Document:

Exhibit 10.3

 

PERSONAL GUARANTY

 

This PERSONAL GUARANTY
(this “Guaranty”) is made as of the 28th day of December, 2018, by the undersigned (the “Guarantor”)
for the benefit of Dominion Capital, LLC, a Connecticut limited liability company, and its successors and assigns (the “Investor”).

 

W I T N E S S E T H

 

WHEREAS, the Guarantor
serves as the Chief Executive Officer of Ault & Company, Inc., a Delaware corporation (the “Principal”),
as well as the Chief Executive Officer of DPW Holdings, Inc., a Delaware corporation (“DPW”), and has extensive
familiarity with and primary responsibility for the management of DPW’s and its subsidiaries’ businesses, including
the business of each of Microphase Corporation, a Delaware corporation (“Microphase”), and Enertec Systems 2001
Ltd., an Israeli corporation (“Enertec”); and

 

WHEREAS, the Investor
has extended credit to DPW (a) pursuant to a Senior Secured Convertible Promissory Note, dated May 15, 2018 (as amended from time
to time, the “May Note”), purchased by the Investor pursuant to a Securities Purchase Agreement, dated May 15,
2018 (as amended from time to time, the “May SPA”); (b) pursuant to a Senior Secured Convertible Promissory
Note, dated July 2, 2018 (as amended from time to time, the “July Note”), purchased by the Investor pursuant
to a Securities Purchase Agreement, dated July 2, 2018 (as amended from time to time, the “July SPA”); and (c)
pursuant to a Senior Secured Convertible Promissory Note, dated September 2, 2018 (as amended from time to time, the “September
Note,” and together with the May Note and the July Note, the “DPW Notes”), purchased by the Investor
pursuant to a Securities Purchase Agreement, dated September 2, 2018 (as amended from time to time, the “September SPA”);
and

 

WHEREAS, the Investor
is, contemporaneously herewith, extending credit to Microphase pursuant to a Secured Promissory Note, dated December 28, 2018 (as
amended from time to time, the “Microphase Note”), which obligation of Microphase is secured by all assets of
Microphase and its subsidiaries pursuant to a Security Agreement, dated December 28, 2018, among Microphase, its subsidiaries and
the Investor (as amended from time to time, the “Microphase Security Agreement”); and

 

WHEREAS, the Investor
is, contemporaneously herewith, extending credit to Enertec pursuant to a Secured Promissory Note, dated December 28, 2018 (as
amended from time to time, the “Enertec Note”), which obligation of Enertec is secured by all assets of Enertec
and its subsidiaries pursuant to a Security Agreement, dated December 28, 2018, among Enertec, its subsidiaries and the Investor
(as amended from time to time, the “Enertec Security Agreement”); and

 

WHEREAS, pursuant to
that certain Amendment No. 10 Agreement, dated December 20, 2018, among DPW, the Investor and the Principal (“Amendment
10”), the Principal entered into that certain performance guaranty to guarantee the performance of (i) DPW and its subsidiaries
on the outstanding obligations under the DPW Notes and (ii) the obligations of each of Microphase and Enertec under the Microphase
Note and the Enertec Note, respectively (the “Principal Guaranty”); and

 

    	 	 1	 

     

    

 

WHEREAS, the Investor
entered into Amendment No. 10, extended credit to each of Microphase and Enertec pursuant to each of the Microphase Note and Enertec
Note, respectively, and has accepted the Principal Guaranty, with the expectation that it would also receive this Guaranty from
the Guarantor; and

 

WHEREAS, as used herein,
the term “Transaction Documents” means, collectively, this Guaranty, the DPW Notes, each Transaction Document
(as defined in each of the May SPA, July SPA and September SPA), the Enertec Note, the Enertec Security Agreement, the Microphase
Note, the Microphase Security Agreement, Amendment No.10 and the Principal Guaranty.

