Document:

Exhibit 10.2

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

THIS REGISTRATION RIGHTS
AGREEMENT (the “Agreement”) is made and entered into as of this 22nd day of November, 2016, by and
among Precision Optics Corporation, Inc., a Massachusetts corporation (the “Company”), and the “Investors”
named in that certain Securities Purchase Agreement, dated as of the date hereof, by and among the Company and the Investors (the
“Purchase Agreement”). Capitalized terms used herein have the respective meanings ascribed thereto in the Purchase
Agreement unless otherwise defined herein.

 

WHEREAS, the Company
and the Investors have entered into that certain Purchase Agreement, pursuant to which the Investors purchased from the Company
up to an aggregate of 1,333,334 units (the “Units”), with each unit consisting of one (1) share of the Company’s
common stock, $0.01 par value (“Common Stock”) and one (1) warrant to purchase one-half of one share of Common Stock
(subject to adjustment as provided therein) at a variable exercise price per share in the form attached hereto as Exhibit B (the
“Warrants), at a purchase price of $0.60 per Unit, (the “Warrants”) (collectively, the “Transaction”);
and

 

WHEREAS, the parties
hereto are entering into this Agreement to provide certain registration rights under the 1933 Act (as defined below), and the rules
and regulations promulgated thereunder, and applicable state securities laws to the Investors with respect to Registrable Securities
(as defined below) each may hold; and

 

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

 

	 	1.	Certain Definitions.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

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

 

“Common Stock”
means the Company’s common stock, $0.01 par value, and any securities into which such shares may hereinafter be reclassified.

 

“Investors”
means the Investors identified in the Purchase Agreement and any Affiliate or permitted transferee of any Investor who is a subsequent
holder of any Registrable Securities.

 

“Prospectus”
means the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in
such prospectus.

 

“Register,”
“registered” and “registration” refer to a registration made by preparing and filing one
or more Registration Statement (as defined below) or similar document in compliance with the 1933 Act and pursuant to Rule 415
under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and
the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

“Registrable
Securities” means the shares of Common Stock purchased by the Investors pursuant to the Purchase Agreement and any shares
of Common Stock that may be issued or issuable to prevent dilution resulting from stock splits, stock dividends or similar transactions
as permitted by Rule 416(a) of the 1933 Act; provided, that a security shall cease to be a Registrable Security upon the earlier
of (i) sale pursuant to the Registration Statement or Rule 144 (or other available exemption) under the 1933 Act, or (ii) such
security becoming eligible for sale without restriction by the holder thereof pursuant to Rule 144 (or other available exemption)
under the 1933 Act, or (iii) at such time as the transfer agent agrees that the legend on certificates representing the shares
of Common Stock can be removed based on Rule 144 or any other applicable law, rule regulation or legal interpretation of such laws,
rules and regulations.

 

 

 

    	 	1	 

     

    

 

 

 

“Registration
Statement” means any registration statement of the Company filed under the 1933 Act that covers the resale of any of
the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement,
including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 

“Required
Investors” means the Investors holding a majority of the Registrable Securities.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC Guidance”
means (i) any publicly-available written or oral guidance of the SEC staff, or any comments, requirements or requests of the SEC
staff and (ii) the 1933 Act.

 

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

 

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

 

		2.	Registration.

 

		2.1	Registration Statement.

 

(a)    
Each Investor acknowledges that the Company’s Common Stock currently trades on the OTCQB and that the Company is not
currently eligible to use Form S-3 for the Registration Statement(s) required to be filed hereunder.

 

(b)    
Promptly following the closing of the purchase and sale of the securities contemplated by the Purchase Agreement (the “Closing
Date”) but no later than ninety (90) calendar days after the Closing Date, the Company shall prepare and file with the
SEC one Registration Statement on Form S-1, covering the resale of the Registrable Securities, subject to the limitation contained
in Section 2.1(c). Such Registration Statement shall also cover, to the extent allowable under the 1933 Act and the rules
promulgated thereunder (including Rule 416), but subject to the limitation contained in Section 2.1(c), such indeterminate
number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to
the Registrable Securities.

 

(c)    
Registration Limitation. Notwithstanding any other provision of this Agreement, if the SEC or any SEC Guidance sets
forth a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement as
a secondary offering, the Company shall reduce Registrable Securities on a pro rata basis. In the event of a reduction of the number
of Registrable Securities hereunder, the Company shall give the Investor at least five (5) Business Days prior written notice along
with the calculations as to such Investor’s allotment. In the event the Company amends the initial Registration Statement
in accordance with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by
the SEC or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements
on Form S-1 (unless the Company is then eligible to use Form S-3) or such other form available to register for resale those Registrable
Securities that were not registered for resale on the Initial Registration Statement, as amended.

