Document:

Exhibit 10.2

 

FIRST AMENDMENT TO OPTION AGREEMENT

 

THIS FIRST AMENDMENT
TO OPTION AGREEMENT is entered into by and between Clear Creek County Development Company LLC, a Colorado Limited Liability
Company, (hereinafter “Clear Creek” or “Purchaser”) and GOLD MOUNTAIN DEVELOPMENT LLC, LLC, AND NEVADA
GOLD & CASINOS, INC., (hereinafter collectively the “Seller” or “Nevada Gold”).

 

WHEREAS, on
or about April 8, 2013, Purchaser and Seller entered into that certain OPTION AGREEMENT (the “Agreement”) covering
the contemplated sale of approximately 260 acres, more or less, of vacant land located in Gilpin County, Colorado, owned by Seller
and more fully defined therein, and referred to therein as the Property, and,

 

WHEREAS, the
Parties hereto desire to amend said Option Agreement and replace it with the terms and conditions contained herein (“the
Amendment”),

 

NOW THEREFORE,
for good and valuable consideration, Purchaser and Seller agree to Amend the Option Agreement as follows:

  

1. The Property.
The Agreement included in the definition of “Property” a mining claim no longer owned by Nevada Gold, and specifically
described as the East Williams Lode Mining Claim, US Survey No. 588 (“East Williams 588”); this Amendment excludes
that claim from the definition of the Property, and going forward the Property shall mean all those claims contained on the legal
description Exhibit to the Agreement, less the East Williams 588 (hereinafter the “Property”).

 

2. Property Purchase.
Upon completion of the terms and conditions contained herein, Clear Creek will purchase the Property as set forth below.

 

3.Purchase Price.
The purchase price for the Property shall be Seven Hundred and Fifty Thousand Dollars (US $750,000.00).

 

4. Initial Payment.
On or before the Closing Date (defined below), Clear Creek will pay Nevada Gold Seventy-Five Thousand Dollars (US $75,000.00) (the
“initial payment”), which sum will be applied against the purchase price.

 

5. Remaining
Payments. After the initial payment is made, Seller will retain and carry-back a Promissory Note, and first lien Deed-of-Trust
against the Property (the “carry-back documents”), for the remaining amount due to the Seller, in a form satisfactory
to Seller and Purchaser, and containing standard commercial terms, including but not limited to strict due-on-sale terms, as well
as no pre-payment penalty(ies) for the Purchaser, and also the following additional terms:

 

a. Monthly Payment.
Purchaser will pay Seller Two Thousand Eight Hundred and Twelve Dollars and Fifty Cents ($2,812.50) each month, due on the last
day of each month, with the first payment being due on April 30, 2016, which monthly payments will represent 5% interest-only payments
on the Seller carry-back Promissory Note, and Deed-of-Trust, in the amount of Six Hundred and Seventy-Five Thousand Dollars ($675,000.00).

 

b. Balloon Payment.
All outstanding amounts not paid against the Promissory Note and Deed of Trust, will be due in full, on or before April 30, 2019.

 

6.Title Insurance.
No title insurance shall be required or given, and Purchaser will take title to the Property as-is, with no warranties from
Seller.

 

     

     

    

 

7. Property
Taxes: Purchaser remains responsible for payment of all property taxes accruing during the term of the original Option Agreement
and after the sale, and no proration of taxes shall be made at closing, but all shall be paid by Purchaser.

 

8.Title to Property.
Subject to payment as provided herein, and upon Seller’s satisfaction with, and approval of the carry-back documents,
Nevada Gold shall execute and deliver a Quit-Claim deed transferring the Property to the Purchaser, on or before the Closing Date.

 

9.Closing Date.
The Closing Date shall be April 22, 2016, unless otherwise mutually agreed to by the Parties hereto.

 

a. Settlement Statements.
At closing, Nevada Gold and Clear Creek shall execute the documents necessary to complete the transaction and those documents will
include a Statement of Settlement satisfactory to and approved by both Parties.

 

b. Transaction Costs.
Clear Creek shall pay the cost of recording the deed, the documentary fee, and the cost of recording the deed of trust. Each party
shall be responsible for payment of its own attorneys’ and brokers’ fees.

