Exhibit on Previous License Application Denial

0156-EX-CN-2019 Applicant Eligibility

Kratos Unmanned Aerial Systems, Inc.

2019-03-08ELS_224978

             EXHIBIT REGARDING LICENSE APPLICATION DENIAL


The original application was dismissed by the FCC (Reference Number: 7125). Prior
coordination with the FAA and military was required.

Coordination with the FAA has been completed and the following are the ASGs provided
for the frequencies used by the FAA.

Frequency ASG                   Conditions
M1575.42       NG T080437       NTIA Manual Section 8.3.28
M4300          NG T080446
M1090          NG T080448       Report below surface altitude or 105400, 105600,
                                84100, 83600, or 83900 ft
M1030          NG T080466       See Attachment A for the conditions

We have satisfied all of the conditions imposed by the FAA for our Sacramento, CA test
locations. Attachment B provides the NC TRACON approval for the use of IFF Mode 3
Codes, as requested by the FAA for the 1030 MHz IFF Test Set frequency coordination.

As far as coordination with military (MAG) is concerned, per Mr. Navid Golshahi of the
FCC, we need to re-submit our application with the following information, and he will
contact MAG and do the coordination on our behalf. List of the required information:

   1) Copy of CEi’s Contract with the Korean Agency for Defense Development
      (ADD)
   2) “Stop-Buzzer” information
   3) Copy of the TAA

Here is the above requested information:

   1) Information regarding CEi’s contract with the Korean Agency for Defense
      Development (ADD) is provided in Attachment C.
   2) “Stop-Buzzer” information: Mr. Tom Nelson at (916) 612-8162.
   3) A copy of the TAA is provided in Attachment D.


                                 ATTACHMENT A
Conditions for coordination of IFF Test Set operating at 1030 MHz:

(1) Any Mode C altitude other than ground level, the transponder must be directly
    connected to the test set (no radiation).

(2) Mode 3 codes shall be coordinated with the local FAA Air Traffic Control facility
    and use only the codes that are assigned. For assignment of Mode 3 codes for
    Sacramento, CA, please call/coordinate first with the Northern California (NCT)
    TRACON Air Traffic Managment desk at 916-366-4080. For facilitation if needed,
    you may call the NCT Operations Manager 916-366-4019, or Oakland Center Air
    Traffic Military Operations Office 510-745-3334.

(3) The ramp tester may only interrogate with a PRF of 235 Hz.

(4) The transponder may only report ground level altitude for free-space reply. In
    addition as an extra precaution in decreasing the potential for future phantom TCAS
    events, the tester is recommended to be set to one of the following five altitude codes
    in lieu of the standard -1000 feet ground level altitude: 105400' code 7732, 105600'
    code 7762, 84100' code 7736, 83600' code 7566, 83900' code 7766

(5) Only one ramp tester may operate at a time.


                                     ATTACHMENT B
Here is a copy of the e-mail from Mr. Mitchell Peter regarding NC TRACON approval
for the use of IFF Mode 3 Codes.

From: Mitchell.Peter@faa.gov
Sent: Friday, August 15, 2008 11:18 AM
To: Farid Razaqpur
Cc: David Tsao; Sydney.Bradfield@faa.gov; Tom Nelson
Subject: Re: FW: Summary Description of BQM-167i Target

Farid,

    Northern California TRACON has no objection to the test of your transponder within the code bank of
6170-6177. If you would, please call the NCT TMU at 916-366-4080 before you start the test with a
"heads up" call if able. Thank you.


Mitchell Peter
Supervisory Traffic Management Coordinator
Northern California TRACON
916-366-4080


                              ATTACHMENT C
Here is a copy of CEi’s Contract with the Korean Agency for Defense Development
(ADD).


                                 AGENCYFOR DEFENSE DEVELOPMENT
                                          RepUBIC OF KOREA


The Agency for Defense Development hereby agrees to buy and
Composite Engineering, Inc. hereby agrees to sell "Aerial Target Drone System 1 Set®,
in compliance with Section 1, ‘General Terms and Conditions", Section 11,"Special Terms
and Conditions", Section 111, "Commercial Proposal including Commodity Descriptions,
Section IV "Requirements for Technical Proposal" and "Bidder‘s Technical Proposal",
Section V "Offset Memorandum of Agreement" and "Other Documents", attached hereto.

This Contract is generally in agreement with ADD Terms and Conditions except as revised
or deleted during contract negotiations.

  Signed at :        Sacramento. California(USA)      Signed at : Dacjeon, Korea

  This_21       day of     |December   , 2007         This 31.   aay or Deve=be, 2007


Composite Engineering, Inc(CED
5381 Ratey Bivd                                       Agency for Defense Development
Sacramento, California 9583§(USA)                     Republic of Kerea

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Dan Sorensen                                          Ha—Min Chung                 U
Vice President, Sales                                 Finance and Contract Commissioner




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                              rax No (oms          ret No (ommarioue


                             ATTACHMENT D
Here is a copy of the TAA.







Document Created: 2019-03-08 07:36:44
Document Modified: 2019-03-08 07:36:44

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