Document:

Exhibit
10.2

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of April 8, 2022 (this “Agreement”), is among SurgePays, Inc. (the “Debtor”
or the “Company”) and Secured Party as holder of that Promissory Note in the aggregate principal amount not
to exceed $3,000,000 (the “Note”) executed and delivered by the Company pursuant to the Loan Agreement between the
parties (the “Loan Agreement”).

 

WITNESSETH:

 

WHEREAS,
pursuant to the Loan Agreement dated as of the date hereof among Debtor and Secured Party (the “Loan Agreement”), the Secured
Party has agreed to extend a loan to the Company evidenced by the Note;

 

WHEREAS,
in order to induce the Secured Party to extend the loan evidenced by the Note, the Debtor has agreed to execute and deliver to the Secured
Party this Agreement and to grant the Secured Party a security interest in certain property of such Debtor to secure the prompt payment,
performance and discharge in full of all of the Debtor’s obligations under the Note and any other present or future indebtedness
incurred by the Debtor in favor of the Secured Party.

 

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

 

1.
Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms
used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”, “fixtures”,
“general intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have the respective meanings
given such terms in Article 9 of the UCC.

 

(a)
“Collateral” means the collateral in which the Secured Party is granted a security interest by this Agreement and which shall
include the following personal property of the Debtor, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products
and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering
the same and of any tort claims in connection therewith:

 

(i)
All goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and wherever
situated, together with all documents of title and documents representing the same, all additions and accessions thereto, replacements
therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in connection with any
Debtor’s businesses and all improvements thereto; and (B) all inventory;

 

    	 

     

    

 

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(ii)
All contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests, stock
or other securities, rights under any of the Organizational Documents, licenses, distribution and other agreements, computer software
(whether “off-the-shelf”, licensed from any third party or developed by any Debtor), computer software development rights,
leases, franchises, customer lists, quality control procedures, grants and rights, goodwill, trademarks, service marks, trade styles,
trade names, patents, patent applications, copyrights, and income tax refunds;

 

(iii)
All accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties with respect
to each account, including any right of stoppage in transit;

 

(iv)
All documents, letter-of-credit rights, instruments and chattel paper;

 

(v)
All commercial tort claims;

 

(vi)
All deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)
All investment property;

 

(viii)
All supporting obligations; and

 

(ix)
All files, records, books of account, business papers, and computer programs; and

 

(x)
the products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent
that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided,
however, that to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset and,
to the extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.

 

    	 

     

    

 

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(b)
Intellectual Property” means the collective reference to all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent of
the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications
for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, (iii)
all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service marks, logos,
domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired,
all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof,
or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under the laws of the United States, any other
country or any political subdivision thereof, (v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all
licenses for any of the foregoing, and (vii) all causes of action for infringement of the foregoing.

 

(c)
“Necessary Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly
executed and such other instruments or documents as Secured Party may reasonably request.

 

(d)
“Obligations” means all of the liabilities, indebtedness and obligations (primary, secondary, direct, contingent,
sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Debtor
to the Secured Party, including, without limitation, all obligations under this Agreement, the Note, and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith, or in connection with any other loan, indebtedness,
obligation or liability previously or hereafter incurred by Debtor in favor of Secured Party, in each case, whether now or hereafter
existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed
with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any
portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly
or indirectly from any of the Secured Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented,
converted, extended or modified from time to time. Without limiting the generality of the foregoing, the term “Obligations”
shall include, without limitation: (i) principal of, and interest on the Note, the loans extended pursuant thereto, or any other promissory
note, instrument or other document evidencing indebtedness owed by Debtor to Secured Party; (ii) any and all other fees, indemnities,
costs, obligations and liabilities of the Debtor from time to time under or in connection with this Agreement, the Note, and any other
instruments, agreements or other documents executed and/or delivered, whether in connection herewith or therewith, or otherwise; and
(iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the
fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization
or similar proceeding involving any Debtor.

 

    	 

     

    

 

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(e)
“Organizational Documents” means with respect to any Debtor, the documents by which such Debtor was organized (such
as a certificate of incorporation, certificate of limited partnership or articles of organization, and including, without limitation,
any certificates of designation for preferred stock or other forms of preferred equity) and which relate to the internal governance of
such Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members agreement).

 

(f)
“Pledged Interests” shall have the meaning ascribed to such term in Section 5(j).

 

(g)
“UCC” means the Uniform Commercial Code of the State of California and or any other applicable law of any state or
states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the
intent of the parties that defined terms in the UCC should be construed in their broadest sense so that the term “Collateral”
will be construed in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden
the definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing
ones shall be controlling.

 

2.
Grant of Security Interest in Collateral. As an inducement for the Secured Party to extend the loans as evidenced by the Note
and any other instrument or agreement evidencing loans extended by Secured Party to Debtor, and to secure the complete and timely payment,
performance and discharge in full, as the case may be, of all of the Obligations, the Debtor hereby unconditionally and irrevocably pledges,
grants and hypothecates to the Secured Party a security interest in and to, a lien upon and a right of set-off against all of their respective
right, title and interest of whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively,
the “Security Interests”).

 

3.
Delivery of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver or cause
to be delivered to Secured Party any and all certificates and other instruments or documents representing any of the Collateral together
with all Necessary Endorsements.

 

4.
Protection of Security Interest. Debtor shall take any and all steps necessary or required to preserve and protect the priority
of the security interest granted herein, and in pursuance of this obligation, Debtor agrees that: 

 

(a)
Debtor shall not sell (except as may be expressly permitted pursuant to the provisions of the Loan Documents), mortgage, encumber, transfer,
lease or otherwise dispose (except as may be expressly permitted pursuant to the provisions of the Loan Documents) of any of the Collateral
or any interest therein, or offer to do so, without the prior written consent of Secured Party, or permit anything to be done that may
impair the value of any of the Collateral, except that Debtor shall be entitled to remove any items of Collateral which are replaced
with items of Collateral of at least equal suitability and value on the date of their removal;

 

(b)
Debtor shall pay promptly when due any taxes and assessments upon the Collateral or for the use or operation of the Collateral;

 

(c)
Secured Party is authorized to file financing statements under the Uniform Commercial Code, as adopted and enacted in the state in which
the Debtor is located or in which the Premises are located, as amended from time to time (the “Uniform Commercial Code”)
and any other documents requested by Secured Party to effectively implement the purposes of this Agreement;

 

    	 

     

    

 

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(d)
Secured Party may from time to time, at its option, perform any agreement or obligation of Debtor hereunder which Debtor fails to perform,
and take any action which Secured Party deems necessary or appropriate for the maintenance or preservation of any of the Collateral or
its security interest therein; and

 

(e)
Any amounts incurred by Secured Party for costs and expenses (including without limitation attorney’s fees and expenses) in connection
with any action taken by Secured Party to enforce its rights hereunder, shall, at Secured Party’s option, become part of the principal
amount due under the Note and part of the Obligations, and on demand by Secured Party, Debtor shall pay any such amount to Secured Party,
together with interest thereon at the Default Rate.

 

5.
Representations, Warranties, Covenants and Agreements of the Debtor. Except as set forth under the corresponding section of the
disclosure schedules delivered to the Secured Party concurrently herewith (the “Disclosure Schedules”), which Disclosure
Schedules shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with, the Secured Party as
follows:

 

(a)
Each Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this Agreement
and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action on the part of such Debtor and no further action is required
by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes the legal, valid and binding obligation
of each Debtor, enforceable against each Debtor in accordance with its terms except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies of creditors
and by general principles of equity.

 

(b)
The Debtor has no place of business or offices where their respective books of account and records are kept (other than temporarily at
the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule A
attached hereto. Except as specifically set forth on Schedule A, each Debtor is the record owner of the real property where such
Collateral is located, and there exist no mortgages or other liens on any such real property except for Permitted Liens (as defined in
the Loan Agreement). Except as disclosed on Schedule A, none of such Collateral is in the possession of any consignee, bailee,
warehouseman, agent or processor.