 

10. Nevada Gold’s
Use of the Property Prior to Closing Date. From and after the Effective Date of this Agreement, Nevada Gold shall not grant
or convey any easement, lease, license, permit, lien or any other legal or beneficial interest in or to the Property without the
prior written consent of Clear Creek, nor shall Nevada Gold knowingly violate, or allow the violation of, any law, ordinance, rule
or regulation affecting the Property. Nevada Gold shall do or cause to be done all things reasonably within its control to preserve
intact and unimpaired any and all easements, grants, appurtenances, privileges and licenses in favor of or constituting any portion
of the Property to the extent known by Nevada Gold.

 

11.Condemnation.
If notice is received by Nevada Gold prior to Closing that any portion of the Property shall be taken in condemnation or pursuant
to the right of eminent domain, or if any such proceeding (judicial, administrative or otherwise) is commenced after the Effective
Date hereof, any award or proceeds received by Nevada Gold from such condemnation or right of eminent domain proceeding shall be
applied against, and reduce, the Purchase Price hereunder. If such proceeding has not been concluded as of the date of Closing,
there shall be no reductions in the Purchase Price and all amounts thereafter awarded relating to the Property shall belong to
Clear Creek

 

12.Nevada Gold’s
Warranties/Property Condition. Nevada Gold hereby represents, warrants, and agrees that on the date of Closing:

 

a.Status and Authority.
Nevada Gold has the legal power and authority to own, sell, convey and transfer the Property, and Mike Shaunnessy has the legal
and corporate power and authority to enter into this Amendment and to execute a quit-claim deed on behalf of Seller for the benefit
of Purchaser to transfer the Property, and doing so shall not result in a breach of, or constitute a default under, any indenture,
loan or credit agreement, mortgage, deed of trust or other agreement to which Nevada Gold is a party or by which Nevada Gold or
the Property may be bound. Nevada Gold is not a “foreign person” within the meaning of Section 1445, et seq.,
of the Internal Revenue Code of 1986, as amended, or any regulations promulgated thereunder.

 

13.Brokers.
If any individual or entity shall assert a claim to a finder's fee or commission as a broker or a finder for the transfer of the
Property, then the party who is alleged to have retained such individual or entity shall defend, indemnify and hold harmless the
other party from and against any such claim and all costs, expenses, liabilities and damages incurred in connection with such claim
or any action or proceeding brought thereon.

 

    2 

     

    

 

14.Miscellaneous.

 

a.Assignment.
Clear Creek may assign the rights and obligations of this Agreement to RSM Partners LLC, which is an entity owned by Clear Creek
and its financial partner Maplewood Advisors CO, LLC. Any other assignment will require the consent of Nevada Gold.

 

b.Amendment.
No amendment or modification of this Agreement shall be valid or binding unless reduced to writing and executed by the parties
hereto or their assigns.

 

c.Notices.
All notices required herein shall be in writing and delivered to the parties hereto, or mailed to the parties hereto by personal
delivery, recognized overnight courier or delivery services, or registered or certified mail, postage prepaid, return receipt requested,
at the addresses set forth below:

 

		If to Clear Creek:	Clear Creek County Development Company LLC

ATTN: Sean
W. Doyle

950 S. Cherry
Street, #1220

Denver, Colorado
80246

Phone: (303)
837-9171

Fax: (303)
379-2048

Email: sean@fitallc.com

 

		If to Nevada Gold:	Nevada Gold & Casinos, Inc.

ATTN:
Michael P. Shaunnessy, CEO

133 E.
Warm Springs Road, Suite 102

Las Vegas, Nevada 89119

Phone:
(720) 681-1000

Email:
mshaunnessy@nevadagold.com

  

Any such notice shall
be deemed effectively given and received at the time of delivery, if delivered personally or by an express mail service for which
a delivery receipt has been obtained, or five (5) days after the same is deposited in the United States mail, if mailed, provided
the sending party has a return receipt. Either party may designate a different address for the purpose of this Section by notice
given in accordance herewith.

 

d.Adequate Consideration.
Both parties agree that the covenants and promises contained herein are good and sufficient consideration for their respective
obligations required hereunder.

 

e.Further Assurances.
Each party hereto shall from time to time execute and deliver such further instruments as the other party or its counsel may reasonably
request to effectuate the intent of this Agreement.

 

f.Controlling
Law. The parties hereto expressly agree that the terms and conditions hereof, and subsequent performance hereunder, shall be
construed and controlled by the laws of the State of Colorado.

