Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT
(as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) dated as of January
__, 2019, between DPW Holdings, Inc., a Delaware corporation (the “Company”), DPW Technology Group, Inc., a Delaware
corporation (“DPWT”), DPW Financial Group, Inc., a Delaware corporation (“DPWT”), Coolisys Technologies,
Inc. (“Coolisys”), Digital Power Limited (“DP Limited”), Enertec Systems 2001 Ltd (“Enertec”),
Power-Plus Technical Distributors, LLC (“Power”), Digital Power Lending, LLC (“DP Lending”), Digital Farms,
Inc. (“DF”), Microphase Corporation (“Micro”) and I. AM, Inc. (“IAM”, and together with DPWT,
DPWF, Coolisys, DP Limited, Enertec, Power, DP Lending, DF and Micro, each a “Subsidiary” and collectively the “Subsidiaries”)
(the Company and the Subsidiaries, and each other Person who becomes a party to this Agreement by execution of a joinder in the
form of Exhibit A attached hereto, which shall include all wholly-owned or majority-owned subsidiaries of the Company acquired
after the date hereof for so long as this Agreement remains in effect, are hereinafter sometimes referred to individually as a
“Debtor” and, collectively, as the “Debtors”) and ___________, a Delaware limited partnership (the “Secured
Party”).

 

WHEREAS, a dispute
has arisen between the Company and the Secured Party with respect to two loans made by the Secured Party to the Company as evidenced
by that certain Original Issue Discount Promissory Note issued by the Company for the benefit of the Secured Party on October 10,
2018 (the “October Note”) and that certain Secured Promissory Note issued by the Company for the benefit of the Secured
Party on August 16, 2018 as amended on November 29, 2018 (the “November Note”, and together with the October Note,
the “Old Notes”);

 

WHEREAS, on January
22, 2019 the Company and the Secured Party entered into an Exchange Agreement (the “Exchange Agreement) pursuant to which
the Company issued the Secured Party two (2) new secured promissory notes in exchange for the Old Notes (the “New Notes”);

 

WHEREAS, certain Collateral
of the Debtors is subject to a first priority Lien, presently existing (the “Prior Lien”) and held by a senior lender
(the “Senior Lender””);

 

WHEREAS, to induce
the Secured Party to enter into the Exchange Agreement and to exchange the Old Notes for the New Notes, each Debtor pledges and
grants a second priority security interest in all of its right, title and interest in and to the Collateral (as hereinafter defined),
subordinate only to the Prior Lien, as security for the Company’s Secured Obligations;

 

WHEREAS, each Debtor
acknowledges and agrees that such Debtor will derive substantial benefit and advantage from the financial accommodations to the
Company set forth in the Exchange Agreement, the New Notes, the Convertible Note (as defined in the Exchange Agreement), and the
other Transaction Documents, it will be to each such Debtor’s direct interest and economic benefit to assist the Company
in procuring said financial accommodations from the Secured Party, and each Debtor has received good and valuable consideration
in connection herewith.

 

    	 		 

    	 

    

 

NOW, THEREFORE, in
consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.         Definitions.
All capitalized terms used herein but otherwise undefined shall have the meaning ascribed to them in the New Notes. For purposes
of this Agreement, the following terms shall have the following meanings:

 

“Accounts”
means any “account,” as such term is defined in the UCC, and, in any event, shall include, without limitation, “supporting
obligations” as defined in the UCC.

 

“Chattel Paper”
means any “chattel paper,” as such term is defined in the UCC.

 

“Commercial
Tort Claims” means “commercial tort claims”, as such term is defined in the UCC.

 

“Contracts”
means all contracts, undertakings, or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments)
in or under which a Debtor may now or hereafter have any right, title or interest, including, without limitation, with respect
to an Account, any agreement relating to the terms of payment or the terms of performance thereof.

 

“Deposit Accounts”
means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of the a Debtor.

 

“Documents”
means any “documents,” as such term is defined in the UCC, and shall include, without limitation, all documents of
title (as defined in the UCC), bills of lading or other receipts evidencing or representing Inventory or Equipment.

 

“Equipment”
means any “equipment,” as such term is defined in the UCC and, in any event, shall include, Motor Vehicles.

 

“Event of
Default” has the meaning set forth in Section 3 of each New Note.

 

“General Intangibles”
means any “general intangibles,” as such term is defined in the UCC, and, in any event, shall include, without limitation,
all right, title and interest in or under any Contract, models, drawings, materials and records, claims, literary rights, goodwill,
rights of performance, copyrights, trademarks, patents, warranties, rights under insurance policies and rights of indemnification.

 

“Goods”
means any “goods”, as such term is defined in the UCC, including, without limitation, fixtures and embedded Software
to the extent included in “goods” as defined in the UCC.

