Document:

OHIO LIGHTER THAN AIR UAS CONSORTIUM
TEAMING AGREEMENT

 

THIS AGREEMENT (the “Agreement”)
is made and entered into this 23rd day of August, 2013 (the “Effective Date”) by and between World Surveillance Group
Inc., a Delaware corporation duly organized under law and having a place of business at State Road 405, Building M6-306A, Room1400,
Kennedy Space Center, FL 32815 (hereinafter referred to as “WSGI”), The Trident Group, Ltd., an Ohio corporation duly
organized under law and having a place of business at 4196 Hobbs Landing Drive West, Dublin, Ohio 43017 (hereinafter referred to
as “Trident”), EWA TRIAD, LLC, a Delaware corporation duly organized under law and having its principal place of business
at 13873 Park Center Road, Suite 500, Herndon, VA 20171 (hereinafter referred to as “EWA TRIAD”), and Advanced Virtual
Engine Test Cell, Inc., an Ohio non-profit corporation duly organized under law and having a place of business at 41770 Allium
Court, Springfield, Ohio 45505 (hereinafter referred to as “AVETEC,” and together with WSGI, Trident, and EWA TRIAD,
the “Parties”). Each Party to this Agreement may also hereinafter be referred to as a “Consortium Member.”

 

WHEREAS, WSGI has developed a lighter than
air unmanned aerial vehicle, for which it has filed a U.S. patent application, called the Argus One;

 

WHEREAS, the above
identified parties, because of their diverse capabilities, have determined that they would benefit from a team arrangement between
their respective organizations in order to develop the best management and technical approach for efforts hereinafter referred
to as “the Program” as defined below;

 

WHEREAS, this Agreement
is entered into to enable each party to enjoy the benefits of the other party’s capabilities in areas of work which are not independently
available within the respective companies; and

 

WHEREAS, the Parties desire through the
continued research, development and commercialization of the Argus One airship, using the resources of the Consortium Members,
to attempt to create a low, mid and high altitude lighter than air UAS industry in Ohio and assist the Ohio/Indiana UAS Test Center
by fostering the growth of Ohio and the nearby states as a preeminent aerospace and UAS center (the “Program”).

 

NOW THEREFORE, in consideration of the foregoing,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, accepted and agreed
to, the Parties, intending to be legally bound, agree to the terms set forth below.

 

1.            ADDITIONAL CONSORTIUM MEMBERS. Following the Effective
Date, additional parties may be added to this Agreement at any time by vote of a majority of the then Consortium Members, which
majority must include WSGI (a “Majority”). To become a Consortium Member, such party will sign (i) a signature page
to this Agreement in the Form of Exhibit A hereto, and (ii) the Nondisclosure Agreement in the Form of Exhibit B
hereto.

 

    	 

    	 

    

 

2.             WSGI CONTROL. WSGI shall have ultimate control
over all decisions relating to the research, development, testing, marketing, and sale of the Argus One product line and the Program,
provided, however, that all Consortium Members shall initiate ideas and participate fully in the decision-making process
regarding all aspects of the Program.

 

3.             RELOCATION OF ARGUS ONE. Trident, with assistance
from WSGI but at its cost, will transfer the Argus One airship and all related equipment, spare parts, designs, drawings, test
logs, computer programs, intellectual property and all other materials in whatever form, electronic, digital or physical, related
to the Argus One airship (the “Argus One Materials”) from Eastcor Engineering’s facility in Easton, Maryland
to a secure facility in Ohio that is suitable to the uses of the Argus One Materials as set forth in the Agreement. The Argus One
Materials shall be packaged up and ready for transfer upon a date requested by Trident. From the point of transfer of the Argus
One Materials from Eastcor to Trident, Trident shall be responsible for, and shall hold such Argus One Materials for, the benefit
of WSGI and shall secure the Argus One Materials at such facility using a standard of care at least equal to that which it uses
for its own assets, materials and/or products. This same standard of care shall be used by all Consortium Members with regards
to the Argus One Materials during the term of this Agreement.