 

    	 

     

    

 

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(c)
Except for permitted liens and except as set forth on Schedule B attached hereto, the Debtor is the sole owner of the Collateral
(except for non-exclusive licenses granted by any Debtor in the ordinary course of business), free and clear of any liens, security interests,
encumbrances, rights or claims, and are fully authorized to grant the Security Interests. Except for permitted liens and except as set
forth on Schedule C attached hereto, there is not on file in any governmental or regulatory authority, agency or recording office
an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those that
will be filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Collateral. Except as set forth
on Schedule C attached hereto and except pursuant to this Agreement, as long as this Agreement shall be in effect, the Debtor
shall not execute and shall not knowingly permit to be on file in any such office or agency any other financing statement or other document
or instrument (except to the extent filed or recorded in favor of the Secured Party pursuant to the terms of this Agreement or the Loan
Agreement).

 

(d)
No written claim has been received that any Collateral or any Debtor’s use of any Collateral violates the rights of any third party.
There has been no adverse decision to any Debtor’s claim of ownership rights in or exclusive rights to use the Collateral in any
jurisdiction or to any Debtor’s right to keep and maintain such Collateral in full force and effect, and there is no proceeding
involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative or
regulatory agency, arbitrator or other governmental authority.

 

(e)
Each Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account and records
or tangible Collateral unless it delivers to the Secured Party at least 30 days prior to such relocation (i) written notice of such relocation
and the new location thereof (which must be within the United States) and (ii) evidence that appropriate financing statements under the
UCC and other necessary documents have been filed and recorded and other steps have been taken to perfect the Security Interests to create
in favor of the Secured Party a valid, perfected and continuing perfected first priority lien in the Collateral.

 

(f)
This Agreement creates in favor of the Secured Party a valid security interest in the Collateral, subject only to permitted liens securing
the payment and performance of the Obligations. Upon making the filings described in the immediately following paragraph, all security
interests created hereunder in any Collateral which may be perfected by filing Uniform Commercial Code financing statements shall have
been duly perfected. Except for the filing of the Uniform Commercial Code financing statements referred to in the immediately following
paragraph, the execution and delivery of deposit account control agreements satisfying the requirements of Section 9-104(a)(2) of the
UCC with respect to each deposit account of the Debtor, and the delivery of the certificates and other instruments provided in Section
3, no action is necessary to create, perfect or protect the security interests created hereunder. Without limiting the generality of
the foregoing, except for the filing of said financing statements, and the execution and delivery of said deposit account control agreements,
no consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation or perfection
of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of Secured Party hereunder.

 

    	 

     

    

 

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(g)
Each Debtor hereby authorizes Secured Party to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(h)
The execution, delivery and performance of this Agreement by the Debtor does not (i) violate any of the provisions of any Organizational
Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law,
rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing any Debtor’s
debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any Debtor is bound or
affected. If any, all required consents (including, without limitation, from stockholders or creditors of any Debtor) necessary for any
Debtor to enter into and perform its obligations hereunder have been obtained.

 

(i)
Schedule H hereto contains the name and percentage of ownership of each 10% or more equity owner of Borrower.

 

(j)
The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the “Pledged
Interests”) by their express terms do not provide that they are securities governed by Article 8 of the UCC and are not held
in a securities account or by any financial intermediary.

 

(k)
Except for Permitted Liens (as defined in the Loan Agreement), each Debtor shall at all times maintain the liens and Security Interests
provided for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Secured Party
until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof. Each Debtor hereby agrees
to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all Collateral for
the account of the Secured Party. At the request of Secured Party, each Debtor will sign and deliver to Secured Party at any time or
from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory to Secured Party and will pay
the cost of filing the same in all public offices wherever filing is, or is deemed by Secured Party to be, necessary or desirable to
effect the rights and obligations provided for herein. Without limiting the generality of the foregoing, each Debtor shall pay all fees,
taxes and other amounts necessary to maintain the Collateral and the Security Interests hereunder, and each Debtor shall obtain and furnish
to Secured Party from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain
the priority of the Security Interests hereunder.

 

(l)
No Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive
licenses granted by a Debtor in its ordinary course of business, sales of inventory by a Debtor in its ordinary course of business, and
the use of cash in its ordinary course of business) without the prior written consent of a Majority in Interest.

 

(m)
Each Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall
not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

    	 

     

    

 

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(n)
Each Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established reputation
having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances by other such
entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement
cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy
to certify to Secured Party, that (a) Secured Party will be named as lender loss payee and additional insured under each such insurance
policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly
notify Secured Party and such cancellation or change shall not be effective as to Secured Party for at least thirty (30) days after receipt
by Secured Party of such notice, unless the effect of such change is to extend or increase coverage under the policy; and (c) Secured
Party will have the right (but no obligation) at its election to remedy any default in the payment of premiums within thirty (30) days
of notice from the insurer of such default. If no Event of Default (as defined in the Note) exists and if the proceeds arising out of
any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied by the applicable Debtor
to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible, and any loss
payments or the balance thereof remaining, to the extent not so applied, shall be payable to the applicable Debtor; provided,
however, that payments received by any Debtor after an Event of Default occurs and is continuing or in excess of $100,000 for
any occurrence or series of related occurrences shall be paid to Secured Party and, if received by such Debtor, shall be held in trust
for the Secured Party and immediately paid over to Secured Party unless otherwise directed in writing by Secured Party. Copies of such
policies or the related certificates, in each case, naming Secured Party as lender loss payee and additional insured shall be delivered
to Secured Party at least annually and at the time any new policy of insurance is issued.

 

(o)
Each Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any
material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value
of the Collateral or on the Secured Party’ security interest, through Secured Party, therein.

 

(p)
Each Debtor shall promptly execute and deliver to Secured Party such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as Secured Party may from time to
time request and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Party’ security interest
in the Collateral.

 

(q)
Each Debtor shall permit Secured Party and its representatives and agents to inspect the Collateral during normal business hours and
upon reasonable prior notice and to make copies of records pertaining to the Collateral as may be reasonably requested by Secured Party
from time to time.

 

    	 

     

    

 

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(r)
Each Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

(s)
Each Debtor shall promptly notify the Secured Party in sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other information received by such Debtor that may materially affect
the value of the Collateral, the Security Interest or the rights and remedies of the Secured Party hereunder.

 

(t)
All information heretofore, herein or hereafter supplied to the Secured Party by or on behalf of any Debtor with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(u)
The Debtor shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any rights
and franchises material to its business.

 

(v)
No Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has one),
legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written notice to
the Secured Party of such change and, at the time of such written notification, such Debtor provides any financing statements or fixture
filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(w)
Except in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and hold,
sale or return, sale on approval, or other conditional terms of sale without the consent of Secured Party which shall not be unreasonably
withheld.

 

(x)
No Debtor may relocate its chief executive office to a new location without providing 30 days prior written notification thereof to the
Secured Party and so long as, at the time of such written notification, such Debtor provides any financing statements or fixture filings
necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)
Each Debtor and its subsidiaries were organized and remains organized solely under the laws of the state set forth next to such Debtor’s
or subsidiary’s name in Schedule D attached hereto, which Schedule D sets forth each Debtor’s and its subsidiary’s
organizational identification number or, if any Debtor or its subsidiaries does not have one, states that one does not exist.

 

(z)
(i) The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names except
as set forth on Schedule E attached hereto; (iii) no Debtor has used any name other than that stated in the preamble hereto or
as set forth on Schedule E for the preceding five years; and (iv) no entity has merged into any Debtor or been acquired by any
Debtor within the past five years except as set forth on Schedule E.

 

    	 

     

    

 

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(aa)
At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require or
permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver such Collateral
to Secured Party.

