Document:

Exhibit 4.6

 

[PARTICIPANT NAME]

[PARTICIPANT ADDRESS]

 

RE:  BROOKFIELD PROPERTY L.P. FV LTIP UNIT PLAN — AWARD AGREEMENT

 

This letter serves as confirmation of your participation in the Brookfield Property L.P. FV LTIP Unit Plan (the “Plan”).  Words defined in the Plan and not otherwise defined herein shall have the meaning assigned to them in the Plan.

 

You have been awarded [        ] FV LTIP Units (the “Award FV LTIP Units”).  The Award Date for the Award FV LTIP Units is [            ].  For avoidance of doubt, the Award FV LTIP Units are not “Special FV LTIP Units” as defined in the Property Partnership LPA.

 

This Award Agreement, the Plan and the Property Partnership LPA outline all of your rights and obligations related to the Award FV LTIP Units.  The Award FV LTIP Units will vest over five years (20% vest on [         ] and a further 20% on each anniversary thereafter up to and including [         ]), and are subject to the terms and conditions outlined in this Award Agreement, the Plan and the Property Partnership LPA.  Please note that the Award FV LTIP Units remain subject to the restrictions under the Plan until they are vested and thereafter. Unless provided for separately under the terms of the Plan, in the event of termination of your employment, all of the Award FV LTIP Units which have not vested on or prior to the Termination Date will be forfeited. In addition, the Award FV LTIP Units may not be assigned, encumbered or transferred, whether vested or not, except as permitted pursuant to Section 4.3 of the Plan or in connection with the redemption of the Award FV LTIP Units in connection with the exercise of the Redemption Right.

 

You will be entitled to receive distributions on the Award FV LTIP Units in accordance with the terms of the Property Partnership LPA.  In the event of termination of your employment, the distributions that had been paid on any of your Award FV LTIP Units that remain unvested on your Termination Date and are forfeited are subject to a clawback pursuant to the Plan.

 

By signing this Award Agreement and accepting the Award FV LTIP Units, you agree to be admitted as a partner of the Property Partnership with ownership of the Award FV LTIP Units and to be party to, and subject to the terms and conditions of, the Property Partnership LPA.

 

Additionally, nothing contained herein shall affect the right of your Employer to terminate your services, responsibilities, duties and authority to represent the Employer at any time for any reason whatever.

 

The Award FV LTIP Units are intended to constitute (and the Employer and the Property Partnership intend to treat them as) “profits interests” for U.S. federal income tax purposes.  Assuming that the Award FV LTIP Units qualify as profits interests, based on current law, you generally will not be taxed on the value of the Award FV LTIP Units until you dispose of them (i.e., you will not be taxed on the Award FV LTIP Units upon their issuance or vesting), the gain realized upon the disposition of the Award FV LTIP Units generally will be considered capital gain (subject to satisfaction of applicable holding periods) and, as a limited partner of the Property Partnership, you will be allocated income and deductions from the Property Partnership that will be reported to you annually on a Schedule K-1 and will be entitled to receive distributions in accordance with the terms of the Property Partnership LPA.  Generally, neither the Property Partnership nor the Employer is expected to be required to make any tax withholding with respect to the Award FV LTIP Units.  You should be aware that there are significant tax complexities associated with owning the Award FV LTIP Units, as well as risks as to whether the intended tax treatment will be obtained. You should consult with your personal U.S. tax advisor prior to signing this Award Agreement and accepting the Award FV LTIP Units.

 

Should you have any questions regarding the Award FV LTIP Units or the operation of the Plan, please do not hesitate to call me.

 

[Signature page follows.]

 

 

Please acknowledge acceptance hereof by affixing your signature where indicated and returning the copy to Human Resources at employee.equity@brookfield.com by [             ].  It is to be understood that by signing and returning such copy, you will be deemed to have agreed to all the terms and conditions of this letter and of the Plan.

 

	
Yours sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

 

I, the Participant, understand and agree that the awarding of the Award FV LTIP Units is conditional on my signing and returning a copy of this award letter and is subject to the terms and conditions of the Plan, all of which are incorporated into and form a part of this Award Agreement.  I further agree to the terms and conditions set out herein.

 

 

	
 
    	
 
    
	
[PARTICIPANT NAME]Exhibit 4.1

 

PROMISSORY NOTE

 

DPW HOLDINGS, INC.