 

NOW THEREFORE, to induce
the Investor to extend credit to each of Enertec and Microphase pursuant to the Enertec Note and Microphase Note, respectively,
as well as to accept the Principal Guaranty, and for other good and valuable consideration, including, but not limited to, the
consideration described in the recitals above, receipt of which is hereby acknowledged, the Guarantor hereby agrees as follows:

 

1.       Upon
the terms and subject to conditions hereinafter set forth, the Guarantor hereby guarantees (a) the payment by each of DPW, Microphase
and Enertec, when due, to the Investor under each of the DPW Notes, Microphase Note and Enertec Note (collectively, the “Notes”);
(b) the performance by each of DPW, Microphase and Enertec of each of their respective obligations under the Notes and other Transaction
Documents; (c) the performance by each of the Principal of its obligations under the Principal Guaranty; and (d) the payment of
any reasonable costs or expenses, including, without limitation, the Investor’s reasonable attorneys’ fees, incurred
by the Investor in connection with the enforcement of this Guaranty, the Principal Guaranty, the Notes and the other Transaction
Documents (the obligations under the Guaranty, the Principal Guaranty, the Notes and the other Transaction Documents, together
with such reasonable and documented costs and expenses, collectively being herein called the “Obligations”).
The foregoing guaranty shall be a continuing guaranty and shall remain in full force and effect until all of the Obligations of
each of DPW, the Principal, Microphase and Enertec hereby guaranteed are indefeasibly paid in full. The Guarantor’s obligations
under this paragraph shall be reinstated and continued in full force and effect if at any time any payment received by the Investor
in satisfaction of the Obligations referred to above is invalidated, declared to be fraudulent or preferentially set aside and/or
required to be repaid by the Investor. Additional guarantors to this Guaranty may only be added with the consent of the Investor.

 

2.       This
Guaranty is an absolute, unconditional, continuing guaranty of payment and not merely of collection; this Guaranty may be proceeded
upon immediately upon non-payment (when due) of any of the Obligations without any prior action or proceeding against DPW, the
Principal, Microphase or Enertec, as applicable. The obligations of the Guarantor hereunder shall not be released, discharged or
otherwise affected by any amendment, change or modification to or of any of the Transaction Documents. Upon any breach of this
Guaranty, the Guarantor shall notify the Investor of such breach as set forth in Section 7 of the Principal Guaranty.

 

    	 	 2	 

     

    

 

3.       The
Guarantor hereby expressly waives, disclaims and relinquishes all setoffs and counterclaims and all presentments, demands for payment
or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor, notices of acceptance
of this Guaranty, notices of sale, any requirement that the Investor exhaust any right, power or remedy or take any action against
DPW, the Principal, Microphase or Enertec, and other formalities of similar kind, and any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge, release or defense of a guarantor or surety, or that might otherwise limit
recourse against the Guarantor. The obligations of the Guarantor hereunder are absolute and unconditional irrespective of the genuineness,
legality, regularity or enforceability of any of the Transaction Documents, or any other agreement, instrument or document contemplated
therein or thereby.

 

4.       The
Guarantor shall not assign his obligations hereunder to any other person without the written consent of the Investor, and any purported
assignment in violation of this provision shall be void.

 

5.       The
Guarantor shall not provide a guaranty to any third party until all of the Obligations of each of DPW, the Principal, Microphase
and Enertec hereby guaranteed are indefeasibly paid in full.

 

6.        This
Guaranty shall be governed by, and construed in accordance with, the law of the State of New York without regard to the conflict
of laws rules thereof. This Guaranty may not be modified, altered, or amended except by a writing signed by the Guarantor and consented
to by the Investor.

 

7.       This
Guaranty is intended to be, and is for the benefit of the Investor and may be relied on by the Investor, its successors and assigns.
This Guaranty is a legal and binding obligation of the Guarantor and is enforceable by the Investor in accordance with its terms,
except as limited by applicable law.

 

    	 	 3	 

     

    

 

IN WITNESS WHEREOF, the
Guarantor has executed this Guaranty as of the day and year first above written.

 

GUARANTOR:

 

                                                          

Milton C. Ault III

 

 

 

AGREED AND ACCEPTED:

Dominion Capital, LLC

 

By:                                                              

Name:

Title:Exhibit 10.4

 

PERFORMANCE
GUARANTY

 

This PERFORMANCE GUARANTY
(this “Agreement”) is made as of the 28th day of December, 2018, by and among Dominion Capital LLC (the “Investor”),
DPW Holdings, Inc., a Delaware corporation (“DPW”), Microphase Corporation, a Delaware corporation and subsidiary
of DPW (“Microphase”), Enertec Systems 2001 Ltd., an Israeli corporation and subsidiary of DPW (“Enertec”),
and Ault & Company, Inc., a Delaware corporation (the “Principal”);

 

W I T N E S S E T H

 

WHEREAS, Milton C.
Ault III, the Chief Executive Officer of the Principal, is the Chief Executive Officer of DPW and has extensive familiarity with
and primary responsibility for the management of DPW’s and its subsidiaries’ businesses, including the business of
Microphase and Enertec; and

