Document:

Exhibit 10.19 

   

 PERSONAL GUARANTY
OF PERFORMANCE 

   

 This Personal Guaranty of Performance (this “Guaranty”)
is executed as of January 10, 2018, by Milton C. Ault, III _________ (the “Guarantor”), for the benefit of TVT CAPITAL,
LLC (“Buyer”). 

   

   

 Capitalized terms used herein, but not defined,
shall have the meanings assigned to them in the Purchase Agreement (as hereinafter defined). 

   

 RECITALS 

   

 A.
Pursuant to that Agreement for the Purchase and Sale of Future Receipts (the “Purchase Agreement”), dated of even
date herewith, between Buyer and Digital Power Corporation (“Seller”), Buyer has purchased Future Receipts
of Seller. 

   

 B.
Buyer is not willing to enter into the Purchase Agreement unless Guarantor irrevocably, absolutely and unconditionally guarantees
prompt and complete performance to Buyer of all of the obligations of Seller; and 

   

 C.
Guarantor will directly benefit from Buyer and Seller entering into the Purchase Agreement. 

   

 AGREEMENT 

   

 As an inducement to Buyer to purchase the Future
Receipts identified in the Purchase Agreement, and for other good and valuable consideration, the receipt and legal sufficiency
of which are hereby acknowledged, Guarantor does hereby agree as follows: 

   

 1.    
Defined Terms: All capitalized terms used and not otherwise defined herein shall have the meanings assigned to such
terms in the Purchase Agreement. 

   

 2.    
Guaranty of Obligations: Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Buyer prompt and
complete performance of all of Seller’s obligations under the Purchase Agreement. 

   

 3.    
Guarantor’s Other Agreements: Guarantor will not dispose, convey, sell or otherwise transfer, or cause Seller
to dispose, convey, sell or otherwise transfer, any material business assets of Seller without the prior written consent of Buyer,
which may be withheld for any reason, until receipt of the entire Purchased Amount. Guarantor hereby agrees to pay all costs and
attorney’s fees incurred by Buyer in connection with any actions commenced by Buyer to enforce its rights or incurred in
any action to defend its performance under the Purchase Agreement and this Guaranty. This Guaranty is binding upon Guarantor,
and Guarantor’s heirs, legal representatives, successors and assigns. If there is more than one Guarantor, the obligations
of the Guarantors hereunder shall be joint and several. The obligation of Guarantor shall be unconditional and absolute, regardless
of the unenforceability of any provision of any agreement between Seller and Buyer, or the existence of any defense, setoff or
counterclaim which Seller may assert. Buyer is hereby authorized, without notice or demand and without affecting the liability
of Guarantor hereunder, to at any time renew or extend Seller’s obligations under the Purchase Agreement or otherwise modify,
amend or change the terms of the Purchase Agreement. Guarantor is hereby notified that a negative credit report reflecting on
his/her credit record may be submitted to a credit reporting agency if the terms of this Guaranty are not honored by the Guarantor. 

   

 4.    
Waiver; Remedies: No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Guaranty
shall operate as a waiver, nor shall any single or partial exercise of any right under this Guaranty preclude any other or further
exercise of any other right. The remedies provided in this Guaranty are cumulative and not exclusive of any remedies provided
by law or equity. In the event that Seller fails to perform any obligation under the Purchase Agreement, Buyer may enforce its
rights under this Guaranty without first seeking to obtain performance for such default from Seller or any other guarantor. 

   

 5.    
Acknowledgment of Purchase: Guarantor acknowledges and agrees that the Purchase Price paid by Buyer to Seller in exchange
for the Purchased Amount is a purchase of the Purchased Amount and is not intended to be treated as a loan or financial accommodation
from Buyer to Seller. Guarantor specifically acknowledges Buyer is not a lender, bank or credit card processor, and that Buyer
has not offered any loans to Seller, and Guarantor waives any claims or defenses of usury in any action arising out of this Guaranty.
Guarantor acknowledges the Purchase Price paid to Seller is good and valuable consideration for the sale of the Purchased Amount
of Future Receipts. 

   

    
	Initials:	 	 	10	TVT CAPITAL, LLC
	 	 	 	 	 

     

    

   

 6.    
Governing Law and Jurisdiction: This Guaranty shall be governed by, and constructed in accordance with, the internal
laws of the State of New York without regard to principles of conflicts of law. Except as provided in Section 9 of this Guaranty,
Guarantor submits to the exclusive jurisdiction and venue of the state or federal courts having jurisdiction over any city/county
in the State of New York of any claims or actions arising, directly or indirectly, out of or related to this Guaranty. The parties
stipulate that the venues referenced in this Agreement are convenient. The parties further agree that the mailing by certified
or registered mail, return receipt requested, of any process required by any such court will constitute valid and lawful service
of process against them, without the necessity for service by any other means provided by statute or rule of court, but without
invalidating service performed in accordance with such other provisions. 

   

 7.    
JURY WAIVER: THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY
MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR ITS ENFORCEMENT,
EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. THE PARTIES ACKNOWLEDGE
THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF
THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS. 

   

 8.    
CLASS ACTION WAIVER: THE PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE
OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO
BE AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE
ACTION AGAINST THE OTHER, THE PARTIES AGREE THAT: (I) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES
OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT);
AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN
ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION. 

   

 9.    
ARBITRATION: IF BUYER, SELLER OR ANY GUARANTOR REQUESTS, THE OTHER PARTIES AGREE TO ARBITRATE ALL DISPUTES AND CLAIMS
ARISING OUT OF OR RELATING TO THIS AGREEMENT. IF BUYER, SELLER OR ANY GUARANTOR SEEKS TO HAVE A DISPUTE SETTLED BY ARBITRATION,
THAT PARTY MUST FIRST SEND TO THE OTHER PARTY, BY CERTIFIED MAIL, A WRITTEN NOTICE OF INTENT TO ARBITRATE. IF BUYER, SELLER OR
ANY GUARANTOR DO NOT REACH AN AGREEMENT TO RESOLVE THE CLAIM WITHIN 30 DAYS AFTER THE NOTICE IS RECEIVED, BUYER, SELLER OR ANY
GUARANTOR MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION
FORUM (“NAF”). BUYER WILL PROMPTLY REIMBURSE SELLER OR THE GUARANTOR ANY ARBITRATION FILING FEE, HOWEVER, IN THE EVENT
THAT BOTH SELLER AND THE GUARANTOR MUST PAY FILING FEES, BUYER WILL ONLY REIMBURSE SELLER’S ARBITRATION FILING FEE AND,
EXCEPT AS PROVIDED IN THE NEXT SENTENCE, BUYER WILL PAY ALL ADMINISTRATION AND ARBITRATOR FEES. IF THE ARBITRATOR FINDS THAT EITHER
THE SUBSTANCE OF THE CLAIM RAISED BY SELLER OR THE GUARANTOR OR THE RELIEF SOUGHT BY SELLER OR THE GUARANTOR IS IMPROPER OR NOT
WARRANTED, AS MEASURED BY THE STANDARDS SET FORTH IN FEDERAL RULE OF PROCEDURE 11(B), THEN BUYER WILL PAY THESE FEES ONLY IF REQUIRED
BY THE AAA OR NAF RULES. SELLER AND THE GUARANTOR AGREE THAT, BY ENTERING INTO THIS AGREEMENT, THEY ARE WAIVING THE RIGHT TO TRIAL
BY JURY. BUYER, SELLER OR ANY GUARANTOR MAY BRING CLAIMS AGAINST ANY OTHER PARTY ONLY IN THEIR INDIVIDUAL CAPACITY, AND NOT AS
A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. FURTHER, BUYER, SELLER AND ANY GUARANTOR AGREE
THAT THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER
ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING, AND THAT IF THIS SPECIFIC PROVISION IS FOUND UNENFORCEABLE, THEN THE ENTIRETY
OF THIS ARBITRATION CLAUSE SHALL BE NULL AND VOID. 

   

 10. 
RIGHT TO OPT OUT OF ARBITRATION: SELLER AND GUARANTOR(S) MAY OPT OUT OF THIS CLAUSE. TO OPT OUT OF THIS ARBITRATION
CLAUSE, SELLER AND EACH GUARANTOR MUST SEND BUYER A NOTICE THAT THE SELLER AND EACH GUARANTOR DOES NOT WANT THIS CLAUSE TO APPLY
TO THIS AGREEMENT. FOR ANY OPT OUT TO BE EFFECTIVE, SELLER AND EACH GUARANTOR MUST SEND AN OPT OUT NOTICE TO THE FOLLOWING ADDRESS
BY REGISTERED MAIL, WITHIN 14 DAYS AFTER THE DATE OF THIS AGREEMENT: BUYER – ARBITRATION OPT OUT, TVT CAPITAL, LLC 30 WALL
ST, SUITE 801, NEW YORK, NY 10005, 

   

    
	Initials:	 	 	11	TVT CAPITAL, LLC
	 	 	 	 	 

     

    

   

 ATTENTION: LEGAL DEPARTMENT. 

