Document:

Exhibit 10.1

 

*145820163717109202018*

 

PROMISSORY
NOTE

 

	Principal

        $2,000,000.00
	Loan
Date

        08-02-2018
	Maturity

        08-02-2019
	Loan
No

        80000022270
	Call / Coll

                                                                                             803
	Account
	Officer

***	Initials
	References
    in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
    or item. 

    Any item above containing “***” has been omitted due to text length limitations.

 

	Borrower:	Drone Aviation Holding Corp.	 	Lender:	CITY NATIONAL BANK OF FLORIDA
	 	11651 Central Parkway, #118	 	 	25 W Flagler Street
	 	Jacksonville, FL 32224	 	 	Miami, FL 33130

 

 

 

	Principal Amount: $2,000,000.00	Date of Note: August 2, 2018

 

PROMISE
TO PAY. Drone Aviation Holding Corp. (“Borrower”) promises to pay to CITY NATIONAL BANK OF FLORIDA (“Lender”),
or order, in lawful money of the United States of America, the principal amount of Two Million & 00/100 Dollars ($2,000,000.00)
or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each advance.

 

PAYMENT.
Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on August 2, 2019. In
addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning September
2, 2018, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or
required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late
charges; and then to any unpaid collection costs. Borrower will pay Lender at Lender’s address shown above or at such other
place as Lender may designate in writing.

 

VARIABLE
INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index
which is the Wall Street Journal Prime Rate (the “Index”). The Index is not necessarily the lowest rate charged by
Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after
notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change will
not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. Interest on
the unpaid principal balance of this Note will be calculated as described in the “INTEREST CALCULATION METHOD” paragraph
using a rate of 1.000 percentage point over the Index. NOTICE: Under no circumstances will the effective rate of interest on this
Note be more than the maximum rate allowed by applicable law.

 

INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this Note is computed using this method. This calculation method results in
a higher effective interest rate than the numeric interest rate stated in this Note.

 

PREPAYMENT.
Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will
not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law.
Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments
will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments
of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments
marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender
may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further
amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions
or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: CITY NATIONAL BANK OF FLORIDA, 25
W Flagler Street Miami, FL 33130.

 

LATE
CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled
payment.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under
applicable law, increase the variable interest rate on this Note to the extent that the increase does not cause the interest rate
to exceed the maximum rate permitted by applicable law.

 

DEFAULT.
Each of the following shall constitute an event of default (“Event of Default”) under this Note:

 

Payment Default.
Borrower fails to make any payment when due under this Note.

 

     

     

    

 

PROMISSORY
NOTE

	Loan No: 80000022270	(Continued)	Page 2

 

 

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s
property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the
related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf,
or made by Guarantor, or any other guarantor, endorser, surety, or accommodation party, under this Note or the related documents
in connection with the obtaining of the loan evidenced by this Note or any security document directly or indirectly securing repayment
of this Note is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading
at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment
of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral
securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender.
However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender
written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for
the dispute.

 

Execution;
Attachment. Any execution or attachment is levied against the Collateral, and such execution or attachment is not set aside,
discharged or stayed within thirty (30) days after the same is levied.

 

Change
in Zoning or Public Restriction. Any change in any zoning ordinance or regulation or any other public restriction is enacted,
adopted or implemented, that limits or defines the uses which may be made of the Collateral such that the present or intended
use of the Collateral, as specified in the related documents, would be in violation of such zoning ordinance or regulation or
public restriction, as changed.

 

Default
Under Other Lien Documents. A default occurs under any other mortgage, deed of trust or security agreement covering all or
any portion of the Collateral.

 

Judgment.
Unless adequately covered by insurance in the opinion of Lender, the entry of a final judgment for the payment of money involving
more than ten thousand dollars ($10,000.00) against Borrower and the failure by Borrower to discharge the same, or cause it to
be discharged, or bonded off to Lender’s satisfaction, within thirty (30) days from the date of the order, decree or process
under which or pursuant to which such judgment was entered.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor, or any other guarantor, endorser, surety,
or accommodation party of any of the indebtedness or any Guarantor, or any other guarantor, endorser, surety, or accommodation
party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment
or performance of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

Cure
Provisions. If any default, other than a default in payment, is curable and if Borrower has not been given a notice of a breach
of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written
notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires
more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient
to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance
as soon as reasonably practical.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will
pay Lender the amount of these costs and expenses, which includes, subject to any limits under applicable law, Lender’s
reasonable attorneys’ fees and Lender’s legal expenses whether or not there is a lawsuit, including reasonable attorneys’
fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and
appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by
law.

