Document:

Document

Exhibit 10.28

MOHEGAN SUN EXECUTIVE EMPLOYMENT AGREEMENT

This is an employment agreement which we will hereinafter refer to simply as the "Agreement," which I, Raymond Pineault, of Glastonbury, CT, voluntarily enter into on behalf of myself and my heirs, executors, administrators and assigns with my employer, MOHEGAN TRIBAL GAMING AUTHORITY, acting on behalf of its affiliates, successors, or assigns (the "MTGA") through its President/Chief Executive Officer ("President/CEO") on this the 7TH day of May, 2005.

WHEREAS, the MTGA is an instrumentality of the Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe, doing business as Mohegan Sun, a Class III gaming casino located on the Mohegan Reservation and operated under the authority of the National Indian Gaming Commission and the Indian Gaming Regulatory Act and pursuant to a Compact with the State of Connecticut; and

WHEREAS, as an instrumentality of the Mohegan Tribe of Indians of Connecticut, the MTGA is a sovereign Indian tribal entity that is immune from unconsented suit; and

WHEREAS, the MTGA is willing to waive its sovereign immunity for the purposes and to the extent set forth herein, in consideration for my agreement to perform my obligations and duties as an employee of the MTGA as such obligations and duties may be established, modified, or assigned by the President/CEO of the MTGA (or his authorized designee); and

WHEREAS, the MTGA acts with respect to its employees exclusively through its President/CEO, in whom is vested sole legal authority to make decisions with respect to my employment, the continuation and/or termination of my employment, and the terms and conditions of my employment;

THE MTGA AND I THEREFORE, in consideration of my employment by the MTGA after the date of this Agreement and the additional consideration set forth in Paragraph 3 of this Agreement, which I acknowledge to be good and sufficient, set forth our agreement and understanding with respect to my obligations as an employee, as follows:

1.DEFINITIONS As used in this Agreement:

a."MTGA" means the Mohegan Tribal Gaming Authority, its successors and assigns, and any organizations or businesses controlled by it.
b."Conflicting Organization" means me individually and/or in affiliation with any person, group of persons, entity or organization which is engaged in or is about to become engaged in the design, development, administration, operation or marketing of a gaming casino in competition with the MTGA.
c."Executive Assignment" means any and all duties, assignments, titles, roles, or obligations that I am expected to perform consistent with and in furtherance of the MTGA's business objectives.
d."Base Salary" means my regular salary as established by the President/CEO and paid in regular periodic installments, subject to any deductions required by applicable law, and does not include any bonuses or additional compensation of any kind.
e."Non-Compete Area" means the States of Connecticut, Rhode Island, Massachusetts, and New York.

2.    MY COVENANTS

a.I will not, without express prior written permission of the President/CEO of the MTGA, during my employment by the MTGA and for a period of twelve (12) months following the termination of that employment:

i.directly or indirectly engage in the gaming industry within the Non-Compete Area;
ii.contact for the purpose of soliciting business any person or entity who was at any time a patron of or vendor or supplier or vendor to the MTGA;
iii.perform services of any kind for any person or entity that was at any time a patron of or vendor or supplier to the MTGA; or

iv.contact any other employee of the MTGA for the purpose of recruiting such other employee for employment, directly or indirectly, for another employer.

b.  I also covenant and agree that in the event that I voluntarily terminate my employment by resignation, I shall deliver written notice of my intention to terminate my employment sixty (60) days in advance of my termination date to the President/CEO. I understand and acknowledge that if I exercise my right to terminate my employment, my covenants not to compete remain in full force and effect for the duration and within the Non-Compete Area as set forth herein.

c.    I acknowledge that my skills are transferable or applicable to industries or entities which are not in competition with the MTGA and/or that I may engage in the gaming industry outside the Non-Compete area, so that my covenants against competition with the MTGA will not prevent me from providing for myself and my family. I understand that I may make a written request to the President/CEO of the MTGA for a waiver of any of the provisions of this Paragraph, and that the decision of the President/CEO in response to any such request for waiver shall be final and shall not be subject to an appeal or review in any forum.

3.     CONSIDERATION

In consideration for my obligations and undertakings herein, expressly including my covenant not to compete with the MTGA:

a.The MTGA shall, upon the final execution of this Agreement by me and by the President/CEO, increase my Base Salary by 5% percent to $178,499.98;
b.I understand that if I voluntarily terminate my employment by resignation and give the written notice required by Paragraph 2(b), the MTGA shall continue to pay my Base Salary from the date of my notice of resignation through and including the sixtieth (60th) calendar day following my delivery of resignation notice, so long as I remain fully in compliance with all of my other covenants under this Agreement.
c.If the MTGA exercises its right to terminate my employment at its discretion pursuant to Paragraph 4(a) and without "cause" as set forth in Paragraph 4(b), then the MTGA shall pay me:

i.my Base Salary in regular installments at the same Base Salary rate as was in effect at the date of my termination for a period of one calendar year from the date of my termination, and
ii.a lump sum in the amount of twenty five thousand dollars ($25,000.00) for relocation expenses subject to all deductions required by applicable law.

