Document:

Exhibit 4.1

 

CONVERTIBLE PROMISSORY NOTE

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE
TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144
OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT BY THE SECURITIES. ANY TRANSFEREE OF THIS CONVERTIBLE PROMISSORY NOTE SHOULD CAREFULLY
REVIEW THE TERMS OF THIS CONVERTIBLE PROMISSORY NOTE, INCLUDING SECTIONS 3(c)(iii) AND 15(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED
BY THIS CONVERTIBLE PROMISSORY NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS
SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS CONVERTIBLE PROMISSORY NOTE.

 

DPW HOLDINGS, INC.

 

CONVERTIBLE PROMISSORY NOTE DUE JANUARY
22, 2020

 

 

	Issuance Date: July 3, 2019	Principal Amount: $1,492,000.00

 

FOR VALUE RECEIVED,
DPW Holdings, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of [●],
a [●] limited liability company with an address at [●], or its registered assigns (“Holder”) the
amount set forth above as the original principal amount (the “Principal”) when due, whether upon January 22,
2020 (the “Maturity Date”), or upon acceleration, prepayment or otherwise (in each case in accordance with the
terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate
(as defined below) from the date set forth above as the Issuance Date (the “Issuance Date”) until the same becomes
due and payable, whether upon the Maturity Date or upon acceleration, conversion, prepayment or otherwise (in each case in accordance
with the terms hereof). This Convertible Promissory Note (this “Note”) is issued to the Holder as of the Issuance
Date by the Company. Certain capitalized terms used herein are defined in Section 28. The Company acknowledges and agrees that
the exchange of this Note for the Promissory Note issued on March 23, 2018 (the “Prior Note”) pursuant to the
Exchange Agreement dated of even date herewith, did not involve the payment of, or giving of a commission, or other remuneration,
directly or indirectly, in connection with, the exchange and that the exchange was exempt from registration under Section 3(a)(9)
of the 1933 Act. In addition, the Company acknowledges and agrees that the exchange of the Prior Note for this Note did not involve
the payment of, or giving of a commission, or other remuneration, directly or indirectly, in connection with, the exchange and
that the exchange was exempt from registration under Section 3(a)(9) of the 1933 Act. Accordingly, the Company shall at all times
agree that the holding period of this Note tacks back to March 23, 2018 for purposes of the sum of $1,292,000 of the Principal
for purposes of Rule 144 under the 1933 Act but the date of this Note for purposes of the Default Premium of $200,000. All terms
used but not defined herein shall have the meanings ascribed thereto in the Exchange Agreement.

 

1.            PAYMENTS
OF PRINCIPAL.

 

On the Maturity
Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest. Other than as specifically permitted by this Note, the Company
may not prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal
and Interest, if any.

 

    	 	 	 

    	 

    

 

2.             INTEREST;
INTEREST RATE.

 

(a)       Interest
on this Note shall commence accruing on July 3, 2019 at 12% per annum subject to adjustment in accordance with the terms of this
Section 2 (the “Interest Rate”), shall be calculated on the basis of a 360-day year and twelve 30-day months,
compounded daily, and shall be payable by the Company to the Holder, in cash, in arrears, on the first business day of each month,
with the first payment of interest due on August 1, 2019, with all accrued but unpaid interest due on the Maturity Date.

 

(b)       From
and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased
to the higher of 18.0% per annum or the highest amount permitted by law, shall compound daily (the “Default Interest”),
and shall be due and payable in arrears on the first Trading Day of each calendar month during the continuance of such Event of
Default (a “Default Interest Payment Date”). In the event that such Event of Default is subsequently cured (and
no other Event of Default then exists (including, without limitation, for the Company’s failure to pay such Interest at the
Default Rate on the applicable Default Interest Payment Date), the adjustment of the interest rate referred to above in this Section
2(b), the adjustment shall cease to be effective as of the day immediately following the date of such cure; provided that the Interest
as calculated and unpaid at such increased rate during the continuance of such Event of Default shall continue to apply to the
extent relating to the days after the occurrence of such Event of Default through and including the date of such cure of such Event
of Default.

 

3.            CONVERSION
OF NOTES. Provided that the Exchange Approval shall have been obtained at such time, commencing on July 15, 2019 (the later
of such dates, the “Initial Conversion Date”), this Note shall be convertible into validly issued, fully paid
and non-assessable shares (the “Conversion Shares”) of the Company’s common Stock, par value $0.001 per
share (the “Common Stock”), on the terms and conditions set forth in this Section 3.

 

(a)       Conversion
Right. Subject to the provisions of Section 3(d), at any time following the Initial Conversion Date, the Holder shall be entitled
to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into Conversion Shares in accordance
with Section 3(b), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a Conversion Share upon
any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round
such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance
and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below))
that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.

 

(b)       Conversion
Rate. The number of Conversion Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be
determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i)       “Conversion
Amount” means the sum of (x) portion of the Principal to be converted, prepaid or otherwise with respect to which this
determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued
and unpaid Late Charges with respect to such portion of such Principal and such Interest, if any.

 

(ii)       “Conversion
Price” means, as of any Conversion Date, $0.22 per share, subject to equitable adjustments resulting from any stock splits,
stock dividends, combinations, recapitalizations or similar events. The Company shall issue irrevocable instructions to its Transfer
Agent regarding conversions such that the transfer agent shall be authorized and instructed to issue shares of Common Stock upon
its receipt of a Conversion Notice without further approval or authorization from the Company.

 

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(c)       Mechanics
of Conversion.

 

(i)       Optional
Conversion. To convert any Conversion Amount into Conversion Shares on any date (a “Conversion Date”), the
Holder shall deliver to the Company (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59 p.m.,
New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”). If required pursuant to Section 3(c)(iii) hereof, within two Trading Days following a conversion of this Note
as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the Company
(or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section
15(b)). On or before the first Trading Day following the date of receipt of a Conversion Notice, the Company shall transmit by
facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such Conversion Shares may then
be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto as Exhibit
II, of receipt of such Conversion Notice to the Holder and the Transfer Agent which confirmation shall constitute an instruction
to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the second Trading Day
following the date on which the Company has received a Conversion Notice (or such earlier date as required pursuant to the 1934
Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date of such
shares of Common Stock issuable pursuant to such Conversion Notice) (the “Share Delivery Deadline”), the Company
shall (1) provided that the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, credit such
aggregate number of shares of Common Stock to which the Holder shall be entitled pursuant to such conversion to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (2) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, upon the request of the Holder, issue and deliver (via
reputable overnight courier) to the address as specified in the Conversion Notice, a certificate, registered in the name of the
Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled pursuant to such conversion.
If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding Principal of this Note
is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and
in no event later than two Trading Days after receipt of this Note and at its own expense, issue and deliver to the Holder (or
its designee) a new Note (in accordance with Section 15(d)) representing the outstanding Principal not converted. The Person or
Persons entitled to receive the Conversion Shares shall be treated for all purposes as the record holder or holders of such shares
of Common Stock on the Conversion Date.

 

(ii)       Company’s
Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share
Delivery Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, to issue and
deliver to the Holder (or its designee) a certificate for the number of shares of Common Stock to which the Holder is entitled
and register such shares of Common Stock on the Company’s share register or, if the Transfer Agent is participating in the
DTC Fast Automated Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with
DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of this Note (as
the case may be) (a “Conversion Failure”), then, in addition to all other remedies available to the Holder,
(1) the Company shall pay in cash to the Holder on each day after such Share Delivery Deadline that the issuance of such shares
of Common Stock is not timely effected an amount equal to 2% of the product of (A) the sum of the number of shares of Common Stock
not issued to the Holder on or prior to the Share Delivery Deadline and to which the Holder is entitled, multiplied by (B) any
trading price of the Common Stock selected by the Holder in writing as in effect at any time during the period beginning on the
applicable Conversion Date and ending on the applicable Share Delivery Deadline and (2) the Holder, upon written notice to the
Company, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion of this Note
that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect
the Company’s obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section
3(c)(ii) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Deadline, if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver to the Holder
(or its designee) a certificate and register such shares of Common Stock on the Company’s share register or, if the Transfer
Agent is participating in the DTC Fast Automated Securities Transfer Program, the Transfer Agent shall fail to credit the balance
account of the Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is entitled
upon the Holder’s conversion hereunder or pursuant to the Company’s obligation pursuant to clause (II) below, and if
on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock
corresponding to all or any portion of the number of shares of Common Stock issuable upon such conversion that the Holder is entitled
to receive from the Company and has not received from the Company in connection with such Conversion Failure or Notice Failure,
as applicable (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall,
within two Trading Days after receipt of the Holder’s request and in the Holder’s discretion, either: (I) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or
on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and
deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s
designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its
obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit
the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common
Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common Stock multiplied
by (y) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable
Conversion Notice and ending on the date of such issuance and payment under this clause (II) (the “Buy-In Payment Amount”).
Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the conversion
of this Note as required pursuant to the terms hereof.

