Document:

Exhibit 10.3

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE
SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND
THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. LENDERS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN
COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

EAGLE EQUITIES LLC

COLLATERALIZED SECURED PROMISSORY NOTE

BACK END NOTE

 

      

	$255,000.00	New Haven, CT

November 2, 2018

		1.	Principal and Interest

 

FOR
VALUE RECEIVED, EAGLE EQUITIES LLC, a Nevada Limited Liability Company (the "Company") hereby absolutely and unconditionally
promises to pay to Innerscope Hearing Technologies, Inc. (the “Lender"),
or order, the principal amount of Two Hundred Fifty Five Thousand Dollars ($255,000.00) no later than July 2, 2019, unless the
Lender does not meet the “current information requirements” required under Rule 144 of the Securities Act of 1933,
as amended, in which case the Company may declare the offsetting note issued by the Lender on the same date herewith to be in Default
(as defined in that note) and cross cancel its payment obligations under this Note as well as the Lenders payment obligations under
the offsetting note. This Full Recourse Note shall bear simple interest at the rate of 8%.

 

2.Repayments and Prepayments;
Security.

 

a.All principal
under this Note shall be due and payable no later than July 2, 2019 unless the
Lender does not meet the “current information requirements” required under Rule 144 of the Securities Act of 1933,
as amended, in which case the Company may declare the offsetting note issued by the Lender on the same date herewith to be in Default
(as defined in that note) and cross cancel its payment obligations under this Note as well as the Lenders payment obligations under
the offsetting note.

 

b.The Company may
pay this Note at any time. This note may not be assigned by the Lender, except by operation of law.

 

c.This Note shall
initially be secured by the pledge of the $280,500.00 8% convertible promissory note issued to the Company by the Lender on even
date herewith (the “Lender Note”). The Company may exchange this collateral for other collateral with an appraised
value of at least $255,000.00, by providing 3 days prior written notice to the Lender. If the Lender does not object to
the substitution of collateral in that 3 day period, such substitution of collateral shall be deemed to have been accepted by the
Lender. Notwithstanding the foregoing, an exchange of collateral for $255,000.00 in cash shall not require the approval
of the Lender. All collateral shall be retained by Investors Counsel Attorneys, P.C., which shall act as the escrow agent for
the collateral for the benefit of the Lender. The Company may not effect any conversions under the Lender Note until it has made
full cash payment for the portion of the Lender Note being converted.

 

 

3.Events of Default; Acceleration.

 

a.       The
principal amount of this Note is subject to prepayment in whole or in part upon the occurrence and during the continuance of any
of the following events (each, an “Event of Default”): the initiation of any bankruptcy, insolvency, moratorium, receivership
or reorganization by or against the Company, or a general assignment of assets by the Company for the benefit of creditors. Upon
the occurrence of any Event of Default, the entire unpaid principal balance of this Note and all of the unpaid interest accrued
thereon shall be immediately due and payable. The Company may offset amounts due to the Lender under this Note by similar amounts
that may be due to the Company by the Lender resulting from breaches under the Lender Note.

 

b.       No
remedy herein conferred upon the Lender is intended to be exclusive of any other remedy and each and every remedy shall be cumulative
and in addition to every other remedy hereunder, now or hereafter existing at law or in equity or otherwise. The Company accepts
and agrees that this Note is a full recourse note and that the Holder may exercise any and all remedies available to it under law.

 

4.Notices.

 

a. All notices, reports
and other communications required or permitted hereunder shall be in writing and may be delivered in person, by telecopy with written
confirmation, overnight delivery service or U.S. mail, in which event it may be mailed by first-class, certified or registered,
postage prepaid, addressed (i) if to a Lender, at such Lender’s address as the Lender shall have furnished the Company
in writing and (ii) if to the Company at such address as the Company shall have furnished the Lender(s) in writing.

 

b.       Each
such notice, report or other communication shall for all purposes under this Note be treated as effective or having been given
when delivered if delivered personally or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited
in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or, if sent
by electronic communication with confirmation, upon the delivery of electronic communication.

 

5.Miscellaneous.

 

a.       
Neither this Note nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed statement
in writing.

 

b.       No
failure or delay by the Lender to exercise any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege preclude any other right, power or privilege. The provisions of this Note are severable
and if any one provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, such invalidity
or unenforceability shall affect only such provision in such jurisdiction. This Note expresses the entire understanding of the
parties with respect to the transactions contemplated hereby. The Company and every endorser and guarantor of this Note regardless
of the time, order or place of signing hereby waives presentment, demand, protest and notice of every kind, and assents to any
extension or postponement of the time for payment or any other indulgence, to any substitution, exchange or release of collateral,
and to the addition or release of any other party or person primarily or secondarily liable.

 

c.       If
Lender retains an attorney for collection of this Note, or if any suit or proceeding is brought for the recovery of all, or any
part of, or for protection of the indebtedness respected by this Note, then the Company agrees to pay all costs and expenses of
the suit or proceeding, or any appeal thereof, incurred by the Lender, including without limitation, reasonable attorneys' fees.

 

d.       This
Note shall for all purposes be governed by, and construed in accordance with the laws of the State of Nevada (without reference
to conflict of laws).

