Document:

Exhibit 10.3

  

ASSUMPTION
OF MORTGAGE DEBT

 

This
Assumption of Mortgage Debt (this “Agreement”), is entered into as of January 22, 2015 and effective as of June 30,
2014 by and between Necdet Ergul, an individual residing in Connecticut (“Ergul”) and Microphase Corporation, a Connecticut
corporation with offices at 587 Connecticut Avenue, Norwalk Connecticut 06856 (the “Company”).

 

RECITALS

 

Ergul
is the founder of the Company and, for the past 50 years has been its President, a director and one of its principal stockholders.
To provide working capital for the Company, Ergul through June 30, 2014, made advances of funds to the Company amounting to an
aggregate of $131,545, net of any repayments, as of June 30, 2014 (the “Advanced Funds”).

 

Ergul
initially borrowed the Advanced Funds from Wells Fargo Bank N.A. (the Bank”) under a line of credit secured by a first mortgage
on Ergul’s residence (the “Mortgage Debt”). (See Appendix A) Ergul is the primary obligor of the Mortgage Debt;
and the residence which serves as the collateral for the Mortgage Debt is owned by his daughters.

 

Ergul
represents that there are no events of default under the Mortgage Debt which have not been satisfied or waived by the Bank.

 

Ergul
further represents that all funds borrowed by him under the line of credit from the Bank and which are part of the Mortgage Debt
have been delivered by him to the Company as advances to the Company for its use. In recognition of this fact, the parties now
wish to have the Company assume and pay the Mortgage Debt in accordance with its terms

 

AGREEMENTS

 

1.   The
Company hereby agrees to assume and become the primary obligor of the Mortgage Debt and to pay each and every charge owing to the
Bank or any other holder of the Mortgage Debt when due. The Company will execute and deliver any documents that may be necessary
to effect such assumption.

 

2.   In
accordance with the Company's assumption of the Mortgage Debt the reduction in the amounts owed by the Company to Ergul shall be
allocated as follows: (i) the debt owed by the Company to Ergul will be reduced by $100,000 and (ii) the unpaid compensation owed
by the Company to Ergul will be reduced by by $31,545.

 

3.   The
Company indemnifies Ergul and his heirs, legal representatives and assigns from and against any loss or expense which any of them
may suffer arising out of demand by the Bank or any other holder of the Mortgage Debt that they or any of them pay all or any part
of the Mortgage Debt, including interest or other fees or penalties.

 

 

    	 

    	 

    

 

4.   This
Agreement shall be governed by the laws of the state of Connecticut. Any notices or other communications by one party to the
other shall be in writing and delivered in person or by overnight express mail to the party to receive the same at his or its
address set forth above or to such other address as shall be given to such party by notice give as provided herein. This
Agreement shall represent the entire agreement of the parties with respect to its subject matter and shall be binding on the
parties and their respective successors, heirs, executors and assigns. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument and fax or PDF
copies of signatures shall be treated as originals for all purposes.

 

Dated
as of January 22, 2015 and effective as of the June 30, 2014

 

	MICROPHASE CORPORATION	 	 
	 	 	 
	By:	/s/ Ronald Durando,	 	/s/ Necdet Ergul

	 	Ronald Durando,	 	NECDET ERGUL, an individual
	 	Chief Operating Officer	 	 

 

 

 

    	 

    	 

    

 

 

Account
Number: 4386542010625207

 

Wachovia
Bank, National Association 

Prime
Equity Line of Credit Agreement & Disclosure Statement

 

	Date of Agreement:	 	May 20, 2003	 
	 	 	 	 	 
	Maximum Credit Limit:	 	$	600000.00	 
	 	 	 	 	 
	Borrower(s)	 	 	 	 

 

	NECDET ERGUL	 
	GONUL T ERGUL	 
	 	 
	 	 

 

The
Prime Equity Line of Credit Agreement & Disclosure Statement (“Agreement”) contains the terms which apply to the
Prime Equity Line Account (“Account”) with Wachovia Bank, National Association. The words “I,” “me,”
and “my,” which also mean “we,” “us,” and “our,” if more than one Borrower, mean the
person or persons signing this Agreement. The words “you,” “your,” and “yours” mean Wachovia Bank,
National Association (“Wachovia Bank, N.A.”).

 

ACCESSING
THE PRIME EQUITY LINE

Wachovia
Bank, N.A. will establish an Account and issue to me Prime Equity Line Checks and if applicable law permits, a Credit Card
Access Device (“Card”). The Prime Equity Line Checks and Card can be used to obtain Advances from my Account during
the Draw Period, up to the amount of the Maximum Credit Limit established in this Agreement. Wachovia Bank, N.A. will charge all
Advances obtained under the terms of this Agreement to my Account. Advances made pursuant to Prime Equity Line Checks will be for
the amount of the Prime Equity Line Check. Advances made pursuant to the use of a Card will be for the amount of the purchase
or for the amount of the Advance obtained with the Card at any ATM or other outlet.

 

If I have a Demand Deposit Account with you
and I request you to initiate an Advance from my Account, so that items presented against my Demand Deposit Account which would
otherwise overdraw my Wachovia Bank, N.A. Demand Deposit Account are honored, I agree that Wachovia Bank, N.A. may charge such
Advances to my Account and that such Advances shall be in increments of $100.00.

 

I agree that any Prime Equity Line Checks or
Cards that you supply to me are your property and must be returned to you immediately upon demand if I am in Default of this Agreement
or my Advance privileges are terminated or suspended in accordance with the terms of this Agreement.

 

MAXIMUM CREDIT LIMIT

My Maximum Credit Limit is indicated above.
I agree never to allow the Outstanding Balance due on my Account to exceed the Maximum Credit Limit. I also agree that you are
not obligated to pay any Advance or other charge against my Account that would make my Account Outstanding Balance exceed my Maximum
Credit Limit. I agree to immediately repay, upon demand, any Outstanding Balance that exceeds the Maximum Credit Limit established
hereunder. Any increases in my Maximum Credit Limit I request will require that a new application be approved in accordance with
your then applicable underwriting standards and I must sign any additional agreements that in your opinion are necessary to secure
your interest.

 

DRAW PERIOD

Except as provided herein and unless terminated
earlier in accordance with the terms of this Agreement, I may obtain Advances under the terms of this Agreement for twenty (20)
years from the Date of Agreement (“Draw Period”). For Accounts secured by property located in Connecticut, the Draw
Period is ten (10) years from the Date of Agreement.

 

OBLIGATION TO LEND

You are absolutely obligated under the terms
of this Agreement to make Advances not to exceed, at any one time in the aggregate, the amount indicated as the Maximum Credit
Limit and I agree to repay any Advances under the terms of this Agreement. Your obligation to make Advances to me under this Agreement
ends when the right to obtain Advances terminates at the end of the Draw Period or when such Advance privileges are suspended or
terminated in accordance with the terms of this Agreement.