   

 11.  
SERVICE OF PROCESS. IN ADDITION TO THE METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW &
RULES (“CPLR”), GUARANTOR HEREBY CONSENTS TO SERVICE OF PROCESS UPON IT BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, SERVICE HEREUNDER SHALL BE COMPLETE UPON GUARANTOR’S ACTUAL RECEIPT OF PROCESS OR UPON BUYER’S RECEIPT
OF THE RETURN THEREOF BY THE UNITED STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. GUARANTOR MUST PROMPTLY NOTIFY BUYER, IN
WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS CAN BE MADE. SERVICE BY BUYER TO THE LAST KNOWN ADDRESS
SHALL BE SUFFICIENT. GUARANTOR WILL HAVE (30) CALENDAR DAYS AFTER SERVICE HEREUNDER IS COMPLETE IN WHICH TO RESPOND. FURTHERMORE,
GUARANTOR EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S) UNDER AND PURSUANT TO
THIS AGREEMENT FOR THE PURCHASE AND SALE OF FUTURE RECEIVABLES SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT
FOR THE PURCHASE AND SALE OF FUTURE RECEIVABLES. 

   

 12.  
Severability: If for any reason any court of competent jurisdiction finds any provisions of this Guaranty to be void
or voidable, the parties agree that the court may reform such provision(s) to render the provision(s) enforceable ensuring that
the restrictions and prohibitions contained in this Guaranty shall be effective to the fullest extent allowed under applicable
law. 

   

 13.  
Opportunity for Attorney Review: The Guarantor represents that it has carefully read this Guaranty and has, or had
a reasonable opportunity to, consult with its attorney. Guarantor understands the contents of this Guaranty, and signs this Guaranty
as its free act and deed. 

   

 14.  
Counterparts and Facsimile Signatures: This Guaranty may be signed in one or more counterparts, each of which shall
constitute an original and all of which when taken together shall constitute one and the same agreement. Facsimile or scanned
documents shall have the same legal force and effect as an original and shall be treated as an original document for evidentiary
purposes. 

	   	   	   	   	   	   
	   	 For Individual Guarantors - 
	   	 Guarantor: 	 Milton
    C. Ault, III 	 (Print Name) 
	   	 Signature: 	   	   	   
	   	   	   	   	   	   
	 	 	 	 	 	 
	   	 For Individual Guarantors - 	   
	   	 Guarantor: 	   	   	 (Print Name) 
	   	 Signature: 	   	   	   
	   	   	   	   	   	   
	   	 For Corporate Guarantors (or other entities) - 	   
	   	 Guarantor: 	   	   	   
	   	 By: 	   	   	   	   
	   	 Print Name of Signer: 	   	   
	   	 Its: 	   	   	   	 (Official Position) 

 

	Initials:	 	 	12	TVT CAPITAL, LLCExhibit 10.20 

   

 Page: 1 Deal Application ID: 

   

   

   

 65
W 36 St, Suite 12 New York, NY 10018 

   

 Powered
By 

Libertas Funding LLC 

 382
Greenwich Avenue Suite 2 Second Floor Greenwich CT 

   

 FUTURE
RECEIVABLES SALE AGREEMENT 

   

 This FUTURE RECEIVABLES SALE AGREEMENT
(“Agreement”) dated 1/18/2018, is made by and between Libertas Funding LLC, a Connecticut limited liability company
(“Purchaser”), Merchant (Merchant Information below), and the Guarantor(s)/Owner(s), as identified in the Owner/Guarantor
Information below. 

   

 Merchant Information 

   

	 Merchant Legal Name: DIGITAL POWER CORPORATION 	 DBA Name: 
	 Entity Type: CORPORATION 	 FEIN:  
	 State Of Incorp: CA 	 Bank Name: 
	 Address: 48430 Lakeview Blvd , FREMONT, CA, 94538 	 Phone:  

   

 OWNER/GUARANTOR INFORMATION (referred
to individually or collectively as the (“Owner”) 

   

	 Name of Owner Guarantor: Milton Ault 	 Cell Phone:  	 Social Security # :  
	 Home Address :  	 City/State :  	 Zip Code :  
	 Ownership % :  	 Email :  	   

   

	 Name of Owner Guarantor(2): Kristine Ault 	 Cell Phone:  	 Social Security # : 
	 Home Address :  	 City/State :  	 Zip Code : 
	 Ownership % : 	 Email :  	   

   

	 Amount
    Sold 	 $594,000.00 	 The
    dollar value of the Future Receivables 
	 Discount
    Factor 	 1.485 	 The
    risk adjustment to the Amount Sold that determines the Futures Receivables Discount 
	 Future
    Receivable Discount 	 $194,000.00 	 The
    difference in value between the Purchase Price and the Amount Sold 
	 Purchase
    Price 	 $400,000.00 	 The
    dollar amount Purchaser is paying for the Amount Sold. 
	 Due
    Diligence Price Adjustment 3.0% 	 $12,000.00 	 Additional
    discount given to Purchaser for due diligence. 
	 Direct
    Payments to Third Parties/Renewals 	 $0.00 	 Paid
    to Other Funders. 
	 Total
    Amount Sent to Merchant 	 $388,000.00 	 Net
    of Discount and Direct Payments to 3rd Parties: 
	 Specified
    Percentage 	 20% 	 Percentage
    of Future Receivables to be remitted to purchaser on a daily basis 
	 Estimated
    Average Monthly Future Receivables 	 $1,754,280.04 	 Future
    Receivables Expected Per Month based on detailed analysis of Merchant’s business and attestation from Merchant 
	 Expected
    daily Remittance 	 $4,714.29 	 Estimated
    Average Monthly Receivables Multiplied by Specified Percentage Divided by Number Working Days in Month (21) 
	 Early
    Remittance Discount 	 1.180
    @ 2 months 	 Discount
    Paid to Merchant for remitting Future Receivables Early 
	 Expected
    Remittance Term 	 6 	 Expected
    term of this agreement based on the specified percentage 
	 Remittance
    Choice 	 ACH 	 Remittance
    can occur via ACH, Credit Card Split or Lockbox 

 Note: The bold type terms in
the tables above and below shall constitute defined terms with respect to this Agreement. PLEASE NOTE THAT THE PURCHASER WILL
NOT REMIT MORE THAN THE EXPECTED DAILY REMITTANCE PER DAY WITHOUT THE CONSENT OF THE MERCHANT. 

   

 As explained in more detail in the
Terms and Conditions stated hereinafter, Merchant will be in default of this Agreement if Merchant does or causes to be done any
of the following during the term of this Agreement (see below, including but not limited to paragraph 8 and 10 for a list of the
all of the events of default): 

   

		 ● 	 Change or close Merchant’s
                                         bank account 

		 ● 	 Change (or add a) credit card processors 

		 ● 	 Block Purchaser ACH access to Merchant’s
                                         bank account 

		 ● 	 Sell Merchant’s business prior
                                         to full remittance of Future Receivables above 

		 ● 	 Deliberately disconnecting Purchaser’s
                                         bank monitoring software 

		 ● 	 Retain a third-party debt consolidator
                                         to negotiate a change to the terms and conditions of this Agreement 

		 ● 	 Sell merchants future receivables
                                         to another person or entity 

   

     

     

    

   

 Page:
2 Deal Application ID: 

   

 PURCHASE AMOUNT DISCOUNTS AND
REFUNDS. The following terms are additional costs, fees or refunds that may be incurred in connection with this Agreement
upon certain circumstances, as set forth below: 

   

		 a. 	 Returned Item Refund
                                         - $35.00 Applicable in a circumstance in which Merchant has not agreed with
                                         Purchaser to a change in the Remittance Amount and does not have sufficient collected
                                         receivable funds in its Account to remit to Purchaser the agreed Remittance Amount. Upon
                                         the fourth Returned Item Refund imposed under this section, Merchant shall be deemed
                                         in Breach under the Agreement. 

		 b. 	 Blocked Account Refund - $100.00 Applicable
                                         in a circumstance in which Merchant BLOCKS its Account from Purchasers debit ACH or changes
                                         its designated Account cutting off Purchaser from obtaining delivery of the agreed Remittance
                                         Amount. This action places Merchant in Breach under the Agreement. 

		 c. 	 Breach Refund : $2,500 In the event of a
                                         breach of this Agreement, this amount will be added to the total amount to be remitted
                                         by the Merchant, effectively providing a breach-based discount to the Purchaser. 

   

 TERMS AND CONDITIONS IN ADDITION
TO THE ABOVE TERMS: 

   

		 1. 	 Sale. In consideration
                                         of the payment of the Purchase Price specified above, Purchaser purchases from Merchant,
                                         and Merchant sells to Purchaser, the Specified Percentage of Merchant’s future
                                         accounts, contract rights and any other obligations arising from or relating to the payment
                                         of monies from Merchant’s customers and/or other third-party payers including payments
                                         made by cash, check, electronic transfer or other form of monetary payment to Merchant
                                         in the ordinary course of the Merchant’s business, or otherwise, for the payment
                                         of Merchant’s sale of goods or services (“ACH Receivables”). Such payment
                                         of monies shall include the use by Merchant’s customers of any Payment Device (as
                                         defined herein) to purchase Merchant’s products and/or services that are processed
                                         by Merchants’ card processor anytime during which the Amount Sold is outstanding
                                         (“Credit Card Receivables”, ACH Receivables and Credit Card Receivables are
                                         hereafter collectively or independently referred to as “Future Receivables”).
                                         Payment Device includes credit cards, charge cards, debit cards, prepaid cards, benefit
                                         cards, or any other type of payment card as well as any virtual payment card or any electronic
                                         payment device. Merchant agrees to remit to Purchaser in accordance with the terms of
                                         this Agreement the Daily Percentage of the Future Receivables specified above until the
                                         Amount Sold has been forwarded to Purchaser. Purchaser purchases the Future Receivables
                                         free and clear of all claims, liens or encumbrances of any kind whatsoever. Merchant
                                         agrees that this Agreement applies to Merchant’s entire right, title and interest
                                         in the Future Receivables up to the Amount Sold. The terms and conditions of this Agreement
                                         shall remain in full force and effect until the Amount Sold has been delivered to Purchaser
                                         subject to the terms of this Agreement. Merchant and Purchaser agree that this sale and
                                         purchase is final and Merchant has no right to repurchase or resell the Future Receivables
                                         or any portion thereof. Merchant, any individual signing this agreement and Purchaser
                                         (each individually referred to herein as “Party” and collectively referred
                                         to herein as “Parties”) agree that the Purchase Price paid to Merchant is
                                         the price paid to purchase Merchant’s Future Receivables and that the transaction
                                         contemplated by this Agreement is a purchase and sale of the Future Receivables. The
                                         Parties hereby agree that the transaction contemplated by this Agreement is not a loan,
                                         a forbearance of money lent or any similar loan or lending transaction. Merchant understands,
                                         agrees and represents that this transaction is made for business or commercial purposes
                                         only. 