I hereby acknowledge that the foregoing represents good and sufficient consideration to which I am not otherwise entitled so as to assure that this agreement may be enforced against me in the event of my breach.

4.    TERMINATION

a.Termination At Will

I understand, acknowledge and agree that my employment is "at will," in that either I or the MTGA, independently, can terminate my employment for any reason or for no reason, at any time, with or without notice, subject only to the terms and limitations of this Agreement. If I terminate my employment by voluntary resignation and provide written notice pursuant to Paragraph 2(b), I may, unless I am otherwise disqualified by my breach of other terms of this Agreement, receive the benefits set forth in Paragraph 3(b). If the MTGA terminates my employment at its discretion and without "cause" as described more fully below, the MTGA shall pay me the benefits set forth in Paragraph 3(c).

      b.    Termination for Cause

I acknowledge and agree that the MTGA may terminate this Agreement for cause, and that in the event of termination for cause, the MTGA shall have no obligation to pay me any of the benefits described in Paragraph 3(c) or any other benefit except that required by applicable law.

I understand that cause for termination includes, but is not limited to:

•My conviction of a criminal offense;
•My violation of Mohegan Sun policies, including, but not limited to, my violation of the standards for personal conduct set forth in Mohegan Sun Policy #27 (as amended);
•My breach of my covenants under this Agreement, including my covenants not to compete;
•My aiding, assisting, or abetting any other person to breach a covenant not to compete;
•Suspension or revocation of my gaming license;
•My engagement, directly or indirectly, in a conflict of interest;
•My failure or refusal to perform my Executive Assignment; or
•Other serious misconduct by me.

I understand that the foregoing is illustrative of grounds for my termination for cause, and is not an exclusive or exhaustive list.

I understand that I have a right to a rudimentary hearing prior to the termination of my employment for cause, at which hearing I shall be afforded an opportunity to present reasons to the President/CEO or his designee why the termination should not be imposed. However, I understand that any such hearing shall be subject to such limitations in time and scope that the MTGA may impose, and that I may obtain a review of the termination decision pursuant to the "Remedies" set forth in this Agreement.

c.        Confidentially of MTGA Records

I agree that all records, material and information obtained by me in the course of my employment with the MTGA shall at all times be treated and maintained in confidence and shall remain the exclusive property of the MTGA during and following my employment with the MTGA. I agree that I shall at all times adhere to all policies, standards and procedures as established by the MTGA for protecting the confidentiality of information and records, including but not limited to trade secrets.

    d.     Return of MTGA Documents Upon Termination

Upon termination of my employment with the MTGA, I will return to and leave with the MTGA all documents, records and notebooks concerning the business of the MTGA, including copies thereof, then in my actual or constructive possession, whether prepared by me or by others, and I will not duplicate such materials for my own use or the use of another person, corporation or entity at any time, either during or following my employment.

5.     REMEDIES

a.I recognize that if I violate the covenants and undertakings of this Agreement I may cause the MTGA irreparable injury and damage. Therefore, the MTGA and I agree that, if I violate this Agreement, the MTGA may seek to enjoin my actions which are in breach of this Agreement and that the MTGA is entitled to recover from me all of its reasonable costs and expenses, including reasonable attorney's fees, incurred by or on behalf of the MTGA in the enforcement of this Agreement or any part thereof and in its investigation of my violation of this Agreement, as well as any damages that may be proven to the satisfaction of a court of competent jurisdiction.
b.I understand that the MTGA may disclose this Agreement to any entity with whom I may become affiliated or employed following the termination of my employment with and by the MTGA.
c.I understand that the Mohegan Tribe of Indians of Connecticut and the MTGA have established the Mohegan Gaming Disputes Court on the Mohegan Reservation. I consent to the exercise of personal jurisdiction over me by the Mohegan Gaming Disputes Court.
d.I understand and agree that, since I am not restricted from traveling and relocating, the MTGA may at its discretion bring an action to enforce this Agreement against me in any court that can assert personal jurisdiction over me, including but not limited to the Gaming Disputes Court.
e.I understand and agree that any claim by me that the MTGA has breached its obligations to me under this Agreement may be asserted solely and exclusively in the Gaming Disputes Court. In order to permit the Gaming Disputes Court to assert subject matter jurisdiction over such a claim, the MTGA hereby grants a limited waiver of its sovereign immunity and consents to suit by me for enforcement of the MTGA's obligations under this Agreement but limits said waiver so that the 

maximum amount I may recover is the amount authorized to be paid to me by Paragraph 3(c), and the MTGA shall not be liable to me for any additional or consequential damages.

