Document:

Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”),
which is dated August 11, 2014 (the “Effective Date”), is made by and between Ideal Power Inc., a Delaware corporation,
located at 4120 Freidrich Lane, Suite 100, Austin, Texas, 78744 and hereinafter referred to as “Company”, and Ryan
O’Keefe, whose address is 15505 Boulder Heights Austin, TX 78738, hereinafter referred to as “Executive.” The
purpose of this Agreement is to confirm the terms of the employment relationship between Company and Executive.

 

RECITALS

 

WHEREAS, Company wishes to retain the
services of Executive, and Executive wishes to render services to Company, as its Senior Vice President of Business Development;

 

WHEREAS, Company and Executive wish
to set forth in this Agreement the duties and responsibilities that Executive has agreed to undertake on behalf of Company, and
the responsibilities that Company will owe to Executive.

 

THEREFORE, in consideration of the
foregoing and of the mutual promises contained in this Agreement, Company and Executive (who are sometimes individually referred
to as a “Party” and collectively referred to as the “Parties”) agree as follows:

 

AGREEMENT

 

1.            TERM.

 

Company hereby employs Executive as Senior
Vice President of Business Development pursuant to the terms of this Agreement and Executive hereby accepts employment with Company
pursuant to the terms of this Agreement, which will continue until terminated pursuant to Section 11 or 12 below.

 

2.            GENERAL
DUTIES.

 

Executive shall devote his entire
productive time, ability, and attention to Company’s business during Executive’s employment. Executive shall
report to Company’s Chief Executive Officer and agrees to keep the Company’s CEO and Board of Directors (the
“Board”) fully informed with regard to critical issues affecting the value and reputation of Company.
Furthermore, in his capacity as Senior Vice President of Business Development, Executive shall be primarily responsible for
creating and executing the Company’s commercial strategy, revenue generation and all activities related to sales and
customer service to drive business growth, market share and shareholder value. Executive shall do and perform all services,
acts, or things necessary or advisable to discharge his duties under this Agreement, and such other duties as are commonly
performed by an employee of his rank in a publicly traded corporation or which may, from time to time, be prescribed by the
Company through the Chief Executive Officer and Board of Directors. Executive agrees to cooperate with and work to the best
of his ability with Company’s management team, which includes the Board and the officers and other employees, to
continually improve Company’s reputation in its industry for quality products and performance.

 

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3.            NONSOLICITATION
AND PROPRIETARY PROPERTY AND CONFIDENTIAL INFORMATION PROVISIONS.

 

As a condition of his employment with Company,
Executive has executed a Proprietary Information and Inventions Agreement, the terms of which are included by reference into this
Agreement.

 

4.            COMPLIANCE
WITH SECURITIES LAWS.

 

Executive acknowledges that he is subject
to the provisions of Sections 10 and 16 of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.
Executive acknowledges that Sections 10 and 16 and the rules and regulations promulgated thereunder may prohibit Executive from
selling or transferring his securities in Company. Executive agrees that he will comply with Company’s policies that relate
to securities laws, as stated from time to time.

 

5.            COMPENSATION.

 

(a)          Annual
Salary. Company shall pay to Executive an annual base salary in the amount of $225,000. The salary paid during Executive’s
employment shall be referred to in this Agreement as the “Annual Salary”. The Annual Salary shall be subject to any
tax withholdings and/or employee deductions that are applicable. The Annual Salary shall be paid to Executive in equal installments
in accordance with the periodic payroll practices of the Company for its employees. The Annual Salary will be subject to review
and adjustment at the discretion of the Board no less frequently than annually.

 

(b)          Bonus.
At least annually, Executive and the Compensation Committee of the Board of Directors shall meet to establish (i) performance
standards and goals to be met by Executive and (ii) cash bonus targets based on the performance standards and goals that are achieved.
The standards and goals will support a cash bonus of 50% of Executive’s Annual Salary. The standards and goals and the bonus
targets shall be mutually agreed to by Executive and the CEO as approved by the Compensation Committee. Nothing in this subsection
(b) shall prevent Executive and the CEO, and approved by the Compensation Committee, from mutually agreeing to alternatives to
the computation of the bonus to be paid to Executive in accordance with this subsection (b) (the “Bonus”), which may
be implemented and paid to Executive in place of the Bonus described herein. The Bonus shall be subject to any applicable tax
withholdings and/or employee deductions.

