Document:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
SUCH ACT AND SUCH LAWS.

 

PROMISSORY NOTE

 

	November 15, 2013	                $500,000.00

Philadelphia, PA

 

FOR VALUE RECEIVED, Thomas J. Knox,
an individual residing at 50 South 16th Street, Suite 2710 Philadelphia, PA 19102 (the “Borrower”),
hereby promises to pay, prior to the first anniversary of the date hereof (the“Maturity Date”), to the order
of Akers Biosciences, Inc., a corporation incorporated under the laws of the State of New Jersey and located at 201 Grove Road,
Thorofare, NJ 08086, and its successors or assigns (the “Holder”), the principal amount of Five Hundred Thousand
United States Dollars (US$500,000.00) and interest on the unpaid principal balance hereof at the rate (“Interest Rate”)
of the thirty (30) day average LIBOR per annum (the “Applicable Rate”) commencing as of the date hereof (the
“Closing Date”), such interest payments to be paid as annual one-time lump sums on or before December 31 of
each calendar year (and prorated for partial calendar years) this Note is in effect and the Interest Rate is to never exceed one
and half times the value of LIBOR as of the Closing Date, in accordance with the terms hereof. This Promissory Note (this note,
and all modifications, extensions, future advances, supplements, and renewals thereof, and any substitutions therefor, hereinafter
referred to as the “Note”) shall be payable in accordance with the terms set forth below. This Note is being
entered by Borrower as a basis to provide the required funds to the Holder, required to convert Borrower’s preferred shares
held of Holder into common shares held of Holder as set forth in the Subscription Agreement entered into by and between Borrower
and Holder on or about September 14, 2012 (the “Subscription Agreement”) and as by the Certificate To Set Forth
Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of Series A Cumulative Convertible Preferred
Stock dated September 14, 2012 (the “Preferred Stock Designations”).

 

1.Payments of Principal
and Interest.

 

(a)Payment of
Principal. The principal amount of this Note shall be paid to the Holder on or prior to the Maturity Date.

 

(b)Payment of
Interest. Interest on the unpaid principal balance of this Note shall accrue at the Applicable Rate commencing on the Closing
Date. Accrued and unpaid interest under this Note shall be paid in full on the Maturity Date.

 

(c)General Payment
Provisions. All payments of principal and interest on this Note shall be made in lawful money of the United States of America
by certified bank check or wire transfer to such account as the Holder may designate by written notice to the Borrower in accordance
with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is
not a Business Day, the same shall instead be due on the next succeeding Business Day. For purposes of this Note, “Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of New York are authorized
or required by law or executive order to remain closed.

 

    	 

    	 

    

 

(d)Prepayment.
At any time prior to the Maturity Date, the Borrower may pre-pay this Note in full or in part without penalty. Upon prepayment
of this Note in full, the Holder shall have no further rights under this Note (except for such rights that may specifically survive
the payment of the Note).

 

2.Events of Default;
Remedies; Collateral.

 

(a)Events of
Default. The occurrence of any of the following events shall constitute an “Event of Default” hereunder:
(i) the Borrower shall fail to pay any installment of interest, principal or other sums due under this Note within fifteen (15)
business days of when any such payment shall be due and payable (the “Grace Period”); (ii) the Borrower makes an assignment
for the benefit of creditors in excess of $10 million; (iii) any order or decree is rendered by a court which appoints or requires
the appointment of a receiver, liquidator or trustee for the Borrower, and the order or decree is not vacated within sixty (60)
days from the date of entry thereof; (iv) any order or decree is rendered by a court adjudicating the Borrower insolvent, and the
order or decree is not vacated within sixty (60) days from the date of entry thereof; (v) the Borrower files a petition in bankruptcy
under the provisions of any bankruptcy law or any insolvency act; (vi) the Borrower admits, in writing, its inability to pay its
debts as they become due (provided, however, that receipt by the Borrower of an audit letter from its accountants questioning the
viability of the Borrower as a going concern shall not, in and of itself, be construed as an admission by the Borrower of its inability
to pay its debts as they become due); (vii) a proceeding or petition in bankruptcy is filed against the Borrower and such proceeding
or petition is not dismissed within ninety (90) days from the date it is filed; (viii) the Borrower files a petition or answer
seeking reorganization or arrangement under the bankruptcy laws or any law or statute of the United States or any other foreign
country or state; (ix), the issuance of a warrant of attachment or for distrait, or of a notice of tax lien against the Borrower
or an attachment or seizure of, or levy upon any property of the Borrower in excess of $10 million, or (x) the Borrower shall fail
to perform, comply with or abide by any of the stipulations, agreements, conditions and/or covenants contained in this Note, the
Subscription Agreement, or any other document by and between the Holder and the Borrower on the part of the Borrower to be performed
complied with or abided by, and such failure is not cured within sixty (60) days after written notice of such failure is delivered
by Holder to the Borrower. Holder shall provide no less than thirty (30) day written notice to Borrower of an Event of Default
as described herein and Borrower shall have no less than thirty (30) days to cure such Event of Defaults from the date the notice
is received by the Borrower.