6.    EFFECT OF WAIVERS

The failure of the MTGA to insist upon strict adherence to one or more or all of the covenants and restrictions set forth above, on one or more occasions, or the failure to insist upon strict adherence by another MTGA employee who is a party to an agreement similar to this Agreement, shall not be construed as a waiver of the MTGA's right thereafter to require strict compliance with any or all of such covenants or restrictions.

7.    PARTIAL INVALIDITY

I agree that, if any part of this Agreement is held to be invalid or unenforceable for any reason, the remaining covenants and restrictions shall remain in full force and effect; and if invalidity or unenforceability is due the to unreasonableness of the time or geographical areas covered by Paragraph 2, such provisions shall be effective for whatever length of time and within such area as a court of competent jurisdiction deems appropriate.

8.    APPLICABLE LAW

This Agreement shall be governed for all purposes by the Constitution and laws of the Mohegan Tribe of Indians of Connecticut.

9.    ACKNOWLEDGEMENT

a. I have had an opportunity to review fully a copy of this Agreement prior to signing it and I have carefully read and I understand all of the terms stated in this Agreement.
b.   I understand that I must sign and abide by this Agreement in order to be eligible to receive the consideration described in Paragraph 3 of this Agreement.

10.    AMENDMENTS

This Agreement may be amended. However, to become binding on the MTGA, any amendment or modification must be set forth in a written document signed by the President/CEO. In the event that I request a substantial modification of my work assignment, working hours, title, or other material changed in the terms and conditions of my employment, such request shall be directed to the President/CEO, who shall decide whether to grant or deny the request in whole or in part and whether to modify this Agreement or terms and conditions of my employment. The decision of the President/CEO shall be final. My covenants not to compete will remain in full force and effect regardless of any modifications of the terms and conditions of this Agreement.

11.    SUPERSEDENCE

This Agreement supersedes any and all prior agreements between me and the MTGA concerning or relating to my employment. This Agreement shall be construed in harmony with all employment-related policies, standards, and procedures adopted by the MTGA and/or the President/CEO, but in the event of any conflict between the terms of this Agreement and any policy, standard or procedure adopted by the MTGA for general application to MTGA employees, the terms of this Agreement shall be given controlling effect. By way of example, but without limitation, the remedies set forth in Paragraph 5 herein shall supersede the procedures set forth in Mohegan Sun Policy #27 to the extent that said Policy #27 conflicts with this Agreement.

By: /s/ Mitchelle Etess                                5/4/2005
            Mitchell Etess, President/CEO                         Date

      /s/ Raymond Pineault                            5/4/2005
           Employee                                Date

    Raymond Pineault
      (Printed Name)Exhibit 10.1

 

SETTLEMENT
AGREEMENT AND RELEASE

 

CPI
Aerostructures, Inc. (“CPI Aero”) and Air Industries Group (“Air”) enter into this
Settlement Agreement and Release (“Agreement”) as of December 23, 2020. This Agreement sometimes
refers to CPI Aero and Air collectively as the “Parties,” and sometimes separately as a
“Party.”

 

RECITALS

 

WHEREAS:

 

(a) CPI
Aero and Air entered into a Stock Purchase Agreement dated as of March 21, 2018 (” SPA”).

 

(b) A
dispute arose between the Parties, and CPI Aero filed an action in the Supreme Court of the State of New York, County of New York,
titled CPI Aerostructures, Inc., plaintiff, against Air Industries Group, Welding Metallurgy, Inc., and Compac Development
Corp., defendants, Index No. 653397/2018 (the “Action”).

 

(c) The
Parties signed several stipulations in the Action that the Court so ordered.

 

(d) The
Parties closed under the SPA on December 20, 2018.

 

(e) A
dispute subsequently arose regarding a post-closing purchase price adjustment that CPI Aero requested pursuant to the SPA (“Purchase
Price Adjustment” or “Dispute”).

 

(f) Pursuant
to the SPA, the Parties presented the Dispute to an expert accountant who issued a report (“Expert Report”)
in which the expert found a purchase price adjustment should be made in favor of CPI Aero.

 

(g) CPI
Aero filed a motion to confirm the Expert Report, and Air filed a cross-motion to vacate the Report.

 

     

    

    

 

(h) The
Court dismissed the motion and cross-motion without prejudice on procedural grounds.

 

(i) Continental
Stock Transfer & Trust Company as escrow agent (“Continental”), pursuant to agreement with CPI Aero and Air,
made as of December 20, 2018, agreed to:

 

(i) hold
in escrow two million dollars (“Escrow Amount”) that on December 20, 2018 CPI Aero delivered to Continental on
‘closing under the SPA; and

 

(ii) release
to CPI Aero on October 10, 2019 the sum of $619,316.

 

(j) Continental
currently holds a $1,380,684 sum in escrow.