 

4.             WORKING GROUP.  Each Consortium Member will identify
an individual (a “Point of Contact”) who shall be responsible for interfacing with the other Consortium Members –
the initial Points of Contact shall be: Glenn Estrella for WSGI (State Road 405, Building M6-306A, Room1400, Kennedy Space Center,
FL 32815, phone: 646-206-1073, email: gestrella@wsgi.com); Terry Hofecker for Trident (4196 Hobbs Landing Drive West, Dublin, Ohio
43017, phone: 614-581-9893, email: terry.hofecker@tridentusa.biz); and Greg Carter for EWA TRIAD (2661 Commons Blvd., Suite 132,
Beavercreek, Ohio 45431, phone: 937- 234-7084, email: gcarter@ewa.com), and James Mainord For AVETEC (41770 Allium Court, Springfield,
Ohio 45505, phone: 937-322-2451, email: jmainord@avetec.org). The Points of Contact will work together to develop a working team
(the “Working Team”) to accomplish the Program as set forth in this Agreement. The Working Team shall meet as soon
as possible, along with invited outside participants deemed necessary for the task (each of whom shall have previously signed a
nondisclosure agreement in substantially the form of Exhibit B hereto), to evaluate the technical status of the Argus One
airship and establish research objectives, procedures and specific projects to efficiently facilitate and advance the Program.
The Working Team will assign responsibilities to individual or groups of Consortium Members as appropriate based on the skills
and resources of such Members and target estimated timelines for each specific objective, procedure and project. The Working Team
shall meet at least monthly to discuss the status of the Program.

 

5.             SPECIFIC PROJECT TEAMS. The Working Team may establish
specific targeted project teams as necessary to address identified research or development projects or issues. These targeted project
teams will regularly report to the Working Team either at the conclusion of their project, at pre-set milestones, or at a minimum
at each monthly Working Team meeting

 

6.             COOPERATION. Consortium
Members agree to cooperatively work together to achieve all objectives, targets and timeframes identified as part of their project
teams. Consortium Members will share data, ideas, materials, facilities and resources and will coordinate and work together as
teammates during all phases of the Agreement as shall be required or appropriate in the best interests of the Program.

 

    	 

    	 

    

 

7.             CONFIDENTIALITY. It is expected that during
the term of this Agreement the Consortium Members will disclose to each other information that is considered proprietary or confidential.
All information disclosed by the Consortium Members shall be subject to the terms and conditions set out in the attached Nondisclosure
Agreement executed by the Parties on the Effective Date, which is made a part of this Agreement by reference, is attached hereto
as Exhibit B and shall survive the termination of this Agreement or such Consortium Member’s withdrawal or removal
from the Agreement.

 

8.             INTELLECTUAL PROPERTY.

 

(a)             WSGI shall retain all right, title and interest in
all intellectual property in the Argus One Materials as of the Effective Date of the Agreement. For purposes hereof “Intellectual
Property” shall mean any and all worldwide proprietary, common law, and/or statutory intellectual property rights, including
but not limited to, patentable materials and patent rights, copyrightable materials and copyrights, moral rights, trade secret
rights, trademark rights, service mark rights, any applications and registrations relating thereto, and/or any and all other proprietary
rights.

 

(b)             The
Consortium Members hereby agree that all alterations, creation of derivative works of, edits, modifications, enhancements, upgrades,
updates, or revisions to WSGI’s technology or the Argus One Materials or inventions, creations or developments of new Intellectual
Property rights related to the Argus One Materials or the Program or developed, conceived, created or first reduced to practice
pursuant or during the term of to this Agreement by any of the Consortium Members hereto, including any members of the Working
Team or the specific project teams (collectively, the “Improvements”), shall be proprietary to, and the exclusive
property of, the Consortium Member or Members who created or developed them, and such Consortium Member or Members shall own all
right, title and interest therein and thereto (except as set forth below), including all Intellectual Property rights therein
and therefore; provided, however, that such Consortium Member or Members pursuant to this Agreement hereby grants to WSGI
a perpetual, exclusive, irrevocable, unconditional, fully paid up and royalty free license to use such Improvements and Intellectual
Property rights therein to design, develop, test, make, manufacture, have made or manufactured, market, distribute and/or sell
the Argus One line of products in the U.S. and throughout the world, and to use, reproduce, create, distribute, develop, prepare
or protect derivative works and improvements related to or based on the Improvements and Intellectual Property rights therein
and, more generally to use such Improvements and Intellectual Property
rights therein and any derivative works and improvements related to or based on the Improvements and Intellectual Property rights
therein in WSGI’s UAV/UAS business; and, provided, further, however, that such Consortium Member or Members also
hereby agrees that it will not use, or authorize, license or permit any person or entity other than WSGI to use, the Improvements
or Intellectual Property therein in any way whatsoever, including without limitation, to design, develop, test, make, manufacture,
have made or manufactured, market, distribute and/or sell any LTA UAVs or any other products or services based on, using or encompassing
any of the Improvements or Intellectual Property therein, or use, reproduce, create, distribute, prepare, develop or protect derivative
works or improvements related to or based on the Improvements or Intellectual Property therein in the U.S. and anywhere in the
world.