     

     

    

 

PROMISSORY
NOTE

	Loan No: 80000022270	(Continued)	Page 3

 

 

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Borrower against the other.

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Florida without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State
of Florida.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with
Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else
and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the indebtedness against any and all such accounts.

 

COLLATERAL.
Borrower acknowledges this Note is secured by a first security interest in all of the accounts, inventory and equipment of
Drone Aviation Holding Corp., whether now owned or existing or hereafter acquired or arising, wheresoever located, together with
any and all proceeds and/or products thereof and Demand Deposit Account #1955078786 in the name of Borrower and held with Lender
with an approximate balance of $120,000.00.

 

LINE
OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested only in writing by Borrower
or by an authorized person. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed
to Lender’s office shown above. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions
of an authorized person or (B) credited to any of Borrower’s accounts with Lender. The unpaid principal balance owing on
this Note at any time may be evidenced by endorsements on this Note or by Lender’s internal records, including daily computer
print-outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under
the terms of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection
with the signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims
or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender;
(D) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender
in good faith believes itself insecure.

 

FINANCIAL
STATEMENTS. Borrower agrees to provide Lender with such financial statements and other related information at such frequencies
and in such detail as Lender may reasonably request.

 

BORROWER’S
OWNERSHIP COVENANT. Borrower shall not sell or convey more than twenty-five percent (25%) of its stock or any of its assets,
except for assets sold in the normal and ordinary course of business, including any merger, consolidation, or reorganization,
and there shall be no change in the ownership or management of Borrower, with the exception of estate planning purposes, unless
consented to in writing by Lender, which may be given or withheld in the sole and absolute discretion of the Lender.

 

ANNUAL
REVIEWS BY LENDER. This loan is subject to annual reviews by Lender.

 

DEPOSITORY
RELATIONSHIP. In consideration for Lender’s agreement to make the Loan, and other terms agreed to by Lender, the
Borrower and Guarantor shall maintain its primary operating account(s) with Lender, at all times during the term of the Loan.
Such depository account(s) with Lender shall maintain a minimum average ledger balance of $1,600,000.00 for each calendar
year during the term of the Loan. The minimum average ledger balances shall be tested annually based on the average of the
Borrower’s and Guarantor’s monthly bank statements for all such depository account(s) for that year.
Notwithstanding the foregoing, Borrowers and Guarantor may maintain other depository accounts with other banking institutions
with written approval from Lender (that shall not be unreasonably withheld, conditioned or delayed) where reasonably required
to meet Borrower’s and Guarantor’s petty cash needs in geographic areas where Lender does not maintain branch
offices. Should Borrower and Guarantor fail to comply with the minimum depository covenant for any quarterly period, Borrower
and Guarantor shall be charged a fee equal to two percent (2%) per annum of the deficiency in the minimum average ledger
balance. This fee shall be charged automatically, without any notice to Borrower and Guarantor. This fee shall not be deemed
to be or constitute additional interest under the Loan, as it relates specifically and directly to the required deposit
balances. Lender may (i) exercise its offset rights to collect the fee, or (ii) send a written demand that the fee be paid
within 10 days of written notice thereof. Failure to pay the required fee shall constitute an Event of Default
hereunder.

 

LIQUIDITY
MAINTENANCE. Borrower and Guarantor, together, so long as the indebtedness hereby guaranteed is outstanding and unpaid, shall
together maintain unencumbered liquidity of no less than $6,000,000.00 by maintaining in their names only, in the form of unrestricted
unencumbered cash accounts, maintained by a recognized financial institution or licensed brokerage firm, approved by Lender; repurchase
agreements, certificates of deposit or marketable securities acceptable to Lender. Borrower and Guarantor shall furnish Lender
proof of said liquidity annually, commencing on July 31, 2018, which proof shall be in the form of bank statements, account statements
or such other proof acceptable to Lender. The failure of Borrower and Guarantor to maintain the said liquidity or provide proof
thereof, in the time and manner set forth herein, shall automatically constitute a default, and Lender shall be entitled to exercise
any remedy available to it as, and for a default hereunder, including the right of acceleration.

