (i) each such Performance Cycle occurring during the Grant Cycle ended on the Change in Control Date, (ii) the determination of whether, and to what extent, the TSR Vesting Objective is achieved shall be based on actual performance against the stated criteria through the Change in Control Date, and (iii) the Closing Value (as defined in Appendix A) for the Company is equal to the Change in Control Price instead of calculating the Closing Value in accordance with Appendix  A.    For  purposes  of  this  Award,  (A)  “Change  in Control” shall  have the meaning  given  such  term  in  the Plan; provided, that, in the event of any Business Combination following which both Thomas B. Nusz and Taylor L. Reid remain as Chief Executive Officer and President, respectively, and as members of the board of directors  or similar governing body, of the entity resulting from such Business Combination (not including any subsidiary thereof), the Board of the pre-Business Combination Company may determine, in its sole discretion, that no Change in Control has occurred for purposes of this Award; and (B) “Change in Control Price” shall equal the amount 

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determined in the following clause (1), (2), (3), (4) or (5), whichever is applicable, as follows: (1) the price per share offered to holders of Stock in any merger or consolidation, (2) the per share Fair Market Value of the Stock immediately before the Change in Control, without regard to assets sold in the Change in Control and assuming the Company has received the consideration paid for the assets in the case of a sale of assets, (3) the amount distributed per share of Stock in a dissolution transaction, (4) the price per share offered to holders of Stock in any tender offer or exchange offer whereby a Change in Control takes place, or (5) if such Change in Control occurs other than pursuant to a transaction described in clauses (1), (2), (3), or (4), the volume weighted average of the Company’s Stock price on each trading day in the 30-day period preceding the Change in Control Date.

(b) if  your  employment  or  service  relationship  with  the Company or any of its Subsidiaries is terminated due to your death or Disability prior to the end of the Grant Cycle, then you shall be deemed to have earned, with respect to any Initial Performance Units eligible to vest for a Performance Cycle that has not ended prior to your termination date, a number of Performance Share Units equal to 200% of the Initial Performance Units eligible to vest with respect to such Performance Cycle.   For purposes of this Award, “Disability” shall have the meaning given such term in any employment agreement between you and the Company; provided, however,  that  if  there  is  no  existing  employment  agreement between you and the Company, the term “Disability” shall mean your inability to perform the essential functions of your position with or without reasonable accommodation, if required by law, due to physical or mental impairment.   The existence of any such Disability shall be certified, at the Company’s discretion, by either the Company’s disability carrier or a physician acceptable to both you and the Company.  If the parties are not able to agree on the choice of physician, each party shall select a physician who, in turn, shall select a third physician to render such certification.  In no event will your employment be terminated as a result of Disability, unless otherwise agreed to by you and the Company, until at least 180 consecutive days of leave have elapsed and the Company has provided you with written notice of termination.

(c) if your employment or service relationship with the Company or any of its Subsidiaries is terminated prior to the end of the Grant Cycle by the Company or a Subsidiary without “Cause” or by you for “Good Reason” (in each case, as such terms are defined in any employment agreement between you and the Company or in the Amended and Restated Executive Change in Control  and  Severance  Benefit  Plan, if  you  participate in  such plan), then you shall be deemed to have earned, with respect to any Initial Performance Units eligible to vest for a Performance Cycle that has not ended prior to your termination date,  the number of Earned Performance Units that you would have actually earned in 

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accordance with Appendix A as of the end of each such Performance Cycle had you remained employed through the end of the Performance Cycle.

Any of your Performance Share Units that are eligible to be earned but that do not become Earned Performance Units as of the end of the applicable Performance Cycle shall terminate and be cancelled upon the expiration of such Performance Cycle.

		
	Date of Settlement:               
	Payment in respect of Earned Performance Units shall be made no later than March 15 of the calendar year following the calendar year in which the last day of the applicable Performance Cycle occurs, except that (a) in the event of your death or Disability, payments in respect of Earned Performance Units shall be made no later than the 30th day following your death or termination for Disability; and (b) in the event of a Change in Control, payments in respect of Earned Performance Units shall be made no later than five (5) business days after the Change in Control Date (in each case, the “Date of Settlement”).