 

(bb)
Each Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions Secured Party regarding the
Pledged Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106
(or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or one that would
confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

(cc)
Each Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to Secured Party, or, if such delivery is
not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created
by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall cause the underlying
chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(dd)
Upon the occurrence of any Event of Default and at any time thereafter, if there is any investment property or deposit account included
as Collateral that can be perfected by “control” through an account control agreement, the applicable Debtor shall, promptly
following the request of Secured Party, cause such an account control agreement, in form and substance in each case satisfactory to Secured
Party, to be entered into and delivered to Secured Party.

 

(ee)
To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Secured Party.

 

(ff)
To the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with Secured Party in notifying
such third party of the Secured Party’ security interest in such Collateral and shall use its best efforts to obtain an acknowledgement
and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory to Secured Party.

 

(gg)
If any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Party in a writing
signed by such Debtor of the particulars thereof and grant to the Secured Party in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to Secured Party.

 

    	 

     

    

 

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(hh)
Each Debtor shall immediately provide written notice to the Secured Party of any and all accounts which arise out of contracts with any
governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in such accounts
and proceeds thereof, shall execute and deliver to Secured Party an assignment of claims for such accounts and cooperate with Secured
Party in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal, state or
local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof.

 

(ii)
Without limiting the generality of the other obligations of the Debtor hereunder, each Debtor shall promptly (i) cause to be registered
at the United States Copyright Office all of its material copyrights, and (ii) give Secured Party notice whenever it acquires (whether
absolutely or by license) or creates any additional material Intellectual Property.

 

(jj)
Each Debtor will from time to time, at the joint and several expense of the Debtor, promptly execute and deliver all such further instruments
and documents, and take all such further action as may be necessary or desirable, or as Secured Party may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and
enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this Agreement.

 

(kk)
Schedule F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by any of the Debtor as of the date hereof. Schedule F lists all material licenses in favor of any Debtor
for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks of the
Debtor have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtor have been duly
recorded at the United States Copyright Office.

 

(ll)
Except as set forth on Schedule G attached hereto, none of the account debtors or other persons or entities obligated on any of
the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local statute
or rule in respect of such Collateral.

 

(mm)
Until the Obligations shall have been paid and performed in full, the Company covenants that it shall promptly direct any direct or indirect
subsidiary of the Company formed or acquired after the date hereof to enter into a Subsidiary Guarantee in favor of the Secured Party.

 

6.
Effect of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests upon
the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets of the
issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement of any of Secured
Party’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights notwithstanding
any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor is party.

 

    	 

     

    

 

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7.
Defaults. The following events shall be “Events of Default”:

 

(a)
The occurrence of an Event of Default (as defined in the Note) under the Note;

 

(b)
Any representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)
The failure by any Debtor to observe or perform any of its obligations hereunder for five (5) days after delivery to such Debtor of notice
of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame
and such Debtor is using best efforts to cure same in a timely fashion; or

 

(d)
If any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having jurisdiction
over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any Debtor has any liability
or obligation purported to be created under this Agreement.

 

8.
Duty To Hold In Trust. Upon the occurrence of any Event of Default and at any time thereafter, each Debtor shall, upon receipt
of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Note or otherwise,
or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust
for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Party, pro-rata
in proportion to their respective then-currently outstanding principal amount of Note for application to the satisfaction of the Obligations
(and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of the remaining Note).

 

9.
Rights and Remedies Upon Default.

 

(a)
Upon the occurrence of any Event of Default and at any time thereafter, the Secured Party shall have the right to exercise all of the
remedies conferred hereunder and under the Note, and the Secured Party shall have all the rights and remedies of a secured party under
the UCC. Without limitation, the Secured Party shall have the following rights and powers:

 

(i)
The Secured Party shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor shall
assemble the Collateral and make it available to Secured Party at places which Secured Party shall reasonably select, whether at such
Debtor’s premises or elsewhere, and make available to Secured Party, without rent, all of such Debtor’s respective premises
and facilities for the purpose of Secured Party taking possession of, removing or putting the Collateral in saleable or disposable form.

 

    	 

     

    

 

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(ii)
Upon notice to the Debtor by Secured Party, all rights of each Debtor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise with respect to Collateral and all rights of each Debtor to receive the dividends and interest which
it would otherwise be authorized to receive and retain, shall cease. Upon such notice, Secured Party shall have the right to receive,
for the benefit of the Secured Party, any interest, cash dividends or other payments on the Collateral and, at the option of Secured
Party, to exercise in Secured Party’s discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing,
Secured Party shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole
and absolute owner thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral
in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral
or any Debtor or any of its direct or indirect subsidiaries.

 

(iii)
Secured Party shall have the right to operate the business of each Debtor using the Collateral and shall have the right to assign, sell,
lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without
special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times
and at such place or places, and upon such terms and conditions as Secured Party may deem commercially reasonable, all without (except
as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption
of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral, Secured Party
may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and
discharged of all trusts, claims, right of redemption and equities of any Debtor, which are hereby waived and released.

 

(iv)
Secured Party shall have the right (but not the obligation) to notify any account Debtor and any obligors under instruments or accounts
to make payments directly to Secured Party, and to enforce the Debtor’ rights against such account Debtor and obligors.

 

(v)
Secured Party may (but is not obligated to) direct any financial intermediary or any other person or entity holding any investment property
to transfer the same to Secured Party or its designee.

 

(vi)
Secured Party may (but is not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Secured Party or any designee or any purchaser of any
Collateral.

 

(b)
Secured Party shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. Secured Party may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If Secured Party sells any of the Collateral on credit, the Debtor will
only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it may have to
a judicial hearing in advance of the enforcement of any of Secured Party’s rights and remedies hereunder, including, without limitation,
its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect
thereto.

 

    	 

     

    

 

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(c)
For the purpose of enabling Secured Party to further exercise rights and remedies under this Section 9 or elsewhere provided by agreement
or applicable law, each Debtor hereby grants to Secured Party an irrevocable, nonexclusive license (exercisable without payment of royalty
or other compensation to such Debtor) to use, license or sublicense following an Event of Default, any Intellectual Property now owned
or hereafter acquired by such Debtor, and wherever the same may be located, and including in such license access to all media in which
any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.

 

10.
Applications of Proceeds. In the event of an Event of Default and the subsequent disposition of Collateral by the Secured Party,
the proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on account of any insurance
policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding, storing, processing and preparing
for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in connection therewith) of
the Collateral, to the reasonable attorneys’ fees and expenses incurred by Secured Party in enforcing the Secured Party’
rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations
pro rata among the Secured Party (based on then-outstanding principal amounts of Note at the time of any such determination), and to
the payment of any other amounts required by applicable law, after which the Secured Party shall pay to the applicable Debtor any surplus
proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts
to which the Secured Party is legally entitled, the Debtor will be liable for the deficiency, together with interest thereon, at the
Default Rate described in the Loan Agreement (the “Default Rate”), and the reasonable fees of any attorneys employed
by the Secured Party to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages and
demands against the Secured Party arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to
the gross negligence or willful misconduct of the Secured Party as determined by a final judgment (not subject to further appeal) of
a court of competent jurisdiction.

 

11.
Costs and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with
any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements, partial
releases and/or termination statements related thereto or any expenses of any searches reasonably required by Secured Party. The Debtor
shall also pay all other claims and charges which in the reasonable opinion of Secured Party are reasonably likely to prejudice, imperil
or otherwise affect the Collateral or the Security Interests therein. The Debtor will also, upon demand, pay to Secured Party the amount
of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which Secured
Party may incur in connection with the creation, perfection, protection, satisfaction, foreclosure, collection or enforcement of the
Security Interest and the preparation, administration, continuance, amendment or enforcement of this Agreement and pay to Secured Party
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents,
which the Secured Party may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the
sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights
of the Secured Party under the Note. Until so paid, any fees payable hereunder shall be added to the principal amount of the Note and
shall bear interest at the Default Rate.