 

     

     

    

 

PROMISSORY
NOTE

	Loan No: 80000022270	(Continued)	Page 4

 

 

 

BORROWER’S
FINANCIAL STATEMENTS. BORROWER AGREES TO FURNISH LENDER WITH THE FOLLOWING:.

 

Tax
Returns. As soon as available, but in no event later than sixty (60) days after the applicable filing date for the tax reporting
period ended, Borrower’s originally signed copies of Federal and other governmental tax returns, including K-1 schedules,
prepared by certified public accountant satisfactory to Lender, commencing November 30, 2018. If an extension is filed, a copy
of the extension must be provided to Lender.

 

All
financial reports required to be provided under this Note shall be prepared in accordance with GAAP, applied on a consistent basis,
and certified by Borrower as being true and correct.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives,
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

GENERAL
PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Borrower does not
agree or intend to pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively
referred to herein as “charge or collect”), any amount in the nature of interest or in the nature of a fee for this
loan, which would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for
this loan than the maximum Lender would be permitted to charge or collect by federal law or the law of the State of Florida (as
applicable). Any such excess interest or unauthorized fee shall, instead of anything stated to the contrary, be applied first
to reduce the principal balance of this loan, and when the principal has been paid in full, be refunded to Borrower. Lender may
delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether
as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may
renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the
consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint
and several.

 

PRIOR
TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.
BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

BORROWER:

 

DRONE
AVIATION HOLDING CORP.

 

	By:	 	 	By:	 
	 	Daniyel
    Erdberg, 

    President of Drone Aviation Holding Corp.	 	 	Jay Nussbaum,
    

    Chief Executive Officer of Drone Aviation Holding
    Corp.

 

 

LaserPro,
Ver. 17.4.21.005 Copr. D+H USA Corporation 1997, 2018.   AS Rights Reserved. - FL L:\CFIWIN\CFI\L\D20.FC    TR-16694
   PR-35

 

     

     

    

 

*181620163717109202018*

 

COMMERCIAL
GUARANTY

 

 

 

	Borrower:	Drone Aviation Holding Corp.	 	Lender:	CITY NATIONAL BANK OF FLORIDA
	 	11651 Central Parkway, #118	 	 	25 W Flagler Street
	 	Jacksonville, FL 32224	 	 	Miami, FL 33130
	 	 	 	 	 
	Guarantor:	Jay H. Nussbaum	 	 	 
	 	9324 Georgetown Pike 

Great Falls, VA 22066	 	 	 

 

 

 

CONTINUING
GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantor absolutely and unconditionally guarantees
full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all
Borrower’s obligations under the Note and the Related Documents. This is a guaranty of payment and performance and not of
collection, so Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender’s remedies against
anyone else obligated to pay the Indebtedness or against any collateral securing the Indebtedness, this Guaranty or any other
guaranty of the Indebtedness. Guarantor will make any payments to Lender or its order, on demand, in legal tender of the United
States of America, in same-day funds, without set-off or deduction or counterclaim, and will otherwise perform Borrower’s
obligations under the Note and Related Documents. Under this Guaranty, Guarantor’s liability is unlimited and Guarantor’s
obligations are continuing.

 

INDEBTEDNESS.
The word “Indebtedness” as used in this Guaranty means all of the principal amount outstanding from time to time
and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted
by law, reasonable attorneys’ fees, arising from any and all debts, liabilities and obligations of every nature or form,
now existing or hereafter arising or acquired, that Borrower individually or collectively or interchangeably with others, owes
or will owe Lender. “Indebtedness” includes, without limitation, loans, advances, debts, overdraft indebtedness, credit
card indebtedness, lease obligations, liabilities and obligations under any interest rate protection agreements or foreign currency
exchange agreements or commodity price protection agreements, other obligations, and liabilities of Borrower, and any present
or future judgments against Borrower, future advances, loans or transactions that renew, extend, modify, refinance, consolidate
or substitute these debts, liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by
their terms or acceleration; absolute or contingent; liquidated or unliquidated; determined or undetermined; direct or indirect;
primary or secondary in nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several;
evidenced by a negotiable or non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable
against Borrower for any reason whatsoever; for any transactions that may be voidable for any reason (such as infancy, insanity,
ultra vires or otherwise); and originated then reduced or extinguished and then afterwards increased or reinstated.