All payments with respect to Earned Performance Units shall be made in freely transferable shares of Stock.

Upon full settlement of the Performance Share Units hereunder and pursuant to Section 3 of the Agreement, no additional payments will  be  made  pursuant  to  this  Award  and  the  Award  shall terminate.

By your acceptance of this document, you and the Company hereby acknowledge receipt of the Performance Share Units issued on the Date of Grant indicated above, which have been granted under the terms and conditions contained herein and in the Plan and the Agreement. Alternatively, you acknowledge your agreement to be bound to the terms of this Notice, the Agreement and the Plan in connection with your acceptance of the Performance Share Units issued hereby through procedures, including electronic procedures, provided by or on behalf of the Company.

You  acknowledge  and  agree  that  (a)  you  are  not  relying  upon  any  written  or  oral statement or representation of the Company, its affiliates, or any of their respective employees, directors, officers, attorneys or agents (collectively, the “Company Parties”) regarding the tax effects associated with your execution of this Notice of Grant of Performance Share Units and your receipt and holding of and the vesting of the Performance Share Units, and (b) in deciding to enter into this Agreement, you are relying on your own judgment and the judgment of the professionals of your choice with whom you have consulted.   You hereby release, acquit and forever discharge the Company Parties from all actions, causes of actions, suits, debts, obligations, liabilities, claims, damages, losses, costs and expenses of any nature whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax effects associated with your execution of the Agreement and your receipt and holding of and the vesting of the Performance Share Units.

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You further acknowledge receipt of a copy of the Plan and the Agreement and agree to all of the terms and conditions of the Plan and the Agreement, which are incorporated herein by reference.

OASIS PETROLEUM INC.,
a Delaware corporation

	
					
	By:
	 
	 
	 
	 

	Name:
	 
	 
	 
	 

	Title:
	 
	 
	 
	 

Attachment:    Appendix A – Total Shareholder Return Vesting Objective

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Appendix A

Total Shareholder Return Vesting Objective

The TSR Vesting Objective for the Performance Share Units is outlined in this Appendix A below.  The “TSR Vesting Objective” means the Company’s relative ranking in respect of the applicable Performance Cycle with regard to Total Shareholder Return as compared to the Total Shareholder Return of the Peer Companies.  The Committee shall have the sole discretion for determining the level of achievement with respect to the TSR Vesting Objective and the number of Earned Performance Units for each Performance Cycle and any such determinations shall be conclusive.

1.         Defined Terms.

(a)       “Total Shareholder Return” means, as to the Company and each of the Peer Companies, the annualized rate of return shareholders receive through stock price changes and the assumed reinvestment of dividends paid over the applicable Performance Cycle. Dividends per share paid other than in the form of cash shall have a value equal to the amount of such dividends reported by the issuer to its shareholders for purposes of Federal income taxation. For purposes of determining the Total Shareholder Return for the Company and each of the Peer Companies, the change in the price of the Company’s Stock and of the common stock of each Peer Company, as the case may be, shall be based upon the volume weighted average of the stock prices of the Company and each such Peer Company on each trading day in the 30-day period preceding each of the start (the “Initial Value”) and the end (the “Closing Value”) of the applicable Performance Cycle.   The Initial Value of the Stock to be used to determine Total Shareholder Return over each Performance Cycle is [$            ].

(b)       “Peer Company” means a company that is listed below.
	
		
	• Carrizo Oil & Gas Inc.
	• QEP Resources Inc.

	• Denbury Resources Inc.
	• Range Resources Corporation

	• Energen Corp.
	• SM Energy Co.

	• Gulfort Energy Corp.
	• Whiting Petroleum Corporation

	• Laredo Petroleum Inc.
	• WPX Energy, Inc.

	• Newfield Exploration Company
	 

 
In addition, the Standard & Poor’s Oil & Gas Exploration & Production Select Industry Index,
weighted as a single company, shall also be included as a Peer Company.