 

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(iii)       Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and
addresses of the Holder of the Note and the principal amount of the Note (the “Registered Note”). The entries
in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holder or holders of
the Note shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without
limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. The Registered
Note may, subject to Section 27 hereof, be assigned, transferred or sold in whole or in part only by registration of such assignment
or sale on the Register. Upon its receipt of a written request to assign, transfer or sell all or part of the Registered Note by
the holder thereof, the Company shall record the information contained therein in the Register and issue one or more new Registered
Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note to the designated assignee
or transferee pursuant to Section 15, provided that if the Company does not so record an assignment, transfer or sale (as
the case may be) of all or part of any Registered Note within two Trading Days of such a request, then the Register shall be automatically
deemed updated to reflect such assignment, transfer or sale (as the case may be). Notwithstanding anything to the contrary set
forth in this Section 3, following conversion of any portion of this Note in accordance with the terms hereof, the Holder
shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount represented by this
Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof) or (B) the Holder
has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance
of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal, Interest
and Late Charges converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may
be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender
of this Note upon conversion. If the Company does not update the Register to record such Principal, Interest and Late Charges converted
and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) within two Trading Days
of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence.

 

(d)       Limitations
on Conversions. The Company shall not effect the conversion of any portion of the Note and the Holder shall not have the right
to convert any portion of the Note and any such conversion shall be null and void and treated as if never made, to the extent that
after giving effect to such conversion, the Holder would beneficially own in excess of 4.99% of the shares of Common Stock outstanding
immediately after giving effect to such conversion (the “Maximum Percentage”) (which provision may be waived
by the Holder by written notice from the Holder to the Company, which notice shall be effective 61 days after the date of such
notice). For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder
shall include the number of shares of Common Stock held by the Holder plus the number of shares of Common Stock issuable upon conversion
of the Note and all other Convertible Securities with respect to which the determination of such sentence is being made subject
to a limitation on conversion or exercise analogous to the limitation contained in this Section 3(d). For purposes of this Section
3(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock the Holder may acquire upon the conversion of the Note without exceeding the Maximum
Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most
recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Securities
and Exchange Commission (the “SEC”), as the case may be, (y) a more recent public announcement by the Company
or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock
outstanding (the “Reported Outstanding Share Number”). If the Company receives a Conversion Notice from the
Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number,
the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that
such Conversion Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section 3(d),
to exceed the Maximum Percentage, the Company must notify the Holder of a reduced number of Conversion Shares to be acquired pursuant
to such Conversion Notice. For any reason at any time, upon the written or oral request of the Holder, the Company shall within
one Trading Day confirm orally and in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including such Note, by the Holder since the date as of which the Reported Outstanding Share Number
was reported. In the event that the issuance of shares of Common Stock to the Holder upon conversion of such portion of the Note
results in the Holder being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding
shares of Common Stock (as determined under Section 13(d) of the 1934 Act and Rule 13b-3 thereunder), the number of conversion
shares so issued by which the Holder’s beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote, sell, or to transfer
the Excess Shares. For purposes of clarity, the shares of Common Stock issuable to the Holder pursuant to the terms of this Note
in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes
of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert the Note pursuant to this Section 3(d) shall
have any effect on the applicability of the provisions of this Section 3(d) with respect to any subsequent determination of convertibility.
The provisions of this Section 3(d) shall be construed and implemented in a manner otherwise than in strict conformity with the
terms of this Section 3(d) to the extent necessary to correct any portion of this Section 3(d) which may be defective or inconsistent
with the intended beneficial ownership limitation contained in this Section 3(d) or to make changes or supplements necessary or
desirable to properly give effect to such limitation. The provisions of this Section 3(d) shall be of no further force or effect
if the Holder participates in a subsequent transaction with the Company and acquires Common Stock and/or securities convertible
into Common Stock which do not contain a beneficial ownership limitation. In such event, the Maximum Percentage limitation shall
be (i) deemed modified to be identical to any limitation on beneficial ownership contained in the subsequent transaction or (ii)
eliminated if there is no such limitation on beneficial ownership.

 

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4.       RIGHTS
UPON EVENT OF DEFAULT.

 

(a)       Event
of Default. Each of the following events shall constitute an “Event of Default”:

 

(i)       the
suspension from trading or the failure of the Common Stock to be trading or listed (as applicable) on a Principal Market for a
period of five consecutive Trading Days. For the avoidance of doubt, the delisting of the Common Stock from the NYSE American shall
be an event of Default;

 

(ii)       the
Company’s default under this Note or the other Transaction Documents, including a failure to pay to the Holder any amount
of Principal, Interest, Late Charges or other amounts when and as due under this Note, the other Transaction Documents, subject
to a cure period of five (5) Trading Days for default on Interest payments and ten (10) Trading Days for any other default;

 

(iii)       bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company and, if instituted against the Company by a third party, shall not be dismissed within 30 days of their initiation;

 

(iv)       the
commencement by the Company of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by it to the entry of a decree, order, judgment or other similar document in respect of the Company in an involuntary case or proceeding
under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement
of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization
or relief under any applicable federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment
of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the
Company of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution
of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it
in writing of its inability to pay its debts generally as they become due, the taking of corporate action by the Company in furtherance
of any such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other
similar action under federal, state or foreign law;

 

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(v)       the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company of a voluntary or involuntary
case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or
(ii) a decree, order, judgment or other similar document adjudging the Company as bankrupt or insolvent, or approving as properly
filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company under
any applicable federal, state or foreign law or (iii) a decree, order, judgment or other similar document appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order, judgment or
other similar document or any such other decree, order, judgment or other similar document unstayed and in effect for a period
of 10 consecutive days;

 

(vi)       other
than as specifically set forth in another clause of this Section 4(a), the Company breaches any representation or warranty in any
material respect (other than representations or warranties subject to materiality limitations, which may not be breached in any
respect) or any covenant or other term or condition of this Note or any other Transaction Document, except, in the case of a breach
of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of ten (10) consecutive
Trading Days;

 

(vii)       a
false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event
of Default has occurred, subject to a cure period of ten (10) Trading Days;

 

(viii)       any
Material Adverse Effect occurs and remains uncured for a period of ten (10) Trading Days;

 

(ix)       any
provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof) cease
to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having
jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary
shall deny in writing that it has any liability or obligation purported to be created under any Transaction Document, subject to
a cure period of ten (10) Trading Days;

 

(x)       the
Company fails to file any reports required under the 1934 Act, subject to a cure period of ten (10) Trading Days.

 

(b)       Notice
of an Event of Default; Holder Right to Compel Prepayment upon Event of Default. Upon the occurrence of an Event of Default
with respect to this Note, the Company shall within one Trading Day deliver written notice thereof via facsimile or electronic
mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to the Holder.
At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event
of Default and ending (such ending date, the “Event of Default Right Expiration Date”) on the 20th
Trading Day after the later of (x) the date such Event of Default is cured and (y) the Holder’s receipt of an Event of Default
Notice that includes (I) a reasonable description of the applicable Event of Default, (II) a certification as to whether, in the
opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable description of any existing
plans of the Company to cure such Event of Default and (III) a certification as to the date the Event of Default occurred and,
if cured on or prior to the date of such Event of Default Notice, the applicable Event of Default Right Expiration Date, the Holder
may require the Company to prepay (regardless of whether such Event of Default has been cured on or prior to the Event of Default
Right Expiration Date) all or any portion of this Note by delivering written notice thereof (the “Event of Default Prepayment
Notice”) to the Company, which Event of Default Prepayment Notice shall indicate the portion of this Note the Holder
is electing to have prepaid. Each portion of this Note (which may include all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest) subject to prepayment by the Company pursuant to this Section
4(b) shall be prepaid by the Company at a price equal to the product of: (i) the portion of this Note being prepaid; multiplied
by (ii) the Prepayment Premium. To the extent prepayments required by this Section 4(b) are deemed or determined by a court of
competent jurisdiction to be prepayments of this Note by the Company, such prepayments shall be deemed to be voluntary prepayments.
In the event of the Company’s prepayment of any portion of this Note under this Section 4(b), the Holder’s damages
would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty
of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Prepayment Premium due under
this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss
of its investment opportunity and not as a penalty. Any prepayment upon an Event of Default shall not constitute an election of
remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.

