Exhibit 10.2


 


SECURITIES
PURCHASE AGREEMENT


 


THIS SECURITIES PURCHASE AGREEMENT
(“Agreement”) is made as of the 4th day of October, 2021 by and among Precision Optics Corporation, Inc., a Massachusetts
corporation (the “Company”), and the Investors set forth on the signature pages affixed hereto (each, an “Investor”
and collectively, the “Investors”).


 


RECITALS


 


A.       The
Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Rule 506 of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended;


 


B.       The
Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions
stated in this Agreement, up to an aggregate of 937,500 shares (the “Shares”) of the Company’s common stock, $0.01 par
value (“Common Stock”) at a purchase price of $1.60 per Share, or an aggregate of up to $1,500,000 (collectively, the
“Transaction”); and


 


C.       Contemporaneous
with the sale of the Shares, the parties hereto will execute and deliver a Registration Rights Agreement, in the form attached hereto
as Exhibit A (the “Registration Rights Agreement”), pursuant to which the Company will agree to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, and applicable
state securities laws.


 


In consideration of the mutual
promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:


 


1.             Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:


 


“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is controlled
by, or is under common control with, such Person.


 


“Business Day”
means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.


 


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


 


“Company’s Knowledge”
means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company, after due inquiry.


 


“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership
of voting securities, by contract or otherwise.


 


 


 


 






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“Intellectual Property”
means all of the following: (a) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether
or not reduced to practice); (b) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and Internet domain
names, together with all goodwill associated with each of the foregoing; (c) copyrights and copyrightable works; (d) registrations, applications
and renewals for any of the foregoing; and (e) proprietary computer software (including but not limited to data, data bases and documentation).


 


“Material Adverse Effect”
means a material adverse effect on (a) the assets, liabilities, results of operations, condition (financial or otherwise), business or
prospects of the Company and its Subsidiaries, taken as a whole, or (b) the ability of the Company to perform its obligations under the
Transaction Documents.


 


“Material Contract”
means any contract, instrument or other agreement to which the Company is a party or by which it is bound which has been filed as an exhibit
to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.


 


“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed
herein.


 


“Purchase Price”
means an aggregate of up to $1,500,000 at $1.60 per share.


 


“Registration Statement”
has the meaning set forth in the Registration Rights Agreement.


 


“SEC Filings”
means the Company’s most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “10-K”),
and all other reports filed by the Company pursuant to Sections 13(a), 13(e), 14 and 15(d) of the 1934 Act since the filing of the 10-K
and during the twelve (12) months preceding the date hereof.


 


“Securities”
means the Shares.


 


“Shares”
means the shares of Common Stock to be purchased by the Investors hereunder.


 


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


 


“Transaction Documents”
means this Agreement and the Registration Rights Agreement and documents referenced herein and therein, and the exhibits, appendices,
and schedules hereto and thereto.


 


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


 


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


 


2.             Closing.


 


2.1       Closing
Date. The date and time of the closing of the purchase of the Securities (the “Closing”) by the Investors shall
be 12 noon, New York City time, on such date as shall be mutually agreed to by the Company and the Investors, which in no event shall
be prior to, or more than three (3) Business Days after, the date of this Agreement (such date on which the Closing actually occurs, the
“Closing Date”), at the offices of Trombly Business Law, PC, 1314 Main St., Suite 102, Louisville, CO 80027.


 


 


 


 






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2.2       Closing
Actions. On the Closing Date, (i) each Investor shall pay the pro rata portion of the Purchase Price as set forth on the signature
pages to this Agreement to the Company, by wire transfer of immediately available funds in accordance with the Company’s written
wire instructions, and (ii) the Company shall irrevocably instruct the Company’s transfer agent to deliver to each Investor who
has so paid the pro rata Purchase Price one or more stock certificates, evidencing the Shares duly executed on behalf of the Company and
registered in the name of the Investor, within three (3) Business Days after the Closing.


 


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


 


3.1       Organization,
Good Standing and Qualification. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1 hereto.
Each of the Company and its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to
own or lease its properties, in each case as described in the SEC Filings. Each of the Company and its Subsidiaries is duly qualified
to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership
or leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably
be expected to have a Material Adverse Effect.


 


3.2       Authorization.
The Company has the corporate power and authority to enter into this Agreement and has taken all requisite action on its part, its officers,
directors and shareholders necessary for (a) the authorization, execution and delivery of the Transaction Documents, (b) the authorization
of the performance of all obligations of the Company hereunder or thereunder, and (c) the authorization, issuance (or reservation for
issuance) and delivery of the Securities The Transaction Documents constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally and to general equitable
principles.


