Document:

Exhibit 10.1

 

REPURCHASE AGREEMENT

 

This REPURCHASE AGREEMENT
(this “Agreement”) dated as of January 27, 2014 is made by and among China Biologic Products, Inc., a Delaware
corporation (the “Company”), Ms. Siu Ling Chan, a Hong Kong resident (ID No. P725946(1), “Seller”)
and Mr. Lam Tung, a Hong Kong resident (ID No. P665194(5), “Seller Affiliate”). The Company, Seller and Seller
Affiliate are hereinafter referred to as the “Parties” and each a “Party”.

 

WHEREAS, Seller desires
to sell to the Company, and the Company desires to repurchase and acquire from Seller, an aggregate of 2,500,000 shares of common
stock (“Common Stock”), par value US$0.0001 per share, of the Company.

 

WHEREAS, after giving
effect to the transactions contemplated by this Agreement, Seller will still own 2,862,624 shares of Common Stock (the “Remaining
Shares”).

 

NOW THEREFORE, in consideration
of the foregoing and the mutual promises, covenants and agreements of the Parties contained herein, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1             
Definitions. The following terms shall have the following meanings for purposes of this Agreement:

 

“Business
Day” means a day other than Saturday, Sunday or any day on which banks located in Hong Kong or the United States are
authorized or obligated to close.

 

“Change of
Control Transaction” means a transaction involving the sale of all or substantially all the assets of the Company;
any merger, consolidation or acquisition of the Company with, by or into another Person; or any change in the ownership of more
than 50% of the voting capital stock of the Company in one or more related transactions.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Government
Authority” means any government or political subdivision thereof, whether on a federal, central, state, provincial, municipal
or local level and whether executive, legislative or judicial in nature, including any agency, arbitrator, authority, board, bureau,
commission, court, department, official, tribunal or other instrumentality thereof.

 

“HK Court”
means the High Court of the Hong Kong Special Administrative Region, Court of First Instance.

 

“HK Injunction”
means the injunction issued by the HK Court in connection with the HK Lawsuit on transfer of shares of Common Stock by Seller.

 

“HK Lawsuit”
means the pending lawsuit in the HK Court against Seller and Seller Affiliate with respect to 5,178,962 shares of Common Stock
(Action No. 1424 of 2012).

 

    	 

    	 

    

 

“Law”
means any law, treaty, statute, ordinance, code, rule or regulation of any Government Authority or any Order.

 

“Order”
means any writ, judgment, decree, injunction, award or similar order of any Government Authority (in each such case whether preliminary
or final).

 

“Person”
means an individual, firm, corporation, partnership, association, limited liability company, union, trust or estate or any other
entity or organization whether or not having separate legal existence, including any Government Authority.

 

“Plaintiffs’
means the plaintiffs in the HK Lawsuit.

 

“Plaintiffs’
Agent” means Beijing Shengyuan Junhe Risk Management Consulting Co., Ltd. (北京盛元君和风险管理咨询有限公司),
the agent representing the Plaintiffs in the HK Lawsuit.

 

“Registrable
Securities” means: (i) the Remaining Shares and (ii) any securities issued or issuable upon any stock split, dividend
or other distribution, recapitalization or similar event, or any exercise price adjustment with respect to any of the Remaining
Shares; provided however, that once any such securities referred to in foregoing clauses (i) or (ii) have been sold pursuant to
a Registration Statement, they shall no longer constitute Registrable Securities.

 

“Registration
Statement” means any registration statement required to be filed in accordance with this Agreement to register the
Remaining Securities including the prospectus, amendments and supplements to such registration statement or prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated
by reference therein.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Seller Options”
means the options to purchase Common Stock that were granted to Seller by the Company.

 

“Settlement
Completion” means the completion of (i) the Closing; (ii) the closing of the transactions contemplated by the Settlement
Agreement and the other actions contemplated thereby, including full payment of the settlement amount under the Settlement Agreement
and the withdrawal by the Plaintiffs of all their claims in the HK Lawsuit; and (iii) the revocation by the HK Court of the HK
Injunction.

 

“Settlement
Agreement” means the settlement agreement entered into by and among Seller, Seller Affiliate, the Plaintiffs and the
Plaintiffs’ Agent on January 27, 2014.

 

“Settlement
Amount” means the aggregate amount to be paid by Seller and Seller Affiliate to the Plaintiffs and the Plaintiffs’
Agent under Section 1.1 of the Settlement Agreement to settle the HK Lawsuit.

 

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“US$”
means the United States Dollar, the lawful currency of the United States of America.

 

ARTICLE II

REPURCHASE OF SHARES

 

2.1             
Repurchase and Sale of Shares. At the Closing, and subject to and upon the fulfillment of the terms and conditions
set forth in this Agreement, the Company shall repurchase from Seller, and Seller shall sell and deliver to the Company, 2,500,000
shares of Common Stock (the “Subject Shares”) for US$28.00 per Subject Share. The aggregate purchase price for
the Subject Shares shall be US$70,000,000 (the “Purchase Price”).

 

2.2             
Closing.

 

(a)               
The closing of the repurchase of the Subject Shares contemplated hereunder (the “Closing”) shall take
place on a Business Day in the Hong Kong offices of Wilson Sonsini Goodrich & Rosati P.C. at Unit 1001, 10/F, Henley Building,
5 Queens Road Central, Hong Kong, or at such other location as may be mutually agreed by the Parties, as soon as practicable but
no later than three Business Days following the date upon which all of the conditions set forth in Article VI, other than
those that by their nature may only be satisfied or waived at the Closing, have been satisfied or waived as of the date of the
Closing, or such other date as the Parties may mutually agree (the “Closing Date”).

 

(b)              
At the Closing, Seller shall deliver or cause to be delivered the following documents to the Company or the transfer agent
of the Company against payment of the Purchase Price by the Company: (i) original of one or more certificate(s) evidencing
the Subject Shares (the “Share Certificates”), accompanied by duly executed irrevocable stock powers in such
form as required by the transfer agent, with any required transfer stamps affixed thereto (the “Stock Powers”),
(ii) a duly executed letter of instruction from Seller, in such form as required by the transfer agent, instructing the transfer
agent to register the Subject Shares as having been repurchased by the Company (the “Transfer Instruction”),
and (iii) such other documents as may be reasonably required by the transfer agent in order to complete the repurchase and
acquisition of the Subject Shares from Seller by the Company (together with the Share Certificates, the Stock Powers and the Transfer
Instruction, the “Seller Deliverables”).

 

(c)               
At the Closing, Seller and the Company shall take the following actions in the sequence set out below:

 

(i)                
upon the Company’s inspection of the Seller Deliverables to its satisfaction, the Company shall deliver or cause to
be delivered (A) the Settlement Amount to the Plaintiffs and the Plaintiffs’ Agent by initiating a wire transfer of
immediately available funds to one or more accounts designated in writing by Wilkinson & Grist, the Hong Kong counsel to the
Plaintiffs and the Plaintiffs’ Agent in the HK Lawsuit, no later than five (5) Business Days prior to the Closing Date,
and (B) an amount equal to (x) the Purchase Price minus (y) the Settlement Amount to Seller by initiating a wire transfer
of immediately available funds to one or more accounts designated by Seller in writing no later than five (5) Business Days
prior to the Closing Date; and

 

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(ii)              
immediately upon the Company’s presentation to Seller of the irrevocable instruction initiating the wire transfer(s)
as set forth in 2.2(c)(i) above, Seller shall deliver the Seller Deliverables in accordance with Section 2.2(b).

 

For the avoidance of
doubt, the provisions under this Section 2.2(c) are intended to describe the agreed mechanics of the Closing only but the
Closing shall not be deemed to have consummated until all deliveries described in Section 2.2(b) shall have been made, including,
without limitation, receipt of the Purchase Price by Seller, the Plaintiffs and the Plaintiffs’ Agent, and all such deliverables
(including without limitation payment of the Purchase Price) shall be deemed to occur simultaneously and to be conditioned upon
each other.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER AFFILIATE

 

Seller and Seller Affiliate
hereby jointly and severally represent and warrant to the Company as of the date hereof and as of the Closing Date as follows:

 

3.1             
Authorization; Enforcement; Validity. This Agreement has been duly and validly executed and delivered by Seller and
Seller Affiliate, and is a valid and binding obligation of Seller and Seller Affiliate enforceable against Seller and Seller Affiliate
in accordance with the respective terms herein.

 

3.2             
No Conflict. Subject to compliance with the Settlement Agreement, the execution and delivery by Seller and Seller
Affiliate of this Agreement, and the performance by Seller and Seller Affiliate of their obligations hereunder, as of the date
hereof do not and as of the Closing Date will not (i) violate or contravene any provision of applicable Law, or (ii) violate
or contravene, or require any consent or other action by any Person under, constitute a default under, any agreement, contract
or note binding upon Seller or Seller Affiliate.

 

3.3             
Ownership of Subject Shares. The Subject Shares have been duly authorized and validly issued and are fully paid and
non-assessable. Other than the transfer restrictions under the Settlement Agreement and the HK Lawsuit, (i) Seller is and
on the Closing Date will be the record and beneficial owner of the Subject Shares, free and clear of all security interests, claims
(pending or threatened), liens, pledges, charges, equities or other encumbrances, limitations or restrictions (including any restriction
on the right to vote, sell or otherwise dispose of such Subject Shares) (“Encumbrances”), and (ii) Seller
has the legal right and power, and all authorization and approval required by law, to enter into this Agreement and to sell, transfer
and deliver the Subject Shares free and clear of all Encumbrances. The HK Lawsuit is the only adverse claim in respect of the Subject
Shares’ title that Seller and Seller Affiliate are aware of.

 

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3.4             
No Approvals. Subject to compliance with the Settlement Agreement, no filing with, or consent, approval, authorization,
order, registration, qualification or decree of, any court or governmental authority or agency, domestic or foreign, is necessary
or required for the execution and delivery of this Agreement, the performance by Seller and Seller Affiliate of their obligations
hereunder or in connection with the sale and delivery of the Subject Shares hereunder or the consummation of the transactions contemplated
by this Agreement.

 

3.5             
Seller’s Status. Seller is a sophisticated investor with sufficient investment or financial knowledge and experience
as well as knowledge in the Company, which enable her to properly evaluate the risks and merits of her participation in the transaction
contemplated hereunder and protect her own interest in connection therewith. Seller has made a determination based on her own independent
review and such professional advice as she deems appropriate that (i) her consideration of the sale of the Subject Shares
to the Company in the transaction contemplated hereunder is fully consistent with her financial needs, objectives and condition,
and (ii) the terms of the transaction contemplated hereunder have been agreed through arm’s-length negotiation and are
fair to Seller.

