Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of January 12, 2018, is entered into by and between DIGERATI TECHNOLOGIES,
INC., a Nevada corporation, (the “Company”) and PEAK ONE OPPORTUNITY FUND, L.P., a Delaware limited partnership (the
“Buyer”).

 

WITNESSETH:

 

WHEREAS, the
Company and the Buyer are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration afforded, inter alia, by Rule 506 under Regulation D (“Regulation D”) as promulgated by the United
States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933
Act”), and/or Section 4(2) of the 1933 Act; and

 

WHEREAS, the
Buyer wishes to purchase from the Company, and the Company wishes to sell the Buyer, upon the terms and subject to the conditions
of this Agreement, securities consisting of the Company’s Convertible Debentures due three years from the respective dates
of issuance (the “Debentures”), each of which are in the form of Exhibit A hereto, which will be convertible
into shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), in the aggregate
principal amount of up to Six Hundred Thousand and 00/100 Dollars ($600,000.00), for an aggregate Purchase Price of up to Five
Hundred Forty Thousand and 00/100 Dollars ($540,000.00), all upon the terms and subject to the conditions of this Agreement, the
Debentures, and other related documents;

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. DEFINITIONS; AGREEMENT TO PURCHASE.

 

a. Certain Definitions.
As used herein, each of the following terms has the meaning set forth below, unless the context otherwise requires:

 

(i) “Affiliate”
means, with respect to a specific Person referred to in the relevant provision, another Person who or which controls or is controlled
by or is under common control with such specified Person.

 

(ii) “Certificates”
means certificates representing the Conversion Shares issuable hereunder, each duly executed on behalf of the Company and issued
hereunder.

 

(iii) “Closing
Date” means the date on which one of the three (3) Closings are held, which are the Signing Closing Date, the Second Closing
Date and the Third Closing Date.

 

(iv) [Reserved]

 

     

    

    

 

(v)
“Commitment Fee” shall have the meaning ascribed to such term in Section 12(a).

 

(vi) “Common Stock”
shall have the meaning ascribed to such term in the Recitals.

 

(vii) “Conversion
Amount” shall mean the Conversion Amount as defined in the Debentures, provided, however that for purposes of the
foregoing calculation, the full indebtedness under the Debentures shall be deemed immediately convertible, notwithstanding the
4.99% limitation on ownership set forth in the Debentures.

 

(viii) “Conversion
Price” means the Conversion Price as defined in the Debentures.

 

(ix) “Conversion
Shares” means the shares of Common Stock issuable upon conversion of the Debentures.

 

(x) “DWAC Operational”
means that the Common Stock is eligible for clearing through the Depository Trust Company (“DTC”) via the DTC’s
Deposit Withdrawal Agent Commission or “DWAC” system and active and in good standing for DWAC issuance by the Transfer
Agent (as defined herein).

 

(xi) “Dollars”
or “$” means United States Dollars.

 

(xii) “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(xiii) “Investments”
means Peak One Investments, LLC, the general partner of the Buyer.

 

(xiv) “Irrevocable
Resolutions” has the meaning set forth in Section 8(i).

 

(xv) “Market Price
of the Common Stock” means (x) the closing bid price of the Common Stock for the period indicated in the relevant provision
hereof (unless a different relevant period is specified in the relevant provision), as reported by Bloomberg, LP or, if not so
reported, as reported on the OTCQB, OTCQX or OTC Pink or (y) if the Common Stock is listed on a stock exchange, the closing price
on such exchange, as reported by Bloomberg LP.

 

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(xvi)
“Material Adverse Effect” means a material adverse effect on the business, operations or condition (financial or otherwise)
or results of operation of the Company and its Subsidiaries taken as a whole, in the reasonable commercial discretion of the Buyer,
irrespective of any finding of fault, magnitude of liability (or lack of financial liability). Without limiting the generality
of the foregoing, the occurrence of any of the following, in the reasonable commercial discretion of the Buyer, shall be considered
a Material Adverse Effect: (i) any final money, judgment, writ or warrant of attachment, or similar process (including an arbitral
determination) in excess of One Hundred Fifty Thousand Dollars ($150,000) shall be entered or filed against the Company or any
of its Subsidiaries (including, in any event, products liability claims against the Company or its Subsidiaries), (ii) the suspension
or withdrawal of any governmental authority or permit pertaining to a material amount of the Company’s or any Subsidiary’s
products or services, (iii) the loss of any material insurance coverage (including, in any case, comprehensive general liability
coverage, products liability coverage or directors and officers coverage, in each case in effect at the time of execution and
delivery of this Agreement), (iv) an action by a regulatory agency or governmental body affecting the Common Stock (including,
without limitation, (1) the commencement of any regulatory investigation of which the Company is aware, the suspension of trading
of the Common Stock by the Financial Industry Regulation Authority (“FINRA”), the SEC, the OTC Bulletin Board (“OTCBB”)
or the OTC Markets Group, Inc., the failure of the Common Stock to be DTC eligible or the placing of the Common Stock on the DTC
“chill list” or (2) the engaging in any market manipulation or other unlawful or improper trading or other activity
by any Affiliate), (v) the Company’s independent registered accountants shall resign under circumstances where a disagreement
exists between the Company and its independent registered accountants (unless a new independent registered accountant is immediately
appointed and all previously filed financial statements are still able to be relied upon), (vi) the Company shall fail to timely
file any disclosure document as required by applicable federal or state securities laws and regulations or by the rules and regulations
of any exchange, trading market or quotation system to which the Company or the Common Stock is subject, or (vii) the Chief Executive
Officer of the Company or any other key full-time officer or director of the Company, shall, for any reason (including, without
limitation, termination, resignation, retirement, death or disability) cease to act on behalf of the Company in the same role
and to the same extent as his or her involvement as of the date of execution and delivery of this Agreement.

 

(xvii) “Person”
means any living person or any entity, such as, but not necessarily limited to, a corporation, partnership or trust.

 

(xviii) “Purchase
Price” means the price that the Buyer pays for the Debentures at each respective Closing, which are the Signing Purchase
Price, the Second Purchase Price and the Third Closing Price, as the case may be.

 

(xix) “Registrable
Securities” shall mean the Conversion Shares, and, to the extent applicable, and any other shares of capital stock or other
securities of the Company or any successor to the Company that are issued upon exchange of Conversion Shares and/or such Restricted
Stock.

 

(xx) “Registration Statement”
shall mean a registration statement on Form S-1 (or any successor thereto) filed or contemplated to be filed by the Company with
the SEC under the Securities Act.

 

(xxi) “Restricted
Stock” shall mean shares of Common Stock which are not freely trading shares when issued.

 

(xxii) “Securities”
means the Debentures and the Shares.

 

(xxiii) “Shares”
means the Conversion Shares.

 

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(xxiv)
“Second Closing Date” shall have the meaning ascribed to such term in Section 6(b).

 

(xxv) “Second Debenture”
means the second of the three (3) Debentures, in the principal amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00),
which is issued by the Company to the Buyer on the Second Closing Date.

 

(xxvi) “Second
Purchase Price” shall be One Hundred Eighty Thousand and 00/100 Dollars ($180,000.00)

 

(xxvii) “Signing
Closing Date” shall have the meaning ascribed to such term in Section 6(a).

 

(xxviii) “Signing
Debenture” means the first of the three (3) Debentures, in the principal amount of Two Hundred Thousand and 00/100 Dollars
($200,000.00), to be issued by the Company to the Buyer on the Signing Closing Date.

 

(xxix) “Signing
Purchase Price” shall be One Hundred Eighty Thousand and 00/100 Dollars ($180,000.00).

 

(xxx) “Subsidiary”
shall have the meaning ascribed to such term in Section 3(b).

 

(xxxi) “Third Closing
Date” shall have the meaning ascribed to such term in Section 6(c).

 

(xxxii) “Third
Debenture” means the third of the three (3) Debentures, in the principal amount of Two Hundred Thousand and 00/100 Dollars
($200,000.00), which is issued by the Company to the Buyer on the Third Closing Date.

 

(xxxiii) “Third
Purchase Price” shall be One Hundred Eighty Thousand and 00/100 Dollars ($180,000.00).

 

(xxxiv) “Transaction
Documents” means, collectively, this Agreement, the Debentures, the Transfer Agent Instruction Letter, the Irrevocable Resolutions
and the other agreements, documents and instruments contemplated hereby or thereby.

 

(xxxv) “Transfer
Agent” shall have the meaning ascribed to such term in Section 4(a).

 

(xxxvi) “Transfer
Agent Instruction Letter” shall have the meaning ascribed to such term in Section 5(a).

 

b. Purchase and Sale
of Debentures.

 

(i) The Buyer agrees
to purchase from the Company, and the Company agrees to sell to the Buyer, the Debentures on the terms and conditions set forth
below in this Agreement and the other Transaction Documents.

 

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(ii)
Subject to the terms and conditions of this Agreement and the other Transaction Documents, the Buyer will purchase the Debentures
at certain closings (each, a “Closing”) to be held on certain respective Closing Dates.

 

c. [Reserved]

 

(i) [Reserved]

 

(ii) [Reserved]

 

2. BUYER’S REPRESENTATIONS, WARRANTIES, ETC.

 

The Buyer represents
and warrants to, and covenants and agrees with, the Company as follows:

 

a. Investment Purpose.
Without limiting the Buyer’s right to sell the Shares pursuant to a Registration Statement, Buyer is purchasing the
Debentures, and will be acquiring the Conversion Shares, for its own account for investment only and not with a view towards the
public sale or distribution thereof and not with a view to or for sale in connection with any distribution thereof.

 

b. Accredited Investor
Status. Buyer is (i) an “accredited investor” as that term is defined in Rule 501 of the General Rules and Regulations
under the 1933 Act by reason of Rule 501(a)(3), (ii) experienced in making investments of the kind described in this Agreement
and the related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to
protect its own interests in connection with the transactions described in this Agreement, and the related documents, and (iv)
able to afford the entire loss of its investment in the Securities.

 

c. Subsequent Offers
and Sales. All subsequent offers and sales of the Securities by the Buyer shall be made pursuant to registration of the Shares
under the 1933 Act or pursuant to an exemption from registration and compliance with applicable states’ securities laws.

 

d. Reliance on Exemptions.
Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of,
and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the
Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the
Securities.

 

e.
Information. Buyer and its advisors have been furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer. Buyer and
its advisors have been afforded the opportunity to ask questions of the Company and have received complete and satisfactory answers
to any such inquiries. Without limiting the generality of the foregoing, Buyer has also had the opportunity to obtain and to review
the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2017, and Quarterly Report on Form 10-Q for
the fiscal quarter ended October 31, 2017 (collectively, the “SEC Documents”).

 

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f. Investment Risk.
Buyer understands that its investment in the securities constitutes high risk investment, its investment in the Securities
involves a high degree of risk, including the risk of loss of the Buyer’s entire investment.

 

g. Governmental Review.
Buyer understands that no United States federal or state agency or any other government or governmental agency has passed
on or made any recommendation or endorsement of the Securities.

 

h. Organization; Authorization.
Buyer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. This
Agreement and the other Transaction Documents have been duly and validly authorized, executed and delivered on behalf of the Buyer
and create a valid and binding agreement of the Buyer enforceable in accordance with its terms, subject as to enforceability to
general principles of equity and to bankruptcy, insolvency, moratorium and other similar laws affecting the enforcement of creditors’
rights generally.