		 2. 	 Remittance of Amount Sold. The
                                         Merchant hereby agrees to deliver the Amount Sold to the Purchaser as (i) the Expected
                                         Daily Remittance (based on a Specified Percentage) of Future Receivables by debiting,
                                         via ACH transaction, Merchant’s bank account (a “Direct Debit”). Purchaser,
                                         in its sole discretion, shall choose whether to receive the Amount Sold from the Merchant
                                         either by Direct Split or Direct Debit, (ii) as a Specified Percentage of daily amount
                                         of Credit Card Receivables directly from Merchant’s card processor (“Credit
                                         Card Split”) or (iii) daily amount of Future Receivables directly through a Lockbox
                                         arrangement “Lockbox”); or Purchaser may, in its sole discretion, upon
                                         written notice to Merchant, change the method by which it will accept the remittance
                                         of the Amount Sold, and provide the Merchant with updated remittance instructions. The
                                         following details each remittance type: 

   

		 a. 	 If Purchaser chooses to receive the remittance
                                         of the Amount Sold via a Direct Debit as the Expected Daily Remittance (based on a Specified
                                         Percentage) then Merchant agrees as follows: 

		 1. 	 Bank Account. Merchant
                                         shall deposit all of Merchant’s Future Receivables into a bank account approved
                                         by Purchaser (the “Account”). 

		 2. 	 Automated Clearinghouse for Expected Daily Remittance. The
                                         Merchant hereby authorizes Purchaser and its agents to initiate Automated Clearinghouse
                                         (“ACH”) payments equal to the Expected Daily Remittance of all deposits made
                                         into the Account each business day until the Purchaser has received Future Receivables
                                         equal to the Amount Sold. 

		 3. 	 Merchant to Maintain the
                                         Account. Merchant understands that it is responsible for ensuring that the Expected
                                         Daily Amount to be debited by Purchaser remains in the Account and will be held responsible
                                         for any fees incurred by Purchaser resulting from a rejected ACH attempt or an Event
                                         of Default (as defined herein). 

		 4. 	 Overdraft or Rejected Transactions the Responsibility
                                         of Merchant. The Purchaser is not responsible for any overdrafts or rejected transactions
                                         that may result from Purchaser ACH debiting the Expected Daily Remittance Amount. 

   

     

     

    

   

 Page: 3 Deal Application
ID: 

   

		 5. 	 Agreed Changes to the Expected Daily Remittance Amount.
                                         Unless mutually agreed, in writing, and only based on a documented change in the
                                         Merchant’s Future Receivables, Purchaser will continue to pull the Expected Daily
                                         Remittance amount. However, if Merchant provides written evidence, in the form
                                         of a complete set of invoices (or its equivalent), or natural events that have changed
                                         or impaired the Merchant’s ability to generate Future Receivables, and only with
                                         ongoing electronic surveillance, the Purchaser will agree to adjust the amount of the
                                         Expected Daily Remittance. It is the Merchant’s responsibility to communicate
                                         this at least one week in advance of a requested change and to cooperate with the Purchaser
                                         in good faith. 

		 6. 	 ACH authorization. The Merchant shall provide all
                                         necessary ACH authorizations to the Purchaser as set forth in Appendix A to this Agreement. 

   

		 b. 	 If Purchaser chooses to
                                         accept the remittance of the Specified Percentage of the Amount Sold through Credit Card
                                         Split, Merchant will enter into an agreement with a card processor (“Processor”)
                                         acceptable to Purchaser, and authorize Processor to pay the Specified Percentage directly
                                         to Purchaser until Purchaser receives the total Amount Sold. Merchant acknowledges that
                                         Processor will be acting on behalf of Purchaser to collect the Specified Percentage.
                                         Merchant irrevocably grants Processor the right to hold the Specified Percentage and
                                         to pay Purchaser directly (at, before or after the time Processor credits or remits to
                                         Merchant the balance of the Amount Sold not sold by Merchant to Purchaser) until Purchaser
                                         receives the entire Amount Sold. Processor may provide Purchaser with all information
                                         Purchaser deems pertinent. Merchant agrees to hold Purchaser harmless for the Processor’s
                                         actions or omissions. 

		 c. 	 If Purchaser chooses to accept the remittance through a
                                         Lockbox, Purchaser is authorized by Merchant to receive remittance to a specified bank
                                         account (“Lockbox”) directly from the Merchant’s Processor as well
                                         as Merchant’s invoiced customers (the “Merchant’s Counterparties”).
                                         This Authorization shall continue until the Purchaser has received an amount equal to
                                         the Purchased Amount, plus any additional remittance required. Merchant further authorizes
                                         the Merchant’s Counterparties to provide to the Purchaser and its agents all information
                                         necessary to Purchaser to determine the amount to be paid to the Merchant and initiate
                                         such ACH payments to the Specified Account. Upon receipt of each ACH transfer into the
                                         Lockbox, Purchase will retain the Specified Percentage as well as the required minimum
                                         balance for the Lockbox (the “Required Minimum Balance”). Purchaser will
                                         ACH transfer the difference between the received funds and the retained funds plus the
                                         minimum balance into the Account. 

		 3. 	 Read Only Electronic Bank Software. Merchant will
                                         provide Purchaser with ongoing read only electronic surveillance on a daily basis for
                                         the entire period during which this Agreement is in effect. Any change to Merchant’s
                                         bank account, access code, or permissions from its bank should be remedied as soon as
                                         possible. Merchant agrees to provide Purchaser all required access codes and allow Purchaser
                                         to electronically monitor the Account (e.g., using the anonymous read-only Yodlee link
                                         (or Decision Logic) provided by the Purchaser to the Merchant). This access both ensures
                                         that the Merchant is depositing its Future Receivables into the Account and provides
                                         written evidence to enable the Purchaser to be able to make adjustments to the Expected
                                         Remittance Amount, if necessary, upon mutual agreement with the Merchant. If the electronic
                                         access to Merchant’s Account is temporarily disabled for any reason, Merchant will,
                                         as soon as possible, work with the Purchaser to re-establish the link between the Account
                                         and the Purchaser. Any change to Merchants’ Account, access codes or permission
                                         from the bank to access the Account or receive ACH transactions from the Account must
                                         be remedied immediately. The failure by the Merchant to comply with this Section 3 shall
                                         constitute a breach/Event of Default of this Agreement. 

		 4. 	 Timing, Method of Payment, Processing Trial. Merchant
                                         and Purchaser agree that Purchaser shall pay the Purchase Price or any portion thereof
                                         to Merchant only at a time, and through a method, acceptable to Purchaser and at Purchaser’s
                                         sole discretion. Merchant and Purchaser also agree that Purchaser, in its sole discretion,
                                         may refuse to pay the Purchase Price or any portion thereof to Merchant and cancel this
                                         Agreement at any time prior to the Purchase Price being paid. Prior to paying the Purchase
                                         Price, to the extent that the Purchaser chooses to receive its Amount Sold pursuant to
                                         a Direct Split, as described above, Purchaser may conduct a site inspection and shall
                                         conduct a processing trial (the “Processing Trial”) to determine whether
                                         the Daily Percentage will be correctly processed and/or reported by Merchant’s
                                         card processor or bank to Purchaser. In the event Purchaser determines to conduct a Processing
                                         Trial, Merchant acknowledges and agrees that Purchaser will make its final decision,
                                         in its sole and absolute discretion, whether to purchase the Future Receivables after
                                         completion of the Processing Trial. If Purchaser conducts a Processing Trial and determines
                                         not to purchase the Future Receivables, any receivables remitted to Purchaser during
                                         the Processing Trial shall be returned to Merchant. 

		 5. 	 Waiver. There shall be effected no waiver by failure
                                         on the part of Purchaser to exercise, or delay in exercising, any right under this Agreement,
                                         nor shall any single or partial exercise by Purchaser of any right under this Agreement
                                         preclude any other future exercise of any right. The remedies provided hereunder are
                                         cumulative and not exclusive of any remedies provided by law or equity. 

		 6. 	 Authorization to File Notice of Sale and Security Interest.
                                         Merchant hereby authorizes Purchaser to file one or more financing statement pursuant
                                         to the Uniform Commercial Code (UCC) to evidence -and perfect the sale of the Future
                                         Receivables and any continuation statements or amendments thereto. The UCC financing
                                         statement shall state that the sale of the Future Receivables is intended to be a sale
                                         and not an assignment for security. 