 

2.2  
Expenses. The Company will pay all expenses associated with each registration, including filing and printing fees,
the Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale
under applicable state securities laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers,
dealer managers or similar securities industry professionals with respect to the Registrable Securities being sold.

 

 

 

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		2.3	Effectiveness.

 

(a) The Company shall
use commercially reasonable efforts to have the Registration Statement declared effective as soon as practicable. The Company shall
(1) notify the Investors by facsimile or e-mail as promptly as practicable, and in any event, within two (2) Business Days, after
any Registration Statement is declared effective and (2) promptly after a written request by an Investor, provide the Investors
with printed copies of any related Prospectus to be used in connection with the sale or other disposition of the securities covered
thereby.

 

(b) The Company may
suspend the use of any Prospectus included in any Registration Statement contemplated by this Section in the event that the Company
determines in good faith that such suspension is necessary to (A) delay the disclosure of material non-public information concerning
the Company, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the
Company or (B) amend or supplement the affected Registration Statement or the related Prospectus so that such Registration Statement
or Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances under which they were
made, not misleading (an “Allowed Delay”); provided, that the Company shall promptly (a) notify each Investor
in writing of the commencement of an Allowed Delay, (b) advise the Investors in writing to cease all sales under the Registration
Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts to terminate the Allowed Delay as promptly
as practicable.

 

3.     
Company Obligations. The Company will use its commercially reasonable efforts to effect the registration of the Registrable
Securities in accordance with the terms hereof, and, pursuant thereto, the Company will, as expeditiously as possible:

 

3.1  
Use commercially reasonable efforts to cause such Registration Statement to become effective within one hundred and eighty
(180) calendar days after the date the Registration Statement is first filed and to remain continuously effective until the date
on which the Investors have sold all the Registrable Securities (the “Effectiveness Period”);

 

3.2  
Prepare and file with the SEC such amendments and post-effective amendments to the Registration Statement and the Prospectus
as may be necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the provisions
of the 1933 Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

 

3.3  
Subject to the paragraph at the end of this Section, furnish (which may be by email notice of a filing on EDGAR) to the
Investors and their counsel promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the
Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the case may be) one
(1) copy of any Registration Statement and any amendment thereto, the Prospectus and each amendment or supplement thereto, in each
case relating to such Registration Statement;

 

3.4  
Use commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and,
(ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;

 

3.5  
Prior to any public offering of Registrable Securities, at the written request of the Required Investors and if required
by applicable law, use commercially reasonable efforts to register or qualify such Registrable Securities for offer and sale under
the securities or blue sky laws of such jurisdictions requested by the Investors and do any and all other commercially reasonable
acts or things necessary or advisable to enable the distribution in such jurisdictions of the Registrable Securities covered by
the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3.5(ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject but for this Section
3.5, or (iii) file a general consent to service of process in any such jurisdiction;

 

3.6  
Use commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed
on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company are
then listed;

 

3.7  
Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933
Act and the 1934 Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement
or amendment thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any
time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Investors are required to deliver a prospectus in connection with any disposition of Registrable Securities and take such other
actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder; and

 

 

 

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3.8  
With a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or
regulation of the SEC that may at any time permit the Investors to sell shares of Common Stock to the public without registration,
during the Effectiveness Period, the Company covenants and agrees to: (i) use its reasonable best efforts to make and keep public
information available, as those terms are understood and defined in Rule 144; (ii) use its reasonable best efforts to file with
the SEC in a timely manner all reports and other documents required of the Company under the 1934 Act; and (iii) furnish to each
Investor upon request, as long as such Investor owns any Registrable Securities, (A) a written statement by the Company that it
has complied with the reporting requirements of the 1934 Act, (B) such other information as may be reasonably requested in order
to avail such Investor of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without
registration.

 

		4.	Obligations of the Investors.

 

4.1  
Each Investor shall furnish in writing to the Company such information regarding itself, the Registrable Securities held
by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect
the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company
may reasonably request. Furthermore, each Investor will promptly, and in any event within three (3) calendar days of a Company
request, respond fully to any reasonable request for information as required by the Company or the SEC or any other regulator for
inclusion in the Registration Statement or in correspondence to the SEC or such other regulator. Failure to respond to such requests
will stay any obligation of the Company to register such Investor’s securities.

 

4.2  
Each Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of a Registration Statement hereunder.

 

4.3  
Each Investor agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed Delay
pursuant to Section 2.3(b) or (ii) the happening of an event pursuant to Section 3.7 hereof, such Investor will immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities,
until the Investor is advised by the Company that such dispositions may again be made.