 

    	 

    	 

    

 

(c)             Except as specified in the Agreement, nothing shall
be interpreted as granting any right to any Consortium Member by license or otherwise in any Intellectual Property owned by any
other Consortium Member prior to or after the Effective Date of the Agreement. All Improvements and Intellectual Property developed
under this Agreement shall be available to all Consortium Members on a cooperative basis to further the Program and the objectives
of this Agreement.

 

(d)             The Consortium Member(s) owning any Intellectual
Property right shall have the right in its sole discretion to pursue any form of protection for such Intellectual Property rights,
including without limitation, filing patents, copyrights or trademarks.

 

(e)             No Consortium Member shall use the name, logo, trademarks,
trade names or any facsimile thereof of the other Consortium Members in publicity releases, websites, blogs, postings, promotional
material, advertising, marketing or business generative efforts without the prior consent of the Majority, which consent shall
not unreasonably be withheld or delayed, provided, however, that WSGI shall have the right to provide such information as
required to comply with its obligations pursuant to the U.S. securities laws and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder.

 

(f)             During the thirty (30) day period following EWA TRIAD’s
initial joining or appointment to a project team, EWA TRIAD reserves the right to revisit this Article 8 with regards to then existing
EWA TRIAD Intellectual Property; provided, however, that unless EWA TRIAD exercises this right within such thirty (30) day
period, the language of this Article 8 and the remainder of the Agreement shall govern.

 

9.              RESTRICTED ACTIVITIES. During the term
of this Agreement and for a period of one (1) year from the earlier of the termination of the Agreement or the withdrawal or removal
of the Consortium Member from this Agreement, no Consortium Member will, directly or indirectly, individually or as a consultant
to, or an employee, officer, director, manager, stockholder (except as the owner of less than 1% of the stock of a publicly traded
company), partner, member or other owner or participant in any business entity other than in connection with the Program: (i) engage
in or assist any other person or entity to engage in any business which competes with the Program or WSGI’s Argus One/UAS
business anywhere in the United States or the world; (ii) offer employment or any consulting arrangement to, hire, or otherwise
interfere with the business relationship of a Consortium Member with, any person or entity who is, or was within the six month
period immediately prior thereto, employed by, associated with or a consultant to such Consortium Member; (iii) solicit away from
a Consortium Member or endeavor to entice away from a Consortium Member, or otherwise interfere with the business relationship
of the Consortium Member with, any person or entity who is, or was within the six month period immediately prior thereto, a customer,
dealer, distributor or client of, supplier, vendor or service provider to the Consortium Member. Notwithstanding the foregoing,
nothing herein prevents any Consortium Member from working with the Ohio/Indiana UAS Test Center.

 

10.             EXPENSES.
Except as otherwise set forth herein, each Consortium Member will bear its own expenses in connection with the Program and this
Agreement. Funding for specific projects will be secured ahead of time by the project team members either from team members, in
kind services, or from outside grants, programs or other resources. Consortium Members will actively seek external funding for
some or all of the work done with prior approval of the Majority and will reach out to take advantage of economic development
programs available to it through Local, State, Federal and other appropriate entities, including any tax, employment, UAS-related
grants, credit, financial assistance, incentives, etc. as well as any government or potential customer programs.

