Document:

Exhibit 10.9a

 

HYLETE, INC.

2015 EQUITY INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

The Company hereby grants an Option to purchase
Shares to the Optionee named below. The terms and conditions of the Option are set forth in this cover sheet, in the attached Nonstatutory
Stock Option Agreement and in the Hylete 2015 Equity Incentive Plan. This cover sheet is incorporated into and a part of the attached
Nonstatutory Stock Option Agreement (together, the “Agreement”).

 

Date of Option Grant:

 

Name of Optionee:

 

Number of Shares Covered by Option:

 

Exercise Price per Share:

 

Fair Market Value of a Share on Date of Option Grant:

 

Expiration Date:

 

Vesting Calculation Date:

 

Vesting Schedule:

 

Subject to all the terms of the Agreement
and your continued Service, your right to purchase Shares under this Option shall vest [__________________________________].

 

In all cases, the resulting aggregate number
of vested Shares will be rounded down to the nearest whole number. No Shares subject to this Option will vest after your Service
has terminated for any reason.

 

By signing this cover sheet, you agree
to all of the terms and conditions described in the Agreement and in the Plan. You are also acknowledging receipt of this Agreement
and a copy of the Plan, a copy of which is also enclosed.

 

	Optionee:	 	 
	 	(Signature)	 
	 	 	 
	Company:	 	 
	 	(Signature)	 
	 	 	 
	Title:	 	 

 

 

Attachment

 

 

 

 

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HYLETE, INC.

2015 EQUITY INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

	1.	The Plan and

Other Agreements	
        The text of the Plan is incorporated in this Agreement by reference.
        Certain capitalized terms used in this Agreement are defined in the Plan.

         

        This Agreement and the Plan constitute the entire understanding
        between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are
        superseded.

	 	 	 
	2.	Nonstatutory Stock Option	
        This Option is not intended to be an Incentive Stock Option
        under section 422 of the Code and will be interpreted accordingly.

         

        This Option is not intended to be deferred compensation under
        section 409A of the Code and will be interpreted accordingly.

	 	 	 
	3.	Vesting	This Option is only exercisable before it expires and only with respect to the vested portion of the Option. This Option
    will vest according to the Vesting Schedule described in the cover sheet of this Agreement.
	 	 	 
	4.	Term	Your Option will expire in all cases no later than the close of business at Company headquarters on the Expiration Date, as shown on the cover sheet.  Your Option may expire earlier if your Service terminates, as described in Sections 5, 6 and 7 below or on the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company.
	 	 	 
	5.	Termination of Service - General	If, while the Option is outstanding, your Service terminates for any reason, other than being terminated by the Company for Cause or due to your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is ninety (90) days after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company.  In no event is the Option exercisable after the Expiration Date.
	 	 	 
	6.	Termination of Service for

Cause	If your Service is terminated by the Company for Cause or if you commit an act(s) of Cause while this Option is outstanding, as determined by the Committee in its sole discretion, then you shall immediately forfeit all rights to your Option without consideration, including any vested portion of the Option, and the entire Option shall immediately expire, and any rights, payments and benefits with respect to the Option shall be subject to reduction or recoupment in accordance with the Clawback Policy and the Plan.  For avoidance of doubt, your Service shall also be deemed to have been terminated for Cause by the Company if, after your Service has otherwise terminated, facts and circumstances are discovered that would have justified a termination for Cause, including, without limitation, your violation of Company policies or breach of confidentiality or other restrictive covenants or conditions that may apply to you prior to or after your Termination Date.

 

 

 

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	7.	Termination of Service due to Death or Disability	If your Service terminates because of your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is six (6) months after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or similar transaction involving the Company.  In no event is the Option exercisable after the Expiration Date.  If your Service terminated due to your death, then your estate may exercise the vested portion of your Option during the foregoing post-Service exercise period.
	 	 	 
	8.	Leaves of Absence	
        For purposes of this Option, your Service does not terminate
        when you go on a bona fide leave of absence that was approved by the Company in writing, if the terms of the leave provide
        for continued Service crediting, or when continued Service crediting is required by applicable law. Your Service terminates in
        any event when the approved leave ends unless you immediately return to active work.

         

        The Company determines which leaves count for this purpose (along
        with determining the effect of a leave of absence on vesting of the Option), and when your Service terminates for all purposes
        under the Plan.

	 	 	 
	9.	Notice of Exercise	
        When you wish to exercise this Option, you must notify the Company
        by filing a “Notice of Exercise” form at the address given on the form. Your notice must specify how many Shares you
        wish to purchase. Your notice must also specify how your Shares should be registered (in your name only or in your and your spouse’s
        names as community property or as joint tenants with right of survivorship). The notice will be effective when it is received by
        the Company.

