Document:

Exhibit 10.6

 

NEITHER THIS NOTE NOR THE
SECURITIES THAT ARE ISSUABLE TO THE HOLDER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR APPLICABLE STATE SECURITIES LAWS; OR
(II) IN THE ABSENCE OF AN OPINION OF COUNSEL IN CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (III)
UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 OR ANY EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

 

CONVERTIBLE PROMISSORY NOTE

 

Issuance Date: As of April 30, 2018

 Effective Date:
As of April 30, 2018

 

$525,000

 

FOR VALUE RECEIVED, SHIFT8 TECHNOLOGIES,
INC., a Nevada corporation “Borrower”), whose address is 1600 NE Loop 410, Suite 126, San Antonio,
TX 78209, hereby promises to pay to the order of ITN Partners, LLC, whose address is 5290 Summerlin Commons Way #1004, Fort Myers,
FL 33907, and its successors or assigns (collectively, the “Holder”), on or before the Maturity Date: (i) the
principal amount of Five Hundred Twenty Five Thousand and No/100 Dollars ($525,000.00); together with (ii) interest on the unpaid
principal balance hereof at the rate of eight percent (8%) per annum commencing as of the effective date hereof; together with
(iii) all other Obligations under the Pledge and Escrow Agreement (such Pledge and Escrow Agreement, as amended, supplemented,
renewed, or modified from time to time, the Pledge and Escrow Agreement”). This Promissory Note (this
note, and all modifications, extensions, future advances, supplements, and renewals thereof, and any substitutions therefor, hereinafter
referred to as the “Note”) shall be payable in accordance with the terms set forth below.

 

1. Payments.

 

(a)
Monthly Payments. The Borrower shall make monthly payments of principal and interest to the Holder, commencing on the
30th day of May 2018 and on the 30th day of each consecutive calendar month thereafter while this Note
is outstanding and two payments of the principal amount, (1) $100,000 on or before June 1, 2018 and (2) the balance of the
outstanding principal amount plus any accrued interest, without demand, on April 30, 2020, (the “Maturity
Date”). Payments are based on a 60-month amortization schedule attached hereto as Exhibit
“A”. In the event the 30th day of any calendar month on which a payment is due
hereunder is not a Business Day, then said payment shall be due on the first Business Day thereafter occurring.

 

(b) Prepayment
Prior to Maturity. The Borrower, at its option, shall have the right to prepay this Note in full and for cash, at any
time prior to the Maturity Date, with three (3) Business Days advance written notice (the “Prepayment
Notice”) to the Holder. The amount required to prepay this Note in full pursuant to this Section 1(b) shall be
equal to: (i) the aggregate principal amount then outstanding under this Note; plus (ii) all accrued and unpaid interest due
under this Note as of the prepayment date; plus (iii) all other costs, fees, charges, and all other Obligations due and
payable (collectively, the “Prepayment Amount”). The Borrower shall deliver the Prepayment Amount
to the Holder on the third (3rd) Business Day after the date of the Prepayment Notice.

 

    1

     

    

 

(c)
Payment at Maturity. The principal amount of this Note, together with all accrued and unpaid interest, and all other
sums due and payable hereunder shall be due and payable in full to the Holder by no later than 5:00 P.M., EST, on the
Maturity Date.

 

(d)
Payment of Default Interest. In the event that any payment is not made when due, either of principal or interest, and
whether upon maturity or as a result of acceleration, interest shall thereafter accrue at the rate per annum equal to the
lesser of (a) the maximum non-usurious rate of interest permitted by the laws of the State of Florida or the United States of
America, whichever shall permit the higher rate or (b) twenty percent (20%) per annum, from such date until the entire
balance of principal and accrued interest on this Note has been paid (the “Default Rate”).

 

(e)
Late Fee. If all or any portion of the payments of principal, interest, or other charges due hereunder are not
received by the Holder within five (5) days of the date such payment is due, then the Borrower shall pay to the Holder a late
charge (in addition to any other remedies that Holder may have) equal to five percent (5%) of each such unpaid payment or
sum. Any payments returned to Holder for any reason must be covered by wire transfer of immediately available funds to an
account designated by Holder, plus a $100.00 administrative fee charge. Holder shall have no responsibility or liability for
payments purportedly made hereunder but not actually received by Holder, and the Borrower shall not be discharged from
the obligation to make such payments due to loss of same in the mails or due to any other excuse or justification ultimately
involving facts where such payments were not actually received by Holder.

 

(f) General
Payment Provisions. Interest shall be calculated on the basis of a 360- day year, and shall accrue daily on the outstanding
principal amount outstanding from time to time for the actual number of days elapsed, commencing as of the effective date hereof
until payment in full of the outstanding principal, together with all accrued and unpaid interest, and other amounts which may
become due hereunder, has been received and cleared to the Holder. All payments received and actually collected by Holder hereunder
shall be applied first to any costs, fees and expenses due or incurred hereunder, second to accrued and unpaid interest hereunder,
and last to reduce the outstanding principal balance of this Note. All payments on this Note shall be made in lawful money of
the United States of America in the manner required by the Credit Agreement.

 

2. Secured
Nature of Note. This Note is being issued in connection with the Pledge and Escrow Agreement. The indebtedness
evidenced by this Note is secured by Collateral of the Borrower and various other instruments and documents referred to in
the Pledge and Escrow Agreement. All of the agreements, conditions, covenants, provisions, representations, warranties and
stipulations contained the Pledge and Escrow Agreement which are to be kept and performed by the Borrower are hereby made a
part of this Note to the same extent and with the same force and effect as if they were fully set forth herein, and
the Borrower covenants and agrees to keep and perform them, or cause them to be kept or performed, strictly in accordance
with their terms.

 

    2

     

    

 

3.
Defaults and Remedies.

 

(a) Events of Default. The occurrence
of any of the following events shall constitute an “Event of Default” hereunder: (i) the Borrower shall
fail to pay any installment of interest, principal, or other sums due under this Note when any such payment shall be due and payable;
(ii) the Borrower or any of its Subsidiaries makes an assignment for the benefit of creditors; (iii) any order or decree is rendered
by a court which appoints or requires the appointment of a receiver, liquidator or trustee for the Borrower or any of its Subsidiaries,
and the order or decree is not vacated within thirty (30) days from the date of entry thereof; (iv) any order or decree is rendered
by a court adjudicating the Borrower or any of its Subsidiaries, insolvent, and the order or decree is not vacated within thirty
(30) days from the date of entry thereof; (v) the Borrower or any of its Subsidiaries files a petition in bankruptcy under the
provisions of any bankruptcy law or any insolvency act; (vi) the Borrower or any of its Subsidiaries admits, in writing, its inability
to pay its debts as they become due; (vii) a proceeding or petition in bankruptcy is filed against the Borrower or any of its
Subsidiaries, and such proceeding or petition is not dismissed within thirty (30) days from the date it is filed; (viii) the Borrower
or any of its Subsidiaries files a petition or answer seeking reorganization or arrangement under the bankruptcy laws or any law
or statute of the United States or any other foreign country or state; (ix) the failure to meet the financial projections (measured
on a quarterly basis) attached as Exhibit “C” to this Note and such failure is not cured within ninety
(90) days after written notice of such failure is delivered by Holder to the Borrower; or (x) the Borrower shall fail to perform,
comply with or abide by any of the material stipulations, agreements, conditions and/or covenants contained in this Note or the
Pledge and Escrow Agreement on the part of the Borrower to be performed, complied with, or abided by, and such failure is not
cured within sixty (60) days after written notice of such failure is delivered by Holder to the Borrower.

 

(b)
Remedies. Upon the occurrence of an Event of Default, the interest on this Note shall immediately accrue at the
Default Rate, and, in addition to all other rights or remedies the Holder may have, at law or in equity, the Holder may, in
its sole discretion, accelerate full repayment of all principal amounts outstanding hereunder, together with accrued interest
thereon, together with all attorneys’ fees, paralegals’ fees and costs and expenses incurred by the Holder in
collecting or enforcing payment hereof (whether such fees, costs or expenses are incurred in negotiations, all trial and
appellate levels, administrative proceedings, bankruptcy proceedings or otherwise), and together with all other
Obligations due by the Borrower hereunder, and all such amounts shall thereafter accrue interest at the Default Rate, all
without any relief whatsoever from any valuation or appraisement laws, and payment thereof may be enforced and recovered in
whole or in part at any time by one or more of the remedies provided to the Holder at law, in equity, or under this Note or
the Pledge and Escrow Agreement. In connection with the Holder’s rights hereunder upon an Event of Default, the Holder
need not provide, and the Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and the
Holder may immediately enforce any and all of its rights and remedies hereunder and all other remedies available to it in
equity or under applicable law.

 

(c)  Exercise
of Remedies. The remedies of the Holder as provided herein and in the Pledge and Escrow Agreement shall be cumulative and
concurrent and may be pursued singly, successively or together, at the sole discretion of the Holder, and may be exercised as
often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed
as a waiver or release thereof.

 

4.  Lost or
Stolen Note. Upon notice to the Borrower of the loss, theft, destruction or mutilation of this Note, and, in the case of
loss, theft or destruction, of an indemnification undertaking by the Holder to the Borrower in a form reasonably acceptable
to the Borrower and customary for similar circumstances in commercial lender/borrower circumstances, and, in the case of
mutilation, upon surrender and cancellation of the mutilated Note, the Borrower shall promptly execute and deliver a new Note
of like tenor and date and in substantially the same form as this Note.

 

5. Cancellation. After
all principal, accrued interest, and all other Obligations at any time owed on this Note have been indefeasibly paid in full,
and there are no existing or outstanding commitments for Holder to make any loans or other advances of credit to Borrower or
otherwise, this Note shall be canceled by Holder.