 

i. Residency. The
state in which any offer to sell Securities hereunder was made to or accepted by the Buyer is the state shown as the Buyer’s
address contained herein, and Buyer is a resident of such state only.

 

3. COMPANY REPRESENTATIONS AND WARRANTIES, ETC.

 

The Company represents and warrants to the Buyer that:

 

a. Concerning the
Debentures and the Shares. There are no preemptive rights of any stockholder of the Company to acquire the Debentures or the
Shares pursuant to the Nevada Revised Statutes.

 

b. Organization;
Subsidiaries; Reporting Company Status. Attached hereto as Schedule 3(b) is an organizational chart describing
all of the Company’s wholly-owned and majority-owned subsidiaries (the “Subsidiaries”) and other
Affiliates, including the relationships among the Company and such Subsidiaries, including as to each Subsidiary its
jurisdiction of organization and the percentage of ownership held by the Company, and the parent company of the Subsidiary,
including the percentage of ownership of the Company held by it. The Company and each Subsidiary is a corporation or other
form of businesses entity duly organized, validly existing and in good standing under the laws its respective jurisdiction of
organization, and each of them has the requisite corporate or other power to own its properties and to carry on its business
as now being conducted. The Company and each Subsidiary is duly qualified as a foreign corporation or other entity to do
business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it
makes such qualification necessary, other than those jurisdictions in which the failure to so qualify would not have a
Material Adverse Effect. The Common Stock is listed and traded on the OTCM (as defined below)
(trading symbol: DTGI). The Company has received no notice that it has not cured, either oral or written, from FINRA, the
SEC, or any other organization, with respect to the continued eligibility of the Common Stock for listing on the OTCM, and
the Company currently maintains all requirements for the continuation of such listing. The Company is an operating company in
that, among other things (A) it primarily engages, wholly or substantially, directly or indirectly through a majority owned
Subsidiary or Subsidiaries, in the production or sale, or the research or development, of a product or service other than the
investment of capital, (B) it is not an individual or sole proprietorship, (C) it is not an entity with no specific business
plan or purpose and its business plan is not to engage in a merger or acquisition with an unidentified company or companies
or other entity or person, and (D) it intends to use the proceeds from the sale of the Debentures solely for the operation of
the Company’s business and uses other than personal, family, or household purposes.

 

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c. Authorized Shares.
Schedule 3(c) sets forth all capital stock and derivative securities of the Company that are authorized for issuance and
that are issued and outstanding. All issued and outstanding shares of Common Stock have been duly authorized and validly issued
and are fully paid and nonassessable. The Company has sufficient authorized and unissued shares of Common Stock as may be necessary
to effect the issuance of the Shares, assuming the prior issuance and exercise, exchange or conversion, as the case may be, of
all derivative securities authorized, as indicated in Schedule 3(c). The Shares have been duly authorized and, when issued
upon conversion of, or as interest on, the Debentures, the Shares will be duly and validly issued, fully paid and non-assessable
and will not subject the holder thereof to personal liability by reason of being such holder. At all times, the Company shall keep
available and reserved for issuance to the holders of the Debentures shares of Common Stock duly authorized for issuance against
the Debentures.

 

d. Authorization.
This Agreement, the issuance of the Debentures (including without limitation the incurrence of indebtedness thereunder), the
issuance of the Conversion Shares under the Debentures, and the other transactions contemplated by the Transaction Documents, have
been duly, validly and irrevocably authorized by the Company, and this Agreement has been duly executed and delivered by the Company.
The Company’s board of directors, in the exercise of its fiduciary duties, has irrevocably approved the entry into and performance
of the Transaction Documents, including, without limitation the sale of the Debentures and the issuance of Conversion Shares, based
upon a reasonable inquiry concerning the Company’s financing objectives and financial situation. Each of the Transaction
Documents, when executed and delivered by the Company, are and will be, valid, legal and binding agreements of the Company, enforceable
in accordance with their respective terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors’ rights generally.

 

e.
Non-contravention. The execution and delivery of the Transaction Documents, the issuance of the Securities and the consummation
by the Company of the other transactions contemplated by this Agreement and the Debentures (including without limitation the incurrence
of indebtedness thereunder) do not and will not conflict with or result in a breach by the Company of any of the terms or provisions
of, or constitute a default under (i) the articles of incorporation or by-laws of the Company, each as currently in effect, (ii)
any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company is a party or by which
it or any of its properties or assets are bound, including any listing agreement for the Common Stock, except as herein set forth
or an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the triggering
of any anti-dilution rights, rights of first refusal or first offer on the part of holders of the Company’s securities,
(iii) to its knowledge, any existing applicable law, rule, or regulation or any applicable decree, judgment, or order of any court,
United States federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over the
Company or any of its properties or assets, or (iv) the Company’s listing agreement for its Common Stock (if applicable).

 

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f. Approvals. No
authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange
or market or the stockholders of the Company is required to be obtained by the Company for the entering into and performing this
Agreement and the other Transaction Documents (including without limitation the issuance and sale of the Securities to the Buyer
as contemplated by this Agreement) except such authorizations, approvals and consents that have been obtained, or such authorizations,
approvals and consents, the failure of which to obtain would not have a Material Adverse Effect.

 

g. SEC Filings; Rule
144 Status. None of the SEC Documents contained, at the time they were filed, any untrue statement of a material fact or omitted
to state any material fact required to be stated therein or necessary to make the statements made therein in light of the circumstances
under which they were made, not misleading. The Company has filed all requisite forms, reports and exhibits thereto with the SEC
as required. The Company is not aware of any event occurring on or prior to the execution and delivery of this Agreement that would
require the filing of, or with respect to which the Company intends to file, a Form 8-K after such time (except with respect to
this transaction). The Company satisfies the requirements of Rule 144(i)(2), and the Company shall continue to satisfy all applicable
requirements of Rule 144 (or any successor thereto) for so long as any Securities are outstanding and not registered pursuant to
an effective registration statement filed with the SEC.

 

h.
Absence of Certain Changes. Since October 31, 2017, when viewed from the perspective of the Company and its Subsidiaries
taken as a whole, there has been no material adverse change and no material adverse development in the business, properties, operations,
condition (financial or otherwise), or results of operations of the Company and its Subsidiaries (including, without limitation,
a change or development which constitutes, or with the passage of time is reasonably likely to become, a Material Adverse Effect),
except as disclosed in the SEC Documents. Since October 31, 2017, except as provided in the SEC Documents, the Company has not
(i) incurred or become subject to any material liabilities (absolute or contingent) except liabilities incurred in the ordinary
course of business consistent with past practices; (ii) discharged or satisfied any material lien or encumbrance or paid any material
obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary course of business consistent
with past practices; (iii) declared or made any payment or distribution of cash or other property to stockholders with respect
to its capital stock, or purchased or redeemed, or made any agreements to purchase or redeem, any shares of its capital stock;
(iv) sold, assigned or transferred any other tangible assets, or canceled any debts or claims, except in the ordinary course of
business consistent with past practices; (v) suffered any substantial losses or waived any rights of material value, whether or
not in the ordinary course of business, or suffered the loss of any material amount of existing business; (vi) made any changes
in employee compensation, except in the ordinary course of business consistent with past practices; or (vii) experienced any material
problems with labor or management in connection with the terms and conditions of their employment.

 

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i. Full Disclosure.
There is no fact known to the Company (other than general economic conditions known to the public generally or as disclosed
in the SEC Documents) that has not been disclosed in writing to the Buyer that (i) would reasonably be expected to have a Material
Adverse Effect, (ii) would reasonably be expected to materially and adversely affect the ability of the Company to perform its
obligations pursuant to the Transaction Documents, or (iii) would reasonably be expected to materially and adversely affect the
value of the rights granted to the Buyer in the Transaction Documents.

 

j. Absence of Litigation.
Except as described in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by any court,
public board or body pending or, to the knowledge of the Company, threatened against or affecting the Company, wherein an unfavorable
decision, ruling or finding would have a Material Adverse Effect or which would adversely affect the validity or enforceability
of, or the authority or ability of the Company to perform its obligations under, any of the Transaction Documents. The Company
is not a party to or subject to the provisions of, any order, writ, injunction, judgment or decree of any court or government agency
or instrumentality which could reasonably be expected to have a Material Adverse Effect.

 

k. Absence of Liens.
The Company’s assets are not encumbered by any liens or mortgages except as described in the SEC Documents or incurred
in the ordinary course of business.

 

l. Absence of Events
of Default. No event of default (or its equivalent term), as defined in the respective agreement, indenture, mortgage, deed
of trust or other instrument, to which the Company is a party, and no event which, with the giving of notice or the passage of
time or both, would become an event of default (or its equivalent term) (as so defined in such document), has occurred and is continuing,
which would have a Material Adverse Effect.

 

m.
No Undisclosed Liabilities or Events. The Company has no liabilities or obligations other than those disclosed in the SEC
Documents or those incurred in the ordinary course of the Company’s business since October 31, 2017, and which individually
or in the aggregate, do not or would not have a Material Adverse Effect. No event or circumstances has occurred or exists with
respect to the Company or its properties, business, condition (financial or otherwise), or results of operations, which, under
applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which
has not been so publicly announced or disclosed. There are no proposals currently under consideration or currently anticipated
to be under consideration by the Board of Directors or the executive officers of the Company which proposal would (x) change the
articles of incorporation, by-laws or any other charter document of the Company, each as currently in effect, with or without
shareholder approval, which change would reduce or otherwise adversely affect the rights and powers of the shareholders of the
Common Stock or (y) materially or substantially change the business, assets or capital of the Company.

 

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n. No Integrated Offering.
Neither the Company nor any of its affiliates nor any Person acting on its or their behalf has, directly or indirectly, at
any time during the six month period immediately prior to the date of this Agreement made any offer or sales of any security or
solicited any offers to buy any security under circumstances that would eliminate the availability of the exemption from registration
under Rule 506 of Regulation D in connection with the offer and sale of the Securities as contemplated hereby.

 

o. Dilution. The
number of Shares issuable upon conversion of the Debentures may increase substantially in certain circumstances, including, but
not necessarily limited to, the circumstance wherein the Market Price of the Common Stock declines prior to the conversion of the
Debentures. The Company’s executive officers and directors have studied and fully understand the nature of the securities
being sold hereby and recognize that they have a potential dilutive effect and further that the conversion of the Debentures and/or
sale of the Conversion Shares may have an adverse effect on the Market Price of the Common Stock. The Board of Directors of the
Company has concluded, in its good faith business judgment that such issuance is in the best interests of the Company. The Company
specifically acknowledges that its obligation to issue the Conversion Shares upon conversion of the Debentures is binding upon
the Company and enforceable regardless of the dilution such issuance may have on the ownership %s of other shareholders of the
Company.

 

p. Regulatory Permits.
The Company has all such permits, easements, consents, licenses, franchises and other governmental and regulatory authorizations
from all appropriate federal, state, local or other public authorities (“Permits”) as are necessary to own and lease
its properties and conduct its businesses in all material respects in the manner described in the SEC Documents and as currently
being conducted. All such Permits are in full force and effect and the Company has fulfilled and performed all of its material
obligations with respect to such Permits, and no event has occurred that allows, or after notice or lapse of time would allow,
revocation or termination thereof or will result in any other material impairment of the rights of the holder of any such Permit,
subject in each case to such qualification as may be disclosed in the SEC Documents. Such Permits contain no restrictions that
would materially impair the ability of the Company to conduct businesses in the manner consistent with its past practices. The
Company has not received notice or otherwise has knowledge of any proceeding or action relating to the revocation or modification
of any such Permit.

