Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of May 13, 2019, by and between DPW HOLDINGS INC.,
a Delaware corporation (the “Company”), and the purchaser identified on the signature pages hereto (including
its successors and assigns, the “Buyer”). The Company and the Buyer are referred to individually herein as a
“Party” and collectively as the “Parties.”

 

WHEREAS:

 

A. The Company and
the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section
4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and Rule 506(b) promulgated by the United
States Securities and Exchange Commission (the “SEC”) under the 1933 Act;

 

B. Buyer desires to
purchase from the Company, and the Company desires to issue and sell to the Buyer, upon the terms and conditions set forth in this
Agreement, a 4% Original Issue Discount Convertible Promissory Note of the Company, in the aggregate principal amount of $660,000.00
(as the principal amount thereof may be increased pursuant to the terms thereof, and together with any note(s) issued in replacement
thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, in the form attached hereto
as Exhibit A, the “Note”), convertible into shares of common stock, par value $0.001 per share,
of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth
in such Note;

 

C. The Buyer wishes
to purchase, upon the terms and conditions stated in this Agreement, such principal amount of the Note as is set forth immediately
below its name on the signature pages hereto;

 

D. The Company wishes
to issue a warrant to purchase 500,000 shares (the “Warrant Shares”) of Common Stock (the “Warrant”)
in the form attached hereto as Exhibit B to the Buyer as additional consideration for the purchase of the Note, as
further provided herein.

 

NOW THEREFORE,
in consideration of the foregoing and of the agreements and covenants herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1. Purchase and Sale of Note.

 

a. Purchase of Note. On
the Closing Date (as defined below), the Company shall issue and sell to the Buyer, and the Buyer agrees to purchase from the Company,
the Note and Warrant, as further provided herein.

 

b. Form of Payment. On
the Closing Date: (i) the Buyer shall pay the purchase price of $500,000.00 (the “Purchase Price”) for the Note,
to be issued and sold to it at the Closing (as defined below), by wire transfer of immediately available funds to the Company,
in accordance with the Company’s written wiring instructions, or by any other means that the Parties shall agree, against
delivery of the Note, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against
delivery of such Purchase Price.

 

c. Closing Date. Subject
to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time
of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 4:00 PM, Eastern
Time on the date first written above, or such other mutually agreed upon time.

 

d. Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date
at such location as may be agreed to by the parties (including via exchange of electronic signatures). On the Closing Date, the
Company shall issue the Warrant to the Buyer.

 

    	 	 	 

    	 

    

 

2. Buyer’s Representations
and Warranties. The Buyer represents and warrants to the Company as of the Closing Date that:

 

a. Investment Purpose.
As of the Closing Date, the Buyer is purchasing the Note, the Warrant, and the shares of Common Stock issuable upon conversion
of or otherwise pursuant to the Note and such additional shares of Common Stock, if any, as are issuable on account of interest
on the Note pursuant to this Agreement and/or upon exercise of the Warrant, such shares of Common Stock being collectively referred
to herein as the “Conversion Shares” and, collectively with the Note and the Warrant, the “Securities”)
for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered
or exempted from registration under the 1933 Act; provided, however, that by making the representations
herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933
Act.

 

b. Accredited Investor
Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited
Investor”).

 

c. Reliance on Exemptions. The
Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of,
and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer
set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

 

d. Information. The
Buyer and its advisors, if any, have been, furnished with all materials relating to the business, finances and operations of the
Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors.
The Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company regarding its business and
affairs. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information regarding
the Company or otherwise and will not disclose such information unless such information is disclosed to the public prior to or
promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by
Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s
representations and warranties contained in Section 3 below.

 

e. Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

f. Transfer
or Re-sale. The Buyer understands that (i) the sale or resale of the Securities has not been and is not being registered
under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at its own cost, an opinion of counsel (which may be the Legal Counsel Opinion (as defined below)) that shall be in form, substance
and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company in its
reasonable discretion, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated
under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer
the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant
to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation
S”), and the Buyer shall have delivered to the Company, at its own cost, an opinion of counsel that shall be in form,
substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company
in its reasonable discretion; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with
the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933
Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and
(iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities
laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything
else contained herein to the contrary, the Securities may be pledged in connection with a bona fide margin account
or other lending arrangement secured by the Securities, and such pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and the Buyer in effecting such pledge of Securities shall be not required to provide
the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or otherwise.

