Document:

c47316_ex10-4.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EX-10.4

CONOLOG CORPORATION

  

  SELLING AGENT AGREEMENT 

    Dated as of February 27, 2007 

First Montauk Securities Corp. 

Parkway 109 Office Center 

328 Newman Springs Road 

Red Bank, New Jersey 07701 

Gentlemen: 

          Conolog Corporation (the “Company”) proposes to offer for sale (the “Offering”) in a private
offering pursuant to Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”) (i) up to Five Million Dollars ($5,000,000) of principal
amount of promissory notes of the Company (“Note” or “Notes”), convertible into
shares of the Company's common stock, $0.01 par value (the "Common Stock") at a per share conversion price set forth in the Note; and (ii) share purchase warrants (the
“Warrants”), to purchase shares of Common Stock (the “Warrant Shares”). The Notes,
shares of Common Stock issuable upon conversion of the Notes (the “Shares”), the Warrants and the Warrant Shares are collectively referred to herein as the
“Securities”. This letter agreement shall confirm our agreement concerning First Montauk Securities Corp. acting as exclusive selling or placement agent (the
“Selling Agent” or “FMSC”) in connection with the sale of the Securities. 

          1.      Appointment of Selling Agent. 

          On the basis of the representations and warranties contained herein, and subject to the terms and conditions set forth herein, the Company hereby appoints First Montauk Securities Corp. as
exclusive selling agent/placement agent for a period beginning on the date hereof and terminating on March 23, 2007 (unless terminated sooner pursuant to the terms hereof) and grants to FMSC the right to offer, as its agent, the Securities pursuant
to the terms of this Agreement. On the basis of such representations and warranties, and subject to such conditions, FMSC hereby accepts such appointment and agree to use its reasonable best efforts to secure subscribers to purchase subscriptions
for the Securities. The Company understands that the Selling Agent is being retained to obtain subscriptions
on a “best efforts” basis and has not guaranteed the sale of any Securities. 

          2.      Terms of the Offering. 

                    (a)      The Offering shall consist of the (i) Notes and (ii) Warrants. The Offering is being made on a “best
efforts” basis with no minimum offering amount of subscriptions, and the parties shall use their reasonable efforts to consummate a closing of subscriptions prior to March 23, 2007. In the event a subscription is not accepted, such rejected
subscription funds will be returned to the subscriber without interest or deduction. 

                    (b)      The Company has prepared a Securities Purchase Agreement (the “Securities Purchase Agreement”), form of Note
and form of Warrant to be delivered to all prospective investors. The Securities Purchase Agreement, form of Note and form of Warrant, including all supplements, exhibits and appendices thereto and documents delivered therewith, are referred to
herein as the 

“Documents” and shall include any supplements or amendments in accordance with this Agreement. The Offering shall commence on the date hereof, and shall expire at 3:00 p.m., New York time, on March 23, 2007,
unless extended as provided above. Such period, as same may be so extended, shall hereinafter be referred to as the “Offering Period.” 

                    (c)      Each prospective investor (“Prospective Investor”) who desires to purchase Securities shall deliver to the
Selling Agent the Securities Purchase Agreement and immediately available funds in the amount necessary to purchase the amount of Securities such Prospective Investor desires to purchase. The Selling Agent shall not have any obligation to
independently verify the accuracy or completeness of any information contained in any Purchase Agreement or the authenticity, sufficiency, or validity of any check delivered by any Prospective Investor in payment for Securities. Purchasers in the
Offering shall be “accredited investors” as determined in accordance with Regulation D.

          3.      Closing/Release of Funds. 

          The closing (“Closing”) shall be held at such time as the conditions as provided in the Securities Purchase Agreement have been satisfied. References herein to the actual closing date
thereof shall be referred to as a “Closing Date.” 

          4.      Representations and Warranties of the Selling Agent. 

          The Selling Agent represents and warrants to the Company as follows: 

                  (a)      The
Selling Agent is duly incorporated and validly existing and in good standing
under the laws of its State of  incorporation. 

                  (b)      The
Selling Agent is, and at the time of each Closing will be, a member in good standing
of the NASD. 

                  (c)      Offers
and sales of Securities by the Selling Agent will be made only in accordance
with this Placement Agreement and  in compliance with the provisions of Regulation
D and the Selling Agent will furnish to each investor a copy of the Documents
prior to accepting any subscription for the Securities. 

          5.      Compensation. 

                  (a)      The
Selling Agent shall be entitled, on the Closing Date, as compensation for its
services as Selling Agent under this  Agreement, to selling Commissions payable
in cash equal to 10% of the aggregate amount of the Notes sold in the Offering,
provided the Company has actually received the proceeds of such sales, through
subscriptions made by investors introduced by  FMSC to the Company. 

                  (b)      In
addition to the compensation payable to the Selling Agent set forth in clause
(a) above, the Company shall grant  the Selling Agent (or its assigns, subject
to compliance with the terms and conditions of this Section) warrants (“Selling
Agent Warrants”)to purchase a number of shares of Common Stock equal to
20% of the shares of Common Stock which  would be issued if the 

Notes sold in the Offering (based upon the initial conversion price as set forth in the Notes) were converted and the Selling Agent Warrants shall have an exercise price equal to the exercise price of the Warrants being
issued to the investors. The Selling Agent Warrants shall be exercisable beginning on the Closing Date of the Offering and continuing for a period of five (5) years thereafter and the Selling Agent shall not be entitled to registration rights with
respect to the shares of Common Stock. The Selling Agent Warrants shall allow for “cashless exercise”. The Selling Agent Warrants may be issued to up to ten employees and/or affiliates of the Selling Agent in such amounts as the Selling
Agent shall notify in writing the Company prior to the Closing.