 

q. Reserved.

 

r. Hazardous Materials.
The Company is in compliance with all applicable Environmental Laws in all respects except where the failure to comply does
not have and could not reasonably be expected to have a Material Adverse Effect. For purposes of the foregoing:

 

“Environmental
Laws” means, collectively, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended,
the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, the Toxic Substances Control
Act, as amended, the Clean Air Act, as amended, the Clean Water Act, as amended, any other “Superfund” or “Superlien”
law or any other applicable federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to, or imposing liability or standards of conduct concerning, the environment or any Hazardous Material.

 

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“Hazardous
Material” means and includes any hazardous, toxic or dangerous waste, substance or material, the generation, handling,
storage, disposal, treatment or emission of which is subject to any Environmental Law.

 

s. Independent Public
Accountants. The Company’s auditor, LBB & Associates Ltd., LLP, is an independent registered public accounting firm
with respect to the Company, as required by the 1933 Act, the Exchange Act and the rules and regulations promulgated thereunder.

 

t. Internal Accounting
Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that (1)
transactions are executed in accordance with management’s general or specific authorization; (2) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain
accountability for assets; (3) access to assets is permitted only in accordance with management’s general or specific authorization;
and (4) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

 

u. Brokers. Other
than the Company’s arrangement with Mackey McFarlane, J. H. Darbie & Co., no Person (other than the Buyer and its principals,
employees and agents) is entitled to receive any consideration from the Company or the Buyer arising from any finder’s agreement,
brokerage agreement or other agreement to which the Company is a party.

 

v. DWAC Operational. The
Company is currently DWAC Operational.

 

4. CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

 

a.
Transfer Restrictions. The parties acknowledge and agree that (1) the Debentures have not been registered under the provisions
of the 1933 Act and the Shares have not been registered under the 1933 Act, and may not be transferred unless (A) subsequently
registered thereunder or (B) the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from
such registration; (2) any sale of the Securities made in reliance on Rule 144 promulgated under the 1933 Act (“Rule 144”)
may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such Securities
under circumstances in which the seller, or the Person through whom the sale is made, may be deemed to be an underwriter, as that
term is used in the 1933 Act, may require compliance with some other exemption under the 1933 Act or the rules and regulations
of the SEC thereunder; (3) at the request of the Buyer, the Company shall, from time to time, within three (3) business days of
such request, at the sole cost and expense of the Company, either (i) deliver to its transfer agent and registrar for the Common
Stock (the “Transfer Agent”) a written letter instructing and authorizing the Transfer Agent to process transfers
of the Shares at such time as the Buyer has held the Securities for the minimum holding period permitted under Rule 144, subject
to the Buyer’s providing to the Company and its Transfer Agent certain customary representations contemporaneously with
any requested transfer, or (ii) at the Buyer’s option or if the Transfer Agent requires further confirmation of the availability
of an exemption from registration, furnish to the Buyer an opinion of the Company’s counsel in favor of the Buyer (and,
at the request of the Buyer, any agent of the Buyer, including but not limited to the Buyer’s broker or clearing firm) and
the Transfer Agent, reasonably satisfactory in form, scope and substance to the Buyer and the Transfer Agent, to the effect that
a contemporaneously requested transfer of shares does not require registration under the 1933 Act, pursuant to the 1933 Act, Rule
144 or other regulations promulgated under the 1933 Act and (4) neither the Company nor any other Person is under any obligation
to register the Securities under the 1933 Act or to comply with the terms and conditions of any exemption thereunder.

 

    	 	11	 

    

    

 

b. Restrictive Legend.
The Buyer acknowledges and agrees that the Debentures, and, until such time as the Shares have been registered under the 1933
Act as contemplated hereby and sold in accordance with an effective Registration Statement, certificates and other instruments
representing any of the Securities shall bear a restrictive legend in substantially the following form (and a stop-transfer order
may be placed against transfer of any such Securities):

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

 

c. Reserved.

 

d. Securities Filings.
If required in the opinion of Company counsel, the Company will undertake and agree to make all necessary filings in connection
with the sale of the Securities to the Buyer required under any United States laws and regulations applicable to the Company (including
without limitation state “blue sky” laws), or by any domestic securities exchange or trading market, and to provide
a copy thereof to the Buyer promptly after such filing.

 

e.
Reporting Status; Public Trading Market; DTC Eligibility. So long as the Buyer beneficially own any Securities, (i) the
Company shall timely file, prior to or on the date when due, all reports that would be required to be filed with the SEC pursuant
to Section 13 or 15(d) of the Exchange Act if the Company had securities registered under Section 12(b) or 12(g) of the Exchange
Act; (ii) the Company shall not be operated as, or report, to the SEC or any other Person, that the Company is a “shell
company” or indicate to the contrary to the SEC or any other Person; (iii) the Company shall take all other action under
its control necessary to ensure the availability of Rule 144 under the 1933 Act for the sale of Shares by the Buyer at the earliest
possible date; and (iv) the Company shall at all times while any Securities are outstanding maintain its engagement of an independent
registered public accounting firm. Except as otherwise set forth in Transaction Documents, the Company shall take all action under
its control necessary to obtain and to continue the listing and trading of its Common Stock (including, without limitation, all
Registrable Securities) on the OTC Markets, Inc. (“OTCM”) on the OTC Pink (“OTCP”), OTCQB (“OTCQB”),
or OTCQX (“OTCQX”), and will comply in all material respects with the Company’s reporting, filing and other
obligations under the by-laws or rules of the Financial Industry Regulatory Authority (“FINRA”). If, so long as the
Buyer beneficially own any of the Securities, the Company receives any written notice from the OTCM, FINRA, or the SEC with respect
to either any alleged deficiency in the Company’s compliance with applicable rules and regulations (including without limitation
any comments from the SEC on any of the Company’s documents filed (or the failure to have made any such filing) under the
1933 Act or the Exchange Act) (each, a “Regulatory Notice”), then the Company shall promptly, and in any event within
three (3) business days, provide copies of the Regulatory Notice to the Buyer, and shall promptly, and in any event within five
(5) business days of receipt of the Regulatory Notice (a “Regulatory Response”), respond in writing to the OTCM, FIRNA
and/or SEC (as the case may be), setting forth the Company’s explanation and/or response to the issues raised in the Regulatory
Notice, with a view towards maintaining and/or regaining full compliance with the applicable rules and regulations of the OTCM,
FIRNA and/or SEC and maintaining or regaining good standing of the Company with the OTCM, FINRA and/or SEC, as the case may be,
the intent being to ensure that the Company maintain its reporting company status with the SEC and that its Common Stock be and
remain available for trading on the OTCP, OTCQB, or OTCQX. Further, at all times while any Securities are outstanding, the Common
Stock shall be DWAC Operational, and the Common Stock shall not be subject to any DTC “chill” designation or similar
restriction on the clearing of the Common Stock through DTC.

 

    	 	12	 

    

    

 

f. Use of Proceeds.
The Company shall use the proceeds from the sale of the Debentures for working capital purposes only.

 

g.
Available Shares. Commencing on the date of execution and delivery of this Agreement, the Company shall have and maintain
authorized and reserved for issuance, free from preemptive rights, that number of shares equal to Seven Hundred percent (700%)
of the number of shares of Common Stock (1) issuable based upon the conversion of the then-outstanding Debentures (including accrued
interest thereon) as may be required to satisfy the conversion rights of the Buyer pursuant to the terms and conditions of the
Debenture (for the avoidance of doubt, this shall be calculated based on the applicable conversion price that would result on
or after the date that is 180 days after the issuance date of the respective Debenture(s) regardless of the date of calculation)
(without giving effect to the 4.99% limitation on ownership as set forth in the Debentures), provided, however that for
purposes of the foregoing calculation, the full indebtedness under the Debentures shall be deemed immediately convertible and
(2) issuable to the Buyer on future Closing Dates, based upon the lowest closing bid price per share of the Common Stock on the
date before the most recent Closing Date (as reported by Bloomberg LP) (collectively in the aggregate the “Required Reserve
Amount”). The Company shall monitor its compliance with the foregoing requirements on an ongoing basis. If at any time the
Company does not have available an amount of authorized and non-issued Shares required to be reserved pursuant to this Section,
then the Company shall, without notice or demand by the Buyer, call within thirty (30) days of such occurrence and hold within
sixty (60) days of such occurrence a special meeting of shareholders, for the sole purpose of increasing the number of shares
authorized. Management of the Company shall recommend to shareholders to vote in favor of increasing the number of Common Stock
authorized at the meeting. Members of the Company’s management shall also vote all of their own shares in favor of increasing
the number of Common Stock authorized at the meeting. If the increase in authorized shares is approved by the stockholders at
the meeting, the Company shall implement the increase in authorized shares within three (3) business days following approval at
such meeting (or as soon thereafter as permitted by applicable law). Alternatively, to the extent permitted by applicable law,
in lieu of calling and holding a meeting as described above, the Company may, within thirty (30) days of the date when the Company
does not have available an amount of authorized and non-issued Shares required to be reserved as described above, procure the
written consent of stockholders to increase the number of shares authorized, and provide the stockholders with notice thereof
as may be required under applicable law (including without limitation Section 14(c) of the Exchange Act and Regulation 14C thereunder).
Upon obtaining stockholder approval as aforesaid, the Company shall cause the appropriate increase in its authorized shares of
Common Stock within three (3) business days (or as soon thereafter as permitted by applicable law). Company’s failure to
comply with these provisions will be an Event of Default (as defined in the Debentures).

 

h. Reimbursement.
If (i) Buyer and/or Investments becomes a party defendant in any capacity in any action or proceeding brought by any stockholder
of the Company, in connection with or as a result of the consummation of the transactions contemplated by the Transaction Documents,
or if the Buyer and/or Investments is impleaded in any such action, proceeding or investigation by any Person, or (ii) the Buyer
and/or Investments, other than by reason of its own gross negligence, willful misconduct or breach of law (as adjudicated by a
court of law having proper jurisdiction and such adjudication is not subject to appeal), is impleaded in any such action, proceeding
or investigation by any Person, then in any such case, the Company shall promptly reimburse the Buyer and/or Investments for its
or their reasonable legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith.
The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise
have, shall extend upon the same terms and conditions to any affiliates of the Buyer and/or Investments who are actually named
in such action, proceeding or investigation, and partners, directors, agents, employees and controlling Persons (if any), as the
case may be, of the Buyer, Investments and any such Affiliate, and shall be binding upon and inure to the benefit of any successors,
assigns, heirs and personal representatives of the Company, the Buyer, Investments and any such Affiliate and any such Person.
Except as otherwise set forth in the Transaction Documents, the Company also agrees that neither any Buyer, Investments nor any
such Affiliate, partners, directors, agents, employees or controlling Persons shall have any liability to the Company or any Person
asserting claims on behalf of or in right of the Company in connection with or as a result of the consummation of the Transaction
Documents.

