Document:

Exhibit 10.1

 

AMENDED
AND RESTATED SECURITIES PURCHASE AGREEMENT

 

This
Amended and Restated Securities Purchase Agreement (this “Agreement”) is dated as of June 18, 2019, by and among
DPW Holdings, Inc., a Delaware corporation (the “Company”), and the purchasers identified on the signature pages
hereto (each, including its successors and permitted assigns, a “Purchaser,” or in the aggregate, the “Purchasers”).

 

WHEREAS,
the Company and the Purchasers previously entered into a Securities Purchase Agreement dated of May 15, 2018, as thereafter amended
from time to time (the “Original SPA”);

 

WHEREAS,
pursuant to the Original SPA, senior secured promissory notes in the amount of $1,800,000 remain due and payable as of the date
hereof (the “Old Notes”);

 

WHEREAS,
it is the intent of the parties that the Old Notes be terminated as of the Closing Date and replaced with a new Note;

 

WHEREAS,
the Company desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the Company, an additional
Note (as defined below) in the principal amount of $2,900,000 and related Commitment Shares (as defined below) as set forth herein,
such that the aggregate debt outstanding as of the date hereof shall be $2,900,000, inclusive of original issue discounts; 

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and/or Rule 506(b) promulgated thereunder, the Company will sell and issue
to the Purchasers the Note and the Commitment Shares (as defined below) without registration; 

 

WHEREAS,
the Company will register the resale of the Commitment Shares on Form S-3 (the “Registration Statement”).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 

 

ARTICLE
I. 

DEFINITIONS;
AMENDMENT AND RESTATEMENT 

 

1.1          Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein
have the meanings given to such terms in the Transaction Documents (as defined herein), and (b) the following terms have the
meanings set forth in this Section 1.1:

  

“Action”
shall have the meaning ascribed to such term in Section 3.1(k).

 

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“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. 

 

“BHCA”
shall have the meaning ascribed to such term in Section 3.1(ll).

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, or any day on which the Federal Reserve Bank of New York is
closed.

 

“Closing
Date” means the Trading Day(s) on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchaser’s obligations to pay
the Subscription Amount as to the Closing and (ii) the Company’s obligations to deliver the Securities as to the Closing,
in each case, have been satisfied or waived.

 

“Closing”
means closing of the purchase and sale of the Securities pursuant to Section 2.2.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Commitment
Shares” means the shares of Common Stock to be issued by the Company to the Purchaser pursuant to Section 2.1(d). 

 

“Common
Stock” means the Class A common stock of the Company, par value $0.001 per
share, and any other class of securities into which such securities may hereafter be reclassified or changed. 

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock. 

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(t).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 

“Exchange
Approval” means approval of the Common Stock or Common Stock Equivalents contemplated by this Agreement by the NYSE American,
which approval shall be obtained no later than twenty-five (25) days after the Closing Date.

 

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“Exchange
Cap” shall have the meaning ascribed to such term in Section 3.1(y)(ii).

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“Federal
Reserve” shall have the meaning ascribed to such term in Section 3.1(ll).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(i).

 

“Guaranty”
means the guaranty of Ault & Company, Inc. (“Ault”), dated as of the date hereof by and between Ault
and the Purchaser, as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes to such Guaranty,
pursuant to which all Liabilities of the Company to the Purchaser under the Transaction Documents are guaranteed by Ault, attached
as Exhibit C.

 

“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than trade accounts payable incurred
in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the Note thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; and (c) the present value of any lease payments in excess of $100,000 due under leases required to be capitalized
in accordance with GAAP.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(q).

 

“Intellectual
Property Security Agreement” means that certain Intellectual Property Security Agreement dated as of May 15, 2018,
by and between the Company and the Purchaser, which shall be deemed to cover all Notes issued hereunder.

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liabilities”
means all direct or indirect liabilities, Indebtedness and obligations of any kind of Company to the Purchaser, howsoever created,
arising or evidenced, whether now existing or hereafter arising (including those acquired by assignment), absolute or contingent,
due or to become due, primary or secondary, joint or several, whether existing or arising through discount, overdraft, purchase,
direct loan, participation, operation of law, or otherwise, including, but not limited to, pursuant to the Note, this Agreement
and/or any of the other Transaction Documents, all accrued but unpaid interest on the Note, any letter of credit, any standby letter
of credit, and/or outside attorneys’ and paralegals’ fees or charges relating to the preparation of the Transaction
Documents and the enforcement of the Purchaser’s rights, remedies and powers under this Agreement, the Note and/or the other
Transaction Documents.

 

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“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n). 

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(qq). 

 

“Note”
means the Company’s Senior Secured Promissory Note due December 18, 2019 issued by the Company to each Purchaser hereunder,
in the form of Exhibit A attached hereto.

 

“Off-balance Sheet Arrangement”
shall have the meaning ascribed to such term in Section 3.1(pp).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

  

“Principal
Amount” means, as to the Purchaser, the principal amount of the Note set forth opposite such Purchaser’s name in
column (2) on the Schedule of Purchasers attached hereto in United States Dollars. 

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b). 

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.9.

  

“Registration
Rights Agreement” means that certain Registration Rights Agreement, between the Company and the Purchaser, dated
as of June 18, 2019, required to be delivered pursuant to Section 2.3 of this Agreement, in the form attached hereto as Exhibit
B.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

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“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such rule. 

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(i).

 

“Securities”
means the Note and the Commitment Shares to be issued to the Purchaser pursuant to this Agreement. 

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

 

“Security Agreement”
means the Security Agreement dated as of May 15, 2018, by and among the Company, the Company’s Subsidiaries, and the Purchaser,
as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes to such Security Agreement, pursuant
to which all Liabilities of the Company to the Purchaser under the Transaction Documents are secured by the Collateral (as defined
in the Security Agreement), which security interest in the Collateral was perfected by the Purchaser’s UCC-1, filed with
the Secretary of State of the State of Delaware, to the extent perfectable by the filing of a UCC-1 Financing Statement, or if
applicable, a UCC-3 Financing Statement Amendment and such other documents and instruments related thereto, which Security Agreement
shall be deemed to cover all Notes issued hereunder.

 

“Security and Pledge
Agreement” means the Security and Pledge Agreement dated as of May 15, 2018, by and among Super Crypto Mining, Inc. and
the Purchasers, as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes to such Security
and Pledge Agreement, pursuant to which all Liabilities of the Company to the Purchasers under the Transaction Documents are secured
by the Collateral (as defined in the Security and Pledge Agreement), which security interest in the Collateral shall be perfected
by each Purchaser’s UCC-1, filed with the Secretary of State of the State of Delaware, to the extent perfectable by the filing
of a UCC-1 Financing Statement, or if applicable, a UCC-3 Financing Statement Amendment and such other documents and instruments
related thereto, which Security and Pledge Agreement shall be deemed to cover all Notes issued hereunder, in all respects subject,
however, to the amendment to the Security and Pledge Agreement by the entry of the foregoing parties and ALPPS LLC into
an Intercreditor Agreement on October 3, 2018.

 

“Shell
Company” means an entity that fits within the definition of “shell company” under Section 12b-2 of the Exchange
Act and Rule 144.

 

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“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act. 

 

“Subscription
Amount” means, as to the Purchaser, the aggregate amount to be paid for the Note and the Commitment Shares purchased
hereunder as specified below the Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds. 

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof. 

 

“Subsidiary
Guarantee” means the Subsidiary Guarantee, dated as of May 15, 2018, pursuant to which the Subsidiaries have jointly
and severally agreed to guarantee and act as surety for the Company’s obligation to repay the Notes.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading. 

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American; the Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market;
the New York Stock Exchange; OTC Markets or the OTC Bulletin Board (or any successors to any of the foregoing). 

 

“Transaction
Documents” means this Agreement, the Note, the Registration Rights Agreement, the Security Agreement, the Security and
Pledge Agreement, the Intellectual Property Security Agreement, the Subsidiary Guarantee, the Guarantee, and all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

 

“Transfer
Agent” means Computershare Trust Company, N.A., and any successor transfer agent of the Company. 

