Document:

Ex 10.15

SEVENTH MODIFICATION TO LEASE AGREEMENT

(xG TECHNOLOGY, INC.)

 

THIS SEVENTH MODIFICATION TO LEASE AGREEMENT (the "Seventh
Modification") is made and entered into as of this 19th day of April, 2012, by and between ATRIUM 93, LLC (the
"Potential Landlord" or “Landlord”), who is successor in interest to ATC REALTY ONE, LLC, who is successor
in interest to Rodney K. Longman, and xG TECHNOLOGY, INC. (the "Tenant").

 

Recitals

 

WHEREAS, BRI 1808 TBD LLC and Tenant entered
into that certain Lease Agreement dated November 29, 2006 ("Lease"), and

 

WHEREAS, Lease was assigned by BRI 1808
TBD LLC to Rodney K. Longman on February 28, 2007, whereby Rodney K. Longman assumed all obligations of BRI 1808 TBD LLC pursuant
to the Lease, and

 

WHEREAS, pursuant to the Lease, Tenant
occupies Suite 231, comprised of 5,858 square feet of rentable area in the building known as Atrium West, 7771 W. Oakland Park
Boulevard, Sunrise, Florida ("Property"), and

 

WHEREAS, Landlord and Tenant entered into
that First Modification to Lease Agreement on January 9, 2008 ("First Modification"), whereby Suite 235 was added to
the Premises, for a total of 8,175 square feet of rentable area, for a term ending January 31, 2009, and

 

WHEREAS, Landlord and Tenant entered into
that Second Modification to Lease Agreement on February 1, 2009 ("Second Modification"), whereby Suites 229 and 223 were
added to the Premises, for a total of 11,621 square feet of rentable area, for a term ending February 28, 2011, and

 

WHEREAS, Landlord and Tenant entered into
that Third Modification to Lease Agreement on November 30, 2009 ("Third Modification"), for a term ending February 28,
2011, and

 

WHEREAS, Landlord and Tenant entered into
that Fourth Modification to Lease Agreement on February 3, 2011 ("Fourth Modification"), for a term ending September
30, 2011, and

 

WHEREAS, Landlord and Tenant entered into
that Fifth Modification to Lease Agreement on May 4, 2011, whereby Suite 215 (1,393 square feet of rentable area) was added to
the Premises, for a total of 13,014 square feet of rentable area, for a term ending September 30, 2011, and

 

WHEREAS, ATC REALTY ONE, LLC succeeded
Rodney K. Longman's interest in the property on June 23, 2011, and

 

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WHEREAS, Landlord and Tenant entered into
that Sixth Modification to Lease Agreement on December 9, 2011, whereby the Premises were defined as Suite 231, Suite 235, Suite
229, Suite 223, and Suite 215, containing a total of 13,014 square feet of rentable area, and

 

WHEREAS, the term of the Lease will expire
on May 7, 2012, and Tenant and Potential Landlord now desire to extend the term of the Lease in accordance with the terms and conditions
hereinafter set forth.

 

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

 

		1.	Recitals. The recitals set forth above are true and correct and are incorporated herein by reference.

 

		2.	Capitalized Terms. Capitalized terms used in this Seventh Modification that are not specifically defined herein
shall have the meanings given such terms in the Lease.

 

		3.	Renewal Term. The renewal term of the Lease shall be forty-eight (48) months, commencing on the date that Potential
Landlord acquires the subject property from ATC REALTY ONE, LLC (the “Closing”) and expiring forty-eight (48) months
thereafter (the "Renewal Term"). Tenant and Potential Landlord agree to execute a memorandum after Potential Landlord
acquires the subject property stipulating to the date of the commencement of the Renewal Term as defined herein.

 

		4.	Premises. Effective on the date of the Closing, the Premises shall be defined as Suite 231, Suite 229, Suite
223, and two new suites, Suite 233 and Suite 230, containing a total of 12,832 square feet of rentable area. Such measurement shall
be stipulated to by the Tenant and Potential Landlord.

 

		5.	Tenant's Proportionate Share. Effective on the date of the Closing, Tenant's Proportionate Share shall be specified
to be 13.84%.

 

		6.	Base Rent. The Base Rent payable during the first (1st) lease year of the Renewal Term set forth above
shall be paid monthly on the first day of each month, at the rate of $11.50 per rentable square foot per year ($147,568 per year),
in equal monthly installments of $12,297.33 per month, plus sales tax and any other charges as set forth in the Lease. Thereafter,
the Base Rent shall be increased annually at the commencement of each successive lease year to an amount equal to the Base Rent
paid during the prior lease year multiplied by one hundred four percent (104%), to reflect an annual increase of four percent (4%).
Base Rent payable after the first (1st) lease year of the Renewal Term shall continue to be paid monthly on the first
day of each month. In addition to the Base Rent, Tenant shall continue to be responsible for tenant’s proportionate share
of Operating Expenses and Taxes, as stipulated in the Lease.

 

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		7.	Proposed Improvements. Tenant shall tender to Potential Landlord, which Potential Landlord agrees to hold in
escrow in a segregated account, an amount of money equal to the first two months and a half (2.5) monthly installments of Base
Rent and Operating Expense payments (collectively the “Free Rent Escrow”), at the time that each such rent payment
would have been due. The aforementioned monthly installments shall not include any additional taxes or fees. The Free Rent Escrow
shall be utilized by Potential Landlord for the benefit of Tenant’s proposed improvements to the Premises (the “Proposed
Improvements”). In addition to the Free Rent Escrow, Potential Landlord agrees to contribute funds in the amount of up to
$5.00 per rentable square foot (up to $64,160) toward the purchase and/or installation within the Premises of building-standard
paint and carpet (the “Paint and Carpet Allowance”). Any funds from the Paint and Carpet Allowance not utilized for
the purchase and/or installation of paint and carpet may be utilized for other Proposed Improvements.

 

The Proposed Improvements shall be performed in
accordance with final plans that are mutually approved by both Potential Landlord and Tenant and shall be done in a good and workmanlike
manner using standard materials. The Proposed Improvements shall be constructed by a general contractor selected and paid by the
Potential Landlord. The source of payment for the Proposed Improvements shall be (i) the Paint and Carpet Allowance and (ii) the
Free Rent Escrow. Any additional funds needed for the Proposed Improvements, as determined according to a construction budget mutually
approved by both Potential Landlord and Tenant shall be paid for by Tenant and reserved in a segregated escrow account (“Additional
Work Escrow”).