 

    	 	2	 

    	 

    

 

“Instruments”
means any “instrument,” as such term is defined in the UCC, and shall include, without limitation, promissory notes,
drafts, bills of exchange, trade acceptances, letters of credit, letter of credit rights (as defined in the UCC), and Chattel Paper.

 

“Inventory”
means any “inventory,” as such term is defined in the UCC.

“Investment
Property” means any “investment property”, as such term is defined in the UCC.

 

“Motor Vehicles”
shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is governed by a certificate
of title or ownership.

 

“Proceeds”
means “proceeds,” as such term is defined in the UCC and, in any event, includes, without limitation, (a) any and all
proceeds of any insurance, indemnity, warranty or guaranty payable with respect to any of the Collateral, (b) any and all payments
(in any form whatsoever) made or due and payable from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any person acting under color of Governmental
Authority), and (c) any and all other amounts from time to time paid or payable under, in respect of or in connection with any
of the Collateral.

 

“Software”
means all “software” as such term is defined in the UCC, now owned or hereafter acquired by a Debtor, other than software
embedded in any category of Goods, including, without limitation, all computer programs and all supporting information provided
in connection with a transaction related to any program.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of Florida or, when the laws of any other state govern
the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial
Code as in effect from time to time in such state.

 

2.           Grant
of Security Interest. Each Debtor hereby pledges and grants to the Secured Party, and hereby creates a continuing priority
lien and security interest in favor of the Secured Party in and to all of such Debtor’s right, title and interest in and
to the following (collectively, the “Collateral”):

 

(a)        
all Accounts;

 

(b)        
all Deposit Accounts;

 

(c)         all Goods;

 

(d)        
all Inventory;

 

(e)        
all Instruments;

 

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(f)          all General Intangibles (including payment intangibles (as defined in the UCC) and Software);

 

(g)         all Equipment;

 

(h)         all Documents;

 

(i)          all Contracts;

 

(j)          all Investment Property;

 

(k)        
Commercial Tort Claims; and

 

(l)          all other tangible and intangible property of such including, without limitation, all interests in real property, Proceeds, tort
claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and to any of the
property of such Debtor described in the preceding clauses of this Section 2 (including, without limitation, any Proceeds of insurance
thereon, insurance claims and all rights, claims and benefits against any Person relating thereto), other rights to payments not
otherwise included in the foregoing, and all books, correspondence, files, records, invoices and other papers, including without
limitation all tapes, cards, computer runs, computer programs, computer files and other papers, documents and records in the possession
or under the control of the Debtor, any computer bureau or service company from time to time acting for the Debtor.

 

3.           Secured
Obligations. The Collateral secures the due and prompt payment and performance of the obligations of the Company from
time to time arising under the New Notes and, if released from escrow, the Convertible Note and the other Transaction
Documents, with respect to the due and prompt payment of: (i) the principal of and premium, if any, and interest on the New
Notes and the Convertible Note (including interest accruing during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such proceeding), when and as due, whether at
maturity, by acceleration or otherwise; and (ii) all other covenants, duties, debts, obligations and liabilities of any kind
of the Company under or in respect to the New Notes, the Convertible Note or any of the other Transaction Documents, in each
case whether evidenced by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other
similar proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty,
indemnification or otherwise, and whether primary, secondary, direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, fixed or otherwise (all such obligations, covenants, duties, debts, liabilities, sums
and expenses set forth in this Section 3 being herein collectively called the “Secured Obligations”).

 

4.           Perfection
of Security Interest and Further Assurances.

 

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(a)         Each
Debtor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction any
financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction
for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation statements
or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted
by the Debtor hereunder, without the signature of the Debtor where permitted by law, including the filing of a financing statement
describing the Collateral as all assets now owned or hereafter acquired by the Debtor, or words of similar effect. Each Debtor
agrees to provide all information required by the Secured Party pursuant to this Section 4(a) promptly to the Secured Party upon
request.

 

(b)         Each
Debtor agrees that at any time and from time to time, at the Debtor’s sole cost and expense, the Debtor will promptly execute
and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that
the Secured Party may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect
any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights
and remedies hereunder or under any other agreement with respect to any Collateral.

 

5.           Representations
and Warranties. Each Debtor represents and warrants as follows:

 

(a)          At
the time the Collateral becomes subject to the Liens and/or security interests created by this Agreement, the Debtor will be the
sole, direct, legal and beneficial owner thereof, free and clear of any Lien, security interest, encumbrance, claim, option or
right of others except for the Prior Lien and the security interests created by this Agreement;

 

(b)         The
pledge of the Collateral pursuant to this Agreement creates a valid and perfected priority security interest in the Collateral,
securing the payment and performance when due of the Secured Obligations;

 

(c)         Each
Debtor is duly organized, validly existing and in good standing under the laws of its state of formation and has full power and
authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.