 

3.6             
Purchase Price. Seller fully understands that the Purchase Price may be less than the current trading price of the
Subject Shares and believes that, due to the size of Seller’s holdings, any attempt to dispose of the Subject Shares on the
public market would most likely drive the market price down and result in an average price per share that is less than an amount
equaling (x) the Purchase Price divided by (y) the number of Subject Shares.

 

3.7             
Settlement Agreement. The Settlement Agreement has been duly and validly executed and delivered by each of the parties
thereto, is effective, and constitutes valid and binding obligations of Seller and Seller Affiliate and enforceable against Seller
and Seller Affiliate in accordance with the terms therein. The effectiveness and enforceability of the Settlement Agreement is
not dependent or conditioned upon any Government Authority approval or consent.

 

3.8             
Information. Seller acknowledges that (i) Seller and Seller Affiliate have received and reviewed the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2012, Quarterly Report on Form 10-Q for the quarters
ended March 31, 2013, June 30, 2013 and September 30, 2013 respectively and the Company’s Current Reports
on Form 8-K filed with the SEC after September 30, 2013, and the other filings made by the Company with the SEC, (ii) Seller
was a director of the Company and had access to material non-public information relating to the Company, and (iii) Seller
and Seller Affiliate are familiar with the Company’s business and financial conditions. Seller further acknowledges that
the Company has informed Seller that the Company may have material non-public information regarding the Company (“MNPI”).
Such MNPI, when it is eventually available and disclosed publicly, may cause the market price of the Company’s common stock
to increase or decrease substantially. Seller understands, based on her experience, the disadvantage to which Seller is subject
due to the disparity of information between the Company and Seller. Notwithstanding this, Seller desires to engage in the transaction
contemplated hereunder. Seller hereby waives any future claim that Seller might have based on the failure by the Company to disclose
the MNPI and expressly releases the Company from any and all liabilities arising from the Company’s failure to disclose such
MNPI, and Seller agrees to make no claim against the Company in respect of the transaction contemplated under this Agreement related
to the Company’s failure to disclose such MNPI to Seller, except with respect to representations, warranties, covenants and
agreements expressly made by the Company in this Agreement. Based on such information and investigation as Seller has deemed appropriate
and without reliance upon any MNPI that the Company may have, Seller has independently made her own analysis and decision to enter
into the transaction contemplated hereunder. Except for the representations, warranties and agreements of the Company expressly
set forth in this Agreement, Seller is relying exclusively on her own sources of information, investment analysis and due diligence
(including such professional advice as she deems appropriate) with respect to the transaction contemplated hereunder.

 

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3.9             
Foreign Corrupt Practices Act. Any proceeds received by Seller under this Agreement will be received by Seller as
principal and not as agent for others, and no part of any payment hereunder will be paid or assigned to or shared with any third
party except for the payment of lawful costs and expenses. Neither Seller nor Seller Affiliate is an officer or employee of, or
acting in an official capacity for, any Government Entity (as defined below), any political party or official thereof, or any candidate
for political office (individually and collectively, a “Government Official”). Neither Seller nor Seller Affiliate
is holding or using any Subject Shares on behalf of any Government Official or Government Entity. “Government Entity”
as used in this Section 3.9 means any government or any department, agency or instrumentality thereof, including any entity
or enterprise owned or controlled by a government or a public international organization.

 

3.10         
Joint Obligors. Seller and Seller Affiliate hereby represent and warrant that they collectively act as one party
under this Agreement and shall be jointly and severally liable for any of their obligations hereunder.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby
represents and warrants to Seller and Seller Affiliate as of the date hereof and as of the Closing Date as follows:

 

4.1             
Authorization; Enforcement; Validity. The execution and delivery by the Company of this Agreement, the performance
by the Company of its obligations hereunder and the consummation by the Company of the transactions contemplated hereby have been
duly authorized by all requisite corporate actions on the part of the Company. This Agreement has been duly and validly executed
and delivered by the Company, and is a valid and binding obligation of the Company enforceable against the Company in accordance
with the respective terms herein.

 

4.2             
No Conflict. The execution and delivery by the Company of this Agreement, and the performance by the Company of its
obligations hereunder, as of the date hereof do not and as of the Closing Date will not (i) violate or contravene any provision
of applicable Law or Order, (ii) violate or contravene the certificate of incorporation or by-laws of the Company, or (iii) violate
or contravene, or require any consent or other action by any Person under, constitute a default under, any agreement, contract
or note binding upon the Company.

 

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4.3             
No Approvals. No filing with, or consent, approval, authorization, order, registration, qualification or decree of,
any court or governmental authority or agency, domestic or foreign, is necessary or required for the execution and delivery of
this Agreement, the performance by the Company of its obligations hereunder or the consummation of the transactions contemplated
by this Agreement.

 

4.4             
Funds. The Company will have sufficient funds lawfully available to pay the Purchase Price at Closing and effect
the repurchase of the Subject Shares contemplated hereby.

 

4.5             
Independent Investigation. The Company acknowledges that neither Seller nor Seller Affiliate has made any representation
or warranty except as expressly set forth in Article III of this Agreement and in making its decision to enter into this Agreement
and to consummate the transactions contemplated hereby, the Company has relied solely on its own investigation and the express
representations and warranties of Seller and Seller Affiliate set forth in Article III of this Agreement.

 

ARTICLE V

COVENANTS AND AGREEMENTS

 

5.1             
Restrictive Legends. To the extent any of the Remaining Shares are represented by a certificate that bears a legend
restricting transfer of such Remaining Shares, the Company shall use its commercially reasonable efforts to cause the Company’s
transfer agent to remove such restrictive legend and provide Seller with one or more certificates for such Remaining Shares as
instructed by Seller free from any restrictive legends. The Company hereby acknowledges that neither Seller nor Seller Affiliate
is an “affiliate” of the Company as the term is defined under Rule 144.

 

5.2             
Transfer of Remaining Shares. The Company agrees that, after the Settlement Completion, Seller may transfer all or
any portion of the Remaining Shares in one or more transactions (including, for the avoidance of doubt, initially transferring
all the Remaining Shares to a company organized in the British Virgin Islands directly or indirectly wholly owned by a daughter
of Seller and Seller Affiliate) so long as such transfer(s) shall be in compliance with applicable Laws and the transfer restriction
set forth below in this Section 5.2. The Company shall use its commercially reasonable efforts to assist with such transfer(s),
including causing the Company’s transfer agent to cooperate with such transfer(s). Notwithstanding anything to the contrary
contained herein, Seller shall not, and shall cause her permitted assignee not to, sell or transfer, directly or indirectly, any
Remaining Shares to any company that engages in the plasma related business in China or controlling shareholder(s) of any such
company (collectively, “Restricted Transferees”) without the prior approval by the board of directors of the
Company. For the avoidance of doubt, the foregoing transfer restriction shall not apply to the sale or transfer of the Remaining
Shares to a Restricted Transferee in connection with or as part of a Change of Control Transaction.

 

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5.3             
Registration Rights. As a material inducement to Seller to enter into this Agreement, the Company shall, upon a request
from Seller or Seller’s permitted assigns after the Settlement Completion, use commercially reasonable efforts to prepare
and file with the Commission a Registration Statement covering the resale of all Registrable Securities for an offering to be made
on a continuous basis pursuant to Rule 415. If, after the Settlement Completion, the Company proposes to file a registration statement
under the Securities Act providing for a public offering of the Company’s securities, the Company shall notify Seller or
Seller’s permitted transferee of the proposed filing and afford Seller or Seller’s permitted assigns an opportunity
to include in such registration statement all or any part of the Registrable Securities then held by Seller or Seller’s permitted
assigns.

 

5.4             
Seller Options. As a further material inducement to Seller to enter into this Agreement and notwithstanding anything
to the contrary in any other agreement or arrangement between Seller and the Company prior to the date of this Agreement, the Company
agrees to allow Seller to exercise the Seller Options in one or more transactions at any time following the Closing but prior to
the date that one month following the Closing. For the avoidance of doubt and without limiting the generality of the foregoing,
during such period Seller shall not be restricted or prevented from exercising the Seller Options by any trading blackout window
imposed by the Company (under its insider trading policy or otherwise). Any securities received by Seller as a result of her due
exercise of the Seller Options shall be considered Remaining Shares for the purposes of this Agreement.

 

5.5             
Further Cooperation. Subject to the terms and conditions provided herein, each of the Parties shall use commercially
reasonable efforts to promptly take, or cause to be taken, all necessary actions proper under applicable Laws, to obtain consents
or provide notices or effect registrations and filing or remove impediments necessary to consummate the transactions contemplated
hereby as promptly as practicable following the date hereof. Each Party shall execute and deliver at the Closing documents required
to be executed and delivered by it as Closing conditions, shall take all steps necessary and proceed diligently and act in good
faith to satisfy each condition in Article VI and shall not take or fail to take any action that could reasonably be expected
to result in the non-fulfillment or delay of any such condition.

 

5.6             
Exclusivity. Without the prior written consent of the Company, during the period starting from the date hereof and
ending on the earlier date of (x) the Long Stop Date (as defined below), and (y) the date when this Agreement is terminated
in accordance with Section 8.1(a) (the “Exclusive Period”), neither Seller nor Seller Affiliate, or any
of their agents, representatives or advisors shall contact, discuss or negotiate with any third party (other than in connection
with the performance by Seller and Seller Affiliate under the Settlement Agreement or as required by any Law or Order under the
HK Lawsuit) with respect to (i) any transaction relating to the sale, acquisition, exchange, pledge, or transfer of any securities
of the Company held by Seller; or (ii) any contract, agreement, arrangement, understanding or other commitments relating to
potential disposal, voting, settlement or other arrangements in relation to shares of Common Stock held by Seller.

 

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During the Exclusive
Period, Seller and Seller Affiliate shall not, and shall cause their agents, representatives and advisors not to, take any action
to initiate, contact, induce, solicit, encourage, participate or assist any Person other than the Company and its affiliates in
any offer, inquires, discussions, proposals or negotiations in connection with any transaction, contract, agreement, arrangement
or commitments referred to above other than in connection with the performance by Seller and Seller Affiliate under the Settlement
Agreement or as required by any Law or Order under the HK Lawsuit. During the Exclusive Period, Seller shall not sell, transfer
or otherwise dispose or subject to any Encumbrance, any shares of Common Stock registered under the name of Seller, except that
such restriction shall not apply to any sale of such shares by Seller in accordance with the Order of any court of competent jurisdiction.

