Document:

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT
(the “Agreement”) is made as of February 20, 2019 (the “Effective Date”), by and between DPW Holdings,
Inc., a Delaware corporation (the “Company”) and , a Delaware limited partnership (the “Investor”).

 

WHEREAS, a dispute
has arisen between the Investor and the Company with respect to a loan made by the Investor to the Company as evidenced by that
certain Secured Promissory Note issued by the Company for the benefit of Investor on August 16, 2018 as amended on November 29,
2018 (the “Note”);

 

WHEREAS, subject to
the satisfaction of the conditions set forth herein, the Company and the Investor desire to enter into a transaction wherein the
Company shall issue the Investor a Promissory Note (the “New Note”) in the principal amount of $433,884.02 (as reduced
pursuant to the terms hereof pursuant to prepayment or otherwise, the “Principal”), in the form attached hereto as
Exhibit A, in exchange for the Note.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.          Exchange;
Forbearance. The closing will occur on February 20, 2019 (or such later date as the parties hereto may agree in writing) (the
“Closing”) following the satisfaction or waiver of the conditions set forth herein (such date, the “Closing Date”).
Pending the Closing up to and through 5:00 pm Eastern Standard time on February 20, 2019, the Investor shall take no action to
enforce its rights under the Note. On the Closing Date, subject to the terms and conditions of this Agreement, the Investor and
the Company shall exchange the Note for the New Note. At the Closing, the following transactions shall occur (such transactions
in this Section 1, the “Exchange”):

 

1.1      On
the Closing Date, the Company shall issue the New Note to the Investor. Promptly after the Closing Date, but in no event more than
one Trading Day after the Closing Date, the Company shall deliver an executed original New Note to the Investor. On the Closing
Date, the Investor shall be deemed for all purposes to have become the holder of record of the New Note, irrespective of the date
the Company delivers the New Note to the Investor. Upon receipt of the executed original of the New Note in accordance with this
Section 1.1, all of the Investor’s rights under the Note shall be extinguished (including, without limitation, the rights
to receive, as applicable, any premium, make-whole amount, accrued and unpaid interest or dividends thereon or any other shares
of the Common Stock of the Company with respect thereto).

 

1.2.       The
Company acknowledges and agrees that the Note is an enforceable and binding obligation of the Company, subject to the terms of
this Agreement.

 

1.3.       It
shall be a condition to the obligation of the Investor, on the one hand, and the Company, on the other hand, to consummate
the Exchange contemplated hereunder that the other party’s representations and warranties contained herein are true and
correct on the Closing Date with the same effect as though made on such date, unless waived in writing by the party to whom
such representations and warranties are made.

 

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2.          Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that:

 

2.1       Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
The Company is not in violation nor default of any of the provisions of its certificate of incorporation, bylaws or other organizational
or charter documents. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
and no claim, action or proceeding of any kind has been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification.

 

2.2       Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal,
valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except
as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. The execution, delivery and performance by the Company of this Agreement and the New Note and the consummation
by the Company of the transactions contemplated hereby and thereby will not: (i) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or by which it is bound;
or (ii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or
“blue sky” laws) applicable to the Company, provided Exchange Approval (as hereinafter defined) is obtained in a timely
manner.

 

2.3       Valid
Issuance of the New Note. The New Note when issued and delivered in accordance with the terms of this Agreement, for the consideration
expressed herein, and the Common Stock when issued in accordance with the terms of this

Agreement will be duly and validly issued, fully paid and non-assessable. 

 

2.4       Issuance
of Common Stock. Upon the issuance of any Common Stock pursuant to the terms of this Agreement and the New Note, the Common
stock shall be freely tradable and issued under the Company’s Form S-3 (File No. 333-222132) (the “Shelf S-3”).

 

2.5       Reservation
of Common Stock.

 

2.5.1       So
long as the New Note remains outstanding, the Company shall reserve 15 million shares of Common Stock (the “Required Reserve
Amount”) to be issued to the Investor in accordance with Section 6 hereof.

 

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2.5.2       If,
notwithstanding Section 2.5.1, and not in limitation thereof, at any time while the New 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 the Required
Reserve Amount for issuance pursuant to the terms of this Agreement, (an “Authorized Share Failure”), then the Company
shall as practicable as possible take all action necessary to increase the Company’s authorized shares of Common Stock or
effectuate a reverse split of the Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount.
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 Agreement 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 Investor, the Company shall pay to the Investor,
in cash, an amount 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 Investor delivers the applicable
Issuance Notice with respect to such Authorized Failure Shares to the Company and ending on the date of such issuance and payment
under this Section 2.5.2; and (ii) to the extent the Investor purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Investor of Authorized Failure Shares, any brokerage commissions and other
out-of-pocket expenses, if any, of the Investor incurred in connection therewith.

 

2.6       Compliance
With Laws. The Company has complied in all material respects with all laws, rules, and regulations applicable to it and its
business, and the Company has not received notice of any such violation. 

