Document:

Exhibit

Exhibit 4.1
DESCRIPTION OF THE COMPANY’S COMMON STOCK 
 REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT OF 1934
The following is a summary of the material terms of the common stock of Kimball Electronics, Inc. (“Kimball Electronics,” the “Company,” “we,” “us,” or “our”) that is based on the Company’s Amended and Restated Articles of Incorporation and Amended and Restated By-Laws. The summaries and descriptions below do not purport to be complete statements of the relevant provisions of the Amended and Restated Articles of Incorporation or the Amended and Restated By-Laws.  The summary is qualified in its entirety by reference to these documents, which you must read (along with the applicable provisions of Indiana law) for complete information about our capital stock.  The Amended and Restated Articles of Incorporation and Amended and Restated By-Laws are included as exhibits to our Annual Report on Form 10-K.
General
Our authorized capital stock consists of 150 million shares of common stock, no par value per share, and 15 million shares of preferred stock, no par value per share, of which all of the preferred shares are undesignated. Our Board of Directors may establish the rights and preferences of the preferred shares from time to time.  Our Common Stock is listed and principally traded on the NASDAQ Global Select Market of The NASDAQ Stock Market LLC under the ticker symbol “KE.”
Common Stock
Each holder of our shares of common stock is entitled to one vote for each share on all matters to be voted upon by the common shareholders, and there are no cumulative voting rights. Subject to any preferential rights of any outstanding preferred shares, holders of our common shares are entitled to receive ratably the dividends, if any, as may be declared from time to time by our Board of Directors out of funds legally available for that purpose. If there is a liquidation, dissolution or winding up of us, holders of our common shares are entitled to ratable distribution of our assets remaining after the payment in full of liabilities and any preferential rights of any then outstanding preferred shares.
Holders of our shares of common stock have no preemptive or conversion rights or other subscription rights, and there are no redemption or sinking fund provisions applicable to the common shares. The rights, preferences and privileges of the holders of our common shares are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred equity that we may designate and issue in the future.
Preferred Stock
Under the terms of our Amended and Restated Articles of Incorporation, our Board of Directors is authorized, subject to limitations prescribed by the Indiana Business Corporation Law (“IBCL”), and by our Amended and Restated Articles of Incorporation, to issue up to 15 million shares of preferred equity in one or more series without further action by our shareholders. Our Board of Directors has the discretion, subject to limitations prescribed by the IBCL and by our Amended and Restated Articles of Incorporation, to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred shares.
We believe that the power of our Board of Directors, without shareholder approval, to amend our Articles of Incorporation to classify or reclassify unissued shares of our preferred shares and thereafter to issue such classified or reclassified shares of preferred equity provides us with flexibility in structuring possible future financings and acquisitions and in meeting other needs which might arise. The additional classes or series will be available for issuance without further action by our shareholders, unless shareholder consent is required by applicable law or the rules of any stock exchange or automated quotation system on which our securities may be listed or traded. Although our Board of Directors does not currently intend to do so, it could authorize us to issue an additional class or series of preferred equity that could, depending upon the terms of the additional class or series, delay, defer or prevent a transaction or a change of control of our Company, even if such transaction or change of control involves a premium price for our shareholders or other shareholders believe that such transaction or change of control may be in their best interests.
Anti-Takeover Effects of Various Provisions of Indiana Law and Our Amended and Restated Articles of Incorporation and Amended and Restated By-Laws
Provisions of the IBCL and our Amended and Restated Articles of Incorporation and Amended and Restated By-Laws could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that our Board of Directors may consider inadequate and to encourage persons seeking to acquire control of the Company to first negotiate with our Board of Directors. We believe that the benefits of increased protection of our ability to 

negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.
Control Share Acquisitions.  Under Chapter 42 of the IBCL, an acquiring person or group who makes a “control share acquisition” in an “issuing public corporation” may not exercise voting rights on any “control shares” unless these voting rights are conferred by a majority vote of the disinterested shareholders of the issuing public corporation at a special meeting of those shareholders held upon the request and at the expense of the acquiring person. If control shares acquired in a control share acquisition are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of all voting power, all shareholders of the issuing public corporation have dissenters’ rights to receive the fair value of their shares pursuant to Chapter 44 of the IBCL.
Under the IBCL, “control shares” are shares acquired by a person that, when added to all other shares of the issuing public corporation owned by that person or in respect to which that person may exercise or direct the exercise of voting power, would otherwise entitle that person to exercise voting power of the issuing public corporation in the election of directors within any of the following ranges:
•One-fifth or more but less than one-third;
•One-third or more but less than a majority; or
•A majority or more.
A “control share acquisition” means, subject to specified exceptions, the acquisition, directly or indirectly, by any person of ownership of, or the power to direct the exercise of voting power with respect to, issued and outstanding control shares. For the purposes of determining whether an acquisition constitutes a control share acquisition, shares acquired within any 90-day period or under a plan to make a control share acquisition are considered to have been acquired in the same acquisition.
An “issuing public corporation” means a corporation which has (i) 100 or more shareholders, (ii) its principal place of business or its principal office in Indiana, or that owns or controls assets within Indiana having a fair market value of greater than $1,000,000, and (iii) (A) more than 10% of its shareholders reside in Indiana, (B) more than 10% of its shares owned of record or owned beneficially by Indiana residents, or (C) 1,000 shareholders reside in Indiana.
The provisions described above do not apply if, before a control share acquisition is made, the corporation’s articles of incorporation or bylaws, including a bylaw adopted by the corporation’s board of directors, provide that they do not apply. Our Amended and Restated By-Laws do not so provide and, accordingly, the provisions described above do apply to us.
Certain Business Combinations.  Chapter 43 of the IBCL restricts the ability of a “resident domestic corporation” to engage in any combinations with an “interested shareholder” for five years after the date the interested shareholder became such, unless the combination or the purchase of shares by the interested shareholder on the interested shareholder’s date of acquiring shares is approved by the board of directors of the resident domestic corporation before that date. If the combination was not previously approved, then the interested shareholder may effect a combination after the five-year period only if that shareholder receives approval from a majority of the disinterested shareholders or the offer meets Chapter 43’s specified “fair price” criteria.
For purposes of the above provisions, “resident domestic corporation” means an Indiana corporation that has 100 or more shareholders. “Interested shareholder” means any person, other than the resident domestic corporation or its subsidiaries, who is (1) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the resident domestic corporation or (2) an affiliate or associate of the resident domestic corporation, which at any time within the five-year period immediately before the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding shares of the resident domestic corporation. 
The definition of “beneficial owner” for purposes of Chapter 43 means a person who, directly or indirectly, owns the subject shares, has the right to acquire or vote the subject shares (excluding voting rights under revocable proxies made in accordance with federal law), has any agreement, arrangement or understanding for the purpose of acquiring, holding or voting or disposing of the subject shares, or holds any “derivative instrument” that includes the opportunity, directly or indirectly, to profit or share in any profit derived from any increase in the value of the subject shares.
The above provisions do not apply to corporations that elect not to be subject to Chapter 43 in an amendment to their articles of incorporation approved by a majority of the disinterested shareholders. That amendment, however, cannot become effective until 18 months after its passage and would apply only to share acquisitions occurring after its effective date.  Our Amended and Restated Articles of Incorporation do not exclude us from Chapter 43 and, accordingly, the above provisions do apply to us.