 

Tenant hereby agrees to directly fund the balance
of the construction budget as mutually approved by Potential Landlord and Tenant, in accordance with a disbursement schedule agreed
upon by and between the Potential Landlord and Tenant. Furthermore, notwithstanding anything contained herein to the contrary,
construction of the Proposed Improvements shall commence immediately upon the commencement of the Renewal Term and upon the deposit
by Tenant with Landlord of the Free Rent Escrow and shall be completed (as evidenced by the issuance of a certificate of occupancy)
no later than nine (9) months after the commencement of the Renewal Term ("Proposed Improvement Deadline"), provided
Tenant has continuously established adequate funds for each phase of construction. The parties hereto agree that time is of the
essence in this Agreement, and Potential Landlord's failure to timely complete the required improvements hereunder shall result
in damages to the Tenant. Unless otherwise waived in writing by Tenant, or provided that Tenant has not failed to timely fund construction,
if Potential Landlord fails to complete the Proposed Improvements within said nine (9) month period, the Potential Landlord agrees
to abate rental due and owing under the Lease equal to $100.00 per day as liquidated damages to cover losses, expenses and damages,
not to exceed $20,000. It is specifically agreed and understood that given the uncertainty as to the extent of Tenant's damages
in the event Potential Landlord fails to timely complete the Proposed Improvements hereunder, such liquidated damages are reasonable
and contemplate Tenant’s actual or anticipated harm as a result of such breach, and are not intended to serve as a penalty.

 

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Tenant shall cooperate as reasonably necessary so
that the general contractor will cause the Proposed Improvements to be completed promptly and with due diligence. Tenant shall
make no alterations to the Premises without obtaining the prior written consent of the Potential Landlord. Any funds in the Free
Rent Escrow or the Paint and Carpet Allowance not utilized for the aforementioned Proposed Improvements within the first nine (9)
months of the Renewal Term shall be retained by Potential Landlord. Any funds in the Additional Work Escrow not utilized for the
aforementioned Proposed Improvements shall be retained by Tenant.

 

		8.	Additional Landlord Concession. Provided that Tenant is not in default of its Lease, Tenant shall not be required
to pay Landlord any Base Rent or Operating Expense for the thirteen (13th) month of the Renewal Term.

 

		9.	Capital Improvements to the Building. Landlord acknowledges that it has agreed to make certain capital improvements
to the building which, among other factors, persuaded Tenant to enter into a Renewal Term. Landlord agrees to undertake, in a commercially
reasonable and prudent fashion, substantial completion of the improvements referenced in Exhibit “A” within nine (9)
months of the commencement of the Renewal Term.

 

		10.	Reliance. The parties acknowledge that Potential Landlord has relied upon the execution of this Seventh Modification
to Lease Agreement in order to proceed with the acquisition of the subject property from ATC REALTY ONE, LLC. The parties further
acknowledge that Potential Landlord will become the actual landlord in the event that the Potential Landlord acquires the subject
property. Tenant acknowledges that this Seventh Modification will not be binding upon either party or ATC REALTY ONE, LLC in the
event that Potential Landlord does not proceed with the Closing, but shall be binding upon both parties if Potential Landlord does
acquire the subject property. The parties further acknowledge that the Lease contains no additional option periods or early termination
rights for the Tenant.

 

		11.	Confirmation of Lease. Except as otherwise set forth in this Seventh Modification, the Lease shall remain in
full force and effect in accordance with its original terms and be binding on Potential Landlord and Tenant, their respective heirs,
executors, administrators, successors and assigns. Tenant represents to Potential Landlord that there are no defaults outstanding
under the current lease by either ATC REALTY ONE, LLC or Tenant.

 

		12.	Notices. Section 34 of the Lease shall be amended to delete the address of the prior landlord and add the following:

 

ATRIUM 93, LLC

200 South Biscayne Boulevard,
Suite 2790

Miami, FL 33131

Attention: David Rodriguez

Email: david.rodriguez@roviproperties.com

Telephone: (305) 938-0508

 

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With a Copy to:

 

FEINBERG AND MAIDENBAUM

Attention: Jeffrey Feinberg

4000 Hollywood Boulevard, Suite
350

Hollywood, FL 33021

Facsimile (954) 966-6259

 

		13.	Brokers. Potential Landlord and Tenant each represent and warrant to each other that they have not dealt with
any real estate agent or broker in connection with this transaction. Tenant hereby indemnifies and saves Potential Landlord harmless
from and against all loss, cost and expense incurred by reason of a breach of such representation or warranty. The foregoing indemnity
shall survive the expiration or earlier termination of this Seventh Modification.

 

		14.	Counterparts. The parties may execute this Seventh Modification in multiple counterparts, each of which constitutes
an original, and all of which, collectively, constitute only one agreement. The signatures of all of the parties need not appear
on the same counterpart, and delivery of an executed counterpart signature page by facsimile or email is as effective as executing
and delivering this Seventh Modification in the presence of the other parties to this Seventh Modification. This Seventh Modification
is effective upon delivery of one executed counterpart from each party to the other parties. In proving this Seventh Modification,
a party must produce or account only for the executed counterpart of the party to be charged. Any party delivering an executed
counterpart of this Seventh Modification by facsimile or email shall also deliver a manually executed counterpart of this Seventh
Modification, but the failure to do so does not affect the validity, enforceability, or binding effect of this Seventh Modification.

 

[SIGNATURES ON FOLLOWING
PAGE]

 

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IN WITNESS WHEREOF, Potential Landlord and Tenant have executed
this Seventh Modification as of this19th day of April, 2012.

 

	WITNESSES:	 	POTENTIAL LANDLORD:
	 	 	ATRIUM 93, LLC
	 	 	 
	By:	/s/ K. Christian Schif	 	By:	/s/ David Rodriguez
	Print Name:	K. Christian Schif	 	Print Name: 	David Rodriguez
	 	 	 	 	Title: 	Manager
	By:	/s/Dana Lombard	 	Date:	April 30, 2012
	Print Name: 	Dana Lombard	 	 	 	 
	 	 	 	 	 	 	 
	WITNESSES:	 	TENANT:
	 	 	XG TECHNOLOGY, INC.
	By:	/s/ Steve Lebel	 	 	 	 
	Print Name: 	Steve Lebel	 	By:	/s/ John Coleman
	 	 	 	 	Print Name: 	John Coleman
	By:	/s/ Donna Prescott	 	Title: 	CEO
	Print Name:	Donna Prescott	 	Date:	April 19, 2012

  

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EXHIBIT A

(SCHEDULE OF CAPITAL IMPROVEMENTS)

 

ATRIUM AREA

 

The Atrium Lobby will be renovated by installing new hard surface
flooring in the entrances and lobby areas. The design intent is to bring in a natural or synthetic flooring surface (granite, travertine,
ceramic tile or similar material) to replace the outdated black tiles and pebble flooring.

 

ENTRANCE LOBBIES

 

The entrance lobbies will be renovated by installing new tile
or carpet flooring to compliment the changes in the Atrium. Stair handrails and doors will be refinished to “as new”
condition and will compliment the carpet and tile selection for the common area surfaces.

 

RESTROOMS

 

All existing restrooms will be completely renovated, including
the ceilings, walls and flooring. In addition, at least two restrooms (one for each sex) or one unisex restroom will be reconfigured
to comply with the guidelines set forth by the Americans with Disabilities Act (ADA).

