Document:

Exhibit 10.23 

   

	   	 Agreement
    for the Purchase and Sale of Future Receipts 	   

   

 Seller’s Legal Name: DIGITAL
POWER CORPORATION    D/B/A:  DIGITAL POWER/DPW 

   

 Form of Business
Entity: [x] Corporation; [ ] Limited Liability Company; [ ] Partnership; [ ] Limited
Partnership; [ ] Limited Liability Partnership; [ ] Sole Proprietorship; [ ]Other: _________________________________ 

   

 Street
Address: 48430 Lakeview Blvd.                                        ,
City: Fremont                               ,
State: CA ; Zip: 94538 

   

 Mailing
Address: same as above                                            
    , City:_______________________, State:___________________; Zip: ________ 

   

 Primary
Contact Name: Milton C. Ault, III                                                                                        Title:
___________________ 

   

 Time
in Business: 11/1969                                                             Federal
Tax ID Number:_______________ 

   

 Purchase Price: $ 225,000           
Purchased Amount: $ 337,275.00             Average
Monthly Sales: $ ______________ 

   

 Specified Percentage: 15            
% Origination Fee: $ 6,750       (to be deducted from the Purchase Price) 

   

 Initial Daily Amount: $ 2,677.00    
(Average Monthly Sales x Specified Percentage / Average Business Days in a Calendar Month) 

   

 Account
for the Deposit of All Future Receipts: Bank:_________________________________________________________________________ 

   

	 Account No: 	   	   

   

 Effective, January 23      
, 2018, Seller, identified above, hereby sells, assigns and transfers to TVT Capital, LLC, located at 30 Wall Street, Suite
801, New York, NY 10005 (“Buyer”), without recourse, the Specified Percentage of the proceeds of each future sale
made by Seller (collectively “Future Receipts”) until Seller has received the Purchased Amount. “Future Receipts”
includes all payments made by cash, check, ACH or other electronic transfer, credit card, debit card, bank card, charge card (each
such card shall be referred to herein as a “Payment Card”) or other form of monetary payment in the ordinary course
of Seller’s business. As payment for the Purchased Amount, Buyer will deliver to Seller the
Purchase Price, shown above, minus any Origination Fee shown above. Seller acknowledges that it has no right to repurchase the
Purchased Amount from Buyer. 

   

 Both parties agree that the obligation of Buyer
under this Agreement will not be effective unless and until Buyer has completed its review of the Seller and has accepted this
Agreement by delivering the Purchase Price, minus any Origination Fee. Prior to accepting
this Agreement, Buyer may conduct a processing trial to confirm its access to the Account and the ability to withdraw the Initial
Daily Amount. If the processing trial is not completed to the satisfaction of Buyer, Buyer will refund to Seller all funds that
were obtained by Buyer during the processing trial. 

   

 Agreement of Seller:
By signing below Seller agrees to the terms and conditions contained in this Agreement, including those terms and conditions
on the following pages, and further agrees that this transaction is for business purposes and not for personal, family, or household
purposes. 

   

 Seller: DIGITAL POWER CORPORATION          
 

   

 Agreed to by: /s/ Milton C.
Ault, III                  
(Signature), its Chairman & CEO            (Title) 

   

 Agreed to by: _________________________(Signature),
its __________________(Title) 

 

   

 Buyer: TVT CAPITAL, LLC                              
 

   

 Agreed to by: _________________________(Signature),
Its __________________(Title) 

   

    	Initials:	 	 	1	TVT Capital, LLC
	 	 	 	 	 

     

    

   

 Agreement of Each Owner: Each Owner signing
below agrees to the terms of the Credit Report Authorization below. 

   

 Milton
C. Ault, III                                                     (Print
Name); /s/ Milton C. Ault, III                        (Signature); 

   

                                                                            ____(Print
Name);___________________________(Signature); 

   

	 1. 	 Delivery of Purchased Amount: Seller must deposit all
                                         Future Receipts into the single business banking account specified above, which may not
                                         be used for any personal, family or household purposes (the “Account”) and
                                         must instruct Seller’s credit card processor, which must be approved by Buyer (the
                                         “Processor”) to deposit all Payment Card receipts of Seller into the Account.
                                         Seller agrees not to change the Account or add an additional Account without the express
                                         written consent of Buyer. Seller authorizes Buyer to debit the Daily Amount from the
                                         Account each business day by either ACH or electronic check. Seller will provide Buyer
                                         with all required access codes and agrees not to change them without prior written consent
                                         from Buyer. Seller will provide an appropriate ACH authorization to Buyer. Seller understands
                                         that it is responsible for either ensuring that the Daily Amount is available in the
                                         Account each business day or advising Buyer prior to each daily withdrawal of a shortage
                                         of funds. Otherwise, Seller will be responsible for any fees incurred by Buyer resulting
                                         from a rejected electronic check or ACH debit attempt, as set forth on Appendix A. Buyer
                                         is not responsible for any overdrafts or rejected transactions that may result from Buyer’s
                                         debiting any amount authorized under the terms of this Agreement. Seller understands
                                         that the foregoing ACH authorization is a fundamental condition to induce Buyer to accept
                                         the Agreement. Consequently, such authorization is intended to be irrevocable. 

   

	 2. 	 Seller May Request Changes to the Daily Amount: The initial
                                         Daily Amount is intended to represent the Specified Percentage of Seller’s daily
                                         Future Receipts. For as long as no Event of Default has occurred, once each calendar
                                         month, Seller may request that Buyer adjust the Daily Amount to more closely reflect
                                         the Seller’s actual Future Receipts times the Specified Percentage. Seller agrees
                                         to provide Buyer any information requested by Buyer to assist in this reconciliation.
                                         No more often than once a month, Buyer may adjust the Daily Amount on a going-forward
                                         basis to more closely reflect the Seller’s actual Future Receipts times the Specified
                                         Percentage. Buyer will give Seller notice five business days prior to any such adjustment.
                                         After each adjustment made pursuant to this paragraph, the new dollar amount shall be
                                         deemed the Daily Amount until any subsequent adjustment. 

   

	 3. 	 Daily Amount Upon Default. Upon the occurrence of an Event
                                         of Default, the Daily Amount shall equal 100% of all Future Receipts. 

   

	 4. 	 Sale of Future Receipts (THIS IS NOT A LOAN): Seller is
                                         selling a portion of a future revenue stream to Buyer at a discount, not borrowing money
                                         from Buyer. There is no interest rate or payment schedule and no time period during which
                                         the Purchased Amount must be collected by Buyer. If Future Receipts are remitted more
                                         slowly than Buyer may have anticipated or projected because Seller’s business has
                                         slowed down, or if the full Purchased Amount is never remitted because Seller’s
                                         business went bankrupt or otherwise ceased operations in the ordinary course of business,
                                         and Seller has not breached this Agreement, Seller would not owe anything to Buyer and
                                         would not be in breach of or default under this Agreement. Buyer is buying the Purchased
                                         Amount of Future Receipts knowing the risks that Seller’s business may slow down
                                         or fail, and Buyer assumes these risks based on Seller’s representations, warranties
                                         and covenants in this Agreement that are designed to give Buyer a reasonable and fair
                                         opportunity to receive the benefit of its bargain. By this Agreement, Seller transfers
                                         to Buyer full and complete ownership of the Purchased Amount of Future Receipts and Seller
                                         retains no legal or equitable interest therein. Seller agrees that it will treat Purchase
                                         Price and Purchased Amount in a manner consistent with a sale in its accounting records
                                         and tax returns. Seller agrees that Buyer is entitled to audit Seller’s accounting
                                         records upon reasonable Notice in order to verify compliance. Seller waives any rights
                                         of privacy, confidentiality or taxpayer privilege in any such litigation or arbitration
                                         in which Seller asserts that this transaction is anything other than a sale of future
                                         receipts. 

   

	 5. 	 Power of Attorney. Seller irrevocably appoints Buyer as
                                         its agent and attorney-in-fact with full authority to take any action or execute any
                                         instrument or document to settle all obligations due to Buyer from Seller, or in the
                                         case of a violation by Seller of this Agreement or the occurrence of an Event of Default
                                         under Section 15 hereof by Seller, including without limitation (i) to obtain and adjust
                                         insurance; (ii) to collect monies due or to become due under or in respect of any of
                                         the Future Receipts; (iii) to receive, endorse and collect any checks, notes, drafts,
                                         instruments, documents or chattel paper in connection with clause (i) or clause (ii)
                                         above; (iv) to sign Seller’s name on any invoice, bill of lading, or assignment
                                         directing customers or account debtors to direct payables to Buyer; (v) to file any claims
                                         or take any action or institute any proceeding which Buyer may deem necessary for the
                                         collection of any of the remaining Purchased Amount of the Future Receipts, or otherwise
                                         to enforce its rights with respect to delivery of the Purchased Amount; and/or (vi) to
                                         contact any Processor of Seller and to direct such Processor(s) to deliver directly to
                                         Buyer all or any portion of the amounts received by such Processor(s) and to provide
                                         any information regarding Seller requested by Buyer. Each Processor may rely on the previous
                                         sentence as written authorization of Seller to provide any information requested by Buyer.
                                         Each Processor is hereby irrevocably authorized and directed by Seller to follow any
                                         instruction of Buyer without inquiry as to Buyer’s right or authority to give such
                                         instructions. Seller acknowledges the terms of the preceding sentence and agrees not
                                         to (a) interfere with Buyer’s instructions or a Processor’s compliance with
                                         this Agreement or (b) request any modification thereto without Buyer’s prior written
                                         consent. 

   

    	Initials:	 	 	2	TVT Capital, LLC
	 	 	 	 	 

     

    

   

	 6. 	 Fees
                                         and Charges: Other than the Origination Fee, if any, set forth above, Buyer is NOT
                                         CHARGING ANY ORIGINATION OR BROKER FEES to Seller. If Seller is charged another such
                                         fee, it is not being charged by Buyer. A list of all fees and charges applicable under
                                         this Agreement is contained in Appendix A. 

   

	 7. 	 Credit
                                         Report and Other Authorizations: Seller and each of the Owners signing above authorize
                                         Buyer, its agents and representatives and any credit reporting agency engaged by Buyer,
                                         to (i) investigate any references given or any other statements or data obtained from
                                         or about Seller or any of its Owners for the purpose of this Agreement, (ii) obtain consumer
                                         and business credit reports on the Seller and any of its Owners, and (iii) to contact
                                         personal and business references provided by the Seller in the Application, at any time
                                         now or for so long as Seller and/or Owners continue to have any obligation owed to Buyer
                                         as a consequence of this Agreement or for Buyer’s ability to determine Seller’s
                                         eligibility to enter into any future agreement with Buyer. 

   

	 8. 	 Authorization
                                         to Contact Current and Prior Banks: Seller hereby authorizes Buyer to contact any
                                         current or prior bank of the Seller in order to obtain whatever information it may require
                                         regarding Seller’s transactions with any such bank. Such information may include
                                         but is not limited to, information necessary to verify the amount of Future Receipts
                                         previously processed on behalf of Seller and any fees that may have been charged by the
                                         bank. In addition, Seller authorizes Buyer to contact any current or prior bank of the
                                         Seller for collections and in order to confirm that Seller is exclusively using the Account
                                         identified above, or any other account approved by Buyer, for the deposit of all business
                                         receipts. 

   

	 9. 	 Financial
                                         Information. Seller authorizes Buyer and its agents to investigate its financial
                                         responsibility and history, and will provide to Buyer any authorizations, bank or financial
                                         statements, tax returns, etc., as Buyer deems necessary in its sole discretion prior
                                         to or at any time after execution of this Agreement. A photocopy of this authorization
                                         will be deemed acceptable as an authorization for release of financial and credit information.
                                         Buyer is authorized to update such information and financial and credit profiles from
                                         time to time as it deems appropriate. Seller waives, to the maximum extent permitted
                                         by law, any claim for damages against Buyer or any of its affiliates relating to any
                                         investigation undertaken by or on behalf of Buyer as permitted by this Agreement or disclosure
                                         of information as permitted by this Agreement. 

   

	 10. 	 Transactional History. Seller authorizes all of its banks
                                         and brokers and Payment Card processors to provide Buyer with Seller’s banking,
                                         brokerage and/or processing history to determine qualification or continuation in this
                                         program, or for collections upon an Event of Default. 

   

	 11. 	 Publicity. Seller hereby authorizes Buyer to use its
                                         name in listings of clients and in advertising and marketing materials. 