PROMISSORY NOTE DUE APRIL 15, 2019

 

 

	Issuance Date: February 20, 2019	Principal Amount: $433,884.02

 

FOR VALUE RECEIVED,
DPW Holdings, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of _________, or its
registered assigns (“Holder”) the amount set forth above as the original principal amount (as reduced pursuant to the
terms hereof the “Principal”) when due, whether upon April 15, 2019 (the “the Maturity Date”), or upon
acceleration or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any
outstanding Principal at the applicable Interest Rate (as defined below) from the date set forth above as the Issuance Date (the
“Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date or upon acceleration, prepayment
or otherwise (in each case in accordance with the terms hereof). This Promissory Note (this “Note”) is issued to the
Holder as of the Issuance Date by the Company. Certain capitalized terms used herein are defined in Section 20. This Note is issued
pursuant to an Exchange Agreement between the Company and the Holder dated February 20, 2019 (the “Agreement”).

 

1.            
PAYMENTS OF PRINCIPAL.

 

(a) On the Maturity
Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest. Other than as specifically permitted by this Note, the Company
may not prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal
and Interest, if any. Except for issuances of Common Stock under the Agreement at the option of the Holder, this Note shall not
be prepayable.

 

(b) The Principal
includes up to $5,000 in legal fees and expenses of the Holder in connection with or related to the issuance of prior notes, the
alleged defaults, and the preparation of this Note and the Agreement. This sum does not relate to any event under Section 10.

 

2.            
INTEREST; INTEREST RATE. 

 

(a)           
Interest on this Note shall commence accruing on the Issuance Date at 8% per annum subject to adjustment in accordance with
the terms of this Section 2 (the “Interest Rate”), shall be calculated on the basis of a 360-day year and twelve 30-day
months, compounded daily, and shall be payable by Company to Holder, in cash, on the Maturity Date.

 

(b)           
From and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically
be increased to 18.0% per annum or the highest amount permitted by law. In the event that such Event of Default is subsequently
cured (and no other Event of Default then exists), the adjustment referred to in the preceding sentence shall cease to be effective
as of the day immediately following the date of such cure; provided that the Interest as calculated and unpaid at such increased
rate during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence
of such Event of Default through and including the date of such cure of such Event of Default.

 

    	 		 

     

    

 

3.            
RIGHTS UPON EVENT OF DEFAULT.

 

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

 

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

 

(ii)            
the Company’s or any Subsidiary’s default under this Note or the other Transaction Documents, including a failure
to pay to the Holder any amount of Principal, Interest, Late Charges or other amounts when and as due under this Note, the other
Transaction Documents or any other agreement, document, certificate or other instrument delivered in connection with the transactions
contemplated hereby and thereby, except, in the case of a failure to pay Interest and Late Charges when and as due, subject to
a cure period of ten (10) Trading Days;

 

(iii)           
the Company fails to remove any restrictive legend on any certificate for any shares of Common Stock issued to the Holder
pursuant to the Agreement or any other Transaction Document as and when required by the Agreement, unless otherwise then prohibited
by applicable federal securities laws, and any such failure remains uncured for at least ten (10) Trading Days;

 

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

 

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

 

    	 	2	 

     

    

 

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

 

(vii)         
other than as specifically set forth in another clause of this Section 3(a), the Company or any Subsidiary breaches any
representation or warranty in any material respect (other than representations or warranties subject to materiality limitations,
which may not be breached in any respect) or any covenant or other term or condition of this Note or any other Transaction Document,
except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for
a period of ten (10) consecutive Trading Days;

 

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

 

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

 

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

 

    	 	3	 

     

    

 

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

 

(xii)    
     the Company fails to file an additional listing application for the shares of Common
Stock contemplated by the Exchange Agreement and this Note within three days of the Effective Date or the NYSE American fails
to provide Exchange Approval, either of which shall trigger Section 7.8 of the Exchange Agreement. 

 

(b)          
Notice of an Event of Default; Holder Right to Compel Prepayment Upon Event of Default. Upon the occurrence of an
Event of Default with respect to this Note, the Company shall within one Trading Day deliver written notice thereof via facsimile
or electronic mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”)
to the Holder. At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming
aware of an Event of Default and ending (such ending date, the “Event of Default Right Expiration Date”) on the 20th
Trading Day after the later of (x) the date such Event of Default is cured and (y) the Holder’s receipt of an Event of Default
Notice that includes (I) a reasonable description of the applicable Event of Default, (II) a certification as to whether, in the
opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable description of any existing
plans of the Company to cure such Event of Default and (III) a certification as to the date the Event of Default occurred and,
if cured on or prior to the date of such Event of Default Notice, the applicable Event of Default Right Expiration Date, the Holder
may require the Company to prepay (regardless of whether such Event of Default has been cured on or prior to the Event of Default
Right Expiration Date) all or any portion of this Note by delivering written notice thereof (the “Event of Default Prepayment
Notice”) to the Company, which Event of Default Prepayment Notice shall indicate the portion of this Note the Holder is electing
to have prepaid. Each portion of this Note (which may include all outstanding Principal, accrued and unpaid Interest and accrued
and unpaid Late Charges on such Principal and Interest) subject to prepayment by the Company pursuant to this Section 3(a)(xii)
shall be prepaid by the Company at a price equal to the product of: (i) the portion of this Note being prepaid; multiplied by (ii)
the Prepayment Premium. To the extent prepayments required by this Section 3(a)(xii) are deemed or determined by a court of competent
jurisdiction to be prepayments of this Note by the Company, such prepayments shall be deemed to be voluntary prepayments. In the
event of the Company’s prepayment of any portion of this Note under this Section 3(a)(xii), the Holder’s damages would
be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty
of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Prepayment Premium due under
this Section 3(a)(xii) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual
loss of its investment opportunity and not as a penalty. Any prepayment upon an Event of Default shall not constitute an election
of remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.

