Service Team Inc (SVTE)

[Rialta333]

Promissory Notes Payable – Third Party

On Deck Capital

On August 23, 2016, the Company issued a promissory note to On Deck Capital for $243,750 of cash consideration. The note bears interest at 33%, matures on
May 20, 2017. The Company recorded a debt discount equal to $82,500 due to the unpaid interest which was added to the principal balance to be repaid during the
9 month note. The Company also recorded a $6,250 debt discount due to origination fees due at the beginning of the note. During the year ended August 31, 2016,
the company amortized $2,637 of the debt discounts into interest expense leaving a remaining total debt discount on the note of $86,363 as of August 31, 2016.