   

	 12. 	 Application of Amounts Received by Buyer. Buyer reserves
                                         the right to apply amounts received by it under this Agreement to any fees or other charges
                                         due to Buyer from Seller prior to applying such amounts to reduce the amount of any outstanding
                                         Purchased Amount. 

   

	 13. 	 Representations, Warranties and Covenants of Seller: 

   

 13.1.       
Good Faith, Best Efforts and Due Diligence. Seller will conduct its business in good faith and will use its best efforts
to continue its business at least at its current level, to ensure that Buyer obtains the Purchased Amount. 

   

 13.2.  
Stacking Prohibited. Seller shall not enter into any Seller cash advance or any loan agreement that relates to or involves
its Future Receipts with any party other than Buyer for the duration of this Agreement. Buyer may share information regarding
this Agreement with any third party in order to determine whether Seller is in compliance with this provision. 

    

    	Initials:	 	 	3	TVT Capital, LLC
	 	 	 	 	 

     

    

   

 13.3.       
Financial Condition and Financial Information. Any bank statements and financial statements of Seller that have been
furnished to Buyer, and future statements that will be furnished to Buyer, fairly represent the financial condition of Seller
at such dates, and Seller will notify Buyer immediately if there are material adverse changes, financial or otherwise, in the
condition or operation of Seller or any change in the ownership of Seller. Buyer may request statements at any time during the
performance of this Agreement and the Seller shall provide them to Buyer within five business days. Furthermore, Seller represents
that all documents, forms and recorded interviews provided to or with Buyer are true, accurate and complete in all respects, and
accurately reflect Seller’s financial condition and results of operations. Seller further agrees to authorize the release
of any past or future tax returns to Seller. 

   

 13.4.       
Governmental Approvals. Seller is in compliance and shall comply with all laws and has valid permits, authorizations
and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged and/or will
engage in hereafter. 

   

 13.5.       
Authority to Enter Into This Agreement. Seller and the person(s) signing this Agreement on behalf of Seller, have full
power and authority to incur and perform the obligations under this Agreement, all of which have been duly authorized. 

   

 13.6.       
Change of Name or Location or Sale or Closing of Business. Seller will not conduct Seller’s businesses under
any name other than as disclosed to Buyer or change any of its places of business without prior written consent of Buyer. Seller
will not sell, dispose, transfer or otherwise convey all or substantially all of its business or assets without (i) the express
prior written consent of Buyer, and (ii) the written agreement of any purchaser or transferee assuming all of Seller’s obligations
under this Agreement pursuant to documentation satisfactory to Buyer. Except as disclosed to Buyer in writing, Seller has no current
plans to close its business either temporarily, whether for renovations, repairs or any other purpose, or permanently. Seller
agrees that until Buyer has received all of the Purchased Amount Seller will not voluntarily close its business on a temporarily
basis for renovations, repairs, or any other purposes. This provision, however, does not prohibit Seller from closing its business
temporarily if such closing is required to conduct renovations or repairs that are required by local ordinance or other legal
order, such as from a health or fire inspector, or if otherwise forced to do so by circumstances outside of the control of Seller.
Prior to any such closure, Seller will provide Buyer ten business days notice to the extent practicable. 

   

 13.7.       
No Pending or Contemplated Bankruptcy. As of the date Seller executes this Agreement, Seller is not insolvent and does
not contemplate and has not filed any petition for bankruptcy protection under Title 11 of the United States Code and there has
been no involuntary petition brought or pending against Seller. Seller represents that it has not consulted with a bankruptcy
attorney within six months prior to the date of this Agreement. Seller further warrants that it does not anticipate filing a bankruptcy
petition and it does not anticipate that an involuntary petition will be filed against it. 

   

 13.8.       
Seller to Maintain Insurance. Seller will possess and maintain insurance in such amounts and against such risks as
are necessary to protect its business and will provide proof of such insurance to Buyer upon demand. 

   

 13.9.       
Seller to Pay Taxes Promptly. Seller will promptly pay all necessary taxes, including but not limited to employment
and sales and use taxes. 

   

 13.10.    
No Violation of Prior Agreements. Seller’s execution and performance of this Agreement will not conflict with
any other agreement, obligation, promise, court order, administrative order or decree, law or regulation to which Seller is subject,
including any agreement the prohibits the sale or pledge of Seller’s future receipts. 

   

 13.11.    
No Diversion of Receipts. Seller will not permit any event to occur that could cause a diversion of any of Seller’s
Future Receipts from the Account to any other entity. 

   

 13.12.    
Seller’s Knowledge and Representation. Seller represents warrants and agrees that it is a sophisticated business
entity familiar with the kind of transaction covered by the Agreement; it was represented by counsel or had full opportunity to
consult with counsel. 

   

    	Initials:	 	 	4	TVT Capital, LLC
	 	 	 	 	 

     

    

   

		 14. 	 Rights of Buyer: 

   

 14.1. 
Financing Statements Financing Statements and Security Interest. Seller grants Buyer a security interest in all of
Seller’s present and future accounts, chattel paper, deposit accounts, personal property, assets and fixtures, general intangibles,
instruments, equipment, inventory wherever located, and proceeds now or hereafter owned or acquired by Seller. Seller authorizes
Buyer to file one or more UCC-1 forms consistent with the Uniform Commercial Code (“UCC”) in order to give notice
of this security interest and that the Purchased Amount of Future Receipts is the sole property of Buyer. The UCC filing may state
that such sale is intended to be a sale and not an assignment for security and may state that the Seller is prohibited from obtaining
any financing that impairs the value of the Future Receipts or Buyer’s right to collect same. Seller authorizes Buyer to
debit the Account for all costs incurred by Buyer associated with the filing, amendment or termination of any UCC filings. 

   

 14.2.  
Right of Access. In order to ensure that Seller is complying with the terms of this Agreement, Buyer shall have the
right to (i) enter, without notice, the premises of Seller’s business for the purpose of inspecting and checking Seller’s
transaction processing terminals to ensure the terminals are properly programmed to submit and or batch Seller’s daily receipts
to the Processor and to ensure that Seller has not violated any other provision of this Agreement, and (ii) Seller shall provide
access to its employees and records and all other items as requested by Buyer, and (iii) have Seller provide information about
its business operations, banking relationships, vendors, landlord and other information to allow Buyer to interview any relevant
parties. 

   

 14.3.  
Phone Recordings and Contact. Seller agrees that any call between Buyer and Seller, and their agents and employees
may be recorded or monitored. Further, Seller agrees that (i) it has an established business relationship with Buyer, its employees
and agents and that Seller may be contacted from time-to-time regarding this or other business transactions; (ii) that such communications
and contacts are not unsolicited or inconvenient; and (iii) that any such contact may be made at any phone number, emails address,
or facsimile number given to Buyer by the Seller, its agents or employees, including cellular telephones. 

   

		 15. 	 Events of Default. The occurrence
                                         of any of the following events shall constitute an “Event of Default”: (a)
                                         Seller interferes with Buyer’s right to collect the Daily Amount; (b) Seller violates
                                         any term or covenant in this Agreement; (c) Seller uses multiple depository accounts
                                         without the prior written consent of Buyer; (d) Seller changes its depositing account
                                         or its payment card processor without the prior written consent of Buyer; (e) Seller
                                         defaults under any of the terms, covenants and conditions of any other agreement with
                                         Buyer (f) Seller fails to provide timely notice to Buyer such that in any given calendar
                                         month there are four or more ACH transactions attempted by Buyer are rejected by Seller’s
                                         bank. 

   

		 16. 	 Remedies. If any Event of
                                         Default occurs, Buyer may proceed to protect and enforce its rights including, but not
                                         limited to, the following: 

   

 16.1.    The
Specified Percentage shall equal 100%. The full uncollected Purchased Amount plus all fees and charges (including legal fees)
due under this Agreement will become due and payable in full immediately. 

   

 16.2.    Buyer
may enforce the provisions of the Personal Guaranty of Performance against each Owner. 

   

 16.3.  
Buyer may proceed to protect and enforce its rights and remedies by arbitration or lawsuit. In any such arbitration
or lawsuit, under which Buyer shall recover Judgment against Seller, Seller shall be liable for all of Buyer’s costs of
the lawsuit, including but not limited to all reasonable attorneys’ fees and court costs. However, the rights of Buyer under
this provision shall be limited as provided in the arbitration provision set forth below. 

   

 16.4.  
This Agreement shall be deemed Seller’s Assignment of Seller’s Lease of Seller’s business premises
to Buyer. Upon an Event of Default, Buyer may exercise its rights under this Assignment of Lease without prior notice to Seller. 

   

 16.5.  
Buyer may debit Seller’s depository accounts wherever situated by means of ACH debit or facsimile signature on
a computer-generated check drawn on Seller’s bank account or otherwise for all sums due to Buyer. 

   

    	Initials:	 	 	5	TVT Capital, LLC
	 	 	 	 	 

     

    

   

 16.6.  
Seller shall pay to Buyer all reasonable costs associated with the Event of Default and the enforcement of Buyer’s
remedies, including but not limited to court costs and attorneys’ fees. 

   

 16.7.
Buyer may exercise and enforce its rights as a secured party under the UCC. 

   

 16.8.  
All rights, powers and remedies of Buyer in connection with this Agreement may be exercised at any time by Buyer after
the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers
or remedies provided by law or equity. 

   

		 17. 	 Modifications; Agreements.
                                         No modification, amendment, waiver or consent of any provision of this Agreement shall
                                         be effective unless the same shall be in writing and signed by Buyer. 

   

		 18. 	 Assignment. Buyer may assign,
                                         transfer or sell its rights to receive the Purchased Amount or delegate its duties hereunder,
                                         either in whole or in part, with or without prior written notice to Seller. 

   

		 19. 	 Notices. 

   

 19.1. 
Notices from Buyer to Seller. Buyer may send any notices, disclosures, terms and conditions, other documents, and any
future changes to Seller by regular mail or by e-mail, at Buyer’s option and Seller consents to such electronic delivery.
Notices sent by e-mail are effective when sent. Notices sent by regular mail become effective upon mailing to Seller’s address
set forth in this Agreement. 

   

 19.2.  
Notices from Seller to Buyer. Seller may send any notices to Buyer by e-mail only upon the prior written consent of
Buyer, which consent may be withheld or revoked at any time in Buyer’s sole discretion. Otherwise, any notices or other
communications from Seller to Buyer must be delivered by certified mail, return receipt requested, to Buyer’s address set
forth in this Agreement. Notices sent to Buyer shall become effective only upon receipt by Buyer. 

   

		 20. 	 Binding Effect; Governing Law,
                                         Venue and Jurisdiction. This Agreement shall be binding upon and inure to the benefit
                                         of Seller, Buyer and their respective successors and assigns, except that Seller shall
                                         not have the right to assign its rights hereunder or any interest herein without the
                                         prior written consent of Buyer which consent may be withheld in Buyer’s sole discretion.
                                         This Agreement shall be governed by and construed in accordance with the laws of the
                                         state of New York, without regards to any applicable principals of conflicts of law.
                                         Any suit, action or proceeding arising hereunder, or the interpretation, performance
                                         or breach of this Agreement, shall, if Buyer so elects, be instituted in any court sitting
                                         in New York, (the “Acceptable Forums”). Seller agrees that the Acceptable
                                         Forums are convenient to it, and submits to the jurisdiction of the Acceptable Forums
                                         and waives any and all objections to jurisdiction or venue. Should such proceeding be
                                         initiated in any other forum, Seller waives any right to oppose any motion or application
                                         made by Buyer to transfer such proceeding to an Acceptable Forum. 

   

		 21. 	 Survival of Representation, etc.
                                         All representations, warranties and covenants herein shall survive the execution and
                                         delivery of this Agreement and shall continue in full force until all obligations under
                                         this Agreement shall have been satisfied in full. 

   

		 22. 	 Interpretation. All Parties
                                         hereto have reviewed this Agreement with an attorney of their own choosing and have relied
                                         only on their own attorney’s guidance and advice. No construction determinations
                                         shall be made against either Party hereto as drafter. 

   

		 23. 	 Entire Agreement and Severability.
                                         This Agreement embodies the entire agreement between Seller and Buyer and supersedes
                                         all prior agreements and understandings relating to the subject matter hereof. In case
                                         any of the provisions in this Agreement is found to be invalid, illegal or unenforceable
                                         in any respect, the validity, legality and enforceability of any other provision contained
                                         herein shall not in any way be affected or impaired. 

   

		 24. 	 Facsimile Acceptance. Facsimile
                                         signatures hereon, or other electronic means reflecting the party’s signature hereto,
                                         shall be deemed acceptable for all purposes. 