 

    	 	13	 

    

    

 

i.
The Company shall provide the Transfer Agent and/or the Buyer, Investments or their respective brokerage and/or clearing firm
with all relevant legal opinions and other documentation reasonably requested by the Buyer or Investments in connection with the
issuance of the Conversion Shares or the Restricted Stock, or the sale thereof, to confirm the share issuance(s) such that the
Conversion Shares and/or Restricted Stock may be deposited with the applicable brokerage and/or clearing firm.

 

j. Reserved.

 

k. Notice of Material
Adverse Effect. The Company shall notify the Buyer (and any subsequent holder of the Debentures), as soon as practicable and
in no event later than three (3) business days of the Company’s knowledge of any Material Adverse Effect on the Company.
For purposes of the foregoing, “knowledge” means the earlier of the Company’s actual knowledge or the Company’s
constructive knowledge upon due inquiry.

 

l. Public Disclosure.
Except to the extent required by applicable law or by the SEC, absent the Buyer’s prior written consent, the Company
shall not reference the name of the Buyer in any press release, securities disclosure, business plan, marketing or funding proposal.

 

m. Nature of Transaction;
Savings Clause. It is the parties’ express understanding and agreement that the transactions contemplated by the Transaction
Documents constitute an investment and not a loan. If nonetheless such transactions are deemed to be a loan (as adjudicated by
a court of law having proper jurisdiction and such adjudication is not subject to appeal), the Company shall not be obligated or
required to pay interest at a rate that could subject Buyer to either civil or criminal liability as a result of such rate exceeding
the maximum rate that the Buyer is permitted to charge under applicable law, and the Company’s obligations under the Transaction
Documents shall not be void or voidable on the basis of the Buyer’s lack of any license or registration as a lender with
any governmental authority. It is expressly understood and agreed by the parties that neither the amounts payable pursuant to Section
12, any redemption premium, remedy upon an Event of Default (as defined in the Debentures) or any Acceleration Amount (as defined
in the Debentures), original issue discount nor any investment returns of the Buyer on the sale of the Debentures or the sale of
any Conversion Shares (whether unrealized or realized) shall be construed as interest. If, by the terms of the Debentures, any
other Transaction Document or any other instrument, Buyer is at any time required or obligated to pay interest at a rate exceeding
such maximum rate, interest payable under the Debenture and/or such other Transaction Documents or other instrument shall be computed
(or recomputed) at such maximum rate, and the portion of all prior interest payments (if any) exceeding such maximum shall be applied
to payment of the outstanding principal of the Debentures.

 

    	 	14	 

    

    

 

5. TRANSFER AGENT INSTRUCTIONS.

 

a.
Transfer Agent Instruction Letter. On or before the Signing Closing Date, the Company shall irrevocably instruct its Transfer
Agent in writing using the letter substantially in the form of Exhibit B annexed hereto, with only such modifications as
the Buyer agrees to, executed by the Company, the Buyer and the Transfer Agent (the “Transfer Agent Instruction Letter”),
to (i) reserve that number of shares of Common Stock as is required under Section 4(g) hereof, and (ii) issue Common Stock from
time to time upon conversion of the Debentures in such amounts as specified from time to time by the Buyer to the Transfer Agent
in a Notice of Conversion, in such denominations to be specified by the Buyer in connection with each conversion of the Debentures.
The Transfer Agent shall not be restricted from issuing shares from only the allotment reserved hereunder for the Conversion Amount
(as defined in the Debentures), but instead may, to the extent necessary to satisfy the amount of shares issuable upon conversion,
issue shares above and beyond the amount reserved on account of the Conversion Amount, without any additional instructions or
authorization from the Company, and the Company shall not provide the Transfer Agent with any instructions or documentation contrary
to the foregoing. As of the date of this Agreement, the Transfer Agent is American Stock Transfer & Trust Company. The Company
shall at all times while any Debentures are outstanding engage a Transfer Agent which is a party to the Transfer Agent Instruction
Letter. If for any reason the Company’s Transfer Agent is not a signatory of the Transfer Agent Instruction Letter while
any Debentures or Restricted Stock are outstanding and held by the Buyer, then such Transfer Agent shall nonetheless be deemed
bound by the Transfer Agent Instruction Letter, and the Company shall neither (i) permit the Transfer Agent to disclaim, disregard
or refuse to abide by the Transfer Agent’s obligations, terms and agreements set forth in the Transfer Agent Instruction
Letter, nor (ii) issue any instructions to the Transfer Agent contrary to the obligations, terms and agreements set forth in the
Transfer Agent Instruction Letter . The Company shall not terminate the Transfer Agent or otherwise change Transfer Agents without
at least fifteen (15) days prior written notice to the Buyer and with the Buyer’s prior written consent to such change,
which the Buyer may grant or withhold in its sole discretion. The Company shall continuously monitor its compliance with the share
reservation requirements and, if and to the extent necessary to increase the number of reserved shares to remain and be at least
the Required Reserve Amount to account for any decrease in the Market Price of the Common Stock, the Company shall immediately
(and in any event within three (3) business days) notify the Transfer Agent in writing of the reservation of such additional shares,
provided that in the event that the number of shares reserved for conversion of the Debentures is less than the Required
Reserve Amount, the Buyer may also directly instruct the Transfer Agent to increase the reserved shares as necessary to satisfy
the minimum reserved share requirement, and the Transfer Agent shall act accordingly, provided, further, that the Company
shall within three (3) business days provide any written confirmation, assent or documentation thereof as the Transfer Agent may
request to act upon a share increase instruction delivered by the Buyer. The Company shall provide the Buyer with a copy of all
written instructions to the Company’s Transfer Agent with respect to the reservation of shares simultaneously with the issuance
of such instructions to the Transfer Agent. The Company covenants that no instruction other than such instructions referred to
in this Section 5 and stop transfer instructions to give effect to Section 4(a) hereof prior to registration and sale of the Conversion
Shares under the 1933 Act will be given by the Company to the Transfer Agent and that the Conversion Shares shall otherwise be
freely transferable on the books and records of the Company as and to the extent provided in this Agreement and applicable law.
If the Buyer provides the Company and/or the Transfer Agent with an opinion of counsel reasonably satisfactory to the Company
that registration of a resale by the Buyer of any of the Securities in accordance with clause (1)(B) of Section 4(a) of this Agreement
is not required under the 1933 Act, the Company shall (except as provided in clause (2) of Section 4(a) of this Agreement) permit
the de-legending or transfer of the Securities and, in the case of the Conversion Shares, instruct the Company’s Transfer
Agent to issue one or more certificates for Common Stock without legend in such name and in such denominations as specified by
the Buyer.

 

    	 	15	 

    

    

 

b.
Conversion. (i) The Company shall permit the Buyer to exercise the right to convert the Debentures by faxing, emailing
or delivering overnight an executed and completed Notice of Conversion to the Company or the Transfer Agent. If so requested by
the Buyer or the Transfer Agent, the Company shall within three (3) business days respond with its endorsement so as to confirm
the outstanding principal amount of any Debenture submitted for conversion or shall reconcile any difference with the Buyer promptly
after receiving such Notice of Conversion.

 

(ii) The term “Conversion
Date” means, with respect to any conversion elected by the holder of the Debentures, the date specified in the Notice of
Conversion, provided the copy of the Notice of Conversion is given either via mail or facsimile to or otherwise delivered to the
Transfer Agent and/or the Company in accordance with the provisions hereof so that it is received by the Transfer Agent and/or
the Company on or before such specified date.

 

(iii) The Company shall
deliver (or will cause the Transfer Agent to deliver) the Conversion Shares issuable upon conversion as follows: (1) if the Company
is then DWAC Operational, via DWAC, (2) if the Common Stock is then eligible for the Depository Trust Company’s Direct Registration
System (“DRS”), if so requested by the Buyer, or (3) if the Company is not then DWAC Operational or the Common Stock
is not then eligible for DRS, in certificated form, to the Buyer at the address specified in the Notice of Conversion (which may
be the Buyer’s address for notices as contemplated by Section 10 hereof or a different address) via express courier, in each
case within three (3) business days (the “Delivery Date”) after (A) the business day on which the Company or the Transfer
Agent has received the Notice of Conversion (by facsimile, email or other delivery) or (B) the date on which payment of interest
and principal on the Debentures, which the Company has elected to pay by the issuance of Common Stock, as contemplated by the Debentures,
was due, as the case may be.

 

c. Failure to Timely
Issue Conversion Shares or De-Legended Shares. The Company’s failure to issue and deliver Conversion Shares to the Buyer
(either by DWAC, DRS or in certificated form, as required by Section 5(b)) on or before the Delivery Date shall be considered an
Event of Default, which shall entitle the Buyer to certain remedies set forth in the Debentures and provided by applicable law.
Similarly, the Company’s failure to issue and deliver Common Stock in unrestricted form without a restrictive legend
when required under the Transaction Documents shall entitle the Buyer to damages for the diminution in value (if any) of the relevant
shares between the date delivery was due versus the date ultimately delivered in unrestricted form. The Company acknowledges that
its failure to timely honor a Notice of Conversion (or the occurrence of any other Event of Default) shall cause definable financial
hardship on the Buyer(s) and that the remedies set forth herein and in the Debentures are reasonable and appropriate.

 

    	 	16	 

    

    

 

d.
Duties of Company; Authorization. The Company shall inform the Transfer Agent of the reservation of shares contemplated
by Section 4(g) and this Section 5, and shall keep current in its payment obligations to the Transfer Agent such that the Transfer
Agent will continue to process share transfers and the initial issuance of shares of Common Stock upon the conversion of Debentures.
The Company hereby authorizes and agrees to authorize the Transfer Agent to correspond and otherwise communicate with the Buyer
or their representatives in connection with the foregoing and other matters related to the Common Stock. Further, the Company
hereby authorizes the Buyer or its representative to provide instructions to the Transfer Agent that are consistent with the foregoing
and instructs the Transfer Agent to honor any such instructions. Should the Company fail for any reason to keep current in its
payment obligations to the Transfer Agent, the Buyer and/or Investments may pay such amounts as are necessary to compensate the
Transfer Agent for performing its duties with respect to share reservation, issuance of Conversion Shares and/or de-legending
certificates representing Restricted Stock, and all amounts so paid shall be promptly reimbursed by the Company. If not so reimbursed
within thirty (30) days, such amounts shall, at the option of the Buyer and without prior notice to or consent of the Company,
be added to the principal amount due under the Debenture(s) held by the Buyer, whereupon interest will begin to accrue on such
amounts at the rate specified in the Debentures.

 

e. Effect of Bankruptcy.
The Buyer shall be entitled to exercise its conversion privilege with respect to the Debentures notwithstanding the commencement
of any case under 11 U.S.C. §101 et seq. (the “Bankruptcy Code”). In the event the Company is a debtor
under the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11
U.S.C. §362 in respect of the Buyer’s conversion privilege. The Company hereby waives, to the fullest extent permitted,
any rights to relief it may have under 11 U.S.C. §362 in respect of the conversion of the Debentures. The Company agrees,
without cost or expense to the Buyer, to take or to consent to any and all action necessary to effectuate relief under 11 U.S.C.
§362.