 

For all restrooms, we will perform the following upgrades and
installations:

 

		1.	New Kohler bathroom fixtures (or similar), including toilets and lavatories

		2.	New tile flooring in travertine, porcelain, granite or similar material

		3.	Tile “wet wall” in the same finish as the floor

		4.	Sink/lavatory area, including new, under-mount porcelain sinks on a granite countertop (or similar)

		5.	Replacement of existing lighting fixtures with parabolic Lithonia PT3L energy efficient lights (or similar)

		6.	2’x 2’ ceiling grid, including 2’x 2’ Armstrong 741 ceiling tiles (or similar)

 

COMMON AREA HALLWAYS

 

Where upgrades have not already been implemented, the common
area hallways will be renovated with the following upgrades:

 

		1.	Ceiling tiles will be replaced with 2’x 2’ Armstrong 741 ceiling tiles (or similar)

		2.	Replacement of existing lighting fixtures with parabolic Lithonia PT3L energy efficient lights (or similar)

 

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		3.	Wall surfaces in the common hallways will be repainted. Individual tenant doors and door frames will be sanded and refinished,
unless Landlord determines that complete replacement of doors and door frames is necessary to comply with Florida Building Code
and Fire Code.

		4.	Existing, full projection fire sprinkler heads will be removed and replaced with semi-recessed, fast action heads

		5.	Existing carpet will be replaced with new Building Standard carpet flooring

 

ENTRY AND LANDSCAPING

 

The main entry landscaping will be reconfigured to include shrubs,
plants and trees that are more akin to a South Florida class “A” office environment. Overgrown trees and shrubs will
be either pruned back or replaced.

 

    	8Ex 10.16

Agreement

 

This Agreement (the “Agreement”)
is dated 3rd October, 2008

 

BETWEEN

 

Treco International S. A. (“Treco”)
whose registered office is at Bahnhofstrasse 14, 8022 Zurich, Switzerland; and

 

xG Technology , Inc. whose registered office
is at 240 South Pineapple Avenue, Suite 701, Sarasota, FL 34236, United States of America (“xG”)

 

(each a “Party”, together the
“Parties”).

 

WHEREAS:

 

Treco wishes:

 

		1.	To purchase a certain number of turnkey base stations
and switching centers from xG along with any other necessary equipment (the “Base Stations”).

 

		2.	To deploy the Base Stations in certain territories throughout
the United States and rent such Base Stations to operators. The Base Stations will utilize xG’s proprietary and patented
Flash Signal technology, which has been developed further for delivering mobile VoIP communications.

 

		3.	To become xG’s exclusive Base Station partner in
the United States.

 

xG wishes:

 

		1.	To secure a viable partner for deploying the Base Stations
that utilizes its Technology within the United States.

 

		2.	To retain ownership and rights to its proprietary and
patented technology.

 

		3.	To enter a long term exclusive relationship with Treco
subject to mutually agreeable terms.

 

The Parties recognize the mutual
benefit of a long term Infrastructure Agreement and are therefore now entering this Agreement to agree on all substantive terms
and conditions for such Infrastructure Agreement.

 

    	 

    	 

    
 

NOW IT IS HEREBY AGREED as follows:

 

Substantive Terms

 

This Agreement contains all of the substantive
terms agreed by the Parties to clarify all fundamental principles for long term co-operation and it will be superceded by a more
detailed long term Infrastructure Agreement which will be signed by both parties on or before 17th October 2008 and
which will in no way contradict the conditions in this Agreement or the intentions of the Parties.

 

Purchase of Base Stations

 

Treco has submitted a sales order (Schedule
A) for 1,000 Base Stations to xG on September 22, 2008. It was agreed that xG will deliver 400 Base Stations by December 31, 2008
with the balance to be delivered in early 2009. It is understood that the timely delivery of such 400 Base Stations may be impacted
by some of the other obligations in this Agreement such as the limitations on ordering. Accordingly, this will be subject to mutual
agreement regarding ordering lead times and on a best efforts basis by xG to hit the December 31st timeline. Should
it not, the timeline will simply extend into early 2009.

 

Treco was also granted an option to purchase
an additional 4,000 Base Stations and agreed to provide a 20% down payment for the first 400 Base Stations (a total of $6,000,000)
no later than September 29, 2008 which xG has now received in full. The agreed fixed price for the first 5,000 Base Stations was
agreed at $75,000.

 

Option to purchase
Base Stations over 5,000 (“Additional Base Stations”)

 

xG agrees to grant a
further option to Treco to purchase the number of Additional Base Stations as necessary to enable Treco to provide a full network
coverage for the entire United States. The price of Additional Base Stations purchased will be at market price and subject to mutual
agreement. This will be subject to further agreement in the more definitive agreement as to appropriate milestones including timelines,
quantities etc.

 

Down payments

 

The down payments for the first 400 Base
Stations referred to in the sales order dated 22 September 2008 is agreed at $15,000 per Base Station which constitutes 20% of
the agreed fixed price of $75,000 for each Base Station.

 

The down payments for any Base Stations
delivered after the first 400 are to be based on 110% of xG’s external third party costs for the manufacture and delivery
of the Base Stations.

 

For the first 5,000 Base Stations, xG agrees
not to use any down payment received from Treco for any purpose other than to pay all external third party costs for the manufacture
and delivery of the Base Stations ordered by Treco.

 

    	 

    	 

    
 

Balancing Payments

 

The balance owed after down payments will
be equal to 6% of the total purchase price each quarter (90 days) until the balance is paid in full.

 

Additional costs

 

All
additional costs, including but not limited to, provisioning lines, rental of Base Station location antenna location and local
store fronts and local marketing and distribution shall be borne by the operator. xG will be responsible for the administration/mapping
of the operators installation of the base stations and all cost of installation shall be borne by the operator. 

 

Conditions of placing
an order for Base Stations

 

Prior
to placing an order with the manufacturers (and/or suppliers of parts) of the Base Stations, the Base Stations must fulfil all
technical specifications and have received the final FCC approval and both parties must agree on the location and concentration
of the Base Stations with the initial ambition for the first networks to be deployed in the Fort Lauderdale/Miami area. It is understood
by the Parties that it may be necessary to order some parts and manufacturing for the market in the Ft. Lauderdale/Miami (the “Show
Place”) area prior to FCC approval in order to achieve mutually desired timelines; but any such decision will be subject
to mutual agreement. It is Treco’s intention to sponsor this site as both Parties Show Case, the costs of which must be discussed
and agreed.

 

Division of Revenue

 

xG shall pay to Treco 30% of all revenues, market fees or any
other remuneration which are received by xG further to the provision of xG’s proprietary and patented technology through
the Base Stations within the United States, both in relation to existing and future applications save that Treco agrees that xG
will retain $15 from the monthly fee of $21 received from each TX60 customer and will pay the remaining $6 in each case to Treco
which accepts that this constitutes less than 30% of the revenue.

 

Positive Cashflow

 

Treco agrees that the intent of the financial outcome of this
Agreement will ensure xG financial security going forward in terms of positive cashflow. And the Parties agree to mutually agree
on that determination.