 

(b)Remedies.
Upon the occurrence of one or more Events of Default, the Holder, at its option and without further notice, demand or presentment
for payment to the Borrower or others, may declare the then outstanding principal balance of this Note, together with all other
sums due under the Note, immediately due and payable, together with all accrued and unpaid interest thereon, together with all
reasonable attorneys’ fees, paralegals’ fees and costs and expenses incurred by the Holder in collecting or enforcing
payment thereof (whether such reasonable fees, costs or expenses are incurred in negotiations, all trial and appellate levels,
administrative proceedings, bankruptcy proceedings or otherwise), and all other sums due by the Borrower hereunder, all without
any relief whatsoever from any valuation or appraisement laws and payment thereof may be enforced and recovered in whole or in
part at any time by one or more of the remedies provided to the Holder at law, in equity, or under this Note.

 

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(c)Collateral.
Upon issuance of this Note, the Holder will issue 50,000,000 shares of its common stock to the Borrower (the “Common Shares”)
pursuant to the Borrower’s conversion of his preferred stock in the Holder, all in accordance with the terms and conditions
of the Subscription Agreement and the Preferred Stock Designations. The Borrower acknowledges that, upon their issuance, the certificates
evidencing the Common Shares shall be delivered by the Holder’s transfer agent to the Holder. The Borrower further acknowledges
that the Holder shall retain the Common Shares until such time as the Borrower has paid in full all amounts owing under this Note;
provided, however, the Borrower hereby agrees and acknowledges that, in the event that the Borrower has failed to pay in full all
amounts owing under this Note on or before the Grace Period, the Holder shall have the right to immediately cancel the Common Shares
only upon convening a board of directors meeting; provided however, upon receiving at least a majority vote of the board of directors,
Holder shall provide no less than thirty (30) day written notice to Borrower prior to cancelling the Common Shares and Borrower
shall have no less than sixty (60) days from the date the notice is received by the Borrower to pay all amounts due and owing under
this Note.

 

(d)The Borrower
hereby agrees to do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the Holder may reasonably request in order to carry out
the intent and accomplish the purposes of this Section 2(c) and the other terms contemplated under this Note.

 

3.Lost or Stolen
Note. Upon notice to the Borrower of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft
or destruction, of an indemnification undertaking by the Holder to the Borrower in a form reasonably acceptable to the Borrower
and customary for similar circumstances in commercial lender/borrower circumstances, and, in the case of mutilation, upon surrender
and cancellation of the Note, the Borrower shall execute and deliver a new Note of like tenor and date and in substantially the
same form as this Note.

 

4.Cancellation.
After all principal, accrued interest and all other sums at any time owed on this Note have been paid in full, this Note shall
automatically be deemed canceled, shall be surrendered to the Borrower for cancellation and shall not be re-issued.

 

5.Governing
Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the laws of the Commonwealth of Pennsylvania, without giving
effect to provisions thereof regarding conflict of laws. Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in the Commonwealth of Pennsylvania for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper, provided, however, nothing contained herein shall limit the Holder’s ability to bring suit or enforce this Note
in any other jurisdiction. Each party hereto hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by sending by certified mail or overnight courier a copy thereof to such party at
the address indicated in the preamble hereto and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

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6.Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies of the Holder as provided herein shall be
cumulative and concurrent and may be pursued singly, successively or together, at the sole discretion of the Holder, and may be
exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be
construed as a waiver or release thereof.

