Document:

Exhibit
10.2

 

NEGOTIABLE
PROMISSORY NOTE

 

	$275,000.00		April
    30, 2018

 

FOR
VALUE RECEIVED, Shift8 Technologies, Inc. (the “Maker),” hereby promises to pay to the order of Conexus Solutions,
LLC (collectively, the “Holder),” at such place as Holder shall designate in writing to Maker, the principal
amount of TWO HUNDRED SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($275,000.00) (the “Principal Amount”). This
Promissory Note shall not bear any interest.

 

Principal
shall be due and payable monthly in an amount equal to the greater of (i) $6,000.00 per month, or (ii) fifteen percent (15%) of
an amount equal to (A) the net income of T3 Communications, Inc., a Florida corporation (“T3”) less (B) any
payments or accruals by T3 for income taxes (or other equivalents) payable (or paid) to the IRS or any state governmental authority
(for any state in which T3 conducts business). Such payments shall begin on May 1, 2018 and shall be paid in advance. For all
purposes hereunder, such payments shall be adjusted pursuant to the above calculations quarterly based on the financial results
of T3 (such adjustments shall occur on the 15th day of July, October, January and April). Thus, the first quarterly
adjustment shall occur on the 15th day of July (for the months of May and June); the second quarterly adjustment shall
occur on the 15th day of October (for the months of July, August and September) and continue quarterly to reflect the
greater of the numbers set forth in the 1st sentence of this paragraph until this Promissory Note is paid in full.
This Promissory Note shall continue in perpetuity unless and until the entire Principal Amount has been repaid in full by the
Maker or any guarantor hereunder.

 

Principal
and interest, or any part thereof, may be prepaid at any time without penalty. Principal shall be payable at the place designated
by the Holder or holders hereof in lawful money of the United States of America.

 

Upon
the occurrence of an Event of Default (as hereinafter defined), Holder may, without written notice to the Maker or the Guarantors,
declare the entire outstanding Principal Amount immediately due and payable without further presentment, demand, protest, notice
of protest, dishonor or other notice of default of any kind, all of which are expressly waived by both of the Maker and the Guarantors.
Notwithstanding the foregoing, upon an Event of Default, Holder may, one or more times, in its sole discretion, without affecting
any and all rights of Holder or any obligations of the Maker or the Guarantors hereof, (x) release, renew or extend the obligations
of the Maker, or (y) grant any postponements, indulgences, waivers, surrenders or discharges of the terms of its agreements with
the Maker hereunder.

 

Each
of the following shall be considered an “Event of Default” (i) a Change of Control of the Maker or any of the
Guarantors, whether directly or indirectly (ii) the filing of a petition by or against the Maker, or any of the Guarantors under
any provision of the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to time, or
under any similar law relating to bankruptcy, insolvency or other relief for debtors; or appointment of a receiver, trustee, custodian
or liquidator of or for all or any part of the assets or property of the Maker or any of the Guarantors, in each case that is
not dismissed within sixty (60) days, (iii) the dissolution or liquidation of the Maker, which dissolution or liquidation was
not approved in writing by the Holder, (iv) the sale, transfer, assignment or other conveyance, with or without consideration,
of all or substantially all of the assets of the Maker or any of the Guarantors, (v) the failure to make any payment under this
Promissory Note punctually in full, or (vi) the failure of the Maker or any of the Guarantors, or any affiliate of any of the
foregoing, to make any payment under any other agreement due and owing to the Holder or Thermo Communications Funding, LLC. For
purposes of this Promissory Note, “Change of Control” shall mean the occurrence of any event (whether in one
or more transactions) which results in the transfer of Control of a person to another person (whether or not affiliated with such
person) who was not a member of such person on the date hereof. Control means (A) the power, direct or indirect, to vote 50.01%
or more of the voting power of a person, or (B) 50.01% of the economic interests of such person.

 

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The
parties hereto agree and acknowledge that the duties and obligations of the Maker hereunder: (i) are guaranteed by each of the
Guarantors, identified below, in solido with each other and in solido with the Maker; (ii) and are secured by 15% of the stock
of T3 Communications, Inc. owned by Maker now or hereinafter acquired. It is the true, clear and express intention of Maker and
T3 that the continuing grant of this security interest remain as security for payment and performance of the obligations hereunder.
The notice of the continuing grant of this security interest, therefore, shall not be required to be stated on the face of any
document representing any of the obligations hereunder, nor otherwise identify it as being secured thereby. Neither Holder nor
T3 shall change is name without first providing to the Holder at least thirty (30) days’ prior written notice. Maker, T3
and Digerati Technologies, Inc. (“Digerati”) hereby authorize the Holder at any time and from time to time to file
a financing or continuation statement and/or amendments thereto, and Maker and T3 shall each execute and deliver such other instruments
and documents as may be requested by Holder to perfect, confirm and further evidence the security interest and assignments as
may be requested by the Holder for the collateral granted hereunder. Neither Maker nor T3 shall sell or attempt to sell any of
the collateral without paying the entire balance of the Principal Amount hereunder.

 

This
Promissory Note is negotiable.

 

Every
person at any time liable for the payment of the debt evidenced hereby waives presentment for payment, demand, protest and notice
of non-payment of this Promissory Note and any or all lack of diligence or delays in collection which may occur and consents that
the Holder or holders hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole
of the debt at any time at the request of any other person liable, and agrees in case suit be brought for collection hereof or
the same has to be collected upon demand of an attorney and to pay reasonable attorney's fees incurred in connection therewith.

 

This
Promissory Note shall be governed and construed in accordance with the internal laws of the State of Florida without regard to
any conflict of law principles.

 

THE
MAKER AND EACH OF THE GUARANTORS KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHTS THAT EACH MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BASED ON, ARISING OUT OF, OR IN ANY WAY RELATED
TO THIS PROMISSORY NOTE OR THE TRANSACTIONS DESCRIBED HEREIN.

 

Further,
at all times while any portion of the Principal Amount remains outstanding, T3 hereby grants to the Holder the ability to nominate
and appoint a member of the Board of Directors of T3.

 

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	 	MAKER:
	 	 	 
	 	SHIFT8 TECHNOLOGIES, INC.
	 	 
	 	/s/
    Arthur L. Smith
	 	Print Name:	Arthur
    L. Smith
	 	Its:	CEO

 

Guarantors:

 

Intervening
herein to guarantee, in solido with the Maker, the duties and obligations of the Maker hereunder, are each of the undersigned.

 

	T3 Communications, Inc.	 	Digerati
    Technologies, Inc.
	 	 	 	 	   
	/s/
    Arthur L. Smith      	 	/s/
    Arthur L. Smith      
	By:	Arthur L. Smith      	 	By:	Arthur L.
    Smith      
	Its:	CEO	 	Its:	CEO   

 

	Shift8 Networks, Inc.	 	T3
    Acquisition, Inc.
	 	 	 	 	   
	/s/
    Arthur L. Smith      	 	/s/
    Arthur L. Smith      
	By:	Arthur L. Smith      	 	By:	Arthur L.
    Smith      
	Its:	CEO	 	Its:	CEO   

 

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PLEDGE
AND ESCROW AGREEMENT

 

THIS
PLEDGE AND ESCROW AGREEMENT (“Agreement”) is made and entered into as of April 30, 2018 and made effective
as of April 30, 2018, by and between SHIFT8 TECHNOLOGIES, INC., a Nevada corporation (the “Pledgor),”
and Conexus Solutions, LLC (the “Secured Party),” with the joinder of Nowalsky & Gothard, APLLC
(“Escrow Agent”).

 

RECITALS

 

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

 

WHEREAS,
in order to secure the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of
all of the Pledgor’s Obligations to the Secured Party, or any successor to the Secured Party, under the Note, Pledgor
has agreed to irrevocably pledge to the Secured Party 15% of the issued and outstanding shares of the capital stock of its
Subsidiaries, including T3 COMMUNICATIONS, INC., a Florida corporation, and T3 ACQUISITION, INC., a Florida
corporation (each of the foregoing entities hereinafter referred to individually as a “Company” and
collectively as the “Companies”)(such shares of all such Companies hereinafter referred to as the “Pledged
Securities”);

 

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

 

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

 

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

 

(a)
the Pledged Securities owned by Pledgor;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)
The Pledged Securities constitute all of the securities owned, legally or beneficially, by the Pledgor, and such securities represent 15% of the issued and outstanding capital stock or other securities,
on a fully diluted basis, of each of the Companies. At all times while this Agreement remains in effect, the Pledged Securities
shall constitute and represent 15% of the issued and outstanding shares of the capital stock or other securities of each of the
Companies, on a fully-diluted basis.

 

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

 

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

 

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

 

(b)
Covenants and Agreements. The failure of Pledgor or the Companies to perform, observe or comply with any and all of the
covenants, promises and agreements of the Pledgor and the Companies in this Agreement, which such failure is not cured by the
Pledgor or the Companies within ninety (90) days after receipt of written notice thereof from Secured Party.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.
Concerning the Escrow Agent.

 

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

 

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

 

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

 

    7

     

    

 

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

 

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

 

    8

     

    

 

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

 

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

 

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

 

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

 

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

 

    9

     

    

 

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

 

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

 

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

 

    10

     

    

  

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

 

16.
Miscellaneous.

 

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

 

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

 

    11

     

    

 

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

 

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

 

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

 

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

 

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

 

    12

     

    

 

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

 

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

 

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

 

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

 

    13

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    14

     

    

 

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

 

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

 

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

 

[Signatures
on the following page]

 

    15

     

    

 

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

 

PLEDGOR:

 

SHIFT8 TECHNOLOGIES, INC., a Nevada corporation

 

	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	CEO	 

 

COMPANIES:

 

T3
COMMUNICATIONS, INC.,

a
Florida corporation  

 

	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	CEO	 

 

T3 ACQUISITION, INC.,

a
Florida corporation  

 

	By:	/s/ Arthur L. Smith	 
	Name:	Arthur L. Smith	 
	Title:	CEO	 

 

SECURED
PARTY: 

 

Conexus
Solutions, LLC

 

	By:		 
	Its:	Authorized Representative	 

 

    16Exhibit 10.3

 

PROMISSORY NOTE

 

	$650,000.00	April 30, 2018

 

FOR
VALUE RECEIVED, SHIFT8 NETWORKS, INC., d/b/a Synergy Telecom, a Texas corporation, SHIFT8 TECHNOLOGIES, INC.,
a Nevada Corporation, and T3 COMMUNICATIONS, INC., a Florida Corporation, T3 ACQUISITION, INC., a Florida Corporation,
and DIGERATI TECHNOLOGIES, INC., a Nevada Corporation, (may hereinafter be referred to individually as a “Borrower”
and all may hereinafter be referred to collectively as the “Borrowers”),
unconditionally promise to pay to the order of THERMO COMMUNICATIONS FUNDING, LLC, a Delaware limited liability company
(together with its successors and assigns, “Lender”), without setoff, at its offices at 639 Loyola Avenue,
Suite 2565, New Orleans, Louisiana (Orleans Parish) 70113, or at such other place as may be designated by Lender, the principal
amount of SIX HUNDRED FIFTY THOUSAND DOLLARS AND NO/100 DOLLARS ($650,000.00), or so much thereof as may be advanced from
time to time in immediately available funds, together with interest computed daily on the outstanding principal balance hereunder,
at an annual interest rate (the “Rate”), and in accordance with the payment schedule indicated below. This PROMISSORY
NOTE (this “Note”) is executed pursuant to and evidences a Loan funded and to be funded by Lender under
that certain TERM LOAN AND SECURITY AGREEMENT dated as of even date herewith (the “Effective Date”),
between Debtor and Lender (as amended, restated or otherwise modified from time to time, the “Loan Agreement”), to
which reference is made for a statement of the collateral, rights and obligations of Debtor and Lender in relation thereto, but
neither this reference to the Loan Agreement nor any provision thereof shall affect or impair the absolute and unconditional obligation
of Debtor to pay unpaid principal of and interest on this Note when due. Capitalized terms not otherwise defined herein shall
have the same meanings as in the Loan Agreement.