 

    3

     

    

 

6.
Waivers. Borrower hereby waives and releases all benefit that might accrue to the Borrower by virtue of any present or
future laws exempting any property that may serve as security for this Note, or any other property or Collateral, real or
personal, or any part of the proceeds arising from any sale of any such property or Collateral, from attachment, levy, or
sale under execution, exemption from civil process, or extension of time for payment, including, without limitation, any and
all homestead exemption rights of the Borrower; and the Borrower agrees that any property that may be levied upon pursuant to
a judgment obtained by virtue hereof, on any writ of execution issued thereon, may be sold upon any such writ in whole or
in part in any order or manner desired by Holder. In addition, the Borrower and all others who are, or may become liable for
the payment hereof: (i) severally waive presentment for payment, demand, notice of nonpayment or dishonor, protest and notice
of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default, or
enforcement of the payment of this Note; (ii) expressly consent to all extensions of time, renewals or postponements of time
of payment of this Note from time to time prior to or after the maturity of this Note without notice, consent or further
consideration to any of the foregoing; (iii) expressly agree that the Holder shall not be required first to institute any
suit, or to exhaust its remedies against the Borrower, or any other Person or party to become liable hereunder or against any
Collateral that may secure this Note in order to enforce the payment of this Note; and (iv) expressly agree that,
notwithstanding the occurrence of any of the foregoing (except the express written release by the Holder of any such Person),
the undersigned shall be and remain, directly and primarily liable for all sums due under this Note.

 

7.
Governing Law; Venue. The Borrower irrevocably agrees that any dispute arising under, relating to, or in connection with, directly or indirectly, this Note or related to any matter which is the subject of or incidental
to this Note (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive jurisdiction
and venue of the state and/or federal courts located in Lee County, Florida. This provision is intended to be a “mandatory”
forum selection clause and governed by and interpreted consistent with Florida law. Borrower hereby consents to the exclusive jurisdiction
and venue of any state or federal court having its situs in said county (or to any other jurisdiction or venue, if Holder so elects),
and waives any objection based on forum non conveniens. Borrower hereby waives personal service of any and all process and consents
that all such service of process may be made by certified mail, return receipt requested, directed to Borrower, as applicable,
as set forth herein or in the manner provided by applicable statute, law, rule of court or otherwise. Except for the foregoing
mandatory forum selection clause, all terms and provisions hereof and the rights and obligations of the Borrower and Holder hereunder
shall be governed, construed and interpreted in accordance with the laws of the State of Nevada, without reference to conflict
of laws principles.

 

8.
Expenses. The Borrower agrees to pay and reimburse the Holder upon demand for all costs
and expenses (including, without limitation, attorneys’ fees and expenses) that the Holder may incur in connection with (i)
the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise
available to it (whether at law, in equity or otherwise); or (ii) the failure by the Borrower to perform or observe any of the
provisions hereof. The provisions of this Section 8 shall survive the execution and delivery of this Note, the repayment of any
or all of the Obligations, and the termination of this Note.

 

9. Waiver of Jury
Trail. THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY WITH
RESPECT TO ANY LITIGATION BASED ON THIS NOTE, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS NOTE OR THE PLEDGE AND ESCROW
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF OR BETWEEN ANY PARTY
HERETO, AND THE BORROWER AGREES AND CONSENTS TO THE GRANTING TO HOLDER OF RELIEF FROM ANY STAY ORDER WHICH MIGHT BE ENTERED BY
ANY COURT AGAINST HOLDER AND TO ASSIST HOLDER IN OBTAINING SUCH RELIEF. THIS PROVISION IS A MATERIAL INDUCEMENT FOR HOLDER ACCEPTING
THIS NOTE FROM THE BORROWER. THE BORROWER’S REASONABLE RELIANCE UPON SUCH INDUCEMENT IS HEREBY ACKNOWLEDGED.

 

    4

     

    

 

10.
Specific Shall Not Limit General; Construction. No specific provision contained in this
Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the
Borrower and the Holder and shall not be construed against any person as the drafter hereof.

 

11.
Failure or Indulgence Not Waiver. Holder shall not be deemed, by any act of omission or
commission, to have waived any of its rights or remedies hereunder or under the Pledge and Escrow Agreement, unless such waiver
is in writing and signed by Holder, and then only to the extent specifically set forth in the writing. A waiver on one event shall
not be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent event.

 

12.
Notice. Notice shall be given to each party at the address for such party set forth in the
Credit Agreement, and such notice shall be deemed properly given in accordance with the notice provisions set forth in the Credit
Agreement.

 

13.
Usury Savings Clause. Notwithstanding any provision in this Note or the Pledge and
Escrow Agreement, the total liability for payments of interest and payments in the nature of interest, including, without limitation,
all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed
by the usury laws of the jurisdiction governing this Note or any other applicable law. In the event the total liability of payments
of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions or other sums which
may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of interest, which for
any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction governing this Note,
all sums in excess of those lawfully collectible as interest for the period in question shall, without further agreement or notice
by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance of this Note immediately
upon receipt of such sums by the Holder hereof, with the same force and effect as though the Borrower had specifically designated
such excess sums to be so applied to the reduction of such outstanding principal balance and the Holder hereof had agreed to accept
such sums as a penalty-free payment of principal; provided, however, that the Holder of this Note may, at any time and from time
to time, elect, by notice in writing to the Borrower, to waive, reduce, or limit the collection of any sums in excess of those
lawfully collectible as interest rather than accept such sums as a prepayment of the outstanding principal balance. It is the intention
of the parties that the Borrower do not intend or expect to pay nor does the Holder intend or expect to charge or collect any interest
under this Note greater than the highest non-usurious rate of interest which may be charged under applicable law.

 

14.
Binding Effect. This Note shall be binding upon the Borrower and the successors and
assigns of the Borrower and shall inure to the benefit of Holder and the successors and assigns of Holder.

 

15. Severability. In
the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal, or
unenforceable, in whole or in part, in any respect, or in the event that any one or more of the provisions of this Note
operates or would prospectively operate to invalidate this Note, then and in any of those events, only such provision or
provisions shall be deemed null and void and shall not affect any other provision of this Note. The remaining provisions of
this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced, or disturbed
thereby.

 

    5

     

    

 

16.
Participations. Holder may from time to time sell or assign, in whole or in part, or grant
participations in this Note and/or the obligations evidenced hereby, without any requirement to obtain the Borrower’s written
consent or approval. The holder of any such sale, assignment or participation, if the applicable agreement between Holder and such
holder so provides, shall be: (a) entitled to all of the rights, obligations and benefits of Holder (to the extent of such holder’s
interest or participation); and (b) deemed to hold and may exercise the rights of setoff or banker’s lien with respect to
any and all obligations of such holder to the Borrower (to the extent of such holder’s interest or participation), in each
case as fully as though the Borrower was directly indebted to such holder. Holder may in its discretion give notice to the Borrower
of such sale, assignment or participation; however, the failure to give such notice shall not affect any of Holder’s or such
holder’s rights hereunder.

 

17.
Amendments. The provisions of this Note may be changed only by a written agreement
executed by the Borrower and Holder.

 

18.
Board Representation. In consideration for this Note, Holder will be allowed to appoint a
director to the Board of Directors of T3 Communications, Inc., a subsidiary of the Borrower.

 

19.
Conversion of Note. At any time and from time to time while this Note is outstanding, but
only upon: (i) the occurrence of an Event of Default under this Note or the Pledge and Escrow Agreement; or (ii) mutual agreement
between the Borrower and the Holder, this Note may be, at the sole option of the Holder, convertible into shares of common stock
of the Borrower’s parent corporation, Digerati Technologies, Inc. (the “Common Stock”), in accordance
with the terms and conditions set forth below.

 

(a)
Voluntary Conversion. At any time while this Note is outstanding, but only upon:
(i) the occurrence of an Event of Default under this Note or the Pledge and Escrow Agreement; or (ii) mutual agreement between
the Borrower and the Holder, the Holder may convert all or any portion of the outstanding principal, accrued and unpaid interest,
Premium, if applicable, and any other sums due and payable hereunder (such total amount, the “Conversion Amount”)
into shares of Common Stock (the “Conversion Shares”) at a price equal to: (i) the Conversion Amount
(the numerator); divided by (ii) a conversion price of $1.50 per share of Common Stock, which price shall be indicated in
the conversion notice (in the form attached hereto as Exhibit “B”, the “Conversion
Notice”) (the denominator) (the “Conversion Price”). The Holder shall submit a Conversion
Notice indicating the Conversion Amount, the number of Conversion Shares issuable upon such conversion, and where the Conversion
Shares should be delivered.

 

(b)
Mechanics of Conversion. The conversion of this Note shall be conducted in the
following manner:

 

(i)
To convert this Note into shares of Common Stock on any date set forth
in the Conversion Notice by the Holder (the “Conversion Date”), the Holder shall transmit by facsimile
or electronic mail (or otherwise deliver) a copy of the fully executed Conversion Notice to the Borrower (or, under certain circumstances
as set forth below, by delivery of the Conversion Notice to the Borrower’s transfer agent).

 

(ii)
Borrower’s Response. Upon receipt by the Borrower of a copy of a
Conversion Notice, the Borrower shall as soon as practicable, but in no event later than three (3) Business Days after receipt
of such Conversion Notice, send, via facsimile or electronic mail (or otherwise deliver) a confirmation of receipt of such Conversion
Notice (the “Conversion Confirmation”) to the Holder indicating that the Borrower will process such Conversion
Notice in accordance with the terms herein.

 

    6

     

    

 

(iii) Record Holder. The Person(s) entitled to receive the shares of Common
Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder(s) of such shares of Common
Stock as of the Conversion Date.

 

(iv)
Failure to Deliver Certificates. If in the case of any Conversion Notice,
the certificate or certificates are not delivered to or as directed by the Holder by the date required hereby, the Holder shall
be entitled to elect by written notice to the Borrower at any time on or before its receipt of such certificate or certificates,
to rescind such Conversion Notice, in which event the Borrower shall promptly return to the Holder any original Note delivered
to the Borrower and the Holder shall promptly return to the Borrower the Common Stock certificates representing the principal amount
of this Note unsuccessfully tendered for conversion to the Borrower.

 

(v)
Transfer Taxes. The issuance of certificates for shares of the Common
Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes,
or any other issuance or transfer fees of any nature or kind that may be payable in respect of the issue or delivery of such certificates,
any such taxes or fees, if payable, to be paid by the Borrower.