 

		1.2	Amendment & Restatement.

 

(a)       Upon
the execution of this Agreement by the parties hereto, this Agreement shall amend, restate and replace in its entirety the Original
SPA and (i) all references to the Original SPA in any Transaction Document other than this Agreement (including in any amendment,
waiver or consent) shall be deemed to refer to the this Agreement as amended and restated hereby, (ii) all references to any section
(or subsection) of the Old SPA in any Transaction Document (but not herein) shall be amended to be, mutatis mutandis, references
to the corresponding provisions of this Agreement and (iii) except as the context otherwise provides, all references to this Agreement
herein (including for purposes of indemnification and reimbursement of fees) shall be deemed to be reference to this Agreement
as amended and restated hereby. 

 

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(b)       Each
party to any of the Transaction Documents executed in connection with the Old SPA hereby agrees that the Transaction Documents
remain in full force and effect and shall apply to the full and punctual payment when due of all amounts due and owing as modified
hereby and that the terms hereof shall not affect in any way its obligations and liabilities, except as expressly modified hereby,
under the Old SPA. All Liens created in connection with the Old SPA shall continue to secure all amounts due and owing under this
Agreement.

 

(c)       On
and after the date of this Agreement, (i) the Old SPA shall be of no further force and effect except as amended and restated hereby
and except to evidence (A) the incurrence by the Company of the obligations created thereunder, (B) the representations and warranties
made by the Company prior to the date hereof, and (C) any action or omission performed or required to be performed pursuant to
the Old SPA prior to the date hereof (including any failure, prior to the date hereof, to comply with the covenants contained in
such Old SPA) and (ii) the terms and conditions of this Agreement and the Purchasers’ rights and remedies under the Transaction
Documents, shall apply to all obligations incurred under the this Agreement. 

 

 

ARTICLE
II. 

PURCHASE
AND SALE 

 

2.1          Purchase.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company shall sell and issue to each Purchaser, and each Purchaser shall
purchase, severally and not jointly, from the Company: 

 

(a)
       a Note with a Principal Amount equal to
the amount set forth opposite such Purchaser’s name in column (2) on the Schedule of Purchasers attached hereto, which shall
include all principal, interest and other charges outstanding pursuant to the Old Note;

 

(b)
       in consideration for the Purchaser’s execution and delivery of this Agreement,
500,000 Commitment Shares. 

 

The
purchase of the Note and Commitment Shares will be completed in a single tranche as provided herein. The Commitment Shares
shall be issued pursuant to the Registration Statement.

 

2.2          Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, concurrent with the execution and delivery
of this Agreement by the parties hereto, the Company agrees to sell, and each Purchaser agrees to purchase, the Subscription Amount
of Note and Commitment Shares as set forth on the signature page hereto executed by such Purchaser. At the Closing, each Purchaser
shall deliver to the Company, via wire transfer to an account designated by the Company, immediately available funds equal to such
Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser, and the Company shall
deliver to such Purchaser its Note and Commitment Shares as set forth in Section 2.3(a), and the Company and such Purchaser
shall deliver the other items set forth in Section 2.3 deliverable at the Closing. Upon satisfaction of the covenants and
conditions set forth in Sections 2.3 and 2.4 for Closing, such Closing shall occur at the offices of Sichenzia Ross
Ference LLP or such other location as the parties hereto shall mutually agree, and may by
agreement be undertaken remotely by electronic exchange of Closing documentation.

 

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		2.3	Deliveries.

 

 (a)         On
or prior to the Closing Date (except as noted), the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)
         this Agreement duly executed by the Company;

 

(ii)         Upon
the Company’s receipt of Exchange Approval, the Commitment Shares;

 

(iii)        a Note with a Principal Amount equal to the amount set forth opposite such Purchaser’s
name in column (2) on the Schedule of Purchasers attached hereto, registered in the name
of the Purchaser;

 

(iv)        the
Registration Rights Agreement, duly executed by the Company;

 

(vi)        the
opinion of Laxague Law, Inc., the Company’s counsel, dated as of the Closing Date;

 

(vii)       the
Guarantee;

 

(xiii)      a
certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in each such entity’s
jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date
within ten (10) days of the Closing Date;

 

(ix)        a
certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary of
State (or comparable office) of each jurisdiction, if any, in which the Company conducts business and is required to so qualify,
as of a date within ten (10) days of the Closing Date;

 

(x)         a
certified copy of the Company’s certificate of incorporation, as certified by the Secretary of State of Delaware within two
(2) days of the Closing Date;

 

(xi)        a
certificate executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions, as adopted by
the Board of Directors in a form reasonably acceptable to the Purchasers, approving (A) the entering into and performance of this
Agreement and the other Transaction Documents and the issuance, offering and sale of the Securities and (B) the performance of
the Company and each of its Subsidiaries of their respective obligations under the Transaction Documents contemplated therein,
(ii) the Company’s certificate of incorporation and (iii) the Company’s bylaws, each as in effect at the Closing; and

 

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(xii)       such
other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Purchaser or its
counsel may reasonably request.

 

(b)         On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company, as applicable, the following:

 

(i)         this Agreement, duly executed by the Purchaser; 

 

(ii)
       the Purchaser’s Subscription Amount by wire transfer to the account specified in
writing by the Company; and

 

(iii)
       the Registration Rights Agreement, duly executed by the Purchaser;

 

		2.4	Closing Conditions.

 

(a)          The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)
        the accuracy in all material respects as at Closing Date of the representations and warranties
of the Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)        all obligations, covenants and agreements of the Purchaser required to be performed at
or prior to the Closing Date shall have been performed; and

 

(iii)       the delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

(b)          The
respective obligations of each Purchaser hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)         the
accuracy in all material respects when made as to the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

(ii)        all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

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(iii)       the
delivery by the Company of the items set forth in Section 2.3(a) of this Agreement;

 

(iv)       there
is no existing Event of Default (as defined in the Note) and no existing event which, with the passage of time or the giving of
notice, would constitute an Event of Default;

 

(v)        there
is no breach of an obligations, covenants and agreements under the Transaction Documents and no existing event which, with the
passage of time or the giving of notice, would constitute a breach under the Transaction Documents;

 

(vi)       there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; 

 

(vii)      from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P.
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New
York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of the Purchaser, and without regard to any factors unique to the Purchaser, makes it impracticable or inadvisable
to purchase the Securities at the Closing; 

 

(viii)     the Company does not meet the current public information requirements under Rule 144
in respect of the Commitment Shares;

 

(ix)        the
Company fails to file with the Commission any required reports under Section 13 or 15(d) of the Exchange Act such that it is not
in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable), including, without limitation, any reports that the Commission
requires the Company to amend and/or re-submit; and

 

(x)        any
other conditions contained herein or the other Transaction Documents, including, without limitation those set forth in Section
2.3 herein.

 

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ARTICLE
III. 

REPRESENTATIONS
AND WARRANTIES 

 

3.1         Representations
and Warranties of the Company. Except as set forth in the disclosure schedules attached hereto (the “Disclosure Schedules”),
which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent
of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company (which for purposes of
this Section 3.1 means the Company and all of its Subsidiaries) hereby makes the following
representations and warranties to each Purchaser as of the Closing Date:

 

(a)       Subsidiaries.
All of the direct and indirect Subsidiaries and parent entities of the Company are set forth on Schedule 3.1(a) hereto.
The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear
of any Liens, other than as set forth on Schedule 3.1(a) hereto, and all of the issued and outstanding shares of capital
stock or other equity interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive
and similar rights to subscribe for or purchase securities. 

 

(b)       Organization
and Qualification. Each of the Company and its Subsidiaries is an entity duly incorporated or otherwise organized and validly
existing, and each such entity is in good standing, under the laws of the jurisdiction of its incorporation or organization, as
applicable, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate
or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material
adverse effect on the legality, validity or enforceability of any Transaction Document; (ii) a material adverse effect on
the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company, its parent entities
and the Subsidiaries, taken as a whole; or (iii) a material adverse effect on the Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or qualification.

