Document:

Exhibit
10.1

 

 

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (the “Agreement”) is entered into and effective

as of December 22, 2019 (the “Effective Date”), by and between DPW Holdings, Inc., a Delaware corporation (the
“Company”) and Ault & Company, Inc., a Delaware corporation (including its designees, successors and assigns,
the “Investor”).

 

RECITALS

 

A.       The
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue to Investor, and Investor
shall purchase shares of Common Stock from the Company in the amount of $739,948.00; and

 

B.       The
offer and sale of the Shares provided for herein are being made without registration under the Securities Act, in reliance upon
the provisions of Section 4(a)(2) of the Securities Act, Regulation D promulgated under the Securities Act, and such other exemptions
from the registration requirements of the Securities Act as may be available with respect to any or all of the purchases of Shares
to be made hereunder.

 

AGREEMENT

 

In consideration of
the premises, the mutual provisions of this Agreement, and other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, Company and Investor agree as follows:

 

ARTICLE 1

DEFINITIONS

 

In addition to the
terms defined elsewhere in this Agreement, the following terms have the meanings indicated in this Article I:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to Investor,
without limitation, any Person owning, owned by, or under common ownership with Investor, and any investment fund or managed account
that is managed on a discretionary basis by the same investment manager as Investor will be deemed to be an Affiliate.

 

“Agreement”
means this Securities Purchase Agreement including the exhibits and schedules hereto.

 

“Balance Sheet
Date” has the meaning set forth in Section 3.1(f)(i).

 

“Charter Documents”
has the meaning set forth in Section 3.1(a).

 

“Closing”
has the meaning set forth in Section 2.2(a).

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Stock”
means the Class A Common Stock, par value $0.001 per share, of the Company, and any replacement or substitute thereof, or any share
capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

“Contracts”
means any and all contracts, agreements, commitment, franchises, understandings, arrangements, leases, licenses, registrations,
authorizations, easements, servitudes, rights of way, mortgages, bonds, notes, guaranties, Encumbrances, evidence of indebtedness,
approvals or other instruments or undertakings to which such person is a party or to which or by which such person or the property
of such person is subject or bound, whether written or oral and whether or not entered into in the ordinary and usual course of
the Person’s business, excluding any Permits, provided that each such Contract shall provide for the payment of no less than
$15,000.

 

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“Control Person”
means each director, executive officer, promoter, and such other Persons as may be deemed in control of the Company, as such term
is defined by Rule 405 under the Securities Act.

 

“Disclosure
Schedules” means the disclosure schedules of the Company delivered concurrently herewith, attached hereto, and incorporated
herein by reference. The Disclosure Schedules shall contain no material non-public information.

 

“DTC”
means The Depository Trust Company, or any successor performing substantially the same function for Company.

 

“DWAC Shares”
means, except as expressly stated otherwise herein, all shares of Common Stock issued or issuable to Investor or any Affiliate,
successor or assign of Investor pursuant to any of the Transaction Documents, all of which shall be (a) issued in electronic form,
and (b) timely credited by Company to the specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated
Securities Transfer (FAST) Program or any similar program hereafter adopted by DTC performing substantially the same function,
in accordance with irrevocable instructions issued to and countersigned by the Transfer Agent, in the form attached hereto as Exhibit
B or in such other form agreed upon by the parties.

 

“Encumbrances”
means any and all claims, liabilities and obligations and all liens, pledges, charges, mortgages, security interests, restrictions,
leases, licenses, easements, liabilities, claims, encumbrances, preferences, priorities or rights of others of every kind and description.

 

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

 

“Firm”
has the meaning set forth in Section 3.1(f)(i).

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Financial
Statements” has the meaning set forth in Section 3.1(f)(i).

 

“Governmental
Authority” means any nation or country (including but not limited to the United States) and any commonwealth, territory
or possession thereof and any government or governmental or regulatory, legislative, executive authority thereof, or commission,
department or political subdivision thereof, whether federal, state, regional, municipal, local or foreign, or any department,
board, bureau, agency, instrumentality or authority thereof, or any court or arbitrator (public or private), including, but not
limited to, the Commission and FINRA.

 

“Intellectual
Property” means any patent, patent right, trademark, trademark right, trade name, trade name right, service mark, service
mark right, copyright and other proprietary intellectual property right and computer program.

 

“Investigation”
has the meaning set forth in Section 3.2(d)(vi).

 

“Knowledge”
means, with respect to any Person, (x) such Person is actually aware of such fact or matter or (y) such Person should reasonably
have been expected to discover or otherwise become aware of such fact or matter after reasonable investigation, and for purposes
hereof it shall be assumed that such Person has conducted a reasonable investigation of the accuracy of the representations and
warranties set forth herein.

 

“Leased Properties”
has the meaning set forth in Section 3.1(n)(ii).

 

“Legal Requirements”
means any and all laws (statutory, judicial or otherwise), ordinances, regulations, judgments, orders, directives, injunctions,
writs, decrees or awards of, and any Contracts with, any Governmental Authority, in each case as and to the extent applicable to
such person or such person’s business, operations or Properties.

 

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“Liability”
means any liability, obligation or indebtedness of whatever kind or nature (whether known or unknown, whether asserted or unasserted,
whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become
due), including any liability for Taxes.

 

“Loss”
or “Losses” means any and all Liability, damages, fines, fees, penalties and expenses whether or not arising
out of litigation, including without limitation, interest, reasonable expenses of investigation, court costs, reasonable out-of-pocket
fees and expenses of attorneys, accountants and other experts or other reasonable out-of-pocket expenses of litigation or other
legal proceedings, incurred in connection with the rightful enforcement of rights under this Agreement against any party hereto,
and whether or not arising out of third party claims against an indemnified party.

 

“Material
Adverse Effect” means any material adverse effect on (i) the legality, validity or enforceability of any Transaction
Document, (ii) the results of operations, assets, business, prospects or financial condition of the Company and the Subsidiaries,
taken as a whole, or (iii) the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document.

 

“Material
Agreement” means any material loan agreement, financing agreement, equity investment agreement or securities instrument
to which Company is a party, any agreement or instrument to which Company and Investor or any Affiliate of Investor is a party,
and any other material agreement listed, or required to be listed, on any of Company’s reports filed or required to be filed
with the Commission, including without limitation Forms 10-K, 10-Q or 8-K.

 

“Permits”
means any and all permits, rights, approvals, licenses, authorizations, legal status, orders or Contracts under any Legal Requirement
or otherwise granted by any Governmental Authority.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Per Share
Purchase Price” means $1.12 per share.

 

“Properties”
means any and all properties and assets (real, personal or mixed, tangible or intangible) owned or used by the Company.

 

“Purchase
Price” means $739,948.00.

 

“Purchase
Right” with respect to any Person means any security, right, subscription, warrant, option or other Contract that gives
the right to purchase or otherwise receive or be issued any shares of capital stock or other equity interests of such Person or
any security of any kind convertible into or exchangeable or exercisable for any shares of capital stock or other equity interests
of such Person.

 

“Records”
means all originals and copies of agreements, instruments, documents, deeds, books, records, files, corporate franchises, stock
record books, corporate books containing the minutes of meetings of directors and shareholders and any and all other data and information
within the possession of a party or any Affiliate thereof.

 

“Regulation D” means
Regulation D promulgated under the Securities Act.

 

“Required
Approval” means any approval of the NYSE American.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect.

 

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“Rule 144
Eligible” means eligible for immediate resale under Rule 144 without limitation on the amount of securities sold under
Rule 144(e).

 

“SEC Reports”
includes all reports required to be filed by the Company under the Securities Act and/or the Exchange Act, including pursuant to
Section 13(a) or 15(d) thereof, for the two (2) years preceding the Effective Date (or such shorter period as the Company was required
by law to file such material) and for the period in which this Agreement is in effect.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Shares”
means the shares of Common Stock being issued and sold to the Investor by the Company hereunder.