 

4.          
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s
Certificate of Incorporation or other charter documents, bylaws or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions
of this Note and take all action as may be required to protect the rights of the Holder of this Note.

 

    	 	4	 

     

    

 

5.                 
COVENANTS. Until all of the principal amount of and accrued but unpaid interest under Note has been repaid, prepaid
or otherwise satisfied in accordance with their terms:

 

(a)          
Rank. All payments due under this Note (a) shall rank senior to all other notes of the Company issued prior to the
Closing Date and (b) shall be senior to all other Indebtedness of the Company and its Subsidiaries, except as provided on Schedule
5(a).

 

(b)          
Incurrence of Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly
or indirectly, incur or guarantee, assume or suffer to exist any Indebtedness (other than Permitted Indebtedness or as provided
on Schedule 5(b).

 

(c)          
Existence of Liens. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly
or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security interest, deed of trust, or other encumbrance
upon or in any property or assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively,
“Liens”) other than Permitted Liens, except as provided on Schedule 5(c).

 

(d)         
Restricted Payments. Except as set forth on Schedule 5(a), the Company shall not, and the Company shall cause
each of its Subsidiaries to not, directly or indirectly, prepay, defease, repurchase, repay or make any payments in respect of,
by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private
transactions or otherwise), all or any portion of any Indebtedness (other than the Note) whether by way of payment in respect of
principal of (or premium, if any) or interest on, such Indebtedness if at the time such payment is due or is otherwise made or,
after giving effect to such payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an event
that with the passage of time and without being cured would constitute an Event of Default has occurred and is continuing.

 

(e)          
Restriction on Prepayment and Cash Dividends. Other than with respect to its 10% Series A Cumulative Redeemable Perpetual
Preferred Stock, the Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, prepay,
repurchase or declare or pay any cash dividend or distribution on any of its capital stock.

 

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

 

    	 	5	 

     

    

 

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

 

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

 

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

 

6.           
AMENDING THE TERMS OF THIS NOTE. The prior written consent of the Holder shall be required for any change, waiver
or amendment to this Note. Any change, waiver or amendment so approved shall be binding upon all existing and future holders of
this Note; provided, however, that no such change, waiver or, as applied to the Note held by any particular holder
of the Note, shall, without the written consent of that particular holder, (i) reduce the amount of Principal, reduce the amount
of accrued and unpaid Interest, or extend the Maturity Date, of the Note, (ii) disproportionally and adversely affect any rights
under the Note of any holder of any other portion of the Note; or (iii) modify any of the provisions of, or impair the right of
any holder of the Note under this Section 6.

 

7.           
TRANSFER. This Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company,
but only to an Affiliate of such Holder.

 

8.           
REISSUANCE OF THIS NOTE.

 

(a)     
     Transfer. If this Note is to be transferred, the Holder shall surrender this Note to
the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance
with Section 8(c)), registered as the Holder may request, representing the outstanding Principal being transferred by the
Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 8(c))
to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of
this Note, acknowledge and agree that, by reason of the provisions of this Note and the Agreement, following prepayment of
any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the
face of this Note.

 

    	 	6	 

     

    

 

(b)         
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated
below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in a form satisfactory to the Company in its sole discretion and, in the case of mutilation, upon surrender
and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 8(c))
representing the outstanding Principal.

 

(c)          
Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such
new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal
remaining outstanding (or in the case of a new Note being issued pursuant to Section 8(a), the Principal designated by the Holder
which does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of a new Note), (iii)
shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv)
shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges on
the Principal and Interest of this Note, from the Issuance Date.