 

    3 

     

    

 

g.Legal Expenses.
In the event that either party takes legal action against the other in order to enforce the terms of this Agreement, the party
in whose favor final unappealable judgment is entered shall be entitled to recover from the other party any legal expenses incurred,
including reasonable costs and attorneys’ fees to be fixed by the court which shall render such judgment.

 

h.Interpretation.
Section headings used in this Agreement are for convenience of reference only and shall not affect the construction of any provision
of this Agreement. As used herein, the singular shall include the plural, and vice versa; and any gender shall be deemed to include
the masculine, feminine and neuter gender. Should any term or condition hereof be deemed void or unenforceable, the remaining provisions
of this Agreement shall remain in full force and effect. Each and every provision of this Agreement has been independently, separately
and freely negotiated by the parties as if this Agreement were drafted by all parties hereto. The parties, therefore, waive any
statutory or common law presumption which would serve to have this document construed in favor of, or against, either party.

 

i.Binding Effect.
The provisions hereof shall be binding upon and inure to the benefit of the heirs, successors, personal representatives and assigns
of the parties.

 

j.Waiver.
No exercise or waiver, in whole or in part, of any right or remedy provided for in this Agreement shall operate as a waiver of
any other right or remedy, except as otherwise provided herein. No delay on the part of any party in the exercise of any right
or remedy shall operate as a waiver thereof.

 

k.Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all together shall constitute
one and the same Agreement.

 

l.Facsimile Signatures.
Facsimile signatures hereafter shall be considered legal and binding with regard to this Agreement, including any written notices,
addenda and amendments.

 

m.Entire Agreement.
This Agreement and the Exhibits attached hereto embody the entire Agreement between the parties hereto and supersede any and all
prior agreements and understandings, written or oral, formal or informal.

 

n.Time of the
Essence. Time is of the essence of this Agreement, and Clear Creek and Nevada Gold hereby agree to perform each and every obligation
hereunder in a prompt and timely manner; provided, however, that if the date of the performance of any action or the giving of
any notice which is required hereunder, occurs on a Saturday, Sunday or legal holiday, the date for performance or giving of notice
shall be the next succeeding business day.

 

o.Recitals.
The Recitals set forth above are hereby made a binding and integral part of this Agreement.

 

15.Effective
Date of Agreement. The “Effective Date” of this Agreement referenced throughout this Agreement shall be the latest
date on which either of the parties has executed this Agreement; and the latest party executing this Agreement shall notify the
other of such execution within 24 hours thereof, either by written or oral communication. Clear Creek may not record in the County
records this Agreement or any other document related to the Option Agreement, except that simultaneously with closing and/or after
closing Clear Creek may record that which is necessary to complete the transaction.

 

16.As-Is Condition:
THE PARTIES HEREBY ACKNOWLEDGE AND AGREE AS FOLLOWS: (A) CLEAR CREEK’S PRINCIPAL, SEAN W. DOYLE, IS A SOPHISTICATED PURCHASER
WHO IS FAMILIAR WITH THIS TYPE OF PROPERTY; (B) EXCEPT AS MAY BE SPECIFICALLY SET FORTH IN THIS AGREEMENT, NEITHER NEVADA GOLD
NOR ANY OF ITS AGENTS, REPRESENTATIVES, OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, OR EMPLOYEES HAS MADE OR WILL MAKE ANY REPRESENTATIONS
OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY; AND (C) THE PROPERTY
IS BEING SOLD TO CLEAR CREEK IN ITS PRESENT "AS IS" CONDITION SUBJECT TO THE REPRESENTATIONS, WARRANTIES AND COVENANTS
OF NEVADA GOLD CONTAINED HEREIN. SUBJECT TO THE TERMS HEREOF, CLEAR CREEK WILL BE AFFORDED THE OPPORTUNITY TO MAKE ANY AND ALL
INSPECTIONS OF THE PROPERTY AND SUCH RELATED MATTERS AS CLEAR CREEK MAY REASONABLY DESIRE AND, ACCORDINGLY, CLEAR CREEK WILL RELY
SOLELY ON ITS OWN DUE DILIGENCE AND INVESTIGATIONS IN PURCHASING THE PROPERTY. IN THE EVENT OF ANY CONFLICT WITH ANY OTHER SECTION
OR PROVISION IN THIS AGREEMENT THIS PROVISION WILL SUPERSEDE ANY CONFLICTING OR INCONSISTENT PROVISION.