 

(c)          Cost
of Living Adjustment. Commencing as of January 1, 2015, and on each January 1st thereafter, the then effective Annual
Salary shall be increased (but not decreased) by an amount which shall reflect the increase, if any, in the cost of living during
the previous 12 months by adding to the Annual Salary an amount computed by multiplying the Annual Salary by the percentage by
which the level of the Consumer Price Index for the Austin Metropolitan Area, as reported on January 1st of the new year by the
Bureau of Labor Statistics of the United States Department of Labor has increased over its level as of January 1st of the prior
year.

 

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(d)          Participation
In Employee Benefit Plans. Executive shall have the same rights, privileges, benefits and opportunities to participate
in any of Company’s employee benefit plans which may now or hereafter be in effect on a general basis for executive officers
or employees. During Executive’s employment, the Company shall provide, at Company’s sole expense, medical, dental
and vision benefits for Executive, his spouse and children. At the discretion of the Board, Company may also provide, at its sole
expense (i) disability insurance which, in the event of Executive’s disability, will replace no less than 60% of the Annual
Salary being paid to Executive at the time the disability occurred and (ii) life insurance in an amount to be agreed upon by the
Board and Executive. Irrespective of the foregoing, Company may change any benefits contractor, or discontinue any benefit without
replacement, in its sole discretion, and any such change or discontinuance will not be a breach of this Agreement. In the event
Executive receives payments from the disability insurer, Company shall have the right to offset such payments against the Annual
Salary otherwise payable to Executive during the period for which such payments are made.

 

6.            EQUITY
COMPENSATION.

 

In accordance with that certain offer letter
dated August 5, 2014, Company will issue to Executive an option to purchase 70,000 shares of Company’s common stock. The
per share exercise price is equal to the closing price of Company’s common stock on September 8, 2014. The right to purchase
the common stock will vest in equal increments over 4 years, on the anniversary of the grant date, which is September 8, 2014.
The term of the option is 10 years. The terms of the option will be governed by the 2013 Equity Incentive Plan and the award agreement.
During Executive’s employment and subject always to the discretion of the Compensation Committee of the Board, Executive
will be eligible to receive additional awards from the 2013 Equity Incentive Plan (or any other equity incentive plan adopted by
the Board).

 

7.            REIMBURSEMENT
OF BUSINESS EXPENSES.

 

Company shall promptly reimburse Executive
for all reasonable business expenses incurred by Executive in connection with the business of Company. However, each such expenditure
shall be reimbursable only if Executive furnishes to Company adequate records and other documentary evidence required by federal
and state statutes and regulations issued by the appropriate taxing authorities for the substantiation of each such expenditure
as an income tax deduction.

 

8.            PAID
TIME OFF.

 

Executive shall be entitled to four weeks
of paid time off each year; provided, however, failure to use paid time off by the end of the year in which it is earned will prevent
the accumulation of additional paid time off in excess of four weeks. Said four weeks leave time includes sick leave time, vacation
time and personal days off.

 

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9.            INDEMNIFICATION
OF LOSSES.

 

So long as Executive’s actions were
taken in good faith and in furtherance of Company’s business and within the scope of Executive’s duties and authority,
Company shall indemnify and hold Executive harmless to the full extent of the law from any and all claims, losses and expenses
sustained by Executive as a result of any action taken by him to discharge his duties under this Agreement, and Company shall defend
Executive, at Company’s expense, in connection with any and all claims by stockholders or third parties.

 

10.          PERSONAL
CONDUCT.

 

Executive agrees promptly and faithfully to
comply with all present and future policies, requirements, directions, requests and rules and regulations of Company in connection
with Company’s business. Executive further agrees to conform to all laws and regulations and not at any time to commit any
act or become involved in any situation or occurrence tending to bring Company into public scandal, ridicule or which will reflect
unfavorably on the reputation of Company.