 

4.4  
Each Investor covenants and agrees that it will comply with the prospectus delivery and other requirements of the 1933 Act
as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement, including compliance
with the “Plan of Distribution” section of the then current prospectus relating to such Registration Statement.

 

		5.	Indemnification.

 

5.1  
Indemnification by the Company. The Company will indemnify and hold harmless each Investor who holds Registrable
Securities and its officers, directors, members, employees and agents, successors and assigns, and each other Person, if any, who
controls such Investor within the meaning of the 1933 Act, against any losses, liabilities, obligations, claims, contingencies,
damages, actual costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’
fees and costs of investigation (collectively, “Losses”), insofar as such Losses arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement, any Prospectus,
or any amendment or supplement thereof or arising out of or based upon any omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not misleading; (ii) any blue sky application or other
document executed by the Company specifically for that purpose or based upon written information furnished by the Company filed
in any state or other jurisdiction in order to qualify any or all of the Registrable Securities under the securities laws thereof
(any such application, document or information herein called a “Blue Sky Application”); (iii) the omission or
alleged omission to state in a Blue Sky Application a material fact required to be stated therein or necessary to make the statements
therein not misleading; (iv) any violation by the Company or its agents of any rule or regulation promulgated under the 1933 Act
applicable to the Company or its agents and relating to action or inaction required of the Company in connection with such registration;
or (v) any failure to register or qualify the Registrable Securities included in any such Registration Statement in any state where
the Company or its agents has affirmatively undertaken or agreed in writing that the Company will undertake such registration or
qualification on an Investor’s behalf and will reimburse such Investor, and each such officer, director or member and each
such controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case if and
to the extent that any such Losses arise out of or are based upon (A) an untrue statement or alleged untrue statement or omission
or alleged omission so made in conformity with information furnished by such Investor or any such controlling person in writing
specifically for use in such Registration Statement or Prospectus; (B) a failure of the Investor to deliver or to cause to be delivered
the prospectus made available by the Company; (C) the Investor’s use of an incorrect prospectus despite being promptly advised
in advance by the Company in writing not to use such incorrect prospectus; (D) any claims based on the manner of sale of the Registrable
Securities by the Investor; or (E) any omission of the Investor to notify the Company of any material fact that should be stated
in the Registration Statement or prospectus relating to the Investor or the manner of sale.

 

 

 

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5.2  
Indemnification by the Investors. Each Investor agrees, severally and jointly, to indemnify and hold harmless, to
the fullest extent permitted by law, the Company, its directors, officers, employees, shareholders and each person who controls
the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including reasonable
attorney fees) resulting from any untrue statement of a material fact or any omission of a material fact required to be stated
in the Registration Statement or Prospectus or amendment or supplement thereto or necessary to make the statements therein not
misleading, to the extent, but only to the extent that such untrue statement or omission is contained in any information furnished
in writing by such Investor to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment
or supplement thereto. In no event shall the liability of an Investor be greater in amount than the dollar amount of the proceeds
(net of all expenses paid by such Investor in connection with any claim relating to this Section 5 and the amount of any damages
such Investor has otherwise been required to pay by reason of such untrue statement or omission) received by such Investor upon
the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

 

5.3  
Conduct of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice
to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled
to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but
the fees and expenses of such counsel shall be at the expense of such person unless (a) the indemnifying party has agreed to pay
such fees or expenses, or (b) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably
satisfactory to such person or (c) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict
of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies
the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party,
the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further,
that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the
defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding
in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified
parties. No indemnifying party will, except with the consent of the indemnified party, consent to entry of any judgment or enter
into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation. No indemnifying party will be liable to any indemnified
party under this Agreement for any settlement by such indemnified party effected without the indemnifying party’s prior written
consent, which shall not be unreasonably withheld, conditioned or delayed.

 

5.4  
Contribution. If for any reason the indemnification provided for in the preceding paragraphs 5.1 and 5.2
is unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the
indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage
or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party,
as well as any other relevant equitable considerations. No person guilty of fraudulent misrepresentation within the meaning of
Section 11(f) of the 1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.
In no event shall the contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount
of the proceeds (net of all expenses paid by such holder in connection with any claim relating to this Section 5 and the amount
of any damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

		6.	Miscellaneous.

 

6.1  
Amendments and Waivers. This Agreement may be amended only by a writing signed by the Company and the Required Investors.

 

6.2  
Notices. All notices and other communications provided for or permitted hereunder shall be made as set forth in
Section 8.4 of the Purchase Agreement.