 

7.Specific Shall
Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general provision
contained herein. This Note shall be deemed to be jointly drafted by the Borrower and the Holder and shall not be construed against
any person as the drafter hereof.

 

8.Failure or
Indulgence Not Waiver. Holder shall not be deemed, by any act of omission or commission, to have waived any of its rights or
remedies hereunder, unless such waiver is in writing and signed by Holder, and then only to the extent specifically set forth in
the writing. A waiver on one event shall not be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent
event.

 

9.Notice.
Notice shall be given to each party at the address indicated in the preamble hereto or at such other address as provided to the
other party in writing.

 

10.Usury Savings
Clause. Notwithstanding any provision in this Note, the total liability for payments of interest and payments in the nature
of interest, including, without limitation, all charges, fees, exactions, or other sums which may at any time be deemed to be interest,
shall not exceed the limit imposed by the usury laws of the jurisdiction governing this Note or any other applicable law. In the
event the total liability of payments of interest and payments in the nature of interest, including, without limitation, all charges,
fees, exactions or other sums which may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective
rate of interest, which for any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction
governing this Note, all sums in excess of those lawfully collectible as interest for the period in question shall, without further
agreement or notice by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance of this
Note immediately upon receipt of such sums by the Holder hereof, with the same force and effect as though the Borrower had specifically
designated such excess sums to be so applied to the reduction of such outstanding principal balance and the Holder hereof had agreed
to accept such sums as a penalty-free payment of principal; provided, however, that the Holder of this Note may, at any time and
from time to time, elect, by notice in writing to the Borrower, to waive, reduce, or limit the collection of any sums in excess
of those lawfully collectible as interest rather than accept such sums as a prepayment of the outstanding principal balance. It
is the intention of the parties that the Borrower does not intend or expect to pay nor does the Holder intend or expect to charge
or collect any interest under this Note greater than the highest non-usurious rate of interest which may be charged under applicable
law.

 

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11.Binding Effect.
This Note shall be binding upon the Borrower and the successors and assigns of the Borrower and shall inure to the benefit of Holder
and the successors and assigns of Holder.

 

12.Severability.
In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal, or unenforceable,
in whole or in part, in any respect, or in the event that any one or more of the provisions of this Note operates or would prospectively
operate to invalidate this Note, then and in any of those events, only such provision or provisions shall be deemed null and void
and shall not affect any other provision of this Note. The remaining provisions of this Note shall remain operative and in full
force and effect and shall in no way be affected, prejudiced, or disturbed thereby.

 

13.Amendments.
The provisions of this Note may be changed only by a written agreement executed by the Borrower and Holder.

 

[Signature pages follows]

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IN WITNESS WHEREOF,
the Borrower has caused this Note to be executed on and as of the date set forth above.

 

	 	/s/Thomas Knox	 
	 	THOMAS J. KNOX	 

 

 

    	6AEROFLEX HOLDING CORP.

2013 PERFORMANCE BONUS PLAN 

 

Section
1.Purpose. The purpose of the Aeroflex
Holding Corp. 2013 Performance Bonus Plan (the “Plan”) is to advance the interests of Aeroflex Holding Corp.
(the “Company”) by rewarding selected employees of the Company and its subsidiaries for their contributions
to the Company’s financial success and thereby motivate them to continue to make such contributions in the future by granting
performance-based Awards (as hereinafter defined).

 

Section
2.Definitions. For purposes of
the Plan, the following terms will have the meanings defined below, unless the context clearly requires a different meaning:

 

(a)“Affiliate”
means, with respect to any Person, any other person that, directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person. For purposes of this definition, the term “control,” including its correlative terms
“controlled by” and “under common control with,” mean, with respect to any Person, the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

 

(b)“Applicable
Employee Remuneration” has the meaning given to such term in Section 162(m)(4) of the Code.

 

(c)“Award”
means a cash bonus opportunity under the Plan.

 

(d)“Board”
means the Board of Directors of the Company. 

 

(e)“Code”
means the Internal Revenue Code of 1986, as amended.

 

(f)“Committee”
means the Compensation Committee (or a subcommittee thereof) of the Board. 