Annual Election of Directors
Under Section 23-1-33-6(c) of the IBCL, a corporation with a class of voting shares registered with the SEC under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), must have a classified board of directors unless the corporation adopts a bylaw expressly electing not to be governed by this provision within 30 days after the corporation’s voting shares are registered under Section 12 of the Exchange Act. Our Amended and Restated By-Laws provide for a classified board of directors divided into three classes as nearly equal in number as possible.
Each director serves for a term ending on the date of the third annual meeting of shareholders following the annual meeting at which such director was elected. The foregoing notwithstanding, each director will serve until his or her successor shall have been duly elected and qualified, unless such director resigns, becomes disqualified, disabled or otherwise be removed. No director, other than a director who is also an employee of the Company, shall serve more than four (4) consecutive three-year terms in such capacity unless otherwise determined by the Board of Directors; provided, however, that any years spent serving an incomplete term shall not be considered in such calculation. In addition, a director shall automatically retire at the close of the first annual shareholders meeting following his or her 72nd birthday, unless otherwise determined by the Board of Directors.  At any meeting of shareholders for the election of directors at which a quorum is present, the election will be determined by a majority of votes cast with respect to the director, provided that if as of the record date for such meeting the number of director nominees to be considered at the meeting exceeds the number of directors to be elected, each director shall be elected by a vote of the plurality of the shares represented in person or by proxy and entitled to vote on the election of directors. As used herein, a majority of the votes cast means that the number of shares voted “for” a director must exceed the number of shares voted “against” such director. Our Amended and Restated By-Laws provide for a director resignation policy, which requires an incumbent director who does not receive the requisite affirmative majority of the votes cast for his or her re-election to immediately tender his or her resignation to the Board of Directors, after which the Compensation and Governance Committee will then make a recommendation to the Board on whether to accept the tendered resignation or to take other action.
Lead Independent Director
The Board of Directors may include a Lead Independent Director. If the Board of Directors determines to have a Lead Independent Director, the Lead Independent Director shall be an independent director and shall be elected by a majority of the independent directors annually.
Removal of Directors
Our Amended and Restated Articles of Incorporation provide that our directors may be removed only at a meeting of shareholders or directors called expressly for that purpose and, in the case of removal by shareholders, only for cause.  In addition, under Section 23-1-33-8(a) of the IBCL, and as provided in our Amended and Restated Articles of Incorporation, a director may be removed, with or without cause, by the affirmative vote of a majority of the directors then in office.
Amendments to Amended and Restated Articles of Incorporation
Our Amended and Restated Articles of Incorporation may be amended to the extent and in the manner permitted or prescribed by statute.
Amendments to By-Laws
Under Section 23-1-39-1 of the IBCL, only the board of directors of a corporation may amend the bylaws, and shareholders do not have the right to amend the bylaws unless the articles of incorporation provide otherwise. Our Amended and Restated Articles of Incorporation and Amended and Restated By-Laws provide that our bylaws may be amended exclusively by our Board of Directors.
Size of Board and Vacancies
Our Amended and Restated By-Laws provide that the number of directors on our Board of Directors shall not be less than three or more than twelve. Any vacancies created in our Board of Directors resulting from any increase in the authorized number of directors, or the death, resignation, retirement, disqualification, removal from office or other cause, will be filled by a majority of the Board of Directors then in office, even if less than a quorum is present, or by a sole remaining director. Any director appointed to fill a vacancy on our Board of Directors will be appointed for a term expiring at the next election of the class for which such director has been appointed, and until his or her successor has been elected and qualified.
Special Shareholder Meetings
Our Amended and Restated By-Laws provide that only our Board of Directors or expressly authorized officers may call special meetings of our shareholders. Shareholders may not call special shareholder meetings. Business that may be transacted at special 

shareholder meetings is limited to business stated in the notice of the meeting. Shareholders may not submit business proposals for consideration at, or nominate persons for election as directors at, special shareholder meetings.
Shareholder Action by Unanimous Written Consent
Under Section 23-1-29-4(a) of the IBCL, and as provided in our Amended and Restated By-Laws, shareholders may act without a meeting only by unanimous written consent.
Requirements for Advance Notification of Shareholder Nominations and Proposals
Our Amended and Restated By-Laws establish advance notice procedures with respect to shareholder proposals and nomination of candidates for election as directors other than nominations made by or at the direction of our Board of Directors or a committee of our Board of Directors. These advance-notice provisions may have the effect of precluding a contest for the election of our directors or the consideration of shareholder proposals if the proper procedures are not followed, or discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal, without regard to whether consideration of those nominees or proposals might be harmful or beneficial to us and our shareholders.
No Cumulative Voting
The IBCL provides that shareholders are denied the right to cumulate votes in the election of directors unless the company’s articles of incorporation provide otherwise. Our Amended and Restated Articles of Incorporation do not provide for cumulative voting.
Undesignated Preferred Shares
The authority that our Board of Directors possess to issue preferred shares could potentially be used to discourage attempts by third parties to obtain control of us through a merger, tender offer, proxy contest or otherwise by making such attempts more difficult or more costly. Our Board of Directors may be able to issue preferred shares with voting or conversion rights that, if exercised, could adversely affect the voting power of the holders of our common equity.
Forum Selection
Our Amended and Restated By-Laws provide that the state and U.S. federal courts located in the State of Indiana will be the sole and exclusive forum for any derivative action or proceeding brought on our behalf, any action asserting a claim of breach of a fiduciary duty owed by any of our directors or officers or other employees to us or our shareholders, any action asserting a claim against us or any of our directors or officers or other employees arising pursuant to any provision of the IBCL or our Amended and Restated Articles of Incorporation or Amended and Restated By-Laws or any action asserting a claim against us or any of our directors or officers or other employees governed by the internal affairs doctrine.
Directors’ Duties and Liability
Under Chapter 35 of the IBCL, directors are required to discharge their duties in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances and in a manner that the directors reasonably believe to be in the best interest of the corporation. Under the IBCL, a director is not liable for any action taken as a director, or any failure to act, regardless of the nature of the alleged breach of duty (including alleged breaches of the duty of care, the duty of loyalty, and the duty of good faith) unless the director has breached or failed to perform the duties of the director’s office and the action or failure to act constitutes willful misconduct or recklessness. This exculpation from liability under the IBCL does not affect the liability of directors for violations of the federal securities laws.
Indemnification
Chapter 37 of the IBCL authorizes every Indiana corporation to indemnify its officers and directors under certain circumstances against liability incurred in connection with proceedings to which the officers or directors are made a party by reason of their relationship to the corporation. Officers and directors may be indemnified where they have acted in good faith, and in the case of official action, they reasonably believed the conduct was in the corporation’s best interests, and in all other cases, they reasonably believed the action taken was not against the best interests of the corporation, and in the case of criminal proceedings they either had reasonable cause to believe the action was lawful or there was no reasonable cause to believe the action was unlawful. Chapter 37 of the IBCL also requires every Indiana corporation to indemnify any of its officers or directors (unless limited by the corporation’s articles of incorporation) who were wholly successful, on the merits or otherwise, in the defense of any such proceeding against reasonable expenses incurred in connection with the proceeding. Under certain circumstances, a corporation may also pay for or reimburse the reasonable expenses incurred by an officer or director who is a party to a proceeding in advance of final disposition of the proceeding. Chapter 37 of the IBCL states that the indemnification provided for therein is not exclusive of any other rights to which a person may be entitled under the corporation’s articles of incorporation, or bylaws or resolutions of the corporation’s board of directors or shareholders.