If, prior to the end of any Performance Cycle, a company listed above ceases to have a class of common equity securities listed to trade on a national securities exchange which is registered with the Commission under Section 6 of the Exchange Act (a “national securities exchange”), then for purposes of determining the Total Shareholder Return for such Peer Company for the Performance Cycle in which such company ceases to have a class of common equity securities listed to trade on a national securities exchange, the change in the price of the Peer Company’s common stock shall be based upon the volume weighted average of the stock price of such Peer Company  on  each  trading  day  in  the  30-day  period  preceding  the  start  of  the  applicable Performance Cycle (the “Initial Value”) and (i) if, following the cessation of trading on a national securities exchange, such Peer Company’s class of common equity securities is publicly traded on another market, exchange or quotation system, the volume weighted average of 

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the stock price, on whatever market, exchange or quotation system on which the Peer Company’s common equity securities is publicly traded, of such Peer Company on each trading day in the 30-day period preceding the end of the applicable Performance Cycle (the “Closing Value”) or (ii) if, following the cessation of trading on a national securities exchange, such Peer Company’s class  of  common  equity  securities  is  not  publicly  traded  on  another  market,  exchange  or quotation system, the stock price of the Peer Company on the last day during the Performance Cycle that such Peer Company had a class of common equity securities which was publicly traded on another market, exchange or quotation system (the “Closing Value”).  Following the end of any Performance Cycle in which such company ceases to have a class of common equity securities listed to trade on a national securities exchange, such company shall not be a Peer Company  for  purposes  of  calculating  the  Company’s  TSR  Vesting  Objective  under  this Appendix A for any other Performance Cycle which has not ended previously within the Grant Cycle.

If, prior to the end of any Performance Cycle, a company listed above is acquired or merged and, thus, ceases to have a class of common equity securities listed to trade on a national securities exchange or publicly traded on another market, exchange or quotation system, then for purposes of determining the Total Shareholder Return for such Peer Company for the Performance Cycle in which such company is so acquired or merged, the change in the price of the Peer Company’s common stock shall be based upon the volume weighted average of the stock price of such Peer Company on each trading day in the 30-day period preceding the start of the applicable Performance Cycle (the “Initial Value”) and the stock price on the last day during the Performance Cycle that such Peer Company had a class of common equity securities listed to trade on  a national  securities  exchange  or  publicly traded  on  another  market,  exchange or quotation  system  before  the  closing  of  the  merger  or  acquisition  (the  “Closing  Value”). Following the end of any Performance Cycle in which such company ceases to have a class of common equity securities listed to trade on a national securities exchange due to an acquisition or  merger,  such  company  shall  not  be  a  Peer  Company  for  purposes  of  calculating  the Company’s TSR Vesting Objective under this  Appendix A for any other Performance Cycle which has not ended previously within the Grant Cycle.

2.         Calculation of Ranking; Earned Performance Units.

(a)       After the end of each Performance Cycle, the Committee will:

(i)   calculate  the  Company’s  Total  Shareholder  Return  and  the  Total Shareholder Return of each Peer Company;
(ii)  rank, from highest to lowest, the Total Shareholder Return of the Company and each Peer Company;
(iii) calculate the percentage of Initial Performance Units that will become Earned Performance Units for each corresponding TSR rank, where 200% Initial Performance Units become Earned Performance Units if the  Company  TSR  Rank  is  1  and  0%  Initial  Performance  Units become Earned if the Company TSR rank is 13 (or another number equal to the total number of Peer Companies plus the Company), and the percentage of Initial Performance Units that become Earned corresponding to the TSR rankings between the highest and lowest ranking will be distributed linearly between 200% and 0%; and

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(iv) certify the level of achievement with respect to the TSR Vesting Objective and determine the number of Earned Performance Units for the Performance Cycle.

The following table is provided as an example of the above determination, which depends on the number of Peer Companies remaining at the end of the Performance Cycle:
	
							
	

Total Shareholder Return Rank (TSR Vesting Objective)
	% of Initial
Performance Units eligible to vest for the Performance Cycle that will become Earned Performance Units
	% of Initial
Performance Units eligible to vest for the Performance Cycle that will become Earned Performance Units
	% of Initial
Performance Units eligible to vest for the Performance Cycle that will become Earned Performance Units