          6.      Representations and Warranties of the Company. 

                  (a)      The
Company represents and warrants to, and agrees with, the Selling Agent that: 

                            (i)      No
Documents or information provided by the Company to the Subscribers, including,
without limitation the Reports (as  defined in the Purchase Agreement), shall
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
in light of circumstances made therein not  misleading. 

                            (ii)      The
Company is, and at all times during the period from the date hereof to and including
the Closing Date will be, a  corporation duly organized, validly existing, and
in good standing under the laws of the State of Delaware, with full corporate
power and authority, and has obtained all necessary consents, authorizations,
approvals, orders, licenses, certificates,  and permits and declarations of and
from, and has made filings with, all federal, state and local authorities, to
own, lease, license, and use its properties and assets and to conduct its business
as presently conducted and/or in any such case where  the failure to have any
of the foregoing would not have a material adverse effect on the Company’s
presently conducted business. As of the date hereof, the Company is, and at all
times during the period from the date hereof to and including the  Closing Date,
duly qualified to do business and is in good standing in every jurisdiction in
which its ownership, leasing, licensing, or use of property and assets or the
conduct of its business makes such qualification necessary except where the
failure to be so qualified would not have a material adverse effect on the Company’s
business. 

                            (iii)      As
of the date hereof, except as disclosed in the Documents or the Reports as this
term is defined in the Securities  Purchase Agreement, there is no, and as of
the Closing Date there shall not be any, litigation, arbitration, claim, governmental
or other proceeding (formal or informal), or investigation pending or to the
Company’s knowledge threatened, with
respect to the Company, or its respective operations, businesses, properties,
or assets, except as described in the Purchase Agreement, the Reports or which
individually or in the aggregate do not now have and will not in the future have
a material  adverse effect upon the operations, business, properties, or assets
of the Company. 

                            (iv)      The
Company is not in violation or breach of, or in default with respect to, any
material term of its Certificate of  Incorporation or By-Laws. 

                            (v)      The
Company has all requisite corporate power and authority to execute, deliver,
and perform this Agreement and to  consummate the transactions contemplated hereby.
All necessary corporate proceedings of the Company have been duly taken to authorize
the execution, delivery, and performance by the Company of this Agreement and
(subject to the Approval ( as defined  in the Purchase Agreement) the Purchase
Agreement and the consummation of the transactions contemplated hereby and thereby. 

                            (vi)      The
Selling Agent’s Warrants, when issued and delivered pursuant to the terms
of the Offering shall be duly  authorized, validly issued, fully paid and non-assessable,
without any personal liability attaching to the ownership thereof solely by being
such holder and shall not have been issued in violation of any preemptive rights
of stockholders.

                            (vii)      Neither
the Company nor any of its officers, directors, or affiliates, has engaged or
will engage, directly or  indirectly, in any act or activity that may jeopardize
the status of the offering and sale of the Securities as an exempt transaction
under Regulation D of the Securities Act of 1933, as amended. 

          7.      Covenants of the Company. 

          The Company covenants that it will: 

                  (a)      Deliver
without charge to the Selling Agent such number of copies of the Documents and
any supplement or amendment  thereto as may reasonably be requested by the Selling
Agent. 

                  (b)      Notify
you promptly of rejection of any subscription. The Company shall not (i) accept
subscriptions from, or make  sales of Securities to, any Subscribers who are
not, to the Company’s knowledge, accredited investors, or (ii) unreasonably
reject any subscription for Securities. 

                  (c)      The
Company shall cause, at its cost and expense, all “blue sky” filings
related to the Offering and  required by applicable law to be made in due and
proper form and substance and in a timely manner as required under the laws of
the states in which Securities are sold (“Blue Sky Filings”). In addition,
the Company shall cause, at its cost  and expense, a Form D related to the Offering
to be filed with the Securities and Exchange Commission (“SEC”) in
due and proper form and substance and in a timely manner. The Company shall deliver
true and correct copies of all Blue Sky  Filings and the Form D, as filed with
the SEC, to the Selling Agent within 20 days of the final closing date.

          8.      Conditions of Closing. 

          The obligations of the Selling Agent pursuant to this Agreement shall be subject, in its discretion, to the continuing accuracy of the representations and warranties of the Company contained
herein and in each certificate and document contemplated under this Agreement to be delivered to the Selling Agent, as of the date hereof and as of the Closing Date, with respect to the performance by the Company of its obligations hereunder, and to
the following conditions: 

                  (a)      At
the Closing, the Selling Agent and the Company shall have executed documents
in form and substance reasonably  acceptable to them. 

                  (b)      All
proceedings taken in connection with the issuance, sale, and delivery of the
Securities shall be satisfactory in  form and substance to FMSC and the Company. 

          9.      Termination. 

          This Agreement may be terminated by the Selling Agent (i) at anytime in the event the Selling Agent has determined, in good faith, that the Documents fail to contain a material fact required to
be stated therein or necessary to make the statements therein not misleading or (ii) upon three (3) days written notice. The Company may not terminate this Agreement in the absence of a material breach of any covenant, representation or warranty
contained in this Agreement made by the Selling Agent. 