Our Amended and Restated Articles of Incorporation provide for indemnification, to the fullest extent permitted by the IBCL, of our directors, officers and other employees against liability and reasonable expenses that may be incurred by them in connection with proceedings in which they are made a party by reason of their relationship to Kimball Electronics.
Consideration of Effects on Other Constituents
Chapter 35 of the IBCL provides that a board of directors, in discharging its duties, may consider, in its discretion, both the long-term and short-term best interests of the corporation, taking into account, and weighing as the directors deem appropriate, the effects of an action on the corporation’s shareholders, employees, suppliers and customers and the communities in which offices or other facilities of the corporation are located and any other factors the directors consider pertinent. Directors are not required to consider the effects of a proposed corporate action on any particular corporate constituent group or interest as a dominant or controlling factor. If a determination is made with the approval of a majority of the disinterested directors of the corporation’s board of directors, that determination is conclusively presumed to be valid unless it can be demonstrated that the determination was not made in good faith after reasonable investigation. Chapter 35 specifically provides that specified judicial decisions in Delaware and other jurisdictions, which might be looked upon for guidance in interpreting Indiana law, including decisions that propose a higher or different degree of scrutiny in response to a proposed acquisition of the corporation, are inconsistent with the proper application of the business judgment rule under Chapter 35.
Authorized but Unissued Shares
Our authorized but unissued common and preferred shares will be available for future issuance without shareholder approval. We may use additional shares for a variety of purposes, including future public offerings or private placements to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued common and preferred shares could render more difficult, or discourage, an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Computershare Trust Company, NA.Exhibit 10.1

Employment Agreement – William
H. Craig

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (this “Agreement”)
is made on the 27st day of August, 2020 by and between William H. Craig (the “Employee”) and IEH
Corporation, a New York corporation (the “Company”), provided that the effective date of this Agreement shall
be the next business day after (i) the date the Company files with the U.S. Securities and Exchange Commission its Annual Report
on Form 10-K, and (ii) the official retirement date of Robert Knoth, the current Chief Financial Officer of the Company (the “Effective
Date”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and
its subsidiaries are engaged in the business of designing, developing and manufacturing printed circuit and plastic circular connectors
for high performance applications utilizing the HYPERBOLOID contact design; and

 

WHEREAS, the Employee desires
to be employed by the Company as the Chief Financial Officer and Treasurer of the Company, and the Company desires to employ the
Employee and secure for the Company the experience, ability and services of the Employee;

 

WHEREAS, the Employee desires
to become employed by the Company, pursuant to the terms and conditions herein set forth, superseding all prior oral and written
employment agreements, and term sheets and letters between the Company, its subsidiaries and/or predecessors and Employee; and

 

WHEREAS, this Agreement
supersedes any and all prior oral and written agreements and writings between the Employee and the Company.

 

NOW, THEREFORE, it is mutually
agreed by and between the parties hereto as follows:

 

ARTICLE I

DEFINITIONS

 

1.1               Accrued
Compensation. “Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued
through the Termination Date (as defined below) but not paid as of the Termination Date, including: (a) Base Salary; (b) reimbursement
for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement
policy in effect at such time; (c) vacation pay; and (d) unpaid bonuses and incentive compensation earned and awarded prior to
the Termination Date.

 

1.2               Cause.
“Cause” shall mean: (a) willful disobedience by the Employee of a material and lawful instruction of the Chief
Executive Officer or Board of Directors of the Company (the “Board”); (b) formal charge, indictment or conviction
of the Employee of any misdemeanor involving fraud or embezzlement or similar crime, or any felony; (c) conduct amounting to fraud,
dishonesty, gross negligence, willful misconduct or recurring insubordination; or (d) excessive absences from work, other than
for illness or Disability; provided that the Company shall not have the right to terminate the employment of Employee pursuant
to the foregoing clauses (a), (c), and (d) above unless written notice specifying such breach shall have been given to the Employee
and, in the case of breach which is capable of being cured, the Employee shall have failed to cure such breach within 30 days after
his receipt of such notice.

     

     

    

 

1.3               Change in
Control. A “Change in Control” shall mean any of the following events:

 

       (a)        (i) An acquisition
(other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by
any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act
of 1934, as amended (the “1934 Act”)) immediately after which such Person has “Beneficial Ownership”
(within the meaning of Rule 13d-3 promulgated under the 1934 Act) of twenty percent (20%) or more of the combined voting power
of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change in Control has
occurred, Voting Securities which are acquired in a “Non-Control Acquisition” (as defined below) shall not constitute
an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition
by: (1) an employee benefit plan (or a trust forming a part thereof) maintained by (x) the Company or (y) any corporation or other
Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by the
Company (a “Subsidiary”); or (2) the Company or any Subsidiary; and

       

       (ii) Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because a Person (the “Subject Person”)
gained Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition
of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person, provided that if a Change in Control would occur (but for the operation
of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such share acquisition by the Company,
the Subject Person becomes the Beneficial Owner of any additional Voting Securities which increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur.

 

       (b)       The
individuals who, as of the date this Agreement is approved by the Board, are members of the Board (the “Incumbent Board”),
cease for any reason to constitute at least two-thirds (2⁄3) of
the Board; provided, however, that if the election, or nomination for election by the Company’s stockholders, of any new
director was approved by a vote of at least two-thirds (2⁄3) of the Incumbent Board, such new director shall, for purposes
of this Agreement, be considered and defined as a member of the Incumbent Board; and provided, further, that no individual shall
be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual “Election
Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other solicitation of proxies or consents by
or on behalf of a Person other than the Board (a “Proxy Contest”); or

 

       (c)       Approval by stockholders of
the Company of:

 

     

     

    

       (i)       A
merger, consolidation or reorganization involving the Company, unless: (1) the stockholders of the Company, immediately before
such merger, consolidation or reorganization, own, directly or indirectly immediately following such merger, consolidation or reorganization,
at least sixty percent (60%) of the combined voting power of the outstanding voting securities of the corporation resulting from
such merger or consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion
as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization; (2) the individuals
who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation
or reorganization constitute at least two-thirds (2⁄3) of the
members of the board of directors of the Surviving Corporation; and (3) no Person (other than the Company, any Subsidiary, any
employee benefit plan (or any trust forming a part thereof) maintained by the Company, the Surviving Corporation or any Subsidiary)
becomes Beneficial Owner of twenty percent (20%) or more of the combined voting power of the Surviving Corporation’s then
outstanding voting securities as a result of such merger, consolidation or reorganization, a transaction described in clauses (1)
through (3) shall herein be referred to as a “Non-Control Transaction”; or

 

       (ii)        An agreement
for the sale or other disposition of all or substantially all of the assets of the Company, to any Person, other than a transfer
to a Subsidiary, in one transaction or a series of related transactions;

 

       (iii)       The shareholders
of the Company approve any plan or proposal for the liquidation or dissolution of the Company.