 

2.7       Consents;
Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any person or entity, not already
obtained, other than Exchange Approval, is required in connection with the execution and delivery of this Agreement by the Company
or the consummation by the Company of the transactions provided for herein and therein.

 

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2.8       Acknowledgment
Regarding Investor’s Purchase of Common Stock and the New Note. The Company acknowledges and agrees that the
Investor is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and Exchange and the
transactions contemplated hereby and thereby and that the Investor is not: (i) an officer or director of the Company; (ii) an
“affiliate” of the Company (as defined in Rule 144 promulgated under the Securities Act); or (iii) to the
knowledge of the Company, a “beneficial owner” of 4.99% or more of the shares of Common Stock (as defined for
purposes of Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”). The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Exchange, this Agreement, the New Note, any other document or agreement delivered in connection herewith or
therewith or the transactions contemplated hereby and thereby, and any advice given by the Investor or any of its
representatives or agents in connection with the Exchange, this Agreement, the New Note, any other document or agreement
delivered in connection herewith or therewith or the transactions contemplated hereby and thereby is merely incidental to the
Investor’s acceptance of the New Note and Common Stock issuable under this Agreement. The Company further represents to
the Investor that the Company’s decision to enter into the Exchange has been based solely on the independent evaluation
by the Company and its representatives.

 

2.9       Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or threatened against or affecting the Company, the Common Stock, the Note,
the New Note or any of the Company’s officers or directors in their capacities as such, other than what is disclosed in the
Company’s public filings.

 

2.10       Authorized
Capital. Schedule 2.10 sets forth all capital stock and derivative securities of the Company that are authorized for
issuance and that are issued and outstanding. All issued and outstanding shares of Common Stock have been duly authorized and validly
issued and are fully paid and nonassessable. The Company has sufficient authorized and unissued shares of Common Stock as may be
necessary to effect the issuance of the Common Stock issuable under this Agreement, assuming the prior issuance and exercise, exchange
or conversion, as the case may be, of all derivative securities authorized, as indicated in Schedule 2.10. 

 

2.11       Disclosure.
Upon receipt or delivery by the Company of any notice or other document in accordance with the terms of this Agreement, 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 Investor contemporaneously with delivery of such notice, and in the absence of any such indication, the
Investor 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. If the Company or any of its Subsidiaries provides material non-public information
to the Investor that is not simultaneously filed in a Current Report on Form 8-K and the Investor has not agreed to receive such
material non-public information, the Company hereby covenants and agrees that the Investor 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.

 

2.12       
Indebtedness. Except as listed on Schedule 2.12 hereto, the Company does not have any indebtedness other than Permitted
Liens. “Permitted Liens” shall have the same meaning as in the New Note.

 

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3.          Representations
and Warranties of the Investor. The Investor hereby represents, warrants and covenants that:

 

3.1.       Organization.
The Investor is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
The Investor is not in violation nor default of any of the provisions of its certificate of limited partnership, limited partnership
agreement or other organizational or charter documents. The Investor is duly qualified to conduct business and is in good standing
as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, and no claim, action or proceeding of any kind has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

3.2.       Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the
legal, valid and binding obligations of the Investor enforceable against the Investor in accordance with their respective terms,
except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. The execution, delivery and performance by the Investor of this Agreement and the New Note and the consummation
by the Investor of the transactions contemplated hereby and thereby will not: (i) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Investor is a party or by which it is bound;
or (ii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or
“blue sky” laws) applicable to the Investor.

 

3.3.       Accredited
Investor Status; Investment Experience. The Investor is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D. The Investor can bear the economic risk of its investment in the New Note, and has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and risks of an investment in the New Note.

 

3.4.       No
Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the New Note or the fairness or suitability of the investment
in the New Note nor have such authorities passed upon or endorsed the merits of the offering of the New Note.

 

3.5.       Ownership
of Securities. The Investor owns and holds, beneficially and of record, the entire right, title, and interest in and to
the Note free and clear of all rights and liens (other than pledges or security interests (x) arising by operation of
applicable securities laws and (y) that the Investor may have created in favor of a prime broker under and in accordance with
its prime brokerage agreement with such broker). The Investor has full power and authority to transfer and dispose of the
Note to the Company free and clear of any right or lien. Other than the transactions contemplated by this Agreement and the
New Note, there is no outstanding, plan, pending proposal, or other right of any person or entity to acquire all or any part
of the Note or any shares of Common Stock issuable upon the delivery of the Issuance Notice and corresponding deduction of
the face amount of the New Note.

