DPW Ault Global Holdings Inc

On August 10, 2022, BitNile, Inc., a Delaware corporation (“BitNile”) and wholly owned subsidiary of BitNile Holdings, Inc., a Delaware corporation (the “Company”) entered into a Note Purchase Agreement (the “NPA”) with two sophisticated investors (the “Investors”) providing for the issuance of Secured Promissory Notes (individually, a “Note” and collectively, the “Notes”) with an aggregate principal face amount of $11,000,000.

Pursuant to the NPA, BitNile and its subsidiary Digital Power Lending, LLC (“DP Lending”) and Helios Funds LLC, as the collateral agent on behalf of the Investors (the “Agent”) entered into a security agreement (the “Security Agreement”), pursuant to which (i) DP Lending granted to the Investors a security interest in marketable securities, investments and other property having a value of $10 million in a DP Lending brokerage account (the “Pledged Securities”) and (ii) BitNile granted to the Investors a security interest in 4,000 S19 Pro Antminers (the “Miners”), provided that the number of Miners would be reduced to 2,000 after BitNile makes the third Monthly Payment (as defined below), as set forth in the Security Agreement. In addition, pursuant to a Subsidiary Guaranty (the “Subsidiary Guaranty”), DP Lending jointly and severally agreed to guarantee and act as surety for BitNile’s obligation to repay the Notes.

The Notes are further secured by a guaranty (the “Parent Guaranty”) provided by the Company, as well as by Milton C. Ault, the Executive Chairman of the Company and BitNile.

Description of the Secured Promissory Notes

The Notes have a principal face amount of $11,000,000 and bear interest at 10% per annum, payable monthly in arrears, pursuant to the terms of the Notes. The maturity date of the Notes is August 10, 2023. The Notes contain standard and customary events of default including, but not limited to, failure to make payments when due under the Note, failure to comply with certain covenants contained in the Note, or bankruptcy or insolvency of BitNile.

BitNile is required to make an aggregate monthly payment (a “Monthly Payment”) of $1,000,000 on the tenth calendar day of each month, starting in September 2022. The Monthly Payment includes principal and interest pursuant to the amortization table set forth in the Notes. After BitNile makes the first six Monthly Payments, BitNile may elect to pay a forbearance fee of $1250,000 to an Investor, or an aggregate of $250,000 to the two Investors (each, a “Monthly Forbearance”) in lieu of a Monthly Payment, which Monthly Forbearance would extend the maturity date of such Notes by one month, provided that BitNile may not elect to make a Monthly Forbearance in consecutive months.

BitNile may prepay the full outstanding principal and accrued but unpaid interest at any time, provided that if BitNile prepays the Notes, BitNile is required to pay the Investors the amount of interest that would have accrued from the date of prepayment until the first anniversary of the issuance date of the Notes. The purchase price for the Notes was $10 million.

The foregoing descriptions of the Note, the NPA, the Security Agreement, the Subsidiary Guaranty and the Parent Guaranty do not purport to be complete and are qualified in their entirety by reference to their respective forms which are annexed hereto as Exhibits 4.1, 10.1, 10.2, 10.3 and 10.4, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.  The foregoing does not purport to be a complete description of the rights and obligations of the parties thereunder and such descriptions are qualified in their entirety by reference to such exhibits.