 

5.7             
Confidentiality. Except as otherwise required by applicable Law, or regulations of stock exchange, or otherwise permitted
by this Agreement, the Company, on the one hand, and Seller and Seller Affiliate, on the other hand, shall not disclose to any
third party any content or information in connection with this Agreement and the transactions contemplated hereby, or non-public
information relating to the other Party (“Confidential Information”) without the prior consent of the other
Party and shall keep Confidential Information strictly confidential. The Company may disclose Confidential Information to its and
its affiliates’ directors, officers, managers, employees, investors and potential investors and the Company, Seller and Seller
Affiliate may disclose Confidential Information to their respective professional advisers, accountants or lawyers on a need-to-know
basis; provided, however, that the disclosing Party shall ensure that such Persons are subject to the same confidentiality obligation
as they were under this Agreement. Notwithstanding anything herein to the contrary, the Parties acknowledge that (i) Seller
may be required to file with the SEC such schedules and forms as may be required under Section 13(d) and Section 16 of
the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), as applicable and (ii) the
Company may be required to file with the SEC such forms as may be required under the Exchange Act, each of which may need to disclose
information with respect to the transactions contemplated hereby and contain as an exhibit thereto a copy of this Agreement, and
nothing contained in this Section 5.7 is intended to limit or restrict such ability to file such schedules and forms or any
amendments thereto. To the extent practicable and permitted by applicable Law, prior to Seller’s or the Company’s disclosure
of Confidential Information to a Government Authority or stock exchange (including Seller’s or the Company’s disclosure
to the SEC), Seller or the Company shall notify each other in advance of such disclosure and shall obtain each other’s consent
with respect to the contents of such disclosure, which consent shall not be unreasonably withheld or delayed.

 

5.8             
No Claim by Seller or Seller Affiliate. Following Closing, which shall have occurred in accordance with the terms
and conditions of this Agreement, Seller and Seller Affiliate hereby irrevocably waive their right to, and undertake that they
shall not, make any claim (whether directly or indirectly through third parties) or take any other action against the Company,
its and its affiliates’ directors, officers, employees, shareholders, owners, representatives, agents or advisors, for any
reason or cause, other than with respect to any inaccuracy in or breach of any representation or warranty of the Company under
this Agreement, in connection with the Subject Shares, this Agreement or the transactions contemplated hereby.

 

5.9             
Stock-Splits, Reclassification or Reorganization. If after the date hereof and prior to Closing, the number of Common
Stock is increased or decreased as a result of a stock dividend, a subdivision or split-up of Common Stock, a consolidation, combination,
reverse stock split, reorganization or reclassification of Common Stock, a merger with or into or consolidation with another corporation
undertaken by the Company, or any other similar event, the number of Subject Shares to be sold by Seller hereunder and the Purchase
Price for such Subject Shares shall be appropriately and equitably adjusted to reflect the intent of the agreement set forth in
Section 2.1.

 

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5.10         
Performance of Settlement Agreement. Seller and Seller Affiliate shall, jointly and severally, duly perform all of
their obligations under the Settlement Agreement.

 

5.11         
Delivery of Share Certificates. Seller and Seller Affiliate shall use commercially reasonable efforts to cause the
Share Certificates to be delivered to the Company or the transfer agent of the Company on or prior to the Closing. The Company
shall use its commercially reasonable efforts to, upon the receipt by the Company or the Company’s transfer agent of the
relevant affidavit of lost stock certificate, assist Seller in obtaining a replacement certificate for Seller’s lost stock
certificate (Certificate No. 819) representing 215,000 shares of Common Stock or cancel such lost certificate and reissue to Seller
a new certificate representing such shares of Common Stock, including using its commercially reasonable efforts in causing the
Company’s transfer agent to waive any requirement for bond money from Seller in connection with such replacement or reissuance
certificate.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

6.1             
Conditions to Seller’s Obligations. The obligation of Seller to proceed with the Closing is subject to the
fulfillment, at or before the Closing, of each of the following conditions (all or any of which may be waived in whole or in part
by Seller jointly in their sole discretion):

 

(a)               
Representations and Warranties. Each of the representations and warranties made by the Company in this Agreement
shall be true and correct in all respects on and as of the Closing Date as though such representation or warranty was made on and
as of the Closing Date.

 

(b)              
Performance. The Company shall have performed and complied with each agreement, covenant and obligation required
by this Agreement to be so performed or complied with by it in all material respects at or before the Closing.

 

(c)               
Injunctions; Illegality. No provision of any applicable Law or Order shall restrain, enjoin or otherwise prohibit
the consummation of the Closing.

 

(d)              
Settlement Agreement. The Settlement Agreement shall be effective and valid.

 

6.2             
Conditions to the Company’s Obligations. The obligation of the Company to proceed with the Closing is subject
to the fulfillment, at or before the Closing, of each of the following conditions (all or any of which may be waived in whole or
in part by the Company in its sole discretion):

 

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(a)               
Representations and Warranties. Each of the representations and warranties made by Seller and Seller Affiliate in
this Agreement shall be true and correct in all respects on and as of the Closing Date as though such representation or warranty
was made on and as of the Closing Date.

 

(b)              
Performance. Seller and Seller Affiliate shall have performed and complied with each agreement, covenant and obligation
required by this Agreement to be so performed or complied with by Seller and Seller Affiliate at or before the Closing.

 

(c)               
Injunctions; Illegality. No provision of any applicable Law shall restrain, enjoin or otherwise prohibit the consummation
of the Closing. The injunction order issued on May 31, 2013 by the HK Court prohibiting Seller from disposing of, charging,
encumbering, pledging, transferring, diminishing the value of or otherwise dealing with the shares of Common Stock held in Seller’s
name shall have been lifted.

 

(d)              
Settlement Agreement. The Settlement Agreement shall be effective and valid.

 

ARTICLE VII

INDEMNIFICATION

 

7.1             
Indemnification by Seller and Seller Affiliate. Seller and Seller Affiliate shall indemnify the Company and each
of its and its affiliates’ directors, officers, employees, shareholders, owners, representatives, agents and advisors (collectively,
the “Indemnified Parties”) and save and hold each of them harmless against any direct losses (the “Losses”)
suffered, incurred or paid by the Indemnified Parties (including reasonable legal fees), arising from, as a result of or in connection
with: (i) any failure of any representation or warranty made by Seller and Seller Affiliate in Article III to be true and
correct in all respects as of the date hereof and as of the Closing Date; (ii) any breach of any covenant or agreement by
Seller or Seller Affiliate contained in this Agreement; (iii) the HK Lawsuit or the Settlement Agreement or (iv) any other
claims or actions with respect to Seller’s ownership of the Subject Shares.

 

7.2             
Limitation.

 

(a)               
The aggregate amount of all Losses for which Seller and Seller Affiliate shall be liable pursuant to Section 7.1 shall
not exceed 110% of the Purchase Price.

  

(b)              
Net payments by Seller and Seller Affiliate pursuant to Section 7.1 in respect of any Losses shall be limited to the
amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution
or other similar payment actually received by the Indemnified Parties in respect of any such claim. The Company shall, and shall
procure the other Indemnified Parties to, use its or their commercially reasonable efforts to recover under insurance policies
or indemnity, contribution or other similar agreements, if any, for any Losses and shall promptly refund any such recovery received
by the Indemnified Party to Seller and Seller Affiliate.

 

    	11

    	 

    

 

(c)               
In no event shall Seller or Seller Affiliate be liable to any Indemnified Party for any punitive, incidental, consequential,
special or indirect damages, including Loss of profit or opportunity.

 

7.3             
Exclusive Remedies. Subject to Section 8.7, the Company acknowledges and agrees that its sole and exclusive remedy
with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or obligation of Seller
and Seller Affiliate set forth herein, shall be pursuant to the indemnification provisions set forth in this Article VII.

 

ARTICLE VIII

GENERAL PROVISIONS

 

8.1             
Termination.

 

(a)               
This Agreement may be terminated and the transactions contemplated by this Agreement may be abandoned at any time prior
to the Closing:

 

(i)                
by a written agreement between the Parties;

 

(ii)              
by the Company or Seller if the Closing shall not have occurred by the date that is two (2) months following the date hereof
(the “Long Stop Date”); provided that the right to terminate this Agreement under this Section 8.1(a)(ii)
shall not be available to any Party whose failure to fulfill any obligation (including without limitation the obligations under
Section 5.5) under this Agreement shall be the cause of the failure of the Closing to occur on or before such date;

 

(iii)            
by the Company if there has been a breach of any material covenant or a breach of any material representation or warranty
or other agreement contemplated hereunder of Seller or Seller Affiliate, which breach would cause the failure of any condition
precedent set forth in Section 6.2;

 

(iv)            
automatically upon completion of transfer of any Subject Shares by Seller to any third party pursuant to the Order of a
court of competent jurisdiction after the date hereof; or

 

(v)              
automatically upon termination of the Settlement Agreement.

 

(b)              
In the event of termination of this Agreement as provided in Section 8.1(a), this Agreement shall forthwith become void,
and there shall be no liability or obligation on the part of the Parties hereto and, as applicable, the officers, directors and
shareholders of the Company; provided that (i) each Party shall remain liable for any breaches of this Agreement or in any other
instruments delivered pursuant to this Agreement prior to its termination; and (ii) the provisions of Section 5.7 and this
Article VIII shall remain in full force and effect and survive any termination of this Agreement. Notwithstanding anything to the
contrary in this Agreement, the Company agrees that neither Seller nor Seller Affiliate shall be held liable in the event that
this Agreement is terminated pursuant to Section 8.1(a)(iv).

 

    	12

    	 

    

 

8.2             
Amendment. This Agreement may be amended and any right hereunder extended or waived) by the Parties at any time by
execution of an instrument in writing signed on behalf of each Party.

 

8.3             
Expenses and Fees; Taxes. Unless otherwise agreed among the Parties, all fees and expenses incurred in connection
with the transactions contemplated by this Agreement, including all legal, accounting, financial advisory, consulting and all other
fees and expenses of third parties incurred by a Party in connection with the negotiation and effectuation of the terms and conditions
of this Agreement and the transactions contemplated hereby, shall be the obligation of the respective Party incurring such fees
and expenses. Each Party shall comply with all applicable tax Law and be responsible for and pay all of its own taxes and government
levies as required under applicable Law.