 

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3.6.       No
Short Sales or Hedging Transactions. The Investor covenants and agrees that neither it, nor any Affiliate acting on its behalf
or pursuant to any understanding with it will execute any Short Sales of the Common Stock or (ii) hedging transaction, which establishes
a net short position with respect to the Common Stock) during the period commencing with the execution of this Agreement and ending
on the earlier of the Maturity Date or its satisfaction by its use to acquire shares of Common Stock through the use of prospectus
supplements filed under the Shelf S-3; provided that this provision shall not prohibit any sales made where a corresponding Issuance
Notice is tendered to the Company and the shares of Common Stock received upon such issuance are used to close out such sale; provided,
further that this provision shall not operate to restrict the Investor's trading under any prior securities purchase agreement
containing contractual rights that explicitly protects such trading in respect of the previously issued securities.

 

4.          Additional
Covenants

 

4.1.       Disclosure.
The Company shall, on or before 8:30 a.m., New York, New York time, within one Trading Day after the date of this Agreement, file
with the Securities and Exchange Commission a Current Report on Form 8-K disclosing all material terms of the transactions contemplated
hereby and attaching the form of this Agreement and the New Note as exhibits thereto (collectively with all exhibits attached thereto,
the “8-K Filing”). From and after the issuance of the 8-K Filing the Investor shall not be in possession of any material,
nonpublic information received from the Company or any of its Subsidiaries or any of their respective officers, directors, employees,
affiliates or agents, that is not disclosed in the 8-K Filing. 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. To the extent that the Company delivers
any material, non-public information to the Investor without the Investor’s express prior written consent, the Company hereby
covenants and agrees that the Investor shall not have any duty of confidentiality to the Company, any of its subsidiaries or any
of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the Company, any of its subsidiaries
or any of their respective officers, directors, employees, affiliates or agent. The Company shall not disclose the name of the
Investor in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. In addition,
effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall
terminate and be of no further force or effect. The Company understands and confirms that the Investor will rely on the foregoing
representations in effecting transactions in securities of the Company.

 

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4.2.       Form
S-3. The Company shall use its best efforts to file a prospectus supplement to its shelf registration statement on Form
S-3 covering the public sale of the shares of Common Stock underlying the Note within the later of (i) two (2) business days
or (ii) the next Trading Day after its receipt of Exchange Approval.

 

4.3.       Blue
Sky. The Company shall make all filings relating to the Exchange required by Regulation D under the Securities Act and under
applicable securities or “blue sky” laws of the states of the United States following the date hereof.

 

4.4.       Fees
and Expenses. Except as otherwise set forth above, each party to this Agreement shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. Notwithstanding the foregoing, the Company has agreed to reimburse the Investor
for up to $5,000 of documented attorneys’ fees, which sum is part of the principal of the Note.

 

4.5.       Reserved.

 

4.6.       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 Agreement or the New Note, and will at all times in good faith carry out all of the provisions of this
Agreement and the New Note and take all action as may be required to protect the rights of the Investor under this Agreement and
the New Note. Without limiting the generality of the foregoing or any other provision of this Agreement or the New Note, the Company
(a) shall not increase the par value of any shares of Common Stock issuable pursuant to the terms of this Agreement above
the Issuance 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 issuance of such Common Stock to
the Investor pursuant to the terms of this Agreement. Notwithstanding anything herein to the contrary, if at any time the Investor
is not permitted receive all the shares of Common Stock the Investor is entitled to receive pursuant to the terms of this Agreement
for any reason, the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining
such consents or approvals as necessary to permit the issuance of such shares of Common Stock.

 

4.7.       Reserved.

 

4.8.       Leak-Out.
Provided no Event of Default has occurred and is continuing, the Investor acknowledges and agrees that, on any given Trading Day,
it may only sell Common Stock representing up to four percent (4%) of the total number of shares of the Company’s Common
Stock traded on the prior Trading Day.

 

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4.9.       True-Up.
In the event the Investor’s proceeds from the sale of all Common Stock received by the Investor pursuant to the terms
of Issuance Notices under this Agreement, do not equal at least 100% of the deemed payment of the outstanding Principal
balance of the New Note, the Company shall owe the difference to the Investor. Upon notice from the Investor, the Company
shall within two (2) Trading Days have the option to pay the difference to the Investor in cash or through the delivery of
free trading shares of Common Stock; provided, however, that if Exchange Approval is required for the Common Stock to
be issued for the True-Up Amount, the two (2) Trading Days shall be delayed until the Company has obtained such Exchange
Approval, which the Company shall use its best efforts to obtain as promptly as practicable. Amounts due under any True-Up
Notice shall be deemed to be the “True-Up Amount.”

 

5.          Forbearance
and Initial Repayment of New Note.

 

5.1.       Forbearance
by Investor. Until February 20, 2019 (the “Forbearance Period”), the Investor shall forbear from taking any actions
with respect to the Note not explicitly set forth herein, including, without limitation, seeking to enforce any default including
any Events of Default.