 

If
Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, Lender’s rights
under all guaranties shall be cumulative. This Guaranty shall not (unless specifically provided below to the contrary) affect
or invalidate any such other guaranties. Guarantor’s liability will be Guarantor’s aggregate liability under the terms
of this Guaranty and any such other unterminated guaranties.

 

CONTINUING
GUARANTY. THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT,
PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN
AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR’S OBLIGATIONS
AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS
MAY BE A ZERO BALANCE FROM TIME TO TIME.

 

DURATION
OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or
any notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before
receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor’s
other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor
may only do so in writing. Guarantor’s written notice of revocation must be mailed to Lender, by certified mail, at Lender’s
address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only
to new Indebtedness created after actual receipt by Lender of Guarantor’s written revocation. For this purpose and without
limitation, the term “new Indebtedness” does not include the Indebtedness which at the time of notice of revocation
is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this
purpose and without limitation, “new Indebtedness” does not include all or part of the Indebtedness that is: incurred
by Borrower prior to revocation; incurred under a commitment that became binding before revocation; any renewals, extensions,
substitutions, and modifications of the Indebtedness. This Guaranty shall bind Guarantor’s estate as to the Indebtedness
created both before and after Guarantor’s death or incapacity, regardless of Lender’s actual notice of Guarantor’s
death. Subject to the foregoing, Guarantor’s executor or administrator or other legal representative may terminate this
Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor
or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation
Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty.
It is anticipated that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty, and Guarantor
specifically acknowledges and agrees that reductions in the amount of the Indebtedness, even to zero dollars ($0.00), shall not
constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor’s heirs, successors and
assigns so long as any of the Indebtedness remains unpaid and even though the Indebtedness may from time to time be zero dollars
($0.00).

     

     

    

 

COMMERCIAL
GUARANTY

	Loan No: 80000022270	(Continued)	Page 2

 

 

 

GUARANTOR’S
AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand
and without lessening Guarantor’s liability under this Guaranty, from time to time: (A) prior to revocation as set forth
above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or
otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one
or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and
decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan
term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate,
fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release,
substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors on any
terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made
on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof, including without limitation,
any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion
may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign
or transfer this Guaranty in whole or in part.

 

GUARANTOR’S
REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any
kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is executed
at Borrower’s request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into
this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument
binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor;
(E) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer,
or otherwise dispose of all or substantially all of Guarantor’s assets, or any interest therein; (F) upon Lender’s
request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial
information which currently has been, and all future financial information which will be provided to Lender is and will be true
and correct in all material respects and fairly present Guarantor’s financial condition as of the dates the financial information
is provided; (G) no material adverse change has occurred in Guarantor’s financial condition since the date of the most recent
financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor’s financial
condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes)
against Guarantor is pending or threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower;
and (J) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower’s
financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which
might in any way affect Guarantor’s risks under this Guaranty, and Guarantor further agrees that, absent a request for information,
Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its
relationship with Borrower.

 

GUARANTOR’S
WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money
or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of
any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the
part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the
creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person,
including Borrower or any other guarantor; (D) to proceed directly against or exhaust any collateral held by Lender from Borrower,
any other guarantor, or any other person; (E) to pursue any other remedy within Lender’s power; or (F) to commit any act
or omission of any kind, or at any time, with respect to any matter whatsoever.

 

Guarantor
also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any
rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law or any other law
which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender’s
commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of
remedies by Lender which destroys or otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights
to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason
of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other
guarantor, or of any other person, or by reason of the cessation of Borrower’s liability from any cause whatsoever, other
than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of
unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit
brought by Lender against Guarantor is commenced, there is outstanding Indebtedness which is not barred by any applicable statute
of limitations; or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness.
If payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender
is forced to remit the amount of that payment to Borrower’s trustee in bankruptcy or to any similar person under any federal
or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement
of this Guaranty.

 

Guarantor
further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any
claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted
by the Borrower, the Guarantor, or both.

 

GUARANTOR’S
UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with
Guarantor’s full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable
and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,
such waiver shall be effective only to the extent permitted by law or public policy.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor’s accounts
with Lender (whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone
else and all accounts Guarantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law. Guarantor authorizes Lender, to the extent permitted by applicable law,
to hold these funds if there is a default, and Lender may apply the funds in these accounts to pay what Guarantor owes under the
terms of this Guaranty.