 


3.3       Capitalization.
The Company has duly and validly authorized capital stock as set forth in the SEC Filings and in the Articles of Incorporation of the
Company, as amended and as in effect as of the Closing Date (the “Certificate of Incorporation”). All of the issued
and outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable
and free of pre-emptive rights and were issued in full compliance with applicable state and federal securities law and any rights of third
parties. Except as set forth in Schedule 3.3, no Person is entitled to pre-emptive or similar statutory or contractual rights
with respect to any securities of the Company. Except as set forth in Schedule 3.3, there are no outstanding warrants, options,
convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries
is or may be obligated to issue any equity securities of any kind and except as contemplated by this Agreement, neither the Company nor
any of its Subsidiaries is in negotiations for the issuance of any equity securities of any kind as of the date of this Agreement, other
than to employees. There are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements
of any kind among the Company and any of the securityholders of the Company relating to the securities of the Company held by them. Except
as set forth in Schedule 3.3, no Person has the right to require the Company to register any securities of the Company under
the 1933 Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account or for
the account of any other Person.


 


Except as set forth on Schedule
3.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities
to any other Person (other than the Investors) and will not result in the adjustment of the exercise, conversion, exchange or reset price
of any outstanding security.


 


3.4       Valid
Issuance. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be validly
issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions, except for restrictions on transfer
set forth in the Transaction Documents or imposed by applicable securities laws.


 


 


 


 






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3.5       Consents.
The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and sale of the Securities
require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings
that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities
laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy of the representations and warranties
of each Investor set forth in Section 4 hereof, the Company has taken all action necessary to exempt (a) the issuance
and sale of the Securities, and (b) any provision of the Articles of Incorporation or the Company’s Bylaws, as in effect as of the
Closing Date (the “Bylaws”), that is or could reasonably be expected to become applicable to the Investors as a result
of the transactions contemplated hereby, including, without limitation, the issuance of the Securities and the ownership, disposition
or voting of the Securities by the Investors or the exercise of any right granted to the Investors pursuant to this Agreement or the other
Transaction Documents.


 


3.6       Delivery
of SEC Filings; Business. The Company has made available to the Investors through the EDGAR system, true and complete copies of the
Company’s SEC Filings. The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period. The
Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings
contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries, taken as a whole.


 


3.7       Use
of Proceeds. The net proceeds of the sale of the Securities hereunder shall be used by the Company for general working capital needs
and corporate growth initiatives.


 


3.8       No
Material Adverse Change. Since the date of the latest audited financial statements included within the SEC Filings, there has not
been:


 


(a)                any
change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial
statements included in the Company’s 10-K, except for changes in the ordinary course of business which have not had and could not
reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; provided that any effects as a result of the
COVID-19 pandemic and the economic slowdown, to the extent that they also affect a business of similar operations shall not constitute
a Material Adverse Change;


 


(b)                any
declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company,
or any redemption or repurchase of any securities of the Company;


 


(c)                any
material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;


 


(d)                any
waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it;


 


(e)                any
satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the
ordinary course of business and which is not material to the assets, properties, financial condition, operating results or business of
the Company and its Subsidiaries, taken as a whole (as such business is presently conducted and as it is proposed to be conducted);


 


(f)                 any
change or amendment to the Articles of Incorporation or Bylaws, or material change to any material contract or arrangement by which the
Company or any Subsidiary is bound or to which any of their respective assets or properties is subject;


 


(g)                any
material labor difficulties or labor union organizing activities with respect to employees of the Company or any Subsidiary;


 


 


 


 






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(h)                any
material transaction entered into by the Company or any Subsidiary other than in the ordinary course of business;


 


(i)                 the
loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or any
Subsidiary;


 


(j)                 the
loss or, to the Company’s Knowledge, threatened loss of any customer which has had or could reasonably be expected to have a Material
Adverse Effect; or


 


(k)                any
other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.


 


3.9       SEC
Filings. At the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the
1934 Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.


 


3.10     No
Conflict, Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company and the
issuance and sale of the Securities will not (a) conflict with or result in a breach or violation of (i) any of the terms and provisions
of, or constitute a default under the Certificate of Incorporation or the Bylaws (true and complete copies of which have been made available
to the Investors through the EDGAR system), or (ii) any statute, rule, regulation or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over the Company or any of its assets or properties, or (b) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, encumbrance
or other adverse claim upon any of the properties or assets of the Company or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any Material Contract, except in the case of clauses (a)(ii) and (b) above,
such as could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.


 


3.11     Tax
Matters. The Company has prepared and filed (or filed applicable extensions therefore) all tax returns required to have been filed
by the Company with all appropriate governmental agencies and paid all taxes shown thereon or otherwise owed by it, other than any such
taxes which the Company is contesting in good faith and for which adequate reserves have been provided and reflected in the Company’s
financial statements included in the SEC Filings. The charges, accruals and reserves on the books of the Company in respect of taxes for
all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company nor, to the
Company’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits
by any federal, state or local taxing authority except for any assessment which is not material to the Company. All taxes and other assessments
and levies that the Company is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper
governmental entity or third party when due, other than any such taxes which the Company is contesting in good faith and for which adequate
reserves have been provided and reflected in the Company’s financial statements included in the SEC Filings. There are no tax liens
or claims pending or, to the Company’s Knowledge, threatened in writing against the Company or any of its assets or property. There
are no outstanding tax sharing agreements or other such arrangements between the Company and any other corporation or entity.