 

    	 

     

    

 

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12.
Responsibility for Collateral. The Debtor assumes all liabilities and responsibility in connection with all Collateral, and the
Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or
its unavailability for any reason. Without limiting the generality of the foregoing, (a) Secured Party does not (i) have any duty (either
before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating to the Collateral,
or (ii) have any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor shall remain obligated and
liable under each contract or agreement included in the Collateral to be observed or performed by such Debtor thereunder. Secured Party
shall not have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the
receipt by Secured Party of any payment relating to any of the Collateral, nor shall Secured Party be obligated in any manner to perform
any of the obligations of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency
of any payment received by Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under
any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to Secured Party or to which Secured Party may be entitled at any time or times.

 

13.
Security Interests Absolute. All rights of the Secured Party and all obligations of the Debtor hereunder, shall be absolute and
unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Note or any agreement entered into
in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from
the Note or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the
Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guarantee, or any
other security, for all or any of the Obligations; (d) any action by the Secured Party to obtain, adjust, settle and cancel in its sole
discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any other circumstance which might
otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all or any part of the Security Interests
granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even
if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy.
Each Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the
event that at any time any transfer of any Collateral or any payment received by the Secured Party hereunder shall be deemed by final
order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency
laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event,
each Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any
prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance
with the terms and provisions hereof. Each Debtor waives all right to require the Secured Party to proceed against any other person or
entity or to apply any Collateral which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy.
Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

 

    	 

     

    

 

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14.
Term of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Note
have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities of
the Debtor contained in this Agreement shall survive and remain operative and in full force and effect regardless of the termination
of this Agreement.

 

15.
Power of Attorney; Further Assurances.

 

(a)
Each Debtor authorizes Secured Party, and does hereby make, constitute and appoint Secured Party and its officers, agents, successors
or assigns with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of Secured
Party or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts,
money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect of
the Collateral that may come into possession of Secured Party; (ii) to sign and endorse any financing statement pursuant to the UCC or
any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against Debtor, assignments, verifications
and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security
interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv) to demand, collect, receipt
for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual Property or provide licenses
respecting any Intellectual Property; and (vi) generally, at the option of Secured Party, and at the expense of the Debtor, at any time,
or from time to time, to execute and deliver any and all documents and instruments and to do all acts and things which Secured Party
deems necessary to protect, preserve and realize upon the Collateral and the Security Interests granted therein in order to effect the
intent of this Agreement and the Note all as fully and effectually as the Debtor might or could do; and each Debtor hereby ratifies all
that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall
be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding. The designation
set forth herein shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents
or agreements to which any Debtor is subject or to which any Debtor is a party. Without limiting the generality of the foregoing, after
the occurrence and during the continuance of an Event of Default, each Secured Party is specifically authorized to execute and file any
applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with
the United States Patent and Trademark Office and the United States Copyright Office.

 

    	 

     

    

 

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(b)
On a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing
and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C attached
hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested
by Secured Party, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes of this Agreement,
or for assuring and confirming to Secured Party the grant or perfection of a perfected security interest in all the Collateral under
the UCC.

 

(c)
Each Debtor hereby irrevocably appoints Secured Party as such Debtor’s attorney-in-fact, with full authority in the place and instead
of such Debtor and in the name of such Debtor, from time to time in Secured Party’s discretion, to take any action and to execute
any instrument which Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing,
in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral
without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral as
“all assets” or “all personal property” or words of like import, and ratifies all such actions taken by Secured
Party. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long
as any of the Obligations shall be outstanding.

 

16.
Notices. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Loan
Agreement (as such term is defined in the Note).

 

17.
Other Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the
guarantee, endorsement or property of any other person, firm, corporation or other entity, then Secured Party shall have the right, in
its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying
or affecting any of the Secured Party’ rights and remedies hereunder.

 

18.
Miscellaneous.

 

(a)
No course of dealing between the Debtor and the Secured Party, nor any failure to exercise, nor any delay in exercising, on the part
of the Secured Party, any right, power or privilege hereunder or under the Note shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

 

(b)
All of the rights and remedies of the Secured Party with respect to the Collateral, whether established hereby or by the Note or by any
other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

 

    	 

     

    

 

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(c)
This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this Agreement may be
waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Debtor and the Secured
Party holding 67% or more of the principal amount of Note then outstanding, or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought.

 

(d)
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(e)
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
and the Guarantors, if any, may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Secured Party (other than by merger). Any Secured Party may assign any or all of its rights under this Agreement to any Person (as
defined in the Loan Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee agrees in writing
to be bound, with respect to the transferred Obligations, by the provisions of this Agreement that apply to the “Secured Party.”

 

(g)
Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

    	 

     

    

 

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(h)
Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Except to the extent
mandatorily governed by the jurisdiction or situs where the Collateral is located, each Debtor agrees that all proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Note (whether brought against
a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of San Diego. Except to the extent mandatorily governed by the jurisdiction
or situs where the Collateral is located, each Debtor hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of San Diego for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably
waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby.

 

(i)
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all
of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same
with the same force and effect as if such facsimile signature were the original thereof.

 

(j)
All Debtor shall jointly and severally be liable for the obligations of each Debtor to the Secured Party hereunder.

 

(k)
Each Debtor shall indemnify, reimburse and hold harmless Secured Party and its respective partners, members, shareholders, officers,
directors, employees and agents (and any other persons with other titles that have similar functions) (collectively, “Indemnitees”)
from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including
fees relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee
in any way related to or arising from or alleged to arise from this Agreement or the Collateral, except any such losses, claims, liabilities,
damages, penalties, suits, costs and expenses which result from the gross negligence or willful misconduct of the Indemnitee as determined
by a final, nonappealable decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in
limitation of, any other indemnification provision in the Note, the Loan Agreement (as such term is defined in the Note) or any other
agreement, instrument or other document executed or delivered in connection herewith or therewith.

 

(l)
Nothing in this Agreement shall be construed to subject Secured Party to liability as a partner in any Debtor or any if its direct or
indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries that is a limited
liability company, nor shall Secured Party be deemed to have assumed any obligations under any partnership agreement or limited liability
company agreement, as applicable, of any such Debtor or any of its direct or indirect subsidiaries or otherwise, unless and until any
such Secured Party exercises its right to be substituted for such Debtor as a partner or member, as applicable, pursuant hereto.

 

(m)
To the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or compliance
with any provisions of any of the Organizational Documents, the Debtor hereby grant such consent and approval and waive any such noncompliance
with the terms of said documents.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

     

    

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

	DEBTOR:
    SurgePays, Inc.	 
	 	 	 
	By:	/s/
    Kevin Brian Cox	 
	Name:	Kevin
    Brian Cox	 
	Title:	CEO	 

 

	SECURED
    PARTY: 	 
	 	 	 
	By:	/s/
    Name of President and CEO of Secured Party	 
	Name:	 	 
	Title:Exhibit
10.3

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”) is made and entered into as of August 8, 2022, by and between SurgePays, Inc., a corporation
incorporated under the laws of the State of Nevada with a principal place of business at 3124 Brother Blvd., Suite 104, Bartlett, TN
38133 (the “Company”), and Anthony Evers, an individual residing at 1375 E. Woodfield Road, Suite 410, Schaumburg, IL 60173
(“Executive”).

 

RECITALS

 

	 	A.	Executive
    is knowledgeable with respect to the business of the Company
	 	 	 
	 	B.	Company
    desires to offer employment to Executive and Executive desires to be employed by Company.
	 	 	 
	 	C.	Company
    and Executive agree to enter into an Employment Agreement providing for the term set forth in Article I below, on the terms and conditions
    herein provided.
	 	 	 
		D.
    	The
    Employment Agreement dated March 1, 2020, fully executed, Board of Directors approved and proper public filing, be superseded with
    this Agreement. Specifically, the Additional Bonus provision of 1,000,000 shares of common stock, which had a defined value of $2,000,000,
    to be awarded to the Executive within thirty (30) days of the Value Weighted Average Price (“VWAP”) trading at $2.00
    or more for any ninety (90) day trading period is cancelled and replace with the clauses herein depicted. This date was May 19, 2022.