   

		 25. 	 Confidentiality: The terms
                                         and conditions of this Agreement are proprietary and confidential unless required by
                                         law. Seller shall not disclose this information to anyone other than its attorney, accountant
                                         or similar service provider and then only to the extent such person uses the information
                                         solely for purpose of advising Seller and first agrees in writing to be bound by the
                                         terms of this Section. A breach entitles Buyer to damages and legal fees as well as temporary
                                         restraining order and preliminary injunction without bond. 

   

    	Initials:	 	 	6	TVT Capital, LLC
	 	 	 	 	 

     

    

   

		 26. 	 Monitoring, Recording, and Solicitations. 

   

 26.1.  
Authorization to Contact Seller by Phone. Seller authorizes Buyer, its affiliates, agents and independent contractors
to contact Seller at any telephone number Seller provides to Buyer or from which Seller places a call to Buyer, or any telephone
number where Buyer believes it may reach Seller, using any means of communication, including but not limited to calls or text
messages to mobile, cellular, wireless or similar devices or calls or text messages using an automated telephone dialing system
and/or artificial voices or prerecorded messages, even if Seller incurs charges for receiving such communications. 

   

 26.2.  
Authorization to Contact Seller by Other Means. Seller also agree that Buyer, its affiliates, agents and independent
contractors, may use any other medium not prohibited by law including, but not limited to, mail, e-mail and facsimile, to contact
Seller. Seller expressly consents to conduct business by electronic means. 

   

		 27. 	 JURY WAIVER. THE PARTIES
                                         WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON
                                         ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH
                                         THIS AGREEMENT IS A PART OR ITS ENFORCEMENT, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY
                                         LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. THE PARTIES ACKNOWLEDGE
                                         THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS,
                                         AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR
                                         ATTORNEYS. 

   

		 28. 	 CLASS ACTION WAIVER. THE
                                         PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE
                                         OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED
                                         BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. TO THE EXTENT EITHER
                                         PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION
                                         AGAINST THE OTHER, THE PARTIES AGREE THAT: 

 (I) THE PREVAILING PARTY SHALL
NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING
ANY OTHER PROVISION IN THIS AGREEMENT); AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT
A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION. 

   

		 29. 	 ARBITRATION. IF BUYER,
                                         SELLER OR ANY GUARANTOR REQUESTS, THE OTHER PARTIES AGREE TO ARBITRATE ALL DISPUTES AND
                                         CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT. IF BUYER, SELLER OR ANY GUARANTOR
                                         SEEKS TO HAVE A DISPUTE SETTLED BY ARBITRATION, THAT PARTY MUST FIRST SEND TO ALL OTHER
                                         PARTIES, BY CERTIFIED MAIL, A WRITTEN NOTICE OF INTENT TO ARBITRATE. IF BUYER, SELLER
                                         OR ANY GUARANTOR DO NOT REACH AN AGREEMENT TO RESOLVE THE CLAIM WITHIN 30 DAYS AFTER
                                         THE NOTICE IS RECEIVED, BUYER, SELLER OR ANY GUARANTOR MAY COMMENCE AN ARBITRATION PROCEEDING
                                         WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION
                                         FORUM (“NAF”). BUYER WILL PROMPTLY REIMBURSE SELLER OR THE GUARANTOR ANY
                                         ARBITRATION FILING FEE, HOWEVER, IN THE EVENT THAT BOTH SELLER AND THE GUARANTOR MUST
                                         PAY FILING FEES, BUYER WILL ONLY REIMBURSE SELLER’S ARBITRATION FILING FEE AND,
                                         EXCEPT AS PROVIDED IN THE NEXT SENTENCE, BUYER WILL PAY ALL ADMINISTRATION AND ARBITRATOR
                                         FEES. IF THE ARBITRATOR FINDS THAT EITHER THE SUBSTANCE OF THE CLAIM RAISED BY SELLER
                                         OR THE GUARANTOR OR THE RELIEF SOUGHT BY SELLER OR THE GUARANTOR IS IMPROPER OR NOT WARRANTED,
                                         AS MEASURED BY THE STANDARDS SET FORTH IN FEDERAL RULE OF PROCEDURE 11(B), THEN BUYER
                                         WILL PAY THESE FEES ONLY IF REQUIRED BY THE AAA OR NAF RULES. SELLER AND THE GUARANTOR
                                         AGREE THAT, BY ENTERING INTO THIS AGREEMENT, THEY ARE WAIVING THE RIGHT TO TRIAL BY JURY.
                                         BUYER, SELLER OR ANY GUARANTOR MAY BRING CLAIMS AGAINST ANY OTHER PARTY ONLY IN THEIR
                                         INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR
                                         REPRESENTATIVE PROCEEDING. FURTHER, BUYER, SELLER AND ANY GUARANTOR AGREE THAT THE ARBITRATOR
                                         MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S CLAIMS, AND MAY NOT
                                         OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING, AND THAT IF
                                         THIS SPECIFIC PROVISION IS FOUND UNENFORCEABLE, THEN THE ENTIRETY OF THIS ARBITRATION
                                         CLAUSE SHALL BE NULL AND VOID. 

   

    	Initials:	 	 	7	TVT Capital, LLC
	 	 	 	 	 

     

    
   

	 30. 	 RIGHT TO OPT OUT OF ARBITRATION. SELLER AND GUARANTOR(S)
                                   MAY OPT OUT OF THIS CLAUSE. TO OPT OUT OF THIS ARBITRATION CLAUSE, SELLER AND EACH GUARANTOR
                                   MUST SEND BUYER A NOTICE THAT THE SELLER AND EACH GUARANTOR DOES NOT WANT THIS CLAUSE TO APPLY
                                   TO THIS AGREEMENT. FOR ANY OPT OUT TO BE EFFECTIVE, SELLER AND EACH GUARANTOR MUST SEND AN
                                   OPT OUT NOTICE TO THE FOLLOWING ADDRESS BY REGISTERED MAIL, WITHIN 14 DAYS AFTER THE DATE OF
                                   THIS AGREEMENT: BUYER – ARBITRATION OPT OUT, TVT CAPITAL, LLC, 30 WALL STREET, SUITE
                                   801, NEW YORK, NY 10005, ATTENTION: LEGAL DEPARTMENT. 

   

	 31. 	 SERVICE OF PROCESS. IN ADDITION TO THE
                                         METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW & RULES (“CPLR”),
                                         SELLER HEREBY CONSENTS TO SERVICE OF PROCESS UPON IT BY REGISTERED OR CERTIFIED MAIL,
                                         RETURN RECEIPT REQUESTED, SERVICE HEREUNDER SHALL BE COMPLETE UPON SELLER’S ACTUAL
                                         RECEIPT OF PROCESS OR UPON BUYER’S RECEIPT OF THE RETURN THEREOF BY THE UNITED
                                         STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. SELLER MUST PROMPTLY NOTIFY BUYER,
                                         IN WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS CAN BE MADE.
                                         SERVICE BY BUYER TO THE LAST KNOWN ADDRESS SHALL BE SUFFICIENT. SELLER WILL HAVE (30)
                                         CALENDAR DAYS AFTER SERVICE HEREUNDER IS COMPLETE IN WHICH TO RESPOND. FURTHERMORE, SELLER
                                         EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S)
                                         UNDER AND PURSUANT TO THIS AGREEMENT FOR THE PURCHASE AND SALE OF FUTURE RECEIVABLES
                                         SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT FOR THE PURCHASE
                                         AND SALE OF FUTURE RECEIVABLES. 

   

    	Initials:	 	 	8	TVT Capital, LLC
	 	 	 	 	 

     

    

   

 Appendix
A - List of Fees and Charges 

   

 In
addition to the Purchased Amount of Future Receipts, the Agreement provides that the following fees shall be applied: 

   

		 1. 	 Underwriting
                                         Fee - $ 295.00 

   

		 2. 	 Non-Sufficient
                                         Funds (NSF) Fee - $ 35.00 each (Up to FOUR TIMES ONLY before a default is declared) 

   

		 3. 	 Stopped
                                         Fee - $ 135.00 

   

		 4. 	 ACH
                                         Processing Fee - $ 12.50 

   

		 5. 	 UCC
                                         Filing Fee- $150.00 

   

		 6. 	 Default
                                         Fee - $5,000.00 

   

		 7. 	 Financing
                                         Fee: 6,292.50 

   

     

     

    

   

 TVT
Capital LLC 

   

 Contract
Addendum 

   

 Total
Maximum-Approval Purchase Price: $225,000.00 Purchased Percentage: 15% Total Approved Purchase Amount: $337,275.00 

   

 This Contract Addendum (this
“Addendum”) dated as of January 23rd, 2018 amends that certain agreement (the “Agreement,” #) made by
and among TVT Capital LLC “TVT” (the “Purchaser”) and Milton Ault and Philou Ventures LLC (the “Owners”)
and Digital Power Corporation (the “Seller” which publicly traded under the ticker DPW”) dated January 23rd,
2018. The Owners and the Seller are referred to collectively as the Merchant (the “Merchant”). In connection with
the Agreement and this Addendum, the Purchaser agrees to purchase up to a certain maximum amount of future receivables equal to
$337,275.00 (the “Purchased Amount”) at a purchase price of $225,000.00
(the “Purchase Price”). This Addendum shall modify the Agreement pursuant to the terms of this Addendum. All other
provisions of the Agreement shall remain in full force and effect. For good and valuable mutual consideration, the receipt of
which is hereby acknowledged, the parties hereby agree as follows: 

   

		 ● 	 The Merchant represents
                                         and warrants that DPW will remit full payment to TVT 9 weeks from deposit of TVT funds
                                         in DPW account less $1,285.00 daily payments during the 9 week period of time. 

		 ● 	 Per this Agreement if
                                         merchant remits full payment amount to the Purchaser within 3 business days following
                                         the Deadline, the Purchased Amount shall be discounted to a total amount equal to $200,925.00. 

		 ● 	 To
                                         the extent that the Merchant does not remit the Discounted Purchased Amount by three
                                         business days following the Deadline, the Purchased Amount shall increase to the full
                                         Purchased Amount ($337,275.00) as per the Agreement. As per normal guidelines and the
                                         nature of the original contracts the daily payment shall be turned on and will reflect
                                         a payment of $2,677.00 which will be paid every day from Monday through Friday for each
                                         week until the entirety of the Purchased Amount is paid. 

		 ● 	 Each of the Owners and
                                         the Merchant agrees that, by signing this Addendum, Milton Ault, the Executive Chairman
                                         of the Seller, agrees to be bound by all provisions of the Agreement and all other Addendum
                                         entered into in connection with the Agreement. Additionally, by signing this Addendum
                                         below, Mr. Ault agrees to be bound by all provisions and terms of this Agreement and
                                         any other Addendum entered into in connection therewith. 

		 ● 	 The undersigned agrees
                                         to execute warrants to purchase 87,500 shares of common stock of DPW (the “Warrants”)
                                         at an exercise price of $2.50 per share of DPW stock to the Purchaser in connection with
                                         and as consideration for entering into the Agreement. The Purchaser may allocate the
                                         Warrants to persons other than the Purchaser in the Purchaser’s sole discretion. 

   

 In witness whereof, the parties
have agreed to this Addendum. 

   

    Page 1 of 2

     

    

   

	 TVT Capital, LLC 	   
	   	   	   
	 By: 	   	   
	 Name: 	   
	 Title: 	   
	   	   	   
	 Digital Power Corporation 	   
	   	   	   
	 By: 		   
	 Name:  	   
	 Title:  	   

   

    Page 2 of 2Exhibit 10.24 

   

 Page: 1
Deal Application ID:  

   

  

   

 65
W 36 St, Suite 12 New York, NY 10018 

   

 Powered
By 

Libertas Funding LLC 

 382
Greenwich Avenue Suite 2 Second Floor Greenwich CT 

   

 FUTURE
RECEIVABLES SALE AGREEMENT 

   

 This
FUTURE RECEIVABLES SALE AGREEMENT (“Agreement”) dated 1/23/2018, is made by and between Libertas Funding LLC, a Connecticut
limited liability company (“Purchaser”), Merchant (Merchant Information below), and the Guarantor(s)/Owner(s), as
identified in the Owner/Guarantor Information below. 