 

1. Rate.
Prior to the Maturity Date or an Event of Default, the Rate shall be ZERO PERCENT (0%) per annum; and (ii) from
and after the Maturity Date, the Rate shall be the Maturity Rate. Notwithstanding any provision of this Note or any other agreement
or commitment between Debtor and Lender, whether written or oral, express or implied, Lender shall never be entitled to charge,
receive or collect, nor shall amounts received hereunder be credited so that Lender shall be paid, as interest a sum greater than
interest at the Maximum Rate. It is the intention of the parties that this Note, and all instruments securing the payment of this
Note or executed or delivered in connection therewith, shall comply with applicable law. If Lender ever contracts for, charges,
receives or collects anything of value which is deemed to be interest under applicable law, and if the occurrence of any circumstance
or contingency, whether acceleration of maturity of this Note, prepayment of this Note, delay in advancing proceeds of this Note
or any other event, should cause such interest to exceed the Maximum Rate, any amount which exceeds interest at the Maximum Rate
shall be applied to the reduction of the unpaid principal balance of this Note or any other Indebtedness, and if this Note and
such other Indebtedness are paid in full, any remaining excess shall be paid to Debtor. In determining whether the interest exceeds
interest at the Maximum Rate, the total amount of interest shall, to the extent permitted by applicable law, be spread, prorated
and amortized throughout the entire term of this Note until its payment in full. The term “Maximum Rate” as
used in this Note means the maximum nonusurious rate of interest per annum permitted by whichever of applicable United States
federal law or Louisiana law permits the higher interest rate, including to the extent permitted by applicable law, any amendments
thereof hereafter or any new law hereafter coming into effect to the extent a higher Maximum Rate is permitted thereby. If at
any time the Rate shall exceed the Maximum Rate, the Rate shall be automatically limited to, and remain at, the Maximum Rate until
the total amount of interest accrued hereunder equals the amount of interest which would have accrued if there had been no limitation
to the Maximum Rate. The term “Prime” as used in this Note means the Prime Rate for the U.S. as published in the “Money
Rates” section of the Wall Street Journal. In the event the Prime Rate is published as a range of rates, the highest
rate in the quoted range shall be the “Prime.” The Prime is not necessarily the lowest rate charged by Lender for
any particular class of borrowers or credit extensions. If the Index becomes unavailable during the term of this Note, Lender
may designate a substitute index by notice to Debtor.

 

2. Accrual
Method. Interest on the Indebtedness evidenced by this Note shall be computed on the basis of a THREE HUNDRED SIXTY
(360) day year and shall accrue on the actual number of days elapsed for any whole or partial month in which interest is being
calculated. In computing the number of days during which interest accrues, the day on which funds are initially advanced shall
be included regardless of the time of day such advance is made, and the day on which funds are repaid
shall be included unless repayment is credited prior to the close of business on the Business Day received as provided herein.

  

PROMISSORY NOTE (REVOLVING
CREDIT FACILITY) – PAGE 1

THERMO COMMUNICATIONS
FUNDING LLC – Shift8/T3 (INITIAL)

 

     

     

    

   

3. Payment
Schedule. Except as expressly provided herein to the contrary, all payments on this Note shall be applied in the following
order of priority: (a) the payment or reimbursement of any expenses, costs or obligations (other than the outstanding principal
balance hereof and interest hereon) for which either Debtor shall be obligated to Lender or Lender shall be entitled pursuant
to the provisions of this Note or the other Loan Documents, (b) the payment of accrued but unpaid interest hereon, and (c) the
payment of all or any portion of the principal balance hereof then outstanding hereunder. If an Event of Default exists, then
Lender may, at the sole option of Lender, apply any such payments, at any time and from time to time, to any of the items specified
in clauses (a), (b) or (c) above without regard to the order of priority otherwise specified herein and any application to the
outstanding principal balance hereof may be made in either direct or inverse order of maturity. If any payment of principal or
interest on this Note shall become due on a day other than a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time shall be included in computing interest in connection with such payment. The outstanding principal
balance of this Note shall be due and payable on the EARLIEST of (i) the acceleration of the Indebtedness pursuant
to the terms of the Loan Documents; or (ii) MAY 14, 2018 (the EARLIEST of such date being, the “Maturity
Date”), provided, however, the Maturity Date will automatically be extended by one (1) additional period of thirty
(30) days, until June 14, 2018. Accrued and unpaid interest on the outstanding principal balance of this Note shall be due and
payable monthly commencing on May 14, 2018 and continuing on the SAME day of each calendar month thereafter (or
if no corresponding date shall exist in any calendar month, on the LAST day of such calendar month) and on the Maturity
Date. Debtor may borrow, repay and reborrow hereunder at any time, up to a maximum aggregate amount outstanding at any one time
equal to the principal amount of this Note, provided that Debtor is not in Default and that the borrowings hereunder do not exceed
the Borrowing Base1 or other limitation on borrowings by Debtor. Lender shall incur no liability for its refusal to
advance funds based upon its determination that any conditions of such further advances have not been met. Lender’s records
of the amounts borrowed from time to time shall be conclusive proof thereof absent manifest error. Lender and Debtor expressly
agree that Chapter 346 of the Act shall not apply to this Note or to any advances under this Note and that neither this Note nor
any such advances shall be governed by or subject to the provisions of such Chapter in any manner whatsoever.

 

4. Waivers,
Consents and Covenants. DEBTOR, ANY INDORSER OR GUARANTOR HEREOF, AND EACH OF THEM JOINTLY AND SEVERALLY: (A) WAIVES
PRESENTMENT, DEMAND, PROTEST, NOTICE OF DEMAND, NOTICE OF INTENT TO ACCELERATE, NOTICE OF ACCELERATION OF MATURITY, NOTICE OF
PROTEST, NOTICE OF NONPAYMENT, NOTICE OF DISHONOR, AND ANY OTHER NOTICE REQUIRED TO BE GIVEN UNDER THE LAW IN CONNECTION WITH
THE DELIVERY, ACCEPTANCE, PERFORMANCE, DEFAULT OR ENFORCEMENT OF THIS NOTE, ANY INDORSEMENT OR GUARANTY OF THIS NOTE, OR ANY OTHER
DOCUMENTS EXECUTED IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENTS NOW OR HEREAFTER EXECUTED IN CONNECTION WITH ANY OBLIGATION
OF DEBTOR TO LENDER; (B) CONSENTS TO ALL DELAYS, EXTENSIONS, RENEWALS OR OTHER MODIFICATIONS OF THIS NOTE OR THE LOAN DOCUMENTS
AS MAY BE AGREED IN WRITING BY DEBTOR AND LENDER, OR WAIVERS OF ANY TERM HEREOF OR OF THE LOAN DOCUMENTS, OR RELEASE OR DISCHARGE
BY LENDER OF ANY DEBTOR OR GUARANTOR, OR RELEASE, SUBSTITUTION OR EXCHANGE OF ANY SECURITY FOR THE PAYMENT HEREOF, OR THE FAILURE
TO ACT ON THE PART OF LENDER, OR ANY INDULGENCE SHOWN BY LENDER (WITHOUT NOTICE TO OR FURTHER ASSENT FROM DEBTOR OR GUARANTOR);
(C) AGREES THAT NO SUCH ACTION, FAILURE TO ACT OR FAILURE TO EXERCISE ANY RIGHT OR REMEDY BY LENDER SHALL IN ANY WAY AFFECT OR
IMPAIR THE OBLIGATIONS OF DEBTOR OR GUARANTOR OR BE CONSTRUED AS A WAIVER BY LENDER OF, OR OTHERWISE AFFECT, ANY OF LENDER’S
RIGHTS UNDER THIS NOTE, UNDER ANY INDORSEMENT OR GUARANTY OF THIS NOTE OR UNDER ANY OF THE LOAN DOCUMENTS; AND (D) AGREES TO PAY,
ON DEMAND, ALL COSTS AND EXPENSES OF COLLECTION OR DEFENSE OF THIS NOTE OR OF ANY INDORSEMENT OR GUARANTY HEREOF AND/OR THE ENFORCEMENT
OR DEFENSE OF LENDER’S RIGHTS WITH RESPECT TO, OR THE ADMINISTRATION, SUPERVISION, PRESERVATION, OR PROTECTION OF, OR REALIZATION
UPON, ANY PROPERTY SECURING PAYMENT HEREOF, INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEY’S FEES, INCLUDING FEES RELATED
TO ANY SUIT, MEDIATION OR ARBITRATION PROCEEDING, OUT OF COURT PAYMENT AGREEMENT, TRIAL, APPEAL, BANKRUPTCY PROCEEDINGS OR OTHER
PROCEEDING, IN SUCH AMOUNT AS MAY BE DETERMINED REASONABLE BY ANY ARBITRATOR OR COURT, WHICHEVER IS APPLICABLE.

  

 

1 Lower case the term Borrowing
Base is transaction does not use a borrowing base concept. 

 

PROMISSORY NOTE (REVOLVING CREDIT FACILITY)
– PAGE 2

THERMO COMMUNICATIONS FUNDING LLC –
Shift8/T3 (INITIAL)

 

     

     

    

 

5. Remedies
Upon Default. Whenever there is an Event of Default the entire balance outstanding hereunder and all other obligations
of any Debtor or Guarantor to Lender (however acquired or evidenced) shall, at the option of Lender, become immediately due and
payable and any obligation of Lender to permit further borrowing under this Note shall immediately cease and terminate. From and
after (a) an Event of Default, or (b) the Maturity Date (whether by acceleration or otherwise), the Rate on the unpaid principal
balance of this Note shall be increased at Lender’s discretion up to the MAXIMUM RATE (the “Maturity
Rate”). The provisions herein for a Maturity Rate (a) shall not be deemed to extend
the time for any payment hereunder or to constitute a “grace period” giving Debtor or Guarantor a right to cure any
default, and (b) shall be deemed the contract rate of interest applicable to the outstanding principal balance of the Note from
and after the occurrence of one of the events set forth in this Section. At Lender’s option, any accrued and unpaid interest,
fees or charges may, for purposes of computing and accruing interest on a daily basis after the due date of this Note or any installment
thereof, be deemed to be a part of the principal balance, and interest shall accrue on a daily compounded basis after such date
at the Maturity Rate provided in this Note until the entire outstanding balance of principal and interest is paid in full. Upon
an Event of Default, Lender is hereby authorized at any time, at its option and without notice or demand, to set off and charge
against any deposit accounts of any Debtor (as well as any money, instruments, securities, documents, chattel paper, credits,
claims, demands, income and any other property, rights and interests of Debtor), which at any time shall come into the possession
or custody or under the control of Lender or any of its agents, affiliates or correspondents, any and all obligations due hereunder.
Additionally, Lender shall have all rights and remedies available under each of the Loan Documents, as well as all rights and
remedies available at law or in equity.

 

6. Waiver.
The failure at any time of Lender to exercise any of its options or any other rights hereunder shall not constitute a waiver thereof,
nor shall it be a bar to the exercise of any of its options or rights at a later date. All rights and remedies of Lender shall
be cumulative and may be pursued singly, successively or together, at the option of Lender. The acceptance by Lender of any partial
payment shall not constitute a waiver of any default or of any of Lender’s rights under this Note. No waiver of any of its
rights hereunder, and no modification or amendment of this Note, shall be deemed to be made by Lender unless the same shall be
in writing, duly signed on behalf of Lender; each such waiver shall apply only with respect to the specific instance involved,
and shall in no way impair the rights of Lender or the obligations of Debtor or Guarantor to Lender in any other respect at any
other time.

  

7. Applicable
Law. Debtor agrees that this Note shall be deemed to have been made in the State of Louisiana at Lender’s address
indicated at the beginning of this Note and shall be governed by, and construed in accordance with, the laws of the State of Louisiana
and is performable in the City and Parish of Louisiana indicated at the beginning of this Note.

  

8. Partial
Invalidity. The unenforceability or invalidity of any provision of this Note shall not affect the enforceability or validity
of any other provision herein and the invalidity or unenforceability of any provision of this Note or of the Loan Documents to
any person or circumstance shall not affect the enforceability or validity of such provision as it may apply to other persons
or circumstances.

  

9. Binding
Effect. This Note shall be binding upon and inure to the benefit of Debtor and Lender and their respective successors,
assigns, heirs and personal representatives, provided, however, that no obligations of Debtor hereunder can be assigned without
prior written consent of Lender.

 

10. Controlling
Document. To the extent that this Note conflicts with or is in any way incompatible with any other document related specifically
to the loan evidenced by this Note, this Note shall control over any other such document, and if this Note does not address an
issue, then each other such document shall control to the extent that it deals most specifically with an issue.