 

(g)“Covered
Employee” has the same meaning given to such term in Section 162(m)(3) of the Code; provided, however, that a
person will be considered a Covered Employee for purposes of this Plan only if such employee's Applicable Employee Remuneration
for the relevant Fiscal Year is expected to exceed $1,000,000. 

 

(h)“Fiscal
Year” means the period beginning on July 1 and ending on June 30 or such other period that the Company may hereafter
adopt as its fiscal year.

 

(i)“Participant”
means the executive officers of the Company, any officer of the Company whose employment agreement refers to the Plan for the determination
of an annual Award thereunder, and any other employee of the Company or any Affiliate selected by the Committee to participate
in the Plan. 

 

(j)“Person”
means an individual, a corporation, a partnership, an association, a trust or any other entity or organization.

 

(k)“Performance
Criterion or Criteria” shall have the meaning set forth in Section 4(b) of the Plan.

 

(l)“Performance
Period” means each Fiscal Year after the Effective Date.

 

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Section
3.Administration of Plan. The Committee
shall administer the Plan and is authorized to interpret the Plan and from time to time to adopt such rules, regulations and guidelines
consistent with the provisions of the Plan as it may deem advisable to carry out the Plan, except that the Committee may authorize
any one or more of its members, or any officer of the Company, to execute and deliver documents on behalf of the Committee. Additionally,
the Committee shall have the power, from time to time, to: (i) select the employees of the Company and its Affiliates who will
participate in the Plan in accordance with Section 4(a); (ii) determine the terms and conditions of each Award, provided that such
terms are in accordance with the Plan and not inconsistent with any employment or other agreement then extant; (iii) establish
specific performance goals with respect to the Performance Criterion or Criteria for any Performance Period in accordance with
Section 4 and certify whether and the extent to which such goals have been satisfied; and (iv) correct any defect, supply any omission
or reconcile any inconsistency in the Plan or any Award. All decisions made by the Committee shall be made in the Committee’s
sole and absolute discretion and shall be final and binding on the Participants and all other Persons. 

 

Section
4.Awards. 

 

(a)Eligibility.
Each executive officer of the Company and any other officer whose employment agreement refers to the Plan for the determination
of an annual Award thereunder shall be entitled to participate in the Plan for each fiscal year. Additionally, the Committee may,
in its discretion, select other officers and employees of the Company to participate in the Plan in any Fiscal Year.

 

(b)Performance
Levels or Goals. Within 90 days after each Performance Period begins (or such other date as may be required or permitted under
Section 162(m)), the Committee shall establish and recommend to the Board for approval the three specific levels or goals of the
selected Performance Criterion or Criteria, i.e., a Threshold, Target and Maximum goal or level that must be satisfied in order
for an Award to become payable upon, respectively, the partial, full or over-achievement of the selected Performance Criterion
or Criteria. Such performance objectives will be based upon the following criterion or criteria (the “Performance Criterion
or Criteria”), as determined by the Committee for the Performance Period (subject to further adjustment in accordance
with Section 4(d), below): 

 

(i)the
attainment of certain target levels of, or a specified percentage increase in, revenues (including, without limitation, specified
subsets or measures of revenue, such as “net sales”, “net income” or “pro forma net income”);

 

(ii)the
attainment of certain target levels of, or a specified percentage increase in, earnings before interest, taxes, depreciation and
amortization (“EBITDA”), subject to such adjustments or modifications as may be appropriate, to reflect various types
of accounting adjustments that historically and otherwise have been or are approved by the Compensation Committee; 

 

(iii)the
attainment of certain target levels of, or a specified percentage increase in, operating income; or

 

(iv)the
attainment (whether expressed as an actual amount or as a percentage) of a certain level of, reduction of, or other specified objectives
with regard to limiting the level in or increase in all or a portion of controllable items or expenditures.