 

Rights to the Technology

 

xG acknowledges that Treco is dependent upon the use of xG’s
proprietary and patented technology and that Treco would cease to be a viable commercial entity without full access to such technology.
Therefore xG agrees to grant Treco a full perpetual exclusive license to use all of xG’s proprietary and patented technology
required for Treco to fully utilize the Base Stations and agrees that the license is irrevocable save in the event of a breach
of the agreed terms by Treco. Likewise, Treco acknowledges that xG is dependent upon Treco as the owner of the Base Stations and
agrees that such protections will be in place for xG.

 

    	 

    	 

    
 

In the event that there is a change of control of xG, or xG
transfers any rights to such technology without mutual agreement, or xG breaches any agreed terms and such breaches are not cured
within a mutually agreeable time period, the perpetual license shall persist royalty free. Likewise, similar protections will be
afforded xG.

 

Operator Default 

 

Should operators be in default or breach
of their contract with Treco, xG agrees that Treco can hold back any payments due to xG related to that market until a mutually
agreeable resolution has been made.

 

Duration

 

Either party is only permitted to terminate
this Agreement in the event of a breach of the terms by the other party.

 

Jurisdiction

 

This Agreement
shall be exclusively governed and construed in accordance with the laws of the United States, without regard to its conflict of
laws principles, and be subject to the exclusive jurisdiction of the courts of Tampa, Florida.

 

AS WITNESS the Parties have entered into
this Agreement on the date first above written.

 

	SIGNED by:	 	SIGNED by:
	TRECO International S.A	 	xG TECHNOLOGY INC.
	 	 	 	 	 
	(Signature)	/s/ Thomas Edlund	 	(Signature)	/s/ Richard L Mooers.
	(Print Name) 	Thomas Edlund	 	(Print Name) 	Richard L. Mooers
	(Date)	29 Sep 2008	 	(Date)	3 October 2008

 

    	 

    	 

    

 

POWER OF ATTORNEY

 

KNOW ALL MEN by these presents that
Treco International SA, with representative office at Banhofstrasse 14, CH-8022 Zurich, Switzerland (hereinafter called
“the Company”) hereby grants a Power of Attorney to

 

Mr. Karl Thomas Anders Edlund, Attorney
at Law, holder of Swedish passport number 34378429, of Advokatfirman Nordia, Stockholm, Sweden

 

to act for and in the name of and on behalf
of the Company to do or execute all or any of the acts or things hereinafter mentioned and that is to say:

 

		·	To enter into a sale and purchase agreement with xG Technologies, Inc. regarding a maximum of
1,000 base stations.

		·	Generally to act as agent for the Company and to execute and perform on behalf of the Company
all lawful and reasonable acts in connection with the above mentioned acquisitions of assets.

 

For the avoidance of doubt the Company
hereby ratifies and confirms and agrees to ratify and confirm whatsoever the Attorney shall do or purport to do by virtue of this
Power of Attorney.

 

This Power of Attorney shall be effective
from 22 September 2008 and shall expire on the 31 December 2008.

 

	SIGNED for and on behalf of	)	 	 	 
	TRECO INTERNATIONAL SA	)	 	 	 
	By Allied Finance Trust AG – Director	)	/s/ Unknown 	 	/s/Unknown
	 	 	Authorised Signatory 	 	Authorised Signatory

 

    	 

    	 

    

 

Bill and Hold Instructions

 

Please continue to hold (do not ship) all
finished goods previously purchased (as identified in Exhibit A) until June 30, 2010 unless otherwise requested by us. For these
goods held by xG Technology, Inc., per this request, it is understood and agreed that title and ownership (along with associated
risks and rewards) continue to be with Treco International, S.A. and are not with xG Technology, Inc..

 

Thank you.

 

	/s/ Ceinwen Lloyd
	Name:	Ceinwen Lloyd
	Title:	CEO
	Company:	Treco International, S.A.

 

    	 

    	 

    

 

EXHIBIT A

 

 

	Product	 	Description	 	Quantity
	X25CA21R1	 	BSN250	Digital	 	6
	X25CA11R1	 	BSN250	RF	 	145
	X25CA41R1	 	BSN250	SU1	 	145
	X25CA42R1	 	BSN250	SU2	 	145
	X25CA43R1	 	BSN250	SU3	 	145
	X25CA31R1	 	BSN250	PS	 	145
	1711000001	 	XMSC	XMSC	 	6
	1311100002	 	BSN200	Three Sectors	 	327

 

    	 

    	 

    

 

Amendment

 

This Amendment (the “Amendment’)
is dated March 2, 2010 between xG Technology, Inc. (“xG”) and Treco International S.A (“Treco” and,
together with xG, the “Parties”).

 

We refer to the agreement dated 3rd
October, 2008 (the “Infrastructure Agreement”) in which the Parties agreed on all substantive terms and conditions
for an Infrastructure Agreement between them. Terms defined in the Infrastructure Agreement shall have the same meaning herein
unless the context otherwise requires.

 

There have been changes in circumstances
of the Parties since the date of the Infrastructure Agreement and the Parties wish to make certain amendments to the Infrastructure
Agreement that take into account such circumstances in order to reflect the current situation and intention of the Parties. We,
therefore, write to confirm our mutual agreement to make certain amendments to the Infrastructure Agreement as follows:

 

1. On March 31, 2009, xG received approval
from the FCC for the Base Stations and fulfilled all their technical requirements. The FCC identification number is VEYXMAXBSN25.

 

2. Treco and xG agree that Balancing Payments
to xG begin when operators for the markets enter into lease agreements with Treco (current balance is approx. $22.5m). In the event
operators have not entered into lease agreements with Treco by December 31, 2010, Treco will begin making Balancing Payments to
xG 30 days thereafter.

 

3. Switching centers shall have a price
of $500,000 each which reflects current competitive market pricing. Turnkey base stations remain priced at $75,000 each. The lease
payment to Treco for the switching centers will be $10,000 per month. No payment including cost will be due to xG until payments
are received from the lessees. 

 

All other terms and conditions of the Infrastructure
Agreement remain the same. This Amendment, together with the Infrastructure Agreement, shall constitute the more detailed long
term Infrastructure Agreement referenced in the “Substantive Terms” section in the Infrastructure Agreement.

 

This Amendment and the Infrastructure Agreement
shall be governed and construed in accordance with the laws of the United States, without regard to its conflict of laws principles,
and be subject to the jurisdiction of the courts of Tampa, Florida.

 

Please confirm your agreement to the above
provisions by signing and returning the enclosed copy of this letter.

 

We hereby confirm our agreement to the
terms set out above.