  

PROMISSORY NOTE (REVOLVING CREDIT FACILITY) –
PAGE 3

THERMO COMMUNICATIONS FUNDING LLC – Shift8/T3
(INITIAL)

  

     

     

    

 

11. COMMERCIAL
PURPOSE. DEBTOR REPRESENTS TO LENDER THAT THE PROCEEDS OF THIS LOAN ARE TO BE USED FOR BUSINESS, COMMERCIAL OR AGRICULTURAL
PURPOSES. DEBTOR ACKNOWLEDGES HAVING READ AND UNDERSTOOD, AND AGREES TO BE BOUND BY, ALL TERMS AND CONDITIONS OF THIS NOTE.

 

12. Collection.
If this Note is placed in the hands of an attorney for collection, or if it is collected through any legal proceeding at law or
in equity or in bankruptcy, receivership or other court proceedings, Debtor agrees to pay all costs of collection, including,
but not limited to, court costs and reasonable attorneys’ fees.

 

13. Time
is of the Essence. Time is of the essence with respect to all provisions of this Note and the other Loan Documents.

 

14. Notice
of Balloon Payment. At maturity (whether by acceleration or otherwise), Debtor must repay the entire principal balance
of this Note and unpaid interest then due. Lender is under no obligation to refinance the outstanding principal balance of this
Note (if any) at that time. Debtor will, therefore, be required to make payment out of other assets Debtor may own; or Debtor
will have to find a lender willing to lend Debtor the money at prevailing market rates, which may be higher than the interest
rate on the outstanding principal balance of this Note. If any Guarantor has guaranteed payment of this Note, Guarantor may be
required to perform pursuant to the provisions of the Guaranty.

  

15. Statement
of Unpaid Balance. At any time and from time to time, Debtor will furnish promptly, upon the request of Lender, a written
statement or affidavit, in form satisfactory to Lender, stating the unpaid balance of the Loan evidenced by this Note and that
there are no offsets or defenses against full payment of the Loan evidenced by this Note and the terms hereof, or if there are
any such offsets or defenses, specifying them.

  

16. Waiver
Of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, DEBTOR AND LENDER HEREBY IRREVOCABLY AND EXPRESSLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE)
ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF LENDER IN THE
NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF. DEBTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT LENDER HAS BEEN INDUCED TO EXTEND THE LOAN AND EXECUTE THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS SECTION.

  

 

 

NOTICE
OF FINAL AGREEMENT

 

THIS NOTE AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

  

 

 

REMAINDER
OF PAGE LEFT INTENTIONALLY BLANK

 

PROMISSORY NOTE (REVOLVING CREDIT FACILITY) –
PAGE 4

THERMO COMMUNICATIONS FUNDING LLC – Shift8/T3 (INITIAL)

  

     

     

    

 

EXECUTED as
of the Effective Date, at New Orleans, Louisiana.

   

	DEBTOR:	 	ADDRESS:
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	SHIFT8 NETWORKS, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	T3 COMMUNICATIONS, INC.	 	2401 First Street, Suite 300
	 	 	Fort Myers, FL 33901
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name:	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	DIGERATI TECHNOLOGIES, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	T3 ACQUISITION, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	SHIFT8 TECHNOLOGIES, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name: 	Arthur L. Smith	 	 
	Title: 	President/CEO	 	 
	 	 	 
	GUARANTOR:	 	ADDRESS:
	 	 	 
	ARTHUR L. SMITH	 	1600 NE Loop 410
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur
    L. Smith 	 	 
	Name: 	Arthur L. Smith	 	 

 

PROMISSORY NOTE – PAGE 5 

THERMO COMMUNICATIONS FUNDING, LLC – Shift8/T3.

  

     

     

    

  

TERM LOAN AND
SECURITY AGREEMENT

 

THIS TERM LOAN
AND SECURITY AGREEMENT (including all schedules, exhibits and appendices attached or otherwise identified therewith, as amended,
modified or restated from time to time, this “Agreement”)
dated as of April 30, 2018 (the “Effective Date”),
is between and among THERMO COMMUNICATIONS FUNDING, LLC, a Delaware limited liability company (together with its
successors and assigns, “Lender”),
and SHIFT8 NETWORKS, INC., d/b/a Synergy Telecom, a Texas Corporation, SHIFT8 TECHNOLOGIES, INC. a Nevada Corporation,
and T3 COMMUNICATIONS, INC., a Florida Corporation, T3 ACQUISTION, INC., a Florida Corporation, and DIGERATI
TECHNOLOGIES, INC., a Nevada Corporation, (may hereinafter be referred to individually as a “Borrower”
and all may hereinafter be referred to collectively as the “Borrowers”)
and (c) each Person identified as a Guarantor on the signature page hereto.

 

RECITALS

 

WHEREAS, Borrowers
(a) have determined that Borrowers will benefit specifically and materially from the Loan contemplated by this Agreement, and
(b) have requested and bargained for the structure, terms and obligations set forth in the Loan Documents.

 

NOW THEREFORE, the parties
hereto, intending to be legally bound, agree as follows:

 

1. Definitions.
As used in this Agreement, all exhibits, appendices and schedules hereto, and in any other Loan Documents made or delivered pursuant
to this Agreement, the following terms will have the meanings given such terms in this Section 1 or in the provisions, sections
or recitals herein:

 

(a) “Account
Control Agreement” means this Term Loan and Security Agreement

 

(b) “Affiliate”
means, with respect to a specified Person, another Person that directly or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified.

 

(c) “Business
Day” means any day other than a Saturday, Sunday, or any other day on which any
branch of the Federal Reserve Bank of New Orleans, Louisiana, is closed.

 

(d) “Cash
Flow” means the sum of net income of after taxes, plus depreciation and amortization,
other non-cash expenses and interest expense (excluding non-cash interest) for any period.

 

(e) “Change
of Control” means, as to any Person, (i) any material change in the ownership;
(ii) a majority of the current members of the board of directors of such Person cease to be members of such board of directors;
or (ii) any change in the current Chief Executive Officer of such Person.

 

(f) “Code”
means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of Louisiana;
provided, that to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined
differently in different articles or divisions of the Code, the definition of such term contained in Article 9 shall govern; provided
further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority
of, or remedies with respect to, Lender’s lien on any Collateral is governed by the Uniform Commercial Code as enacted and
in effect in a jurisdiction other than the State of Louisiana, the term “Code” shall mean the Uniform Commercial Code
as enacted and in effect in such other jurisdiction  solely for purposes of the provisions thereof relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to such provisions.

  

     

     

    

 

(g) “Collateral”
means:

 

(i) All
present and future accounts, chattel paper (including electronic chattel paper), commercial tort claims, commodity accounts, commodity
contracts, deposit accounts, documents, financial assets, general intangibles, health care insurance receivables, instruments,
Intellectual Property, investment property, letters of credit, letter of credit rights, payment intangibles, securities, security
accounts and security entitlements now or hereafter owned, held or acquired.

 

(iii) All
present and hereafter acquired inventory and goods (including without limitation, all raw materials, work in process and finished
goods) held, possessed, owned, held on consignment or held for sale, lease, return or to be furnished under contracts of services,
in whole or in part, wherever located.

 

(v) All
equipment and fixtures of whatsoever kind and character now or hereafter possessed, held, acquired, leased or owned, together
with all replacements, accessories, additions, substitutions and accessions to all of the foregoing, and all records relating
in any way to the foregoing.

 

(vii) All
books, records, data, plans, manuals, computer software, computer tapes, computer systems, computer disks, computer programs,
source codes and object codes containing any information pertaining directly or indirectly to the Collateral and all rights to
retrieve data and other information pertaining directly or indirectly to the Collateral from third parties.

 

The term “Collateral,”
as used herein, shall also include (a) any other property or assets, real or personal, tangible or intangible, now existing or
hereafter acquired, of any Debtor that may at any time be or become subject to a security interest or Lien in favor of Lender
as security for the Indebtedness; and (b) all SUPPORTING OBLIGATIONS, PRODUCTS and PROCEEDS of all of the foregoing
(including without limitation, insurance payable by reason of loss or damage to the foregoing property) and any property, assets
securities, guaranties or monies of Debtor which may at any time come into the possession of Lender. The designation of proceeds
does not authorize Debtor to sell, transfer or otherwise convey any of the foregoing property except as authorized in this Agreement.

 

(h) “Constituent
Documents” means (i) in the case of a corporation, its articles or certificate
of incorporation and bylaws; (ii) in the case of a general partnership, its partnership agreement; (iii) in the case of a limited
partnership, its certificate of limited partnership and partnership agreement; (v) in the case of a trust, its trust agreement;
(v) in the case of a joint venture, its joint venture agreement; (vi) in the case of a limited liability company, its articles
of organization and operating agreement or regulations; and (vii) in the case of any other entity, its organizational and governance
documents and agreements.

 

(i) “Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings correlative
thereto.

 

(j) “Debt”
 means, with respect to each Person, without duplication, the sum of the following calculated in accordance with GAAP:

 

(i) all
liabilities, obligations and indebtedness for borrowed money of such Person including, but not limited to, obligations evidenced
by bonds, debentures, notes or other similar instruments of such Person;

  

    - 2 -

     

    

 

(ii) all
obligations for the deferred purchase price of property or services of any such Person, except trade payables arising in the ordinary
course of such Person’s business not more than ninety (90) days past due;

  

(iii) all
capital lease obligations of such Person (regardless of whether accounted for as indebtedness under GAAP);

 

(iv) all
guarantees that have the economic effect of guaranteeing the payment of any Indebtedness of any other Person;

  

(v) all
indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired,
whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

  

(vi) all
payment obligations, contingent or otherwise, of such Person equal to the face amount of letters of credit, whether or not drawn,
including, without limitation, any reimbursement obligation under any such letter of credit issued for the account of such Person;
and

  

(xii) Hedging
Obligations.

 

(k) “Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any
way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any
Hazardous Material or to health and safety matters.

  

(l) “Environmental
Liabilities” means, as to any Person, all liabilities, obligations, responsibilities,
remedial actions, losses, damages, punitive damages, consequential damages, treble damages, costs, and expenses, (including, without
limitation, all reasonable fees, disbursements and expenses of counsel, expert and consulting fees and costs of investigation
and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand, by any Person,
whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, including any Environmental
Law, permit, order or agreement with any Governmental Authority or other Person, arising from environmental, health or safety
conditions or the release or threatened release of a Hazardous Material into the environment, resulting from the past, present,
or future operations of such Person or its Affiliates.

 

(m) “Original
Loan Documents” means this Term Loan and Security Agreement, as thereafter may
be amended from time to time.

 

(n) “Fiscal
Quarter” means, with respect to Borrowers, any consecutive period of three (3)
calendar months ending on the last day of April, July, October and January of each calendar year.

 

(o) “GAAP”
means generally accepted accounting principles in the United States as in effect from time to time, applied on a consistent
basis, as set forth in Opinions of the Accounting Principles Board of the American Institute of Certified Public Accountants and/or
in statements of the Financial Accounting Standards Board and/or their respective successors and which are applicable in the circumstances
as of the date in question. Accounting principles are applied on a “consistent basis”
when the accounting principles applied in a current period are reasonably comparable in all material respects to those
accounting principles applied in a preceding period.

   

    - 3 -

     

    

 

(p) “Governmental
Authority” means the government of the United States of America, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

  

(q) “Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous
or toxic substances, wastes or other pollutants, and all other substances or wastes of any nature regulated pursuant to any Environmental
Law.

  

(r) “Hedging
Agreement” means (i) any agreement (including terms and conditions incorporated
by reference therein) which is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option,
forward foreign exchange agreement, spot foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar agreement,
currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement or arrangement (including
any option to enter into any of the foregoing) designed to alter the risks of any Person arising from fluctuations in interest
rates, currency values or commodity prices, (ii) any combination of the foregoing, and (iii) a master agreement for any of the
foregoing together with all supplements, all as amended, restated, supplemented or otherwise modified from time to time.

  

(s) “Hedging
Obligations” means all existing or future payment and other obligations, including
obligations arising from early termination, of any Borrower arising under or in connection with any Hedging Agreement.