 

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(c)       Authorization;
Enforcement; Registration Statement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals and the filing with the Commission of
the Registration Statement. This Agreement and each other Transaction Documents to which it is a party has been (or upon delivery
will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as
limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally; (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies; and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law. At the time the Registration Statement and any amendments thereto become effective,
and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the Securities Act, the Registration Statement and any
amendments thereto will comply in all material respects with the requirements of the Securities Act and will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading. The prospectus contained in the Registration Statement and any amendments or supplements thereto, at the
time such prospectus or any amendment or supplement thereto will be issued, will comply, in all material respects with the requirements
of the Securities Act and will not contain any untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company meets
all of the requirements for the use of Form S-3 under the Securities Act for the registration of the Commitment Shares contemplated
by this Agreement and the other Transaction Documents, and the Commission has not notified the Company of any objection to the
use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the Securities Act. The Registration Statement meets
the requirements set forth in Rule 415(a)(1)(x) under the Securities Act. At the earliest time after the filing of the Registration
Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the
Securities Act) relating to any of the Securities, the Company was not and is not an “Ineligible Issuer” (as defined
in Rule 405 under the Securities Act). The Company (i) has not distributed any offering material in connection with the offer or
sale of any of the Securities and (ii) until no Purchaser holds any of the Securities, shall not distribute any offering material
in connection with the offer or sale of any of the Securities to, or by, any of the Purchasers (if required), in each case, other
than the Registration Statement, the prospectus or any prospectus supplement.

 

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(d)       No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not, except as set forth on Schedule 3.1(d): (i) conflict with or violate any provision
of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents; (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any Lien (except Liens in favor of the Purchaser) upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of
the Company or any Subsidiary is bound or affected; or (iii) subject to the Required Approvals, conflict with or result in
a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the
filings required pursuant to Sections 4.3 and 4.13 of this Agreement; (ii) the notice and/or application(s) to each applicable
Trading Market for the issuance and sale of the Securities and the listing of the Commitment Shares for trading thereon in the
time and manner required thereby; and (iii) the filing of Form D with the Commission and such filings as are required to be
made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)       Issuance
of the Securities. The Note has been duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, free and clear of all Liens imposed by the Company other than restrictions on transfer
provided for in the Transaction Documents.  The Commitment Shares are duly authorized and, when issued and paid for in
accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.  

 

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		(g)	Capitalization; Corporate Governance. 

 

(i)
The capitalization of the Company is as set forth on Schedule 3.1(g)(i), which Schedule 3.1(g)(i) shall
also include (A) the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the
date hereof and (B) the number of authorized and reserved shares of capital stock of the Company. The Company has not issued capital
stock since its most recently filed periodic report under the Exchange Act except as set forth on Schedule 3.1(g)(i),
except the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and except
pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic
report under the Exchange Act except as set forth on Schedule 3.1(g)(i). No Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction
Documents except as set forth on Schedule 3.1(g)(i). There are no outstanding
options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights
or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire
any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is
or may become bound to issue additional shares of Common Stock or Common Stock Equivalents except as set
forth on Schedule 3.1(g)(i). The issuance and sale of the Securities will
not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will
not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any
of such securities except as set forth on Schedule 3.1(g)(i). All of the
outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been
issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder,
the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders’ agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders. 

 

(ii)
The names and titles of each of the Company’s principal officers, directors and beneficial holders of at least five percent
(5%) of the outstanding shares of each class of the Company’s capital stock on a fully diluted basis are as set forth on
Schedule 3.1(g)(ii), which Schedule 3.1(g)(ii) shall also include each committee of directors as well as the names
and titles of each director currently serving on each such committee.

 

(h)       Indebtedness.
Schedule 3.1(h) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has commitments. Except as set forth on Schedule 3.1(h), neither
the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(i)        SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two (2) years preceding the date hereof (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”). As of their respective dates,
the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial
statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and
the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements
have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the Note
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments. 

 

    	 	14 	 

    	 

    

 

(j)        Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in the Company’s Annual Report on Form 10-K, including such latest
audited financial statements, or in a subsequent SEC Report filed prior to the date hereof and except as set forth in Schedule
3.1(g), Schedule 3.1(m), and Schedule 3.1(j): (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse Effect; (ii) the Company has not incurred any
liabilities or obligations (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the Commission; (iii) the Company has not altered its method
of accounting; (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock; (v) the Company has not sold,
assigned or transferred any other tangible assets or Intellectual Property Rights, or canceled any debts or claims, except in the
ordinary course of business, (vi) the Company has not suffered any substantial loss contingencies
or waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material
amount of prospective business, (vii) the Company has not entered into any acquisition or financing transactions, whether
or not in the ordinary course of business, other than with respect to the Transaction Documents
and (v) the Company has not issued any equity securities to any officer, director or Affiliate,
no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or
exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial
condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation
is made. 

 

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(k)       Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties except as set forth in Schedule
3.1(k), or against or affecting the Company’s current or former officers or directors in their capacity as such,
before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were
an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect, and neither the Company nor any
Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current
or former director or officer of the Company that is likely to lead to action that can reasonably be expected to result in a Material
Adverse Effect. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the Exchange Act or the Securities Act.

 

(l)        Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(m)       Compliance.
Neither the Company nor any Subsidiary, except as set forth in Schedule 3.1(m): (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived); (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority; or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	16 	 

    	 

    

 

(n)       Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(o)       Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except as set forth in Schedule 3.1(o) and except for (i) Liens as do not
materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate
reserves have been made therefor in accordance with GAAP and the payment of which is neither delinquent nor subject to penalties.
Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting
and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(p)       Material
Agreements. Except for the Transaction Documents (with respect to clause (i) only) or as set forth on Schedule 3.1(p)
hereto, or as would not be reasonably likely to have a Material Adverse Effect, (i) the Company and each of its Subsidiaries have
performed all obligations required to be performed by them to date under any written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement, filed or required to be filed with the Commission (the “Material Agreements”),
(ii) neither the Company nor any of its Subsidiaries has received any notice of default under any Material Agreement and, (iii)
to the best of the Company's knowledge, neither the Company nor any of its Subsidiaries is in default under any Material Agreement
now in effect.

 

(q)       Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as necessary or required for use in connection with their respective businesses as presently conducted and which
the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the Intellectual Property Rights
has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the
date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements
included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights
violate or infringe upon the rights of any Person, except as could not have or could not reasonably be expected to have a Material
Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights except as disclosed in Schedule 3.1(q). The Company
and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

    	 	17 	 

    	 

    

 

(r)       Transactions
with Affiliates and Employees. Except as disclosed in Schedule 3.1(r), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered; (ii) reimbursement
for expenses incurred on behalf of the Company; and (iii) other employee benefits. 

 

(s)       Payments
of Cash. Except as disclosed on Schedule 3.1(s), since September 22, 2016, neither the Company, its directors or officers,
or any Affiliates or agents of the Company, have withdrawn or paid cash to any vendor in an aggregate amount that exceeds Five
Thousand Dollars ($5,000) for any purpose.

 

(t)        Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the
Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange
Act) that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting
of the Company and its Subsidiaries.

 

    	 	18 	 

    	 

    

 

(u)       Certain
Fees. Other than as set forth on Schedule 3.1(u), no brokerage or finder’s fees or commissions are or will be
payable by the Company or any Subsidiaries to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser shall have
no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated
in this Section that may be due in connection with the transactions contemplated by the Transaction Documents. 

 

(v)       Private
Placement. Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as contemplated hereby.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market, provided
that its approval thereof is obtained prior to the issuance of the Commitment Shares.

 

(w)       Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(x)       Registration
Rights.  Other than as set forth on Schedule 3.1(x) and pursuant to this Agreement, no Person has any right
to cause the Company to effect the registration under the Securities Act of any securities of the Company or any Subsidiaries.

 

    	 	19 	 

    	 

    

 

		(y)	Listing and Maintenance Requirements; Trading Market Regulation.

 

(i)
The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed
to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as
disclosed in the SEC reports or in press releases issued by the Company, the Company has not, in the twelve (12) months preceding
the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect
that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and
has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance
requirements.