     

     

    

 

COMMERCIAL
GUARANTY

	Loan No: 80000022270	(Continued)	Page 3

 

 

 

SUBORDINATION
OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter created,
shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes
insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever,
to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of
the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise,
the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall
be first applied by Lender to the Indebtedness. Guarantor does hereby assign to Lender all claims which it may have or acquire
against Borrower or against any assignee or trustee in bankruptcy of Borrower; provided however, that such assignment shall be
effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests,
any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with
a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized,
in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents
and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this
Guaranty.

 

MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:

 

Amendments.
This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing
and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’
Fees; Expenses. Guarantor agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable
attorneys’ fees and Lender’s legal expenses, incurred in connection with the enforcement of this Guaranty. Lender
may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement.
Costs and expenses include Lender’s reasonable attorneys’ fees and legal expenses whether or not there is a lawsuit,
including reasonable attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all
court costs and such additional fees as may be directed by the court.

 

Caption
Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define
the provisions of this Guaranty.

 

Governing
Law. This Guaranty will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Florida without regard to its conflicts of law provisions.

 

Integration.
Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity
to be advised by Guarantor’s attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions
and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless
from all losses, claims, damages, and costs (including Lender’s attorneys’ fees) suffered or incurred by Lender as
a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph.

 

Interpretation.
In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words “Borrower” and “Guarantor”
respectively shall mean all and any one or more of them. The words “Guarantor,” “Borrower,” and “Lender”
include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty
is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or
enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may
be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability
companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers,
directors, partners, managers, or other agents acting or purporting to act on their behalf, and any indebtedness made or created
in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty.

 

Notices.
Any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor,
shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited
with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class,
certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation
notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty
entitled “DURATION OF GUARANTY.” Any party may change its address for notices under this Guaranty by giving written
notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Guarantor agrees to keep Lender informed at all times of Guarantor’s current address. Unless otherwise provided or required
by law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to
all Guarantors.

 

     

     

    

 

COMMERCIAL
GUARANTY

	Loan No: 80000022270	(Continued)	Page 4

 

 

 

No
Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in
writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of
such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior
waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender’s rights
or of any of Guarantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this
Guaranty, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances
where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Successors
and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor’s interest, this Guaranty shall
be binding upon and inure to the benefit of the parties, their successors and assigns.

 

Waive
Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Guarantor against the other.

 

Consent
to Jurisdiction. The undersigned hereby irrevocably submits to the nonexclusive jurisdiction of any United States Federal
or State Court sitting in Miami-Dade County, Florida, in any action or proceeding arising out of or relating to this instrument,
and the undersigned hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined
in any such United States Federal or State Court. Service of copies of the Summons and Complaint and any other process which may
be served in any such action or proceeding may be made by mailing or delivering a copy of such process to the undersigned at his
last known address.

 

Liquidity
Maintenance. Borrower and Guarantor, together, so long as the indebtedness hereby guaranteed is outstanding and unpaid, shall
together maintain unencumbered liquidity of no less than $6,000,000.00 by maintaining in their names only, in the form of unrestricted
unencumbered cash accounts, maintained by a recognized financial institution or licensed brokerage firm, approved by Lender; repurchase
agreements, certificates of deposit or marketable securities acceptable to Lender. Borrower and Guarantor shall furnish Lender
proof of said liquidity annually, commencing on July 31, 2018, which proof shall be in the form of bank statements, account statements
or such other proof acceptable to Lender. The failure of Borrower and Guarantor to maintain the said liquidity or provide proof
thereof, in the time and manner set forth herein, shall automatically constitute a default, and Lender shall be entitled to exercise
any remedy available to it as, and for a default hereunder, including the right of acceleration.

 

GUARANTOR’S
FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following:.

 

Annual
Statements. As soon as available, but in no event later than sixty (60) days after the end of each fiscal year, Guarantor’s
balance sheet and income statement for the year ended, prepared by Guarantor satisfactory to Lender commencing September 30, 2019.

 

Tax
Returns. As soon as available, but in no event later than sixty (60) days after the applicable filing date for the tax reporting
period ended, Guarantor’s originally signed copies of Federal and other governmental tax returns, including K-1 schedules,
prepared by certified public accountant satisfactory to Lender commencing November 30, 2018. If an extension is filed, a copy
of the extension must be provided to Lender.