 

WHEREAS,
the Parties wish to resolve the Purchase Price Adjustment Dispute without recourse to further litigation,

 

NOW,
THEREFORE, in consideration of ten ($10) dollars and other good and valuable consideration, the receipt and legal sufficiency
of which each of the undersigned hereby acknowledges, the Parties agree as follows:

 

TERMS
OF AGREEMENT

 

 

1. Payment
and Payment Instruction. The Parties:

 

1.1 Agree
that Continental shall release from escrow, and pay to CPI Aero, the sum of $1,380,684 Continental holds in escrow as the balance
of the Escrow Amount.

 

1.2 Are
signing a joint escrow release instruction in the form of Exhibit 1 (the “Joint Instruction”) directing Continental
to pay the $1,380,684 amount to CPI Aero.

 

1.3 Will
present the Joint Instruction in the form of Exhibit 1 to CPI Aero counsel for delivery to Continental as soon as this Agreement
has been executed and delivered by each of the Parties.

 

    -2-

    

    

 

2 Releases.

 

2.1 Release
Given by Air.

 

2.1.1
For (i) itself, its parents, subsidiaries, and successors, and (ii) its and their respective officers, directors, attorneys, and
assigns (each, together with Air, a member of the “Air Group”), Air hereby agrees that, for good and valuable
consideration the receipt and legal sufficiency of which it hereby acknowledges, Air is executing and delivering this Agreement
(including, without limitation, the Release recited in this Section 2.1.1 and in Sections 2.1.2 and 2.1.3). The release given
by Air in Section 2.1.2 below will become effective in accordance with its terms upon Continental delivering the $1,380,684 balance
of the Escrow Amount to CPI Aero on or before December 31, 2020 without offset or deduction, time being of the essence.

 

2.1.2
In regard to (i) the Dispute, (ii) any and all claims which could have been asserted against each and any Air Group Releasee
arising directly or indirectly from any allegation that the dollar amount of the inventory of Welding Metallurgy, Inc. and
Compac Development Corp., on a consolidated basis, as of the closing date of the SPA was not the amount proposed by Air in
the statement of the Estimated Closing Working Capital delivered by Air in contemplation of the Closing, (iii) sums currently
or heretofore held in escrow by Continental, and (iv) payment of such sums to CPI Aero in satisfaction of the Purchase Price
Adjustment (“Scope of Release”), in its own behalf and in behalf of each member of the Air Group
(collectively with Air, the “Air Releasor Group”) Air absolutely, unconditionally, fully, and forever
releases, acquits, and discharges (a) CPI Aero, (b) its successors and assigns, and (c) its and their respective attorneys,
officers, directors, and their respective heirs, executors, administrators, representatives, successors, and assigns (each of
the foregoing individually a “CPI Aero Releasee” and, collectively, the “CPI Aero
Releasees”) from any and all claims, contentions, demands, disputes, controversies, suits, rights, causes of action,
promises, agreements, attorneys’ fees and expenses, assessments, debts, sums of money, damages, indemnification claims,
third-party claims or enforcement actions, contracts, judgments, obligations, and liabilities whatsoever, upon any legal,
statutory or equitable theory, whether known or unknown, whether direct, consequential, or incidental (for purposes of this
Release, all of the foregoing sometimes referred to as “claims”) that come within the Scope of Release and that Air
or any member of the Air Releasor Group now has or ever has had against each and any CPI Aero Releasee from the beginning of
the world to the date of execution and delivery of this Agreement.

 

    -3-

    

    

 

2.1.3 The
release recited in Sections 2.1.1, 2.1.2, and 2.1.3 encompasses any claim by Air or any other member of the Air Group that a CPI
Aero Releasee has made a statement or representation, beyond those recited in this Agreement, whether oral or written, to induce
Air to enter into this Agreement.

 

2.2 Conditions
of Release Given by CPI Aero.

 

2.2.1
The release given by CPI Aero and recited in Section 2.3 below will become effective in accordance with its terms upon: (a)
Continental delivering the $1,380,684 balance of the Escrow Amount to CPI Aero on or before December 31, 2020 without
offset or deduction, time being of the essence, and (b) the passing of a one hundred (100) day period (the “100-Day
Period”) commencing on the date CPI Aero and Air both execute and deliver this Agreement as required by its terms
during which Air (i) does not file a voluntary bankruptcy or insolvency proceeding, (ii) does not cooperate with creditors
who file an involuntary petition against Air during the 100-Day Period and (iii) actively opposes any such involuntary
petition (the actions identified in subparagraphs [i], [ii] and [iii], constituting “Actions Within Air’s
Control”). Unless Air fails to comply with and take the Actions Within Air’s Control, CPI Aero will not commence an
action or proceeding against Air during the 100-Day Period. If Air does not perform the Actions Within Air’s Control, the
Purchase Price Adjustment Dispute shall be deemed to have been resolved with a $3,526,554 sum plus pre-judgment interest then
due from Air to CPI Aero (the “Full Purchase Price Adjustment Amount”), and Air will receive a credit
against the Full Purchase Price Adjustment Amount to the extent of any portion of the $1,380,684 balance of the Escrow Amount
CPI Aero receives and retains.