 

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5.       RIGHTS
UPON CHANGE OF CONTROL. The Company shall not enter into or consummate a transaction constituting a Change of Control unless:
(i) no sooner than 20 Trading Days nor later than 10 Trading Days prior to the consummation of a Change of Control, but not prior
to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile or electronic
mail and overnight courier to the Holder; (ii) the Successor Entity assumes in writing all of the obligations of the Company
under this Note and the other Transaction Documents in accordance with the provisions of this Section 5 pursuant to written agreements
in form and substance satisfactory to the Holder and approved by the Holder prior to such Change of Control, including agreements
to deliver to each holder of the Note in exchange for such Note a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to the Note, including, without limitation, having a principal amount and interest
rate equal to the principal amounts then outstanding and the interest rates of the Note held by such holder, having similar conversion
rights as the Note and having similar ranking and security to the Note, and satisfactory to the Holder and (iii) the Successor
Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on
a Principal Market. Upon the occurrence of any Change of Control, the Successor Entity shall succeed to, and be substituted for
(so that from and after the effective date of such Change of Control, the provisions of this Note and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the
same effect as if such Successor Entity had been named as the Company herein. Upon consummation of a Change of Control, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or prepayment of this Note at any time
after the consummation of such Change of Control, in lieu of the shares of Common Stock (or other securities, cash, assets or other
property (except such items still issuable under Sections 6 and 15, which shall continue to be receivable thereafter) issuable
upon the conversion or prepayment of the Note prior to such Change of Control, such shares of the publicly-traded common stock
(or their equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive
upon the happening of such Change of Control had this Note been converted immediately prior to such Change of Control (without
regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of this Note. Notwithstanding
the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 5 to
permit the Change of Control to occur without the assumption of this Note. The provisions of this Section 5 shall apply similarly
and equally to successive transactions constituting a Change of Control and shall be applied without regard to any limitations
on the conversion of this Note.

 

6.            RIGHTS
UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

 

(a)       Purchase
Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially
all of the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note immediately prior
to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled
to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such excess)
and such Purchase Right to such extent shall be held in abeyance (and, if such Purchase Right has an expiration date, maturity
date or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable) for the benefit
of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right
granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance (and, if
such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such number
of days held in abeyance, if applicable)) to the same extent as if there had been no such limitation).

 

    	 	7	 

    	 

    

 

(b)       Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect
to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to ensure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option
(i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder
would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon
the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of
this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets
received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as
the Holder would have been entitled to receive had this Note initially been issued with conversion rights for the form of such
consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion
Rate. Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Holder. The provisions
of this Section 6 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations
on the conversion or prepayment of this Note.

 

7.       RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.

 

(a)       Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date
subdivides (by any stock split, stock dividend, recapitalization or other similar transaction) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will
be proportionately reduced. If the Company at any time on or after the Issuance Date combines (by any reverse stock split, or stock
combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased.
Any adjustment pursuant to this Section 7(a) shall become effective immediately after the effective date of such subdivision or
combination. If any event requiring an adjustment under this Section 7(a) occurs during the period that a Conversion Price is calculated
hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

(b)       Calculations.
All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held
by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(c)       Voluntary
Adjustment by Company. The Company may at any time during the term of this Note, with the prior written consent of the Holder,
reduce the then current Conversion Price of the Note to any amount and for any period of time deemed appropriate by the board of
directors of the Company.

 

8.       NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s Certificate of Incorporation
or other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action
as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other
provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any shares
of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the conversion of this Note. Notwithstanding anything herein to the contrary, if after the 60 day anniversary
of the Initial Conversion Date, the Holder is not permitted to convert this Note in full for any reason (other than pursuant to
restrictions set forth in Section 3(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including,
without limitation, obtaining such consents or approvals as necessary to permit such conversion into shares of Common Stock.

 

9.            RESERVATION
OF AUTHORIZED SHARES.

 

(a)       Reservation.
So long as the Note remains outstanding, the Company shall at all times reserve 7 million shares of its Common Stock, subject to
adjustment for stock splits, stock dividends, combinations and similar events (the “Required Reserve Amount”).

 

    	 	8	 

    	 

    

 

(b)       Insufficient
Authorized Shares. If, notwithstanding Section 9(a), and not in limitation thereof, at any time while any of the Note remains
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation
to reserve for issuance upon conversion of the Note at least a number of shares of Common Stock equal to the Required Reserve Amount
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the
Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for the portion of the Note then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than 60 days after the occurrence of such
Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of
authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement
and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its board of directors to recommend to the stockholders that they approve such proposal. In the event that the Company
is prohibited from issuing shares of Common Stock pursuant to the terms of this Note due to the failure by the Company to have
sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number
of shares of Common Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares
to the Holder, the Company shall pay cash in exchange for the prepayment of such portion of the Conversion Amount convertible into
such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and
(y) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date the Holder
delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company and ending on the date
of such issuance and payment under this Section 9(b); and (ii) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorized Failure Shares, any brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.

 

10.               OPTIONAL
PREPAYMENT. At any time during the period beginning on the Issuance Date and expiring upon the Maturity Date, the Company shall
have the right, exercisable on not less than twenty (20)Trading Days prior written notice to the Holder of the Note, to prepay
the outstanding Note (principal, accrued interest, Late Charges and any other amount due under the Note), in full, in accordance
with this Section 10. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered
to the Holder of the Note at its registered addresses and shall state: (1) that the Company is exercising its right to prepay the
Note, and (2) the date of prepayment which shall be no later than ten (10) days from the date of the Optional Prepayment Notice.
On the date fixed for prepayment (the “Optional Prepayment Date”), the Company shall make payment of the Optional
Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Company. If
the Company exercises its right to prepay the Note, the Company shall make payment to the Holder of an amount in cash (the “Optional
Prepayment Amount”) equal to the Multiple (as hereinafter defined), multiplied by the sum of: (w) the then outstanding
Principal of this Note plus (x) accrued and unpaid interest on the unpaid Principal of this Note to the Optional Prepayment Date
plus (y) if applicable, Default Interest and other amounts due, if any, on the amounts referred to in clauses (w) and (x). For
purposes hereof, the “Multiple” shall be: (i) 105% if the Optional Prepayment Notice is delivered within three
(3) months of the Issuance Date, and (ii) 110% if the Optional Prepayment Notice is delivered at any time thereafter.

 

11.               COVENANTS.
Until all of the principal amount of and accrued but unpaid interest under Note has been repaid, prepaid or otherwise satisfied
in accordance with their terms:

 

(a)       Preservation
of Existence, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its
existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified
and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary.

 

(b)       Maintenance
of Properties, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all
of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases
to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

    	 	9	 

    	 

    

 

(c)       Maintenance
of Intellectual Property. The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable
to maintain all of the rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service
names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor of the Company and/or any
of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.

 

(d)       Maintenance
of Insurance. The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such
amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is
carried generally in accordance with sound business practice by companies in similar businesses similarly situated.

 

12.         DISTRIBUTION
OF ASSETS. In addition to any adjustments pursuant to Section 7, if the Company shall declare or make any dividend or other
distributions of its assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return
of capital or otherwise (including without limitation, any distribution of cash, stock or other securities, property or Options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(the “Distributions”), then the Holder will be entitled to such Distributions as if the Holder had held the
number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations
or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at) the Conversion
Price on the date immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken,
the date as of which the record holders of Common Stock are to be determined for such Distributions (provided, however, that to
the extent that the Holder’s right to participate in any such Distribution would result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to the extent
of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such
Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and
the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution
(and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance)
to the same extent as if there had been no such limitation).