 

 

 

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6.3  
Assignments and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to the benefit
of the Investors and their respective successors and assigns. An Investor may transfer or assign, in whole or from time to time
in part, to one or more persons its rights hereunder in connection with the transfer of Registrable Securities by such Investor
to such person, provided that (i) the Investor agrees in writing with such transferee or assignee to assign all or any portion
of such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the
Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address
of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or
assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by such transferee
or assignee is restricted under the 1933 Act or applicable state securities laws if so required; (iv) at or before the time the
Company receives the written notice contemplated by clause (ii) of this sentence such transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; (v) such transfer or assignment shall have been made in
accordance with the applicable requirements of the Purchase Agreement; and (vi) such transfer or assignment shall have been conducted
in accordance with all applicable federal and state securities laws. The term “Investor” in this Agreement shall also
include all such transferees and assignees.

 

6.4  
Assignments and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation
of law or otherwise) without the prior written consent of the Required Investors, provided, however, that in the event that the
Company is a party to a merger, consolidation, share exchange or similar business combination transaction in which the Common Stock
is converted into the equity securities of another Person, from and after the effective time of such transaction, such Person shall,
agree to and, by virtue of such transaction, have assumed the obligations of the Company hereunder, the term “Company”
shall be deemed to refer to such Person and the term “Registrable Securities” shall be deemed to include the securities
received by the Investors in connection with such transaction unless such securities are otherwise freely tradable by the Investors
after giving effect to such transaction.

 

6.5  
Benefits of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations,
or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

6.6  
Remedies. In the event of a breach by the Company of any of its obligations under this Agreement, each Investor,
in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, shall
be entitled to specific performance of its rights under this Agreement. The Company agrees that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for specific performance in respect of such breach, it shall not assert or shall
waive the defense that a remedy at law would be adequate.

 

6.7  
Piggy-Back Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the account of others under the 1933 Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the 1933 Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Investor a written
notice of such determination and, if within five days after the date of the delivery of such notice, any such Investor shall so
request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such
Investor requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities
pursuant to this Section 6.7 that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public information
requirements) promulgated by the SEC pursuant to the 1933 Act or that are the subject of a then effective Registration Statement.

 

6.8  
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor
shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to
its securities, that would have the effect of impairing the rights granted to the Investors in this Agreement or otherwise conflicts
with the provisions hereof. Except as set forth on Schedule 3.3, neither the Company nor any of its Subsidiaries has previously
entered into any agreement granting any registration rights with respect to any of its securities to any Person that have not been
satisfied in full.

 

 

 

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6.9  
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided
by law.

 

6.10   Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor hereunder are several and not joint
with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance of
the obligations of any other Investor hereunder. Nothing contained herein or in any other agreement or document delivered at
any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Investors
are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by
this Agreement or any other matters, and the Company acknowledges that the Investors are not acting in concert or as a group,
and the Company shall not asset any such claim, with respect to such obligations or transactions. Each Investor shall be
entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The use
of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not
the action or decision of any Investor, and was done solely for the convenience of the Company and not because it was
required or requested to do so by any Investor. It is expressly understood and agreed that each provision contained in this
Agreement is between the Company and a Investor, solely, and not between the Company and the Investors collectively and not
between and among Investors.

 

6.11  
Counterparts; Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile
or by emailing a “.pdf” format data file, which shall be deemed an original.

 

6.12  
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

6.13  
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders
any provisions hereof prohibited or unenforceable in any respect.

 

6.14  
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all
such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment
of the agreements herein contained.

 

6.15  
Entire Agreement. This Agreement and the Purchase Agreement are intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. This Agreement and the Purchase Agreement supersede all prior agreements and
understandings between the parties with respect to such subject matter.

 

6.16  
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed
in accordance with, the internal laws of the State of New York applicable to agreements made and to be performed entirely within
the State of New York. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State
of New York located in New York County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world
by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents
to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY
IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

 

[Signature Pages Follow.]

 

 

 

    	 	7	 

     

    

 

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

 

 

	The Company:	PRECISION OPTICS CORPORATION, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Joseph N. Forkey
	 	Name:	Joseph N. Forkey
	 	Title:	President and Chief Executive Officer

 

 

 

    	 	8	 

     

    

 

[Signature Page to Registration Rights
Agreement]

 

 

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

 

 

	Name of Investor:	DOLPHIN ASSET MANAGEMENT CORP.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

[Signature Page to Registration Rights
Agreement]

 

 

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

 

 

	Name of Investor:	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

 

 

 

    	 	10Exhibit 10.3

 

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

 

SUBJECT TO THE PROVISIONS OF SECTION
10 HEREOF, THIS WARRANT SHALL VEST ON OCTOBER 2, 2017 (THE “VESTING DATE”) AND SHALL EXPIRE ON OCTOBER 16, 2017,
AT 5:00 P.M. EASTERN TIME (THE “EXPIRATION DATE”).