 

6. CLOSINGS.

 

a. Signing Closing.
Promptly upon the execution and delivery of this Agreement, the Signing Debenture, and all conditions in Sections 7 and 8 herein
are met (the “Signing Closing Date”), (A) the Company shall deliver to the Buyer the following: (i) the Signing Debenture;
(ii) the Transfer Agent Instruction Letter; (iii) duly executed counterparts of the Transaction Documents; and (iv) an officer’s
certificate of the Company confirming the accuracy of the Company’s representations and warranties contained herein, and
(B) the Buyer shall deliver to the Company the following: (i) the Signing Purchase Price and (ii) duly executed counterparts of
the Transaction Documents (as applicable). The Company shall immediately pay the fees due under Section 12 of this Agreement upon
receipt of the Signing Purchase Price if Buyer does not withhold such amounts from the Signing Purchase Price pursuant to Section
12.

 

b. Second Closing.
At any time after sixty (60) days following the Signing Closing Date, subject to the mutual agreement of the Buyer and the
Company, for the “Second Closing Date” and subject to satisfaction of the conditions set forth in Sections 7 and 8,
(A) the Company shall deliver to the Buyer the following: (i) the Second Debenture; (ii) an amendment to the Transfer Agent Instruction
Letter instructing the Transfer Agent to reserve that number of shares of Common Stock as is required under Section 4(g) hereof,
if necessary; and (iii) an officer’s certificate of the Company confirming, as of the Second Closing Date, the accuracy of
the Company’s representations and warranties contained herein and updating Schedules 3(b), 3(c) and 3(k) as
of the Second Closing Date, and (B) the Buyer shall deliver to the Company the Second Purchase Price.

 

    	 	17	 

    

    

 

c.
Third Closing. At any time after sixty (60) days following the Second Closing Date, subject to the mutual agreement of
the Buyer and the Company, for the “Third Closing Date” and subject to satisfaction of the conditions set forth in
Sections 7 and 8, (A) the Company shall deliver to the Buyer the following: (i) the Third Debenture; (ii) an amendment to the
Transfer Agent Instruction Letter instructing the Transfer Agent to reserve that number of shares of Common Stock as is required
under Section 4(g) hereof, if necessary; and (iii) an officer’s certificate of the Company confirming, as of the Third Closing
Date, the accuracy of the Company’s representations and warranties contained herein and updating Schedules 3(b), 3(c)
and 3(k) as of the Third Closing Date, and (B) the Buyer shall deliver to the Company the Third Purchase Price.

 

d. Location and Time
of Closings. Each Closing shall be deemed to occur on the related Closing Date at the office of the Buyer’s counsel and
shall take place no later than 5:00 P.M., east coast time, on such day or such other time as is mutually agreed upon by the Company
and the Buyer.

 

7. CONDITIONS TO THE COMPANY’S OBLIGATION
TO SELL.

 

The Company’s
obligation to sell the Debentures to the Buyer pursuant to this Agreement on each Closing Date is conditioned upon:

 

a. Purchase Price.
Delivery to the Company of good funds as payment in full of the respective Purchase Price for the Debentures at each Closing
in accordance with this Agreement;

 

b. Representations
and Warranties; Covenants. The accuracy on the Closing Date of the representations and warranties of the Buyer contained in
this Agreement, each as if made on such date, and the performance by the Buyer on or before such date of all covenants and agreements
of the Buyer required to be performed on or before such date; and

 

c. Laws and Regulations;
Consents and Approvals. There shall not be in effect any law, rule or regulation prohibiting or restricting the transactions
contemplated hereby, or requiring any consent or approval which shall not have been obtained.

 

8. CONDITIONS TO THE BUYER’S OBLIGATION
TO PURCHASE.

 

The Buyer’s obligation to purchase the Debentures
at each Closing is conditioned upon:

 

a. Transaction Documents.
The execution and delivery of this Agreement by the Company;

 

b. Debenture(s). Delivery
by the Company to the Buyer of the Debentures to be purchased in accordance with this Agreement;

 

    	 	18	 

    

    

 

c.
Section 4(2) Exemption. The Debentures and the Conversion Shares shall be exempt from registration under the Securities
Act of 1933 (as amended), pursuant to Section 4(2) thereof;

 

d. DWAC Status.
The Common Stock shall be DWAC Operational;

 

e. Representations
and Warranties; Covenants. The accuracy in all material respects on the Closing Date of the representations and warranties
of the Company contained in this Agreement, each as if made on such date, and the performance by the Company on or before such
date of all covenants and agreements of the Company required to be performed on or before such date;

 

f. Good-faith Opinion.
It should be Buyer’s reasonable belief that (i) no Event of Default under the terms of any outstanding indebtedness of
the Company shall have occurred or would likely occur with the passage of time and (ii) no material adverse change in the financial
condition or business operations of the Company shall have occurred;

 

g. Legal Proceedings.
There shall be no litigation, criminal or civil, regulatory impairment or other legal and/or administrative proceedings challenging
or seeking to limit the Company’s ability to issue the Securities or the Common Stock;

 

h. [Reserved];

 

i. Corporate Resolutions.
Delivery by the Company to the Buyer a copy of resolutions of the Company’s board of directors, approving and authorizing
the execution, delivery and performance of the Transaction Documents and the transactions contemplated thereby in the form attached
hereto as Exhibit C (the “Irrevocable Resolutions”);

 

j. Officer’s
Certificate. Delivery by the Company to the Buyer of a certificate of the Chief Executive Officer of the Company in the form
attached hereto as Exhibit D;

 

k. Search Results.
Delivery by the Company to the Buyer of copies of UCC search reports, issued by the Secretary of State of the state of incorporation
of the Company and each Subsidiary, dated such a date as is reasonably acceptable to Buyer, listing all effective financing statements
which name the Company or Subsidiary (as applicable), under its present name and any previous names, as debtor, together with copies
of such financing statements;

 

l. Certificate of
Good Standing. Delivery by the Company to the Buyer of a copy of a certificate of good standing with respect to the Company,
issued by the Secretary of State of the state of incorporation of the Company, dated such a date as is reasonably acceptable to
Buyer, evidencing the good standing thereof;

 

m. Laws and Regulations;
Consents and Approvals. There shall not be in effect any law, rule or regulation prohibiting or restricting the transactions
contemplated hereby, or requiring any consent or approval which shall not have been obtained; and

 

    	 	19	 

    

    

 

n.
Adverse Changes. From and after the date hereof to and including each Closing Date, (i) the trading of the Common Stock
shall not have been suspended by the SEC, FINRA, or any other governmental or self-regulatory organization, and trading in securities
generally on OTCM shall not have been suspended or limited, nor shall minimum prices been established for securities traded on
the OTCM; (ii) there shall not have occurred any outbreak or escalation of hostilities involving the United States or any material
adverse change in any financial market that in either case in the reasonable judgment of the Buyer makes it impracticable or inadvisable
to purchase the Debentures.

 

9. GOVERNING LAW; MISCELLANEOUS.

 

a. MANDATORY
FORUM SELECTION. ANY DISPUTE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH THE AGREEMENT OR RELATED TO ANY MATTER WHICH
IS THE SUBJECT OF OR INCIDENTAL TO THE AGREEMENT (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT OR TORT) SHALL BE
SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN MIAMI-DADE COUNTY, FLORIDA. THIS
PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENTLY WITH
NEVADA LAW.

 

b. Governing
Law. Except in the case of the Mandatory Forum Selection clause above, this Agreement shall be delivered and accepted in and
shall be deemed to be contracts made under and governed by the internal laws of the State of Nevada, and for all purposes shall
be construed in accordance with the laws of the State of Nevada, without giving effect to the choice of law provisions. To the
extent determined by the applicable court described above, the Company shall reimburse the Buyer for any reasonable legal fees
and disbursements incurred by the Buyer in enforcement of or protection of any of its rights under any of the Transaction Documents.

 

c. Waivers.
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

d. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties
hereto.

 

e. Construction.
All pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may
require.

 

f. Facsimiles;
E-mails. A facsimile or email transmission of this signed Agreement or a Notice of Conversion under the Debentures shall be
legal and binding on all parties hereto. Such electronic signatures shall be the equivalent of original signatures.

 

g. Counterparts.
This Agreement may be signed in one or more counterparts, each of which shall be deemed an original.

 

    	 	20	 

    

    

 

h. Headings. The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

i. Enforceability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

 

j. Amendment. This
Agreement may be amended only by the written consent of a majority in interest of the holders of the Debentures and an instrument
in writing signed by the Company.

 

k. Entire Agreement.
This Agreement, together with the other Transaction Documents, supersedes all prior agreements and understandings among the
parties hereto with respect to the subject matter hereof.

 

l. No Strict Construction.
This Agreement shall be construed as if both Parties had equal say in its drafting, and thus shall not be construed against
the drafter.

 

m. Further Assurances.
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

10. NOTICES.

 

Any notice required
or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the
earliest of:

 

a. the date delivered,
if delivered by personal delivery as against written receipt therefor or by confirmed facsimile or email transmission,

 

b. the third (3rd)
business day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or

 

c. the first (1st)
business day after deposit with a recognized courier service (e.g. FedEx, UPS, DHL, US Postal Service) for delivery by next-day
express courier, with delivery costs and fees prepaid,

 

in each case, addressed to each of the
other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties hereto):

 

		COMPANY:	Digerati Technologies, Inc.

1600 NE Loop 410, Suite 126

San Antonio, TX 78209

Attention: Arthur Smith, Chief Executive Officer

Email: antonio@digerati-inc.com

 

    	 	21	 

    

    

 

With copies to (which shall not constitute notice):

 

Brewer & Pritchard, P.C.

800 Bering Dr., Suite 201 Houston, TX 77057

Attention: Thomas C. Pritchard

Email: Pritchard@bplaw.com

 

		BUYER:	Peak One Opportunity Fund, L.P.

333 South Hibiscus Drive

Miami Beach, FL 33139

Attention: Jason Goldstein

Email: jgoldstein@peakoneinvestments.com

 

With copies to (which shall not constitute notice):

 

Legal & Compliance, LLC

330 Clematis Street, Suite 217

West Palm Beach, FL 33401

Attention: Chad Friend, Esq., LL.M.

Email: CFriend@LegalandCompliance.com

 

11. SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s representations and warranties herein shall survive for so long as any
Debentures are outstanding, and shall inure to the benefit of the Buyer, its successors and assigns.

 

12. FEES;
EXPENSES.

 

a. Commitment
Fee. The Company shall pay to Investments a non-accountable fee (the “Commitment Fee”) of (i) Three Thousand Five
Hundred and 00/100 Dollars ($3,500.00) on the Signing Closing Date (with respect to the Signing Debenture), Two Thousand Five Hundred
and 00/100 Dollars ($2,500.00) on the Second Closing Date (with respect to the Second Debenture), as well as Two Thousand Five
Hundred and 00/100 Dollars ($2,500.00) on the Third Closing Date (with respect to the Third Debenture), for Investments’
expenses and analysis performed in connection with the analysis of the Company and the propriety of the Buyer’s making the
contemplated investment. The Commitment Fee shall be paid on the respective closing dates if Buyer does not withhold such amounts
from the respective purchase price pursuant to Section 12(c).

 

b.
Legal Fees. The Company shall pay the legal fees of the Buyer’s counsel (the “Legal Fees”) in the amount
of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) on the Signing Closing Date (with respect to the Signing Debenture),
Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) on the Second Closing Date (with respect to the Second Debenture), as
well as Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) on the Third Closing Date (with respect to the Third Debenture).
The foregoing legal fees shall be paid on the respective closing dates if Buyer does not withhold such amounts from the respective
purchase price pursuant to Section 12(c).