 

8.4             
Notices. All notices and other communications hereunder shall be in writing and shall be deemed given when delivered
personally or by commercial messenger or courier service, or mailed by registered or certified mail (return receipt requested)
or sent via facsimile or email (with acknowledgment of complete transmission) to the Parties at the following addresses or at such
other address for a Party as shall be specified by like notice); provided, however, that notices sent by mail will
not be deemed given until received:

 

If to Seller and/or
Seller Affiliate, to:

 

Mr. Tung Lam

Ms. Siuling Chan

c/o Dorsey & Whitney LLP

88 Queensway

Suite 3008 One Pacific Place

Hong Kong

Email: lam.tung@hotmail.com

Attention: Catherine X. Pan-Giordano, Esq.

 

If to the Company, to:

 

China Biologic Products, Inc.

18th Floor, Jialong International Building

19 Chaoyang Park Road

Chaoyang District, Beijing 100125

People’s Republic of China

Fax: +86-10-65983222

Attention: Chief Financial Officer

 

8.5             
Counterparts; Facsimiles. This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more counterparts have been signed by each Party and delivered
to the other Parties, it being understood that all Parties need not sign the same counterpart for it to be effective among the
Parties. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more Parties hereto and delivered
by such Party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such
Party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes.

 

    	13

    	 

    

 

8.6             
Severability. In the event that any provision of this Agreement or the application thereof, becomes or is declared
by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full
force and effect and the application of such provision to other Persons or circumstances will be interpreted so as reasonably to
effect the intent of the Parties. The Parties further agree to replace such void or unenforceable provision of this Agreement with
a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such
void or unenforceable provision.

 

8.7             
Specific Performance. The Parties hereto agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the Parties shall be entitled to seek an injunction or injunctions without the need to post any bond or other financial assurances
in order to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the
United States or any state, province or other locale, both U.S. and non-U.S., having jurisdiction, this being in addition to any
other remedy to which they are entitled at law or in equity.

 

8.8             
Governing Law; Dispute Resolution. This Agreement shall be governed by and construed in accordance with the laws
of New York State, without regard to the principle of conflict laws thereunder. All disputes between the Parties arising out of
or relating to this Agreement shall be finally settled at the Hong Kong International Arbitration Centre (the “Centre”)
in accordance with the Rules of Arbitration of the Center by one arbitrator appointed in accordance with said Arbitration Rules.
The place of arbitration shall be in Hong Kong. The arbitration shall be conducted in English. The resolution of any dispute by
arbitration pursuant to this Section 8.8 shall be non-appealable, final, binding and conclusive on the Parties to such dispute
and may be enforced and entered as a judgment in any court of law with jurisdiction thereof. Notwithstanding the foregoing, any
Party shall be free to seek interim or permanent equitable or injunctive relief, or both, from any court having jurisdiction to
grant the same.

 

8.9             
Entire Agreement; No Third Party Beneficiaries; Assignment. This Agreement and the documents and instruments and
other agreements among the Parties hereto referenced herein: (a) constitute the entire agreement among the Parties with respect
to the subject matter hereof and supersede all prior agreements and understandings both written and oral, among the Parties with
respect to the subject matter hereof; (b) are not intended to confer upon any other Person any rights or remedies hereunder; and
(c) shall not be assigned by operation of law or otherwise.

 

8.10         
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the Parties
to express their mutual intent, and no rules of strict construction will be applied against any Party.

 

    	14

    	 

    

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year
first above written.

 

	 	China Biologic Products, Inc.
	 	 
	 	 	 
	 	By:	/s/ David (Xiaoying) Gao
	 	Name: 	David (Xiaoying) Gao
	 	Title: 	Chief Executive Officer

 

 

 

 

[Signature Page to the Repurchase
Agreement]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year
first above written.

 

 

	 	Siu Ling Chan	 
	 	 	 
	 	/s/ Siu Ling Chan
	 	 
	 	Lam Tung	 
	 	 	 
	 	/s/ Lam Tung

 

 

 

 

[Signature Page to the Repurchase
Agreement]Exhibit 10.1

 

 AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”) is made as of the 6th day of February, 2014 (the “Effective Date”) by and
between Aeroflex Incorporated, a Delaware corporation, with its principal office located at 35 South Service Road, Plainview, NY
11803 (together with its successors and assigns permitted hereunder, “Aeroflex”), and Leonard Borow, who resides at
7582 Isla Verde Way, Delray Beach, Florida 33446 (hereinafter “Borow” and together with Aeroflex, the “Parties”).

 

WITNESSETH:

 

WHEREAS, the Parties entered into
an Employment Agreement made and entered into as of August 15, 2007, as last amended and restated on August 28, 2013 (the “Prior
Agreement”) under which the Parties agreed upon the terms pursuant to which Borow would be employed by Aeroflex as further
described therein, and

 

WHEREAS, the Parties desire to amend
and restate the Prior Agreement in its entirety as set forth herein.

 

NOW, THEREFORE, in consideration
of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually
acknowledged, the Parties agree as follows:

 

		1.	DEFINITIONS.

 

(a)          “Beneficiary”
shall mean the person or persons named by Borow pursuant to Section 15 below or, in the event that no such person is named
who survives Borow, his estate.

 

(b)          “Board”
shall mean the Board of Directors of Aeroflex.

 

(c)          “Cause”
shall mean:

 

(i)          Borow’s
conviction of a felony involving an act or acts of dishonesty on his part and resulting or intended to result directly or indirectly
in gain or personal enrichment at the expense of Aeroflex;

 

(ii)         willful
and continued failure of Borow to perform his obligations under this Agreement, resulting in demonstrable material economic harm
to Aeroflex; or

 

(iii)        a
material breach by Borow of the provisions of Sections 12 or 13 below to the demonstrable and material detriment of Aeroflex.

 

    	 

    	 

    

 

Notwithstanding the foregoing, in no event
shall Borow’s failure to perform the duties associated with his position caused by his Disability constitute Cause for his
termination.

 

For purposes of this Section 1(c), no act
or failure to act on the part of Borow shall be considered “willful” unless it is done, or omitted to be done, by him
in bad faith or without reasonable belief that his action or omission was in the best interests of Aeroflex. Any act or failure
to act based upon authority given pursuant to a resolution adopted by the Board or based upon the advice of counsel for Aeroflex
shall be conclusively presumed to be done, or omitted to be done, by Borow in good faith and in the best interests of Aeroflex.

 

(d)          “Change
in Control” (which in all respects shall satisfy the requirements of a “change in control event” as set
forth in Treasury Regulations § 1.409A-3(i)(5)), shall mean the occurrence of a “change in the ownership”, a “change
in the effective control” or a “change in the ownership of a substantial portion of the assets” of the Company
determined as follows:

 

(i)          a
“change in the ownership” of the Company shall occur on the date on which any one person or more than one person acting
as a group, directly or indirectly, acquires ownership of stock of the Company that, together with the stock held by such person
or group, constitutes more than 50%of the total fair market value or total voting power of the stock of the Company, as determined
in accordance with Treasury Regulations § 1.409A-3(i)(5)(v); provided, however, if any one person or more than one person
acting as a group is considered to own already more than 50% of the total fair market value or total voting power of the stock
of the Company, the acquisition of additional stock by the same person or persons is not considered to cause a “change in
the ownership” of the Company (or to cause a “change in the effective control” of the Company as contemplated
in (i) and (ii) below); provided, however, that the following acquisitions shall not constitute a Change in Control: (A) any acquisition
by or from the Company or any corporation or other entity in which the Company owns or controls, directly or indirectly, at least
50 percent of the total combined voting power represented by all classes of stock issued by such corporation, or in the case of
a noncorporate entity, at least 50% of the profits or capital interest in such entity or by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any subsidiary, (B) any acquisition by an individual who as of the Effective Date
is a member of the Board, (C) any acquisition by any underwriter in any firm commitment underwriting of securities to be issued
by the Company, or (D) any acquisition by any corporation (or other entity) if, immediately following such acquisition, 50% or
more of the then outstanding shares of common stock (or other equity unit) of such corporation (or other entity) and the combined
voting power of the then outstanding voting securities of such corporation (or other entity), are beneficially owned, directly
or indirectly, by all or substantially all of the individuals or entities who, immediately prior to such acquisition, were the
beneficial owners of the then outstanding voting securities of the Company in substantially the same proportions, respectively,
as their ownership immediately prior to the acquisition of the stock and Voting Securities (collectively with (A), (B), and (C),
the “Exempt Acquisitions”);

 

(ii)         a
“change in the effective control” of the Company shall occur on the date any one person, or more than one person acting
as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person
or persons) ownership of stock of the Company possessing 30 percent or more of the total voting power of the stock of the Company;
provided, however, that none of the Exempt Acquisitions shall constitute a Change in Control;

 

    	-2-

    	 

    

 

(iii)        a
“change in the effective control” of the Company shall occur on the date on which a majority of the members of the
Company’s Board of Directors is replaced during any 12 month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board of Directors before the date of the appointment or election, as determined
in accordance with Treasury Regulations § 1.409A-3(i)(vi); and

 

(iv)        a
“change in the ownership of a substantial portion of the assets” of the Company shall occur on the date on which any
one person or more than one person acting as a group, acquires (or has acquired during the 12 month period ending on the date of
the most recent acquisition by such person or persons), directly or indirectly, assets from the Company that have a total gross
fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately
before such acquisition or acquisitions, as determined in accordance with Treasury Regulation § 1.409A-3(i)(5) (viii); provided,
however, a transfer of assets shall not be treated as a “change in the ownership of a substantial portion of the assets”
of the Company when such transfer is made to an entity that is controlled by the shareholders of the Company, as determined in
accordance with Treasury Regulation § 1.409A-3(i)(5)(vii)(B).

 

(e)         
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

(f)          “Consulting
Period” shall mean the period specified in Section 11 below during which Borow serves as a consultant to Aeroflex. 

 

(g)          “Disability”
shall mean the illness or other mental or physical disability of Borow, as determined by a physician acceptable to Aeroflex and
Borow, resulting in his failure during the Employment Term or the Consulting Period, as the case may be, (i) to perform substantially
his applicable material duties under this Agreement for a period of 90 consecutive days or 180 days in any 12 month period and
(ii) to return to the performance of his duties within 30 days after receiving written notice of termination. Notwithstanding the
foregoing, no such condition shall be considered a “Disability,” unless such condition also meets the requirements
of being “Disabled” under Section 409A(a)(2)(C) of the Code.