 

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g. Legends. The
Buyer understands that until such time as the Note, Warrant, and, upon conversion of the Note and/or exercise of the Warrant in
accordance with its respective terms, the Conversion Shares or the Warrant Shares, as the case may be, have been registered under
the 1933 Act or may be sold pursuant to Rule 144, Rule 144A under the 1933 Act or Regulation S without any restriction as to the
number of securities as of a particular date that can then be immediately sold, the Securities may bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE]
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A FORM ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE
144A OR REGULATION S UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth
above shall be removed and the Company shall issue a certificate for the applicable shares of Common Stock without such legend
to the holder of any Security upon which it is stamped or (as requested by such holder) issue the applicable shares of Common Stock
to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company
(“DTC”), if, unless otherwise required by applicable state securities laws, (a) such Security is registered
for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144, Rule
144A or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately
sold, or (b) the Company or the Buyer provides the Legal Counsel Opinion (as contemplated by and in accordance with Section 4(l)
hereof, including but not limited to that the requirement that in each such case that the requirements of Rule 144 are satisfied
and that the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective registration statement)
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Company shall be responsible for the fees of its
transfer agent and all DTC fees associated with any such issuance. The Buyer agrees to sell all Securities, including those represented
by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the Legal Counsel Opinion provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144, Rule 144A or Regulation S, at the Deadline (as defined
in the Note), The company will have three (3) Business Days to provide an opinion if no opinion is provided it will be considered
an Event of Default pursuant to Section 3.2 of the Note.

 

h. Authorization;
Enforcement. This Agreement has been duly and validly authorized by the Buyer and has been duly executed and delivered
on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with
its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and except as may be limited by the exercise of judicial
discretion in applying principles of equity.

 

i. Residency. The
Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

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3. Representations
and Warranties of the Company. The Company represents and warrants to the Buyer as of the Closing Date that:

               

a. Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased,
used, operated and conducted. Schedule 3(a) sets forth a list of all of the Subsidiaries of the Company and the jurisdiction
in which each is incorporated. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted
by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material
Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, operations, assets,
financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated
hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any
corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any
equity or other ownership interest.

 

b. Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement,
the Note, and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the
terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Warrant, the Note, the Conversion Shares and the
Warrant Shares by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without
limitation, the issuance of the Note, Warrant, as well as the issuance and reservation for issuance of the Conversion Shares issuable
upon conversion of the Note and/or exercise of the Warrant) have been duly authorized by the Company’s Board of Directors
and no further consent or authorization of the Company, its Board of Directors, its shareholders, or its debt holders is required,
(iii) this Agreement and the Note (together with any other instruments executed in connection herewith or therewith) have been
duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true
and official representative with authority to sign this Agreement, the Note and the other instruments documents executed in connection
herewith or therewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by
the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with their terms.

 

c. Capitalization;
Governing Documents.  All outstanding shares of capital stock of the Company as well as the Conversion Shares and the
Warrant Shares, are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital
stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens
or encumbrances imposed through the actions or failure to act of the Company. The Company has furnished to the Buyer, by reference
to Edgar at www.sec.gov, true and correct copies of the Company’s Certificate of Incorporation as in effect on the
date hereof (“Certificate of Incorporation”), the Company’s Bylaws, as in effect on the date hereof (the
“Bylaws”), and the terms of all securities convertible into or exercisable for Common Stock of the Company and
the material rights of the holders thereof in respect thereto.

 

d. Issuance of Conversion
Shares. The Conversion Shares have been duly authorized and reserved for issuance and, upon conversion of the Note in
accordance with its terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

e. Issuance of Warrant
and the Warrant Shares. The issuance of the Warrant and, upon exercise thereof, the Warrant Shares, have been duly authorized
and will be validly issued and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall
not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability
upon the holder thereof.

 

f. Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect of the Conversion Shares and Warrant
Shares to the Common Stock. The Company further acknowledges that its obligation to issue, the Conversion Shares upon conversion
of the Note and the Warrant Shares upon exercise of the Warrant, in accordance with this Agreement, and the Note are absolute and
unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of
the Company.