 

In
consideration of the mutual promises set forth in this Agreement the parties hereto agree as follows:

 

ARTICLE
I

 

Term
of Employment

 

Subject
to the provisions of Article V, and upon the terms and subject to the conditions set forth herein, the Company will employ Executive
for the period beginning on the date hereof (the “Commencement Date”) and ending on the five (5) year anniversary of the
date hereof (the “Initial Term”). The Initial Term shall be automatically renewed for successive consecutive one (1) year
periods (each, a “Renewal Term” and the Initial Term and Renewal Term are collectively referred to as the “term of
employment”) thereafter unless either party sends written notice to the other party, not more than 270 days and not less than 90
days before the end of the then-existing term of employment, of such party’s desire to terminate the Agreement at the end of the
then-existing term, in which case this Agreement will terminate at the end of the then-existing term. Executive will serve the Company
during the term of employment.

 

ARTICLE
II

 

Duties

 

2.01
(a) During the term of employment, Executive will:

 

(i)
Promote the interests, within the scope of his duties, of the Company and devote his full working time and efforts to the Company’s
business and affairs;

 

(ii)
Serve as the Chief Financial Officer of the Company; and

 

(iii)
Perform the duties and services consistent with the title and function of such office, including without limitation, those set forth
in the By-Laws of the Company.

 

(b)
Notwithstanding anything contained in clause 2.01(a)(i) above to the contrary, nothing contained herein or under law shall be construed
as preventing Executive from (i) investing Executive’s personal assets in such form or manner as will not require any services
on the part of Executive in the operation or the affairs of the companies in which such investments are made and in which his participation
is solely that of an investor; (ii) engaging (whether or not during normal business hours) in any other professional, civic, or philanthropic
activities, provided that Executive’s engagement does not result in a violation of his covenants under this Section or Article
VI hereof; or (iii) accepting appointments to the boards of directors of other companies provided that the Board of Directors of the
Company reasonably approves of such appointments and Executive’s performance of his duties on such boards does not result in a
violation of his covenants under this Section or Article VI hereof.

 

    	 

    	 

    

 

ARTICLE
III

 

Base
Compensation

 

3.01
The Company will compensate Executive for the duties performed by him hereunder by payment of a base salary at the rate of Four Hundred
Fifty Thousand Dollars ($450,000) per annum (the “Base”), payable in equal semimonthly installments, subject to customary
withholding for federal, state, and local taxes and other normal and customary withholding items. Provided that the Company’s EBITDA
is positive with respect to the prior calendar year, the Base will be increased on January 1 of each year by six percent (6%) per annum
(which figure shall act as a surrogate for the service cost of living increases) over the then-existing Base. All dollar references contained
herein shall be references to United States dollars.

 

3.02a
Signing Bonus.
The Company shall pay the Executive a one-time signing
bonus of Fifty percent (50%) of the base salary identified in 3.01 (equivalent to $225,000) (the “Signing Bonus”) within
thirty (30) days following the Commencement Date, less payroll deductions and all required withholdings. If the Executive resigns from
employment with the Company without Good Reason or the Company terminates the Executive’s employment for Cause, in each case prior
to the first anniversary of the Commencement Date, the Executive must repay to the Company a pro rata portion of the Signing Bonus representing
the remainder of the period between the date of termination and the one-year anniversary of the Commencement Date. If any repayment is
due to the Company pursuant to this Section, the Executive agrees that the amount of the repayment due is payable in full immediately
via personal check or payroll deduction and the Executive agrees to permit the Company to deduct this amount from any monies or benefits
due to the Executive including wages, bonuses, reimbursements and/or expenses and any remaining amounts are the Executive’s responsibility,
payable via personal check immediately but in no event later than thirty (30) days of the Executive’s last day of employment with
the Company.

 

3.02b
Restricted Vesting Shares. In consideration of the agreement
of the Employee to the extension effected by this agreement, the Corporation shall grant to the Employee under the yet to be adopted
SurgePays Inc.Stock Incentive Plan (the “Plan”) on the date of execution of Agreement (the “Restricted Shares Grant
Date”), a restricted stock award for 500,000 shares (the “Restricted Shares”) of common stock of the Corporation under
the Plan which Restricted Shares shall be subject to certain restrictions including, without limitation, that the Employee will not sell,
transfer, pledge, hypothecate, assign or otherwise dispose of the Restricted Shares except as set forth under the Plan or the restricted
stock agreement to be entered into by the Corporation and the Employee concurrently herewith. Vesting of the Restricted Shares shall
occur in bi-annual installments over five years commencing on December 31, 2022 on which date 50,000 shares of the Restricted Shares
shall vest and continuing to vest thereafter on each of July 1 and December 31, for the years of 2023-2027. Restricted shares shall vest;
provided, however, in each case, that the Employee continues to be employed by the Corporation on each such date through December 31,
2027. Notwithstanding the foregoing, the Restricted Shares shall immediately vest, in full, upon the occurrence of any of the following
events: (i) the Employee’s death, (ii) the Employee’s Total Disability (as defined in the Employment Agreement) and (iii)
a Change of Control (as defined in the Employment Agreement) of the Corporation; provided, however, in each case, that the Employee continues
to be employed by the Corporation on the date of the occurrence of such event. The grant shall be evidenced by, and subject to the additional
terms and conditions contained in, the Plan and the associated restricted stock agreement.

 

3.02c
Restricted Signing Shares. In consideration of the agreement
of the Employee to the extension effected by this agreement, the Corporation shall grant to the Employee 100,000 shares of the Company’s
common stock within five (5) business days of stockholder approval of the Plan.

 

    	 

    	 

    

 

3.03
Cash Bonus. In addition to the Base, for each year during the Initial Term and Renewal Term, the Company shall pay to the Executive
a bonus determined by the relationship between the Company’s annual performance and an annual target performance set each year
by mutual agreement between the Board of Directors and the Executive (the “Target”) as follows: The greater of the Cash Percentage
or:

 

	%
    of Target	 	>150%	 	149-120%	 	119-100%	 	99-80%	 	79-60%	 	Under
    60%
	%
    of Base Salary	 	45%	 	40.5%	 	33%	 	18%	 	9%	 	0%

 

Such
bonus shall be paid no later than March 15 of the next calendar year.

 

“Cash
Percentage” means 10% of the Company’s calendar year EBITDA for amounts of EBITDA between $0 and $1,000,000; 7.5% of the
Company’s calendar year EBITDA for amounts of EBITDA between $1,000,001 and $2,000,000; 5% of the Company’s calendar year
EBITDA for amounts of EBITDA between $2,000,001 and $3,000,000; and 2.5% of the Company’s calendar year EBITDA for amounts of EBITDA
greater than $3,000,000.

 

3.04
Stock Bonus. The Executive will participate in the Company’s executive equity incentive plan consistent with other C-level
officers, once adopted by the Company. In addition, Executive will receive the following stock-based bonuses:

 

	 	(A)	EBITDA
    based issuances. The first time the Company reaches i) positive cash flow EBITDA for a quarter, Executive will receive 150,000
    shares of the Company’s common stock, ii) positive cash flow of over $1,000,000 EBITDA for a quarter, Executive will receive
    150,000 shares of the Company’s common stock, iii) positive cash flow of over $3,000,000 EBITDA for a quarter, Executive will
    receive 150,000 shares of the Company’s common stock, and iv) positive cash flow of over $5,000,000 EBITDA for a quarter, Executive
    will receive 150,000 shares of the Company’s common stock. Such issuance to be issued before the last business day of the following
    quarter in which such milestone is achieved.
	 	 	 