	1
	200
	%
	200
	%
	200
	%

	2
	183
	%
	182
	%
	180
	%

	3
	167
	%
	164
	%
	160
	%

	4
	150
	%
	145
	%
	140
	%

	5
	133
	%
	127
	%
	120
	%

	6
	117
	%
	109
	%
	100
	%

	7
	100
	%
	91
	%
	80
	%

	8
	83
	%
	73
	%
	60
	%

	9
	67
	%
	55
	%
	40
	%

	10
	50
	%
	36
	%
	20
	%

	11
	33
	%
	18
	%
	0
	%

	12
	17
	%
	0
	%
	 

	13
	0
	%
	 
	 

(b)       Notwithstanding the foregoing, no Performance Share Units will become Earned Performance Units for a Performance Cycle unless you also satisfy the applicable Continuous Service Requirement in accordance with the terms of the Agreement and the Notice of Grant.

8PROMISSORY
NOTE

 

	U.S.
    $125,000.00	May
    3, 2016

 

FOR
VALUE RECEIVED, XFIT BRANDS Inc., a Nevada corporation (“Borrower”),
promises to pay in lawful money of the United States of America to the order of KODIAK
CAPITAL GROUP, LLC, a Delaware limited liability company, or its successors or assigns (“Lender”), the
principal sum of $125,000.00, together with all other amounts due under this Promissory Note (this “Note”).
This Note is issued pursuant to that certain Securities Purchase Agreement of even date herewith between Borrower and Lender (the
“Purchase Agreement”).

 

1.PAYMENT.
Borrower shall pay to Lender the entire outstanding balance of this Note on or before December 31, 2016 (the “Maturity
Date”). Borrower will make all payments of sums due hereunder to Lender at Lender’s address set forth in the Purchase
Agreement, or at such other place as Lender may designate in writing; provided, however, that the parties understand and agrees
that in no event shall Borrower utilize funds received from sales of its common stock to Lender under that certain Equity Purchase
Agreement dated December 17, 2014 between Borrower and Lender. Unless otherwise agreed or required by applicable law, payments
will be applied first to any unpaid collection costs and late charges, then to accrued interest and finally to principal.

 

2.INTEREST.
Interest shall not accrue on the unpaid principal balance of this Note unless an Event of Default (as defined below) occurs. Upon
the occurrence of an Event of Default, the outstanding balance of this Note shall bear interest at the lesser of the rate of fifteen
percent (15%) per annum or the maximum rate permitted by applicable law, compounding daily and calculated on the basis of a 360-day
year, from the date the applicable Event of Default occurred until paid.

 

3.ORIGINAL
ISSUE DISCOUNT; TRANSACTION EXPENSES. This Note carries an original issue discount of $20,000.00. In addition, Borrower agrees
to pay $5,000.00 to Lender to cover Lender’s legal fees, accounting costs, due diligence, monitoring and other transaction
costs incurred in connection with the purchase and sale of this Note, all of which amounts are included in the initial principal
balance of this Note and are fully earned and payable as of the date hereof (subject only to the prepayment discount set forth
in Section 4 below).

 

4.PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due; provided, however, that the parties
understand and agrees that in no event shall Borrower utilize funds received from sales of its common stock to Lender under that
certain Equity Purchase Agreement dated December 17, 2014 between Borrower and Lender. Early payments of less than all principal,
fees and interest outstanding will not, unless agreed to by Lender in writing, relieve Borrower of any of Borrower’s obligations
hereunder. Should Borrower make any prepayment in accordance with the schedule set forth below, the amount payable shall be the
amount set forth below under the heading “Prepayment Amount,” and upon Lender’s timely receipt of such amount,
this Note shall be deemed paid in full notwithstanding the fact that such payment may be less than the initial outstanding balance
of this Note:

 

	 	Prepayment
    Deadline	 	Prepayment
    Amount
	 	November
    3, 2016	 	$125,000.00
    (which reflects a $20,000.00 discount to the original outstanding balance)

 

5.SECURITY.
This Note is unsecured.

 

    	 	 	 

    	 

    

 

6.EVENT
OF DEFAULT. The occurrence and continuance of any of the following shall constitute an “Event of Default”
under this Note:

 

6.1.Failure
to Pay. Borrower shall fail to pay when due, whether at the Maturity Date, the Prepayment Deadline, upon acceleration or otherwise,
any principal or interest payment, or any other payment required under the terms of this Note on the date due, and such failure
shall continue for five (5) days after written notice to Borrower.