 

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g. No Conflicts. 
The execution, delivery and performance of this Agreement and the Note by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion
Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or Bylaws, or
(ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice
or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, note, evidence of indebtedness, indenture, patent, patent license or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities is subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect), or (iv) trigger any
anti-dilution and/or ratchet provision contained in any other contract in which the Company is a party thereto or any security
issued by the Company. Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, Bylaws
or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred
which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the
Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries
is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible
defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its
Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation
of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required
under the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization
or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement and
the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and,
upon conversion of the Note and/or exercise of the Warrant, issue Conversion Shares and Warrant Shares. Except as disclosed in
the SEC Documents or in press releases issued by the Company (as hereinafter defined), the Company has not, in the 12 months preceding
the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect
that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. For purposes of this
Agreement, “Trading Market” shall mean any of the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the
Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

h. SEC Documents;
Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter
referred to herein as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC
Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended
or updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of the Company
included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States
generally accepted accounting principles, consistently applied, during the periods involved and fairly present in all material
respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated
results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). Except as set forth in the financial statements of the Company included in the SEC Documents, the
Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent
to September 30, 2017, and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not
required under generally accepted accounting principles to be reflected in such financial statements, which, individually or in
the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting
requirements of the 1934 Act. The Company has never been a “shell company” as described in Rule 144(i)(1)(i).

 

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i. Absence of Certain
Changes.  Since September 30, 2017, there has been no material adverse change and no material adverse development in the
assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting
status of the Company or any of its Subsidiaries.

 

j. Absence
of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the
Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or
directors in their capacity as such, that could have a Material Adverse Effect.

 

k. Intellectual
Property. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent
applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names,
trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business as now operated
(and, as presently contemplated to be operated in the future); there is no claim or action by any person pertaining to, or proceeding
pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary with respect
to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to
be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current
and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person;
and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and each of
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual
Property.

 

l. No
Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

m. Tax
Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the
Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books
provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the
statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s
tax returns is presently being audited by any taxing authority.

 

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n. Disclosure. All
information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the Buyer
pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is true and correct in all
material respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein
or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or
exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial
conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934
Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o. No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

p. No
Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

q. Permits;
Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its
properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the
Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the
Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect. Since September 30, 2017, neither the Company nor any of its Subsidiaries has received
any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

r. Environmental
Matters.

 

(i) There are, to the
Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past
or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions, activities,
circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental liability
or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state,
local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing,
nor is any action pending or, to the Company’s knowledge, threatened in connection with any of the foregoing. The term ”Environmental
Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment
(including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic
or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii) Other than those
that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or about
any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released
on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the period the
property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company’s
or any of its Subsidiaries’ business.

 

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(iii) There are no underground
storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are not in compliance
with applicable law.

 

s. Title to Property. The
Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to
all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and
clear of all liens, encumbrances and defects except such as would not have a Material Adverse Effect. Any real property and facilities
held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as would not have a Material Adverse Effect.

 

t. Insurance. The
Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and
its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as
may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written request the Company
will provide to the Buyer true and correct copies of all policies relating to directors’ and officers’ liability coverage,
errors and omissions coverage, and commercial general liability coverage.

 

u. Internal Accounting
Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the
judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access
to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

4. ADDITIONAL COVENANTS, AGREEMENTS AND
ACKNOWLEDGEMENTS.

 

a. Best Efforts. The
parties shall use their best efforts to satisfy timely each of the conditions described in Section 6 and 7 of this Agreement.

 

b. Form D;
Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D. The Company
shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary to qualify the Securities
for sale to the Buyer at the applicable closing pursuant to this Agreement under applicable securities or “blue sky”
laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any
such action so taken to the Buyer on or prior to the Closing Date.

 

c. Use of Proceeds. The
Company shall use the proceeds for working capital, and not for the repayment of any indebtedness owed to officers, directors or
employees of the Company or their affiliates or in violation or contravention of any applicable law, rule or regulation.

 

d. Reserved.