 

    -4-

    

    

 

2.3 Release
Given by CPI Aero.

 

2.3.1 Subject
to the conditions of Section 2.2, CPI Aero for (i) itself, its parents, subsidiaries, and successors, and (ii) its and their respective
officers, directors, attorneys, and assigns (each a member of the “CPI Aero Group”) hereby agrees that, for good
and valuable consideration the receipt and legal sufficiency of which it hereby acknowledges, CPI Aero is executing and delivering
this Agreement including, without limitation, the release recited in this Section 2.3.1 and in Sections 2.3.2 and 2.3.3.

 

2.3.2
In its own behalf and in behalf of each member of the CPI Aero Group (collectively with CPI Aero, the “CPI Aero
Releasor Group”) CPI Aero absolutely, unconditionally, fully, and forever, releases, acquits, and discharges (a)
Air, (b) its successors and assigns, and (c) its and their respective attorneys, officers, directors, and their respective
heirs, executors, administrators, representatives, successors, and assigns (each of the foregoing individually an “Air
Group Releasee” and, collectively, the “Air Group Releasees”) from any and all claims, contentions,
demands, disputes, controversies, suits, rights, causes of action, promises, agreements, attorneys’ fees and expenses,
assessments, debts, sums of money, damages, indemnification claims, third-party claims or enforcement actions, contracts,
judgments, obligations, and liabilities whatsoever, upon any legal, statutory or equitable theory, whether known or unknown,
whether direct, consequential, or incidental (for purposes of this Release, all of the foregoing sometimes referred to as
“claims”) that come within the Scope of Release and that CPI Aero or any member of the CPI Aero Releasor Group now
has or ever has had against each and any Air Group Releasee, from the beginning of the world to the date of execution and
delivery of this Agreement.

 

    -5-

    

    

 

2.4 For
the avoidance of doubt, the releases given pursuant to this Agreement do not include any claims arising under the SPA that do
not come within the Scope of Releases given by Air and CPI Aero, respectively.

 

3. Announcement.
The parties shall cooperate as to the timing of a public announcement announcing this Agreement, which will be released
concurrently by the parties no sooner than 4:00 p.m. on the date this Agreement is fully executed in the presence of notaries
public and no later than two business days after the date hereof. The agreed forms of such announcements for the respective parties
are attached hereto as an Exhibits 3.1 and 3.2. The Current Report on Form 8-K filed in respect of such announcement by each party
shall do no more than report the release of such announcement. Unless required by applicable law or stock exchange requirements
(based on reasonable advice of counsel) the parties shall not make any public announcements (including disclosures in Securities
and Exchange Commission filings) with respect to this Agreement that differ materially from the form of announcement attached
hereto.

 

4. No
Admission of Liability; Inadmissibility. The Parties acknowledge they are entering into this Agreement to settle all matters
coming within the Scope of the Releases Given by CPI Aero and Air, respectively. No provision in this Agreement constitutes an
admission of breach, liability, or wrongdoing. This Agreement may be introduced as required to enforce its provisions and to demonstrate
the Scope of the Releases given herein.

 

    -6-

    

    

 

5. Notices. All
notices, requests, demands, or other communications required or permitted in connection with this Agreement shall be in
writing and sent both by email and by nationally recognized overnight express courier service to the receiving Party at the
addresses identified below, or to such substitute addresses in the United States as a respective Party may designate by like
notice:

 

If
to CPI Aero, to:

 

CPI
Aerostructures, Inc.

91
Heartland Boulevard

Edgewood,
NY 11717

Attn:
Chief Executive Officer/President

Email
address: dmmccrosson@cpiaero.com

 

with
a mandatory copy that itself shall not constitute notice, to:

 

Graubard
Miller

405
Lexington Avenue, 11th Floor

New
York, New York 10174-1100

Attn:
Lawrence Bernfeld, Esq., Paul Lucido, Esq., and Docket Clerk

Email
addresses: lbernfeld@graubard.com, plucido@graubard.com,
and

docketing@graubard.com

 

If
to Air, to:

 

Air
Industries Group

1460
Fifth Avenue

Bay
Shore, New York 11706-4147

Attn:
Chief Executive Officer/President

Email
address: lou.melluzo@airindustriesgroup.com

 

with
a mandatory copy that itself shall not constitute notice, to:

 

Mandelbaum
Salsburg, P.C.

3
Becker Farm Road, Suite 105

Roseland,
New Jersey 07068

Attn:
Michael F. Bevacqua, Jr., Esq. and Vincent J. McGill, Esq.

Email
address: mbevacqua@lawfirm.ms and vmcgill@lawfinn.ms

 

    -7-

    

    

 

6. Representations.

 

6.1 Air represents its Board of Directors (a) has authorized (i) the execution of this Agreement and the Exhibit 1 Joint
Instruction and (ii) delivery of the signed documents to CPI Aero, and (b) has approved of CPI Aero’s delivery of the Joint
Instruction to Continental.