         

        If someone else wants to exercise this Option after your death,
        that person must prove to the Company’s satisfaction that he or she is entitled to do so.

	 	 	 
	10.	Form of Payment	
        When you submit your notice of exercise, you must include payment
        of the Exercise Price for the Shares you are purchasing. Payment may be made in one (or a combination) of the following forms:

        

 

	 	 	·	Cash,
        your personal check, a cashier’s check or a money order.
	 	 	 	 
	 	 	·	Shares
        which have already been owned by you for more than six (6) months and which are surrendered to the Company. The Fair Market Value
        of the Shares, determined as of the effective date of the Option exercise, will be applied to the Exercise Price.
	 	 	 	 
	 	 	·	To the extent a public market for the Shares exists as determined by the Company, by Cashless Exercise through delivery
        (on a form prescribed by the Company) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part
        of the sale proceeds to the Company in payment of the aggregate Exercise Price.

 

 

 

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	11.	Withholding Taxes	
        You will be solely responsible for payment
        of any and all applicable taxes associated with this Option.

         

        You will not be allowed to exercise this Option unless you make
        acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Shares
        acquired under this Option.

	 	 	 
	12.	Restrictions on Exercise and Resale	
        Notwithstanding anything to the contrary, this Option
        is granted on the condition that the Company’s shareholders approve the Plan prior to January 1, 2016. You understand and
        agree that this Option may not be exercised unless the Company’s shareholders timely approve the Plan. If the Company’s
        shareholders do not approve the Plan prior to January 1, 2016, then this Option shall be immediately forfeited without consideration.

         

        By signing this Agreement, you agree not to (i) exercise this
        Option (“Exercise Prohibition”), or (ii) sell, transfer, dispose of, pledge, hypothecate, make any short sale of, or
        otherwise effect a similar transaction of any Shares acquired under this Option (each a “Sale Prohibition”) at a time
        when applicable laws, regulations or Company or underwriter trading policies prohibit the exercise or disposition of Shares. The
        Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation.
        The Company shall have the right to designate one or more periods of time, each of which generally will not exceed one hundred
        eighty (180) days in length (provided however, that such period may be extended in connection with the Company’s release
        (or announcement of release) of earnings results or other material news or events), and to impose an Exercise Prohibition and/or
        Sale Prohibition, if the Company determines (in its sole discretion) that such limitation(s) is needed in connection with a public
        offering of Shares or to comply with an underwriter’s request or trading policy, or could in any way facilitate a lessening
        of any restriction on transfer pursuant to the Securities Act or any state securities laws with respect to any issuance of securities
        by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state
        securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Securities
        Act or any applicable state securities laws for the issuance or transfer of any securities. The Company may issue stop/transfer
        instructions and/or appropriately legend any stock certificates issued pursuant to this Option in order to ensure compliance with
        the foregoing. Any such Exercise Prohibition shall not alter the vesting schedule set forth in this Agreement other than to limit
        the periods during which this Option shall be exercisable.

         

        If the sale of Shares under the Plan is not registered under
        the Securities Act, but an exemption is available which requires an investment or other representation, you shall represent and
        agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment, and
        not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate
        by the Company and its counsel.

         

        You may also be required, as a condition of exercise of this
        Option, to enter into any Shareholders Agreement or other agreements that are applicable to shareholders.

 

 

 

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	13.	The Company’s

Right of First Refusal	In the event that you propose to sell, pledge or otherwise transfer to a third party any Shares acquired under this Agreement, or any interest in such Shares, the Company shall have the “Right of First Refusal” with respect to all (and not less than all) of such Shares.  If you desire to transfer Shares acquired under this Agreement, you must give a written “Transfer Notice” to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price and the name and address of the proposed transferee.
	 	 	 
	 	 	The Transfer Notice shall be signed both by you and by the proposed new transferee and must constitute a binding commitment of both parties to the transfer of the Shares.  The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms permitted in the next paragraph) by delivery of a notice of exercise of the Right of First Refusal within thirty (30) days after the date when the Transfer Notice was received by the Company.  The Company’s rights under this subsection shall be freely assignable, in whole or in part.
	 	 	 
	 	 	If the Company fails to exercise its Right of First Refusal within thirty (30) days after the date when it received the Transfer Notice, you may, not later than ninety (90) days following receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice.  Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by you, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in the paragraph above.  If the Company exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer Notice within sixty (60) days after the date when the Company received the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Shares was to be made in a form other than lawful money paid at the time of transfer, the Company shall have the option of paying for the Shares with lawful money equal to the present value of the consideration described in the Transfer Notice.
	 	 	 