 

    	 	 8	 

    	 

    

 

e. Usury. 
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and
will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any
time hereafter in force, in connection with any action or proceeding that may be brought by the Buyer in order to enforce any right
or remedy under this Agreement, the Note and any document, agreement or instrument contemplated thereby.  Notwithstanding
any provision to the contrary contained in this Agreement, the Note and any document, agreement or instrument contemplated thereby,
it is expressly agreed and provided that the total liability of the Company under this Agreement, the Note or any document, agreement
or instrument contemplated thereby for payments which under applicable law are in the nature of interest shall not exceed the maximum
lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no
event shall any rate of interest or default interest, or both of them, when aggregated with any other sums which under applicable
law in the nature of interest that the Company may be obligated to pay under this Agreement, the Note and any document, agreement
or instrument contemplated thereby exceed such Maximum Rate.  It is agreed that if the maximum contract rate of interest allowed
by law applicable to this Agreement, the Note and any document, agreement or instrument contemplated thereby is increased or decreased
by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed
by law will be the Maximum Rate applicable to this Agreement, the Note and any document, agreement or instrument contemplated thereby
from the effective date thereof forward, unless such application is precluded by applicable law.  If under any circumstances
whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Buyer with respect to indebtedness evidenced by
this Agreement, the Note and any document, agreement or instrument contemplated thereby, such excess shall be applied by the Buyer
to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be
at the Buyer’s election.

 

e. Listing. The
Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which
it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares on such Trading
Market and promptly secure the listing of all of the Shares on such Trading Market. The Company further agrees, if the Company
applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares,
and will take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market
as promptly as possible. The Company will then take all action reasonably necessary to continue the listing or quotation and trading
of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) or such exchanges, as applicable.
The Company shall promptly provide to the Buyer copies of any notices it receives from the Trading Market on which the Common Stock
is then traded regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.

 

f. Corporate
Existence. The Company will, so long as the Buyer beneficially owns any of the Securities, maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading any tier of the NASDAQ Stock Market, the New
York Stock Exchange or the NYSE American.

 

g. No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the
Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision
applicable to the Company or its securities.

 

h. Breach
of Covenants. The Company acknowledges and agrees that if the Company breaches any of the covenants set forth in this Section
4, in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default
under Section 3.3 of the Note.

 

i. Disclosure
of Transactions. By 9:00 a.m., New York time, within the time frame required by the 1934 Act, the Company shall file a Current
Report on Form 8-K describing the terms of the transactions contemplated by this Agreement in the form required by the 1934 Act
and attaching this Agreement, the form of Note and the Warrant (the “8-K Filing”).

 

j. Legal
Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at its cost) for promptly
supplying to the Company’s transfer agent a customary legal opinion letter of its counsel (the “Legal Counsel Opinion”)
to the effect that the resale of the Conversion Shares and Warrant Shares by the Buyer or its affiliates, successors and assigns
is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided in each such case that the requirements
of Rule 144 are satisfied and provided further that the Conversion Shares and Warrant are not then registered under the 1933 Act
for resale pursuant to an effective registration statement). Should the Company’s legal counsel fail for any reason to issue
the Legal Counsel Opinion, the Buyer may (at the Company’s cost) secure another legal counsel to issue the Legal Counsel
Opinion, and the Company will instruct its transfer agent to accept such opinion. The Company hereby agrees that it may never take
the position that it is a “shell company” in connection with its obligations under this Agreement or otherwise.

    	 	 9	 

    	 

    

k. Required
Approval. Other than any approval of the NYSE American required to be obtained by Company (“Required Approval”)
pursuant to any applicable rules of the NYSE American to issue the Securities, no transactions contemplated under this Agreement
shall be consummated for an amount that would require any other approval by any Trading Market other than, if applicable, the Company
stockholders.

 

5. Transfer Agent
Instructions. The Company shall issue irrevocable instructions to the Company’s transfer agent to issue certificates,
registered in the name of the Buyer or its nominee, upon conversion of the Note and/or exercise of the Warrant, the Conversion
Shares and Warrant Shares, in such amounts as specified from time to time by the Buyer to the Company in accordance with the
terms thereof (the “Irrevocable Transfer Agent Instructions”).  

6. Conditions to the
Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer at
the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions thereto, provided
that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:

 

a. The Buyer shall
have executed this Agreement and delivered the same to the Company.

 

b. The Buyer shall
have delivered the Purchase Price in accordance with Section 1(b) above.

 

c. The representations
and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as of the Closing Date,
as though made at that time (except for representations and warranties that speak as of a specific date), and the Buyer shall have
performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement
to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d. No litigation, statute,
rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or
in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the
matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

e. Any Required Approval
shall have been obtained.

 

7. Conditions to the
Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note, on the Closing Date,
is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions
are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a. The Company shall
have executed this Agreement and delivered the same to the Buyer.