 


3.12     Title
to Properties. The Company has good and marketable title to all real properties and all other properties and assets (excluding Intellectual
Property assets which are the subject of Section 3.15 hereof) owned by it, in each case, free from liens, encumbrances
and defects that would materially affect the value thereof or materially interfere with the use made or planned as of the date of this
agreement to be made thereof by them unless failure to do so has not had and could not reasonably be expected to have a Material Adverse
Effect; and the Company holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially
interfere with the use made or planned as of the date of this agreement to be made thereof by them.


 


 


 


 






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3.13     Certificates,
Authorities and Permits. The Company possesses adequate certificates, authorities or permits issued by appropriate governmental agencies
or bodies necessary to conduct the business now operated by it, except to the extent failure to possess such certificates, authorities
or permits could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate, and the Company has not
received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined
adversely to the Company, could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.


 


3.14     Labor
Matters.


 


(a)                The
Company is not a party to or bound by any collective bargaining agreements or other agreements with labor organizations. The Company has
not violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees,
labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’
health, safety, welfare, wages and hours.


 


(b)                (i)
There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work stoppages,
job actions, disputes, lockouts or any other disruptions of or by the Company’s employees, (ii) there are no unfair labor practices
or petitions for election pending or, to the Company’s Knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company’s employees, (iii) no demand for recognition or certification heretofore
made by any labor organization or group of employees is pending with respect to the Company and (iv) to the Company’s Knowledge,
the Company enjoys good labor and employee relations with its employees and labor organizations.


 


(c)                The
Company is, and at all times has been, in compliance with all applicable laws respecting employment (including laws relating to classification
of employees and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration
and naturalization, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate. There are no claims pending against the Company before the Equal Employment Opportunity Commission or any other administrative
body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, 42 U.S.C.
§§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance barring discrimination in employment.


 


3.15     Intellectual
Property. The Company owns, or has obtained valid and enforceable licenses for, or other rights to use, the Intellectual Property
necessary for the conduct of the business of the Company as conducted as of the date of this agreement and as described in the SEC Filings
as being owned or licensed by them, except where the failure to own, license or have such rights could not reasonably be expected
to result in a Material Adverse Effect, individually or in the aggregate. Except as set forth in Schedule 3.15 (a) to the Company’s
Knowledge, there are no third parties who have or will be able to establish rights to any Intellectual Property, except for the ownership
rights of the owners of the Intellectual Property which is licensed to the Company as described in the SEC Filings or where such rights
could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate, (b) there is no pending
or, to the Company’s Knowledge, threat of any, action, suit, proceeding or claim by others challenging the Company’s rights
in or to, or the validity, enforceability, or scope of, any Intellectual Property owned by or licensed to the Company or claiming
that the use of any Intellectual Property by the Company in its businesses as conducted as of the date of this agreement infringes, violates
or otherwise conflicts with the intellectual property rights of any third party, and (c) to the Company’s Knowledge, the use by
the Company of any Intellectual Property by the Company in its businesses as conducted as of the date of this agreement does not infringe,
violate or otherwise conflict with the intellectual property rights of any third party.


 


3.16     Environmental
Matters. To the Company’s Knowledge, the Company is not in violation of any statute, rule, regulation, decision or order of
any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances
or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable
for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental
Laws, which violation, contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened investigation that might lead to such a
claim.


 


 


 


 






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3.17     Litigation.
There are no pending actions, suits or proceedings against or affecting the Company or any of its properties; and to the Company’s
Knowledge, no such actions, suits or proceedings are threatened, except any such proceeding, which if resolved adversely to the Company,
could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate. Neither the Company nor any director
or officer thereof, is or has been the subject of any action involving a claim of violation of or liability under federal or state securities
laws or a claim of breach of fiduciary duty. There has not been, and to the Company’s Knowledge, there is not pending or contemplated,
any investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the
1934 Act.


 


3.18     Financial
Statements. The financial statements included in each SEC Filing comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent corrected by a subsequent
restatement) and present fairly, in all material respects, the consolidated financial position of the Company as of the dates shown and
its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity
with United States generally accepted accounting principles applied on a consistent basis (“GAAP”) (except as may be
disclosed therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted by Form 10-Q under the 1934
Act). Except as set forth in the SEC Filings filed prior to the date hereof, the Company has not incurred any liabilities, contingent
or otherwise, except those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since
the date of such financial statements, none of which, individually or in the aggregate, have had or could reasonably be expected to have
a Material Adverse Effect.


 


3.19     Insurance
Coverage. The Company maintains in full force and effect insurance coverage that is customary for comparably situated companies for
the business being conducted and properties owned or leased by the Company.


 


3.20     Brokers
and Finders. No Person, including, without limitation, any Investor or any current holder of shares of Common Stock, will have, as
a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company
or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or
on behalf of the Company. Except as a result of any agreements or arrangements made by an Investor or its representatives or Affiliates,
to the Company’s knowledge, Investors shall have no obligation with respect to any such fees or commissions of a type contemplated
in this Section 3.20 that may be due in connection with the transactions contemplated by this Agreement.