 

13.         AMENDING
THE TERMS OF THIS NOTE. The prior written consent of the Holder shall be required for any change, waiver or amendment to this
Note. Any change, waiver or amendment so approved shall be binding upon all existing and future holders of this Note; provided,
however, that no such change, waiver or, as applied to the Note held by any particular holder of the Note, shall, without the written
consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest, or extend
the Maturity Date, of the Note, (ii) disproportionally and adversely affect any rights under the Note of any holder of any other
portion of the Note; or (iii) modify any of the provisions of, or impair the right of any holder of the Note under this Section
13.

 

14.          RESERVED.

 

15.          REISSUANCE
OF THIS NOTE.

 

(a)       Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section 15(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred,
a new Note (in accordance with Section15(d)) to the Holder representing the outstanding Principal not being transferred. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following
conversion or prepayment of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal
stated on the face of this Note.

 

    	 	10	 

    	 

    

 

(b)       Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice
as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company
in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note (in accordance with Section 15(d)) representing the outstanding Principal.

 

(c)       Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 15(d) and in principal amounts of at least $1,000) representing
in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d)       Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 15(a) or Section 15(c), the Principal designated by the Holder which
does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of a new Note), (iii) shall
have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall
have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges on the Principal
and Interest of this Note, from the Issuance Date.

 

16.          REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The
Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm
the Company’s compliance with the terms and conditions of this Note (including, without limitation, compliance with Section
7).

 

17.          PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay
the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly
acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price
paid for this Note was less than the original Principal amount hereof.

 

18.          CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed
against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed
to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Note
instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references are to sections
of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have
the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing
by the Holder.

 

    	 	11	 

    	 

    

 

19.          FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and
signed by an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 19
shall permit any waiver of any provision of Section 3(d).

 

20.          DISPUTE
RESOLUTION.

 

(a)       Submission
to Dispute Resolution.

 

(i)       In
the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, or a fair market value or the
arithmetic calculation of a Conversion Rate, or the applicable Prepayment Price (as the case may be) (including, without limitation,
a dispute relating to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the
dispute to the other party via facsimile or electronic mail (A) if by the Company, within two Trading Days after the occurrence
of the circumstances giving rise to such dispute or (B) if by the Holder at any time after the Holder learned of the circumstances
giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute relating to such Closing
Bid Price, such Closing Sale Price, such Conversion Price, such Redemption Conversion Price, such Black-Scholes Consideration Value,
such VWAP or such fair market value, or the arithmetic calculation of such Conversion Rate or such applicable Prepayment Price
(as the case may be), at any time after the second Trading Day following such initial notice by the Company or the Holder (as the
case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select
an independent, reputable investment bank to resolve such dispute.

 

(ii)       The
Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in
accordance with the first sentence of this Section 20 and (B) written documentation supporting its position with respect to such
dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth Trading Day immediately following the date on which
the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the
immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment
bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation
that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by
both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled
to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other
than the Required Dispute Documentation).

 

(iii)       The
Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and
the Holder of such resolution no later than 10 Trading Days immediately following the Dispute Submission Deadline. The fees and
expenses of such investment bank shall be borne solely by the Company and the Holder in equal parts, and such investment bank’s
resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

    	 	12	 

    	 

    

 

(b)       Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 20 constitutes an agreement to arbitrate between the Company
and the Holder (and constitutes an arbitration agreement) under the law of the Commonwealth of Pennsylvania, as amended, (ii) the
terms of this Note and each other applicable Transaction Document shall serve as the basis for the selected investment bank’s
resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings,
determinations and the like that such investment bank determines are required to be made by such investment bank in connection
with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations
and the like to the terms of this Note and any other applicable Transaction Documents, (iii) the Holder (and only the Holder),
in its sole discretion, shall have the right to submit any dispute described in this Section 20 to any state or federal court in
or for Delaware County, Pennsylvania in lieu of utilizing the procedures set forth in this Section 20 and (iv) nothing in this
Section 20 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation,
with respect to any matters described in this Section 20).

 

21.          NOTICES.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in writing
with an e-mail copy to the last address provided by the Holder or its agents in writing to the Company. The Company shall provide
the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description
of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice
to the Holder (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying,
the calculation of such adjustment and (ii) at least 15 days prior to the date on which the Company closes its books or takes a
record (A) with respect to any dividend or distribution upon the Common Stock, or (B) for determining rights to vote with respect
to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the Holder.

 

22.          
CANCELLATION. After all Principal, accrued Interest, Late Charges and other amounts at any time owed on this Note have been
paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall
not be reissued.

 

23.          WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

24.          GOVERNING
LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal laws of the Commonwealth of Pennsylvania, without
giving effect to any choice of law or conflict of law provision or rule (whether of the Commonwealth of Pennsylvania or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the Commonwealth of Pennsylvania. Except
as otherwise required by Section 20 above, the Company hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in or for Delaware County, Pennsylvania, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing
contained herein (i) shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against
the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral
or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder or (ii) shall
limit, or shall be deemed or construed to limit, any provision of Section 20. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

25.         SEVERABILITY.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

26.          MAXIMUM
PAYMENTS. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed
by the Company to the Holder and thus refunded to the Company.

 

    	 	13	 

    	 

    

 

27.          ASSIGNMENT.
Neither this Note nor the rights contained herein may be assigned, by operation of law or otherwise, by either party without the
prior written consent of the other; provided, however, that this Note and/or the rights contained herein may be assigned without
the Company’s consent by the Holder to any other entity who controls, is controlled by or is under common control with the
Holder.

 

28.          CERTAIN
DEFINITIONS. For purposes of this Note, the following words and terms shall have the following meanings:

 

(a)       “1933
Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(b)       “1934
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

(c)       “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(d)       “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Initial Conversion Date, directly or indirectly managed or
advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates
of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the
Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would
or could be aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act.
For clarity, the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum
Percentage.

 

(e)       
“Bloomberg” means Bloomberg, L.P., or any successor.

 

(f)       
“Change of Control” means any Fundamental Transaction other than (i) any merger of the Company or any of its,
direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization
or reclassification of the shares of Common Stock in which holders of the Company’s voting power immediately prior to such
reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to
hold publicly traded securities and, directly or indirectly, are, in all material respects, the holders of the voting power of
the surviving entity (or entities with the authority or voting power to elect the members of the board of directors (or their
equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification,
(iii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company
or any of its Subsidiaries, or (iv) a reorganization or other change in the composition in the Company’s board of directors.

 

(g)       “Common
Stock” means (i) the Company’s shares of Class A common stock, $0.001 par value per share, and (ii) any capital
stock into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(h)       “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(i)       “Current
Subsidiary” means any Person in which the Company on the Issuance Date, directly or indirectly, (i) owns any of the outstanding
capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business,
operations or administration of such Person, and all of the foregoing, collectively, “Current Subsidiaries”.

 

    	 	14	 

    	 

    

 

(j)       
“Exchange Agreement” means that certain Exchange Agreement, dated as July 3, 2019, by and between the Company
and the Holder.

 

(k)       “Exchange
Approval” means approval of the issuance of the Conversion Shares and the Warrant Shares contemplated by the Exchange
Agreement by the NYSE American, which approval shall be obtained no later than twenty-five (25) days after the Closing Date.