 

FINANCE CHARGE ON
MY ACCOUNT BALANCE

 

	(a)	My Account has a monthly billing cycle. A Finance Charge computed on a monthly periodic rate will be imposed, if at the end of any day of the billing cycle, there is a balance owing on my Account. The monthly periodic rate for an initial Advance, if any, made by you will begin to accrue on the date of this Agreement. The monthly periodic rate for any Advance other than an initial Advance will begin to accrue on the Transaction Date as indicated on my billing statement.
	(b)	You will figure the Finance Charge on my Account by applying the monthly periodic rate to the “average daily balance” owing on my Account (including current transactions). To calculate the “average daily balance” you will take the beginning balance of my Account each day, add any new Advances and Fees charged to the Account pursuant to the terms of this Agreement, and subtract any payments or credits. This gives you the daily balance. Then, you will add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives you the “average daily balance.”
	(c)	The Finance Charge imposed during a
    billing cycle will be determined by applying the monthly periodic rate that is 1/12 of the corresponding ANNUAL PERCENTAGE
    RATE to the average daily balance. The ANNUAL PERCENTAGE RATE and monthly periodic rate are variable rates and
    are subject to change on the first day of each billing cycle, if there was a prior change in the Index, which is the Prime
    Rate as regularly published in the Eastern edition of The Wall Street Journal (“Prime Rate”).

 

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	(d)	If the Prime Rate becomes
    unavailable, you will select a new index which is based on a historical movement substantially similar to the original Index
    and the new index and margin will result in an ANNUAL PERCENTAGE RATE substantially similar to the rate in effect at
    the time the Prime Rate becomes unavailable. You will give me notice of this change.
	(e)	The corresponding ANNUAL PERCENTAGE
    RATE is effective as of the 1st day of the calendar month in which you receive your Statement and is based on the Prime
    Rate as published in the Eastern edition of The Wall Street Journal on the 25th day of the prior calendar month plus
    a Margin of -0.25 %. If more than one Prime Rate is published on the 25th day of the prior calendar month, you will use the
    higher rate as the Prime Rate. If the Prime Rate is not published on the 25th day of the prior calendar month, the Index will
    be the Prime Rate published on the last business day prior to the 25th.
	(f)	During the first twelve months of the
    Agreement, as measured from the date of the Agreement (“Initial Period”), if I take Advances totaling at least
    $5,000.00, the ANNUAL PERCENTAGE RATE will be discounted for the remaining months left in the Initial Period.
    During the Initial Period, the ANNUAL PERCENTAGE RATE will equal the Index (WSJ Prime Rate) plus the discounted
    Margin which is -0.25 %. The ANNUAL PERCENTAGE RATE for the Initial Period is not based on the Margin that is used
    to make later rate adjustments. After the Initial Period, the ANNUAL PERCENTAGE RATE for the remaining term of the
    Agreement will be determined in accordance with subsection (e) above.
	(g)	Assuming that the discounted
    ANNUAL PERCENTAGE RATE is not in effect, the initial monthly periodic rate of 0.333 % will apply to my average daily
    balance during my first billing cycle and the initial corresponding ANNUAL PERCENTAGE RATE will be 4.000 %. An increase
    in the ANNUAL PERCENTAGE RATE and monthly periodic rate will result in increased Finance Charges and minimum payment
    amounts. The corresponding ANNUAL PERCENTAGE RATE for each billing cycle will be shown on my billing statement for
    that cycle. The ANNUAL PERCENTAGE RATE includes only interest and no other costs.
	(h)	The maximum ANNUAL PERCENTAGE RATE
    will never exceed eighteen percent (18%). In North Carolina, the maximum ANNUAL PERCENTAGE RATE will never exceed
    sixteen percent (16%).

 

Other Charges. In addition to the FINANCE
CHARGE which will be added to my Account each billing cycle, I will pay the following real estate closing and security filing
fees:

 

	“X” = Wachovia Bank, N.A. Pays Fee	 	 	“X” = Wachovia Bank, N.A. Pays Fee	 
	Survey	 	$	 	 	 	Georgia Mortgage Fee	 	$	 	 
	Title Examination	 	$	65.00	 	 	Settlement Fee	 	$	 	 
	Title Insurance	 	$	 	 	 	Points	 	$	 	 
	Recording Fee	 	$	38.00	 	 	Commitment Fee	 	$	 	 
	Appraisal Fee	 	$	600.00 POC	 	 	Broker Fee	 	$	 	 
	Flood Certification Fee	 	$	9.50	 	 	Additional Settlement Fee	 	$	 	 
	Intangible Tax	 	$	 	 	 	 	 	$	 	 
	Document Stamp Tax	 	$	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TOTAL	 	$	712.50	 
	 	 	 	 	 	 	 	 	 	 	 
	WACHOVIA BANK. N.A. FEES PAID	 	$	 	 	 	CUSTOMER FEES PAID	 	$	712.50	 

 

 ̈
Closing Cost Repayment Option. If checked, I request that
you pay the Other Charges indicated with an “X” above for me. I will pay the remaining Other Charges not so indicated.
In consideration of your payment of the Other Charges indicated above I agree to reimburse you for the Other Charges that you
have paid on my behalf, in the event I pay the entire Outstanding Balance and close this Account on or before one calendar year
after the opening date of this Account. If I pay the entire Outstanding Balance and close this Account after one year, but on
or before two calendar years after the opening date of this Account, I agree to reimburse you fifty percent (50%) of the amount
of closing costs you paid for me. I understand that I may pay my entire Outstanding Balance at any time without having to reimburse
you for the closing costs as long as my Account remains open.

 

Statement. If I have an Outstanding
Balance or a credit balance in excess of $1.00 or if there is any Finance Charge imposed during a billing cycle, you will send
me a Statement. I promise to pay you in accordance with the terms of this Agreement in United States Dollars drawn on an institution
located in the United States. I understand I am prohibited from using an Advance to make my payments on this Account. I agree
to be responsible for any fees or costs associated with the processing of my payments on my Account should I use a method of payment
that results in extra costs or fees being assessed to you.

 

Payment Schedule. During the Draw Period,
I agree to pay the minimum monthly payment not later than the payment due date shown on my Statement as follows:

 

x
Option A: I will make a minimum monthly payment equal to the greater of the Finance Charge on the outstanding Advances plus
accrued but unpaid Fees or $50.00.

 ̈
Option B: I will make a minimum monthly payment of the greater of 1.5% of the Outstanding Balance shown on my Statement
or $50.00.

 

Upon expiration of the Draw Period, I will
make a minimum monthly payment of the greater of 2% of the Outstanding Balance shown on my Statement or $50.00 until the entire
Outstanding Balance is paid in full.