   

 Merchant
Information 

   

	 Merchant Legal Name: DIGITAL
    POWER CORPORATION 	 DBA Name: 
	 Entity Type: CORPORATION 	 FEIN:  
	 State Of Incorp: CA 	 Bank Name: 
	 Address: 48430 Lakeview Blvd , FREMONT, CA,
    94538 	 Phone:  

   

 OWNER/GUARANTOR
INFORMATION (referred to individually or collectively as the (“Owner”) 

   

	 Name of Owner Guarantor: Milton
    Ault 	 Cell Phone:  	 Social Security # :  
	 Home Address :  	 City/State :  	 Zip Code :  
	 Ownership % :  	 Email :  	   

   

	 Name of Owner Guarantor(2): Kristine
    Ault 	 Cell Phone:  	 Social Security # : 
	 Home Address :  	 City/State :  	 Zip Code : 
	 Ownership % : 	 Email :  	   

   

	 Amount
    Sold 	 $148,500.00 	 The
    dollar value of the Future Receivables 
	 Discount
    Factor 	 1.485 	 The
    risk adjustment to the Amount Sold that determines the Futures Receivables Discount 
	 Future
    Receivable Discount 	 $48,500.00 	 The
    difference in value between the Purchase Price and the Amount Sold 
	 Purchase
    Price 	 $100,000.00 	 The
    dollar amount Purchaser is paying for the Amount Sold. 
	 Due
    Diligence Price Adjustment 3.0% 	 $3,000.00 	 Additional
    discount given to Purchaser for due diligence. 
	 Direct
    Payments to Third Parties/Renewals 	 $0.00 	 Paid
    to Other Funders. 
	 Total
    Amount Sent to Merchant 	 $97,000.00 	 Net
    of Discount and Direct Payments to 3rd Parties: 
	 Specified
    Percentage 	 20% 	 Percentage
    of Future Receivables to be remitted to purchaser on a daily basis 
	 Estimated
    Average Monthly Future Receivables 	 $1,754,280.04 	 Future
    Receivables Expected Per Month based on detailed analysis of Merchant’s business and attestation from Merchant 
	 Expected
    daily Remittance 	 $1,178.57 	 Estimated
    Average Monthly Receivables Multiplied by Specified Percentage Divided by Number Working Days in Month (21) 
	 Early
    Remittance Discount 	 1.180
    @ 2 months 	 Discount
    Paid to Merchant for remitting Future Receivables Early 
	 Expected
    Remittance Term 	 6 	 Expected
    term of this agreement based on the specified percentage 
	 Remittance
    Choice 	 ACH 	 Remittance
    can occur via ACH, Credit Card Split or Lockbox 

 Note:
The bold type terms in the tables above and below shall constitute defined terms with respect to this Agreement. PLEASE NOTE THAT
THE PURCHASER WILL NOT REMIT MORE THAN THE EXPECTED DAILY REMITTANCE PER DAY WITHOUT THE CONSENT OF THE MERCHANT. 

   

 As
explained in more detail in the Terms and Conditions stated hereinafter, Merchant will be in default of this Agreement if Merchant
does or causes to be done any of the following during the term of this Agreement (see below, including but not limited to paragraph
8 and 10 for a list of the all of the events of default): 

   

		 ● 	 Change
                                         or close Merchant’s bank account 

		 ● 	 Change
                                         (or add a) credit card processors 

		 ● 	 Block
                                         Purchaser ACH access to Merchant’s bank account 

		 ● 	 Sell
                                         Merchant’s business prior to full remittance of Future Receivables above 

		 ● 	 Deliberately
                                         disconnecting Purchaser’s bank monitoring software 

		 ● 	 Retain
                                         a third-party debt consolidator to negotiate a change to the terms and conditions of
                                         this Agreement 

		 ● 	 Sell
                                         merchants future receivables to another person or entity 

   

     

     

    

   

 Page: 2
Deal Application ID:  

    

 PURCHASE
AMOUNT DISCOUNTS AND REFUNDS. The following terms are additional costs, fees or refunds that may be incurred in connection
with this Agreement upon certain circumstances, as set forth below: 

   

		 a. 	 Returned
                                         Item Refund - $35.00 Applicable in a circumstance in which Merchant has not
                                         agreed with Purchaser to a change in the Remittance Amount and does not have sufficient
                                         collected receivable funds in its Account to remit to Purchaser the agreed Remittance
                                         Amount. Upon the fourth Returned Item Refund imposed under this section, Merchant shall
                                         be deemed in Breach under the Agreement. 

		 b. 	 Blocked
                                         Account Refund - $100.00 Applicable in a circumstance in which Merchant BLOCKS
                                         its Account from Purchasers debit ACH or changes its designated Account cutting off Purchaser
                                         from obtaining delivery of the agreed Remittance Amount. This action places Merchant
                                         in Breach under the Agreement. 

		 c. 	 Breach
                                         Refund : $2,500 In the event of a breach of this Agreement, this amount will
                                         be added to the total amount to be remitted by the Merchant, effectively providing a
                                         breach-based discount to the Purchaser. 

   

 TERMS
AND CONDITIONS IN ADDITION TO THE ABOVE TERMS: 

   

		 1. 	 Sale.
                                         In consideration of the payment of the Purchase Price specified above, Purchaser
                                         purchases from Merchant, and Merchant sells to Purchaser, the Specified Percentage of
                                         Merchant’s future accounts, contract rights and any other obligations arising from
                                         or relating to the payment of monies from Merchant’s customers and/or other third-party
                                         payers including payments made by cash, check, electronic transfer or other form of monetary
                                         payment to Merchant in the ordinary course of the Merchant’s business, or otherwise,
                                         for the payment of Merchant’s sale of goods or services (“ACH Receivables”).
                                         Such payment of monies shall include the use by Merchant’s customers of any Payment
                                         Device (as defined herein) to purchase Merchant’s products and/or services that
                                         are processed by Merchants’ card processor anytime during which the Amount Sold
                                         is outstanding (“Credit Card Receivables”, ACH Receivables and Credit Card
                                         Receivables are hereafter collectively or independently referred to as “Future
                                         Receivables”). Payment Device includes credit cards, charge cards, debit cards,
                                         prepaid cards, benefit cards, or any other type of payment card as well as any virtual
                                         payment card or any electronic payment device. Merchant agrees to remit to Purchaser
                                         in accordance with the terms of this Agreement the Daily Percentage of the Future Receivables
                                         specified above until the Amount Sold has been forwarded to Purchaser. Purchaser purchases
                                         the Future Receivables free and clear of all claims, liens or encumbrances of any kind
                                         whatsoever. Merchant agrees that this Agreement applies to Merchant’s entire right,
                                         title and interest in the Future Receivables up to the Amount Sold. The terms and conditions
                                         of this Agreement shall remain in full force and effect until the Amount Sold has been
                                         delivered to Purchaser subject to the terms of this Agreement. Merchant and Purchaser
                                         agree that this sale and purchase is final and Merchant has no right to repurchase or
                                         resell the Future Receivables or any portion thereof. Merchant, any individual signing
                                         this agreement and Purchaser (each individually referred to herein as “Party”
                                         and collectively referred to herein as “Parties”) agree that the Purchase
                                         Price paid to Merchant is the price paid to purchase Merchant’s Future Receivables
                                         and that the transaction contemplated by this Agreement is a purchase and sale of the
                                         Future Receivables. The Parties hereby agree that the transaction contemplated by this
                                         Agreement is not a loan, a forbearance of money lent or any similar loan or lending transaction.
                                         Merchant understands, agrees and represents that this transaction is made for business
                                         or commercial purposes only. 

		 2. 	 Remittance
                                         of Amount Sold. The Merchant hereby agrees to deliver the Amount Sold to the Purchaser
                                         as (i) the Expected Daily Remittance (based on a Specified Percentage) of Future Receivables
                                         by debiting, via ACH transaction, Merchant’s bank account (a “Direct Debit”).
                                         Purchaser, in its sole discretion, shall choose whether to receive the Amount Sold from
                                         the Merchant either by Direct Split or Direct Debit, (ii) as a Specified Percentage of
                                         daily amount of Credit Card Receivables directly from Merchant’s card processor
                                         (“Credit Card Split”) or (iii) daily amount of Future Receivables directly
                                         through a Lockbox arrangement “Lockbox”); or Purchaser may, in its sole
                                         discretion, upon written notice to Merchant, change the method by which it will accept
                                         the remittance of the Amount Sold, and provide the Merchant with updated remittance instructions.
                                         The following details each remittance type: 

   

		 a. 	 If
                                         Purchaser chooses to receive the remittance of the Amount Sold via a Direct Debit as
                                         the Expected Daily Remittance (based on a Specified Percentage) then Merchant agrees
                                         as follows: 

		 1. 	 Bank
                                         Account. Merchant shall deposit all of Merchant’s Future Receivables into a
                                         bank account approved by Purchaser (the “Account”). 

		 2. 	 Automated
                                         Clearinghouse for Expected Daily Remittance. The Merchant hereby authorizes Purchaser
                                         and its agents to initiate Automated Clearinghouse (“ACH”) payments equal
                                         to the Expected Daily Remittance of all deposits made into the Account each business
                                         day until the Purchaser has received Future Receivables equal to the Amount Sold. 

		 3. 	 Merchant
                                         to Maintain the Account. Merchant understands that it is responsible for ensuring
                                         that the Expected Daily Amount to be debited by Purchaser remains in the Account and
                                         will be held responsible for any fees incurred by Purchaser resulting from a rejected
                                         ACH attempt or an Event of Default (as defined herein). 

		 4. 	 Overdraft
                                         or Rejected Transactions the Responsibility of Merchant. The Purchaser is not responsible
                                         for any overdrafts or rejected transactions that may result from Purchaser ACH debiting
                                         the Expected Daily Remittance Amount. 

   

     

     

    

   

 Page: 3
Deal Application ID:  

    

		 5. 	 Agreed
                                         Changes to the Expected Daily Remittance Amount. Unless mutually agreed, in writing,
                                         and only based on a documented change in the Merchant’s Future Receivables, Purchaser
                                         will continue to pull the Expected Daily Remittance amount. However, if Merchant
                                         provides written evidence, in the form of a complete set of invoices (or its equivalent),
                                         or natural events that have changed or impaired the Merchant’s ability to generate
                                         Future Receivables, and only with ongoing electronic surveillance, the Purchaser will
                                         agree to adjust the amount of the Expected Daily Remittance. It is the Merchant’s
                                         responsibility to communicate this at least one week in advance of a requested change
                                         and to cooperate with the Purchaser in good faith. 

		 6. 	 ACH
                                         authorization. The Merchant shall provide all necessary ACH authorizations to the
                                         Purchaser as set forth in Appendix A to this Agreement. 

   

		 b. 	 If
                                         Purchaser chooses to accept the remittance of the Specified Percentage of the Amount
                                         Sold through Credit Card Split, Merchant will enter into an agreement with a card processor
                                         (“Processor”) acceptable to Purchaser, and authorize Processor to pay the
                                         Specified Percentage directly to Purchaser until Purchaser receives the total Amount
                                         Sold. Merchant acknowledges that Processor will be acting on behalf of Purchaser to collect
                                         the Specified Percentage. Merchant irrevocably grants Processor the right to hold the
                                         Specified Percentage and to pay Purchaser directly (at, before or after the time Processor
                                         credits or remits to Merchant the balance of the Amount Sold not sold by Merchant to
                                         Purchaser) until Purchaser receives the entire Amount Sold. Processor may provide Purchaser
                                         with all information Purchaser deems pertinent. Merchant agrees to hold Purchaser harmless
                                         for the Processor’s actions or omissions. 

		 c. 	 If
                                         Purchaser chooses to accept the remittance through a Lockbox, Purchaser is authorized
                                         by Merchant to receive remittance to a specified bank account (“Lockbox”)
                                         directly from the Merchant’s Processor as well as Merchant’s invoiced customers
                                         (the “Merchant’s Counterparties”). This Authorization shall continue
                                         until the Purchaser has received an amount equal to the Purchased Amount, plus any additional
                                         remittance required. Merchant further authorizes the Merchant’s Counterparties
                                         to provide to the Purchaser and its agents all information necessary to Purchaser to
                                         determine the amount to be paid to the Merchant and initiate such ACH payments to the
                                         Specified Account. Upon receipt of each ACH transfer into the Lockbox, Purchase will
                                         retain the Specified Percentage as well as the required minimum balance for the Lockbox
                                         (the “Required Minimum Balance”). Purchaser will ACH transfer the difference
                                         between the received funds and the retained funds plus the minimum balance into the Account. 