 

    	 

    	 

    

 

11.             ENGINEERING
AND DEVELOPMENT. As a result of the conclusion of various research projects or objectives, Improvements may be made to
or added to the Argus One airship. Such Improvements will be adequately tested with proven feasibility to perform as
designed. Improvements may result from the conclusion of research projects, Consortium Member ideas, or external input from
potential customers or funding sources. Improvements shall be coordinated among Consortium Members and shall be done so as
not to interfere with existing scheduled research or other development or commercialization activities. Project teams will
coordinate so as to efficiently and effectively use the Argus One to further the Program and the purposes of this Agreement.
All project requests, decisions, results, timelines, etc. shall be promptly reported to the Working Team as set forth above
and approved by WSGI.

 

12.             COMMERCIALIZATION.
Consortium Members agree to work cooperatively to market the Argus One airship once the airship has been developed and
demonstrated to be ready for commercial sale to governmental, quasi-governmental or commercial customers. Consortium Members
shall make introductions for WSGI to potential customers or interested parties and WSGI shall be the main contact point
thereafter, provided, however, that Consortium Members will assist WSGI in the marketing and demonstration of
the Argus One airship and assist in the completion of sales, all as reasonably requested by WSGI. All contracts for the sale
of Argus One airships shall be with WSGI or one of its subsidiaries and all revenue from such sales shall be revenue of WSGI.
If a Consortium Member identifies a potential customer or program for the sale of Argus One airships, no other Consortium
Member can pursue the marketing or sale of the Argus One to the same customer or program without WSGI’s and the
original Consortium Member’s participation and consent. WSGI may choose to enter into some form of distributor, sales
or other finder agreements with Consortium Members (at the parties’ discretion) and negotiate such terms and conditions
therein as the parties shall then agree.

 

13.             PAYMENTS.
Consortium Members who enter into some form of distributor, sales or finder agreement with WSGI shall get paid pursuant to
the terms of such agreement upon the sale by them of any Argus One airships. Consortium Members may receive a negotiated
percentage sales fee on sales of the Argus One airship for a period of time following its commercialization as shall be
negotiated by WSGI and individual Consortium Members at the time of commercialization based on input, time, money expended,
and other related factors. Any Consortium Member who has been removed or who withdraws from this Agreement prior to the
commercialization of the Argus One airship shall forfeit its right to any sales fee on the sale of such airships.

 

14.             POST
ARGUS ONE COMMERCIALIZATION. Once the Argus One airship has reached commercialization, the Consortium Members may choose
to continue development of larger Argus One-like airships to increase payload size, increase altitudes at which the
airship can fly, add capabilities, and to otherwise improve the airship or build next generation airships, with the objective
of creating the first UAS long endurance stratospheric platform. Any such future research, development and commercialization
of additional products will be conducted by the Consortium Members pursuant to the terms of this Agreement.

 

    	 

    	 

    

 

15.             TERM.

 

(a)              The Parties agree that the term of this Agreement
shall commence as of the Effective Date and continue for a period of two (2) years (the “Initial Term”), provided,
however, that the Agreement shall be renewable for one (1) year periods by the agreement of the Majority (such period as it
may be extended pursuant to this sentence, the “Term”).

 

(b)              Following the Initial Term, WSGI shall have the
right to terminate this Agreement upon three (3) months written notice to the other Consortium Members.

 

(c)             If the Agreement is not renewed after the Initial
Term or on its termination pursuant to Section 15(b) above, the Consortium Members will return to WSGI the Argus One Materials,
along with all Improvements, all materials necessary or appropriate for WSGI to use its license rights set forth in Section 8(b)
hereof, and all related equipment, spare parts, designs, drawings, test logs, computer programs, intellectual property and all
other materials in whatever form, electronic, digital or physical, related to, developed in or then being used by or in connection
with the Program, in good and workable form, as well as all Confidential Information, as defined in the Nondisclosure Agreement,
and copies thereof or documents containing any such Confidential Information, and all other property of WSGI in its possession
or under its control, if any.              

 

16.             MEMBER WITHDRAWAL/REMOVAL.             

 

(a)             After the Initial Term,
Consortium Members may withdraw from this Agreement upon three (3) months written notice to the Consortium Members, provided,
however, that any projects it is working on at such time must first either be completed or appropriately transitioned to
another Consortium Member with the agreement of the Working Team.

