Document:

Acknowledgement Agreement

 Exhibit 10.11 
 ACKNOWLEDGEMENT AGREEMENT 
 This ACKNOWLEDGEMENT AGREEMENT (herein called the
“Agreement”) is entered into as of January 31, 2008, by and between CANAL MEZZANINE PARTNERS, L.P., 1737 Georgetown Road, Suite A, Hudson, Ohio 44236 (herein called the “Purchaser”) and DEVELOPMENT
CAPITAL VENTURE, L.P., Virginia Gateway Professional Building, 7500 Iron Bar Lane, Suite 209, Gainesville, VA with mailing address of P.O. Box 399, Catharpin, VA 20143-0399 (herein called “DCV”). 
 W I T N E S S E T H 
 WHEREAS, DCV has
or will shortly enter into an agreement whereby it will acquire $2,000,000.00 in preferred stock (herein called the “Preferred Stock”) of DPAC TECHNOLOGIES Corp. (herein called the “Company”) (such agreement, the
Preferred Stock, and all documents related thereto herein called the “Stock Agreements”, copies of which are attached hereto and made a part hereof), and 
 WHEREAS, the Purchaser has requested that DCV agree to certain restrictions on its redemption rights under the Stock Agreements as a condition of the Company to issue and sell to the Purchaser the Senior Subordinated
Note in the aggregate principal amount of $1,200,000 due February 31, 2013 and a warrant to purchase the common stock of the Company representing 3% of the fully diluted common stock of Company, and 
 WHEREAS, DCV has agreed to restrict such rights. 
 NOW THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the Purchaser and DCV do hereby agree as follows: 
 1. DCV hereby agrees and consents that to the extent that DCV has the right to redeem or be subject to redemption of the Preferred Stock under the Stock
Agreements, or otherwise, it will neither exercise such rights nor accept such redemption without the prior written consent of the Purchaser. 
 2. Except as specifically provided for herein, DVC’s rights under the Preferred Stock shall be in accordance with the Stock Agreements, as they may be amended from time to time. 
 3. In the event the DCV exercises its rights to and/or obtains payment from the Company relating to the redemption of the Preferred Stock, prior to the
repayment in full of the Senior Indebtedness, Fifth Third Bank (the “Senior Lender”) shall be entitled to, and DCV shall immediately pay over to the Senior Lender, the proceeds of the redemption for application upon the obligations of the
Company to the Senior Lender and upon and after the repayment in full of the Senior Indebtedness, Purchaser shall be entitled to, and DCV shall immediately pay over to the Purchaser, the proceeds of the redemption for application upon the
obligations of the Company to the Purchaser. To the extent that such proceeds exceed such obligations, the Purchaser will promptly return such proceeds to DCV or as otherwise directed by law or court order. 
  

 4. This Agreement is not an executory contract and is created strictly for the benefit of the signatories
hereto and to any of the Purchaser’s successors or permitted assigns and DCV’s successors and permitted assigns, but in any event it shall not be used by any Trustee in Bankruptcy or a Bankruptcy Court or any other court, agency, or panel
charged with the responsibility of establishing the priorities of the creditors and shareholders of the Company for the purpose of expanding upon or diminishing the rights of the parties hereto. 
 5. This Agreement may not be assigned by either party without the express, written, prior consent of the other party; provided, however, that
notwithstanding the above, the Purchaser may assign this Agreement and/or the related credit to any of its affiliates. No waiver of any provision of this Agreement or of any rights hereunder shall be deemed to be made by the Purchaser unless such
waiver is in writing signed on behalf of the Purchaser, and each waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of the Purchaser or the obligations of the undersigned to
the Purchaser in any other respect at any other time. Notice of acceptance of this subordination is hereby waived, and this agreement shall be immediately binding upon DCV, and the successor, and permitted assigns of DCV. This agreement shall be
governed by and construed in accordance with the law of the State of Ohio. 
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 2 

 Executed on the date set forth above. 
  

			
	DEVELOPMENT CAPITAL VENTURE, L.P.
		