 

(d)         This
Agreement has been duly authorized, executed and delivered by the Debtor and constitutes a legal, valid and binding obligation
of the Debtor enforceable against the Debtor in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting creditors’ rights generally and subject to equitable principles (regardless of
whether enforcement is sought in equity or at law);

 

(e)         No
authorization, consent of or notice to any other Person that has not been obtained, is required in connection with the execution,
delivery, performance, validity or enforceability of this Agreement including, without limitation, the assignment and transfer
by the Purchaser of any of the Collateral to the Secured Party or the subsequent transfer thereof by the Secured Party pursuant
to the terms hereof.

 

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(f)         The
execution and delivery of this Agreement by the Debtor and the performance by the Debtor of its obligations hereunder and thereunder,
will not violate any provision of any applicable law or any order of any governmental authority applicable to the Debtor or its
property, or the governing documents of the Debtor or any agreement or instrument to which the Debtor is a party or by which it
or any of its property is bound.

 

6.           Covenants.
Each Debtor covenants, jointly and severally, as follows:

 

(a)         Without
the prior written consent of the Secured Party (which may be granted or withheld in the sole discretion of the Secured Party),
the Debtor will not, unless required by the Senior Lender: (i) directly or indirectly, waive, alter, modify, amend, supplement
or change in any way, or release, subordinate, terminate or cancel, in whole or in part, or give any consent to do any of the foregoing
under any of the instruments, documents, policies or agreements constituting the Collateral; or (ii) take any action which would
render any filed UCC, financial or other statements misleading, incorrect or ineffective.

 

(b)         The
Debtor shall, at its sole cost and expense, defend title to the Collateral and the priority lien and security interest of the Secured
Party therein against the claim of any Person other than the Senior Lender claiming against or through any Debtor and shall maintain
and preserve such perfected priority security interest for so long as this Agreement shall remain in effect.

 

(c)         The
Debtor will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict,
or grant, create, permit or suffer to exist, and will take all such other action as is necessary or requested by the Secured Party
to immediately remove any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance or other restriction
or limitation of any nature whatsoever on, any of the Collateral or any interest therein, except for the Prior Lien.

 

(d)         The
Debtor will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance
thereon. The Debtor will permit the Secured Party or its designees to inspect the Collateral at any reasonable time, wherever located.

 

(e)         Upon
request from the Secured Party, the Debtor will furnish to the Secured Party statements and schedules further identifying and describing
the Collateral and such other reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable
detail.

 

(f)         The
Debtor shall be responsible for, shall promptly pay promptly when due, and shall save the Secured Party and its Affiliates and
representatives harmless from, any and all losses, liabilities or damages with respect to, or that result from any delay in paying,
any and all taxes upon the Collateral or incurred in connection with the use or operation of the Collateral or incurred in connection
with this Agreement.

 

(g)         The
Debtor shall not, without the prior written consent of the Secured Party (which may be granted or withheld in the sole discretion
of the Secured Party), make any election, compromise, adjustment or settlement in respect of any of the Collateral, other than
with respect to the Senior Lender.

 

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(h)         The
Company, on behalf of all Debtors, shall promptly give to the Secured Party notice of all pending legal or arbitration proceedings
of which a Debtor has actual or constructive knowledge, and of all proceedings of which a Debtor has actual or constructive knowledge
pending by or before any governmental authority, by or against a Debtor, or impacting or affecting a Debtor or the Collateral.

 

(i)          The
Debtor waives: (i) all rights to require the Secured Party to proceed against any other Person or collateral or to exercise any
remedy set forth herein or in any other Transaction Document; (ii) to the extent permitted by applicable law, the defense of the
statute of limitations in any action upon any of the Secured Obligations; (iii) any right of subrogation or interest in the Secured
Obligations or Collateral until all Secured Obligations have been paid in full; and (iv) any rights to notice of any kind or nature
whatsoever, unless specifically required in this Agreement or any other Transaction Document or non-waivable under any applicable
law. The Debtor agrees that the Collateral, other collateral or any other guarantor or endorser may be released, substituted or
added with respect to the Secured Obligations, in whole or in part, without releasing or otherwise affecting the liability of the
Purchaser, the security interests granted hereunder, this Agreement or any other Transaction Document.

 

7.           Reserved.

 

8.          
Secured
Party May Perform. If a Debtor fails to perform any obligation contained in this Agreement, the Secured Party may itself
perform, or cause performance of, such obligation, and the expenses of the Secured Party incurred in connection therewith shall
be payable by the Debtor; provided that in no event shall the Secured Party be required to perform or discharge any obligation
of the Debtor, and provided, further, that the Senior Lender shall not object to the Secured Party’s performance thereof.