          10.      Indemnification and Contribution. 

                    (a)      The Company agrees to indemnify and hold harmless the Selling Agent, its officers, directors, partners, employees,
agents, and counsel, and each person, if any, who controls the Selling Agent within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), against any and all loss,
liability, claim, damage, and expense whatsoever (which shall include, for all purposes of this Section 10, but not be limited to, attorneys’ fees and any and all expense whatsoever incurred in investigating, preparing, or defending against any
litigation, commenced or threatened, or any claim whatsoever and any and all amounts paid in settlement of any claim or litigation) as and when incurred arising out of, based upon, or in connection with (i) any untrue statement or alleged untrue
statement of a material fact contained in the Documents, or any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, unless such statement or omission was
made in reliance upon and in conformity with written information furnished to the Company as stated in Section 10(b) with respect to the Selling Agent expressly for inclusion in the Documents or (ii) any breach of any representation, warranty,
covenant, or agreement of the Company contained in this Agreement. The foregoing agreement to indemnify shall be in addition to any liability the Company may otherwise have, including liabilities arising under this Agreement. 

          If any action is brought against the Selling Agent or any of its officers, directors, partners, employees, agent, or counsel, or any controlling persons of the Selling Agent (an
“indemnified party”), in respect of which indemnify may be sought against the Company pursuant to the foregoing paragraph, such indemnified party or parties shall promptly notify the Company (the “indemnifying party”) in writing
of the institution of such action (but the failure so to notify shall not relieve the indemnifying party from any liability it may have other than pursuant to this Section 10(a)) and the indemnifying party shall promptly assume the defense of such
action, including the employment of counsel (reasonably satisfactory to such indemnified party or parties) and payment of expenses. Such indemnified party shall have the right to employ its own counsel in any such case, but the fees and expense of
such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such action or the indemnifying party shall not
have promptly employed counsel satisfactory to such indemnified party or parties to have charge of the defense of such action or such 

indemnified party or parties shall have reasonably concluded that there may be one or more legal defenses available to it or them or to other indemnified parties which are different from or additional to those available to
one or more of the indemnifying parties, in any of which events such reasonable fees and expenses of one such counsel shall be borne by the indemnifying party and the indemnifying party shall not have the right to direct the defense of such action
on behalf of the indemnified party or parties. Anything in this paragraph to the contrary notwithstanding, the indemnifying party shall not be liable for any settlement of any such claim or action effected without its written consent. The Company
agrees to promptly notify the Selling Agent of the commencement of any litigation or proceedings against the Company or any of its officers or directors in connection with the sale of the Securities or the Documents.

                    (b)      The Selling Agent agrees to indemnify and hold harmless the Company, its officers, directors, employees, agents, and
counsel, and each other person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, to the same extent as the foregoing indemnity from the Company to the Selling Agent in Section 10(a),
with respect to any and all loss, liability, claim, damage, and expense whatsoever (which shall include, for all purposes of this Section 10, but not be limited to, attorneys’ fees and any and all expense whatsoever incurred in investigating,
preparing, or defending against any litigation, commenced or threatened, or any claim whatsoever and any and all amounts paid in settlement of any claim or litigation) as and when incurred arising out of, based upon, or in connection with (i)
statements or omissions, if any, made in the Documents in reliance upon and in conformity with written information furnished to the Company with respect to the Selling Agent expressly for inclusion in the Documents, and (ii) or any breach of any
representation, warranty, covenant or agreement of the Selling Agent contained in this Agreement. If any action shall be brought against the Company or any other person so indemnified based on the Documents and in respect of which indemnity may be
sought against the Selling Agent pursuant to this Section, the Selling Agent shall have the rights and duties given to the indemnifying party, and the Company and each other person so indemnified shall have the rights and duties given to the
indemnified parties, by the provisions of Section 10(a) hereof. 

                    (c)      To provide for just and equitable contribution, if (i) an indemnified party makes a claim for indemnification pursuant
to Section 10(a) or 10(b) hereof but it is found in a final judicial determination, not subject to further appeal, that such indemnification may not be enforced in such case, even though this Agreement expressly provides for indemnification in such
case, or (ii) any indemnified or indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then the Company (including for this purpose any contribution made by or on behalf of any officer, director, employee, agent, or
counsel of the Company, or any controlling person of the Company), on the one hand, and the Selling Agent (including for this purpose any contribution by or on behalf of an indemnified party), on the other hand, shall contribute to the losses,
liabilities, claims, damages, and expenses whatsoever to which any of them may be subject, in such proportions as are appropriate to reflect the relative benefits received by the Company, on the one hand, and the Selling Agent, on the other hand;
provided, however, that if applicable law does not permit such allocation, then other relevant equitable considerations such as the relative fault of the Company and the Selling Agent in connection with the facts which resulted in such losses,
liabilities, claims, damages, and expenses shall also be considered. The relative benefits received by the Company, on the one hand, and the Selling Agent, on the other hand, shall be deemed to be in the same proportion as (x) the total proceeds
from the Offering (net of compensation payable to the Placement Agent pursuant to Section 5(a) hereof but 

before deducting expenses) received by the Company, and (y) the compensation received by the Selling Agent pursuant to Section 5(a) hereof. 