 

       (d)       Notwithstanding
anything contained in this Agreement to the contrary, if the Employee’s employment is terminated prior to a Change in Control
and the Employee reasonably demonstrates that such termination: (i) was at the request of a third party who has indicated an intention
or taken steps reasonably calculated to effect a Change in Control (a “Third Party”); or (ii) otherwise occurred
in connection with, or in anticipation of, a Change in Control, then for all purposes of this Agreement, the date of a Change in
Control with respect to the Employee shall mean the date immediately prior to the date of such termination of the Employee’s
employment.

 

1.4               Continuation
Benefits. “Continuation Benefits” shall be the continuation of the Benefits, as defined in Section 5.1,
for the period commencing on the Termination Date and terminating 12 months thereafter, or such other period as specifically stated
by this agreement (the “Continuation Period”) at the Company’s expense on behalf of the Employee and his
dependents; provided, however, that: (a) in no event shall the Company be obligated to provide Continuation Benefits until after
the Employee’s first anniversary date of employment by the Company; (b) in no event shall the Continuation Period exceed
12 months from the Termination Date; and (c) the level and availability of benefits provided during the Continuation Period shall
at all times be subject to the post-employment conversion or portability provisions of the benefit plans. The Company’s obligation
hereunder with respect to the foregoing benefits shall also be limited to the extent that if the Employee obtains any such benefits
pursuant to a subsequent employer's benefit plans, the Company may reduce the coverage of any benefits it is required to provide
the Employee hereunder as long as the aggregate coverage and benefits of the combined benefit plans is no less favorable to the
Employee than the coverage and benefits required to be provided hereunder. This definition of Continuation Benefits shall not be
interpreted so as to limit any benefits to which the Employee, his dependents or beneficiaries may be entitled under any of the
Company’s employee benefit plans, programs or practices following the Employee’s termination of employment, including,
without limitation, retiree medical and life insurance benefits.

 

     

     

    

1.5              Disability.
“Disability” shall mean a physical or mental infirmity which impairs the Employee’s ability to substantially
perform his duties with the Company for a period of sixty (60) consecutive days and the Employee has not returned to his full time
employment prior to the Termination Date as stated in the “Notice of Termination” (as defined below).

 

1.6               Good Reason.
“Good Reason” shall mean without the written consent of the Employee: (a) a material breach of any provision
of this Agreement by the Company; (b) failure by the Company to pay when due any compensation to the Employee; (c) a reduction
in the Employee’s Base Salary; (d) failure by the Company to maintain the Employee in the positions referred to in Section
2.1 of this Agreement; (e) assignment to the Employee of any duties materially and adversely inconsistent with the Employee’s
positions, authority, duties, responsibilities, powers, functions, reporting relationship or title or any other action by the Company
that results in a material diminution of such positions, authority, duties, responsibilities, powers, functions, reporting relationship
or title; or (f) a Change in Control, provided the event on which the Change of Control is predicated occurs within 90 days of
the service of the Notice of Termination by the Employee, it being understood that Employee shall have the right to terminate his
employment under this Section 1.6(f) for any reason or no reason within such 90-day period; and provided further,
however, that the Employee agrees not to terminate his employment for Good Reason pursuant to clauses (a) through (e) unless: (i)
the Employee has given the Company at least 30 days’ prior written notice of his intent to terminate his employment for Good
Reason, which notice shall specify the facts and circumstances constituting Good Reason; and (ii) the Company has not remedied
such facts and circumstances constituting Good Reason to the reasonable and good faith satisfaction of the Employee within a 30-day
period after receipt of such notice.

 

1.7               Notice of
Termination. A “Notice of Termination” shall mean a written notice from the Company, or the Employee, of
termination of the Employee’s employment which indicates the provision in this Agreement relied upon, if any and which sets
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment
under the provision so indicated. A Notice of Termination served by the Company shall specify the effective date of termination.

 

1.8               Pro Rata
Bonus. “Pro Rata Bonus” shall mean an amount equal to the maximum bonus Employee had an opportunity to earn
pursuant to Section 4.2 multiplied by a fraction, the numerator of which shall be the number of days from the commencement
of the fiscal year to the Termination Date, and the denominator of which shall be the number of days in the fiscal year in which
Employee was terminated.

 

     

     

    

1.9               Severance
Payment. “Severance Payment” shall mean an amount equal to the sum of 12 months of Employee’s Base
Salary in effect on the Termination Date. The Severance Payment shall be payable in equal installments on each of the Company’s
regular pay dates for executives during the 12 months commencing on the first regular executive pay date following the Termination
Date. The Severance Payment is conditioned on the Employee executing a termination agreement and release in a form reasonably acceptable
to the Employee and the Company. In no event, however, shall the Company be obligated to pay the Severance Payment unless the Termination
Date occurs on or after the Employee’s first anniversary date of employment by the Company;

 

1.10               Termination
Date. “Termination Date” shall mean: (a) in the case of the Employee’s death, his date of death; (b)
in the case of Good Reason, 30 days from the date the Notice of Termination is given to the Company, provided the Company has not
remedied such facts and circumstances constituting Good Reason to the reasonable and good faith satisfaction of the Employee; (c)
in the case of termination of employment on or after the Expiration Date, the last day of employment; and (d) in all other cases,
the date specified in the Notice of Termination; provided, however, if the Employee’s employment is terminated by
the Company for any reason except Cause, the date specified in the Notice of Termination shall be at least 30 days from the date
the Notice of Termination is given to the Employee, and provided further that in the case of Disability, the Employee shall not
have returned to the full-time performance of his duties during such period of at least 30 days.

 

ARTICLE
II

EMPLOYMENT

 

2.1       Upon
the terms and subject to the conditions of this Agreement, the Company hereby agrees to employ the Employee, and the Employee hereby
agrees to become employed, as Treasurer and Chief Financial Officer of the Company. The Employee’s position includes acting
as an officer and/or director of any of the Company’s subsidiaries as determined by the Board of Directors.