 

9.          
Reasonable Care. The Secured Party shall not have any duty with respect to the care and preservation of the Collateral
beyond the exercise of reasonable care. The Secured Party shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the
Secured Party accords its own property, it being understood that the Secured Party shall have no any responsibility for: (i) ascertaining
or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant
to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Secured Party has
or is deemed to have knowledge of such matters; or (ii) taking any necessary steps to preserve rights against any parties with
respect to any Collateral. Nothing set forth in this Agreement, nor the exercise by the Secured Party of any of the rights and
remedies hereunder, shall relieve a Debtor from the performance of any obligation on the Debtor’s part to be performed or
observed in respect of any of the Collateral.

 

10.
        Remedies Upon Default. Subject in its entirety to the rights
of the Senior Lender:

 

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(a)        
If any Event of Default shall have occurred and be continuing, the Secured Party, without any other notice to or demand
upon any Debtor, may assert all rights and remedies of a secured party under the UCC or other applicable law, including, without
limitation, the right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain,
liquidate or dispose of all or any portion of the Collateral. If notice prior to disposition of the Collateral or any portion thereof
is necessary under applicable law, written notice mailed to the Purchaser at its notice address as provided in Section 14 hereof
five (5) days prior to the date of such disposition shall constitute reasonable notice, but notice given in any other reasonable
manner shall be sufficient. So long as the sale of the Collateral is made in a commercially reasonable manner, the Secured Party
may sell such Collateral on such terms and to such purchaser(s) as the Secured Party, in its absolute discretion, may choose, without
assuming any credit risk and without any obligation to advertise or give notice of any kind other than that necessary under applicable
law. Without precluding any other methods of sale, the sale of the Collateral or any portion thereof shall have been made in a
commercially reasonable manner if conducted in conformity with reasonable commercial practices of creditors disposing of similar
property. To the extent permitted by applicable law, each Debtor waives all claims, damages and demands it may acquire against
the Secured Party arising out of the exercise by it of any rights hereunder. Each Debtor hereby waives and releases to the fullest
extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder,
and all rights, if any, of marshalling the Collateral and any other security for the Secured Obligations or otherwise. At any such
sale, unless prohibited by applicable law, the Secured Party or any custodian may bid for and purchase all or any part of the Collateral
so sold free from any such right or equity of redemption. Neither the Secured Party nor any custodian shall be liable for failure
to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take
any action whatsoever with regard thereto.

 

(b)        
If any Event of Default shall have occurred and be continuing, any cash held by the Secured Party as Collateral and all
cash Proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part
of the Collateral shall be applied in whole or in part by the Secured Party to the payment of expenses incurred by the Secured
Party in connection with the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating
to the Collateral or the rights of the Secured Party hereunder, including reasonable attorneys’ fees, and the balance of
such proceeds shall be applied or set off against all or any part of the Secured Obligations in such order as the Secured Party
shall elect. Any surplus of such cash or cash Proceeds held by the Secured Party and remaining after payment in full of all the
Secured Obligations shall be paid over to Purchaser or to whomsoever may be lawfully entitled to receive such surplus. Each Debtor
shall remain liable, jointly and severally, for any deficiency if such cash and the cash Proceeds of any sale or other realization
of the Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by the
Secured Party to collect such deficiency.

 

(c)        
If the Secured Party shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section
10, each Debtor agrees that, upon the request of the Secured Party, such Debtor shall, at its own expense, do or cause to be done
all such acts and things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance
with applicable law.

 

11.         Security
Interest Absolute. Each Debtor hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice
of loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands
and notices of any description. All rights of the Secured Party and liens and security interests hereunder, and all Secured Obligations
of the Debtor hereunder, shall, subject to the rights of the Senior Lender, be absolute and unconditional irrespective of:

 

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(a)        
any illegality or lack of validity or enforceability of any Secured Obligation or any related agreement or instrument;

 

(b)        
any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations, or any rescission,
waiver, amendment or other modification of the New Note, this Agreement or any other Transaction Document, including any increase
in the Secured Obligations resulting from any extension of additional credit or otherwise;

 

(c)        
any taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or
any taking, release, impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations;

 

(d)        
any manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to
all or part of the Secured Obligations;

 

(e)        
any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available
to, or be asserted by, the Debtor against the Secured Party or its Affiliates or representatives; or

 

(f)        
any other circumstance (including, without limitation, any statute of limitations) or manner of administering the New Note
or any existence of or reliance on any representation by the Secured Party that might vary the risk of the Debtor or otherwise
operate as a defense available to, or a legal or equitable discharge of, the Debtor or any other grantor, guarantor or surety.