 

If at any time, the Outstanding Balance is
less than $50.00, the minimum monthly payment will be the Outstanding Balance.

 

For purposes of this Agreement, the term “Outstanding
Balance” includes all unpaid Advances, accrued but unpaid Finance Charges and accrued but unpaid Fees permitted to be charged
to my Account under the terms of this Agreement or the Security Instrument.

 

Application of Payments. Unless otherwise
prohibited by applicable law, payments will be applied in the following order: First, to the accrued but unpaid promotional Finance
Charges due; next to non-promotional Finance Charges due; next to any Fees that that have been charged in accordance with the terms
of this Agreement. The remainder of any payment will be applied first to any unpaid promotional Advances and then to any non-promotional
Advances. Promotional Advances and Finance Charges refer to offers to use my Account on special terms that you may make to me from
time to time; you will provide the terms of any promotional Advance or promotional Finance Charge at the time that you make the
offer available. I understand that making more than the minimum payment may not advance my next payment due date.

 

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Minimum Monthly Payment Change. Subject
to your approval, during the Draw Period, I agree that I may change my minimum payment option to any option listed above upon written
notice of my request to change my minimum payment option.

 

	PAYMENT IN FULL. I AGREE THAT THE NOTE HOLDER MAY ACCEPT PAYMENTS MARKED “PAID IN FULL” WITHOUT ANY LOSS OF THE NOTE HOLDER'S RIGHTS UNDER THIS NOTE UNLESS I SEND THEM FOR SPECIAL HANDLING TO WACHOVIA BANK, N.A. EQUITY LINE SERVICES, VA 0343, PO BOX 13327, ROANOKE, VA 24040.

 

Late Fee. I agree that any Late Fee
imposed by you will be charged to my Account.

 

If this Agreement is governed by New York law
and all of a minimum monthly payment is not received within fifteen (15) days of the due date provided on my Statement, you will
impose a Late Fee of two percent (2%) of the amount of the minimum monthly payment.

 

If this Agreement is governed by North Carolina
law and all of a minimum monthly payment is not received within fifteen (15) days of the due date provided on my Statement, you
will impose a Late Fee of four percent (4%) of the amount of the minimum monthly payment.

 

If this Agreement is governed by South Carolina
law and is secured by a subordinate lien on real property and all of a minimum monthly payment is not received within ten (10)
days of the due date provided on my Statement, you will impose a Late Fee of the lesser of $13.50 or five percent (5%) of the amount
of the minimum monthly payment but not less than $5.40. Otherwise, if all of a minimum monthly payment is not received within ten
(10) days of the due date provided on my Statement, you will impose a Late Fee of five percent (5%) of the amount of the minimum
monthly payment.

 

If this Agreement is governed by a law other
than those listed in this Section (above) and all of a minimum monthly payment is not received within ten (10) days of the due
date provided on my Statement, you will impose a Late Fee of five percent (5%) of the amount of the minimum monthly payment.

 

Return items Fee. If I make a
payment to my Account by check or draft and the check or draft is returned unpaid for any reason, I agree to pay a charge of
$20.00 for each returned check or draft. If this Agreement is governed by Maryland law and I make a payment to my Account by
check or draft and the check or draft is returned unpaid for any reason, I agree to pay a charge of $15.00 for each returned
check or draft. I agree that this fee will be charged to my Account.

 

Stop Payment Fee. If I request you to
stop payment on an Advance made with a Prime Equity Line Check, to the extent not prohibited by applicable law, I agree to pay
your scheduled fee for such service. I will be notified of the amount of such fee at the time that such action is requested. I
agree that this fee will be charged to my Account.

 

Administrative/Servicing Fees. I agree
that, if after closing, I request other services related to servicing or administering my Account for which you have a scheduled
charge, to the extent not prohibited by applicable law, I will pay you the then current fee for such services or request if you
agree to perform such services or request. I will be notified of the amount of the fee at the time that such action is requested.
I agree that any such fees will be charged to my Account.

 

Agreement Secured by Security Instrument.
In addition to the protections given to you under this Agreement, a Security Instrument on real property (the “Property”)
described in the Security Instrument and dated the same date as this Agreement, protects you from possible losses which might result
if I do not keep the promises which I make in this Agreement. The Security Instrument describes how and under what conditions I
may also be required to make immediate payment in full of all amounts I owe under this Agreement.

 

Change of Terms of This Agreement. In
addition to other rights you may have under the terms of this Agreement, you may change the terms and conditions of this Agreement
when any of the following events shall occur:

	(1)	if the index and margin used with this Account are no longer available;
	(2)	if you make a change that I specifically agree to in writing;
	(3)	if you make a change that will unequivocally benefit me throughout the remainder of the term of this Agreement; or
	(4)	if you make any insignificant change in the terms of this Agreement.

 

Suspension and/or Reduction of Credit Limit.
I agree that you may prohibit additional Advances or reduce the Maximum Credit Limit when any of the following events shall occur:

	(1)	if the value of the Property that secures this Agreement declines significantly below the Property’s appraised value during the time of this Agreement;
	(2)	if you reasonably believe I will be unable to fulfill the repayment obligations under this Agreement due to a material change in my financial circumstances;
	(3)	if I am in default of any material obligations under this Agreement, such material obligations include, but are not limited to, all of my promises in this Agreement regarding the payment of money to you and the preservation of your rights in the Property;
	(4)	if action by a governmental body does not allow you to impose the ANNUAL PERCENTAGE RATE currently applicable to this Agreement;
	(5)	if action by a governmental body adversely affects the priority of your Security Instrument to the extent that the value of the security interest is less than 120 percent of the amount of my Maximum Credit Limit;
	(6)	if you are notified by a governmental agency that regulates your lending activities that continuing Advances constitutes an unsafe and unsound practice;
	(7)	if during any period in which the ANNUAL PERCENTAGE RATE corresponding to the monthly periodic rate reaches the maximum interest rate allowed under this Agreement. Provided I am in compliance with the other terms of this Agreement, I understand you will reinstate credit privileges if the ANNUAL PERCENTAGE RATE declines below the maximum ANNUAL PERCENTAGE RATE; or
	(8)	if I request that you suspend any Advance or reduce the Maximum Credit Limit.

 

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Reinstatement of Advance Privileges.
Except as provided for in this Agreement, I understand that if my Advance privileges are suspended or my Maximum Credit Limit is
reduced, it is my responsibility to request reinstatement of my Advance privileges that have been suspended. If I request reinstatement
of my Advance Privileges, I further understand that I may be required to pay for an appraisal of the Property to determine if the
value has changed.

 

If you suspend Advances or reduce the Maximum
Credit Limit, I understand you will mail or deliver written notice of your action no later than three business days after the action
and that such notice will contain the specific reason for the action.

