Note Agreement with Lucyd Ltd

Contract Categories: Business Finance - Note Agreements
EX-10.1 2 innovative_ex10-1.htm EXHIBIT 10.1

 

Exhibit 10.1

 

Schedul e 1 INNOVATIV E EYEWEAR, INC. CONVERTIBL E NOTE

 

 

 

 

CONTENTS Clause Page 1. DEFINITIONS AND INTERPRETATIO N ............................ . . ........ . . ....... . ...................... . ! LOA N NOTES 2 TERMS 2 4. NOT E CONVERSION 2 5. REPAYMEN T AN D PREPAYMENT 3 6. INTEREST 3 7. CERTIFICATES 4 WARRANTIES AN D REPRESENTATIONS 4 INDEMNIT Y AN D TA X GROSS UP 4 8. 9. 10 . U.S . SECURITIES AC T O F 1933 5 1 1 . HOLDER LIABILITIES 5 12. HOLDER OPTION 5 13. COST S AN D EXPENSES 5 14. COMMUNICATIONS 5 15. ENTTR E AGREEMENT 5 16. V A RI A TION 6 17. ASSIGNMENT 6 18. NO WAIVER 6 19. RIGHT S AN D REMEDIES 6 20. SEVERANCE 6 21. ARBITRATION 6 22 . GOVERNING LAW 6 SCHEDUL E 1 CERTIFICATE 8

 

 

 

 

THI S CONVERTIBL E NOTE i s executed a s a dee d e ffe ctive Marc h 1st 2024. PARTY Innovative Eyewear, Inc . a Florid a corporation ("Company"). BACKGROUND B y exercising th e powers conferred o n them by th e constitutional documents o f th e Company , the Company resolve d t o creat e unsecured conve rtibl e loan note s u p t o th e principa l amount of $ 1 ,250,000 US D an d t o constitute thes e loa n note s i n th e manne r set ou t i n thi s Instrument. OPERATIV E PROVISIONS 1. DEFINITIONS AND INTERPRETATION 1.1 I n thi s Instrument: "Commencemen t Date " mean s th e e ff ectiv e date o f thi s Instrument . "Group " mean s i n relation t o a company, that company , each an d an y subsidiar y o r holding company fro m tim e t o tim e o f that company , an d eac h an d any subsidiary from tim e to tim e o f a holding compan y of tha t company o r a n a ff iliate . "Holder" mean s Lucyd Lt d ( 09522087 ) o r it s assignee s which can include group companie s such a s Tekcapita l Europe Limited at it s sol e discretion . "Instrument " mean s thi s unsecured convertibl e loa n note, issued o n th e Commencement Dat e which i s for th e principal amount o f $ 1 , 250 , 00 0 USD , th e term s o f which are established herein . "Loa n Note " means the unsecure d loan note s o f th e Compan y constitute d b y this Instrument, o r th e principal amoun t fro m tim e t o tim e issued o r draw n dow n fo r a facility a s th e cas e ma y require . "Maturit y Date" mean s unless conve rt ed earlie r i n accordance wit h Claus e 4 o r delayed o n mutua l written agreement , th e principa l an d accrue d interes t o n thi s Ins tr umen t shal l be due an d payable eightee n month s fro m th e Commencement Dat e o f thi s Instrument . "Party" mean s th e Compan y o r th e Holder . 1.2 Cons tr uction 1.2.1 Unles s a contra ry indication appear s a reference i n thi s Instrument to: (a) a "person" include s any individual, fi rm, company , corporation, government, stat e o r agenc y o f a stat e o r an y association, trust, joint venture , consortiu m o r pa rtnership (whethe r o r no t havin g separate legal personality) ; a "regulation" includes any regulation , rule , o ff icia l directive, reques t or guidelin e (whethe r o r no t having th e force o f law) o f any governmental, intergovernmenta l o r supranationa l body, agency , department o r o f any regulatory , self - regulatory o r other authorit y o r organisation ; - 1 -

 

 