 


3.21     No
Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any general
solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities.


 


3.22     No
Integrated Offering. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 4 hereof,
neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any Company security or solicited any offers to buy any security, which are or will be integrated with this offering of the
Securities hereunder in a manner that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration
for the transactions contemplated hereby or would require registration of the Securities under the 1933 Act.


 


3.23     Private
Placement. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 4 hereof,
the offer and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933
Act.


 


3.24     Bad
Actor Disqualification.


 


 


 


 






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(a)                No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under the 1933 Act (“Regulation
D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other
officer of the Company participating in the offering, any beneficial owner of 20% or more of the Company's outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the
Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the 1933 Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company
has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Investors a copy of
any disclosures provided thereunder.


 


(b)                Other
Covered Persons. The Company is not aware of any person that (i) has been or will be paid (directly or indirectly) remuneration for
solicitation of an Investor in connection with the sale of the Securities and (ii) who is subject to a Disqualification Event.


 


(c)                Notice
of Disqualification Events. The Company will notify the Investors in writing of (i) any Disqualification Event relating to any Issuer
Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered
Person, prior to any Closing of this Offering.


 


3.25     Questionable
Payments. Neither the Company nor, to the Company’s Knowledge, any of its current or former shareholders, directors,
officers, employees, agents or other Persons acting on behalf of the Company, has, on behalf of the Company or in connection with its
businesses, (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to foreign
or domestic political activity, (b) made any direct or indirect unlawful payments to any foreign or domestic governmental officials or
employees from corporate funds, (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets, (d)
made any false or fictitious entries on the books and records of the Company, or (e) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of any nature.


 


3.26     Transactions
with Affiliates. Except as disclosed in the SEC Filings, none of the officers or directors of the Company and, to the Company’s
Knowledge, none of the employees of the Company is presently a party to any transaction with the Company (other than as holders of stock
options and/or warrants, and for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee or partner.


 


3.27     Internal
Controls. Except as disclosed in the SEC Filings, the Company is in material compliance with the provisions of the Sarbanes-Oxley
Act of 2002 applicable to the Company as of the date of this agreement. The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific
authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or specific authorization,
and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in 1934 Act Rules 13a-15(e)
and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the
Company is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s
most recently filed periodic report under the 1934 Act, as the case may be, is being prepared. The Company’s certifying officers
have evaluated the effectiveness of the Company’s controls and procedures as of the end of the period covered by the most recently
filed periodic report under the 1934 Act (such date, the “Evaluation Date”). The Company presented in its most recently
filed periodic report under the 1934 Act the conclusions of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes
in the Company’s internal controls (as such term is defined in Item 308 of Regulation S-K) or, to the Company’s Knowledge,
in other factors that could significantly affect the Company’s internal controls. The Company maintains and will continue to maintain
a standard system of accounting established and administered in accordance with GAAP and the applicable requirements of the 1934 Act while
it continues to report under the 1934 Act.


 


 


 


 






    	 	8	 



     


    

 


3.28     Investment
Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing will not
be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.


 


3.29     Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Articles of Incorporation or the laws of the state of its incorporation
which is or could become applicable to the Investor as a result of the transactions contemplated by this Agreement, including, without
limitation, the Company's issuance of the Securities and the Investors' ownership of the Securities.


 


3.30     Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely
publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor
or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information which
is not otherwise disclosed in the Registration Statement or the SEC Documents unless the Investor has agreed verbally or in writing to
receive such information in which case this sentence does not apply. The Company understands and confirms that the Investor will rely
on the foregoing representation in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on
behalf of the Company to the Investor regarding the Company, its business and the transactions contemplated hereby, including the disclosure
schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and
agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 3 hereof.


 


3.31     Shell
Company Status. The Company is not as of the date of this agreement, and never has been, an issuer identified in Rule 144(i)(1) under
the 1933 Act.


 


3.32     Each
of the Investors acknowledges and agrees that the Company has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Section 3. Each of the Investors further acknowledges
and agrees that neither the Company nor any other Person has made any representation or warranty, expressed or implied, as to the accuracy
or completeness of any information received by any such Investor which constitutes or may be deemed to constitute a projection, estimate
or other forecast and certain business plan information, except that such information was prepared in good faith and based upon assumptions
that the Company believes to have been reasonable at the time such information, if any, was provided to the applicable Investor.


 


4.             Representations
and Warranties of the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company that:


 


4.1       Organization
and Existence. If such Investor is not a natural person, such investor is a corporation, limited partnership or limited liability
company duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization
and has all requisite corporate, partnership or limited liability company power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.


 


4.2       Authorization.
The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been duly
authorized and each will constitute the legal, valid and binding obligation of such Investor, enforceable against such Investor in accordance
with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally.


 


 


 


 






    	 	9	 



     


    

 


4.3       Consents.
All consents, approvals, orders and authorizations required on the part of such Investor in connection with the execution, delivery or
performance of each Transaction Document and the consummation of the transactions contemplated hereby and thereby have been obtained and
are effective as of the date hereof.