    

		 3. 	 Read
                                         Only Electronic Bank Software. Merchant will provide Purchaser with ongoing read
                                         only electronic surveillance on a daily basis for the entire period during which this
                                         Agreement is in effect. Any change to Merchant’s bank account, access code, or
                                         permissions from its bank should be remedied as soon as possible. Merchant agrees to
                                         provide Purchaser all required access codes and allow Purchaser to electronically monitor
                                         the Account (e.g., using the anonymous read-only Yodlee link (or Decision Logic) provided
                                         by the Purchaser to the Merchant). This access both ensures that the Merchant is depositing
                                         its Future Receivables into the Account and provides written evidence to enable the Purchaser
                                         to be able to make adjustments to the Expected Remittance Amount, if necessary, upon
                                         mutual agreement with the Merchant. If the electronic access to Merchant’s Account
                                         is temporarily disabled for any reason, Merchant will, as soon as possible, work with
                                         the Purchaser to re-establish the link between the Account and the Purchaser. Any change
                                         to Merchants’ Account, access codes or permission from the bank to access the Account
                                         or receive ACH transactions from the Account must be remedied immediately. The failure
                                         by the Merchant to comply with this Section 3 shall constitute a breach/Event of Default
                                         of this Agreement. 

		 4. 	 Timing,
                                         Method of Payment, Processing Trial. Merchant and Purchaser agree that Purchaser
                                         shall pay the Purchase Price or any portion thereof to Merchant only at a time, and through
                                         a method, acceptable to Purchaser and at Purchaser’s sole discretion. Merchant
                                         and Purchaser also agree that Purchaser, in its sole discretion, may refuse to pay the
                                         Purchase Price or any portion thereof to Merchant and cancel this Agreement at any time
                                         prior to the Purchase Price being paid. Prior to paying the Purchase Price, to the extent
                                         that the Purchaser chooses to receive its Amount Sold pursuant to a Direct Split, as
                                         described above, Purchaser may conduct a site inspection and shall conduct a processing
                                         trial (the “Processing Trial”) to determine whether the Daily Percentage
                                         will be correctly processed and/or reported by Merchant’s card processor or bank
                                         to Purchaser. In the event Purchaser determines to conduct a Processing Trial, Merchant
                                         acknowledges and agrees that Purchaser will make its final decision, in its sole and
                                         absolute discretion, whether to purchase the Future Receivables after completion of the
                                         Processing Trial. If Purchaser conducts a Processing Trial and determines not to purchase
                                         the Future Receivables, any receivables remitted to Purchaser during the Processing Trial
                                         shall be returned to Merchant. 

		 5. 	 Waiver.
                                         There shall be effected no waiver by failure on the part of Purchaser to exercise,
                                         or delay in exercising, any right under this Agreement, nor shall any single or partial
                                         exercise by Purchaser of any right under this Agreement preclude any other future exercise
                                         of any right. The remedies provided hereunder are cumulative and not exclusive of any
                                         remedies provided by law or equity. 

		 6. 	 Authorization
                                         to File Notice of Sale and Security Interest. Merchant hereby authorizes Purchaser
                                         to file one or more financing statement pursuant to the Uniform Commercial Code (UCC)
                                         to evidence -and perfect the sale of the Future Receivables and any continuation statements
                                         or amendments thereto. The UCC financing statement shall state that the sale of the Future
                                         Receivables is intended to be a sale and not an assignment for security. 

		 7. 	 Power
                                         of Attorney. Merchant irrevocably appoints Purchaser as its agent and attorney-in-fact
                                         with full authority to take any action or execute any instrument or document to settle
                                         all obligations due to Purchaser from any third party, or any breach by Merchant set
                                         forth in Section 10 or any other section of this Agreement or the occurrence of an event
                                         of default as described and defined in this Agreement, including, without limitation
                                         (i) to obtain and adjust insurance; (ii) to collect monies due or to become due under
                                         or in respect of any of the Collateral; to receive, endorse and collect any checks, notes,
                                         drafts, instruments, documents or chattel paper in connection with clause (i) or (ii)
                                         above; (iv) to sign Merchant’s name on any invoice, bill of lading or assignment
                                         directing customers or account debtors to make payment directly to Purchaser; and (v)
                                         to file any claims or take any action or institute any proceeding which Purchaser may
                                         deem necessary for the collection of any of the unpaid Amount Sold, or otherwise to enforce
                                         its rights with respect to the payment of the Amount Sold. 

   

     

     

    

   

 Page:
4 Deal Application ID:  

    

		 8. 	 Refunds
                                         and Purchaser’s Risk. Purchaser does NOT CHARGE ANY ORIGINATION OR BROKER FEES.
                                         If Merchant is charged such a fee, it is not being charged by Purchaser or an agent of
                                         Purchaser. Additionally, because this is not a loan, Purchaser does not charge any interest,
                                         finance charges, points, late fees or similar fees (except as permitted by applicable
                                         law in connection with civil judgments). Purchaser is purchasing the Future Receivables
                                         at a discount. Because the transaction evidenced by this Agreement is not a loan, there
                                         are no specific scheduled payments and no repayment term. If Merchant’s business
                                         slows down and Merchant’s Future Receivables decrease or if Merchant closes its
                                         business or ceases to process Payment Devices and Merchant has not violated any of the
                                         representations, warranties and covenants provided in paragraph 10 below, there shall
                                         be no default or breach of this Agreement. Purchaser is purchasing the Future Receivables
                                         and Purchaser assumes the risk that Merchant’s business may fail or be adversely
                                         affected by conditions outside the control of Merchant provided Merchant has not breached
                                         a representation, warranty or covenant set forth in paragraph 10 below. A returned item
                                         refund of $35.00 will be assessed if, for any reason, (a) a check, draft or similar instrument
                                         issued by the Merchant or an individual that signs this Agreement is not honored or cannot
                                         be processed; or (b) an electronic debit is returned unpaid or cannot be processed. Merchant
                                         and any individual that signs this Agreement authorize Purchaser to resubmit returned
                                         payments in its discretion. At Purchaser’s option, Purchaser will assess this fee
                                         the first time a payment is not honored or paid, even if it is later honored or paid
                                         following resubmission. Any check, draft or similar instrument may be collected electronically
                                         if returned for insufficient or uncollected funds. Additionally, a blocked account refund
                                         of $100.00 will be assessed as described above as well as a breach refund of $2,500.00
                                         in the event that the Merchant violates the terms of this agreement, which violation
                                         remains uncured for more than 5 days. These refund will be paid in order to reimburse
                                         the Purchaser for the costs that it incurs in connection with returned items, blocked
                                         accounts and breaches, respectively. 

		 9. 	 Right
                                         to Cancel. Merchant may cancel this transaction at any time prior to midnight of
                                         the fifth business day after Purchaser forwards the Purchase Price to Merchant. In order
                                         to cancel the transaction, Merchant must provide notice to the Purchaser and return the
                                         full Purchase Price to Purchaser within five days of receipt of the Purchase Price. 

		 10. 	 Merchant’s
                                         Representations, Warranties and Covenants. Merchant represents, warrants and covenants
                                         that as of the date and during the term of this Agreement: (i) the Future Receivables
                                         are not subject to any claims, charges, liens, restrictions, encumbrances or security
                                         interests of any nature whatsoever; (ii) Merchant will not sell the Future Receivables
                                         to another person or entity; (iii) Merchant will not conduct business under any name
                                         other than as disclosed herein, shall not change its business location without the prior
                                         written consent of Purchaser, and shall not temporarily close its business for renovations
                                         or other purposes; (iv) Merchant will not change or add credit card processors or change
                                         the Account without the prior written approval of Purchaser; (v) Merchant will not take
                                         any action to intentionally discourage the use of credit cards, debit cards or other
                                         payment cards; (vi) Merchant will not undertake any transaction involving the sale of
                                         Merchant, either by an issuance, sale or transfer of ownership interests in Merchant
                                         that results in a change in ownership or voting control of Merchant, or by a sale or
                                         transfer of substantially all of the assets of Merchant; (vii) Merchant will not voluntarily
                                         permit another person or company, including without limitation a franchisor company (if
                                         Merchant is a franchisee), to assume or take over the operation and/or control of the
                                         Merchant’s business or business locations; (viii) Merchant is not currently contemplating
                                         the filing of a bankruptcy proceeding or closing Merchant’s business and Merchant
                                         has not retained any attorney, other consultant or professional to provide any advice,
                                         assistance or planning with respect to the filing of a bankruptcy; (ix) all information
                                         provided by Merchant to Purchaser in this Agreement, application, interview with Purchaser
                                         or otherwise and all of Merchant’s financial statements and other financial documents
                                         provided to Purchaser are true and correct and accurately reflect Merchant’s financial
                                         condition and results of operations; (x) Merchant will possess and maintain insurance
                                         in such amounts and against such risks as are necessary to protect its business and shall
                                         show proof of such insurance upon demand; (xi) Merchant has all permits, licenses, approvals,
                                         consents and authorizations necessary to conduct its business and will promptly pay all
                                         necessary taxes, including but not limited to employment and sales and use taxes; (xii)
                                         Merchant and the person(s) signing this Agreement on behalf of Merchant have full power
                                         and authority to enter into and perform the obligations under this Agreement; (xiii)
                                         Merchant will provide Purchaser copies of all documents related to Merchant’s card
                                         processing activity or financial and banking affairs within five (5) days of a request
                                         by Purchaser; (xiv) Merchant will permit Purchaser to conduct a site inspection of Merchant’s
                                         business, including an inspection of Merchant’s credit card terminals, at any reasonable
                                         time during the term of this Agreement without notice to Merchant; (xv) Merchant will
                                         not take any action to cause the Future Receivables to be settled or delivered to any
                                         bank account other than the bank account that the Future Receivables are being settled
                                         or delivered to as of the date of this Agreement and in accordance with the terms of
                                         this Agreement; (xvi) Merchant will not enter into any financing agreement wherein and
                                         whereby the repayment terms of the agreement require Merchant to make daily or weekly
                                         payments (NO “STACKING”); (xvii) Merchant will conduct its business consistent
                                         with past practice and shall not take any action that would have an adverse effect on
                                         the use, acceptance, or authorization of any Payment Device for the purchase of Merchants
                                         products or services; (xviii) Merchant has not, will not and is not contemplating retaining/paying
                                         in any way a third-party debt consolidator, nor has the Purchaser consulted with nor
                                         will the Purchaser consult with, a third-party debt consolidator in contemplation of
                                         negotiating a change to the terms and conditions of this Agreement. Merchant understands
                                         clearly that the breach of any of the foregoing shall constitute a breach/event of default
                                         under this Agreement; (xviv) Merchant will not block Purchaser from receiving/requesting
                                         ACH remittances from Merchant’s Account and will act in good faith to enable Purchaser
                                         to access at all times the Account for purposes of electronic surveillance; and (xvv)
                                         has disclosed any condition that has resulting in or would result in a material adverse
                                         change to Merchant’s business and knows of no condition and there is no condition
                                         which is likely to result in a material adverse change to its business. Merchant understands
                                         that the violation of any of these covenants at any time would constitute a breach of
                                         this Agreement. Additionally, if any of the representations above are not true as of
                                         the date hereof, this would also constitute a breach of this Agreement. 

 TO
THE EXTENT THAT INFORMATION PROVIDED BY THE MERCHANT THAT IS FALSE OR MISLEADING, MERCHANT SHALL BE DEEMED TO BE IN BREACH OF
THIS AGREEMENT AND PURCHASER SHALL BE ENTITLED TO ANY REMEDIES UNDER LAW. ANY MISREPRESENTATION MADE BY MERCHANT OR OWNER OR ANY
REPRESENTATIVES OF MERCHANT OR OWNER IN CONNECTION WITH THIS AGREEMENT MAY CONSTITUTE A SEPARATE CAUSE OF ACTION FOR FRAUD OR
INTENTIONAL MISREPRESENTATION. 

