CERTAIN PORTIONS OF THESE MATERIALS HAVE BEEN OMITTED BASED ON A REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”). THE NON-PUBLIC INFORMATION HAS BEEN OMITTED AND HAS BEEN SEPARATELY FILED WITH...

CERTAIN PORTIONS OF THESE MATERIALS HAVE BEEN OMITTED BASED ON A REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”). THE NON-PUBLIC INFORMATION HAS BEEN OMITTED AND HAS BEEN SEPARATELY FILED WITH THE SEC. EACH REDACTED PORTION OF THE AGREEMENT IS INDICATED BY A “[ ]” AND IS SUBJECT TO THE REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE SEC. THE REDACTED INFORMATION IS CONFIDENTIAL INFORMATION OF SPARTON CORPORATION.

Subcontractor:

Sparton XxXxxx Springs, LLC.

Effective Date:

4-Dec-14

Subcontract Number:

ERAPS014-243

Subcontract Modification:

Mod 002 FY15 53F Lot Transfer and ADAR 101B

Mod Effective Date:

23-Sep-15

Customer:

US Navy- NAVAIR

Customer Contract Number:

N00421-14-D-0025 DO 002, 003, 004

Program:

Mk-84, 36B, Q125, 62E, 53F, 101B

Total Contract Value:

[______]

Fee

Funded 100%

USSI:

[______]

[______]

[______]

[______]

Sparton:

[______]

[______]

[______]

$

81,090,384.07

This subcontract is entered into by and between ERAPSCO (“ERAPSCO” or “Buyer”), a general partnership comprised of Sparton XxXxxx Springs, LLC. and UnderSea Sensor Systems Inc. (“USSI” or “Seller”), with offices located at 0000 Xxxx Xxxx 00 Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx 00000 and Sparton XxXxxx Springs, LLC., 0000 Xxxxxxx Xxxx Xxxx, XxXxxx Xxxxxxx, Xxxxxxx 00000 (“Sparton” or “Seller”). As such, ERAPSCO provides authorization for the Seller to perform requirements identified in the attached customer contract and as summarized herein.

This subcontract is entered into by and between ERAPSCO (“ERAPSCO” or “Buyer”), a general partnership comprised of Sparton Electronics Florida, Inc. and UnderSea Sensor Systems Inc. (“USSI” or “Seller”), with offices located at 0000 Xxxx Xxxx 00 Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx 00000 and Sparton Electronics Florida, Inc., 0000 Xxxxxxx Xxxx Xxxx, XxXxxx Xxxxxxx, Xxxxxxx 00000 (“Sparton” or “Seller”). As such, ERAPSCO provides authorization for the Seller to perform requirements identified in the attached customer contract and as summarized herein.

ERAPSCO/ STS

Sparton XxXxxx Springs, LLC

By:

/s/

By:

/s/

Name

Xxxxx Xxxx

Name

Xxxx Xxxxxx

Title:

General Manager

Title:

Contract Manager

Date

9/28/2015

Date

9/28/2015

A Sparton XxXxxx Springs, LLC. and Ultra Electronics UnderSea Sensor Systems Joint Venture 0000 Xxxx Xxxx 00 Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx 00000

CERTAIN PORTIONS OF THESE MATERIALS HAVE BEEN OMITTED BASED ON A REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”). THE NON-PUBLIC INFORMATION HAS BEEN OMITTED AND HAS BEEN SEPARATELY FILED WITH THE SEC. EACH REDACTED PORTION OF THE AGREEMENT IS INDICATED BY A “[ ]” AND IS SUBJECT TO THE REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE SEC. THE REDACTED INFORMATION IS CONFIDENTIAL INFORMATION OF SPARTON CORPORATION.

Page 2 of 3

Customer Information

Customer Name:

US Navy Navair

Technical Contact:

Xxx Xxxxx

Contract Contact:

Xxx Xxxxx

Phone:

000-000-0000 209

Phone:

000-000-0000

Email:

xxx.xxxxx@xxxx.xxx

Email:

xxxxx.x.xxxxx@xxxx.xxx

Bid Number:

FY14 IDIQ

End User:

US Navy

Contract Terms

Contract Type:

FFP

Period of Performance:

12/4/14

to

9/22/2017

Shipping Terms:

FCA Plant

Freight Forwarder:

N/A

Payment Terms:

PBP; Net 30

Export License Required:

No

Product Information

Product Description:

Q125

Quantity:

[_________]

Price:

[_________]

Delivery Date:

12/4/2014

to

12/5/2017

Product Specifications:

MAC PSS REVD CHG0

Packaging Specifications: Section D and Appendix C

Product Description:

MK-84

Quantity:

[_________]

Price:

[_________]

Delivery Date:

12/4/2014

to

12/5/2016

Product Specifications: MARK 84 MOD1 REV- CHG0

Packaging Specifications: Section D and Appendix C

Product Description:

36B

Quantity:

[_________]

Price:

[_________]

Delivery Date:

12/4/2014

to

12/5/2016

Product Specifications:

PSS REVC CHG0

Packaging Specifications: Section D and Appendix C

Product Description:

53F

Quantity:

[_________]

Price:

[_________]

Delivery Date:

3/13/2015

to

3/13/2017

Product Specifications:

PSS REVC CHG0

Packaging Specifications: Section D and Appendix C

CERTAIN PORTIONS OF THESE MATERIALS HAVE BEEN OMITTED BASED ON A REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”). THE NON-PUBLIC INFORMATION HAS BEEN OMITTED AND HAS BEEN SEPARATELY FILED WITH THE SEC. EACH REDACTED PORTION OF THE AGREEMENT IS INDICATED BY A “[ ]” AND IS SUBJECT TO THE REQUEST FOR CONFIDENTIAL TREATMENT SUBMITTED TO THE SEC. THE REDACTED INFORMATION IS CONFIDENTIAL INFORMATION OF SPARTON CORPORATION.

Page 3 of 3

Product Description:

62E

Quantity:

[_________]

Price:

[_________]

Delivery Date:

3/13/2015

to

3/13/2017

Product Specifications:

PSS REVC CHG0

Packaging Specifications: Section D and Appendix C

Product Description:

101B

Quantity:

[_________]

Price:

[_________]

Delivery Date:

9/22/2015

to

9/22/2017

Product Specifications:

PSS REVC CHG0 and HAASW REVG CHG0

Packaging Specifications: Section D and Appendix C

Miscellaneous Comments

See Tracking Sheet for Delivery Schedule, PBPs, and CDRL Data Items

Mod 1- Adds [_______] Q125s, [_______] 53Fs, and [_______] 62Es.

Mod 2-Transfers [____] lot of 53F's ([_____] units) from Sparton to USSI. Sparton's PBPs to be reduced

10% at start of build and the remaining 90% divided equally between the remaining three payments.

Award of [_____] 101B

A Sparton XxXxxx Springs, LLC. and Ultra Electronics UnderSea Sensor Systems Joint Venture 0000 Xxxx Xxxx 00 Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx 00000