 

WHEREAS, the Investor
extended credit to DPW (a) pursuant to a Senior Secured Convertible Promissory Note, dated May 15, 2018 (as amended from time to
time, the “May Note”), purchased by the Investor pursuant to a Securities Purchase Agreement, dated May 15,
2018 (as amended from time to time, the “May SPA”); (b) pursuant to a Senior Secured Convertible Promissory
Note, dated July 2, 2018 (as amended from time to time, the “July Note”), purchased by the Investor pursuant
to a Securities Purchase Agreement, dated July 2, 2018 (as amended from time to time, the “July SPA”); and (c)
pursuant to a Senior Secured Convertible Promissory Note, dated September 2, 2018 (as amended from time to time, the “September
Note,” and together with the May Note and the July Note, the “DPW Notes”), purchased by the Investor
pursuant to a Securities Purchase Agreement, dated September 2, 2018 (as amended from time to time, the “September SPA”);
and

 

WHEREAS, the Investor
extended credit to Microphase pursuant to a Senior Secured Promissory Note, dated December 28, 2018 (as amended from time to time,
the “Microphase Note”), which obligation of Microphase is secured by all assets of Microphase and its subsidiaries
pursuant to a Security Agreement, dated December 28, 2018, among Microphase, its subsidiaries and the Investor (as amended from
time to time, the “Microphase Security Agreement”);

 

WHEREAS, the Investor
extended credit to Enertec pursuant to a Senior Secured Promissory Note, dated December 28, 2018 (as amended from time to time,
the “Enertec Note”), which obligation of Enertec is secured by all assets of Enertec and its subsidiaries pursuant
to a Security Agreement, dated December 28, 2018, among Enertec, its subsidiaries and the Investor (as amended from time to time,
the “Enertec Security Agreement”); and

 

WHEREAS, pursuant to
that certain Amendment No. 10 Agreement, dated December 20, 2018, among DPW, the Investor and the Principal (in the form attached
hereto as Exhibit A, “Amendment 10”), the Principal agreed to guarantee the performance of DPW and its
subsidiaries on the outstanding obligations under the DPW Notes and to guarantee the performance of the obligations of each of
Microphase and Enertec under the Microphase Note and the Enertec Note, respectively; and

 

    	 		 

     

    

 

WHEREAS, pursuant to
that certain Personal Guaranty, dated as of December 28, 2018, between Milton C. Ault III, Chief Executive Officer of the Principal,
and the Investor (the “Personal Guaranty”), Milton C. Ault III agreed to personally guarantee the payment of
the obligations of DPW, Microphase and Enertec under the DPW Notes, Microphase Note and Enertec Note, respectively; and

 

WHEREAS, as used herein,
the term “Transaction Documents” means, collectively, this Agreement, the DPW Notes, each Transaction Document
(as defined in each of the May SPA, July SPA and September SPA), the Enertec Note, the Enertec Security Agreement, the Microphase
Note, the Microphase Security Agreement and the Personal Guaranty;

 

NOW, THEREFORE, in
consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and intending to be legally bound, the Investor, the Principal, DPW, Microphase and Enertec hereby agree as follows:

 

1.                 
Recitals. The parties hereto hereby acknowledge and agree that, to the best of their knowledge, the foregoing recitals
are true and accurate in each and every respect.

 

2.                 
Assurances By Principal.

 

(a)              
The Principal hereby covenants and agrees for the benefit of the Investor that (i) the Principal will not intentionally
or through conduct constituting fraud, gross negligence or willful misconduct, and (ii) DPW will not through intentional acts of
the Principal or through conduct constituting fraud, gross negligence or willful misconduct by the Principal, fail to perform any
covenant, condition, promise, agreement or obligation of DPW under the DPW Notes, including, without limitation, payment to the
Investor of any outstanding principal amount, accrued but unpaid interest or any other amounts owing to the Investor under the
DPW Notes when due.

 

(b)              
The Principal hereby covenants and agrees for the benefit of the Investor that (i) the Principal will not intentionally
or through conduct constituting fraud, gross negligence or willful misconduct, and (ii) Microphase will not through intentional
acts of the Principal or through conduct constituting fraud, gross negligence or willful misconduct by the Principal, fail to perform
any covenant, condition, promise, agreement or obligation of Microphase under the Microphase Note, including, without limitation,
payment to the Investor of any outstanding principal amount, accrued but unpaid interest or any other amounts owing to the Investor
under the Microphase Note when due.