 

(ii)       The
Company shall not issue or sell any shares of Common Stock or Common Stock Equivalents pursuant to this Agreement and the other
Transaction Documents to the extent that after giving effect thereto, the aggregate number of shares of Common Stock that would
be issued pursuant to this Agreement and such Transaction Documents would exceed 19.99% of the Company’s outstanding shares
of Common Stock as of the date hereof (the “Exchange Cap”), unless and until the Company elects to either (x)
pay to the Purchasers the equivalent of any amount of Common Stock or Common Stock Equivalents issued in excess of the Exchange
Cap in cash or (y) solicit Stockholder Approval of the transactions contemplated by this Agreement and such Transaction Documents
and the stockholders of the Company as well as, subsequently, the principal Trading Market have in fact approved the transactions
contemplated by this Agreement and such Transaction Documents in accordance with the applicable rules and regulations of the applicable
Trading Market, and the certificate of incorporation and bylaws of the Company. The Company agrees to submit the application to
the principal Trading Market to obtain Exchange Approval within three (3) days of the Closing Date. 

 

(z)       Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s Certificate of Incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and
the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company’s issuance of the Securities and the Purchaser’s ownership of the Securities.

 

    	 	20 	 

    	 

    

 

(aa)       Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any
information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms
that the Purchaser will rely on the foregoing representation in effecting transactions in securities of the Company. All of the
disclosure furnished by or on behalf of the Company to the Purchaser regarding the Company and its Subsidiaries, their respective
businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct
and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated
by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made and when made, not misleading. The
Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(bb)       No
Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would
require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated.

 

(cc)       No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchaser
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(dd)       Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii) made
any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or
made by any person acting on its behalf of which the Company is aware) which is in violation of law; or (iv) violated in any
material respect any provision of FCPA.

 

(ee)       Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(ee). To the knowledge and belief of the Company, such accounting
firm is a registered public accounting firm as required by the Exchange Act.

 

    	 	21 	 

    	 

    

 

(ff)       No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

(gg)     Acknowledgment
Regarding Purchaser’s Purchase of Securities. The Company acknowledges and agrees that the Purchaser is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by the Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchaser’s purchase of the Securities. The Company further represents to
the Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(hh)     Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases
of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase
any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Securities.

 

(ii)       Stock
Option Plans. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly
grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement
of material information regarding the Company or its Subsidiaries or their respective financial results or prospects.

 

(jj)       Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer,
agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department.

 

(kk)     U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

    	 	22 	 

    	 

    

 

(ll)       Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act
of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%)
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(mm)   Promotional
Stock Activities. Neither the Company, its officers, its directors, nor any affiliates or agents of the Company have engaged
in any stock promotional activity that could give rise to a complaint, inquiry, or trading suspension by the Commission alleging
(i) a violation of the anti-fraud provisions of the federal securities laws, (ii) violations of the anti-touting provisions, (iii)
improper “gun-jumping; or (iv) promotion without proper disclosure of compensation.

 

(nn)    Tax Status. Except
for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect,
the Company (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax
returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and
(iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

(oo)     Seniority.
As of the Closing Date, other than as set forth on Schedule 3.1(oo), no Indebtedness or other claim against the Company
is senior to the Note in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other
than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered thereby) and
capital lease obligations (which is senior only as to the property covered thereby).

 

    	 	23 	 

    	 

    

 

(pp)     No “Off-balance
Sheet Arrangements”. Other than as set forth in Schedule 3.1(pp), neither the Company nor any of its Affiliates
is involved in any “Off-balance Sheet Arrangements”. For purposes hereof an “Off-balance Sheet Arrangement”
means any transaction or contract to which an entity unconsolidated with the Company or any of its Affiliates is a party and under
which either the Company or any such Affiliate has: (i) any obligation under a guarantee contract pursuant to which the Company
or any of its Affiliates could be required to make payments to the guaranteed party, including any standby letter of credit, market
value guarantee, performance guarantee, indemnification agreement, keep-well or other support agreement; (ii) any retained or contingent
interest in assets transferred to such unconsolidated entity that serves as credit, liquidity or market risk support to the entity
in respect of such assets; (iii) any variable interest held in such unconsolidated entity where such entity provides financing,
liquidity, market risk or credit risk support to, or engages in leasing, hedging or research and development services with the
Company of any of its Affiliates; and (iv) any liability or obligation of the same nature as those described in clauses (i) through
(iii) of this sentence even if of a different name (whether absolute, accrued, contingent or otherwise) that would not be required
to be reflected in the Company or any of its Affiliates’ financial statements.

 

(qq)    Money Laundering.
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable
money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving
the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary,
threatened.

 

(rr)      Subsidiary Rights.
The Company has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and
distributions on, all capital securities of each of its Subsidiaries as owned by the Company or any Subsidiary.

 

(ss)     Shell Company Status.
The Company has never been, and is not presently, an issuer identified as a Shell Company.

 

(tt)      Investor
Relations. Other than as set forth in Schedule 3.1(tt), the Company is not currently a party, nor does it intend to
become a party, to any agreement pursuant to which the Company will receive investor relations services. All such agreements have
been disclosed by the Company in its SEC Reports.

 

(uu)
   Reporting Requirements and General Instructions Form S-3. The Company is subject
to and in compliance in all material respects with the reporting requirements of Section 13 or Section 15(d), as applicable, of
the Exchange Act and is currently eligible to use Form S-3 pursuant to General Instructions I.A, I.B.3, and I.B.6. of Form S-3.

 

(vv)    Full
Disclosure. No representation or warranty by the Company in this Agreement and no statement contained in the Disclosure Schedules
to this Agreement or any certificate or other document furnished or to be furnished to the Purchasers pursuant to this Agreement
contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained
therein, in light of the circumstances in which they are made, not misleading.

 

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3.2        Representations
and Warranties of the Purchaser. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of
the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein in which case they shall
be accurate as of such date):

 

(a)       Organization;
Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by the Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser. Each Transaction
Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally; (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies; and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(b)       Own
Account. The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable
federal and state securities laws). The Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)       Purchaser
Status.  At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is, an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

(d)       Experience
of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

    	 	25 	 

    	 

    

 

(e)       General
Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

(f)       Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, executed any purchases
or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that the Purchaser
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing,
in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions
of the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of the Purchaser’s assets, the representation set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement. Other than to other Persons party to this Agreement, the Purchaser has maintained the confidentiality of all
disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby. 

 

ARTICLE
IV. 

OTHER
AGREEMENTS OF THE PARTIES 

 

		4.1	Transfer Restrictions.

 

(a)       The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, at the Company’s sole expense
in the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under
this Agreement.

 

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(b)       The
Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following
form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES. 

 

The
Company acknowledges and agrees that the Purchaser may from time to time pledge, pursuant to a bona fide margin agreement with
a registered broker-dealer, or grant a security interest in some or all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions
of this Agreement and, if required under the terms of such arrangement, the Purchaser may transfer pledged or secured Securities
to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of the Company and no
legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith.  Further,
no notice shall be required of such pledge.  At the Company’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer
of the Securities. 

 

(c)       Certificates
evidencing the Commitment Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while
a registration statement covering the resale of any such securities are effective under the Securities Act; (ii) following any
sale of such Commitment Shares pursuant to Rule 144; if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall upon
request of a Purchaser and at the Company’s sole expense cause its counsel (or at the Purchaser’s option, counsel selected
by the Purchaser) to issue a legal opinion reasonably satisfactory to the Company to the Transfer Agent promptly after any of the
events described in (i)-(iii) in the preceding sentence if required by the Transfer Agent to effect the removal of the legend hereunder
(with a copy to the applicable Purchaser and its broker). The Company agrees that following
such time as such legend is no longer required under this Section 4.1(c), it will, no later than 9:00 AM the next Trading Day following
the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Commitment Shares issued with a
restrictive legend (such Trading Day, the “Legend Removal Date”), instruct the Transfer Agent to deliver or
cause to be delivered to the Purchaser a certificate representing such shares of Common Stock that is free from all restrictive
and other legends.  The Company may not make any notation on its records or give instructions to the Transfer Agent that
enlarge the restrictions on transfer set forth in this Section 4.  Certificates for the Commitment Shares that are subject
to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s
prime broker with the Depository Trust Company System as directed by the Purchaser.