   

     

     

    

   

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		 11. 	 Specified
                                         Percentage. Purchaser agrees to accept the remittance of the Specified Percentage
                                         in one of the following ways: (i) directly from Merchant’s card processor; (ii)
                                         by debiting the Merchant’s bank account; or (iii) by debiting a deposit account
                                         established by Merchant that is approved by Purchaser. Purchaser may decide in its sole
                                         discretion which of the three methods it will accept for the remittance of the Specified
                                         Percentage and will notify Merchant prior to delivering the Purchase Price to Merchant.
                                         If Purchaser agrees to accept the remittance of the Specified Percentage directly from
                                         the Merchant’s card processor, Merchant agrees to enter into an agreement with
                                         a card processor acceptable to Purchaser (“Processor”) that authorizes Processor
                                         to pay the Specified Percentage directly to Purchaser rather than to Merchant until the
                                         Amount Sold has been forwarded by Processor to Purchaser. This authorization shall be
                                         irrevocable, absolute and unconditional. Merchant hereby irrevocably grants Processor
                                         the right to hold the Specified Percentage and to pay Purchaser directly (at, before
                                         or after the time Processor credits or remits to Merchant the balance of the Future Receivables
                                         not sold by Merchant to Purchaser) until the entire Amount Sold has been forwarded to
                                         Purchaser. Merchant authorizes Purchaser to act as Merchant’s agent for purposes
                                         of accessing and retrieving transaction history information regarding Merchant from Processor
                                         and any additional card processors Merchant may utilize during the term of this Agreement.
                                         Merchant acknowledges and agrees that Processor may provide Purchaser with Merchant’s
                                         Payment Device processing history, including without limitation Merchant’s chargeback
                                         experience and any communications about Merchant received by Processor from a card processing
                                         system. Merchant acknowledges that Purchaser does not have any power or authority to
                                         control the Processor’s actions with respect to the authorization, clearing, settlement
                                         and other processing of transactions and that Purchaser is not responsible for the Processor’s
                                         actions. Merchant agrees to hold Purchaser harmless for the Processor’s actions
                                         or omissions. If Purchaser agrees to accept the remittance of the Specified Percentage
                                         by debiting the Merchant’s bank account, Merchant irrevocably authorizes Purchaser
                                         or its designated successor or assignee to withdraw the Specified Percentage by initiating
                                         a debit via the Automatic Clearing House (ACH) system to the Merchants’ bank account
                                         (as listed in Merchant’s application) or such other bank account that Merchant
                                         maintains (“Bank Account”). Merchant agrees to complete and execute a written
                                         ACH authorization (the “ACH Authorization”) permitting Purchaser to debit
                                         the Bank Account pursuant to the terms of this Agreement. Any such ACH Authorization
                                         is incorporated into and made a part of this Agreement. In the event Purchaser withdraws
                                         an incorrect amount from Merchant’s Bank Account, Merchant authorizes Purchaser
                                         to credit the Bank Account for the appropriate amount. Merchant and each Guarantor also
                                         authorize Purchaser to act as an agent for purposes of accessing and retrieving account
                                         activity and account balance information from any bank accounts of Merchant or Guarantor(s).
                                         If Purchaser agrees to accept the remittance of the Specified Percentage by debiting
                                         a deposit account established by Merchant that is approved by Purchaser (“Approved
                                         Account”), Merchant agrees to complete all necessary forms to establish the Approved
                                         Account. Merchant acknowledges and agrees that any funds deposited into the Approved
                                         Account by Merchant’s card processor will remain in the Approved Account until
                                         the Specified Percentage is withdrawn by Purchaser and then the remaining funds, minus
                                         any amount required to maintain the minimum balance for the Approved Account, will be
                                         forwarded to Merchant’s Bank Account. If the Approved Account requires a minimum
                                         account balance, Purchaser may, in its sole discretion, fund the required minimum balance
                                         for the Approved Account out of the Purchase Price. 

		 12. 	 Telephone
                                         Monitoring, Recording and Contacts. Purchaser may choose to monitor and/or record
                                         telephone calls with Merchant and its owners, employees or agents. These calls are monitored
                                         and/or recorded solely for evaluation by supervisors, training, monitoring for compliance
                                         purposes, collections, and quality control. By signing this Agreement, Merchant agrees
                                         that any call between Purchaser and Merchant or a representative of Merchant may be monitored
                                         and/or recorded for these purposes. Merchant further agrees that: (i) it has an established
                                         business relationship with Purchaser and may be contacted from time to time regarding
                                         transactions with Purchaser by telephone, text message or email; (ii) such contacts are
                                         not considered unsolicited or inconvenient; and (iii) any such contact may be made using
                                         any wireless, mobile cellular or other number Merchant or its representative gave Purchaser,
                                         using any e-mail address Merchant or its representative gave Purchaser, or using an automated
                                         dialing and announcing or similar device, unless prohibited by law. This authorization
                                         is binding upon Merchant upon signing this Agreement and shall not be deemed withdrawn
                                         or revoked should Purchaser determine not to purchase the Future Receivables from Merchant. 

		 13. 	 Miscellaneous.
                                         This Agreement shall be binding upon Merchant as well as its successors, assigns,
                                         related companies and Affiliated Entity (as defined below) as well as any company or
                                         person (or group of persons working together) that purchases substantially all of the
                                         Merchant’s assets or a majority of its voting interests and/or control over the
                                         Merchant. This Agreement shall inure to the benefit of Purchaser, its successors and
                                         assigns. This Agreement constitutes the entire Agreement between the Parties, and no
                                         representations, agreements, or understandings of any kind, either written or oral, shall
                                         be binding upon the parties unless expressly contained herein. This Agreement is a complete
                                         and exhaustive statement of the terms of the parties’ agreement, which may not
                                         be explained or supplemented by evidence of consistent or inconsistent additional terms
                                         or contradicted by evidence of any prior or contemporaneous agreement. The Parties may
                                         change any of the terms of this Agreement or amend this Agreement but any such changes
                                         or amendments shall not be effective unless they are in writing, agreed to by both Parties,
                                         and signed by Merchant and/or Guarantor(s) as applicable. If any of the provisions of
                                         this Agreement are determined to be invalid, illegal or unenforceable in any respect,
                                         the remaining provisions shall not be affected in any manner. All Parties hereby acknowledge
                                         having the full power and authority to enter into and perform the obligations under this
                                         Agreement. Merchant and Guarantor(s) agree to execute such further and additional documents,
                                         instruments, and writings as may be necessary, proper, required, desirable, or convenient
                                         for the purpose of fully effectuating the terms and provisions of this Agreement. The
                                         information submitted by Merchant as part of its application for this transaction is
                                         hereby incorporated into and made a part of this Agreement. The signatures to this Agreement
                                         may be evidenced by facsimile copies or other electronic means reflecting the Party’s
                                         signature hereto, and any such copy or signature shall be sufficient as if it were an
                                         original signature. In lieu of a signature, Purchaser shall be deemed to have accepted
                                         the terms of this Agreement upon payment of the Purchase Price to Merchant. Paragraph
                                         10 and paragraphs 12 through 18 shall survive any termination, satisfaction or cancellation
                                         of this Agreement. 

    

     

     

    

   

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		 14. 	 Governing
                                         Law This Agreement, all transactions it contemplates, the entire relationship between
                                         the Parties, and all Claims (as defined in paragraph 15 below), whether such Claims are
                                         based in tort, contract or arise under statute or in equity, including all Claims involving
                                         an Affiliated Entity of Purchaser, shall be governed by and enforced in accordance with:
                                         (i) the laws of the State of New York without regard to principles of conflicts of laws
                                         that would require the application of any other law; and (ii) federal law for the limited
                                         purpose of the Arbitration Agreement (paragraph 17 below). Affiliated Entity means and
                                         includes: (i) any entity or person that has owned or controlled Purchaser or any entity
                                         that has been owned or controlled by Purchaser; (ii) any predecessor or successor entities
                                         of Purchaser; (iii) any entity or person who at any time owns or holds an equity or security
                                         interest in the Future Receivables and the interest was granted by Purchaser; and (iv)
                                         all officers, directors, owners and employees of Purchaser, its parent company or any
                                         Affiliated Entity; and (v) any parent companies of any Affiliated Entity and their subsidiaries. 

		 15. 	 Disputes
                                         Any claim, dispute or controversy between any of the Parties or between any of the
                                         Parties and an Affiliated Entity arising from or relating in any way to the relationship
                                         between the Parties, including any relationship with an Affiliated Entity, whether such
                                         claims are based in tort, contract, or arise under statute or in equity (referred to
                                         herein as “Claim” or “Claims”), shall be resolved only as provided
                                         in this Agreement. Claim includes but is not limited to: any disputes regarding or relating
                                         to this Agreement or the application provided in connection with this transaction; any
                                         solicitation or advertising materials; any activities relating to the maintenance or
                                         servicing of the transaction; any disputes arising from any collection activity related
                                         to a breach or alleged breach of this Agreement; any disputes concerning the processing
                                         or collection of Future Receivables; any disputes regarding information obtained by Purchaser
                                         from, or reported by Purchaser to, Merchant, credit bureaus or others; and any disputes
                                         resulting from or relating to, in any way, any previous relationship, agreement or contract
                                         between the Parties or Merchant and an Affiliated Entity including but not limited to
                                         an agreement under which Merchant sold Future Receivables to Purchaser or an Affiliated
                                         Entity. The Parties hereby agree that this provision amends and supersedes any provision
                                         in a previous agreement entered into between the Parties or between Merchant and an Affiliated
                                         Entity regardless of whether the previous agreement has been satisfied, terminated or
                                         is in default. Accordingly, any Claims between the Parties or made against or by an Affiliated
                                         Entity shall no longer be governed by the dispute resolution provisions contained in
                                         a previous agreement but shall be governed by paragraphs 14 through 19 of this Agreement;
                                         provided, however, that any changes this provision makes to previous agreements between
                                         the Parties or made against or by an Affiliated Entity shall not apply in any litigation,
                                         arbitration or other proceeding commenced before the date of this Agreement. 

		 16. 	 Litigation.
                                         If a Claim is filed in court, the Claim must be filed in the State of New York and
                                         the Parties hereby agree that the exclusive venue for all Claims filed in court shall
                                         be in the State of New York. No court action may be brought in any other state or jurisdiction
                                         except as necessary to enforce a valid security interest or enforce a judgment entered
                                         in New York. The Parties hereby waive any claim against or objection to the in personam
                                         jurisdiction and venue in the courts of the State of New York. NO CLAIM FILED IN COURT
                                         WILL BE HEARD BY A JURY AND ANY CLAIM WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ACTIONS
                                         ARE NOT PERMITTED. NO COURT MAY ORDER, PERMIT OR CERTIFY A CLASS ACTION, REPRESENTATIVE
                                         ACTION, PRIVATE ATTORNEY-GENERAL LITIGATION OR CONSOLIDATED ACTION. NO COURT MAY ORDER
                                         OR PERMIT A JOINDER OF PARTIES, UNLESS BOTH MERCHANT AND PURCHASER CONSENT TO SUCH JOINDER
                                         IN WRITING. 

		 17. 	 ARBITRATION
                                         Any Party may elect to resolve any Claim by neutral, binding arbitration. An election
                                         to arbitrate a Claim may be made by any Party instead of filing an action in court or
                                         in response to a claim, counterclaim or cross claim filed in court by any Party. If a
                                         Party requests arbitration, all Claims (including counterclaims and cross claims) any
                                         Party may have against any other Party or Affiliated Entity, whether such Claims are
                                         deemed to be compulsory or permissive in law, shall be submitted to binding arbitration
                                         pursuant to this paragraph 17 (referred to herein as the “Arbitration Agreement”).
                                         The failure to bring such a Claim is a waiver of, and bars, the bringing of such a Claim
                                         in any subsequent arbitration or court action. Any arbitration hearing that requires
                                         the attendance of the Parties shall take place in the federal judicial district in the
                                         State of New York. The Party initiating the arbitration proceeding may select from the
                                         following arbitration administrators, which will apply the appropriate rules for commercial
                                         disputes in effect at the time the Claim is filed with the arbitration organization (“Arbitration
                                         Rules”): the American Arbitration Association (“AAA”), JAMS or any
                                         other organization the Parties agree to in writing. If neither AAA nor JAMS is able or
                                         willing to serve as the arbitration administrator and the Parties are unable to agree
                                         on a replacement administrator or arbitrator(s), then a court of competent jurisdiction
                                         will appoint an administrator or arbitrator(s). For information on arbitration fees and
                                         costs, a copy of the Arbitration Rules, or to file a claim contact AAA at 335 Madison
                                         Avenue, Floor 10, New York, New York 10017-4605, www.adr.org (phone 1-800-778-7879) or
                                         JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadr.com (phone 1-800-352-5267).
                                         In the event of a conflict between the Arbitration Rules and this Arbitration Agreement,
                                         this Arbitration Agreement shall govern. Judgment upon any arbitration award may be entered
                                         in any court with jurisdiction and may be enforced by any court having jurisdiction over
                                         that judgment. If a Party elects arbitration and the other Party refuses to arbitrate,
                                         the Party electing arbitration may seek a court order enforcing this Arbitration Agreement.
                                         In that event, the court shall determine any issues regarding enforceability of this
                                         Arbitration Agreement, including the validity and effect of the class action waiver (set
                                         forth below), but all other issues shall be decided by the arbitrator. All statutes of
                                         limitation that otherwise would apply to an action brought in court will apply in arbitration.
                                         NO CLAIM SUBMITTED TO ARBITRATION WILL BE HEARD BY A JURY AND ANY ARBITRATION UNDER
                                         THIS AGREEMENT WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS AND CLASS ACTIONS
                                         ARE NOT PERMITTED. NO ARBITRATOR MAY ORDER, PERMIT OR CERTIFY A CLASS ACTION, REPRESENTATIVE
                                         ACTION, PRIVATE ATTORNEY-GENERAL LITIGATION OR CONSOLIDATED ARBITRATION. NO ARBITRATOR
                                         MAY ORDER OR PERMIT A JOINDER OF PARTIES, UNLESS BOTH MERCHANT AND PURCHASER CONSENT
                                         TO SUCH JOINDER IN WRITING. 