 

Default/Termination. I will be in default
if any of the following events shall occur:

	(1)	if I fail to make my payments when they are due;
	(2)	if I have engaged in fraud or material misrepresentation in connection with my Account;
	(3)	if my action or inaction adversely affects the Property or your rights in the Property or I am in breach of any term of the Security Instrument; or
	(4)	if I breach any term or, this
    Agreement.

 

If I am in Default under the terms of this
Agreement, you may, at your option and in your sole discretion, take the following action:

	(1)	terminate my Advance privileges and demand the Outstanding Balance to be due and payable immediately in full in a single payment, with interest due on the Balance at the ANNUAL PERCENTAGE RATE as provided for in this Agreement until paid; or
	(2)	temporarily or permanently prohibit additional Advances or reduce the Maximum Credit Limit without demanding payment in full.

 

If you do not immediately terminate the Advance
privileges and demand repayment of the Outstanding Balance, such action shall not constitute a waiver of your right to subsequently
terminate the Account or demand repayment of the Outstanding Balance at a later time, if the event of Default still exists or another
event of Default occurs at that time.

 

In the event of Default, if I do not immediately
pay the Outstanding Balance and if this obligation is referred to an attorney-at-law for collection, who is not a salaried employee
of you to the extent not prohibited by applicable law, you will have the right to collect attorney fees not exceeding fifteen
percent (15%) of the Outstanding Balance along with court costs and expenses. Any default of this Agreement will also constitute
an event of Default of the Security Instrument securing my performance of the obligations set forth in this Agreement. Upon Default,
you may proceed to enforce the terms of this Agreement or enforce any rights that you may have under the Security Instrument.

 

“DEFAULT IN THE PAYMENT OF THE LOAN
AGREEMENT MAY RESULT IN THE LOSS OF THE PROPERTY SECURING THIS LOAN. UNDER FEDERAL LAW, YOU MAY HAVE THE RIGHT TO CANCEL THIS LOAN.
IF YOU HAVE THIS RIGHT, THE LENDER IS REQUIRED TO PROVIDE YOU WITH A SEPARATE WRITTEN NOTICE SPECIFYING THE CIRCUMSTANCES AND TIMES
UNDER WHICH YOU CAN EXERCISE THIS RIGHT.”

 

Termination by Less than All Borrowers.
If one or more persons are liable under the terms of this Agreement and less than all of said persons request in writing that future
Advances be terminated or temporarily suspended hereunder, you will block and otherwise suspend further Advance privileges. Upon
receipt of such notice from one or all of us, you will provide written notice to all Borrowers that the Advance privileges have
been suspended. I understand that said Advance privileges will not be reinstated by you until you receive a written request from
all persons liable on this Account requesting reinstatement of the Advance privileges. I further agree that any request to grant
reinstatement will be made at the sole discretion of you and in accordance with your policies in effect at the time such request
is made.

 

I understand that during the time of any
such suspension or termination that I must continue to abide by the terms of the Agreement including, but not limited to the
Payment Schedule.

 

Voluntary Termination. I can
cancel my Account at any time by destroying all of my unused Prime Equity Line Checks and any Card Access Devices that may
have been issued in connection with my Account and sending you a signed letter requesting that you cancel my Account. I
understand that my obligations under this Agreement and any changes made under it prior to cancellation will continue to
apply until I have completely paid the Outstanding Balance on the Account.

 

Required Property and Flood Insurance.
I agree to purchase and to continue to maintain property insurance (and flood insurance if so required) on the secured Property
in an amount not less than the entire Outstanding Balance for all prior and current obligations secured by my Property or in such
an amount satisfactory to you. I understand I may purchase required property and flood insurance from anyone I choose who is acceptable
to you. I agree that in the event I am required to purchase property and/or flood insurance and fail to do so that you may purchase
said insurance on my behalf and add the amount of the premium to my then Outstanding Balance. I agree that you have an irrevocable
power of attorney to file proofs of loss or other insurance claims and anything else to obtain insurance proceeds in my name.

 

Assignment/Transfer of Account. I cannot
transfer or assign my Account or this Agreement to any other person, however, I agree you can assign or transfer this Agreement
and the Security Instrument securing this Agreement.

 

Change of Address. I will advise you
promptly if I change my mailing address or if I sell the Property securing this Account.

 

Notices. All written notices and statements
from you to me will be considered given when placed in the United States mail, postage paid, and addressed to me at my current
address as it appears in your records. If this is a joint Account, written notice to one person is notice to all persons.

 

Removal of Security Interest. At any
time when the Outstanding Balance secured by the Security Instrument is zero, you shall, at my written request, execute a Satisfaction
and provide me with a recorded copy. Absent my request, the Security Instrument will remain in full force and effect until the
Draw Period has expired and the Outstanding Balance is paid in full.

 

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Governing Law. I agree that this Agreement
shall be governed by and interpreted entirely under the law of the State where the Property securing this Agreement is located
and applicable federal law. If the Property securing the Agreement is located in Maryland, this Agreement is governed by MD Code
Ann., Commercial Law §12-1001 et. seq, and applicable federal law.

 

Other Provisions. Each of us who signed
this Agreement is individually and jointly obligated for all payments due under this Agreement. If you request, I will give you
any information needed to reevaluate my Account or my creditworthiness. You may, at any time, seek information about my financial
condition from others including but not limited to obtaining a consumer report from a Consumer Reporting Agency. You may use the
information obtained from a Consumer Reporting Agency to market additional products or services to me. In the event that the amount
of interest on my Account exceeds the maximum permitted by law, you agree to repay me upon demand the amount paid which exceeds
the maximum interest rate, or at your option, to reduce the then Outstanding Balance by the excess amount of interest. This Agreement
constitutes the entire Agreement between the parties. If any part of this Agreement is not valid, all other parts will remain enforceable.
I understand I should consult a tax advisor regarding the deductibility of interest and charges for my Account.

 

CAUTION
- IT IS IMPORTANT THAT YOU READ ALL PAGES OF THIS AGREEMENT BEFORE YOU SIGN IT. DO NOT SIGN THIS AGREEMENT IF IT CONTAINS ANY
BLANK SPACES.

 

By
signing below, I agree to all of the above terms and certify that I received a completed copy of this Agreement.

 

	/s/ Necdet
    Ergul	 
	Borrower	 
	NECDET ERGUL	 
	 	 
	/s/ Gonul T Ergul	 
	Borrower	 
	GONUL T ERGUL	 
	 	 
	 	 
	Borrower	 
	 	 
	 	 
	Borrower	 

 

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MY BILLING
RIGHTS

 

I SHOULD KEEP THIS NOTICE FOR FUTURE USE

 

This notice contains important information
about my rights and your responsibilities under the Fair Credit Billing Act.

 

I SHOULD NOTIFY YOU IN CASE OF ERRORS OR
QUESTIONS ABOUT MY STATEMENT.