 

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(d)       In
addition to the Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, $1,000 per Trading Day for each Trading Day after the Legend Removal Date until such certificate
is delivered without a legend. Nothing herein shall limit the Purchaser’s right to pursue actual damages for the Company’s
failure to deliver certificates representing any Securities as required by the Transaction Documents, and the Purchaser shall have
the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief. 

 

4.2          Acknowledgment
of Dilution.  The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding
shares of Common Stock, which dilution may be substantial under certain market conditions.  The Company further acknowledges
that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Commitment Shares
pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay
or reduction, regardless of the effect of any such dilution or any claim the Company may have against the Purchaser and regardless
of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

 

		4.3	Furnishing of Information; Public Information.

 

(a)       For
as long as the Note or any portion thereof, is outstanding, the Company covenants to maintain the registration of the Common Stock
under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even
if the Company is not then subject to the reporting requirements of the Exchange Act.

 

    	 	28 	 

    	 

    

 

(b)       At
any time during the period commencing from the six (6)-month anniversary of the date hereof and ending at such time that all of
the Securities have been sold or may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and
otherwise without restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current
public information requirement under Rule 144(c) (a “Public Information Failure”) then, in addition to the Purchaser’s
other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by
reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of
the aggregate Subscription Amount of the Purchaser’s Securities on the day of a Public Information Failure and on every thirtieth
(30th) day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such
Public Information Failure is cured and (b) such time that such public information is no longer required  for the Purchaser
to transfer the Commitment Shares pursuant to Rule 144.  The payments to which a Purchaser shall be entitled pursuant to this
Section 4.3(b) are referred to herein as “Public Information Failure Payments”.  Public Information Failure Payments
shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments in a timely
manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months)
until paid in full. Nothing herein shall limit the Purchaser’s right to pursue actual damages for the Public Information
Failure, and the Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief. 

 

4.4          Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior
to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.5          Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that the
Purchaser is an “acquiring person” or such similar term under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchaser.

 

4.6          Material
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any of its subsidiaries, nor any other
Person acting on its behalf, will provide the Purchaser or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto such information is disclosed to the public, or the
Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.
The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

    	 	29 	 

    	 

    

 

4.7          Use
of Proceeds. The Company shall use the net proceeds as set forth in Schedule 4.7.

 

4.8          Indemnification
of Purchaser. Subject to the provisions of this Section 4.8, the Company will indemnify and hold the Purchaser and its directors,
officers, managers, shareholders, members, partners, employees, independent contractors and agents (and any other Persons with
a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person
who directly or indirectly controls or is controlled by the Purchaser (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), including all subsidiaries or affiliates thereof, and the directors, officers, managers, shareholders,
agents, members, partners, independent contractors or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlled or controlling persons (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any the Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of
the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents
or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any
stockholder of the Company who is not an Affiliate of the Purchaser Party, with respect to any of the transactions contemplated
by the Transaction Documents (unless such action is based upon a breach of the Purchaser Party’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings the Purchaser Party may have with any such stockholder
or any violations by such Purchaser Party of state or federal securities laws or any conduct by the Purchaser Party which constitutes
fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect
of which indemnity may be sought pursuant to this Agreement, the Purchaser Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the
Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of the Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion
of counsel, a material conflict on any material issue between the position of the Company and the position of the Purchaser Party,
in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (x) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (y) to the extent, but
only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by the Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or are incurred. The indemnification contained herein shall
be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities
the Company may be subject to pursuant to law.

 

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4.9          Listing
of Securities. The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare
and file with such Trading Market an additional shares listing application covering the Commitment Shares; (ii) take all steps
necessary to cause such Commitment Shares to be approved for listing or quotation on such Trading Market as soon as possible thereafter;
(iii) provide to the Purchasers evidence of such listing or quotation; and (iv) maintain the listing or quotation of such Common
Stock on any date. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository
Trust Company or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository
Trust Company or such other established clearing corporation in connection with such electronic transfer. 

  

4.10         Securities
Laws Disclosure; Publicity. The Company shall (a) as soon as reasonably practicable following the execution hereof, issue a
press release disclosing the material terms of the transactions contemplated hereby, and (b) by 9:00 a.m. (New York City time)
on the Trading Day immediately following the date hereof file a Current Report on Form 8-K, including the Transaction Documents
as exhibits thereto, with the Commission. From and after the issuance of such press release, the Company represents to the Purchaser
that it shall have publicly disclosed all material, non-public information delivered to any of the Purchaser by the Company or
any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents. The Company and the Purchaser shall consult with each other in issuing any other public
disclosure with respect to the transactions contemplated hereby, and neither the Company nor the Purchaser shall issue any such
public disclosure nor otherwise make any such public statement without the prior consent of the Company, with respect to any press
release of the Purchaser, or without the prior consent of the Purchaser, with respect to any press release of the Company, which
consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law or rules of the principal Trading
Market, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser, or include the
name of the Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent
of the Purchaser, except: (a) as required by federal securities law in connection with any registration statement contemplated
by this Agreement and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company
shall provide the Purchaser with prior notice of such disclosure permitted under this clause (b).

 

4.11        Form
D;. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof, promptly upon request of the Purchaser.

 

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4.12        Maintenance
of Registration Statement. For so long as any of the Commitment Shares remain owned by any Purchaser, the Company shall use
its best efforts to maintain the effectiveness of the Registration Statement for the issuance thereunder of the Commitment Shares,
the Company shall promptly amend the Registration Statement on such other form as may be necessary to maintain the effectiveness
of the Registration Statement for this purpose. If at any time following the date hereof the Registration Statement is not effective
or is not otherwise available for the issuance of the Commitment Shares or any prospectus contained therein is not available for
use, the Company shall immediately notify the Purchasers in writing that the Registration Statement is not then effective or a
prospectus contained therein is not available for use and thereafter shall promptly notify such holders when the Registration Statement
is effective again and available for the issuance of the Commitment Shares or such prospectus is again available for use.

 

ARTICLE
V. 

MISCELLANEOUS

 

5.1          Termination.
This Agreement may be terminated by the Purchaser, as to the Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchaser, by written notice to the other parties, if the Closing
has not been consummated on or before June 21, 2019; provided, however, that such termination will not affect the right of any
party to sue for any breach by any other party (or parties).

 

5.2          Fees
and Expenses.  The Company has agreed to bear all fees, disbursements, and expenses in connection with the transactions
contemplated herein, including, without limitation, the Company’s legal and accounting fees and disbursements, the costs
incident to the preparation, printing and distribution of any registration statement, filing fees and UCC fees. In addition, the
Company will reimburse the Purchaser for its reasonable out-of-pocket expenses, including legal fees and disbursements of its counsel
in connection with the purchase and sale of the Securities contemplated hereby; provided that such reimbursement obligation shall
not exceed $25,000. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day
processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties levied in connection with
the delivery of any Securities to the Purchasers. The Purchaser acknowledges that the Company is obligated to pay an advisory fee
of $50,000 to A.G.P./Alliance Global Partners in connection with this transaction.

 

5.3          Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties hereto with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties hereto acknowledge have been merged into such documents, exhibits
and schedules.

 

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5.4          Notices.
Any and all notices or other communications or deliveries to be provided by the Purchaser hereunder, shall be in writing and delivered
personally, by email or facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company at 201
Shipyard Way, Newport Beach, CA 92663, or such other address, facsimile number, or email address as the Company may specify for
such purposes by notice to the Purchaser delivered in accordance with this Section 5.4. Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by email or facsimile, or sent
by a nationally recognized overnight courier service addressed to each Purchaser at the email address, facsimile number, or address
of the Purchaser appearing on the books of the Company, or if no such email address, facsimile number, or address appears on the
books of the Company, at the principal place of business of such Purchaser. Any notice or other communication or deliveries hereunder
shall be deemed given and effective on the earliest (i) the date of transmission, if such notice or communication is delivered
via facsimile or email at the facsimile number or email address set forth on the signature pages attached hereto prior to 12:00
p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile or email at the facsimile number or email address set forth on the signature pages attached hereto on
a day that is not a Trading Day or later than 12:00 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the
party to whom such notice is required to be given.