 

“Subsidiary”
means any Person the Company owns or controls, or in which the Company, directly or indirectly, owns a majority of the capital
stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b)(21).

 

“Tax”
means any and all taxes, charges, fees, levies or other assessments, including, without limitation, local and/or foreign income,
net worth, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental,
customs duties, share capital, franchise, profits, withholding, social security (or similar), unemployment, disability, real property,
personal property, sales, use, service, service use, transfer, registration, recording, ad valorem, value-added, alternative or
add-on minimum, estimated, or other taxes, assessments or charges of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.

 

“Tax Return”
means any federal, state, local and foreign tax return, report or similar statement required to be filed with respect to any Tax
(including any attached Schedules), including, without limitation, any information return, claim for refund, amended return or
declaration of estimated Tax.

 

“Taxing Authority”
means the Internal Revenue Service and any other Governmental Authority responsible for the administration of any Tax.

 

“Trading Day”
means any day on which the Common Stock is traded on the Trading Market; provided that it shall not include any day on which the
Common Stock is (a) scheduled to trade for less than 5 hours, or (b) suspended from trading.

 

“Trading Market”
means the OTCQB, the OTCQX, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the NYSE American,
or the New York Stock Exchange, whichever is at the time the principal trading system, exchange or market for the Common Stock,
but does not include the OTC Pink Sheets inter-dealer electronic quotation and trading system.

 

“Transaction
Documents” means this Agreement, the other agreements and documents referenced herein, and the exhibits and schedules
hereto and thereto.

 

“Transfer
Agent” means Computershare or any successor transfer agent for the Common Stock.

 

ARTICLE 2

PURCHASE AND SALE

 

2.1         Agreement to Purchase.
Subject to the terms and conditions herein and the satisfaction of the conditions to closing set
forth in this Article 2, the Company hereby agrees to issue to the Investor an aggregate of 660,667 Shares and the Investor
hereby agrees to purchase the 660,667 Shares from the Company for the Purchase Price, and to furnish to the Company the Purchase
Price in consideration for the 660,667 Shares in accordance with the terms of this Agreement. 

 

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2.2         Closing;
Conditions to Closing.

 

(a)       Closing.
The closing of this Agreement (the “Closing”) shall be deemed to occur when this Agreement has been duly executed
by both Investor and the Company, and the other Conditions to the Closing set forth in Section 2.2(b) and Section 2.2(c)
have been met.

 

(b)       Company
Conditions to Closing. As a condition precedent to the Closing, all of the following (the “Company Conditions to Closing”)
shall have been satisfied prior to or concurrently with the Company’s execution and delivery of this Agreement:

 

(i)       the
following documents shall have been delivered to the Investor: (A) this Agreement (including the Disclosure Schedules), executed
by the Company; (B) a Secretary’s Certificate as to (x) the resolutions of the Company’s board of directors authorizing
this Agreement and the Transaction Documents, and the transactions contemplated hereby and thereby, and (y) a copy of the Company’s
Charter Documents, and (C) a copy of the Company’s press release announcing the transactions contemplated by this Agreement
(all documents listed in this Section 2.2(b) are referred to herein as the “Closing Deliverables”);

 

(ii)       other
than for losses incurred in the ordinary course of business, there shall not have been any Material Adverse Effect on the Company
since the date of the last SEC Report filed by the Company, including but not limited to incurring material liabilities;

 

(iii)       the
representations and warranties of the Company in this Agreement shall be true and correct in all material respects; and

 

(iv)       the
Required Approval for the issuance of the Shares shall have been obtained.

 

(c)       Investor
Conditions to Closing. As a condition precedent to the Closing, the Investor shall have paid the Purchase Price to the Company
as well as delivered a signed copy of this Agreement to the Company.

 

2.3         Share
Sufficiency. On the date of Closing, the Company shall have a sufficient number of duly authorized shares of Common Stock
to be able to issue the Shares to the Investor.

 

ARTICLE 3

REPRESENTATIONS AND
WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as set forth under the corresponding section of the Disclosure Schedules, which shall
be deemed a part hereof and which shall not contain any material non-public information, the Company hereby represents and warrants
to, and as applicable covenants with, Investor as of each Closing:

 

(a)       Corporate
Organization. The Company (i) is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware, and has full corporate power and authority to carry on its business as it is now being conducted and to own
the Properties it now owns, and (ii) is duly qualified or licensed to do business as a foreign corporation in good standing in
such other states in which it does business, except where such failure to be so qualified or licensed would not have a Material
Adverse Effect on the Company’s business; the Company is duly and properly registered pursuant to applicable state laws and
regulations in all states where the conduct of the Company’s business as presently conducted requires such registration.
The copies of the Certificate of Incorporation and Bylaws of the Company (the “Charter Documents”) annexed hereto
as Schedule 3.1(a) are complete and correct copies of such instruments as presently in effect.

 

(b)       Authority.
The Company has the corporate power and the authority to execute, deliver and perform this Agreement and each other document contemplated
by this Agreement and the Transaction Documents. The execution, delivery and performance of the Transaction Documents by the Company
have been duly authorized by its board of directors. No other corporate proceedings on the part of the Company are necessary to
authorize the execution, delivery and performance of the Transaction Documents. The Transaction Documents have been duly executed
and delivered by the Company and, assuming due execution and delivery hereof by the Investor, are valid and legally binding agreements
of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, moratorium, reorganization and similar
laws of general applicability relating to or affecting creditors’ rights, to general equity principles, and public policy
considerations underlying the securities laws, to the extent that such public policy considerations limit the enforceability of
the provisions of the Transaction Documents that purport to provide indemnification for securities laws liabilities.

 

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(c)       Capitalization.
Attached as Schedule 3.1(c) to this Agreement is a capitalization table setting forth the equity capitalization of the Company
as of the date hereof, and on a pro forma basis, after giving effect to the sale of the Shares.

 

Other than as set forth
above or on Schedule 3.1(c), no shares of capital stock or other voting or non-voting securities of the Company are issued,
reserved for issuance or outstanding. All outstanding shares of capital stock of the Company are duly authorized, validly issued,
fully paid and non-assessable and not subject to or issued in violation of any Purchase Right, right of first refusal, preemptive
right, subscription right or any similar right under any provision of the applicable corporate laws of the State of Delaware, the
Charter Documents, or any Contract to which the Company is a party or otherwise bound. Except as set forth on Schedule
3.1(c), there are no oral and/or written, direct and/or indirect options, warrants, rights, convertible or exchangeable securities,
“phantom” stock rights, stock appreciation rights, stock-based performance units, commitments, Contracts, arrangements
or undertakings of any kind to which the Company is a party or by which it is bound; (a) obligating the Company to issue, deliver
or sell, or cause to be issued, delivered or sold, additional shares of capital stock or other equity interests in, or any security
convertible or exercisable for or exchangeable into any capital stock of or other equity interest in, the Company, (b) obligating
the Company to issue, grant, extend or enter into any such option, warrant, call, right, security, commitment, Contract, arrangement
or undertaking or (c) that give any Person the right to receive any economic benefit or right similar to or derived from the economic
benefits and rights occurring to holders of the capital stock of the Company. As of the date of this Agreement, there are no outstanding
contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of capital stock of the Company. To
the Company’s Knowledge, the offer and sale of all capital stock, convertible securities, rights, warrants, or options of
the Company issued prior to the Closing complied with all applicable federal and state securities laws and the Company has not
been notified by the Commission, the NYSE American, any state securities commission or any other Governmental Authority of the
absence of compliance by the Company with any federal and state securities laws or other Legal Requirements. No stockholder has
a matured and/or unmatured right of rescission or claim for damages with respect thereto.

 

(d)       Consents;
Permits; Defaults. Assuming the accuracy of the representations and warranties of the Investor in Section 3.2, other
than as contemplated in the Transaction Documents, none of the execution, delivery or performance of the Transaction Documents
by the Company, the consummation by the Investor of any transaction contemplated by the Transaction Documents, or compliance by
the Company with any of the provisions of the Transaction Documents will require (with or without notice or lapse of time, or both)
any consent, approval, authorization or permit of, or filing or registration with or notification to, any Governmental Authority
or any other Person, other than the failure to obtain such consents, approvals, authorizations or permits of, or to make such filings,
registrations with or notifications to any Governmental Authority or any other Person, individually or in the aggregate, has not
had a Material Adverse Effect on the Company.