 

[Signature page follows]

 

    7

     

    

 

IN WITNESS WHEREOF, the Borrower
has caused this Note to be executed as of the Effective Date set forth above.

 

BORROWER:

 

	SHIFT8 TECHNOLOGIES, INC.,

 a Nevada corporation	 
	 	 	 
	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	CEO	 

 

[Signature page to Convertible Promissory
Note]

 

    8

     

    

 

EXHIBIT “A”

 

ITN Partners,
LLC.

Repayment Schedule

 

	Term	60	 	Months	 	 
	Interest rate	8%	 	** 1ST Interest and Principal **	6/1/2018	$   100,000.00
	Borrowing base	$ 525,000.00	 	** 2ND Interest & Principal **	4/30/2020	$   282,695.47

 

** As per Section “1. Payments”

 

	 	 	 	 	Beginning
 Balance	 	 	Interest	 	 	Principal	 	 	Total
 Payment	 	 	Ending
 Balance	 
	1	 	5/30/2018	 	$	525,000.00	 	 	$	3,500.00	 	 	$	7,145.10	 	 	$	10,645.10	 	 	$	517,854.90	 
	 	 	6/1/2018	 	$	517,854.90	 	 	$	-	 	 	$	100,000.00	 	 	$	100,000.00	 	 	$	417,854.90	 
	2	 	6/30/2018	 	$	417,854.90	 	 	$	2,785.70	 	 	$	5,803.80	 	 	$	8,589.50	 	 	$	412,051.10	 
	3	 	7/30/2018	 	$	412,051.10	 	 	$	2,747.01	 	 	$	5,842.49	 	 	$	8,589.50	 	 	$	406,208.61	 
	4	 	8/30/2018	 	$	406,208.61	 	 	$	2,708.06	 	 	$	5,881.44	 	 	$	8,589.50	 	 	$	400,327.16	 
	5	 	9/30/2018	 	$	400,327.16	 	 	$	2,668.85	 	 	$	5,920.65	 	 	$	8,589.50	 	 	$	394,406.51	 
	6	 	10/30/2018	 	$	394,406.51	 	 	$	2,629.38	 	 	$	5,960.12	 	 	$	8,589.50	 	 	$	388,446.39	 
	7	 	11/30/2018	 	$	388,446.39	 	 	$	2,589.64	 	 	$	5,999.86	 	 	$	8,589.50	 	 	$	382,446.53	 
	8	 	12/30/2018	 	$	382,446.53	 	 	$	2,549.64	 	 	$	6,039.86	 	 	$	8,589.50	 	 	$	376,406.67	 
	9	 	1/30/2019	 	$	376,406.67	 	 	$	2,509.38	 	 	$	6,080.12	 	 	$	8,589.50	 	 	$	370,326.55	 
	10	 	2/28/2019	 	$	370,326.55	 	 	$	2,468.84	 	 	$	6,120.66	 	 	$	8,589.50	 	 	$	364,205.90	 
	11	 	3/30/2019	 	$	364,205.90	 	 	$	2,428.04	 	 	$	6,161.46	 	 	$	8,589.50	 	 	$	358,044.44	 
	12	 	4/30/2019	 	$	358,044.44	 	 	$	2,386.96	 	 	$	6,202.54	 	 	$	8,589.50	 	 	$	351,841.90	 
	13	 	5/30/2019	 	$	351,841.90	 	 	$	2,345.61	 	 	$	6,243.89	 	 	$	8,589.50	 	 	$	345,598.01	 
	14	 	6/30/2019	 	$	345,598.01	 	 	$	2,303.99	 	 	$	6,285.51	 	 	$	8,589.50	 	 	$	339,312.50	 
	15	 	7/30/2019	 	$	339,312.50	 	 	$	2,262.08	 	 	$	6,327.42	 	 	$	8,589.50	 	 	$	332,985.08	 
	16	 	8/30/2019	 	$	332,985.08	 	 	$	2,219.90	 	 	$	6,369.60	 	 	$	8,589.50	 	 	$	326,615.48	 
	17	 	9/30/2019	 	$	326,615.48	 	 	$	2,177.44	 	 	$	6,412.06	 	 	$	8,589.50	 	 	$	320,203.42	 
	18	 	10/30/2019	 	$	320,203.42	 	 	$	2,134.69	 	 	$	6,454.81	 	 	$	8,589.50	 	 	$	313,748.61	 
	19	 	11/30/2019	 	$	313,748.61	 	 	$	2,091.66	 	 	$	6,497.84	 	 	$	8,589.50	 	 	$	307,250.77	 
	20	 	12/30/2019	 	$	307,250.77	 	 	$	2,048.34	 	 	$	6,541.16	 	 	$	8,589.50	 	 	$	300,709.60	 
	21	 	1/30/2020	 	$	300,709.60	 	 	$	2,004.73	 	 	$	6,584.77	 	 	$	8,589.50	 	 	$	294,124.83	 
	22	 	2/29/2020	 	$	294,124.83	 	 	$	1,960.83	 	 	$	6,628.67	 	 	$	8,589.50	 	 	$	287,496.17	 
	23	 	3/30/2020	 	$	287,496.17	 	 	$	1,916.64	 	 	$	6,672.86	 	 	$	8,589.50	 	 	$	280,823.31	 
	24	 	4/30/2020	 	$	280,823.31	 	 	$	1,872.16	 	 	$	280,823.31	 	 	$	282,695.47	 	 	$	(0.00	)
	 	 	 	 	 	Total:	 	 	$	57,309.56	 	 	$	525,000.00	 	 	$	582,309.57	 	 	 	 	 

 

    9

     

    

 

EXHIBIT “B”

 

NOTICE OF CONVERSION

 

The undersigned
hereby elects to convert principal, interest, Premium, if applicable, and/or other sums due under the Convertible Promissory Note
(the “Note”) of SHIFT8 TECHNOLOGIES, INC., a Nevada corporation (the “Company”),
into shares of common stock (the “Common Shares”), of the Company’s parent corporation, Digerati
Technologies, Inc., in accordance with the conditions of the Note, as of the date written below.

 

	Conversion calculations	 
	Effective Date of Conversion:	     
	Principal Amount, Interest, Premium, if applicable, and other Sums to be Converted:	 
	Number of Common Shares to be Issued:	 

 

	[HOLDER]	 
	 	 	 
	By:	          	 
	Name:	 	 
	Title:	 	 
	Address:	 	 
	 	 	 

 

    10

     

    

 

PLEDGE AND ESCROW AGREEMENT

 

THIS PLEDGE
AND ESCROW AGREEMENT (”Agreement”) is made and entered into as of April 30, 2018 and made effective
as of April 30, 2018, by and between SHIFT8 TECHNOLOGIES, INC., a Nevada corporation (the “Pledgor”),
and ITN Partners, LLC (the “Secured Party”), with the joinder of Josh P. Reel, Managing Member of the
Secured Party (“Escrow Agent”).

 

RECITALS

 

WHEREAS,
the Secured Party has made certain financial accommodations for the benefit of the Pledgor pursuant to that certain Convertible
Promissory Note of even date herewith among the Pledgor and Secured Party, among others (the “Note”);
and

 

WHEREAS, in order to secure the
full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all of the Pledgor’s
Obligations to the Secured Party, or any successor to the Secured Party, under the Note, Pledgor has agreed to irrevocably pledge
to the Secured Party 51% of the issued and outstanding shares of the capital stock of its Subsidiaries, including T3 COMMUNICATIONS,
INC., a Florida corporation, and T3 ACQUISITION, INC., a Florida corporation (each of the foregoing entities hereinafter
referred to individually as a “Company” and collectively as the “Companies”)(such
shares of all such Companies hereinafter referred to as the “Pledged Securities”);

 

NOW,
THEREFORE, in consideration of the mutual covenants, agreements, warranties, and representations herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

 

1. Recitals, Construction and Defined
Terms. The recitations set forth in the preamble of this Agreement are true and correct and incorporated herein by this
reference. In this Agreement, unless the express context otherwise requires: (i) the words “herein,”
“hereof” and “hereunder” and words of similar import refer to this Agreement as a whole and not to
any particular provision of this Agreement; (ii) references to the words “Section” or “Subsection”
refer to the respective Sections and Subsections of this Agreement, and references to “Exhibit” or
“Schedule” refer to the respective Exhibits and Schedules attached hereto; and (iii) wherever the word
“include,” “includes,” “including” or words of similar import are used in this Agreement,
such words will be deemed to be followed by the words “without limitation.”

 

2. Pledge. In order to secure the full
and timely payment and performance of all of the Pledgor’s Obligations to the Secured Party under the Note, the Pledgor
hereby transfers, pledges, assigns, sets over, delivers and grants to the Secured Party a continuing lien and security
interest in and to all of the following property of Pledgor, both now owned and existing and hereafter created, acquired and
arising (all being collectively hereinafter referred to as the “Collateral”) and all right, title and
interest of Pledgor in and to the Collateral, to-wit:

 

(a) the
Pledged Securities owned by Pledgor;

 

    1

     

    

 

(b)  any certificates representing or evidencing the Pledged Securities, if any;

 

(c)  any and all distributions thereon, and cash and non-cash proceeds and products thereof, including all dividends, cash, distributions,
income, profits, instruments, securities, stock dividends, distributions of capital stock or other securities of the Companies
and all other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon conversion
of the Pledged Securities, whether in connection with stock splits, recapitalizations, merger, conversions, combinations, reclassifications,
exchanges of securities or otherwise; and

 

(d)
any and all voting, management, and other rights, powers and privileges accruing or incidental to an owner of the Pledged Securities
and the other property referred to in subsections 2(a) through 2(c) above.