 

6.2.Breaches
of Covenants. Borrower or any other person or entity fails to comply with or to perform when due any other term, obligation,
covenant, or condition contained in this Note, in the Purchase Agreement (including without limitation any covenant set forth
in Section 4 of the Purchase Agreement), any other Transaction Document (as defined in the Purchase Agreement), or in any other
agreement securing payment of this Note and such failure or non-performance shall continue for ten (10) days after written notice
to Borrower.

 

6.3.Representations
and Warranties. Any representation or warranty made by Borrower to Lender in this Note, the Purchase Agreement, any other
Transaction Document, or any related agreement shall be false, incorrect, incomplete or misleading in any material respect when
made or furnished and such breach causes harm to Lender.

 

6.4.Voluntary
Bankruptcy or Insolvency Proceedings. Borrower shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator
or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to
pay its debts generally as they mature, (iii) make a general assignment for the benefit of any of its creditors, (iv) be dissolved
or liquidated, or (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding
commenced against it.

 

6.5.Involuntary
Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator, or custodian of
Borrower or of all or a substantial part of its property, or an involuntary case or other proceedings seeking liquidation, reorganization,
or other relief with respect to Borrower or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty
(60) days of commencement.

 

6.6.Government
Action. If any governmental or regulatory authority takes or institutes any action that will materially affect Borrower’s
financial condition, operations or ability to pay or perform Borrower’s obligations under this Note.

 

6.7.Judgment.
A judgment or judgments for the payment of money in excess of the sum of $100,000.00 in the aggregate shall be rendered against
Borrower and either (i) the judgment creditor executes on such judgment or (ii) such judgment remains unpaid or undischarged for
more than sixty (60) days from the date of entry thereof or such longer period during which execution of such judgment shall be
stayed during an appeal from such judgment.

 

6.8.Attachment.
Any execution or attachment shall be issued whereby any substantial part of the property of Borrower shall be taken or attempted
to be taken and the same shall not have been vacated or stayed within thirty (30) days after the issuance thereof.

 

    	 	2	 

    	 

    

 

6.9.Cross
Default. Borrower materially breaches or any event of default occurs under any term or provision of any Other Agreement (as
defined hereafter). For purposes hereof, “Other Agreement” means collectively, (i) all existing and future
agreements and instruments between, among or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on
the other hand, and (ii) any financing agreement or a material agreement filed with the Securities and Exchange Commission that
affects Borrower’s ongoing business operations.

 

7.ACCELERATION;
REMEDIES.

 

7.1.At
any time following the occurrence of an Event of Default (other than an Event of Default referred to in Sections 6.4 and 6.5),
Lender may, by written notice to Borrower, declare all unpaid principal, plus all accrued interest and other amounts due hereunder
to be immediately due and payable at the Mandatory Default Amount (as defined below) without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding;
provided, however, that for an Event of Default for failure to pay the Note in full on the Prepayment Deadline, Lender will not
accelerate the Note unless Borrower shall fail to pay the Mandatory Default Amount (plus all accrued interest from and after the
Event of Default) on the Maturity Date.. Upon the occurrence or existence of any Event of Default described in Sections 6.4 and
6.5, immediately and without notice, all outstanding unpaid principal, plus all accrued interest and other amounts due hereunder
shall automatically become immediately due and payable at the Mandatory Default Amount, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding.
In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, Lender may exercise any other
right, power or remedy permitted to it by law, either by suit in equity or by action at law, or both. For purposes hereof, the
term “Mandatory Default Amount” means an amount equal to 125% of the outstanding balance of this Note as of
the date the applicable Event of Default occurred, plus all interest, fees, and charges that may accrue on such outstanding balance
thereafter.

 

7.2.Upon
the occurrence of a Change in Control (as defined below), and without further notice to Borrower, all unpaid principal, plus all
accrued interest and other amounts due hereunder, shall become immediately due and payable. For purposes hereof, a “Change
in Control” means a sale of all or substantially all of a Borrower’s assets, or a merger, consolidation, significant
equity financing, or other capital reorganization of a Borrower with or into another company; provided however that a merger,
consolidation, significant equity financing, or other capital reorganization in which the holders of more than fifty percent (50%)
of the equity of a Borrower outstanding immediately prior to such transaction continue to hold (either by the voting securities
remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the
total voting power represented by the voting securities of such Borrower, or such surviving entity, outstanding immediately after
such transaction shall not constitute a Change in Control.