 

(h)          “Employment
Term” shall mean the period specified in Section 2(b) below.

 

(i)           “Fiscal
Year” shall mean the 12-month period beginning on July 1 and ending on the next subsequent June 30, or such other 12-month
period as may constitute Aeroflex’s fiscal year at any time hereafter.

 

(j)           “Good
Reason” shall mean, at any time during the Employment Term, without Borow’s prior written consent or his acquiescence:

 

    	-3-

    	 

    

 

(i)          reduction
in his then current Salary;

 

(ii)         diminution,
reduction or other adverse change in the bonus or incentive compensation opportunities available to Borow (with respect to the
level of bonus or incentive compensation opportunities, the applicable performance criteria and otherwise the manner in which bonuses
and incentive compensation are determined) in the aggregate from those available as of the Effective Date in accordance with Section
4(a) below;

 

(iii)        Aeroflex’s
failure to pay Borow any amounts otherwise vested and due him hereunder or under any plan or policy of Aeroflex;

 

(iv)        diminution
of Borow’s titles, position, authorities or responsibilities, including not serving on the Board;

 

(v)         assignment
to Borow of duties incompatible with his position as a senior executive officer;

 

(vi)        imposition
of a requirement that Borow report other than directly to Aeroflex’s Board;

 

(vii)       a
material breach of the Agreement by Aeroflex that is not cured within 10 business days after written notification by Borow of such
breach; or

 

(viii)      relocation
of Aeroflex’s corporate headquarters to a location more than 35 miles from the location first above described;

 

provided, that the divesture by Aeroflex of
assets representing up to sixty percent (60%) of Aeroflex’s EBITDA shall not result in a diminution of Borow’s positions,
authorities or responsibilities.

 

Borow shall provide Aeroflex written notice
specifying such event or deficiency constituting Good Reason within ninety (90) days following Borow’s knowledge of the occurrence
of such event and Aeroflex shall have thirty (30) days after receipt of such notice to cure the event or deficiency that would
result in Good Reason.

 

(k)          “Retirement”
shall mean the voluntary termination of Borow’s employment, other than due to Disability, death or for Good Reason.

 

(l)          
“Salary” shall mean the annual salary provided for in Section 3 below, as adjusted from time to time.

 

(m)        
“Spouse” shall mean, during the Employment Term and the Consulting Period, the woman who as of any relevant date is
legally married to Borow. 

 

(n)         
“Subsidiary” shall mean any corporation of which Aeroflex owns, directly or indirectly, more than 50 percent of its
voting stock.

 

    	-4-

    	 

    

 

		2.	EMPLOYMENT TERM, POSITIONS AND DUTIES.

 

(a)          Employment
of Borow. Aeroflex hereby continues to employ Borow, and Borow hereby accepts continued employment with Aeroflex, in the
positions and with the duties and responsibilities set forth below and upon such other terms and conditions as are hereinafter
stated. Borow shall render services to Aeroflex principally at Aeroflex’s corporate headquarters, but he shall do such traveling
on behalf of Aeroflex as shall be reasonably required in the course of the performance of his duties hereunder.

 

(b)          Employment
Term. The Employment Term shall terminate on August 15, 2015. In addition, the Employment Term shall automatically terminate upon
any termination of Borow’s employment pursuant to Section 8.

 

(c)          Titles
and Duties.

 

(i)          Until
the date of termination of his employment hereunder, Borow shall be employed as the Chief Executive Officer of Aeroflex, reporting
to the Board. In his capacity as the Chief Executive Officer, Borow shall have the customary powers, responsibilities and authorities
of chief executive officers of corporations of the size, type and nature of Aeroflex including, without limitation, authority,
in conjunction with the Board as appropriate, to hire and terminate other employees of Aeroflex.

 

(ii)         During the Employment Term, until a
Change in Control, Borow shall be a member of the Board of Directors of Aeroflex Holding Corp and the Board of Managers of VGG
Holding LLC.

 

(d)          Time
and Effort.

 

(i)          Borow
agrees to devote his best efforts and abilities and his full business time and attention to the affairs of Aeroflex in order to
carry out his duties and responsibilities under this Agreement.

 

(ii)         Notwithstanding
the foregoing, nothing shall preclude Borow from (A) serving on the boards of a reasonable number of trade associations, charitable
organizations and/or businesses not in competition with Aeroflex, (B) engaging in charitable activities and community affairs and
(C) managing his personal investments and affairs; provided, however, that, such activities do not materially interfere with the
proper performance of his duties and responsibilities specified in Section 2 (c) above.

 

		3.	SALARY.

 

(a)          Salary.
Borow shall receive from Aeroflex an annual Salary, payable in accordance with the regular payroll practices of Aeroflex,
in a minimum amount of $525,000. The Board agrees to review Borow’s Salary annually during the Employment Term and Borow’s
Salary may be increased (but not decreased) by the Board in its sole discretion.

 

(b)          Salary
Increase. Any amount to which Borow’s Salary is increased, as provided in Section 3(a) above or otherwise, shall not
thereafter be reduced without his consent, and the term “Salary” as used in this Agreement shall refer to his Salary
as thus increased. Pursuant to increases since the commencement of the Prior Agreement, Borow’s annual Salary as of the Effective
Date, is $650,000.

 

    	-5-

    	 

    

 

		4.	BONUS.

 

(a)          For
the 2014 Fiscal Year, Borow shall be eligible to receive an annual bonus of between 50% and 150% of his Base Salary based upon
the achievement of the Company’s EBITDA targets for the 2014 Fiscal Year as established by the Board. More particularly,
(i) 50% of Borow’s 2014 Base Salary will be awarded to Borow as a bonus if the Company’s 2014 EBITDA is equal to the
minimum 2014 EBITDA target established by the Board (the “Threshold EBITDA”); (ii) 100% of Borow’s Base Salary
will be awarded as a bonus if the Company’s 2014 EBITDA is equal to the 2014 EBITDA Target established by the Board (the
“ EBITDA Target” or the “2014 Target Bonus”); and (iii) 150% of Borow’s Base Salary will be awarded
to Borow as a bonus if the Company’s 2014 EBITDA is equal to or greater than the maximum 2014 EBITDA Target established by
the Board (the “Maximum EBITDA”). Borow’s 2014 bonus shall be determined by linear interpolation if the Company’s
2014 EBITDA is between the Threshold EBITDA and the EBITDA Target or between the EBITDA Target and the Maximum EBITDA, as the case
may be. No annual bonus will be paid if the Company’s 2014 EBITDA is below the Threshold EBITDA for the 2014 Fiscal Year.
The EBITDA Target shall be subject to equitable redetermination by the Board in the event of any divestiture, acquisition or other
extraordinary event and to such modification, as may be appropriate, to reflect various types of accounting adjustments that historically
and otherwise have been or are approved by the Compensation Committee.

 

(b)          Beginning
with Fiscal Year 2015 and for each Fiscal Year thereafter, during the term of Borow’s employment hereunder, Borow shall be
eligible to earn an annual performance bonus (the “Performance Bonus”). The target amount of such annual bonus (if
any) will be 100% percent of Borow’s Base Salary for the applicable fiscal year (the “Target Bonus”). The minimum
amount of such annual bonus will be 50% percent of Borow’s Base Salary for the applicable fiscal year (the “Minimum
Bonus”) and the maximum amount of such annual bonus will be 150% percent of Borow’s Base Salary for the applicable
fiscal year (the “Maximum Bonus”). The terms and conditions of the Performance Bonus will be as set forth in the Company’s
applicable performance bonus plan, as the Company may adopt from time to time.

 

(c)          Any
annual bonus payable pursuant to this Section 4 shall be paid on or prior to March 15 of the year following the year such bonus
is earned.

 

		5.	EXPENSE REIMBURSEMENT; CERTAIN OTHER COSTS

 

During the Employment Term and any Consulting
Period, Borow shall be entitled to prompt reimbursement by Aeroflex for all reasonable out-of-pocket expenses incurred by him in
performing services under this Agreement, upon his submission of such accounts and records as may be reasonably required by Aeroflex.
In addition, Borow shall be entitled to payment by Aeroflex of all reasonable costs and expenses, including attorneys’ and
consultants’ fees and disbursements, incurred by him in connection with adoption of this Agreement.

 

    	-6-

    	 

    

 

		6.	PERQUISITES.

 

(a)          During
the Employment Term and, any Consulting Period, Aeroflex shall provide Borow with the following perquisites:

 

(i)          an
office of a size and with furnishings and other appointments, and exclusive personal secretarial and other assistance, at least
equal to that provided to Borow by Aeroflex immediately prior to the Effective Date; and

 

(ii)         the
use of an automobile and payment of related expenses on the same terms as are in effect immediately prior to the Effective Date
or, if more favorable to Borow, as are made available generally to other executive officers of Aeroflex at any time thereafter.

 

(b)          During
the Employment Term, Borow shall be entitled to use a plane maintained by Aeroflex for 10 hours per year, unused hours may be rolled
forward into future years. Borow shall pay Aeroflex an amount for such use equal to the minimum amount of income imputed for such
use as determined under applicable federal and state rules and regulations (the “Minimum Imputed Income Amount”). In
the event Aeroflex does not maintain a plane, as long as Borow is employed by Aeroflex, then Aeroflex shall annually reimburse
Executive for the cost associated with the use of a comparable plane for up to 10 hours less the Minimum Imputed Income Amount;
provided, however, that, if Borow does not use the full ten hours in any given year, Aeroflex shall pay Borow the Minimum Imputed
Income Amount for such unused hours. Any payments required under this Section 6(b) shall be made prior to the end of the calendar
year for which such payments relate.

 

		7.	EMPLOYEE BENEFIT PLANS.

 

(a)         
General. During the Employment Term, Borow shall be entitled to participate in all
employee benefit plans and programs that are made available to Aeroflex’s senior executives or to its employees generally,
as such plans or programs may be in effect from time to time, including, without limitation, pension and other retirement plans,
profit-sharing plans, savings and similar plans, group life insurance, accidental death and dismemberment insurance, travel accident
insurance, hospitalization insurance, surgical insurance, major and excess major medical insurance, dental insurance, short-term
and long-term disability insurance, sick leave (including salary continuation arrangements), holidays, vacation (not less than
four weeks in any calendar year) and any other employee benefit plans or programs that may be sponsored by Aeroflex from time to
time, including plans that supplement the above-listed types of plans, whether funded or unfunded.