 

(c)              
The Principal hereby covenants and agrees for the benefit of the Investor that (i) the Principal will not intentionally
or through conduct constituting fraud, gross negligence or willful misconduct, and (ii) Enertec will not through intentional acts
of the Principal or through conduct constituting fraud, gross negligence or willful misconduct by the Principal, fail to perform
any covenant, condition, promise, agreement or obligation of Enertec under the Enertec Note, including, without limitation, payment
to the Investor of any outstanding principal amount, accrued but unpaid interest or any other amounts owing to the Investor under
the Enertec Note when due.

 

    	 	2	 

     

    

 

(d)              
If there occurs a breach or violation of any of the obligations of the Principal, DPW, Microphase or Enertec under Sections
2(a), 2(b) and 2(c) above, which has not been cured within sixty (60) days thereof, the Principal shall unconditionally, without
set-off or deduction, indemnify, defend and hold the Investor harmless from any and all loss or damage (including, without limitation,
reasonable attorneys’ fees and other reasonable expenses and costs) to the extent resulting from such breach or violation;
provided, however, that the Principal’s aggregate liability under this Section 2 shall not exceed the sum of
$4,350,000 for outstanding obligations under the DPW Notes, the Microphase Note and the Enertec Note (the “Guarantee Amount”)
plus any and all attorneys’ fees and expenses payable by the Principal in accordance with Section 3(a) below. The Investor’s
books and records shall be prima facie evidence of the amount of any such loss or damage and any related expenses or costs.

 

3.                 
Default; Waiver; Etc.

 

(a)              
DPW agrees to pay all of the Investor’s reasonable attorneys’ fees and expenses relating to a default by the
Principal or DPW under this Agreement in connection with the DPW Notes. Microphase agrees to pay all of the Investor’s reasonable
attorneys’ fees and expenses relating to a default by the Principal or Microphase under this Agreement in connection with
the Microphase Note. Enertec agrees to pay all of the Investor’s reasonable attorneys’ fees and expenses relating to
a default by the Principal or Enertec under this Agreement in connection with the Enertec Note. The Principal agrees to pay all
of the Investor’s reasonable attorneys’ fees and expenses relating to a default by the Principal under this Agreement.

 

(b)              
Neither the Investor’s entering into this Agreement, nor any failure or delay on the part of the Investor in exercising
any right, power, or privilege under this Agreement, the DPW Notes, the Microphase Note, the Enertec Note or any other Transaction
Document shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise
of any other right, power or privilege.

 

4.                 
Reduction of Guarantee Amount; Termination.

 

(a)              
The Guarantee Amount of $4,350,000 shall be reduced by twenty-five percent (25%) for each one dollar ($1.00) reduction in
the outstanding principal amount under the DPW Notes, the Microphase Note and the Enertec Note.

 

(b)              
This Agreement shall terminate upon the earlier of (i) the written agreement of the parties hereto and (ii) on such date
that (A) no Event of Default (as defined in each of the Transaction Documents) or other material default or material breach exists
under the Transaction Documents, unless such Event of Default or other material default or material breach is waived by the Investor
in writing in its sole discretion, (B) the Principal, at its option, invests a minimum of $11,000,000 in DPW on terms determined
by the board of directors of DPW in its sole discretion, provided that such investment is completed by June 30, 2019 and (C) DPW
has fully complied with its obligations under Section 2.d of Amendment 10.

 

    	 	3	 

     

    

 

5.                 
Entire Agreement. The parties hereto acknowledge that this Agreement represents the final agreement between the parties
with respect to the specific subject matter hereof, and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties.

 

6.                 
Amendments; Waivers. This Agreement may not be modified or amended in any manner except in a writing executed by
the parties hereto. No waiver or amendment shall be deemed to be made by the Investor of any of its rights hereunder, unless the
same shall be in writing and signed by the Investor, and each waiver, if any, shall be a waiver only with respect to the specific
instance involved and shall in no way impair the rights of the Investor or the obligations of DPW, Microphase, Enertec or the Principal
in any other respect at any other time.

 

7.                 
Notices. Any and all notices, service of process or other communications or deliveries required or permitted to be
given or made pursuant to any of the provisions of this Agreement shall be in writing and shall be deemed given and effective on
the earliest of: (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
or by email attachment at the email address set forth below at or prior to 5:30 p.m. (Eastern Time) on a business day, (ii) the
next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
or by email attachment at the email address set forth below on a day that is not a business day or later than 5:30 p.m. (Eastern
Time) on any business day, (iii) the second (2nd) business day following the date of mailing, if sent by a U.S. nationally recognized
overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for
such notices and communications shall be:

 

If to DPW, at:

 

DPW Holdings, Inc.