 

(e)       Non-Contravention.
 The execution, delivery and performance the Transaction Documents by the Company does not and will not (i) result in a breach
of, or constitute a default under the Charter Documents, (ii) result in a breach of, or constitute a default under, any loan agreement,
indenture or mortgage or any material lease, agreement, franchise, license, permit or other undertaking or Contract to which the
Company is a party or any of its Properties may be subject or bound, (iii) result in a violation of any order, writ, injunction,
decree or award of any court or Governmental Authority including, but not limited to, the Commission, to the Company or relating
to any of its Properties, or (iv) result in a violation of any federal or state law, statute, ordinance, rule or regulation or
other Legal Requirement applicable the Company.

 

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(f)         Financial
Statements.

 

(i)       The
 Company has delivered or made available (for purposes of this section, filings that are publicly available prior to the date
hereof on the EDGAR system of the Commission under the name of the Company are deemed to have been made available) to the Investor:
(i) a true and complete copy of the Company’s unaudited consolidated balance sheet as of September 30, 2019 (the “Balance
Sheet Date”) and the related unaudited consolidated statements of operations, changes in the Company stockholder’s
deficit and cash flows for the period then ended and (ii) a true and complete copy of the Company’s audited balance sheet
as of December 31, 2018 and December 31, 2017 and the related audited statements of operations, changes in the Company stockholder’s
deficit and cash flows for each of the years ended December 31, 2018 and December 31, 2017, prepared in accordance with GAAP, together
with the report of Marcum, LLP, the Company’s independent registered public accounting firm (the “Firm”),
which has served as the Company’s auditors since the audit of its 2016 financial statements (such statements, including
the related notes and schedules thereto, are referred to herein as the “Financial Statements”). The Financial
Statements have been prepared from, are in accordance with, and accurately reflect, the books and records of the Company, comply
in all material respects with applicable accounting requirements in the case of the Financial Statements; fairly present in all
material respects the financial position and the results of operations and cash flows (and changes in financial position, if any)
of the Company as of the times and for the periods referred to therein (subject, in the case of unaudited statements, to normally
recurring year-end adjustments that are not material either individually or in the aggregate and the absence of footnotes). The
Financial Statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except
as set forth in the notes thereto). The Financial Statements are in form appropriate for filing with the Commission.

 

(ii)       The
Firm, which has certified the Company’s Financial Statements and related schedules, is an independent registered public accounting
firm with respect to the Company as required by the Securities Act and the rules and regulations promulgated thereunder and the
Public Company Accounting Oversight Board (United States).

 

(iii)       There
are no relationships or services, or any other factors that may affect the objectivity and independence of the Firm under applicable
auditing standards. The Firm has not performed any non-audit services for any Person related to the Company.

 

(g)       Contracts.

 

(i)       Schedule 3.1(g)(i) contains
an accurate and complete list and terms of all the Company’s Contracts. Other than as set forth on Schedule 3.1(g)(i) ,
the Company is not a party to or bound by any of the following, whether written or oral:

 

(A)       Any
Contract that cannot by its terms be terminated by the Company with thirty (30) days’ or less notice without penalty or whose
term continues beyond one (1) year after the date of this Agreement;

 

(B)       Any
Contract or commitment for capital expenditures for non-product orders by the Company in excess of $100,000 per calendar quarter
in the aggregate other than purchase orders to vendors to manufacture products sold to customers;

 

(C)       Any
lease or license with respect to any material Properties, whether as landlord, tenant, licensor or licensee;

 

(D)       Any
Contract or other instrument relating to the borrowing of money or the guarantee of any obligation or the deferred payment of the
purchase price of any Properties;

 

(E)       Any
Contract with any Affiliate of the Company relating to the provision of goods or services by or to the Company other than purchase
orders to vendors to manufacture products sold to customers;

 

(F)       Any
Contract for the sale of any assets;

 

(G)       Any
Contract that purports to limit the Company’s freedom to compete freely in any line of business or in any geographic area;

 

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(H)       Any
preferential purchase right, right of first refusal, or similar agreement; or

 

(I)       Any
other Contract that is material to the business of the Company.

 

(ii)         All
of the Contracts listed or required to be listed in Schedule 3.1(g)(i) are valid, binding and to the Knowledge
of the Company, in full force and effect, and the Company has not been notified or advised by any party thereto of such party’s
intention or desire to terminate or modify any such Contract in any respect. To the Knowledge of the Company no other party is
in breach of any of the terms or covenants of any Contract listed or required to be listed on Schedule 3.1(g)(i)  that
has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Following the Closing,
the Company will continue to be entitled to all of the benefits currently held by the Company under each Contract listed or required
to be listed on Schedule 3.1(g)(i).

 

(iii)         The
Company is not a party to or bound by any Contract or Contracts the terms of which were arrived at by, or otherwise reflect, less-than-arm’s-length
negotiations or bargaining.

 

(h)         Absence
of Certain Changes or Events.

 

(i)         Except
as set forth on Schedule 3.1(h)(i), since the Balance Sheet Date, there has not been:

 

(A)       any
event, circumstance or change that had or would reasonably be expected to result in a Material Adverse Effect on the Company;

 

(B)       any
damage, destruction or loss (whether or not covered by insurance) that had or would reasonably be expected to result in a Material
Adverse Effect of the Company; or

 

(C)       any
Material Adverse Effect in the Company’s sales patterns, pricing policies, accounts receivable or accounts payable.

 

(ii)         Except
as set forth on Schedule 3.1(h)(ii), since the Balance Sheet Date, the Company has not:

 

(A)       merged
into or with or consolidated with, any other corporation or acquired the business or assets of any Person;

 

(B)       purchased
securities from any Person;

 

(C)       created,
incurred, assumed, guaranteed or otherwise become liable or obligated with respect to any Liabilities, or made any loan or advance
to, or any investment in, any person, except in each case in the ordinary course of business;

 

(D)       made
any change in any existing election, or made any new election, with respect to any tax law in any jurisdiction which election could
have an effect on the tax treatment of the Company or the Company’s business operations;

 

(E)       entered
into, amended or terminated a material Contract;

 

(F)       sold,
transferred, leased, mortgaged, encumbered or otherwise disposed of, or agreed to sell, transfer, lease, mortgage, encumber or
otherwise dispose of, any Properties;

 

(G)       settled
any claim or litigation, or filed any motions, orders, briefs or settlement agreements in any proceeding before any Governmental
Authority or any arbitrator;

 

    	 	- 8 -	 

    	 

    

 

(H)       incurred
or approved, or entered into any Contract, agreement or commitment to make, any expenditures in excess of $100,000;

 

(I)       maintained
its Records and/or any other books of account other than in the usual, regular and ordinary manner in accordance with GAAP and
on a basis consistent with prior periods and has not made any change in any of its accounting methods or practices that would be
required to be disclosed under GAAP;

 

(J)       granted
any increase in the compensation payable or to become payable to directors, officers or employees (including, without limitation,
any such increase pursuant to any bonus, profit-sharing or other plan or commitment);

 

(K)       suffered
any extraordinary losses or waived any rights of material value;

 

(L)       made
any payment to any Affiliate or forgiven any indebtedness due or owing from any Affiliate to the Company other than director fees
and other payments described in the SEC Reports;

 

(M)       engaged
in any one or more activities or transactions with an Affiliate outside the ordinary course of business;

 

(N)       declared,
set aside or paid any dividends, or made any distributions or other payments in respect of its equity securities, or repurchased,
redeemed or otherwise acquired any such securities;

 

(O)       amended
its Charter Documents;

 

(P)       issued
any capital stock or other securities, or granted, or entered into any agreement to grant, any options, convertible rights, other
rights, warrants, calls or agreements relating to its capital stock; or

 

(Q)       agreed
or committed to do any of the foregoing.

