Document:

Exhibit 4.3

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE
TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144
OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS SECURED CONVERTIBLE PROMISSORY
NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS SECURED CONVERTIBLE PROMISSORY NOTE, INCLUDING SECTIONS 3(c)(iii) AND 15(a) HEREOF.
THE PRINCIPAL AMOUNT REPRESENTED BY THIS SECURED CONVERTIBLE PROMISSORY NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION
HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS SECURED CONVERTIBLE PROMISSORY
NOTE.

 

DPW HOLDINGS, INC.

SECURED CONVERTIBLE PROMISSORY NOTE
DUE JULY 15, 2019

 

 

	Issuance Date: April 15, 2019	Principal Amount: $______________             

 

FOR VALUE RECEIVED,
DPW Holdings, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of __________,
or its registered assigns (“Holder”) the amount set forth above as the original principal amount (the “Principal”)
when due, whether upon July 15, 2019 (the “Maturity Date”), or upon acceleration, prepayment or otherwise (in
each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal
at the applicable Interest Rate (as defined below) from the date set forth above as the Issuance Date (the “Issuance Date”)
until the same becomes due and payable, whether upon the Maturity Date or upon acceleration, conversion, prepayment or otherwise
(in each case in accordance with the terms hereof). This Secured Convertible Promissory Note (this “Note”) is
issued to the Holder as of the Issuance Date by the Company. Certain capitalized terms used herein are defined in Section 28. The
Company acknowledges and agrees that the exchange of this Note for a New Note (as defined in the Exchange Agreement) issued January
23, 2019, did not involve the payment of, or giving of a commission, or other remuneration, directly or indirectly, in connection
with, the exchange and that the exchange was exempt from registration under Section 3(a)(9) of the 1933 Act. In addition, the Company
acknowledges and agrees that the exchange of the New Note for the Secured Promissory Note issued August 16, 2018, as amended on
November 29, 2018, did not involve the payment of, or giving of a commission, or other remuneration, directly or indirectly, in
connection with, the exchange and that the exchange was exempt from registration under Section 3(a)(9) of the 1933 Act. Accordingly,
the Company shall at all times agree that the holding period of this Note tacks back to August 16, 2018 for purposes of Rule 144
under the 1933 Act.

 

    	 

    	 

    

 

1.       PAYMENTS
OF PRINCIPAL.

 

On the Maturity
Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest. Other than as specifically permitted by this Note, the Company
may not prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal
and Interest, if any.

 

2.       INTEREST;
INTEREST RATE.

 

(a)       Interest
on this Note shall commence accruing on the April 15, 2019 at 8% per annum subject to adjustment in accordance with the terms of
this Section 2 (the “Interest Rate”), shall be calculated on the basis of a 360-day year and twelve 30-day months,
compounded daily, and shall be payable by the Company to the Holder, in cash, within seven (7) days of the end of each calendar
quarter while this Note remains outstanding (each, a “Scheduled Interest Payment Date”). All accrued and unpaid
Interest not otherwise paid on a Scheduled Interest Payment Date shall be due on the Maturity Date as set forth in Section 1 hereof.

 

(b)       From
and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased
to 18.0% per annum or the highest amount permitted by law, shall compounded daily, and shall be due and payable on the first Trading
Day of each calendar month during the continuance of such Event of Default (a “Default Interest Payment Date”).
In the event that such Event of Default is subsequently cured (and no other Event of Default then exists (including, without limitation,
for the Company’s failure to pay such Interest at the Default Rate on the applicable Default Interest Payment Date), the
adjustment referred to in the preceding sentence shall cease to be effective as of the day immediately following the date of such
cure; provided that the Interest as calculated and unpaid at such increased rate during the continuance of such Event of Default
shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through and including
the date of such cure of such Event of Default.

 

3.       CONVERSION
OF NOTES. At any time after the Issuance Date, this Note shall be convertible into validly issued, fully paid and non-assessable
shares of Common Stock (as defined below), on the terms and conditions set forth in this Section 3.

 

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(a)       Conversion
Right. Subject to the provisions of Section 3(d), at any time following the Issuance Date, the Holder shall be entitled to
convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable
shares of Common Stock in accordance with Section 3(b), at the Conversion Rate (as defined below). The Company shall not issue
any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share
of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall
pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses
of the Transfer Agent (as defined below)) that may be payable with respect to the issuance and delivery of Common Stock upon conversion
of any Conversion Amount.

 

(b)       Conversion
Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall
be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i)       “Conversion
Amount” means the sum of (x) portion of the Principal to be converted, prepaid or otherwise with respect to which this
determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued
and unpaid Late Charges with respect to such portion of such Principal and such Interest, if any.

 

(ii)       “Conversion
Price” means, as of any Conversion Date: (1) if no Event of Default (as defined herein) has occurred, the greater of
$0.12; or (B) 80% of the lowest daily VWAP in the three Trading Days prior to the Conversion Date, provided, that if either (y)
the Company is not DWAC eligible at the time of conversion or (z) the Common Stock is traded on the OTC Pink at the time of conversion,
then the 80% referred to in this Section 3(b)(ii) shall automatically adjust to 70% of the lowest Closing Sale Price of the Common
Stock during the 20 consecutive Trading Day period ending and including the date of delivery or deemed delivery of the applicable
Conversion Notice, subject in each case to equitable adjustments resulting from any stock splits, stock dividends, combinations,
recapitalizations or similar events. The Company shall issue irrevocable instructions to its Transfer Agent regarding conversions
such that the transfer agent shall be authorized and instructed to issue shares of Common Stock upon its receipt of a Conversion
Notice without further approval or authorization from the Company. Notwithstanding the foregoing or anything contained herein to
the contrary, in no event shall the Conversion Price be greater than $0.40, subject to adjustment for stock dividends, stock splits,
combinations and similar events.

 

(c)       Mechanics
of Conversion.

 

(i)       Optional
Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall deliver to the Company (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59
p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the
“Conversion Notice”). If required pursuant to Section 3(c)(iii) hereof, within two Trading Days following a
conversion of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service
for delivery to the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction
as contemplated by Section 15(b)). On or before the first Trading Day following the date of receipt of a Conversion Notice, the
Company shall transmit by facsimile or

 

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electronic mail an acknowledgment of confirmation and representation as to whether such
shares of Common Stock may then be resold pursuant to Rule 144 or an effective and available registration statement, in the form
attached hereto as Exhibit II, of receipt of such Conversion Notice to the Holder and the Transfer Agent which confirmation
shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On
or before the second Trading Day following the date on which the Company has received a Conversion Notice (or such earlier date
as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the
applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice) (the “Share Delivery
Deadline”), the Company shall (1) provided that the Transfer Agent is participating in the DTC Fast Automated Securities
Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled pursuant to such
conversion to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system
or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, upon the request of the
Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled
pursuant to such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding
Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as
soon as practicable and in no event later than two Trading Days after receipt of this Note and at its own expense, issue and deliver
to the Holder (or its designee) a new Note (in accordance with Section 15(d)) representing the outstanding Principal not converted.
The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for
all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date. Notwithstanding anything to
the contrary contained in this Note, after the effective date of a registration statement registering the resale of the shares
of Common Stock issuable upon a conversion of this Note and prior to the Holder’s receipt of a notice that such registration
statement is not available with respect thereto, the Company shall cause the Transfer Agent to deliver unlegended shares of Common
Stock to the Holder (or its designee) in connection with any sale of shares of Common Stock issuable upon a conversion of this
Note with respect to which the Holder has entered into a contract for sale, and delivered a copy of the prospectus included as
part of the particular registration statement to the extent applicable, and for which the Holder has not yet settled.

 

(ii)       Company’s
Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share
Delivery Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, to issue and
deliver to the Holder (or its designee) a certificate for the number of shares of Common Stock to which the Holder is entitled
and register such shares of Common Stock on the Company’s share register or, if the Transfer Agent is participating in the
DTC Fast Automated Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with
DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of this Note (as
the case may be) (a “Conversion Failure”), then, in addition to all other remedies available to the Holder,
(1) the Company shall pay in cash to the Holder on each day after such Share Delivery Deadline that the issuance of such shares
of Common Stock is not timely effected an amount equal to 2% of the product of (A) the sum of the

 

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number of shares of Common Stock
not issued to the Holder on or prior to the Share Delivery Deadline and to which the Holder is entitled, multiplied by (B) any
trading price of the Common Stock selected by the Holder in writing as in effect at any time during the period beginning on the
applicable Conversion Date and ending on the applicable Share Delivery Deadline and (2) the Holder, upon written notice to the
Company, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion of this Note
that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect
the Company’s obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section
3(c)(ii) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Deadline, if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver to the Holder
(or its designee) a certificate and register such shares of Common Stock on the Company’s share register or, if the Transfer
Agent is participating in the DTC Fast Automated Securities Transfer Program, the Transfer Agent shall fail to credit the balance
account of the Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is entitled
upon the Holder’s conversion hereunder or pursuant to the Company’s obligation pursuant to clause (II) below, and if
on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock
corresponding to all or any portion of the number of shares of Common Stock issuable upon such conversion that the Holder is entitled
to receive from the Company and has not received from the Company in connection with such Conversion Failure or Notice Failure,
as applicable (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall,
within two Trading Days after receipt of the Holder’s request and in the Holder’s discretion, either: (I) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or
on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and
deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s
designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its
obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit
the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common
Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common Stock multiplied
by (y) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable
Conversion Notice and ending on the date of such issuance and payment under this clause (II) (the “Buy-In Payment Amount”).
Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the conversion
of this Note as required pursuant to the terms hereof.

 

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(iii)       Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and
addresses of the Holder of the Note and the principal amount of the Note (the “Registered Note”). The entries
in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holder or holders of
the Note shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without
limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. The Registered
Note may be assigned, transferred or sold in whole or in part only by registration of such assignment or sale on the Register.
Upon its receipt of a written request to assign, transfer or sell all or part of the Registered Note by the holder thereof, the
Company shall record the information contained therein in the Register and issue one or more new Registered Notes in the same aggregate
principal amount as the principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to
Section 15, provided that if the Company does not so record an assignment, transfer or sale (as the case may be) of all or
part of any Registered Note within two Trading Days of such a request, then the Register shall be automatically deemed updated
to reflect such assignment, transfer or sale (as the case may be). Notwithstanding anything to the contrary set forth in this Section 3,
following conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Company unless (A) the full Conversion Amount represented by this Note is being converted (in which
event this Note shall be delivered to the Company following conversion thereof) or (B) the Holder has provided the Company with
prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender
of this Note. The Holder and the Company shall maintain records showing the Principal, Interest and Late Charges converted and/or
paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. If
the Company does not update the Register to record such Principal, Interest and Late Charges converted and/or paid (as the case
may be) and the dates of such conversions, and/or payments (as the case may be) within two Trading Days of such occurrence, then
the Register shall be automatically deemed updated to reflect such occurrence.