 

Liquidity
Verification. Guarantor shall furnish Lender proof of liquidity annually, which proof shall be in the form of bank statements,
account statements or such other proof acceptable to Lender.

 

Depository
Relationship. In consideration for Lender’s agreement to make the Loan, and other terms agreed to by Lender, the Borrower
and Guarantor shall maintain its primary operating account(s) with Lender, at all times during the term of the Loan. Such depository
account(s) with Lender shall maintain a minimum average ledger balance of $1,600,000.00 for each calendar year during the term
of the Loan. The minimum average ledger balances shall be tested annually based on the average of the Borrower’s and Guarantor’s
monthly bank statements for all such depository account(s) for that year. Notwithstanding the foregoing, Borrowers and Guarantor
may maintain other depository accounts with other banking institutions with written approval from Lender (that shall not be unreasonably
withheld, conditioned or delayed) where reasonably required to meet Borrower’s and Guarantor’s petty cash needs in
geographic areas where Lender does not maintain branch offices. Should Borrower and Guarantor fail to comply with the minimum
depository covenant for any quarterly period, Borrower and Guarantor shall be charged a fee equal to two percent (2%) per annum
of the deficiency in the minimum average ledger balance. This fee shall be charged automatically, without any notice to Borrower
and Guarantor. This fee shall not be deemed to be or constitute additional interest under the Loan, as it relates specifically
and directly to the required deposit balances. Lender may (i) exercise its offset rights to collect the fee, or (ii) send a written
demand that the fee be paid within 10 days of written notice thereof. Failure to pay the required fee shall constitute an Event
of Default hereunder.

 

     

     

    

 

COMMERCIAL
GUARANTY

	Loan No: 80000022270	(Continued)	Page 5

 

 

 

DEFINITIONS.
The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words
and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.
Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial
Code:

 

Borrower.
The word “Borrower” means Drone Aviation Holding Corp. and includes all co-signers and co-makers signing the Note
and all their successors and assigns.

 

Guarantor.
The word “Guarantor” means everyone signing this Guaranty, including without limitation Jay H. Nussbaum,
and in each case, any signer’s successors and assigns.

 

Guaranty.
The word “Guaranty” means this guaranty from Guarantor to Lender.

 

Indebtedness.
The word “Indebtedness” means Borrower’s indebtedness to Lender as more particularly described in this Guaranty.
Lender. The word “Lender” means CITY NATIONAL BANK OF FLORIDA, its successors and assigns.

 

Note.
The word “Note” means and includes without limitation all of Borrower’s promissory notes and/or credit agreements
evidencing Borrower’s loan obligations in favor of Lender, together with all renewals of, extensions of, modifications of,
refinancings of, consolidations of and substitutions for promissory notes or credit agreements.

 

Related
Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.

 

EACH
UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH
GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR’S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER
AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY”.
NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED AUGUST 2, 2018.

 

GUARANTOR:

 

	X	 	 
	 	Jay
H. Nussbaum	 

 

 

INDIVIDUAL
ACKNOWLEDGMENT

 

	STATE OF_______________________________	 	)
	 	 	 
	 	 	) SS
	 	 	 
	COUNTY OF_______________________________	 	)

 

The
foregoing instrument was acknowledged before me this __________________ day of ______________________________,
20__________ by Jay H. Nussbaum, who is personally known to me or who has produced ______________________________ as
identification.

 

	 	 
	 	(Signature of Person Taking Acknowledgment)
	 	 
	 	 
	 	(Name of Acknowledger Typed, Printed or Stamped)
	 	 
	 	 
	 	(Title or Rank)
	 	 
	 	 
	 	(Serial Number, if any)

 

 

LaserPro,
Ver. 17.4.21.005 Copr. D+H USA Corporation 1997, 2018. All Rights Reserved. -FL L:\CFIWIN\CFI\LPL\E20.FC   TR-16694    PR-35

 

     

     

    

 

*182520163717109202018*

 

DISBURSEMENT
REQUEST AND AUTHORIZATION

 

	Principal

        $2,000,000.00
	Loan
Date

        08-02-2018
	Maturity

        08-02-2019
	Loan
No

        80000022270
	Call
/ Coll
                   803	Account
	Officer

                                                                                ***
	Initials
	References
    in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
    or item. 

    Any item above containing “***” has been omitted due to text length limitations.