 

(i)       Absence
of Undisclosed Liabilities and Agreements. The Company does not have any debt, loss, damage, adverse claim, liability or obligation
(whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated
or unliquidated, or due or to become due, and whether in contract, tort, strict liability or otherwise) which are not accurately
reflected or provided for in the balance sheet dated as of the Balance Sheet Date included within the Financial Statements (whether
or not they are required to be disclosed under GAAP), other than (a) those incurred in the ordinary course of the Company’s
business since Balance Sheet Date, (b) those disclosed in this Agreement or the disclosure schedules and (c) those material obligations
arising subsequent to the date hereof pursuant to the express terms of executory Contracts, which executory Contracts (to the extent
such Contracts are material to the business of the Company) are identified on Schedule 3.1(i). Neither the Company
nor any of its officers or directors has effected any securitization transactions or “off-balance sheet arrangements”
(as defined in Item 303(c) of Regulations S-K of the Commission) since the Balance Sheet Date. Except as set forth on Schedule 3.1(i) or
otherwise contemplated by this Agreement, as of the Closing there will be no Liabilities of the Company.

 

(j)       Compliance
with Law. The business of the Company has been operated in compliance with all Legal Requirements, including all laws, ordinances,
rules, regulations and orders of all Governmental Authorities and the NYSE American, except where such failure would not have a
Material Adverse Effect on the Company or its business. The Company has filed all reports and statements, including but not limited
to the SEC Reports, together with any amendments required to be made with respect thereto, that it was required to file with any
Governmental Authority or any other body having jurisdiction over the Company’s operations. The Company has not received
any written communication from a Governmental Authority that alleges that the Company is not in compliance with any federal, state,
local or foreign laws, ordinances and regulations or has not made all of the filings required by all such authorities, organizations
and agencies.

 

    	 	- 9 -	 

    	 

    

 

(k)         Tax
Matters. All Tax Returns required to be filed by or on behalf of the Company have been duly and timely filed with the appropriate
Taxing Authority in all jurisdictions in which such Tax Returns are required to be filed (after giving effect to any valid extensions
of time in which to make such filings), and all such Tax Returns are true, complete and correct in all material respects. All Taxes
payable by or on behalf of the Company (whether or not shown on any Tax Return) have been fully and timely paid. With respect to
any period for which Tax Returns have not yet been filed or for which Taxes are not yet due or owing, the Company has made due
and sufficient accruals for such Taxes in the Financial Statements and in its books and records. All required estimated Tax payments
sufficient to avoid any underpayment penalties or interest have been made by or on behalf of the Company. The Company has complied
in all material respects with all applicable laws relating to the payment and withholding of Taxes in connection with amounts paid
or owing to any employee, independent contractor, creditor, equity owner or other third party and has duly and timely withheld
and paid over to the appropriate Taxing Authority all amounts required to be so withheld and paid under all applicable laws.

 

(l)         Absence
of Questionable Payments. Neither the Company nor any Affiliate, director, officer, partner, employee, agent, representative
or other Person acting on behalf of the Company has: (i) used any funds for contributions, payments, gifts or entertainment, or
made any expenditures relating to political activities of foreign, federal, state or local government officials or others in violation
of any law (including the Foreign Corrupt Practices Act of 1977, as amended), or (ii) accepted or received any unlawful contributions,
payments, gifts or expenditures.

 

(m)         Litigation.
Other than as set forth on Schedule 3.1(m), there is no claim, action, suit or proceeding pending or, to the Knowledge of
the Company, threatened against any of the Company or its Properties which, if adversely determined, will affect or can reasonably
be expected to affect materially and adversely, the Company, or which seeks to prohibit, restrict or delay consummation of the
transaction contemplated hereby or any of the conditions to consummation of such transaction, nor to the Knowledge of the Company
is there any judgment, decree, injunction, ruling or order of any court, Governmental Authority, including, but not limited to,
the Commission, any commission, agency or instrumentality or arbitrator outstanding against the Company having, or which may in
the future have, any such effect. Neither the Company nor any Affiliate thereof is under investigation with respect to, any violation
of any provision of any federal or state law or administrative regulation in respect of the business of the Company. The Company
is not a party to or bound by any judgment, decree, injunction, ruling or order of any Governmental Authority or any other person
which has affected or may affect materially and adversely the Preferred Shares.

 

(n)         Title
to Property.

 

(i)       
Personal Property. All material items of personal property used in the business of the Company are in good operating condition
and fit for operation in the ordinary course of the Company’s business (subject to normal wear and tear) with no defects
that could reasonably be expected to interfere with the conduct of the normal operation of such items and are suitable for the
purposes for which they are currently being used.

 

(ii)       Real
Property. The Company owns no real property. The Company’s only leased properties are the properties in Newport Beach,
CA, Fremont, CA, Israel and Salisbury, the United Kingdom (collectively, the “Leased Properties”). All real
estate Taxes for which the Company is responsible with respect to any Leased Property (and which are not otherwise incorporated
into payments made under any lease), have been paid in full, as and when due.

 

(o)       Intellectual
Property. The Company has, or has rights to use, all Intellectual Property necessary for the conduct of the business of the
Company as currently conducted. The Company has received no written notice that the Intellectual Property used by it violates or
infringes upon the rights of any Person. All rights to such Intellectual Property are enforceable and to the Knowledge of the Company,
there is no existing infringement by another Person of any of the rights to the Company’s Intellectual Property of others.
All the Company’s Intellectual Property rights registered or applied for registration under the name of the Company are set
forth on Schedule 3.1(o).

 

(p)       SEC
Reports. The Company has filed with the Commission all SEC Reports required to be filed pursuant to the Securities Act and
Exchange Act and is current in its reporting obligations. As of their respective dates, all SEC Reports complied in all material
respects with requirements of the Securities Act and Exchange Act and the rules and regulations promulgated thereunder and none
of the SEC Reports when they were filed contained an untrue statement of a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

    	 	- 10 -	 

    	 

    

 

(q)       Books
and Records; Internal Accounting Controls. The Records of the Company accurately reflect in all material respects the information
relating to the business of the Company, the location and collection of its Properties and the nature of all transactions giving
rise to the obligations or accounts receivable of the Company to the extent required to be contained therein. The Company maintains
a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate actions is taken with respect to any differences.

 

(r)       Broker.
The Company has not retained any broker in connection with any transaction contemplated by this Agreement. The Company shall not
be obligated to pay any fee or commission associated with the retention or engagement by the Company of any broker in connection
with any transaction contemplated by this Agreement.

 

(s)       Common
Stock Symbol. The Company Common Stock is currently listed on the NYSE American under the symbol “DPW.”

 

(t)       No
Commission or NYSE American Inquiries; Delisting. Except as set forth on Schedule 3.1(t), to the best of the Company’s
Knowledge, the Company is not, and has never been, the subject of any formal or informal inquiry or investigation by the Commission
or the NYSE American. Except as set forth on Schedule 3.1(t), the Company has no Knowledge of any action by the
Commission or the NYSE American that seeks to deregister or delist the Common Stock from the NYSE American or otherwise render
such shares ineligible for listing and trading on the NYSE American.

 

(u)       Shares.
The Shares will upon issuance be duly authorized, fully paid and non-assessable and vest in the holder thereof title thereto free
and clear of any restrictions on transfer (other than any restrictions under applicable state or federal securities laws), Taxes,
Encumbrances, options, warrants, Purchase Rights, Contracts, commitments, equities, claims, and demands and will not be subject
to any pre-emptive or other similar rights.

 

(v)       Disclosure
of Material Information. Neither the Company nor any other Person acting on its behalf has provided or will provide the Investor
or its agents or counsel with any information that the Company believes constitutes material non-public information (other than
with respect to the transactions contemplated by this Agreement and the Transaction Documents). The Company understands and confirms
that the Investor will be relying on the foregoing representations in effecting transactions in the Shares.

