SEC Contract Filing

Filing Date: 2021-10-08

Document Content:
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>precision_ex1006.htm
<DESCRIPTION>TERM NOTE
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit 10.6</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>TERM NOTE</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U></U>(Term Loan Maturity Date: (October 15, 2028)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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 <TD STYLE="padding-left: 10pt; text-indent: -10pt; width: 70%">$2,600,000</TD>
 <TD STYLE="padding-left: 10pt; text-indent: -10pt; width: 30%">October 4, 2021</TD></TR>
<TR STYLE="vertical-align: top">
 <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD>
 <TD STYLE="padding-left: 10pt; text-indent: -10pt">Gardner, MA</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 4.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">FOR VALUE RECEIVED, <B>PRECISION OPTICS CORPORATION,
INC.</B>, a Massachusetts corporation with its principal place of business at 22 East Broadway, Gardner, Massachusetts 01440 (the &ldquo;Borrower&rdquo;),
promises to pay to <B>MAIN STREET BANK,</B> a Massachusetts bank with its principal place of business at 81 Granger Boulevard, Marlborough,
Massachusetts 01752 (its successors, assigns and any future holder or holders of this instrument collectively, the &ldquo;Lender&rdquo;),
or order, at the Lender&rsquo;s place of business, the principal sum of <B>TWO MILLION SIX HUNDRED THOUSAND DOLLARS ($2,600,000)</B>,
in lawful money of the United States of America in immediately available funds, with interest, payable monthly in arrears, on the unpaid
balance hereof at the rate and in the manner hereafter provided.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Note is issued pursuant to that certain Loan
Agreement between the Borrower and the Lender of even date, as amended and/or restated from time to time (the &ldquo;Loan Agreement&rdquo;);
all of the terms and conditions of which are incorporated herein by reference. Capitalized terms used herein and not defined herein have
the meanings ascribed in the Loan Agreement. A single advance will be made under this Note in accordance with <U>Section 2.5</U> of the
Loan Agreement. This is <U>not</U> a revolving note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">An Event of Default under the Loan Agreement shall
also constitute an Event of Default hereunder. If an Event of Default occurs, the Lender may declare the unpaid principal balance and
accrued interest under this Note to be due immediately, without notice, presentment, demand, protest or other notice of dishonor of any
kind, all of which are expressly waived.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The outstanding principal balance of this Note
will bear interest, payable monthly in arrears, computed on the basis of the actual number of days elapsed over a year assumed to have
360 days, at an adjustable per annum rate equal to the aggregate of (a) the &ldquo;Prime Rate&rdquo; as published in the Wall Street Journal
(or any successor publication selected by the Lender), plus (b) one hundred fifty (150) basis points (collectively, the &ldquo;Note Rate&rdquo;);
provided, however, in no event will the Note Rate be less than four and three-quarters percent (4.75%) per annum. Each change in the Note
Rate applicable hereunder shall be effective upon any change in the &ldquo;Prime Rate&rdquo; as published in the Wall Street Journal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Commencing on November 15, 2021 and continuing
on the same day of each month thereafter, the Borrower agrees to pay principal in eighty-four equal monthly installments of $30,952.38
<U>plus</U> interest. The monthly installment payments are based on a seven (7) year amortization schedule. The entire indebtedness evidenced
by this Note, including but not limited to all accrued and unpaid interest, all principal and all late charges and fees, if not earlier
paid, shall be due and payable on October 15, 2028 (the &ldquo;Term Loan Maturity Date&rdquo;). To the extent that any payment is due
on a day which is not a Business Day, the due date will be the first following Business Day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Borrower may make partial or a full prepayment
of principal due hereunder without penalty at any time without penalty or premium. Any partial prepayment shall be applied against the
principal amount outstanding and shall not postpone the due date of any subsequent monthly installments or change the amount of such installments,
unless the Lender shall otherwise agree in writing.</P>

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