 

17. Amendment
Controls. In the case of a conflict between this Amendment, and the original Option Agreement, this Amendment shall control.

 

    4 

     

    

 

IN WITNESS WHEREOF, the parties
have executed this First Amendment to Option Agreement on the dates specified below.

 

	 	CLEAR CREEK COUNTY DEVELOPMENT COMPANY LLC
	 	a Colorado Limited Liability Company
	 	 	 
	 	By: 	 
	 	Name:  	                             
	 	Title: 	 
	 	Date: 	 
	 	 	 
	 	 	 
	 	GOLD MOUNTAIN DEVELOPMENT, LLC 
	 	And NEVADA GOLD & CASINOS, INC.
	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	Date:	 

 

    5Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION
AGREEMENT (this “Agreement”), dated as of April [●], 2016, is by and between MICROPHASE
CORPORATION, a corporation incorporated under the laws of the State of Connecticut and located at 100 Trap Falls Road Extension,
Shelton, CT 06484 (the “Company”), and [●], a [●] in the State of [●] located at [●]
(the “Subscriber”).

 

WHEREAS, the
Company and Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded
by the provisions of Section 4(2) and/or Regulation D (“Regulation D”) promulgated by the United States Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities
Act”);

 

WHEREAS, the
parties hereto desire that, upon the terms and subject to the conditions contained herein and upon the date hereof (the “Funding
Date”), the Company shall issue to the Subscriber (1) One Hundred Twenty-five Thousand (125,000) shares (the “Shares”)
of the Company’s common stock, no par value per share (the “Common Stock”), and (2) a warrant to purchase
One Hundred Twenty-five Thousand (125,000) shares of Common Stock (the “Warrant”) (the Shares, together with
the Common Stock to be issued upon conversion of the Warrant shall hereinafter, together, be referred to as the “Conversion
Shares” and the Shares and Warrant shall be referred to collectively herein as the “Securities”);
and

 

WHEREAS, the
Subscriber understands that the Company is proposing to enter into an underwriting agreement providing for the purchase by certain
underwriters of shares of Common Stock and that such underwriters propose to reoffer such shares of Common Stock to the public
(the “Offering”).

 

NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and Subscriber hereby agree
as follows:

 

1.           Purchase
and Sale. Upon the terms and subject to the conditions set forth in this Agreement and in consideration of Two Hundred Fifty
Thousand United States Dollars (US$250,000) (the “Purchase Price”) delivered by the Subscriber to the Company
on the Funding Date, the Company hereby agrees to issue the Shares and the Warrant to the Subscriber on the Funding Date. The Company
agrees to issue and deliver the Securities to the Subscriber free of all liens, pledges, mortgages, security interests, charges,
restrictions, adverse claims or other encumbrances of any kind or nature whatsoever (“Encumbrances”), and Subscriber
hereby agrees to accept the Securities free of all Encumbrances.

 

2.           Subscriber
Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company that:

 

(a)           Standing
of Subscriber. Subscriber has the legal capacity and power to enter into this Agreement;

 

(b)           Authorization
and Power. Subscriber has the requisite power and authority to enter into and perform this Agreement and to deliver
the Purchase Price on the Funding Date and accept the Warrant. The execution, delivery and performance of this Agreement by the
Subscriber, and the consummation by the Subscriber of the transactions contemplated hereby, have been duly authorized by all necessary
action, and no further consent or authorization of Subscriber is required. This Agreement has been duly authorized, executed and
delivered by the Subscriber and constitutes, or shall constitute, when executed and delivered, a valid and binding obligation of
the Subscriber, enforceable against Subscriber in accordance with the terms hereof;

 

     

     

    

 

(c)           Information
on Subscriber. Subscriber is, and reasonably believes he will be at the time of the exercise of the Warrant, an “accredited
investor,” as such term is defined in Regulation D promulgated by the Commission under the Securities Act, is experienced
in investments and business matters, has made investments of a speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and, with its representatives, has such knowledge and experience in
financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company
to evaluate the merits and risks of, and to make an informed investment decision with respect to, the proposed purchase, which
the Subscriber hereby agrees represents a speculative investment. The Subscriber has the authority and is duly and legally qualified
to purchase and own the Securities. The Subscriber is able to bear the risk of such investment for an indefinite period and to
afford a complete loss thereof;