          The relative fault, in the case of an untrue statement, alleged untrue statement, omission, or alleged omission, shall be determined by, among other things, whether such statement, alleged
statement, omission, or alleged omission relates to information supplied by the Company or by the Selling Agent, and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement, alleged
statement, omission, or alleged omission. The Company and the Selling Agent agree that it would be unjust and inequitable if the respective obligations of the Company and the Selling Agent for contribution were determined by pro rata or per capita
allocation of the aggregate losses, liabilities, claims, damages, and expenses or by any other method of allocation that does not reflect the equitable considerations referred to in this Section 10(c). In no case shall the Selling Agent by
responsible for a portion of the contribution obligation in excess of the compensation received by it pursuant to Section 5(a) hereof. No person guilty of a fraudulent misrepresentation shall be entitled to contribution from any person who is not
guilty of such fraudulent misrepresentation. For purposes of this Section 10(c), each person, if any, who controls the Selling Agent within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act and each officer, director,
partners, employee, agent, and counsel of the Selling Agent, shall have the same rights to contribution as the Selling Agent, and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act and each officer, director, employee, agent, and counsel of the Company, shall have the same rights to contribution as the Company, subject in each case to the provisions of this Section 10(c). Anything in this Section 10(c) to the
contrary notwithstanding, no party shall be liable for contribution with respect to the settlement of any claim or action effected without its written consent. 

          11.      Non-Solicitation. 

          The Company agrees that, for a period of 12 months from the date hereof (the “Non-Solicitation Period”), it shall not solicit any offer to buy from or offer to sell to any entity
listed on Exhibit “A” any securities of the Company or of any other entity, with any selling agent, placement agent, broker or dealer other than FMSC. In the event that during the Non-Solicitation Period, the Company or any of its
affiliates, directly or indirectly, solicits, offers to buy from or offers to sell to any entity listed on Exhibit “A” any such securities from any other, placement agent, securities broker or dealer or selling agent other than FMSC, the
Company shall pay to the Selling Agent an amount equal to 10% of the aggregate purchase price of such securities so purchased by the purchasers thereof and the Placement Agent shall be entitled to five year warrants entitling the Placement Agent to
purchase shares of Common Stock equal to 20% of the shares of Common Stock (or shares of Common Stock underlying any convertible securities) at an exercise price equal to the price of the securities sold to investors. The warrants shall provide for
cashless exercise. Notwithstanding the foregoing, during the Non-Solicitation Period, the Company shall not give the names of the subscribers to any other broker dealer or selling or placement agent. Notwithstanding anything to the contrary herein,
it shall not be a violation of this Section if the Company includes the names of the entities listed on Exhibit “A” in any public filing made by the Company including but not limited to filings that the Company makes with Securities and
Exchange Commission. Upon receipt of written request by the Selling Agent, the Company shall promptly deliver to the Selling Agent the names of any investors in any offering that the Company completes within 12 months from the date of the Closing.

          12.      Representations and Agreements to Survive Delivery for a Period of Two (2) Years from the Date Hereof. 

          All representations, warranties, covenants, and agreements contained in this Agreement shall be deemed to be representations, warranties, covenants, and agreements at the Closing Date and, such
representations and warranties shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Selling Agent or any indemnified person, or by or on behalf of the Company or any person or entity which
is entitled to be indemnified under Section 10(b), and shall survive for a period of two years from the date hereof. In addition, notwithstanding the foregoing and any election hereunder or any termination of this Agreement, and whether or not the
terms of this Agreement are otherwise carried out, the provisions of Section 10 shall survive for a period of five years from the date hereof. 

          13.      Notices. 

          All communications hereunder, except as may be otherwise specifically provided herein, shall be in writing and shall be either (i) mailed by first class mail in which case delivery shall be
deemed to be made three days following deposit in the United States mail; or (ii) sent by overnight courier service in case delivery shall be deemed to be made upon receipt, to: First Montauk Securities Corp., Parkway 109 Office Center, 328 Newman
Springs Road, Red Bank, New Jersey 07701, Attention: Ernest Pellegrino, with a copy to Ellenoff, Grossman & Schole LLP, 370 Lexington Avenue, New York, New York 10017, Attention: Brian C. Daughney, Esq.; Conolog Corporation, 5 Columbia Road,
Somerville, New Jersey 07701, Attention: Robert Benou, with a copy to Sichenzia Ross Friedman Ference LLP, 1065 Avenue of Americas, New York, NY 10018, Attn: David Manno, Esq. 

          14.      Parties. 

          This Agreement shall inure solely to the benefit of, and shall be binding upon, the Selling Agent and the Company and the persons and entities referred to in Section 10 who are entitled to
indemnification or contribution, and their respective successors, legal representatives, and assigns (which shall not include any purchaser, as such, of Securities), and no other person shall have or be construed to have any legal or equitable right
remedy, or claim under or in respect of or by virtue of this Agreement or any provision herein contained. 

          15.      Construction. 

          This Agreement shall be construed in accordance with the laws of the State of New York, without giving effect to conflict of laws. 

          17.      Counterparts. 

          This Agreement may be executed in counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. This Agreement may be executed
by facsimile signature and delivered by facsimile transmission. 

          If the foregoing correctly sets forth the understanding between us, please so indicate in the space provided below for that purpose, whereupon this agreement shall constitute a binding
agreement between us. 

	 

  	 
  	
Very truly yours,
  
	 

  
	 

  	 
  	
CONOLOG CORPORATION
  
	 

  
	 

  
	 

  	 
  	
By: /s/ Robert S. Benou          
	 

  	 
  	
Name: Robert S. Benou
  
	 

  	 
  	
Title: Chairman and Chief Executive Officer
  
	
Accepted as of the date
  	 
  	 

  
	
first above written:
  	 
  	 

  
	 

  
	
FIRST MONTAUK SECURITIES CORP.
  	 