 


4.4       Purchase
Entirely for Own Account. The Securities to be received by such Investor hereunder will be acquired for such Investor’s own
account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act,
and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same and has no arrangement
or understanding with any other Persons regarding the distribution of such Securities in violation of the 1933 Act or any applicable state
securities law without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part
of such Securities in compliance with applicable federal and state securities laws. Such Investor is acquiring the Securities hereunder
in the ordinary course of its business. Nothing contained herein shall be deemed a representation or warranty by such Investor to hold
the Securities for any period of time. Such Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged
in a business that would require it to be so registered.


 


4.5       Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment
contemplated hereby.


 


4.6       Disclosure
of Information. The Company has made available the annual report on Form 10-K for the year ended June 30, 2021 and such Investor has
had the opportunity to review such report. Such Investor has had an opportunity to receive all information related to the Company requested
by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of
the offering of the Securities. Such Investor acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor any other
due diligence investigation conducted by such Investor shall modify, limit or otherwise affect such Investor’s right to rely on
the Company’s representations and warranties contained in this Agreement. Investor is aware that COVID-19 and/or the economic disruptions
resulting from COVID-19 may impact the Company’s operations, financial results and condition to an extent currently unforeseeable
by the Company.


 


4.7       Restricted
Securities. Such Investor understands that the Securities are characterized as “restricted securities” under the U.S.
federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited
circumstances.


 


4.8       Legends.
It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend:


 


(a)                 “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT AND SUCH
REGISTRATION STATEMENT REMAINS EFFECTIVE, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) COMPANY COUNSEL HAS OPINED THAT
SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT.”


 


(b)                If
required by the authorities of any state in connection with the issuance or sale of the Securities, the legend required by such state
authority.


 


 


 


 






    	 	10	 



     


    

 


4.9       Accredited
Investor. Such Investor is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act. Such
Investor was not organized for the specific purpose of acquiring the Securities and is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act.


 


4.10     No
General Solicitation. Such Investor did not learn of the investment in the Securities as a result of any general solicitation or general
advertising.


 


4.11     Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest
or claim against or upon the Company or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of such Investor.


 


4.12     Prohibited
Transactions. Since such time as such Investor was first contacted by the Company or any other Person acting on behalf of the Company
regarding the transactions contemplated hereby through the public announcement of the Transaction, neither such Investor nor any Affiliate
of such Investor which (a) had knowledge of the transactions contemplated hereby, (b) has or shares discretion relating to such Investor’s
investments or trading or information concerning such Investor’s investments, including in respect of the Securities, or (c) is
subject to such Investor’s review or input concerning such Affiliate’s investments or trading has, directly or indirectly,
effected or agreed to effect, or will directly or indirectly effect, any short sale, whether or not against the box, established any “put
equivalent position” (as defined in Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock, granted any other right
(including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes,
relates to or derived any significant part of its value from the Common Stock or otherwise sought to hedge its position in the Securities
(each, a “Prohibited Transaction”). Such Investor acknowledges that the representations, warranties and covenants contained
in this Section 4.12 are being made for the benefit of the Investors as well as the Company and that each of the other
Investors shall have an independent right to assert any claims against such Investor arising out of any breach or violation of the provisions
of this Section 4.12.


 


The Company acknowledges and
agrees that each Investor has not made any representations or warranties with respect to the transactions contemplated by the Transaction
Documents other than those specifically set forth in this Section 4.


 


5.             Conditions
to Closing.


 


5.1       Conditions
to the Investors’ Obligations. The obligation of each Investor to purchase the Securities at the Closing is subject to the fulfillment
to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be waived by such
Investor (as to itself only):


 


(a)                The
representations and warranties made by the Company in Section 3 hereof qualified as to materiality shall be true and
correct at all times prior to and on the Closing Date as so qualified, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date as so qualified,
and, the representations and warranties made by the Company in Section 3 hereof not qualified as to materiality shall
be true and correct in all material respects at all times prior to and on the Closing Date, except to the extent any such representation
or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material
respects as of such earlier date. The Company shall have performed in all material respects all obligations and covenants herein required
to be performed by it on or prior to the Closing Date.


 


(b)                The
Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation
of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the Transaction Documents, all
of which shall be in full force and effect.


 


(c)                The
Company shall have executed and delivered the Registration Rights Agreement.


 


 


 


 






    	 	11	 



     


    

 


(d)                No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court
or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted
by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction
Documents.


 


(e)                The
Investors shall have received an opinion from Trombly Business Law, PC, dated as of the Closing Date, in form and substance reasonably
acceptable to the Investors and addressing such legal matters as the Investors may reasonably request.


 


(f)                 No
stop order or suspension of trading shall have been imposed by the SEC or any other governmental or regulatory body with respect to public
trading in the Common Stock.