 

 

(c) reference s i n this Instrument t o th e singular includ e reference s t o th e plural an d vic e ve rs a; and (d) a provisio n oflaw i s a referenc e t o that provisio n a s amended o r re - enacted. 1.2.2 Section, Clause an d Schedul e h ea ding s ar e fo r eas e o f reference only. 2. LOAN NOTES 2. 1 The ag gr egat e principal amoun t o f th e Loa n Notes shall tota l US D $ 1 ,250,000. 2.2 Subjec t t o thi s Ins trument , th e Loa n Note s shal l ran k par i pass u equall y an d rateably without discriminatio n o r preference betwee n them an d a s unsecured obligations o f the Compan y unde r thi s Instrument . 2.3 Interest shal l b e payable o n th e Loan Notes i n accordanc e wit h Claus e 6. This Instrument ma y b e one o f a serie s which hav e th e exac t same fi nancial term s except a s t o th e date o f issuanc e an d tenor. 3. TERMS Pursuan t t o (i ) an y services agr ee men t which compensates a Grou p com pa n y o f Tekcapital pic , (ii) a directio n o f th e Boar d and/o r (iii) receip t o f an y fund s then th e Loan Note s shall b e issue d prio r t o th e Maturit y Date i n denomination s an d integral multiples o f U S D $ 0 . 0 I (o r suc h othe r multiple s o r currency a s th e Compan y shal l permit) an d shal l b e hel d subject t o th e term s se t ou t i n thi s Instrument . 4. NOT E CONVERSION 4.1 A t th e electio n o f th e Holder, th e Loa n Note s an d al l interes t accrue d o n them may be converte d anytim e a ft e r th e occurrence o f an y o f th e following event s (th e "Conversion Events") : 4.1.1 i n th e event tha t th e Company consummates a n equity fi nancing pursuan t to whic h i t raise s a n aggregate amount o f no t les s tha n $250,00 0 USD; 4.1.2 i n th e even t tha t th e Company enter s int o a tr ansaction pursuant t o whic h the Compan y sell s no t les s tha n 10 % o f th e Company's currentl y issu ed shares, excludin g an y an d al l convertible notes whic h ar e convertible int o shares ; and 4.1.3 i f th e Holder a t it s sol e discretion determines that i t wants t o convert th e Not e for an y reason. Upo n th e occurrenc e o f an y Conversio n Even t described i n Clause 4 . 1 , th e Holder may, b y writte n notic e t o th e Compan y (th e "Conversion Notice") , conver t all , o r a portio n of, outstandin g principa l an d accrue d interes t unde r th e Note int o tha t numbe r o f Company shares equa l t o th e quotient obtaine d b y dividing th e amoun t o f al l outstanding principal an d interes t o f th e Not e bein g converted b y th e Holder b y (i ) i n th e case o f Clause 4 . 1 . 1 an d Claus e 4 . 1 . 2 above , th e pe r share purchase price pai d fo r b y investor s unde r th e terms o f such eq uit y fi nancing , (ii ) i n th e cas e o f 4 . 1 . 3 above , th e closin g pric e o f th e Company's tradin g shares o n th e relevant public exchang e fo r th e day immediately preceding th e date o f conversio n o f th e Not e o r (iii) i n th e case o f 3 . 1 . 4 th e valuation o f th e las t equity

 

 

 

 