 

b. The Company shall
have delivered to the Buyer the duly executed Note in such denominations as the Buyer shall request and in accordance with Section
1(b) above.

 

c. The Company shall
have delivered to the Buyer the Warrant.

 

d. The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as
of Closing Date, as though made at such time (except for representations and warranties that speak as of a specific date) and the
Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

    	 	 10	 

    	 

    

 

e. Trading
in the Common Stock on the Trading Market shall not have been suspended by the SEC, FINRA or the NYSE American.

 

f. Any
Required Approval shall have been obtained.

 

8. Governing Law; Miscellaneous.

 

a. Governing Law;
Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement, the Note, the Warrant or any other agreement, certificate, instrument or document contemplated hereby shall
be brought only in the state courts of New York or in the federal courts located in the state and county of New York. The parties
to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. Each party hereby irrevocably waives personal service of process
and consents to process being served in any suit, action or proceeding in connection with this Agreement, the Note, the Warrant
or any other agreement, certificate, instrument or document contemplated hereby or thereby by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b. Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. A facsimile or .pdf signature shall be considered due execution and shall be binding upon the signatory thereto with the
same force and effect as if the signature were an original, not a facsimile or .pdf signature. Delivery of a counterpart signature
hereto by facsimile or email/.pdf transmission shall be deemed validly delivery thereof.

 

c. Construction;
Headings.  This Agreement shall be deemed to be jointly drafted by the Company and the Buyer and shall not be construed
against any person as the drafter hereof. The headings of this Agreement are for convenience of reference only and shall not form
part of, or affect the interpretation of, this Agreement.

 

d. Severability. In
the event that any provision of this Agreement, the Note, the Warrant or any other agreement or instrument delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
of this Agreement, the Note, or any other agreement, certificate, instrument or document contemplated hereby or thereby.

 

e. Entire Agreement;
Amendments. This Agreement, the Note, the Warrant and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement or any agreement or instrument contemplated hereby may be waived or amended other than by an instrument
in writing signed by the Buyer.

  

    	 	 11	 

    	 

    

 

f. Notices. 
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have
specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a Business Day during normal business hours where
such notice is to be received), or the first Business Day following such delivery (if delivered other than on a Business Day during
normal business hours where such notice is to be received) or (b) on the second Business Day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall to the Company as set forth below and to the Buyer as set forth on Buyer’s signature
page.

 

If to the Company, to:

 

DPW HOLDINGS, INC.

48430 Lakeview Blvd.

Fremont, CA 94538

Attention: Milton C. Ault III

Email: Todd@DPWHoldings.com

 

 

g. Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to any
person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term
is defined under the 1934 Act, without the consent of the Company.

 

h. Third Party Beneficiaries. This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other person.

 

i. Survival. The
representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing
hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify
and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or
related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this
Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j. Expense Reimbursement;
Further Assurances.  At the Closing to occur as of the Closing Date, the Company shall pay on behalf of the Buyer or reimburse
the Buyer for its legal fees and expenses incurred in connection with this Agreement, pursuant to the disbursement authorization
signed by the Company of even date. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

k. No Strict Construction. The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

 

l. Remedies. The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the
intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement or the Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Agreement or the Note, that the Buyer shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement or the Note and to enforce specifically the terms and provisions hereof, without
the necessity of showing economic loss and without any bond or other security being required.

  

[Signature Page Follows]

 

    	 	 12	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed by its authorized signatory effective as of the
day, month and year first above written above

 

 

DPW HOLDINGS,
INC.

 

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

 

 

DPW Holdings, Inc.

201 Shipyard Way

Newport CA 92663

Attn: CEO

 

 

 

 

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

SIGNATURE PAGE
FOR BUYER FOLLOWS]

 

    	 	 13	 

    	 

    

 

[BUYER SIGNATURE
PAGE TO AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed by its authorized signatory effective as of the
day, month and year first above written above.