 

If I think my Statement is wrong, or if I need
more information about a transaction on my Statement, I should write you on a separate sheet at the address listed on my Statement.
I should write you as soon as possible. You must hear from me no later than 60 days after you sent me the first statement on which
the error or problem appeared. I can telephone you, but doing so will not preserve my rights.

 

In my letter, I must give you the following
information:

 

	•	My full name and PEL Account Number. 
	 	 
	•	The dollar amount of the suspected error.
	 	 
	•	I must describe the error and explain, if I can, why I believe there is an error. If I need more information, I should describe the item I am not sure about.

 

MY RIGHTS AND YOUR RESPONSIBILITIES AFTER
YOU RECEIVE MY WRITTEN NOTICE.

 

You must acknowledge my letter within 30 days,
unless you have corrected the error by then. Within 90 days, you must either correct the error or explain why you believe the Statement
was correct.

 

After you receive my letter, you cannot try
to collect any amount I question, or report me as delinquent. You can continue to bill me for the amount I question, including
finance charges, and you can apply any unpaid amount against my credit limit. I do not have to pay any questioned amount while
you are investigating, but I am still obligated to pay the parts of my Statement that are not in question.

 

If you find that you made a mistake on my Statement,
I will not have to pay any finance charges related to any questioned amount. If you didn't make a mistake, I may have to pay finance
charges, and I will have to make up any missed payments on the questioned amount. In either case, you will send me a statement
of the amount I owe and the date that it is due.

 

If I fail to pay the amount that you think
I owe, you may report me as delinquent. However, if your explanation does not satisfy me and I write to you within ten days telling
you that I still refuse to pay, you must tell anyone you report me to that I have a question about my Statement. And, you must
tell me the name of anyone you reported me to. You must tell anyone you report me to that the matter has been settled between us
when it finally is.

 

If you don’t follow these rules, you can't collect the first
$50 of the questioned amount, even if my Statement was correct.

 

(10/02) Multi-State Pel Agreement

 

    	6Exhibit 10.4

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into as of February 12, 2015, by and between Microphase Corporation, a
Connecticut corporation with its principal place of business located at 587 Connecticut Ave., Norwalk, Connecticut 06854 (the “Company”),
and Necdet Ergul, an individual and resident of the State of Connecticut with an address located at 88 Round Hill Road, Greenwich,
Connecticut 06831 (“Executive” and together with the Company, the “Parties” and each, a “Party”).

 

RECITALS

 

A.           Executive
is currently the Company’s Chief Executive Officer.

 

B.           Executive
possesses certain knowledge and skills relating to the Company’s business, structure and operations that the Company wishes
to retain for the development and success of the Company’s business.

 

C.            The
Company wishes to employ Executive, and Executive wishes to be employed by the Company, on the terms and conditions contained herein.

 

NOW, THEREFORE, in
consideration of the premises set forth above and for other good and valuable consideration mutually exchanged by the Parties,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.           Employment;
Duties. The Company hereby employs Executive, and Executive hereby accepts employment, as Chairman, Chief Executive Officer
and President of the Company, subject to the terms and conditions set forth in this Agreement. As Chairman, Chief Executive Officer
and President, Executive shall have such duties, responsibilities and authority as are commensurate and consistent with his position
and as may, from time to time, be assigned to him by the board of directors of the Company (the “Board”). Executive
shall report directly to the Board. During the Term (as defined herein), Executive shall devote his full business time and efforts
to the performance of his duties hereunder, unless otherwise explicitly authorized by the Board. Notwithstanding the foregoing,
the expenditure of reasonable amounts of time by Executive for the making of passive personal investments, the conduct of private
business affairs and charitable activities shall be allowed, provided that such activities do not materially interfere with
the services required to be rendered to the Company hereunder and do not violate the restrictive covenants set forth herein.

 

2.           Employment
Period. The term of Executive’s employment hereunder, unless sooner terminated as provided herein (the “Initial
Term”), shall be for a period of thirty-six (36) months, having commenced on February 1, 2015 (the “Commencement
Date”) and ending on February 1, 2018. The term of this Agreement shall automatically be extended for additional terms
of one (1) year each (each a “Renewal Term”), unless either Party gives prior written notice of non-renewal
(“Non-Renewal Notice”) to the other Party no later than sixty (60) days prior to the expiration of the then
current Term (as defined herein). For purposes of this Agreement, the Initial Term and any Renewal Term are hereinafter collectively
referred to as the “Term”.

 

    	 

    	 

    

 

3.           Compensation
of Executive.

 

(a)          Fees
for Services. In consideration of the services rendered by Executive (the “Services”) and Executive’s other
obligations under this Agreement, the annual base compensation for this position will be $225,000. Such compensation shall be payable
in such installments as the Company pays its other employees.

 

(b)          Expenses.
Pursuant to the Company’s customary policies in force at the time of payment, Executive shall be promptly reimbursed, against
presentation of vouchers or receipts therefor, for all expenses properly and reasonably incurred by Executive on behalf of the
Company in the performance of Executive’s duties hereunder.

 

(c)          Benefits.
Executive shall be entitled to participate in such pension, profit sharing, group insurance, hospitalization, and group health
(for Executive and his immediate family) and benefit plans and all other benefits and plans, including perquisites,
if any, as the Company provides to its senior executives (the “Benefit Plans”).

 

(d)          Vacation
Benefits. During the Employment Period, the Executive shall be entitled to receive vacation benefits in accordance with the
Company’s applicable policies and procedures in effect as of the Effective Date of this Agreement, or which becomes effective
during the Term of this Agreement and/or any renewal or extension period thereafter. Subject to said vacation policies and procedures,
the Executive shall be entitled to receive four (4) weeks of Company paid vacation, per year.

 

(e)          Indemnification
and D&O Insurance. The Company agrees to indemnify the Executive to the maximum extent permitted by the Company’s
Articles of Incorporation or Bylaws, including, providing to the Executive, if applicable, any Directors or Officers Insurance
Policy, in effect as of the Effective Date, or which becomes effective during the Term of this Agreement and/or any renewal or
extension period thereafter, with such indemnification of the Executive to be on terms determined by the Board, or any of its authorized
Committees, but on terms no less favorable than provided to any other Company executive, officer or director, and subject further
to the terms of any separate written Indemnification Agreement.

 

4.           Termination
and Forfeiture of Payments and Benefits.

 

(a)          Termination
by Company for Cause. Executive’s employment with the Company may be terminated at any time by the Company for Cause.
Upon such a termination, the Company shall have no obligation to Executive pursuant to this Agreement other than the payment of
Executive’s earned and unpaid compensation, vested and accrued benefits under the Company’s ERISA-based plans and accrued
but unreimbursed expenses pursuant to Section 3(d) (collectively, the “Accrued Obligations”) to the effective
date of such termination.