 

11.          TERMINATION
FOR CAUSE.

 

The Board may terminate Executive for cause
immediately, without notice, if Company reasonably concludes that Executive has committed fraud, theft, embezzlement, misappropriation
of Company funds or other property, or any felony. The Board may also terminate Executive for cause for any of the following:

 

(a)          Breach
by Executive of any material provision of this Agreement;

 

(b)          Violation
by Executive of any statutory or common law duty of loyalty to Company; or

 

(c)          A
material violation by Executive of Company’s employment policies; or

 

(d)          Commission
of such acts of dishonesty, gross negligence, or willful misconduct as would prevent the effective performance of Executive’s duties
or which result in material harm to Company or its business.

 

The Board may terminate this Agreement for
cause by giving written notice of termination to Executive, provided, however, if the Board declares Executive to be in default
of this Agreement under subsection (a) above because Executive fails to substantially perform his material duties and responsibilities
under this Agreement, the Board shall deliver a written demand for substantial performance of such duties and responsibilities
to Executive. Such demand must identify the manner in which the Board believes that Executive has not substantially performed his
duties, and Executive shall have a period of 30 days to correct the deficient performance. Upon termination for cause, the obligations
of Executive and Company under this Agreement shall immediately cease. Such termination shall be without prejudice to any other
remedy to which Company may be entitled either at law, in equity, or under this Agreement. If Executive’s employment is terminated
pursuant to this Section 11, Company shall pay to Executive (i) Executive’s accrued but unpaid Annual Salary and the value
of unused paid time off through the effective date of the termination; (ii) Executive’s accrued but unpaid Bonus, if any;
and (iii) business expenses incurred prior to the effective date of termination. Executive shall not be entitled to continue to
participate in any employee benefit plans except to the extent provided in such plans for terminated participants, or as may be
required by applicable law.

 

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12.          TERMINATION
WITHOUT CAUSE.

 

(a)          Death.
Executive’s employment shall terminate upon the death of Executive. Upon such termination, the obligations of Executive
and Company under this Agreement shall immediately cease.

 

(b)          Disability.
The Board reserves the right to terminate Executive’s employment upon 30 days written notice if, for a period of 90
days, Executive is prevented from discharging his substantial or material duties due to any physical or mental disability.

 

(c)          Election
By Executive. Executive’s employment may be terminated at any time by Executive upon not less than 30 days written
notice by Executive to the Board.

 

(d)          Election
By Company. Executive’s employment may be terminated at any time by Company upon not less than 30 days written notice
by the Board to Executive.

 

(e)          Termination
Due to a Change in Control. Executive’s employment may be terminated upon a Change in Control. For purposes of this
Agreement, the term “Change in Control” shall mean the sale or disposition by Company to an unrelated third party
of substantially all of its business or assets, or the sale of the capital stock of Company in connection with the sale or transfer
of a Controlling Interest in Company to an unrelated third party, or the
merger or consolidation of Company with another corporation as part of a sale or transfer of a Controlling Interest in Company
to an unrelated third party. For purposes of this definition, the term “Controlling Interest” means the sale or transfer
of Company’s securities representing at least 50.1% of the voting power. It will be presumed that a termination is a termination
under this subsection (e) rather than a termination under subsection (d) (Election by Company) if Executive’s employment
is terminated during the period that begins when negotiations for the Change in Control begin and ends on the six month anniversary
of the closing of the Change in Control transaction and such termination is not a termination for cause pursuant to Section 11
or a termination resulting from Executive’s death, disability or election pursuant to subsections (a), (b) or (c) of this
Section 12.

 

If Executive’s employment is terminated
pursuant to subsections (a), (b), or (c) of this Section 12, Company shall pay to Executive (i) Executive’s accrued but unpaid
Annual Salary and the value of unused paid time off through the effective date of the termination; (ii) Executive’s accrued
but unpaid Bonus, if any; and (iii) business expenses incurred prior to the effective date of termination. Executive shall not
be entitled to continue to participate in any employee benefit plans except to the extent provided in such plans for terminated
participants, or as may be required by applicable law.

 

If Executive’s employment is terminated
pursuant to subsection (d) of this Section 12, Company shall pay to Executive (i) Executive’s accrued but unpaid Annual Salary
and the value of unused paid time off through the effective date of the termination; (ii) Executive’s accrued but unpaid
Bonus, if any; (iii) business expenses incurred prior to the effective date of termination; and (iv) severance (the “Severance
Payment”) consisting of six months of the Annual Salary, less legally required deductions. Company may elect in its sole
discretion whether to pay the Severance Payment in one lump sum or on regular pay days for the six months following termination
of Executive’s employment. For a termination under subsection (d), Executive shall be entitled to continue to participate
in employee benefit plans described in Section 5(d), at Company’s sole expense, for six months following termination of Executive’s
employment.