 

(l)       
“Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of
Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company
to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or
exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of
the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party
to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or
(z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity
making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3
under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least
50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any
shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party
to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock
such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least
50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company
shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow
any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as
defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance,
tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock,
(y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such
Subject Entities as of the date of this Note calculated as if any shares of Common Stock held by all such Subject Entities were
not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common
Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger
or other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without approval of
the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one
or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to
circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

(m)       “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(n)       “Group”
means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

    	 	15	 

    	 

    

 

(o)       
“Indebtedness” means (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance
with GAAP) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement
or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced
by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness
(even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession
or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP,
consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses
(A) through (F) above by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be by)
any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person
that owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent
Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or
intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability
that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders
of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(p)       “Late
Charge” means any amount of Principal or other amounts due under the Transaction Documents which is not paid on the Maturity
Date, which shall result in a late charge being incurred and payable by the Company in an amount equal $200,000, to be added to
the principal of this Note; further, for every three months that the Company fails to pay the amount due under the Note, the Company
will incur an additional Late Charge of $200,000 but provided, further, that if the Company has at any applicable time paid
any Optional Prepayment Amount, the Late Charge will be reduced by the same percentage as the Optional Prepayment Amount has reduced
the Principal and accrued interest due under this Note

 

(q)       “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a
whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments
to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries
to perform any of their respective obligations under any of the Transaction Documents (as defined below). As of the date hereof
and as of the Closing Date, the Company has no Subsidiaries.

 

(r)       “Maturity
Date” shall mean the date listed in the preamble hereto as the Maturity Date; provided, however, the Maturity Date may
be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and
be continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result
in an Event of Default or (ii) through the date that is 20 Trading Days after the consummation of a Fundamental Transaction in
the event that a Fundamental Transaction is publicly announced or a Change of Control Notice is delivered prior to the Maturity
Date, provided further that if a Holder elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion
Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as
such provision shall not limit the conversion of this Note.

 

(s)       “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Issuance Date, directly
or indirectly, (i) owns or acquires any of the outstanding capital stock or holds any equity or similar interest of such Person
or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing,
collectively, “New Subsidiaries.”

 

(t)       “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

    	 	16	 

    	 

    

 

(u)       “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on a Principal Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(v)       “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note, (ii) Indebtedness set forth on Schedule 2.12 of the
Exchange Agreement, as in effect as of the Issuance Date and (iii) Indebtedness by Permitted Liens or un but as described in clauses
(iv) and (v) of the definition of Permitted Liens.

 

(w)       “Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the ordinary course of business
with respect to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings,
(iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price
of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B)
existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment, in either case, with respect to Indebtedness in an aggregate amount
not to exceed $50,000, (v) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness by
Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited to
the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced
does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom
duties in connection with the importation of goods, and (vii) Liens arising from judgments, decrees or attachments in circumstances
not constituting an Event of Default under Section 4(a).

 

(x)       “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(y)       “Prepayment
Premium” means 110%.

 

(z)       “Principal
Market” means any of The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select
Market, the Nasdaq Global Market, the OTCQB, the OTCQX, the OTC Pink or any other market operated by the OTC Markets Group Inc.
or any successors of any of these exchanges or markets.

 

(aa)       “Subsidiaries”
means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing,
individually, a “Subsidiary.”

 

(bb)       “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(cc)       “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(dd)       “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in
writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock, any
day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

    	 	17	 

    	 

    

 

(ee)       “Transaction
Documents” means this Note, the Exchange Agreement, the Warrant and any other documents relating to the issuance of this
Note by the Company to the Holder.

 

29.       DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries, the Company shall within one Trading Day after any such receipt or delivery publicly disclose such
material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to
the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries. The Company shall not, and shall cause its officers, directors, employees, affiliates and agents, not
to, provide the Investor with any material, nonpublic information regarding the Company from and after the filing of the 8-K Filing
without the express written consent of the Investor. If the Company or any of its Subsidiaries provides material non-public information
to the Holder that is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material
non-public information, the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the
Company, any of its Subsidiaries or any of their respective officers, directors, employees, Affiliates or agents with respect to,
or a duty to any of the foregoing not to trade on the basis of, such material non-public information. .

 

[signature page follows]

 

    	 	18	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

 

	 	
        DPW HOLDINGS, INC.

         

         
	 
	 	By: 	 	 
	 	 	 	 
	 	
        Name: Milton C. Ault, III

         

        Title: Chief Executive Officer
	 

  

    	 	19	 

    	 

    

 

EXHIBIT
I

DPW HOLDINGS, INC.

CONVERSION NOTICE

 

 

Reference is made to
the Convertible Promissory Note (the “Note”) issued to the undersigned by DPW Holdings, Inc., a Delaware corporation
(the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion
Amount (as defined in the Note) of the Note indicated below into shares of Class A Common Stock, $0.001 par value per share (the
“Common Stock”), of the Company, as of the date specified below. Capitalized terms not defined herein shall
have the meaning as set forth in the Note.

 

	Date of Conversion:	 
	 	 
	Aggregate Principal to be converted:	 
	 	 
	Aggregate accrued and unpaid Interest and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest to be converted:	 
	 	 
	AGGREGATE CONVERSION AMOUNT

 TO BE CONVERTED:	 
	 
	Please confirm the following information:
	 	 
	Conversion Price:	 
	 	 
	Number of shares of Common Stock to be issued:	 
	 
	
        Please issue the Common Stock into which
        the Note is being converted to Holder, or for its benefit, as follows:

         

        ☐          Check
        here if requesting delivery as a certificate to the following name and to the following address:

	 
	Issue to:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	☐         Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows: 
	 
	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 
	 	 	 	 	 	 

 

    		 	 

     

    

  

Date: _____________ __,                              

	 	 
	 	 
	Name of Registered Holder	 
	 	 

	By: 	 	 
	 	
        Name:

        Title:
	 
	 	 	 
	 	 	 
	 	Tax ID:	 	 
	 	 	 
	 	Facsimile:	 	 
	 	 	 
	E-mail Address:	 

 

    		 	 

     

    

 

EXHIBIT II

ACKNOWLEDGMENT

 

The Company hereby
(a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not]
eligible to be resold by the Holder either (i) pursuant to Rule 144 (subject to the Holder’s execution and delivery to the
Company of a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs
_________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions
dated _____________, 20__ from the Company and acknowledged and agreed to by ________________________.

 

	 	DPW HOLDINGS,
                    INC.

         

         
	 
	 	By: 	 	 
	 	 	 	 
	 	Name:

         

        Title:Exhibit 4.2

 

THIS WARRANT AND ANY SHARES ACQUIRED
UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.

 

DPW HOLDINGS, INC.

 

COMMON STOCK PURCHASE WARRANT

 

JULY 3, 2019

 

THIS
COMMON STOCK PURCHASE WARRANT (this “Warrant”) of DPW Holdings, Inc., a Delaware corporation (the “Company”),
is issued by the Company as of the date hereof pursuant to that certain Exchange Agreement dated of even date herewith,
by and between the Company and the Holder (the “Exchange Agreement”). All terms used but not defined herein
shall have the meanings ascribed thereto in the Exchange Agreement.

 

FOR
VALUE RECEIVED, the Company hereby certifies that [●], and
its successors and assigns (the “Holder”), is entitled to purchase from the Company 1,000,000 duly authorized,
validly issued, fully paid and nonassessable shares of its common stock, par value $0.001 per share (the “Common Stock”),
at a purchase price equal to $0.22 per share, as may be adjusted under this Warrant (the “Warrant Price”) or
pursuant to the terms of the Exchange Agreement. The Holder is registered on the records of the Company regarding registration
and transfer of the Warrant (the “Warrant Register”) and is the owner and Holder for all purposes, except as
described in Section 11 below.

 

1.       Warrant.
This Warrant shall be immediately exercisable once the Company shall have obtained Exchange Approval therefor.

 

2.        Expiration
of Warrant. This Warrant shall expire on July 2, 2024 (the “Expiration Date”).

 

3.        Exercise
of Warrant. This Warrant shall be exercisable under the terms of Section 1 and this Section 3.

 

3.1        Manner
of Exercise. This Warrant may only be exercised by the Holder, in accordance with its terms and conditions, in whole or in
part with respect to any portion of this Warrant, into shares of Common Stock (the “Warrant Shares”), during
normal business hours on any day other than a Saturday or a Sunday or a day on which commercial banking institutions in New York,
New York are authorized by law to be closed (a “Business Day”) on or before the Expiration Date, by surrender
of this Warrant to the Company at its office maintained under Section 11.2(a), accompanied by an exercise notice (the “Exercise
Notice”) in substantially the form attached as Exhibit A (or a reasonable facsimile thereof) duly executed
by the Holder, together with the payment of the Warrant Price. The Holder also shall have the right, at its election exercised
in its sole discretion, when exercising the Warrant, in whole or in part, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Exercise Price, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

 

Net Number = (A x
B) - (A x C)

B

 

For purposes of the foregoing formula:

 

A = the total number of Warrant
Shares that Holder is then purchasing.