 

ARTICLE
III

DUTIES

 

3.1       The
Employee shall, during the term of his employment with the Company, and subject to the direction and control of the Company’s
Chief Executive Officer and the Board of Directors, report directly to the Board of Directors and shall exercise such authority,
perform such executive duties and functions and discharge such responsibilities as are reasonably associated with his executive
position or as may be reasonably assigned or delegated to him from time to time by the Company’s Chief Executive Officer
and the Board of Directors, consistent with his position as Treasurer and Chief Financial Officer.

 

3.2       The
Employee shall perform, in conjunction with the Company’s executive management, to the best of his ability the following
services and duties for the Company and its subsidiary corporations (by way of example, and not by way of limitation):

 

(a)       Those
duties attendant to the position of Treasurer and Chief Financial Officer;

 

     

     

    

(b)       Establish
and implement current and long range objectives, plans, and policies, subject to the approval of the Company’s Chief Executive
Officer and the Board of Directors;

 

(c)       Financial
planning including the development of, liaison with, financing sources and investment bankers;

 

(d)       Managerial
oversight of the Company’s accounting department;

 

(e)       Primary
responsibility for the preparation and filing of all financial activity reports with federal and state regulatory authorities;

 

(f)       Acquiring
appropriate insurance coverage to safeguard Company’s assets (excluding workers’ compensation coverage and medical
benefits);

 

(g)       Evaluation
and integration of acquisitions, joint ventures, and other opportunities; and

 

(h)       Promotion
of the relationships of the Company with its respective employees, customers, suppliers and others in the business community.

 

(i)       Shareholder
relations;

 

(j)       Compliance
with local, state and federal regulations and laws governing business operations.

 

3.3       The
Employee agrees to devote full business time and his or her best efforts in the performance of his or her duties for the Company.

 

3.4       Employee
shall undertake regular travel to the Company’s executive and operational offices, and such other occasional travel within
or outside the United States as is or may be reasonably necessary in the interests of the Company. All such travel shall be at
the sole cost and expense of the Company and shall include reasonable lodging and food costs incurred by Employee while traveling.

 

ARTICLE
IV

COMPENSATION

 

4.1       During
the term of this Agreement, Employee shall be compensated initially at the rate of $225,000 per annum, subject to such increases,
if any, as determined by the Chief Executive Officer and the Compensation Committee (the “Committee”), in its
discretion, at the commencement of each of the Company’s fiscal years during the term of this Agreement (the “Base
Salary”). The Base Salary shall be paid to the Employee in accordance with the Company’s regular executive payroll
periods.

 

     

     

    

4.2       Employee
may receive a bonus (the “Bonus”) in the sole discretion of the Committee in accordance with the following parameters:

 

(a)       Employee
will have an opportunity to earn a cash Bonus for each fiscal year of employment. The Bonus will be based on performance targets
and other key objectives established by the Committee, at the commencement of each fiscal year, and the determination of whether
the performance criteria shall have been attained shall be solely in the discretion of the Committee.

 

4.3       The
Company shall deduct from Employee’s compensation all federal, state, and local taxes which it may now or hereafter be required
to deduct.

 

4.4       The
Employee shall be eligible to receive option grants to the Company’s 2011 Equity Incentive Plan (or if applicable any comparable
successor plan).

 

4.5       Employee
may receive such other additional compensation as may be determined from time to time by the Committee, including bonuses and other
long-term compensation plans. Nothing herein shall be deemed or construed to require the Committee, to award any bonus or additional
compensation.

 

4.6       Notwithstanding
any other provisions in this Agreement to the contrary, the Employee agrees and acknowledges that any incentive-based compensation,
or any other compensation, paid or payable to Employee pursuant to this Agreement or any other agreement or arrangement with the
Company which is subject to recoupment or clawback under any applicable law, government regulation, or stock exchange listing requirement,
including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act and such regulations as may be promulgated
thereunder by the Securities and Exchange Commission, will be subject to such deductions and clawback (recovery) as may be required
to be made pursuant to applicable law, government regulation, stock exchange listing requirement or any policy of the Company adopted
pursuant to any such law, government regulation, or stock exchange listing requirement. This section shall survive the termination
of this Agreement for a period of three (3) years.

 

ARTICLE
V

BENEFITS

 

5.1       During
the term hereof, the Company shall provide Employee with the following benefits (the “Benefits”): (a) group
health care and insurance benefits as generally made available to the Company’s senior management; (b) travel expenses, including
a gas allowance and payment of an EZ Pass during the term of this Agreement and (c) such other insurance benefits obtained by the
Company and made generally available to the Company’s senior management. The Company shall reimburse Employee, upon presentation
of appropriate vouchers, for all reasonable business expenses incurred by Employee on behalf of the Company upon presentation of
suitable documentation.

 

     

     

    

5.2       For
the term of this Agreement, Employee shall be entitled to paid vacation at the rate of two (2) weeks per annum plus five (5) sick
days in accordance with the laws of the State of New York.

 

ARTICLE
VI

NON-DISCLOSURE

 

6.1       The
Employee shall not, at any time during or after the termination of his employment hereunder, except when acting on behalf of and
with the authorization of the Company, make use of or disclose to any person, corporation, or other entity, for any purpose whatsoever,
any trade secret or other confidential information concerning the Company’s business, finances, marketing, accounting, personnel
and/or staffing business of the Company and its subsidiaries, including information relating to any customer of the Company or
pool of temporary or permanent employees, governmental customer or any other nonpublic business information of the Company and/or
its subsidiaries learned as a consequence of Employee’s employment with the Company (collectively referred to as the “Proprietary
Information”). For the purposes of this Agreement, trade secrets and confidential information shall mean information
disclosed to the Employee or known by him as a consequence of her employment by the Company, whether or not pursuant to this Agreement,
and not generally known in the industry. The Employee acknowledges that Proprietary Information, trade secrets and other items
of confidential information, as they may exist from time to time, are valuable and unique assets of the Company, and that disclosure
of any such information would cause substantial injury to the Company. Trade secrets and confidential information shall cease to
be trade secrets or confidential information, as applicable, at such time as such information becomes public other than through
disclosure, directly or indirectly, by Employee in violation of this Agreement.

 

6.2       If
Employee is requested or required (by oral questions, interrogatories, requests for information or document subpoenas, civil investigative
demands, or similar process) to disclose any Proprietary Information, Employee shall, unless prohibited by law, promptly notify
the Company of such request(s) so that the Company may seek an appropriate protective order. Notwithstanding the foregoing, Employee
understands that nothing contained in this Agreement limits Employee’s ability from reporting possible violations of federal
law or regulation to any federal, state or local governmental agency or entity, including but not limited to the Department of
Justice, the Securities and Exchange Commission, or any agency Inspector General (“Government Agencies”), or
making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Employee further understands
that this Agreement does not limit Employee’s ability to communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information,
without notice to the Company. This Agreement does not limit Employee’s right to receive an award for information provided
to any Government Agencies.