	 	 	
        The Company’s Right of First Refusal shall inure to the
        benefit of its successors and assigns and shall be binding upon any transferee of the Shares.

         

        The Company’s Right of First Refusal shall terminate in
        the event that Shares are listed on an established stock exchange or are quoted regularly on the OTC Bulletin Board.

	 	 	 
	14.	Right of Repurchase	Following your Termination Date after termination of your Service for any reason, the Company shall have the right to purchase all of those Shares that you have or will acquire under this Option.  If the Company exercises its right to purchase such Shares, the purchase price shall be the Fair Market Value of those Shares on the date of purchase as determined by the Board of Directors and shall be paid in cash.  The Company will notify you of its intention to purchase such Shares, and will consummate the purchase within any time period established by applicable law.  The Company’s right of repurchase shall inure to the benefit of its successors and assigns and shall be binding upon any transferee of the Shares.  The Company’s rights under this subsection shall be freely assignable, in whole or in part. The Company’s right of repurchase shall terminate in the event that the Shares are listed on an established stock exchange or are quoted regularly on the OTC Bulletin Board.

 

 

 

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	15.	Transfer of Option	Prior to your death, only you may exercise this Option.  You cannot gift, transfer, assign, alienate, pledge, hypothecate, attach, sell, or encumber this Option or subject it to any short position, Call Equivalent Position or Put Equivalent Position.  If you attempt to do any of these things, this Option will immediately become invalid.  You may, however, dispose of this Option in your will or it may be transferred by the laws of descent and distribution.  Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company obligated to recognize your spouse’s interest in your Option in any other way.
	 	 	 
	16.	Retention Rights	
        Your Option or this Agreement does not give you the right to
        be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity. The Company (or any Parent and any
        Subsidiaries or Affiliates) reserves the right to terminate your Service at any time and for any reason.

         

        This Option and the Shares subject to the Option are not intended
        to constitute or replace any pension rights or compensation and are not to be considered compensation of a continuing or recurring
        nature, or part of your normal or expected compensation, and in no way represent any portion of your salary, compensation or other
        remuneration for any purpose, including but not limited to, calculating any severance, resignation, termination, redundancy, dismissal,
        end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

	 	 	 
	17.	Shareholder Rights	You, or your estate, shall have no rights as a shareholder of the Company with regard to the Option until you have been
    issued the applicable Shares by the Company and have satisfied all other conditions specified in Section 4(f) of the Plan. No
    adjustment shall be made for cash or stock dividends or other rights for which the record date is prior to the date when such
    applicable Shares are issued, except as provided in the Plan.
	 	 	 
	18.	Adjustments	In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of Shares covered by
    this Option (rounded down to the nearest whole number) and the Exercise Price per Share may be adjusted pursuant to the Plan.
    Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company
    is subject to such corporate activity.
	 	 	 
	19.	Legends	All certificates representing the Shares issued upon exercise of this Option may, where applicable, have endorsed thereon the following legends and any other legend the Company determines appropriate:
	 	 	 
	 	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”
	 	 	 
	 	 	“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

 

 

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	20.	Applicable Law	This Agreement will be interpreted and enforced under the laws of the State of California without reference to the conflicts of law provisions thereof.
	 	 	 
	21.	Notice	
        Any notice to be given or delivered to the Company relating
        to this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice to be given or
        delivered to you relating to this Agreement shall be in writing and addressed to you at such address of which you advise the Company
        in writing. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and
        properly addressed to the party to be notified.

        

	 	 	 
	22.	Voluntary Participant	You acknowledge that you are voluntarily participating in the Plan.
	 	 	 
	23.	No Rights to Future Awards	Your rights, if any, in respect of or in connection with this Option or any other Awards are derived solely from the
    discretionary decision of the Company to permit you to participate in the Plan and to benefit from a discretionary future
    Award. By accepting this Option, you expressly acknowledge that there is no obligation on the part of the Company to continue
    the Plan and/or grant any additional Awards to you or benefits in lieu of Options or any other Awards even if Awards have
    been granted repeatedly in the past. All decisions with respect to future Awards, if any, will be at the sole
    discretion of the Committee.
	 	 	 
	24.	Future Value	The future value of the underlying Shares is unknown and cannot be predicted with certainty. If the underlying
    Shares do not increase in value after the Date of Option Grant, the Option will have little or no value. If you exercise the
    Option and obtain Shares, the value of the Shares acquired upon exercise may increase or decrease in value, even below the
    Exercise Price. 
	 	 	 