		 7. 	 Power of Attorney. Merchant
                                         irrevocably appoints Purchaser as its agent and attorney-in-fact with full authority
                                         to take any action or execute any instrument or document to settle all obligations due
                                         to Purchaser from any third party, or any breach by Merchant set forth in Section 10
                                         or any other section of this Agreement or the occurrence of an event of default as described
                                         and defined in this Agreement, including, without limitation (i) to obtain and adjust
                                         insurance; (ii) to collect monies due or to become due under or in respect of any of
                                         the Collateral; to receive, endorse and collect any checks, notes, drafts, instruments,
                                         documents or chattel paper in connection with clause (i) or (ii) above; (iv) to sign
                                         Merchant’s name on any invoice, bill of lading or assignment directing customers
                                         or account debtors to make payment directly to Purchaser; and (v) to file any claims
                                         or take any action or institute any proceeding which Purchaser may deem necessary for
                                         the collection of any of the unpaid Amount Sold, or otherwise to enforce its rights with
                                         respect to the payment of the Amount Sold. 

   

     

     

    

   

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		 8. 	 Refunds and Purchaser’s Risk. Purchaser does
                                         NOT CHARGE ANY ORIGINATION OR BROKER FEES. If Merchant is charged such a fee, it is not
                                         being charged by Purchaser or an agent of Purchaser. Additionally, because this is not
                                         a loan, Purchaser does not charge any interest, finance charges, points, late fees or
                                         similar fees (except as permitted by applicable law in connection with civil judgments).
                                         Purchaser is purchasing the Future Receivables at a discount. Because the transaction
                                         evidenced by this Agreement is not a loan, there are no specific scheduled payments and
                                         no repayment term. If Merchant’s business slows down and Merchant’s Future
                                         Receivables decrease or if Merchant closes its business or ceases to process Payment
                                         Devices and Merchant has not violated any of the representations, warranties and covenants
                                         provided in paragraph 10 below, there shall be no default or breach of this Agreement.
                                         Purchaser is purchasing the Future Receivables and Purchaser assumes the risk that Merchant’s
                                         business may fail or be adversely affected by conditions outside the control of Merchant
                                         provided Merchant has not breached a representation, warranty or covenant set forth in
                                         paragraph 10 below. A returned item refund of $35.00 will be assessed if, for any reason,
                                         (a) a check, draft or similar instrument issued by the Merchant or an individual that
                                         signs this Agreement is not honored or cannot be processed; or (b) an electronic debit
                                         is returned unpaid or cannot be processed. Merchant and any individual that signs this
                                         Agreement authorize Purchaser to resubmit returned payments in its discretion. At Purchaser’s
                                         option, Purchaser will assess this fee the first time a payment is not honored or paid,
                                         even if it is later honored or paid following resubmission. Any check, draft or similar
                                         instrument may be collected electronically if returned for insufficient or uncollected
                                         funds. Additionally, a blocked account refund of $100.00 will be assessed as described
                                         above as well as a breach refund of $2,500.00 in the event that the Merchant violates
                                         the terms of this agreement, which violation remains uncured for more than 5 days. These
                                         refund will be paid in order to reimburse the Purchaser for the costs that it incurs
                                         in connection with returned items, blocked accounts and breaches, respectively. 

		 9. 	 Right to Cancel. Merchant may cancel this transaction
                                         at any time prior to midnight of the fifth business day after Purchaser forwards the
                                         Purchase Price to Merchant. In order to cancel the transaction, Merchant must provide
                                         notice to the Purchaser and return the full Purchase Price to Purchaser within five days
                                         of receipt of the Purchase Price. 

		 10. 	 Merchant’s Representations, Warranties
                                         and Covenants. Merchant represents, warrants and covenants that as of the date and
                                         during the term of this Agreement: (i) the Future Receivables are not subject to any
                                         claims, charges, liens, restrictions, encumbrances or security interests of any nature
                                         whatsoever; (ii) Merchant will not sell the Future Receivables to another person or entity;
                                         (iii) Merchant will not conduct business under any name other than as disclosed herein,
                                         shall not change its business location without the prior written consent of Purchaser,
                                         and shall not temporarily close its business for renovations or other purposes; (iv)
                                         Merchant will not change or add credit card processors or change the Account without
                                         the prior written approval of Purchaser; (v) Merchant will not take any action to intentionally
                                         discourage the use of credit cards, debit cards or other payment cards; (vi) Merchant
                                         will not undertake any transaction involving the sale of Merchant, either by an issuance,
                                         sale or transfer of ownership interests in Merchant that results in a change in ownership
                                         or voting control of Merchant, or by a sale or transfer of substantially all of the assets
                                         of Merchant; (vii) Merchant will not voluntarily permit another person or company, including
                                         without limitation a franchisor company (if Merchant is a franchisee), to assume or take
                                         over the operation and/or control of the Merchant’s business or business locations;
                                         (viii) Merchant is not currently contemplating the filing of a bankruptcy proceeding
                                         or closing Merchant’s business and Merchant has not retained any attorney, other
                                         consultant or professional to provide any advice, assistance or planning with respect
                                         to the filing of a bankruptcy; (ix) all information provided by Merchant to Purchaser
                                         in this Agreement, application, interview with Purchaser or otherwise and all of Merchant’s
                                         financial statements and other financial documents provided to Purchaser are true and
                                         correct and accurately reflect Merchant’s financial condition and results of operations;
                                         (x) Merchant will possess and maintain insurance in such amounts and against such risks
                                         as are necessary to protect its business and shall show proof of such insurance upon
                                         demand; (xi) Merchant has all permits, licenses, approvals, consents and authorizations
                                         necessary to conduct its business and will promptly pay all necessary taxes, including
                                         but not limited to employment and sales and use taxes; (xii) Merchant and the person(s)
                                         signing this Agreement on behalf of Merchant have full power and authority to enter into
                                         and perform the obligations under this Agreement; (xiii) Merchant will provide Purchaser
                                         copies of all documents related to Merchant’s card processing activity or financial
                                         and banking affairs within five (5) days of a request by Purchaser; (xiv) Merchant will
                                         permit Purchaser to conduct a site inspection of Merchant’s business, including
                                         an inspection of Merchant’s credit card terminals, at any reasonable time during
                                         the term of this Agreement without notice to Merchant; (xv) Merchant will not take any
                                         action to cause the Future Receivables to be settled or delivered to any bank account
                                         other than the bank account that the Future Receivables are being settled or delivered
                                         to as of the date of this Agreement and in accordance with the terms of this Agreement;
                                         (xvi) Merchant will not enter into any financing agreement wherein and whereby the repayment
                                         terms of the agreement require Merchant to make daily or weekly payments (NO “STACKING”);
                                         (xvii) Merchant will conduct its business consistent with past practice and shall not
                                         take any action that would have an adverse effect on the use, acceptance, or authorization
                                         of any Payment Device for the purchase of Merchants products or services; (xviii) Merchant
                                         has not, will not and is not contemplating retaining/paying in any way a third-party
                                         debt consolidator, nor has the Purchaser consulted with nor will the Purchaser consult
                                         with, a third-party debt consolidator in contemplation of negotiating a change to the
                                         terms and conditions of this Agreement. Merchant understands clearly that the breach
                                         of any of the foregoing shall constitute a breach/event of default under this Agreement;
                                         (xviv) Merchant will not block Purchaser from receiving/requesting ACH remittances from
                                         Merchant’s Account and will act in good faith to enable Purchaser to access at
                                         all times the Account for purposes of electronic surveillance; and (xvv) has disclosed
                                         any condition that has resulting in or would result in a material adverse change to Merchant’s
                                         business and knows of no condition and there is no condition which is likely to result
                                         in a material adverse change to its business. Merchant understands that the violation
                                         of any of these covenants at any time would constitute a breach of this Agreement. Additionally,
                                         if any of the representations above are not true as of the date hereof, this would also
                                         constitute a breach of this Agreement. 

 TO THE EXTENT THAT INFORMATION
PROVIDED BY THE MERCHANT THAT IS FALSE OR MISLEADING, MERCHANT SHALL BE DEEMED TO BE IN BREACH OF THIS AGREEMENT AND PURCHASER
SHALL BE ENTITLED TO ANY REMEDIES UNDER LAW. ANY MISREPRESENTATION MADE BY MERCHANT OR OWNER OR ANY REPRESENTATIVES OF MERCHANT
OR OWNER IN CONNECTION WITH THIS AGREEMENT MAY CONSTITUTE A SEPARATE CAUSE OF ACTION FOR FRAUD OR INTENTIONAL MISREPRESENTATION. 