 

No. [●]

 

PRECISION OPTICS CORPORATION, INC.

 

WARRANT TO PURCHASE [____] SHARES OF

 

COMMON STOCK, PAR VALUE $0.01 PER SHARE

 

For VALUE RECEIVED,
[___] (the “Holder”), is entitled to purchase, subject to the provisions of this Warrant, from Precision Optics
Corporation, Inc., a Massachusetts corporation (“Company”), at any time not later than 5:00 P.M., Eastern time,
on the Expiration Date (as defined above), at a variable exercise price per share as defined in Section 3(b) herein (the exercise
price in effect being herein called the “Warrant Price”), [___] shares (“Warrant Shares”)
of the Company’s common stock, par value $0.01 (“Common Stock”). The number of Warrant Shares purchasable
upon exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time as described herein. This
Warrant is being issued pursuant to the Securities Purchase Agreement, dated as of November 22, 2016 (the “Purchase Agreement”),
among the Company and the initial holders of the Company Warrants (as defined in Section 20 of this Warrant). Capitalized terms
used herein have the respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein. The Company
may, in its sole discretion, decrease the Warrant Price or extend the expiration date of this Warrant.

 

Section 1.       Registration.
The Company shall maintain books for the transfer and registration of this Warrant. Upon the initial issuance of this Warrant,
the Company shall issue and register this Warrant in the name of the Holder.

 

Section 2.       Transfers.
As provided herein, this Warrant may be transferred only pursuant to a registration statement filed under the Securities Act or
an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant from time to time upon
the books to be maintained by the Company for that purpose, upon surrender hereof for transfer, properly endorsed or accompanied
by appropriate instructions for transfer and such other documents as may be reasonably required by the Company, including, if required
by the Company, an opinion of its counsel to the effect that such transfer is exempt from the registration requirements of the
Securities Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued
to the transferee and the surrendered Warrant shall be canceled by the Company.

 

Section 3.       Exercise
of Warrant. (a) Subject to the provisions hereof, the Holder may exercise this Warrant, in whole or in part, at any time during
the period from the Vesting Date to the Expiration Date upon surrender of the Warrant, together with delivery of a duly executed
Warrant Exercise Form, in the form attached hereto as Appendix A (the “Exercise Agreement”), and payment
by cash, certified check or wire transfer of funds of the aggregate Warrant Price for that number of Warrant Shares then being
purchased, to the Company during normal business hours on any Business Day (as defined below) at the Company’s principal
executive offices (or such other office or agency of the Company as it may designate by notice to the Holder). The Warrant Shares
so purchased shall be deemed to be issued to the Holder or the Holder’s designee, as the record owner of such shares, as
of the close of business on the date on which this Warrant shall have been surrendered (or the date evidence of loss, theft or
destruction thereof and security or indemnity satisfactory to the Company has been provided to the Company), the Warrant Price
shall have been paid and the completed Exercise Agreement shall have been delivered. Certificates for the Warrant Shares so purchased
shall be delivered to the Holder within a reasonable time, not exceeding three (3) Business Days, after this Warrant shall have
been so exercised. The certificates so delivered shall be in such denominations as may be requested by the Holder and shall be
registered in the name of the Holder or such other name as shall be designated by the Holder, as specified in the Exercise Agreement.
If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense,
at the time of delivery of such certificates, deliver to the Holder a new Warrant representing the right to purchase the number
of shares with respect to which this Warrant shall not then have been exercised. As used herein, “Business Day”
means a day, other than a Saturday or Sunday, on which banks in the Commonwealth of Massachusetts are open for the general transaction
of business. Each exercise hereof shall constitute the re-affirmation by the Holder that the representations and warranties contained
in Section 5 of the Purchase Agreement are true and correct in all material respects with respect to the Holder as of the time
of such exercise.

 

 

 

    	 	1	 

     

    

 

(b)        Subject
to adjustment pursuant to Section 8, the variable Warrant Price for which the Warrant may be exercised shall be determined as follows:

 

(i) The Warrant Price
shall be $0.40 per share of Common Stock if the Company achieves both of the following performance criteria:

 

The Company achieves
at least $1.85 million of revenue in any one (1) quarter during the fiscal year ending June 30, 2017 (the “Revenue Criterion”)
as determined under U.S. Generally Accepted Accounting Principles (“GAAP”) and as shown by the Company’s audited
consolidated financial statements on Form 10-K and its quarterly financial statements on Form 10-Q periodically filed with the
U.S. Securities and Exchange Commission; and

 

The Company achieves
positive net income in any two (2) quarters (which quarters do not have to be successive) during the fiscal year ending June 30,
2017 (the “Income Criterion”) as determined under GAAP and as shown by the Company’s audited consolidated
financial statements on Form 10-K and its quarterly financial statements on Form 10-Q periodically filed with the U.S. Securities
and Exchange Commission.