 

(d)       Limitations
on Conversions. The Company shall not effect the conversion of any portion of the Note and the Holder shall not have the right
to convert any portion of the Note and any such conversion shall be null and void and treated as if never made, to the extent that
after giving effect to such conversion, the Holder would beneficially own in excess of 9.99% of the shares of Common Stock outstanding
immediately after giving effect to such conversion (the “Maximum Percentage”) (which provision may be waived
by the Holder by written notice from the Holder to the Company, which notice shall be effective 61 days after the date of such
notice). For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder
shall include the number of shares of Common Stock held by the Holder plus the number of shares of Common Stock issuable upon conversion
of the Note and all other Convertible Securities with respect to which the determination of such sentence is being made subject
to a limitation on conversion or exercise analogous to the limitation contained in this Section 3(d). For purposes of this Section
3(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock the Holder may acquire upon the conversion of the Note without exceeding the Maximum
Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most
recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form

 

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8-K or other public filing with the Securities
and Exchange Commission (the “SEC”), as the case may be, (y) a more recent public announcement by the Company
or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock
outstanding (the “Reported Outstanding Share Number”). If the Company receives a Notice of Conversion from the
Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number,
the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that
such Notice of Conversion would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section
3(d), to exceed the Maximum Percentage, the Company must notify the Holder of a reduced number of shares of Common Stock to be
purchased pursuant to such Notice of Conversion. For any reason at any time, upon the written or oral request of the Holder, the
Company shall within one Trading Day confirm orally and in writing or by electronic mail to the Holder the number of shares of
Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Company, including such Note, by the Holder since the date as of which the Reported
Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon conversion of
such portion of the Note results in the Holder being deemed to beneficially own, in the aggregate, more than the Maximum Percentage
of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act and Rule 13b-3 thereunder),
the number of conversion shares so issued by which the Holder’s beneficial ownership exceeds the Maximum Percentage (the
“Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have
the power to vote, sell, or to transfer the Excess Shares. For purposes of clarity, the shares of Common Stock issuable to the
Holder pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the
Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert
the Note pursuant to this Section 3(d) shall have any effect on the applicability of the provisions of this Section 3(d) with respect
to any subsequent determination of convertibility. The provisions of this Section 3(d) shall be construed and implemented in a
manner otherwise than in strict conformity with the terms of this Section 3(d) to the extent necessary to correct any portion of
this Section 3(d) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section
3(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The provisions of this
Section 3(d) shall be of no further force or effect if the Holder participates in a subsequent transaction with the Company and
acquires Common Stock and/or securities convertible into Common Stock which do not contain a beneficial ownership limitation. In
such event, the Maximum Percentage limitation shall be (i) deemed modified to be identical to any limitation on beneficial ownership
contained in the subsequent transaction or (ii) eliminated if there is no such limitation on beneficial ownership.

 

4.       RIGHTS
UPON EVENT OF DEFAULT.

 

(a)       Event
of Default. Each of the following events shall constitute an “Event of Default”:

 

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(i)       the
suspension (or threatened suspension) from trading or the failure (or threatened failure) of the Common Stock to be trading or
listed (as applicable) on a Principal Market for a period of five consecutive Trading Days. For the avoidance of doubt, the delisting
of the Common Stock from the NYSE American shall be an event of Default;

 

(ii)       the
Company’s or any Subsidiary’s default under this Note or the other Transaction Documents, including a failure to pay
to the Holder any amount of Principal, Interest, Late Charges or other amounts when and as due under this Note, the other Transaction
Documents or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated
hereby and thereby, except, in the case of a failure to pay Interest and Late Charges when and as due, subject to a cure period
of ten (10) Trading Days;

 

(iii)       the
Company fails to remove any restrictive legend on any certificate for any shares of Common Stock issued to the Holder pursuant
to the Agreement or any other Transaction Document as and when required by the Agreement, unless otherwise then prohibited by applicable
federal securities laws, and any such failure remains uncured for at least ten (10) Trading Days;

 

(iv)       bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within 30 days of their initiation;

 

(v)       the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or
any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts
generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action
or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under
federal, state or foreign law;

 

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(vi)       the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or
insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition
of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order,
judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order,
judgment or other similar document unstayed and in effect for a period of 10 consecutive days;

 

(vii)       other
than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches any representation
or warranty in any material respect (other than representations or warranties subject to materiality limitations, which may not
be breached in any respect) or any covenant or other term or condition of this Note or any other Transaction Document, except,
in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period
of ten (10) consecutive Trading Days;

 

(viii)       a
false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event
of Default has occurred, subject to a cure period of ten (10) Trading Days;

 

(ix)       any
Material Adverse Effect occurs and remains uncured for a period of ten (10) Trading Days;

 

(x)       any
provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof) cease
to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having
jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary
shall deny in writing that it has any liability or obligation purported to be created under any Transaction Document, subject to
a cure period of ten (10) Trading Days;

 

(xi)       the
Company fails to file any reports required under the 1934 Act, subject to a cure period of ten (10) Trading Days.

 

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(b)       Notice
of an Event of Default; Holder Right to Compel Prepayment upon Event of Default. Upon the occurrence of an Event of Default
with respect to this Note, the Company shall within one Trading Day deliver written notice thereof via facsimile or electronic
mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to the Holder.
At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event
of Default and ending (such ending date, the “Event of Default Right Expiration Date”) on the 20th
Trading Day after the later of (x) the date such Event of Default is cured and (y) the Holder’s receipt of an Event of Default
Notice that includes (I) a reasonable description of the applicable Event of Default, (II) a certification as to whether, in the
opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable description of any existing
plans of the Company to cure such Event of Default and (III) a certification as to the date the Event of Default occurred and,
if cured on or prior to the date of such Event of Default Notice, the applicable Event of Default Right Expiration Date, the Holder
may require the Company to prepay (regardless of whether such Event of Default has been cured on or prior to the Event of Default
Right Expiration Date) all or any portion of this Note by delivering written notice thereof (the “Event of Default Prepayment
Notice”) to the Company, which Event of Default Prepayment Notice shall indicate the portion of this Note the Holder
is electing to have prepaid. Each portion of this Note (which may include all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest) subject to prepayment by the Company pursuant to this Section
4(b) shall be prepaid by the Company at a price equal to the product of: (i) the portion of this Note being prepaid; multiplied
by (ii) the Prepayment Premium. To the extent prepayments required by this Section 4(b) are deemed or determined by a court of
competent jurisdiction to be prepayments of this Note by the Company, such prepayments shall be deemed to be voluntary prepayments.
In the event of the Company’s prepayment of any portion of this Note under this Section 4(b), the Holder’s damages
would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty
of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Prepayment Premium due under
this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss
of its investment opportunity and not as a penalty. Any prepayment upon an Event of Default shall not constitute an election of
remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.

 

5.       RIGHTS
UPON CHANGE OF CONTROL. The Company shall not enter into or consummate a transaction constituting a Change of Control unless:
(i) No sooner than 20 Trading Days nor later than 10 Trading Days prior to the consummation of a Change of Control, but not prior
to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile or electronic
mail and overnight courier to the Holder; (ii) the Successor Entity assumes in writing all of the obligations of the Company
under this Note and the other Transaction Documents in accordance with the provisions of this Section 5 pursuant to written agreements
in form and substance satisfactory to the Holder and approved by the Holder prior to such Change of Control, including agreements
to deliver to each holder of the Note in exchange for such Note a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to the Note, including, without limitation, having a principal amount and interest
rate equal to the principal amounts then outstanding and the interest rates of the Note held by such holder, having similar conversion
rights as the Note and having similar ranking and security to the Note, and satisfactory to the Holder and (iii) the Successor
Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on
a Principal Market. Upon the occurrence of any Change of Control, the Successor Entity shall succeed to, and be substituted for
(so that from and after the effective date of such Change of Control, the provisions of this Note and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations

 

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of the Company under this Note and the other Transaction Documents with the
same effect as if such Successor Entity had been named as the Company herein. Upon consummation of a Change of Control, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or prepayment of this Note at any time
after the consummation of such Change of Control, in lieu of the shares of Common Stock (or other securities, cash, assets or other
property (except such items still issuable under Sections 6 and 15, which shall continue to be receivable thereafter) issuable
upon the conversion or prepayment of the Note prior to such Change of Control, such shares of the publicly-traded common stock
(or their equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive
upon the happening of such Change of Control had this Note been converted immediately prior to such Change of Control (without
regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of this Note. Notwithstanding
the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 5 to
permit the Change of Control to occur without the assumption of this Note. The provisions of this Section 5 shall apply similarly
and equally to successive transactions constituting a Change of Control and shall be applied without regard to any limitations
on the conversion of this Note.

 

6.       RIGHTS
UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

 

(a)       Purchase
Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially
all of the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note immediately prior
to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right
would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled
to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such excess)
and such Purchase Right to such extent shall be held in abeyance (and, if such Purchase Right has an expiration date, maturity
date or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable) for the benefit
of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right
granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance (and, if
such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such number
of days held in abeyance, if applicable)) to the same extent as if there had been no such limitation).

 

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(b)       Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect
to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to ensure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option
(i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder
would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon
the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of
this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets
received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as
the Holder would have been entitled to receive had this Note initially been issued with conversion rights for the form of such
consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion
Rate. Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Holder. The provisions
of this Section 6 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations
on the conversion or prepayment of this Note.