 

For purposes of this Agreement, the term
“Cause” shall mean any of the following:

 

(i)          Executive’s
willful failure to perform his duties or Executive’s bad faith in connection with the performance of his duties, following
written notice from the Board, or its designee, detailing the specific acts and a thirty (30) day period of time to remedy such
failure;

 

    	2

    	 

    

 

(ii)         Executive
engaging in any misconduct, negligence, act of dishonesty, violence or threat of violence that is injurious to the Company;

 

(iii)        Executive’s
material breach of a written policy of the Company, which policy has been provided to Executive, or the existence of which Executive
should reasonably have known, in connection with his employment, which breach is not remedied (if susceptible to remedy) following
written notice by the Board, or its designee, detailing the specific breach and a thirty (30) day period of time to remedy such
breach; 

 

(iv)        Any
material breach by Executive of this Agreement, which breach is not remedied (if susceptible to remedy) following written notice
by the Board, or its designee, detailing the specific breach and a thirty (30) day period of time to remedy such breach; or

 

(v)         Executive’s
conviction of a felony or crime involving dishonesty or moral turpitude, or which reflects negatively upon the Company or impairs
or impedes its operations.

 

(b)          Permanent
Disability. If during his employment with the Company, (i) Executive becomes ill, mentally or physically disabled, or otherwise
incapacitated so as to be unable regularly to perform the duties of his position for a period in excess of 90 consecutive days
or more than 180 days in any consecutive 12-month period, or (ii) a qualified independent physician determines that Executive is
mentally or physically disabled so as to be unable to regularly perform the duties of his position and such condition is expected
to be of a permanent duration (a “Permanent Disability”), then the Company shall have the right to terminate
Executive’s employment with the Company upon written notice to Executive. Upon such a termination, the Company shall have
no obligation to Executive other than (i) the payment of the Accrued Obligations; (ii) all Options which have vested as of the
date of termination; and (iii) Severance, as that term is defined in Paragraph 4(d).

 

(c)          Death.
Executive’s employment with the Company shall be deemed terminated by the Company upon the death of the Executive, and the
Company shall have no obligation to the Executive or the Executive’s estate other than (i) the payment of the Accrued Obligations;
(ii) all Options which have vested as of the date of death; and (iii) Severance, as that term is defined in Paragraph 4(d) .

 

(d)          Termination
by the Company without Cause. Executive’s employment with the Company may be terminated at any time by the Company without
Cause, upon the Board’s approval, by a majority vote of the Board members in favor of such termination. In the event that
Executive’s employment with the Company is terminated by the Company without Cause, the Company shall have no obligation
to Executive other than (subject to Executive’s continued compliance with his obligations under this Agreement): (i) the
payment of the Accrued Obligations (and any rights under the Stock Option Agreement that survive such termination, including the
understanding that any portion of the Options that have not vested as of the date of termination, shall vest in full as of the
date of such termination); and (ii) a continuation of the Executive’s Base Salary (at the rate in effect at the time of such
termination) for a period of time commencing on the date of termination and ending on the date that is 12 months after such date
of termination (“Severance”)

 

    	3

    	 

    

 

(e)          Termination
by Executive for Good Reason.

 

(i)          Executive’s
employment with the Company may be terminated at any time by Executive for Good Reason. In the event that Executive terminates
his employment with the Company for Good Reason, Executive shall be entitled to the same Accrued Obligations, Option vesting, and
Severance that he would have been entitled to receive under Section 4(d) as if his employment were terminated by the Company without
Cause.

 

(ii)         For
purposes of this Agreement, the term “Good Reason” shall mean either any material breach of this Agreement by the Company
which remains in effect thirty (30) days after written notice is provided by Executive to Company detailing such condition or event
of breach, or a material change in Executive’s position, duties and responsibilities. The above notwithstanding, if Executive’s
Compensation does not decrease resulting from such material change, then such material change shall not be deemed “Good Reason”
for termination purposes. 

 

(f)          Termination
by Executive without Good Reason. The Executive may voluntarily resign from his employment with the Company without Good Reason,
provided that Executive shall provide the Company with ninety (90) days’ advance written notice (which notice requirement
may be waived, in whole or in part, by the Company in its sole discretion) of his intent to terminate. Upon such a termination,
the Company shall have no obligation other than the payment of the Accrued Obligations to the effective date of such termination.
Any Options which have not vested on the date of termination shall be deemed to be null and void.

 

(g)          Release
of Claims. As a condition to receiving the payments set forth in Section 4(d) or Section 4(e) upon a termination by the Company
without Cause or by Executive for Good Reason, Executive shall be required to execute and not revoke a waiver and release of claims,
in a form provided by the Company.

 

5.           Covenants.

 

(a)          Confidentiality.

 

(i)          Proprietary
Information. Executive understands and acknowledges that, during the course of his employment with the Company, Executive shall
create and has created, as well as shall be granted and has been granted access to, certain valuable information relating to the
business of the Company that provides the Company with a competitive advantage (or that which could be used to the disadvantage
of the Company by a Competitive Business, as defined herein), which is not generally known by, nor easily learned or determined
by, persons outside the Company (collectively referred to herein as “Proprietary Information”) including, but
not limited to: Developments (as defined herein), the Company’s products, applications, methods, trade secrets and other
intellectual property, the research, development, procedures, manuals, confidential reports, technical information, financial information,
business plans, prospects of opportunities, purchasing, operating and other cost data, employee information (including, but not
limited to, personnel, payroll, compensation and benefit data and plans), including all such information recorded in manuals, memoranda,
projections, reports, minutes, plans, drawings, sketches, designs, formula books, data, specifications, software programs and records,
whether or not legended or otherwise identified by the Company as Proprietary Information, as well as such information that is
the subject of meetings and discussions and not recorded. Proprietary Information shall not include such information that Executive
can demonstrate is generally available to the public (other than as a result of a disclosure by Executive).

 

    	4

    	 

    

 

(ii)         Duty
of Confidentiality. Executive agrees at all times, both during and after Executive’s employment with the Company, (i)
to hold all Proprietary Information in a confidential manner for the benefit of the Company, to reasonably safeguard all such Proprietary
Information; and (ii) to adhere to any non-disclosure, confidentiality or other similar agreements to which Executive or the Company
is or becomes a party or subject thereto. Executive also agrees that he shall not, directly or indirectly, disclose any such Proprietary
Information to, or use such Proprietary Information for the benefit of, any third person or entity outside the Company, except
to persons identified in writing by the Company. Executive further agrees that, in addition to enforcing this restriction, the
Company may have other rights and remedies under the common law or applicable statutory laws relating to the protection of trade
secrets. 