 

(b)          Medical
Care Reimbursement and Insurance. During the Employment Term and Consulting Period, Aeroflex shall reimburse Borow
for 100 percent of any medical expenses (that are medically necessary in the opinion of a medical doctor) incurred by him for himself
and his Spouse that are not reimbursed by insurance or otherwise, offset by any amounts that are reimbursable by Medicare. Subject
to Borow’s compliance with Sections 12 and 13 and the execution of a general release in favor of Aeroflex, its affiliates
and their current and former officers, directors and employees, in substantially the form attached as Exhibit A, which is not revoked,
Aeroflex shall provide Borow and his Spouse during his lifetime with hospitalization insurance, surgical insurance, major and excess
major medical insurance and dental insurance in accordance with the most favorable plans, policies, programs and practices of Aeroflex
and its Subsidiaries made available generally to other senior executive officers of Aeroflex and its Subsidiaries as in effect
from time to time. Any payments required to be made under this Section 7(b) shall be made no later than the end of the calendar
year after the calendar year in which such expense is incurred.

 

    	-7-

    	 

    

 

(c)          Life
Insurance Benefit. In addition to the group life insurance available to employees generally, Aeroflex shall provide
Borow with an individual permanent life insurance benefit in an initial amount of not less than approximately $1,000,000, the terms
and conditions of such benefit to be more fully described in an insurance ownership agreement between Borow and Aeroflex.

 

(d)          Disability
Benefit. In consideration of the benefit payable to Borow in the event of termination of his employment due to Disability,
as provided in Section 8(e) below, or, if applicable, in the event of termination of Borow’s consulting services due to Disability
during the Consulting Period, as provided in Section 11(d) below, Aeroflex shall not be obligated to provide Borow with long-term
disability insurance. Notwithstanding the foregoing, if Aeroflex does provide Borow with such insurance, he shall be the owner
of any individual policies obtained and shall pay the premiums thereon.

 

		8.	TERMINATION OF EMPLOYMENT.

 

(a)          Termination
by Mutual Agreement. The Parties may terminate this Agreement by mutual agreement at any time. If they do so, Borow’s entitlements
shall be as the Parties mutually agree. 

 

(b)          General.
Notwithstanding anything to the contrary herein, in the event of termination of Borow’s employment under this Agreement,
he or his Beneficiary, as the case may be, shall be entitled to receive (in addition to payments and benefits under subsections
(c) through (h) below, as applicable):

 

(i)          his
Salary through the date of termination;

 

(ii)         any
unused vacation from prior years;

 

(iii)        any
reimbursements payable in accordance with Sections 5 above of any business expenses incurred by Borow, through the date of termination
but not yet paid to him;

 

(iv)        any
other compensation or benefits, including without limitation employee benefits under plans described in Section 7 above, that have
vested through the date of termination or to which he may then be entitled in accordance with the applicable terms and conditions
of each grant, award or plan; and

 

(v)         reimbursement
in accordance with Sections 7(a) and (b) above of any business and medical expenses incurred by Borow or his Spouse, as applicable,
through the date of termination but not yet paid to him.

 

    	-8-

    	 

    

 

(c)          Termination
due to Retirement. In the event that Borow’s employment terminates due to Retirement, he shall be entitled, in addition to
the compensation and benefits specified in Section 8(b), to any annual bonus for the current Fiscal Year based on actual performance
of Aeroflex, prorated to the date of termination. The Consulting Period shall begin on the day following termination of Borow’s
employment by Retirement.

 

(d)          Termination
due to Death. In the event that Borow’s employment terminates due to his death, his Beneficiary shall be entitled, in addition
to the compensation and benefits specified in Section 8(b), to any annual bonus for the current Fiscal Year based on actual performance
of Aeroflex, prorated to the date of termination.

 

(e)          Termination
due to Disability. In the event of Disability, Aeroflex or Borow may terminate Borow’s employment. If Borow’s employment
terminates due to Disability, he shall be entitled, in addition to the compensation and benefits specified in Section 8(b), to
any annual bonus for the current Fiscal Year based on actual performance of Aeroflex, prorated to the date of termination.

 

(f)          Termination
by Aeroflex for Cause. Aeroflex may terminate Borow’s employment hereunder for Cause only upon written notice to Borow prior
to any intended termination, which notice shall specify the grounds for such termination in reasonable detail. Cause shall in no
event be deemed to exist except upon a finding reflected in a resolution approved by a majority (excluding Borow) of the members
of the Board (whose findings shall not be binding upon or entitled to any deference by any court, arbitrator or other decision-maker
ruling on this Agreement) at a meeting of which Borow shall have been given proper notice and at which Borow (and his counsel)
shall have a reasonable opportunity to present his case.

 

 In
the event that Borow’s employment is terminated for Cause, he shall be entitled only to the compensation and benefits specified
in Section 8(b).

 

(g)          Termination
Without Cause or by Borow for Good Reason.

 

(i)          Termination
without Cause shall mean termination of Borow’s employment by Aeroflex and shall exclude termination (A) due to Retirement,
death, Disability or Cause or (B) by mutual agreement of Borow and Aeroflex. Aeroflex shall provide Borow 15 days’ prior
written notice of termination by it without Cause, and Borow shall provide Aeroflex 30 days’ prior written notice of his
termination for Good Reason.

 

(ii)         In
the event of termination by Aeroflex of Borow’s employment without Cause or of termination by Borow of his employment for
Good Reason, except
in either such case within six (6) months prior or eighteen (18) months following a Change in Control,
subject to Borow’s execution and nonrevocation of a general release in favor of Aeroflex, its affiliates
and their current and former officers, directors and employees, in substantially the form attached hereto as Exhibit A within
30 days following the date of such termination, Borow shall be entitled, commencing, notwithstanding any provision to the contrary
in Sections 8(g)(ii)(A)-(D), on the 30th day following such termination of employment (provided that, payments or benefits that
would otherwise have been owed to Borow prior to the 30th day after termination of employment shall be made to or on behalf of
Borow on the 30th day after his termination of employment), in addition to the compensation and benefits specified in Section
8(b), to the following payments and benefits:

 

    	-9-

    	 

    

 

(A)         his
Salary, payable for the remainder of the Employment Term (assuming Borow’s employment had not terminated) at the rate in
effect immediately before such termination;

 

(B)         annual
bonuses for the remainder of the Employment Term (assuming Borow’s employment had not terminated) (including a prorated bonus
for any partial Fiscal Year) equal to the average of the highest annual bonuses (not to exceed 3 years) awarded to him during the
Fiscal Years (not to exceed 10 years) commencing after August 15, 2007 (including, without limitation, any bonus awarded to Borow
in the year of termination, which is unpaid as of the date of termination), such bonuses to be paid at the same time annual bonuses
are regularly paid by Aeroflex to Borow;

 

(C)         continued
medical reimbursement for the remainder of the Employment Term (assuming Borow’s employment had not terminated) and thereafter
the lifetime medical benefits described in Section 7(b) above;

 

(D)         continued
participation in all employee benefit plans or programs available to Aeroflex employees generally in which Borow was participating
on the date of termination of his employment until the end of the Employment Term (assuming Borow’s employment had not terminated);
provided; however, that (x) if Borow is precluded from continuing his participation in any employee benefit plan or program as
provided in this clause (D), he shall be entitled to the after-tax economic equivalent, paid in a lump sum on the 30th day following
termination of Borow’s employment, of the benefits under the plan or program in which he is unable to participate until the
end of the Employment Term, and (y) the economic equivalent of any benefit foregone shall be deemed to be the lowest cost that
Borow would incur in obtaining such benefit on an individual basis; and

 

(E)         other
benefits in accordance with applicable plans and programs of Aeroflex.

 

(iii)        Prior
written consent by Borow to any of the events described in Section 1(j) above shall be deemed a waiver by him of his right to terminate
for Good Reason under Sections 8(g) or 8(h), as applicable, solely by reason of the events set forth in such waiver.

 

    	-10-

    	 

    

 

(h)          Termination
Without Cause or by Borow for Good Reason in Connection with a Change in Control.  In the event there shall
be, and only upon the occurrence of, a Change in Control then, if the Executive’s employment is terminated by the Company
without Cause, or by the Executive for Good Reason, in either case within six (6) months prior thereto or within eighteen (18)
months thereafter, subject to Section 10, Borow shall be entitled, commencing, notwithstanding any provision to the contrary in
this Section, on the 30th day following such termination of employment (provided that, payments or benefits that would otherwise
have been owed to Borow prior to the 30th day after termination of employment shall be made to or on behalf of Borow on the 30th
day after his termination of employment), in addition to the compensation and benefits specified in Section 8(b), to the following
payments and benefits: (i) severance payments equal in the aggregate to two times the Executive’s Base Salary paid in equal
monthly installments over the remaining Employment Term, (ii) a payment equal to two times the Executive’s the Target Bonus,
such amount to be paid at the same time the annual bonus would have otherwise been paid by Aeroflex to Borow for the year in which
Borow’s termination occurs, (iii) an unpaid bonus, in the amount of the Target Bonus, applicable for the Fiscal Year in which
the Date of Termination occurs, prorated to the Date of Termination, such bonus, if any, to be paid at the time that the Company
pays bonuses to other senior executives of the Company, (iv) continued medical reimbursement for a period of eighteen (18) months
following the Date of Termination (assuming Borow’s employment had not terminated) and thereafter the lifetime medical benefits
described in Section 7(b) above, (v) continued participation in all employee benefit plans or programs available to Aeroflex employees
generally in which Borow was participating on the date of termination of his employment for a period of eighteen (18) months following
the Date of Termination (assuming Borow’s employment had not terminated); provided; however, that (x) if Borow is precluded
from continuing his participation in any employee benefit plan or program as provided in this clause (v), he shall be entitled
to the after-tax economic equivalent, paid in a lump sum on the 30th day following termination of Borow’s employment, of
the benefits under the plan or program in which he is unable to participate until the end of such eighteen (18) month period, and
(y) the economic equivalent of any benefit foregone shall be deemed to be the lowest cost that Borow would incur in obtaining such
benefit on an individual basis, and (vi) other benefits in accordance with applicable plans and programs of Aeroflex.