 

c. Disbursements.
In furtherance of the foregoing, the Company hereby authorizes the Buyer to deduct the cash portion of the Commitment Fee and
the Legal Fees from the Signing Purchase Price and transmit same to the respective payee.

 

[Signature Page Follows]

 

    	 	22	 

    

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the Buyer and the Company as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	DIGERATI TECHNOLOGIES, INC.
	 	 	 	 
	 	By:	/s/ Arthur Smith
	 	Name:	Arthur Smith
	 	Title:	Chief Executive Officer
	 	 	 	 
	 	BUYER:
	 	 
	 	PEAK ONE OPPORTUNITY FUND, L.P.
	 	 	 	 
	 	By:	Peak One Investments, LLC, General Partner
	 	 	 	 
	 	 	By:	/s/ Jason Goldstein
	 	 	Name:	Jason Goldstein
	 	 	Title:	Managing Member

 

[Signature Page to Securities Purchase
Agreement]

 

     

    

    

 

SCHEDULE 3(b)

 

COMPANY ORGANIZATION CHART

 

	Subsidiary / Affiliate

Name and Relationship	 	Jurisdiction of Incorporation	 	Percentage of Ownership
	 	 	 	 	 
	Shift8 Technologies, Inc.	 	Nevada	 	100% owned by Digerati Technologies, Inc.
	Shift8 Networks, Inc.	 	Texas	 	100% owned by Shift8 Technologies, Inc.Exhibit 10.2 

 

SIGNING
DEBENTURE

 

NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES
ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION
REQUIREMENTS THEREOF OR EXEMPTION THEREFROM.

 

DIGERATI
TECHNOLOGIES, INC.

 

CONVERTIBLE
DEBENTURE DUE JANUARY 17, 2021

 

	Issuance
    Date: January 17, 2018	Principal
    Amount: $200,000.00

  

FOR
VALUE RECEIVED, DIGERATI TECHNOLOGIES, INC., a corporation organized and existing under the laws of the State of Nevada (the
“Company”), hereby promises to pay to PEAK ONE OPPORTUNITY FUND, L.P., having its address at 333 South Hibiscus
Drive, Miami Beach, FL 33139, or its assigns (the “Holder” and together with the other holders of Debentures issued
pursuant to the Securities Purchase Agreement (as defined below), the “Holders”), the initial principal sum of Two
Hundred Thousand and 00/100 Dollars ($200,000.00) (subject to adjustment as provided herein, the “Principal Amount”)
on January 17, 2021 (the “Maturity Date”). The Company has the option to redeem this Debenture prior to the Maturity
Date pursuant to Section 2(b). All unpaid principal due and payable on the Maturity Date shall be paid in the form of Common Stock
of the Company, par value $0.001 per share (“Common Stock”) pursuant to Section 3. The Holder has the option to cause
any outstanding principal and accrued interest, if any, on this Debenture to be converted into Common Stock at any time prior
to the Redemption Date (as defined below) or the Maturity Date pursuant to Section 2(a).

 

This
Debenture is one of the Debentures referred to in the Securities Purchase Agreement (the “Securities Purchase Agreement”)
dated as of January 12, 2018, between the Company and the Holder. Capitalized terms used but not defined herein shall have the
meanings set forth in the Securities Purchase Agreement. This Debenture is subject to the provisions of the Securities Purchase
Agreement and further is subject to the following additional provisions:

 

1.
This Debenture has been issued subject to investment representations of the original purchaser hereof and may be transferred
or exchanged only in compliance with the Securities Act and other applicable state and foreign securities laws. The Holder
may transfer or assign this Debenture (or any part thereof) without the prior consent of the Company, and the Company shall
cooperate with any such transfer. In the event of any proposed transfer of this Debenture, the Company may require, prior to
issuance of a new Debenture in the name of such other Person, that it receive reasonable transfer documentation including
legal opinions that the issuance of the Debenture in such other name does not and will not cause a violation of the
Securities Act or any applicable state or foreign securities laws or is exempt from the registration requirements of the
Securities Act. Prior to due presentment for transfer of this Debenture to which the Company has consented, the Company and
any agent of the Company may treat the Person in whose name this Debenture is duly registered on the Company's books and
records of outstanding debt securities and
obligations (“Debenture Register”) as the owner hereof for the purpose of receiving payment as herein provided and
for all other purposes, whether or not this Debenture be overdue, and neither the Company nor any such agent shall be affected
by notice to the contrary.

 

     

     

    

 

2.
Conversion at Holder’s Option; Redemption at Company’s Option.

 

a.
The Holder is entitled to, at any time or from time to time, convert the Conversion Amount (as defined below) into Conversion
Shares, at a conversion price for each share of Common Stock (the “Conversion Price”) equal to either: (i) if the
date of conversion is prior to the date that is one hundred eighty (180) days after the Issuance Date, $0.50, or (ii) if the date
of conversion is on or after the date that is one hundred eighty (180) days after the Issuance Date, the lesser of (a) $0.50 or
(b) seventy percent (70%) of the lowest closing bid price (as reported by Bloomberg LP) of the Common Stock for the twenty (20)
Trading Days immediately preceding the date of the date of conversion of the Debentures (provided, further, that if either the
Company is not DWAC Operational at the time of conversion or the Common Stock is traded on the OTC Pink (“OTCP”) at
the time of conversion, then seventy percent (70%) shall automatically adjust to sixty-five percent (65%) of the lowest closing
bid price (as reported by Bloomberg LP) of the Common Stock for the twenty (20) Trading Days immediately preceding the date of
conversion of the Debentures), subject in each case to equitable adjustments resulting from any stock splits, stock dividends,
recapitalizations or similar events. The Company shall issue irrevocable instructions to its Transfer Agent regarding conversions
such that the transfer agent shall be authorized and instructed to issue Conversion Shares upon its receipt of a Notice of Conversion
without further approval or authorization from the Company. For purposes of this Debenture, the “Conversion Amount”
shall mean the sum of (A) all or any portion of the outstanding Principal Amount of this Debenture, as designated by the Holder
upon exercise of its right of conversion plus (B) any interest, pursuant to Section 10 or otherwise, that has accrued on the portion
of the Principal Amount that has been designated for payment pursuant to (A).

 

Conversion
shall be effectuated by delivering by facsimile, email or other delivery method to the Transfer Agent of the completed form of
conversion notice attached hereto as Annex A (the “Notice of Conversion”), executed by the Holder of the Debenture
evidencing such Holder's intention to convert this Debenture or a specified portion hereof. No fractional shares of Common Stock
or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to
the nearest whole share. The Holder may, at its election, deliver a Notice of Conversion to either the Company or the Transfer
Agent. The date on which notice of conversion is given (the “Conversion Date”) shall be deemed to be the date on which
the Company or the Transfer Agent, as the case may be, receives by fax, email or other means of delivery used by the Holder the
Notice of Conversion (such receipt being evidenced by electronic confirmation of delivery by facsimile or email or confirmation
of delivery by such other delivery method used by the Holder). Delivery of a Notice of Conversion to the Transfer Agent may be
given by the Holder by facsimile, or by delivery to the Transfer Agent at the address set forth in the Transfer Agent Instruction
Letter (or such other contact facsimile number, email or street address as may be designated by the Transfer Agent to the Holder).
Delivery of a Notice of Conversion to the Company shall be given by the Holder pursuant to the notice provisions set forth in
Section 10 of the Agreement. The Conversion Shares must be delivered to the Holder within three (3) business days from the date
of delivery of the Notice of Conversion to the Transfer Agent or Company, as the case may be. Conversion shares shall be delivered
by DWAC so long as the Company is then DWAC Operational, unless the Holder expressly requests delivery in certificated form or
the Conversion Shares are in the form of Restricted Stock and are required to bear a restrictive legend. Conversion Shares
shall be deemed delivered (i) if delivered by DWAC, upon deposit into the Holder’s brokerage account, or (ii) if delivered
in certificated form, upon the Holder’s actual receipt of the Conversion Shares in certificated form at the address specified
by the Holder in the Notice of Conversion, as confirmed by written receipt.

 

     2

     

    

 

If
at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock,
then at the sole discretion of the Holder, the Conversion Price hereunder may equal such par value for such conversion and the
Conversion Amount for such conversion may be increased to include Additional Principal, where “Additional Principal”
means such additional amount to be added to the Conversion Amount to the extent necessary to cause the number of conversion shares
issuable upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price
not been adjusted by the Holder to the par value price.

 

Notwithstanding
the foregoing, unless the Holder delivers to the Company written notice at least sixty-one (61) days prior to the effective date
of such notice that the provisions of this paragraph (the “Limitation on Ownership”) shall not apply to such Holder,
in no event shall a holder of Debentures have the right to convert Debentures into, nor shall the Company issue to such Holder,
shares of Common Stock to the extent that such conversion would result in the Holder and its affiliates together beneficially
owning more than 4.99% of the then issued and outstanding shares of Common Stock. For purposes hereof, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and Regulation 13D-G under the Exchange Act.

 

b.
The Company may at its option call for redemption all or part of the Debentures, with the exception of any portion thereof which
is the subject of a previously-delivered Notice of Conversion, prior to the Maturity Date, as follows:

 

(i)
The Debentures called for redemption shall be redeemable by the Company, upon not more than two (2) days written notice, for an
amount (the “Redemption Price”) equal to: (i) if the Redemption Date (as defined below) is ninety (90) days or less
from the date of issuance of this Debenture, One Hundred Ten percent (110%) of the sum of the Principal Amount so redeemed plus
accrued interest, if any; (ii) if the Redemption Date is greater than or equal to one ninety-one (91) days from the date of issuance
of this Debenture and less than or equal to one hundred twenty (120) days from the date of issuance of this Debenture, One Hundred
Fifteen percent (115%) of the sum of the Principal Amount so redeemed plus accrued interest, if any; (iii) if the Redemption Date
is greater than or equal to one hundred twenty one (121) days from the date of issuance of this Debenture and less than or equal
to one hundred fifty (150) days from the date of issuance of this Debenture, One Hundred Twenty percent (120%) of the sum of the
Principal Amount so redeemed plus accrued interest, if any; (iv) if the Redemption Date is greater than or equal to one hundred
fifty one (151) days from the date of issuance of this Debenture and less than or equal to one hundred eighty (180) days from
the date of issuance of this Debenture, One Hundred Thirty percent (130%) of the sum of the Principal Amount so redeemed plus
accrued interest, if any; and (v) if the Redemption Date is greater than or equal to one hundred eighty one (181) days from the
date of issuance of this Debenture, One Hundred Forty percent (140%) of the sum of the Principal Amount so redeemed plus accrued
interest, if any. The date upon which the Debentures are redeemed and paid shall be referred to as the “Redemption Date”
(and, in the case of multiple redemptions of less than the entire outstanding Principal Amount, each such date shall be a Redemption
Date with respect to the corresponding redemption).

 

     3

     

    

 

(ii)
If fewer than all outstanding Debentures are to be redeemed and are held by different investors, then all Debentures shall be
partially redeemed on a pro rata basis.