	 	(B)	Market
    Capitalization Based Issuances. The Executive shall qualify to receive (i) an issuance of 150,000 shares immediately upon the
    market capitalization of the Company reaching $250,000,000, (ii) an issuance of 150,000 shares immediately upon the market capitalization
    of the Company reaching $500,000,000, (iii) an issuance of 150,000 shares immediately upon the market capitalization of the Company
    reaching $1,000,000,000, (iv) an issuance of 150,000 shares immediately upon the market capitalization of the Company reaching $2,000,000,000,
    (v) an issuance of 150,000 shares immediately upon the market capitalization of the Company reaching $3,000,000,000, (vi) an issuance
    of 150,000 shares immediately upon the market capitalization of the Company reaching $4,000,000,000, and (vii) an issuance of 150,000
    shares immediately upon the market capitalization of the Company reaching $5,000,000,000; in each case such issuance to be issued
    on the last business day of the quarter in which such milestone is achieved so long as the Executive is employed by the Company on
    such day,
	 	 	 
	 	(C)	Business
    Metrics Growth Based Issuances. The Executive shall qualify to receive (i) an issuance of 75,000 shares immediately upon 25,000
    stores becoming active on SurgePays network, (ii) an issuance of 75,000 shares immediately upon 50,000 stores becoming active on
    SurgePays network, (iii) an issuance of 75,000 shares immediately upon 100,000 stores becoming active on SurgePays network (iv) an
    issuance of 150,000 shares immediately upon the total subscribers (Wireless MVNO, Mobile Broadband or digital content customers)
    of the Company reaching 250,000, (v) an issuance of 150,000 shares immediately upon the total subscribers (Wireless MVNO, Mobile
    Broadband or digital content customers) of the Company reaching 500,000, (vi) an issuance of 150,000 shares immediately upon the
    total subscribers (Wireless MVNO, Mobile Broadband or digital content customers) of the Company reaching 750,000, (vii) an issuance
    of 150,000 shares immediately upon the total subscribers (Wireless MVNO, Mobile Broadband or digital content customers) of the Company
    reaching 1,000,000, and (vii) additional issuance of 150,000 shares of stock per increment of 500,000 subscribers total subscribers
    (Wireless MVNO, Mobile Broadband or digital content customers) of the Company; in each case such issuance to be issued on the last
    business day of the quarter in which such milestone is achieved so long as the Executive is employed by the Company on such day.

 

    	 

    	 

    

 

	 	(D)	Executive
    Stock Options. Following the adoption of the Plan, the Executive will receive the following stock-based bonuses on January 1
    of each calendar year (each a “Grant Date”) at an exercise price equal to the greater of (i) fair market value per share
    (as quoted on NASDAQ – the closing price) as of the Grant Date and (ii) $4.29: (i) 75,000 options to purchase shares of the
    Company’s common stock, such options vesting quarterly over the period beginning January 2022 and ending December 2022; (ii)
    75,000 options to purchase shares of the Company’s common stock, such options vesting quarterly over the period beginning January
    2023 and ending December 2023; (iii) 75,000 options to purchase shares of the Company’s common stock, such options vesting
    quarterly over the period beginning January 2024 and ending December 2024; (iv) 75,000 options to purchase shares of the Company’s
    common stock, such options vesting quarterly over the period beginning January 2025 and ending December 2025; and (v) 75,000 options
    to purchase shares of the Company’s common stock, such options vesting quarterly over the period beginning January 2026 and
    ending December 2026. 
	 	 	 
	 	(E)	All
    of the awards referenced in subparagraphs (A) - (D) of this Section 3.04 shall be made pursuant to the Plan, subject to approval
    by the Company’s shareholders of a sufficient number of shares available for issuance under the Plan. The Plan and related
    award agreements shall provide for the acceleration of all vesting requirements referenced in subparagraphs (A) – (D) upon
    a Change in Control, and for the use of cash, shares or other method of cashless exercise to satisfy all tax withholding requirements
    which shall be borne by the Executive. If any of the awards referenced in subparagraphs (A) – (D) are earned but cannot be
    made pursuant to the Plan because the Board has not approved the mailing of either (i) a proxy statement or (ii) a notice and access
    card regarding the availability of proxy materials to the shareholders to vote to have an increase in the authorized shares under
    the Plan be approved by the shareholders within 90 days following the date upon which such award is due and owing, the Company shall
    make a cash payment to Executive in lieu of each such award at the time the award otherwise would have been made in an amount equal
    to three (3) times the number of shares to be issued to the Executive pursuant to subparagraphs (A) – (D) multiplied by the
    volume average weighted price (VWAP) of the Company’s common stock during the period commencing on the date of this Agreement
    and ending on the day prior to the date of payment. In the event that the Board has approved the mailing of either (i) a proxy statement
    or (ii) a notice and access card regarding the availability of proxy materials to the shareholders, as required pursuant to this
    Section, and the shareholders do not approve an increase in the authorized shares under the Plan, the Company shall make a cash payment
    to Executive in lieu of each such award at the time the award otherwise would have been made in an amount equal to one (1) times
    the number of shares to be issued to the Executive pursuant to subparagraphs (A) – (D) multiplied by the volume average weighted
    price (VWAP) of the Company’s common stock during the period commencing on the date of this Agreement and ending on the day
    prior to the date of payment. In the event that the Company does not have the available cash or cannot otherwise afford to pay cash
    owed pursuant to this Section in the Board’s discretion, the Company shall be able to issue a promissory note to the Executive
    with terms which are mutually agreeable amongst the Company (as approved by the Board) and the Executive.

 

ARTICLE
IV

 

Reimbursement
and Employment Benefits

 

4.01
Health and Other Medical. Executive shall be eligible to participate in all health, medical, dental, and life insurance employee
benefits as are available from time to time to other key executive employees (and their families) of the Company, including a Life Insurance
Plan, Medical and Dental Insurance Plan, and a Long-Term Disability Plan (the “Insurance Plans”). The Company shall pay all
premiums with respect to such Insurance Plans. To the extent that such premiums are deemed to be includable in Executive’s gross
income and taxable (the “Reimbursement”), the Company shall pay to the Executive on or before March 15 of the year after
the premium payment(s) the quotient of the amount of Reimbursement divided by 0.54, and then subtracting the Reimbursement from this
amount (e.g., if the Reimbursement is $1,000.00, then the Company would pay to the Executive the sum of $851.85, which is $1,000.00 divided
by 0.54, and subtracting the amount of Reimbursement). 

 

4.02
Vacation. Executive shall be entitled to Four (4) weeks of vacation and five (5) personal days per year, to be taken in such amounts
and at such times as shall be mutually convenient for Executive and the Company. Any time not taken by Executive in one year shall be
carried forward to subsequent years. If all such vacation and personal time to which Executive is entitled is not taken by Executive
before the termination of this Agreement, Executive shall be entitled to be reimbursed upon termination (for any reason) for such lost
time in accordance with the Base then in effect.

 

    	 

    	 

    

 

4.03
Performance-Enhancing Items. Executive shall be entitled to receive from the Company (a) an annual car allowance up to three thousand
seven-hundred and fifty dollars ($3,750.00) per annum, and (b) reimbursement by the Company for home office expenses up to five hundred
dollars ($500.00) per month, including, without limitation, the purchase and maintenance of a home computer with linkup facilities to
the Company, a home facsimile, printer and scanner, interconnection of two telephone or cable connections to the Internet, laptop computer,
portable mobile phone, together with any charges for the use thereof. To the extent that any and all such reimbursements or payments
by the Company pursuant to this Section 4.03 are includable in Executive’s gross income and taxable (the “Allowances”),
then the Company shall, on or before March 15 of the year after the payment is made, pay to the Executive the quotient of the amount
of Allowances divided by 0.54, and then subtracting the Allowances from this amount (e.g., if the Allowances are $1,000.00, then the
Company would pay to the Executive the sum of $851.85, which is $1,000.00 divided by 0.54, and subtracting the amount of the Allowances).

 

4.04
Reimbursable Expenses. The Company shall in accordance with its standard policies in effect from time to time reimburse Executive
for all reasonable out-of-pocket expenses actually incurred by him in the conduct of the business of the Company including business class
air travel for flights, quality hotels and rental cars, entertainment and similar executive expenditures provided that Executive submits
all substantiation of such expenses to the Company on a timely basis in accordance with such standard policies.