  

(t) “Indebtedness”
means (i) all indebtedness, obligations, and liabilities of any Borrower to Lender of any kind or character, now existing
or hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several
and in solido, or joint and several and in solido, under the Note, this Agreement or any of the other Loan Documents, (ii) all
accrued but unpaid interest on any of the indebtedness described in (i) above, (iii) all obligations of Obligors to Lender under
the Loan Documents, (iv) all costs and expenses reasonably incurred by Lender in connection with the enforcement of all or any
part of the indebtedness and obligations described in (i), (ii) and (iii) above or the protection or preservation of, or realization
upon, the Collateral securing all or any part of such indebtedness and obligations, including without limitation all reasonable
attorneys’ fees and expenses, and (v) all renewals, extensions, modifications and rearrangements
of the indebtedness and payment obligations described in (i), (ii), (iii) and above.

  

(u) “Intercompany
Debt” has the meaning specified in Section 8(b)(ii).

  

(v)
“Licenses” means the patent, trademark or copyright license agreements
of a Person as any of the same may from time to time be amended or supplemented and those licenses which are hereafter obtained
or acquired by such Person.

  

(w)
“Loan Documents” means this Agreement, the Note, the Security Agreement,
the Subordination Agreement, if any, the Account Control Agreement, and the other agreements, instruments and documents evidencing,
securing, governing, guaranteeing or pertaining to the Loans (as any of the same may be amended, modified or restated from time
to time).

 

(x)“Loans”
means all advances under the term loan pursuant to the Loan Documents and under the loans pursuant to the Original Loan
Documents.

  

    - 4 -

     

    

  

(y)
“Material Adverse Effect” means a material adverse effect on (i)
the business, assets, property, operations, or financial condition, of the Borrowers and their consolidated Subsidiaries, taken
as a whole, (ii) the ability of the Obligors (taken as a whole) to pay the Indebtedness, (iii) any of the material rights of or
material benefits available to Lender under the Loan Documents, or (iv) the validity or enforceability of the Loan Documents.

  

(z)“Note”
means, collectively, any promissory note evidencing all or part of the Indebtedness from time to time (as any such Note
may be amended, modified or restated from time to time), including but not limited to that certain Promissory Note dated as of
April 30, 2018, executed by Debtors in favor of Lender, in the original principal amount of $650,000, as amended, modified, and
restated from time to time, and as amended and restated by that certain Amended and Restated Promissory Note of even date herewith
in the original principal amount of $650,000.00 executed by each Borrower in favor of Lender (as such Amended and Restated Promissory
Note may be amended, modified or restated from time to time).

 

(aa)“Obligors”
means each Borrower or any other Person who guaranteed or is otherwise obligated to pay or perform all or any portion of
Indebtedness.

 

(bb) “Permitted
Encumbrances” means the following encumbrances: (i) liens created by or pursuant
to the Loan Documents; (ii) liens in existence as of the date hereof which are listed, and the Property subject thereto described,
on Schedule 1(bb); and (iii) liens incurred pursuant to the refunding, refinancing, replacement, renewal, restructuring or extension
of any other lien permitted under this definition that do not increase the outstanding principal amount secured thereby. For the
avoidance of doubt, the term “lien” as used
herein shall mean and include any lien, security interest, pledge, or other encumbrance.

 

(cc)“Person”
means any individual, corporation, limited liability company, business trust, association, company, partnership, joint
venture, Governmental Authority, or other entity, including without limitation, each of the Borrowers and Obligors, and shall
also include such Person’s heirs, administrators, personal representatives, executors,
successors and assigns.

 

(dd) “Pledged
Shares” means one third of all outstanding shares of stock of T3 Communications, Inc..

 

(ee)“Property”
of a Person means any and all property, whether real, personal, tangible, intangible or mixed, of such Person, or any other
assets owned, operated or leased by such Person, and in the case of the Borrowers includes the Collateral.

 

(ff)“Security
Agreement” means the present Term Loan and Security Agreement

 

(gg)“Subordinated
Debt” has the meaning specified in Section 9(d)(vi).

 

(hh)“Subsidiary”
means any entity (i) of which at least a majority of the ownership, equity or voting interest is at the time directly or
indirectly owned or controlled by a Person and/or its Subsidiaries, and (ii) which is treated as a subsidiary in accordance with
GAAP. “Subsidiaries” means more than
one Subsidiary.

 

All financial covenants
for the Borrowers shall be calculated for purposes of this Agreement on a combined and consolidated basis.

  

    - 5 -

     

    

 

All words and phrases
used herein shall have the meaning specified in the Code except to the extent such meaning is inconsistent with this Agreement.
All definitions contained in this Agreement are equally applicable to the singular and plural forms of the terms defined. The
words “hereof’, “herein”,
and “hereunder” and words of similar import
referring to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Any accounting
term used in the Loan Documents shall have, unless otherwise specifically provided therein, the meaning customarily given such
term in accordance with GAAP, and all financial computations thereunder shall be computed, unless otherwise specifically provided
therein, in accordance with GAAP consistently applied.

 

2. Term Loans.

 

(a) Joint, Several
and In Solido Liability. Borrowers and any other Person named or identified as a Borrower under any subsequent amendment to
the Term Loan Documents hereby irrevocably and unconditionally: (i) agree that each is JOINTLY, SEVERALLY AND IN SOLIDO liable
to Lender for the full and prompt payment and performance of the Indebtedness under the Loan Documents in accordance with the
terms thereof; and (ii) agree to fully and promptly perform all of their obligations hereunder and the other Loan Documents with
respect to each Loan hereunder as if such Loan had been made directly to it. Each Borrower hereby designates Arthur L. Smith as
its representative and agent on its behalf for the purposes of giving instructions with respect to the disbursement of the proceeds
of the Loans, selecting interest rate options, giving and receiving all other notices and consents hereunder or under any of the
other Loan Documents and taking all other actions (including in respect of compliance with covenants) on behalf of the Borrowers
under the Loan Documents. Arthur L. Smith hereby accepts such appointment. Lender may regard any notice or other communication
pursuant to any Loan Document from Arthur L. Smith as a notice or communication from each Borrower. Each warranty, covenant, agreement
and undertaking made on behalf of any Borrower by Arthur L. Smith shall be deemed for all purposes to have been made by such Borrower
and shall be binding upon and enforceable against such Borrower to the same extent as it if the same had been made directly by
each Borrower.

  

(b) Cross-Guaranty.
Each Borrower hereby agrees that such Borrower is JOINTLY SEVERALLY AND IN SOLIDO liable for, and hereby absolutely and unconditionally
guarantees to Lender and its successors and assigns, the full and prompt payment (whether at stated maturity, by acceleration
or otherwise) and performance of, all Indebtedness owed or hereafter owing to Lender by any Borrower. Each Borrower agrees that
its guaranty obligation hereunder is a continuing guaranty of payment and not of collection, that its obligations under this Section
2(b) shall not be discharged until indefeasible payment and performance (subject to the proviso in the immediately preceding
sentence) in full of the Indebtedness has occurred, and that its obligations under this Section 2(b) shall be absolute
and unconditional, irrespective of and unaffected by:

  

(i) the
genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other Loan Document
or any other agreement, document or instrument to which any Borrower is or may become a party;

 

(ii) the
absence of any action to enforce this Agreement, including this Section 2(b), or any other Loan Document or the waiver
or consent by Lender with respect to any of the provisions thereof;

  

(iii) the
existence, value or condition of, or failure to perfect its lien against, any security or Collateral for the Indebtedness or any
action, or the absence of any action, by Lender in respect thereof (including the release of any such security or Collateral);

 

(iv) the
insolvency of any Obligor; or

 

    - 6 -

     

    

 

(v) any
other action or circumstance that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor.

 

Each Borrower shall be
regarded, and shall be in the same position, as principal debtor with respect to the Indebtedness guaranteed hereunder. To the
extent that any Borrower shall make a payment under this Section 2(b) of all or any of the Indebtedness (other than Loans
made to such Borrower for which it is primarily liable) (a “Guarantor Payment”)
that, taking into account all other Guarantor Payments then previously or concurrently made by any Borrower, exceeds the amount
that such Borrower would otherwise have paid if each Borrower had paid the aggregate Indebtedness satisfied by such Guarantor
Payment in the same proportion that such Borrower’s Allocable Amount (as defined below)
(as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of Borrower as determined
immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Indebtedness,
such Borrower shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower
for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor
Payment. As of any date of determination, the “Allocable Amount”
of any Borrower shall be equal to the maximum amount of the claim that could then be recovered from such Borrower under
this Section 2(b) without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy
Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common
law. This Section 2(b) is intended only to define the relative rights of each Borrower and nothing set forth herein is
intended to or shall impair the obligations of any Borrower, jointly, severally and in solido, to pay any amounts as and
when the same shall become due and payable in accordance with the terms of this Agreement. Nothing contained in this Section
2(b) shall limit the liability of any Borrower to pay the Loans made directly or indirectly to that Borrower and accrued interest,
fees and expenses with respect thereto for which such Borrower shall be primarily liable. The liability of each Borrower under
this Section 2(b) is in addition to and shall be cumulative with all other liabilities of any Borrower to Lender under
the Loan Documents to which such Borrower is a party, without any limitation as to amount, unless the instrument or agreement
evidencing or creating such other liability specifically provides to the contrary.

 

(c) Term Loan.
Subject to the terms and conditions set forth in this Agreement and the other Loan Documents, Lender hereby agrees to lend to
Borrower an aggregate sum of not less than SIX HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($650,000) until May 14, 2018
(the “Maturity Date”).

  

(d) Use of Proceeds.
The Loans under have been used for the acquisition of certain businesses by the Borrowers.

  

(e) Fees.
Borrowers, jointly and severally, agree to pay to Lender:

  

(i) An
earned non-refundable origination fee of $0.00 payable on the date of this Agreement;

 

(ii) A
late fee of $3,000 per calendar week, payable in arrears on a weekly basis beginning on the 15th day of May, 2018 should payment
in full not be received by Lender by the Maturity Date.

  

3. Note, Rate
and Computation of Interest. The Loans are evidenced by the Note. Interest on the Note shall accrue at the rates set forth
therein. The principal of and interest on the Note shall be due and payable in accordance with the respective terms and conditions
set forth in the Note and in this Agreement.

  

    - 7 -

     

    

 

 

4. Collateral.

 

(a) Grant of Security
Interest. As collateral security for the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise)
of the Indebtedness, Debtor hereby pledges to and grants Lender a security interest in all of Debtor’s right, title and interest
in the Collateral, whether now owned by Debtor or hereafter acquired and whether now existing or hereafter coming into existence.
If Debtor at any time holds or acquires a commercial tort claim, Debtor shall notify Lender in writing within FIVE (5) Business
Days of such occurrence with the details thereof and grant to Lender a security interest therein or Lien thereon and in the proceeds
thereof, in form and substance satisfactory to Lender. If the security interest granted hereby in any rights of Debtor under any
contract or other agreement included in the Collateral is expressly prohibited by such contract, then the security interest hereby
granted therein nonetheless remains effective to the extent allowed by Article 9 of the UCC or other applicable law, but is otherwise
limited by that prohibition.

 

(b) Debtor Remains
Liable. Notwithstanding anything to the contrary contained herein, (i) Debtor shall remain liable under the contracts and agreements
included in the Collateral to the extent set forth therein to perform all of Debtor’s respective duties and obligations thereunder
to the same extent as if this Agreement had not been executed; (ii) the exercise by Lender of any of its rights hereunder shall
not release Debtor from any of its duties or obligations under the contracts and agreements included in the Collateral and (iii)
Lender shall not have any obligation or liability under any of the contracts and agreements included in the Collateral by reason
of this Agreement, nor shall Lender be obligated to perform any of the obligations or duties of Debtor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

 

(c) Intellectual
Property. All material Intellectual Property owned or used by Debtor (if any) is listed, together with application
or registration numbers, where applicable, in Schedule I. Debtor owns, or is licensed to use, all Intellectual Property
necessary to conduct its business as currently conducted except for such Intellectual Property the failure of which to own or
license would not reasonably be expected to have a Material Adverse Effect. Debtor will maintain the patenting and registration
of all Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office, or other
appropriate Governmental Authority, and Debtor will promptly patent or register, as the case may be, all new Intellectual Property
and notify Lender in writing FIVE (5) Business Days prior to filing any such new patent or registration.

