SEC Contract Filing

Filing Date: 2023-09-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>5
<FILENAME>ex_570050.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<p style="margin: 0pt; text-align: right; font-size: 10pt; font-family: &quot;Times New Roman&quot;;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.1</b></font></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><u>SUBSCRIPTION AGREEMENT</u></b></p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>THIS SUBSCRIPTION AGREEMENT</b> (this &#8220;<b>Agreement</b>&#8221;), dated as of September ____, 2023 by and between Tel-Instrument Electronics Corp., a New Jersey corporation with its headquarters located at One Branca Road, East Rutherford, NJ 07073 (the &#8220;<b>Company</b>&#8221;), and the subscriber identified on the signature page hereto (the &#8220;<b>Subscriber</b>&#8221;).</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>WHEREAS</b>, 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(a)(2) and/or Regulation D (&#8220;<b>Regulation D</b>&#8221;) promulgated by the United States Securities and Exchange Commission (the &#8220;<b>Commission</b>&#8221;) under the Securities Act of 1933, as amended (the &#8220;<b>Securities Act</b>&#8221;);</p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>WHEREAS</b>, on or about October 2, 2018, the Company filed with the State of New Jersey a certificate of designations, rights and preferences for its Series B Convertible Preferred Stock (as amended, the &#8220;<b>Series B Certificate of Designations</b>&#8221;), attached hereto as <u>Exhibit A</u>; and</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>WHEREAS</b>, the parties hereto desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Subscriber, and Subscriber shall purchase, in the aggregate, that number of shares of Series B Convertible Preferred Shares, par value $0.10 per share, of the Company (the &#8220;<b>Series B Preferred Stock</b>&#8221;) as is set forth on the signature page hereto (the &#8220;<b>Shares</b>&#8221;) at an aggregate purchase price (the &#8220;<b>Purchase Price</b>&#8221;) as is set forth on the signature page hereto (the &#8220;<b>Securities</b>&#8221;).</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>NOW, THEREFORE</b>, in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and Subscriber hereby agree as follows:</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;"><b>1. Purchase and Sale.</b></p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 27pt;">(a) Upon the terms and subject to the conditions set forth in this Agreement, the Company hereby agrees to issue, sell, assign, transfer and deliver to Subscriber, and Subscriber hereby agrees to purchase and accept delivery from the Company, the Shares free of all liens, pledges, mortgages, security interests, charges, restrictions, adverse claims, conditions, equitable interests, options, rights of first refusal or other encumbrances of any kind or nature whatsoever, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership (&#8220;<b>Encumbrances</b>&#8221;), for the consideration specified herein (such consideration, on a per share basis, the &#8220;<b>Share Price</b>&#8221;). This will be accomplished by, upon execution of this Agreement, the Subscriber delivering to the Company the Purchase Price (the &#8220;<b>Consideration</b>&#8221;); and upon receipt by the Company of the Consideration, the Company issuing to the Subscriber the shares of Series B Preferred Stock comprising the Securities.</p>

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