 

7.       RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.

 

(a)       Adjustment
of Conversion Price upon Issuance of Common Stock. If and whenever on or after January 23, 2019 the Company issues or sells,
or in accordance with this Section 7(a) is deemed to have issued or sold, any shares of Common Stock (including the issuance or
sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded Securities issued
or sold or deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”) less
than a price equal to the Conversion Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such
Conversion Price then in effect is referred to herein as the “Applicable Price”) (the foregoing, a “Dilutive
Issuance”), then, immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an
amount equal to the New Issuance Price. For all purposes of the foregoing (including, without limitation, determining the adjusted
Conversion Price and the New Issuance Price under this Section 7(a)), the following shall be applicable:

 

(i)       Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of
Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such

 

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Option for such price per share. For purposes of this Section 7(a)(i), the “lowest price per
share for which one share of Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise
or exchange of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof”
shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to any one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion,
exercise or exchange of any Convertible Security issuable upon exercise of such Option or otherwise pursuant to the terms thereof
and (y) the lowest exercise price set forth in such Option for which one share of Common Stock is issuable (or may become issuable
assuming all possible market conditions) upon the exercise of any such Options or upon conversion, exercise or exchange of any
Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof, minus (2) the sum
of all amounts paid or payable to the holder of such Option (or any other Person) upon the granting or sale of such Option, upon
exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option
or otherwise pursuant to the terms thereof plus the value of any other consideration received or receivable by, or benefit conferred
on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment of the Conversion Price
shall be made upon the actual issuance of such share of Common Stock or of such Convertible Securities upon the exercise of such
Options or otherwise pursuant to the terms thereof or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

 

(ii)       Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange thereof or otherwise
pursuant to the terms thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding
and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price
per share. For the purposes of this Section 7(a)(ii), the “lowest price per share for which one share of Common Stock is
at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof” shall
be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or
exchange of such Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest conversion price set forth
in such Convertible Security for which one share of Common Stock is issuable (or may become issuable assuming all possible market
conditions) upon conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof minus (2) the sum of all amounts
paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance or sale of such Convertible
Security plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Convertible
Security (or any other Person). Except as contemplated below, no further adjustment of the Conversion Price shall be made upon
the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities or otherwise
pursuant to the terms thereof, and if any such issuance or sale of such Convertible Securities is made upon exercise of any Options
for which adjustment of the Conversion Price has been or is to be made pursuant to other provisions of this Section 7(a), except
as contemplated below, no further adjustment of the Conversion Price shall be made by reason of such issuance or sale.

 

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(iii)       Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for shares of Common Stock decreases at any time (other than proportional
changes in conversion or exercise prices, as applicable, in connection with an event referred to in Section 7(b) below), the Conversion
Price in effect at the time of such decrease shall be adjusted to the Conversion Price which would have been in effect at such
time had such Options or Convertible Securities provided for such decreased purchase price, additional consideration or decreased
conversion rate (as the case may be) at the time initially granted, issued or sold. For purposes of this Section 7(a)(iii), if
the terms of any Option or Convertible Security that was outstanding as of the Issuance Date are decreased in the manner described
in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable
upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such decrease. No adjustment
pursuant to this Section 7(a) shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

 

(iv)       Calculation
of Consideration Received. If any Option and/or Convertible Security and/or Adjustment Right is issued in connection with the
issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the “Primary
Security”, and such Option and/or Convertible Security and/or Adjustment Right, the “Secondary Securities”),
together comprising one integrated transaction (or one or more transactions if such issuances or sales or deemed issuances or sales
of securities of the Company either (A) have at least one investor or purchaser in common, (B) are consummated in reasonable proximity
to each other and/or (C) are consummated under the same plan of financing), the aggregate consideration per share of Common Stock
with respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest price per share for which
one share of Common Stock was issued (or was deemed to be issued pursuant to Section 7(a)(i) or 7(a)(ii) above, as applicable)
in such integrated transaction solely with respect to such Primary Security, minus (y) with respect to such Secondary Securities,
the sum of (I) the Black Scholes Consideration Value of each such Option, if any, (II) the fair market value (as determined by
the Holder in good faith) or the Black Scholes Consideration Value, as applicable, of such Adjustment Right, if any, and (III)
the fair market value (as determined by the Holder) of such Convertible Security, if any, in each case, as determined on a per

 

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share basis in accordance with this Section 7(a)(iv). If any shares of Common Stock, Options or Convertible Securities are issued
or sold or deemed to have been issued or sold for cash, the consideration received therefor (for the purpose of determining the
consideration paid for such Common Stock, Option or Convertible Security, but not for the purpose of the calculation of the Black
Scholes Consideration Value) will be deemed to be the net amount of consideration received by the Company therefor. If any shares
of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration
received by the Company (for the purpose of determining the consideration paid for such Common Stock, Option or Convertible Security,
but not for the purpose of the calculation of the Black Scholes Consideration Value) will be the fair value of such consideration,
except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the
Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five Trading Days immediately
preceding the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor
(for the purpose of determining the consideration paid for such Common Stock, Option or Convertible Security, but not for the purpose
of the calculation of the Black Scholes Consideration Value) will be deemed to be the fair value of such portion of the net assets
and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities (as
the case may be). The fair value of any consideration other than cash or publicly traded securities will be determined jointly
by the Company and the Holder. If such parties are unable to reach agreement within 10 days after the occurrence of an event requiring
valuation (the “Valuation Event”), the fair value of such consideration will be determined within five Trading
Days after the 10th day following such Valuation Event by an independent, reputable appraiser jointly selected by the
Company and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and
the fees and expenses of such appraiser shall be borne by the Company.

 

(v)       Record
Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for
or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the
issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the
making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be).

 

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(b)       Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section 7(a) or Section
7(d), if the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization
or other similar transaction) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision
of Section 7(a) or Section 7(d), if the Company at any time on or after the Issuance Date combines (by any reverse stock
split, or stock combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately
increased. Any adjustment pursuant to this Section 7(b) shall become effective immediately after the effective date of such subdivision
or combination. If any event requiring an adjustment under this Section 7(b) occurs during the period that a Conversion Price is
calculated hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

(c)       Holder’s
Right of Adjusted Conversion Price. In addition to and not in limitation of the other provisions of this Section 7, if the
Company in any manner issues or sells or enters into any agreement to issue or sell, any Common Stock, Options or Convertible Securities
(any such securities, “Variable Price Securities”), after the Issuance Date that are issuable pursuant to such
agreement or convertible into or exchangeable or exercisable for shares of Common Stock at a price which varies or may vary with
the market price of the shares of Common Stock, including by way of one or more reset(s) to a fixed price, but exclusive of such
formulations reflecting customary anti-dilution provisions (such as share splits, share combinations, share dividends and similar
transactions) (each of the formulations for such variable price being herein referred to as, the “Variable Price”),
the Company shall provide written notice thereof via facsimile or email and overnight courier to the Holder on the date of such
agreement and the issuance of such Convertible Securities or Options. From and after the date the Company enters into such agreement
or issues any such Variable Price Securities, the Holder shall have the right, but not the obligation, in its sole discretion to
substitute the Variable Price for the Conversion Price upon conversion of this Note by designating in the Conversion Notice delivered
upon any conversion of this Note that solely for purposes of such conversion the Holder is relying on the Variable Price rather
than the Conversion Price then in effect. The Holder’s election to rely on a Variable Price for a particular conversion of
this Note shall not obligate the Holder to rely on a Variable Price for any future conversion of this Note.

 

(d)       Other
Events. In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are not strictly
applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated
by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting
of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Conversion Price so as to protect the rights of the
Holder, provided that no such adjustment pursuant to this Section 7(d) will increase the Conversion Price as otherwise determined
pursuant to this Section 7, provided further that if the Holder does not accept such adjustments as appropriately protecting its
interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith,
upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination
shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.

 

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(e)       Calculations.
All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held
by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)       Voluntary
Adjustment by Company. The Company may at any time during the term of this Note, with the prior written consent of the Holder,
reduce the then current Conversion Price of the Note to any amount and for any period of time deemed appropriate by the board of
directors of the Company.

 

8.       NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s Certificate of Incorporation
or other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action
as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other
provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any shares
of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the conversion of this Note. Notwithstanding anything herein to the contrary, if after the 60 day anniversary
of the Issuance Date, the Holder is not permitted to convert this Note in full for any reason (other than pursuant to restrictions
set forth in Section 3(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including, without limitation,
obtaining such consents or approvals as necessary to permit such conversion into shares of Common Stock.

 

9.       RESERVATION
OF AUTHORIZED SHARES.

 

(a)       Reservation.
So long as the Note remains outstanding, the Company shall at all times reserve 40 million shares of its Common Stock, subject
to adjustment for stock splits, stock dividends, combinations and similar events, and less the number of shares of Common Stock
issued to the Holder under the Exchange Agreement between the Company and the Holder dated January 23, 2019 (the “Required
Reserve Amount”).

 

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(b)       Insufficient
Authorized Shares. If, notwithstanding Section 9(a), and not in limitation thereof, at any time while any of the Note remains
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation
to reserve for issuance upon conversion of the Note at least a number of shares of Common Stock equal to the Required Reserve Amount
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the
Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for the portion of the Note then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than 60 days after the occurrence of such
Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of
authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement
and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its board of directors to recommend to the stockholders that they approve such proposal. In the event that the Company
is prohibited from issuing shares of Common Stock pursuant to the terms of this Note due to the failure by the Company to have
sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number
of shares of Common Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares
to the Holder, the Company shall pay cash in exchange for the prepayment of such portion of the Conversion Amount convertible into
such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and
(y) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date the Holder
delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company and ending on the date
of such issuance and payment under this Section 9(b); and (ii) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorized Failure Shares, any brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.

 

10.       RESERVED

 

11.       COVENANTS.
Until all of the principal amount of and accrued but unpaid interest under Note has been repaid, prepaid or otherwise satisfied
in accordance with their terms:

 

(a)       Rank.
All payments due under this Note (a) shall rank senior to all other notes of the Company issued prior to the Closing Date and (b)
shall be senior to all other Indebtedness of the Company and its Subsidiaries, except as provided on Schedule 11(a).

 

(b)       Incurrence
of Indebtedness. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
incur or guarantee, assume or suffer to exist any Indebtedness (other than Permitted Indebtedness or as provided on Schedule
11(b).

 

(c)       Existence
of Liens. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, allow
or suffer to exist any mortgage, lien, pledge, charge, security interest, deed of trust, or other encumbrance upon or in any property
or assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively, “Liens”)
other than Permitted Liens, except as provided on Schedule 11(c).

 

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(d)       Restricted
Payments. Except as set forth on Schedule 11(d), the Company shall not, and the Company shall cause each of its Subsidiaries
to not, directly or indirectly, prepay, defease, repurchase, repay or make any payments in respect of, by the payment of cash or
cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise),
all or any portion of any Indebtedness (other than the Note) whether by way of payment in respect of principal of (or premium,
if any) or interest on, such Indebtedness if at the time such payment is due or is otherwise made or, after giving effect to such
payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an event that with the passage of
time and without being cured would constitute an Event of Default has occurred and is continuing.

 

(e)       Restriction
on Prepayment and Cash Dividends. Other than with respect to its 10% Series A Cumulative Redeemable Perpetual Preferred Stock,
the Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, prepay, repurchase
or declare or pay any cash dividend on any of its capital stock.

 

(f)       Preservation
of Existence, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its
existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified
and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary.

 

(g)       Maintenance
of Properties, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all
of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases
to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

(h)       Maintenance
of Intellectual Property. The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable
to maintain all of the rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service
names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor of the Company and/or any
of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.

 

(i)       Maintenance
of Insurance. The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such
amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is
carried generally in accordance with sound business practice by companies in similar businesses similarly situated.

 

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12.       DISTRIBUTION
OF ASSETS. In addition to any adjustments pursuant to Section 7, if the Company shall declare or make any dividend or other
distributions of its assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return
of capital or otherwise (including without limitation, any distribution of cash, stock or other securities, property or Options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(the “Distributions”), then the Holder will be entitled to such Distributions as if the Holder had held the
number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations
or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at the greater of
(a) the Conversion Price or (b) 80% of the lowest daily VWAP after the Closing Date) on the date immediately prior to the date
on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Common
Stock are to be determined for such Distributions (provided, however, that to the extent that the Holder’s right to participate
in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the
Holder shall not be entitled to participate in such Distribution to the extent of the Maximum Percentage (and shall not be entitled
to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the extent
of any such excess) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time
or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such
initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such
limitation).

 

13.       AMENDING
THE TERMS OF THIS NOTE. The prior written consent of the Holder shall be required for any change, waiver or amendment to this
Note. Any change, waiver or amendment so approved shall be binding upon all existing and future holders of this Note; provided,
however, that no such change, waiver or, as applied to the Note held by any particular holder of the Note, shall, without the written
consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest, or extend
the Maturity Date, of the Note, (ii) disproportionally and adversely affect any rights under the Note of any holder of any other
portion of the Note; or (iii) modify any of the provisions of, or impair the right of any holder of the Note under this Section
13.

 

14.       TRANSFER.
This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by the
Holder without the consent of the Company except to an Affiliate of the Holder. In connection with any sale of Common Stock issued
upon conversion of this Note, the Holder may execute and deliver to the Company a customary Rule 144 representation letter in a
form acceptable to the Holder in the Holder’s sole discretion.

 

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15.       REISSUANCE
OF THIS NOTE.

 

(a)       Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section 15(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred,
a new Note (in accordance with Section15(d)) to the Holder representing the outstanding Principal not being transferred. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following
conversion or prepayment of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal
stated on the face of this Note.

 

(b)       Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice
as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company
in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note (in accordance with Section 15(d)) representing the outstanding Principal.

 

(c)       Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 15(d) and in principal amounts of at least $1,000) representing
in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d)       Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 15(a) or Section 15(c), the Principal designated by the Holder which
does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of a new Note), (iii) shall
have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall
have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges on the Principal
and Interest of this Note, from the Issuance Date.

 

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16.       REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The
Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm
the Company’s compliance with the terms and conditions of this Note (including, without limitation, compliance with Section
7).

 

17.       PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay
the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly
acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price
paid for this Note was less than the original Principal amount hereof.

 

18.       CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed
against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed
to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Note
instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references are to sections
of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have
the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing
by the Holder.

 

19.       FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and
signed by an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 19
shall permit any waiver of any provision of Section 3(d).

 

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20.       DISPUTE
RESOLUTION.

 

(a)       Submission
to Dispute Resolution.

 

(i)       In
the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, a Black-Scholes Consideration
Value, a VWAP or a fair market value or the arithmetic calculation of a Conversion Rate, or the applicable Prepayment Price (as
the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company
or the Holder (as the case may be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the Company,
within two Trading Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder at any time
after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly
resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, such Redemption Conversion
Price, such Black-Scholes Consideration Value, such VWAP or such fair market value, or the arithmetic calculation of such Conversion
Rate or such applicable Prepayment Price (as the case may be), at any time after the second Trading Day following such initial
notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then
the Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

(ii)       The
Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in
accordance with the first sentence of this Section 20 and (B) written documentation supporting its position with respect to such
dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth Trading Day immediately following the date on which
the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the
immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment
bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation
that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by
both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled
to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other
than the Required Dispute Documentation).

 

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(iii)       The
Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and
the Holder of such resolution no later than 10 Trading Days immediately following the Dispute Submission Deadline. The fees and
expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute
shall be final and binding upon all parties absent manifest error.

 

(b)       Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 20 constitutes an agreement to arbitrate between the Company
and the Holder (and constitutes an arbitration agreement) under the New York  Civil
Practice Law and Rules, as amended, (ii) a dispute relating to a Conversion Price includes, without limitation, disputes
as to (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section 7(a), (B) the consideration
per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or sale or deemed issuance
or sale of Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities, (D) whether an agreement, instrument,
security or the like constitutes and Option or Convertible Security and (E) whether a Dilutive Issuance occurred, (iii) the terms
of this Note and each other applicable Transaction Document shall serve as the basis for the selected investment bank’s resolution
of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations
and the like that such investment bank determines are required to be made by such investment bank in connection with its resolution
of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the
terms of this Note and any other applicable Transaction Documents, (iv) the Holder (and only the Holder), in its sole discretion,
shall have the right to submit any dispute described in this Section 20 to any state or federal court sitting in New York County,
New York in lieu of utilizing the procedures set forth in this Section 20 and (v) nothing in this Section 20 shall limit the Holder
from obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters described
in this Section 20).

 

21.NOTICES.Whenever
notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in writing with an
e-mail copy to the last address provided by the Holder or its agents in writing to the Company. The Company shall provide the Holder
with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such action
and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the Holder
(i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation
of such adjustment and (ii) at least 15 days prior to the date on which the Company closes its books or takes a record (A) with
respect to any dividend or distribution upon the Common Stock, (B) with respect to any grant, issuances, or sales of any Options,
Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock
or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each
case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the
Holder.

 

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22.       
CANCELLATION. After all Principal, accrued Interest, Late Charges and other amounts at any time owed on this Note have been
paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall
not be reissued.

 

23.       WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

24.       GOVERNING
LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Except as otherwise required by Section
20 above, the Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York
County, New York, 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 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 brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate
to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect
on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed to limit,
any provision of Section 20. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

25.       SEVERABILITY.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

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26.       MAXIMUM
PAYMENTS. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed
by the Company to the Holder and thus refunded to the Company.

 

27.       CERTAIN
DEFINITIONS. For purposes of this Note, the following words and terms shall have the following meanings:

 

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

 

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

 

(c)       “Adjustment
Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance
or sale (or deemed issuance or sale in accordance with Section 7) of shares of Common Stock (other than rights of the type described
in Section 6(a) hereof) that could result in a decrease in the net consideration received by the Company in connection with, or
with respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar rights).

 

(d)       “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(e)       
“Approved Stock Plan” means any employee benefit plan which has been approved by the board of directors of the
Company prior to or subsequent to the Issuance Date pursuant to which shares of Common Stock and standard Options to purchase Common
Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such.

 

(f)       “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

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(g)       “Black
Scholes Consideration Value” means the value of the applicable Option, Convertible Security or Adjustment Right (as the
case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common Stock on the Trading
Day immediately preceding the public announcement of the execution of definitive documents with respect to the issuance of such
Option, Convertible Security or Adjustment Right (as the case may be), (ii) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the remaining term of such Option, Convertible Security or Adjustment Right (as the case may
be) as of the date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be), (iii) a zero cost
of borrow and (iv) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the “HVT”
function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the
date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be).

 

(h)       “Bloomberg”
means Bloomberg, L.P., or any successor.

 

(i)       
“Change of Control” means any Fundamental Transaction other than (i) any merger of the Company or any of its,
direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization
or reclassification of the shares of Common Stock in which holders of the Company’s voting power immediately prior to such
reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to
hold publicly traded securities and, directly or indirectly, are, in all material respects, the holders of the voting power of
the surviving entity (or entities with the authority or voting power to elect the members of the board of directors (or their
equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification,
(iii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company
or any of its Subsidiaries, or (iv) a reorganization or other change in the composition in the Company’s board of directors.

 

(j)       “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
by OTC Markets Group Inc. If the closing bid price or the closing sale price cannot be calculated for a security on a particular
date on any of the foregoing bases, the closing bid price or the closing sale price (as the case may be) of such security on such
date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in
Section 20. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations,
recapitalizations or other similar transactions during such period.

 

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(k)       “Closing
Date” shall mean the date the Company initially issued the Note.

 

(l)       “Common
Stock” means (i) the Company’s shares of Class A common stock, $0.001 par value per share, and (ii) any capital
stock into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(m)       “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(n)       “Current
Subsidiary” means any Person in which the Company on the Issuance Date, directly or indirectly, (i) owns any of the outstanding
capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business,
operations or administration of such Person, and all of the foregoing, collectively, “Current Subsidiaries”.

 

(o)       
“Exchange Agreement” means that certain Exchange Agreement, dated as of January 23, 2019, by and between the
Company and the Holder.

 

(p)       “Excluded
Securities” means (i) shares of Common Stock or standard Options to purchase Common Stock issued to directors, officers
or employees of the Company for services rendered to the Company in their capacity as such pursuant to an Approved Stock Plan (as
defined above), provided that (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of
such Options) after the Issuance Date pursuant to this clause (i) do not, in the aggregate, exceed more than 10% of the Common
Stock issued and outstanding immediately prior to the Issuance Date and (B) the exercise price of any such Options is not lowered,
none of such Options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any
such Options are otherwise materially changed in any manner that adversely affects the Holder; (ii) shares of Common Stock issued
upon the conversion or exercise of Convertible Securities (other than standard Options to purchase Common Stock issued pursuant
to an Approved Stock Plan that are covered by clause (i) above) issued prior to the Issuance Date, provided that the conversion
price of any such Convertible Securities (other than standard Options to purchase Common Stock issued pursuant to an Approved Stock
Plan that are covered by clause (i) above) is not lowered, none of such Convertible Securities (other than standard Options to
purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are amended to increase the
number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard
Options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise
materially changed in any manner that adversely affects the Holder; and (iii) the shares of Common Stock issuable upon conversion
of the Note or otherwise pursuant to the terms of the Note; provided, that the terms of the Note are not amended, modified or changed
on or after the Issuance Date (other than antidilution adjustments pursuant to the terms thereof in effect as of the Issuance Date).

 

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(q)       “Fundamental
Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or
otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving
corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of
the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation
S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be
subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange
offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding
shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated
with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number
of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party
to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934
Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with
one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least
50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any
shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party
to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock
such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least
50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company
shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow
any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as
defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance,
tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock,
(y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such
Subject Entities as of the date of this Note calculated as if any shares of Common Stock held by all such Subject Entities were
not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common
Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger
or other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without approval of
the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one
or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to
circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

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(r)       “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(s)       “Group”
means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(t)       
“Indebtedness” means (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance
with GAAP) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement
or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced
by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness
(even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession
or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP,
consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses
(A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even
though the Person that owns such assets or property has not assumed or become liable for the payment of such indebtedness, and
(H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through
(G) above; and “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent
or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary
purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee
of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with,
or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

    	30

    	 

    

 

(u)       “Late
Charge” means any amount of Principal or other amounts due under the Transaction Documents which is not paid when due
which shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at
the rate of 18% per annum from the date such amount was due until the same is paid in full.

 

(v)       “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a
whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments
to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries
to perform any of their respective obligations under any of the Transaction Documents (as defined below). As of the date hereof
and as of the Closing Date, the Company has no Subsidiaries.

 

(w)       “Maturity
Date” shall mean the date listed in the preamble hereto as the Maturity Date; provided, however, the Maturity Date may
be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and
be continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result
in an Event of Default or (ii) through the date that is 20 Trading Days after the consummation of a Fundamental Transaction in
the event that a Fundamental Transaction is publicly announced or a Change of Control Notice is delivered prior to the Maturity
Date, provided further that if a Holder elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion
Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as
such provision shall not limit the conversion of this Note.

 

(x)       “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Issuance Date, directly
or indirectly, (i) owns or acquires any of the outstanding capital stock or holds any equity or similar interest of such Person
or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing,
collectively, “New Subsidiaries”.

 

(y)       “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

    	31

    	 

    

 

(z)       “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(aa)“Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note, (ii) Indebtedness set forth on Schedule 2.12 of the
Exchange Agreement, as in effect as of the Issuance Date and (iii) Indebtedness secured by Permitted Liens or unsecured but as
described in clauses (iv) and (v) of the definition of Permitted Liens.

 

(bb)“Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the ordinary course of business
with respect to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings,
(iv) Liens (A) upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price
of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B)
existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment, in either case, with respect to Indebtedness in an aggregate amount
not to exceed $50,000, (v) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured
by Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited
to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced
does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom
duties in connection with the importation of goods, and (vii) Liens arising from judgments, decrees or attachments in circumstances
not constituting an Event of Default under Section 4(a).

 

(cc)“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(dd)“Prepayment
Premium” means 110%.

 

(ee)“Principal
Market” means any of The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select
Market, the Nasdaq Global Market, the OTCQB, the OTCQX, the OTC Pink or any other market operated by the OTC Markets Group Inc.
or any successors of any of these exchanges or markets.

 

(ff)
“Security Agreement” means that certain Security Agreement, dated as of [l],
by and among the Holder, the Company, and the Company’s Subsidiaries, which secures the obligations of the Company under
this Note and the other Transaction Documents.

 

    	32

    	 

    

 

(gg)“Subsidiaries”
means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing,
individually, a “Subsidiary.”

 

(hh)“Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(ii)       “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(jj)“Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in
writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock, any
day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(kk)“Transaction
Documents” means this Note, the Exchange Agreement, the Security Agreement and any other documents relating to the issuance
of this Note by the Company to the Holder.

 

(ll)“VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or,
if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded) during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m.,
New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest Closing Bid Price and the lowest closing ask price of any of the market makers for such security as reported by
OTC Markets Group Inc. If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP
of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company
and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance
with the procedures in Section 20. All such determinations shall be appropriately adjusted for any stock dividend, stock split,
stock combination, recapitalization or other similar transaction during such period.

 

    	33

    	 

    

 

28.       DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries, the Company shall within one Trading Day after any such receipt or delivery publicly disclose such
material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to
the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries. If the Company or any of its Subsidiaries provides material non-public information to the Holder that
is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material non-public information,
the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, Affiliates or agents with respect to, or a duty to any of the foregoing
not to trade on the basis of, such material non-public information.

 

[signature page follows]

 

    	34

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

 

	 	DPW HOLDINGS, INC.

	 
	 	 	 
	 	 	 
	 	By:		 
	 	 	 	 
	 	Name:	
        Milton C. Ault, III

        
	 
	 	 	 	 
	 	Title:	Chief Executive Officer	 

  

    	 	 35	 

    	 

    

 

EXHIBIT
I

 

DPW HOLDINGS, INC.

CONVERSION NOTICE

 

 

Reference is made to
the Secured Convertible Promissory Note (the “Note”) issued to the undersigned by DPW Holdings, Inc., a Delaware
corporation (the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert
the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Class A Common Stock, $0.001 par value
per share (the “Common Stock”), of the Company, as of the date specified below. Capitalized terms not defined
herein shall have the meaning as set forth in the Note.

 

 

	Date of 

Conversion:	 
	 	 
	Aggregate Principal to be converted:	 
	 	 
	Aggregate accrued and unpaid Interest and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest to be converted:	 
	 	 
	AGGREGATE CONVERSION 

AMOUNT

 TO BE CONVERTED:	 
	 
	Please confirm the following information:
	 	 
	Conversion Price:	 
	 	 
	Number of shares of Common 

Stock to be issued:	 
	 
	 
	
        Please issue the Common Stock into which
        the Note is being converted to Holder, or for its benefit, as follows:

        

	 
	☐       Check
        here if requesting delivery as a certificate to the following name and to the following address:
	 	 
	Issue to:	 
	 	 
	 	 
	 	 
	☐       Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:
	 
	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account 

Number:	 
	 	 	 	 	 	 	 

  

	
        Date: _____________________ __, 

         

        _________________________________

Name of Registered Holder

         

         

         
	 
	
        By: __________________________

        Name:

        Title:

        

         

        Tax ID:_____________________

         

        Facsimile:___________________

         

        E-mail Address: 

        

 

    	 	 1	 

    	 

    

 

EXHIBIT II

 

ACKNOWLEDGMENT

 

The Company hereby
(a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not]
eligible to be resold by the Holder either (i) pursuant to Rule 144 (subject to the Holder’s execution and delivery to the
Company of a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs
_________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions
dated _____________, 20__ from the Company and acknowledged and agreed to by ________________________.

 

 

 

	 	DPW HOLDINGS, INC.

	 
	 	 	 
	 	 	 
	 	By:		 
	 	 	 	 
	 	Name:	
        

        
	 
	 	 	 	 
	 	Title:		 

 

 

1Exhibit 10.1

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT (the “Agreement”)
is made as of January 23, 2019 (the “Effective Date”), by and between DPW Holdings, Inc., a Delaware corporation (the
“Company”) and ________________, a Delaware limited partnership (the “Investor”).

 

WHEREAS, a dispute has arisen between
the Investor and the Company with respect to two loans made by the Investor to the Company as evidenced by that certain Original
Issue Discount Promissory Note issued by the Company for the benefit of Investor on October 10, 2018 (“Note 1”) and
that certain Secured Promissory Note issued by the Company for the benefit of Investor on August 16, 2018 as amended on November
29, 2018 (“Note 2”, and together with Note 1, the “Notes”);

 

WHEREAS, subject to the satisfaction
of the conditions set forth herein, the Company and the Investor desire to enter into a transaction wherein the Company shall issue
the Investor the New Notes in the principal amounts of $650,973.56 (Note 1) and $392,825.47 (Note 2) (as reduced pursuant to the
terms hereof pursuant to prepayment or otherwise, the “Principal”), in the form attached hereto as Exhibit A
and Exhibit B, in exchange for each of the Notes.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.           Exchange;
Forbearance. The closing of the Exchange (the “Closing”) will occur on or before January 31, 2019 (or such later
date as the parties hereto may agree in writing) following the satisfaction or waiver of the conditions set forth herein (such
date, the “Closing Date”). Pending the Closing up to and through 5:00 pm Eastern Standard time on January 31, 2019,
the Investor shall take no action to enforce its rights under the Notes. On the Closing Date, subject to the terms and conditions
of this Agreement, the Investor and the Company shall exchange the Notes for the New Notes. At the Closing, the following transactions
shall occur (such transactions in this Section 1, the “Exchange”):

 

1.1.        On
the Closing Date, the Company shall issue the New Notes to the Investor. Promptly after the Closing Date, but in no event more
than one Trading Day after the Closing Date, the Company shall deliver an executed original New Notes to the Investor. On the Closing
Date, the Investor shall be deemed for all purposes to have become the holder of record of the New Notes, irrespective of the date
the Company delivers the New Notes to the Investor. Upon receipt of the executed original of the New Notes in accordance with this
Section 1.1, all of the Investor’s rights under the Notes shall be extinguished (including, without limitation, the rights
to receive, as applicable, any premium, make-whole amount, accrued and unpaid interest or dividends thereon or any other shares
of the Common Stock of the Company with respect thereto).

 

1.2.        In
addition to the delivery of the New Notes, on the Closing Date the Company and the Investor shall execute and/or deliver the Security
Agreement (as hereinafter defined), the Escrow Agreement and such other documents and agreements as are customary and reasonably
necessary to effectuate the Exchange (the “Ancillary Agreements”).

 

    	 	1	 

     

    

 

1.3.        If
the Closing has not occurred on or prior to January 31, 2019, the Investor shall have the right, by delivery of written notice
to the Company, to deem the Notes to be in default, with the result that the Company shall be obligated to deliver, within three
(3) Trading Days to the Investor 300,000 restricted shares of the Company’s Common Stock. Notwithstanding any provision in
this Agreement to the contrary, these 300,000 shares shall not be deemed to reduce any sums due under the Notes. The Company acknowledges
and agrees that the Notes are enforceable and binding obligations of the Company, subject to the terms of this Agreement.

 

1.4.        It
shall be a condition to the obligation of the Investor, on the one hand, and the Company, on the other hand, to consummate the
Exchange contemplated hereunder that the other party’s representations and warranties contained herein are true and correct
on the Closing Date with the same effect as though made on such date, unless waived in writing by the party to whom such representations
and warranties are made.

 

2.           Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that:

 

2.1         Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
The Company is not in violation nor default of any of the provisions of its certificate of incorporation, bylaws or other organizational
or charter documents. The Company 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,
and no claim, action or proceeding of any kind has been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification.

 

2.2         Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal,
valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except
as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. The execution, delivery and performance by the Company of this Agreement and the Ancillary Agreements and
the consummation by the Company of the transactions contemplated hereby and thereby will not: (i) conflict with, or 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 Company is a party
or by which it is bound; or (ii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities or “blue sky” laws) applicable to the Company, provided Exchange Approval (as hereinafter defined)
is obtained in a timely manner.

 

    	 	2	 

     

    

 

2.3         Valid
Issuance of the New Note. The New Notes when issued and delivered in accordance with the terms of this Agreement, for the consideration
expressed herein, and the Common Stock when issued in accordance with the terms of this

Agreement will be duly and validly issued, fully paid and non-assessable. 

 

2.4         Issuance
of Common Stock. Upon the issuance of any Common Stock pursuant to the terms of this Agreement and the New Notes, the Common
stock shall be freely tradable and issued under the Company’s Form S-3 (File No. 333-222132) (the “Shelf S-3”).

 

2.5         Reservation
of Common Stock.

 

2.5.1       So
long as the New Notes remains outstanding, the Company shall reserve 40 million shares of Common Stock (the “Required Reserve
Amount”) to be issued to the Investor in accordance with Section 6 hereof.

 

2.5.2       If,
notwithstanding Section 2.5.1, and not in limitation thereof, at any time while the New Notes remain outstanding the Company does
not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve 40 million
shares of its Common Stock for issuance pursuant to the terms of this Agreement, (an “Authorized Share Failure”), then
the Company shall as practicable as possible take all action necessary to increase the Company’s authorized shares of Common
Stock or effectuate a reverse split of the Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an
Authorized Share Failure, but in no event later than 60 days after the occurrence of such Authorized Share Failure, the Company
shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In
connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts
to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal. In the event that the Company is prohibited from issuing shares
of Common Stock pursuant to the terms of this Agreement due to the failure by the Company to have sufficient shares of Common Stock
available out of the authorized but unissued shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorized
Failure Shares”), in lieu of delivering such Authorized Failure Shares to the Investor, the Company shall pay to the Investor,
in cash, an amount equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the greatest Closing
Sale Price of the Common Stock on any Trading Day during the period commencing on the date the Investor delivers the applicable
Issuance Notice with respect to such Authorized Failure Shares to the Company and ending on the date of such issuance and payment
under this Section 2.5.2; and (ii) to the extent the Investor purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Investor of Authorized Failure Shares, any brokerage commissions and other
out-of-pocket expenses, if any, of the Investor incurred in connection therewith.

 

2.6         Compliance
With Laws. The Company has complied in all material respects with all laws, rules, and regulations applicable to it and its
business, and the Company has not received notice of any such violation. 

 

    	 	3	 

     

    

 

2.7         Consents;
Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any person or entity, not already
obtained, other than Exchange Approval, is required in connection with the execution and delivery of this Agreement by the Company
or the consummation by the Company of the transactions provided for herein and therein.

 

2.8         Acknowledgment
Regarding Investor’s Purchase of Common Stock and the New Notes. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and Exchange and the transactions
contemplated hereby and thereby and that the Investor is not: (i) an officer or director of the Company; (ii) an “affiliate”
of the Company (as defined in Rule 144 promulgated under the Securities Act); or (iii) to the knowledge of the Company, a “beneficial
owner” of 4.99% or more of the shares of Common Stock (as defined for purposes of Rule 13d-3 under the Securities Exchange
Act of 1934 (the “Exchange Act”). The Company further acknowledges that the Investor is not acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to the Exchange, this Agreement, any Ancillary Agreement,
any other document or agreement delivered in connection herewith or therewith or the transactions contemplated hereby and thereby,
and any advice given by the Investor or any of its representatives or agents in connection with the Exchange, this Agreement, any
Ancillary Agreement, any other document or agreement delivered in connection herewith or therewith or the transactions contemplated
hereby and thereby is merely incidental to the Investor’s acceptance of the New Notes and Common Stock issuable under this
Agreement. The Company further represents to the Investor that the Company’s decision to enter into the Exchange has been
based solely on the independent evaluation by the Company and its representatives.

 

2.9         Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or threatened against or affecting the Company, the Common Stock, the Notes,
the New Notes or any of the Company’s officers or directors in their capacities as such, other than what is disclosed in
the Company’s public filings.

 

2.10       Authorized
Capital. Schedule 2.10 sets forth all capital stock and derivative securities of the Company that are authorized for
issuance and that are issued and outstanding. All issued and outstanding shares of Common Stock have been duly authorized and validly
issued and are fully paid and nonassessable. The Company has sufficient authorized and unissued shares of Common Stock as may be
necessary to effect the issuance of the Common Stock issuable under this Agreement, assuming the prior issuance and exercise, exchange
or conversion, as the case may be, of all derivative securities authorized, as indicated in Schedule 2.10. 

 

    	 	4	 

     

    

 

2.11       Disclosure.
Upon receipt or delivery by the Company of any notice or other document in accordance with the terms of this Agreement, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries, the Company shall within one Trading Day after any such receipt or delivery
publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company
so shall indicate to the Investor contemporaneously with delivery of such notice, and in the absence of any such indication, the
Investor shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Company or any of its Subsidiaries. If the Company or any of its Subsidiaries provides material non-public information
to the Investor that is not simultaneously filed in a Current Report on Form 8-K and the Investor has not agreed to receive such
material non-public information, the Company hereby covenants and agrees that the Investor shall not have any duty of confidentiality
to the Company, any of its Subsidiaries or any of their respective officers, directors, employees, Affiliates or agents with respect
to, or a duty to any of the foregoing not to trade on the basis of, such material non-public information.

 

2.12      
Indebtedness. Except as listed on Schedule 2.12 hereto, the Company does not have any indebtedness other than Permitted
Liens. “Permitted Liens” shall have the same meaning as in the New Notes.

 

3.           Representations
and Warranties of the Investor. The Investor hereby represents, warrants and covenants that:

 

3.1.        Organization.
The Investor is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
The Investor is not in violation nor default of any of the provisions of its certificate of limited partnership, limited partnership
agreement or other organizational or charter documents. The Investor 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, and no claim, action or proceeding of any kind has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

3.2.        Authorization.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the
legal, valid and binding obligations of the Investor enforceable against the Investor in accordance with their respective terms,
except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. The execution, delivery and performance by the Investor of this Agreement and the Ancillary Agreements and
the consummation by the Investor of the transactions contemplated hereby and thereby will not: (i) conflict with, or 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 Investor is a party
or by which it is bound; or (ii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities or “blue sky” laws) applicable to the Investor.

 

3.3.        Accredited
Investor Status; Investment Experience. The Investor is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D. The Investor can bear the economic risk of its investment in the New Notes, and has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the New
Notes.

 

    	 	5	 

     

    

 

3.4.        No
Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the New Notes or the fairness or suitability of the investment
in the New Notes nor have such authorities passed upon or endorsed the merits of the offering of the New Notes.

 

3.5.        Ownership
of Securities. The Investor owns and holds, beneficially and of record, the entire right, title, and interest in and to the
Notes free and clear of all rights and liens (other than pledges or security interests (x) arising by operation of applicable securities
laws and (y) that the Investor may have created in favor of a prime broker under and in accordance with its prime brokerage agreement
with such broker). The Investor has full power and authority to transfer and dispose of the Notes to the Company free and clear
of any right or lien. Other than the transactions contemplated by this Agreement and the Ancillary Agreements, there is no outstanding,
plan, pending proposal, or other right of any person or entity to acquire all or any part of the Notes or any shares of Common
Stock issuable upon the delivery of the Issuance Notice and corresponding deduction of the face amount of the New Notes.

 

3.6.        No
Short Sales or Hedging Transactions. The Investor covenants and agrees that neither it, nor any Affiliate acting on its behalf
or pursuant to any understanding with it will execute any Short Sales of the Common Stock or (ii) hedging transaction, which establishes
a net short position with respect to the Common Stock) during the period commencing with the execution of this Agreement and ending
on the earlier of the Maturity Date or its satisfaction by its use to acquire shares of Common Stock through the use of prospectus
supplements filed under the Shelf S-3; provided that this provision shall not prohibit any sales made where a corresponding Issuance
Notice is tendered to the Company and the shares of Common Stock received upon such issuance are used to close out such sale; provided,
further that this provision shall not operate to restrict the Investor's trading under any prior securities purchase agreement
containing contractual rights that explicitly protects such trading in respect of the previously issued securities.

 

4.           Additional
Covenants

 

4.1.        Disclosure.
The Company shall, on or before 8:30 a.m., New York, New York time, within one Trading Day after the date of this Agreement, file
with the Securities and Exchange Commission a Current Report on Form 8-K disclosing all material terms of the transactions contemplated
hereby and attaching the form of this Agreement and the New Note as exhibits thereto (collectively with all exhibits attached thereto,
the “8-K Filing”). From and after the issuance of the 8-K Filing the Investor shall not be in possession of any material,
nonpublic information received from the Company or any of its Subsidiaries or any of their respective officers, directors, employees,
affiliates or agents, that is not disclosed in the 8-K Filing. The Company shall not, and shall cause its officers, directors,
employees, affiliates and agents, not to, provide the Investor with any material, nonpublic information regarding the Company from
and after the filing of the 8-K Filing without the express written consent of the Investor. To the extent that the Company delivers
any material, non-public information to the Investor without the Investor’s express prior written consent, the Company hereby
covenants and agrees that the Investor shall not have any duty of confidentiality to the Company, any of its subsidiaries or any
of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the Company, any of its subsidiaries
or any of their respective officers, directors, employees, affiliates or agent. The Company shall not disclose the name of the
Investor in any filing, announcement, release or otherwise, unless such disclosure is required by law or regulation. In addition,
effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall
terminate and be of no further force or effect. The Company understands and confirms that the Investor will rely on the foregoing
representations in effecting transactions in securities of the Company.

 

    	 	6	 

     

    

 

4.2.        Form
S-3. The Company shall use its best efforts to file a prospectus supplement to its shelf registration statement on Form S-3
covering the public sale of the Commitment Shares within the later of (i) two (2) business days or (ii) the next Trading Day after
its receipt of Exchange Approval.

  

4.3.        Blue
Sky. The Company shall make all filings relating to the Exchange required by Regulation D under the Securities Act and under
applicable securities or “blue sky” laws of the states of the United States following the date hereof.

 

4.4.        Fees
and Expenses. Except as otherwise set forth above, each party to this Agreement shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. Notwithstanding the foregoing, the Company has agreed to reimburse the Investor
for up to $50,000 of documented attorneys’ fees, which sum is part of the principal of Note 1.

 

4.5.        Security
Agreement. On the Closing Date or as soon thereafter as the Company obtains the authority of its senior secured lender, the
Company and the Investor shall enter into a Security Agreement in the form attached hereto as Exhibit C (the “Security
Agreement”), pursuant to which the Company shall grant the Investor a priority lien, subordinate only to the first lien presently
existing on all of the assets of the Company to secure the performance of the Company’s obligations hereunder, under the
New Notes, the other Ancillary Agreements and pursuant to any other contracts, agreement or understandings of any kind between
the Company and the Investor. The Security Agreement shall terminate and be of no further force or effect in the event that the
Investor has recovered $900,000 pursuant to the delivery to the Company of Issuance Notices.

 

    	 	7	 

     

    

 

4.6.        Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s certificate of incorporation
or other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Agreement or the Ancillary Agreements, and will at all times in good faith carry out all of the provisions
of this Agreement and the Ancillary Agreements and take all action as may be required to protect the rights of the Investor under
this Agreement and the Ancillary Agreements. Without limiting the generality of the foregoing or any other provision of this Note
or the Ancillary Agreements, the Company (a) shall not increase the par value of any shares of Common Stock issuable pursuant
to the terms of this Agreement above the Issuance Price then in effect, and (b) shall take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon
issuance of such Common Stock to the Investor pursuant to the terms of this Agreement. Notwithstanding anything herein to the contrary,
if at any time the Investor is not permitted receive all the shares of Common Stock the Investor is entitled to receive pursuant
to the terms of this Agreement for any reason (other than pursuant to restrictions set forth in Section 6.4 hereof), the Company
shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals
as necessary to permit the issuance of such shares of Common Stock.

 

4.7.
       Reserved.

 

4.8.        Leak-Out.
Provided no Event of Default has occurred and is continuing, the Investor acknowledges and agrees that, (i) on any given Trading
Day, it may only sell Common Stock representing up to ten percent (10%) of the total number of shares of the Company’s Common
Stock traded on the prior Trading Day, and (ii) upon the delivery of the Security Agreement to the Investor referred to in Section
4.5 hereof, on any given Trading Day, it may only sell Common Stock representing up to eight percent (8%) of the Company’s
Common Stock traded on the prior Trading Day.

 

4.9.        True-Up.
In the event the Investor’s proceeds from the sale of all Common Stock received by the Investor pursuant to the terms of
Issuance Notices under this Agreement, do not equal at least 100% of the deemed payment of the outstanding Principal balance of
the New Notes, the Company shall owe the difference to the Investor. Upon notice from the Investor, the Company shall within two
(2) Trading Days have the option to pay the difference to the Investor in cash or through the delivery of free trading shares of
Common Stock; provided, however, that if Exchange Approval is required for the Common Stock to be issued for the True-Up Amount,
the two (2) Trading Days shall be delayed until the Company has obtained such Exchange Approval, which the Company shall use its
best efforts to obtain as promptly as practicable. Amounts due under any True-Up Notice shall be deemed to be the “True-Up
Amount.”

 

5.           Forbearance
and Initial Repayment of New Note.

 

5.1.        Forbearance
by Investor. Until January 31, 2019 (the “Forbearance Period”), the Investor shall forbear from taking any actions
with respect to the Notes not explicitly set forth herein, including, without limitation, seeking to enforce any default including
any Events of Default.

 

    	 	8	 

     

    

 

5.2         Initial
Repayment of Note 1 by the Company. Subject in all instances to Section 6.4 hereof, prior to the expiration of the Forbearance
Period, upon any request by the Investor (an “Issuance Request”), the Company shall issue to the Investor the number
of shares set forth in the Issuance Request, which shall be paid for by reducing the sums due under Note 1. The amount of any payment
made pursuant to an Issuance Request shall be calculated using the number of shares of Common Stock to be delivered times the Issuance
Price determined under Section 6.1.2. In crediting sums due under Note 1, accrued Interest shall first be credited, Late Charges
next and Principal last. For the avoidance of doubt, in the event any shares of Common Stock issued pursuant to this Section 5.2
are delivered to the Investor on different days or have different Issuance Prices for any reason, the payment made pursuant to
an Issuance Request shall be determined using the average Issuance Price applicable to any share of Common Stock delivered to the
Investor in accordance with this Section 5.2.

 

6.           Issuance
of Common Stock. Subject in all instances to Section 6.4 hereof, at any time after the expiration of the Forbearance Period,
the Company shall deliver to the Investor validly issued, fully paid and non-assessable shares of Common Stock issued under the
Shelf S-3, in such amounts and upon such terms and conditions as are set forth in this Section 6.

 

6.1.        Issuance
Rights.

 

6.1.1.       At
any time following the expiration of the Forbearance Period, the Investor shall be entitled to receive from the Company a number
validly issued, fully paid and non-assessable shares of Common Stock of the Company issued under the Shelf S-3 up to the Maximum
Amount, as defined. Any Common Stock issued to the Investor in accordance with this Agreement shall reduce the outstanding sums
due under Note 1 until it has been fully paid and then Note 2, by an amount equal to the number of shares of Common Stock issued
multiplied by the applicable Issuance Price. The Company shall not issue any fraction of a share of Common Stock upon any delivery
of an Issuance Notice. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp,
issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may
be payable with respect to the issuance and delivery of Common Stock to the Investor in accordance with this Section 6.1.

 

6.1.2.       For
purposes of this Agreement, “Issuance Price” means, as of any Issuance Date: the greater of: (A) $0.12; or (B) 80%
of the lowest daily VWAP in the three Trading Days prior to the Issuance Date. The Company shall issue irrevocable instructions
to its Transfer Agent regarding issuances such that the transfer agent shall be authorized and instructed to issue shares of Common
Stock upon its receipt of an Issuance Notice without further approval or authorization from the Company.

 

    	 	9	 

     

    

 

6.2.        Mechanics
of Issuance. To receive any Common Stock pursuant to the terms of this Agreement on any date (an “Issuance Date”),
the Investor shall deliver to the Company (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59
p.m., New York time, on such date, a copy of an executed notice in the form attached hereto as Exhibit D (the “Issuance
Notice”). On or before the first Trading Day following the date of receipt of an Issuance Notice, the Company shall transmit
by facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such shares of Common Stock
may then be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto as Exhibit
E, of receipt of such Issuance Notice to the Investor and the Transfer Agent which confirmation shall constitute an instruction
to the Transfer Agent to process such Issuance Notice in accordance with the terms herein. On or before the third Trading Day following
the date on which the Company has received an Issuance Notice (or such earlier date as required pursuant to the Exchange Act or
other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Issuance Date of such shares
of Common Stock issuable pursuant to such Issuance Notice) (the “Share Delivery Deadline”), the Company shall (1) provided
that the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, credit such aggregate number of
shares of Common Stock to which the Investor shall be entitled to the Investor’s or its designee’s balance account
with DTC through its Deposit/Withdrawal at Custodian system or (2) if the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program, upon the request of the Investor, issue and deliver (via reputable overnight courier) to the address
as specified in the Issuance Notice, a certificate, registered in the name of the Investor or its designee, for the number of shares
of Common Stock to which the Investor shall be entitled pursuant to such Issuance Notice. The Person or Persons entitled to receive
the shares of Common Stock pursuant to the terms of this Agreement shall be treated for all purposes as the record holder or holders
of such shares of Common Stock on the Issuance Date. Notwithstanding anything to the contrary contained in this Agreement, prior
to the Investor’s receipt of a notice that the Shelf S-3 is not available with respect thereto, the Company shall cause the
Transfer Agent to deliver unlegended shares of Common Stock to the Investor. The amount due under the New Note shall automatically
be reduced by the amount used to purchase shares set forth in the Issuance Notice.

 

    	 	10	 

     

    

 

6.3.        Company’s
Failure to Timely Issue. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share Delivery
Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, to issue and deliver
to the Investor (or its designee) a certificate for the number of shares of Common Stock to which the Investor is entitled under
an Issuance Notice or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, to credit
the balance account of the Investor or the Investor’s designee with DTC for such number of shares of Common Stock to which
the Investor is entitled pursuant to this Agreement (as the case may be) (an “Issuance Failure”), then, in addition
to all other remedies available to the Investor, (i) the Company shall pay in cash to the Investor on each day after such Share
Delivery Deadline that the issuance of such shares of Common Stock is not timely effected an amount equal to 2% of the product
of (A) the sum of the number of shares of Common Stock not issued to the Investor on or prior to the Share Delivery Deadline and
to which the Investor is entitled, multiplied by (B) any trading price of the Common Stock selected by the Investor in writing
as in effect at any time during the period beginning on the applicable Issuance Date and ending on the applicable Share Delivery
Deadline and (ii) the Investor, upon written notice to the Company, may void its Issuance Notice, provided that the voiding of
an Issuance Notice shall not affect the Company’s obligations under this Agreement. In addition to the foregoing, if on or
prior to the Share Delivery Deadline, the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
the Company shall fail to issue and deliver to the Investor (or its designee) a certificate and register such shares of Common
Stock on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, the Transfer Agent shall fail to credit the balance account of the Investor or the Investor’s designee with DTC
for the number of shares of Common Stock to which the Investor is entitled pursuant to this Agreement or pursuant to the Company’s
obligation pursuant to clause (II) below, and if on or after such Share Delivery Deadline the Investor purchases (in an open market
transaction or otherwise) shares of Common Stock corresponding to all or any portion of the number of shares of Common Stock issuable
pursuant to the applicable Issuance Notice upon the delivery thereof that the Investor is entitled to receive from the Company
and has not received from the Company in connection with such Issuance Failure or Notice Failure, as applicable (a “Buy-In”),
then, in addition to all other remedies available to the Investor, the Company shall, within two Trading Days after receipt of
the Investor’s request and in the Investor’s discretion, either: (I) pay cash to the Investor in an amount equal to
the Investor’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares
of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Investor) (the
“Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate (and to issue
such shares of Common Stock) or credit the balance account of such Investor or such Investor’s designee, as applicable, with
DTC for the number of shares of Common Stock to which the Investor is entitled upon the Investor’s delivery of an Issuance
Notice hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation
to so issue and deliver to the Investor a certificate or certificates representing such shares of Common Stock or credit the balance
account of such Investor or such Investor’s designee, as applicable, with DTC for the number of shares of Common Stock to
which the Investor is entitled upon the Investor’s acquisition of Common Stock hereunder (as the case may be) and pay cash
to the Investor in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of
Common Stock multiplied by (y) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing
on the date of the applicable Issuance Notice and ending on the date of such issuance and payment under this clause (II) (the “Buy-In
Payment Amount”). Nothing shall limit the Investor’s right to pursue any other remedies available to it hereunder,
at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares
of Common Stock) as required pursuant to the terms hereof.