 

(i)          Payments;
Compliance with Section 409A of the Code. Notwithstanding anything herein to the contrary, if (i) Borow is to receive payments
or benefits under Section 8 by reason of his separation from service (as such term is defined in Section 409A of the Code) other
than as a result of his death, (ii) Borow is a “specified employee” within the meaning of Code Section 409A for the
period in which the payment or benefits would otherwise commence, and (iii) such payment or benefit would otherwise subject Borow
to any tax, interest or penalty imposed under Section 409A of the Code (or any regulation promulgated thereunder) if the payment
or benefit would commence within six months of a termination of Borow’s employment, then such payment or benefit required
under Section 8 shall not commence until the first day which is at least six months after the termination of Borow’s employment.
Such payments or benefits, which would have otherwise been required to be made over such six month period, shall be paid to Borow
in one lump sum payment or otherwise provided to Borow as soon as administratively feasible after the first day which is at least
six months after the termination of Borow’s employment. Thereafter, the payments and benefits shall continue, if applicable,
for the relevant period set forth in Section 8. For purposes of this Agreement, all references to “termination of employment”
and other similar language shall be deemed to refer to Borow’s “separation from service” as defined in Treasury
Regulation Section 1.409A-1(h).

 

		9.	NO DUTY TO MITIGATE; NO OFFSET.

 

Borow shall not be required to mitigate damages
or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor will any payment hereunder
be subject to offset in the event Borow does receive compensation for services from any other source.

 

    	-11-

    	 

    

 

		10.	PARACHUTE PAYMENTS.

 

If, in connection with a Change in Control,
Aeroflex determines in good faith that any payments or benefits (whether made or provided pursuant to this Agreement or otherwise)
(each a “Payment”) provided to Borow constitute “parachute payments” within the meaning of Section 280G
of the Code, and may be subject to an excise tax imposed pursuant to Section 4999 of the Code (the “Excise Tax”) or
to any similar tax imposed by state or local law, then the aggregate amount of Payments payable to Borow shall be reduced to the
aggregate amount of Payments that may be made to Borow without incurring an Excise Tax; provided, however, that such reduction
shall only be effected if the aggregate after-tax value of the Payments retained by Borow (after giving effect to such reduction)
is equal to or greater than the aggregate after-tax value (after giving effect to the Excise Tax) of the Payments to Borow without
any such reduction, as determined by Aeroflex’s auditors. Any such reduction in the preceding sentence shall be done first
by reducing any cash payments with the last payment reduced first; next any equity or equity derivatives that are included under
Section 280G of the Code at full value rather than accelerated value; next any equity or equity derivatives based on acceleration
value shall be reduced with the highest value reduced first (as such values are determined under Treasury Regulation Section 1.280G-1,
Q&A 24); finally any other non-cash benefits will be reduced.

 

		11.	CONSULTING PERIOD. 

 

(a)          General.
Effective upon the end of the Employment Term (but only if the Employment Term ends by reason of its expiration or, if earlier,
upon termination of Borow’s employment (i) by mutual agreement or (ii) by Retirement), Borow shall become a consultant to
Aeroflex, in recognition of the continued value to Aeroflex of his extensive knowledge and expertise. Unless earlier terminated,
as provided in Section 11(e), the Consulting Period shall continue for three years.

 

(b)          Duties
and Extent of Services.

 

(i)          During
the Consulting Period, Borow shall consult with Aeroflex and its senior executive officers regarding its respective businesses
and operations. Such consulting services shall not require more than 50 days in any calendar year, nor more than one day in any
week, it being understood and agreed that during the Consulting Period Borow shall have the right, consistent with the prohibitions
of Sections 12 and 13 below, to engage in full-time or part-time employment with any business enterprise that is not a competitor
of Aeroflex.

 

(ii)         Borow’s
service as a consultant shall only be required at such times and such places as shall not result in unreasonable inconvenience
to him, recognizing that he may have to accord priority to his other business commitments over the performance of services for
Aeroflex. In order to minimize interference with Borow’s other commitments, his consulting services may be rendered by personal
consultation at his residence or office wherever maintained, or by correspondence through mail, telephone, fax or other similar
mode of communication at times, including weekends and evenings, most convenient to him.

 

    	-12-

    	 

    

 

(iii)        During
the Consulting Period, Borow shall not be obligated to serve as a member of the Board or to occupy any office on behalf of Aeroflex
or any of its Subsidiaries.

 

(c)          Compensation.
During the Consulting Period, Borow shall receive from Aeroflex each year an amount equivalent to two-thirds of his Salary at the
end of the Employment Term, payable and subject to annual increase as provided in Section 3 above.

 

(d)          Disability.
In the event of Disability during the Consulting Period, Aeroflex or Borow may terminate Borow’s consulting services. If
Borow’s consulting services are terminated due to Disability, he shall be entitled to compensation, in accordance with Section
11(c), for the remainder of the Consulting Period.

 

(e)          Termination.
The Consulting Period shall terminate after three years or, if earlier, upon Borow’s death or upon his failure to
perform consulting services as provided in Section 11(b), pursuant to 30 days’ written notice by Aeroflex to Borow of the
grounds constituting such failure and reasonable opportunity afforded Borow to cure the alleged failure. Upon any such termination,
payment of consulting fees and benefits (with the exception of lifetime medical benefits under Section 7(b) above) shall cease.

 

(f)          Other.
During the Consulting Period, Borow shall be entitled to expense reimbursement (including secretarial, telephone and similar
support services) and perquisites and medical benefits, pursuant to the terms of Sections 5, 6(a) and 7(b), respectively.

 

		12.	CONFIDENTIAL INFORMATION. 

 

(a)          General.

 

(i)          Borow
understands and hereby acknowledges that as a result of his employment with Aeroflex he will necessarily become informed of and
have access to certain valuable and confidential information of Aeroflex and any of its Subsidiaries, joint ventures and affiliates,
including, without limitation, inventions, trade secrets, technical information, computer software and programs, know-how and plans
(“Confidential Information”), and that any such Confidential Information, even though it may be developed or otherwise
acquired by Borow, is the exclusive property of Aeroflex to be held by him in trust solely for Aeroflex’s benefit.

 

(ii)         Accordingly,
Borow hereby agrees that, during the Employment Term and the Consulting Period and subsequent to both, he shall not, and shall
not cause others to, use, reveal, report, publish, transfer or otherwise disclose to any person, corporation or other entity any
Confidential Information without prior written consent of the Board, except to (A) responsible officers and employees of Aeroflex
or (B) responsible persons who are in a contractual or fiduciary relationship with Aeroflex or who need such information for purposes
in the interest of Aeroflex. Notwithstanding the foregoing, the prohibitions of this clause (ii) shall not apply to any Confidential
Information that becomes of general public knowledge other than from Borow or is required to be divulged by court order or administrative
process; provided that Borow shall give prompt written notice to Aeroflex of such requirement, disclose no more
information than is so required, and cooperate with any attempts by Aeroflex to obtain a protective order or similar treatment.

 

    	-13-

    	 

    

 

(b)          Return
of Documents. Upon termination of his employment with Aeroflex for any reason or, if applicable, upon expiration of the Consulting
Period, Borow shall promptly deliver to Aeroflex all plans, drawings, manuals, letters, notes, notebooks, reports, computer programs
and copies thereof and all other materials, including without limitation those of a secret or confidential nature, relating to
Aeroflex’s business that are then in his possession or control.

 

(c)          Remedies
and Sanctions. In the event that Borow is found to be in violation of Section 12(a) or (b) above, Aeroflex shall be entitled to
relief as provided in Section 14 below.

 

		13.	NONCOMPETITION/NONSOLICITATION.

 

(a)          Prohibitions.
During Borow’s employment with Aeroflex and, if applicable, the Consulting Period and until two years following the Borow’s
termination of employment for any reason or the Consulting Period, as applicable, Borow shall not, without prior written authorization
of the Board, directly or indirectly, 

 

(i)          whether
individually, as a director, manager, member, stockholder, partner, owner, employee, consultant or agent of any business, or in
any other capacity, other than on behalf of Aeroflex or a subsidiary, organize, establish, own, operate, manage, control, engage
in, participate in, invest in, permit his name to be used by, act as a consultant or advisor to, render services for (alone or
in association with any person, firm, corporation or business organization), or otherwise assist any person or entity that engages
in or owns, invests in, operates, manages or controls any venture or enterprise which engages or proposes to engage in any business
conducted by Aeroflex or any of its subsidiaries on the date of Borow’s termination of employment or within twelve (12) months
of Borow’s termination of employment in the geographic locations where Aeroflex and its subsidiaries engage or propose to
engage in such business; 

 

(ii)         solicit
or induce any customer of Aeroflex to cease purchasing goods or services from Aeroflex or to become a customer of any competitor
of Aeroflex; or

 

(iii)        solicit
or attempt to solicit any employee of Aeroflex or any of its subsidiaries (a “Current Employee”) or any person who
was an employee of Aeroflex or any of its subsidiaries during the twelve (12) month period immediately prior to the date Borow’s
employment terminates (a “Former Employee”) to terminate such employee’s employment relationship with Aeroflex
in order, in either case, to enter into a similar relationship with Borow, or any other person or any entity or hire any employee
or Former Employee. 

 

(b)          Remedies
and Sanctions. In the event that Borow is found to be in violation of Section 13(a) above, Aeroflex shall be entitled to
relief as provided in Section 14 below.

 

(c)          Exceptions.
Notwithstanding anything to the contrary in Section 13(a) above, its provisions shall not be construed as preventing Borow
from investing his assets in any business that is not a direct competitor of Aeroflex.

 

    	-14-

    	 

    

 

		14.	REMEDIES/SANCTIONS.

 

Borow acknowledges that the services he is
to render under this Agreement are of a unique and special nature, the loss of which cannot reasonably or adequately be compensated
for in monetary damages, and that irreparable injury and damage may result to Aeroflex in the event of any breach of this Agreement
or default by Borow. Because of the unique nature of the Confidential Information and the importance of the prohibitions against
competition and solicitation, Borow further acknowledges and agrees that Aeroflex will suffer irreparable harm if he fails to comply
with his obligations under Section 12(a) or (b) above or Section 13(a) above and that monetary damages would be inadequate to compensate
Aeroflex for any such breach. Accordingly, Borow agrees that, in addition to any other remedies available to either Party at law,
in equity or otherwise, Aeroflex will be entitled to seek injunctive relief or specific performance to enforce the terms (without
the posting of a bond), or prevent or remedy the violation, of any provisions of this Agreement. In addition, without limiting
Aeroflex’s remedies for any breach of any restriction on Borow set forth in Sections 12(a) or (b) above or Section 13(a)
above, except as required by law, Aeroflex will have no obligation to pay or provide any of the amounts or benefits under Sections
7 or 8 above.