 

4.05
Savings Plan. Executive will be eligible to enroll and participate, and be immediately vested in (to the extent legally possible
and in accordance with existing Company benefit plans), all Company savings and retirement plans, including any 401(k) plans.

 

4.06
Life Insurance. The Company shall pay all premiums for Executive to receive on his (a) term life insurance premiums paid by Executive
on his own life, provided that the life insurance proceeds do not exceed 300% of Executive’s previous year’s Base and Bonus
To the extent that any and all such reimbursements or payments by the Company pursuant to this Section 4.06 are includable in Executive’s
gross income and taxable (“Premiums”), then the Company shall, on or before March 15 of the year after the payment is made,
pay to the Executive the quotient of the amount of Premiums divided by 0.54, and then subtracting the Premiums from this amount (e.g.,
if the Premiums are $1,000.00, then the Company would pay to the Executive the sum of $851.85, which is $1,000.00 divided by 0.54, and
subtracting the amount of the Premiums).

 

4.07
Directors and Officers Liability Insurance. The Company will provide liability insurance coverage protecting Executive and his
estate, to the extent permitted by law against suits by fellow employees, shareholders and third parties and criminal and regulatory
investigations arising out of any alleged act or omission occurring with the course and scope of Executive’s employment with the
Company. Such insurance will be in an amount not less than two million dollars ($2,000,000).

 

ARTICLE
V

 

Termination

 

5.01
Automatic. This Agreement shall be automatically terminated upon the first to occur of the following (a) the Company’s termination
pursuant to section 5.02, (b) the Executive’s termination pursuant to section 5.03 or (c) the Executive’s death.

 

5.02
By the Company. This Agreement (and Executive’s employment) may be terminated by the Company upon written notice to the
Executive upon the first to occur of the following:

 

(a)
Disability. Upon the Executive’s Disability (as defined herein). The term “Disability” shall mean the Executive
cannot physically or mentally perform the essential functions of the position with or without reasonable accommodations for a period
of six (6) consecutive months or more.

 

    	 

    	 

    

 

(b)
Cause. Upon the Executive’s commission of Cause (as defined herein). The term “Cause” shall mean the following:

 

(i)
Any willful violation by Executive of any material provision of this Agreement (including without limitation Sections 6.01 and 6.02 hereof)
causing demonstrable and serious injury to the Company, upon written notice of same by the Company describing in detail the breach asserted
and stating that it constitutes notice pursuant to this Section 5.02(b)(i), which breach, if capable of being cured, has not been cured
within sixty (60) days after such notice or such longer period of time if Executive proceeds with due diligence not later than ten (10)
days after such notice to cure such breach.

 

(ii)
Embezzlement by Executive of funds or property of the Company;

 

(iii)
Fraud or willful misconduct on the part of Executive in the performance of his duties as an employee of the Company, or gross negligence
on the part of Executive in the performance of his duties as an employee of the Company causing demonstrable and serious injury to the
Company, provided that the Company has given written notice of such breach which notice describes in detail the breach asserted and stating
that it constitutes notice pursuant to this Section 5.02(b)(iii), and which breach, if capable of being cured, has not been cured within
sixty (60) days after such notice or such longer period of time if Executive proceeds with due diligence not later than ten (10) days
after such notice to cure such breach; or

 

(iv)
A felony conviction of Executive under the laws of the United States or any state (except for any conviction based on a vicarious liability
theory and not the actual conduct of the Executive).

 

Upon
a termination for Cause, the Company shall pay Executive his Base and benefits including vacation pay through the date of termination
of employment; and Executive shall receive no severance under this Agreement.

 

5.03
By the Executive. This Agreement may be terminated by the Executive upon written notice to the Company upon the first to occur
of the following:

 

(a)
Change in Control. Upon the occurrence of a “Change in Control” (as defined herein) of the Company. The term “Change
in Control” shall mean any of the following: (i) a replacement of more than one half of the Board of Directors of the Company from
that membership of the Board of Directors which exists as of the date hereof, (ii) sale or exchange of all or substantially all of the
assets of the Company, (iii) a merger or consolidation involving the Company where the Company is not the survivor in such merger or
consolidation, (iv) a liquidation, winding up, or dissolution of the Company, or (v) an assignment for the benefit of creditors, foreclosure
sale, voluntary filing of a petition under the Bankruptcy Reform Act of 1978, or an involuntary filing under such act which filing is
not stayed or dismissed within 45 days of filing.

 

(b)
Constructive Termination. Upon the occurrence of a “Constructive Termination” (as defined herein) by the Company.
The term “Constructive Termination” shall mean any of the following:

 

(i)
Any breach by the Company of any material provision of this Agreement, including, without limitation, the assignment to the Executive
of duties inconsistent with his position specified in Section 2.01 hereof or any breach by the Company of such Section,;

 

(ii)
A substantial and continued reduction in the level of support, services, staff, secretarial resources, office space, and accoutrements
below that which is reasonably necessary for the performance of Executive’s duties hereunder, consistent with that of other key
executive employees;

 

(iii)
a reduction in the Executive’s base salary or target bonus (but not including any diminution related to a broader compensation
reduction that is not limited to any particular employee or executive);

 

    	 

    	 

    

 

(iv)
a requirement that the Executive be based anywhere other than within 25 miles of Memphis, Tennessee;

 

(v)
a material diminution in the Executive’s title, duties, or responsibilities from those in effect on the date hereof (it being understood
that the Executive’s obligation to report to the Board and the Board’s exercise of its final authority over Company matters
shall not give rise to any such claim of diminution);

 

provided,
however, that no event shall constitute Constructive Termination unless the Executive has notified the Company in writing describing
the event which constitutes Constructive Termination and then only if the Company fails to cure such event within thirty (30) days after
the Company’s receipt of such written notice.

 

5.04
Consequences of Termination. Upon any termination of Executive’s employment with the Company for any reason, except for
a termination for Cause pursuant to Section 5.02(b), the Executive shall be entitled to (a) a payment equal to the greater of (i) two
(2) years’ worth of the then-existing Base and the last year’s Bonus and (ii) the Base payable through the remaining Initial
Term (the “Severance”), and (b) retain the benefits set forth in Article IV for the remainder of the Initial Term or Renewal
Term, as then applicable. The Severance shall be paid in a lump sum upon termination with such payments discounted by the U.S. Treasury
rate most closely comparable to the applicable time period left in the Agreement. As a condition to the Company’s obligation to
pay said Severance, Executive shall execute a comprehensive release of any and all claims that Executive may have against the Company
(excluding any claims for the Company to pay or provide Accrued Obligations and Severance) (Release of Claims) within twenty one (21)
days of the effective date of termination of employment, and Executive shall not revoke said release in writing within seven (7) days
of execution, provided however that if the twenty one (21) day period spans two calendar years, payment shall be made in the second calendar
year.

 

ARTICLE
VI

 

Covenants

 

6.01
Executive shall treat as confidential and keep secret the affairs of the Company and shall not at any time during the term of employment
or for a period of five years thereafter, without the prior written consent of the Company, divulge, furnish, or make known or accessible
to, or use for the benefit of, anyone other than the Company and its subsidiaries and affiliates any information of a confidential nature
relating in any way to the business of the Company or its subsidiaries or affiliates or their clients and obtained by him in the course
of his employment hereunder. provided, however, that confidential information of the Company shall not include any information
known or available generally to the public (other than as a result of unauthorized disclosure by Executive).

 

6.02
All records, papers, and documents kept or made by Executive relating to the business of the Company or its subsidiaries or affiliates
or their clients shall be and remain the property of the Company.