 

(b)             Consortium
Members may be removed from the Agreement by the Majority (without such Member voting) upon a material default in the
performance of any of its obligations committed to by it under the terms of the Agreement as determined by the Working Team
or if the Member materially breaches the terms of the Agreement or its Nondisclosure Agreement. Notice shall be sent to such
Consortium Member regarding any such default or breach and the Consortium Member shall have fifteen (15) calendar days
following the delivery of the breach notice to cure such default or breach to the satisfaction of the Working Team.

 

(c)             Upon the withdrawal or removal of a Consortium Member,
such Consortium Member shall return to WSGI any of the following in its possession: the Argus One Materials, along with all Improvements,
all materials necessary or appropriate for WSGI to use its license rights set forth in Section 8(b) hereof, and all related equipment,
spare parts, designs, drawings, test logs, computer programs, intellectual property and all other materials in whatever form, electronic,
digital or physical, related to, developed in or then being used by or in connection with the Program, in good and workable form,
as well as all Confidential Information, as defined in the Nondisclosure Agreement, and copies thereof or documents containing
any such Confidential Information, and all other property of WSGI in its possession or under its control, if any.

 

    	 

    	 

    

 

17.              REPRESENTATIONS.

 

(a)             The Consortium Members each agree that at all times
in the performance of its obligations hereunder, it will neither undertake nor cause, nor permit to be undertaken, any activity
which either (i) is illegal under any laws, decrees, rules, orders or regulations in effect in either the United States or any
other country in which it is operating, including without limitation the export regulations, ITAR and the FAA regulations; or (ii)
would have the effect of causing the other Consortium Members to be in violation of any laws, decrees, rules, orders or regulations
in effect in either the United States or any other country in which such Member has a business interest.

 

(b)             The Consortium Members each represent and warrant
to the others that (i) it is under no contractual or other restrictions or obligations which are inconsistent with the execution
of this Agreement, or which will interfere with the performance of its obligations hereunder; (ii) the execution and performance
of this Agreement will not violate any policies or procedures of any other person or entity for which it performs any services
concurrently with those performed herein, and (iii) it does not have any agreements to provide services to any other person, party,
firm, entity or company that is engaged in any business competitive with the Program and it will not enter into any such agreement
during the Term or during the one (1) year period following the earlier of the termination or non-renewal of the Agreement or the
withdrawal or removal of the Consortium Member from this Agreement.

 

(c)              Nothing contained in this Agreement shall be deemed
to constitute or create a joint venture, pooling arrangement, partnership or formal business organization of any kind, and the
rights and obligations of the Parties shall be only those expressly set forth herein. The Consortium Members each agree that none
shall have the power to enter into any agreement on behalf of, or otherwise bind, the others, and shall not enter into any contract
or commitment on behalf of the other Consortium Members. Nothing in this Agreement shall be construed as providing for the sharing
of profits and losses arising out of the efforts of any of the Consortium Members.

 

18.             WAIVER. Any waiver by a Party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision
hereof. All waivers by a Party shall be in writing.

 

19.             SEVERABILITY; REFORMATION. In case any one or
more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of
a provision of this Agreement; and this Agreement shall, to the fullest extent lawful, be reformed and construed as if such invalid
or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provision or part reformed
so that it would be valid, legal and enforceable to the maximum extent possible. Without limiting the foregoing, if any provision
(or part of provision) contained in this Agreement shall for any reason be held to be excessively broad as to duration, activity
or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the fullest extent compatible with then
existing applicable law.

 

    	 

    	 

    

 

20.             ASSIGNMENT. No Consortium Member shall have the
right to assign or transfer its rights or obligations under this Agreement without the prior written consent of the Majority. This
Agreement shall be binding upon and inure to the benefit of the Parties’ respective successors and permitted assigns.

 

21.             AMENDMENTS. This Agreement, along with the Nondisclosure
Agreements of the Consortium Members, constitutes the entire agreement between the Parties hereto and replaces and supersedes all
prior agreements relating to the subject matter hereof, between the Parties to this Agreement and their affiliates. This Agreement
may be amended or modified, in whole or in part, only by an instrument in writing signed by all Parties hereto.