  	 

  
	 

  
	 

  
	
By: /s/ Victor K. Kurylak     
	 
  	 

  
	
Name: Victor K. Kurylak
  	 
  	 

  
	
Title: President and CEO
  	 
  	 

  

Exhibit A 

NON-SOLICITATION CLIENTS OF FMSCc47316_ex10-5.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CONOLOG CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 

 

	 	Right to Purchase 34,813 shares of Common Stock
    of Conolog Corporation (subject to adjustment as provided herein) 

BROKER’S COMMON STOCK PURCHASE
WARRANT

	
No. 2007-001
  	 
  	
    Issue Date: March 12, 2007
    

          CONOLOG CORPORATION, a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, FIRST MONTAUK SECURITIES CORP., 328
Newman Springs Road, Red Bank, NJ 07701, or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the sooner of September 8, 2007 (180 days from the Issue Date), or
the Company obtaining the Approval as defined in Section 9(r) of the Subscription Agreement if the Approval is required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate goverence rules, until 5:00 p.m., E.S.T on the fifth
(5th) anniversary of the Issue Date (the “Expiration Date”), up to 34,813 fully paid and nonassessable shares of Common Stock at a per share purchase price of
$2.88. The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase Price are
subject to adjustment as provided herein. The Company may reduce the Purchase Price without the consent of the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription Agreement”), dated March 12, 2007, entered into by the Company and Holders of the Company’s Securities. 

          As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

          (a)      The term “Company” shall include Conolog Corporation and any corporation which shall succeed or assume the obligations of Conolog Corporation hereunder.

          (b)      The term “Common Stock” includes (a) the Company’s Common Stock, $0.01 par value per share, as authorized on the date of the Subscription Agreement, and (b) any other
securities into which or for which any of the securities described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise. 

          (c)      The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities pursuant to Section 5 or otherwise.

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CONOLOG CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 

 

	 	Right to Purchase 100,000 shares of Common
    Stock of Conolog Corporation (subject to adjustment as provided herein) 

BROKER’S COMMON STOCK PURCHASE
WARRANT

	
No. 2007-002
  	 
  	
    Issue Date: March 12, 2007
    

          CONOLOG CORPORATION, a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, ERNEST PELLEGRINO, 328 Newman Springs
Road, Red Bank, NJ 07701, or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the sooner of September 8, 2007 (180 days from the Issue Date), or the Company
obtaining the Approval as defined in Section 9(r) of the Subscription Agreement if the Approval is required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate goverence rules, until 5:00 p.m., E.S.T on the fifth
(5th) anniversary of the Issue Date (the “Expiration Date”), up to 100,000 fully paid and nonassessable shares of Common Stock at a per share purchase price of
$2.88. The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase Price are
subject to adjustment as provided herein. The Company may reduce the Purchase Price without the consent of the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription Agreement”), dated March 12, 2007, entered into by the Company and Holders of the Company’s Securities. 

          As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

          (a)      Right to Purchase 100,000 shares of Common Stock of Conolog Corporation (subject to adjustment as provided herein) The term “Company” shall include Conolog Corporation and any corporation which shall succeed or assume the obligations of Conolog Corporation hereunder.

          (b)      The term “Common Stock” includes (a) the Company’s Common Stock, $0.01 par value per share, as authorized on the date of the Subscription Agreement, and (b) any other
securities into which or for which any of the securities described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise. 

          (c)      Right to Purchase 100,000 shares of Common Stock of Conolog Corporation (subject to adjustment as provided herein) The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities pursuant to Section 5 or otherwise.

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CONOLOG CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 

Right to Purchase 100,000 shares of Common Stock of Conolog Corporation (subject to adjustment as provided herein) 

BROKER’S COMMON STOCK PURCHASE WARRANT

	
No. 2007-003
  	 
  	
    Issue Date: March 12, 2007
    

          CONOLOG CORPORATION, a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, MAX POVOLOTSKY, 328 Newman Springs
Road, Red Bank, NJ 07701, or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the sooner of September 8, 2007 (180 days from the Issue Date), or the Company
obtaining the Approval as defined in Section 9(r) of the Subscription Agreement if the Approval is required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate goverence rules, until 5:00 p.m., E.S.T on the fifth
(5th) anniversary of the Issue Date (the “Expiration Date”), up to 100,000 fully paid and nonassessable shares of Common Stock at a per share purchase price of
$2.88. The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase Price are
subject to adjustment as provided herein. The Company may reduce the Purchase Price without the consent of the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription Agreement”), dated March 12, 2007, entered into by the Company and Holders of the Company’s Securities. 

          As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

          (a)      The term “Company” shall include Conolog Corporation and any corporation which shall succeed or assume the obligations of Conolog Corporation hereunder.

          (b)      The
term “Common Stock” includes (a) the Company’s Common Stock, $0.01
par value per share, as authorized on the date of the Subscription Agreement,
and (b) any other  securities into which or for which any of the securities described
in (a) may be converted or exchanged pursuant to a plan of recapitalization,
reorganization, merger, sale of assets or otherwise. 

          (c)      The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities pursuant to Section 5 or otherwise.