 

(d) Pledge of
Stock. Each Borrower hereby pledges, grants a security interest in, assigns, transfers and delivers unto Secured Party
and its successors and assigns the Pledged Shares as collateral security for the payment and performance by Borrower of the
Obligations set forth herein. Pledgor has, concurrently herewith, delivered to Secured Party the stock certificate evidencing
the Pledged Shares together with appropriate stock powers executed in blank in the form of Exhibit A, attached hereto. The
Pledged Shares shall hereby included as the “Collateral.” Pledgor hereby represents and warrants to Secured Party
as follows:

 

(i) Ownership of the
Pledged Shares. Pledgor is and shall be the beneficial and record owner of the Pledged Shares.

 

(ii) Liens,
Claims, Encumbrances, Etc. Pledgor owns the Pledged Shares free and clear of any material liens, claims, encumbrances or security
interests of any kind or nature whatsoever.

 

(iii) Authority.
Pledgor is not precluded in any manner whatsoever from executing, and has the requisite authority to execute, this Agreement and
to pledge, transfer and grant a security interest and lien in the Collateral as contemplated herein, without the approval or authorization
of any other person, including any governmental or regulatory authority whatsoever.

 

    - 8 -

     

    

 

(iv) First
Priority Lien. The pledge, assignment and delivery of the Collateral pursuant to this Agreement will create a valid first
priority lien on and a first priority perfected security interest in the Collateral pledged by Pledgor, and the proceeds thereof,
securing the payment of the Obligations.

 

(v) Due
Authorization. This Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a legal, valid and
binding obligation of Pledgor enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, or other similar laws affecting the rights of creditors generally or by the application of general equity principles.

 

(vi) Lender
agrees that it will have no right to exercise its security interest of the Pledged Shares unless payment in full is not received
within 45 days of the Effective Date of this Agreement.

 

(e) Additional Documents.
To secure full and complete payment and performance of the Indebtedness, each Borrower shall execute and cause to be executed
such further documents and instruments, as Lender, in its reasonable discretion, deems necessary or desirable to create, evidence,
preserve, and perfect its liens and security interests in the Collateral. In the event any of the Loan Documents evidencing or
securing the Indebtedness misrepresents or inaccurately reflects the correct terms and/or provisions of the Indebtedness, each
Obligor shall upon request by Lender and in order to correct such mistake, execute such new documents or initial corrected, original
documents as Lender may deem necessary to remedy said errors or mistakes. Each Obligor shall execute such other documents as Lender
shall deem reasonably necessary to correct any defects or deficiencies in the Loan Documents.

 

(f) Setoff. If
an Event of Default shall have occurred and be continuing, Lender shall have the right to set off and apply against the Indebtedness
in such manner as Lender may determine, at any time and without notice to any Borrower, any and all deposits (general or special,
time or demand, provisional or final) or other sums at any time credited by or owing from Lender to any Borrower whether or not
such Indebtedness is then due. The rights and remedies of Lender hereunder are in addition to any other rights and remedies (including,
without limitation, other rights of setoff) which Lender may have.

 

(g) Satisfaction of
Indebtedness. Until the Indebtedness has been indefeasibly paid and fully satisfied (other than contingent indemnification
obligations to the extent no unsatisfied claim has been asserted) and the commitments of Lender under the Loan Agreement have
been terminated, Lender shall be entitled to retain the security interests in the Collateral granted under the Loan Documents
and the ability to exercise all rights and remedies available to Lender under the Loan Documents and applicable laws.

 

5. Conditions Precedent. The obligation
of Lender to make the Loans is subject to the condition precedent that Lender shall have received on or before the day of such
Loans all of the following, each dated (unless otherwise indicated) as of the date hereof:

 

(a) Resolutions.
Resolutions of the governing body of each Obligor that is not a natural Person, in form and substance reasonably acceptable to
Lender, certified by an authorized officer or representative of such Obligor, which authorize the execution, delivery, and performance
of the Loan Documents to which such Obligor is a party;

 

    - 9 -

     

    

 

(b) Incumbency Certificate. A certificate,
in form and substance reasonably acceptable to Lender, of incumbency certified by an authorized officer or representative of an
Obligor certifying the names of the individuals or other Persons authorized to sign the Loan Documents to which any Obligor that
is not a natural Person is to be a party (including the certificates contemplated herein) together with specimen signatures of
such Persons;

 

(c) Constituent Documents. The Constituent
Documents of each Obligor that is not a natural Person, certified to Lender as being true and correct as of the date of this Agreement;

 

(d) Governmental Certificates. Certificates
of the appropriate government officials of the state of organization of each Obligor that is not a natural Person, and, if and
to the extent required by Lender, and any state such Obligor is currently doing business in, certifying as to the existence, qualification
and good standing of such Obligor, dated within twenty (20) Business Days of the date of this Agreement;

 

(e) Loan Documents. The following Loan
Documents, duly executed (as applicable), and in full force and effect:

 

(i) This Agreement;

 

(ii) the Note (amended and restated as of
the date hereof);

 

(iii) the Security Agreement; and

 

(iv) any Subordination Agreement;

 

(f) Subordinate Notes. Copy of any
promissory note subject to the Subordination Agreement(s), if any.

 

(g) Financing Statements. Code financing
statements covering the Collateral shall have been filed with such filing offices as Lender may request;

 

(h) Insurance Matters. Copies of insurance
certificates describing all insurance policies of each Borrower, together with loss payable and lender endorsements in favor of
Lender with respect to all insurance policies covering the Collateral;

 

(i) Uniform Commercial Code Search.
Results satisfactory to Lender of a Code search showing all financing statements on file against each Borrower in such jurisdictions
as Lender may reasonably request;

 

(j) Fees and Expenses. Evidence that
the reasonable and documented costs andexpenses of Lender (including reasonable and documented attorneys’ fees) and all fees
owing by any Borrower to Lender on or prior to the date of this Agreement, shall have been paid in full by Borrowers which may
be paid using proceeds from the Loans;

 

(k) Opinion of Borrower’s Counsel.
The opinion of Obligor’s counsel, in form and substance reasonably acceptable to Lender, as to (A) the existence and due
organization of such Obligor (if not a natural Person) or the legal capacity of such Obligor (if a natural Person), (B) the due
authorization and execution of the Loan Documents, (C) the enforceability of the Loan Documents, (D) the perfection of Lender’s
security interest in the Collateral, and (E) such other matters as may be reasonably requested by Lender and its counsel;

 

(l) Other Matters. Such other documents
and agreements as may be required by Lender in its reasonable discretion.

 

    - 10 -

     

    

 

6. Representations and Warranties.
Each Obligor hereby represents and warrants to Lender as follows:

 

(a) Existence.
Each Borrower (i) is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization;
(ii) has all requisite power and authority to own its assets and carry on its business as now being or as proposed to be conducted;
and (iii) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary
and where failure to so qualify would have a Material Adverse Effect. Each Borrower has the power and authority to execute, deliver,
and perform its obligations under the Loan Documents to which it is or may become a party.

 

(b) Binding
Obligations. The execution, delivery, and performance of the Loan Documents by each Obligor have been duly authorized by
all necessary organizational action by such Obligor, and constitute legal, valid and binding obligations of such Obligor,
enforceable in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws of
general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may
generally be limited by equitable principles.

 

(c) No Consent.
The execution, delivery and performance of the Loan Documents, and the consummation of the transactions contemplated thereby,
do not (i) conflict with, result in a violation of, or constitute a default under (A) any provision of the Constituent Documents
(if any) or other instrument binding upon any Obligor, (B) any law, governmental regulation, court decree or order applicable
to any Obligor, or (C) any material contractual obligation, agreement, judgment, license, order or permit applicable to or binding
upon any Obligor, (ii) require the consent, approval or authorization of any third party or (iii) result in or require the creation
of any lien, charge or encumbrance upon any Property of any Obligor, except as may be expressly contemplated in or permitted under
the Loan Documents.

 

(d) Financial
Condition. Each financial statement of each Obligor supplied to Lender truly discloses and fairly presents in all
material respects such Person’s financial condition as of the date of each such statement. There has been no material
adverse change in such financial condition or results of operations of any Borrower and its consolidated Subsidiaries and any
other Obligor (taken as a whole) subsequent to the date of the most recent financial statement delivered by any Borrower to
Lender that would materially and adversely affect Borrowers’ ability to repay the Indebtedness then outstanding under
the Loan Documents.

 

(e) Operation of
Business. Each Borrower possesses all material contracts, licenses, permits, franchises, patents, copyrights, trademarks,
and tradenames, or rights thereto, required to conduct its businesses substantially as now conducted and as presently
proposed to be conducted, and each Borrower is not to its knowledge in violation of any valid rights of others with respect
to any of the foregoing, except for any failures of possession or any violations that could not reasonably be expected to
result in a Material Adverse Effect.

 

    - 11 -

     

    

 

(f) Litigation and
Judgments. There is no action, suit, investigation, or proceeding before or by any Governmental Authority or arbitrator pending,
or to the knowledge of any Borrower, threatened in writing against or affecting any Obligor that would, if adversely determined,
have a Material Adverse Effect. There are no outstanding judgments against any Obligor.

 

(g) Rights in Properties;
Liens. Each Borrower has good and marketable title to or valid leasehold interests in its material Properties, including such
Properties reflected in the financial statements provided to Lender, and none of the Properties of any Borrower is subject to
any lien, except Permitted Encumbrances.

 

(h) Debt. No Borrower
has any Debt other than Permitted Indebtedness.

 

(i) Disclosure.
No statement, information, report, representation, or warranty made by any Obligor in the Loan Documents or furnished by any Obligor
to Lender in connection with the Loan Documents or any of the transactions contemplated hereby contains any untrue statement of
a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading. There is
no fact known to any Obligor which would reasonably be expected to have a Material Adverse Effect.

 

(j) Subsidiaries,
Ventures, Etc. Each Borrower has no Subsidiaries, Affiliates or joint ventures or partnerships other than those listed on
Schedule 6(j) and such Schedule sets forth the jurisdiction of organization of each such Person and the percentage of such
Borrower’s ownership interest in such Person.

 

(k) Material Agreements. 
No Borrower is a party to any indenture, loan, or credit agreement, or to any lease or other material agreement or instrument,
or subject to any restriction in any of its Constituent Documents, which could reasonably be expected to have a Material Adverse
Effect. No Borrower is in default in any material respect in the performance, observance, or fulfillment of any of the obligations,
covenants, or conditions contained in any agreement or instrument material to its business.

 

(l) Compliance with
Laws. No Borrower is in violation of any law, rule, regulation, order, or decree of any Governmental Authority or arbitrator,
the violation of which could reasonably be expected to have a Material Adverse Effect.

 

(m) Taxes; Governmental
Charges. Each Obligor has filed all federal, and material state and local tax reports and returns required by any law or regulation
to be filed by it or has either duly paid all taxes, duties and charges indicated due on the basis of such returns and reports,
or made adequate provision for the payment thereof, except for any such taxes, duties or charges which are being challenged or
disputed by any Obligor in good faith and pursuant to appropriate proceedings.

 

(n) Security Interest. Each Borrower has and will have at all times the power and authority to grant a security interest in the Collateral
to Lender in the manner provided herein, free and clear of any lien, security interest or other charge or encumbrance, other than
Permitted Encumbrances. This Agreement creates a legal, valid and binding first priority security interest (subject to Permitted
Encumbrances) in favor of Lender in the Collateral securing the Indebtedness. Possession by Lender of certain types of Collateral
from time to time or the filing of the financing statements delivered prior hereto or concurrently herewith by Borrower to Lender
will perfect and establish the first priority of Lender’s security interest hereunder in the Collateral (to the extent that
perfection can be accomplished through the filing of a financing statement or the possession of such Collateral) other than for
the Permitted Encumbrances.

 

    - 12 -

     

    

 

(o) Location. Each Borrower’s
chief executive office and the office where the records concerning the Collateral is listed on the signature page below.