 

e.       This
Note shall be binding upon the Company's successors and assigns, and shall inure to the benefit of the Lender's successors and
assigns.

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Company has caused this
Note to be executed by its duly authorized officer to take effect as of the date first hereinabove written.

 

 

EAGLE EQUITIES LLC

 

 

By:                                                                         

 

Title:                                                            

 

 

APPROVED:

 

INNERSCOPE HEARING TECHNOLOGIES, INC.

 

By:                                                                         

 

Title:Exhibit 10.4

 

FIRST AMENDMEN TO THE 

MANUFACTURING, DESIGN AND MARKETING AGREEMENT

 

This FIRST AMENDMENT TO
THE MANUFACTURING, DESIGN AND MARKETING AGREEMENT (this “Amendment”) is entered into by and between Zounds Hearing,
Inc., a Delaware corporation (“Subcontractor”) and InnerScope Hearing Technologies, Inc., a Nevada corporation,
(the “Manufacturer”) dated effective November 2, 2018 (the “Effective Date”). Subcontractor and Manufacturer
may also be referred to herein individually as “Party” or collectively as the “Parties”.

 

RECITALS

 

WHEREAS the Parties have
entered into an agreement effective October 3, 2018 (the “Original Agreement”) whereby the Subcontractor as the Manufacturer’s
subcontractor will provide design, technology, manufacturing and supply chain services to the Manufacturer to enable the Manufacturer
to manufacture hearing aids and related components and accessories to be sold under Manufacturer’s exclusive brand names
(the “Manufacturer’s Products”) through the Manufacturer’s various marketing and distribution channels
as well as Subcontractor’s branded hearing aids and accessories (“Zound Products”).

 

WHEREAS, the Parties now
desire to amend certain terms of the Original Agreement to clarify ongoing payment obligations of the Manufacturer.

 

NOW,
THEREFORE, in consideration of the promises and covenants contained herein, the Parties hereby agree as follows:

 

1.             
Amendment to Section 2. Section 2 of the Original Agreement is hereby deleted and replaced in its entirety with
the following new Section 2:

“2.     Technology
Access Fee.  Manufacturer will pay Subcontractor One Million and No/100 USD ($1,000,000) (the “Technology Access
Fee”). The Technology Access Fee will be paid as follows:

2.1       Cash
Installments. Manufacturer shall pay Subcontractor eight (8) cash installments of $75,000 each. The first cash installment
shall be paid no later than November 2, 2018 and each remaining installment shall be paid in subsequent four (4) week intervals
beginning on the four week anniversary of the payment date of the first installment until such time as a total of $600,000 of cash
installments has been paid.

 

2.2       Payments
for Product Purchases and Product Surcharges. Manufacturer also agrees to purchase units of Zounds Products according to
the following schedule:

 

Month Unit
Purchases

 

November 2018100 units

December 2018165 units

January 2019220 units

February 2019285 units

March 2019350 units

April 2019410 units

May 2019470 units

 

Such purchases are firm orders
and may not be cancelled or delayed for any reason. Payment for each order is due prior to shipment of the products and products
must be shipped no later than the 15th of any month. Manufacturer may choose the number and model of Zounds Products
to purchase so long as the total number of units purchased in any one month is equal to the firm order number of units set forth
above. In addition to the payment of the Product Price as set forth in Section 3.3 and the Royalties set forth in Section 3.5 of
the Original Agreement for each unit, the Manufacturer shall also pay a $200 per unit surcharge (the “Product Surcharge”)
for each unit that is ordered. The Product Surcharge shall only be paid on the first 2,000 units purchased by the Manufacturer.
At such time as a total of $400,000 in the form of the Product Surcharge has been paid by the Manufacturer to the Subcontractor,
the Product Surcharge shall be discontinued.

 

2.3       Full
Payment of Technology Access Fee. At such time as a total of $600,000 in the form of Cash Installments and $400,000 in
form of Product Surcharges for an aggregate total payment of $1,000,000 has been made by the Manufacturer to the Subcontractor
under this Section 2, then the Technology Access Fee shall have been paid in full.”

 

2.             
Defined Terms; Remaining Terms of the Original Agreement. Capitalized terms not defined herein shall be defined
under the terms of the Original Agreement. All remaining terms, rights and obligations of the Parties as set forth in the Original
Agreement that are not amended as set forth herein shall remain in full force and effect.

 

Signature Page to Follow

    	 	 	 

     

    

IN WITNESS WHEREFORE, the Parties have caused this Amendment to be executed by their duly authorized representatives as set forth
below to be effective as of the Effective Date above.

 

ZOUNDS
HEARING, Inc.

 

 

Date: ________________________By:

 

Name: Samuel L. Thomasson

 

Title: President &
Chief Executive Officer

 

Address: 6825 W. Galveston
Street, Suite 9

Chandler, AZ 85226

Fax: ______________________________

Email: ____________________________

 

 

 

 

Innerscope
Hearing Technologies, Inc. 

 

Date: ________________________By:________________________________

 

Name:        Matthew
Moore

 

Title:        CEO

 

Address: 2151 Professional
Drive 2nd Floor

Roseville, CA. 95616

Fax: (916) 218-4101

Email: matthew@innd.com

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