 

(iii)
[Reserved]

 

(iv)
On the Redemption Date, the Company shall cause the Holders whose Debentures have been presented for redemption to be issued payment
of the Redemption Price. In the case of a partial redemption, the Company shall also issue new Debentures to the Holders for the
Principal Amount remaining outstanding after the Redemption Date promptly after the Holders’ presentation of the Debentures
called for redemption.

 

(v)
To effect a redemption the Company shall provide a written notice to the Holder(s) not more than two (2) days prior to the Redemption
Date (the “Redemption Notice”), setting forth the following:

 

	 	1.	the
    Redemption Date;

 

	 	2.	the
    Redemption Price;

 

	 	3.	the
    aggregate Principal Amount of the Debentures being called for redemption;

 

	 	4.	a
    statement instructing the Holders to surrender their Debentures for redemption and payment of the Redemption Price, including
    the name and address of the Company or, if applicable, the paying agent of the Company, where Debentures are to be surrendered
    for redemption;

 

	 	5.	a
    statement advising the Holders that the Debentures (or, in the case of a partial redemption, that portion of the Principal
    Amount being called for redemption) as of the Redemption Date will cease to be convertible into Common Stock as of the Redemption
    Date; and

 

	 	6.	in
    the case of a partial redemption, a statement advising the Holders that after the Redemption Date a substitute Debenture will
    be issued by the Company after deduction the portion thereof called for redemption, at no cost to the Holder, if the Holder
    so requests.

 

Notwithstanding
the foregoing, in the event the Company issues a Redemption Notice but fails to fund the redemption on the Redemption Date, then
such Redemption Notice shall be null and void, and (i) the Holder(s) shall be entitled to convert the Debentures previously the
subject of the Redemption Notice, and (ii) the Company may not redeem such Debentures for at least thirty (30) days following
the intended Redemption Date that was voided, and the Company shall be required to pay to the Holder(s) the Redemption Price simultaneously
with the issuance of a Redemption Notice in connection with any subsequent redemption pursued by the Company.

 

     4

     

    

 

3.
Unless demand has otherwise been made by the Holder
in writing for payment in cash as provided hereunder, and so long as no Event of Default shall exist (whether or not notice thereof has been delivered by
the Holder to the Company), any Debentures not previously tendered to the Company for conversion as of the Maturity Date shall
be deemed to have been surrendered for conversion, without further action of any kind by the Company or any of its agents, employees
or representatives, as of the Maturity Date at the Conversion Price applicable on the Maturity Date (“Mandatory Conversion”).

 

4.
No provision of this Debenture shall alter or impair the obligation of the Company, which is absolute and unconditional to convert this Debenture into Common Stock, at the time, place, and rate herein prescribed.
This Debenture is a direct obligation of the Company.

 

5.
If the Company (a) merges or consolidates with another corporation or business entity and the Company is not the surviving entity or (b) sells or transfers all or substantially all of its assets to another
Person and the holders of the Common Stock are entitled to receive stock, securities or property in respect of or in exchange
for Common Stock, then as a condition of such merger, consolidation, sale or transfer, the Company and any such successor, purchaser
or transferee will agree that this Debenture may thereafter be converted on the terms and subject to the conditions set forth
above into the kind and amount of stock, securities or property receivable upon such merger, consolidation, sale or transfer by
a holder of the number of shares of Common Stock into which this Debenture might have been converted immediately before such merger,
consolidation, sale or transfer, subject to adjustments which shall be as nearly equivalent as may be practicable. In the event
of any (i) proposed merger or consolidation where the Company is not the surviving entity or (ii) sale or transfer of all or substantially
all of the assets of the Company (in either such case, a “Sale”), the Holder shall have the right to convert by delivering
a Notice of Conversion to the Company within fifteen (15) days of receipt of notice of such Sale from the Company.

 

6.
If, at any time while any portion of this Debenture remains outstanding, the Company effectuates a stock split or reverse stock split of its Common Stock or issues a dividend on its Common Stock consisting
of shares of Common Stock or otherwise recapitalizes its Common Stock, the Conversion Price shall be equitably adjusted to reflect
such action. By way of illustration, and not in limitation, of the foregoing (i) if the Company effectuates a 2:1 split of its
Common Stock, thereafter, with respect to any conversion for which the Company issues the shares after the record date of such
split, the Conversion Price shall be deemed to be one-half of what it had been calculated to be immediately prior to such split;
(ii) if the Company effectuates a 1:10 reverse split of its Common Stock, thereafter, with respect to any conversion for which
the Company issues the shares after the record date of such reverse split, the Conversion Price shall be deemed to be the amount
of such Conversion Price calculated immediately prior to the record date multiplied by 10; and (iii) if the Company declares a
stock dividend of one share of Common Stock for every 10 shares outstanding, thereafter, with respect to any conversion for which
the Company issues the shares after the record date of such dividend, the Conversion Price shall be deemed to be the amount of
such Conversion Price calculated immediately prior to such record date multiplied by a fraction, of which the numerator is the
number of shares for which a dividend share will be issued and the denominator is such number of shares plus the dividend share(s)
issuable or issued thereon.

 

     5

     

    

 

7.
All payments contemplated hereby to be made “in
cash” shall be made by wire transfer of immediately available funds in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. All payments of cash and each delivery of shares
of Common Stock issuable to the Holder as contemplated hereby shall be made to the Holder to an account designated by the Holder
to the Company and if the Holder has not designated any such accounts at the address last appearing on the Debenture Register
of the Company as designated in writing by the Holder from time to time; except that the Holder may designate, by notice to the
Company, a different delivery address for any one or more specific payments or deliveries.

 

8.
The Holder of the Debenture, by acceptance hereof, agrees that this Debenture is being acquired for investment and that such Holder
will not offer, sell or otherwise dispose of this Debenture or the Shares of Common Stock issuable upon conversion thereof except
in compliance with the terms of the Securities Purchase Agreement and under circumstances which will not result in a violation
of the Securities Act or any applicable state Blue Sky or foreign laws or similar laws relating to the sale of securities.

 

9.
This Debenture shall be governed by and construed in accordance with the laws of the State of Nevada. Each of the parties consents
to the exclusive jurisdiction and venue of the state and/or federal courts located in Miami-Dade
County, Florida in connection with any dispute arising under this Agreement, and each waives any objection based on forum non
conveniens. This provision is intended to be a “mandatory” forum selection clause and governed by and interpreted
consistent with Florida law (Nevada law governing all other, substantive matters). Each of the parties
hereby consents to the exclusive jurisdiction and venue of any state or federal court having its situs in Miami-Dade County, Florida,
and each waives any objection based on forum non conveniens. To the extent determined by such court, the Company shall
reimburse the Holder for any reasonable legal fees and disbursements incurred by the Holder in enforcement of or protection of
any of its rights under this Debenture or the Securities Purchase Agreement.

 

10.
The following shall constitute an “Event of Default”:

 

a.
The Company fails in the payment of principal or interest (to the extent that interest is imposed under this Section 10) on this Debenture as required to be paid in cash hereunder, and payment shall not have
been made for a period of five (5) business days following the payment due date (as to which no further cure period shall apply);
or

 

b.
Any of the representations or warranties made by the Company herein, in the Securities Purchase Agreement or in any certificate or financial or other written statements heretofore or hereafter furnished
by the Company to the Holder in connection with the issuance of this Debenture, shall be false or misleading (including without
limitation by way of the misstatement of a material fact or the omission of a material fact) in any material respect at the time
made (as to which no cure period shall apply); or

 

c.
The Company fails to remain listed on OTCP, OTCQB, or OTCQX, or a more senior stock exchange any time from the date hereof to the Maturity Date for a period in excess of five (5) Trading Days
(as to which no further cure period shall apply); or

 

     6

     

    

 

d.
The Company (i) fails to timely file required SEC
reports when due (including extensions), becomes, is deemed to or asserts that it is a “shell company” at any time for purposes of
the 1933 Act, and Rule 144 promulgated thereunder or otherwise takes any action, or refrains from taking any action, the result
of which makes Rule 144 under the 1933 unavailable to the Holder for the sale of their Securities, (ii) fails to issue shares
of Common Stock to the Holder or to cause its Transfer Agent to issue shares of Common Stock upon exercise by the Holder of the
conversion rights of the Holder in accordance with the terms of this Debenture or Transaction Documents, (iii) fails to transfer
or to cause its Transfer Agent to transfer any certificate for shares of Common Stock issued to the Holder upon conversion of
this Debenture as and when required by this Debenture and such transfer is otherwise lawful, (iv) fails to remove any restrictive
legend or to cause its Transfer Agent to transfer any certificate or any shares of Common Stock issued to the Holder upon conversion
of this Debenture as and when required by the relevant Transaction Document(s) and such legend removal is otherwise lawful, or
(v) the Company fails to perform or observe any of its obligations under the Section 5 of the Agreement or under the Transfer
Agent Instruction Letter (no cure period shall apply in the case of clauses (i) through (v) above, inclusive); or

 

e.
The Company fails to perform or observe, in any material respect any other covenant, term, provision, condition, agreement or obligation set forth in the Debenture, (subject to a cure period of three (3)
days other than in the case of a failure under Section 5 hereof, as to which no cure period shall apply), or (ii) any other covenant,
term, provision, condition, agreement or obligation of the Company set forth in the Securities Purchase Agreement and such failure
shall continue uncured for a period of either (1) three (3) days after the occurrence of the Company’s failure under Section
4(d), (e) (except as described in Section 10(c) hereof, as to which Section 10(c) hereof shall control), (f), (g) or (h) of the
Securities Purchase Agreement, or (2) ten (10) days after the occurrence of the Company’s failure under any other provision
of the Securities Purchase Agreement not otherwise specifically addressed in the Events of Default set forth in this Section 10;
or

 

f.
The Company shall (1) admit in writing its inability to pay its debts generally as they mature; (2) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or
(3) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property
or business (as to which no cure period shall apply); or

 

g.
A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such
appointment (as to which no cure period shall apply); or

 

h.
Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties
or assets of the Company and shall not be dismissed within sixty (60) days thereafter (as to which no cure period shall apply);
or

 

i.
Any money judgment, writ or warrant of attachment, or similar process (including an arbitral determination), in excess of One Hundred Fifty Thousand Dollars ($150,000) in the aggregate shall be entered
or filed against the Company or any of its properties or other assets (as to which no cure period shall apply); or

 

     7

     

    

 

j.
The occurrence of a breach or an event of default
under the terms of any indebtedness or financial instrument of the Company or any subsidiary (including but not limited to any
Subsidiary) of the Company in an aggregate amount in excess of Two Hundred Thousand Dollars ($200,000) or more which is not waived
by the creditors under such indebtedness (as to which no cure period shall apply); or

 

k.
Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or
any law for the relief of debtors shall be instituted by or against the Company and, if instituted against the Company, shall
not be dismissed within sixty (60) days after such institution or the Company shall by any action or answer approve of, consent
to, or acquiesce in any such proceedings or admit the material allegations of, or default in answering a petition filed in any
such proceeding (as to which no further cure period shall apply); or

 

l.
The issuance of an order, ruling, finding or similar adverse determination the SEC, the Secretary of State of the State of Nevada
or other applicable state of incorporation of the Company, the National Association of Securities Dealers, Inc. or any other securities
regulatory body (whether in the United States, Canada or elsewhere) having proper jurisdiction that the Company and/or any of
its past or present directors or officers have committed a material violation of applicable securities laws or regulations (as
to which no cure period shall apply); or

 

m.
The Company shall have its Common Stock suspended or delisted from a national securities exchange or an electronic quotation service
such as the OTCP, OTCQB, or OTCQX for a period in excess of five (5) Trading Days (as to which no further cure period shall apply);
or

 

n.
Any of the following shall occur and be continuing: a breach or default by any party under (a) any agreement identified by the
Company in its SEC filings as a material agreement or (b) any note or other form of indebtedness in favor of the Company representing
indebtedness of at least Two Hundred Thousand Dollars ($200,000.00), irrespective of whether such breach or default was waived
(as to which no cure period shall apply); or

 

o.
Notice of a Material Adverse Effect is provided by the Company or the determination in good faith by the Holder that a Material
Adverse Effect has occurred (as to which no cure period shall apply); or

 

p.
Reserved.