 

3.
Transfer of Pledged Securities. Simultaneously with the execution of this Agreement, Pledgor shall deliver to the Escrow
Agent: (i) if the Pledged Securities are evidenced by physical certificates, then all original certificates representing or evidencing
the Pledged Securities, together with undated, irrevocable and duly executed assignments or stock powers thereof in form and substance
acceptable to Secured Party executed in blank by Pledgor; (ii) if the Pledged Securities are not represented by physical certificates,
then undated, irrevocable and duly executed assignment instruments in form and substance acceptable to Secured Party, executed
in blank by Pledgor; and (iii) all other property, instruments, documents and papers comprising, representing or evidencing the
Collateral, or any part thereof, together with proper instruments of assignment or endorsement, as Secured Party may request or
require, duly executed by Pledgor (collectively, the “Transfer Documents”). The Pledged Securities and
other Transfer Documents (collectively, the “Pledged Materials”) shall be held by the Escrow Agent pursuant
to this Agreement until the full payment and performance of all of the Obligations, the termination or expiration of this Agreement,
or delivery of the Pledged Materials in accordance with this Agreement. In addition, all non-cash dividends, dividends paid or
payable in cash or otherwise in connection with a partial or total liquidation or dissolution of any of the Companies, instruments,
securities and any other distributions, whether paid or payable in cash or otherwise, made on or in respect of the Pledged Securities,
whether resulting from a subdivision, combination, or reclassification of the outstanding capital stock or other securities of
the Companies, or received in exchange for the Pledged Securities or any part thereof, or in redemption thereof, as a result of
any merger, consolidation, acquisition, or other exchange of assets to which the Companies may be a party or otherwise, or any
other property that constitutes part of the Collateral from time to time, including any additional certificates representing any
portion of the Collateral hereafter acquired by the Pledgor, shall be immediately delivered or cause to be delivered by Pledgor
to the Escrow Agent in the same form as so received, together with proper instruments of assignment or endorsement duly executed
by Pledgor.

 

4.
Security Interest Only. The security interests in the Collateral granted to Secured Party hereunder are granted as security
only and shall not subject the Secured Party to, or transfer or in any way affect or modify, any obligation or liability of the
Pledgor with respect to any of the Collateral or any transaction in connection therewith.

 

5.
Record Owner of Collateral. Until an “Event of Default” (as hereinafter defined) under this Agreement shall
occur, the Pledged Securities shall remain registered in the name of the Pledgor. Pledgor will promptly give to the Secured Party
copies of any notices or other communications received by it and with respect to Collateral registered in the name of Pledgor.

 

    2

     

    

 

6. Rights
Related to Pledged Securities. Subject to the terms of this Agreement, unless and until an Event of Default under this
Agreement shall occur:

 

(a)
Pledgor shall be entitled to exercise any and all voting, management, and other
rights, powers and privileges accruing to an owner of the Pledged Securities, or any part thereof, for any purpose consistent with
the terms of this Agreement; provided, however, such action would not materially and adversely affect the rights inuring to Secured
Party under the Note, or adversely affect the remedies of the Secured Party under the Note, or the ability of the Secured Party
to exercise same.

 

(b)
Upon the occurrence of an Event of Default, all rights of the Pledgor in and to the
Pledged Securities and all other Collateral shall cease and all such rights shall immediately vest in Secured Party, as may be
determined by Secured Party, although Secured Party shall not have any duty to exercise such rights or be required to sell or to
otherwise realize upon the Collateral, as hereinafter authorized, or to preserve the same, and Secured Party shall not be responsible
for any failure to do so or delay in doing so. To effectuate the foregoing, Pledgor hereby grants to Secured Party a proxy to vote
the Pledged Securities for and on behalf of Pledgor, which proxy is irrevocable and coupled with an interest and which proxy shall
be effective upon the occurrence of any Event of Default. Such proxy shall remain in effect so long as the Obligations remain outstanding.
The Companies hereby agree that any vote by Pledgor in violation of this Section 6 shall be null, void and of no force or effect.
Furthermore, all dividends or other distributions received by the Pledgor shall be subject to delivery to Escrow Agent in accordance
with Section 3 above, and until such delivery, any of such dividends and other distributions shall be received in trust for the
benefit of the Secured Party, shall be segregated from other property or funds of the Pledgor and shall be forthwith delivered
to Escrow Agent in accordance with Section 3 above.

 

7. Release of Pledged
Securities. Upon the timely payment in full of all of the Obligations in accordance with the terms thereof, Secured Party
shall notify the Escrow Agent in writing to such effect. Upon receipt of such written notice, the Escrow Agent shall return
all of the Pledged Materials in Escrow Agent’s possession to the Pledgor, whereupon any and all rights of Secured Party
in and to the Pledged Materials and all other Collateral shall be terminated.

 

8. Representations, Warranties, and
Covenants of the Pledgor and the Companies. The Pledgor and each of the Companies hereby covenant, warrant and represent,
for the benefit of the Secured Party, as follows (the following representations and warranties shall be made as of the date of
this Agreement and as of each date when Pledged Securities are delivered to Escrow Agent hereunder, as applicable):

 

(a)
The Pledged Securities are free and clear of any and all Liens, other than as created
by this Agreement.

 

(b)
The Pledged Securities have been duly authorized and are validly issued, fully paid
and non-assessable, and are subject to no options to purchase, or any similar rights or to any restrictions on transferability.

 

(c)
Each certificate or document of title constituting the Pledged Securities is genuine
in all respects and represents what it purports to be.

 

(d) By virtue
of the execution and delivery of this Agreement and upon delivery to Escrow Agent of the Pledged Securities in accordance
with this Agreement, Secured Party will have a valid and perfected, first priority security interest in the Collateral,
subject to no prior or other Liens of any nature whatsoever.

 

    3

     

    

 

(e)
Pledgor covenants, that for so long as this Agreement is in effect, Pledgor will
defend the Collateral and the priority of Secured Party’s security interests therein, at its sole cost and expense, against
the claims and demands of all Persons at any time claiming the same or any interest therein.

 

(f)  
At its option, Secured Party may pay, for Pledgor’s account, any taxes (including
documentary stamp taxes), Liens, security interests, or other encumbrances at any time levied or placed on the Collateral. Pledgor
agrees to reimburse Secured Party on demand for any payment made or expense incurred by Secured Party pursuant to the foregoing
authorization. Any such amount, if not promptly paid upon demand therefor, shall accrue interest at the highest non-usurious rate
permitted by applicable law from the date of outlay, until paid, and shall constitute an Obligation secured hereby.

 

(g)
The Pledged Securities constitute all of the securities owned, legally or
beneficially, by the Pledgor, and such securities represent 51% of the issued and outstanding capital stock or other securities,
on a fully diluted basis, of each of the Companies. At all times while this Agreement remains in effect, the Pledged Securities
shall constitute and represent 51% of the issued and outstanding shares of the capital stock or other securities of each of the
Companies, on a fully-diluted basis.

 

(h)
The Companies and the Pledgor hereby authorize Secured Party to prepare and file
such financing statements, amendments and other documents and do such acts as Secured Party deems necessary in order to establish
and maintain valid, attached and perfected, first priority security interests in the Collateral in favor of Secured Party, for
its own benefit and as agent for its Affiliates, free and clear of all Liens and claims and rights of third parties whatsoever.
The Companies and Pledgor hereby irrevocably authorize Secured Party at any time, and from time to time, to file in any jurisdiction
any initial financing statements, amendments, continuations and other documents in furtherance of the foregoing.

 

9. Events of Default. The occurrence of any
one or more of the following events shall constitute an “Event of Default” hereunder:

 

(a)
Default. The occurrence of any breach, default or “Event of Default” (as such term
may be defined in the Note), after applicable notice and cure periods, under the Note.

 

(b)
Covenants and Agreements. The failure of Pledgor or the Companies to perform,
observe or comply with any and all of the covenants, promises and agreements of the Pledgor and the Companies in this Agreement,
which such failure is not cured by the Pledgor or the Companies within sixty (60) days after receipt of written notice thereof
from Secured Party.

 

    4

     

    

 

(c) Information, Representations
and Warranties. If any representation or warranty made herein or in the Note, or if any information contained in any
financial statement, application, schedule, report or any other document given by the Companies to Secured Party in
connection with the Obligations, with the Collateral, or with the Note, is not in all material respects true, accurate and
complete, or if the Pledgor or the Companies omitted to state any material fact or any fact necessary to make such
information not misleading.

 

10. Rights and Remedies. Subject at all
times to the Uniform Commercial Code as then in effect in the State governing this Agreement, the Secured Party shall have
the following rights and remedies upon the occurrence and continuation of an Event of Default:

 

(a) Upon and any time after the occurrence and
continuation of an Event of Default, the Secured Party shall have the right to acquire the Pledged Securities and all other
Collateral in accordance with the following procedure: (i) the Secured Party shall provide written notice of such Event of
Default (the “Default Notice”) to the Escrow Agent, with a copy to the Pledgor and the Companies;
(ii) as soon as practicable after receipt of a Default Notice, the Escrow Agent shall deliver the Pledged Securities and all
other Collateral, along with the applicable Transfer Documents, to the Secured Party.

 

(b) Upon receipt of the Pledged Securities and other
Collateral issued to the Secured Party, the Secured Party shall have the right to, without notice or demand to Pledgor or the
Companies: (i) sell the Collateral and to apply the proceeds of such sales, net of any selling commissions, to the Obligations
owed to the Secured Party by the Companies under the Note, including outstanding principal, interest, legal fees, and any other
amounts owed to the Secured Party; and (ii) exercise in any jurisdiction in which enforcement hereof is sought, any rights and
remedies available to Secured Party under the provisions of the Note, the rights and remedies of a secured party under the Uniform
Commercial Code as then in effect in the State governing this Agreement, and all other rights and remedies available to the Secured
Party, under equity or applicable law, all such rights and remedies being cumulative and enforceable alternatively, successively
or concurrently. In furtherance of the foregoing rights and remedies:

 

(i)
Secured Party may sell the Pledged Securities, or any part thereof, or any other portion of the Collateral, in one or more sales,
at public or private sale, conducted by any agent of, or auctioneer or attorney for Secured Party, at Secured Party’s place
of business or elsewhere, or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery,
and at such price or prices, all as Secured Party may deem appropriate. Secured Party may be a purchaser at any such sale of any
or all of the Collateral so sold. In the event Secured Party is a purchaser at any such sale, Secured Party may apply to such purchase
all or any portion of the sums then due and owing by the Companies to Secured Party under the Note or otherwise, and the Secured
Party may, upon compliance with the terms of the sale, hold, retain and dispose of such property without further accountability
to the Pledgor or the Companies therefore. Secured Party is authorized, in its absolute discretion, to restrict the prospective
bidders or purchasers of any of the Collateral at any public or private sale as to their number, nature of business and investment
intention, including the restricting of bidders or purchasers to one or more persons who represent and agree, to the satisfaction
of Secured Party, that they are purchasing the Collateral, or any part thereof, for their own account, for investment, and not
with a view to the distribution or resale of any of such Collateral.