 

9.      
     REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of
the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive
relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure
by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no
characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein
with respect to payments and the like (and the computation thereof) shall be the amounts to be received by the Holder and
shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder
and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to specific
performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.
The Company shall provide all information and documentation within its possession, or that it can obtain without
unreasonable expense or effort, to the Holder that is requested by the Holder to enable the Holder to confirm the
Company’s compliance with the terms and conditions of this Note.

 

    	 	7	 

     

    

 

10.         
PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection
or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts
due under this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership
of the Company or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company
shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly
acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price
paid for this Note was less than the original Principal amount hereof.

 

11.         
CONSTRUCTION; HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and
shall not be construed against any such Person as the drafter hereof. The headings of this Note are for convenience of reference
and shall not form part of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun
herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,”
“includes,” “include” and words of like import shall be construed broadly as if followed by the words “without
limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer
to this entire Note instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references
are to sections of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents,
shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented
to in writing by the Holder.

 

12.         
FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless
it is in writing and signed by an authorized representative of the waiving party.

 

13.         
NOTICES.Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice
shall be given in writing with an e-mail copy to the last address provided by the Holder or its agents in writing to the Company.
The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable
detail a description of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will
give written notice to the Holder at least 15 days prior to the date on which the Company closes its books or takes a record for
determining rights to vote with respect to any dissolution or liquidation, provided in each case that such information shall be
made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

    	 	8	 

     

    

 

14.         
CANCELLATION. After all Principal, accrued Interest, Late Charges and other amounts at any time owed on this Note
have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation
and shall not be reissued.

 

15.         
WAIVER OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment,
protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this
Note.

 

16.         
GOVERNING LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the 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. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and 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. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate to preclude the Holder from bringing
suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to
the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling
in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

17.        
 SEVERABILITY. If any provision
of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction,
the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent
that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity
of the remaining provisions of this Note so long as this Note as so modified continues to express, without material change, the
original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of
the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

18.         
MAXIMUM PAYMENTS. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest
or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid
or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against
amounts owed by the Company to the Holder and thus refunded to the Company.

 

    	 	9	 

     

    

 

19.         
CERTAIN DEFINITIONS. For purposes of this Note, the following words and terms shall have the following meanings:

 

(a)          
 “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.

 

(b)          
“Closing Date” shall mean the date the Company initially issued the Note.

 

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

 

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

 

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

 

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

 

    	 	10	 

     

    

 

(g)          
“Late Charge” means any amount of Principal or other amounts due under the Transaction Documents which
is not paid when due which shall result in a late charge being incurred and payable by the Company in an amount equal to interest
on such amount at the rate of 18% per annum from the date such amount was due until the same is paid in full.

 

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

 

(i)            
“Maturity Date” shall mean the date listed in the preamble hereto as the Maturity Date; provided, however,
the Maturity Date may be extended at the option of the Holder in the event that, and for so long as, an Event of Default shall
have occurred and be continuing or any event shall have occurred and be continuing that with the passage of time and the failure
to cure would result in an Event of Default.

 

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

 

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

 

    	 	11	 

     

    

 

(l)            
“Permitted Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good
faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory
Lien arising in the ordinary course of business by operation of law with respect to a liability that is not yet due or delinquent,
(iii) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens,
arising in the ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested
in good faith by appropriate proceedings, (iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its
Subsidiaries to secure the purchase price of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition
or lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien is confined
solely to the property so acquired and improvements thereon, and the proceeds of such equipment, in either case, with respect
to Indebtedness in an aggregate amount not to exceed $50,000, (v) Liens incurred in connection with the extension, renewal
or refinancing of the Indebtedness secured by Liens of the type described in clause (iv) above, provided that any extension, renewal
or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness
being extended, renewed or refinanced does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter
of law to secure payments of custom duties in connection with the importation of goods, and (vii) Liens arising from judgments,
decrees or attachments in circumstances not constituting an Event of Default under Section 3(a)(viii).

 

(m)      
   “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.

 

(n)          
“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.

 

(o)          
“Prepayment Premium” means 110%.

 

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

 

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

 

    	 	12	 

     

    

 

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

 

20.         
DISCLOSURE. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries, the Company shall within one Trading Day after any such receipt or delivery
publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company
so shall indicate to the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries. If the Company or any of its Subsidiaries provides material non-public information
to the Holder that is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material
non-public information, the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the
Company, any of its Subsidiaries or any of their respective officers, directors, employees, Affiliates or agents with respect to,
or a duty to any of the foregoing not to trade on the basis of, such material non-public information.

 

[signature page follows]

 

    	 	13	 

     

    

  

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

 

 

	 	DPW HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Name:  	Milton C. Ault, III
	 	Title:    	Chief Executive Officer

 

 

14

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