    

     

     

    

   

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		 18. 	 Remedies
                                         In the event Merchant breaches, any of the provisions of this Agreement, including
                                         but not limited to the representations, warranties and covenants made in paragraph 9,
                                         Purchaser shall be entitled to all remedies available under law. In any action for damages,
                                         Purchaser shall be entitled to damages equal to the Amount Sold less the amount received
                                         by Purchaser. Merchant and the individuals signing this Agreement hereby agree that Purchaser
                                         may electronically debit from any of Merchant’s or the individual signatory’s
                                         bank accounts via ACH or otherwise all or any portion of the Amount Sold or may instruct
                                         Merchant’s processor to forward to Purchaser all or any portion of the Amount Sold
                                         outstanding if Merchant breaches this Agreement. In addition to any other remedies provided
                                         Purchaser under this Agreement, in the event that Merchant changes or permits the change
                                         of the Processor accepted by Purchaser, utilizes the services of an additional card processor
                                         or changes the Account, Purchaser shall have the right, without waiving any of its other
                                         rights or remedies and without notice to Merchant or Guarantor(s), to notify the new
                                         or additional card processor or the bank where the new Account is located, as the case
                                         may be, of the sale of the Amount Sold of Future Receivables hereunder and to direct
                                         such new or additional processor or bank to make payment to Purchaser of all or any portion
                                         of the amounts received or held by such card processor or bank for or on behalf of Merchant
                                         to pay any amounts Purchaser is entitled to receive under the terms of this Agreement.
                                         Merchant hereby grants to Purchaser an irrevocable power of attorney and hereby appoints
                                         Purchaser and its designees as Merchant’s attorney-in-fact to take any and all
                                         actions necessary or appropriate to direct such new or additional card processor to make
                                         payment to Purchaser as contemplated by this paragraph. 

 The
transaction(s) governed by this Agreement involves interstate commerce and the Parties agree that arbitration shall be governed
by the Federal Arbitration Act (9 U.S.C. § 1 et. seq.) and the Arbitration Rules and not by any state law concerning arbitration.
The arbitrator will be required to follow relevant law and applicable judicial precedent to arrive at a decision and shall be
empowered to grant whatever relief would be available in court. The cost of any arbitration proceeding shall be divided as follows:
(i) if a Party other than Purchaser or an Affiliated Entity initiates arbitration and the damages claimed are less than $25,000
or Purchaser or an Affiliated Entity initiate arbitration, Purchaser shall pay all arbitration fees and costs; (ii) if anyone
other than Purchaser or an Affiliated Entity initiates arbitration and the damages claimed are $25,000 or more, the parties to
the arbitration shall split the fees and costs for arbitration equally. Notwithstanding the foregoing, if a Party other than Purchaser
believes the applicable cost of arbitration may be too burdensome, that Party may seek a waiver of costs under the applicable
Arbitration Rules. If such a request is made but denied by the arbitration organization, Purchaser will consider a written request
to either advance or pay all or part of the costs. If arbitration is elected, each Party shall be responsible for its own attorney,
witness and consulting fees provided the prevailing Party may seek reimbursement of attorney fees and arbitration costs if they
prevail as provided in paragraph 16 below. If any part of this Arbitration Agreement, other than waivers of class action rights,
is deemed or found to be unenforceable for any reason, the rest shall remain enforceable. If the waiver of class action rights
is deemed or found to be unenforceable for any reason in a case in which class action allegations have been made, the remainder
of this Arbitration Agreement shall be unenforceable. 

		 19. 	 Attorney’s
                                         Fees and Costs. In the event Merchant defaults, Purchaser shall be entitled to recover
                                         from Merchant and Guarantors all costs of collection, including reasonable attorney’s
                                         fees and third party collection costs, including all such costs and fees incurred in
                                         the event of a bankruptcy filing by Merchant or Guarantors. 

		 20. 	 Reporting:
                                         By signing this Agreement you authorize Purchaser to obtain a credit report and any
                                         background report on the Merchant deemed necessary by Purchaser and any individual that
                                         signs this Agreement for purposes of deciding whether to approve the purchase of the
                                         Amount Sold or for any update, renewal, or for evaluating the qualification of Merchant
                                         for other products of Purchaser or Affiliated Entities and for any other lawful purpose.
                                         The report Purchaser obtains may include, but is not limited to, the business’
                                         or individuals’ credit history or similar characteristics, employment and education
                                         verifications, social security verification, criminal and civil history, Department of
                                         Motor Vehicle records, any other public records, and any other information Purchaser
                                         deems relevant. The reports will be used by Purchaser to determine if it will proceed
                                         with the Purchase of the Future Receivables from Merchant and shall not be used for any
                                         other purposes. 

		 21. 	 INDIVIDUAL
                                         LIABILITY OF GUARANTOR(S) FOR BREACH OF REPRESENTATIONS, WARRANTIES AND COVENANTS.
                                         By signing this Agreement on behalf of Merchant AND ON THEIR OWN BEHALF (each such signer
                                         a Guarantor), the Guarantors (defined as the Owners that have signed below) hereby assume
                                         and, jointly and severally, guarantee those obligations of the Merchant arising under
                                         this Agreement as set forth above and in Appendix B below. This guarantee is unlimited,
                                         absolute and without condition, and is binding upon each Guarantor, the Guarantor’s
                                         heirs, legal representatives, successors and assigns. The Guarantors to this Agreement
                                         are hereby notified that a negative credit report reflecting on his/her credit record
                                         may be submitted to a credit reporting agency if the terms of this Agreement are breached
                                         and the resulting damages are not satisfied. Each Guarantor acknowledges receiving a
                                         copy of this Agreement and having read the terms of this Agreement, including, without
                                         limitation, the guarantee set forth in this paragraph, and the individual owner’s
                                         and Guarantor’s signatures below shall serve as confirmation that they understand
                                         all terms and conditions of this Agreement. 

   

     

     

    

   

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 EACH
PARTY ACKNOWLEDGES THAT THEY HAVE READ AND AGREE TO ALL THE FOREGOING TERMS AND CONDITIONS, INCLUDING THE CHOICE OF LAW AND ARBITRATION
PROVISIONS SET FORTH ABOVE. 

   

	 LIBERTAS FUNDING, LLC 	   	   
	   	   	   
	 by: Randy Saluck 	   	 X /s/ Randy Saluck 
	 CEO, Libertas 	   	 (Signature) 
	   	   	   
	 FOR THE MERCHANT 	   	   
	 (DIGITAL POWER CORPORATION) 	   	   
	   	   	   
	 by:           Milton
    Ault 	   	 X  /s/
    Milton Ault 
	 (Print Name and Title) 	   	 (Signature) 
	   	   	   
	 FOR THE MERCHANT 	   	   
	 (PHILOU VENTURES, LLC) 	   	   
	   	   	   
	 by:           Kristine
    Ault 	   	 X  /s/
    Kristine Ault 
	 (Print Name and Title) 	   	 (Signature) 
	   	   	   
	 OWNER #1 	   	   
	   	   	   
	 by:           Milton
    Ault 	   	 X  /s/
    Milton Ault 
	 (Print Name and Title) 	   	 (Signature) 
	   	   	   
	 OWNER #2 	   	   
	   	   	   
	 by:           Kristine
    Ault 	   	 X  /s/
    Kristine Ault 
	 (Print Name and Title) 	   	 (Signature) 

    

     

     

    

   

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 APPENDIX
A 

   

 ACH
Authorization Agreement 

   

 This
Authorization Agreement for Direct Deposit (ACH Credit) and Direct Collections (ACH Debits) is part of (and incorporated by reference
into) the Future Receivables Sale Agreement (the “Agreement”). Merchant should keep this important legal document
for Merchant’s records. This authorization agreement (the ACH Authorization) is entered into pursuant to the Future
Receivables Sale Agreement (the “Agreement”) dated 1/23/2018 between the undersigned Merchant and Libertas Funding
LLC (the “Purchaser”). Terms used and not defined herein will have the meanings assigned to such terms in the Agreement. 

   

 The
individual signing this ACH Authorization on behalf of Merchant certifies to Purchaser that he or she is a duly authorized check
signer on the financial institution account identified below, that he or she is authorized to enter into this ACH Authorization
on behalf of the Merchant, and that the Merchant will be bound by all the terms of this ACH Authorization. 

   

 This
authorization shall remain in effect until the sooner of (a) such time that Purchaser has received the Purchased Amount, plus
any applicable fees, under the Agreement, or (b) Purchaser permits Merchant to revoke this ACH Authorization, as evidenced in
writing to Merchant. 

   

 The
undersigned Merchant hereby authorizes Purchaser to initiate debit or credit entries from and to Merchants Account at the bank
specified below. Merchant and Purchaser agree to be bound by the applicable rules set forth by the National Automated Clearinghouse
Association. Furthermore, if any such ACH transactions should be returned for insufficient funds, Merchant authorizes Purchaser
to reattempt to collect such amounts by ACH, and in any such case, collect a fee as specified in the Agreement. 

   

 Merchant
further agrees that a breach of this ACH Authorization will constitute a breach of the Agreement. 

   

 Any
capitalized term(s) that are not otherwise defined shall retain the same meaning set forth in the Future Receivables Sale Agreement. 

   

 DISBURSEMENT
OF RECEIVABLES SALE PROCEEDS. By signing below, Merchant authorizes Purchaser to disburse the Purchase Price, less the amount
of any applicable setup fee, by initiating an ACH credit, wire transfer, or similar means to the checking account indicated below
(or a substitute checking account Merchant later identifies and is acceptable to Purchaser) (hereinafter referred to as the “Designated
Checking Account”) in the disbursal amount set forth in the accompanying Future Receivables Sale Agreement. 

   

 COLLECTION
OF FUNDS ARISING FROM FUTURE RECEIPTS. By signing below, Merchant authorizes Purchaser to collect amounts Purchaser is entitled
to receive under the Agreement by initiating ACH Debits of the Specified Percentage of Merchant’s daily receivables to the
Designated Checking Account each business day until Purchaser receives the Amount Sold. At the time of execution of the Future
Receivables Sale Agreement, the Parties agree that the Purchased Percentage equates to the Dollar Amount of Purchased Percentage
set forth in the Agreement, and that the Dollar Amount of Purchased Percentage shall be debited each business day. However, Merchant
acknowledges and agrees that the Dollar Amount of Purchased Percentage may change and fluctuate so that it directly correlates
to the fluctuation of the amount of Future Receivables generated by Merchant. Purchaser will debit Merchants Account in the amount
set forth in the Agreement, as may be modified from time to time by agreement of the Parties. Purchaser acknowledges that no prior
notification will be provided in advance of debits or credits authorized under the Agreement. 

   

 Merchant
authorizes Purchaser to increase the amount of any scheduled ACH debit entry or assess multiple ACH debits for the amount of any
previously scheduled payment(s) that was not paid because Merchant’s financial institution was not open or was not able
to process ACH transactions. If a transaction is rejected by Merchant’s financial institution for any reason other than
termination of this authorization, including without limitation insufficient funds, Merchant understands that Purchaser may, at
its discretion, attempt to process the transaction again as permitted under the NACHA Rules. Merchant also authorizes Purchaser
to initiate ACH entries to correct any erroneous payment transaction. Merchant understands that Merchant is responsible for ensuring
that funds arising from Future Receivables of Merchant remain in the Designed Checking Account each day until Purchaser debits
the amount to which it is entitled under the Future Receivables Sale Agreement. Merchant agrees to notify Purchaser promptly if
there are any changes to the account and routing numbers of the Designated Checking Account. Purchaser is not responsible for
any overdrafts, rejected transactions, or other fees that may result from credits or debits initiated under this Authorization
Agreement. This authorization is to remain in full force and effect until Purchaser has remitted the full amount of the Amount
Sold under the Agreement. The origination of ACH transactions to the Designated Checking Account must comply with, and both Merchant
and Purchaser agree to be bound by, the provisions of applicable law and the NACHA Rules. If Merchant’s financial institution
rejects Purchaser’s debits for any reason, Merchant is still responsible for making timely remittances of the Purchased
Percentage to Purchaser each business day, pursuant to the Agreement. 