 

(ii) Upon any
such sale, Secured Party shall have the right to deliver, assign and transfer to each purchaser thereof the Collateral so
sold to such purchaser. Each purchaser (including Secured Party) at any such sale shall, to the full extent permitted by law,
hold the Collateral so purchased absolutely free from any claim or right whatsoever, including, without limitation, any
equity or right of redemption of the Pledgor, who, to the full extent that it may lawfully do so, hereby specifically waives
all rights of redemption, stay, valuation or appraisal which she now has or may have under any rule of law or statute now
existing or hereafter adopted.

 

    5

     

    

 

(iii) At any
such sale, the Collateral may be sold in one lot as an entirety, in separate blocks or individually as Secured Party
may determine, in its sole and absolute discretion. Secured Party shall not be obligated to make any sale of any Collateral
if it shall determine in its sole and absolute discretion, not to do so, regardless of the fact that notice of sale of such
Collateral shall have been given. Secured Party may, without notice or publication, adjourn any public or private sale from
time to time by announcement at the time and place fixed for such sale, or any adjournment thereof, and any such sale may be
made at any time or place to which the same may be so adjourned without further notice or publication.

 

(iv) The Pledgor
and the Companies acknowledge that compliance with applicable federal and state securities laws (including,
without limitation, the Securities Act of 1933, as amended, blue sky or other state securities laws or similar laws now or
hereafter existing analogous in purpose or effect) might very strictly limit or restrict the course of conduct of Secured
Party if Secured Party were to attempt to sell or otherwise dispose of all or any part of the Collateral, and might also
limit or restrict the extent to which or the manner in which any subsequent transferee of any such securities could sell or
dispose of the same. The Pledgor and the Companies further acknowledge that under applicable laws, Secured Party may be held
to have certain general duties and obligations to the Pledgor, as pledgors of the Collateral, or the Companies, to make some
effort toward obtaining a fair price for the Collateral even though the obligations of the Pledgor and the Companies may be
discharged or reduced by the proceeds of sale at a lesser price. The Pledgor and the Companies understand and agree that, to
the extent allowable under applicable law, Secured Party is not to have any such general duty or obligation to the Pledgor or
the Companies, and neither the Pledgor nor the Companies will attempt to hold Secured Party responsible for selling all or
any part of the Collateral at an inadequate price even if Secured Party shall accept the first offer received or does not
approach more than one possible purchaser. Without limiting their generality, the foregoing provisions would apply if, for
example, Secured Party were to place all or any part of such securities for private placement by an investment banking firm,
or if such investment banking firm purchased all or any part of such securities for its own account, or if Secured Party
placed all or any part of such securities privately with a purchaser or purchasers.

 

(c)
To the extent that the net proceeds received by the Secured Party are insufficient
to satisfy the Obligations in full, the Secured Party shall be entitled to a deficiency judgment against each Company and any other
Person obligated for the Obligations for such deficiency amount. The Secured Party shall have the absolute right to sell or dispose
of the Collateral, or any part thereof, in any manner it sees fit and shall have no liability to the Pledgor, the Companies, or
any other party for selling or disposing of such Collateral even if other methods of sales or dispositions would or allegedly would
result in greater proceeds than the method actually used. The Companies and any other Person obligated for the Obligations shall
remain liable for all deficiencies and shortfalls, if any, that may exist after the Secured Party has exhausted all remedies hereunder.

 

(d) Each right,
power and remedy of the Secured Party provided for in this Agreement or any other Transaction Document shall be cumulative
and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the exercise
by the Secured Party of any one or more of the rights, powers or remedies provided for in this Agreement or the Note, or now
or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise
by the Secured Party of all such other rights, powers or remedies, and no failure or delay on the part of the Secured Party
to exercise any such right, power or remedy shall operate as a waiver thereof. No notice to or demand on the Pledgor in any
case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of
any of the rights of the Secured Party to any other further action in any circumstances without demand or notice. The Secured
Party shall have the full power to enforce or to assign or contract its rights under this Agreement to a third party.

 

    6

     

    

 

(e) In addition to all other remedies
available to the Secured Party, upon the issuance of the Pledged Securities to the Secured Party after an Event of Default,
Pledgor and the Companies each agree to: (i) take such action and prepare, distribute and/or file such documents and papers,
as are required or advisable in the opinion of Secured Party and/or its counsel, to permit the sale of the Pledged
Securities, whether at public sale, private sale or otherwise, including, without limitation, issuing, or causing its counsel
to issue, any opinion of counsel for Pledgor or the Companies required to allow the Secured Party to sell the Pledged
Securities or any other Collateral under Rule 144; (ii) to bear all costs and expenses of carrying out its obligations under
this Section 8(e), which shall be a part of the Obligations secured hereby; and (iv) that there is no adequate remedy at law
for the failure by the Pledgor and the Companies to comply with the provisions of this Section 8(e) and that such failure
would not be adequately compensable in damages, and therefore agrees that its agreements contained in this subsection may be
specifically enforced.

 

11. Concerning
the Escrow Agent.

 

(a)
The Escrow Agent undertakes to perform only such duties as are expressly set forth
herein and no implied duties or obligations shall be read into this Agreement against the Escrow Agent. Escrow Agent agrees to
release any property held by it hereunder (the “Escrowed Property”) in accordance with the terms and
conditions set forth in this Agreement.

 

(b)
The Escrow Agent may act in reliance upon any writing or instrument or signature
which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in
such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in
connection with the provisions hereof has been duly authorized to do so. The Escrow Agent shall not be liable in any manner for
the sufficiency or correctness as to form, manner, and execution, or validity of any instrument deposited in this escrow, nor as
to the identity, authority, or right of any person executing the same; and its duties hereunder shall be limited to the safekeeping
of the Escrowed Property, and for the disposition of the same in accordance with this Agreement. Escrow Agent shall not be deemed
to have knowledge of any matter or thing unless and until Escrow Agent has actually received written notice of such matter or thing
and Escrow Agent shall not be charged with any constructive notice whatsoever.

 

(c) Escrow
Agent shall hold in escrow, pursuant to this Agreement, the Escrowed Property actually delivered and received by Escrow Agent
hereunder, but Escrow Agent shall not be obligated to ascertain the existence of (or initiate recovery of) any other property
that may be part or portion of the Collateral, or to become or remain informed with respect to the possibility or probability
of additional Collateral being realized upon or collected at any time in the future, or to inform any parties to this
Agreement or any third party with respect to the nature and extent of any Collateral realized and received by Escrow Agent
(except upon the written request of such party), or to monitor current market values of the Collateral. Further, Escrow Agent
shall not be obligated to proceed with any action or inaction based on information with respect to market values of the
Collateral which Escrow Agent may in any manner learn, nor shall Escrow Agent be obligated to inform the parties hereto or
any third party with respect to market values of any of the Collateral at any time, Escrow Agent having no duties with
respect to investment management or information, all parties hereto understanding and intending that Escrow Agent’s
responsibilities are purely ministerial in nature. Any reduction in the market value or other value of the Collateral while
deposited with Escrow Agent shall be at the sole risk of Pledgor and Secured Party. If all or any portion of the Escrowed
Property is in the form of a check or in any other form other than cash, Escrow Agent shall deposit same as required but
shall not be liable for the nonpayment thereof, nor responsible to enforce collection thereof.

 

    7

     

    

 

(d)
In the event instructions from Secured Party, Pledgor, or any other Person would
require Escrow Agent to expend any monies or to incur any cost, Escrow Agent shall be entitled to refrain from taking any action
until it receives payment for such costs. It is agreed that the duties of Escrow Agent are purely ministerial in nature and shall
be expressly limited to the safekeeping of the Escrowed Property and for the disposition of same in accordance with this Agreement.
Secured Party, Pledgor and the Companies, jointly and severally, each hereby indemnifies Escrow Agent and holds it harmless from
and against any and all claims, liabilities, damages, costs, penalties, losses, actions, suits or proceedings at law or in equity,
or any other expenses, fees or charges of any character or nature (collectively, the “Claims”), which
it may incur or with which it may be threatened, directly or indirectly, arising from or in any way connected with this Agreement
or which may result from Escrow Agent’s following of instructions from Secured Party, Pledgor or the Companies, and in connection
therewith, indemnifies Escrow Agent against any and all expenses, including attorneys’ fees and the cost of defending any
action, suit, or proceeding or resisting any Claim, whether or not litigation is instituted, unless any such Claims arise as a
result of Escrow Agent’s gross negligence or willful misconduct. Escrow Agent shall be vested with a lien on all Escrowed
Property under the terms of this Agreement, for indemnification, attorneys’ fees, court costs and all other costs and expenses
arising from any suit, interpleader or otherwise, or other expenses, fees or charges of any character or nature, which may be incurred
by Escrow Agent by reason of disputes arising between Pledgor, the Companies, Secured Party, or any third party as to the correct
interpretation of this Agreement, and instructions given to Escrow Agent hereunder, or otherwise, with the right of Escrow Agent,
regardless of the instruments aforesaid and without the necessity of instituting any action, suit or proceeding, to hold any property
hereunder until and unless said additional expenses, fees and charges shall be fully paid. Any fees and costs charged by the Escrow
Agent for serving hereunder shall be paid by the Pledgor and the Companies, jointly and severally.