201 Shipyard Way

Newport, CA 92663

Attn: Milton C. Ault III, Chief
Executive Officer

Tel: (949) 444-5464

Fax: (949) 444-5316

Email: Todd@DPWHoldings.com

 

If to Microphase, at:

 

Microphase Corporation

100 Trap Falls Rd. Ext

Suite 400

Shelton, CT 06484

Attn: James Ashman

Tel: (203) 913-0506

Fax: (203) 538-5558

Email: jashman@microphase.com

 

    	 	4	 

     

    

 

If to Enertec, at:

 

Enertec Systems 2001 Ltd.

Hanapach 8

Industrial Area 5

Karmiel, Israel

Attn: Nissim Ovadia

Tel: +972 (4) 958-5680

Fax: +972 (4) 988-0603

Email: nissim@enertec.co.il

 

If to the Principal, at:

 

Ault & Company, Inc.

200 Sandpointe Drive, Suite
500

Santa Ana, CA 92707

Attn: Milton C. Ault III, Chief
Executive Officer

Tel: (949) 444-5464

Fax: (949) 444-5316

Email: Todd@ault.com

 

If to the Investor, at:

 

Dominion Capital LLC

256 West 38th Street

15th Floor

New York, NY 10018

Attn: Mikhail Gurevich, Managing
Member

Tel: (212) 785-4681

Fax: (708) 844-2883

Email: mikhail@domcapllc.com

 

 

or such other facsimile
number, email address or address as may be given by the parties in accordance with the notice provisions hereof.

 

8.               Governing Law;
Waiver of Jury Trial. The parties acknowledge and agree that any claim, controversy, dispute or action relating in any way
to this Agreement and the provisions hereof shall be governed solely by the laws of the State of New York, without regard to any
conflict of laws doctrines. The parties irrevocably consent to being served with legal process issued from the state and federal
courts located in the City of New York, Borough of Manhattan (the “New York Courts”) and irrevocably consent
to the exclusive personal jurisdiction of the New York Courts. The parties irrevocably waive any objections to the personal jurisdiction
of the New York Courts. Said courts shall have sole and exclusive jurisdiction over any and all claims, controversies, disputes
and actions which in any way relate to this Agreement and the provisions hereof. The parties also irrevocably waive any objections
that the New York Courts constitute an oppressive, unfair, or inconvenient forum and agree not to seek to change venue on these
grounds or any other grounds. Nothing in this section shall affect or limit any right to serve process in any other manner permitted
by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 	5	 

     

    

 

9.                 
Binding Effect. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their
respective heirs, executors, administrators, personal representatives, successors and assigns; provided, that DPW, Microphase,
Enertec and the Principal may not assign any of their respective obligations hereunder without the Investor’s prior written
consent.

 

10.             
Captions. The section titles utilized in this Agreement are for convenience only, and shall not affect the construction
or interpretation of this Agreement or any of the provisions hereof.

 

11.             
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to constitute
an original, but all of which together shall constitute one and the same binding agreement.

 

12.             
Severability. In the event and to the extent that any provision of this Agreement shall be held invalid or unenforceable,
such invalidity or unenforceability shall not affect the validity or enforceability of any other provisions of this Agreement,
all of which shall remain fully enforceable as set forth herein.

 

 

 

[Signature Pages
Follow]

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first set forth above.

 

	 	
         

        DPW Holdings, Inc. 

         

         

         

        By:

        Name: Milton C. Ault III

        Title: Chief Executive Officer

         

	 	
        Microphase Corporation 

         

         

         

        By: _____________________________________

        Name: James Ashman

        Title: Vice President of Finance

         

         

        Enertec Systems 2001 Ltd.

         

         

         

        By: _____________________________________

        Name: Amos Kohn

        Title: Chairman of the Board of Directors

         

         

        Ault & Company, Inc.

         

         

         

        By: _____________________________________

        Name: Milton C. Ault III

        Title: Chief Executive Officer

         

         

         

        Dominion Capital LLC

         

         

         

        By: _____________________________________

        Name: Mikhail Gurevich

        Title: Managing Member

         

 

    	 	7	 

     

    

 

Exhibit A

 

 

 

Amendment No. 10 Agreement

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