   

     

     

    

   

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		 11. 	 Specified Percentage. Purchaser agrees to accept
                                         the remittance of the Specified Percentage in one of the following ways: (i) directly
                                         from Merchant’s card processor; (ii) by debiting the Merchant’s bank account;
                                         or (iii) by debiting a deposit account established by Merchant that is approved by Purchaser.
                                         Purchaser may decide in its sole discretion which of the three methods it will accept
                                         for the remittance of the Specified Percentage and will notify Merchant prior to delivering
                                         the Purchase Price to Merchant. If Purchaser agrees to accept the remittance of the Specified
                                         Percentage directly from the Merchant’s card processor, Merchant agrees to enter
                                         into an agreement with a card processor acceptable to Purchaser (“Processor”)
                                         that authorizes Processor to pay the Specified Percentage directly to Purchaser rather
                                         than to Merchant until the Amount Sold has been forwarded by Processor to Purchaser.
                                         This authorization shall be irrevocable, absolute and unconditional. Merchant hereby
                                         irrevocably grants Processor the right to hold the Specified Percentage and to pay Purchaser
                                         directly (at, before or after the time Processor credits or remits to Merchant the balance
                                         of the Future Receivables not sold by Merchant to Purchaser) until the entire Amount
                                         Sold has been forwarded to Purchaser. Merchant authorizes Purchaser to act as Merchant’s
                                         agent for purposes of accessing and retrieving transaction history information regarding
                                         Merchant from Processor and any additional card processors Merchant may utilize during
                                         the term of this Agreement. Merchant acknowledges and agrees that Processor may provide
                                         Purchaser with Merchant’s Payment Device processing history, including without
                                         limitation Merchant’s chargeback experience and any communications about Merchant
                                         received by Processor from a card processing system. Merchant acknowledges that Purchaser
                                         does not have any power or authority to control the Processor’s actions with respect
                                         to the authorization, clearing, settlement and other processing of transactions and that
                                         Purchaser is not responsible for the Processor’s actions. Merchant agrees to hold
                                         Purchaser harmless for the Processor’s actions or omissions. If Purchaser agrees
                                         to accept the remittance of the Specified Percentage by debiting the Merchant’s
                                         bank account, Merchant irrevocably authorizes Purchaser or its designated successor or
                                         assignee to withdraw the Specified Percentage by initiating a debit via the Automatic
                                         Clearing House (ACH) system to the Merchants’ bank account (as listed in Merchant’s
                                         application) or such other bank account that Merchant maintains (“Bank Account”).
                                         Merchant agrees to complete and execute a written ACH authorization (the “ACH Authorization”)
                                         permitting Purchaser to debit the Bank Account pursuant to the terms of this Agreement.
                                         Any such ACH Authorization is incorporated into and made a part of this Agreement. In
                                         the event Purchaser withdraws an incorrect amount from Merchant’s Bank Account,
                                         Merchant authorizes Purchaser to credit the Bank Account for the appropriate amount.
                                         Merchant and each Guarantor also authorize Purchaser to act as an agent for purposes
                                         of accessing and retrieving account activity and account balance information from any
                                         bank accounts of Merchant or Guarantor(s). If Purchaser agrees to accept the remittance
                                         of the Specified Percentage by debiting a deposit account established by Merchant that
                                         is approved by Purchaser (“Approved Account”), Merchant agrees to complete
                                         all necessary forms to establish the Approved Account. Merchant acknowledges and agrees
                                         that any funds deposited into the Approved Account by Merchant’s card processor
                                         will remain in the Approved Account until the Specified Percentage is withdrawn by Purchaser
                                         and then the remaining funds, minus any amount required to maintain the minimum balance
                                         for the Approved Account, will be forwarded to Merchant’s Bank Account. If the
                                         Approved Account requires a minimum account balance, Purchaser may, in its sole discretion,
                                         fund the required minimum balance for the Approved Account out of the Purchase Price. 

		 12. 	 Telephone Monitoring, Recording and Contacts. Purchaser
                                         may choose to monitor and/or record telephone calls with Merchant and its owners, employees
                                         or agents. These calls are monitored and/or recorded solely for evaluation by supervisors,
                                         training, monitoring for compliance purposes, collections, and quality control. By signing
                                         this Agreement, Merchant agrees that any call between Purchaser and Merchant or a representative
                                         of Merchant may be monitored and/or recorded for these purposes. Merchant further agrees
                                         that: (i) it has an established business relationship with Purchaser and may be contacted
                                         from time to time regarding transactions with Purchaser by telephone, text message or
                                         email; (ii) such contacts are not considered unsolicited or inconvenient; and (iii) any
                                         such contact may be made using any wireless, mobile cellular or other number Merchant
                                         or its representative gave Purchaser, using any e-mail address Merchant or its representative
                                         gave Purchaser, or using an automated dialing and announcing or similar device, unless
                                         prohibited by law. This authorization is binding upon Merchant upon signing this Agreement
                                         and shall not be deemed withdrawn or revoked should Purchaser determine not to purchase
                                         the Future Receivables from Merchant. 

		 13. 	 Miscellaneous. This Agreement shall be binding
                                         upon Merchant as well as its successors, assigns, related companies and Affiliated Entity
                                         (as defined below) as well as any company or person (or group of persons working together)
                                         that purchases substantially all of the Merchant’s assets or a majority of its
                                         voting interests and/or control over the Merchant. This Agreement shall inure to the
                                         benefit of Purchaser, its successors and assigns. This Agreement constitutes the entire
                                         Agreement between the Parties, and no representations, agreements, or understandings
                                         of any kind, either written or oral, shall be binding upon the parties unless expressly
                                         contained herein. This Agreement is a complete and exhaustive statement of the terms
                                         of the parties’ agreement, which may not be explained or supplemented by evidence
                                         of consistent or inconsistent additional terms or contradicted by evidence of any prior
                                         or contemporaneous agreement. The Parties may change any of the terms of this Agreement
                                         or amend this Agreement but any such changes or amendments shall not be effective unless
                                         they are in writing, agreed to by both Parties, and signed by Merchant and/or Guarantor(s)
                                         as applicable. If any of the provisions of this Agreement are determined to be invalid,
                                         illegal or unenforceable in any respect, the remaining provisions shall not be affected
                                         in any manner. All Parties hereby acknowledge having the full power and authority to
                                         enter into and perform the obligations under this Agreement. Merchant and Guarantor(s)
                                         agree to execute such further and additional documents, instruments, and writings as
                                         may be necessary, proper, required, desirable, or convenient for the purpose of fully
                                         effectuating the terms and provisions of this Agreement. The information submitted by
                                         Merchant as part of its application for this transaction is hereby incorporated into
                                         and made a part of this Agreement. The signatures to this Agreement may be evidenced
                                         by facsimile copies or other electronic means reflecting the Party’s signature
                                         hereto, and any such copy or signature shall be sufficient as if it were an original
                                         signature. In lieu of a signature, Purchaser shall be deemed to have accepted the terms
                                         of this Agreement upon payment of the Purchase Price to Merchant. Paragraph 10 and paragraphs
                                         12 through 18 shall survive any termination, satisfaction or cancellation of this Agreement. 

   

     

     

    

   

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		 14. 	 Governing Law This
                                         Agreement, all transactions it contemplates, the entire relationship between the Parties,
                                         and all Claims (as defined in paragraph 15 below), whether such Claims are based in tort,
                                         contract or arise under statute or in equity, including all Claims involving an Affiliated
                                         Entity of Purchaser, shall be governed by and enforced in accordance with: (i) the laws
                                         of the State of New York without regard to principles of conflicts of laws that would
                                         require the application of any other law; and (ii) federal law for the limited purpose
                                         of the Arbitration Agreement (paragraph 17 below). Affiliated Entity means and includes:
                                         (i) any entity or person that has owned or controlled Purchaser or any entity that has
                                         been owned or controlled by Purchaser; (ii) any predecessor or successor entities of
                                         Purchaser; (iii) any entity or person who at any time owns or holds an equity or security
                                         interest in the Future Receivables and the interest was granted by Purchaser; and (iv)
                                         all officers, directors, owners and employees of Purchaser, its parent company or any
                                         Affiliated Entity; and (v) any parent companies of any Affiliated Entity and their subsidiaries. 

		 15. 	 Disputes Any claim, dispute or controversy between
                                         any of the Parties or between any of the Parties and an Affiliated Entity arising from
                                         or relating in any way to the relationship between the Parties, including any relationship
                                         with an Affiliated Entity, whether such claims are based in tort, contract, or arise
                                         under statute or in equity (referred to herein as “Claim” or “Claims”),
                                         shall be resolved only as provided in this Agreement. Claim includes but is not limited
                                         to: any disputes regarding or relating to this Agreement or the application provided
                                         in connection with this transaction; any solicitation or advertising materials; any activities
                                         relating to the maintenance or servicing of the transaction; any disputes arising from
                                         any collection activity related to a breach or alleged breach of this Agreement; any
                                         disputes concerning the processing or collection of Future Receivables; any disputes
                                         regarding information obtained by Purchaser from, or reported by Purchaser to, Merchant,
                                         credit bureaus or others; and any disputes resulting from or relating to, in any way,
                                         any previous relationship, agreement or contract between the Parties or Merchant and
                                         an Affiliated Entity including but not limited to an agreement under which Merchant sold
                                         Future Receivables to Purchaser or an Affiliated Entity. The Parties hereby agree that
                                         this provision amends and supersedes any provision in a previous agreement entered into
                                         between the Parties or between Merchant and an Affiliated Entity regardless of whether
                                         the previous agreement has been satisfied, terminated or is in default. Accordingly,
                                         any Claims between the Parties or made against or by an Affiliated Entity shall no longer
                                         be governed by the dispute resolution provisions contained in a previous agreement but
                                         shall be governed by paragraphs 14 through 19 of this Agreement; provided, however, that
                                         any changes this provision makes to previous agreements between the Parties or made against
                                         or by an Affiliated Entity shall not apply in any litigation, arbitration or other proceeding
                                         commenced before the date of this Agreement. 