 

	Name of Buyer: Ding Gu	 	 
	Signature
    of Authorized Signatory of Buyer:   	/s/ Ding Gu	 
	Name of Authorized Signatory:  Ding Gu	 	 
	Email Address of Authorized Signatory: 	 	 
	Facsimile Number of Authorized Signatory:  	 	 

 

Address for Notice of Buyer:

 

Address for Delivery of Securities
for Buyer (if not same as address for notice):

 

	 	 
	 	 

 

 EIN Number:  [PROVIDE
THIS UNDER SEPARATE COVER]

 

    	 	 14	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTE

 

(see attached)

 

 

 

 

 

 

    	 	 15	 

    	 

    

 

EXHIBIT B

 

FORM OF WARRANT

 

(see attached)

 

 

 

 

 

16Exhibit 10.2

 

PERSONAL GUARANTEE

 

This PERSONAL GUARANTEE
(the “Guarantee”), is entered into this 10th day of May, 2019, by Milton C. Ault III (the “Guarantor”),
to and for the benefit of Ding Gu, an individual (the “Lender”) and DPW Holdings, Inc., a Delaware corporation
(the “Company”). Capitalized terms used but not defined herein, shall have the meaning given such terms in the
Note (defined below).

 

RECITALS

 

WHEREAS, the
Company has agreed to sell and issue to the Lender, and the Lender has agreed to purchase from the Company, the Company’s
4% Original Issue Discount Note (the “Note”), subject to the terms and conditions set forth therein.

 

WHEREAS, Lender is willing to acquire
the Note from the Company provided that it receives a guarantee of the undersigned Guarantor covering the Payment Obligations of
the Company to Lender, as hereinafter defined.

 

NOW THEREFORE,
for in consideration of the premises and of other good and valuable consideration and in order to induce the Lender to purchase
the Note, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows:

 

1.       Guarantee.

 

(a)       Guarantor
hereby unconditionally and irrevocably guarantees to Lender, as primary obligor and not merely as a surety, all payments of all
liabilities of the Company to the Lender under the terms of the Note, whether matured or unmatured and whether absolute of contingent
(all of which are herein collectively referred to as the “Payment Obligations”).

 

(b)       Guarantor
unconditionally and irrevocably guarantees to Lender that if the Company fails to perform any of the Payment Obligations, when
due, Guarantor shall, upon written demand by Lender, perform, or cause to be performed, all such Payment Obligations.

 

(c)       All
payments made by Guarantor, pursuant to the obligations incurred by Guarantor hereunder, shall be made to the Lender in United
States dollars and shall be paid within ten (10) Business Days after receipt by Guarantor from Lender of written demand for such
payment.

 

(d)       Guarantor
hereby agrees to pay all costs, expenses and fees, including all reasonable attorneys’ fees, actually incurred by the Lender
in enforcing this Guarantee, whether by suit or otherwise.

 

(e)       Guarantor
hereby agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection.

 

2.       Representations
and Warranties.  Guarantor represents and warrants to Lender and Company that this Guarantee constitutes the valid and
legally binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms and conditions.

 

3.       Obligations
Unconditional.  To the extent permitted by law, the Guarantor waives all defenses, counterclaims or offsets that are legally
available to the Guarantor with respect to the Payment Obligations of the Company. The Guarantor guarantees that the Company will
promptly pay the full amount of principal and interest of the Note as and when the same will, in any manner, be or become due,
either according to the terms and conditions provided by the Note or upon acceleration of the payment under the Note by reason
of an Event of Default.

 

4.       Independent
Obligations.  The obligations of Guarantor hereunder are the direct and primary obligations of the Guarantor and are independent
of the obligations of the Company and, in the event of any default hereunder, a separate action or actions may be brought and prosecuted
against Guarantor whether or not the Company is joined therein or a separate action is brought against Company. All remedies hereunder
and under the Note are cumulative and are not exclusive of any other remedies provided by law. Neither Lender nor any affiliate
thereof shall be deemed to have waived any rights hereunder or under any other agreement or instrument unless such waiver shall
be in writing and signed by such parties.

 

    	 	 - 1 -	 

    	 

    

 

5.       Waiver. 
Guarantor unconditionally and irrevocably waives:

 

(a)       Presentment
to, demand of performance or cure from and protest to Company of any of the Payment Obligations, and also waives notice of acceptance
of its guarantee, demand, protest, presentment, and any requirement of diligence, and notice of any liability to which it may apply,
and waives notice of nonperformance of any such liability, suit or the taking of other action by Lender, and any other notice to
any party liable thereon, regardless of whether such notices are required by statute, rule of law, or otherwise, now or hereafter
in effect;

 

(b)       any
defense based upon an election of remedies by Lender, unless the same would excuse performance by the Company, under the Note;

 

(c)       any
duty of Lender to advise Guarantor of any information known to Lender regarding the Company or its ability to perform under the
Note, except for notices specifically provided for herein; and

 

(d)       any
other circumstance whatsoever which might otherwise constitute a legal or equitable discharge, release or defense of a guarantor
or surety, or which might otherwise limit recourse against the Guarantor.