 

5.5          Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers holding at least 50.1% in interest of the Note then outstanding or,
in the case of a waiver, by the party against whom enforcement of any such waived provision is sought, provided that if any amendment,
modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately
impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately,
materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations
of the other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any amendment effected in
accordance with accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

 

5.6          Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this Agreement to any Person to whom
the Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to
the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchaser”.

 

    	 	33 	 

    	 

    

 

5.8          No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.9.

 

5.9          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence
an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the
Company under Section 4.9, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

 

5.10          Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11          Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

    	 	34 	 

    	 

    

 

5.12       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13       Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever the Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then the Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights.

 

5.14       Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.15       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents
and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy
at law would be adequate.

 

5.16       Payment
Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    	 	35 	 

    	 

    

 

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

 

5.18       Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.19       Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

5.20       Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.21       WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

 

 

[Signature
Pages Follow] 

 

    	 	36 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

 

	DPW HOLDINGS, INC.	 	Address for Notice:
	 	 	 	 
	 	 	 	 
	By:	 	 	201 Shipyard Way
	
         

         
	Name: Milton C. Ault IIII

Title: Chief Executive Officer	 	
        Newport CA 92663

        Attention: Milton C. Ault IIII

        E-Mail:Todd@DPWHoldings.com

	With a copy to (which shall not constitute notice):	 	 
	Henry Nisser, Esq.

DPW Holdings, Inc.

100 Park Avenue, Suite 1658

New York, NY 10017

Henry@Dpwholdings.com

	 	 

 

With
respect to the provisions set forth in Section 1.2 hereof and the continuing enforceability of all Transaction Documents executed
in connection with the Old SPA:

 

	COOLISYS TECHNOLOGIES, INC.	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: Amos Kohn

Title:  Chief Executive Officer	 

 

 

	FLEXISPHERE ACQUISITION CORP.	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: Milton C. Ault III

Title:  Chief Executive Officer	 

 

 

	DIGITAL POWER CORPORATION	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: Amos Kohn

Title:  Chief Executive Officer	 

 

    	 	37 	 

    	 

    

 

	DIGITAL POWER LENDING, LLC	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: William Corbett

Title:  Manager	 

 

 

	POWER-PLUS TECHNICAL DISTRIBUTORS, LLC	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: Amos Kohn

Title:  Manager	 

 

 

	SUPER CRYPTO MINING, INC.	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name: Darren Magot

Title: Chief Executive Officer	 

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE
PAGE FOR PURCHASER FOLLOWS] 

 

    	 	38 	 

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO DPW HOLDINGS, INC. SECURITIES PURCHASE AGREEMENT] 

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 

 

	Name of Purchaser: 	 	 	 
	 	 	 	 
	Signature of Authorized Signatory of Purchaser: 	 	 
	  	 	 	 
	Name of Authorized Signatory: 	 	 
	Title of Authorized Signatory: 	 	 
	Email Address of Authorized Signatory: 	 	 
	Facsimile Number of Authorized Signatory: 	 	 
	 	 	 	 
	Address for Notice to Purchaser: 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

  

	Subscription Amount: 	$	 
	 	 	 
	 	 	 
	EIN Number: 	 	 

 

    	 	39 	 

    	 

    

 

SCHEDULE OF PURCHASERS

 

 

 

	(1)	(2)	(3)	(4)
	Purchaser	
        Principal Amount

        of

        Note
	Subscription 

Amount	Commitment 

Shares
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	 	40 	 

    	 

    

 

EXHIBIT
A

 

Form
of Senior Secured Promissory Note

 

    	 	41 	 

    	 

    

 

EXHIBIT B

 

 

Form
of Registration Rights Agreement

 

 

    	 	42 	 

    	 

    

 

EXHIBIT
C

 

 

Form of Ault & Co. Guarantee

 

 

    	 	43 	 

    	 

    

 

EXHIBIT D

  

 

DISCLOSURE SCHEDULES

(Securities Purchase Agreement) 

 

 

44Exhibit 10.2

 

GUARANTY

 

GUARANTY, dated as
of June 18, 2019 (this “Guaranty”), made by each of the signatories hereto (together with any other entity that
may become a party hereto as provided herein, the “Guarantors”), in favor of the purchasers signatory (together
with their permitted assigns, the “Purchasers”) to that certain Amended and Restated Securities Purchase Agreement,
dated as of the date hereof, between DPW Holdings, Inc., a Delaware corporation (the “Company”), and the Purchasers
(the “Purchase Agreement”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to
the Purchase Agreement, the Company has agreed to sell and issue to the Purchasers, and the Purchasers have agreed to purchase
from the Company, the Notes (as defined in the Purchase Agreement), subject to the terms and conditions set forth therein; and

 

WHEREAS, each Guarantor
will directly benefit from the extension of credit to the Company represented by the issuance of the Notes;

 

NOW, THEREFORE, in
consideration of the premises and to induce the Purchasers to enter into the Purchase Agreement and to carry out the transactions
contemplated thereby, each Guarantor hereby agrees with the Purchasers as follows:

 

1.            Definitions.
Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein shall have the meanings given to them
in the Purchase Agreement. The words “hereof,” “herein,” “hereto” and “hereunder”
and words of similar import when used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision
of this Guaranty, and Section and Schedule references are to this Guaranty unless otherwise specified. The meanings given to terms
defined herein shall be equally applicable to both the singular and plural forms of such terms. The following terms shall have
the following meanings:

 

“Guaranty”
means this Guaranty, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Obligations”
means, in addition to all other costs and expenses of collection incurred by Purchasers in enforcing any of such Obligations and/or
this Guaranty, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to
become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor to the Purchasers,
pursuant to this Guaranty, the Notes, that certain Security Agreement, dated as of May 15, 2018, by and among the Company and the
Purchasers (the “Security Agreement”) and any other instruments, agreements or other documents executed and/or
delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct
or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from
time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or
liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from any
of the Purchasers as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted,
extended or modified from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall
include, without limitation: (i) principal of, and interest on the Notes and the loans extended pursuant thereto; (ii) any and
all other fees, indemnities, costs, obligations and liabilities of the Company or any Guarantor from time to time under or in connection
with this Guaranty, the Notes, the Security Agreement and any other instruments, agreements or other documents executed and/or
delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect
of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company or any Guarantor.

 

    	 	 	 

    	 

    

 

2.         Guaranty.

 

(a)       Guaranty.

 

(i)        The
Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to the Purchasers and their respective successors,
endorsees, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations.

 

(ii)       Anything
herein or in any other Transaction Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Transaction Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable
federal and state laws, including laws relating to the insolvency of debtors, fraudulent conveyance or transfer or laws affecting
the rights of creditors generally (after giving effect to the right of contribution established in Section 2(b)).

 

(iii)      Each
Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guaranty contained in this Section 2 or affecting the rights and remedies of the Purchasers hereunder.

 

(iv)       The
guaranty contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations of each
Guarantor under the guaranty contained in this Section 2 shall have been satisfied by indefeasible payment in full.

 

(v)       No
payment made by the Company, any of the Guarantors, any other guarantor or any other Person or received or collected by the Purchasers
from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off
or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed
to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment
(other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected from such Guarantor
in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor hereunder until
the Obligations are indefeasibly paid in full.

 

(vi)       Notwithstanding
anything to the contrary in this Guaranty, with respect to any defaulted non-monetary Obligations the specific performance of which
by the Guarantors is not reasonably possible (e.g., the issuance of the Company’s Common Stock), the Guarantors shall
only be liable for making the Purchasers whole on a monetary basis for the Company’s failure to perform such Obligations
in accordance with the Transaction Documents.