		 16. 	 Litigation. If a Claim is filed in court, the Claim
                                         must be filed in the State of New York and the Parties hereby agree that the exclusive
                                         venue for all Claims filed in court shall be in the State of New York. No court action
                                         may be brought in any other state or jurisdiction except as necessary to enforce a valid
                                         security interest or enforce a judgment entered in New York. The Parties hereby waive
                                         any claim against or objection to the in personam jurisdiction and venue in the courts
                                         of the State of New York. NO CLAIM FILED IN COURT WILL BE HEARD BY A JURY AND ANY CLAIM
                                         WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ACTIONS ARE NOT PERMITTED. NO COURT MAY
                                         ORDER, PERMIT OR CERTIFY A CLASS ACTION, REPRESENTATIVE ACTION, PRIVATE ATTORNEY-GENERAL
                                         LITIGATION OR CONSOLIDATED ACTION. NO COURT MAY ORDER OR PERMIT A JOINDER OF PARTIES,
                                         UNLESS BOTH MERCHANT AND PURCHASER CONSENT TO SUCH JOINDER IN WRITING. 

		 17. 	 ARBITRATION Any Party may elect to resolve any
                                         Claim by neutral, binding arbitration. An election to arbitrate a Claim may be made by
                                         any Party instead of filing an action in court or in response to a claim, counterclaim
                                         or cross claim filed in court by any Party. If a Party requests arbitration, all Claims
                                         (including counterclaims and cross claims) any Party may have against any other Party
                                         or Affiliated Entity, whether such Claims are deemed to be compulsory or permissive in
                                         law, shall be submitted to binding arbitration pursuant to this paragraph 17 (referred
                                         to herein as the “Arbitration Agreement”). The failure to bring such a Claim
                                         is a waiver of, and bars, the bringing of such a Claim in any subsequent arbitration
                                         or court action. Any arbitration hearing that requires the attendance of the Parties
                                         shall take place in the federal judicial district in the State of New York. The Party
                                         initiating the arbitration proceeding may select from the following arbitration administrators,
                                         which will apply the appropriate rules for commercial disputes in effect at the time
                                         the Claim is filed with the arbitration organization (“Arbitration Rules”):
                                         the American Arbitration Association (“AAA”), JAMS or any other organization
                                         the Parties agree to in writing. If neither AAA nor JAMS is able or willing to serve
                                         as the arbitration administrator and the Parties are unable to agree on a replacement
                                         administrator or arbitrator(s), then a court of competent jurisdiction will appoint an
                                         administrator or arbitrator(s). For information on arbitration fees and costs, a copy
                                         of the Arbitration Rules, or to file a claim contact AAA at 335 Madison Avenue, Floor
                                         10, New York, New York 10017-4605, www.adr.org (phone 1-800-778-7879) or JAMS at 620
                                         Eighth Ave., Floor 34, New York, NY 10018, www.jamsadr.com (phone 1-800-352-5267). In
                                         the event of a conflict between the Arbitration Rules and this Arbitration Agreement,
                                         this Arbitration Agreement shall govern. Judgment upon any arbitration award may be entered
                                         in any court with jurisdiction and may be enforced by any court having jurisdiction over
                                         that judgment. If a Party elects arbitration and the other Party refuses to arbitrate,
                                         the Party electing arbitration may seek a court order enforcing this Arbitration Agreement.
                                         In that event, the court shall determine any issues regarding enforceability of this
                                         Arbitration Agreement, including the validity and effect of the class action waiver (set
                                         forth below), but all other issues shall be decided by the arbitrator. All statutes of
                                         limitation that otherwise would apply to an action brought in court will apply in arbitration.
                                         NO CLAIM SUBMITTED TO ARBITRATION WILL BE HEARD BY A JURY AND ANY ARBITRATION UNDER
                                         THIS AGREEMENT WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS AND CLASS ACTIONS
                                         ARE NOT PERMITTED. NO ARBITRATOR MAY ORDER, PERMIT OR CERTIFY A CLASS ACTION, REPRESENTATIVE
                                         ACTION, PRIVATE ATTORNEY-GENERAL LITIGATION OR CONSOLIDATED ARBITRATION. NO ARBITRATOR
                                         MAY ORDER OR PERMIT A JOINDER OF PARTIES, UNLESS BOTH MERCHANT AND PURCHASER CONSENT
                                         TO SUCH JOINDER IN WRITING. 

   

     

     

    

   

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		 18. 	 Remedies In the event Merchant breaches, any of
                                         the provisions of this Agreement, including but not limited to the representations, warranties
                                         and covenants made in paragraph 9, Purchaser shall be entitled to all remedies available
                                         under law. In any action for damages, Purchaser shall be entitled to damages equal to
                                         the Amount Sold less the amount received by Purchaser. Merchant and the individuals signing
                                         this Agreement hereby agree that Purchaser may electronically debit from any of Merchant’s
                                         or the individual signatory’s bank accounts via ACH or otherwise all or any portion
                                         of the Amount Sold or may instruct Merchant’s processor to forward to Purchaser
                                         all or any portion of the Amount Sold outstanding if Merchant breaches this Agreement.
                                         In addition to any other remedies provided Purchaser under this Agreement, in the event
                                         that Merchant changes or permits the change of the Processor accepted by Purchaser, utilizes
                                         the services of an additional card processor or changes the Account, Purchaser shall
                                         have the right, without waiving any of its other rights or remedies and without notice
                                         to Merchant or Guarantor(s), to notify the new or additional card processor or the bank
                                         where the new Account is located, as the case may be, of the sale of the Amount Sold
                                         of Future Receivables hereunder and to direct such new or additional processor or bank
                                         to make payment to Purchaser of all or any portion of the amounts received or held by
                                         such card processor or bank for or on behalf of Merchant to pay any amounts Purchaser
                                         is entitled to receive under the terms of this Agreement. Merchant hereby grants to Purchaser
                                         an irrevocable power of attorney and hereby appoints Purchaser and its designees as Merchant’s
                                         attorney-in-fact to take any and all actions necessary or appropriate to direct such
                                         new or additional card processor to make payment to Purchaser as contemplated by this
                                         paragraph. 

 The transaction(s) governed by this Agreement
involves interstate commerce and the Parties agree that arbitration shall be governed by the Federal Arbitration Act (9 U.S.C.
§ 1 et. seq.) and the Arbitration Rules and not by any state law concerning arbitration. The arbitrator will be required
to follow relevant law and applicable judicial precedent to arrive at a decision and shall be empowered to grant whatever relief
would be available in court. The cost of any arbitration proceeding shall be divided as follows: (i) if a Party other than Purchaser
or an Affiliated Entity initiates arbitration and the damages claimed are less than $25,000 or Purchaser or an Affiliated Entity
initiate arbitration, Purchaser shall pay all arbitration fees and costs; (ii) if anyone other than Purchaser or an Affiliated
Entity initiates arbitration and the damages claimed are $25,000 or more, the parties to the arbitration shall split the fees
and costs for arbitration equally. Notwithstanding the foregoing, if a Party other than Purchaser believes the applicable cost
of arbitration may be too burdensome, that Party may seek a waiver of costs under the applicable Arbitration Rules. If such a
request is made but denied by the arbitration organization, Purchaser will consider a written request to either advance or pay
all or part of the costs. If arbitration is elected, each Party shall be responsible for its own attorney, witness and consulting
fees provided the prevailing Party may seek reimbursement of attorney fees and arbitration costs if they prevail as provided in
paragraph 16 below. If any part of this Arbitration Agreement, other than waivers of class action rights, is deemed or found to
be unenforceable for any reason, the rest shall remain enforceable. If the waiver of class action rights is deemed or found to
be unenforceable for any reason in a case in which class action allegations have been made, the remainder of this Arbitration
Agreement shall be unenforceable. 

		 19. 	 Attorney’s Fees and Costs. In the event Merchant
                                         defaults, Purchaser shall be entitled to recover from Merchant and Guarantors all costs
                                         of collection, including reasonable attorney’s fees and third party collection
                                         costs, including all such costs and fees incurred in the event of a bankruptcy filing
                                         by Merchant or Guarantors. 

		 20. 	 Reporting: By signing this Agreement you authorize
                                         Purchaser to obtain a credit report and any background report on the Merchant deemed
                                         necessary by Purchaser and any individual that signs this Agreement for purposes of deciding
                                         whether to approve the purchase of the Amount Sold or for any update, renewal, or for
                                         evaluating the qualification of Merchant for other products of Purchaser or Affiliated
                                         Entities and for any other lawful purpose. The report Purchaser obtains may include,
                                         but is not limited to, the business’ or individuals’ credit history or similar
                                         characteristics, employment and education verifications, social security verification,
                                         criminal and civil history, Department of Motor Vehicle records, any other public records,
                                         and any other information Purchaser deems relevant. The reports will be used by Purchaser
                                         to determine if it will proceed with the Purchase of the Future Receivables from Merchant
                                         and shall not be used for any other purposes. 

		 21. 	 INDIVIDUAL LIABILITY OF GUARANTOR(S) FOR BREACH OF
                                         REPRESENTATIONS, WARRANTIES AND COVENANTS. By signing this Agreement on behalf of
                                         Merchant AND ON THEIR OWN BEHALF (each such signer a Guarantor), the Guarantors (defined
                                         as the Owners that have signed below) hereby assume and, jointly and severally, guarantee
                                         those obligations of the Merchant arising under this Agreement as set forth above and
                                         in Appendix B below. This guarantee is unlimited, absolute and without condition, and
                                         is binding upon each Guarantor, the Guarantor’s heirs, legal representatives, successors
                                         and assigns. The Guarantors to this Agreement are hereby notified that a negative credit
                                         report reflecting on his/her credit record may be submitted to a credit reporting agency
                                         if the terms of this Agreement are breached and the resulting damages are not satisfied.
                                         Each Guarantor acknowledges receiving a copy of this Agreement and having read the terms
                                         of this Agreement, including, without limitation, the guarantee set forth in this paragraph,
                                         and the individual owner’s and Guarantor’s signatures below shall serve as
                                         confirmation that they understand all terms and conditions of this Agreement. 