 

		15.	BENEFICIARIES/REFERENCES.

 

Borow shall be entitled to select (and change,
to the extent permitted under any applicable law) a Beneficiary or Beneficiaries to receive any compensation or benefit payable
under this Agreement following his death by giving Aeroflex written notice thereof; provided, however, that absent any then effective
contrary notice, his Beneficiary shall be his surviving Spouse. In the event of Borow’s death, or of a judicial determination
of his incompetence, reference in this Agreement to Borow shall be deemed to refer, as appropriate, to his Beneficiary, estate
or other legal representative.

 

		16.	WITHHOLDING TAXES.

 

All payments to Borow or his Beneficiary under
this Agreement shall be subject to withholding on account of federal, state and local taxes as required by law.

 

		17.	INDEMNIFICATION AND LIABILITY INSURANCE. 

 

Nothing herein is intended to limit Aeroflex’s
indemnification of Borow, and Aeroflex shall indemnify him to the fullest extent permitted by applicable law consistent with Aeroflex’s
Certificate of Incorporation and By-Laws as in effect on the Effective Date, with respect to any action or failure to act on his
part while he is an officer, director or employee of Aeroflex or any Subsidiary. Aeroflex shall cause Borow to be covered at all
times by directors’ and officers’ liability insurance on terms no less favorable than provided to other directors’
and officers’. Aeroflex shall continue to indemnify Borow as provided above and maintain such liability insurance coverage
for him after the Employment Term and, if applicable, the Consulting Period, for any claims that may be made against him with respect
to his service as a director or officer of Aeroflex or as a consultant to Aeroflex.

 

    	-15-

    	 

    

 

		18.	EFFECT OF AGREEMENT ON OTHER BENEFITS.

 

The existence of this Agreement shall not
prohibit or restrict Borow’s entitlement to participate fully in compensation, employee benefit and other plans of Aeroflex
in which senior executives are eligible to participate.

 

		19.	ASSIGNABILITY; BINDING NATURE.

 

This Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors, heirs (in the case of Borow) and assigns. No rights or obligations
of Aeroflex under this Agreement may be assigned or transferred by Aeroflex except pursuant to (a) a merger or consolidation
in which Aeroflex is not the continuing entity or (b) sale or liquidation of all or substantially all of the assets of Aeroflex,
provided that the surviving entity or assignee or transferee is the successor to all or substantially all of the assets of Aeroflex
and such surviving entity or assignee or transferee assumes the liabilities, obligations and duties of Aeroflex under this Agreement,
either contractually or as a matter of law.

 

		20.	REPRESENTATIONS.

 

The Parties respectively represent and warrant
that each is fully authorized and empowered to enter into this Agreement and that the performance of its or his obligations, as
the case may be, under this Agreement will not violate any agreement between such Party and any other person, firm or organization.
Aeroflex represents and warrants that this Agreement has been duly authorized by all necessary corporate action and is valid, binding
and enforceable in accordance with its terms. 

 

		21.	ENTIRE AGREEMENT.

 

Except to the extent otherwise provided herein,
this Agreement contains the entire understanding and agreement between the Parties concerning the subject matter hereof and supersedes
any prior agreements, whether written or oral, between the Parties concerning the subject matter hereof, including without limitation
the Prior Agreement, as amended. Payments and benefits provided under this Agreement are in lieu of any payments or other benefits
under any severance program or policy of Aeroflex to which Borow would otherwise be entitled.

 

		22.	AMENDMENT OR WAIVER.

 

No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by both Borow and an authorized officer of Aeroflex. No waiver by either
Party of any breach by the other Party of any condition or provision contained in this Agreement to be performed by such other
Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any
waiver must be in writing and signed by the Party to be charged with the waiver. No delay by either Party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof.

 

		23.	SEVERABILITY.

 

In the event that any provision or portion
of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions
of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

 

    	-16-

    	 

    

 

		24.	SURVIVAL. 

 

The respective rights and obligations of the
Parties under this Agreement shall survive any termination of Borow’s employment with Aeroflex.

 

		25.	GOVERNING LAW/JURISDICTION.

 

This Agreement shall be governed by and construed
and interpreted in accordance with the laws of New York, without reference to principles of conflict of laws.

 

		26.	NOTICES. 

 

Any notice given to either Party shall be
in writing and shall be deemed to have been given when delivered either personally, by fax, by overnight delivery service (such
as Federal Express) or sent by certified or registered mail postage prepaid, return receipt requested, duly addressed to the Party
concerned at the address indicated below or to such changed address as the Party may subsequently give notice of.

 

If to Aeroflex or the Board:

 

Aeroflex Incorporated

35 South Service Road

Plainview, NY 11803

Attention: General Counsel

FAX: (516) 694-4823

 

With a copy to:

 

Veritas Capital Management II, LLC

660 Madison Avenue, 14th Floor

New York, New York 10021

Attention: Benjamin Polk

 

And a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY 10022

Attention: Michael Littenberg

Telephone: (212) 756-2000

Fax: (212) 593-5955

 

    	-17-

    	 

    

 

If to Borow:

 

Leonard Borow

7582 Isla Berde Way

Delray Beach, Florida 33446

 

		27.	HEADINGS.

 

The headings of the sections contained in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision
of this Agreement.

 

		28.	COUNTERPARTS.

 

This Agreement may be executed in counterparts,
each of which when so executed and delivered shall be an original, but all such counterparts together shall constitute one and
the same instrument.

 

		29.	COMPLIANCE WITH CODE SECTION 409A.

 

It is intended that any expense reimbursement
made under this Agreement shall be exempt from Code Section 409A. Notwithstanding the foregoing, if any expense reimbursement shall
be determined to be “deferred compensation” within the meaning of Code Section 409A, including without limitation any
reimbursement under Sections 5, 6(a), and 8(g)(ii)(C), then the reimbursement shall be made to Borow as soon as practicable after
submission of the reimbursement request, but no later than December 31 of the year following the year during which such expense
was incurred.

 

[The
remainder of this page is intentionally left blank.]

 

    	-18-

    	 

    

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the date first written above.

 

	 	 	EMPLOYEE:
	 	 	 
		 	/s/ Leonard Borow                                                           
		 	Leonard Borow
	 	 	 
	 	 	AEROFLEX INCORPORATED
	 	 	 
		 	By: /s/ Edward S. Wactlar                                               
		 	      Name:  Edward S. Wactlar
		 	      Title:    Senior Vice President

                           General Counsel & Secretary

 

    	-19-

    	 

    

 

Exhibit A

 

GENERAL RELEASE

 

I, Leonard Borow, in consideration of and
subject to the terms and conditions set forth in the Employment Agreement dated as of April __, 2013 (the “Employment Agreement”)
to which this General Release is attached, and other good and valuable consideration, do hereby release and forever discharge Aeroflex
Incorporated (the “Company”), VGG Holding LLC, AX Holding Corp. and their current and former officers, directors, partners,
members, shareholders, investors, employees, attorneys, agents, predecessors, successors, affiliates, assigns and legal representatives
(together, the “Company Released Parties”), from any and all claims, charges, manner of actions and causes of
action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, and demands whatsoever
which I, my heirs, executors, administrators and assigns have, or may hereafter have against the Company Released Parties arising
out of or by reason of any cause, matter or thing whatsoever, whether known or unknown, from the beginning of the world to the
date hereof (“Claims”), including, without limitation, in connection with or relating to, my employment or termination
of employment with the Company and its subsidiaries, the Employment Agreement, all employment-related matters arising under any
federal, state or local statute, rule or regulation or principle of contract law or common law and any claims of employment discrimination,
unlawful harassment or retaliation claims and claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §
2000 et seq., the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.,
the Fair Labor Standards Act (to the extent allowed by law), 29 U.S.C. § 201 et seq., Age Discrimination
in Employment Act of 1967, 29 U.S.C. § 621, et seq., the Reconstruction Era Civil Rights Act, 42 U.S.C.
§ 1981 et seq., the Americans with Disabilities Act of 1993, 42 U.S.C. § 12900 et seq.,
the Family and Medical Leave Act of 1990 (to the extent allowed by law), 42 U.S.C. § 12101, et seq., the
New York State Human Rights Law, N.Y. Exec. Law § 290 et seq., the New York State Labor Law, N.Y. Labor
Law § 1 et seq., and the New York City Human Rights Law, N.Y.C. Admin. Code § 8-107 et seq.,
provided, that this General Release shall not constitute a release of any Claims that arise from a breach of (i) Sections 4(b),
7, 8, 10, 11 and/or 17 of the Employment Agreement, (ii) the Contribution Agreement between VGG Holding LLC and me, (iii) the Amended
and Restated Limited Liability Agreement of VGG Holding LLC, as amended from time to time or (iv) any benefit under any tax-qualified
plan sponsored, maintained or contributed to by the Company.

 

I acknowledge that I have been advised to
consult with legal counsel. I acknowledge that I have been provided with the opportunity to review and consider this General Release
for twenty-one (21) days from the date it was provided to me. If I elect to sign before the expiration of the twenty-one (21) days,
I acknowledge that I will have chosen, of my own free will without any duress, to waive my right to the full twenty-one (21) day
period. I understand that I may revoke this General Release within seven (7) days after my execution by sending a written notice
of revocation to __________ at the Company at ____________________, received within the seven-day revocation period.

 

    	A-1

    	 

    

 

I acknowledge that I have not relied on any
representations or statements not set forth in the Employment Agreement or in this General Release. Unless otherwise publicly-filed
by the Company, I will not disclose the contents or substance of this General Release to any third parties, other than my spouse,
attorneys, accountants, or as required by law, and I will instruct each of the foregoing not to disclose the same. I am signing
this General Release knowingly, voluntarily and with full understanding of its terms and effects.

 

This General Release will be governed by and
construed in accordance with the laws of the State of New York. If any provision in this General Release is held invalid or unenforceable
for any reason, the remaining provisions shall be construed as if the invalid or unenforceable provision had not been included.

 

In witness hereof, I have executed this General
Release this _____th day of _____, 201_.

 

	 	 
	 	 Leonard Borow

 

    	A-2

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