 

	By:	 	By:

 

	/s/ Richard L. Mooers	 	/s/ Ceinwen Lloyd
	Richard L. Mooers	 	Ceinwen Lloyd
	xG Technology, Inc.	 	Treco International S.A
	Chairman and Chief Executive Officer	 	Chief Executive Officer

 

    	 

    	 

    

 

AGREEMENT

 

Pertaining to the Amendment (the “Amendment”)
signed of even date herewith (March 3, 2010) between Treco International S.A. (“Treco”) and xG Technology, Inc. (“xG”)
and further relating to the agreement dated 3rd October, 2008 (the “Infrastructure Agreement”), xG Technology
hereby agrees as follows:

 

The intent of both parties in the Amendment
is that operators will be secured prior to the date at which Treco would otherwise be obligated to pay the Balancing Payments.
Should the operators referred to in said Amendment section #2 not be secured prior to that date, then xG hereby gives Treco the
option to request that we discuss why an operator has not been secured and discuss then present plans for the business. Payments
do not need to commence until Treco is satisfied in their sole discretion.

 

With the intent to be legally bound:

 

	/s/ Richard L. Mooers

 

RICHARD L. MOOERS, Chairman and CEO

xG Technology, Inc.

 

    	 

    	 

    

 

CONFIDENTIAL
SETTLEMENT STIPULATION AND RELEASE

 

This Confidential Settlement
Stipulation and Release (“Stipulation”) is made and entered into as of April 5, 2011 (the “Settlement
Date”), by and among xG TECHNOLOGY, INC. whose address is at 240 South Pineapple Avenue, Suite 701, Sarasota,
FL 34236 (“xG”) and TRECO INTERNATIONAL, S.A. whose registered office is at Bahnhofstrasse 14,
8022 Zurich, Switzerland (“Treco”) (xG and Treco shall collectively be referred to herein as the “Parties”),
with reference to the following facts:

 

(Each of the above Parties shall
include singular and plural, their past, present and future representatives, legal representatives, attorneys, permitted assigns,
permitted transferees, successors, members, managing members, partners, general partners, limited partners, subsidiaries and affiliates,
including, without limitation, each of their past, present and future principals, officers, directors, shareholders, employees,
and predecessors wherever the context so admits or requires of either Party)

 

WHEREAS, Treco owns
20,771,556 shares of the total outstanding shares in xG;

 

WHEREAS, on or around
October 3, 2008, xG and Treco entered into that certain Agreement concerning, among other things, Treco’s purchase and deployment
of certain Base Stations as more particularly described in the foregoing Agreement (the “Agreement”);

 

WHEREAS, on or around
March 2, 2010, xG and Treco entered into that certain Amendment amending certain of the provisions of the Agreement (the “First
Amendment”);

 

WHEREAS, on or around
March 3, 2010, xG and Treco entered into that certain Amendment further amending certain of the provisions of the Agreement and
First Amendment (the “Second Amendment”); and

 

WHEREAS, the Agreement,
First Amendment and Second Amendment shall collectively be referred to herein as the “Amended Agreement”).

 

NOW, THEREFORE, in
order to amicably resolve certain outstanding disputes, and in consideration of the promises, covenants, warranties, and representations
set forth herein, the Parties agree as follows:

 

1.          Recitals.
Each of the recitals set forth above are true and correct.

 

2.          Termination
of Amended Agreement. Effective as of the Settlement Date, the Amended Agreement shall be terminated, cancelled and of no further
force and effect. Upon the foregoing termination of the Amended Agreement, any and all receivables payable by Treco to xG under
the terms thereof shall be forgiven and shall no longer be due and payable. This includes, without limitation, the total sum of
$23,416,564.14 that was due (whether immediately or at a future date) under the Amended Agreement as of December 31, 2010 and any
and all amounts incurred thereafter through the Settlement Date.

 

    	 

    	 

    
 

3.           Issuance
of Shares. As soon as reasonably practical but no later than 20 business days from the date hereof, xG will issue to
Treco Two Million, Two Hundred and Fifty Thousand (2,250,000) shares of newly issued shares of xG common stock.

 

4.           Issuance
of Notes. Upon the earlier to occur of (a) five business days after the MBTH Note Closing (as defined herein) and (b) five
business days after 180 days from the date hereof (such 180 day period, the “End Date”),
xG will issue to Treco a convertible promissory note (the “Treco Note”) in the principal amount of two
million dollars ($2,000,000). In the event that the MBTH Note Closing occurs prior to the End Date, then (a) xG shall issue the
Treco Note to Treco within five business days after the MBTH Note Closing (as defined herein), (b) the payment terms, maturity
date and interest rate of the Treco Note shall be the same as that of the MBTH Notes (as defined herein) and (c) the Treco Note
shall be convertible into shares of xG common stock at the same price per share as the MBTH Notes (as defined herein) are convertible
into shares of xG common stock. In the event that the MBTH Note Closing does not occur by the End Date, then (a) xG shall issue
the Treco Note to Treco within five business days of the End Date, (b) the principal amount of the Treco Note shall mature seven
years from issuance, (c) the Treco note shall bear 9% simple interest, with payments of interest only semi-annually either in cash
or shares of xG (at xG’s option) and (d) the Treco Note shall be convertible into shares of xG common stock at $1.00 per
share. As used herein, “MBTH” means MB Technology Holdings, LLC, the “MBTH Note Closing”
shall mean the closing of the forthcoming issuance by MBTH of convertible promissory notes, and the “MBTH Notes”
shall mean the promissory notes issued by MBTH at the MBTH Note Closing.

 

5.            Confidentiality
and Non-Disparagement Covenants.

 

(a)          Confidentiality.
The Parties mutually agree to keep in strict confidence this Stipulation and any information whatsoever contained in this Stipulation
(the "Confidential Information"). The Parties agree not to disclose or discuss the Confidential Information
with any other person or entity.

 

(b)          Press
Release.         Notwithstanding the foregoing, xG shall be permitted to
issue a press release in form and substance that is agreeable to the Parties, the contents of which may include, among other things,
the fact that the Parties have amicably settled their disputes, that the Amended Agreement has been terminated, all amounts due
there under have been forgiven, any other information deemed necessary under law to be made publicly available to shareholders
of xG, and setting forth the consideration provided to Treco under this Stipulation. Notwithstanding the foregoing, the press release
shall include any information required by law.

 

(c)          Non-Disclosure
Covenant. In addition to the Press Release set forth in Paragraph 6(b) above, the Confidential Information covered in Paragraph 6(a)
above may only be disclosed by either Party (i) as may be necessary to disclose it to each of the Parties’ respective
accountants, attorneys, advisors, indemnitors, consultants or any third parties who may now or later consider investing in, purchasing,
merging with, loaning or advancing funds to the disclosing Party, or to the Internal Revenue Service; (ii) in response to any other
Bank inquiry; (iii) in response to a court order or valid subpoena; or (iv) if necessary to establish a breach of this
Stipulation. This Stipulation shall not be filed with a court or other legal authority unless specifically ordered or permitted
by the court or other legal authority, or unless it is impossible to obtain an order sealing this Stipulation. In the event that
any court or other legal authority requires or permits that this Stipulation be filed with such court or other legal authority,
the Parties, shall file only the portions of this Stipulation necessary for the purpose of the proceeding and shall file such portions
of the Stipulation under seal to the extent permitted by law.