	By:	 	DCC Operating, Inc., General Partner
	Name:	 	Donald L. Murfin
	Title:	 	Executive Vice President
	
	Intending to be legally bound, each Company consents and agrees to the terms of the above Agreement as of the date first above written:
	
	DPAC TECHNOLOGIES CORP.
		
	By:	 	 /s/ Steven D. Runkel

		 	Steve Runkel, Chief Executive Officer
	
	QUATECH, INC.
		
	By:	 	 /s/ Steven D. Runkel

		 	Steve Runkel, Chief Executive Officer

							
	
	Agreed to and Acknowledged by:
	
	 CANAL MEZZANINE PARTNERS, L.P.,
 a
Delaware limited partnership

		
	By:	 	Canal Mezzanine Management, LLC,
		 	an Ohio limited liability company
	Title:	 	General Partner
			
		 	By:	 	Canal Holdings, LLC,
		 		 	an Ohio limited liability company
		 	Title:	 	Managing Member
				
		 		 	By:	 	 /s/ Shawn M. Wynne

		 		 	Name:	 	Shawn M. Wynne
		 		 	Title:	 	Authorized Signer

  

 3Subscription Agreement

 Exhibit 10.12 
 SUBSCRIPTION AGREEMENT 
 The undersigned, DEVELOPMENT CAPITAL VENTURES, L.P. (the
“Investor”), hereby agrees with DPAC Technologies Corp., a California corporation (the “Company”), as follows: 
  

	1.	Investor hereby purchases Twenty Thousand (20,000) shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”), without par value (the
“Preferred Stock”) of the Company at a price per share of $100.00, and agrees to pay to the Company on the date hereof a total purchase price of $2,000,000.00 (the “Purchase Price”), by wire transfer.

  

	2.	Investor acknowledges, represents and warrants to the Company as follows: 

 (a) Investor understands that neither the Preferred Stock nor the common stock, without par value (the “Common Stock”) of the Company into which the Series A Preferred Stock may convert into has been
registered under the Securities Act of 1933, as amended (the “Federal Act”) or any state’s securities laws by reason of specific exemptions under the provisions thereof which depend in part upon the representations made by
Investor in this Agreement. Investor understands that the Company is relying upon Investor’s representations and agreements contained in this Agreement (and any supplemental information furnished by Investor, if any) for the purpose of
determining whether this transaction meets the requirements for such exemptions. 
 (b) Investor has such knowledge, skill and experience in
business, financial and investment matters so that Investor is capable of evaluating the merits and risks of an investment in the Preferred Stock. 
 (c) Investor has made such independent investigation of the Company, its management, and related matters as the Investor deems to be necessary or advisable in connection with an investment in the Preferred Stock; and Investor has received
all information and data which the Investor believes to be necessary in order to reach an informed decision as to the advisability of an investment in the Preferred Stock. 
 (d) Investor is an accredited investor within the meaning of Rule 501(a) of Regulation D promulgated under the Federal Act. 
 (e) Investor understands that the Preferred Stock and the shares of Common Stock issuable upon conversion of the Preferred Stock are “restricted securities” under applicable Federal securities laws and that
the Federal Act and the rules of the Securities and Exchange Commission provide in substance that Investor may dispose of the Preferred Stock or Common Stock issuable upon conversion of the Preferred Stock only pursuant to an effective registration
statement under the Federal Act or an exemption from such registration, if available. 

 (f) Investor hereby confirms that Investor is acquiring the Preferred Stock for investment only and not
with a view to or in connection with any resale or distribution of the Preferred Stock. 
 (g) Investor hereby confirms that its principal
place of business is within the State of Virginia. 
  