   

     

     

    

   

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 EACH PARTY ACKNOWLEDGES THAT THEY
HAVE READ AND AGREE TO ALL THE FOREGOING TERMS AND CONDITIONS, INCLUDING THE CHOICE OF LAW AND ARBITRATION PROVISIONS SET FORTH
ABOVE. 

   

	 LIBERTAS FUNDING, LLC 	   	   
	   	   	   	 X /s/ Randy Saluck 
	 by: Randy Saluck 	   	 (Signature) 
	 CEO, Libertas 	   	   
	   	   	   
	 FOR THE MERCHANT 

    (DIGITAL POWER CORPORATION) 	   	 X
    /s/ Milton Ault 
	   	   	   	 (Signature) 
	 by: 	 Milton Ault 	   	   
	 (Print Name and Title) 	   	   
	   	   	   
	 FOR THE MERCHANT 

    (PHILOU VENTURES, LLC) 	   	 X
    /s/ Kristine Ault 
	   	   	   	 (Signature) 
	 by: 	 Kristine Ault 	   	   
	 (Print Name and Title) 	   	   
	   	   	   	   
	 OWNER #1 	   	 X
    /s/ Milton Ault 
	   	   	   	 (Signature) 
	 by: 	 Milton Ault 	   	   
	 (Print Name and Title) 	   	   
	   	   	   	   
	 OWNER #2 	   	 X /s/ Kristine Ault 
	   	   	   	 (Signature) 
	 by: 	 Kristine Ault 	   	   
	 (Print Name and Title) 	   	   

   

     

     

    

   

 Page:
9 Deal Application ID : 

   

 APPENDIX A 

   

 ACH Authorization Agreement 

   

 This Authorization Agreement for Direct Deposit
(ACH Credit) and Direct Collections (ACH Debits) is part of (and incorporated by reference into) the Future Receivables Sale Agreement
(the “Agreement”). Merchant should keep this important legal document for Merchant’s records. This authorization
agreement (the ACH Authorization) is entered into pursuant to the Future Receivables Sale Agreement (the “Agreement”)
dated 1/18/2018 between the undersigned Merchant and Libertas Funding LLC (the “Purchaser”). Terms used and not defined
herein will have the meanings assigned to such terms in the Agreement. 

   

 The individual signing this ACH Authorization on
behalf of Merchant certifies to Purchaser that he or she is a duly authorized check signer on the financial institution account
identified below, that he or she is authorized to enter into this ACH Authorization on behalf of the Merchant, and that the Merchant
will be bound by all the terms of this ACH Authorization. 

   

 This authorization shall remain in effect until
the sooner of (a) such time that Purchaser has received the Purchased Amount, plus any applicable fees, under the Agreement, or
(b) Purchaser permits Merchant to revoke this ACH Authorization, as evidenced in writing to Merchant. 

   

 The undersigned Merchant hereby authorizes Purchaser
to initiate debit or credit entries from and to Merchants Account at the bank specified below. Merchant and Purchaser agree to
be bound by the applicable rules set forth by the National Automated Clearinghouse Association. 

   

 Furthermore, if any such ACH transactions should
be returned for insufficient funds, Merchant authorizes Purchaser to reattempt to collect such amounts by ACH, and in any such
case, collect a fee as specified in the Agreement. 

   

 Merchant further agrees that a breach of this ACH
Authorization will constitute a breach of the Agreement. 

   

 Any capitalized term(s) that are not otherwise
defined shall retain the same meaning set forth in the Future Receivables Sale Agreement. 

   

 DISBURSEMENT OF RECEIVABLES SALE PROCEEDS. By
signing below, Merchant authorizes Purchaser to disburse the Purchase Price, less the amount of any applicable setup fee, by initiating
an ACH credit, wire transfer, or similar means to the checking account indicated below (or a substitute checking account Merchant
later identifies and is acceptable to Purchaser) (hereinafter referred to as the “Designated Checking Account”) in
the disbursal amount set forth in the accompanying Future Receivables Sale Agreement. 

   

 COLLECTION OF FUNDS ARISING FROM FUTURE RECEIPTS.
By signing below, Merchant authorizes Purchaser to collect amounts Purchaser is entitled to receive under the Agreement by
initiating ACH Debits of the Specified Percentage of Merchant’s daily receivables to the Designated Checking Account each
business day until Purchaser receives the Amount Sold. At the time of execution of the Future Receivables Sale Agreement, the
Parties agree that the Purchased Percentage equates to the Dollar Amount of Purchased Percentage set forth in the Agreement, and
that the Dollar Amount of Purchased Percentage shall be debited each business day. However, Merchant acknowledges and agrees that
the Dollar Amount of Purchased Percentage may change and fluctuate so that it directly correlates to the fluctuation of the amount
of Future Receivables generated by Merchant. Purchaser will debit Merchants Account in the amount set forth in the Agreement,
as may be modified from time to time by agreement of the Parties. Purchaser acknowledges that no prior notification will be provided
in advance of debits or credits authorized under the Agreement. 

   

 Merchant authorizes Purchaser to increase the amount
of any scheduled ACH debit entry or assess multiple ACH debits for the amount of any previously scheduled payment(s) that was
not paid because Merchant’s financial institution was not open or was not able to process ACH transactions. If a transaction
is rejected by Merchant’s financial institution for any reason other than termination of this authorization, including without
limitation insufficient funds, Merchant understands that Purchaser may, at its discretion, attempt to process the transaction
again as permitted under the NACHA Rules. Merchant also authorizes Purchaser to initiate ACH entries to correct any erroneous
payment transaction. Merchant understands that Merchant is responsible for ensuring that funds arising from Future Receivables
of Merchant remain in the Designed Checking Account each day until Purchaser debits the amount to which it is entitled under the
Future Receivables Sale Agreement. Merchant agrees to notify Purchaser promptly if there are any changes to the account and routing
numbers of the Designated Checking Account. Purchaser is not responsible for any overdrafts, rejected transactions, or other fees
that may result from credits or debits initiated under this Authorization Agreement. This authorization is to remain in full force
and effect until Purchaser has remitted the full amount of the Amount Sold under the Agreement. The origination of ACH transactions
to the Designated Checking Account must comply with, and both Merchant and Purchaser agree to be bound by, the provisions of applicable
law and the NACHA Rules. If Merchant’s financial institution rejects Purchaser’s debits for any reason, Merchant
is still responsible for making timely remittances of the Purchased Percentage to Purchaser each business day, pursuant to the
Agreement. 

   

 THIRD PARTY APPOINTMENT AND AUTHORIZATION. By
signing below, Merchant acknowledges that the Purchaser may, at any time, at Purchaser’s sole discretion, and without prior
notice, appoint a third party, including but not limited to its wholly owned subsidiaries, (herein referred to as the “Servicing
Agent”) to perform any, or all, of the actions authorized by the ACH Authorization and the Agreement. Merchant further agrees
and acknowledges that Servicing Agent shall have all of the same rights, responsibilities, and authorizations granted to Purchaser
by the ACH Authorization and the Agreement. 

   

     

     

    

   

 Page:
10 Deal Application ID : 

   

 BUSINESS PURPOSE ACCOUNT. By signing below,
Merchant attests that the Designated Checking Account was established for business purposes and not primarily for personal, family
or household purposes. The individual signing below on behalf of Merchant certifies that he/she is an authorized signer on the
Designated Checking Account. Merchant will not dispute any ACH transaction initiated pursuant to this Authorization Agreement,
provided the transaction corresponds to the terms of this Authorization Agreement. Merchant requests the financial institution
that holds the Designated Checking Account to honor all ACH entries initiated in accordance with this Authorization Agreement. 

   

 Payment Authorization. I authorize my bank
to debit my account as identified above to the terms stated here. This authorization shall remain in effect until the Purchaser
and bank receive written notification from me of intent to terminate at such time and in such manner as to afford the Purchaser
and bank reasonable opportunity to act (minimum 30 days). 

   

 I understand that if the total amount owed to the
Purchaser is increased, I authorize this plan to continue as long as the payment amount remains unchanged until the amount owed
the Purchaser is paid off, or unless the plan is terminated earlier by me as above. 

   

 I understand any added amounts can be applied for
with a new ACH Debit Authorization Form. 

   

 All other changes such as payment amount, frequency,
bank account number change, will require a new ACH Debit Payment Authorization Form to be filled out and submitted to Merchant
15 days prior to any change being implemented. 

   

 I will be liable to pay an NSF fee of $25.00 (or
the amount allowable by law), which may be automatically debited for each NSF.I represent and warrant that I am authorized to
execute this payment authorization for the purpose of implementing this payment plan. 

   

 I indemnify and hold the Purchaser and the bank
harmless from damage, loss or claim resulting from all authorized actions hereunder. Payments will be scheduled daily in the amount
of 4,714.29. 

   

 Recurring schedule of payment will start on the
following day after the financing proceeds are disbursed to the business. 

   

 Payments will be deducted every day, excluding weekends
until full payback amount, referred to as the Purchased Amount (594,000.00), is reached. 