 

B = the Closing Price of the Common
Stock on the trading day immediately preceding the date of the Exercise Notice.

 

C = the Warrant Exercise Price
then in effect for the applicable Warrant Shares at the time of such exercise.

 

    	 	 	 

    	 

    

 

Anything to the contrary
notwithstanding, in no event shall the Holder be entitled to exercise any portion of this Warrant in excess of that portion of
this Warrant upon exercise of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and the
Holder’s affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the
unexercised portion of the Warrant or the unexercised or unconverted portion of any other of the Company’s securities subject
to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common
Stock issuable upon the exercise of the portion of this Warrant with respect to which the determination of this proviso is being
made, would result in beneficial ownership by the Holder and its affiliates of more than 9.99% of the outstanding shares of Common
Stock (“Ownership Limitation”). Beneficial ownership shall be determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934 (the “Exchange Act”), and Regulations 13D - G thereunder, provided, further,
however, that the limitations on exercised may be waived by the Holder upon, at the election of the Holder, not less than 61 days’
prior notice to the Company, and the provisions of the exercise limitation shall continue to apply until such 61st day (or such
later date, as determined by the Holder, as may be specified in such notice of waiver).

 

3.2        When
Exercise Effective. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business
on the Business Day on which this Warrant shall have been surrendered to the Company as provided in Section 3.1 hereof,
and, at such time, the corporation, association, partnership, organization, business, individual, government or political subdivision
thereof or a governmental agency (a “Person” or the “Persons”) in whose name or names any
certificate or certificates for shares of Common Stock shall be issuable upon exercise as provided in Section 3.3 hereof
shall be deemed to have become the holder or holders of record thereof.

 

3.3        Delivery
of Certificates upon Exercise. Certificates for Warrant Shares purchased hereunder shall be transmitted by the Company’s
transfer agent (the “Transfer Agent”) to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company
is then a participant in such system and either (A) there is an effective Registration Statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or (B) this Warrant is being exercised via cashless exercise, and
otherwise by physical delivery to the address specified by the Holder in the Exercise Notice by the date that is two Business Days
after the latest of (A) the delivery to the Company of the Exercise Notice, (B) surrender of this Warrant and (C) payment of the
aggregate Exercise Price as set forth above (including by cashless exercise) (such date, the “Warrant Share Delivery Date”).
If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to an Exercise
Notice by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty,
for each $1,000 of Warrant Shares subject to such exercise (based on the closing price of the Common Stock on the date of the applicable
Exercise Notice), $10 per Business Day (increasing to $20 per Business Day on the fifth Business Day after such liquidated damages
begin to accrue) for each Business Day after such Warrant Share Delivery Date until such certificates are delivered or the Holder
rescinds such exercise.

 

3.4       Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit the Warrant Shares to the Holder under Section 3.3
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

3.5       Compensation
for Buy-In on Failure to Timely Deliver Certificates upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit the Warrant Shares to the Holder under Section 3.3 by the Warrant
Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or
otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale
by the Holder of the Warrant Shares that the Holder anticipated receiving upon such exercise (a “Buy-In”), then
the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have
been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, reasonable evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required under the terms
hereof.

 

    	 	 	 

    	 

    

 

3.6       Partial
Exercise. In case exercise is in part only, a new Warrant of like tenor, dated the date hereof and calling in the aggregate
on the face thereof for the number of Warrant Shares equal to the number of Warrant Shares called for on the face of this Warrant
minus the number of Warrant Shares designated by the Holder upon exercise as provided in Section 3.1 (without giving effect
to any adjustment thereof).

 

3.7       Company
to Reaffirm Obligations. The Company will, at the time of each exercise of this Warrant and upon the written request of the
Holder, acknowledge in writing its continuing obligation to afford to the Holder all rights (including without limitation any rights
to registration of the Warrant Shares issued upon exercise) to which the Holder shall continue to be entitled after exercise under
the terms of this Warrant; provided, however, that if the Holder shall fail to make a request, the failure shall
not affect the continuing obligation of the Company to afford the rights to such Holder.

 

4.       Warrant
Adjustments.

 

The Warrant Price and
the number of Warrant Shares purchasable upon exercise of this Warrant shall be subject to adjustment with respect to events after
the date hereof as follows:

 

4.1       Adjustment
for Change in Capital Stock. If the Company shall (i) declare a dividend on its outstanding Common Stock in shares of its capital
stock, (ii) subdivide its outstanding Common Stock, or (iii) issue any shares of its capital stock by reclassification of its Common
Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
corporation), then in each such case the Warrant Price in effect immediately prior to such action shall be adjusted so that if
this Warrant is thereafter exercised, the Holder may receive the number and kind of shares which it would have owned immediately
following such action if it had exercised this Warrant immediately prior to such action. Such adjustment shall be made successively
whenever such an event shall occur. The adjustment shall become effective immediately after the record date in the case of a dividend
or distribution and immediately after the effective date in the case of a subdivision or reclassification. If after an adjustment
the Holder upon exercise of this Warrant may receive shares of two or more classes of capital stock of the Company, the Company's
Board of Directors, in good faith, shall determine the allocation of the adjusted Warrant Price between the classes of capital
stock. After such allocation, the Warrant Price of each class of capital stock shall thereafter be subject to adjustment on terms
comparable to those applicable to Common Stock in this Section 4.

 

4.2       Number
of Shares. Upon each adjustment of the Warrant Price as a result of the calculations made in Section 4.1, this Warrant
shall thereafter evidence the right to purchase, at the adjusted Warrant Price, that number of shares (calculated to the nearest
one-hundredth) obtained by dividing (i) the product obtained by multiplying the number of shares issuable upon exercise of this
Warrant prior to adjustment of the number of shares by Warrant Price in effect prior to adjustment of the Warrant Price by (ii)
the Warrant Price in effect after such adjustment of the Warrant Price.

 

4.3       Transactions
Not Requiring Adjustments. No adjustment need be made for a transaction referred to in Section 4.1 if the Holder is
permitted to participate in the transaction on a basis no less favorable than any other party and at a level which would preserve
the Holder’s percentage equity participation in the Common Stock upon exercise of this Warrant. No adjustment need be made
for sales of Common Stock under a Company plan for reinvestment of dividends or interest, the granting of options and/or the exercise
of options outstanding under any of the Company's currently existing stock option plans, the exercise of currently existing incentive
stock options or incentive stock options which may be granted in the future, the exercise of any other of the Company's currently
outstanding options, or any currently authorized warrants, whether or not outstanding. If this Warrant becomes exercisable solely
into cash, no adjustment need be made thereafter. Interest will not accrue on the cash.

 

    	 	 	 

    	 

    

 

4.4       Notice
of Adjustments. Whenever the Warrant Price is adjusted, the Company shall promptly mail to the Holder a notice of the adjustment
together with a certificate from the Company's Chief Financial Officer briefly stating (i) the facts requiring the adjustment,
(ii) the adjusted Warrant Price and the manner of computing it, and (iii) the date on which such adjustment becomes effective.
The certificate shall be prima facie evidence that the adjustment is correct, absent manifest error.

 

4.5       Reorganization
of Company. If the Company is a party to a merger, consolidation or a transaction in which (i) the Company transfers or leases
substantially all of its assets; (ii) the Company reclassifies or changes its outstanding Common Stock; or (iii) the Common Stock
is exchanged for securities, cash or other assets, the Person who is the transferee or lessee of such assets or is obligated to
deliver such securities, cash or other assets shall assume the terms of this Warrant. If the issuer of securities deliverable upon
exercise of this Warrant is an affiliate of the surviving, transferee or lessee corporation, that issuer shall join in such assumption.
The assumption agreement shall provide that the Holder may exercise this Warrant into the kind and amount of securities, cash or
other assets which it would have owned immediately after the consolidation, merger, transfer, lease or exchange if it had exercised
this Warrant immediately before the effective date of the transaction. The assumption agreement shall provide for adjustments that
shall be as nearly equivalent as may be practical to the adjustments provided for in this Section 4. The successor company
shall mail to the Holder a notice briefly describing the assumption agreement. If this Paragraph applies, Section 4(a) above
does not apply.