 

(e) In
the event Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or
demands from Secured Party, the Companies, Pledgor or from third persons with respect to the Escrowed Property, which, in
Escrow Agent’s sole opinion, are in conflict with each other or with any provision of this Agreement, Escrow Agent
shall be entitled to refrain from taking any action until it shall be directed otherwise in writing by Pledgor, the Companies
and Secured Party and said third persons, if any, or by a final order or judgment of a court of competent jurisdiction. If
any of the parties shall be in disagreement about the interpretation of this Agreement, or about the rights and obligations,
or the propriety of any action contemplated by the Escrow Agent hereunder, the Escrow Agent may, at its sole discretion,
deposit the Escrowed Property with a court having jurisdiction over this Agreement, and, upon notifying all parties concerned
of such action, all liability on the part of the Escrow Agent shall fully cease and terminate. The Escrow Agent shall be
indemnified by the Pledgor, the Companies and Secured Party for all costs, including reasonable attorneys’ fees, in
connection with the aforesaid proceeding, and shall be fully protected in suspending all or a part of its activities under
this Agreement until a final decision or other settlement in the proceeding is received. In the event Escrow Agent is joined
as a party to a lawsuit by virtue of the fact that it is holding the Escrowed Property, Escrow Agent shall, at its sole
option, either: (i) tender the Collateral in its possession to the registry of the appropriate court; or (ii) disburse the
Collateral in its possession in accordance with the court’s ultimate disposition of the case, and Secured Party, the
Companies and Pledgor hereby, jointly and severally, indemnify and hold Escrow Agent harmless from and against any damages or
losses in connection therewith including, but not limited to, reasonable attorneys’ fees and court costs at all
trial and appellate levels.

 

    8

     

    

 

(f) The Escrow Agent may consult with counsel of its own choice (and the costs of
such counsel shall be paid by the Pledgor, the Companies and Secured Party, jointly and severally) and shall have full and complete
authorization and protection for any action taken or suffered by it hereunder in good faith and in accordance with the opinion
of such counsel. The Escrow Agent shall not be liable for any mistakes of fact or error of judgment, or for any actions or omissions
of any kind, unless caused by its willful misconduct or gross negligence.

 

(g)
The Escrow Agent may resign upon ten (10) days’ written notice to the parties in
this Agreement. If a successor Escrow Agent is not appointed by Secured Party and Pledgor within this ten (10) day period, the
Escrow Agent may petition a court of competent jurisdiction to name a successor.

 

(h) Conflict Waiver.
The Pledgor and each Company hereby acknowledges that the Escrow Agent is counsel to the Secured Party in connection with the
transactions contemplated and referred herein. The Pledgor and the Companies agree that in the event of any dispute arising in
connection with this Agreement or otherwise in connection with any transaction or agreement contemplated and referred herein,
the Escrow Agent shall be permitted to continue to represent the Secured Party and neither the Pledgor, nor the Companies, will
seek to disqualify such counsel and each of them waives any objection Pledgor or the Companies might have with respect to the
Escrow Agent acting as the Escrow Agent pursuant to this Agreement. Pledgor, the Companies and Secured Party acknowledge and agree
that nothing in this Agreement shall prohibit Escrow Agent from: (i) serving in a similar capacity on behalf of others; or (ii)
acting in the capacity of attorneys for one or more of the parties hereto in connection with any matter.

 

12.
Increase in Obligations. It is the intent of the parties to secure payment of the Obligations,
as the amount of such Obligations may increase from time to time in accordance with the terms and provisions of the Note, and all
of the Obligations, as so increased from time to time, shall be and are secured hereby. Upon the execution hereof, Pledgor and
the Companies shall pay any and all documentary stamp taxes and/or other charges required to be paid in connection with the execution
and enforcement of the Note, and if, as and to the extent the Obligations are increased from time to time in accordance with the
terms and provisions of the Note, then Pledgor and the Companies shall immediately pay any additional documentary stamp taxes or
other charges in connection therewith.

 

13.
Irrevocable Authorization and Instruction. If applicable, Pledgor and the Companies hereby
authorize and instruct the transfer agent for the Companies (or transfer agents if there is more than one) to comply with any instruction
received by it from Secured Party in writing that: (i) states that an Event of Default hereunder exists or has occurred; and (b)
is otherwise in accordance with the terms of this Agreement, without any other or further instructions from Pledgor or the Companies,
and Pledgor and the Companies agree that such transfer agents shall be fully protected in so complying with any such instruction
from Secured Party.

 

    9

     

    

 

14. Appointment
as Attorney-in-Fact. Each of the Companies and Pledgor hereby irrevocably constitutes and appoints Secured Party and any
officer or agent of Secured Party, with full power of substitution, as its true and lawful attorney-in-fact, with full
irrevocable power and authority in the place and stead of Pledgor or the Companies, as applicable, and in the name of
Pledgor, the Companies, or in the name of Secured Party, as applicable, from time to time in the discretion of Secured Party,
so long as an Event of Default hereunder exists, for the purpose of carrying out the terms of this Agreement, to take any and
all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, including any financing statements, endorsements, assignments or other instruments of
transfer. Pledgor and the Companies each hereby ratify all that said attorneys shall lawfully do or cause to be done pursuant
to the power of attorney granted in this Section 14. All powers, authorizations and agencies contained in this Agreement are
coupled with an interest and are irrevocable until the Obligations are paid and performed in full.

 

15. Continuing Obligation of Pledgor and
the Companies. The obligations, covenants, agreements and duties of the Pledgor and the Companies under this Agreement
shall in no way be affected or impaired by: (i) the modification or amendment (whether material or otherwise) of any of the
obligations of the Pledgor or the Companies or any other Person, as applicable; (ii) the voluntary or involuntary bankruptcy,
assignment for the benefit of creditors, reorganization, or other similar proceedings affecting the Companies, Pledgor or any
other Person, as applicable; (iii) the release of the Companies, Pledgor or any other Person from the performance or
observance of any of the agreements, covenants, terms or conditions contained in the Note, by the operation of law or
otherwise, including the release of the Companies’ or Pledgor’s obligation to pay interest or attorney’s
fees.

 

Pledgor and the
Companies further agree that Secured Party may take other guaranties or collateral or security to further secure the Obligations,
and consent that any of the terms, covenants and conditions contained in the Note may be renewed, altered, extended, changed or
modified by Secured Party or may be released by Secured Party, without in any manner affecting this Agreement or releasing Pledgor
herefrom,and Pledgor shall continue to be liable hereunder to pay and perform pursuant hereto, notwithstanding any such release
or the taking of such other guaranties, collateral or security. This Agreement is additional and supplemental to any and all other
guarantees, security agreements or collateral heretofore and hereafter executed by Pledgor and the Companies for the benefit of
Secured Party, whether relating to the indebtedness evidenced by the Note or not and shall not supersede or be superseded by any
other document or guaranty executed by Pledgor, the Companies or any other Person for any purpose. Pledgor and the Companies hereby
agree that Pledgor, the Companies, and any additional parties who may become liable for repayment of the sums due under the Note,
may hereafter be released from their liability hereunder and thereunder; and Secured Party may take, or delay in taking or refuse
to take, any and all action with reference to the Note (regardless of whether same might vary the risk or alter the rights, remedies
or recourses of Pledgor), including specifically the settlement or compromise of any amount allegedly due thereunder, all without
notice to, consideration to or the consent of the Pledgor, and without in any way releasing, diminishing or affecting in any way
the absolute nature of Pledgor’s obligations and liabilities hereunder.

 

No
delay on the part of the Secured Party in exercising any rights hereunder or failure to exercise the same shall operate as a
waiver of such rights. Pledgor and each Company hereby waives any and all legal requirements, statutory or otherwise, that
Secured Party shall institute any action or proceeding at law or in equity or exhaust its rights, remedies and recourses
against Pledgor, any Company or anyone else with respect to the Note, as a condition precedent to bringing an action against
Pledgor or any Company upon this Agreement or as a condition precedent to Secured Party’s rights to sell the Pledged
Securities or any other Collateral. Pledgor and each Company agrees that Secured Party may simultaneously maintain an action
upon this Agreement and an action or proceeding upon the Note. All remedies afforded by reason of this Agreement are separate
and cumulative remedies and may be exercised serially, simultaneously and in any order, and the exercise of any of such
remedies shall not be deemed an exclusion of the other remedies and shall in no way limit or prejudice any other contractual,
legal, equitable or statutory remedies which Secured Party may have in the Pledged Securities, any other Collateral, or under
the Note. Until the Obligations, and all extensions, renewals and modifications thereof, are paid in full, and until each and
all of the terms, covenants and conditions of this Agreement are fully performed, Pledgor shall not be released by any act or
thing which might, but for this provision of this Agreement, be deemed a legal or equitable discharge of a surety, or by
reason of any waiver, extension, modification, forbearance or delay of Secured Party or any obligation or agreement between
any Company or their successors or assigns, and the then holder of the Note, relating to the payment of any sums evidenced or
secured thereby or to any of the other terms, covenants and conditions contained therein, and Pledgor hereby expressly waive
and surrender any defense to liability hereunder based upon any of the foregoing acts, things, agreements or waivers, or any
of them. Pledgor and each Company also waives any defense arising by virtue of any disability, insolvency, bankruptcy, lack
of authority or power or dissolution of Pledgor or any Company, even though rendering the Note void, unenforceable or
otherwise uncollectible, it being agreed that Pledgor and each Company shall remain liable hereunder, regardless of any
claim which Pledgor or any Company might otherwise have against Secured Party by virtue of Secured Party’s invocation of any
right, remedy or recourse given to it hereunder or under the Note. In addition, Pledgor waives and renounces any right of
subrogation, reimbursement or indemnity whatsoever, and any right of recourse to security for the Obligations of the
Companies to Secured Party, unless and until all of said Obligations have been paid in full to Secured Party.

 

    10

     

    

 

16. Miscellaneous.

 

(a)
Performance for Pledgor or the Companies. The Pledgor and the Companies agree
and hereby acknowledge that Secured Party may, in Secured Party’s sole discretion, but Secured Party shall not be obligated
to, whether or not an Event of Default shall have occurred, advance funds on behalf of the Companies or Pledgor, without prior
notice to the Pledgor or the Companies, in order to insure the Companies’ and Pledgor’s compliance with any covenant,
warranty, representation or agreement of the Pledgor or the Companies made in or pursuant to this Agreement or the Note, to continue
or complete, or cause to be continued or completed, performance of the Pledgor’s and the Companies’ obligations under
any contracts of the Pledgor or the Companies, or to preserve or protect any right or interest of Secured Party in the Collateral
or under or pursuant to this Agreement or the Note; provided, however, that the making of any such advance by Secured Party shall
not constitute a waiver by Secured Party of any Event of Default with respect to which such advance is made, nor relieve the Pledgor
or the Companies of any such Event of Default. The Pledgor and the Companies, respectively and as applicable, shall pay to Secured
Party upon demand all such advances made by Secured Party with interest thereon at the highest rate permitted by applicable law.
All such advances shall be deemed to be included in the Obligations and secured by the security interest granted Secured Party
hereunder; provided, however, that the provisions of this Subsection shall survive the termination of this Agreement and Secured
Party’s security interest hereunder and the payment of all other Obligations.