 

8.UNCONDITIONAL
OBLIGATION; NO OFFSET. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable obligation
of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset it now has
or may have hereafter against Lender, its successors and assigns, and agrees to make all payments due hereunder in accordance
with the terms of this Note.

 

9.NO
USURY. Notwithstanding any other provision contained in this Note or in any instrument given to evidence the obligations evidenced
hereby: (a) the rates of interest and charges provided for herein and therein shall in no event exceed the rates and charges which
result in interest being charged at a rate equaling the maximum allowed by law; and (b) if, for any reason whatsoever, Lender
ever receives as interest in connection with the transaction of which this Note is a part an amount which would result in interest
being charged at a rate exceeding the maximum allowed by law, such amount or portion thereof as would otherwise be excessive interest
shall automatically be applied toward reduction of the unpaid principal balance then outstanding hereunder and not toward payment
of interest.

 

    	 	3	 

    	 

    

 

10.ATTORNEYS’
FEES. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing arbitration or
legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise takes action to
collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the costs incurred by Lender
for such collection, enforcement or action including, without limitation, attorneys’ fees and disbursements.

 

11.GOVERNING
LAW; VENUE. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal laws of the State of California, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of California. The provisions set forth
in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

12.RESERVED.

 

13.WAIVERS.
Borrower hereby waives presentment, notice of nonpayment, notice of dishonor, protest, demand and diligence.

 

14.LOSS
OR MUTILATION. On receipt by Borrower of evidence reasonably satisfactory to Borrower of the loss, theft, destruction or mutilation
of this Note and, in the case of any such loss, theft or destruction of this Note, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to Borrower or, in the case of any such mutilation, on surrender and cancellation of such Note,
Borrower at its expense will execute and deliver, in lieu thereof, a new Note of like tenor.

 

15.NOTICES.
Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by this reference.

 

16.AMENDMENT
AND WAIVER. This Note and its terms and conditions may be amended, waived or modified only in writing by Borrower and Lender.

 

17.SEVERABILITY.
If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of the
parties to the fullest extent permitted and the balance of this Note shall remain in full force and effect.

 

18.ASSIGNMENTS.
Borrower may not assign this Note without the prior written consent of Lender. This Note may be offered, sold, assigned or transferred
by Lender without the consent of Borrower.

 

19.FINAL
NOTE. This Note, together with the other Transaction Documents, contains the complete understanding and agreement of Borrower
and Lender and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations. THIS
NOTE, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

    	 	4	 

    	 

    

 

20.Waiver
of Jury Trial. BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS
WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR
REGULATION. FURTHER, BORROWER ACKNOWLEDGES THAT IT KNOWINGLY AND VOLUNTARILY IS WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL
BY JURY.

 

21.TIME
IS OF THE ESSENCE. Time is of the essence of this Note and each and every provision hereof in which time is an element.

 

22.LIQUIDATED
DAMAGES. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions of this
Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’
inability to predict future interest rates and other relevant factors. Accordingly, Lender and Borrower agree that any fees, balance
adjustments, default interest or other charges assessed under this Note are not penalties but instead are intended by the parties
to be, and shall be deemed, liquidated damages.

 

23.VOLUNTARY
AGREEMENT. Borrower has carefully read this Note and has asked any questions needed for Borrower to understand the terms,
consequences and binding effect of this Note and fully understand them. Borrower has had the opportunity to seek the advice of
an attorney of Borrower’s choosing, or has waived the right to do so, and is executing this Note voluntarily and without
any duress or undue influence by Lender or anyone else.

 

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IN
WITNESS WHEREOF, Borrower has caused this Note to be issued as of the date first set forth above.

 

	 	BORROWER:
	 	XFIT BRANDS, Inc.
	 	 	 
	 	By:	/s/
    David Vautrin
	 	Name:	David
    Vautrin
	 	Title:	CEO

 

[Signature
Page to Promissory Note]

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