 

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If Executive’s employment is terminated pursuant
to subsection (e) of this Section 12, Executive shall be entitled to receive (i) Executive’s accrued but unpaid Annual Salary
and the value of unused paid time off through the effective date of the termination; (ii) Executive’s accrued but unpaid
Bonus, if any; (iii) business expenses incurred prior to the effective date of termination; and (iv) an amount equal to one-half
the Annual Salary. In addition, any equity award that is scheduled to vest any time after the termination of Executive’s
employment will vest immediately upon the termination of Executive’s employment pursuant to subsection (e).

 

In the event of a termination of Executive’s
employment pursuant to subsections (a), (b), (c) and (d) above, all other rights Executive has under any benefit or stock option
plans and programs shall be determined in accordance with the terms and conditions of such plans and programs.

 

With the exception of the terms of this Section
12 and any obligations, duties and responsibilities Executive has under the Proprietary Information and Inventions Agreement, upon
termination of Executive’s employment the obligations of Executive and Company under this Agreement shall immediately cease.

 

13.          MISCELLANEOUS.

 

(a)            Preparation
of Agreement. It is acknowledged by each Party that such Party either had separate and independent advice of counsel or
the opportunity to avail itself or himself of same. In light of these facts it is acknowledged that no Party shall be construed
to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any Party as the
alleged draftsman of this Agreement.

 

(b)            Cooperation.
Each Party agrees, without further consideration, to cooperate and diligently perform any further acts, deeds and things and
to execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate,
evidence, confirm and/or carry out the intent and provisions of this Agreement, all without undue delay or expense.

 

(c)            Interpretation.

 

(i)          Entire
Agreement/No Collateral Representations. Each Party expressly acknowledges and agrees that this Agreement, including all exhibits
attached hereto: (1) is the final, complete and exclusive statement of the agreement of the Parties with respect to the subject
matter hereof; (2) supersedes any prior or contemporaneous agreements, promises, assurances, guarantees, representations, understandings,
conduct, proposals, conditions, commitments, acts, course of dealing, warranties, interpretations or terms of any kind, oral or
written (collectively and severally, the “Prior Agreements”), and that any such prior agreements are of no force or
effect except as expressly set forth herein; and (3) may not be varied, supplemented or contradicted by evidence of Prior Agreements,
or by evidence of subsequent oral agreements. Any agreement hereafter made shall be ineffective to modify, supplement or discharge
the terms of this Agreement, in whole or in part, unless such agreement is in writing and signed by the Party against whom enforcement
of the modification or supplement is sought.

 

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(ii)         Waiver.
No breach of any agreement or provision herein contained, or of any obligation under this Agreement, may be waived, nor shall any
extension of time for performance of any obligations or acts be deemed an extension of time for performance of any other obligations
or acts contained herein, except by written instrument signed by the Party to be charged or as otherwise expressly authorized herein.
No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof, or a waiver or relinquishment of any other agreement or provision or right or power herein contained.

 

(iii)        Remedies
Cumulative. The remedies of each Party under this Agreement are cumulative and shall not exclude any other remedies to which
such Party may be lawfully entitled.

 

(iv)        Severability.
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be determined
to be invalid, illegal or unenforceable under present or future laws effective during the term of this Agreement, then and, in
that event: (A) the performance of the offending term or provision (but only to the extent its application is invalid, illegal
or unenforceable) shall be excused as if it had never been incorporated into this Agreement, and, in lieu of such excused provision,
there shall be added a provision as similar in terms and amount to such excused provision as may be possible and be legal, valid
and enforceable, and (B) the remaining part of this Agreement (including the application of the offending term or provision to
persons or circumstances other than those as to which it is held invalid, illegal or unenforceable) shall not be affected thereby
and shall continue in full force and effect to the fullest extent provided by law.

 

(v)         No
Third Party Beneficiary. Notwithstanding anything else herein to the contrary, the parties specifically disavow any desire
or intention to create any third party beneficiary obligations, and specifically declare that no person or entity, other than as
set forth in this Agreement, shall have any rights hereunder or any right of enforcement hereof.