 

The Revenue Criterion
and the Income Criterion shall not include revenue from extraordinary non-recurring events such as proceeds from strategic agreements
that are not tied directly to the delivery of goods and services.

 

(ii) The Warrant price
shall be $0.20 per share of Common Stock if the Company achieves either the Revenue Criterion or the Income Criterion..

 

(iii)       The
Warrant Price shall be $0.01 per share of Common Stock if the Company does not achieve either the Revenue Criterion or the Income
Criterion.

 

Section 4.       Compliance
with the Securities Act. Except as provided in the Purchase Agreement, the Company may cause the legend set forth on the first
page of this Warrant to be set forth on each Warrant, and a similar legend on any security issued or issuable upon exercise of
this Warrant, unless counsel for the Company is of the opinion as to any such security that such legend is unnecessary.

 

Section 5.       Payment
of Taxes. The Company will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable
upon the exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may
be payable in respect of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other
than that of the Holder in respect of which such shares are issued, and in such case, the Company shall not be required to issue
or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount
of such tax or has established to the Company’s reasonable satisfaction that such tax has been paid. The Holder shall be
responsible for income taxes due under federal, state or other law, if any such tax is due.

 

Section 6.       Mutilated
or Missing Warrants. In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue in exchange
and substitution of and upon surrender and cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant
lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost,
stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if requested by the Company.

 

Section 7.       Reservation
of Common Stock. The Company hereby represents and warrants that there have been reserved, and the Company shall at all applicable
times keep reserved until issued (if necessary) as contemplated by this Section 7, out of the authorized and unissued shares of
Common Stock, sufficient shares to provide for the exercise of the rights of purchase represented by this Warrant. The Company
agrees that all Warrant Shares issued upon due exercise of the Warrant in accordance with the terms hereof shall be, at the time
of delivery of the certificates for such Warrant Shares, duly authorized, validly issued, fully paid and non-assessable shares
of Common Stock of the Company.

 

 

 

    	 	2	 

     

    

 

Section 8.       Adjustments. Subject
and pursuant to the provisions of this Section 8, the Warrant Price and number of Warrant Shares subject to this Warrant shall
be subject to adjustment from time to time as set forth hereinafter.

 

(a)       If
the Company shall, at any time or from time to time while this Warrant is outstanding, pay a dividend or make a distribution on
its Common Stock in shares of Common Stock, subdivide its outstanding shares of Common Stock into a greater number of shares or
combine its outstanding shares of Common Stock into a smaller number of shares or issue by reclassification of its outstanding
shares of Common Stock any shares of its capital stock, then (i) the Warrant Price in effect immediately prior to the date on which
such change shall become effective shall be adjusted by multiplying such Warrant Price by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately prior to such change and the denominator of which shall be the
number of shares of Common Stock outstanding immediately after giving effect to such change and (ii) the number of Warrant Shares
purchasable upon exercise of this Warrant shall be adjusted by multiplying the number of Warrant Shares purchasable upon exercise
of this Warrant immediately prior to the date on which such change shall become effective by a fraction, the numerator of which
is shall be the Warrant Price in effect immediately prior to the date on which such change shall become effective and the denominator
of which shall be the Warrant Price in effect immediately after giving effect to such change, calculated in accordance with clause
(i) above. Such adjustments shall be made successively whenever any event listed above shall occur.

 

(b)       If
any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger of the Company with another
corporation in which the Company is not the survivor, or sale, transfer or other disposition of all or substantially all of the
Company’s assets to another corporation shall be effected, then, as a condition of such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition, lawful and adequate provision shall be made whereby each Holder shall
thereafter have the right to purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu
of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets
as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant
Shares immediately theretofore issuable upon exercise of the Warrant, had such reorganization, reclassification, consolidation,
merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made with respect
to the rights and interests of each Holder to the end that the provisions hereof (including, without limitation, provision for
adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company shall not effect any such consolidation,
merger, sale, transfer or other disposition unless it complies with the notice provisions of Section 12(b) hereof. For avoidance
of doubt, notice made pursuant to the immediately preceding sentence shall only be made with respect to public information. The
provisions of this paragraph (b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers,
sales, transfers or other dispositions. Notwithstanding the foregoing, (i) if the Company enters into an agreement to sell all
or substantially all of the assets of the Company; and (ii) the Warrant has not vested, then the Holder will not have any rights
described in this paragraph above, but this Warrant becomes exercisable and the Holder may exercise the Warrant at the Warrant
Price as determined on the date the Company enters into a binding sales agreement. If the Company, on that date, has met, or could
still meet the Revenue Criterion and/or the Income Criterion in the future if it were to continue as an independent company, then
the Revenue Criterion and/or the Income Criterion will be considered achieved for purposes of determining the Warrant Price according
to section 3b.