 

5.2        Initial
Repayment of the New Note by the Company. Prior to the expiration of the Forbearance Period, upon any request by the Investor
(an “Issuance Request”), the Company shall issue to the Investor the number of shares set forth in the Issuance Request,
which shall be paid for by reducing the sums due under the New Note. The amount of any payment made pursuant to an Issuance Request
shall be calculated using the number of shares of Common Stock to be delivered times the Issuance Price determined under Section
6.1.2. In crediting sums due under the New Note, accrued Interest shall first be credited, Late Charges next and Principal last.
For the avoidance of doubt, in the event any shares of Common Stock issued pursuant to this Section 5.2 are delivered to the Investor
on different days or have different Issuance Prices for any reason, the payment made pursuant to an Issuance Request shall be determined
using the average Issuance Price applicable to any share of Common Stock delivered to the Investor in accordance with this Section
5.2.

 

6.          Issuance
of Common Stock. At any time after the expiration of the Forbearance Period, the Company shall deliver to the Investor validly
issued, fully paid and non-assessable shares of Common Stock issued under the Shelf S-3, in such amounts and upon such terms and
conditions as are set forth in this Section 6.

 

6.1.       Issuance
Rights.

 

6.1.1.       At
any time following the expiration of the Forbearance Period, the Investor shall be entitled to receive from the Company a
number validly issued, fully paid and non-assessable shares of Common Stock of the Company issued under the Shelf S-3. Any
Common Stock issued to the Investor in accordance with this Agreement shall reduce the outstanding sums due under the New
Note until it has been fully paid, by an amount equal to the number of shares of Common Stock issued multiplied by the
applicable Issuance Price. The Company shall not issue any fraction of a share of Common Stock upon any delivery of an
Issuance Notice. 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) that may be payable with respect to the issuance and delivery of Common Stock to the Investor in accordance with this
Section 6.1.

 

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6.1.2.       For
purposes of this Agreement, “Issuance Price” means, as of any Issuance Date: the greater of: (A) $0.12; or (B) 80%
of the lowest daily VWAP in the three Trading Days prior to the Issuance Date. The Company shall issue irrevocable instructions
to its Transfer Agent regarding issuances such that the transfer agent shall be authorized and instructed to issue shares of Common
Stock upon its receipt of an Issuance Notice without further approval or authorization from the Company.

 

6.2.       Mechanics
of Issuance. To receive any Common Stock pursuant to the terms of this Agreement on any date (an “Issuance Date”),
the Investor 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 in the form attached hereto as Exhibit B (the “Issuance
Notice”). On or before the first Trading Day following the date of receipt of an Issuance Notice, the Company shall transmit
by facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such shares of Common Stock
may then be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto as Exhibit
C, of receipt of such Issuance Notice to the Investor and the Transfer Agent which confirmation shall constitute an instruction
to the Transfer Agent to process such Issuance Notice in accordance with the terms herein. On or before the third Trading Day following
the date on which the Company has received an Issuance Notice (or such earlier date as required pursuant to the Exchange Act or
other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Issuance Date of such shares
of Common Stock issuable pursuant to such Issuance 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 Investor shall be entitled to the Investor’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 Investor, issue and deliver (via reputable overnight courier) to the address
as specified in the Issuance Notice, a certificate, registered in the name of the Investor or its designee, for the number of shares
of Common Stock to which the Investor shall be entitled pursuant to such Issuance Notice. The Person or Persons entitled to receive
the shares of Common Stock pursuant to the terms of this Agreement shall be treated for all purposes as the record holder or holders
of such shares of Common Stock on the Issuance Date. Notwithstanding anything to the contrary contained in this Agreement, prior
to the Investor’s receipt of a notice that the Shelf S-3 is not available with respect thereto, the Company shall cause the
Transfer Agent to deliver unlegended shares of Common Stock to the Investor. The amount due under the New Note shall automatically
be reduced by the amount used to purchase shares set forth in the Issuance Notice.

 