	25.	No Advice Regarding Grant	The Company has not provided any tax, legal or financial advice, nor has the Company made any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
	 	 	 
	26.	No Right to Damages	You will have no right to bring a claim or to receive damages if any portion of the Option is cancelled or expires
    unexercised. The loss of existing or potential profit in the Option will not constitute an element of damages in the event of
    the termination of your Service for any reason, even if the termination is in violation of an obligation of the Company or a
    Parent or a Subsidiary or an Affiliate to you.

 

 

 

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	27.	Data Privacy	You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your
    personal data as described in this document by the Company for the exclusive purpose of implementing, administering and
    managing your participation in the Plan. You understand that the Company holds certain personal information about
    you, including, but not limited to, name, home address and telephone number, date of birth, social security or insurance
    number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the
    Company, details of all Awards or any other entitlement to Shares awarded, cancelled, purchased, exercised, vested, unvested
    or outstanding in your favor for the purpose of implementing, managing and administering the Plan (“Data”). You
    understand that the Data may be transferred to any third parties assisting in the implementation, administration and
    management of the Plan, that these recipients may be located in your country or elsewhere and that the recipient country may
    have different data privacy laws and protections than your country. You authorize the recipients to receive,
    possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and
    managing your participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or
    other third party with whom you may elect to deposit any Shares acquired under the Plan.
	 	 	 
	28.	Date of Grant	You understand that the Company has been converted from a limited liability company into a corporation, and accordingly, this Agreement and the option rights set forth herein are being issued in replacement of similar interests you may have had in obtaining “membership units” or profits interests in the company prior to its conversion into a corporation.  For each membership unit you may have had an option to purchase from the company prior to its conversion, you will not have the same right with respect to shares of the Company’s common stock.

 

By signing the cover sheet of this Agreement,
you agree to all of the terms and conditions described above and in the Plan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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HYLETE, INC.

NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION BY OPTIONEE

 

Hylete, Inc.

564 Stevens Ave.

Solana Beach, CA 92075

Attention: Secretary

 

 

	Re:	Exercise of Nonstatutory Stock Option to Purchase Shares of Company Stock	 
	 	 	 
	 	 	 
	 	 [PRINT NAME OF OPTIONEE]	 

 

Pursuant to the Nonstatutory Stock Option
Agreement dated ___________________, ______ between Hylete, Inc., a Delaware corporation, (the “Company”) and me, made
pursuant to the 2015 Equity Incentive Plan (the “Plan”), I hereby request to purchase _______ Shares (whole number
only) of common stock of the Company (the “Shares”), at the exercise price of $__________ per Share. I am hereby making
full payment of the aggregate exercise price by one or more of the following forms of payment in accordance with the whole number
percentages that I have provided below. I further understand and agree that I will timely satisfy any and all applicable tax withholding
obligations as a condition of this Option exercise.

 

	 	Percentage 

of Payment	 	Form of Payment As Provided In the Nonstatutory Stock Option Agreement
	 	 	 	 
	 	______%	 	Cash/My Personal Check/Cashier’s
Check/Money Order (payable to “Hylete”)
	 	 	 	 
	 	______%	 	Surrender of vested Shares (Valued
At Their Fair Market Value) Owned By Me For More Than Six (6) Months
	 	100%	 	 

 

	Check one:	 ̈	The Shares certificate is to be issued and registered in my name only.
	 	 	 
	 	 ̈	The Shares certificate is to be issued and registered in my name and my spouse’s name.
	 	 	 
	 	 	________________________________________________________
	 	 	[PRINT SPOUSE’S NAME, IF CHECKING SECOND BOX]
	 	 	 
	 	 	Check one (if
checked second box above):
	 	 	 
	 	 	 ̈
Community Property or  ̈ Joint
Tenants With Right of Survivorship

 

 

 

 

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I acknowledge that I have received, understand
and continue to be bound by all of the terms and conditions set forth in the Plan and in the Nonstatutory Stock Option Agreement.

 

 

Dated: __________________

 

	 	 	 
	(Optionee’s Signature)	 	(Spouse’s Signature)**
	 	 	 
	 	 	**Spouse must sign this Notice of Exercise if listed
above.
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Full Address)	 	(Full Address)

 
*THIS NOTICE OF EXERCISE MAY BE REVISED BY THE
COMPANY AT ANY TIME WITHOUT NOTICE.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10Exhibit 10.14

 

PROMISSORY NOTE

 

	  Loan Amount: $300,000	August 19th, 2019  

 

FOR CASH RECEIVED,
HYLETE, INC. (“Maker”) promises to pay Steelpoint Co- Investment Fund, LLC (the “Payee”),
in lawful money of the United States of America the principal amount of $300,000 (the “Loan Amount”),
together with interest in accordance with the provisions hereof (this “Note”).