   

 THIRD
PARTY APPOINTMENT AND AUTHORIZATION. By signing below, Merchant acknowledges that the Purchaser may, at any time, at Purchaser’s
sole discretion, and without prior notice, appoint a third party, including but not limited to its wholly owned subsidiaries,
(herein referred to as the “Servicing Agent”) to perform any, or all, of the actions authorized by the ACH Authorization
and the Agreement. Merchant further agrees and acknowledges that Servicing Agent shall have all of the same rights, responsibilities,
and authorizations granted to Purchaser by the ACH Authorization and the Agreement. 

   

     

     

    

    

 Page: 10
Deal Application ID:  

   

 BUSINESS
PURPOSE ACCOUNT. By signing below, Merchant attests that the Designated Checking Account was established for business purposes
and not primarily for personal, family or household purposes. The individual signing below on behalf of Merchant certifies that
he/she is an authorized signer on the Designated Checking Account. Merchant will not dispute any ACH transaction initiated pursuant
to this Authorization Agreement, provided the transaction corresponds to the terms of this Authorization Agreement. Merchant requests
the financial institution that holds the Designated Checking Account to honor all ACH entries initiated in accordance with this
Authorization Agreement. 

   

 Payment
Authorization. I authorize my bank to debit my account as identified above to the terms stated here. This authorization shall
remain in effect until the Purchaser and bank receive written notification from me of intent to terminate at such time and in
such manner as to afford the Purchaser and bank reasonable opportunity to act (minimum 30 days). 

   

 I
understand that if the total amount owed to the Purchaser is increased, I authorize this plan to continue as long as the payment
amount remains unchanged until the amount owed the Purchaser is paid off, or unless the plan is terminated earlier by me as above. 

   

 I
understand any added amounts can be applied for with a new ACH Debit Authorization Form. 

   

 All
other changes such as payment amount, frequency, bank account number change, will require a new ACH Debit Payment Authorization
Form to be filled out and submitted to Merchant 15 days prior to any change being implemented. 

   

 I
will be liable to pay an NSF fee of $25.00 (or the amount allowable by law), which may be automatically debited for each NSF.I
represent and warrant that I am authorized to execute this payment authorization for the purpose of implementing this payment
plan. 

   

 I
indemnify and hold the Purchaser and the bank harmless from damage, loss or claim resulting from all authorized actions hereunder. 

   

 Payments
will be scheduled daily in the amount of 1,178.57. 

   

 Recurring
schedule of payment will start on the following day after the financing proceeds are disbursed to the business. 

   

 Payments
will be deducted every day, excluding weekends until full payback amount, referred to as the Purchased Amount (594,000.00), is
reached. 

   

 Routing
Number Account: 

   

 Number
Account Name: 

   

 Bank
Name: 

   

 Type
of Account: Checking Savings 

   

 Merchants
Legal Name: DIGITAL POWER CORPORATION 

   

 View-Only
Access to Online Bank Login: 

   

 Password: 

   

 Date:
1/10/2018 

   

 FOR
THE MERCHANT (DIGITAL POWER CORPORATION) 

   

	 by:           Milton
    Ault 	   	 X 
    /s/ Milton Ault 
	 (Print Name and Title) 	   	 (Signature) 
	   	   	   
	 FOR THE MERCHANT

    (PHILOU VENTURES, LLC) 	   	   
	   	   	   
	 by:           Kristine
    Ault 	   	 X  /s/
    Kristine Ault 
	 (Print Name and Title) 	   	 (Signature) 

   

     

     

    

   

 ADDENDUM
TO CONTRACT 

   

 ARTICLE
1: Addendum to Merchant Agreement 

   

 Purchase
Price: $100,000.00         Purchased Percentage: 20%         Purchased
Amount: $ 148,500.00 

   

 Entered
into by and between Libertas Funding LLC (the Buyer) and DIGITAL POWER CORPORATION (the Seller). 

   

 Notwithstanding
anything contained herein to the contrary, the parties agree as follows: 

   

 a.
Except as provided below, it is understood and agreed that the Seller may settle this Purchase/Merchant Agreement in full by paying
LlBERTAS FUNDING LLC the pre-payment Amount before the end of the relevant month, as set forth below, less the amount of any purchase
payments made prior to the pre-payment date, plus any unpaid fees or charges. Month 1 begins on the first Monday following the
date on which LIBERTAS FUNDING LLC distributed the advance proceeds to DIGITAL POWER CORPORATION. 

   

 b.
In the event Seller chooses not to execute this addendum Buyer will be entitled to the full purchased amount to settle in full
Sellers obligation under account existing contract number. 

   

 c.
Except as provided in this addendum, all terms and conditions of the Merchant Agreement and the Supplement shall remain in full
force and effect. 

   

	 Prepayment
                                         Term 

         2
        months 
	 Accepted
                                         Prepayment Amount 

         118,000.00 
	 Prepayment
                                         Factor 

         1.180 

   

 All
other terms of the referenced contract remain unchanged. 

   

 By
the.ir signatures below the parties agreed to be bound by this addendum. 

   

	 ACCEPTED AND AGREED: 	   	 ACCEPTED AND AGREED: 
	   	   	   	   	   
	 Buyer: Libertas Funding LLC 	   	 Seller: Digital Power Corporation 
	   	   	   	   	   
	 By: 	 /s/ Randy Saluck 	   	 By: 	 /s/ Milton Ault 
	 Name: Randy Saluck 	   	 Name: Milton Ault 
	 Title: CEO, Libertas 	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if applicable 
	   	   	   	   	   
	   	   	   	 ACCEPTED AND AGREED: 
	   	   	   	   	   
	   	   	   	 Seller: PHILOU VENTURES, LLC 
	   	   	   	   	   
	   	   	   	 By: 	 /s/ Kristine Ault 
	   	   	   	 Name: Kristine Ault 
	   	   	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if applicable 

   

     

     

    

   

 ADDENDUM
TO CONTRACT 

   

 ARTICLE
1: Addendum to Merchant Agreement 

   

 Purchase
Price: $100,000.00        Purchased Percentage: 20%        Purchased
Amount: $ 148,500.00 

   

 Entered
into by and between Libertas Funding LLC (the Buyer) and DIGITAL POWER CORPORATION (the Seller). 

   

 Notwithstanding
anything contained herein to the contrary, the parties agree as follows: 

   

 A. I,
Milton Ault, and Kristine Ault, acting on behalf of DlGITAL POWER CORPORATION hereby authorize Buyer, Libe1ias Funding LLC, to
execute the transactions detailed below in section F (Merchant Agreement Variable Receivable Remittance Schedule). 

   

 B.
Seller understands that all transactions detailed in this addendum will be executed for remittance of the receivables purchase
detailed in merchant agreement new. 

   

 C. In
the event Seller chooses to execute Merchant Agreement new Seller agrees that completion of the transaction(s) listed below will
constitute full remittance of receivables for the referenced merchant agreement(s). 

   

 D. Except
as provided in this addendum, all tem1s and conditions of the Merchant Agreement and the Supplement shall remain in full force
and effect. 

   

 E.
Upon execution of Merchant Agreement new Seller agrees to be bound by the remittance schedule detailed in section F. 

   

 F.
Variable Receivable Remittance Schedule. 

   

 Variable
Prepayment 

   

	 Month 	 %
    of Payment Amount 	 Daily 	 Amount
    Paid 
	 1 	 0 	 $
    0.00 	 $
    0.00 
	 2 	 0 	 $
     0.00 	 $
    0.00 
	 3 	 25 	 $
    1,767.86 	 $37,125.00 
	 4 	 25 	 $
    1,767.86 	 $37,125.00 
	 5 	 25 	 $
    1,767.86 	 $37,125.00 
	 6 	 25 	 $
    1,767.86 	 $37,125.00 

   

 All
other terms of the referenced contract remain unchanged. 

   

 By
their signatures below the parties agreed to be bound by this addendum. 

   

	 ACCEPTED AND AGREED: 	   	 ACCEPTED AND AGREED: 
	   	   	   	   	   
	 Buyer: Libertas Funding LLC 	   	 Seller: Digital Power Corporation 
	   	   	   	   	   
	 By: 	 /s/ Randy Saluck 	   	 By: 	 /s/ Milton Ault 
	 Name: Randy Saluck 	   	 Name: Milton Ault 
	 Title: CEO, Libertas 	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 1st owner name 
	   	   	   	   	   
	   	   	   	 By: 	   
	   	   	   	 Principal: 2nd owner name if applicable 
	   	   	   	   	   
	   	   	   	 ACCEPTED AND AGREED: 
	   	   	   	 Seller: PHILOU VENTURES, LLC 
	   	   	   	   	   
	   	   	   	 By: 	 /s/ Kristine Ault 
	   	   	   	 Name: Kristine Ault 
	   	   	   	 Title: 
	   	   	   	   	   
	   	   	   	 By: 	 /s/ Kristine Ault 
	   	   	   	 Principal: Kristine Ault 

   

     

     

    

   

	 LIBERTAS 

   

 Contract
Addendum 

   

 Total
Maximum-Approval Purchase Price: $100.000 Purchased Percentage: 20%        Total Approved
 

 Purchase
Amount: $148,500 

   

 This
Contract Addendum (this “Addendum”) dated as of January 23rd, 2018 amends that certain agreement (the “Agreement,”
#) made by and among Libertas Funding LLC (the “Purchaser”) and Milton Ault and Philou Ventures LLC (the “Owners”)
Digital Power Corporation (the “Seller” which publicly traded under the ticker DPW) dated January 23rd, 2018.The Owners
and the Seller are referred to collectively as the Merchant (the “Merchant”). In connection with the Agreement and
this Addendum, the Purchaser agrees to purchase up to a certain maximum amount of future receivables equal to $148,500 (the “Purchased
Amount”) at a purchase price of $100,000 (the “Purchase Price”). This Addendum shall modify the Agreement pursuant
to the terms of this Addendum. All other provisions of the Agreement shall remain in full force and effect. For good and valuable
mutual consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 

   

		 ● 	 The
                                         Merchant represents and warrants that DPW will remit full payment to Libertas 9 weeks
                                         from deposit of Libertas funds in DPW account. 

		 ● 	 Per
                                         this Agreement if merchant remits full payment amount to the Purchaser within 3 business
                                         days following the Deadline, the Purchased Amount shall be discounted to a total amount
                                         equal to $118,000 

		 ● 	 To
                                         the extent that the Merchant does not remit the Discounted Purchased Amount by three
                                         business days following the Deadline, the Purchased Amount shall increase to the full
                                         Purchased Amount ($148,500) as per the Agreement. As per normal guidelines and the nature
                                         of the original contracts the daily payment shall be turned on and will reflect a payment
                                         of $1,767.86 which will be paid every day from Monday through Friday for each week until
                                         the entirety of the Purchased Amount is paid. 

		 ● 	 Each
                                         of the Owners and the Merchant agrees that, by signing this Addendum, Milton Ault, the
                                         Executive Chairman of the Seller, agrees to be bound by all provisions of the Agreement
                                         and all other Addendum entered into in connection with the Agreement. Additionally, by
                                         signing this Addendum below, Mr. Ault agrees to be bound by all provisions and terms
                                         of this Agreement and any other Addendum entered into in connection therewith. 

		 ● 	 The
                                         undersigned agrees to execute warrants to purchase 35,000 shares of common stock of DPW
                                         (the “Warrants”) at an exercise price of $2.50 per share of DPW stock to
                                         the Purchaser in connection with and as consideration for entering into the Agreement.
                                         The Purchaser may allocate the Warrants to persons other than the Purchaser in the Purchaser’s
                                         sole discretion. 

   

 In
witness whereof, the parties have agreed to this Addendum. 

   

    Page 1 of 2 

     

    

   

	 Libertas Funding, LLC 	   
	   	   	   
	 By:  	 /s/ Randy Saluck 	   
	 Name: 	   
	 Title: 	   
	   	   	   
	 Digital Power Corporation 	   
	   	   	   
	 By: 	 /s/ Milton Ault 	   
	 Name: Milton Ault 	   
	 Title: 	   
	   	   	   
	 Philou Ventures, LLC 	   
	   	   	   
	 By:  	 /s/ Kristine Ault 	   
	 Name: Kristine Ault 	   
	 Title: 	   

   

    Page 2 of 2

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