 

12.         No
Waiver and Cumulative Remedies. No term or provision of this Agreement may be waived except by a written instrument executed
by the party against whom enforcement is sought. All rights and remedies herein provided are cumulative and are not exclusive of
any rights or remedies provided by law. No failure to exercise, nor any delay in exercising, on the part of the Secured Party,
any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
A waiver by the Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy which the Secured Party would otherwise have on any future occasion. The rights, remedies, powers and privileges herein
provided are cumulative, may be exercised singly or concurrently and are not exclusive of any rights, remedies, powers or privileges
provided by law.

 

13.          Amendments.
This Agreement may only be amended or otherwise modified by a written instrument executed by all parties hereto.

 

14.          Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Exchange Agreement, provided that notice from a Secured Party to
the Company shall serve as notice to each and every Debtor.

 

    	 	9	 

    	 

    

 

15.         Continuing
Security Interest; Further Actions. This Agreement shall create a continuing priority lien and security interest in the Collateral
and shall: (i) subject to Section 16 hereof, remain in full force and effect until payment and performance in full of the Secured
Obligations; (ii) be binding upon the Debtor and its respective successors and assigns, and (iii) inure to the benefit of the Secured
Party and its respective successors, transferees and assigns; provided that a Debtor may not assign or otherwise transfer any of
its rights or obligations under this Agreement without the prior written consent of the Secured Party.

 

16.         Termination;
Release. This Agreement and the liens and security interests granted hereunder shall not terminate until the Secured Party
has received cash paid by the Company and/or net proceeds from the sale of the Company’s Common Stock equal to at least $900,000
(but subject to the indefeasible satisfaction of all of the Secured Obligations with respect to which claims have been asserted
by the Secured Party), whereupon the Company shall have the authority to file form UCC-3s releasing Priority Liens created by this
Agreement and the Secured Party will, at the request and sole expense of the Company, (i) duly assign, transfer and deliver to
or at the direction of the Company (without recourse and without any representation or warranty) such of the Collateral as may
then remain in the possession of the Secured Party, together with any monies at the time held by the Secured Party hereunder; and
(ii) execute and deliver to the Company a proper instrument or instruments acknowledging the satisfaction and termination of this
Agreement with respect to each Debtor.

 

17.        Indemnification.
Each Debtor hereby agrees to jointly and severally indemnify, reimburse and hold harmless the Secured Party, its Affiliates and
representatives, its Affiliates’ representatives and all of their respective successors and assigns from and against any
and all costs, fees, expenses, liabilities, losses and damages that may be imposed upon, incurred by, or asserted against any of
them, arising out of or related directly or indirectly to this Agreement or the Collateral, except such as are occasioned by the
indemnified parties own gross negligence or willful misconduct.

 

18.          Governing
Law; Venue. This Agreement shall be governed by and construed according to the laws of the State of New York, without giving
effect to its choice of law principles. The parties agree that all actions and proceedings arising out of or relating directly
or indirectly to this Agreement shall be litigated solely and exclusively in the state courts located in New York County, New York,
and that such courts are convenient forums. Each party hereby submits to the personal jurisdiction of such courts for purposes
of any such actions or proceedings.

 

19.         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 agency 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 shall survive and be construed as if
such invalid or unenforceable term, provision, or condition had not been contained therein.

    	 	10	 

    	 

    

 

20.        Waiver
of Jury Trial. Each party hereto hereby waives any and all right to trial by jury in any action or proceeding relating to this
Agreement, the obligations hereunder, any Collateral securing the Secured Obligations, or any transaction arising therefrom or
connected thereto. Each party hereto represents to the other parties hereto that this waiver is knowingly, willingly, and voluntarily
given.

 

21.         Interpretation.
The section headings contained in this Agreement are solely for the purpose of reference and shall not in any way affect the meaning
or interpretation of this Agreement. The word “including” shall be deemed to mean “including without limitation.”

 

22.         Entire
Agreement. This Agreement and the other Transaction documents embody the entire agreement and understanding of the parties
hereto in respect of the subject matter contained herein. There are no representations, promises, warranties, covenants, or undertakings,
other than those expressly set forth or referred to herein or therein.

 

23.         Counterparts.
This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

[Signature Page Follows]

 

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

 

 

SECURED PARTY:

 

	 	 
	By: 	 	 
	Its: 	 	 

 

 

	By:	 	 
	Name: 	 	 	 
	Title: 	 	 	 

 

 

 

DEBTORS:

 

DPW Holdings, INC.

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

DPW TECHNOLOGY GROUP, INC..

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

DPW FINANCIAL GROUP, INC.

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

COOLISYS TECHNOLOGIES, INC.