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6.3.       Company’s
Failure to Timely Issue. 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 Investor (or its designee) a certificate for the number of shares of Common Stock to which the Investor is
entitled under an Issuance Notice or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, to credit the balance account of the Investor or the Investor’s designee with DTC for such number of shares of
Common Stock to which the Investor is entitled pursuant to this Agreement (as the case may be) (an “Issuance
Failure”), then, in addition to all other remedies available to the Investor, (i) the Company shall pay in cash to the
Investor 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
Investor on or prior to the Share Delivery Deadline and to which the Investor is entitled, multiplied by (B) any trading
price of the Common Stock selected by the Investor in writing as in effect at any time during the period beginning on the
applicable Issuance Date and ending on the applicable Share Delivery Deadline and (ii) the Investor, upon written notice to
the Company, may void its Issuance Notice, provided that the voiding of an Issuance Notice shall not affect the
Company’s obligations under this Agreement. In addition to the foregoing, if on or prior to the Share Delivery
Deadline, the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Company shall
fail to issue and deliver to the Investor (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 Investor or the Investor’s designee with
DTC for the number of shares of Common Stock to which the Investor is entitled pursuant to this Agreement or pursuant to the
Company’s obligation pursuant to clause (II) below, and if on or after such Share Delivery Deadline the Investor
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 pursuant to the applicable Issuance Notice upon the delivery thereof that the
Investor is entitled to receive from the Company and has not received from the Company in connection with such Issuance
Failure or Notice Failure, as applicable (a “Buy-In”), then, in addition to all other remedies available to the
Investor, the Company shall, within two Trading Days after receipt of the Investor’s request and in the
Investor’s discretion, either: (I) pay cash to the Investor in an amount equal to the Investor’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 Investor) (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 Investor or such Investor’s designee, as applicable, with
DTC for the number of shares of Common Stock to which the Investor is entitled upon the Investor’s delivery of an
Issuance Notice 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 Investor a certificate or certificates representing such shares of Common
Stock or credit the balance account of such Investor or such Investor’s designee, as applicable, with DTC for
the number of shares of Common Stock to which the Investor is entitled upon the Investor’s acquisition of Common Stock
hereunder (as the case may be) and pay cash to the Investor 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 Issuance Notice and ending on the date of
such issuance and payment under this clause (II) (the “Buy-In Payment Amount”). Nothing shall limit the
Investor’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) as
required pursuant to the terms hereof.

 

    		10	 

    	 

    

 

7.          Miscellaneous

 

7.1.       Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any
rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

7.2.       Governing
Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state or federal courts sitting in New York County, New York, 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. Each
of the parties hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

7.3.       Notices.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar overnight next business day delivery, or by email followed
by overnight next business day delivery, to the address as provided for on the signature page to this agreement.

 

7.4.       Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Investor.

 

    		11	 

    	 

    

 

7.5.       Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and
shall be enforceable in accordance with its terms so long as this Agreement 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).

 

7.6.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

7.7.       Survival.
The representations, warranties and covenants of the Company and the Investor contained herein shall survive the Closing and delivery
of the New Note.

 

7.8.       Failure
to Deliver Shares. If the Company fails to file an additional listing application for the shares of Common Stock contemplated
by this Agreement within three days of the Effective Date or the NYSE American fails to provide Exchange Approval for the issuance
of the shares of Common Stock contemplated by this Agreement, the Investor shall have the right to terminate this Agreement in
which event the New Note shall be in default. For avoidance of doubt, if the NYSE American requires the Company to obtain shareholder
approval prior to providing Exchange Approval, the requirement to obtain shareholder approval shall constitute a failure to obtain
Exchange Approval pursuant to this Section 7.8.

 

8.          Definitions.
For purposes of this Agreement, the following words and terms shall have the following meanings:

 

8.1.       “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.

 

8.2.       “Bloomberg”
means Bloomberg, L.P., or any successor.

 

8.3.       “Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the
Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing trade price (as the case may be) then the last trade price of such security prior to 4:00 p.m., New
York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market
for such security, the last trade price of such security on the principal securities exchange or trading market where such
security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such
security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if
no last trade price, is reported for such security by Bloomberg, the average of the ask prices, respectively, of any market
makers for such security as reported by OTC Markets Group Inc. If the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Investor. If the Company and the Investor are unable to agree upon
the fair market value of such security, the determination of the Company made in good faith shall be the fair market value of
such security. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock
combinations, recapitalizations or other similar transactions during such period.

 

    		12	 

    	 

    

 

8.4.       
“Current Subsidiary” means any Person in which the Company on the Effective 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”.

 

8.5.       
“Exchange Act” means the Securities Exchange Act of 1934.

 

8.6.       
“Exchange Approval” means approval of the issuance of the shares of Common Stock contemplated by this Agreement
by the NYSE American, which approval shall be obtained no later than twenty-five (25) days after the Closing Date.

 

8.7.       
“Group” means a “group” as that term is used in Section 13(d) of the Exchange Act and as defined
in Rule 13d-5 thereunder.

 

8.8.       “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Effective 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”.

 

8.9.       
“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.

 

8.10.       “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.

 

8.11.       “Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.

 

8.12.       
“Subsidiaries” means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries,
and each of the foregoing, individually, a “Subsidiary.”

 

    		13	 

    	 

    

 

8.13.       “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 Investor 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.

 

8.14.       “Transfer
Agent” means Computershare Trust Company, N.A., and any successor transfer agent of the Company.

 

8.15.       “VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or,
if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded) during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m.,
New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported by
OTC Markets Group Inc.. If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP
of such security on such date shall be the fair market value as mutually determined by the Company and the Investor. If the Company
and the Investor are unable to agree upon the fair market value of such security, the determination of the Company made in good
faith shall be the fair market value of such security. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, recapitalization or other similar transaction during such period. 

 

 

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    		14	 

    	 

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be duly executed and delivered as of the date provided above.