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CONOLOG CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 

 

	 	Right to Purchase 34,812 shares of Common Stock
    of Conolog Corporation (subject to adjustment as provided herein) 

BROKER’S COMMON STOCK PURCHASE WARRANT

	
No. 2007-004
  	 
  	
    Issue Date: March 12, 2007
    

          CONOLOG CORPORATION, a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, VICTOR K. KURYLAK, 328 Newman Springs
Road, Red Bank, NJ 07701, or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the sooner of September 8, 2007 (180 days from the Issue Date), or the Company
obtaining the Approval as defined in Section 9(r) of the Subscription Agreement if the Approval is required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate goverence rules, until 5:00 p.m., E.S.T on the fifth
(5th) anniversary of the Issue Date (the “Expiration Date”), up to 34,812 fully paid and nonassessable shares of Common Stock at a per share purchase price of
$2.88. The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase Price are
subject to adjustment as provided herein. The Company may reduce the Purchase Price without the consent of the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription Agreement”), dated March 12, 2007, entered into by the Company and Holders of the Company’s Securities. 

          As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

          (a)      The term “Company” shall include Conolog Corporation and any corporation which shall succeed or assume the obligations of Conolog Corporation hereunder.

          (b)      The term “Common Stock” includes (a) the Company’s Common Stock, $0.01 par value per share, as authorized on the date of the Subscription Agreement, and (b) any other
securities into which or for which any of the securities described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise. 

          (c)      The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities pursuant to Section 5 or otherwise.

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO CONOLOG CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 

 

	 	Right to Purchase 12,875 shares of Common Stock
    of Conolog Corporation (subject to adjustment as provided herein) 

BROKER’S COMMON STOCK PURCHASE
WARRANT

	
No. 2007-005
  	 
  	
    Issue Date: March 12, 2007
    

          CONOLOG CORPORATION, a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, ANGELA METELITSA, 328 Newman Springs
Road, Red Bank, NJ 07701, or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the sooner of September 8, 2007 (180 days from the Issue Date), or the Company
obtaining the Approval as defined in Section 9(r) of the Subscription Agreement if the Approval is required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate goverence rules, until 5:00 p.m., E.S.T on the fifth
(5th) anniversary of the Issue Date (the “Expiration Date”), up to 12,875 fully paid and nonassessable shares of Common Stock at a per share purchase price of
$2.88. The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase Price are
subject to adjustment as provided herein. The Company may reduce the Purchase Price without the consent of the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription Agreement”), dated March 12, 2007, entered into by the Company and Holders of the Company’s Securities. 

          As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

          (a)      The term “Company” shall include Conolog Corporation and any corporation which shall succeed or assume the obligations of Conolog Corporation hereunder.

          (b)      The term “Common Stock” includes (a) the Company’s Common Stock, $0.01 par value per share, as authorized on the date of the Subscription Agreement, and (b) any other
securities into which or for which any of the securities described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise. 

          (c)      The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities pursuant to Section 5 or otherwise.

          (d)      The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant. 

          1.      Exercise of Warrant.   

                    1.1.      Number of Shares Issuable upon Exercise.   From and after the Issue Date through and including the Expiration Date,
the Holder hereof shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of subsection 1.2 or upon exercise of this Warrant in part in accordance with subsection 1.3, shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4. 

                    1.2.      Full Exercise.   This Warrant may be exercised in full by the Holder hereof by delivery of an original or facsimile
copy of the form of subscription attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and delivery within two days thereafter of payment, in cash, wire transfer or by certified or official bank check payable
to the order of the Company, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Purchase Price then in effect. The original Warrant is not required to be surrendered to the
Company until it has been fully exercised.

                    1.3.      Partial Exercise.   This Warrant may be exercised in part (but not for a fractional share) by surrender of this
Warrant in the manner and at the place provided in subsection 1.2 except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the
Holder in the Subscription Form by (b) the Purchase Price then in effect. On any such partial exercise provided the Holder has surrendered the original Warrant, the Company, at its expense, will forthwith issue and deliver to or upon the order of
the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common Stock for which such Warrant may still
be exercised for the balance of. 

                    1.4.      Fair Market Value.   Fair Market Value of a share of Common Stock as of a particular date (the “Determination
Date”) shall mean:

                              (a)      If the Company’s Common Stock is traded on an exchange or is quoted on the National Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”), National Market
System, the NASDAQ Capital Market or the American Stock Exchange, LLC, then the closing or last sale price, respectively, reported for the last business day immediately preceding the Determination Date; 

                              (b)      If
the Company’s Common Stock is not traded on an exchange or on the NASDAQ
National Market System, the NASDAQ Capital Market or the American Stock Exchange,
Inc., but is traded in the  over-the-counter market, then the average of the
closing bid and ask prices reported for the last business day immediately preceding
the Determination Date; 

                              (c)      Except as provided in clause (d) below, if the Company’s Common Stock is not publicly traded, then as the Holder and the Company agree, or in the absence of such an agreement, by
arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training to pass on the matter to be decided; or 

                              (d)      If the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s charter,
then all amounts to be payable per share to holders of the Common Stock pursuant to the charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common Stock in liquidation
under the charter, assuming for the 

purposes of this clause (d) that all of the shares of Common Stock then issuable upon exercise of all of the Warrants are outstanding at the Determination Date. 

                    1.5.      Company Acknowledgment.   The Company will, at the time of the exercise of the Warrant, upon the request of the
Holder hereof acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to
make any such request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights. 