 

     

     

    

6.3       Except
as otherwise may be agreed by the Company in writing, in consideration of the employment of Employee by the Company, and free of
any additional obligations of the Company to make additional payment to Employee, Employee hereby agrees to irrevocably assign
to the Company any and all of Employee’s rights (including patent rights, copyrights, trade secret rights and other rights,
throughout the world), title and interest in and to all inventions, software, manuscripts, documentation, improvements or other
intellectual property whether or not protectable by any state or federal laws relating to the protection of intellectual property,
relating to the present or future business of the Company that are developed by Employee during the term of his/her employment
with the Company, either alone or jointly with others, and whether or not developed during normal business hours or arising within
the scope of his/her duties of employment. Employee agrees that all such inventions, software, manuscripts, documentation, improvement
or other intellectual property shall be and remain the sole and exclusive property of the Company and shall be deemed the product
of work for hire. Employee hereby agrees to execute such assignments and other documents as the Company may consider appropriate
to vest all right, title and interest therein to the Company and hereby appoints the Company as Employee’s attorney-in-fact
with full powers to execute such document itself in the event employee fails or is unable to provide the Company with such signed
documents. Employee shall also assign to, or as directed by, the Company, all of his right, title and interest in and to any and
all inventions and other intellectual property, the full title to which is required to be in the United States government of any
of its agencies. The Company shall have all right, title and interest in all research and work product produced by Employee as
an employee of the Company, including, but not limited to, all research materials. Notwithstanding the foregoing, this provision
does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the Company was used
and which was developed entirely on Employee’s own time unless: (a) the invention relates: (i) to the business of the Company;
or (ii) to the Company’s actual or demonstrably anticipated research or development; or (b) the invention results from any
work performed by Employee for the Company.

 

ARTICLE
VII

RESTRICTIVE COVENANT

 

7.1       During
the term of Employment with the Company, and for a period of one (1) year following termination of employment for any reason, Employee
agrees that he will not, directly or indirectly, enter into or become associated with or engage in any other business (whether
as a partner, officer, director, shareholder, employee, consultant, or otherwise), which is involved in the business of: (a) designing,
developing and manufacturing printed circuit connectors and plastic circular connectors for high performance applications utilizing
the HYPERBOLOID contact design; or (b) is otherwise engaged in the same or similar business as the Company in direct competition
with the Company, or which the Company was in the process of developing, during the tenure of Employee’s employment by the
Company (collectively, a “Competitive Business”). Notwithstanding the foregoing, the ownership by Employee of
less than five percent of the shares of any publicly held corporation shall not violate the provisions of this Article VII.

 

7.2       In
furtherance of, and in addition to, Section 7.1, during the period of non-competition specified in Section 7.1 (the
“Restricted Period”), Employee shall not during the Restricted Period, directly or indirectly, whether as a
principal, agent, employee, independent contractor, employer, partner or shareholder, in connection with or related to any Competitive
Business, solicit: (a) any actual customers, partners or contracts addressed by the Company during the tenure of Employee’s
employment; or (b) any customers, partners or contracts that were within the Company’s business development pipeline within
the twelve-month period ending on the effective date of the termination of employment. In addition, Employee will not during the
Restricted Period, either directly or indirectly, whether as a principal, agent, employee, independent contractor, employer, partner
or shareholder, solicit, hire, attempt to solicit or hire, or participate in any attempt to solicit or hire, any person who is
employed by the Company or retained as a consultant by the Company (or who was employed or retained by the Company within 12 months
of the Termination Date or who was being actively recruited by the Company) to: (A) terminate his employment or engagement with
the Company; (B) accept employment or engagement with anyone other than the Company; or (C) in any manner interfere with
the business of the Company.

 

     

     

    

7.3       Employee
hereby acknowledges that the covenants and agreements contained in Article VI and Article VII of this Agreement (the
“Restrictive Covenants”) are reasonable and valid in all respects and that the Company is entering into this
Agreement, inter alia, on such acknowledgement. If Employee breaches, or threatens to commit a breach, of any of the Restrictive
Covenants, the Company shall have the following rights and remedies, each of which rights and remedies shall be independent of
the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to the Company under law or in equity: (a) the right and remedy to have the Restrictive Covenants
specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened
breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company;
(b) the right and remedy to require Employee to account for and pay over to the Company such damages as are recoverable at law
as the result of any transactions constituting a breach of any of the Restrictive Covenants; (c) if any court determines that any
of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants shall
not thereby be affected and shall be given full effect, without regard to the invalid portions; and (d) if any court construes
any of the Restrictive Covenants, or any part thereof, to be unenforceable because of the duration of such provision or the area
covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such
provision shall then be enforceable and shall be enforced. The parties intend to and hereby confer jurisdiction to enforce the
Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of such Restrictive Covenants. If the courts
of any one or more such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of the breadth of such scope
or otherwise, it is the intention of the parties that such determination not bar or in any way affect the Company’s right
to the relief provided above in the courts of any other jurisdiction, within the geographical scope of such Restrictive Covenants,
as to breaches of such Restrictive Covenants in such other respective jurisdiction such Restrictive Covenants as they relate to
each jurisdiction being, for this purpose, severable into diverse and independent covenants.

 

     

     

    

ARTICLE
VIII

TERM

 

8.1       This
Agreement shall be for a term of two (2) years (the “Initial Term”) commencing on the Effective Date as set
forth above (the “Commencement Date”) and terminating on August 27, 2022 (the “Expiration Date”),
unless sooner terminated upon the death of the Employee, or as otherwise provided herein.

 

8.2       Unless
this Agreement is earlier terminated pursuant to the terms hereof, the Company agrees to use its best efforts to notify Employee
in writing of the Company’s intention to continue Employee’s employment after the Expiration Date no less than ninety
(90) days prior to the Expiration Date. In the event the Company either: (a) fails to notify the Employee in accordance with this
Section 8.2; (b) notifies Employee that it does not intend to continue the Employee’s employment after the Expiration
Date; or (c) after notifying the Employee pursuant to Section 8.2, fails to reach an agreement on a new employment agreement
prior to the Expiration Date, then upon termination of the Employee’s employment on or after the Expiration Date for any
reason except Cause, the Company shall pay Employee the Severance Payment, Accrued Compensation and the Continuation Benefits.

 

ARTICLE
IX

TERMINATION

 

9.1       The
Company may terminate this Agreement by giving a Notice of Termination to the Employee in accordance with this Agreement:

 

(a)       for
Cause;

(b)       without
Cause; and

(c)       for
Disability.

 

9.2       Employee
may terminate this Agreement by giving a Notice of Termination to the Company in accordance with this Agreement, at any time, with
or without Good Reason.