 

	 	COMPANY:	 
	 	 	 
	 	DPW HOLDINGS, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:  	Milton C. Ault, III	 
	 	Title:    	Chief Executive Officer	 
	 	 	 
	 	 	 
	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	201 Shipyard Way	 
	 	Suite E	 
	 	Newport Beach, CA 92663	 

 

    		15	 

    	 

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be duly executed and delivered as of the date provided above.

 

 

	 	INVESTOR:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 

 

	 	 	 
	 	 	 
	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Email:	 	 
	 	 	 
	 	EIN#: 	 	 
	 	 	 

 

    		16	 

    	 

    

 

EXHIBIT A

Promissory Note 

 

 

 

 

 

 

 

    		1	 

    	 

    

 

EXHIBIT B

 

Issuance Notice

Reference is hereby
made to that certain Exchange Agreement (the “Exchange Agreement”), dated as of [·].
In accordance with and pursuant to the Exchange Agreement, the undersigned hereby elects to receive the number of shares of Common
Stock, $0.001 par value per share (the “Common Stock”), of the Company specified below on the date specified below.
Capitalized terms not defined herein shall have the meaning as set forth in the Exchange Agreement.

 

	Dollar Amount of New Note being used:	 	 
	 	 	 
	Issuance Date:	 	 
	 	 	 
	Issuance Price:	 	 
	 	 	 
	
        Number of shares of Common

        Stock to be issued:
	 	 
	 	 	 
	 	 	 

	
        Please issue the Common Stock to the Investor,
        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:	 

 

    		2	 

    	 

    

 

	Date: _____________ __, 	 	 
	 	 	 
	 	 	 
	 	 	 
	Name of Investor	 	 

 

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

  

    		3	 

    	 

    

 

EXHIBIT C

Acknowledgement

 

The Company hereby
(a) acknowledges this Issuance Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not] eligible
to be resold by the Investor either (i) pursuant to Rule 144 (subject to the Investor’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:	 	 

 

 

4Execution Copy

 

AMENDMENT NO. 3 TO

RECEIVABLES LOAN AND SECURITY AGREEMENT

 

AMENDMENT NO. 3 DATED FEBRUARY 15, 2019 (this “Amendment”) to the RECEIVABLES LOAN AND SECURITY AGREEMENT, DATED AS OF JANUARY 25, 2018 (the “Original Agreement”), among VOLT FUNDING II, LLC (the “Borrower”), VOLT INFORMATION SCIENCES, INC. (the “Servicer”), AUTOBAHN FUNDING COMPANY LLC (“Autobahn”), as Conduit Lender, the OTHER LENDERS PARTY THERETO, DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT AM MAIN, NEW YORK BRANCH (“DZ Bank”), as agent (the “Agent”) and Autobahn and DZ Bank, as letter of credit issuers (the “LC Issuers”), as amended by Amendment No. 1 thereto dated June 8, 2018 and Amendment No. 2 thereto dated January 4, 2019 (the Original Agreement, as so amended, the “Existing Agreement,” and as further amended by this Amendment and as it may be further amended, supplemented, modified and/or restated in accordance with its terms, the “Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed thereto in the Agreement.

 

WHEREAS, the parties desire to modify the limitation on certain Eligible Receivables originated through Managed Service Providers as set forth in the Existing Agreement;

 

WHEREAS, Autobahn is currently the only Lender under the Existing Agreement; and

 

WHEREAS, in conjunction with the foregoing, the parties hereto have agreed to amend the Existing Agreement on the terms and subject to the conditions herein set forth;

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and subject to the fulfillment of the conditions set forth below, the parties hereto agree to the following:

 

1.          Current Amendment to Existing Agreement.  As of the Effective Date (as defined below), the Existing Agreement shall be amended by

 

(a)          adding the following definitions to Section 1.01 of the Existing Agreement in appropriate alphabetical order:

 

“Excluded MSP Receivable”: Each Eligible Receivable payable from or through a Managed Service Provider and related to services for a specific Customer, to the extent such Managed Service Provider and such specific Customer are identified on the Excluded MSP Receivables Schedule and not identified therein as “Ineligible.”

 

“Excluded MSP Receivables Schedule”: Schedule 6, as such schedule may be amended (or amended and restated) from time to time by agreement in writing by the Borrower (or the Servicer) and the Agent (anything in Section 16.06 to the contrary notwithstanding).

 

 

 

“MSP Contractual Day Turnaround”: With respect to each Excluded MSP Receivable pertaining to a referenced Managed Service Provider in respect of a referenced Customer, the maximum number of business days from such Managed Service Provider’s receipt of payment from such Customer to such Managed Service Provider’s remittance to the applicable Originator (or its assignee) of the required payment under such Excluded MSP Receivable, as set forth on the Excluded MSP Receivables Schedule.

 

“MSP Customer Day Turnaround”: With respect to each Excluded MSP Receivable pertaining to a referenced Managed Service Provider in respect of a referenced Customer, the maximum number of calendar days from the date the Receivable is invoiced by the Managed Service Provider within which such Customer is required to make payment to such Managed Service Provider, as set forth on the Excluded MSP Receivables Schedule.