investment . I f the Holder covert s the note o r any portio n thereo f int o shares, an d th e shares i f no t fre e trading , the n the Holder o f th e convertible note ma y request that a registration statemen t i s fi le d withi n th e nex t 3 0 days t o registe r an y an d all shares th e Holder ha s in thei r possession . - 3 - 4.2 I n th e event tha t th e Holder doe s no t e ffe ct t o convert th e entir e Note an d accrue d interest thereunde r before th e Maturit y Date , th e Compan y shall repay i n cas h th e ful l principal amount an d al l accrue d interest o n th e Note . 4.3 Upo n conversio n o f the Loan Notes: th e Compan y shal l issu e certi fi cates evidencing th e shares ; and th e Holder shall (i) hav e th e same right s provided t o a purchaser o f th e share s in th e equity fi nancing , includin g without limitation , t o th e extent gr anted therein, information an d registration rights an d subject t o an y minimum shar e ownership threshold s an d (ii) join int o any such agreement entered int o between the Compan y an d a purchase r o f th e shares i n suc h equity fi nancin g evidencing the rights describe d i n Clause 4 . 3 . 2 (i) . 4.4 Th e Compan y shall no t b e require d t o issue fractional share s upo n exercis e o f th e Note . A s t o any fractiona l shar e tha t th e Holde r woul d otherwis e b e entitle d t o upo n conversion the n th e Compan y shal l pa y t o th e Holder the di ff erence i n cas h b y wir e transfer of immediately available funds . 5. REPAYMEN T AND PREPAYMENT 5.1 Repayment Th e Compan y shall repay i n ful l th e principa l amoun t an d al l accrue d interes t o n th e Note o n o r be for e th e Maturity Date. 5.2 Prepayment Th e Compan y ma y wit h th e prior written consen t o f th e Holder, no t t o b e unreasonably withheld , prepay th e whol e o f th e Not e a t any tim e prio r t o receip t o f a Conversio n Notice . There i s n o prepaymen t fee . 5.3 Lat e Payment I n th e even t that th e Compan y fails t o pay any amoun t due unde r thi s Instrumen t o n the Maturity Dat e the n i t shal l b e liabl e t o pa y $15 0 US D fo r eac h da y tha t th e overdu e amount remain s due an d payable. INTEREST 6.1 Th e Compan y wil l pay t o th e Noteholder s interes t (less any withholdin g tax ) o n the principa l amoun t o f th e Loa n Note s fo r th e tim e bein g hel d b y them a t a n annual rat e equal t o 10 pe r cen t with effec t fr o m th e dat e o f issu e o f th e Loa n Note s unti l th e Maturit y Date i n accordance wit h this Ins trument . 6.2 Interes t shal l accru e from day - to - da y an d shal l b e calculated o n th e basis o f a yea r o f 365 day s an d th e actua l num be r o f day s i n th e perio d fo r which i t i s paid.

 

 

 

 

6.3 - 4 - Interes t shal l be pai d or waive d (or , a t th e electio n o f th e Holde r i n it s sole converted ) simultaneously wit h th e conversio n o r repayment o f th e Loa n Notes. 7. CERTIFICATES Each Noteholde r shall b e entitle d withou t charg e t o a certi fi cat e fo r th e Loa n Note s held b y them. 8. WARRANTIE S AN D REPRESENTATIONS Th e Compan y makes th e representation s an d warrantie s set ou t i n thi s Claus e 8 t o the Holder. 8.1 Binding obligations Tha t th e obligation s expressed t o b e assume d b y i t i n thi s Instrumen t ar e legal, valid, bindin g an d enforceabl e obligations. 8.2 Non - con flic t wit h othe r obligations Th e entry int o an d perf ormanc e b y i t of , an d th e transactions contemplated b y this Instrumen t d o no t an d wil l no t conflic t with: 8.2. 1 an y la w o r regulation applicabl e t o th e Company; 8.2. 2 an y o f th e Company's organisationa l an d constitutional documents; or 8 . 2 . 3 an y agreemen t o r instrumen t bindin g upo n th e Company o r an y o f it s asset s to th e exten t suc h con fl ic t migh t reasonabl y be expected t o have a materia l adverse effect . 8.3 Powe r an d authori ty 8.3.1 I t ha s th e powe r t o ente r into , perform an d deliver , an d ha s taken all necessary actio n t o authoris e it s entry into , perfonnance an d deliver y of , thi s Instrument. 8.3.2 I t ha s dul y authorised an d approve d th e tenns o f thi s Instrumen t an d th e issuance o f thi s Instrument, i n eac h cas e i n accordance wit h th e provision s o f th e la w and its constitutiona l documents . 8.4 Validit y an d admissibilit y in evidence All Authorisations required o r desirable: 8.4. 1 t o enable i t lawfully t o ente r into , exercise it s right s an d compl y wit h i ts obligations; and 8.4. 2 t o mak e th e document s t o whic h i t i s a party admissibl e i n evidenc e in its jurisdictio n o f incorporation, hav e been obtaine d or effected an d ar e in ful l forc e an d effect. 9. INDEMNIT Y AND TA X GROS S UP 9.1 Th e Compan y shall indemni fy an d hol d harmles s th e Holde r fro m an d agains t an d in respec t o f al l losse s su ff ere d o r incurred b y th e Holder an d an y reductio n i n th e value of