 

(d)           Purchase
of Securities. The Subscriber will purchase the Securities
for its own account for investment and not with a view toward, or for resale in connection with, the public sale or any distribution
thereof in violation of the Securities Act or any applicable state securities law, and has no direct or indirect arrangement or
understandings with any other person or entity to distribute or regarding the distribution of such Securities;

 

(e)           Compliance
with Securities Act. The Subscriber understands and agrees that the Securities have not been registered under the Securities
Act or any applicable state securities laws by reason of their issuance in a transaction that does not require registration under
the Securities Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that
such Securities must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable
state securities laws or is exempt from such registration;

 

(f)           Share
Legend. The Conversion Shares shall bear the following or similar legend:

 

“THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	 	2	 

     

    

 

(g)           Warrant
Legend. The Warrant shall bear the following or similar legend

 

“NEITHER THE ISSUANCE NOR SALE
OF THE SECURITIES REPRESENTED BY THIS DOCUMENT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY
THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO
RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

(h)           Communication
of Offer. Subscriber has a preexisting personal or business relationship with the Company or one or more of its directors,
officers, advisors or control persons or the Company’s placement agent, and the offer to issue
the Securities was directly communicated to Subscriber by the Company and/or its placement agent. At no time was Subscriber presented
with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general
advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated
offer;

 

(i)           No
Governmental Endorsement. Subscriber understands that no United States federal or state agency or any other governmental or
state agency has passed on or made recommendations or endorsement of the Securities, or the suitability of the investment in the
Securities, nor have such authorities passed upon or endorsed the merits of the offering of the Securities; and

 

(j)           Receipt
of Information. Subscriber believes it has received all the information it considers necessary or appropriate for deciding
whether to invest and to accept the Securities. Subscriber further represents that through its representatives it has had an opportunity
to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities and
the business, properties and financial condition of the Company and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any
information furnished to it or to which it had access.

 

    	 	3	 

     

    

 

3.           Company
Representations and Warranties. The Company represents and warrants to, and agrees with, Subscriber that:

 

(a)           Due
Incorporation. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation;

 

(b)           Authority;
Enforceability. The Warrant has been duly authorized, executed and delivered by the Company and is the valid and binding agreements
of the Company, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally, or principles of equity.
The Company has full corporate power and authority necessary to enter into and deliver the Warrant and to perform its obligations
thereunder;

 

(c)           Additional
Issuances. All of the Conversion Shares to be issued pursuant to the terms hereof will be, duly authorized and validly issued,
fully paid and non-assessable and are not (and will not be) subject to preemptive or similar rights affecting such securities;

 

(d)           Consents.
No consent, approval, authorization or order of any court, governmental agency or body having jurisdiction
over the Company or of any other person is required for the execution by the Company of the Warrant and compliance and performance
by the Company of its obligations hereunder and thereunder, including, without limitation, the issuance of the Securities;

 

(e)           No
Violation or Conflict. Neither the issuance of the Securities nor the performance of the Company’s obligations under
the Warrant will:

 

(i)           violate,
conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time
or both would be reasonably likely to constitute a default) under (a) the charter or bylaws of the Company or (b) any decree, judgment,
order or determination applicable to the Company of any court, governmental agency or body having jurisdiction over the Company
or over the properties or assets of the Company; or

 

(ii)           result
in the creation or imposition of any lien, charge or encumbrance upon the securities except in favor of Subscriber as described
herein;

 

(f)           The
Conversion Shares. Upon issuance, the Conversion Shares:

 

(i)           shall
be free and clear of any security interests, liens, claims or other Encumbrances, subject only to restrictions upon transfer under
the Securities Act and any applicable state securities laws;

 

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(ii)           shall
have been duly and validly issued, fully paid and non-assessable; and

 

(iii)           will
not subject the holders thereof to personal liability by reason of being such holders;

 

(g)           No
General Solicitation. Neither the Company, nor any of its affiliates, nor any person or entity acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities; and

 

(h)           Investment
Company. The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.