                    1.6.      Trustee for Warrant Holders.   In the event that a bank or trust company shall have been appointed as trustee for the
Holder of the Warrants pursuant to Subsection 3.2, such bank or trust company shall have all the powers and duties of a warrant agent (as hereinafter described) and shall accept, in its own name for the account of the Company or such successor
person as may be entitled thereto, all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant to this Section 1.

                    1.7      Delivery of Stock Certificates, etc. on Exercise.   The Company agrees that the shares of Common Stock purchased upon
exercise of this Warrant shall be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which payment shall have been made for such Warrant Shares as aforesaid. As soon as practicable
after the exercise of this Warrant in full or in part, and in any event within three (3) business days thereafter (“Warrant Share Delivery Date”), the Company at its expense (including the payment by it of any applicable issue taxes) will
cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate or certificates for the
number of duly and validly issued, fully paid and nonassessable shares of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be
entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon
such exercise pursuant to Section 1 or otherwise.

                     1.8      Shareholder Approval.  If
required by the applicable NASD Market Place Rules and/or Nasdaq’s corporate governance rules, and notwithstanding anything to the contrary herein, (i) until the Company either obtains shareholder approval of the issuance of the Securities, or
(ii) an exemption from NASDAQ’s corporate governance rules as they may apply to the Warrant Shares, and an opinion from counsel reasonably acceptable to Subscriber that the issuance of the Warrant Shares will not violate NASDAQ’s corporate
governance rules nor may result in a delisting of the Company’s common stock from the SmallCap, the Holder may not receive any Warrant Shares. 

           2.      Cashless Exercise.   

                    (a)      Except as described below, if a Registration Statement (as defined in the Subscription Agreement) (“Registration Statement”) is effective and the Holder may sell its shares of
Common Stock upon exercise hereof pursuant to the Registration Statement, this Warrant may be exercisable in whole or in part for cash only as set forth in Section 1 above. If no such Registration Statement is available during the time that such
Registration Statement is required to be effective pursuant to the terms of the Subscription Agreement, or if after the Maturity Date (accelerated or otherwise) of the Note issued pursuant to the Subscription Agreement any sums due under the Note
remains unpaid after any applicable cure period, then payment upon exercise may be made at the option of the Holder either in (i) cash, by wire transfer or certified or official bank check payable to the order of the Company equal to the applicable
aggregate Purchase Price, (ii) by cashless exercise in accordance with Section (b) below or (iii) by a combination of any of the foregoing methods, for the number of Common Stock specified in such form (as such exercise number shall be adjusted to
reflect any adjustment in the total number of shares of Common Stock issuable to the holder per the terms of this Warrant) and the holder shall 

thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or Other Securities) determined as provided herein. 

                    (b)       If the Notice of Exercise form elects a "cashless" exercise, the Holder shall thereby be entitled to receive a number of shares of Common Stock equal to (x) the excess of the Current Market Value (as defined below)
over the total cash exercise price of the portion of the Warrant then being exercised, divided by (y) the Market Price of the Common Stock as of the trading day immediately prior to the date of exercise. For the purposes of this Warrant, the term
"Current Market Value" shall be an amount equal to the Market Price of the Common Stock as of the trading day immediately prior to the Exercise Date, multiplied by the number of shares of Common Stock specified in such Notice of Exercise Form, and
"Market Price of the Common Stock" shall be the average of the closing bid price of the Common Stock (as reported by Bloomberg L.P. for the Principal Market) for the 5 Trading days prior to the exercise date. 

                    (c)      The Holder may employ the cashless exercise feature described in Section (b) above only during the pendency of a
Non-Registration Event as described in Section 11 of the Subscription Agreement or after the Maturity Date of the Note (accelerated or otherwise) at a time when any sums due under the Note remains unpaid after any applicable cure period. For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the
Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement. 

            3.      Adjustment for Reorganization, Consolidation, Merger, etc. 

                    3.1.      Reorganization, Consolidation, Merger, etc.   In case at any time or from time to time, the Company shall (a) effect
a reorganization, (b) consolidate with or merge into any other person or (c) transfer all or substantially all of its properties or assets to any other person under any plan or arrangement contemplating the dissolution of the Company, then, in each
such case, as a condition to the consummation of such a transaction, proper and adequate provision shall be made by the Company whereby the Holder of this Warrant, on the exercise hereof as provided in Section 1, at any time after the consummation
of such reorganization, consolidation or merger or the effective date of such dissolution, as the case may be, shall receive, in lieu of the Common Stock (or Other Securities) issuable on such exercise prior to such consummation or such effective
date, the stock and other securities and property (including cash) to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case may be, if such Holder had so exercised this Warrant,
immediately prior thereto, all subject to further adjustment thereafter as provided in Section 4. 

                    3.2.      Dissolution.   In the event of any dissolution of the Company following the transfer of all or substantially all of
its properties or assets, the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and property (including cash, where applicable) receivable by the Holder of the Warrants after the
effective date of such dissolution pursuant to this Section 3 to a bank or trust company (a “Trustee”) having its principal office in New York, NY, as trustee for the Holder of the Warrants.

                    3.3.      Continuation of Terms.   Upon any reorganization, consolidation, merger or transfer (and any dissolution following
any transfer) referred to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such
reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any Other Securities, including, in the case of any such transfer, the person
acquiring all or substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant as provided in Section 4. In the event this Warrant does not continue in full force and
effect after the consummation of the transaction 

described in this Section 3, then only in such event will the Company’s securities and property (including cash, where applicable) receivable by the Holder of the Warrants be delivered to the Trustee as contemplated by
Section 3.2. 