 


5.2       Conditions
to Obligations of the Company. The Company’s obligation to sell and issue the Shares at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:


 


(a)                The
representations and warranties made by the Investors in Section 4 hereof, other than the representations and warranties
contained in Sections 4.4, 4.5, 4.6, 4.7, 4.8, 4.9 and 4.10 (the
“Investment Representations”), shall be true and correct in all material respects when made, and shall be true and
correct in all material respects on the Closing Date with the same force and effect as if they had been made on and as of said date. The
Investment Representations shall be true and correct in all respects when made, and shall be true and correct in all respects on the Closing
Date with the same force and effect as if they had been made on and as of said date. The Investors shall have performed in all material
respects all obligations and covenants herein required to be performed by them on or prior to the Closing Date.


 


(b)                The
Investors shall have executed and delivered the Registration Rights Agreement.


 


(c)                The
Investors shall have delivered the Purchase Price to the Company.


 


5.3       Termination
of Obligations to Effect Closing.


 


(a)                The
obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:


 


	 	(i)	Upon the mutual written consent of the Company and the Investors;


 


	 	(ii)	By the Company if any of the conditions set forth in Section 5.2 shall have become incapable of fulfillment, and shall not have been waived by the Company;


 


	 	(iii)	By an Investor (with respect to itself only) if any of the conditions set forth in Section 5.1 shall have become incapable of fulfillment, and shall not have been waived by the Investor;


 


	 	(iv)	By either the Company or any Investor (with respect to itself only) if the Closing has not occurred on or prior to November 30, 2021; or


 


	 	(v)	By either the Company or any Investor (with respect to itself only) if the NYSE and Nasdaq are closed for a period of more than three trading days;


 


provided, however, that, except in the case of clause
(i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such breach has resulted in the
circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.


 


 


 


 






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(b)                In
the event of termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 5.3,
written notice thereof shall forthwith be given to the other Investors by the Company and the other Investors shall have the right to
terminate their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this Section
5.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this
Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of
its obligations under this Agreement or the other Transaction Documents.


 


6.             Covenants
and Agreements.


 


6.1       No
Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict
or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents.


 


6.2       Insurance.
The Company shall maintain appropriate insurance coverage consistent with its business being conducted.


 


6.3       Compliance
with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all
governmental authorities.


 


6.4       Listing
of Underlying Shares and Related Matters. If the Company applies to have its Common Stock or other securities traded on any principal
stock exchange or market, it shall include in such application the Shares and will take such other action as is necessary to cause such
Common Stock to be so listed.


 


6.5       Termination
of Covenants. The provisions of Sections 6.4 through 6.6 shall terminate and be of no further force
and effect on the date on which the Company’s obligations under the Registration Rights Agreement to register or maintain the effectiveness
of any registration covering the Registrable Securities (as such term is defined in the Registration Rights Agreement) terminates.


 


6.6       Removal
of Legends. Consistent with federal and state securities laws, upon the earlier of (a) the sale or disposition of any Securities by
an Investor pursuant to Rule 144 or pursuant to any other exemption under the 1933 Act or (b) any Securities of the Investor becoming
eligible to be sold without restriction pursuant to all applicable requirements of Rule 144, upon the written request of such Investor,
the Company shall or, in the case of Common Stock, shall cause the transfer agent for the Common Stock (the “Transfer Agent”)
to issue replacement certificates representing such Securities.


 


6.7       Subsequent
Equity Sales.


 


(a)            The
Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers
to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer
or sale of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to the Investors,
or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any trading market such
that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before
the closing of such subsequent transaction.


 


(b)       
    If the Company issues shares of Common Stock at a purchase price of less than $1.60 per share (the “Reduced
Purchase Price”) during the twelve (12) months following the Closing, Investor shall receive a number of shares of Common Stock
equal to the difference between the number of shares Investor would have received at the Reduced Purchase Price and the number of Shares
Investor received at the Purchase Price (the “Additional Shares”); provided that shares of Common Stock issued (i) upon the
exercise or conversion of any outstanding stock options, warrants or other equity; or (ii) under the Company’s registration statement
on Form S-8 for compensation shall be excluded from the forgoing. The Company shall promptly instruct the Transfer Agent to issue such
Additional Shares in the same manner as the Shares. The Additional Shares shall carry the same registration rights as the shares issued
at the Reduced Purchase Price.


 


 


 


 






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6.8       Equal
Treatment of Investors. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of
any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction
Documents. For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated
separately by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as
the Investors acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.


 


6.9       Prohibited
Transactions. From the date hereof until one (1) year after the Closing Date, no Investor shall enter into any Prohibited Transaction
relating to the Common Stock.


 


7.             Survival
and Indemnification.


 


7.1       Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions contemplated
by this Agreement until the expiration of the applicable statute of limitations.