 

(p) Environmental Matters. Except for
matters disclosed in writing to Lender:

 

(i) Notice
of Non-Compliance. Each Borrower and all of its Property and operations are in full compliance with all applicable Environmental
Laws, except where non-compliance could not reasonably be expected to result in a Material Adverse Effect. No Borrower is aware
of, or has received notice of, any past, present, or future conditions, events, activities, practices, or incidents which may
interfere with or prevent the compliance or continued compliance of Borrowers with all Environmental Laws, except where any of
the foregoing could not reasonably be expected to have a Material Adverse Effect;

 

(ii) Permits.
Each Borrower has obtained all permits, licenses, and authorizations that are required under applicable Environmental Laws,
and all such permits are in good standing and each Borrower is in compliance with all of the terms and conditions of such
permits, except where any of the foregoing could not reasonably be expected to result in a Material Adverse Effect;

 

(iii) Hazardous
Materials. No Hazardous Materials exist on, about, or within or have been used, generated, stored, transported, disposed
of on, or released by any Borrower from any of the Property of any Borrower, except to the extent in compliance with
Environmental Laws or where any of the foregoing could not reasonably be expected to result in a Material Adverse Effect. The
use which each Borrower makes and intends to make of its respective properties and assets will not result in the use,
generation, storage, transportation, accumulation, disposal, or release of any Hazardous Material on, in, or from any of its
properties or assets, except to the extent in compliance with Environmental Laws or where any of the foregoing could not
reasonably be expected to result in a Material Adverse Effect;

 

(iv) No
Pending or Threatened Actions. To the knowledge of each Borrower, no Borrower nor any of its currently or previously owned
or leased Property or operations is subject to any outstanding or threatened order from or agreement with any Governmental Authority
or other Person or subject to any judicial or docketed administrative proceeding with respect to failure to comply with Environmental
Laws; and

 

(v) No
Conditions. There are no conditions or circumstances associated with the currently (or, to the best of each
Borrower’s knowledge, previously) owned or leased Property or operations of any Borrower that could reasonably be
expected to give rise to any Environmental Liabilities of Borrower.

 

(q) Solvency. On the date hereof each
Borrower will be able to pay its debts generally as they become due, and the assets of each Borrower at a fair valuation will exceed
the liabilities of such Borrower and each such Borrower will have adequate capital to continue its business operations.

 

(r) Real Property. None of the Borrowers
owns any real property.

 

7. Affirmative Covenants. Until all
Indebtedness of any Borrower under the Loan Documents is paid or satisfied in full, each Borrower agrees and covenants as follows:

 

(a) Compliance with Laws. Each Borrower
will conduct its business in an orderly and efficient manner consistent with good business practices, and perform and comply with
all applicable statutes, rules, regulations or ordinances imposed by any Governmental Authority upon Borrower and its businesses,
operations and Properties (including without limitation, all applicable environmental statutes, rules, regulations and ordinances)
except where the failure to perform or comply could not reasonably be expected to have a Material Adverse Effect.

 

    - 13 -

     

    

 

(b) Payment of Obligations. Each Borrower
will pay its obligations, including tax liabilities, that, if not paid, would become a lien on any of its Property (other than
Permitted Encumbrances), before the same shall become delinquent or in default, except where (i) the validity or amount thereof
is being contested in good faith by appropriate proceedings, (ii) Borrower has set aside on its books adequate reserves with respect
thereto in accordance with GAAP, and (iii) the failure to make payment pending such contest could not reasonably be expected to
result in a Material Adverse Effect.

 

(c) Application of Proceeds. In addition
to the payments obligations set forth in Section 7(b) above, each Borrower shall pay to Lender any cash proceeds received by a
Borrower in respect of any sale or other disposition of, collection from, or other realization upon, all or any part of the Collateral
(except for dispositions of inventory and other goods, services and other Property in the ordinary course of such Borrower’s
business) as follows (in such order and manner as Lender may elect):

 

(i) to the repayment
or reimbursement of the reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses)
incurred by Lender in connection with (1) the administration of the Loan Documents, (2) the custody, preservation, use or operation
of, or the sale of, collection from, or other realization upon, the Collateral, and (3) the exercise or enforcement of any of the
rights and remedies of Lender hereunder;

 

(ii) to the payment or
other satisfaction of any Permitted Encumbrances; and

 

(iii) to the satisfaction
of the Indebtedness.

 

(d) Maintenance and Conduct of Business.
Each Borrower will (i) keep, maintain and preserve all Property (tangible and intangible) material to the conduct of its business
in good working order and condition, ordinary wear and tear excepted, and (ii) do or cause to be done all things necessary to preserve,
renew and keep in full force and effect (A) its legal existence and (B) the rights, licenses, permits, privileges, agreements and
franchises material to the conduct of its business except where any failure to do any of the foregoing could not reasonably be
expected to result in a Material Adverse Effect.

 

(e) Books and Records; Inspection Rights.
Each Borrower will keep proper books of record and account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. Each Borrower will permit any representatives designated by Lender, upon
reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss
its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as
reasonably requested.

 

(f) Insurance. Each Borrower will maintain
fire insurance, comprehensive property damage, commercial general liability, public liability, worker’s compensation, business
interruption and other insurance deemed reasonably necessary. Each Borrower will, at its own expense, maintain such insurance with
respect to all Collateral against such risks, and in such form and with such insurers, and in such amounts as shall be satisfactory
to Lender. Each policy of insurance maintained by each Borrower shall (i) name Lender as additional insured or lender loss payee,
as the case may be, thereunder (without any representation or warranty by or obligation upon Lender) as their interests may appear,
(ii) contain the agreement by the insurer that any loss thereunder shall be payable to Lender notwithstanding any action, inaction
or breach of representation or warranty by any Borrower, (iii) provide that there shall be no recourse against Lender for payment
of premiums or other amounts with respect thereto, and (iv) provide prior written notice of cancellation or of lapse shall be given
to Lender by the insurer in accordance with the insurer’s commercial practices as adopted from time to time. Borrowers will
deliver to Lender original or duplicate policies of such insurance. Borrowers will also, at the request of Lender, duly execute
and deliver instruments of collateral assignment of such insurance policies during the continuation of an Event of Default and
cause the respective insurers to acknowledge notice of such assignment. All insurance payments in respect of loss of or damage
to any Collateral shall be paid to Lender and applied by Lender in accordance with the Loan Documents, provided, however, that
so long as no Event of Default exists, each Borrower may retain and use such insurance payments for the repair or replacement of
such lost or damaged property or for any other business purpose not prohibited under this Agreement.

 

    - 14 -

     

    

 

(g) Compliance with Agreements. Each
Borrower will comply, in all material respects with all material agreements, contracts, and instruments to which it is a party
which affect its Properties or business.

 

(h) Additional Subsidiaries. If any
Subsidiary of any Borrower is formed or acquired after the Closing Date, such Borrower will notify Lender thereof and shall cause
the Property of such Subsidiary to be included in the Collateral.

 

(i) Notices of Material Events. Each
Borrower will furnish to Lender prompt written notice of the following:

 

(i) the occurrence of any Event of Default;

 

(ii) the filing or commencement
of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting any Borrower, or its
Subsidiaries or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse
Effect;

 

(iii) any and all material
adverse changes in any Obligor’s financial condition and all claims made against any Obligor, in each case that constitute
items required to be disclosed on U.S. Securities and Exchange Commission Form 8-K affect the financial condition of such Obligor;
and

 

Each notice delivered
under this Section shall be accompanied by a statement of an executive officer of the relevant Borrower setting forth in reasonable
detail the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

(j) Ownership and Liens. Each Borrower
will maintain good and marketable title to the Collateral free and clear of all liens, security interests, encumbrances or adverse
claims, except for Permitted Encumbrances. Each Borrower will cause any Code financing statement or other security instrument with
respect to the Collateral to be terminated, except for Code financing statements evidencing Permitted Encumbrances. Each Borrower
will defend at its expense Lender’s right, title and security interest in and to the Collateral against the claims of any
third party.

 

(k) Accounts and
General Intangibles. Each Borrower will, except as otherwise provided herein, collect, at such Borrower’s own expense,
all amounts due or to become due under each of the accounts and general intangibles that are included in the Collateral. In connection
with such collections, a Borrower may and, at Lender’s direction during the continuance of an Event of Default, will take
such action not otherwise forbidden herein as such Borrower or Lender may deem reasonably necessary or advisable to enforce collection
or performance of each of such accounts and general intangibles. Each Borrower will also duly perform and cause to be performed
all of its material obligations with respect to the goods or services, the sale or lease or rendition of which gave rise or will
give rise to each such account and all of its obligations to be performed under or with respect to the general intangibles, except
to the extent disclosed in writing to Lender. Each Borrower also covenants and agrees to take any action and/or execute any documents
that Lender may reasonably request in order to comply with applicable law relating to the assignment of such accounts.

 

    - 15 -

     

    

 

(l) Chattel Paper,
Documents and Instruments. Each Borrower will take such action as may be reasonably requested by Lender in order to cause any
chattel paper, documents or instruments owned by such Borrower to be valid and enforceable and will cause all chattel paper, and
instruments to have only one original counterpart. Upon request by Lender, each Borrower will deliver to Lender all originals of
such chattel paper, documents or instruments and unless such request is made, such Borrower will not deliver possession of such
chattel paper, documents or instruments to any Person and will mark all chattel paper, documents or instruments with a legend indicating
that such chattel paper, document or instrument is subject to the security interest granted in the Security Agreement.

 

(m) Mortgages, Waivers
and Consents Relating to Leasehold Interests in Real Property. Upon the request of Lender, each Borrower shall cause each
landlord of real property leased by such Borrower to execute and deliver leasehold mortgage agreements reasonably satisfactory
in form and substance to Lender by which such Borrower grants a leasehold mortgage to Lender and such landlord waives or subordinates
any liens it may have in any Collateral (other than Permitted Encumbrances) located on such real property.

 

(n) Intercompany Debt;
Other Debt. Each Borrower covenants and agrees that the payment of principal and/or interest of any Intercompany Debt and
any liens securing Intercompany Debt is or will be subordinated to the Indebtedness on terms acceptable to Lender until the Indebtedness
has been paid in full and Lender has no funding commitments hereunder. Each Borrower covenants and agrees that the payment of
principal and/or interest of the Subordinated Debt and any liens securing the Subordinated Debt will be subordinated to the Indebtedness
pursuant to the terms and conditions of the Subordination Agreement, if any.

 

8. Negative Covenants. Until all Indebtedness
of any and all Borrowers under the Loan Documents is indefeasibly paid or satisfied in full, each Borrower agrees and covenants
as follows:

 

(a) Fundamental
Change. No Borrower will (i) make any material change in the nature of its business as carried on as of the date hereof,
(ii) liquidate, merge or consolidate with or into any other Person, (iii) cause, permit or suffer, directly or indirectly,
any Change of Control or (iv) make a change in organizational structure or the jurisdiction in which it is organized.

 

(b) Indebtedness. No
Borrower will create, incur, assume or permit to exist any Debt except for the following (“Permitted Indebtedness”):

 

(i) The Indebtedness
created hereunder;

 

(ii) Intercompany
Debt between or among any Borrowers which is subordinated to the Indebtedness on terms acceptable to Lender (“Intercompany
Debt”);

 

(iii) Debt existing on
the date hereof and set forth in Schedule 8(b) and 8(c);

 

(iv) Debt constituting
trade payables incurred in the ordinary course of business;

 

    - 16 -

     

    

 

(v) capital lease obligations
and purchase money Debt (of any or all Borrowers) in an aggregate principal amount not to exceed $100,000 at any time outstanding;

 

(vi) Debt incurred or
arising from or in connection with any bid, surety performance, statutory, completion, return-of-money or appeal bonds and similar
obligations;

 

(vii) any refinancings,
refundings, replacements, renewals, or extensions, in whole or in part, of any Debt otherwise permitted hereunder (provided
that the original principal amount of any such Debt described on Schedule 8(b) will not be increased) and any guarantees
permitted under Section 8(c);

 

(viii) Debt arising or
incurred as a result of or in connection with any letter of credit, letter of guaranty, banker’s acceptance, other deposits
or any other similar arrangement by any Borrower in the ordinary course of business, provided that the aggregate amount
of such letters of credit, letters of guaranty, banker’s acceptances and similar arrangements of all of the Borrowers shall
not exceed $100,000 at any time outstanding; and

 

(ix) Subordinated Debt.

 

(c) Loans and Guarantees. No
Borrower will make loans to or guarantee any Debt of any other Person, other than (i) the loans outstanding on the date hereof
as set forth on Schedule 8(c) hereto, (ii) loans or advances to employees of any Borrower not to exceed an aggregate principal
amount among the Borrowers of FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00) outstanding at any time, (iii) loans or advances constituting
Intercompany Debt permitted under Section 8(b)(ii), (iv) accounts receivable for sales of inventory and other goods and
services provided by any Borrower to its respective customers, (v) guarantees of Debt between or among, and Intercompany Debt
between or among any of the Borrowers, and (vi) guarantees of any Debt permitted under Section 8(b).