 

22.             NOTICES. Any notices or other communications required
hereunder shall be addressed to the then Point of Contact, in writing and shall be deemed given when delivered in person, by nationally
recognized overnight courier service, or when mailed, by certified or registered first class mail, postage prepaid, return receipt
requested, addressed to the Parties at their addresses specified in the preamble to this Agreement or to such other addresses of
which a Party shall have notified the others in accordance with the provisions of this Section 22; provided, however, the
address set forth above for WSGI shall be used only for personal or courier delivery and if notice is to be sent by mail, it shall
be sent to WSGI at Mail Code: SWC, Kennedy Space Center, FL 32899; and provided, further, however, that the contact person
for EWA TRIAD shall be Kim Thomas.

 

23.             GOVERNING LAW. This Agreement shall be construed
in accordance with and governed for all purposes by the laws of State of Delaware, without regard to its internal choice of law
analysis. Any dispute arising hereunder shall be referred to and heard only in an appropriate court of competent jurisdiction in
Delaware.

 

24.             SURVIVAL. The provisions
of Sections 7, 8, 9, 10, 15(c) and 17-25 of this Agreement shall survive the non-renewal or termination of this Agreement and the
withdrawal or removal of a Consortium Member from this Agreement. Moreover, the non-renewal or termination of this Agreement or
the withdrawal or removal of a Consortium Member from this Agreement shall not supersede or affect the obligations of the Consortium
Members with respect to the protection of the Confidential Information, as set forth in the Nondisclosure Agreement, which shall
survive and remain in full force and effect.

 

25.             LIMITATION OF LIABILITY. In no event shall any
Consortium Member be liable to the others for any punitive, exemplary, special, indirect, incidental or consequential damages (including,
but not limited to, lost profits, lost revenues, lost business opportunities, loss of use or equipment down time, and loss of or
corruption to data) arising out of or relating to this Agreement, regardless of the legal theory under which such damages are sought,
and even if the Consortium Members have been advised of the possibility of such damages or loss.

 

[Remainder of Page Intentionally Left Blank]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the undersigned have
caused this Ohio Lighter Than Air UAS Consortium Teaming Agreement to be duly executed by their respective authorized signatories
as of the Effective Date.

 

 

WORLD SURVEILLANCE GROUP INC.

 

 

By: /s/ Glenn D. Estrella

Name:  Glenn D. Estrella

Title:    President and CEO

 

 

THE TRIDENT GROUP, LTD.

 

 

By: /s/ Drew West

Name:  Drew West

Title:    President

 

 

EWA TRIAD, LLC

 

 

By: /s/ Kim Thomas

Name:  Kim Thomas

Title:    Vice President of Contracts

 

 

ADVANCED VIRTUAL ENGINE TEST CELL, INC.

 

 

By: /s/ James Mainord

Name:  James Mainord

Title:    Legal Director

 

    	 

    	 

    

 

Exhibit A

 

Additional Consortium Member Signature
Page

 

IN WITNESS WHEREOF, the undersigned have caused this Ohio Lighter
Than Air UAS Consortium Teaming Agreement to be duly executed by its respective authorized signatories as of the date first
indicated below.

 

	Name of Consortium Member:	 

 

	By:	 
	Name:	 
	Title:	 
	 	 
	Date:	 
	 	 
	Point of Contact:	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	Telephone:	 
	 	 
	Email:	 

 

    	 

    	 

    

 

Exhibit B

 

Nondisclosure AgreementExhibit 10.15

  

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”) is made as of the 28th day of August, 2013 (the “Effective Date”) by and
between Aeroflex Incorporated, a Delaware corporation, with its principal office located at 35 South Service Road, Plainview, NY
11803 (together with its successors and assigns permitted hereunder, “Aeroflex”), and Leonard Borow, who resides at
7582 Isla Verde Way, Delray Beach, Florida 33446 (hereinafter “Borow” and together with Aeroflex, the “Parties”).

 

WITNESSETH:

 

WHEREAS, the Parties entered into
an Employment Agreement made and entered into as of August 15, 2007, as amended on December 31, 2008 and on November 2010 (the
“Prior Agreement”) under which the Parties agreed upon the terms pursuant to which Borow would be employed by Aeroflex
as further described therein, and

 

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

 

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

 

		1.	DEFINITIONS.

 

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

 

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

 

(c)          “Cause”
shall mean:

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

(d)          “Change
in Control” shall mean the occurrence of a change in the ownership or control of Aeroflex within the meaning of Section
280G of the Code and the regulations thereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)          reduction
in his then current Salary;

 

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

 

    	-2-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		2.	EMPLOYMENT TERM, POSITIONS AND DUTIES.