 

    	 

    	 

    
 

(d)          Unsolicited
Investigation or Inquiry. The Parties agree that if either of them receives an unsolicited inquiry from a Federal, State or
industry regulatory agency, to reveal all or any part of the Confidential Information then, if permitted by law, the receiving
Party shall promptly notify the other Party in writing within five (5) calendar days of its receipt of the unsolicited inquiry.
The Parties expressly acknowledge that the purpose of this notice requirement is to provide adequate opportunity to oppose such
unsolicited inquiry. The Parties, also agree that the failure to provide the notice specified above shall constitute a material
breach of this Stipulation. However, nothing in this Paragraph 6 shall be deemed to prohibit the Parties, from cooperating with
any unsolicited investigation or inquiry from a Federal, State or industry regulatory agency.

 

(e)          Subpoenas.
The Parties, further agree that if either or any of them receives a subpoena, summons or request to reveal the Confidential Information,
or which reasonably calls for the disclosure of all or any part of the Confidential Information then, if permitted by law, they
shall promptly notify the other Party, of the subpoena, summons or request, in writing and provide the other Party, with a copy
of the subpoena, summons or request within five (5) calendar days of their receipt of the subpoena, summons or request. The Parties,
acknowledge that the purpose of this notice requirement is to provide them adequate opportunity to oppose any subpoena, summons
or request of the Confidential Information. The Parties, also agree that the failure to provide the notice specified above shall
constitute a material breach of this Stipulation.

 

(f)          Non-Disparagement.
The Parties, agree not to disparage to any other person or entity each other or any of their business or businesses, business ventures,
business transactions, business operations, business strategies, operational strategies, research and development, marketing, management,
accounting, financing, or any other business-related activities whatsoever, or anything else about any or all of them, whether
learned before, on or after the date of this Stipulation.

 

(g)          Enforcement.
The Parties, acknowledge and agree that the provisions of this Stipulation, including this Paragraph 6, are enforceable by, among
other things, injunctive relief. Specifically, and without limitation, the Parties, acknowledge and agree that in addition to constituting
a material breach of this Stipulation, any breach of any of the provisions of this Paragraph 6 shall cause irreparable harm to
the non-breaching Party, which irreparable harm shall be presumed, thereby entitling the non-breaching Party, , as may be applicable,
to injunctive relief against the breaching Party.

 

6.           Release
of Claims and Covenant Not to Sue.

 

(a)          Release
of xG. Upon the full execution of this Stipulation, Treco, shall execute and deliver to xG a Release and Covenant Not
to Sue in the form attached hereto as Exhibit “A.”

 

(b)          Release
of Treco. Upon the full execution of this Stipulation, xG shall execute and deliver to Treco a Release and Covenant
Not to Sue in the form attached hereto as Exhibit “B.”  

 

    	 

    	 

    
 

7.          Choice
of Law. The laws of the State of Florida shall govern the construction, enforcement and interpretation of this Stipulation,
regardless of and without reference to whether any applicable conflicts of laws principles may point to the application of the
laws of another jurisdiction.

 

8.          Venue,
Jurisdiction. The Parties hereby agree that the exclusive venue and jurisdiction to resolve any and all disputes between them
including, without limitation, any disputes arising out of or relating to this Stipulation, and any and all alleged underlying
obligations of the Released Claims shall be in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward
County, Florida or the Federal District Court of the United States Southern District of Florida. The Parties consent to personal
jurisdiction and venue in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida or the Federal
District Court of the United States Southern District of Florida and waive any defense of forum non conveniens, lack of
personal jurisdiction, or like defense.

 

9.          Reasonableness.
The Parties stipulate and agree that the provisions contained in this Stipulation are reasonable, that no Party had overwhelming
bargaining power, and that the terms of this Stipulation are not violative of any state or federal statute or policy.

 

10.         Enforceability.
This Stipulation shall be enforced to the maximum extent permitted by law. In the event that any provision of this Stipulation
is found to be unenforceable, void, or invalid, that finding shall not affect the enforceability or validity of any other provision
hereof.

 

11.         Entire
Agreement. This Stipulation embodies the entire agreement and understanding between the Parties, and supersedes any and all
prior or concurrent stipulations, understandings, statements, assurances, assumptions, premises, promises, agreements, discussions
or representations, oral or written, relating to the subject matter of this Stipulation, and/or the facts underlying the dispute
between the Parties,. None of the Parties has made any representations upon which either Party have relied that are not contained
in this Stipulation. None of the Parties is relying on an unstated assumption, premise or condition not contained in this Stipulation.

 

12.         Construction.
It is understood that this Stipulation was negotiated and prepared by the Parties and their counsel as a combined effort designed
to meet their desires and needs. This Stipulation shall be interpreted without regard to any presumption or rule requiring interpretation
against the drafter or the Party causing this Stipulation to be prepared.

 

13.         No
Modification or Waiver. No modification or waiver of any of the terms of this Stipulation shall be valid unless in writing
and executed by all the Parties with the same formality as this Stipulation. No waiver of any breach hereof or default hereunder
shall be deemed a waiver of any subsequent breach or default of the same or similar or dissimilar nature. No course of dealing
or course of conduct shall be effective to amend, modify or change any provision of this Stipulation. Notwithstanding any applicable
law, the terms of this Paragraph may not be waived by any course of dealing or course of conduct.

 

    	 

    	 

    
 

14.         Counterparts.
The Parties agree that this Stipulation may be executed in counterparts and will become effective immediately upon execution by
all the Parties, subject to exchange of signature pages and subject to the stipulations set forth above. Facsimile signatures shall
be binding to the same extent as originals.

 

15.         Attorneys’
Fees. Each Party shall bear their own attorneys’ fees and costs. In any legal action or other proceeding arising out
of or relating to this Stipulation, the prevailing Party shall be entitled to recover from the non-prevailing Party, as may be
applicable, all of the attorneys’ fees and court costs incurred by the prevailing Party, with no exception, (including costs
and fees incurred prior to the filing of any lawsuit, costs and fees incurred at the trial court and appellate court levels, and
costs and fees incurred as a result of litigating entitlement to, or the amount of, any fees awarded under this Stipulation).

 

16.         Assignment.
Neither Party shall transfer or assign any of its rights, remedies or obligations under this Stipulation without the prior written
consent of the non-transferring/non-assigning Party, which consent shall not be unreasonably withheld.

 

17.         Notice.
Any and all notices, demands or communications required or permitted to be given hereunder shall be in writing and sent by overnight
mail to

 

	xG at:	 	Richard L. Mooers
	 	 	xG Technology, Inc.
	 	 	240 South Pineapple Avenue
	 	 	Suite 701
	 	 	Sarasota, FL 34236
	 	 	 
	Copy to:	 	Bruce March, Esq., Kenneth A. Horky, Esq., Avi Benayoun, Esq.
	 	 	401 East Las Olas Boulevard
	 	 	Suite 2000
	 	 	Fort Lauderdale, FL 33301
	 	 	 
	Treco at:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 
	Copy to:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

Or to such other addresses as any Party
may hereafter provide to the other in writing as a notice of change of address. Each such notice, demand or other communication
shall be effective upon receipt by any of the Parties’ recipients.