	3.	The Company acknowledges, represents and warrants to the Investor as follows: 

 (a) All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, and free and clear of all preemptive rights, rights of first refusal, liens,
charges, restrictions, claims and any other encumbrances imposed by or through the Company other than the securities laws. The Preferred Stock has been offered, issued, sold and delivered in compliance with applicable federal and state securities
laws, and none of such securities are or were at the time of issuance of any preemptive rights. The Preferred Stock and the Common Stock issuable upon conversion of the Preferred Stock, will be, duly and validly issued, fully paid and nonassessable
and free and clear of all preemptive rights, rights of first refusal, liens, charges, restrictions, claims and any other encumbrances imposed by or through the Company. The aggregate authorized capital stock of the Company immediately prior to the
issuance of the Preferred Stock consists of one hundred twenty million (120,000,000) shares of Common Stock, of which, as of October 25, 2007, ninety-two million eight hundred forty-three thousand eight hundred sixty-seven
(92,843,867) are currently issued and outstanding, and eight million (8,000,000) shares of preferred stock, of which none are issued and outstanding. The Certificate of Incorporation of the Company (including the rights, preferences and
other terms of the Preferred Stock) and Bylaws of the Company are as set forth as Exhibits A and B hereto. There are no outstanding options or warrants to purchase any capital stock or any other security convertible into equity
securities of the Company, except for the following: 
 (i) Under the 1996 Stock Option Plan, as amended (the “Plan”), fifteen
million (15,000,000) shares of Common Stock are available to be purchased. As of September 30, 2007, the total number of options outstanding was eleven million twelve thousand nine hundred forty (11,012,940). 
 (ii) There are currently outstanding warrants to purchase six million nine hundred twenty-three thousand seven hundred forty-nine (6,923,749) shares
of Common Stock. 
 (iii) Following the closing of the transactions contemplated by (A) this Agreement, and the issuance of the
Preferred Stock to the Investor and (B) any refinancing transaction(s) with any person related to the Company’s Credit Agreement, with National City Bank, as Lender, dated as of July 

 
28, 2000, the Subordinated Loan and Security Agreement, with The HillStreet Fund, L.P., as Lender, as dated as of July 28, 2000 (each as amended), in no
event will Investor’s equity interest in the Company (calculated on a fully diluted basis, assuming conversion of all outstanding options, warrants, convertible securities and all derivative securities with an exercise price of $0.16 or less
per share of Company Common Stock) be less than 49.5%. 
 (b) The Company is not an “investment company” nor a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (c) The
Company is not a “dealer” as defined in the Securities Act nor a broker-dealer (or broker, dealer) as defined under any applicable state securities laws. 
 (d) The Company shall use the proceeds related to the sale of the Preferred Stock to Investor to retire certain debt obligations of the Company and for general corporate purposes. 
  

	4.	Limitation on Representations and Warranties. The representations and warranties made pursuant to Section 3 hereof are the sole representations and warranties of the
Company. 

  

	5.	Survival of Representations and Warranties. The representations and warranties of the Company made pursuant to Section 3 hereof shall survive for a period of twenty-four
(24) months from the date hereof when they shall terminate, unless notice in writing of breach thereof was given prior to termination, except that the representations and warranties in Sections 3(a) hereof shall survive indefinitely.

  

	6.	Indemnification by Company. The Company agrees to indemnify, defend and hold the Investor harmless from and against any and all claims, demands, losses, expenses, costs,
obligations, damages, liabilities and expense (including all costs, interest, penalties and reasonable attorneys fees) (collectively, “Losses”) which Investor may incur, suffer or sustain, which arise, result from or relate to any breach
of or failure by Sellers to perform any of their representations, warranties, covenants or agreements under this Agreement (including such representations and warranties incorporated herein) or in any exhibit to this Agreement, as if any and all
materiality and knowledge qualification provisions were not contained therein. 

  

	7.	Legend. Investor acknowledges and agrees that the certificate(s) evidencing the Preferred Stock will bear the a legend substantially similar to the following, until otherwise
registered for re-sale: 

 THE SHARES OF PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR UNDER ANY STATE SECURITIES LAWS (THE “ACTS”) AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER THE ACTS OR AN OPINION OF COUNSEL SATISFACTORY TO THE MAKER
THAT THE TRANSFER OF THESE SHARES ARE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACTS. 

	8.	Amendment Investor and the Company acknowledge that the Company currently may not have sufficient shares of authorized Common Stock if the Preferred Stock were to be
immediately converted. The Company covenants to take all reasonable efforts to amend its articles of incorporation to provide for adequate shares of Common Stock issuable upon conversion of the Preferred Stock. Investor agreed to vote for or consent
to such amendment with respect to all shares of Common Stock and Preferred Stock owned by it. 