 


7.2       Indemnification.
The Company agrees to indemnify and hold harmless each Investor, its Affiliates and, and each of their directors, officers, shareholders,
partners, employees, agents, and any Person who controls Investor within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act (collectively, the “Investor Parties” and each an “Investor Party”), from and against any
and all losses, claims, damages, liabilities and expenses (including, without limitation, actual and reasonable attorney fees and disbursements
(subject to Section 7.3 below) and other actual expenses incurred in connection with investigating, preparing or defending
any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, “Losses”)
to which such Person may become subject as a result of (a) any breach of any representation, warranty, covenant or agreement made by or
to be performed on the part of the Company under the Transaction Documents; (b) any action instituted against any Investor Party, or any
of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of an Investor Party, with respect to
any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of Investor’s representation,
warranties or covenants or agreements under the Transaction Documents or any agreements or understandings Investor may have with any such
stockholder or any violations by Investor of state or federal securities laws or any conduct by Investor which constitutes fraud, gross
negligence, willful misconduct or malfeasance), (c) any untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement (or in a Registration Statement as amended by any post-effective amendment thereof by the Company) or arising out
of or based upon any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, and/or (d) any untrue statement or alleged untrue statement of a material fact included in any Prospectus ( or
any amendments or supplements to any Prospectus ), or arising out of or based upon any omission or alleged omission to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that (i) the Company shall not be obligated to indemnify any Investor Party for any Losses finally adjudicated to have
been caused solely by an untrue statement of a material fact or an omission to state a material fact made in reliance upon and conformity
with information furnished to the Company in writing by or on behalf of such Person expressly for use in the Registration Statement or
the Prospectus (or any amendment or supplement thereto) and (ii) the foregoing indemnity shall not inure to the benefit of any Investor
Party from whom the Person asserting any Losses purchased Securities, if a copy of the Prospectus (as then supplemented) was not sent
or given by or on behalf of such Investor Party to such Person, if required by law to have been delivered, at or prior to the written
confirmation of the sale of such Securities to such person, and if delivery of the Prospectus (as then supplemented) would have cured
the defect giving rise to such Losses, and the Company will reimburse any such Person for all such amounts as they are incurred by such
Person.


 


 


 


 






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7.3       Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (a) give prompt notice to
the indemnifying party of any claim with respect to which it seeks indemnification and (b) permit such indemnifying party to assume the
defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled
to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the
fees and expenses of such counsel shall be at the expense of such person unless (i) the indemnifying party has agreed to pay such fees
or expenses, (ii) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such person or (iii) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict of interest
exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying
party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall
not have the right to assume the defense of such claim on behalf of such person); and provided, further, that
the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder,
except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such
claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction,
be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the indemnified party, consent to entry of any judgment or enter into any settlement that does
not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation. The Company will not be liable to any indemnified party under this Agreement (a) for any settlement
by such indemnified party effected without the Company’s prior written consent, which shall not be unreasonably withheld, conditioned
or delayed, or (b) for any Losses incurred by such indemnified party which a court of competent jurisdiction determines in a final judgment
which is not subject to further appeal are solely attributable to (A) a breach of any of the representations, warranties, covenants or
agreements made by such indemnified party under this Agreement or in any other Transaction Document or (B) the fraud, gross negligence
or willful misconduct of such indemnified party.


 


8.             Miscellaneous.


 


8.1       Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and their respective
successors and assigns. An Investor may transfer or assign, in whole or from time to time in part, to one or more persons its rights hereunder
in connection with the transfer of Securities by such Investor to such person, provided that (a) the Investor agrees in writing with such
transferee or assignee to assign all or any portion of such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment; (b) the Company is, within a reasonable time after such transfer or assignment, furnished with
written notice of (i) the name and address of such transferee or assignee, and (ii) the securities with respect to which such registration
rights are being transferred or assigned; (c) immediately following such transfer or assignment the further disposition of such securities
by such transferee or assignee is restricted under the 1933 Act or applicable state securities laws if so required; (d) at or before the
time the Company receives the written notice contemplated by clause (b) of this sentence such transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; (e) such transfer or assignment shall have been made in accordance
with the applicable requirements of this Agreement; and (f) such transfer or assignment shall have been conducted in accordance with all
applicable federal and state securities laws. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Without limiting the generality of the foregoing, in the event that the Company is a
party to a merger, consolidation, share exchange or similar business combination transaction in which the Common Stock is converted into
the equity securities of another Person, from and after the effective time of such transaction, such Person shall agree to and, by virtue
of such transaction, have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to
such Person and the term “Common Stock” shall be deemed to refer to the securities received by the Investors in connection
with such transaction. 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.


 


 


 


 






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8.2       Counterparts;
Faxes. 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. This Agreement may also be executed via facsimile or by e-mail in a “.pdf” format
data file, which shall be deemed an original.


 


8.3       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.


 


8.4       Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively
given as hereinafter described (a) if given by personal delivery, then such notice shall be deemed given upon such delivery, (b) if given
by facsimile or e-mail, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (c) if given by mail,
then such notice shall be deemed given upon the earlier of (i) receipt of such notice by the recipient or (ii) three days after such notice
is deposited in first class mail, postage prepaid, and (d) if given by an internationally recognized overnight air courier, then such
notice shall be deemed given one Business Day after delivery to such carrier. All notices shall be addressed to the party to be notified
at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other
party:


 


If to the Company:


 


Precision Optics Corporation, Inc.