 

q.
Reserved.

 

r.
The Company attempts to modify, amend, withdraw, rescind, disavow or repudiate any part of the Irrevocable Instructions (as to
which no cure period shall apply).

 

s.
Any attempt by the Company or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual
transmittal, conveyance, or disclosure by the Company or its officers, directors, and/or affiliates of, material non-public
information concerning the Company, to the Holder or its successors and assigns, which after being so notified by the Holder
 is not immediately cured by Company’s filing of a Form 8-K pursuant to Regulation FD within four (4) business
days of such event.

 

     8

     

    

 

t.
At any time while this Debenture is outstanding, the lowest traded price on the OTCP, OTCQB, or OTCQX, or other applicable principal
trading market for the Common Stock, is equal to or less than $0.0001.

 

Then,
or at any time thereafter, the Company shall immediately give written notice of the occurrence of such Event of Default to
the Holders of all Debentures then outstanding, and in each and every such case, unless such Event of Default shall have been
waived in writing by a majority in interest of the Holders of the Debentures (which waiver shall not be deemed to be a waiver
of any subsequent default), then at the option of a majority in interest of the Holders and in the discretion of a majority
in interest of the Holders, take any or all of the following actions: (i) pursue remedies against the Company in accordance
with any of the Holder’s rights, (ii) increase the interest rate applicable to the Debentures to the lesser of eighteen
percent (18%) per annum and the maximum interest rate allowable under applicable law, (iii) in the case of an Event of
Default under Section 10(e)(ii)(1) based on the Company’s failure to be DWAC Operational, increase the Principal Amount
to an amount equal to one hundred ten percent (110%) of the then-outstanding Principal Amount, (iv) in the case of an Event
of Default under Section 10(d)(i), increase the Principal Amount to an amount equal to one hundred twenty percent (120%) of
the then-outstanding Principal Amount and an additional ten percent (10%) discount shall be factored into the Conversion
Price until this Debenture is no longer outstanding, (v) in the case of an Event of Default under Section 10(d)(i) through
(v), increase the Principal Amount of the relevant Holder’s Debenture by One Thousand Dollars and 00/100 ($500.00) for
each day the related failure continues, (vi) in the case of an Event of Default under Section 10(d)(ii) through (v) arising
from an untimely delivery to the Holder of Conversion Shares or shares of Common Stock in delegended form, if the closing bid
price of the Common Stock on the Trading Day immediately prior to the actual date of delivery of Conversion Shares or
de-legended shares, as the case may be, is less than the closing bid price on the Trading Day immediately prior to the date
when Conversion Shares or de-legended shares were required to be delivered, increase the Principal Amount of the relevant
Holder’s Debenture by an amount per share equal to such difference, and (vii) following the expiration of
the applicable grace period (if any), at the option and discretion of the Holder, accelerate the full indebtedness under this
Debenture, in an amount equal to one hundred forty percent (140%) of the outstanding Principal Amount and accrued and unpaid
interest (the “Acceleration Amount”), whereupon the Acceleration Amount shall be immediately due and payable,
without presentment, demand, protest or notice of any kinds, all of which are hereby expressly waived, anything contained
herein, in the Securities Purchase Agreement or in any other note or instruments to the contrary notwithstanding. In the case
of an Event of Default under Section 10(d)(ii), the Holder may either (i) declare the Acceleration Amount to exclude the
Conversion Amount that is the subject of the Event of Default, in which case the Acceleration Amount shall be based on the
remaining Principal Amount and accrued interest (if any), in which case the Company shall continue to be obligated to issue
the Conversion Shares, or (ii) declare the Acceleration Amount to include the Conversion Amount that is the subject of the
Event of Default, in which case the Acceleration Amount shall be based on the full Principal Amount, including the Conversion
Amount, and accrued interest (if any), whereupon the Notice of Conversion shall be deemed withdrawn. At its option, the
Holder may elect to convert the Debenture pursuant to Section 2 notwithstanding the prior declaration of a default and
acceleration, in the sole discretion of such Holder. A majority in interest of the Holders may immediately enforce any and
all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by applicable law.
Notwithstanding the foregoing, in the case of a default under Section 10(d)(ii) through (iv), the Holder of the Debenture
sought to be converted, transferred or de-legended, as the case may be, acting singly, shall have the sole and absolute
discretion to increase the applicable interest rate on the Debentures held by such Holder and/or to accelerate the
Debenture(s) held by such Holder. The Company expressly acknowledges and agrees that the Holder’s exercise of any
or all of the remedies provided herein or under applicable law, including without limitation the increase(s) in the Principal
Amount and the Acceleration Amount as may be declared in the case of a default, is reasonable and appropriate due to the
inability to define the financial hardship that the Company’s default would impose on the Holders. To the extent that
the Holder’s exercise of any of its remedies in the case of an Event of Default shall be construed to exceed the
maximum interest rate allowable under applicable law, then such remedies shall be reduced to equal the maximum interest rate
allowable under applicable law.

 

     9

     

    

 

11.
Nothing contained in this Debenture shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent or receive notice as a shareholder in respect of any meeting of
shareholders or any rights whatsoever as a shareholder of the Company, unless and to the extent converted in accordance with the
terms hereof.

 

12.
So long as this Debenture is outstanding, upon any issuance by the Company or any of its subsidiaries of any security with any term more favorable to the holder of such security or with a term in favor of the
holder of such security that was not similarly provided to the Holder in this Debenture, then the Company shall notify the Holder
of such additional or more favorable term and such term, at Holder’s option, shall become a part of the transaction documents
with the Holder. The types of terms contained in another security that may be more favorable to the holder of such security include,
but are not limited to, terms addressing conversion discounts, conversion lookback periods, stock sale price, private placement
price per share, and warrant coverage (except with respect to the private placement being consummated by the Company on or around
the Issuance Date at a price per share of $0.50).

 

13.
This Debenture may be amended only by the written consent of the parties hereto. Notwithstanding the foregoing, the Principal Amount of this Debenture shall automatically be reduced by any and all Conversion
Amounts (to the extent that the same relate to principal hereof). In the absence of manifest error, the outstanding Principal
Amount of the Debenture on the Holder’s book and records shall be the correct amount.

 

14.
In the event of any inconsistency between the provisions of this Debenture and the provisions of any other Transaction Document, the provisions of this Debenture shall prevail. Without limiting the generality
of the foregoing, in the event the Transfer Agent is not required to transfer any Common Stock, issue Conversion Shares or de-legended
shares of Restricted Stock pursuant to the Transfer Agent Instruction Letter, this shall not operate as an excuse, extension or
waiver of the Company’s obligation to issue and deliver Conversion Shares or de-legended Restricted Stock.

 

15.
The Company specifically acknowledges and agrees that in the event of a breach or threatened breach by the Company of any
provision hereof or of any other Transaction Document, the Holder will be irreparably damaged, and that damages at law would
be an inadequate remedy if this Debenture or such other Transaction Document were not specifically enforced.
Therefore, in the event of a breach or threatened breach by the Company, the Holder shall be entitled, in addition to all
other rights and remedies, to an injunction restraining such breach, without being required to show any actual damage or to
post any bond or other security, and/or to a decree for a specific performance of the provisions of this Debenture and the
other Transaction Documents.

 

     10

     

    

 

16.
No waivers or consents in regard to any provision of this Debenture may be given other than by an instrument in writing signed by the Holder.

 

17.
Each time, while this Debenture is outstanding, the Company enters into any transaction or arrangement structured in accordance
with, based upon, or related or pursuant to, in whole or in part, either Section 3(a)(9) of the Securities Act (a “3(a)(9)
Transaction”) (including but not limited to the issuance of new promissory notes or debentures, or of a replacement promissory
note or debenture), or Section 3(a)(10) of the Securities Act (a “3(a)(10) Transaction”), in which any 3rd party has
the right to convert monies owed to that 3rd party (or receive shares pursuant to a settlement or otherwise) at a discount to
market greater than the Conversion Price in effect at that time (prior to all other applicable adjustments in this Debenture),
then the Conversion Price shall be automatically adjusted to such greater discount percentage (prior to all applicable adjustments
in this Debenture) until this Debenture is no longer outstanding. Each time, while this Debenture is outstanding, the Company
enters into a Section 3(a)(9) Transaction (including but not limited to the issuance of new promissory notes or debentures, or
of a replacement promissory note or debenture), or Section 3(a)(10) Transaction, in which any 3rd party has a look back period
greater than the look back period in effect under this Debenture at that time, then the Holder’s look back period shall
automatically be adjusted to such greater number of days until this Debenture is no longer outstanding. The Company shall give
written notice to the Holder, with the adjusted Conversion Price and/or adjusted look back period (each adjustment that is applicable
due to the triggering event), within one (1) business day of an event that requires any adjustment described in this section.
So long as this Note is outstanding, the Company shall not enter into any 3(a)(9) Transaction or Section 3(a)(l0) Transaction.
In the event that the Company does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0)
Transaction while this note is outstanding, a liquidated damages charge of 20% of the outstanding principal balance of this Note,
but not less than Fifteen Thousand Dollars $15,000, will be assessed and will become immediately due and payable to the Holder
at its election in the form of cash payment or addition to the balance of this Note.

 

[Signature
Page Follows]

 

     11

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by an officer thereunto duly authorized as of
the date of issuance set forth above.

 

	 	DIGERATI TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/ Arthur Smith
	 	Name:	Arthur Smith
	 	Title: 	Chief Executive Officer

 

[Signature
Page to Convertible Debenture]

 

     12

     

    

 

ANNEX
A 

 

DIGERATI TECHNOLOGIES, INC.

 

NOTICE OF CONVERSION 

 

 

(To Be Executed by the Registered Holder in Order to
Convert the Debenture)

 

The
undersigned hereby irrevocably elects to convert $ __________________________________ of the Principal Amount of the above Debenture
into Shares of Common Stock of Digerati Technologies, Inc., a Nevada corporation (the “Company”), according to the
conditions hereof, as of the date written below. After giving effect to the conversion requested hereby, the outstanding Principal
Amount of such debenture is $_________________________, absent manifest error.

 

Pursuant
to the Debenture, certificates representing Common Stock upon conversion must be delivered (including delivery by DWAC or DRS)
to the undersigned within three (3) business days from the date of delivery of the Notice of Conversion to the Transfer Agent.

 

Conversion
Date

 

 

Applicable
Conversion Price

 

 

Signature

 

 

Print Name

 

 

Address 

 

 

 

 

 

 

 

 

13

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