  

	9.	Registration Rights Investor and the Company are parties, among others, to that certain Shareholder and Registration Rights Agreement dated as of May 11, 2005 (the
“Registration Rights Agreement”). The parties agree the Common Stock issuable upon conversion of the Preferred Stock shall be included as “Registrable Shares” under the terms of the Registration Rights Agreement.

  

	10.	Purchase Right. 

  

	 	(a)	Definitions. 

 (i) “Affiliate”
shall mean with respect to any individual, corporation, partnership, association, trust, or any other entity (in each case, a “Person”), any Person which, directly or indirectly, controls, is controlled by or is under common control
with such Person, including, without limitation any general partner, officer or director of such Person and any venture capital fund now or hereafter existing which is controlled by or under common control with one or more general partners or shares
the same management company with such Person. 
 (ii) “Common Stock issued and outstanding on a fully diluted basis” means,
as of any date, the total number of shares of Common Stock which are issued and outstanding, plus the total number of shares of Common Stock which would be issued upon conversion, exercise and/or exchange of all outstanding securities of the Company
which are convertible, exercisable and/or exchangeable, directly or indirectly, for shares of Common Stock. 

 (iii) “Excluded Securities” means (A) securities issued upon the conversion of
shares of Series A Preferred Stock; (B) securities issued pursuant to an acquisition approved by the Board of Directors of the Company, of another corporation or other entity by merger, consolidation, purchase of substantially all of the assets
or equity securities or otherwise; (C) up to an aggregate of 15,000,000 shares of Common Stock (subject to adjustment for any stock splits, stock dividends, reverse stock splits, stock combinations and other similar capitalization changes)
issued under the Plan, or such greater number if approved by the Board of Directors and the Stockholders of the Company; (D) shares of Common Stock issued pursuant to a bona fide, firm commitment public offering; (E) securities issued upon
the conversion, exercise or exchange of other securities outstanding on the date of this Agreement; or (F) securities issued in a stock split or stock dividend by the Company that is paid on a proportionate basis to all holders of the
Company’s capital stock. 
 (iv) “New Securities” means (A) all equity securities of any kind or class issued by
the Company after the date hereof and (B) rights of any kind to acquire, directly or indirectly (including, without limitation, by conversion, exchange or exercise, whether debt instrument or otherwise) any securities described in clause (A).

 (v) “Pro Rata Share” means, with respect to Investor, a fraction, the numerator of which is the number of shares of Common
Stock owned by Investor (including shares of Common Stock issuable upon conversion, exercise and/or exchange of shares of Series A Preferred Stock owned by Investor) on the Notice Date (as defined below) and the denominator of which is the total
number of shares of Common Stock issued and outstanding on a fully diluted basis on the Notice Date. 
 (b) Subject to the terms and
conditions of this Section 10, the Company hereby grants to Investor a right of first offer to purchase up to its Pro Rata Share of all New Securities that the Company may, from time to time, propose to sell and issue after the date of this
Agreement, other than Excluded Securities. Investor shall be entitled to apportion the right of first offer hereby granted it among itself and its partners, members and Affiliates in such proportions as it deems appropriate. 
 (c) If the Company proposes to issue any New Securities (other than Excluded Securities), it shall offer to sell to Investor its Pro Rata Share of such
New Securities in accordance with the procedure set forth below: 
 (i) The Company shall give Investor a written notice (the “Offer
Notice”). The date on which the Company gives the Offer Notice is hereinafter referred to as the “Notice Date.” The Offer Notice shall describe (A) the number of New Securities the Company has a bona fide intention to
offer, sell or issue, (B) the price and terms and conditions upon which it proposes to offer such New Securities, and (C) Investor’s Pro Rata Share of the New Securities. 