 

1.                  
DEFINITIONS. For purposes hereof the following terms shall have the meanings ascribed to them below:

 

“Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City of New York
are authorized or required by law or executive order to remain closed. If any payment of interest or principal under this Note
is due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day.

 

“Maturity
Date” shall mean the earlier of: (i) Maker’s Initial Public Offering (“IPO”) (or any other type
of direct prospectus or registered offering transaction) that results in the Company or its successor becoming “public”
and any class of its securities are quoted or traded in any exchange or quotation system in the United States of America shall
have been consummated; or (ii) December 31st, 2019.

 

“Principal
Sum” shall refer to the sum of (i) the original Loan Amount of this Note, and (ii) all accrued but unpaid interest
hereunder.

 

2.                  
PAYMENTS.

 

2.1               
Interest. Interest shall accrue on the Loan Amount at annual rate of twenty percent (20.0 %) per annum calculated
on a three-hundred and sixty-five (365) day basis.

 

2.2               
Repayment Date. Within thirty-days (30 days) of the Maturity Date, the entire Principal Sum, less any payments made
hereunder, shall become due and payable, unless otherwise mutually agreed upon by both Maker and Payee.

 

2.3               
Method of Payment. Any payment of Principal Sum owed to Payee hereunder shall be made by electronic transfer to such
account as Payee shall designate to Maker in writing.

 

2.4               
Prepayment. Maker may prepay all or any portion of the Loan Amount without premium or penalty, provided that Maker
shall pay to Payee the then total amount of accrued but unpaid interest.

 

2.5               
Late Fee. If any portion of the Principal Sum has not been repaid within thirty (30) days after the Maturity Date,
this Note shall incur a late charge of five percent (5%) of the then outstanding Principal Sum. Any such payment due under this
Section shall be made by electronic transfer to such account as Payee shall designate to Maker in writing.

 

3.                  
GENERAL PROVISIONS.

 

3.1               
Governing Law. This Note is governed by the laws of the State of California without regard to conflicts of laws principles
thereof.

 

3.2               
Parties in Interest. This Note is binding on and shall inure to the benefit of the parties hereto and each of their
successors and assigns provided however this Note may not be assigned by Payee without the prior written consent of the Maker.

 

 

 

 

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3.3               
Construction. The headings of sections in this Note are provided for convenience only and will not affect its construction
or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections
of this Note unless otherwise specified. All words used in this Note will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the words “hereof’ and “hereunder” and similar references
refer to this note in its entirety and not to any specific section or subsection hereof. This Note shall be deemed to have been
drafted by all parties hereto and, in the event of a dispute, no party hereto shall be entitled to claim that any provision should
be construed against any other party by reason of the fact that it was drafted by one particular party.

 

3.4               
Seniority. This Note shall be junior and subordinate to debt owed by the Maker to Black Oak and Chung Family Trust
and be senior to any dividends payable to holders of preferred stock issued by the Maker.

 

3.5               
Legal Fees. In the event of any litigation concerning this Note, including actions or proceedings to enforce this
Note, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs from the other party.

 

3.6               
Arbitration. Any controversy or claim arising out of or relating to this Agreement or the making, performance, or
interpretation of it, shall be settled by binding arbitration under the commercial arbitration rules of JAMS (Judicial and Medication
Service) then existing. Any proceeding shall take place in San Diego County, California or a mutually agreed venue. Judgment on
the arbitration award may be entered in any court having jurisdiction over the subject matter of the controversy. All the provisions
of California Code of Civil Procedure Section 1283.05 shall be conclusively deemed to be incorporated herein and made a part hereof,
and shall be applicable to this agreement to arbitrate.

 

3.7               
Notices. All notices under this Note shall be in writing. Any such notice may be served personally, transmitted by
email, addressed as indicated below, or to such other address as such party may designate by written notice as provided herein.
Any such communication shall be deemed effective upon personal delivery, upon confirmed receipt of notice transmitted by e-mail
in accordance with this section.

 

If to Payee:James CaccavoEMAIL:
jim@steelpointcp.com

If to Maker:Ron Wilson, CEOEMAIL:
rwilson@hylete.com

 

 

 

 

 

 

 

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IN WITNESS WHEREOF,
Maker has executed and delivered this Note as of the date first above stated.

 

HYLETE, INC.

 

 

 

By: /s/ Ron L. Wilson, II                                                                       

Name: Ron L. Wilson, II

Title: CEO

 

 

[Signature Page to Promissory Note.]

 

 

 

 

 

 

 

 

 

 

 

 

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