 

(b) Applications
of Payments and Collateral. Except as may be otherwise specifically provided in this Agreement or the Note, all
Collateral and proceeds of Collateral coming into Secured Party’s possession may be applied by Secured Party (after
payment of any costs, fees and other amounts incurred by Secured Party in connection therewith) to any of the Obligations,
whether matured or unmatured, as Secured Party shall determine in its sole discretion. Any surplus held by the Secured Party
and remaining after the indefeasible payment in full in cash of all of the Obligations shall be paid over to whomsoever shall
be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct. In the event that the proceeds
of any such sale, collection or realization are insufficient to pay all amounts to which the Secured Party is legally
entitled, the Companies shall be jointly and severally liable for the deficiency, together with interest thereon at the
highest rate permitted by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and
other client charges of any attorneys employed by the Secured Party to collect such deficiency.

 

(c)
Waivers by Pledgor and the Companies. Each of the Companies and the Pledgor
hereby waives, to the extent the same may be waived under applicable law: (i) notice of acceptance of this Agreement; (ii) all
claims and rights of the Pledgor and the Companies against Secured Party on account of actions taken or not taken by Secured Party
in the exercise of Secured Party’s rights or remedies hereunder, under the Note or under applicable law; (iii) all claims
of the Pledgor and the Companies for failure of Secured Party to comply with any requirement of applicable law relating to enforcement
of Secured Party’s rights or remedies hereunder, under the Note or under applicable law; (iv) all rights of redemption of
the Pledgor with respect to the Collateral; (v) in the event Secured Party seeks to repossess any or all of the Collateral by judicial
proceedings, any bond(s) or demand(s) for possession which otherwise may be necessary or required; (vi) presentment, demand for
payment, protest and notice of nonpayment and all exemptions applicable to any of the Collateral or the Pledgor or the Companies;
(vii) any and all other notices or demands which by applicable law must be given to or made upon the Pledgor or the Companies by
Secured Party; (viii) settlement, compromise or release of the obligations of any person or entity primarily or secondarily liable
upon any of the Obligations; (ix) all rights of the Pledgor or the Companies to demand that Secured Party release account debtors
or other persons or entities liable on any of the Collateral from further obligation to Secured Party; and (x) substitution, impairment,
exchange or release of any Collateral for any of the Obligations. The Pledgor and the Companies agree that Secured Party may exercise
any or all of its rights and/or remedies hereunder and under the Note and under applicable law without resorting to and without
regard to any Collateral or sources of liability with respect to any of the Obligations.

 

(d)
Waivers by Secured Party. No failure or any delay on the part of Secured Party in
exercising any right, power or remedy hereunder or under the Note or under applicable law, shall operate as a waiver thereof.

 

(e)
Secured Party’s Setoff. Secured Party shall have the right, in addition to all other
rights and remedies available to it, following an Event of Default, to set off against any Obligations due Secured Party, any debt
owing to the Pledgor or the Companies by Secured Party.

 

(f)
Modifications, Waivers and Consents. No modifications or waiver of any provision
of this Agreement or the Note, and no consent by Secured Party to any departure by the Pledgor or the Companies therefrom, shall
in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given, and any single or partial written waiver by Secured Party of any term, provision
or right of Secured Party hereunder shall only be applicable to the specific instance to which it relates and shall not be deemed
to be a continuing or future waiver of any other right, power or remedy. No notice to or demand upon the Pledgor or the Companies
in any case shall entitle Pledgor or the Companies to any other or further notice or demand in the same, similar or other circumstances.

 

(g)
Notices. All notices of request, demand and other communications hereunder shall
be addressed, sent and deemed delivered in accordance with the Note, including delivery of any such notices or communications to
the Pledgor on behalf of the Companies, which each Company hereby agrees and acknowledges shall be valid and effective notice to
the Companies hereunder.

 

    11

     

    

 

(h)
Applicable Law and Consent to Jurisdiction. The Pledgor, the Companies and the
Secured Party each irrevocably agrees that any dispute arising under, relating to, or in connection with, directly or indirectly,
this Agreement or related to any matter which is the subject of or incidental to this Agreement (whether or not such claim is based
upon breach of contract or tort) shall be subject to the exclusive jurisdiction and venue of the state and/or federal courts located
in Lee County, Florida; provided, however, Secured Party may, at Secured Party’s sole option, elect to bring any action in
any other jurisdiction. This provision is intended to be a “mandatory” forum selection clause and governed by and interpreted
consistent with Florida law. The Pledgor, the Companies and Secured Party each hereby consents to the exclusive jurisdiction and
venue of any state or federal court having its situs in said county (or to any other jurisdiction or venue, if Secured Party so
elects), and each waives any objection based on forum non conveniens. The Pledgor and the Companies each hereby waives personal
service of any and all process and consent that all such service of process may be made by certified mail, return receipt requested,
directed to the Pledgor or the Companies, as applicable, as set forth herein and in the manner provided by applicable statute,
law, rule of court or otherwise. Except for the foregoing mandatory forum selection clause, this Agreement shall be construed in
accordance with the laws of the State of Nevada, without regard to the principles of conflicts of laws.

 

(i) Survival:
Successors and Assigns. All covenants, agreements, representations and warranties made herein shall survive the execution
and delivery hereof and shall continue in full force and effect until all Obligations have been paid in full, there exists no
commitment by Secured Party which could give rise to any Obligations. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and assigns of such party. In the event that Secured Party
assigns this Agreement and/or its security interest in the Collateral, such assignment shall be binding upon and recognized by
the Pledgor. All covenants, agreements, representations and warranties by or on behalf of the Pledgor or the Companies which are
contained in this Agreement shall inure to the benefit of Secured Party, its successors and assigns. Neither the Pledgor, nor
the Companies, may assign this Agreement or delegate any of their respective rights or obligations hereunder, without the prior
written consent of Secured Party, which consent may be withheld in Secured Party’s sole and absolute discretion.

 

(j)
Severability. If any term, provision or condition, or any part thereof, of this
Agreement shall for any reason be found or held invalid or unenforceable by any court or governmental authority of competent jurisdiction,
such invalidity or unenforceability shall not affect the remainder of such term, provision or condition nor any other term, provision
or condition, and this Agreement shall survive and be construed as if such invalid or unenforceable term, provision or condition
had not been contained therein.

 

(k)
Merger and Integration. This Agreement and the Note contain the entire agreement
of the parties hereto with respect to the matters covered and the transactions contemplated hereby, and no other agreement, statement
or promise made by any party hereto, or by any employee, officer, agent or attorney of any party hereto, which is not contained
herein shall be valid or binding.

 

    12

     

    

 

(l) WAIVER
OF JURY TRIAL. THE PLEDGOR AND THE COMPANIES EACH HEREBY: (i) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY A JURY; AND (ii) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE PLEDGORS, ANY COMPANY AND SECURED
PARTY MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, AND/OR ANY TRANSACTIONS,
OCCURRENCES, COMMUNICATIONS, OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR-CREDITOR RELATIONSHIP
BETWEEN THE PARTIES. IT IS UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST
ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS WAIVER
OF JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE PLEDGORS AND THE COMPANIES AND THE PLEDGOR
AND THE COMPANIES HEREBY AGREE THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER
OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED TO SUBMIT THIS AGREEMENT TO
ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PLEDGORS, THE COMPANIES AND SECURED PARTY, SO AS TO SERVE AS CONCLUSIVE
EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE PLEDGORS AND THE COMPANIES REPRESENT AND WARRANT THAT EACH OF THEM HAS
BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS
OWN FREE WILL, AND/OR THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

(m)
Execution. This Agreement may be executed in one or more counterparts, all of
which taken together shall be deemed and considered one and the same Agreement. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format file or other similar format file, such signature shall
be deemed an original for all purposes and shall create a valid and binding obligation of the party executing same with the same
force and effect as if such facsimile or “.pdf” signature page was an original thereof.

 

(n)
Headings. The headings and sub-headings contained in the titling of this
Agreement are intended to be used for convenience only and shall not be used or deemed to limit or diminish any of the provisions
hereof.

 

(o)
Gender and Use of Singular and Plural. All pronouns shall be deemed to refer to
the masculine, feminine, neuter, singular or plural, as the identity of the party or parties or their personal representatives,
successors and assigns may require. The word “Company” or “Companies” shall mean all of the undersigned
Persons.

 

(p)
Further Assurances. The parties hereto will execute and deliver such further
instruments and do such further acts and things as may be reasonably required to carry out the intent and purposes of this Agreement,
including the execution and filing of UCC-1 Financing Statements in any jurisdiction as Secured Party may require.

 

(q)
Time is of the Essence. The parties hereby agree that time is of the essence with
respect to performance of each of the parties’ obligations under this Agreement. The parties agree that in the event that
any date on which performance is to occur falls on a Saturday, Sunday or state or national holiday, then the time for such performance
shall be extended until the next business day thereafter occurring.

 

(r)
Joint Preparation. The preparation of this Agreement has been a joint effort of the
parties and the resulting documents shall not, solely as a matter of judicial construction, be construed more severely against
one of the parties than the other.

 

    13

     

    

 

(s) Prevailing
Party. If any legal action or other proceeding is brought for the enforcement of this Agreement or the Note, or because of
an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement or the Note, the
successful or prevailing party or parties shall be entitled to recover from the non- prevailing party, reasonable attorneys’
fees, court costs and all expenses, even if not taxable as court costs (including, without limitation, all such fees, costs and
expenses incident to appeals), incurred in that action or proceeding, in addition to any other relief to which such party or parties
may be entitled.