 

 

 

 

- 5 - the Notes hel d b y the Holder , arisin g ou t o f o r i n connectio n wit h tax, stam p du t y , registratio n fee s o r other simila r costs. 9.2 Al l amounts se t out , o r expressed t o b e payable unde r thi s Ins t r ument shal l b e deemed to be exclusive o f any VA T o r simila r servic e charge ("Charge") an d if any amount is chargeable o n any suppl y the n th e Company shal l pa y t o th e Holde r (i n additio n t o an d at th e sam e tim e a s payin g th e consideration) an amount equa l t o th e Charge . 10. U.S. SECURITIES ACT OF 1933 10.1 The Company wil l compl y wit h al l regulation s o f th e United State s Securities Ac t o f 1933, a s amended (th e "Sec u ri t ies Act") ) wit h res pe c t to th e Notes. 11. HOLDER LIABILITIES Thi s Instrument does no t confe r upo n th e Holde r any liabilitie s a s a shareholde r prio r to th e conversion o f the Note. 12. HOLDER OPTION Th e Holder , i n its sol e discretion , ca n transfe r th e Not e t o a membe r o f the Grou p an d the Compan y wil l undertak e any actio n requeste d t o e ff ec t th e transfer. 13. COST S AN D EXPENSES Excep t a s provide d otherwise i n thi s In s tr ument , each Party shal l pay th e cost s and expenses incurre d b y it i n connection wit h this Instrument. 14. COMMUNICATIONS 14.1 Communications unde r thi s Ins tr umen t shal l b e i n Englis h i n writin g an d delivere d (i ) by han d o r sen t b y recorded delivery pos t (o r airmail , if th e destinatio n i s outside th e country o f origin ) t o its registere d address o r (ii ) b y emai l a s se t ou t below : 14.2 N o pres s release s o r any othe r forms o f communicatio n t o thir d parties , which mention bot h Parties , shal l b e release d withou t the prio r writte n conse n t an d approva l o f the Holder. 15. ENTIRE AGREEMENT 15.1 This Instrumen t constitute s th e entire agreement betwee n th e Parties an d supersede s and e x ti nguishe s all previou s dra f t s, a g r eements , arrangement s an d unders ta ndings between them , whethe r writte n o r oral , relating t o its subjec t matter . Holde r (Lucyd ltd) Emai l addresses: & ***@*** Physical address: 12 Ne w Fette r Lan e London , EC4A I J P United Kingdom Compan y (Innovative Eyewear Inc.) Emai l address: Physical address: 1 1900 Biscayne Blvd , Suite 630, North Miami, F l 33181

 

 

 

 