 

6.2 CPI Aero represents its Board of Directors has authorized CPI Aero (i) to execute this Agreement and deliver it to Air
and (ii) to deliver a fully executed Exhibit 1 to Continental when CPI Aero receives the Joint Instruction executed by
Air.

 

6.3 Each individual when signs this Agreement and Joint Instruction on behalf of a Party represents in his or her individual
capacity that he or she is duly authorized to execute and deliver such documents, and to bind the indicated Party and each
member of such Party’s Releasor Group to the terms and conditions of (i) this Agreement and Joint Instruction and (ii) the
Release within this Agreement that such Party gives in its own behalf and in behalf of its Releasor Group.

 

6.4 Each Party represents that neither such Party nor any member of such Party’s Releasor Group has transferred, assigned or
hypothecated to any third party any right or claim that this Agreement releases.

 

6.5 Each Party represents that such Party and each member of the Releasor Group of such Party is the sole legal and equitable
owner of any claim such Party, in its own behalf and in behalf of such Party’s Releasor Group, is releasing pursuant to this
Agreement.

 

7. Waiver;
Etc. A waiver or failure of a Party on one or more occasions to exercise a right recited in this Agreement shall not be
deemed an election of remedies, or a waiver of such right, or of any other right on any other occasion.

 

    -8-

    

    

 

8.
Advice of Counsel. Each Party acknowledges it (i) has consulted with counsel before signing this Agreement, (ii) has
read this Agreement before signing, and (iii) fully under-stands the contents of this Agreement (including, without
limitation, the representations, warranties, releases, and covenants contained herein).

 

9. Construction.
Each Party acknowledges it has participated through counsel in drafting, reviewing, and editing this Agreement. No presumption
for or against a Party with respect to this Agreement shall be applied in any action or proceeding. No reference for any purpose
shall be made to any prior or unexecuted draft or version of this Agreement. This Agreement has been mutually drafted and shall
be construed accordingly.

 

10. Enforceability.
The Parties acknowledge this Agreement is final and binding. The Parties agree not to challenge the enforceability of
this Agreement.

 

11. Governing
Law. This Agreement shall be governed by and construed and inter-preted in accordance with the internal laws of the State
of New York, notwithstanding any provision of any doctrine of conflicts of law.

 

12. Waiver
of Trial by Jury. Each Party hereby waives trial by jury in any action or proceeding between or among them.

 

13. Headings.
Headings in this Agreement are for convenience only and shall not be used to interpret or construe provisions of this
Agreement.

 

14. Entire
Agreement; Amendment. This Agreement represents the entire agreement of the Parties with respect to the subject matter
hereof, and supersedes and cancels all prior or concurrent oral agreements as well as any prior written agreement regarding such
subject matter. For the avoidance of doubt, this Agreement does not supersede or cancel any post-closing obligations of a Party
under the SPA other than those that come with the Scope of Release Given by
the respective Parties. Neither this Agreement nor any provision hereof may be modified, altered, amended, or waived except pursuant
to written instrument that such Party by a duly authorized signatory executes and has duly acknowledged.

 

    -9-

    

    

 

15.
Venue; Etc. This Agreement has been negotiated in whole or in part
in the Borough of Manhattan, City and State of New York. To induce CPI Aero to enter into this Agreement, Air in its own behalf
and in behalf of each member of the Air Releasor Group joins with CPI Aero in acknowledging and agreeing that the exclusive venue
for any dispute arising out of or relating to this Agreement shall be the Supreme Court of the State of New York in and for the
County of New York. The Parties acknowledge and agree that New York County shall be the sole and exclusive venue for resolution
of disputes. In the event of an action to enforce a right or obligation of a signatory to this Agreement, the prevailing party
shall be entitled to payment by the other party of the prevailing party’s reasonable attorneys’ fees and disbursements
incurred in prosecuting or defending against such action.

 

16. Use
of PDFs, Etc. The Parties agree that this Agreement may be executed and delivered by transmitting a pdf made from an original
signed and duly acknowledged document. Such transmission will be sent through the respective counsel for the signing Party to
counsel for the other Party. The Agreement will be executed and delivered in counterparts that, together, will be deemed to constitute
a fully executed document. When fully executed counterpart pdfs of this Agreement have been delivered, this Agreement shall be
deemed binding as if it were a document containing original signatures. There shall be no agreement to settle any matter except
to the extent recited in this Agreement, and only upon an exchange of fully executed and duly acknowledged counterparts of this
Agreement.

 

[Signature
Page Follows]

 

    -10-

    

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed and delivered this Agree-ment as of the date set forth on page one of
this Agreement.

 

	CPI
    AEROSTRUCTURES, INC.	 
	 	 