 

(c)       An
adjustment to the Warrant Price shall become effective immediately after the payment date in the case of each dividend or distribution
and immediately after the effective date of each other event which requires an adjustment.

 

(d)       In
the event that, as a result of an adjustment made pursuant to this Section 8, the Holder shall become entitled to receive any shares
of capital stock of the Company other than shares of Common Stock, the number of such other shares so receivable upon exercise
of this Warrant shall be subject thereafter to adjustment from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions with respect to the Warrant Shares contained in this Warrant.

 

 

 

    	 	3	 

     

    

 

Section 9.       Fractional Interest.
The Company shall not be required to issue fractions of Warrant Shares upon the exercise of this Warrant. If any fractional share
of Common Stock would, except for the provisions of the first sentence of this Section 9, be deliverable upon such exercise, the
Company, in lieu of delivering such fractional share, shall pay to the exercising Holder an amount in cash equal to the Market
Price of such fractional share of Common Stock on the date of exercise.

 

Section 10.       Vesting and Expiration
Date. The Expiration Date of this Warrant is as set forth on the first page of this Warrant. The Company may, in its sole discretion,
extend the expiration date of this Warrant. If such extension requires additional consideration or additional transactions, then
the Company undertakes to offer the same terms to all Holders. The Company may, in its sole discretion, accelerate the vesting
date of the Warrant. However, if the Company makes this election, the exercise price will be determined according to the criteria
in section 3b evaluated as of the accelerated vesting date and the Holder will have 14 calendar days after the accelerated vesting
date to exercise the Warrant or the Warrant will expire.

 

Section 11.       Benefits. Nothing
in this Warrant shall be construed to give any person, firm or corporation (other than the Company and the Holder) any legal or
equitable right, remedy or claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of the Company
and the Holder and its successors.

 

Section 12.       Dividends and Other
Distributions; Notices to Holder of certain Events.

 

(a)       Upon
the happening of any event requiring an adjustment of the Warrant Price, the Company shall promptly give written notice thereof
to the Holder at the address appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted number
of Warrant Shares resulting from such event and setting forth in reasonable detail the method of calculation and the facts upon
which such calculation is based. Failure to give such notice to the Holder or any defect therein shall not affect the legality
or validity of the subject adjustment.

 

(b) In case at any time
(i) there shall be any capital reorganization or reclassification of the capital stock of the Company, or a consolidation or merger
of the Company with, or a sale of all or substantially all of its assets to, another corporation; or there shall be any voluntary
or involuntary dissolution, liquidation or winding up of the Company; then, in any one or more of such cases, the Company shall
give, by first class mail, postage prepaid, addressed to each Holder at the address of such Holder as shown on the books of the
Company, (A) at least five (5) days’ prior written notice of the date on which the books of the Company shall close or a
record shall be taken for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, and (B) in the case of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, at least five (5) days’ prior written notice of the date when the same
shall take place. Such notice shall also specify the date on which the holders of Common Stock shall be entitled to exchange their
Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation or winding up, as the case may be.

 

Section 13.       Identity of Transfer
Agent. The Transfer Agent for the Common Stock is Computershare, located at 250 Royall Street, Canton, MA 02021.

 

Section 14.       Notices. Unless
otherwise provided, any notice required or permitted under this Warrant shall be given in writing and shall be deemed effectively
given as hereinafter described (a) if given by personal delivery, then such notice shall be deemed given upon such delivery, (b)
if given by telex or facsimile, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (c)
if given by mail, then such notice shall be deemed given upon the earlier of (i) receipt of such notice by the recipient or (ii)
three (3) days after such notice is deposited in first class mail, postage prepaid, and (d) if given by an internationally recognized
overnight air courier, then such notice shall be deemed given one (1) Business Day after delivery to such carrier. All notices
shall be addressed as follows: if to the Holder, at its address as set forth in the Company’s books and records and, if to
the Company, at the address as follows, or at such other address as the Holder or the Company may designate by ten days’
advance written notice to the other:

 

If to the Company:

 

Precision Optics Corporation,
Inc.