 

(w)       Labor
Matters. The Company is not a party to any representation or collective bargaining agreement with any employees.

 

(x)       Employment
Agreements and Plans.  The Company has furnished the Investor with a list of all employment, consulting, advisory and
confidentiality agreements to which the Company is a party. The Company has delivered to the Investor true and complete copies
of each such agreement (or written descriptions thereof for any such agreements which are not in writing). Except as set forth
on Schedule 3.1(x), the Company has not and does not maintain or contribute to any outstanding incentive compensation,
deferred compensation, profit sharing, stock option, stock bonus, stock purchase, savings, consultant, retirement, pension, medical,
dental, disability or other benefit plans or arrangements with or for the benefit of any officer, employee or former officer, employee
of the Company or for the benefit of any distributor, sales representative or other person resulting from a relationship with the
Company.

 

    	 	- 11 -	 

    	 

    

 

(y)        Insurance.
The Company has furnished the Investor with a list of all material bonds and liability, fire and other insurance contracts of whatsoever
description to which the Company is a party, and under which the Company is or was a beneficiary.

 

(z)         Director
and Officer Insurance. The Company has maintained insurance for its officers and directors for the last five (5) years without
any lapse in coverage.

 

(aa)      DTC Eligibility.
The Company’s Transfer Agent is a participant in and the Common Stock is eligible for transfer pursuant to the Depository
Trust Company’ Fast Automated Securities Transfer Program.

 

(bb)     Disclosure.
No representation or warranty by the Company in this Agreement, the Exhibits or the Schedules hereto and thereto and no statement
contained in any document, certificate, or other writing furnished or to be furnished by the Company to the Investor or any of
its representatives or agents pursuant to the provisions hereof or in connection with the transactions, contains or will contain
any untrue statement of material fact or omits or will omit to state any material fact necessary in order to make the statements
herein or therein made, in the light of the circumstances under which they were made, not misleading.

 

3.2         Representations
and Warranties of Investor. Investor hereby represents and warrants as of the Effective Date as follows:

 

(a)         Authority.
The Investor has all necessary corporate power and authority to execute and deliver the Transaction Documents, to perform its obligations
hereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and
the Transaction Documents by the Investor, and the consummation by the Investor of the transactions contemplated hereby have been
duly and validly authorized by its board of directors, and no other corporate proceedings on the part of the Investor are necessary
to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement and the Transaction Documents
have been duly validly executed and delivered by the Investor and, assuming due authorization, execution and delivery by the Company,
constitutes a legally valid and binding obligation of the Investor, enforceable against the Investor in accordance with its terms
(except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and other similar laws affecting creditors’ rights generally and subject to the effect of general principles of equity, whether
considered in a proceeding in equity or at law).

 

(b)         No
Conflict. None of the execution, delivery or performance of the Transaction Documents by the Investor, the consummation by
the Investor of the transactions contemplated by this Agreement, or compliance by the Investor with any of the provisions of this
Agreement will (with or without notice or lapse of time, or both): (a) conflict with or violate any provision of the organizational
or governing documents of the Investor, or (b) assuming that all consents, approvals, authorizations and permits described in Section
3.1(d) have been obtained and all filings and notifications described in Section 3.1(d) have been made and any waiting
periods thereunder have terminated or expired, conflict with or violate any law applicable to the Investor, except, with respect
to clause (b), for any such conflicts, violations, consents, breaches, losses, defaults, other occurrences which, individually
or in the aggregate, have not had a Material Adverse Effect on the Investor.

 

(c)         Information
in the Form 8-K. The information supplied by the Investor in writing expressly for inclusion or incorporation by reference
in the Form 8-K (as hereinafter defined) and any amendment thereof or supplement thereto, will not, on the date submitted to the
Company, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements made therein, in light of the circumstances under which they are made, not misleading.

 

(d)         Securities
Act Representations.

 

    	 	- 12 -	 

    	 

    

 

(i)       Restricted
Shares. The Investor represents that it understands that the Shares to be sold to it pursuant to this Agreement will not be
registered pursuant to the registration requirements of the Securities Act and that the resale of such Shares is subject to certain
restrictions hereunder and under federal and state securities laws. The Investor represents that it is acquiring such Shares for
its own account, not as a nominee or agent, and not with a view to the distribution thereof in violation of applicable securities
laws. The Investor further represents that it has been advised and understands that since such Shares have not been registered
under the Securities Act, such Shares must be held indefinitely unless (A) the resale of such Shares has been registered under
the Securities Act, (B) a sale of such Shares is made in conformity with the holding period, volume and other limitations of Rule
144 promulgated by the Commission under the Securities Act, or (C) in the opinion of counsel reasonably acceptable to the Company,
some other exemption from registration is available with respect to any proposed sale, transfer or other disposition of such Shares.

 

(ii)       Legend.
The Investor represents that it has been advised and understands that, subject to applicable securities laws, stop transfer instructions
will be given to the Company’s Transfer Agent with respect to the Shares and that a legend, substantially in the form provided
for in Section 4.1(b), setting forth the restrictions on transfer will be set forth on the certificates for the Shares or
any substitutions therefor.

 

(iii)       Accredited
Investor. The Investor is an “accredited investor” (as such term is defined in Regulation D under the Securities
Act).

 

(iv)       Litigation.
There are no actions, suits, arbitrations, mediations, proceedings or claims pending or, to the knowledge of the Investor, threatened
against Investor that seek to restrain or enjoin the consummation of the transactions contemplated hereby.

 

(v)       Acknowledgement
of Receipt of Information. The Investor has had an opportunity to ask questions and receive answers and materials, and to discuss
the business of the Company and its Subsidiaries and related matters, with certain key officers of the Company and its Subsidiaries
regarding the transactions contemplated hereunder (the “Investigation”). The Investor hereby acknowledges and
agrees that other than the Company’s representations and warranties set forth in Section 3.1, neither the Company
nor any of its representatives makes or has made any representation or warranty, express or implied, at law or in equity, with
respect to the business of the Company or any Subsidiary thereof nor with respect to the Shares. Nothing in this Section 3.2(d)(v)
(including any information provided to the Investor by the Company pursuant to the Investigation) shall derogate from the representations
and warranties of the Company contained in Section 3.1 hereof or from the ability of Investor to rely on such representations
and warranties or to seek indemnification for Losses in respect of such representations and warranties.

 

ARTICLE 4

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer
Restrictions

 

(a)       The
Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares
other than (i) pursuant to an effective Registration Statement or Rule 144, (ii) to the Company, (iii) to an Affiliate of Investor,
or (iv) in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to
provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, to the effect
that such transfer does not require registration of such transferred Shares under the Securities Act.

 

(b)       Investor
agrees to the imprinting, so long as is required by this Section 4.1 of the following legend, or substantially similar legend,
on any certificate evidencing Shares other than DWAC Shares that qualify to have the legend removed as provided below:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	 	- 13 -	 

    	 

    

 

The Company agrees
to cause such legend to be removed immediately upon effectiveness of a Registration Statement, or when any securities are eligible
for sale under Rule 144 and, if requested by Investor or the Transfer Agent, to promptly provide at the Company’s expense
a legal opinion of counsel to the Company confirming that such legend may be removed. Company further acknowledges and agrees that
Investor may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security
interest in some or all of the Shares to a financial institution that is an “accredited investor” as defined in Rule
501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms
of such arrangement, Investor may transfer pledged or secured Shares to the pledgees or secured parties. Such a pledge or transfer
would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor
shall be required in connection therewith. Further, no notice shall be required of such pledge. At Investor’s reasonable
expense, the Company will execute and deliver such documentation as a pledgee or secured party of Shares may reasonably request
in connection with a pledge or transfer of the Shares.