 

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REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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For xG

  

	 	xG TECHNOLOGY, INC.
	 	 	 
	 	By:	/s/ Richard L. Mooers
	 	Name:	Richard L. Mooers
	 	Title:	Chairman

 

For Treco

 

	 	TRECO INTERNATIONAL, S.A.   
	 	 	 
	 	By:	/s/ Ceinwen Lloyd
	 	Name: 	Ceinwen Lloyd
	 	Title: 	CEO

  

    	 

    	 

    

 

EXHIBIT
“A”

 

GENERAL RELEASE AND COVENANT NOT TO
SUE

 

TRECO INTERNATIONAL,
S.A. whose registered office is at Bahnhofstrasse 14, 8022 Zurich, Switzerland (“Treco”) and
 in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and legal sufficiency
of which is hereby acknowledged, hereby give this release and covenant not to sue in favor of xG
TECHNOLOGY, INC. whose address is at 240 South Pineapple Avenue, Suite 701, Sarasota, FL 34236 (“xG”).

 

1.          Unless
otherwise specifically defined herein, all capitalized terms contained herein shall have the same meaning as set forth in that
certain Confidential Settlement Stipulation and Release between the Treco and xG dated April 5, 2011 (the “Stipulation”).

 

2.          Release.
Except for compliance with each of the obligations under the Stipulation, each of the Treco Parties, for themselves, and for their
respective past, present and future representatives, legal representatives, heirs, attorneys, successors, assigns, predecessors,
insurers, parents, partners, subsidiaries and affiliated organizations, and the officers, directors, shareholders, employees and
partners of each of the foregoing, hereby unconditionally and irrevocably forever release, acquit and discharge and covenant not
to sue xG, and any of its past, present and future representatives, legal representatives, attorneys, successors, assigns, predecessors,
insurers, parents, partners, subsidiaries and affiliated organizations, and the officers, directors, shareholders, employees, and
partners of each of the foregoing (all of whom are herein jointly and severally referred to as the “Released Parties”)
from any and all claims, demands, actions, causes of action, suits, debts, costs, dues, sums of money, accounts, bonds, bills,
covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, expenses and liabilities
whatsoever, known or unknown, matured or unmatured, at law or in equity, irrespective of whether such claims arise out of contract,
tort, violation of laws or regulations or otherwise, which any of the Treco Parties ever had or now have or may have in the future
against the Released Parties, or any of them for, upon or by reason of any manner, cause or thing whatsoever from the beginning
of the world to and including the date hereof including, without limiting the generality of the foregoing, arising out of, in connection
with, or related in any manner to any claims, demands, actions or causes of action arising out of or in connection with any contracts,
agreements, employment or business relationships of any kind whatsoever between any the Treco Parties, or any of them, and any
of the Released Parties, or any of them including, without limitation, the Amended Agreement, Treco’s purchase and/or ownership
of any shares in xG, and Ms. Lloyd’s employment, in any capacity whatsoever, by xG (collectively, the “Claims”).

 

3.          The
Treco Parties hereby represent and warrant to the Released Parties that none of the Treco Parties have heretofore expressly or
impliedly assigned, transferred, pledged, hypothecated, sold, conveyed or otherwise disposed of, for the benefit of creditors or
otherwise, any of the Claims and that the Treco Parties are the sole owners and holders of the Claims.

 

    	 

    	 

    
 

4.          The
Treco Parties represent and warrant that they have had the advice of counsel of their own choosing in negotiating, preparing, reviewing
the final provisions of and executing this Release, and that they are fully aware of the contents and legal effects of this Release.

 

5.          This
Release is accepted by the Released Parties pursuant to the Stipulation, and this Release shall not be construed as an admission
of liability on the part of the Released Parties or any of the other Released Parties of any kind or nature whatsoever as to any
matter.

 

6.          This
Release shall be binding upon the Treco Parties and Treco Parties’ successors and assigns and shall inure to the benefit
of the Released Parties and their successors and assigns.

 

7.          This
Release and the Stipulation constitute the entire agreement among the parties with respect to the subject matter hereof. It is
expressly understood and agreed that this Release may not be altered, amended, modified or otherwise changed in any respect whatsoever
except by a writing duly executed by authorized Released Parties. This Release and the rights, duties, obligations and responsibilities
of the parties hereto shall be governed by and construed in accordance with the internal laws and decisions of the State of Florida.

 

8.          This
Release may be executed in counterparts, each of which shall be an original and be fully effective as to the party or parties signing
the counterpart, but all such counterparts shall together constitute one instrument.

 

9.          In
any action to enforce, defend or interpret this Release, the prevailing Party shall be entitled to recover from the non-prevailing
Party all of the attorneys’ fees and court costs incurred by the prevailing Party, with no exception, (including costs and
fees incurred prior to the filing of any lawsuit, costs and fees incurred at the trial court and appellate court levels, and costs
and fees incurred as a result of litigating entitlement to, or the amount of, any fees awarded under this Stipulation).

 

10.         The
Treco Parties hereby acknowledge that they have not relied upon any representation of any kind made by any of the Released Parties
in making the foregoing release.

 

11.         The
Treco Parties agree that if the Treco Parties (or any of them) hereafter commences, joins in, or in any manner seeks, relief through
any suit arising out of, based upon, or relating to any of the Claims or in any manner asserts against such Released Parties, or
any of them, any of the Claims, then the Treco Parties shall pay to such Released Parties, and each of them, in addition to any
other damages caused to such Released Parties thereby, all attorneys’ fees incurred by such Released Parties in defending
or otherwise responding to said suit or claim.

 

12.         The
Treco Parties hereby irrevocably and unconditionally submit to the jurisdiction of the Circuit Court of the Seventeenth Judicial
Circuit in and for Broward County, Florida, or the United States District Court for the Southern District of Florida, and further
irrevocably and unconditionally stipulate and agree that such Court shall have jurisdiction to hear and finally determine any dispute,
claim, controversy or action arising out of or connected (directly or indirectly) with this Release.

 

    	 

    	 

    
 

EXECUTED this 5th day of April,
2011.

  

	WITNESS:	 	TRECO INTERNATIONAL, S.A.    
	 	 	 	 
	Richard L. Mooers	 	By:	/s/ Ceinwen Lloyd
	 	 	Name:	Ceinwen Lloyd
	Roger G. Branton	 	Title:	CEO

 

    	 

    	 

    

 

EXHIBIT
“B”

 

GENERAL RELEASE AND COVENANT NOT TO
SUE

 

xG TECHNOLOGY, INC.
whose address is at 240 South Pineapple Avenue, Suite 701, Sarasota, FL 34236 (“xG”) in consideration
of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and legal sufficiency of which is hereby
acknowledged, hereby give this release and covenant not to sue in favor of TRECO INTERNATIONAL,
S.A. whose registered office is at Bahnhofstrasse 14, 8022 Zurich, Switzerland (“Treco”). 