15.2 - 6 - Eac h Party acknowledges tha t i n enterin g int o thi s Instrument i t doe s not rel y on, an d shall hav e n o remedie s i n respec t of, any representation o r warranty (whether mad e innocently o r negligently) tha t i s no t se t ou t i n thi s Instrument . N o Party shal l have an y clai m for innocen t or negligent misrepresentatio n base d upo n an y statement i n thi s Instru ment . 15.3 Nothing i n thi s Clause shal l limit o r exclude an y liability fo r fraud. 16. VARIATION N o variation, amendment o r modi fi cation o f thi s Instrument shal l be effective unless i t is i n writing an d signed b y o r o n behal f o f each Party. 17. ASSIGNMENT Th e Compan y ma y no t assign o r transfe r it s right s and/o r obligations unde r thi s Ins tr ument withou t the prior written consen t fro m the Holder. 18. N O WAIVER N o failur e o r dela y b y a Part y t o exercis e an y righ t o r remed y provide d unde r this Instrumen t o r b y Jaw shal l constitut e a waive r o f tha t o r any othe r righ t o r remedy, nor shal l it preclude or restrict the furthe r exercis e o f that o r an y other righ t o r remedy . No singl e o r partia l exercis e o f suc h righ t o r remed y shal l preclude o r restric t th e further exercis e o f tha t o r an y other righ t o r remedy . 19. RIGHT S AN D REMEDIES Excep t a s expressl y provide d i n thi s Instrument , the rights an d remedie s provide d under thi s Instrumen t ar e i n addition to , an d no t exclusiv e of, an y right s o r remedie s provide d by law . 20. SEVERANCE 20.1 I f an y cour t o r com pe tent authority fmd s that any provision o f thi s Instrumen t (o r pa r t of an y provision) i s invalid , illegal o r unenforceable , tha t provisio n o r part - provisio n shall, t o th e exten t required , b e deeme d t o be deleted, an d th e validit y an d enforceabilit y o f the other provisions o f thi s Instrument s h all no t be a ff ected. 20.2 I f an y invalid , unenforceable o r illega l provision o f thi s Ins trument would b e valid, enforceable an d lega l i f som e par t o f i t wer e deleted , the provisio n shal l apply wit h the minimum m od ificatio n necessary t o mak e i t legal, vali d an d enforceable . 21. ARBITRATION An y disput e arisin g fro m or i n connectio n wit h thi s Instrumen t (including a dispute relating t o the existence , exercise , validity o r terminatio n o f thi s Instrumen t o r th e consequences o f it s nullit y o r an y non - contractua l obligatio n arising ou t or i n connectio n with this Instrument ) shal l b e referred t o an d fi nally resolved b y arbitratio n under th e Arbitration Rule s o f the Londo n Court o f Inte rn ationa l Arbitration (LCIA) b y a sol e arbitrator with th e sea t o f arbi tr ation i n London unde r the English language . 22. GOVERNIN G LAW Thi s Instrumen t an d an y non - contractua l obligations arising out o f o r i n connection with i t shal l be gove rn e d b y and construed i n accordanc e with Englis h Law.

 

 

 

 

EXECUTED - 7 - SIGNE D as a DEED B y INNOVATIVE EYEWEA R, IN C . . . k . : . . . . . . . . . . . . . . . . . . . . . . . N am e: Konrad Dabrowski Confirmed By LUCY D LTD . (Holder) M a x Inglis

 

 

 

 

SCHEDULE 1 CERTIFICATE INNOVATIV E EYEWEA R IN C (TH E "COMPANY") US D $[•] UNSECURE D CONVERTIBL E LOA N NOTES Certi fi cat e N o . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amount USD $ .................. . Issue d pursuan t t o th e B y Laws o f th e Company. Date d [•] THI S I S T O CERTIF Y THA T [•] of[• ] is/ar e th e registere d holder(s ) ofUS D $[• ] ofth e USD $[ • ] Convertibl e Loa n Note s (th e "Loa n Notes") constitute d by a n Instrumen t entere d int o b y the Company o n [ • ] (th e "Instrument" ) an d issue d wit h th e bene fi t of, an d subject t o th e provisions containe d i n th e Instrument. Wher e th e context permits , term s defined i n th e Instrument shal l hav e th e sam e meanin g when use d i n thi s Certificate. Thi s Certificat e ha s bee n execute d as a deed an d delivere d o n th e dat e set ou t above. - 8 - SIGNE D a s a DEED B y INNOVATIVE EYEWEA R INC. Witness: Name: Address: Occupation: