Document:

Exhibit 4.2

 

ORIGINAL
ISSUE DISCOUNT

CONVERTIBLE
PROMISSORY NOTE

 

 

	$200,000 Principal (subject to adjustment)	 
	$160,000 Purchase Price	New York City, New York
	 	May 28, 2020

 

FOR VALUE RECEIVED, and subject to the
terms and conditions set forth herein, DPW Holdings, Inc., a Delaware corporation (hereinafter referred to as “Maker”
or the “Company”), hereby unconditionally promises to pay to [●] a Delaware limited partnership (and together
with its successors and assigns, hereinafter referred to as “Holder”), in the manner hereinafter provided, the
aggregate principal sum of $200,000 (subject to adjustment under Section 2), or, if less, the aggregate unpaid principal amount
of all advances made from time to time by Holder to Maker pursuant to and in accordance with this Note, in immediately available
funds and in lawful money of the United States of America, together with interest thereon, all in accordance with the provisions
hereinafter specified. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Securities Purchase
and Exchange Agreement (“Purchase Agreement”) executed by the Maker and Holder on the issuance date of this
Note.

 

1.           Advance.
On the date hereof, Maker received an advance of the aggregate principal sum of $160,000 from Holder. Amounts advanced hereunder
and repaid may not be reborrowed.

 

2.           Maturity
Date. The entire unpaid principal amount of this Note, together with all accrued unpaid interest, shall be due and payable
on November 28, 2020 (the “Maturity Date”) or, if earlier, the date on which this Note is declared due and payable
pursuant to the terms of this Note, including without limitation as provided in Section 9 of this Note. Maker may extend the Maturity
Date until May 28, 2021 (the “First Extension”) and thereafter, Maker may extend the Maturity Date until May
28, 2022 (the “Second Extension”) (the First Extension and the Second Extension, collectively, an “Extension”).
Maker must provide Holder with at least 10 days’ notice of an Extension. Upon the First Extension, the principal shall increase
to $240,000 and upon the Second Extension, the principal shall increase to $280,000.

 

3.           Accrual
of Interest. No interest shall be due under this Note unless there is an Extension. During the First Extension period, if applicable,
interest shall accrue and be computed on the principal amount outstanding from time to time under this Note until the same is repaid
in full at a rate equal 12% per annum. During the Second Extension period, if applicable, interest shall accrue and be computed
on the principal amount outstanding from time to time under this Note until the same is repaid in full at a rate equal 18% per
annum. Interest shall be calculated hereunder on the basis of a 360-day year for the actual number of days elapsed.

 

    	 	 	 

    	 

    

 

4.           Payment
of Interest. Maker shall pay interest on this Note on the Maturity Date to Holder unless Holder elects on at least three Trading
Days’ notice to convert unpaid interest and other charges. Interest payable on this Note shall be paid on the Maturity Date
in cash. During the continuance of an Event of Default, notwithstanding anything else to the contrary contained in this Note, interest
payable on the outstanding principal hereunder shall bear interest at the then applicable interest rate set forth in the immediately
preceding section plus 7% per annum; provided, however, that such rate shall be increased or decreased to reflect the maximum interest
rate permitted under applicable law. Such interest shall be payable in cash upon demand.

 

5.           Conversion
of Note. Beginning June 30, 2020, this Note shall be convertible into validly issued, fully paid and non-assessable shares
(the “Conversion Shares”) of the Company’s common stock, par value $0.001 per share (the “Common
Stock”), on the terms and conditions set forth in this Section 5.

 

(a)         
Conversion Right. Provided that Exchange Approval has been obtained and subject to the provisions of this Section 5, 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 Conversion Shares in accordance with Section 5(b). The Company shall not issue any fraction of a
Conversion Share 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 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 Conversion Shares issuable upon exchange of any portion of the Conversion Amount shall be determined
by dividing (x) the Conversion Amount with respect to such portion of the Note, by (y) the Conversion Price, subject to adjustment
as described in Section 5(e) below.

 

(i)       “Conversion
Amount” means the (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, if any.

 

(ii)       “Conversion
Price” means greater of: (x) 80% of the VWAP for the five trading days prior to the date of the Conversion Notice and
(y) $0.30 (subject to any stock split, stock dividend, reverse stock split, stock combination or other similar transaction).

 

(iii)       “VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market,
the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then
reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most
recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of
Common Stock as determined by an independent appraiser selected in good faith by the Purchaser of a majority in interest of the
Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

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(iv)       
“Trading Day” means any day on which the Common Stock is traded 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 4:00:00 p.m., New York time) unless such
day is otherwise designated as a Trading Day in writing by the Holder.

 

(c)          Reserved

 

(d)          Mechanics
of Conversion.

 

(i)        Conversion.
To convert any Conversion Amount into Conversion Shares 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 hereto, 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. On or before
the first Trading Day following the date of receipt of a Conversion Notice, the Company shall transmit by facsimile or electronic
mail an acknowledgment of confirmation and representation as to whether such Conversion Shares may then be resold pursuant to Rule
144 or an effective and available registration statement, 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 Exchange 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.

 

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(ii)       Company’s
Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, to credit to the Holder’s balance
account with DTC within two Trading Days after the Company’s receipt of a Conversion Notice, 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 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 the Note that has not been exchanged 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 5(f) or otherwise. In addition to the foregoing, if on or prior to the
Share Delivery Deadline, the Company shall fail to credit the Holder’s or its designee’s balance account 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 if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by the Holder or its designee of all or any portion of the number of shares
of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common
Stock, issuable upon such Conversion that the Holder or its designee so anticipated receiving from the Company, then, in addition
to all other remedies available to the Holder or its designee, the Company shall, within three Trading Days after receipt of the
Holder’s or its designee’s written request, pay cash to the Holder or its designee, as applicable, in an amount equal
to the Holder’s or its designee’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), at which point the Company’s obligation to so credit the Holder’s or its designee’s balance account
with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exchange hereunder (as
the case may be) (and to issue such shares of Common Stock) shall terminate to the extent of such shares of Common Stock so purchased.

 

(iii)       Book-Entry.
Notwithstanding anything to the contrary set forth in this Section 5, following Conversion of any portion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender any note, certificate or other instrument evidencing
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 the Holder has provided the Company with prior written notice
(which notice may be included in a Conversion Notice) requesting reissuance of a note, certificate or other instrument with respect
to this Note and the Conversion Shares upon physical surrender of a certificate with respect to this Note. The Holder shall provide
the Company with written partial releases relating to all Conversions of the Note. The Holder and the Company shall maintain records
showing the amount of the Note converted, paid or adjusted (as the case may be) and the dates of such Conversions, payments or
adjustments (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 any certificate with respect to the Note upon any Conversion until the Note being converted has
been fully satisfied.

 

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(iv)       Pro
Rata Conversion; Disputes. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection
with a Conversion of the Note or an adjustment to the number of Conversion Shares to be delivered following a Pricing Period, the
Company shall issue to the Holder the number of shares of Common Stock not in dispute.

 

(e)       If
the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions
payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents, (ii) subdivides outstanding shares
of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of
Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock,
any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such
event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any
adjustment made pursuant to this Section 5 shall become effective immediately after the record date for the determination of shareholders
entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification.

 

6.           Manner
and Application of Payments. All amounts payable in cash hereunder shall be payable to Holder by wire transfer of immediately
available funds and in lawful money of the United States of America without set-off, deduction or counterclaim at such place as
Holder may from time to time designate in writing to Maker. Payments hereunder shall be applied first to interest and then to principal
outstanding hereunder, except that if Holder has incurred any cost or expense in connection with the enforcement or collection
of the obligations of Maker hereunder, Holder shall have the option of applying any monies received from Maker to payment of such
costs or expenses plus interest thereon before applying any of such monies to any interest or principal then due. If any payment
of principal or interest under this Note shall be payable on a day other than a business day such payment shall be made on the
next succeeding business day and interest shall be payable at the rate specified in this Note during such extension. The books
and records of Holder shall be the best evidence of any amounts at any time owed under this Note (including but not limited to
principal, interest and any fees owed hereunder) and shall be conclusive absent manifest error.

 

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7.            Representation
and Warranties. Maker hereby represents and warrants to Holder that:

 

(a)          Maker
is validly existing as a corporation under the laws of the State of Delaware and has the power and authority to execute and deliver
this Note and has duly executed and delivered this Note;

 

(b)         this
Note is the legal, valid and binding obligation of Maker, enforceable in accordance with its terms;

 

(c)         the
execution, delivery and performance of this Note and the borrowing evidenced hereby does not (i) require the consent or approval
of any other party (including any governmental or regulatory party), (ii) violate any law, regulation, agreement, order, writ,
judgment, injunction, decree, determination or award presently in effect to which Maker is a party or to which Maker or any of
its assets may be subject, or (iii) conflict with or constitute a breach of, or default under, or require any consent under, or
result in the creation of any lien, charge or encumbrance upon the property or assets of Maker pursuant to any other agreement
or instrument (other than any pledge of or security interest granted in any collateral pursuant to this Note) to which Maker is
a party or is bound or by which its properties may be bound or affected; and

 

(d)         there
are no actions, suits, investigations or proceedings pending or, to the best of Maker’s knowledge, threatened at law, in
equity, in arbitration or by or before any other authority involving or affecting Maker that are likely to have a material adverse
effect on the financial condition of Maker.

 

8.            Covenants.

 

(a)         Further
Assurances. Maker shall execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, any and all such
further assurances and other agreements or instruments, and take or cause to be taken all such other action, as shall be reasonably
necessary from time to time to give full effect to the Note and the obligations hereunder.

 

(b)         Maintenance
of Existence. Maker shall preserve, renew and maintain in full force and effect its corporate or organizational existence and
take all reasonable action to maintain all rights and privileges necessary or desirable in the ordinary course of business except
as would not have a materially adverse effect.

 

(c)         Notices
of Defaults. As soon as possible and in any event within two business days after Maker becomes aware of a Default or Event
of Default under this Note, Maker shall notify Holder in writing of the nature and extent of such default or event of default and
the action, if any, Maker has taken or proposes to take with respect to such default or event of default.

 

9.            Events
of Default. Each of the following acts, events or circumstances shall constitute an Event of Default (each an “Event
of Default”) hereunder:

 

(a)         Maker
shall default in the payment when due (in accordance with the terms of this Note) of any principal;

 

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(b)         Maker
shall default in the payment when due (in accordance with the terms of this Note) of any interest or other amounts owing hereunder,
and such default is not cured within three Trading Days of the due date;

 

(c)         (a)
Maker shall commence a voluntary case concerning itself under any bankruptcy, insolvency or similar laws or statutes (including
Title 11 of the United States Code, as amended, supplemented or replaced) (collectively, the “Bankruptcy Code”); or
(b) an involuntary case is commenced against Maker and is not dismissed within 90 days; or (c) a custodian (as defined in the Bankruptcy
Code) is appointed for, or takes charge of, all or substantially all of the property of Maker or Maker commences any other proceeding
under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to Maker or there is commenced against Maker any such proceeding;
or (d) any order of relief or other order approving any such case or proceeding is entered; or (e) Maker is adjudicated insolvent
or bankrupt; or (f) Maker makes a general assignment for the benefit of creditors; or (g) Maker shall call a meeting of its creditors
with a view to arranging a composition or adjustment of its debts; or (h) Maker shall by any act or failure to act consent to,
approve of or acquiesce in any of the foregoing;

 

(d)         Maker
shall dissolve or for any reason cease to be in existence;

 

(e)         any
representation or warranty made or that is deemed made by Maker shall have been false or misleading in any material respect on
the date as of which such representation or warranty was made or deemed made;

 

(f)          Maker
shall fail to perform or observe any agreement, covenant or obligation arising under any provision hereof (and the Purchase Agreement)
for more than 10 days following receipt by Maker of a notice from Holder indicating any such violation;

 

(g)         any
material adverse effect shall occur with respect to (a) the validity or enforceability of this Note or the rights, powers and privileges
purported to be created hereby, (b) the right rights and remedies of the Holder hereunder, (c) Maker’s ability to perform
any of its obligations hereunder, or (d) the business, assets, properties, liabilities (actual or contingent), operations or condition
(financial or otherwise) of Maker;

 

(h)         Maker
fails to file with the Commission any required reports under Section 13 or 15(d) of the Exchange Act within the time required (including
any applicable extension period) by the rules and regulations thereunder;

 

(i)          Maker
shall fail for any reason, except if caused by the action or inaction of the Holder to deliver Conversion Shares to the Holder
prior to the third Trading Day after a Conversion Date or Maker shall provide at any time notice to the Holder, including by way
of public announcement, of Maker’s intention to not honor requests for conversions in accordance with the terms hereof;

 

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(j)          
the Common Stock is not listed or quoted for trading on a Trading Market which failure is not cured, if possible to cure, within
the earlier to occur of five Trading Days after notice of such failure is sent by the Holder to Maker or the transfer of shares
of Common Stock through the Depository Trust Company System is no longer available or is subject to a “chill” by the
Depository Trust Company or any successor;

 

(k)         any
other indebtedness of the Company becomes in default including the Secured Promissory Note issued to the Holder on May 28, 2020;
or

 

(l)          the
Company fails to have authorized and reserved the amount of shares designated in Section 4.11 of the Purchase Agreement.

 

If any Event of Default occurs, the outstanding
principal amount of this Note, plus interest, liquidated damages and other amounts owing in respect thereof through the date of
acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default Amount.
Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by Maker.
In connection with such acceleration described herein, the Holder need not provide, and Maker hereby waives, any presentment, demand,
protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and
all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be
rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the
Note until such time, if any, as the Holder receives full payment pursuant to this Section 9. No such rescission or annulment shall
affect any subsequent Event of Default or impair any right consequent thereon. “Mandatory Default Premium” means (i)
120% of the aggregate of outstanding principal amount of this Note and the accrued and unpaid interest thereon (the “Outstanding
Amount”) for an Event of Default occurring during the first 18 months of this Note and (ii) 140% of the Outstanding Amount
thereafter.

 

10.          Voluntary
Prepayment. So long as no Event of Default (as defined in Section 6(a)) hereof exists, at any time upon ten (10) days written
notice to the Holder, the Company may prepay any portion of the principal amount of this Note, any accrued and unpaid interest,
and any other amounts due under this Note. If the Company exercises its right to prepay the Note, the Company shall make payment
to the Holder of an amount in cash equal to the sum of the then outstanding principal amount of this Note, any accrued and unpaid
interest.

 

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11.          Remedies;
Cumulative Rights. In addition to the rights provided under the immediately preceding Section, Holder shall also have any other
rights that Holder may have been afforded under any contract or agreement at any time, and any other rights that Holder may have
pursuant to applicable law. No delay on the part of Holder in the exercise of any power or right under this Note or under any other
instrument executed pursuant hereto shall operate as a waiver thereof, nor shall a single or partial exercise of any power or right
preclude other or further exercise thereof or the exercise of any other power or right. No extension of time of the payment of
this Note or any other modification, amendment or forbearance made by agreement with any person now or hereafter liable for the
payment of this Note shall operate to release, discharge, modify, change or affect the liability of any co-borrower, endorser,
guarantor or any other person with regard to this Note, either in part or in whole. No failure on the part of Holder or any holder
hereof to exercise any right or remedy hereunder, whether before or after the occurrence of a default, shall constitute a waiver
thereof, and no waiver of any past default shall constitute a waiver of any future default or of any other default. No failure
to accelerate the debt evidenced hereby by reason of an Event of Default hereunder or acceptance of a past due installment, or
indulgence granted from time to time shall be construed to be a waiver of the right to insist upon prompt payment thereafter, or
to impose late payment charges, or shall be deemed to be a novation of this Note or any reinstatement of the debt evidenced hereby,
or a waiver of such right of acceleration or any other right, or be construed so as to preclude the exercise of any right which
Holder or any holder hereof may have, whether by the laws of the State of New York, by agreement or otherwise, and none of the
foregoing shall operate to release, change or affect the liability of Maker under this Note, and Maker hereby expressly waives
(to the extent allowed by law) the benefit of any statute or rule of law or equity which would produce a result contrary to or
in conflict with the foregoing.

 

 

12.          Attorneys’
Fees. Maker agrees to pay all costs and expenses of collection and enforcement of this Note when incurred, including Holder’s
reasonable attorneys’ fees and legal and court costs, including any incurred on appeal or in connection with bankruptcy or
insolvency, whether or not any lawsuit or proceeding is ever filed with respect hereto.

 

13.          Waivers.
Except for the notices expressly required by the terms of this Note (which rights to notice are not waived by Maker), Maker, for
itself and its successors and assigns, hereby forever waives presentment, protest and demand, notice of protest, demand, dishonor
and non-payment of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement
of the payment of this Note, and waives and renounces (to the extent allowed by law), all rights to the benefits of any statute
of limitations and any moratorium, appraisement, and exemption now allowed or which may hereby be provided by any federal or state
statute or decisions against the enforcement and collection of the obligations evidenced by this Note and any and all amendments,
substitutions, extensions, renewals, increases, and modifications hereof. Maker expressly agrees that this Note may be extended
or subordinated, by forbearance or otherwise, from time to time, without in any way affecting the liability of Maker. No consent
or waiver by Holder with respect to any action or failure to act which without such consent or waiver would constitute a breach
of any provision of this Note shall be valid or binding unless in writing signed by Holder and then only to the extent expressly
specified therein. Neither the failure nor any delay in exercising any right, power or privilege under this Note, at law or equity,
or otherwise available agreement, will operate as a waiver of such right, power or privilege and no single or partial exercise
of any such right, power or privilege by Holder will preclude any other or further exercise of such right, power or privilege.

 

14.          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 receipted next day delivery, as follows::

 

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If to Maker:

 

DPW Holdings, Inc.

201 Shipyard Way, Suite E

Newport Beach, CA 92663

Attention: Milton C. Ault, III

 

 

If to Holder: [●]

Attention: [●]

 

Maker or Holder shall provide notice to
the other of any change in its address.

 

15.          Usury.
All terms, conditions and agreements herein are expressly limited so that in no contingency or event whatsoever, whether by acceleration
of maturity of the unpaid principal balance hereof, or otherwise, shall the amount paid or agreed to be paid to Holder for the
use, forbearance or detention of the money advanced hereunder exceed the highest lawful rate permissible under applicable laws.
If, from any circumstances whatsoever, fulfillment of any provision hereof shall involve transcending the limit of validity prescribed
by law which a court of competent jurisdiction, in a final determination may deem applicable hereto, then ipso facto, the obligation
to be fulfilled shall be reduced to the limit of such validity, and if under any circumstances Holder shall ever receive as interest
an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to reduction
of the unpaid principal balance due hereunder and not to the payment of interest.

 

 

16.          Severability;
Invalidity. Maker and Holder intend and believe that each provision in this Note comports with all applicable local, state
and federal laws and judicial decisions. However, if any provisions, provision, or portion of any provision in this Note is found
by a court of competent jurisdiction to be in violation of any applicable local, state or federal ordinance, statute, law, or administrative
or judicial decision, or public policy, including applicable usury laws, and if such court would declare such portion, provision
or provisions of this Note to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all parties
hereto that such portion, provision or provisions shall be given force and effect to the fullest possible extent they are legal,
valid and enforceable, and the remainder of this Note shall be construed as if such illegal, invalid, unlawful, void or unenforceable
portion, provision or provisions were severable and not contained herein, and the rights, obligations and interest of Maker and
Holder under the remainder of this Note shall continue in full force and effect.

 

17.          No
Strict Construction. The language used in this Note shall be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction shall be applied against any party.

 

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18.          Assignment.
Maker may not transfer, assign or delegate any of its rights or obligations hereunder without the prior written consent of Holder.
Holder shall have the right, without the consent of Maker, to transfer or assign, in whole or in part, its rights and interests
in and to this Note, and, as used herein, the term “Holder” shall mean and include such successors and assigns. This
Note shall accrue to the benefit of Holder and its successors and assigns and shall be binding upon the undersigned and its successors
and assigns.

 

19.          Amendment.
The provisions of this Note may be amended only by a written instrument signed by Maker and Holder.

 

20.          Governing
Law. THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF ALL PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF
THE STATE OF NEW YORK.

 

21.          Jurisdiction;
Waiver of Jury Trial. ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS NOTE SHALL BE FILED, TRIED AND LITIGATED IN
THE STATE AND FEDERAL COURTS LOCATED IN NEW YORK CITY, NEW YORK. MAKER WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS NOTE, INCLUDING CONTRACT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY
CLAIMS. MAKER HAS REVIEWED THIS WAIVER AND KNOWINGLY AND VOLUNTARILY WAIVES THE AFORESAID TRIAL RIGHTS FOLLOWING CONSULTATION WITH
LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

 

[Remainder Of Page Intentionally Left
Blank; Signature Page Follows]

 

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EXECUTED AND DELIVERED as of the first date written
above.

 

	MAKER:	 	DPW HOLDINGS, INC.
	 	 	 
	 	 	 
	 	 	 
	 	 	By:   	
         

	 	 	Name:  	
        Milton C. Ault, III

	 	 	Title:  	
        Chief Executive Officer

 

 

 

 

 

	ACKNOWLEDGED:	 	[●]
	 	 	 
	 	 	 
	 	 	 
	 	 	By:  	
         

	 	 	Name:  	
         

	 	 	Title:  	
         

 

    	 	 	 

    	 

    

 

Exhibit I

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal and/or interest under the Original Issue Discount Convertible Note of DPW Holdings, Inc.., a Delaware
corporation (the “Company”), into shares of common stock (the “Common Stock”), of the Company according
to the conditions hereof, as of the date written below.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section _____ of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock.

 

Conversion calculations:

	 	Date to Effect Conversion:
	 	 
	 	Principal/Interest Amount of Note to be Converted:
	 	 
	 	Number of shares of Common Stock to be issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	DWAC Instructions:
	 	 
	 	Broker No:  	 	 
	 	Account No:Exhibit 4.3

 

DPW Holdings,
Inc.

 

Warrant To Purchase
Shares of Class A Common Stock

 

Warrant No.:                     

Date of Issuance: May 28, 2020 (“Issuance Date”)

 

DPW Holdings, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [●], the registered holder hereof or its permitted assigns (the “Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then
in effect, upon exercise of this Warrant to Purchase Class A Common Stock (including any Warrants to Purchase Common Stock issued
in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date,
but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), 400,000 (subject to adjustment as provided
herein), fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant Shares”). This
Warrant issued pursuant to that certain Securities Purchase and Exchange Agreement, dated as of May 28, 2020, by and between the
Company and Holder (the “Purchase Agreement”). Except as otherwise defined herein, capitalized terms in this
Warrant shall have the meanings set forth in the Purchase Agreement.

 

1.           EXERCISE
OF WARRANT.

 

(a)       Mechanics
of Exercise.

 

Subject to the terms and conditions
hereof (including, without limitation, the limitations set forth in Section 1()), this Warrant may, subject to the Company’s
receipt of Exchange Approval (as defined in the Purchase Agreement), be exercised by the Holder on any day on or after the Issuance
Date in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached hereto as
Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within
one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount
equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this
Warrant was so exercised (in respect of such specific exercise, the “Aggregate Exercise Price”) in cash or via
wire transfer of immediately available funds. The Holder shall not be required to deliver the original of this Warrant in order
to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares
shall have the same effect as cancellation of the original of this Warrant certificate and issuance of a new Warrant certificate
evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of
the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant certificate after
delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day following
the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an acknowledgment of confirmation
of receipt of such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s
transfer agent (the “Transfer Agent”).

 

    	 	 	 

    	 

    

 

On or before the second (2nd) Trading Day following the date
on which the Company has received such Exercise Notice, the Company shall credit such aggregate number of shares of Common Stock
to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with The
Depository Trust Company (“DTC”) through its Deposit/Withdrawal at Custodian system. Upon delivery of an Exercise
Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect
to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account.
If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented
by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the
request of the Holder and upon surrender hereof by the Holder at the principal office of the Company, the Company shall as soon
as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver
to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect
to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but
rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay
any and all taxes and fees which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this
Warrant.

 

(b)       Cashless
Exercise.

 

If at any time after the six month
anniversary of the Issuance Date, there is no effective registration statement covering the resale of the Warrant Shares by the
Holder (or the prospectus does not meet the requirements of Section 10 of the Securities Act), then this Warrant may also be exercised
at the Holder’s election, in whole or in part and in lieu of making the cash payment otherwise contemplated to be made to
the Company upon such exercise, at such time by means of a “cashless exercise” in which the Holder shall be entitled
to receive a number of Warrant Shares equal to the number obtained by dividing [(A - B) times (C)] by (A), where:

 

	 	(A)	=	the greater of (i) the arithmetic average of the VWAPs for the five consecutive Trading Days ending on the date immediately preceding the date on which the Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise or (ii) the VWAP for the Trading Day immediately prior to the date on which the Holder makes such “cashless exercise” election;
	 	 	 	 
	 	(B)	=	the Exercise Price of this Warrant, as adjusted hereunder, at the time of such exercise; and
	 	 	 	 
	 	(C)	=	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise;

 

    	 	2	 

    	 

    

 

“VWAP” means,
for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) (or a similar organization or agency succeeding to its
functions of reporting prices), (b) if no volume weighted average price of the Common Stock is reported for the Trading Market,
the most recent reported bid price per share of the Common Stock, or (c) in all other cases, the fair market value of a share of
Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants
then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any
position contrary to this Section 2(b).

 

Notwithstanding anything herein to
the contrary, if on the Termination Date (unless the Holder notifies the Company otherwise) if there is no effective Registration
Statement covering the resale of the Warrant Shares by the Holder, then this Warrant shall be automatically exercised via cashless
exercise pursuant to this Section 2(b).

 

 

(c)       Exercise
Price.

 

For purposes of this Warrant, “Exercise
Price” means $1.07, subject to adjustment as provided herein.

 

(d)       Company’s
Failure to Timely Deliver Securities.

 

To the extent permitted by law, the
Company’s obligations to issue and deliver the shares of Common Stock upon exercise of the Warrant in accordance with the
terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver
or consent with respect to any provision hereof, the recovery of any judgment against any person or any action to enforce the same,
or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other
person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person, and irrespective
of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance
of the shares of Common Stock. Nothing herein 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 the shares of Common Stock issuable upon exercise of this Warrant as required
pursuant to the terms hereof.

 

    	 	3	 

    	 

    

 

(e)       Disputes.

 

In the case of a dispute as to the
determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the
terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed, provided that
following such issuance to Holder such dispute shall be resolved in accordance with Section 13.

 

(f)        Limitations
on Exercises and Exchanges. Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable
or exchangeable by the Holder hereof to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially
own in excess of 4.99% of the number of shares of Common Stock outstanding after giving effect to the issuance of shares of
Common Stock issuable upon exercise of the Warrants calculated in accordance with Section 13(d) of the Exchange Act (the “Maximum
Percentage”). To the extent the above limitation applies, the determination of whether this Warrant shall be exercisable
or exchangeable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates)
and of which such securities shall be exercisable or exchangeable (as among all such securities owned by the Holder) shall, subject
to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise
or exchange (as the case may be). No prior inability to exercise or exchange this Warrant pursuant to this paragraph shall have
any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability
or exchangeability. For the purposes of this paragraph, beneficial ownership and all determinations and calculations (including,
without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. The provisions of this paragraph shall be implemented
in a manner otherwise than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or
to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage limitation. The limitations
contained in this paragraph shall apply to a successor Holder of this Warrant. For any reason at any time, upon the written or
oral request of the Holder, the Company shall within two (2) Business Days confirm orally and in writing to the Holder the number
of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise or exchange of convertible
or exercisable or exchangeable securities into shares of Common Stock, including, without limitation, pursuant to this Warrant.

 

(g)       Reservation
of Shares; Insufficient Authorized Shares.

 

The Company shall initially reserve
out of its authorized and unissued shares of Common Stock a number of shares of Common Stock equal to 100% of the maximum number
of Warrant Shares issuable to satisfy the Company’s obligations to issue shares of Common Stock hereunder, and the Company
shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock equal to 100% of the maximum
number of Warrant Shares issuable to satisfy the Company’s obligation to issue shares of Common Stock hereunder. If, notwithstanding
the foregoing, and not in limitation thereof, at any time while this Warrant 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 exercise or
exchange of this Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from
time to time be necessary to effect the exercise or exchange this Warrant or the portion of this Warrant then outstanding (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 this Warrant then outstanding.

 

    	 	4	 

    	 

    

 

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 ninety (90) days after
the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its shareholders 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 shareholder
with a proxy statement and shall use its reasonable efforts to solicit its shareholders’ approval of such increase in authorized
shares of Common Stock and to cause its board of directors to recommend to the shareholders that they approve such proposal.

 

2.           ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares issuable upon exercise of this
Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)       Stock
Dividends and Splits.

 

Without limiting any provision of
Section 4, if the Company, at any time on or after the Issuance Date, (i) pays a stock dividend on one or more classes of its then
outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of
Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then
outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise)
one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record
date for the determination of shareholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.
If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder,
then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

 

(b)       Number
of Warrant Shares.

 

Simultaneously with any adjustment
to the Exercise Price pursuant to this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant
shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for
the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment
(without regard to any limitations on exercise contained herein).

 

    	 	5	 

    	 

    

 

(c)       Calculations.

 

All calculations under this Section
2 shall be made by rounding to the nearest 1/10000th of cent and 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 shares of Common Stock.

 

(d)       Other
Events.

 

In the event that the Company 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 2 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 Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided
that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares
as otherwise determined pursuant to this Section 2, 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 and whose fees and expenses shall be borne by the Company.

 

3.       RIGHTS
UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make
any dividend or other distribution of its assets (or rights to acquire its assets) to 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, indebtedness,
property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar
transaction, other than a distribution of shares of Common Stock covered by Section 2(a)) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation,
the Maximum Percentage) immediately before 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 shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, to the extent that the Holder’s right to participate in any such Distributions would result in the Holder
exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (or
the beneficial ownership of any such shares of Common Stock as a result of such Distribution to such extent) and such Distribution
to such extent shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not
result in the Holder exceeding the Maximum Percentage).

 

    	 	6	 

    	 

    

 

4.           PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)       Purchase
Rights.

 

In addition to any adjustments pursuant
to Section 2 above, 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 the record holders of any class of shares 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 exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum
Percentage) immediately before 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, to the extent that the Holder’s right to participate in any such
Purchase Right would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Maximum Percentage).

 

(b)       Fundamental
Transactions.

 

The Company shall not enter into
or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under
this Warrant and the other Transaction Documents related to this Warrant in accordance with the provisions of this Section 4(b)
pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to
such Fundamental Transaction, including agreements confirming the obligations of the Successor Entity as set forth in this paragraph
(b), in Section 4(c) and elsewhere in this Warrant and an obligation to deliver to the Holder in exchange for this Warrant a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including,
without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common
Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price
being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction). Notwithstanding the foregoing, at the election of the Holder upon exercise of this Warrant following a Fundamental
Transaction, the Successor Entity shall deliver to the Holder, in lieu of the shares of Common Stock (or other securities, cash,
assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable
thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of common
stock (or its equivalent) of the Successor Entity (including its Parent Entity), or other securities, cash, assets or other property,
which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant
been exercised immediately prior to the applicable Fundamental Transaction; provided, however, that such amount of reserved shares
of Common Stock shall be limited by the Maximum Percentage of shares of Common Stock as set forth in Section 1(f).

 

    	 	7	 

    	 

    

 

(c)       Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and shall be applied
as if this Warrant (and any such subsequent warrants issued hereunder) were fully exercisable and without regard to any limitations
on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage,
applied however with respect to shares of capital stock registered under the Exchange Act and thereafter receivable upon exercise
of this Warrant (or any such other warrant)).

 

5.           NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, 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 Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares
of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) 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 exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action
necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting
the exercise of this Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the
exercise of this Warrant; provided, however, that such amount of reserved shares of Common Stock shall be limited by the Maximum
Percentage of shares of Common Stock as set forth in Section 1(f).

 

6.           WARRANT
HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as the
Holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as
the Holder of this Warrant, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to
any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the
Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other
information given to the shareholders of the Company generally, contemporaneously with the giving thereof to the shareholders.

 

    	 	8	 

    	 

    

 

7.           REISSUANCE
OF WARRANTS.

 

(a)       Transfer
of Warrant.

 

If this Warrant is to be transferred,
the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of
the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase
the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying
this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase
the number of Warrant Shares not being transferred. If, at the time of the surrender of this Warrant in connection with any transfer
of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement
under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale
restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing
such transfer, that the Holder or transferee of this Warrant, as the case may be, provide to the Company an opinion of counsel
selected by the Holder and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of such transferred securities under the Securities
Act.

 

(b)       Lost,
Stolen or Mutilated Warrant.

 

Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (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 Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with
Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)       Exchangeable
for Multiple Warrants.

 

This Warrant is exchangeable, upon
the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section
7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such
new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time
of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

 

(d)       Issuance
of New Warrants.

 

Whenever the Company is required
to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii)
shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant
(or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder
which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance,
does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on
the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this
Warrant.

 

    	 	9	 

    	 

    

 

8.           NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this
Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of
the foregoing, the Company will give written notice to the Holder (i) as soon as practicable upon each adjustment of the Exercise
Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s)
and (ii) at least fifteen (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 shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options,
convertible securities or rights to purchase stock, warrants, securities, indebtedness, or other property pro rata 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 (to the extent it constitutes, or contains, material, non-public information regarding
the Company shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii)
at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided
hereunder (whether under this Section 8 or otherwise) constitutes, or contains, material, non-public information regarding the
Company, the Company shall simultaneously file such notice with the Securities and Exchange Commission pursuant to a Current Report
on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall
be definitive and may not be disputed or challenged by the Company.

 

9.           AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f)) may be amended and
the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the
Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party.

 

10.         SEVERABILITY.
If any provision of this Warrant 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 Warrant so long as this Warrant 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).

 

    	 	10	 

    	 

    

 

11.         GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant 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. 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 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 or to enforce a judgment or other court ruling in favor of the Holder. 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 WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.         CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

13.         DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or fair market value or the arithmetic calculation
of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations
or arithmetic calculations (as the case may be) via facsimile (i) within two (2) Business Days after receipt of the applicable
notice giving rise to such dispute to the Company or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute,
at any time after the Holder or the Company (as the case may be) learned of the circumstances giving rise to such dispute. If the
Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price or
fair market value or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination
or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two
(2) Business Days submit via facsimile (a) the disputed arithmetic calculation of the Warrant Shares, the disputed determination
of the Exercise Price or fair market value (as the case may be) to an independent, reputable investment bank selected by the Holder
or (b) if acceptable to the Holder, the disputed arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform
the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten
(10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment
bank’s or accountant’s determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable
error.

 

    	 	11	 

    	 

    

 

14.         REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant and 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 right of the Holder to pursue
actual damages for any failure by the Company to comply with the terms of this Warrant. 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, exercises 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 of this Warrant shall be entitled, in addition to all other available remedies, to an injunction
restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 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 Warrant (including, without limitation, compliance with Section
2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be
made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than the Holder or its agent on its behalf.

 

15.         TRANSFER.
This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

 

16.         CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

(b)       “Eligible
Market” means the Principal Market, New York Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market
or the Nasdaq Capital Market.

 

(c)       “Expiration
Date” means the date that is May 28, 2025 or, if such date falls on a day other than a Business Day or on which trading
does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

(d)       “Fundamental
Transaction” means that (i) the Company shall, directly or indirectly, in one or more related transactions, (1) consolidate
or merge with or into (whether or not the Company is the surviving entity) any other Person unless the shareholders of the Company
immediately prior to such consolidation or merger continue to hold more than 50% of the outstanding shares of Voting Stock after
such consolidation or merger, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially
all of its properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making
or party to, such purchase, tender or exchange offer), or

 

    	 	12	 

    	 

    

 

(4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and
regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock
of the Company.

 

(e)       “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or convertible securities.

 

(f)       “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.

 

(g)       “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.

 

(h)       “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or
trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might
have voting power by reason of the happening of any contingency).

 

[signature page follows]

 

    	 	13	 

    	 

    

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to Purchase Common Stock 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	 

 

    	 		 

    	 

    

 

EXHIBIT A

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE
THIS

WARRANT TO PURCHASE COMMON STOCK

 

DPW Holdings,
Inc.

 

The undersigned holder hereby exercises the right to purchase _________________
of the shares of Common Stock (“Warrant Shares”) of DPW Holdings, Inc., a Delaware corporation (the “Company”),
evidenced by Warrant to Purchase Common Stock No. _______ (the “Warrant”) pursuant
to: [please check one]

 

________ 1 – Cash Payment

________ 2 - Cashless Exercise

 

Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.       Cash
Payment. The Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with Section 1(a) of the Warrant; or

 

2.       Cashless
Exercise. The Holder shall surrender to the Company the number of Warrant Shares determined by the formula provided in Section
1(b) of the Warrant, or __________________ Warrant Shares.

 

Delivery of Warrant Shares.
The Company shall deliver to Holder, or its designee or agent as specified below, __________ shares of Common Stock in respect
of the exercise contemplated hereby. Delivery shall be made to Holder, or for its benefit, to the following address:

 

_______________________

_______________________

_______________________

_______________________

 

	Date: _______________ __, ______
	 
	 
	Name of Registered Holder

 

		By:	 
		 	Name:

Title:

 

	 	Account Number: 	 
	 	  (if electronic book entry transfer)

 

	 	Transaction Code Number: 	 
	 	  (if electronic book entry transfer)

 

    	 		 

    	 

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

 

The Company hereby acknowledges this
Exercise Notice and 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:

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