 

4.2         Furnishing
of Information. As long as Investor owns Shares, the Company covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the Effective Date pursuant
to the Exchange Act. Upon the request of Investor, the Company shall deliver to Investor a written certification of a duly authorized
officer as to whether it has complied with the preceding sentence. As long as Investor owns the Shares, if the Company is not
required to file reports pursuant to such laws, it will prepare and furnish to Investor and make publicly available in accordance
with Rule 144(c) such information as is required for Investor to sell the Shares under Rule 144. The Company further covenants
that it will take such further action as any holder of Shares may reasonably request, all to the extent required from time to
time to enable such Person to sell such Shares without registration under the Securities Act within the limitation of the exemptions
provided by Rule 144. 

 

4.3         Integration. The
Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the
registration under the Securities Act of the sale of the Shares to Investor or that would be integrated with the offer or sale
of the Shares for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior
to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction. 

 

 

4.4       Securities
Laws Disclosure; Publicity. The Company shall timely file a Current Report on Form 8-K as required by this Agreement, and
shall file a press release, in each case reasonably acceptable to Investor, disclosing the material terms of the transactions
contemplated hereby. The Company and Investor shall consult with each other in issuing any press releases with respect to the
transactions contemplated hereby, and neither the Company nor Investor shall issue any such press release or otherwise make any
such public statement without the prior consent of the Company, with respect to any such press release of Investor, or without
the prior consent of Investor, with respect to any such press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law or Trading Market regulations, in which case the disclosing
party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of Investor, or include the name of Investor in any filing with the
Commission or any regulatory agency or Trading Market, without the prior written consent of Investor, except (i) as contained
in the Current Report on Form 8-K and press release described above, (ii) as required by federal securities law in connection
with any registration statement under which the securities are registered, (iii) to the extent such disclosure is required by
law or Trading Market regulations, in which case the Company shall provide Investor with prior notice of such disclosure, or (iv)
to the extent such disclosure is required in any SEC Report filed by the Company.

 

5.5      Shareholders
Rights Plan. No claim will be made or enforced by the Company or, to the Knowledge of the Company, any other Person that Investor
is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or hereafter adopted
by the Company, or that Investor could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Shares under the Transaction Documents or under any other agreement between the Company and Investor. The Company shall conduct
its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended. 

 

    	 	- 14 -	 

    	 

    

 

5.6       Non-Public
Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide Investor
or its agents or counsel with any information that the Company believes or reasonably should believe constitutes material non-public
information, unless prior thereto Investor shall have executed a written agreement regarding the confidentiality and use of such
information. On and after the Effective Date, neither Investor nor any Affiliate Investor shall have any duty of trust or confidence
that is owed directly, indirectly, or derivatively, to the Company or the shareholders of the Company, or to any other Person who
is the source of material non-public information regarding the Company. The Company understands and confirms that Investor shall
be relying on the foregoing in effecting transactions in securities of the Company.

 

5.7      Reimbursement.
If Investor becomes involved in any capacity in any proceeding by or against any Person who is a stockholder of the Company (except
as a result of sales, pledges, margin sales and similar transactions by Investor to or with any current stockholder), solely as
a result of Investor’s acquisition of the Shares under this Agreement, the Company will reimburse Investor for its reasonable
legal and other expenses (including the cost of any investigation preparation and travel in connection therewith) incurred in connection
therewith, as such expenses are incurred, or will assume the defense of Investor in such matter. The reimbursement obligations
of the Company under this Section 5.7 shall be in addition to any liability which the Company may otherwise have, shall
extend upon the same terms and conditions to any Affiliates of Investor who are actually named in such action, proceeding or investigation,
and partners, directors, agents, employees and controlling persons (if any), as the case may be, of Investor and any such Affiliate,
and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company,
Investor and any such Affiliate and any such Person. The Company also agrees that neither Investor nor any such Affiliates, partners,
directors, agents, employees or Controlling Persons shall have any liability to the Company or any Person asserting claims on behalf
of or in right of the Company solely as a result of acquiring the Shares under this Agreement.

 

5.8       Indemnification
of Investor

 

(a)       Company
Indemnification Obligation. Subject to the provisions of this Section 5.8, the Company will indemnify and hold Investor,
its Affiliates and attorneys, and each of their directors, officers, shareholders, partners, employees, agents, and any person
who controls the Investor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively,
the “Investor Parties” and each an “Investor Party”), harmless from any and all Losses that
any Investor Party may suffer or incur as a result of or relating to (i) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other Transaction Documents, or (ii) any action instituted
against any Investor Party, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate
of an Investor Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is
based upon a breach of Investor’s representations, warranties or covenants under the Transaction Documents or any agreements
or understandings Investor may have with any such stockholder or any violations by Investor of state or federal securities laws
or any conduct by Investor which constitutes fraud, gross negligence, willful misconduct or malfeasance), (iii) any untrue statement
or alleged untrue statement of a material fact contained in a Registration Statement (or in a Registration Statement as amended
by any post-effective amendment thereof by the Company) or arising out of or based upon any omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, and/or (iv) any untrue
statement or alleged untrue statement of a material fact included in any Prospectus (or any amendments or supplements to any Prospectus),
in any free writing prospectus, in any “issuer information” (as defined in Rule 433 under the Securities Act) of the
Company, or in any Prospectus together with any combination of one or more of the free writing prospectuses, if any, or arising
out of or based upon any omission or alleged omission to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

 

    	 	- 15 -	 

    	 

    

 

(b)       Indemnification
Procedures. If any action shall be brought against an Investor Party in respect of which indemnity may be sought pursuant to
this Agreement, such Investor Party shall promptly notify the Company in writing, and the Company shall have the right to assume
the defense thereof with counsel of its own choosing. The Investor Parties shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Investor
Parties except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of such separate counsel, a material conflict with respect to the dispute in question on any material
issue between the position of the Company and the position of the Investor Parties such that it would be inappropriate for one
counsel to represent the Company and the Investor Parties. The Company will not be liable to the Investor Parties under this Agreement
(i) for any settlement by an Investor Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is either attributable
to Investor’s breach of any of the representations, warranties, covenants or agreements made by Investor in this Agreement
or in the other Transaction Documents.

 

5.9       Required
Approval. Other than Required Approval of the NYSE American, no transactions contemplated under this Agreement or the Transaction
Documents shall be consummated for an amount that would require any other approval by any Trading Market or the Company’s
stockholders. The Company shall use its best efforts to obtain Required Approval as promptly as practicable.

 

5.10       Right
of Participation in Future Financings. If the Company, at any time after five (5) years from the Effective Date, shall issue
shares of capital stock, convertible securities, rights, options, warrants or any other kind of its securities in a financing,
then the Investor shall have the right to participate in any such financing under the same terms and conditions as the investors
in any such financing in order to maintain its then percentage ownership interest in the Company. Such right of participation shall
apply to securities issued in a financing subsequent to the Effective Date, and shall become effective immediately after the record
date for the determination of stockholders entitled to receive such rights, options or warrants.

 

ARTICLE 6

MISCELLANEOUS

 

6.1       Fees
and Expenses. Each party shall pay the fees and expenses of its own advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of
the Transaction Documents. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the
Shares, if any.

 

6.2       Notices.
Unless a different time of day or method of delivery is set forth in the Transaction Documents, any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the
earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail prior
to 5:30 p.m. Eastern time on a Trading Day and an electronic confirmation of delivery is received by the sender, (b) the next Trading
Day after the date of transmission, if such notice or communication is delivered later than 5:30 p.m. Eastern time or on a day
that is not a Trading Day, (c) three (3) Trading Days following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses for such notices
and communications are those set forth following the signature page hereof, or such other address as may be designated in writing
hereafter, in the same manner, by such Person.

 

6.3       Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and Investor or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

6.4       Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

    	 	- 16 -	 

    	 

    

 

6.5       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
Investor, which consent shall not be unreasonably withheld or delayed. Investor may assign any or all of its rights under this
Agreement (a) to any Affiliate, or (b) to any Person to whom Investor assigns or transfers any Shares.

 

6.6       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 6.6.