	 By:	/s/
    Doug McCrosson	
	 	Name: 	Douglas
    McCrosson	 
	 	Title:	Chief Executive
    Officer	 
	 	 	 	 
	Date:  December
    23, 2020	 
	 	 	 	 
	AIR
    INDUSTRIES GROUP	 
	 	 
	By:	/s/
    Michael Recca	
	 	Name:	Michael Recca	
	 	Title: 	 Chief
    Financial Officer 	
	 	 	 	 
	Date:
    December 23, 2020	 

 

    -11-

    

    

 

REMOTE
ACKNOWLEDGMENTS

 

	STATE
    OF NEW YORK	)
		: ss.:
	COUNTY OF	)

 

On
the                  day of December in the year 2020, before me, the undersigned, a Notary Public in and for the State of New York, personally
appeared DOUGLAS McCROSSON, by way of video teleconference in accordance with New York State Executive Order No. 202.7, issued
March 19, 2020 and Executive Order 202.14 issued April 7, 2020 and Executive Order 202.28 issued May 7, 2020, personally known
to me or who presented valid photo identification during the video teleconference to be the individual whose name is subscribed
to the within instrument, and swore to me that he/she was physically present in the State of New York, and executed the same in
his/her capacity, and that by his/her signature on the instrument, the individual, or the person upon behalf of whom the individual
acted, executed the instrument, a legible copy of the signed instrument was transmitted to and received by me the same day it
was signed.

 

	 	
	 	Notary
                                         Public

 

	STATE
    OF 	)
		: ss.:
	COUNTY OF	)

 

On
the           day of December in the year 2020, before me, the undersigned, a Notary Public in and for the State of New York, personally
appeared MICHAEL RECCA, by way of video teleconference in accordance with New York State Executive Order No. 202.7, issued March
19, 2020 and Executive Order 202.14 issued April 7, 2020 and Executive Order 202.28 issued May 7, 2020, personally known to me
or who presented valid photo identification during the video teleconference to be the individual whose name is subscribed to the
within instrument, and swore to me that he/she was physically present in the State of New York, and executed the same in his/her
capacity, and that by his/her signature on the instrument, the individual, or the person upon behalf of whom the individual acted,
executed the instrument, a legible copy of the signed instrument was transmitted to and received by me the same day it was signed.

 

	 	
	 	Notary
                                         Public

 

    -12-

    

    

 

IN
PERSON ACKNOWLEDGMENTS

 

	STATE
    OF NEW YORK	)
		: ss.:
	COUNTY OF	)

 

On
the         day of December in the year 2020, before me, the undersigned, personally appeared DOUGLAS McCROSSON, personally known to me
or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or
the person upon behalf of which the individual acted, executed the instrument.

 

	 	
	 	Notary
                                         Public

 

 

	STATE
    OF NEW YORK	)
		: ss.:
	COUNTY OF	)

 

On the         day
of December in the year 2020, before me, the undersigned, personally appeared MICHAEL RECCA, personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	 	
	 	Notary
                                         Public

 

    -13-

    

    

 

EXHIBIT
1

 

[Form
of Joint Release Instruction to Continental Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -14-

    

    

 

CPI
AEROSTRUCTURES, INC.

AIR INDUSTRIES GROUP

 

December
23, 2020

 

BY
EMAIL

 

Continental
Stock Transfer

&
Trust Company

1
State Street Plaza, 30th Floor

New
York, New York 10004

Attn:
Sharmin Carter

 

Email:
scarter@continentalstock.com

 

		Re:	Escrow
                                         Account No. 267-376355 - Joint Release Instruction 
	 	 	 
	 	 	Dear Sirs
                                         and Madams:

 

 

Pursuant
to that certain Escrow Agreement dated December 20, 2018 and amended as of October 7, 2019, by and between CPI Aerostructures,
Inc. (“Buyer”), Air Industries Group (“Seller”), and Continental Stock Transfer & Trust
Company, as Escrow Agent (the “Escrow Agreement”), Buyer and Seller hereby inform you that Buyer and Seller
have agreed to release the entire $1,380,684 balance remaining in the above referenced Escrow Account. Capitalized terms used
but not defined herein shall have the meanings assigned to them in the Escrow Agreement.

 

You
are hereby authorized and instructed to immediately pay $1,380,684 to Buyer from the Indemnification Escrow Fund (Escrow Account
No. 267-376355).

 

	 	Buyer’s
    wire instructions are as follows:
	 	 	 
	 	Bank:	Bank
    United
	 	Address:	Miami
    Lakes, Florida (USA)
	 	Account
    Name:	CPI
    Aerostructures Inc.
	 	Routing
    #:	2670-9059-4
	 	Account
    #	9853724601

 

	 	Very
    truly yours,
	 	 
	 	CPI
    AEROSTRUCTURES, INC.
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	AIR
    INDUSTRIES GROUP
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    -15-

    

    

 

Exhibit 3.1

 

[CPI AERO Form of Press Release Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -16-

    

    

 

CPI
AEROSTRUCTURES AND AIR INDUSTRIES GROUP AGREE TO

SETTLE
WORKING CAPITAL DISPUTE

 

Edgewood,
N.Y., December xx, 2020 - CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced it has reached
an agreement (“Settlement Agreement”) to resolve its post-closing working capital adjustment dispute with Air Industries
Group (“Air Industries”) (NYSE American: AIRI) in exchange for payment of the $1,381,000 remaining in escrow to CPI
Aero.