22 East Broadway


Gardner, Massachusetts 01440-3338

Attention: Chief Executive Officer

Fax: (978) 630-1487


E-mail: [____]


 


With a copy to (which shall not constitute notice):


 


Amy Trombly


Trombly Business Law, PC

1314 Main St., Ste 150


Louisville, CO 80027


Fax: (617) 243-0066


E-mail: [____]


 


If to the Investors:


 


to the addresses set forth on the signature pages hereto.


 


8.5       Expenses.
The parties hereto shall pay their own costs and expenses in connection herewith, regardless of whether the transactions contemplated
hereby are consummated. In the event that legal proceedings are commenced by any party to this Agreement against another party to this
Agreement in connection with this Agreement or the other Transaction Documents, the party or parties which do not prevail in such proceedings
shall severally, but not jointly, pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket
costs and expenses incurred by the prevailing party in such proceedings.


 


 


 


 






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8.6       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 Investors representing
at least one-half of the shares issued in this transaction. Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities,
and the Company.


 


8.7       Publicity.
The Company will file a public release or announcement concerning the transactions contemplated hereby as required by law or the applicable
rules or regulations of any securities exchange or securities market.


 


8.8       Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect.


 


8.9       Entire
Agreement. This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute the
entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersedes all prior agreements and
understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof.


 


8.10     Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.


 


8.11     Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of New York applicable to agreements made and to be performed entirely within the State of New York (except to the extent
the provisions of the California Corporations Code would be mandatorily applicable to the issuance of the Shares). Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or
arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under
this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding
and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES
ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY
AS TO THIS WAIVER.


 


8.12     Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations
of any other Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant to the Transaction
Documents has been made by such Investor independently of any other Investor. Nothing contained herein or in any Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor acknowledges that no other Investor
has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of
such Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents.
Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out
of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional
party in any proceeding for such purpose. Each Investor has been represented by its own separate legal counsel in their review and negotiation
of the Transaction Documents. The Company acknowledges that each of the Investors has been provided with the same Transaction Documents
for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.


 


[Signature Pages Follow]


 


 



    	 	17	 



     


    

 


IN WITNESS WHEREOF, the parties
have executed this Securities Purchase Agreement or caused their duly authorized officers to execute this Securities Purchase Agreement
as of the date first above written.


 


	The Company:	PRECISION OPTICS CORPORATION, INC.
	 	 
	 	By: 	/s/ Joseph N. Forkey
	 	Name:

Title:	Jospeh N. Forkey

President and Chief Executive Officer


 


 


 


[Signature Page for Investor Follows]


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



    	 	18	 



     


    

 


[Signature Page to Securities Purchase Agreement]


 


	Name of Investor:	 	_________________________________
	 	 	 
	 	 	By: ______________________________
	 	 	Name:
	 	 	Title:
	 	 	 
	Address for Delivery of Certificate to Investor:	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________
	 	 	Fax: _____________________________
	 	 	Email: ____________________________
	 	 	 
	Address for Notice (if different):	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________
	 	 	Fax: _____________________________
	 	 	Email: ____________________________
	 	 	 
	Subscription Amount:	 	$ __________
	 	 	 
	Shares	 	___________
	 	 	 
	EIN Number:	 	___________
	 	 	 


 


 


 


 


 


 


 


 


 


 


 



    	 	19	 



     


    

 


Schedule A


 


Purchase and Sale of Shares


 


	
     

    Name
	Number of Shares of

Common Stock	
    Aggregate

    Purchase Price

	[investor name]	 	 
	 	 	 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	20	 



     


    

 


Disclosure Schedules to the Securities Purchase
Agreement


 


Schedule 3.1 – Subsidiaries.


 


	Name	 	Jurisdiction of Incorporation
	 	 	 
	Precise Medical, Inc.	 	Commonwealth of Massachusetts, USA
	Wood’s Precision Optics Corporation, Limited	 	Hong Kong


 


 


Schedule 3.3 – Capitalization.


 


The capitalization of the Company, as of June
30, 2021 is set forth below.


 


	Common stock outstanding	13,282,476
	Common stock options	2,578,200
	Total	15,860,676


 


 


Schedule 3.15 Intellectual Property.


 


On July 28, 2011, as reported in the Company’s
Form 8-K filed with the SEC on August 3, 2011, the Company entered into an asset purchase agreement with Intuitive Surgical Operations,
Inc., through which the Company assigned all of the issued and pending patents that the Company held as of the date of the agreement.
As part of the agreement the Company retained an exclusive license to directly and indirectly make, use, develop, modify, improve, substitute,
iterate, combine, distribute, offer for sale, and sell, import and export products outside the field of medical robotics throughout countries
worldwide and a non-exclusive license to directly and indirectly make, use, develop, modify, improve, substitute, iterate, combine, distribute,
offer for sale, and sell, import and export products and services for in vitro procedures utilizing genomic and/or proteomic lab-on-a-chip
or other similar benchtop diagnoses, both inside and outside the field of medical robotics throughout countries worldwide.


 


 


 


 


 


 


 


 


 


 


 


 


 



    	 	21	 



     


    

 


Exhibit A


 


Registration Rights Agreement


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	22