 

(d) Transactions With
Affiliates. No Borrower will enter into any transaction, including, without limitation, the purchase, sale or exchange of
property or the rendering of any service, with any Affiliate of such Borrower, except upon fair and reasonable terms not less
favorable to such Borrower than would be obtained in a comparable arm’s-length transaction with a Person which is not an
Affiliate of such Borrower.

 

(e) Transfer or
Encumbrance. No Borrower will (i) sell, assign (by operation of law or otherwise), transfer, exchange, lease or otherwise
dispose of (each a “Disposition”) any of the Collateral or any other Property, or (ii) grant a lien or
security interest in or execute, file or record any financing statement or other security instrument with respect to any of
the Collateral, other than the Permitted Encumbrances, except, with respect to clause (i) above, for:

 

(i) Dispositions contemplated
by Section 7(c) hereof;

 

(ii) Dispositions of
inventory and other goods, services and other Property in the ordinary course of such Borrower’s business;

 

(iii) Dispositions
of Property between or among any Borrowers (provided, however, that any such Disposition does not adversely affect
the validity or priority of Lender’s lien on such Property); and

 

    - 17 -

     

    

 

(iv) Dispositions of any item of Property
of any Borrower which is worn out or obsolete and is replaced by other Property of substantially equal suitability and value, owned
by such Borrower and made subject to the first priority security interest under this Agreement, but which is otherwise free and
clear of any lien, security interest, encumbrance or adverse claim (other than Permitted Encumbrances).

 

(f) Impairment of
Security Interest. No Borrower will take any action that would in any material respect impair the enforceability of Lender’s
security interest in any Collateral.

 

(g) Compromise of
Accounts. No Borrower will adjust, settle, or compromise any of its Accounts included in the Collateral, except for any adjustment,
settlement, or compromise made by such Borrower in its reasonable judgment on any such account in the ordinary course of such
Borrower’s business; provided, however, this exception shall terminate following Borrowers’ receipt
of written notice from Lender upon the occurrence and during the continuation of an Event of Default. Each Borrower shall provide
to Lender such information concerning (i) any adjustment, settlement, or compromise of any such account, and (ii) any claim asserted
by any account debtor for credit, allowance, adjustment, dispute, setoff or counterclaim, on any such account as Lender may reasonably
request from time to time.

 

(h) Financing Statement
Filings. No Borrower will cause or permit any change (i) to such Borrower’s legal name, or (ii) the state of such Borrower’s
organization to a jurisdiction other than as represented herein, unless such Borrower shall have notified Lender in writing of
such change at least thirty (30) days prior to the effective date of such change, and shall have first taken all action reasonably
required by Lender for the purpose of further perfecting or protecting the security interest in favor of Lender in the Collateral.

 

(i) Investments. No
Borrower will purchase any stock, equity interests or debt obligations (except for cash equivalents and other debt obligations
of the U.S. Treasury or any other Governmental Authority) (collectively, “Investments”), except for Investments
described on Schedule 8 (i) hereto;

 

9. Minimum Cash
Flow to Debt Service Ratio. Until all Indebtedness of any Borrower under the Loan Documents is indefeasibly paid and satisfied
in full, each Borrower, excluding Digerati Technologies, Inc., agrees and covenants that it will maintain a ratio of Cash Flow
to scheduled interest payments on Debt (excluding non-cash payments and interest) of not less than 1.00 to 1.00 as of the end
of each Fiscal Quarter beginning with the quarter ending July 31, 2018.

 

10. Reporting Requirements.
Until all Indebtedness of any Borrower under the Loan Documents is indefeasibly paid and satisfied in full, each Borrower
agrees and covenants that it will furnish or cause to be furnished the following:

 

(a) Interim Financial Statements. As
soon as available, and in any event within thirty (45) days after the end of each calendar month, an unaudited set of consolidated
financial statements of Borrowers, to include a consolidated balance sheet and income statement of Borrowers (on a consolidated
and consolidating basis), as of the end of such calendar month, all in form and substance and in reasonable detail reasonably satisfactory
to Lender and duly certified (subject to quarter-end and year-end adjustments and the absence of footnotes) by an appropriate officer
of each Borrower (i) as being true and correct in all material aspects to the best of such officer’s knowledge (subject to
quarter-end and year-end adjustments and the absence of footnotes), and (ii) as having been prepared in accordance with GAAP.

 

    - 18 -

     

    

 

(b) Annual Financial
Statements. As soon as available and in any event (i) within ninety (90) days after the end of each fiscal year, a set of
consolidated financial statements of Borrowers, to include a consolidated balance sheet, income statement and cash flow statement
of Borrowers, as of the end of such fiscal year, audited by independent certified public accountants of recognized standing chosen
by the Borrowers and reasonably satisfactory to Lender.

 

(c) Compliance
Certificate. Concurrently with the delivery of each of the financial statements of Borrowers referred to in Sections
10(a) and (b), a certificate of an officer of each Borrower, substantially in the form of Exhibit A (i)
stating that to such officer’s knowledge, no Event of Default has occurred and is continuing, or if an Event of Default
has occurred and is continuing, a statement as to the nature thereof and the action which is proposed to be taken with
respect thereto, and (ii) showing in reasonable detail the calculations demonstrating compliance with the financial covenants
set forth in Section 9 of this Agreement.

 

(d) Other Information.  Borrowers
shall promptly deliver such other information concerning Borrowers or any Subsidiary of any Borrower as Lender may reasonably
request.

 

11. Events of
Default. Each of the following shall constitute an “Event of Default” under this Agreement:

 

(a) Payment Default.  The
failure, refusal or neglect of any Borrower to pay any part of the principal of, or interest on, the Indebtedness owing to Lender
by any Borrower by the Maturity Date and such failure, refusal or neglect shall continue unremedied for a period of five (5) Business
Days.

 

(b) Performance Default.  The
failure of any Obligor to timely and properly observe, keep or perform any covenant or agreement, required herein or in any of
the other Loan Documents which is not cured within five (5) days following written notice from Lender to such Obligor; provided
that the foregoing notice and opportunity to cure in this subsection (b) will not be required with respect to a payment default
as set forth in Section 11(a), or with respect to a default under covenants set forth in Section 8 and Section
9;

 

(c) Representations.  Any representation or warranty contained herein or in any of the other Loan Documents made by an Obligor is false or misleading
in any material respect.

 

(d) Default Under
Other Indebtedness. The occurrence and continuance of any event of default under any agreement (beyond any applicable notice
and cure or grace period) governing or evidencing indebtedness for borrowed money which permits the acceleration of the maturity
of any such indebtedness for borrowed money in an aggregate principal amount in excess of ONE HUNDRED THOUSAND AND NO/100 DOLLARS
($100,000.00) owing by any Obligor to any third party under any agreement or understanding.

 

(e) Insolvency.
If any Obligor (i) makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors, or admits in writing
its inability to pay its debts as they become due (excluding for the avoidance of doubt any “going concern” language
included by any Borrower or its accountants in any instrument or document); (ii) generally is not paying its debts as such debts
become due; (iii) has a receiver, trustee or custodian appointed for, or take possession of, all or substantially all of its assets,
either in a proceeding brought by it or in a proceeding brought against it and such appointment is not discharged or such possession
is not terminated within sixty (60) days after the effective date thereof or it consents to or acquiesces in such appointment
or possession; (iv) files a petition for relief under the United States Bankruptcy Code or any other present or future federal
or state insolvency, Bankruptcy or similar laws (all of the foregoing hereinafter collectively called “Applicable Bankruptcy
Law”) or an involuntary petition for relief is filed against it under any Applicable Bankruptcy Law and such involuntary
petition is not dismissed within sixty (60) days after the filing thereof, or an order for relief naming it is entered under any
Applicable Bankruptcy Law, or any composition, rearrangement, extension, reorganization or other relief of debtors now or hereafter
existing is requested or consented to by it; or (v) fails to have discharged within a period of sixty (60) days any attachment,
sequestration or similar writ levied upon any property of it.

 

    - 19 -

     

    

 

(f) Judgment. The entry of any judgment
against any one or more Obligors or the issuance or entry of any attachments or other liens against any of the Property of such
Obligor(s) or its Subsidiaries for an amount in excess of ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) (individually or
in the aggregate) if uninsured, undischarged, unbonded or undismissed on the date on which such judgment could be executed upon.

 

(g) Action of Lien Holder. The holder
of any lien or security interest on any of the assets of any Obligor (securing Debt in excess of $100,000.00), including without
limitation, the Collateral, institutes foreclosure or other proceedings for the enforcement of its remedies thereunder.

 

(h) Loan Documents. The Loan Documents
shall at any time after their execution and delivery and for any reason cease (i) to create a valid and perfected first priority
security interest (subject to Permitted Encumbrances) in and to the Collateral purported to be subject to the Loan Documents; or
(ii) to be in full force and effect or shall be declared null and void, or the validity of enforceability hereof shall be contested
in writing by any Obligor, or any Obligor shall deny in writing that it has any further liability or obligation under this Agreement
or the other Loan Documents.

 

Nothing contained in
this Agreement shall be construed to limit the events of default enumerated in any of the other Loan Documents and all such events
of default shall be cumulative.

 

12. Remedies and Related Rights. If
an Event of Default shall have occurred and be continuing, and without limiting any other rights and remedies provided herein,
under any of the Loan Documents or otherwise available to Lender, Lender may exercise one or more of the rights and remedies provided
in this Section.

 

(a) Remedies.
Upon the occurrence and during the continuance of any one or more of the foregoing Events of Default, (i) the entire unpaid balance
of principal of the Note, together with all accrued but unpaid interest thereon, and all other Indebtedness owing to Lender by
any Borrower at such time shall, at the option of Lender, become immediately due and payable without further notice, demand, presentation,
notice of dishonor, notice of intent to accelerate, notice of acceleration, protest or notice of protest of any kind, all of which
are expressly waived by each Borrower. All rights and remedies of Lender set forth in this Agreement and in any of the other Loan
Documents may also be exercised by Lender, at its option to be exercised in its sole discretion, upon the occurrence and during
the continuance of an Event of Default, and not in substitution or diminution of any rights now or hereafter held by Lender under
the terms of any other agreement.

 

(b) Application of
Cash Collateral. If any Event of Default shall have occurred and be continuing, Lender may at its discretion apply or use
any cash held by Lender as Collateral as follows (in such order and manner as Lender may elect):

 

(i) to the repayment or reimbursement of the
reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by Lender
in connection with (1) the administration of the Loan Documents, (2) the custody, preservation, use or operation of, or the sale
of, collection from, or other realization upon, the Collateral, and (3) the exercise or enforcement of any of the rights and remedies
of Lender hereunder;

 

    - 20 -

     

    

 

(ii) to the payment or other satisfaction
of any Permitted Encumbrances;

 

(iii) to the satisfaction of the Indebtedness;

 

(iv) to the payment of any other amounts required
by applicable law; and

 

(v) by delivery to any
applicable Borrower or any other party lawfully entitled to receive such cash whether by direction of a court of competent jurisdiction
or otherwise.

 

(c) No Waiver; Cumulative
Remedies. No failure on the part of Lender to exercise and no delay in exercising, and no course of dealing with respect to,
any right, power, or privilege under this Agreement or any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power, or privilege under this Agreement or any other Loan Document preclude any other
or further exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies provided for in this
Agreement and the other Loan Documents are cumulative and not exclusive of any rights and remedies provided by law.

 

(d) Equitable
Relief. Each Borrower recognizes that in the event any Borrower fails to pay, perform, observe, or discharge any or all
of the Indebtedness, any remedy at law may prove to be inadequate relief to Lender. Each Borrower therefore agrees that
Lender, if Lender so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the
necessity of proving actual damages.