 

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

 

    	-3-

    	 

    

 

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

 

(c)          Titles
and Duties.

 

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

 

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

 

(d)          Time
and Effort.

 

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

 

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

 

		3.	SALARY.

 

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

 

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

 

    	-4-

    	 

    

 

		4.	BONUS.

 

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

 

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

 

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

 

		5.	EXPENSE REIMBURSEMENT; CERTAIN OTHER COSTS

 

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

 

		6.	PERQUISITES.

 

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

 

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

 

    	-5-

    	 

    

 

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

 

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

 

		7.	EMPLOYEE BENEFIT PLANS.

 

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

 

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

 

    	-6-

    	 

    

 

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

 

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

 

		8.	TERMINATION OF EMPLOYMENT.

 

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

 

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

 

(i)          his
Salary through the date of termination;

 

(ii)         any
unused vacation from prior years;

 

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

 

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

 

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

 

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

 

    	-7-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-8-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-9-

    	 

    

 

		9.	NO DUTY TO MITIGATE; NO OFFSET.

 

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

 

		10.	PARACHUTE PAYMENTS.

 

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

 

		11.	CONSULTING PERIOD.

 

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

 

(b)          Duties
and Extent of Services.

 

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

 

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

 

    	-10-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

		12.	CONFIDENTIAL INFORMATION.

 

(a)          General.

 

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

 

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

 

    	-11-

    	 

    

 

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

 

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

 

		13.	NONCOMPETITION/NONSOLICITATION.

 

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

 

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

 

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

 

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

 

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

 

    	-12-

    	 

    

 

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

 

		14.	REMEDIES/SANCTIONS.

 

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

 

		15.	BENEFICIARIES/REFERENCES.

 

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

 

		16.	WITHHOLDING TAXES.

 

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

 

		17.	INDEMNIFICATION AND LIABILITY INSURANCE.

 

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

 

    	-13-

    	 

    

 

		18.	EFFECT OF AGREEMENT ON OTHER BENEFITS.

 

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

 

		19.	ASSIGNABILITY; BINDING NATURE.

 

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

 

		20.	REPRESENTATIONS.

 

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

 

		21.	ENTIRE AGREEMENT.

 

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

 

		22.	AMENDMENT OR WAIVER.

 

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

 

    	-14-

    	 

    

 

		23.	SEVERABILITY.

 

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

 

		24.	SURVIVAL.

 

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

 

		25.	GOVERNING LAW/JURISDICTION.

 

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

 

		26.	NOTICES.

 

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

 

If to Aeroflex or the Board:

 

Aeroflex Incorporated

35 South Service Road

Plainview, NY 11803

Attention: General Counsel

FAX: (516) 694-4823

 

With a copy to:

 

Veritas Capital Management II, LLC

660 Madison Avenue, 14th Floor

New York, New York 10021

Attention: Benjamin Polk

 

And a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY 10022

Attention: Michael Littenberg

Telephone: (212) 756-2000

Fax: (212) 593-5955

 

    	-15-

    	 

    

 

If to Borow:

 

Leonard Borow

7582 Isla Berde Way

Delray Beach, Florida 33446

 

		27.	HEADINGS.

 

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

 

		28.	COUNTERPARTS.

 

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

 

		29.	COMPLIANCE WITH CODE SECTION 409A.

 

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

 

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remainder of this page is intentionally left blank.]

 

    	-16-

    	 

    

 

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

 

	 	 	EMPLOYEE:
	 	 	 
	WITNESS:	 	 	/s/ Leonard Borow
	 	Name:	 	Leonard Borow
	 	 	 
	 	 	AEROFLEX INCORPORATED
	 	 	 
	ATTEST:	 	 	By:	/s/John Adamovich, Jr.
	 	Name:	 	 	Name:  John Adamovich, Jr.
	 	 	 	Title:    Sr. Vice President & CFO

 

    	-17-

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