 

	Borrower:	Drone Aviation Holding Corp.	 	Lender:	CITY NATIONAL BANK OF FLORIDA
	 	11651 Central Parkway, #118	 	 	25 W Flagler Street
	 	Jacksonville, FL 32224	 	 	Miami, FL 33130

 

 

 

LOAN
TYPE. This is a Variable Rate Nondisclosable Revolving Line of Credit Loan to a Corporation for $2,000,000.00 due on August
2, 2019. This is a secured renewal loan.

 

PRIMARY
PURPOSE OF LOAN. The primary purpose of this loan is for:

 

☐ Personal,
Family, or Household Purposes or Personal Investment.

 

☒
Business (Including Real Estate Investment).

 

SPECIFIC
PURPOSE. The specific purpose of this loan is: Short term working capital and cash flow purposes.

 

DISBURSEMENT
INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender’s conditions for making
the loan have been satisfied. Please disburse the loan proceeds of $2,000,000.00 as follows:

 

	Other Disbursements:	 	$	2,000,000.00	 
	$2,000,000.00 Amount being renewed	 	 	 	 
	 	 	 	 	 
	Note Principal:	 	$	2,000,000.00	 

 

CHARGES
PAID IN CASH. Borrower has paid or will pay in cash as agreed the following charges:

 

	Prepaid Finance Charges Paid in Cash:	 	$	23,123.95	 
	$10,000.00 Processing fee to Lender	 	 	 	 
	$750.00 Document Preparation fee	 	 	 	 
	$12,373.95 Interest Due	 	 	 	 
	 	 	 	 	 
	Total Charges Paid in Cash:	 	$	23,123.95	 

 

AUTOMATIC
PAYMENTS. Borrower hereby authorizes Lender automatically to deduct from Borrower’s Demand Deposit - Checking account,
numbered 1955078977, the amount of any loan payment. If the funds in the account are insufficient to cover any payment, Lender
shall not be obligated to advance funds to cover the payment. At any time and for any reason, Borrower or Lender may voluntarily
terminate Automatic Payments.

 

FINANCIAL
CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE
AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S
MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED AUGUST 2, 2018.

 

BORROWER:

 

DRONE
AVIATION HOLDING CORP.

 

	By:	 	 	By:	 
	 	Daniyel Erdberg, 

President of Drone Aviation Holding Corp.	 	 	Jay Nussbaum, 

Chief Executive Officer of Drone Aviation Holding Corp.

 

 

LaserPro,
Ver. 17.4.21.005 Copr. D+H USA Corporation 1997, 2018.    All Rights Reserved.    -FL L:\CFIWIN\CFI\LPL\I20.FC     TR-16694   PR-35Exhibit 10.2

 

AMENDMENT
TO SECURED CONVERTIBLE PROMISSORY NOTE

 

THIS
AMENDMENT TO SECURED CONVERTIBLE PROMISSORY NOTE SERIES 2017-18 (the “Amendment”) is made effective as of September
26, 2018 (the “Effective Date”) by and between Drone Aviation Holding Corp., a Nevada corporation (the “Company”)
and Frost Nevada Investments Trust (the “Holder”) (collectively the “Parties”).

 

BACKGROUND

 

A. The Company
and Holder are the parties to that certain Secured Convertible Promissory Note Series 2017-18, originally issued by the Company
to the Holder on August 2, 2017, in the original principal amount of $2,000,000.00 and maturity date of August 2, 2018 (the “Note”);
and

 

B. In
exchange for the Holder’s agreement to extend the Maturity Date of the Note and such other good and valuable consideration provided
for in this Amendment.

 

C. The
Parties desire to amend the Note, as set forth below.

 

NOW THEREFORE, in consideration
of the execution and delivery of the Amendment and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

 

	1.	Extension of Maturity Date. The Maturity Date of the Note shall be extended to August 2, 2019.

 

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

 

	DRONE AVIATION HOLDING CORP.	 	FROST NEVADA INVESTMENTS TRUST

	 	 	 	 	 
	BY	 	 	BY	 
	 	Kendall Carpenter	 	 	Philip Frost, M.D.

	 	Chief Financial Officer	 	 	Trustee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]