 

6.       Third
Parties.  This Guarantee shall not confer any rights or remedies upon any person other than the parties hereto and their
successors and assigns.

 

7.       Successors
and Assigns.  This Guarantee shall be binding upon and inure to the benefit of the parties hereto and their successors
and assigns, and shall remain in full force and effect and shall be irrevocable without regard to the genuineness, validity, legality
or enforceability of the Note.  This Guarantee may not be assigned by Guarantor without the prior written consent of Lender
in its sole and absolute discretion. Upon such assignment or delegation and assumption of obligations, Guarantor shall be relieved
of and fully discharged from all obligations hereunder, whether such obligations arose before or after such assignment or delegation
and assumption.

 

8.       Notices. 
All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if
delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the parties at the following addresses
or facsimile numbers:

 

	If to Lender, to:	
        Ding Gu

        10 Honeysuckle Drive

        Sewell, NJ 08080

	 	 
	
        If to Guarantor, to:

         
	
        Milton C. Ault, III

        c/o DPW Holdings, Inc.

	 	 
	If to the Company, to:	
        DPW Holdings, Inc.

        48430 Lakeview Blvd.

        Fremont, CA 94538-3158

        Attn: Milton C. Ault III, Chief Executive Officer

 

All such notices, requests and other communications
will (i) if delivered personally to the address as provided in this Paragraph 8, be deemed given upon delivery, (ii) if delivered
by facsimile transmission to the facsimile number as provided in this Paragraph 8, be deemed given upon receipt, and (iii) if delivered
by mail in the manner described above to the address as provided in this Paragraph 8, be deemed given upon receipt.  Any party
from time to time may change its address, facsimile number or other information for the purpose of notices to that party by giving
notice specifying such change to the other parties hereto.

 

    	 	 - 2 -	 

    	 

    

 

9.       Governing
Law and Forum.  This Guarantee shall be governed by, and construed in accordance with, the law of the State of New York
without regard to principles of conflicts of law.  Each of the parties hereto (a) consents to submit itself to the personal
jurisdiction of any federal court located in the State of New York or any New York state court in the event any dispute arises
out of this Guarantee, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request
for leave from any such court and (c) agrees that it shall not bring any action relating to this Guarantee in any court other than
a federal or state court sitting in the State of New York.

 

10.       Entire
Agreement and Amendments.  This Guarantee embodies the entire agreement by and among the Guarantor, the Lender and the
Company.  There are no promises, terms, conditions or obligations other than those contained herein, and this Guarantee shall
supersede all previous communications, representations or agreements, either verbal or written, between Guarantor, Lender and Company. 
No amendment of any provision of this Guarantee shall be valid unless the amendment shall be in writing and signed by Guarantor,
Lender and Company.

 

11.       No
Waiver. No delay on the part of Lender in exercising any rights hereunder or failure to exercise the same shall operate as
a waiver of such rights; no notice to or demand on the undersigned shall be deemed to be a waiver of the obligations of the undersigned
or of the right of Lender to take further action without notice or demand as provided herein.

 

12.       Severability. 
Any term or provision of this Guarantee that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

 

13.       Counterparts. 
This Guarantee may be executed and delivered (including via facsimile) in any number of counterparts, each of which will be deemed
an original, but all of which together will constitute one and the same instrument.

 

[Signatures on the following page]

 

    	 	 - 3 -	 

    	 

    

 

IN WITNESS WHEREOF, this Guarantee has been
duly executed and delivered as of the date first above written.

 

 

	 	 	 	 	THE GUARANTOR:
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	
        Milton C. Ault III, an Individual

	 
	AGREED TO AND ACCEPTED BY:	 	 	 
	 	 	 	 
	 	 	 	 
	THE LENDER:	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	Name:	Ding Gu	 	 	 	 
	Title:	an Individual	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	THE COMPANY:	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	Name:	Milton C. Ault III	 	 	 	 
	Title:	Chief Executive Officer	 	 	 	 

 

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]