 

9.3       If
the Employee’s employment with the Company shall be terminated, the Company shall pay and/or provide to the Employee (or
in the case of his death, to his heirs and beneficiaries) the following compensation and benefits in lieu of any other compensation
or benefits arising under this Agreement or otherwise:

 

(a)       if
the Employee was terminated by the Company for Cause, or the Employee terminates without Good Reason: the Accrued Compensation;

 

(b)       if
the Employee was terminated by the Company for Disability: (i) the Continuation Benefits; (ii) the Accrued Compensation; and (iii)
the Severance Payment;

 

(c)       if
termination was due to the Employee’s death: (i) the Accrued Compensation; (ii) the Continuation Benefits; (iii) the Pro
Rata Bonus; and (iv) the Severance Payment; or

 

     

     

    

(d)       if
the Employee was terminated by the Company without Cause, or the Employee terminates this Agreement for Good Reason: (i) the Accrued
Compensation; (ii) the Severance Payment; and (iii) the Continuation Benefits.

 

9.4       The
amounts payable under this Section 9, shall be paid as follows:

 

(a)       Accrued
Compensation shall be paid to the Employee (or in the case of his death, to his heirs and beneficiaries) within five (5) business
days after the Employee’s Termination Date (or earlier, if required by applicable law);

 

(b)       If
the Continuation Benefits are paid in cash, the payments shall be made to the Employee (or in the case of his death, to his heirs
and beneficiaries) on the first day of each month during the Continuation Period (or earlier, if required by applicable law); and

 

(c)       The
Severance Payment shall be payable to the Employee (or in the case of his death, to his heirs and beneficiaries) in equal installments
on each of the Company’s regular pay dates for executives (or earlier, if required by applicable law) during the 12-month
period for which Employee is entitled to the Severance Payment, commencing on the first regular executive pay date following the
Termination Date.

 

9.5       Notwithstanding
the foregoing, in the event Employee is a member of the Board of Directors on the Termination Date, the payment of any and all
compensation due hereunder, except Accrued Compensation and Employee’s right to exercise any options to purchase shares of
the Company’s Common Shares (“Employee Stock Options”) after the Termination Date, is expressly conditioned
on: (i) Employee’s resignation from the Board of Directors of the Company and with any Subsidiary of the Company, within
five (5) business days of notice by the Company requesting such resignation; (ii) Employee’s execution (and not revoking)
a general release and waiver of claims against the Company in a form reasonably acceptable to the Employee and the Company; and
(iii) full and continued compliance by Employee with the covenants and obligations described in Article VI and Article
VII of this Agreement.

 

9.6       The
Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Employee
in any subsequent employment except as provided in Section 1.4.

 

ARTICLE
X

STOCK OPTION AWARDS

 

10.1       During
the term of this Agreement, Employee shall be eligible to receive Employee Stock Options pursuant to grants by the Committee under
the Company’s 2011 Equity Incentive Plan or such other equity compensation plan as may be adopted by the Company in the discretion
of the Committee. The actual grant date value of any such awards shall be determined in the discretion of the Committee and any
such awards shall include such vesting conditions and other terms and conditions as determined by the Committee.

 

     

     

    

ARTICLE
XI

EXTRAORDINARY TRANSACTIONS

 

11.1       The
Company’s Board of Directors has determined that it is appropriate to reinforce and encourage the continued attention and
dedication of members of the Company's management, including the Employee, to their assigned duties without distraction in potentially
disturbing circumstances arising from the possibility of a change in control of the Company.

 

11.2       In
the event that within the ninety (90) days following a Change of Control, Employee is terminated, or Employee’s status, title,
position or responsibilities are materially reduced and Employee terminates his Employment, then subject to Section 9.5 above,
the Company shall pay and/or provide to the Employee, the following compensation and benefits, in lieu of any other payments due
hereunder: (i) the Accrued Compensation; (ii) the Continuation Benefits; and (iii) a lump sum payment within ten (10) days of the
Termination Date equal to 100% of the sum of (a) Employee’s Base Salary in effect on the effective date of the Change of
Control, and (b) Employee’s Bonus amount for the prior fiscal year of employment.

 

11.3       Notwithstanding
the foregoing, if the payment under this Article XI, either alone or together with other payments which the Employee has the right
to receive from the Company, would constitute an “excess parachute payment” as defined in Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), the aggregate of such credits or payments under this Agreement
and other agreements shall be reduced to the largest amount as will result in no portion of such aggregate payments being subject
to the excise tax imposed by Section 4999 of the Code. The priority of the reduction of excess parachute payments shall be in the
discretion of the Employee. The Company shall give notice to the Employee as soon as practicable after its determination that Change
of Control payments and benefits are subject to the excise tax, but no later than ten (10) days in advance of the due date of such
Change of Control payments and benefits, specifying the proposed date of payment and the Change of Control benefits and payments
subject to the excise tax. Employee shall exercise his option under this Section 11.3 by written notice to the Company within
five (5) days in advance of the due date of the Change of Control payments and benefits specifying the priority of reduction of
the excess parachute payments.

 

11.4       Option
awards granted to Employee under any of the Company’s plans, which are vested as of the effective date of the termination
of Employee’s employment pursuant to Section 11.2 shall remain exercisable in accordance with the Plan, but in no
event after the Expiration Time under any such Plan (it being agreed and acknowledged that unvested options shall be void immediately
upon the occurrence of such a termination event).

 

11.5       In
the event that upon a Change of Control Employee is terminated, or Employee’s status, title, position or responsibilities
are materially reduced and Employee terminates his Employment, any and all unvested option awards granted to Employee shall be
immediately vested and exercisable.

 

     

     

    

ARTICLE
XII

SECTION 409A COMPLIANCE

 

12.1       To
the extent applicable, it is intended that any amounts payable under this Agreement shall either be exempt from Section 409A
of the Code or shall comply with Section 409A (including Treasury regulations and other published guidance related thereto)
so as not to subject Employee to payment of any additional tax, penalty or interest imposed under Section 409A of the Code.
The provisions of this Agreement shall be construed and interpreted to the maximum extent permitted to avoid the imputation of
any such additional tax, penalty or interest under Section 409A of the Code yet preserve (to the nearest extent reasonably
possible) the intended benefit payable to Employee. Notwithstanding the foregoing, the Company makes no representations regarding
the tax treatment of any payments hereunder, and the Employee shall be responsible for any and all applicable taxes, other than
the Company’s share of employment taxes on the severance payments provided by the Agreement. Employee acknowledges that Employee
has been advised to obtain independent legal, tax or other counsel in connection with Section 409A of the Code.

 

12.2       Notwithstanding
any provisions of this Agreement to the contrary, if Employee is a “specified employee” (within the meaning of Section
409A of the Code and the regulations adopted thereunder) at the time of Employee’s separation from service and if any portion
of the payments or benefits to be received by Employee upon separation from service would be considered deferred compensation under
Section 409A of the Code and the regulations adopted thereunder (“Nonqualified Deferred Compensation”), amounts
that would otherwise be payable pursuant to this Agreement during the six-month period immediately following Employee’s separation
from service that constitute Nonqualified Deferred Compensation and benefits that would otherwise be provided pursuant to this
Agreement during the six-month period immediately following Employee’s separation from service that constitute Nonqualified
Deferred Compensation will instead be paid or made available on the earlier of (i) the first business day of the seventh month
following the date of Employee’s separation from service and (ii) Employee’s death. Notwithstanding anything in this
Agreement to the contrary, distributions upon termination of Employee’s employment shall be interpreted to mean Employee’s
“separation from service” with the Company (as determined in accordance with Section 409A of the Code and the regulations
adopted thereunder).  Each payment under this Agreement shall be regarded as a “separate payment” and not
of a series of payments for purposes of Section 409A of the Code.