 

    	 	 2	 

    	 

    

 

(b)       Right
of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that to the extent that a Guarantor shall have paid
more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution
from and against any other Guarantor hereunder which has not paid its proportionate share of such payment. Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2(c). The provisions of this Section 2(b) shall in
no respect limit the obligations and liabilities of any Guarantor to the Purchasers, and each Guarantor shall remain liable to
the Purchasers for the full amount guaranteed by such Guarantor hereunder.

 

(c)       No
Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor
by the Purchasers, no Guarantor shall be entitled to be subrogated to any of the rights of the Purchasers against the Company or
any other Guarantor or any collateral security or guaranty or right of offset held by the Purchasers for the payment of the Obligations,
nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing to the Purchasers by the Company on account of the
Obligations are indefeasibly paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at
any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for
the Purchasers, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Purchasers in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Purchasers, if required),
to be applied against the Obligations, whether matured or unmatured, in such order as the Purchasers may determine.

 

(d)       Amendments,
Etc. with Respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the
Obligations made by the Purchasers may be rescinded by the Purchasers and any of the Obligations continued, and the Obligations,
or the liability of any other Person upon or for any part thereof, or any collateral security or guaranty therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Purchasers, and the Purchase Agreement and the other Transaction Documents
and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Purchasers may deem advisable from time to time, and any collateral security, guaranty or right of offset
at any time held by the Purchasers for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.
The Purchasers shall have no obligation to protect, secure, perfect or insure any Lien at any time held by them as security for
the Obligations or for the guaranty contained in this Section 2 or any property subject thereto.

 

    	 	 3	 

    	 

    

 

(e)       Guaranty
Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by the Purchasers upon the guaranty contained in this Section 2 or acceptance
of the guaranty contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guaranty contained in this Section 2; and
all dealings between the Company and any of the Guarantors, on the one hand, and the Purchasers, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the guaranty contained in this Section 2. Each Guarantor
waives, to the extent permitted by law, diligence, presentment, protest, demand for payment and notice of default or nonpayment
to or upon the Company or any of the Guarantors with respect to the Obligations. Each Guarantor understands and agrees that the
guaranty contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment and performance
without regard to (i) the validity or enforceability of the Purchase Agreement or any other Transaction Document, any of the Obligations
or any other collateral security therefor or guaranty or right of offset with respect thereto at any time or from time to time
held by the Purchasers, (ii) any defense, set-off or counterclaim (other than a defense of payment or performance or fraud by Purchasers)
which may at any time be available to or be asserted by the Company or any other Person against the Purchasers, or (iii) any other
circumstance whatsoever (with or without notice to or knowledge of the Company or such Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Guarantor under the guaranty
contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against any Guarantor, the Purchasers may, but shall be under no obligation to, make a similar demand
on or otherwise pursue such rights and remedies as they may have against the Company, any other Guarantor or any other Person or
against any collateral security or guaranty for the Obligations or any right of offset with respect thereto, and any failure by
the Purchasers to make any such demand, to pursue such other rights or remedies or to collect any payments from the Company, any
other Guarantor or any other Person or to realize upon any such collateral security or guaranty or to exercise any such right of
offset, or any release of the Company, any other Guarantor or any other Person or any such collateral security, guaranty or right
of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of the Purchasers against any Guarantor. For the purposes
hereof, “demand” shall include the commencement and continuance of any legal proceedings.

 

(f)       Reinstatement.
The guaranty contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment,
or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Purchasers upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Company or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had not been made.

 

(g)       Payments.
Each Guarantor hereby guarantees that payments hereunder will be paid to the Purchasers without set-off or counterclaim in U.S.
dollars at the address set forth or referred to in the signature pages to the Purchase Agreement.

 

3.         Representations
and Warranties. Each Guarantor hereby makes the following representations and warranties to Purchasers as of the date hereof:

 

(a)       Organization
and Qualification. The Guarantor is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the applicable jurisdiction set forth on Schedule 3(a), with the requisite corporate power and authority
to own and use its properties and assets and to carry on its business as currently conducted. The Guarantor has no subsidiaries
other than those identified as such on the Disclosure Schedules to the Purchase Agreement. The Guarantor is duly qualified to do
business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing,
as the case may be, could not, individually or in the aggregate, (i) adversely affect the legality, validity or enforceability
of any of this Guaranty in any material respect, (ii) have a material adverse effect on the results of operations, assets, prospects,
or financial condition of the Guarantor or (iii) adversely impair in any material respect the Guarantor’s ability to perform
fully on a timely basis its obligations under this Guaranty (a “Material Adverse Effect”).

 

    	 	 4	 

    	 

    

 

(b)       Authorization;
Enforcement. The Guarantor has the requisite corporate or company power and authority to enter into and to consummate the transactions
contemplated by this Guaranty, and otherwise to carry out its obligations hereunder. The execution and delivery of this Guaranty
by the Guarantor and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of the Guarantor. This Guaranty has been duly executed and delivered by the Guarantor and constitutes
the valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application.

 

(c)       No
Conflicts. The execution, delivery and performance of this Guaranty by the Guarantor and the consummation by the Guarantor
of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of its certificate or articles
of incorporation, operating agreement, bylaws or other organizational documents, or (ii) conflict with, constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Guarantor is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Guarantor is subject (including federal and state securities laws and regulations), or by which any material
property or asset of the Guarantor is bound or affected, except in the case of each of clauses (ii) and (iii), such conflicts,
defaults, terminations, amendments, accelerations, cancellations and violations as could not, individually or in the aggregate,
have or result in a Material Adverse Effect. The business of the Guarantor is not being conducted in violation of any law, ordinance
or regulation of any governmental authority, except for violations which, individually or in the aggregate, do not have a Material
Adverse Effect.

 

(d)       Consents
and Approvals. The Guarantor is not required to obtain any consent, waiver, authorization or order of, or make any filing or
registration with, any court or other federal, state, local, foreign or other governmental authority or other Person in connection
with the execution, delivery and performance by the Guarantor of this Guaranty.

 

(e)       Purchase
Agreement. The representations and warranties of the Company set forth in the Purchase Agreement as they relate to such Guarantor,
each of which is hereby incorporated herein by reference, are true and correct as of each time such representations are deemed
to be made pursuant to such Purchase Agreement, and the Purchasers shall be entitled to rely on each of them as if they were fully
set forth herein, provided that each reference in each such representation and warranty to the Company’s knowledge shall,
for the purposes of this Section 3, be deemed to be a reference to such Guarantor’s knowledge.

 

(f)       Foreign
Law. Each Guarantor has consulted with appropriate foreign legal counsel with respect to any of the above representations for
which non-U.S. law is applicable. As applicable, such foreign counsel has advised each applicable Guarantor that such counsel knows
of no reason why any of the above representations would not be true and accurate. Such foreign counsel was provided with copies
of this Guaranty and the Transaction Documents prior to rendering its advice, as applicable.

 

4.         Covenants.

 

(a)       Each
Guarantor covenants and agrees with the Purchasers that, from and after the date of this Guaranty until the Obligations shall have
been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each commercially
reasonable action that is necessary to be taken or not taken, as the case may be, so that no Event of Default (as defined in the
Notes) is caused by the failure to take such action or to refrain from taking such action by such Guarantor.

 

    	 	 5	 

    	 

    

 

(b)       So
long as any of the Obligations are outstanding, unless Purchasers holding at least 50.1% of the aggregate principal amount of the
then outstanding Notes shall otherwise consent in writing, each Guarantor will not directly or indirectly on or after the date
of this Guaranty:

 

(i)       enter
into, create, incur, assume or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to, a
guaranty, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income
or profits therefrom;

 

(ii)       enter
into, create, incur, assume or suffer to exist any liens of any kind, on or with respect to any of its property or assets now owned
or hereafter acquired or any interest therein or any income or profits therefrom except for Permitted Liens (as defined in the
Security Agreement);

 

(iii)       amend
its certificate or articles of incorporation, bylaws, operating agreement or other organizational documents so as to adversely
affect any rights of any Purchaser;

 

(iv)       repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its securities or debt
obligations;

 

(v)     
 pay cash dividends on any equity securities of the Company;

 

(vi)       except
with the consent of Purchasers holding at least 50.1% of the aggregate principal amount of the then outstanding Notes, which consent
shall not be unreasonably withheld, enter into any transaction with any Affiliate of the Guarantor which would be required to be
disclosed in any public filing of the Company with the Commission, unless such transaction is made on an arm’s-length basis
and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required
for approval of the board of directors of the Company); or

 

(vii)      enter
into any agreement with respect to any of the foregoing.