   

 Routing Number Account: 

   

 Number Account Name: 

   

 Bank Name: 

   

 Type of Account: Checking Savings 

   

 Merchants Legal Name: DIGITAL POWER CORPORATION 

   

 View-Only Access to Online Bank Login: 

   

 Password: 

   

 Date: 1/18/2018 

   

 FOR THE MERCHANT (DIGITAL POWER
CORPORATION) 

   

	 by: 	 Milton Ault 	   	 X 
    /s/ Milton Ault 
	 (Print Name and Title) 	   	 (Signature) 
	   	   	   	   
	 FOR THE MERCHANT 	   	   
	 (PHILOU VENTURES, LLC) 	   	   
	   	   	   	   
	 by: 	 Kristine Ault 	   	 X  /s/
    Kristine Ault 
	 (Print Name and Title) 	   	 (Signature) 

   

     

     

    

   

 ADDENDUM TO CONTRACT 

   

 ARTICLE 1: Addendum to Merchant Agreement 

   

 Purchase Price: $400,000.00           
Purchased Percentage: 20%            Purchased Amount: $ 594,400.00 

   

 Entered into by and between Libertas
Funding LLC (the Buyer) and DIGITAL POWER CORPORATION (the Seller). 

   

 Notwithstanding anything contained
herein to the contrary, the parties agree as follows: 

   

 a. Except as provided below, it
is understood and agreed that the Seller may settle this Purchase/Merchant Agreement in full by paying LlBERTAS FUNDING LLC the
pre-payment Amount before the end of the relevant month, as set forth below, less the amount of any purchase payments made prior
to the pre-payment date, plus any unpaid fees or charges. Month 1 begins on the first Monday following the date on which LIBERTAS
FUNDING LLC distributed the advance proceeds to DIGITAL POWER CORPORATION. 

   

 b.
In the event Seller chooses not to execute this addendum Buyer will be entitled to the full purchased amount to settle
in full Sellers obligation under account existing contract number. 

   

 c.
Except as provided in this addendum, all terms and conditions of the Merchant Agreement and the Supplement shall remain
in full force and effect. 

   

	 Prepayment Term 

         2 months 
	 Accepted Prepayment Amount 

         472,000.00 
	 Prepayment Factor 

         1.180 

   

 All other terms of the referenced
contract remain unchanged. 

   

 By the.ir signatures below the
parties agreed to be bound by this addendum. 

   

	 ACCEPTED AND
    AGREED: 	   	 ACCEPTED AND AGREED: 
	   	   	   	   	   
	 Buyer: Libertas
    Funding LLC 	   	 Seller: Digital Power Corporation 
	   	   	   	   	   
	 By: 	 /s/
    Randy Saluck 	   	 By: 	 /s/
    Milton Ault 
	 Name: Randy
    Saluck 	   	 Name: Milton Ault 
	 Title: CEO,
    Libertas 	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if
    applicable 
	   	   	   	   	   
	   	   	   	 ACCEPTED AND
    AGREED: 
	   	   	   	   	   
	   	   	   	 Seller: PHILOU VENTURES, LLC 
	   	   	   	   	   
	   	   	   	 By: 	 /s/
    Kristine Ault 
	   	   	   	 Name: Kristine
    Ault 
	   	   	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if
    applicable 

   

     

     

    

   

 ADDENDUM TO CONTRACT 

   

 ARTICLE 1: Addendum to Merchant Agreement 

   

 Purchase Price: $400,000.00        
Purchased Percentage: 20%        Purchased Amount: $ 594,000.00 

   

 Entered into by and between Libertas
Funding LLC (the Buyer) and DIGITAL POWER CORPORATION (the Seller). 

   

 Notwithstanding anything contained
herein to the contrary, the parties agree as follows: 

   

 A.    
I, Milton Ault, and Kristine Ault, acting on behalf of DlGITAL POWER CORPORATION hereby authorize Buyer, Libe1ias Funding
LLC, to execute the transactions detailed below in section F (Merchant Agreement Variable Receivable Remittance Schedule). 

   

 B.     Seller
understands that all transactions detailed in this addendum will be executed for remittance of the receivables purchase detailed
in merchant agreement new. 

   

 C.    
In the event Seller chooses to execute Merchant Agreement new Seller agrees that completion of the transaction(s) listed
below will constitute full remittance of receivables for the referenced merchant agreement(s). 

   

 D.    Except
as provided in this addendum, all tem1s and conditions of the Merchant Agreement and the Supplement shall remain in full force
and effect. 

   

 E.     Upon
execution of Merchant Agreement new Seller agrees to be bound by the remittance schedule detailed in section F. 

   

 F. Variable Receivable Remittance
Schedule. 

   

 Variable Prepayment 

   

	 Month 	 %
    of Payment Amount 	 Daily 	 Amount
    Paid 
	 1 	 0 	 $
    0.00 	 $
    0.00 
	 2 	 0 	 $
     0.00 	 $
    0.00 
	 3 	 25 	 $
    7,071.43 	 $148,500.00 
	 4 	 25 	 $
    7,071.43 	 $148,500.00 
	 5 	 25 	 $
    7,071.43 	 $148,500.00 
	 6 	 25 	 $
    7,071.43 	 $148,500.00 

   

 All other terms of the referenced
contract remain unchanged. 

   

 By their signatures below the parties
agreed to be bound by this addendum. 

   

	 ACCEPTED AND AGREED: 	   	 ACCEPTED AND AGREED: 
	   	   	   	   	   
	 Buyer: Libertas Funding LLC 	   	 Seller: Digital Power Corporation 
	   	   	   	   	   
	 By: 	 /s/ Randy Saluck 	   	 By: 	 /s/ Milton Ault  
	 Name: Randy Saluck 	   	 Name: Milton Ault 
	 Title: CEO, Libertas 	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if applicable 
	   	   	   	   	   
	   	   	   	 ACCEPTED AND AGREED: 
	   	   	   	 Seller: PHILOU VENTURES, LLC 
	   	   	   	   	   
	   	   	   	 By: 	 /s/ Kristine Ault 
	   	   	   	 Name: Kristine Ault 
	   	   	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 

   

     

     

    

   

	 LIBERTAS 

   

 Contract
Addendum 

   

 Total
Maximum-Approval Purchase Price: $400.000 Purchased Percentage: 20%        Total Approved
 

 Purchase
Amount: $594,000 

   

 This
Contract Addendum (this “Addendum”) dated as of January 18th, 2018 amends that certain agreement (the “Agreement,”
#) made by and among Libertas Funding LLC (the “Purchaser”) and Milton Ault and Philou Ventures LLC (the “Owners”)
Digital Power Corporation (the “Seller” which publicly traded under the ticker DPW”) dated January18th, 2018.The
Owners and the Seller are referred to collectively as the Merchant (the “Merchant”). In connection with the Agreement
and this Addendum, the Purchaser agrees to purchase up to a certain maximum amount of future receivables equal to $594,000 (the
“Purchased Amount”) at a purchase price of $400,000 (the “Purchase Price”). This Addendum shall modify
the Agreement pursuant to the terms of this Addendum. All other provisions of the Agreement shall remain in full force and effect.
For good and valuable mutual consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 

   

		 ● 	 The Merchant represents
                                         and warrants that DPW will remit full payment to Libertas 9 weeks from deposit of Libertas
                                         funds in DPW account. 

		 ● 	 Per this Agreement
                                         if merchant remits full payment amount to the Purchaser within 3 business days following
                                         the Deadline, the Purchased Amount shall be discounted to a total amount equal to $472,000 

		 ● 	 To the extent that
                                         the Merchant does not remit the Discounted Purchased Amount by three business days following
                                         the Deadline, the Purchased Amount shall increase to the full Purchased Amount ($594,000)
                                         as per the Agreement. As per normal guidelines and the nature of the original contracts
                                         the daily payment shall be turned on and will reflect a payment of $7,071.43 which will
                                         be paid every day from Monday through Friday for each week until the entirety of the
                                         Purchased Amount is paid. 

		 ● 	 Each
                                         of the Owners and the Merchant agrees that, by signing this Addendum, Milton Ault, the
                                         Executive Chairman of the Seller, agrees to be bound by all provisions of the Agreement
                                         and all other Addendum entered into in connection with the Agreement. Additionally, by
                                         signing this Addendum below, Mr. Ault agrees to be bound by all provisions and terms
                                         of this Agreement and any other Addendum entered into in connection therewith. 

		 ● 	 The undersigned agrees
                                         to execute warrants to purchase 100,000 shares of common stock of DPW (the “Warrants”)
                                         at an exercise price of $2.50 per share of DPW stock to the Purchaser in connection with
                                         and as consideration for entering into the Agreement. The Purchaser may allocate the
                                         Warrants to persons other than the Purchaser in the Purchaser’s sole discretion. 

   

 In
witness whereof, the parties have agreed to this Addendum. 

   

    Page 1 of 2

     

    

   

	 Libertas Funding, LLC 	   
	   	   	   
	 By:  	 /s/ Randy Saluck 	   
	 Name: 	   
	 Title: 	   
	   	   	   
	 Digital Power Corporation 	   
	   	   	   
	 By: 	 /s/ Milton C. Ault, III 	   
	 Name: 	   
	 Title: 	   
	   	   	   
	 Philou Ventures, LLC 	   
	   	   	   
	 By:  	 /s/ Kristine Ault 	   
	 Name: 	   
	 Title: 	   

   

    Page 2 of 2

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