 

(t)
Costs and Expenses. The Pledgor and the Companies, jointly and severally, agree
to pay to the Secured Party, upon demand, the amount of any and all costs and expenses, including the reasonable fees, costs, expenses
and disbursements of counsel for the Secured Party and of any experts and agents, which the Secured Party may incur in connection
with: (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment, waiver or other modification
or termination of this Agreement; (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other
realization upon, any Collateral; (iii) the exercise or enforcement of any of the rights of the Secured Party hereunder; or (iv)
the failure by the Pledgor or the Companies to perform or observe any of the provisions hereof. Included in the foregoing shall
be the amount of all expenses paid or incurred by Secured Party in consulting with counsel concerning any of its rights hereunder,
under the Note or under applicable law, as well as such portion of Secured Party’s overhead as Secured Party shall allocate
to collection and enforcement of the Obligations in Secured Party’s sole but reasonable discretion. All such costs and expenses
shall bear interest from the date of outlay until paid, at the highest rate allowed by law. The provisions of this Subsection shall
survive the termination of this Agreement and Secured Party’s security interest hereunder and the payment of all Obligations.

 

(u)
Joint and Several Liability. The liability of Pledgor shall be joint and several with
the liability of the Companies and any other Person liable for the Obligations. The liability of any Company shall also be joint
and several with the liability of all other Companies under this Agreement.

 

[Signatures on the following page]

 

    14

     

    

 

IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement as of the day and year first above written.

 

	PLEDGOR:	 
	 	 	 
	SHIFT8 TECHNOLOGIES, INC., 

    a Nevada corporation	 
	 	 	 
	By:	/s/ Arthur L. Smith	 
	Name:	 Arthur L. Smith	 
	Title:	CEO	 

 

    15

     

    

 

	COMPANIES:	 
	 	 	 
	T3 COMMUNICATIONS, INC.,

a Florida corporation	 
	 	 	 
	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	President	 
	 	 	 
	T3 ACQUISITION, INC.,	 
	 	 	 
	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	CEO	 
	 	 	 
	SECURED PARTY:	 
	 	 
	 ITN Partners, LLC	 
	 	 	 
	By:	      	 
	Its:	 	 

 

    16Exhibit 10.7

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

PROMISSORY NOTE

 

	$150,000	San Antonio, Texas	April 30, 2018

  

FOR VALUE RECEIVED,
SHIFT8 TECHNOLOGIES, INC., a Nevada corporation, whose address is 1600 NE Loop 410, Suite 126, San Antonio, Texas 78209 (the
“Debtor”), promises to pay to the order of NexGen Integrated Communications, LLC, whose address is 3406
SE Crossroads Drive, Suite 5, Grimes, Iowa 50111 (the “Payee”), the sum of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000) in lawful money of the United States of America which shall be legal tender for the payment of debts
from time to time, together with interest on the outstanding principal amount hereof at the rate of three percent (3%) interest
per annum, computed on the basis of a 360-day year and 30-day months.

 

This Note shall be
payable in monthly payments of interest only and a single payment of the principal amount outstanding plus any accrued interest,
without demand, on May 7, 2018 (the “Maturity Date”). If the Maturity Date shall be a Saturday, Sunday,
or day on which Banks in San Antonio, Texas, or the place of payment are authorized or required to be closed, such payment shall
be made on the next following day that is not a Saturday, Sunday or day on which banks in San Antonio, Texas, or the place of payment
are authorized or required to be closed and interest thereon shall continue to accrue thereon until such date.

 

Time is of the essence
of this Note, and the Debtor expressly agrees that in the event of default in the payment of any principal or interest when due,
the Payee may declare the entirety of this Note immediately due and payable. Upon the occurrence of any default hereunder, the
Payee shall also have the right to exercise any and all of the rights, remedies and recourses now or hereafter existing in equity,
law, by virtue of statute or otherwise.

 

In the event that any
payment is not made when due, either of principal or interest, and whether upon maturity or as a result of acceleration, interest
shall thereafter accrue at the rate per annum equal to the lesser of (a) the maximum non-usurious rate of interest permitted by
the laws of the State of Texas or the United States of America, whichever shall permit the higher rate or (b) twenty percent (20%)
per annum, from such date until the entire balance of principal and accrued interest on this Note has been paid.

 

Debtor has the privilege
of making prepayments on this Note from time to time in any amount without penalty provided that any such prepayment shall be applied
to unpaid interest on this Note and the balance, if any, to the principal amount payable under this Note.

 

    	 		 

     

    

 

No failure to
exercise and no delay on the part of Payee in exercising any power or right in connection herewith shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps
to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.
No course of dealing between Debtor and Payee shall operate as a waiver of any right of Payee. No modification or waiver of
any provision of this Note or any consent to any departure therefrom shall in any event be effective unless the same shall be
in writing and signed by the person against whom enforcement thereof is to be sought, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.

 

In the event of default
or if payment of this Note is not made when due or declared due, and the same is placed in the hands of an attorney for collection,
or suit is brought on same, or the same is collected through any judicial proceeding whatsoever, or if any action be had hereon,
then Debtor agrees and promises to pay an additional amount as reasonable, calculated and foreseeable attorneys’ and collection
fees incurred by Payee in connection with enforcing its rights herein contemplated.

 

To the extent permitted
by applicable law, Debtor hereby waives grace, notice, demand or presentment for payment of this Note, dishonor, notice of dishonor,
notice of default or nonpayment, protest, notice of protest, suit, notice of intention to accelerate, notice of acceleration, diligence
or any notice of or defense on account of the extension of time of payments or change in the method of payments, and consents to
any and all renewals and extensions in the time of payment hereof, and the release of any party primarily or secondarily liable
hereon.

 

It is expressly provided
and stipulated that notwithstanding any provision of this Note, in no event shall the aggregate of all interest paid by Debtor
to Payee hereunder ever exceed the maximum non-usurious rate of interest which may lawfully be charged Debtor under the laws of
the State of Texas or United States Federal Government, as applicable, on the principal balance of this Note remaining unpaid.
It is expressly stipulated and agreed by Debtor that it is the intent of Payee and Debtor in the execution and delivery of this
Note to contract in furtherance of such laws, and that none of the terms of this Note shall ever be construed to create a contract
to pay for the use, forbearance or detention of money, at any interest rate in excess of the maximum non-usurious rate of interest
permitted to be charged Debtor under the laws of the State of Texas or United States Federal Government, as applicable. The provisions
of this paragraph shall govern over all other provisions of this Note should any such provisions be in apparent conflict herewith.

 

Specifically, and without
limiting the generality of the foregoing paragraph, it is expressly provided that:

 

(i)       In
the event of prepayment of the principal of this Note, in whole or in part, or the payment of the principal of this Note
prior to the Maturity Date, whether resulting from acceleration of the maturity of this Note or otherwise, if the aggregate
amount of interest accruing hereon prior to such payment plus the amount of any interest accruing after maturity and plus any
other amount paid or accrued in connection with the indebtedness evidenced hereby which by law are deemed interest on the
indebtedness evidenced by the Note and which aggregate amounts paid or accrued (if calculated in accordance with the
provisions of this Note other than this paragraph) would exceed the maximum non-usurious rate of interest which could
lawfully be charged as above mentioned on the unpaid principal balance of the indebtedness evidenced by this Note from time
to time advanced (less any discount) and remaining unpaid from the date advanced to the date of final payment thereof, then
in such event the amount of such excess shall be credited, as of the date paid, toward the payment of the principal of this
Note so as to reduce the amount of the final payment of principal due on this Note, or if the principal amount hereof has
been paid in full, refunded to Debtor.

 

    	 	2	 

     

    

 

(ii)       If
under any circumstances the aggregate amounts paid on the indebtedness evidenced by this Note prior to and incident to the
final payment hereof include amounts which by law are deemed interest and which would exceed the maximum non-usurious rate of
interest which could lawfully have been charged or collected on this Note, as above mentioned, Debtor stipulates that (a) any
non-principal payment shall be characterized as an expense, fee, or premium rather than as interest and any excess shall be
credited hereon by the holder hereof (or, if this Note shall have been paid in full, refunded to Debtor); and (b)
determination of the rate of interest for determining whether the indebtedness evidenced hereby is usurious shall be made by
amortizing, prorating, allocating, and spreading, in equal parts during the full stated term hereof, all interest at any time
contracted for, charged, or received from Debtor in connection with such indebtedness, and any excess shall be canceled,
credited, or refunded as set forth in (a) herein.

 

Any check, draft, money
order, or other instrument given in payment of all or any portion of this Note may be accepted by Payee and handled in collection
in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of Payee except to the extent
that actual cash proceeds of such instruments are unconditionally received by Payee. If at any time any payment of the principal
of or interest on this Note is rescinded or must be restored or returned upon the insolvency, bankruptcy or reorganization of Debtor
or otherwise, the obligation under this Note with respect to that payment shall be reinstated as though the payment had been due
but not made at that time.

 

Debtor agrees that
this Note shall be freely assignable to any assignee of Payee, subject to compliance with applicable securities laws.

 

Debtor represents and
warrants that the extension of credit represented by this Note is for business, commercial, investment, or other similar purposes
and not primarily for personal, family, household or agricultural use.

 

This Note has been
executed and delivered and shall be construed in accordance with and governed by the laws of the State of Texas and of the United
States of America applicable in Texas. Venue for any litigation between Debtor and Payee with respect to this Note shall be Bexar
County, Texas. Debtor and Payee hereby irrevocably submit to personal jurisdiction in Texas and waive all objections to personal
jurisdiction in Texas and venue in Bexar County for purposes of such litigation.

 

THIS NOTE REPRESENTS
THE FINAL AGREEMENT BETWEEN DEBTOR AND PAYEE AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN DEBTOR AND PAYEE.

 

    	 	3	 

     

    

 

THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN DEBTOR AND PAYEE.

 

	 	SHIFT8 TECHNOLOGIES,
    INC., 
	 	a Nevada corporation   
	 	 	   
	 	By:	/s/
    Arthur L. Smith      
	 	Name:	Arthur L. Smith  
	 	Title:	CEO    

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]