 

6.7       Governing
Law; Dispute Resolution. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard
to the principles of conflicts of law that would require or permit the application of the laws of any other jurisdiction. Each
party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City
of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the
City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action
or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall
be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses reasonably incurred in connection
with the investigation, preparation and prosecution of such action or proceeding.

 

6.8       Survival.
The representations and warranties contained herein shall survive the Closing and the delivery and conversions of the Shares.

 

6.9       Execution.
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
transmission or in a PDF by e-mail transmission, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original
thereof.

 

6.10       Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will
attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

6.11       Replacement
of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or
destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares.

 

    	 	- 17 -	 

    	 

    

 

6.12       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each
of Investor and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at
law would be adequate. Neither the Company nor Investor shall be liable for special, indirect, consequential or punitive damages
suffered or alleged to be suffered by the other party or any third party, whether arising from or related to the Transaction Documents
or otherwise.

 

6.13       Payment
Set Aside. To the extent that the Company makes a payment or payments to Investor pursuant to any Transaction Document or Investor
enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or
are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

6.14       Time
of the Essence. Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.

 

6.15       Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

 

6.16       Entire
Agreement. This Agreement, together with the Exhibits, Appendices and Schedules hereto, contains the entire agreement and understanding
of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters, discussions, communications and
understandings, both oral and written, which the parties acknowledge have been merged into this Agreement. No party, representative,
attorney or agent has relied upon any collateral contract, agreement, assurance, promise, understanding or representation not expressly
set forth hereinabove. The parties hereby expressly waive all rights and remedies, at law and in equity, directly or indirectly
arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such assurance.

 

    	 	- 18 -	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.

 

 

	DPW HOLDINGS, INC.

 

 

	By:	/s/ Henry Nisser
	Name:	Henry Nisser
	Title:	Executive Vice President

 

 

 

	AULT & COMPANY, INC.

 

 

	By:	/s/ Milton C. Ault, III
	Name:	Milton C. Ault, III
	Title:	Chief Executive Officer 

 

    	 	 	 

    	 

    

 

Addresses for Notice

 

 

To Company:

 

DPW Holdings, Inc.

201 Shipyard Way

Newport Beach, California 92663

Attention: Henry Nisser, Executive Vice President

Telephone: (949) 444-5464

 

To Investor:

 

Ault & Company, Inc.

201 Shipyard Way

Newport Beach, California 92663

Attention: Milton C. Ault, Chief Executive Officer

Telephone: (949) 444-5464Exhibit 10.1

December 20, 2019

 

Mr. George A. Eldridge

64 Damien Road

Wellesley, MA 02481

 

Dear George:

 

The purpose of this Separation
Agreement and Release Agreement (the “Agreement”) is to set forth the terms of your separation of employment from Proteon
Therapeutics, Inc. (the “Company”). The Severance Payment being offered in this Agreement and described below are contingent
on your assent to and compliance with the provisions of this Agreement, including your signing of this Agreement.

 

1.       Separation
of Employment. Your employment with the Company shall terminate on the earliest to occur of (i) the closing of Proteon’s
proposed merger with ArTara Therapeutics, Inc. (“ArTara”), or (ii) January 15, 2020 (the “Separation Date”).
You acknowledge that from and after the Separation Date, you shall have no authority to, and shall not represent yourself as an
employee or agent of the Company. Your salary and benefits will cease as of that date and any entitlement you have or might have
under any Company-provided benefit program will also end except as required by federal or state law.

 

2.       Severance
Payment. If you sign and comply with the terms of this Agreement, and this Agreement shall have become effective and irrevocable
in accordance with the provisions of Section 10 hereof, the Company will provide you with the following consideration (the “Severance
Payment”):

 

A.       A
Separation Payment equal in the gross amount of $377,810, less appropriate tax and other applicable deductions, payable on the
last regularly scheduled payroll processed prior to the expected closing date of the merger between the Company and ArTara.

 

B.        At
a meeting of the Board of Directors on December 19, 2019, it was determined to award you a one-time cash transaction bonus equal
to $151,124.00, payable on the last regularly scheduled payroll processed prior to the expected closing date of the merger between
the Company and ArTara.

 

C.       Your
coverage under the Company’s group Medical, Vision and/or Dental insurance plans (the “Company’s Plans”)
will end on your Separation Date.

 

           Due to the termination
of the Company’s Plans in connection with the closing of Proteon’s proposed merger with ArTara on or about the Separation
Date, you will not be able to continue your coverage under the Company’s Plans under the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”) after the Separation Date. In lieu of paying your COBRA premiums for a period of twelve (12) months
after your Separation Date, the Company shall pay to you on an after-tax basis (i) a lump-sum amount equal to the portions of
the monthly premiums that the Company would have paid on your behalf in connection with your participation in the Company’s
Plans during the twelve (12) month period after your Separation Date, and (ii) a lump-sum amount equal to $4,000, which represents
the maximum amount that the Company would have reimbursed you for out-of-pocket expenses paid by you during such twelve (12) month
period that would be within the deductible that would be applicable to you under the Company’s Plans. The two lump-sum payments
payable to you pursuant to the foregoing provisions of this paragraph shall be paid on the last regularly scheduled payroll processed
prior to the expected closing date of the merger between the Company and ArTara.

 

    

    

    

D.        The
Company agrees not to contest your application for unemployment benefits.

 

            The Severance Payment reflected in this
Agreement is intended to implement the Company’s obligation to make severance payments and provide severance benefits to
you under your employment agreement with the Company. Accordingly, the Severance Payment replaces and is in lieu of any right
that you may have to receive severance pay or severance benefits from the Company in connection with your separation of employment
from the Company.

 

3.       Compensation
and Benefits Acknowledgements. You acknowledge and agree that the Company is not obligated to continue your employment, and
that the Severance Payment is being offered as part of the separation of your employment and are in consideration of your agreements,
including the release of claims, included in this Agreement. You further acknowledge that the Severance Payment are not otherwise
due or owing to you under any Company employment agreement (oral or written) or Company policy or practice. Finally, you acknowledge
that except for the specific financial consideration set forth in this Agreement, and any regular salary and accrued but unused
vacation earned as of the Separation Date, you are not now and shall not in the future be entitled to any other compensation from
the Company including, without limitation, other wages, commissions, bonuses, stock options, equity, vacation pay, holiday pay,
paid time off or any other form of compensation or benefit.

 

4.       Return
of Company Property. By no later than the Separation Date, you agree to promptly return to the Company all Company documents
(and any copies) and property (including all electronically stored information) regardless of where such documents, information
or property is maintained. You acknowledge and agree that you shall not maintain any copies or duplicates of such documents or
information. You further acknowledge that if you were to use or disclose any of the information reflected in such items, that this
might cause immediate, substantial and irreparable harm to the Company.

 

5.        Confidentiality.
You expressly acknowledge and agree that you will keep all confidential information and trade secrets of the Company confidential;
and that you will abide by any and all common law and/or statutory obligations relating to protection and non-disclosure of the
Company’s trade secrets and/or confidential and proprietary documents and information. All other information relating in
any way to the negotiation of this Agreement, including the terms and amount of financial consideration provided for in this Agreement,
shall be held confidential by you and shall not be publicized or disclosed to any person (other than an immediate family member,
legal counsel, or financial advisor, provided that any such individual to whom disclosure is made agrees to be bound by these confidentiality
obligations), business entity, or as otherwise mandated by state or federal law.

 

6.       Other
Agreements. Subject to your adherence to the other terms and conditions of this Agreement, the Company agrees to waive enforcement
and discharge you from your obligations under any previous agreements governing post-employment non-competition and non-solicitation.

    2

    

    

 

7.        Non-Disparagement.
You agree that you will not make any statements that are professionally or personally disparaging about, or adverse to, the interests
of the Company (including its officers, directors, employees and consultants) including, but not limited to, any statements that
disparage any person, product, service, finances, financial condition, capability or any other aspect of the business of the Company,
and that you will not engage in any conduct which could reasonably be expected to harm professionally or personally the reputation
of the Company (including its officers, directors, employees and consultants).