 

Notwithstanding
the foregoing, Section 4(b)(vi) above shall not apply to transactions between the Guarantor and the Company, provided that the
Guarantor provides written notice of any such transaction to the Purchasers no later the time of closing of any such transaction.

 

5.         Miscellaneous.

 

(a)       Amendments
in Writing. None of the terms or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except
in writing by the Purchasers.

 

(b)     
 Notices. All notices, requests and demands to or upon the Purchasers or any Guarantor hereunder shall be effected
in the manner provided for in the Purchase Agreement, provided that any such notice, request or demand to or upon any Guarantor
shall be addressed to such Guarantor at its notice address set forth on Schedule 5(b). 

 

    	 	 6	 

    	 

    

 

(c)       No
Waiver by Course of Conduct; Cumulative Remedies. The Purchasers shall not by any act (except by a written instrument pursuant
to Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default under the Transaction Documents, including any Event of Default (as defined in the Notes). No failure to exercise,
nor any delay in exercising, on the part of the Purchasers, any right, power or privilege hereunder shall operate as a waiver thereof.
No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by the Purchasers of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Purchasers would otherwise have on any future occasion. The rights
and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law.

 

(d)       Enforcement
Expenses; Indemnification.

 

(i)        Each
Guarantor agrees to pay, or reimburse the Purchasers for, all its reasonable costs and expenses incurred in collecting against
such Guarantor under the guaranty contained in Section 2 or otherwise enforcing or preserving any rights under this Guaranty and
the other Transaction Documents to which such Guarantor is a party, including, without limitation, the reasonable fees and disbursements
of counsel to the Purchasers.

 

(ii)       Each
Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable in connection
with any of the transactions contemplated by this Guaranty.

 

(iii)      Each
Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Guaranty to the extent the Company would be required to do so pursuant to the
Purchase Agreement.

 

(iv)      The
agreements in this Section 5(d) shall survive repayment of the Obligations and all other amounts payable under the Purchase Agreement
and the other Transaction Documents.

 

(e)       Successor
and Assigns. This Guaranty shall be binding upon the successors and assigns of each Guarantor and shall inure to the benefit
of the Purchasers and their respective successors and assigns; provided that no Guarantor may assign, transfer or delegate any
of its rights or obligations under this Guaranty without the prior written consent of the Purchasers.

 

    	 	 7	 

    	 

    

 

(f)        Set-Off.
Each Guarantor hereby irrevocably authorizes the Purchasers at any time and from time to time while an Event of Default (as defined
in the Notes) or other default under any of the Transaction Documents shall have occurred and be continuing, without notice to
such Guarantor or any other Guarantor, any such notice being expressly waived by each Guarantor, to set off and appropriate and
apply any and all deposits, credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute
or contingent, matured or unmatured, at any time held or owing by the Purchasers to or for the credit or the account of such Guarantor,
or any part thereof in such amounts as the Purchasers may elect, against and on account of the obligations and liabilities of such
Guarantor to the Purchasers hereunder and claims of every nature and description of the Purchasers against such Guarantor, in any
currency, whether arising hereunder, under the Purchase Agreement, any other Transaction Document or otherwise, as the Purchasers
may elect, whether or not the Purchasers have made any demand for payment and although such obligations, liabilities and claims
may be contingent or unmatured. The Purchasers shall notify such Guarantor promptly of any such set-off and the application made
by the Purchasers of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Purchasers under this Section 5(f) are in addition to other rights and remedies (including,
without limitation, other rights of set-off) which the Purchasers may have.

 

(g)       Counterparts.
This Guaranty may be executed by two or more of the parties to this Guaranty on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

(h)       Severability.
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

(i)        Section
Headings. The section headings used in this Guaranty are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

(j)        Integration.
This Guaranty and the other Transaction Documents represent the agreement of the Guarantors and the Purchasers with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Purchasers
relative to the subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction Documents.

 

(k)       Governing
Laws. All questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each of the Company and the Guarantors agree that all proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Guaranty (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York, Borough of Manhattan. Each of the Company and each Guarantor hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Guaranty or the transactions contemplated hereby.

 

    	 	 8	 

    	 

    

 

(l)         Acknowledgements.
Each Guarantor hereby acknowledges that:

 

(i)        it
has been advised by counsel in the negotiation, execution and delivery of this Guaranty and the other Transaction Documents to
which it is a party;

 

(ii)      the
Purchasers have no fiduciary relationship with or duty to any Guarantor arising out of or in connection with this Guaranty or any
of the other Transaction Documents, and the relationship between the Guarantors, on the one hand, and the Purchasers, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(iii)       no
joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Guarantors and the Purchasers.

 

(m)       Additional
Guarantors. The Company shall cause each of its subsidiaries formed or acquired on or subsequent to the date hereof to become
a Guarantor for all purposes of this Guaranty by executing and delivering an Assumption Agreement in the form of Annex 1
attached hereto..

 

(n)      
 Release of Guarantors. Each Guarantor will be released from all liability hereunder concurrently with the indefeasible
repayment in full of all amounts owed under the Purchase Agreement, the Notes and the other Transaction Documents.

 

(o)      
 Seniority. The Obligations of each of the Guarantors hereunder rank senior in priority to any other Indebtedness (as
defined in the Purchase Agreement) of such Guarantor.

 

(p)        WAIVER
OF JURY TRIAL. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY AND FOR ANY COUNTERCLAIM THEREIN.

 

*********************

 

(Signature Pages Follow)

 

    	 	 9	 

    	 

    

 

IN WITNESS WHEREOF,
each of the undersigned has caused this Guaranty to be duly executed and delivered as of the date first above written.

 

	 	AULT & COMPANY, INC.
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Milton C. Ault, III
	 	Name:      	Milton C. Ault
	 	Title: 	Chief Executive Officer

 

 

 

Consented and agreed to:

 

DPW HOLDINGS, INC.

 

 

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

 

    	 	 10	 

    	 

    

  

ANNEX 1 TO

 

GUARANTY

 

ASSUMPTION AGREEMENT, dated as of _____,
______, made by_________________, a __________ [corporation] (the “Additional Guarantor”), in favor of the Purchasers,
as defined in the Guaranty referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them
in such Purchase Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, DPW
Holdings, Inc., a Delaware corporation (the “Company”), and the Purchasers have entered into a Securities
Purchase Agreement, dated as of June [_], 2019 (as amended, supplemented or otherwise modified from time to time, the
“Purchase Agreement”);

 

WHEREAS, in connection
with the Purchase Agreement, Ault & Company, Inc. has entered into the Guaranty, dated as of June [_], 2019 (as amended, supplemented
or otherwise modified from time to time, the “Guaranty”), in favor of the Purchasers;

 

WHEREAS, the Guaranty
requires the Additional Guarantor to become a party to the Guaranty; and

 

WHEREAS, the Additional
Guarantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guaranty;

 

NOW, THEREFORE, IT IS AGREED:

 

1.       Guaranty.
By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 5(m) of the Guaranty, hereby
becomes a party to the Guaranty as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor
and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Guarantor
thereunder. The information set forth in Annex 1 hereto is hereby added to the information set forth in the Disclosure Schedules
to the Guaranty. The Additional Guarantor hereby represents and warrants that each of the representations and warranties contained
in Section 3 of the Guaranty is true and correct on and as the date hereof as to such Additional Guarantor (after giving effect
to this Assumption Agreement) as if made on and as of such date.

 

2.       Governing
Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

 

IN WITNESS WHEREOF, the undersigned has
caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 

	 	[ADDITIONAL GUARANTOR]
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 

 

    	 	 	 

    	 

    

 

ANNEX 1 TO ASSUMPTION AGREEMENT

 

DISCLOSURE SCHEDULES

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