 

(iii)        Investors,
Other Third-Parties, and Goodwill. Executive acknowledges that all Company Investors, together with all distributors, representatives,
agents, licensees and third-parties (“Other Third Parties”) that the Executive interacts and works with while
employed by Company, are doing business with the Company and not with the Executive, personally, and that in the course of dealing
with such Investors and Other Third Parties, the Company has established goodwill with respect to each such Investor and Other
Third Party that is created and maintained at the Company’s expense (“Third-Party Goodwill”). Executive
also acknowledges that, by virtue of his employment with the Company, he has gained or will gain knowledge of the business needs
of, and other information concerning, the Investors and Other Third Parties, and that Executive will inevitably have to draw on
such information if Executive solicits or provides services to any Investor or Other Third Parties on his own behalf or on behalf
of a Competitive Business. For purposes of this Agreement, “Competitive Business” shall mean any enterprise
engaged in the RF and Microwave device business that is substantially similar to that which the Company is engaged, or plans to
be engaged, so long as Executive is directly involved in such business or planned business on behalf of the Company. 

 

(iv)        Nondisparagement.
The Executive agrees that at no time during his employment by the Company or thereafter, shall he make, or cause or assist any
other person to make, any statement or other communication to any third party which impugns or attacks, or is otherwise critical
of, the reputation, business or character of the Company or any of its respective directors, officers or employees.

 

(b)          Restrictions
on Solicitation. Executive shall not, directly or indirectly, without the prior written consent and approval of the Company,
(i) interfere with or attempt to interfere with the relationship between any person who is, or was during the then most
recent three (3) month period, an employee, agent, representative or independent contractor of the Company, or solicit, induce
or attempt to solicit or induce any of them to leave the employ or service of the Company or to violate the terms of their respective
contracts, agreements or any employment arrangements with the Company; or (ii) induce or attempt to induce any customer, client,
supplier, distributor, licensee or other business relation of the Company to cease doing business with the Company, or in any way
interfere with the contract or relationship between the Company and any customer, client, supplier, distributor, licensee or other
business relation of the Company. As used herein, the term “indirectly” shall include, without limitation, Executive’s
permitting the use of Executive’s name by any Competitive Business to induce or interfere with any employee or business relationship
of the Company.

 

    	5

    	 

    

 

(c)          Restrictions
on Executive’s Competitive Employment. In order to protect the Company’s Proprietary Information and Third-Party
Goodwill, Executive acknowledges and agrees that in the event this Agreement is terminated for any reason, then, from the date
of such termination, or from the last date upon which Severance is paid to Executive, whichever is later, and for a period of one
(1) year thereafter, the Executive shall not, without the Company’s express written consent, directly or indirectly,
own, control, manage, operate, participate in, be employed by, permit the use of his name with, or act for or on behalf of, any
Competitive Business which competes directly with the Company and its RF & Microwave devices and products. The Executive agrees
that the restriction on competitive employment contemplated herein is necessary and reasonable in order to protect the Company
in the conduct of its business.

 

(d)          Assignment
of Developments.

 

(i)          Executive
acknowledges and agrees that all developments, including, without limitation, the creation of new products, devices, inventions,
discoveries, concepts, ideas, improvements, patents, trademarks, trade names, trade dress, service marks, copyrights, domain names,
trade secrets, designs, works, reports, computer software or systems, flow charts, diagrams, procedures, data, documentation, and
writings and applications thereof, including all results and proceeds of the foregoing, relating to the Business or future business
of the Company that Executive, alone or jointly with others, has discovered, suggested, conceived, created, made, developed, reduced
to practice, or acquired during Executive’s employment with or as a result of Executive’s employment with the Company
(collectively, “Developments”) are being prepared by Executive as an employee of the Company within the scope
of Executive’s employment and shall be considered as “works made for hire” and shall remain the sole and exclusive
property of the Company, free of any reserved or other rights of any kind on Executive’s part. If and to the extent the fact
that the Developments are works made for hire is not effective to place ownership of the Developments and all rights therein to
the Company, then Executive hereby solely, exclusively and irrevocably assigns and transfers to the Company any and all of his
right, title and interest in and to the Developments. Executive agrees to disclose to the Company promptly and fully all future
Developments and, at any time upon request and at the expense of the Company, to execute, acknowledge and deliver to the Company
all instruments that the Company shall prepare and to take any and all other actions that are necessary or desirable, in the reasonable
opinion of the Company, to evidence or effectuate all or any of the Company’s rights hereunder, including executing and delivering
patent, trademark or copyright applications and instruments of assignment to the Company and enabling the Company to file instruments
of assignment for, to file and prosecute applications for, and to acquire, maintain, and enforce, all patents, trademarks or copyrights
covering the Developments in all countries in which the same are deemed necessary by the Company. All data, memoranda, notes, lists,
drawings, records, files, investor and client/customer lists, supplier lists, and other documentation (and all copies thereof)
made or compiled by Executive or made available to Executive concerning the Developments or otherwise concerning the past, present,
or planned business of the Company are the property of the Company, and shall be delivered to the Company immediately upon the
termination of Executive’s employment with the Company. 

 

    	6

    	 

    

 

(ii)         If
any patent, trademark or copyright application is filed by Executive or on Executive’s behalf during Executive’s employment
with the Company or within one (1) year after Executive’s leaving the Company’s employ, describing a Development within
the scope of Executive’s work for the Company or which otherwise relates to a portion of the business of the Company, of
which the Executive had knowledge during Executive’s employment with the Company, it is to be conclusively presumed that
the Development was conceived by Executive during the period of such employment.

 

(e)          Remedies.
Executive acknowledges that the Company has a compelling business interest in preventing unfair competition stemming from the intentional
or inadvertent use or disclosure of the Company’s Proprietary Information. Executive further acknowledges and agrees that
damages for a breach or threatened breach of any of the covenants set forth in this Section 5 will be difficult to determine and
will not afford a full and adequate remedy, and therefore agrees that the Company, in addition to seeking actual damages in connection
therewith and the termination of the Company’s obligations in Section 4.4 and Section 4.5, may seek specific enforcement
of any such covenant in any court of competent jurisdiction, including, without limitation, by the issuance of a temporary or permanent
injunction without the necessity of showing any actual damages or posting any bond or furnishing any other security, and that the
specific enforcement of the provisions of this Agreement will not diminish Executive’s ability to earn a livelihood or create
or impose upon Executive any undue hardship. Executive also agrees that any request for such relief by the Company shall be in
addition to, and without prejudice to, any claim for monetary damages that the Company may elect to assert.