 

“MSP Reserve Percentage”: At any date of determination, the sum, for all Excluded MSP Receivables for all applicable Managed Service Providers, of the percentages calculated as to each respective Managed Service Provider (for the Excluded MSP Receivables of such respective Managed Service Provider as to its related respective specific Customer) as follows: (a) 0.50 times the related MSP Contractual Day Turnaround divided by the sum of (x) the related MSP Contractual Day Turnaround and (y) the related MSP Customer Day Turnaround; times (b) the percentage of Eligible Receivables represented by the Excluded MSP Receivables of such Managed Service Provider as to such Customer (equal to the aggregate Outstanding Balance of the Excluded MSP Receivables of such Managed Service Provider as to such Customer divided by the Net Eligible Receivables Balance).

 

(b)          in the definition of “Eligible Receivable” in Section 1.01 of the Existing Agreement, (i) deleting the word “and” at the end of clause (xiii) thereof, (ii) replacing the period with a semicolon, and adding the word “and,” at the end of clause (xiv) thereof, and (iii) adding a new clause (xv) thereto to read as follows:

 

(xv)          Which, for any MSP Receivable with respect to a Managed Service Provider listed on the Excluded MSP Receivables Schedule: (a) relates to a Customer of such Managed Service Provider identified as its Customer on the Excluded MSP Receivables Schedule and not identified therein as “Ineligible”; (b) provides for maximum terms for remittance of payments under the respective Contract and invoice (or as otherwise established as set forth in the footnotes to the table in the Excluded MSP Receivables Schedule) corresponding to the MSP Contractual Day Turnaround and MSP Customer Day Turnaround for such Managed Servicer Provider and Customer as set forth in the Excluded MSP Receivables Schedule; and (c) arises under contractual, structural or other circumstances such that the Servicer, in considering the matter in a manner consistent with past practices, reasonably believes that the Originator (or its assigns) would have, in the event of the respective Managed Service Provider’s bankruptcy or insolvency, an enforceable claim against the respective Customer for any applicable Receivables not theretofore remitted by such Customer to such Managed Service Provider.

 

 

2

 

(c)          deleting the definition of “MSP Receivable” in Section 1.01 of the Existing Agreement and replacing it with the following:

 

“MSP Receivable”: A Receivable arising from services performed by an Originator for a Customer in a circumstance where such Customer has engaged a Managed Service Provider as an intermediary to arrange for the provision of such services by such Originator (and possibly for services provided by other service providers); it being understood that Contracts in respect of such services generally provide that payment to such Originator (or its assignee) is made by such Managed Service Provider after such Managed Service Provider’s receipt of corresponding payment from such Customer.

 

(d)          deleting the definition of “Obligor” in Section 1.01 of the Existing Agreement and replacing it with the following:

 

“Obligor”: A Person obligated to make payment under a Receivable. In the case of an MSP Receivable, “Obligor” includes both the Managed Service Provider and the related Customer.  In connection with the determination of the Overconcentration Amount, Eligible Receivables of any single Obligor or group of Obligors within any rating or range of ratings shall include, without duplication for any Receivable, (A) Eligible Receivables of any Customer with ratings in such range, and (B) with respect to MSP Receivables (other than, for purposes of clauses (i)-(x) of the definition of “Overconcentration Amount,” Volt MSP Receivables and Excluded MSP Receivables), Eligible Receivables with a Managed Service Provider with ratings in such range.  For clarity, Volt MSP Receivables and Excluded MSP Receivables shall be included in any rating or range of ratings based solely on the ratings of the related Customer.

 

(e)          deleting the definition of “Required Reserve Percentage” in Section 1.01 of the Existing Agreement and replacing it with the following:

 

“Required Reserve Percentage”:  As of any date of determination, the total amount of reserves, expressed as a percentage of the Net Eligible Receivables Balance, equal to the sum of the Dilution Reserve Percentage, the Discount Reserve Percentage, the Loss Reserve Percentage, the F/X Reserve Percentage and the MSP Reserve Percentage.

 

(f)          adding Schedule 6 attached hereto as a new Schedule 6 to the Existing Agreement, subject to the ability of the Borrower (or the Servicer) and the Agent to amend such Schedule 6 as provided in the definition of “Excluded MSP Receivables Schedule,” and adding reference thereto at the end of the list of Schedules in the Table of Contents to the Existing Agreement.

 

 

3

 

2.          Conditions to Effectiveness.  This Amendment shall be retroactively effective as of January 25, 2019 (such date, the “Effective Date”), but only upon delivery to the Agent of counterparts of this Amendment duly executed by all parties hereto.