 

(vi)        Headings;
References; Incorporation; Gender. The headings used in this Agreement are for convenience and reference purposes only, and
shall not be used in construing or interpreting the scope or intent of this Agreement or any provision hereof. References to this
Agreement shall include all amendments or renewals thereof. Any exhibit referenced in this Agreement shall be construed to be incorporated
in this Agreement. As used in this Agreement, each gender shall be deemed to include the other gender, including neutral genders
or genders appropriate for entities, if applicable, and the singular shall be deemed to include the plural, and vice versa, as
the context requires.

 

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(d)           Enforcement.

 

(i)          Applicable
Law. This Agreement and the rights and remedies of each Party arising out of or relating to this Agreement (including, without
limitation, equitable remedies) shall be solely governed by, interpreted under, and construed and enforced in accordance with the
laws (without regard to the conflicts of law principles thereof) of the State of Texas, as if this agreement were made, and as
if its obligations are to be performed, wholly within the State of Texas.

 

(ii)         Consent
to Jurisdiction and Venue. Any action or proceeding arising out of or relating to this Agreement shall be filed in and heard
and litigated solely before the state courts of Texas within Travis County.

 

(iii)        Attorneys’
Fees. If court proceedings are required to enforce any provision of this Agreement, the substantially prevailing or successful
Party shall be entitled to an award of the reasonable and necessary expenses of litigation, including reasonable attorneys’
fees.

 

(e)           No
Assignment of Rights or Delegation of Duties by Executive. Executive’s rights and benefits under this Agreement
are personal to him and therefore (i) no such right or benefit shall be subject to voluntary or involuntary alienation, assignment
or transfer; and (ii) Executive may not delegate his duties or obligations hereunder.

 

(f)           Notices.
Unless otherwise specifically provided in this Agreement, all notices, demands, requests, consents, approvals or other communications
(collectively and severally called “Notices”) required or permitted to be given hereunder, or which are given with
respect to this Agreement, shall be in writing, and shall be given by: (A) personal delivery (which form of Notice shall be deemed
to have been given upon delivery), (B) by private overnight delivery service (which forms of Notice shall be deemed to have been
given upon confirmed delivery by the delivery agency), or (C) by mailing in the United States mail by registered or certified
mail, return receipt requested, postage prepaid (which forms of Notice shall be deemed to have been given upon the 5th business
day following the date mailed). Notices shall be addressed to the address hereinabove set forth in the introductory paragraph
of this Agreement, or to such other address as the receiving Party shall have specified most recently by like Notice, with a copy
to the other Parties hereto. Any Notice given to the estate of a Party shall be sufficient if addressed to the party as provided
in this subsection.

 

(g)           Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument, binding on all parties hereto. Any signature page of this Agreement may be detached from
any counterpart of this Agreement and reattached to any other counterpart of this Agreement identical in form hereto by having
attached to it one or more additional signature pages.

 

(h)           Execution
by All Parties Required to be Binding: Electronically Transmitted Documents. This Agreement shall not be construed to
be an offer and shall have no force and effect until this Agreement is fully executed by all Parties hereto. If a copy or counterpart
of this Agreement is originally executed and such copy or counterpart is thereafter transmitted electronically by facsimile or
similar device, such facsimile document shall for all purposes be treated as if manually signed by the Party whose facsimile signature
appears.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement.

 

	 	Company:
	 	IDEAL
    POWER INC.
	 	 	 
	 	By:	/s/ R. Daniel Brdar
	 	 	 
	 	Its:	CEO and Chairman
	 	 
	 	Executive:
	 	 
	 	/s/ Ryan K. O’Keefe
	 	Ryan K. O’Keefe

 

    	 	9EXHIBIT 10.4

 

THIS CONVERTIBLE PROMISSORY NOTE (THIS
“NOTE”) AND THE SECURITIES INTO WHICH IT MAY BE CONVERTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

EASTERLY ACQUISITION CORP.

CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: Not to Exceed $1,000,000 (See Schedule A)          Dated
as of March 17, 2016

New York, New York

 

Easterly Acquisition
Corp., a Delaware corporation (the “Maker”), promises to pay to the order of Easterly Acquisition Sponsor, LLC
or its registered assigns or successors in interest (the “Payee”), or order, the principal balance as set forth
on Schedule A hereto, which schedule shall be updated from time to time by the parties hereto to reflect all advances and readvances
outstanding under this Note; provided that at no time shall the aggregate of all advances and readvances outstanding under this
Note exceed One Million Dollars ($1,000,000) in lawful money of the United States of America, on the terms and conditions described
below. All payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined
by the Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of
this Note. Payee is under no obligation to make any advance or readvances pursuant to this Note.

 

1.           Principal.
All unpaid principal under this Note, including accrued interest hereon pursuant to Section 2 shall be due and payable on August
4, 2017. Any outstanding principal amount to date under this Note may be prepaid at any time by the Maker, at its election and
without penalty; provided, however, that Payee shall have a right to first convert such principal balance pursuant to Section 5
below upon notice of such prepayment.

 

2.           Interest.
Interest shall accrue at a rate of five percent (5%) per annum on any unpaid principal amount outstanding and shall compound
annually. All accrued interest shall be added to and become part of the principal amount outstanding under this Note that is due
and payable on the Maturity Date.

 

3.           Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorney's fees, then to the payment in full of any late charges and
finally to the reduction of the unpaid principal balance of this Note.

 

4.           Events
of Default. The occurrence of any of the following shall constitute an event of default (“Event of Default”):

 

     

     

    

 

(a)          Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the date specified above or issue warrants pursuant to Paragraph 5 hereof, if so elected by Payee.

 

(b)          Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

(c)          Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of sixty (60) consecutive days.

 

5.           Remedies.

 

(a)          Upon the occurrence
of an Event of Default specified in Section 4(a) hereof, Payee may, by written notice to Maker, declare this Note to be due immediately
and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder, shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)          Upon the occurrence
of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of this Note, and all other sums payable
with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the part
of Payee.

 

6.           Conversion.

 

(a)          Optional
Conversion. At the option of the Payee, at any time on or prior to the Maturity Date, any amounts outstanding under this Note
(or any portion thereof) may be converted into warrants to purchase common stock of Maker (“Common Stock”) at
a conversion price (the “Conversion Price”) per warrant of Maker (“Warrants”) equal to $1.00.
If Payee elects such conversion, the terms of such Warrants issued in connection with such conversion shall be identical to the
warrants issued to Payee in the private placement (the “Private Placement Warrants”) that closed August 4, 2015
in connection with the commencement of Maker’s initial public offering that closed on August 4, 2015 (the “IPO”).
Before this Note may be converted under this Section 5(a), Payee shall surrender this Note, duly endorsed, at the office of the
Maker and shall state therein the amount of the unpaid principal of this Note to be converted and the name or names in which the
certificates for Warrants are to be issued (or the book-entries to be made to reflect ownership of such Warrants with the Maker’s
transfer agent). The conversion shall be deemed to have been made immediately prior to the close of business on the date of the
surrender of this Note and the person or persons entitled to receive the Warrants upon such conversion shall be treated for all
purposes as the record holder or holders of such Warrants as of such date. Each such newly-issued Warrant shall include a restricted
legend that contemplates the same restrictions as the Private Placement Warrants. The Warrants and shares of Common Stock issuable
upon exercise of the Warrants shall constitute “Registrable Securities” pursuant to that certain Registration Rights
Agreement, dated as of July 29, 2015, between Maker and Payee.

 

     

     

    

 

(b)          Remaining
Principal. All accrued and unpaid principal of this Note that is not then converted into Warrants, shall continue to remain
outstanding and to be subject to the conditions of this Note.

 

(c)          Fractional
Warrants; Effect of Conversion. No fractional Warrants shall be issued upon conversion of this Note. In lieu of any fractional
Warrants to Payee upon conversion of this Note, Maker shall pay to Payee an amount equal to the product obtained by multiplying
the Conversion Price by the fraction of a Warrant not issued pursuant to the previous sentence. Upon conversion of this Note in
full and the payment of any amounts specified in this Section 5(c), this Note shall be cancelled and void without further action
of the Maker or Payee, and the Maker shall be forever released from all its obligations and liabilities under this Note.

 

7.           Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by
Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or
sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and
Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution
issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

8.           Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker's liability hereunder.