 

4.6       Dissolution,
Liquidation. In the event of the dissolution or total liquidation of the Company, then after the effective date thereof, this
Warrant and all rights thereunder shall expire.

 

4.7       Notices.
If (i) the Company takes any action that would require an adjustment in the Warrant Price under this Section 4; or (ii)
there is a liquidation or dissolution of the Company, the Company shall mail to the Holder a notice stating the proposed record
date for a distribution or effective date of a reclassification, consolidation, merger, transfer, lease, liquidation or dissolution.
The Company shall mail the notice at least 15 days before such date. Failure to mail the notice or any defect in it shall not affect
the validity of the transaction.

 

5.        Fractional
Shares. If the number of Warrant Shares purchasable upon the exercise of this Warrant is adjusted under Section 4,
the Company shall nevertheless not be required to issue fractions of shares upon exercise of this Warrant or otherwise, or to distribute
certificates that evidence fractional shares. Instead the Company will issue cash in the amount equal to the fractional share times
the Closing Price on the trading day immediately preceding the exercise calculated to the nearest penny.

 

6.        No
Dilution or Impairment.

 

6.1       Actions
to Permit Issuance of Warrant Shares. The Company will not, by amendment of its certificate of incorporation or through any
consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of the Warrants, but will always in good faith assist
in the carrying out of all the terms and in the taking of all actions necessary or appropriate to protect the rights of the Holder.
Without limiting the generality of the foregoing, the Company (a) will not permit the par value of any shares of Common Stock receivable
upon the exercise of the Warrants to exceed the amount payable therefor upon exercise, (b) will take all actions necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock on the exercise of
the Warrants, and (c) will not take any action which results in any adjustment of the Warrant Price if the total number of shares
of Common Stock issuable after the action upon the exercise of the Warrant would exceed the total number of shares of Common Stock
then authorized by the Company's certificate of incorporation and available for the purpose of issuance upon exercise.

 

6.2       Acknowledgement
of Company’s Obligations. The Company acknowledges that its obligation to issue the Warrant Shares issuable upon exercise
of the Warrants is binding upon it and enforceable regardless of the dilution that such issuance may have on the ownership interests
of other stockholders.

 

    	 	 	 

    	 

    

 

7.        Chief
Financial Officer’s Report as to Adjustments. In the case of any adjustment or re-adjustment in the shares of Common
Stock issuable upon the exercise of the Warrants, the Company at its expense will promptly compute the adjustment or re-adjustment
in accordance with the terms of the Warrants and cause its Chief Financial Officer to certify the computation (other than any computation
of the fair value of property as determined in good faith by the Board of Directors of the Company) and prepare a report setting
forth the adjustment or re-adjustment and showing in reasonable detail the method of calculation thereof and the facts upon which
the adjustment or re-adjustment is based, including a statement of (a) the number of shares of Common Stock outstanding or deemed
to be outstanding and (b) the Warrant Price in effect immediately prior to the deemed issuance or sale and as adjusted and re-adjusted
(if required by Section 4 above) on account thereof. The Company will mail a copy of each report to the Holder promptly
and will, upon the written request at any time of the Holder, furnish to the Holder a like report setting forth the Warrant Price
at the time in effect and showing in reasonable detail how it was calculated. The Company will also keep copies of all reports
at its office maintained under Section 11.2(a) hereof and will cause them to be available for inspection at the office during
normal business hours upon reasonable notice by the Holder or any prospective purchaser of the Warrants designated by the Holder.

 

8.       Reservation
of Shares. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common
Stock, free from all taxes, liens and charges with respect to the issue thereof and not be subject to preemptive rights or other
similar rights of stockholders of the Company, solely for the purpose of effecting the exercise of the Warrants, such number of
its shares of Common Stock as shall from time to time be sufficient to effect the exercise thereof, and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to effect the exercise of the Warrants, in addition to
such other remedies as shall be available to the Holder, the Company will take such corporate action as may, in the opinion of
its counsel, be necessary to increase the number of authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purposes, including without limitation, using its best efforts to obtain the requisite stockholder
approval necessary to increase the number of authorized shares of the Company’s Common Stock. All shares of Common Stock
issuable upon exercise of the Warrants shall be duly authorized and, when issued upon exercise, shall be validly issued and, in
the case of shares, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens and charges with
respect to the issue thereof, and that upon issuance such shares shall be listed on each securities exchange, if any, on which
the other shares of outstanding Common Stock of the Company are then listed.

 

9.       Listing.
The Company shall always comply in all respects with the Company’s reporting, filing and other obligations under the by-laws
or rules of each national securities exchange or inter-dealer quotation system upon which shares of Common Stock are then listed
and shall list the shares issuable upon the exercise of the Warrants on such national securities exchange or inter-dealer quotation
system.

 

10.        Investment
Representations: Restrictions on Transfer.

 

10.1       Investment
Representations. The Holder acknowledges that the Warrant and the Warrant Shares have not been and, except as otherwise provided
herein or in the Exchange Agreement, will not be registered under the Securities Act of 1933, as amended (the “Act”),
or qualified under applicable state securities laws and that the transferability thereof is restricted by the registration provisions
of the Act as well as such state laws. The Holder represents that it is acquiring this Warrant and will acquire the Warrant Shares
for its own account, for investment purposes only and not with a view to resale or other distribution thereof, nor with the intention
of selling, transferring or otherwise disposing of all or any part of such securities for any particular event or circumstance,
except selling, transferring or disposing of them upon full compliance with all applicable provisions of the Act, the Securities
Exchange Act of 1934, the Rules and Regulations promulgated by the Commission thereunder, and any applicable state securities
laws. The Holder further understands and agrees that (i) neither the Warrant nor the Warrant Shares may be sold or otherwise transferred
unless they are subsequently registered under the Act and qualified under any applicable state securities laws or, in the opinion
of counsel reasonably satisfactory to the Company, an exemption from such registration and qualification is available; (ii) any
routine sales of the Company's securities made in reliance upon Rule 144 promulgated by the Commission under the Act, can be effected
only under the terms and conditions of that Rule, including applicable holding periods and timely filing requirements with the
Commission for the Company; and (iii) except as otherwise set forth herein, the Company is under no obligation to register the
Warrants or the Warrant Shares on its behalf or to assist it in complying with any exemption from registration under the Act.
The Holder agrees that each certificate representing any Warrant Shares for which the Warrant may be exercised will bear on its
face a legend in substantially the following form:

 

    	 	 	 

    	 

    

 

These securities have not been registered
under the Securities Act of 1933 or qualified under any state securities laws. They may not be sold, hypothecated or otherwise
transferred in the absence of an effective registration statement under that Act or qualification under applicable state securities
laws without an opinion counsel reasonably acceptable to the Company that such registration and qualification are not required.

 

 

10.2       Notice
of Proposed Transfer; Opinion of Counsel. Prior to any transfer of any securities that are not registered under an effective
registration statement under the Act (“Restricted Securities”), the Holder will give written notice to the Company
of the Holder's intention to effect a transfer and to comply in all other respects with this Section 10.2. Each notice (a)
shall describe the manner and circumstances of the proposed transfer, and (b) shall designate counsel for the Holder giving the
notice (who may be in-house counsel for the Holder). The Holder giving notice will submit a copy thereof to the counsel designated
in the notice. The following provisions shall then apply:

 

(a)       If
in the opinion of counsel for the Holder reasonably satisfactory to the Company the proposed transfer (i.e. private sale of Restricted
Securities) may be effected without registration of Restricted Securities under the Act (which opinion shall state the bases for
the legal conclusions reached therein), the Holder shall thereupon be entitled to transfer the Restricted Securities in accordance
with the terms of the notice delivered by the Holder to the Company. Each certificate representing the Restricted Securities issued
upon or relating to any transfer shall bear the restrictive legends required by Section 10.1 hereof.