 

8.       Release
of Claims. You hereby agree and acknowledge that by signing this Agreement and accepting the Severance Payment set forth herein,
and other good and valuable consideration provided for in this Agreement, you are waiving your right to assert any form of legal
claim against the Company and each of its past and current parents, subsidiaries, affiliates, and each of its and their respective
past and current directors, officers, members, trustees, employees, representatives, agents, attorneys, employee benefit plans
and such plans’ administrators, fiduciaries, trustees, recordkeepers and service providers, and each of its and their respective
successors and assigns, each and all of them in their personal and representative capacities (collectively the “Company Releasees”),
and you represent that you have not asserted or filed any form of legal claim against any of the Company Releasees, of any kind
related to your employment relationship with any of the Company Releasees through and including the Effective Date. Your waiver
and release herein is intended to bar any form of legal claim, charge, complaint or any other form of action (jointly referred
to as "Claims") against the Company seeking any form of relief including, without limitation, equitable relief (whether
declaratory, injunctive or otherwise), the recovery of any damages or any other form of monetary recovery whatsoever (including,
without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys’ fees
and any other costs) against any of the Company Releases related to your employment relationship with any of the Company Releasees
(or the termination thereof), up through and including the Separation Date.

 

Without limiting the generality
of the foregoing you specifically waive and release each of the Company Releasees from any Claim arising from or related to your
employment relationship with any of the Company Releasees or the termination thereof including, without limitation:

 

(i) Claims under any state (including,
without limitation, Massachusetts, or any other state where you performed work for any of the Company Releasees) or federal discrimination,
fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through
the date on which you sign this Agreement). This release is intended and shall include any Claims under the Massachusetts Fair
Employment Act (also known as Massachusetts General Laws Chapter 151B).

 

(ii) Claims under any other
state (including, without limitation, Massachusetts or any other state where you performed work for any of the Company Releasees)
or federal employment related statute, regulation or executive order (as they may have been amended through the date on which you
sign this Agreement) relating to wages, hours or any other terms and conditions of employment. This release is intended and shall
include any Claims under the Massachusetts Payment of Wages Law, (including M.G.L. Chapter 149, §§ 148, 150, all sections
of M.G.L. Chapter 149, and all sections of M.G.L. Chapter 151).

 

(iii) Claims under any state
(including, without limitation, Massachusetts or any other state where you performed work for any of the Company Releasees) or
federal common law theory; and

 

    3

    

    

(iv) Any other Claim arising
under other state or federal law.

 

Notwithstanding the foregoing,
this Section 8 shall not release any of the Company Releasees from (i) any obligation expressly set forth in this Agreement; or
(ii) as otherwise may not be released under laws such as covering unemployment compensation benefits, workers’ compensation
benefits, or vested benefits under a retirement plan governed by ERISA.

 

Nothing in this Agreement shall
bar or prohibit you from contacting, seeking assistance from or participating in any proceeding before any federal or state administrative
agency to the extent permitted by applicable federal, state and/or local law. This Agreement is not intended to, and does not govern,
any claims that cannot be released by private agreement.

 

9.       Reports
to Government Entities. Nothing in this Agreement restricts or prohibits you from initiating communications directly with,
responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations
of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or
a government agency or entity, including without limitation, the EEOC, the Department of Labor, the National Labor Relations Board,
the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Occupational
Safety and Health Administration, the U.S. Congress, any other federal, state, or local government agency or commission, and any
agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under
the whistleblower provisions of federal, state, or local law or regulation. You do not need the prior authorization of the Company
to engage in conduct protected by this Section, and you do not need to notify the Company that you have engaged in such conduct.
This Agreement does not limit your right to receive an award from any Regulator that provides awards for providing information
relating to a potential violation of the law. However, to the maximum extent permitted by law, you are waiving your right to receive
any individual monetary relief from the Company resulting from the released claims, regardless of whether you or another party
has filed them, and in the event you obtain such monetary relief, the Company will be entitled to an offset for the payments made
pursuant to this Agreement. You recognize and agree that, in connection with any such activity outlined above, you must inform
the Regulators, your attorney, a court or a government official that the information you are providing is confidential. Despite
the foregoing, you are not permitted to reveal to any third-party, including any governmental, law enforcement, or regulatory authority,
information you came to learn during the course of your employment with the Company that is protected from disclosure by any applicable
privilege, including but not limited to the attorney-client privilege and/or attorney work product doctrine. The Company does not
waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product,
and other privileged information.

 

Please take notice that federal
law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose
a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at
18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law,
or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

 

10.       Effective
Date. You have twenty-one (21) days, until January 10, 2020, to consider and accept the terms of this Agreement (although you
may choose to voluntarily execute this Agreement earlier) by signing below and returning it to Proteon Therapeutics, c/o Timothy
Noyes, President & CEO, 200 West Street, Waltham, MA 02451. Thereafter, you have seven (7) days following the execution of
this Agreement by the parties to revoke the Agreement. This Agreement shall not be effective until the date upon which the revocation
period has expired, which shall be the eighth day after you sign this Agreement (the “Effective Date”). To be effective,
the notice of revocation must be hand delivered or postmarked within the seven (7) day period and sent by certified mail, return
receipt requested, to the above-address.

 

    4

    

    

11.       Termination
of Options. You hereby acknowledge and agree that, as of the date of this Agreement, you are the holder of stock options exercisable
for shares of the Company’s common stock, which stock options were previously granted by the Company and remain outstanding
on the date of this Agreement (collectively, the “Outstanding Stock Options”). As additional consideration for the
obligations that the Company is agreeing to undertake pursuant to this Agreement, you hereby agree to cancel and terminate any
and all Outstanding Stock Options, effectively immediately upon signing this Agreement. The provisions of this Section 11 shall
apply notwithstanding anything express or implied to the contrary under the Plan or in any stock option award agreement between
you and the Company. From and after the date of this Agreement, the Outstanding Stock Options shall be terminated, cancelled and
cease to be outstanding and you shall not have any further right, title or interest in or to the Outstanding Stock Options or any
of the shares of the Company’s common stock underlying or subject to the Outstanding Stock Options.

 

12.       Entire
Agreement/Choice of Law/Enforceability. Except as otherwise expressly provided in this Agreement, this Agreement supersedes
any and all other prior oral and/or written agreements and sets forth the entire agreement between you and the Company. No variations
or modifications hereof shall be deemed valid unless reduced to writing and signed by the parties hereto. This Agreement shall
be deemed to have been made in the Commonwealth of Massachusetts, shall take effect as an instrument under seal, and the validity,
interpretation and performance of this Agreement shall be governed by, and construed in accordance with, the law of the Commonwealth
of Massachusetts, without giving effect to conflict of law principles. The terms of this Agreement are severable, and if for any
reason any part hereof shall be found to be unenforceable, the remaining terms and conditions shall be enforced in full.

 

By executing this Agreement, you
are acknowledging that you have been afforded sufficient time to understand the provisions and effects of this Agreement, that
your agreements and obligations hereunder are made voluntarily, knowingly and without duress, and that neither the Company nor
its agents or representatives have made any representations inconsistent with the provisions of this Agreement. The Company encourages
you to seek the guidance of an attorney if you need assistance understanding any provision of this Agreement.

 

[Remainder
of this Page is Blank]

 

 

 

 

 

    5

    

    

 

WHEREFORE, the parties have signed
the present Agreement, which shall have an effective date upon your signing the Agreement, as set forth below.

 

 

	 	Sincerely,       
	 	 
	 	 
	 	 
	 	By:	/s/ Timothy Noyes                        
	 	 	Timothy Noyes
	 	 	President & CEO
	 	 
	 	 
	 	Date:	  December 20, 2019                    

 

 

ACCEPTED AND AGREED TO:

 

 

 

 /s/ George Eldridge                        

Mr. George Eldridge

64 Damien Road

Wellesley, MA 02481

 

 

Date:  December 20, 2019               

 

 

 

 

6

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