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

    	 	12	 

    	 

    

 

DIGITAL POWER LIMITED

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

ENERTEC SYSTEMS 2001 LTD

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

POWER-PLUS TECHNICAL DISTRIBUTORS, LLC

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

DIGITAL POWER LENDING, LLC

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

DIGITAL FARMS, INC.

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

MICROPHASE CORPORATION

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

I. AM, INC.

 

 

	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

    	 	13	 

    	 

    

 

EXHIBIT A

Form of Joinder

Joinder to Security Agreement

 

The undersigned, ______________________________,
hereby joins in the execution of that certain Security Agreement dated as of January __, 2019 (as amended, restated, supplemented
or otherwise modified from time to time, the “Security Agreement”) by DPW Holdings, Inc., a Delaware corporation, the
Debtors (as defined therein), the Secured Party (as defined therein), and each other Person that becomes a Debtor or a Secured
Party thereunder after the date thereof. By executing this Joinder, the undersigned hereby agrees that it is a Debtor thereunder
and agrees to be bound by all of the terms and provisions of the Security Agreement. The undersigned represents and warrants that
the representations and warranties set forth in the Security Agreement are, with respect to the undersigned, true and correct as
of the date hereof.

 

 

	 	________________, a ________
	 	By:	 	 
	 	 	 	 	 
	 	 	Title:	 	 
	 	 	FEIN: 	 	 

 

 

14caci-ex101_6.htm

  

 

INCREMENTAL FACILITY AMENDMENT

 

Dated as of January 17, 2019

 

among

CACI INTERNATIONAL INC,

as the Borrower,

THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN,
as the Guarantors,

BANK OF AMERICA, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer,

 

and

The Incremental Revolving Lenders Party Hereto

 

 

JPMORGAN CHASE BANK, N.A., PNC CAPITAL MARKETS, LLC,

ROYAL BANK OF CANADA, SUNTRUST ROBINSON HUMPHREY, INC.,

WELLS FARGO SECURITIES, LLC, MUFG BANK, LTD.,

FIFTH THIRD BANK, and CAPITAL ONE, N.A.,

as Co-Syndication Agents

 

Arranged By:

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

JPMORGAN CHASE BANK, N.A., PNC CAPITAL MARKETS, LLC,

ROYAL BANK OF CANADA, SUNTRUST ROBINSON HUMPHREY, INC.,

WELLS FARGO SECURITIES, LLC, MUFG BANK, LTD.,

FIFTH THIRD BANK, and CAPITAL ONE, N.A.,

as Joint Lead Arrangers and Joint Bookrunners

 

 

INCREMENTAL FACILITY AMENDMENT

 

THIS INCREMENTAL FACILITY AMENDMENT (this “Amendment”) dated as of January 17, 2019 to the Credit Agreement referenced below is by and among CACI International Inc, a Delaware corporation (the “Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified as “Incremental Revolving Lenders” on the signature pages hereto (the “Incremental Revolving Lenders”), and Bank of America, N.A., in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and L/C Issuer.

 

W I T N E S S E T H

 

WHEREAS, revolving credit and term loan facilities have been extended to the Borrower pursuant to the Credit Agreement dated as of October 21, 2010 among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent (as amended, modified, supplemented, increased and extended from time to time, the “Credit Agreement”);

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may request Incremental Revolving Increases by entering into one or more Incremental Facility Amendments with the other Loan Parties, the Administrative Agent and each Person (including any existing Lender) that agrees to provide a portion of the applicable Incremental Revolving Increase; and

 

WHEREAS, the Borrower has requested an Incremental Revolving Increase, and the Incremental Revolving Lenders have agreed to provide such Incremental Revolving Increase on the terms and conditions set forth herein.

 

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement (as amended hereby).

2.Incremental Revolving Increase.

Each Incremental Revolving Lender agrees to provide incremental Revolving Commitments (with respect to each Incremental Revolving Lender, its “Incremental Revolving Commitment” and, collectively, the “Incremental Revolving Commitments”) in an amount equal to the amount set forth opposite the name of such Incremental Revolving Lender on Schedule A attached hereto.  Each Incremental Revolving Lender hereby agrees that its Revolving Commitment, after giving effect to the Incremental Revolving Commitments, is as set forth on Schedule B attached hereto.  On the date hereof, the risk participations of each Revolving Lender (including Incremental Revolving Lenders) in any outstanding L/C Obligations and in any outstanding Swing Line Loans shall be reallocated among the Revolving Lenders (including the Incremental Revolving Lenders) based on such Revolving Lender’s adjusted Applicable Percentage.  

3.Conditions Precedent.  This Amendment shall become effective as of the date hereof upon satisfaction of the following conditions precedent:

(a)Receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Loan Parties and the Incremental Revolving Lenders.

(b)Receipt by the Administrative Agent of customary opinions of legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the date hereof.