 

(b)       If
the opinion called for in (i) above is not delivered, the Holder shall not be entitled to transfer the Restricted Securities until
either (x) receipt by the Company of a further notice from such Holder under the foregoing provisions of this Section 10.2
and fulfillment of the provisions of clause (i) above, or (y) such Restricted Securities have been effectively registered under
the Act.

 

10.3        Termination
of Restrictions. The restrictions imposed by this Section 10 upon the transferability of Restricted Securities shall
cease and terminate as to any particular Restricted Securities: (a) which Restricted Securities shall have been effectively registered
under the Act, or (b) when, in the opinions of both counsel for the holder thereof and counsel for the Company, which opinion shall
not be unreasonably withheld, such restrictions are no longer required in order to insure compliance with the Act or Section
10 hereof. Whenever such restrictions shall cease and terminate as to any Restricted Securities, the holder thereof shall be
entitled to receive from the Company, without expense (other than applicable transfer taxes, if any), new securities of like tenor
not bearing the applicable legends required by Section 10.1 hereof.

 

11.        Ownership,
Transfer and Substitution of Warrant.

 

11.1        Ownership
of Warrant. The Company may treat the Holder, in whose name this Warrant is registered to in the Warrant Register maintained
under Section 11.2(b) hereof, as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary,
except that, if and when any Warrant is properly assigned by a notice in substantially the form attached to this Warrant as Exhibit
B (or a reasonable facsimile thereof) duly executed by the holder thereof in blank, the Company shall treat the bearer
thereof as the owner of such Warrant for all purposes, notwithstanding any notice to the contrary. Subject to Section 10
hereof, this Warrant, if properly assigned, may be exercised by a new holder without a new Warrant first having been issued.

 

11.2        Office;
Transfer and Exchange of Warrant.

 

(a)       The
Company will maintain an office (which may be an agency maintained at a bank) at 201 Shipyard Way, Suite E, Newport Beach, CA 92663
(until the Company notifies the Holder of any change of location of the office) where notices, presentations and demands in respect
of the may be made upon it.

 

    	 	 	 

    	 

    

 

(b)       The
Company shall cause to be kept at its office maintained under Section 11.2(a) hereof a Warrant Register for the registration
and transfer of the Warrants. The names and addresses of holders of the Warrants, the transfers thereof and the names and addresses
of transferees of the Warrants shall be registered in such Warrant Register. The Person in whose name any Warrant shall be so registered
shall be deemed and treated as the owner and holder thereof for all purposes of such Warrant, and the Company shall not be affected
by any notice or knowledge to the contrary.

 

(c)       Upon
the surrender of a Warrant, properly endorsed, for registration of transfer or for exchange at the office of the Company maintained
under Section 11.2(a) hereof, the Company at its expense will (subject to compliance with Section 12 hereof, if applicable)
execute and deliver to or upon the order of the Holder thereof a new Warrant of like tenor, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes) may direct, calling in the aggregate on the face thereof
for the number of shares of Common Stock called for on the face of the Warrant so surrendered.

 

11.3        Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of a Warrant and, in the case of any such loss, theft or destruction of a Warrant, upon delivery of indemnity reasonably satisfactory
to the Company in form and amount or, in the case of any mutilation, upon surrender of a Warrant for cancellation at the office
of the Company maintained under Section 11.2(a) hereof, the Company at its expense will execute and deliver, in lieu thereof,
a new Warrant of like tenor and dated the date hereof.

 

12.        No
Rights or Liabilities as Stockholder. Except as may otherwise be provided herein, no Holder shall be entitled to vote or
receive dividends or be deemed the holder of any shares of Common Stock or any other securities of the Company which may at any
time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive
notice of meetings, or to receive dividends or subscription rights or otherwise until such Holder’s Warrant shall have been
exercised and the shares of Common Stock purchasable upon the exercise hereof shall have become deliverable, as provided herein.
The Holder will not be entitled to share in the assets of the Company in the event of liquidation, dissolution or the winding up
of the Company.

 

13.        Notices.
Any notice or other communication in connection with this Warrant shall be deemed to be given if in writing addressed as hereinafter
provided and actually delivered at such address: (a) if to any Holder, at the registered address of such holder as set forth in
the Warrant Register kept at the office of the Company maintained under Section 11.2(a) hereof, or (b) if to the Company,
to the attention of its Chief Financial Officer at its office maintained under Section 11.2(a) hereof; provided,
however, that the exercise of any Warrant shall be effective in the manner provided in Section 3 hereof.

 

14.       Payment
of Taxes. The Company will pay all documentary stamp taxes attributable to the issuance of shares of Common Stock underlying
this Warrant upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration of any certificate for shares of Common Stock
underlying this Warrant in a name other that of the Holder. The Holder is responsible for all other tax liability that may arise
because of holding or transferring this Warrant or receiving shares of Common Stock underlying this Warrant upon exercise hereof.

 

15.       Warrant
Agent. The Company shall serve as warrant agent under for the Warrants. Upon 30 days’ notice to the Holder, the Company
may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all its corporate trust or stockholders’ services business shall
be successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice
of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register.

 

    	 	 	 

    	 

    

 

16.       Miscellaneous.
This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of the change, waiver, discharge or termination is sought. This Warrant shall be construed and
enforced in accordance with and governed by the laws of the Commonwealth of Pennsylvania applicable to contracts made and to be
performed entirely within such State. Any action, suit or proceeding in connection with this Warrant may be brought in a federal
or state court of record located in Delaware County, Pennsylvania, and Holder and Company each agrees to submit to the personal
jurisdiction of such court and waives any objection which either may have, based on improper venue or forum non conveniens,
to the conduct of any proceeding in any such court and waives personal service of any and all process upon it, and consents that
all such service of process be made by mail or messenger directed to it at the address referred to in Section 13 above and
that service so made shall be deemed to be completed upon the earlier of actual receipt or five days after the same shall have
been posted to its address. The section headings in this Warrant are for purposes of convenience only and shall not constitute
a part hereof. The use herein of the masculine pronouns or similar terms shall be deemed to include the feminine and neuter genders
as well and vice versa and the use of the singular pronouns shall be deemed to include the plural as well and vice versa.

 

    	 	 	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Common Stock Purchase Warrant to be duly executed as of the date first above written.

 

DPW HOLDINGS, INC.

 

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

 

Agreed and Accepted:

 

[●]

 

	By:		 
	Name:	[●]	 
	Title:	[●]	 

 

    	 	 	 

    	 

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

To Be Executed by the Holder

In Order to Exercise Warrants

 

TO: DPW HOLDINGS, INC.

 

		(1)	The undersigned hereby elects to purchase ________ Warrant Shares of the Company under the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

  

		(2)	Payment shall take the form of (check applicable box):

  

		☐	
in lawful money of the United States; or

  

		☐	
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 3.1 to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable under the cashless exercise procedure set forth in Section 3.1.

 

		(3)	Please issue a certificate or certificates representing the Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 

_________________________________________________________

 

The Warrant Shares
shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

_________________________________________________________

 

_________________________________________________________

 

	Dated:  	 	 	 

 

	             	 	 
	 	 	 
	 	 	 
	 	Address	 
	 	 	 
	 	 	 
	 	 	 
	 	Taxpayer Identification Number

	 
	 	 	 
	 	 	Signature

 

    	 	 	 

    	 

    

 

EXHIBIT B

 

[FORM OF ASSIGNMENT]

 

 

To be executed by the registered holder
if such holder

desires to transfer the Warrant Certificate.

 

FOR VALUE
RECEIVED                                                                                                      hereby
sells, assigns and transfers unto

 

	 
	(Please print name and address of transferee)

 

this Warrant Certificate, together with
all right, title and interest therein, and does hereby irrevocably constitute and appoint ________________ Attorney, to transfer
the within Warrant Certificate on the books of the within-named Company, with full power of substitution.

 

	Dated: 	 	 	 	 	 
	 	 	 	Signature  	 	 
	 	 	 	(Signature must conform in all respects to name of holder as 

specified on the face of the Warrant Certificate.)
	 	 	 	 
	 	 	 	 	 
	 	 	 	
        (Insert Social Security
        or Other

        Identifying Number of Holder)

	 	 	 	 	 
	 	 	 	 
	 	 	 	Signature Guaranteed

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