 

6.03
Following the termination of Executive’s employment hereunder for any reason except for those set forth in section 5.03 in which
event this section is inapplicable, Executive shall not for a period of twelve (12) months from such termination, solicit any employee
of the Company to leave such employ to enter the employ of Executive or of any person, firm, or Company with which Executive is then
associated (except solicitation by general means such as newspapers). During Executive’s employment with the Company and for a
period of 12 months after termination of Executive’s employment at any time and for any reason, except for those set forth in Section
5.03 in which event this section is inapplicable, Executive shall not, directly or indirectly, solicit any person who during any portion
of the time of Executive’s employment or at the time of termination of Executive’s employment with the Company, was a client,
customer, policyholder, vendor, consultant or agent of the Company to discontinue business, in whole or in part, with the Company. Executive
further agrees that, during such time, if such a client, customer, policyholder, vendor, or consultant or agent contacts Executive about
discontinuing business with the Company or moving that business elsewhere, Executive will inform such client, customer, policyholder,
vendor, consultant or agent that he or she cannot discuss the matter further without the consent of the Company

 

    	 

    	 

    

 

6.04.
Executive agrees as follows, except in the event of a termination pursuant to Section 5.03, in which event this section is inapplicable:

 

(a)
Executive agrees that during the term of his employment with the Company, neither he nor any of his Affiliates (Executive’s Affiliates
is defined as any legal entity in which Executive directly or indirectly owns at least a 25% interest or any entity or person which is
under the control of the Executive) will directly or indirectly compete with the Company in any way in any business in which the Company
or its Affiliates is engaged in, and that he will not act as an officer, director, employee, consultant, shareholder, lender, or agent
of any entity which is engaged in any business of the same nature as, or in competition with the businesses in which the Company is now
engaged or in which the Company becomes engaged during the term of employment; provided, however, that this Section shall not prohibit
Executive or any of his Affiliates from purchasing or holding an aggregate equity interest of up to 10% in any publicly traded business
in competition with the Company, so long as Executive and his Affiliates combined do not purchase or hold an aggregate equity interest
of more than 10%. Furthermore, Executive agrees that during the term of employment, he will not accept any board of director seat or
officer role or undertake any planning for the organization of any business activity competitive with the Company (without the approval
of the Board of Directors) and Executive will not combine or conspire with any other Executives of the Company for the purpose of the
organization of any such competitive business activity.

 

(b)
In order to protect the Company against the unauthorized use or the disclosure of any confidential information of the Company presently
known or hereinafter obtained by Executive during his employment under this Agreement, Executive agrees that for a period of twelve (12)
months following the termination of this Agreement for any reason, neither Executive nor any of his Affiliates, shall, directly or indirectly,
for itself or himself or on behalf of any other corporation, person, firm, partnership, association, or any other entity (whether as
an individual, agent, servant, employee, employer, officer, director, shareholder, investor, principal, consultant or in any other capacity):

 

(i)
engage or participate in any business, regardless of where situated, which engages in direct market competition with such businesses
being conducted by the Company during the term of employment; or

 

(ii)
assist or finance any person or entity in any manner or in any way inconsistent with the intents and purposes of this Agreement.

 

6.05.
Executive agrees that at no time during his employment by the Company or thereafter, shall he make, or cause or assist any other person
to make, any statement or other communication to any third party which impugns or attacks, or is otherwise critical of, the reputation,
business or character of the Company or any of its respective directors, officers or Executives. In addition, the Company agrees that
its Board of Director and executives will not disparage the Executive so long as the Executive separates from the Company in good standing
and abides by all terms of this agreement and signed non-disclosure and non-compete agreements. Nothing contained herein shall be deemed
to prevent Executive from performing his duties hereunder, including but not limited to conducting candid, internal discussions. This
paragraph shall not prohibit any person from testifying truthfully in response to a lawful subpoena.

 

 

6.06
If at the time of enforcement of any provision of this Agreement, a court shall hold that the duration, scope, or area restriction of
any provision hereof is unreasonable under circumstances now or then existing, the parties hereto agree that the maximum duration, scope,
or area reasonable under the circumstances shall be substituted by the court for the stated duration, scope, or area.

 

6.07
Executive acknowledges that any breach by him of the provisions of this Article VI of this Agreement shall cause irreparable harm to
the Company and that a remedy at law for any breach or attempted breach of Article VI of this Agreement will be inadequate, and agrees
that, notwithstanding Article VIII hereof, the Company shall be entitled to exercise all remedies available to it, including specific
performance and injunctive and other equitable relief, in the case of any such breach or attempted breach.

 

    	 

    	 

    

 

6.08
The Company represents and warrants that this Agreement has been duly authorized, executed, and delivered on behalf of the Company and
that this Agreement represents the legal, valid, and binding obligation of the Company and does not conflict with any other agreement
binding on the Company.

 

ARTICLE
VII

 

Assignment

 

7.01
This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company without relieving the Company
of its obligations hereunder. Neither this Agreement nor any rights hereunder shall be assignable by Executive and any such purported
assignment by him shall be void.

 

ARTICLE
VIII

 

Entire
Agreement

 

8.01
This Agreement constitutes the entire understanding between the Company and Executive concerning his employment by the Company or subsidiaries
and supersedes any and all previous agreements between Executive and the Company or any of its affiliates or subsidiaries concerning
such employment, including, without limitation, the Original Employment Agreement. Each party hereto shall pay its own costs and expenses
(including legal fees) except as otherwise expressly provided herein incurred in connection with the preparation, negotiation, and execution
of this Agreement. This Agreement may not be changed orally, but only in a written instrument signed by both parties hereto.

 

ARTICLE
IX

 

Applicable
Law. Miscellaneous

 

9.01
This Agreement shall be governed by and construed in accordance with the laws of the State of New York. All actions brought to interpret
or enforce this Agreement shall be brought in courts located in the State of New York.

 

9.02
In addition to all other rights and benefits under this Agreement, each party agrees to reimburse the other for, and indemnify and hold
harmless such party against, all costs and expenses (including attorney’s fees) incurred by such party (whether or not during the
term of this Agreement or otherwise), if and to the extent that such party prevails on or is otherwise successful on the merits with
respect to any action, claim, or dispute relating in any manner to this Agreement or to any termination of this Agreement or in seeking
to obtain or enforce any right or benefit provided by or claimed under this Agreement, taking into account the relative fault of each
of the parties and any other relevant considerations.

 

9.03
The Company shall indemnify and hold harmless Executive to the full extent authorized or permitted by law with respect to any claim,
liability, action, or proceeding instituted or threatened against or incurred by Executive or his legal representatives and arising in
connection with Executive’s conduct or position at any time as a director, officer, employee, or agent of the Company or any subsidiary
thereof. The Company shall not change, modify, alter, or in any way limit the existing indemnification and reimbursement provisions relating
to and for the benefit of its directors and officers without the prior written consent of the Executive, including any modification or
limitation of any directors and officers liability insurance policy.

 

9.04
No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision
of this Agreement to be performed by such other party shall be deemed a continuing waiver or a waiver of any similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party hereto which are not set forth expressly in this Agreement.

 

9.05
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and effect.

 

    	 

    	 

    

 

9.06
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

 

9.07
The section headings contained in this Agreement are inserted for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

9.08
This Agreement shall at all times be administered and interpreted in a manner which is consistent with and complies with the requirements
of Section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury regulations and other interpretive guidance
issued thereunder, including any guidance or regulations that may be issued after the effective date of the Agreement (“Section
409A”). To the extent necessary to comply with Section 409A, the term “termination of employment” shall mean “separation
from service” as defined in Section 409A. Notwithstanding anything in this
Agreement to the contrary, if Executive is deemed by the Company at the time of Executive’s “separation from service”
to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits
to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A, such
portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month
period measured from the date of Executive’s separation from service with the Company or (ii) the date of Executive’s death.
Upon the first business day following the expiration of the applicable Section 409A period, all payments deferred pursuant to the preceding
sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive
under this Agreement shall be paid as otherwise provided herein.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	 	Company:
	 	 	 
	 	Surgepays,
    Inc
	 	 	 
	 	By:	/s/
    Kevin Brian Cox
	 	Name:	Kevin
    Brian Cox
	 	Title:	Chief
Executive Officer
	 	 	 
	 	Executive:
	 	 	 
	 	Anthony
    Evers
	 	 	 
	 	/s/
    Anthony Evers

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