(c)Receipt by the Administrative Agent of a certificate of each Loan Party, dated as of the date hereof and signed by a Responsible Officer of such Loan Party, (i) attaching copies of the Organization Documents of such Loan Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a secretary or assistant secretary of such Loan Party to be true and correct as of the date of this Amendment (or certifying that the Organization Documents of such Loan Party delivered on the Closing Date (or most recently delivered since the Closing Date, as the case may be) have not been amended, supplemented or otherwise modified since the Closing Date (or such later date, as applicable) and remain in full force and effect as of the date of this Amendment in the form so delivered), (ii) certifying and attaching resolutions adopted by the board of directors or equivalent governing body of such Loan Party approving such Incremental Revolving Increase (or certifying that the resolutions of such Loan Party delivered on the Closing Date (or most recently delivered since the Closing Date, as the case may be) have not been amended, supplemented or otherwise modified since the Closing Date (or such later date, as applicable) and remain in full force and effect as of the date of this Amendment in the form so delivered), (iii) evidencing the identity, authority and capacity of each Responsible Officer of such Loan Party authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such Loan Party is a party (or certifying that the documentation providing such evidence with respect to each Responsible Officer of such Loan Party delivered on the Closing Date (or most recently delivered since the Closing Date, as the case may be) remains true and correct in all respects as of the date of this Amendment in the form so delivered) and (iv) in the case of the Borrower, certifying that, immediately before and immediately after giving effect to such Incremental Revolving Increase, (x) the representations and warranties of each Loan Party contained in Article VI of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the date of such Incremental Revolving Increase, except to the extent that (A) such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and (B) such representations and warranties are qualified as to materiality, in which case they shall be true and correct in all respects as of such date (or such earlier date), and (y) no Default exists.

(d)Receipt by the Administrative Agent of any fees required to be paid on or before the date hereof, including, for the account of each Incremental Revolving Lender, an upfront fee for such Incremental Revolving Lender in an amount equal to 0.20% of the aggregate amount of such Incremental Revolving Lender’s Incremental Revolving Commitment.

(e)At least five days prior to the date hereof, if the Borrower qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”), receipt by the Administrative Agent, and by each Incremental Revolving Lender that so requests, a certification regarding beneficial ownership required by the Beneficial Ownership Regulation (each such certification, a “Beneficial Ownership Certification”) in relation to the Borrower.

Without limiting the generality of the provisions of the last paragraph of Section 10.03 of the Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 3, each Incremental Revolving Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Incremental Revolving Lender unless the 

Administrative Agent shall have received notice from such Incremental Revolving Lender prior to the date hereof specifying its objection thereto.

4.Amendment is a Loan Document.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.

5.Representations and Warranties.  Each Loan Party represents and warrants to the Administrative Agent and each Lender that, immediately before and immediately after giving effect to such Incremental Revolving Increase, (a) the representations and warranties of each Loan Party contained in Article VI of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects on and as of the date hereof, except to the extent that (i) such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date and (ii) such representations and warranties are qualified as to materiality, in which case they are true and correct in all respects as of such date (or such earlier date), (b) no Default exists, (c) for purposes of determining withholding Taxes imposed under FATCA, from and after the date hereof, the Borrower and the Administrative Agent shall treat (and the Incremental Revolving Lenders hereby authorize the Administrative Agent to treat) the Obligations as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i), and (d) as of the date hereof, the information included in any Beneficial Ownership Certification provided pursuant to Section 3 above, if applicable, is true and correct in all respects.

6.Eligible Assignee.  By its execution of this Amendment, each Incremental Revolving Lender represents and warrants that it is an Eligible Assignee.

7.Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment and the incurrence of Indebtedness and other transactions contemplated hereby, (b) affirms all of its obligations under the Credit Agreement (as amended hereby) and the other Loan Documents and (c) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge such Loan Party’s obligations under the Loan Documents.

8.Reaffirmation of Security Interests.  Each Loan Party (a) agrees that, notwithstanding the effectiveness of this Amendment, the Security Agreement and each of the other Collateral Documents continue to be in full force and effect and are not impaired or adversely affected in any manner whatsoever, (b) confirms its guaranty of the Obligations and its grant of a security interest pursuant to the Collateral Documents in its assets that constitute Collateral as collateral therefor, all as provided in the Loan Documents as originally executed and (c) acknowledges that such guaranty and grant continues in full force and effect in respect of, and to secure, the Obligations under the Credit Agreement and the other Loan Documents.

9.No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect.

10.Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of this Amendment by facsimile or other electronic imaging means shall be effective as an original.

11.Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York.

[SIGNATURE PAGES FOLLOW]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Incremental Facility Amendment to be duly executed as of the date first above written.