 

4.           Lock-up
Agreement. Subscriber agrees that it will execute and deliver, concurrently with the execution and delivery hereof, the lock-up
agreement in the form attached hereto as Exhibit A, and the Subscriber shall be bound by the terms of such lock-up agreement
with respect to the Conversion Shares, including restrictions prohibiting the Subscriber from engaging in certain transactions
with respect to the Conversion Shares for a period commencing on the date hereof and ending on the 90th day after the date of the
prospectus relating to the Offering (such 90-day period, the “Lock-Up Period”), whether or not the Subscriber
has executed such an agreement.

 

5.           Registration
Rights. The Company hereby grants the following registration rights to holders of the Conversion Shares.

 

(a)           Registration
Statement. The Company shall file with the Commission, as soon as practicable following the completion of the Offering, a registration
statement on an appropriate form (the “Registration Statement”) covering the resale of the Conversion Shares
and shall use its commercially reasonable best efforts to cause the Registration Statement to be declared effective as soon as
practicable.

 

(b)           Registration
Procedures. In connection with the Registration Statement, the Company will:

 

(i)           prepare
and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective with respect to the Subscriber until such time as all
of the Conversion Shares owned by the Subscriber may be resold without restriction under the Securities Act; and

 

(ii)           immediately
notify the Subscriber when the prospectus included in the Registration Statement is required to be delivered under the Securities
Act, of the happening of any event of which the Company has knowledge as a result of which the prospectus contained in such Registration
Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. If the Company
notifies the Subscriber to suspend the use of any prospectus until the requisite changes to such prospectus have been made, then
the Subscriber shall suspend use of such prospectus. In such event, the Company will use its commercially reasonable efforts to
update such prospectus as promptly as is practicable.

 

    	 	5	 

     

    

 

(c)           Provision
of Documents etc. In connection with the Registration Statement, the Subscriber will furnish to the Company in writing such
information and representation letters with respect to itself and the proposed distribution by it as reasonably shall be necessary
in order to assure compliance with federal and applicable state securities laws. The Company may require the Subscriber, upon five
business days’ notice, to furnish to the Company a certified statement as to, among other things, the number of Conversion
Shares and the number of other shares of the Company’s Common Stock beneficially owned by the Subscriber and the person that
has voting and dispositive control over such shares. The Subscriber covenants and agrees that it will comply with the prospectus
delivery requirements of the Securities Act, if applicable, in connection with sales of Conversion Shares pursuant to the Registration
Statement.

 

(d)           Expenses.
All expenses incurred by the Company in complying with this section, including, without limitation, all registration and filing
fees, printing expenses, fees and disbursements of counsel and independent public accountants for the Company, fees of transfer
agents and registrars are called “Registration Expenses.” All underwriting discounts and selling commissions
applicable to the sale of the Conversion Shares, including any fees and disbursements of any counsel to the Subscriber, are called
“Selling Expenses.” The Company will pay all Registration Expenses in connection with the Registration Statement. Selling
Expenses in connection with the Registration Statement shall be borne by the Subscriber.

 

(e)           Indemnification
and Contribution.

 

(i)           The
Company will, to the extent permitted by law, indemnify and hold harmless the Subscriber, each officer of the Subscriber, if applicable,
each director of the Subscriber, if applicable, and each other person, if any, who controls the Subscriber within the meaning of
the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Subscriber or such other
person (a “controlling person”) may become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) (“Claims”) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in the Registration Statement at the time of its effectiveness,
any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances when made, and will, subject to the limitations herein, reimburse
the Subscriber and each controlling person for any legal or other expenses reasonably incurred by them in connection with investigating
or defending any such Claim; provided, however, that the Company shall not be liable to the Subscriber to the extent that any Claim
arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in conformity
with information furnished by the Subscriber or any such controlling person in writing specifically for use in the Registration
Statement or related prospectus, as amended or supplemented.

 

    	 	6	 

     

    

 

(ii)           The
Subscriber will, to the extent permitted by law, indemnify and hold harmless the Company, and each person, if any, who controls
the Company within the meaning of the Securities Act, each underwriter, each officer of the Company who signs the Registration
Statement and each director of the Company against all Claims to which the Company or such officer, director, underwriter or controlling
person may become subject under the Securities Act or otherwise, insofar as such Claims arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Registration Statement, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof, or the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, underwriter and 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 Subscriber will be liable hereunder in any such case if and only to the extent that any such Claim arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with
information pertaining to the Subscriber, as such, furnished in writing to the Company by the Subscriber specifically for use in
the Registration Statement or related prospectus, as amended or supplemented.