 

1.          Unless
otherwise specifically defined herein, all capitalized terms contained herein shall have the same meaning as set forth in that
certain Confidential Settlement Stipulation and Release between the Treco and xG dated April 5, 2011 (the “Stipulation”).

 

2.          Release.
Except for compliance with each of the obligations under the Stipulation, each of xG, for itself, and for its respective past,
present and future representatives, legal representatives, attorneys, successors, assigns, predecessors, insurers, parents, partners,
subsidiaries and affiliated organizations, and the officers, directors, shareholders, employees and partners of each of the foregoing,
hereby unconditionally and irrevocably forever releases, acquits and discharges and covenants not to sue the Treco Parties, or
any of them, and any of their past, present and future representatives, legal representatives, heirs, attorneys, successors, assigns,
predecessors, insurers, parents, partners, subsidiaries and affiliated organizations, and the officers, directors, shareholders,
employees, and partners of each of the foregoing (all of whom are herein jointly and severally referred to as the “Released
Parties”) from any and all claims, demands, actions, causes of action, suits, debts, costs, dues, sums of money,
accounts, bonds, bills, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, expenses
and liabilities whatsoever, known or unknown, matured or unmatured, at law or in equity, irrespective of whether such claims arise
out of contract, tort, violation of laws or regulations or otherwise, which any xG ever had or now has or may have in the future
against the Released Parties, or any of them for, upon or by reason of any manner, cause or thing whatsoever from the beginning
of the world to and including the date hereof including, without limiting the generality of the foregoing, arising out of, in connection
with, or related in any manner to any claims, demands, actions or causes of action arising out of or in connection with any contracts,
agreements, employment or business relationships of any kind whatsoever between any xG and any of the Released Parties, or any
of them including, without limitation, the Amended Agreement, Treco’s purchase and/or ownership of any shares in xG, and
Ms. Lloyd’s employment, in any capacity whatsoever, by xG (collectively, the “Claims”).

 

3.          xG
hereby represents and warrants to the Released Parties that xG has not heretofore expressly or impliedly assigned, transferred,
pledged, hypothecated, sold, conveyed or otherwise disposed of, for the benefit of creditors or otherwise, any of the Claims and
that xG is the sole owner and holder of the Claims.

 

    	4

    	 

    
 

4.          xG
represents and warrants that it has had the advice of counsel of its own choosing in negotiating, preparing, reviewing the final
provisions of and executing this Release, and that it is fully aware of the contents and legal effects of this Release.

 

5.          This
Release is accepted by the Released Parties pursuant to the Stipulation, and this Release shall not be construed as an admission
of liability on the part of the Released Parties or any of the other Released Parties of any kind or nature whatsoever as to any
matter.

 

6.          This
Release shall be binding upon xG and xG’s successors and assigns and shall inure to the benefit of the Released Parties and
their successors and assigns.

 

7.          This
Release and the Stipulation constitute the entire agreement among the parties with respect to the subject matter hereof. It is
expressly understood and agreed that this Release may not be altered, amended, modified or otherwise changed in any respect whatsoever
except by a writing duly executed by authorized Released Parties. This Release and the rights, duties, obligations and responsibilities
of the parties hereto shall be governed by and construed in accordance with the internal laws and decisions of the State of Florida.

 

8.          This
Release may be executed in counterparts, each of which shall be an original and be fully effective as to the party or parties signing
the counterpart, but all such counterparts shall together constitute one instrument.

 

9.          In
any action to enforce, defend or interpret this Release, the prevailing Party shall be entitled to recover from the non-prevailing
Party all of the attorneys’ fees and court costs incurred by the prevailing Party, with no exception, (including costs and
fees incurred prior to the filing of any lawsuit, costs and fees incurred at the trial court and appellate court levels, and costs
and fees incurred as a result of litigating entitlement to, or the amount of, any fees awarded under this Stipulation).

 

10.         xG
hereby acknowledges that the it has not relied upon any representation of any kind made by any of the Released Parties in making
the foregoing release.

 

11.         xG
agrees that if it hereafter commences, joins in, or in any manner seeks, relief through any suit arising out of, based upon, or
relating to any of the Claims or in any manner asserts against such Released Parties, or any of them, any of the Claims, then xG
shall pay to such Released Parties, and each of them, in addition to any other damages caused to such Released Parties thereby,
all attorneys’ fees incurred by such Released Parties in defending or otherwise responding to said suit or claim.

 

12.         xG
hereby irrevocably and unconditionally submits to the jurisdiction of the Circuit Court of the Seventeenth Judicial Circuit in
and for Broward County, Florida, or the United States District Court for the Southern District of Florida, and further irrevocably
and unconditionally stipulates and agrees that such Court shall have jurisdiction to hear and finally determine any dispute, claim,
controversy or action arising out of or connected (directly or indirectly) with this Release.

 

    	5

    	 

    
 

EXECUTED this 5th day of April,
2011.

 

FOR xG:

 

	WITNESS:	 	xG TECHNOLOGY, INC.
	 	 	 	 
	Frederick Wahlman	 	By:	/s/ Richard L. Mooers
	 	 	Name:	Richard L. Mooers
	Roger G. Branton	 	Title:	Chairman

 

    	6

    	 

    
 

	$2,000,000.00 US Dollars	October 10, 2011

 

CONVERTIBLE
PROMISSORY NOTE

 

For value received,
intending to be legally bound xG Technology, Inc. with offices at 240 South Pineapple Avenue, Suite 701, Sarasota, Florida 34236
("xG") hereby issues a convertible promissory note to Treco International, S.A. located at Bahnhofstrasse 14 8022 Zurich,
Switzerland, ("Treco"), in the principal amount of two million dollars ($2,000,000) (“Treco Note”).

 

1.          The
principal amount of the Treco Note shall mature seven years (7) from the date of issuance, without notice or demand, at which point
the entire unpaid principal balance of this Treco Note, together with all unpaid interest thereon, shall be due.

 

2.          The
Treco Note shall bear nine percent (9%) simple interest, with payments of interest only semi-annually either in cash or shares
of xG (at xG’s option).

 

3.          The
Treco Note shall be convertible into shares of xG common stock at $1.00 per share.

 

4.          This
Treco Note shall be governed by and construed and enforced in accordance with the substantive laws of the State of Florida.

 

5.          The
provisions of this Treco Note are severable and the invalidity or unenforceability of any provision shall not alter or impair the
remaining provisions of this Note.

 

IN WITNESS WHEREOF,
xG has caused this Treco Note to be executed on the date first set forth above.

 

	 	/s/ Roger G. Branton
	 	 	 
	 	By:	Roger G. Branton
	 	Title:	CFO

 

    	7

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