 

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(c)Bonus
Levels upon Achievement of Performance Criterion. The bonus opportunity awarded to each Participant will be set by the Committee;
provided however, the bonus payable upon achievement of threshold, target or maximum levels of the selected Performance
Criterion or Criteria will, in the aggregate, be no less than:

 

	Executive Level	Attainment of Threshold Performance	Attainment of Target Performance	Attainment of Maximum Performance
	Chief Executive Officer 	50% of Base Salary	100% of Base Salary	150% of Base Salary
	Executive Vice Presidents	50% of Base Salary	100% of Base Salary	150% of Base Salary
	Senior Executive Officers	33 1/3% of Base Salary	66 2/3% of Base Salary	100% of Base Salary
	Other Officers	33 1/3% of Base Salary	54% of Base Salary	75% of Base Salary
	Other Participants 	Committee Discretion

Amounts payable as an Award under
the Plan based on the achievement of the Performance Criterion or Criteria selected shall be determined by interpolation if the
actual performance attained is either between (X) the Threshold Performance level or goal and the Target Performance level or goal
for such Performance Criterion or (Y) the Target Performance level or goal and the Maximum Performance level or goal for such Performance
Criterion.

 

(d)Adjustments
to Performance Goals. The Committee will, as appropriate, equitably redetermine the threshold, target and maximum for each
Performance Criterion in the event of a divestiture or acquisition or the occurrence of an extraordinary, unforseen circumstance
of consequence during the Performance Period; provided, however, that no such adjustment may be made unless such adjustment
would be permissible under Section 162(m) of the Code. 

 

(e)Maximum
Award Amount Payable. The maximum amount payable hereunder to any single Participant with respect to any particular Performance
Period will not exceed $3,000,000.

 

(f)Payment
Conditioned on Continued Employment. Unless otherwise provided by the Committee or as may be required pursuant to the terms
of an employment or other agreement between the Company and a Participant, no Participant will be entitled to any payment hereunder
with respect to any particular Performance Period unless such Participant has remained continuously employed by the Company or
its Affiliates through the last day of that Performance Period.

 

(g)Committee
Discretion to Increase Awards. At any time prior to the payment of an Award, the Committee may, in its sole discretion, increase
any amount payable to a Participant who the Committee has determined, prior to the payment of the Award, is not a Covered Employee
and who would not become a Covered Employee as a result of any such increase. 

 

Section
5.Payment. No Award shall be payable
except upon written certification by the Committee that the selected Performance Criteria have been satisfied to a particular extent,
provided that no such written certification shall be required if the Participant is not a Covered Employee as determined by the
Committee prior to the payment of an Award. Payment hereunder will be made as soon as practicable after such certification, but
in no event later than March 15th following the end of the Performance Period to which the Award relates.

 

Section
6.General Provisions

 

(a)Amendment.
The Board or the Committee may at any time amend the Plan; provided, however, that no such amendment shall be effective
without approval by the shareholders of the Company to the extent such approval is necessary to continue to qualify the amounts
payable hereunder to Participants as “qualified performance-based compensation” under Section 162(m) of the Code and
provided further that no such amendment to the Plan shall in any way impair the rights of a Participant pursuant to an Award without
such Participant’s consent.

 

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(b)Non-Assignment
of Awards. The Participant shall not be permitted to sell, transfer, pledge or assign any amount payable pursuant to the Plan
or an Award, provided that the right to payment of an Award earned hereunder may pass by will or the laws of descent and distribution.

 

(c)Continued
Employment. Neither the adoption of the Plan nor the execution of any document in connection with the Plan will confer upon
any employee of the Company or an Affiliate any right to continued employment with the Company or such Affiliate. 

 

(d)Withholding.
The Company shall have the right to deduct any Federal, foreign, state or local taxes required by law to be withheld from any payments
made under the Plan.

 

(e)Governing
Law. The Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws and judicial decisions
of the State of New York, without regard to the application of the principles of conflicts of laws.

 

(f)Headings.
The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning
of any of the provisions of the Plan. 

 

(g)Effective
Date. The Plan shall be effective as of July 1, 2014 (the “Effective Date”), provided that the stockholders of
the Company (the “Stockholders”) approve the plan prior to such date. If such approval is not obtained, then
the Plan shall not be effective and shall be void ab initio.

 

(h)Reapproval
by Stockholders. To the extent required under Section 162(m) of the Code and the regulations thereunder, (i) any change to
the material terms of the Performance Criteria shall be disclosed to and approved by the Stockholders at the next annual meeting
of Stockholders to be held following such change, and (ii) the material terms of the Performance Criteria shall be disclosed to
and reapproved by the Stockholders no later than the annual meeting of Stockholders that occurs in the fifth year following the
year in which Stockholders last approved the Performance Criteria.

 

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