 

In
December 2018, CPI Aero completed the acquisition of Welding Metallurgy, Inc. from Air Industries for a purchase price of $7.9
million subject to a potential post-closing working capital adjustment. Of the purchase price, $2 million was placed in escrow
at closing. A dispute arose regarding the post-closing working capital adjustment which was presented to an expert accountant
and subsequently became the subject of a motion filed by CPI Aero against Air Industries in the Supreme Court of the State of
New York. CPI Aero sought a determination to enforce the expert’s report and, among other things, a judgment against Air
Industries in the amount of approximately $4.1 million.

 

In
October 2019, Air Industries and CPI Aero jointly authorized the release to CPI Aero of approximately $619,000 from escrow representing
the value of certain undisputed post-closing working capital adjustment items. On October 1, 2020, the Court denied CPI Aero’s
motion and Air Industries’ cross-motion on procedural grounds. The Court made its decision without prejudice and did not
resolve the post-closing working capital dispute.

 

Under
the terms of the Settlement Agreement, the parties are jointly authorizing the release of the $1,381,000 balance from escrow to
CPI Aero.

 

About
CPI Aero 

 

CPI
Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance
and Reconnaissance and Electronic Warfare pod systems, primarily for national security markets. Within the global aerostructure
supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI
also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations,
CPI Aero provides engineering, program management, supply chain management, and MRO services. CPI Aero is included in the Russell
Microcap® Index.

 

The
above statements include forward looking statements that involve risks and uncertainties, which are described from time to time
in CPI Aero’s SEC reports, including CPI Aero’s Form 10-K for the year ended December 31, 2019 and Forms 10-Q for
the three-month period ended March 31, 2020, and June 30, 2020.

 

CPI
Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on
Twitter @CPIAERO.

 

    -17-

    

    

 

Exhibit 3.2

 

[Air Industries Form of Press Release
Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -18-

    

    

 

 

AIR
INDUSTRIES GROUP AND CPI AEROSTRUCTURES SETTLE

WORKING CAPITAL DISPUTE

 

Bay
Shore, NY -- (Business Wire) – December , 2020 – Air Industries Group (NYSE AMEX: AIRI):

 

Air
Industries Group (“Air Industries”) announced it has reached an agreement (“Settlement Agreement”) to
resolve its post-closing working capital adjustment dispute with CPI Aerostructures, Inc. In a motion filed by CPI Aero against
Air Industries in the Supreme Court of the State of New York arising out of the working capital dispute, CPI Aero sought, among
other things, a judgment against Air Industries in the amount of approximately $4.1 million. The parties agreed to resolve the
dispute by payment of the $1,381,000 remaining in escrow to CPI Aero.

 

Under
the terms of the Settlement Agreement, the parties are jointly authorizing the release of the $1,381,000 balance from escrow to
CPI Aero.

 

ABOUT
AIR INDUSTRIES GROUP

 

Air
Industries Group (AIRI) is an integrated manufacturer of precision equipment assemblies and components for leading aerospace and
defense prime contractors.

 

Forward
Looking Statements

 

Certain
matters discussed in this press release are ‘forward-looking statements’ intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding
trends in the marketplace, future revenues, earnings and Adjusted EBITDA, the ability to realize firm backlog and projected backlog,
cost cutting measures, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking
statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability
in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management,
regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within
the Company’s control. The factors discussed herein and expressed from time to time in the Company’s filings with
the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed
in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

 

Adjusted
EBITDA

 

The
Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the SEC, as a supplemental profitability measure because
management finds it useful to understand and evaluate results, excluding the impact of non-cash depreciation and amortization
charges, stock based compensation expenses, and nonrecurring expenses and outlays, prior to consideration of the impact of other
potential sources and uses of cash, such as working capital items.

 

This
calculation may differ in method of calculation from similarly titled measures used by other companies and may be different than
the EBITDA calculation used by our lenders for purposes of determining compliance with our financial covenants. This Non-GAAP
measure may have limitations when understanding performance as it excludes the financial impact of transactions such as interest
expense necessary to conduct the Company’s business and therefore are not intended to be an alternative to financial measure
prepared in accordance with GAAP. The Company has not quantitatively reconciled its forward looking Adjusted EBITDA target to
the most directly comparable GAAP measure because such items such as amortization of stock-based compensation and interest expense,
which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot
be predicted. For example, quantification of stock-based compensation is not possible as it requires inputs such as future grants
and stock prices which are not currently ascertainable.

 

Contact
Information

 

Air
Industries Group

Investor
Relations

631.968.5000

ir@airindustriesgroup.com

 

 

-19-

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