 

	
BORROWER:
	
CACI INTERNATIONAL INC, a Delaware corporation

 

By: /s/ Thomas A. Mutryn

Name: Thomas A. Mutryn

Title: Executive Vice President, Chief Financial Officer and Treasurer

 

	
GUARANTORS:
	
CACI PRODUCTS COMPANY, a Delaware corporation

CACI PRODUCTS COMPANY CALIFORNIA, a California corporation

CACI, INC. - FEDERAL, a Delaware corporation

CACI, LLC - COMMERCIAL, a Delaware limited liability company

CACI TECHNOLOGIES, LLC, a Virginia limited liability company

CACI DYNAMIC SYSTEMS, LLC, a Virginia limited liability company

CACI PREMIER TECHNOLOGY, LLC, a Delaware limited liability company

CACI-CMS INFORMATION SYSTEMS, LLC, 

a Virginia limited liability company

CACI ENTERPRISE SOLUTIONS, LLC, a Delaware limited liability company

R.M. VREDENBURG, LLC, a Virginia limited liability company

CACI-WGI, LLC, a Delaware limited liability company

CACI SECURED TRANSFORMATIONS, LLC, 

a Florida limited liability company

CACI-NSR, INC., a Delaware corporation

CACI TECHNOLOGY INSIGHTS, LLC, a Virginia limited liability company

CACI-ATHENA, LLC, a Delaware limited liability company

BUSINESS DEFENSE AND SECURITY CORPORATION, 

a Virginia corporation

CACI-ISS, LLC, a Delaware limited liability company

APPLIED SYSTEMS RESEARCH, INC., a Virginia corporation

TECHNIGRAPHICS, LLC, an Ohio limited liability company

PANGIA TECHNOLOGIES, LLC, a Nevada limited liability company

DELTA SOLUTIONS AND TECHNOLOGIES, LLC, 

a Virginia limited liability company

EMERGINT TECHNOLOGIES, LLC, a Georgia limited liability company

IDL SOLUTIONS, LLC, a Wisconsin limited liability company

Six3 Systems, LLC, a Delaware limited liability company

CACI Asia, LLC, a Delaware limited liability company

Six3 Enterprise Systems, LLC, a Maryland limited liability company

Six3 Advanced Systems, Inc., a Virginia corporation 

Six3 Intelligence Solutions, LLC, a Virginia limited liability company

Ticom Geomatics, Inc., a Texas corporation

CACI DATA TACTICS CORPORATION, a Virginia corporation

CACI NSS, LLC, a Delaware limited liability company

 

By:/s/ Thomas A. Mutryn

Name: Thomas A. Mutryn

Title:  Executive Vice President, Chief Financial Officer and Treasurer 

 

 

 

LTC Engineering Associates, Inc., a Florida corporation

 

By: /s/ Thomas A. Mutryn

Name: Thomas A. Mutryn

Title: Executive Vice President, Chief Financial Officer and Treasurer

 

 

 

ADMINISTRATIVE AGENT:BANK OF AMERICA, N.A., as Administrative Agent

 

By: /s/ Gerund Diamond

Name: Gerund Diamond

Title: Vice President

 

 

 

 

INCREMENTAL REVOLVING

LENDERS:BANK OF AMERICA, N.A.

 

By:/s/ Larry Van Sant

Name: Larry Van Sant 

Title: Senior Vice President   

 

JPMORGAN CHASE BANK, N.A.

 

By: /s/ Anthony Galea

Name: Anthony Galea

Title: Executive Director  

 

PNC BANK, NATIONAL ASSOCIATION

 

By: /s/ Eric H. Williams

Name: Eric H. Williams

Title: Vice President  

 

ROYAL BANK OF CANADA

 

By: /s/ Richard C. Smith

Name: Richard C. Smith 

Title: Authorized Signatory   

 

SUNTRUST BANK

 

By: /s/ Anika Kirs

Name: Anika Kirs 

Title: Vice President   

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

By: /s/ Mark B. Felker

Name: Mark B. Felker 

Title: Managing Director  

 

MUFG BANK, LTD.

 

By: /s/ George Stoecklein

Name: George Stoecklein 

Title: Managing Director   

 

FIFTH THIRD BANK

 

By: /s/ Will Batchelor

Name: Will Batchelor 

Title: Vice President  

 

 

 

CAPITAL ONE NATIONAL ASSOCIATION

 

By: /s/ Joseph C. Costa

Name: Joseph C. Costa 

Title: Senior Vice President   

 

 

 

 

Consented to:

 

SWING LINE LENDER AND

	
L/C ISSUER:
	
BANK OF AMERICA, N.A., as Swing Line Lender and L/C Issuer

 

By: /s/ Larry Van Sant

Name: Larry Van Sant

Title: Senior Vice President

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