 

(iii)           Promptly
after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified
party other than under this section and shall only relieve it from any liability which it may have to such indemnified party under
this section except and only if and to the extent the indemnifying party is materially prejudiced by such omission. In case any
such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense
thereof with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified
party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified
party under this section for any legal expenses subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided, however, that, if the defendants
in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be reasonable defenses available to it which are different from or additional to those available to the
indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the
indemnifying party, the indemnified parties, as a group, shall have the right to select one separate counsel and to assume such
legal defenses and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred. The indemnifying
party shall not be liable for any settlement of any such proceeding affected without its written consent, which consent shall not
be unreasonably withheld.

 

    	 	7	 

     

    

 

(iv)           In
order to provide for just and equitable contribution in the event of joint liability under the Securities Act in any case in which
either (i) the Subscriber, or any controlling person of a Subscriber, makes a claim for indemnification pursuant to this section
but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration
of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding
the fact that this section provides for indemnification in such case, or (ii) contribution under the Securities Act may be required
on the part of the Subscriber or controlling person of the Subscriber in circumstances for which indemnification is not provided
under this section, then, and in each such case, the Company and the Subscriber will contribute to the aggregate losses, claims,
damages or liabilities to which they may be subject (after contribution from others) in a manner that reflects, as near as practicable,
the economic effect of the foregoing provisions of this section. Notwithstanding the foregoing, no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 10(f) of the Securities Act) will be entitled to contribution from any person
or entity who was not guilty of such fraudulent misrepresentation.

 

(f)           Delivery
of Unlegended Shares.

 

(i)           Within
three business days (such business day, the “Unlegended Shares Delivery Date”) after the business day on which
the Company has received (i) a notice that Conversion Shares have been sold either pursuant to, and in compliance with, the Registration
Statement or Rule 144 under the Securities Act and (ii) in the case of sales under Rule 144, customary representation letters of
the Subscriber and Subscriber’s broker regarding compliance with the requirements of Rule 144, the Company at its expense,
(A) shall deliver the Conversion Shares so sold without any restrictive legends relating to the Securities Act (the “Unlegended
Shares”); and (B) shall cause the transmission of the certificates representing the Unlegended Shares together with a
legended certificate representing the balance of the unsold Conversion Shares, if any, to the Subscriber at the address specified
in the notice of sale, via express courier, by electronic transfer or otherwise on or before the Unlegended Shares Delivery Date.
Transfer fees shall be the responsibility of the Subscriber.

 

    	 	8	 

     

    

 

(ii)           In
lieu of delivering physical certificates representing the Unlegended Shares, if the Company’s transfer agent is participating
in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, upon request of the Subscriber,
so long as the certificates therefor do not bear a legend and the Subscriber is not obligated to return such certificate for the
placement of a legend thereon, the Company shall use its best efforts to cause its transfer agent to electronically transmit the
Unlegended Shares by crediting the account of Subscriber’s broker with DTC through its Deposit/Withdrawal at Custodian system.
Such delivery must be made on or before the Unlegended Shares Delivery Date but is subject to the cooperation of the Subscriber’s
broker (the so-called DTC participant).

 

(iii)           The
Subscriber agrees that the removal of the restrictive legend from certificates representing the Conversion Shares as set forth
in this section is predicated upon the Company’s reliance that the Subscriber will sell any Conversion Shares pursuant to
either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption
therefrom.

 

6.           Broker’s
Commission/Finder’s Fee. Each party hereto represents to the other that there are no parties entitled to receive
fees, commissions, finder’s fees, due diligence fees or similar payments in connection with the consummation of the transactions
contemplated hereby, except for Palladium Capital Advisors, LLC (“Palladium”), to whom the Company shall pay
broker’s commissions in the form of: (i) cash, in the amount equal to 10% of the Purchase Price and (ii) stock, in the amount
of 25,000 shares of Common Stock. Each party hereto agrees to indemnify the other against and hold the other harmless from any
and all liabilities to any persons, other than Palladium, claiming brokerage commissions or similar fees on account of services
purported to have been rendered on behalf of the indemnifying party in connection with this Agreement or the transactions contemplated
hereby and arising out of the indemnifying party’s actions.