 

    	 	11	 

     

    

 

6.4.        Limitations
on Issuances. The Company shall not effect the issuance of any shares of Common Stock to the Investor and the Investor shall
not have the right to receive any shares of Common Stock and any such issuance shall be null and void and treated as if never made,
to the extent that after giving effect to such issuance, the Investor would beneficially own in excess of 9.99% of the shares of
Common Stock outstanding immediately after giving effect to such issuance (the “Maximum Percentage”) (which provision
may be waived by the Investor by written notice from the Investor to the Company, which notice shall be effective 61 days after
the date of such notice). For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned
by the Investor shall include the number of shares of Common Stock held by the Investor plus the number of shares of Common Stock
issuable upon conversion of all other convertible securities with respect to which the determination of such sentence is being
made subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 6.4. For purposes
of this Section 6.4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. For purposes
of determining the number of outstanding shares of Common Stock the Investor may acquire pursuant to this Agreement without exceeding
the Maximum Percentage, the Investor may rely on the number of outstanding shares of Common Stock as reflected in this Agreement
or (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or
other public filing with the Securities and Exchange Commission (the “SEC”), as the case may be, (y) a more recent
public announcement by the Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth
the number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”). As of the date of this
Agreement, the Company has 95,419,736 shares of Common Stock outstanding. If the Company receives an Issuance Notice from the Investor
at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the
Company shall notify the Investor in writing of the number of shares of Common Stock then outstanding and, to the extent that such
Issuance Notice would otherwise cause the Investor’s beneficial ownership, as determined pursuant to this Section 6.4, to
exceed the Maximum Percentage, the Company must notify the Investor of a reduced number of shares of Common Stock to be issued
pursuant to this Agreement as set forth in such Issuance Notice. For any reason at any time, upon the written or oral request of
the Investor, the Company shall within one Trading Day confirm orally and in writing or by electronic mail to the Investor the
number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the issuance or exercise of securities of the Company, by the Investor since the date as of which the Reported
Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Investor pursuant to this
Agreement results in the Investor being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the Exchange Act and Rule 13b-3 thereunder), the number
of shares so issued by which the Investor’s beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and the Investor shall not have the power to vote, sell, or to
transfer the Excess Shares. For purposes of clarity, the shares of Common Stock issuable to the Investor pursuant to this Agreement
in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Investor for any purpose including for
purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. No prior inability of the Investor to receive any Common Stock
pursuant to this Agreement shall have any effect on the applicability of the provisions of this Section 6.4 with respect to any
subsequent determination of issuability. The provisions of this Section 6.4 shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 6.4 to the extent necessary to correct any portion of this Section 6.4
which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 6.4 or to make
changes or supplements necessary or desirable to properly give effect to such limitation. The provisions of this Section 6.4 shall
be of no further force or effect if the Investor participates in a subsequent transaction with the Company and acquires Common
Stock and/or securities convertible into Common Stock which do not contain a beneficial ownership limitation. In such event, the
Maximum Percentage limitation shall be (i) deemed modified to be identical to any limitation on beneficial ownership contained
in the subsequent transaction or (ii) eliminated if there is no such limitation on beneficial ownership.

 

    	 	12	 

     

    

 

6.5.      
The Investor’s Option; Escrow Agreement. The Company and the Escrow Agent acknowledge and agree that as additional
security for the Company’s performance of its obligations set forth herein and in the Ancillary Documents, on the date hereof
the Company has executed the Secured Convertible Note attached hereto in the form of Exhibit F (the “Convertible Note”),
which shall be held by Escrow Agent in accordance with the terms of the Escrow Agreement. The Company and the Investor further
acknowledge and agree that on or after April 15, 2019, unless the New Notes have been paid in full, the Investor may, upon written
notice to the Escrow Agent, cause the Escrow Agent to release the Convertible Note to the Investor provided that the Investor shall,
contemporaneously therewith, surrender Note 2 for cancellation in consideration for its receipt of the Convertible Note. The conversion
price of the Convertible Note shall be equal to the Issuance Price (as hereinafter defined). The Company agrees that the Convertible
Note is being exchanged for Note 2 and that for purposes of Section 3(a)(9) under the Securities Act of 1933 and Rule 144, the
holding period of the Investor shall tack back to August 16, 2018.

 

7.           Miscellaneous

 

7.1.        Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any
rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

7.2.        Governing
Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state or federal courts sitting in New York County, New York, 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
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 brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each
of the parties hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

7.3.        Notices.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar overnight next business day delivery, or by email followed
by overnight next business day delivery, to the address as provided for on the signature page to this agreement.

 

    	 	13	 

     

    

 

7.4.        Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Investor.

 

7.5.        Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms so long as this Agreement as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s)
in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations
to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close
as possible to that of the prohibited, invalid or unenforceable provision(s).

 

7.6.        Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

7.7.        Survival.
The representations, warranties and covenants of the Company and the Investor contained herein shall survive the Closing and delivery
of the New Note

 

8.           Definitions.
For purposes of this Agreement, the following words and terms shall have the following meanings:

 

8.1.        “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

8.2.        “Bloomberg”
means Bloomberg, L.P., or any successor.

 

8.3.        “Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market,
as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing
trade price (as the case may be) then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no last trade price, is reported for such security by Bloomberg,
the average of the ask prices, respectively, of any market makers for such security as reported by OTC Markets Group Inc. If the
Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price
of such security on such date shall be the fair market value as mutually determined by the Company and the Investor. If the Company
and the Investor are unable to agree upon the fair market value of such security, the determination of the Company made in good
faith shall be the fair market value of such security. All such determinations shall be appropriately adjusted for any stock splits,
stock dividends, stock combinations, recapitalizations or other similar transactions during such period.

 

    	 	14	 

     

    

 

8.4.       
“Current Subsidiary” means any Person in which the Company on the Effective Date, directly or indirectly, (i)
owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all
or any part of the business, operations or administration of such Person, and all of the foregoing, collectively, “Current
Subsidiaries”.

 

8.5.        “Escrow
Agent” means Nason, Yeager, Gerson, Harris & Fumero, P.A., a Florida professional association.

 

8.6.        “Escrow
Agreement” means that certain escrow agreement by and among the Company, the Investor and Escrow Agent.

 

8.7.   
    “Exchange Act” means the Securities Exchange Act of 1934.

 

8.8.       
“Exchange Approval” means approval of the Commitment Shares contemplated by this Agreement by the NYSE American,
which approval shall be obtained no later than twenty-five (25) days after the Closing Date.

 

8.9.       
“Group” means a “group” as that term is used in Section 13(d) of the Exchange Act and as defined
in Rule 13d-5 thereunder.

 

8.10.      “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Effective Date, directly
or indirectly, (i) owns or acquires any of the outstanding capital stock or holds any equity or similar interest of such Person
or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing,
collectively, “New Subsidiaries”.

 

8.11.     
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

8.12.      “Principal
Market” means any of The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select
Market, the Nasdaq Global Market, the OTCQB, the OTCQX, the OTC Pink or any other market operated by the OTC Markets Group Inc.
or any successors of any of these exchanges or markets.

 

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

 

    	 	15	 

     

    

 

8.14.    
“Subsidiaries” means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries,
and each of the foregoing, individually, a “Subsidiary.”

 

8.15.      “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in
writing by the Investor or (y) with respect to all determinations other than price determinations relating to the Common Stock,
any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

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

 

8.17.      “VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or,
if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded) during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m.,
New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported by
OTC Markets Group Inc.. If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP
of such security on such date shall be the fair market value as mutually determined by the Company and the Investor. If the Company
and the Investor are unable to agree upon the fair market value of such security, the determination of the Company made in good
faith shall be the fair market value of such security. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, recapitalization or other similar transaction during such period.

 

 

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	16	 

     

    

 

IN WITNESS WHEREOF, the parties have caused this Agreement
to be duly executed and delivered as of the date provided above.

 

 

	 	COMPANY:
	 	 
	 	DPW HOLDINGS, INC.
	 	 
	 	 
	 	 
	 	By: 	 
	 	
        Name: Milton C. Ault, III

        Title: Chief Executive Officer

	 	 
	 	 
	 	
        Address for Notices:

         

        201 Shipyard Way

        Suite E

        Newport Beach, CA 92663

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF, the parties have caused this Agreement
to be duly executed and delivered as of the date provided above.

 

 

	 	INVESTOR:
	 
	 	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	Its: 	 	 

 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

	 	Address for Notices:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Email: 	 	 
	 	 	 	 
	 	EIN#:	 	 

 

    	 	18	 

     

    

 

EXHIBIT A

Note 1

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT B

Note 2

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT C

Security Agreement

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT D

Issuance Notice

 

Reference is hereby made to that
certain Exchange Agreement (the “Exchange Agreement”), dated as of [·].
In accordance with and pursuant to the Exchange Agreement, the undersigned hereby elects to receive the number of shares of Common
Stock, $0.001 par value per share (the “Common Stock”), of the Company specified below on the date specified below.
Capitalized terms not defined herein shall have the meaning as set forth in the Exchange Agreement.

 

	Dollar Amount of New Note being used:	____________________
	 	 
	Issuance Date:	____________________
	 	 
	Issuance Price:	____________________
	 	 
	
        Number of shares of Common

        Stock to be issued:
	
        ____________________

         

 

 

Please issue the Common Stock to the Investor, or for
its benefit, as follows:

 

		☐	Check here if requesting delivery as a certificate to the following name and to the following address:

 

	Issue to:	 

 

 

 

 

		☐	Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 
	 	 

 

	
        Date: _____________ __, ____
	 
	 	 
	 	 
	 	 
	Name of Investor
	 

 

    	 		 

     

    

 

	
        By:                                                               

        Name:

        Title:

        

        

         

        Tax ID:_____________________

         

        Facsimile:___________________

         

        E-mail Address: 

 

    	 		 

     

    

 

EXHIBIT E

Acknowledgement

 

The Company hereby (a) acknowledges
this Issuance Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not] eligible to be resold
by the Investor either (i) pursuant to Rule 144 (subject to the Investor’s execution and delivery to the Company of a customary
144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs _________________ to
issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _____________,
20__ from the Company and acknowledged and agreed to by ________________________.

 

 

 

	 	DPW HOLDINGS, INC.
	 	 
	 	 
	 	By:	 
	 	 	 
	 	Name:
	 	 
	 	Title:

 

    	 		 

     

    

 

EXHIBIT F

 

Form of Convertible Note

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