 (ii) For a period of 20 days following the Notice Date (the “Acceptance Period”),
Investor shall have the right to purchase (the “Purchase Right”), at the price and on the terms and conditions stated in the Offer Notice, up to Investor’s Pro Rata Share of the New Securities. If Investor who desires to
exercise its Purchase Right, then it shall give written notice (the “Acceptance Notice”) to the Company within the Acceptance Period. The Acceptance Notice shall state that Investor desires to exercise its Purchase Right and the
number of New Securities that Investor elects to purchase upon exercise of such Purchase Right up to Investor’s full Pro Rata Share. Failure by Investor to give the Acceptance Notice within the Acceptance Period shall be deemed, without any
further action by the Company or Investor, the irrevocable waiver of Investor’s Purchase Right with respect to the New Securities set forth in the Offer Notice and any other securities issuable, directly or indirectly, upon conversion, exercise
or exchange of such New Securities. 
 (d) Following the expiration of the Acceptance Period, the Company shall be entitled, during the period
of 90 days following the expiration of the Acceptance Period (the “Unrestricted Period”), to sell to any person or entity up to the full amount of the New Securities set forth in the Offer Notice on the terms set forth in the Offer
Notice, less the number of New Securities, if any, which Investor has elected to purchase upon exercise of its Purchase Right in accordance with Section 10(c) hereof (the “Remainder Securities”). The Company shall give ten
(10) days’ prior written notice to Investor (if it has elected to purchase New Securities) of any such sale to a third party, which sale shall be at the price and upon terms and conditions no more favorable to the third party than those
described in the Offer Notice. At and upon the closing, which shall include full payment to the Company, of the sale of such Remainder Securities to such third party, Investor shall purchase from the Company, and the Company shall sell to Investor,
the New Securities elected to be purchased pursuant to Section 10(c) hereof on the terms specified in the Offer Notice. If the Company does not complete the sale of the Remainder Securities to any person or entity within the Unrestricted
Period, the Purchase Right provided hereunder shall be deemed to be revived and such Remainder Securities shall not be offered unless first reoffered to Investor in accordance herewith. The exercise or non-exercise by Investor of its rights pursuant
to this Section 10 shall be without prejudice to its rights under this Section 10 with respect to any future issuance of New Securities by the Company. 
 (e) Investor’s rights pursuant to this Section 10 shall automatically terminate upon a conversion of all shares of Series A Preferred Stock owned by Investor into Common Stock or as of such time that
Investor shall cease to own beneficially or of record any shares of Series A Preferred Stock. 
  

	11.	Investor acknowledges that neither the Company nor any person acting on its behalf has offered or sold the Preferred Stock to Investor by any form of general solicitation, general
or public media advertising or mass mailing. 

	12.	This Subscription Agreement shall be deemed to be a contract under the Laws of the State of Ohio and shall for all purposes be governed by and construed and enforced in accordance
with the laws of the State of Ohio. 

  

	13.	Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by an instrument in writing signed by the party against
whom any waiver, change, discharge or termination is sought. 

  

	14.	This Subscription Agreement is not transferable or assignable by Investor or the Company. 

  

	15.	This Subscription Agreement, and the Preferred Stock constitute the entire understanding of the parties with respect to the subject matter hereof and supersedes any and all prior
understandings and agreements, whether written or oral, with respect to such subject matter. 

  

	16.	This Subscription Agreement and the Preferred Stock shall only be binding upon a party (that is a signatory thereto) when executed by the parties thereto. 

 

	17.	This Subscription Agreement may be executed in counterparts, all of which shall constitute the same instrument. 

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 IN WITNESS WHEREOF, the undersigned, intending to be legally bound, do hereby execute this Subscription
Agreement as of this 17th day of December, 2007. 
  

			
	DPAC Technologies Corp.
		
	By:	 	 /s/ Steven D. Runkel

	Name:	 	Steven D. Runkel
	Title:	 	CEO
	
	DEVELOPMENT CAPITAL VENTURES, L.P.
		
	By:	 	DCC Operating, Inc., General Partner
		
	By:	 	 /s/ Donald L. Murfin

	Name:	 	Donald L. Murfin
	Title:	 	Exec. Vice President

 Exhibit A 
 Certificate of Incorporation 

 Exhibit B 
 Bylaws

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