 

13. Indemnity.
Each Borrower hereby jointly and severally indemnifies and agrees to hold harmless Lender, and its officers, directors,
employees, agents and representatives (each an “Indemnified Person”) from and against any and all
liabilities, obligations, claims, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of
any kind or nature (collectively, the “Claims”) which are imposed on, incurred by, or asserted against,
any Indemnified Person arising in connection with the Loan Documents, the Indebtedness or the Collateral (including without
limitation, the enforcement of the Loan Documents and the defense of any Indemnified Person’s actions and/or inactions
in connection with the Loan Documents, except to the limited extent the Claims against an Indemnified Person are caused by
any Indemnified Person’s gross negligence or willful misconduct). WITHOUT LIMITATION, THE FOREGOING INDEMNITIES
SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO ANY CLAIMS WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE
NEGLIGENCE OF SUCH AND/OR ANY OTHER INDEMNIFIED PERSON. The indemnification provided for in this Section shall survive
the termination of this Agreement and shall extend and continue to benefit each individual or entity that is or has at any
time been an Indemnified Person hereunder.

 

14. Limitation of
Liability and Releases. As a material inducement to Lender to enter into this Agreement and to make Loans to Borrowers in
accordance with and subject to the terms and conditions of the Loan Documents, all of which are to the direct advantage and benefit
of each Obligor, and all of their respective heirs, successors and assigns:

 

(a) Release.
Each Obligor does hereby remise, release, acquit, satisfy and forever discharge Lender, and all of the past, present and future
officers, directors, employees, agents, attorneys, representatives, participants, heirs, successors and assigns of Lender and
any subsidiaries and affiliates of Lender (each a “Lender Party”) from any and all manner of debts, accountings,
bonds, warranties, representations, covenants, promises, contracts, controversies, arguments, liabilities, obligations, expenses,
damages, judgments, executions, actions, claims, demands and causes of action of any nature whatsoever, whether at law or in equity,
either now accrued or now existing and hereafter maturing or whether known or unknown, which such Obligor now has or hereafter
can, shall or may have by reason of any manner, cause or things, in each case existing or arising from April 30, 2018 and to and
including the date on which all Indebtedness of Borrower under the Loan Documents is paid in full relating to matters arising
out of or in connection with (i) any and all obligations owed or owing by such Obligor to Lender under the Loan Documents or (ii)
the Indebtedness evidenced and secured thereby (collectively, “Obligor Claims”), provided that this Section
14(a) shall not apply to any Excluded Obligor Claims (defined below).

 

    - 21 -

     

    

 

(b) Covenant Not To
Sue. Each Obligor does hereby covenant and agree never to institute or cause to be instituted or to continue prosecution of
any suit or other form of action or proceeding of any kind or nature whatsoever against any Lender Party, by reason of or in connection
with any Obligor Claims (other than Excluded Obligor Claims). In addition to the foregoing, each Obligor hereby waives, releases,
and agrees not to sue any Lender Party for punitive damages in respect of any claim (other than Excluded Obligor Claims) in connection
with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions
contemplated by this Agreement or any of the other Loan Documents.

 

(c) Excluded Obligor
Claims. As used herein, the term “Excluded Obligor Claims” shall mean any Obligor Claim of any Obligor
or any other Person against any Lender Party whether now existing or hereafter arising out of or in connection with this Agreement
or any of the other Loan Documents or any Indebtedness thereunder that arise, out of, as a result of or in connection with any
(i) willful or intentional misconduct, bad faith or gross negligence by, of or on the part of any Lender Party, or (ii) fraud
or misrepresentation by, of or on the part of any Lender Party.

 

15. No Duty.
All attorneys, accountants, appraisers, and other professional Persons and consultants retained by Lender shall have the right
to act exclusively in the interest of Lender and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty
or obligation of any type or nature whatsoever to any Obligor or any of any Obligor’s equity holders or any other Person.

 

16. Lender Not
Fiduciary. The relationship between Obligors and Lender is solely that of debtor and creditor, and Lender has no
fiduciary or other special relationship with any Obligor, and no term or condition of any of the Loan Documents shall be
construed so as to deem the relationship between any Obligor and Lender to be other than that of debtor and creditor.

 

17. Waiver
and Agreement. Neither the failure nor any delay on the part of Lender to exercise any right, power or privilege herein
or under any of the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of such
right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. No waiver of any provision in this Agreement or in any of the other Loan Documents and no departure by any Obligor
therefrom shall be effective unless the same shall be in writing and signed by Lender, and then shall be effective only in
the specific instance and for the purpose for which given and to the extent specified in such writing. No modification or
amendment to this Agreement or to any of the other Loan Documents shall be valid or effective unless the same is signed by
the party against whom it is sought to be enforced.

 

18. Benefits.
This Agreement shall be binding upon and inure to the benefit of Lender and Obligors, and their respective successors and assigns,
provided, however, that no Obligor may, without the prior written consent of Lender, assign any rights, powers,
duties or obligations under this Agreement or any of the other Loan Documents.

 

    - 22 -

     

    

 

19. Notices.
All notices, requests, demands or other communications required or permitted to be given pursuant to this Agreement shall be in
writing and given by (a) personal delivery, (b) expedited delivery service with proof of delivery, or (c) United States mail,
postage prepaid, registered or certified mail, return receipt requested, sent to the intended addressee at the address set forth
on the signature page hereof and shall be deemed to have been received either, in the case of personal delivery, as of the time
of personal delivery, in the case of expedited delivery service, as of the time of the expedited delivery and in the manner provided
herein, or in the case of mail, upon the third day after deposit in a depository receptacle under the care and custody of the
United States Postal Service. Any party shall have the right to change its address for notice hereunder to any other location
within the continental United States by notice to the other party of such new address.

 

20. Construction;
Venue; Service of Process. This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana
(without giving effect to its choice of laws provisions), and shall be performable by the parties hereto in the parish in Louisiana
where Lender’s address set forth on the signature page hereof is located (the “Venue Site”). Any action
or proceeding against any Obligor under or in connection with any of the Loan Documents may be brought in any state or federal
court within the Venue Site. Each Obligor hereby irrevocably (a) submits to the nonexclusive jurisdiction of such courts, and
(b) waives any objection it may now or hereafter have as to the venue of any such action or proceeding brought in any such court
or that any such court is an inconvenient forum. Each Obligor agrees that service of process upon it may be made by certified
or registered mail, return receipt requested, at its address specified or determined in accordance with the provisions this Agreement.
Nothing in any of the other Loan Documents shall affect the right of Lender to serve process in any other manner permitted by
law or shall limit the right of Lender to bring any action or proceeding against any Obligor or with respect to any of its property
in courts in other jurisdictions. Any action or proceeding by any Obligor against Lender shall be brought only in a court located
in the Venue Site.

 

21. Invalid Provisions.  If
any provision of the Loan Documents are held to be illegal, invalid or unenforceable under present or future laws, such provision
shall be fully severable and the remaining provisions of the Loan Documents shall remain in full force and effect and shall not
be affected by the illegal, invalid or unenforceable provision or by its severance.

 

22. Expenses.
Borrowers, jointly and severally, shall pay all reasonable and documented out- of-pocket costs and expenses (including, without
limitation, reasonable and documented attorneys’ fees) in connection with (a) any action (including, without limitation,
any inspections) required in the course of the administration of the indebtedness and obligations evidenced by the Loan Documents,
and (b) any action in the enforcement of Lender’s rights upon the occurrence and during the continuance of an Event of Default.

 

23. Participation
of the Loans. Each Borrower agrees that Lender may, at its option, sell participation interests in the Loans and its rights
under this Agreement to a financial institution or institutions and, in connection with each such sale, Lender may disclose any
financial and other information available to Lender concerning any Borrower to each prospective purchaser subject to obtaining
a confidentiality agreement with each prospective purchaser prior to disclosing such Borrower’s confidential information.

 

24. Conflicts.
Except as otherwise expressly provided in the Note, in the event any term or provision of this Agreement is inconsistent with
or conflicts with any provision of the other Loan Documents, the terms and provisions contained in this Agreement shall be controlling.

 

    - 23 -

     

    

 

25. Counterparts.  The
Loan Documents may be separately executed in any number of counterparts, each of which shall be an original, but all of which,
taken together, shall be deemed to constitute one and the same instrument.

 

26. Survival.
All representations and warranties made in the Loan Documents or in any document, statement, or certificate furnished in connection
with this Agreement shall survive the execution and delivery of the Loan Documents, and no investigation by Lender or any closing
shall affect the representations and warranties or the right of Lender to rely upon them.

 

27. Waiver of Right
to Trial by Jury. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT,
PROCEEDING, OR COUNTERCLAIM THAT RELATES TO OR ARISES OUT OF THE LOAN DOCUMENTS OR THE ACTS OR FAILURE TO ACT OF OR BY LENDER
IN THE ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF THE LOAN DOCUMENTS.

 

28. Patriot Act
Notice. Lender hereby notifies each Obligor that pursuant to the requirements of Section 326 of the USA Patriot Act of 2001,
31 U.S.C. § 5318 (the “Act”), that Lender is required to obtain, verify and record information that identifies
such Obligor, which information includes the name and address of such Obligor and other information that will allow such Lender
to identify such Obligor in accordance with the Act.

 

29. Amendment and
Restatement. Each Borrower hereby acknowledges and agrees that this Agreement amends and restates the Original Loan Agreement
and amounts outstanding under the Original Loan Agreement shall not be deemed cancelled or satisfied, but shall be evidenced by
this Agreement instead of by the Original Loan Agreement.

 

30. Revival and
Reinstatement of Indebtedness. If the incurrence or payment of the Indebtedness by any Borrower or the transfer to the Lender
of any property should for any reason subsequently be declared to be void or voidable under any state or federal law relating
to creditors’ rights, including provisions of Title 11 of the United States Code relating to fraudulent conveyances, preferences,
or other voidable or recoverable payments of money or transfers of property (collectively, a “Voidable Transfer”),
and if the Lender is required to repay or restore, in whole or in party, any such Voidable Transfer, or elects to do so upon the
advice of counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender is required or elects to repay
or restore, and as to the all reasonable costs, expenses, and attorneys’ fees of the Lender related thereto, the liability
of the Borrowers automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had
never been made.

 

31. Inconsistent
Provisions. If any provision of this Agreement or any of the Loan Documents conflicts with or is inconsistent with any other
provision in any of the Loan Documents, the provision most advantageous to Lender shall prevail.

 

32. Notice of Final
Agreement. It is the intention of each Obligor and Lender that the following NOTICE OF FINAL AGREEMENT be incorporated by
reference into each of the Loan Documents (as the same may be amended, modified or restated from time to time). Each Obligor and
Lender warrant and represent that the entire agreement made and existing by or among each Obligor and Lender with respect to the
Loans is and shall be contained within the Loan Documents, and that no agreements or promises exist or shall exist by or among,
any Obligor and Lender that are not reflected in the Loan Documents.

 

    - 24 -

     

    

 

NOTICE OF FINAL
AGREEMENT

 

THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[Remainder of Page
Left Intentionally Blank]

 

    - 25 -

     

    

 

AGREED as of
the date first written above.

 

	LENDER:	 	ADDRESS:
	 	 	 
	THERMO COMMUNICATIONS FUNDING LLC	 	639 Loyola Avenue
	 	 	 	Suite 2565
	By:	/s/ Seth Block	 	New Orleans, LA 70113
	Name:	Seth Block	 	 
	Title:	Executive Vice President	 	 

 

	DEBTOR:	 	ADDRESS:
	 	 	 
	SHIFT8 NETWORKS, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	DEBTOR:	 	ADDRESS:
	 	 	 
	T3 COMMUNICATIONS, INC.	 	2401 First Street, Suite 300
	 	 	Fort Myers, FL 33901
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name:	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	GUARANTOR:	 	ADDRESS:
	 	 	 
	DIGERATI TECHNOLOGIES, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 

 

    - 26 -

     

    

 

	GUARANTOR:	 	ADDRESS:
	 	 	 
	T3 ACQUISITION, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name: 	Arthur L. Smith 	 	 
	Title: 	President/CEO	 	 
	 	 	 
	GUARANTOR:	 	ADDRESS:
	 	 	 
	SHIFT8 TECHNOLOGIES, INC.	 	1600 NE Loop 410, Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name: 	Arthur L. Smith	 	 
	Title: 	President/CEO	 	 
	 	 	 
	GUARANTOR:	 	ADDRESS:
	 	 	 
	ARTHUR L. SMITH	 	1600 NE Loop 410 Suite 126
	 	 	San Antonio, TX 78209
	 	 	 
	By:	/s/ Arthur L. Smith 	 	 
	Name: 	Arthur L. Smith	 	 

 

 

- 27 -

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