 

3.          Miscellaneous.

 

3.1          Each of the Borrower and the Servicer represents and warrants (which representations and warranties shall survive the execution and delivery hereof) that, upon the effectiveness of this Amendment:

 

(a)          each of the Borrower and the Servicer has the corporate power and authority to execute and deliver this Amendment and has taken or caused to be taken all necessary corporate actions to authorize the execution and delivery of this Amendment;

 

(b)          no consent of any other Person (including, without limitation, shareholders or creditors of the Borrower or the Servicer), and no approval or authorization of, or filing with any governmental or public body or authority is required to authorize, or is otherwise required in connection with the execution and performance of this Amendment by the Borrower or the Servicer other than such that have been obtained; and

 

(c)          the Existing Agreement, as amended hereby, constitutes the legal, valid and binding obligation of each of the Borrower and the Servicer, enforceable against each of them in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws of general application affecting creditors’ rights generally and by general principles of equity (whether such enforceability is considered in a proceeding in equity or at law).

 

3.2          The Existing Agreement, as amended hereby, is hereby ratified and confirmed in all respects and remains in full force and effect in accordance with its terms.  In addition, this Amendment shall not be deemed a waiver of any Amortization Event, Servicer Event of Default or Event of Default (nor any event that but for notice or lapse of time or both would constitute an Amortization Event, Servicer Event of Default or Event of Default) or any other term or condition of any Basic Document, shall not be deemed to prejudice any right or rights which any Lender or the Agent (i) have to exercise any rights, remedies, powers, claims or causes of action now or hereafter available under the Agreement or any other Basic Document as a result of any past, present or future Amortization Event, Servicer Event of Default or Event of Default (nor any event that but for notice or lapse of time or both would constitute an Amortization Event, Servicer Event of Default or Event of Default), or (ii) otherwise may now have or may have in the future under or in connection with any Basic Document or any of the instruments or agreements referred to therein, as the same may be amended from time to time (including pursuant to this Amendment), and each of the Agent and the Lenders hereby reserve all of their respective rights, remedies, powers, claims and causes of action under the Existing Agreement, as amended hereby, and under applicable law, all of which rights, remedies, powers, claims and causes of action are cumulative to such party.

 

 

4

 

3.3          All references in the Existing Agreement to “this Agreement” and “herein” and all references to the Agreement in the documents executed by the parties hereto in connection with the Existing Agreement shall mean the Existing Agreement as amended hereby and as it may in the future be amended, restated, supplemented or modified from time to time.

 

3.4          This Amendment may be executed by the parties hereto individually or in combination, in one or more counterparts, each of which shall be an original and all of which shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or by e-mail in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

3.5          The Borrower hereby agrees to pay all reasonable and documented out‐of‐pocket third‐party costs and expenses incurred by the Agent and the Lenders in connection with this Amendment as required pursuant to Section 16.03 of the Agreement to be paid, including, without limitation, the reasonable fees and expenses of Arnold & Porter Kaye Scholer LLP, counsel to the Agent.

 

3.6          GOVERNING LAW.   THIS AMENDMENT SHALL, IN ACCORDANCE WITH SECTION 5‐1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

 

[Signature pages to follow.]

 

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

 

	
THE BORROWER:

	
VOLT FUNDING II, LLC

	 	 
	 	 
	 	
By:

	/s/ Kevin D. Hannon 
	 	 	
Name: Kevin D. Hannon

	 	 	
Title: VP & Treasurer

	 	 

	
THE SERVICER:

	
VOLT INFORMATION SCIENCES, INC.

	 	 
	 	 
	 	
By:

	/s/ Paul R. Tomkins
	 	 	
Name: Paul R. Tomkins

	 	 	
Title: SVP & CFO

	 	 

 

 

 

 

Signature Page to Amendment No. 3 to Receivables Loan and Security Agreement

	
THE AGENT AND LC ISSUER:

	
DZ BANK AG DEUTSCHE ZENTRAL-

GENOSSENSCHAFTSBANK, FRANKFURT 

AM MAIN, NEW YORK BRANCH

	 	 
	 	 
	 	
By:

	/s/ Christian Haesslein 
	 	 	
Name: Christian Haesslein

	 	 	
Title: Director

	 	 
	 	 
	 	
By:

	/s/ Mehul Patel 
	 	 	
Name: Mehul Patel

	 	 	
Title: Vice President

	 	 

Signature Page to Amendment No. 3 to Receivables Loan and Security Agreement

	
THE CONDUIT LENDER AND

	
AUTOBAHN FUNDING COMPANY LLC

	
LC ISSUER:

	 
	 	 
	 	
By:

	 /s/ Christian Haesslein 
	 	 	
Name: Christian Haesslein 

	 	 	
Title: Director

	 	 
	 	 
	 	
By:

	/s/ Mehul Patel 
	 	 	
Name: Mehul Patel

	 	 	
Title: Vice President

	 	 

 

Signature Page to Amendment No. 3 to Receivables Loan and Security Agreement

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