22 East Broadway

Gardner, Massachusetts
01440-3338

Attention: Joseph N.
Forkey,

President and Chief
Executive Officer

Fax: (978) 630-1487

 

 

 

    	 	4	 

     

    

 

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

 

Amy Trombly, Esq.

Trombly Business Law,
PC

1314 Main St., Suite
102

Louisville, CO 80027

Fax: (617) 243-0066

 

Section 15.       Registration Rights.
The Holder is entitled to the benefit of certain registration rights with respect to the shares of Common Stock issuable upon the
exercise of this Warrant as provided in the Registration Rights Agreement dated as of the same date as this Agreement (the “Registration
Rights Agreement”), among the Company and the initial holders of the Company Warrants.

 

Section 16.       Successors. All
the covenants and provisions hereof by or for the benefit of the Holder, including without limitation all rights under the Registration
Rights Agreement, shall bind and inure to the benefit of Holder’s respective successors and assigns.

 

Section 17.       Governing Law; Consent
to Jurisdiction; Waiver of Jury Trial. This Warrant shall be governed by, and construed in accordance with, the internal laws
of the State of New York applicable to agreements made and to be performed entirely within the State of New York. The Company and,
by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New
York located in New York County and the United States District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby. Service
of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the
same methods as are specified for the giving of notices under this Warrant. The Company and, by accepting this Warrant, the Holder,
each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue
in such court. The Company and, by accepting this Warrant, the Holder, each irrevocably waives any objection to the laying of venue
of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE
COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT
TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

Section 18.       No Rights as Stockholder.
Prior to the exercise of this Warrant, the Holder shall not have or exercise any rights as a stockholder of the Company by virtue
of its ownership of this Warrant.

 

Section 19.       Amendment; Waiver.
This Warrant is one of a series of Warrants of like tenor issued by the Company pursuant to the Purchase Agreement and initially
covering an aggregate of [___] shares of Common Stock (collectively, the “Company Warrants”). Any term of this
Warrant may be amended or waived (including the adjustment provisions included in Section 8 hereof) upon the written consent of
the Company and the holders of Company Warrants representing more than fifty (50) percent of the number of shares of Common Stock
then subject to all outstanding Company Warrants provided, however, that any such amendment or waiver must apply to all Company
Warrants.

 

Section 20.       Section Headings.
The section headings in this Warrant are for the convenience of the Company and the Holder and in no way alter, modify, amend,
limit or restrict the provisions hereof.

 

[Signature page follows.]

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed, as of the ___ day of November, 2016.

 

	 	PRECISION OPTICS CORPORATION, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Joseph N. Forkey
	 	Name:	Joseph N. Forkey
	 	Title:	President and Chief Executive Officer

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

APPENDIX A

 

PRECISION OPTICS CORPORATION, INC.

 

WARRANT EXERCISE FORM

 

 

To Precision Optics Corporation, Inc.:

 

 

PORTION OF WARRANT BEING EXERCISED:

 

	 	 	Entire Warrant ☐	 	 
	 	 	 	 	 
	 	 	_________ Warrant Shares	 	 

 

 

	ISSUE TO:	 
	 	(Name)
	 	 
	 	 
	 	 
	 	(Address, including Zip Code)
	 	 
	 	 
	 	 
	 	(Social Security or Tax Identification
Number)
	 	 
	 	 
	DELIVER TO:	 
	 	(Name)
	 	 
	 	 
	 	 
	 	(Address, including Zip Code)

 

 

In payment of the purchase price with respect
to this Warrant exercised, the undersigned hereby (check applicable box) ☐tenders payment of $___________
by (i) certified or bank cashier’s check payable to the order of the Company; or (ii) ☐a wire transfer of
such funds to an account designated by the Company.

 

If the number of Warrant Shares hereby
exercised is fewer than all the Warrant Shares represented by this Warrant, the undersigned requests that a new Warrant representing
the number of full Warrant Shares not exercised to be issued and delivered as set forth below:

 

 

	Name of Holder or Assignee:	 
	 	(Please Print)
	 	 
	 	 
	Address, including Zip Code:	 
	 	 
	 	 
	 	 

 

 

 

 

    	 	7	 

     

    

 

The Warrant Shares shall be delivered to the following DWAC
Account Number:

 

 

_______________________________

 

 

_______________________________

 

 

Name of Holder: ______________________________________________________________________

 

Signature of Authorized Signatory of Holder: _______________________________________________

 

Name of Authorized Signatory: __________________________________________________________

 

Title of Authorized Signatory: ___________________________________________________________

 

Date: _______________________________________________________________________________

 

 

 

 

 

 

 

 

 

 

    	 	8

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