          4.      Extraordinary Events Regarding Common Stock.   In the event that the Company shall (a) issue additional shares of the
Common Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of the Common Stock, then,
in each such event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Purchase Price then in effect. The Purchase
Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described herein in this Section 4. The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the
exercise hereof as provided in Section 1, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such
exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such exercise. 

          5.      Certificate as to Adjustments.   In each case of any adjustment or readjustment in the shares of Common Stock (or Other
Securities) issuable on the exercise of the Warrants, the Company at its expense will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each
such certificate to the Holder of the Warrant and any Warrant Agent of the Company (appointed pursuant to Section 11 hereof). 

          6.      Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.   The Company will at all times
reserve and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time issuable on the exercise of the Warrant.

          7.      Assignment; Exchange of Warrant.   Subject to compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”). On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B attached hereto (the “Transferor
Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company at its expense, twice only, but with payment
by the Transferor of any applicable transfer taxes, will issue and deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor
Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor. No such transfers shall
result in a public distribution of the Warrant. 

          8.      Replacement of Warrant.   On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of any such loss, theft or 

destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant,
the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor. 

           9.      Intentionally Deleted.   

          10.      Maximum Exercise.   The Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with
that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable
upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares
of Common Stock on such date. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
Subject to the foregoing, the Holder shall not be limited to aggregate exercises which would result in the issuance of more than 4.99% . The Holder may decide whether to convert a Note or exercise this Warrant to achieve an actual 4.99% ownership
position. 

          11.      Warrant Agent.   The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant
Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section 7, and replacing this Warrant pursuant to Section 8, or any of the
foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.

          12.      Transfer on the Company’s Books.   Until this Warrant is transferred on the books of the Company, the Company may
treat the registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

          13.      Notices.   All notices, demands, requests, consents, approvals, and other communications required or permitted
hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required
or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on
the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur or (c) three business days after deposited in the mail if
delivered pursuant to subsection (ii) above. The addresses for such communications shall be: (i) if to the Company to: Conolog Corporation, 5 Columbia Road, Somerville, NJ 08876, Attn: Robert Benou, telecopier: (908) 722-5461, with a copy by
telecopier only to: Sichenzia Ross Friedman Ference LLP, 1065 Avenue of Americas, New York, NY 10018, Attn: David Manno, Esq., telecopier: (212) 930-9725, and (ii) if to the Holder, to the addresses and telecopier number set forth in the first
paragraph of this Warrant, with an additional copy by telecopier only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier number: (212) 697-3575. 

          14.      Miscellaneous.   This Warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. This Warrant shall be construed and enforced in accordance with and governed by the laws of New York. Any dispute
relating to this Warrant shall be adjudicated in New York County in the State of New York. The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

          IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

CONOLOG CORPORATION

	 
	By:  
  	 

  
	 

  	 
  	
Name:
  
	 

  	 
  	
Title:
  

Exhibit A 

FORM OF SUBSCRIPTION 

(to be signed only on exercise of Warrant)

TO: CONOLOG CORPORATION

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box): 

___     ________ shares of the Common Stock covered by such Warrant; or

___     the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2. 

The undersigned herewith makes payment of the full
purchase price for such shares at the price per share provided for in such Warrant,
which is $___________. Such payment takes the form of (check applicable box
or boxes): 

___     $
  __________ in lawful money of the United States; and/or

___      the cancellation of the Warrant to the extent necessary, in accordance with the
  formula set forth Section 2, to exercise this Warrant with respect to the maximum
  number of shares of Common Stock purchasable pursuant to  the cashless exercise
  procedure set forth in Section 2. 

The undersigned requests that the certificates for
such shares be issued in the name of, and delivered to _____________________________________________________
whose address is

_____________________________________________________________________________________

_____________________________________________________________________________________

 Number of Shares of Common Stock Beneficially Owned on the
date of exercise: Less than five percent (5%) of the outstanding Common Stock of Conolog Corporation 

The undersigned represents and warrants that the representations and warranties in Section 4 of the Subscription Agreement (as defined in this Warrant) are true and accurate with respect to the undersigned on the date
hereof. 

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the
Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from registration under the Securities Act. 

	
Dated:
___________________  	 
  	 

  
	 

  	 
  	
(Signature must conform to name of holder as
  
	 

  	 
  	
specified on the face of the Warrant)

	 	 	 
	 	 	 
	 

  	 
  	
(Address)
  

Exhibit B

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant) 

          For value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the right represented by the within Warrant to
purchase the percentage and number of shares of Common Stock of CONOLOG CORPORATION to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,” respectively, opposite the
name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of CONOLOG CORPORATION with full power of substitution in the premises. 

	  Transferees
    	  Percentage Transferred
    	  Number Transferred

	 

	 

	 

	 Dated: ______________,
        ___________________ 	  	  
	  	  	 (Signature must conform to name
        of holder as specified 
	  	  	 on the face of the warrant) 
	  
	 Signed in the
        presence of: 	  	  
	 	 	 
	 
	 	 
	                (Name) 	  	  
	  	  	                (address) 
	  
	 ACCEPTED AND
        AGREED: 	  	  
	 [TRANSFEREE] 	  	  
	  	  	                (address) 
	  
	 
	  	  
	                (Name)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]