 

12.3        Except as otherwise
specifically provided in this Agreement, if any reimbursement to which the Employee is entitled under this Agreement would constitute
deferred compensation subject to Section 409A of the Code, the following additional rules shall apply: (i) the reimbursable
expense must have been incurred, except as otherwise expressly provided in this Agreement, during the term of this Agreement; (ii) the
amount of expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement
in any other taxable year; (iii) the reimbursement shall be made as soon as practicable after Employee’s submission
of such expenses in accordance with the Company’s policy, but in no event later than the last day of Employee’s taxable
year following the taxable year in which the expense was incurred; and (iv) the Employee’s entitlement to reimbursement
shall not be subject to liquidation or exchange for another benefit.

 

     

     

    

ARTICLE
XIII

ARBITRATION AND INDEMNIFICATION

 

13.1       Any
controversy, dispute or claim arising out of or relating to this Agreement or breach thereof, with the sole exception of any claim,
breach, or violation arising under Articles VI or VII hereof, shall be shall first be settled through good faith negotiation.
If the dispute cannot be settled through negotiation, the parties agree to attempt in good faith to settle the dispute by mediation
administered by JAMS. If the parties are unsuccessful at resolving the dispute through mediation, the parties agree to final and
binding arbitration before a three-member arbitration panel in the State of New York, Kings County, in accordance with the Rules
of the American Arbitration Association then in effect. The arbitrators shall be selected by the Association and each shall be
an attorney-at-law experienced in the field of corporate and/or employment law. However, the parties explicitly agree to appellate
review of any such award by a court of competent jurisdiction. Thus, any arbitration award may be entered in any court of competent
jurisdiction in the State of New York, Kings County, provided that in the event that a party moves to confirm or vacate the arbitration
award, the parties agree that the applicable standard of review shall be de novo.

 

13.2       The
Company hereby agrees to indemnify, defend, and hold harmless the Employee for any and all claims arising from or related to his
employment by the Company at any time asserted, at any place asserted, to the fullest extent permitted by law, except for claims
based on Employee’s fraud, deceit or willfulness. The Company shall maintain such insurance as is necessary and reasonable
to protect the Employee from any and all claims arising from or in connection with his employment by the Company during the term
of Employee’s employment with the Company and for a period of six (6) years after the date of termination of employment for
any reason. The provisions of this Section 13.2 are in addition to and not in lieu of any indemnification, defense or other
benefit to which Employee may be entitled by statute, regulation, common law or otherwise.

 

 

ARTICLE
XIV

SEVERABILITY

 

14.1       If
any provision of this Agreement shall be held invalid and unenforceable, the remainder of this Agreement shall remain in full force
and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall remain in full
force and effect in all other circumstances.

 

 

 

ARTICLE
XV

NOTICE

 

15.1       For
the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when: (a) personally delivered; or (b) sent by: (i) a nationally recognized overnight courier
service; or (ii) certified mail, return receipt requested, postage prepaid and in each case addressed to the respective addresses
as set forth below or to any such other address as the party to receive the notice shall advise by due notice given in accordance
with this paragraph. All notices and communications shall be deemed to have been received on: (A) if delivered by personal service,
the date of delivery thereof; (B) if delivered by a nationally recognized overnight courier service, on the first business day
following deposit with such courier service; or (C) on the third business day after the mailing thereof via certified mail. Notwithstanding
the foregoing, any notice of change of address shall be effective only upon receipt.

 

     

     

    

The current addresses of
the parties are as follows:

 

	 	IF TO THE
    COMPANY: 	IEH Corporation

140 58th
Street

Suite 8E

Brooklyn, New York
11220

Attention: Chief
Executive Officer

 

	 	WITH A COPY
    TO: 	Steven L. Glauberman, Esq.

Becker & Poliakoff, LLP

45 Broadway, 17th Floor

New York, New York 10006

 

	 	IF TO THE
    EMPLOYEE: 	William H. Craig

25 Lenape Trail

Chatham, NJ 07928

 

ARTICLE
XVI

BENEFIT

 

16.1       This
Agreement shall inure to, and shall be binding upon, the parties hereto, the successors and assigns of the Company, and the heirs
and personal representatives of the Employee. The respective rights and obligations of the parties hereunder shall survive
any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

 

ARTICLE
XVII

AMENDMENTS AND WAIVERS

 

No supplement, modification, amendment or waiver
of the terms of this Agreement shall be binding on the parties hereto unless executed in writing by the parties to this Agreement.
No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provisions hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. Any failure
to insist upon strict compliance with any of the terms and conditions of this Agreement shall not be deemed a waiver of any such
terms or conditions and the waiver by either party of any breach or violation of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach of construction and validity.

 

     

     

    

ARTICLE
XVIII

GOVERNING LAW

 

18.1       This
Agreement has been negotiated and executed in the State of New York which shall govern its construction, validity and enforceability.

 

ARTICLE
XIX

JURISDICTION

 

19.1       Any
or all actions or proceedings which may be brought by the Company or Employee under this Agreement shall be brought in courts having
a situs within the State of New York, and Employee and the Company each hereby consent to the jurisdiction of any local, state,
or federal court located within the State of New York.

 

ARTICLE
XX

ENTIRE AGREEMENT

 

20.1       This
Agreement sets forth the entire agreement between the parties and supersedes all prior agreements, letters and understandings between
the parties, whether oral or written prior to the Effective Date of this Agreement, except for the terms of employee stock option
plans, restricted stock grants and option certificates (unless otherwise expressly stated herein).

 

ARTICLE
XXI

INTERPRETATION AND INDEPENDENT REPRESENTATION

 

24.1       The
parties agree that they have both had the opportunity to review and negotiate this Agreement, and that any inconsistency or dispute
related to the interpretation of any of the provisions of this Agreement shall not be construed against either party. The headings
used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement. The
Employee has been advised and had the opportunity to consult with an attorney or other advisor prior to executing this agreement.
The Employee understands, confirms and agrees that counsel to the Company (Becker & Poliakoff, LLP) has not acted and is not
acting as counsel to the Employee and that Employee has not relied upon any legal advice except as provided by its own counsel.

 

     

     

    

ARTICLE XXII

EXECUTION

 

22.1       This
Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or
by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page was an original thereof.

 

 

 

 

Remainder of page intentionally
left blank; signature page follows.

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement and affixed their hands and seals the day and year first above written.

 

	 	IEH CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ David Offerman
	 	 	David Offerman
	 	 	Chief Executive Officer
	 	 	 
	 	 	 
	 	EMPLOYEE
	 	 	 
	 	By:	/s/ William H. Craig
	 	 	William H. Craig

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