 

(f)          Rights
to Materials and Return of Materials. All papers, files, notes, correspondence, lists, software, software code, memoranda,
e-mails, price lists, plans, sketches, documents, reports, records, data, research, proposals, specifications, technical information,
models, flow charts, schematics, tapes, printouts, designs, graphics, drawings, photographs, abstracts, summaries, charts, graphs,
notebooks, investor lists, customer/client lists, information on the use, development and integration of software, information
relating to the research, development, preparation, maintenance and sale of RF & Microwave products or any other such Company
created RF & Microwave products, and all other compilations of information, regardless of how such information may be recorded
and whether in printed form or on a computer or magnetic disk or in any other medium (together with all copies of such documents
and things) relating to the Business of the Company or containing Proprietary Information and/or Developments, which Executive
shall use or prepare or come in contact with in the course of, or as a result of, Executive’s employment by the Company shall,
as between the parties to this Agreement, remain the sole property of the Company. Laptop computers, other computers, software
and related data, information and other property provided to Executive by the Company or obtained by Executive, directly or indirectly,
from the Company, also shall remain the sole property of the Company. Upon the termination of Executive’s employment or upon
the prior demand of the Company, Executive shall immediately return all such materials and things to the Company and shall not
retain any copies or remove or participate in removing any such materials or things from the premises of the Company after termination
or the Company’s request for return.

 

    	7

    	 

    

 

6.           Notices.
Any notice or communication given by either Party hereto to the other shall be in writing and personally delivered or mailed by
registered or certified mail, return receipt requested, postage prepaid, to the following addresses:

 

	 	If to the Company:	Microphase Corporation
	 	 	587 Connecticute Avenue
	 	 	Norwalk, CT 06856
	 	 	Attention:  Company CEO
	 	 	Facsimile: 203-853-3304
	 	 	 
	 	With a copy to:	Lucosky Brookman LLP
	 	 	101 Wood Avenue South, 5th Floor
	 	 	Woodbridge, New Jersey 08830
	 	 	Attn: Scott E. Linsky
	 	 	Facsimile: (732) 396-4401
	 	 	 
	 	If to Executive:	Necdet Ergul
	 	 	88 Round Hill Road,
	 	 	Greenwich, Connecticut 06831

 

Any notice shall be deemed
given when actually delivered to such address, or two days after such notice has been mailed or sent by Federal Express, whichever
comes earliest. Any person entitled to receive notice may designate in writing, by notice to the other, such other address to which
notices to such person shall thereafter be sent.

 

7.           Miscellaneous.

 

(a)          Representations
and Covenants. In order to induce the Company to enter into this Agreement, the Executive makes the following representations
and covenants to the Company and acknowledges that Company is relying upon such representations and covenants:

 

(i)          No
agreements or obligations exist to which the Executive is a party or otherwise bound, in writing or otherwise, that in any way
interfere with, impede or preclude him from fulfilling any and all of the terms and conditions of this Agreement. 

 

(ii)         Executive,
during his employment, shall use his best efforts to disclose to the Board, in writing, or by other effective method, any bona
fide information known by him, which he reasonably believes is not known to the Board, and which he reasonably believes would have
any material negative impact on the Company.

 

(b)          Entire
Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter contained herein
and supersedes the effectiveness all other prior agreements and understandings between the Parties or between Executive and the
Company with respect to such subject matter.

 

    	8

    	 

    

 

(c)          Amendment;
Waiver. The Parties agree that this Agreement may not be amended, supplemented, canceled or discharged, except by written instrument
executed by the Party against whom enforcement is sought. No failure to exercise, and no delay in exercising, any right, power
or privilege hereunder shall operate as a waiver thereof. No waiver of any breach of any provision of this Agreement shall be deemed
to be a waiver of any preceding or succeeding breach of the same or any other provision.

 

(d)          Binding
Effect; Assignment. The rights and obligations of this Agreement shall bind and inure to the benefit of any successor of the
Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the Company’s business.
Executive’s rights or obligations under this Agreement may not be assigned by Executive.

 

(e)          Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

 

(f)          Governing
Law; Jurisdiction; Interpretation. This Agreement shall be construed in accordance with and governed for all purposes, by the
laws and public policy of the State of New York, except as it pertains to conflict of laws principles. Jurisdiction and venue shall
be conferred upon the state and federal courts located in the City and State of New York.

 

(g)          Further
Assurances. Each of the Parties agree to execute, acknowledge, deliver and perform, and cause to be executed, acknowledged,
delivered and performed, at any time, and from time to time, as the case may be, all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the provisions or intent of this Agreement.

 

(h)          Severability.
The Parties have carefully reviewed the provisions of this Agreement and agree that they are fair and equitable. However, in light
of the possibility of differing interpretations of law and changes in circumstances, the Parties further agree that if any one
or more of the provisions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable,
the remainder of the provisions of this Agreement shall, to the extent permitted by law, remain in full force and effect and shall
in no way be affected, impaired or invalidated. Moreover, if any of the provisions contained in this Agreement are determined by
a court of competent jurisdiction to be excessively broad as to duration, activity or subject, it shall be construed, by limiting
or reducing it to the extent legally permitted, so as to be enforceable to the maximum extent compatible with then applicable law.

 

(i)          Withholding
Taxes. All payments hereunder shall be subject to any and all applicable federal, state, local and foreign withholding taxes.

 

    	9

    	 

    

 

(j)          Compliance
with Section 409A. Notwithstanding anything herein to the contrary, (i) if at the time of Executive’s termination of
employment with the Company the Executive is a “specified employee” as defined in Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), and the deferral of the commencement of any payments or benefits otherwise
payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional
tax under Section 409A of the Code, then the Company shall defer the commencement of the payment of any such payments or benefits
hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is
six months following Executive’s termination of employment with the Company (or the earliest date as is permitted under Section
409A of the Code) and (ii) if any other payments of money or other benefits due to Executive hereunder could cause the application
of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral
will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits
shall be restructured, to the extent possible, in a manner, determined by the Board, that does not cause such an accelerated or
additional tax while, to the extent possible, preserving the overall economic benefit to the Executive of such payments or benefits.
The Company shall consult with Executive in good faith regarding the implementation of the provisions of this Section 7.10; provided
that neither the Company nor any of its officers, directors, shareholders, employees, agents or representatives shall have any
liability to the Executive with respect thereto.

 

(k)          Survival.
Notwithstanding the termination of the Executive’s employment hereunder, the terms, conditions and provisions contained herein
shall survive such termination.

 

(l)          Counterparts.
The Parties agree that this Agreement may be signed in two (2) or more counterparts, each of which shall be deemed to be an original,
and all of which, when taken together, shall constitute but one and the same instrument.

 

[Signature Page Follows]

 

    	10

    	 

    

 

IN WITNESS WHEREOF,
the Parties hereto have executed, or have caused to have executed, this Agreement as of the day and year first above written.

 

	 	MICROPHASE CORPORATION
	 	 
	 	 	 
	 	By:	/s/ James Ashman
	 		Name:  James Ashman
	 		Title:    Chief Financial Officer
	 	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Necdet Ergul
	 	NECDET ERGUL, an individual

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