 

9.           Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and
delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic
transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such
other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail
address most recently provided to such party or such other electronic mail address as may be designated in writing by such party.
Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally,
on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business
day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

     

     

    

 

10.          Construction.
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS
THEREOF.

 

11.          Severability.
Any provision contained in this Note that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

12.          Trust
Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim
of any kind (“Claim”) in or to any distribution of or from the trust account established with the proceeds of
the IPO conducted by the Maker (including the deferred underwriters discounts and commissions) and the proceeds of the sale of
the Private Placement Warrants, which were deposited in the trust account, as described in greater detail in the registration statement
and prospectus filed with the Securities and Exchange Commission in connection with the IPO on July 29, 2015, and hereby agrees
not to seek recourse, reimbursement, payment or satisfaction for any Claim against the trust account for any reason whatsoever.

 

13.          Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the
Maker and the Payee.

 

14.          Successors
and Assigns. Subject to the restrictions on transfer in Sections 15 and 16 below, the rights and obligations of the Maker and
Payee hereunder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of any party hereto
(by operation of law or otherwise) with the prior written consent of the other party hereto and any attempted assignment without
the required consent shall be void.

 

     

     

    

 

15.          Transfer
of this Note or Securities Issuable on Conversion. With respect to any offer, sale or other disposition of this Note or securities
into which this Note may be converted, Payee shall give written notice to Maker prior thereto, describing briefly the manner thereof,
together with (i) except for a Permitted Transfer, in which case the requirements in this clause (i) shall not apply, a written
opinion reasonably satisfactory to the Maker in form and substance from counsel reasonably satisfactory to the Maker to the effect
that such offer, sale or other distribution may be effected without registration or qualification under any federal or state law
then in effect and (ii) a written undertaking executed by the desired transferee reasonably satisfactory to the Maker in form and
substance agreeing to be bound by the restrictions on transfer contained herein. Upon receiving such written notice, reasonably
satisfactory opinion, or other evidence, and such written acknowledgement, the Maker, as promptly as practicable, shall notify
Payee that Payee may sell or otherwise dispose of this Note or such securities, all in accordance with the terms of the note delivered
to the Maker. If a determination has been made pursuant to this Section 15 that the opinion of counsel for Payee, or other evidence,
or the written acknowledgment from the desired transferee, is not reasonably satisfactory to the Maker, the Maker shall so notify
Payee promptly after such determination has been made. Each Note thus transferred shall bear a legend as to the applicable restrictions
on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Maker such legend
is not required in order to ensure compliance with the Securities Act. The Maker may issue stop transfer instructions to its transfer
agent in connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered upon registration
on the books maintained for such purpose by or on behalf of the Maker. Prior to presentation of this Note for registration of transfer,
the Maker shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments
of principal hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and the Maker shall not be
affected by notice to the contrary. For purposes hereof “Permitted Transfer” shall have the same meaning as any transfer
that would be permitted for the Private Placement Warrants under the Letter Agreement, dated July 29, 2015, among the Maker, the
Maker’s directors and officers and Payee.

 

16.          Acknowledgment.
Payee is acquiring this Note for investment for its own account, not as a nominee or agent, and not with a view to, or for resale
in connection with, any distribution thereof. Payee understands that the acquisition of this Note involves substantial risk. Payee
has experience as an investor in securities of companies and acknowledges that it is able to fend for itself, can bear the economic
risk of its investment in this Note, and has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of this investment in this Note and protecting its own interests in connection with this investment.

 

Signature Page Follows

 

     

     

    

 

IN WITNESS WHEREOF, Maker, intending
to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

	 	EASTERLY ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Avshalom Kalichstein
	 	 	Name: Avshalom Kalichstein
	 	 	Title: Chief Executive Officer

 

ACKNOWLEDGED AND AGREED

AS OF THE DATE FIRST WRITTEN ABOVE:

 

	EASTERLY ACQUISITION SPONSOR, LLC
	 	 
	By:	/s/ Darrell Crate	 
	 	Name: Darrell Crate	 
	 	Title: Director	 

 

     

     

    

 

SCHEDULE A

 

Subject to the terms and conditions set
forth in the Note to which this schedule is attached to, the principal balance due under the Note shall be set forth in the table
below and shall be updated from time to time to reflect all advances and readvances outstanding under the Note.

 

	Date	 	Drawing	 	 	Interest Earned	 	 	Principal Balance

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