 

7.           Covenants
Regarding Indemnification. Each party hereto agrees to indemnify,
hold harmless, reimburse and defend the other party and the other party’s officers, directors, agents, counsel, affiliates,
members, managers, control persons, and principal shareholders, as applicable, against any claim, cost, expense, liability, obligation,
loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the indemnified party or any such person
which results, arises out of or is based upon (i) any breach of any representation or warranty by the indemnifying party in this
Agreement or (ii) any breach or default in performance by the indemnifying party of any covenant or undertaking to be performed
by the indemnifying party.

 

8.           Miscellaneous.

 

(a)           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 or facsimile, addressed as set forth in the preamble paragraph hereto 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 at the address designated in the preamble paragraph hereto (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.

 

    	 	9	 

     

    

 

(b)           Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof
and may be amended only by a writing executed by both parties hereto. Neither the Company nor Subscriber has relied on any representations
not contained or referred to in this Agreement and the documents delivered herewith.

 

(c)           Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the
same force and effect as if such signature page were an original thereof.

 

(d)           Law
Governing this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York without regard to principles of conflicts of laws. Any action brought by either party hereto against the other concerning
the transactions contemplated by this Agreement shall be brought only in the state courts of the State of New York or in the federal
courts located in the State of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and
venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY. 

 

(e)           Severability.
In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law.

 

    	 	10	 

     

    

 

(f)           Counsel;
Ambiguities. Each party and its counsel have participated fully in the review and revision of this Agreement, the Warrant and
any documents executed in connection therewith. The parties understand and agree that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not apply in interpreting this Agreement, the Warrant and any documents
executed in connection therewith. The language in this Agreement, the Warrant and any documents executed in connection therewith
shall be interpreted as to its fair meaning and not strictly for or against any party.

 

(g)           Captions.
The captions of the various sections and paragraphs of this Agreement have been inserted only for the purposes of convenience;
such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any
of the provisions of this Agreement.

 

[signature page follows]

    	 	11	 

     

    

 

MICROPHASE CORPORATION

Signature Page

 

The Subscriber hereby
executes this Agreement. By executing this signature page, the Subscriber attests and swears, under the pains and penalties of
perjury, that (initial all that apply) the Subscriber is:

 

 

	 

 

        (initials)
	 	a corporation, a business trust, or a partnership, not formed for the specific purpose of acquiring the Shares and the Warrant, with total assets in excess of $5,000,000.
	 	 	 
	 

 

        (initials)
	 	a natural person whose net worth, or joint net worth with spouse, exceeds $1,000,000; net worth means the excess of: (a) the Subscriber’s total assets (excluding the estimated fair market value of the Subscriber’s primary residence) over (b) the Subscriber’s total liabilities (excluding indebtedness secured by my primary residence up to the fair market value of such residence, but including (i) any indebtedness secured by my primary residence in excess of the residence’s fair market value and (ii) any indebtedness (or increase in pre-existing indebtedness) secured by such residence incurred within 60 days of the purchase date of the Securities other than as a result of the acquisition of such residence).
	 	 	 
	 

 

        (initials)
	 	a natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with his or her spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year.
	 	 	 
	 

 

        (initials)
	 	a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities.
	 	 	 
	 

 

        (initials)

         
	 	an entity in which all of the equity owners fall within one of the categories set forth above.

 

	$	 	 
	
        Aggregate
        purchase price for Shares and Warrant é

         
	 	Subscriber’s name é
	 	 	 
	Number of Shares being purchased (together with a warrant to purchase shares equal to such number of Shares)	 	 
	
         

         
	 	Subscriber’s signature é
	
        Warrant
        exercise price per shareé

         
	 	Title of signatory, if Subscriber is an entity é
	
        ACCEPTED AND AGREED:

         
	 	 
	
        MICROPHASE CORPORATION

         
	 	Address of the Subscriber ê
	 	 	 
	By:  ________________________	 	 
	
        Name:

        Title:
	 	 
	 	 	 
	 	 	Email address:  ___________________________
	Date:  ______________________	 	 
	 	 	Fax number:     ___________________________
	 	 
	 	    	Social Security/Tax ID no.: _________________

 

 

     

     

    

 

EXHIBIT A

 

 

LOCK-UP AGREEMENT

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