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   &lt;!-- Begin Block Tagged Note 18 - lll:EmployeeStockBasedCompensationTextBlock--&gt;
   &lt;div style="margin-left: 0%"&gt;
   &lt;div style="margin-top: 12pt; font-size: 1pt"&gt;&amp;#160;
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       &lt;b&gt;&lt;font style="font-family: 'Times New Roman', Times"&gt;18.&amp;#160;&amp;#160;&lt;/font&gt;&lt;/b&gt;
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   &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
       At its Annual Meeting of Stockholders held on April&amp;#160;28,
       2009, the stockholders of L-3 Holdings approved the L-3
       Communications Corporation 2009 Employee Stock Purchase Plan
       (2009 ESPP), which became effective on July&amp;#160;1, 2009. As a
       result, no new options to purchase shares of L-3 Holdings&amp;#8217;
       common stock will be granted under the Company&amp;#8217;s prior
       employee stock purchase plan (2001 ESPP).
   &lt;/div&gt;
   &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
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       Under the 2009 ESPP, eligible employees are offered options to
       purchase shares of L-3 Holdings&amp;#8217; common stock at 85% of the
       fair market value of L-3 Holdings&amp;#8217; common stock on the last
       day of each
       &lt;font style="white-space: nowrap"&gt;six-month&lt;/font&gt;
       offering period. Eligible employees include all employees of the
       Company, or of a subsidiary or affiliate of the Company that has
       been designated to participate in the 2009 ESPP. Offering
       periods begin on the first trading day in January and July of
       each calendar year and end on the last trading day in June and
       December of each calendar year. Fair market value is defined as
       the average of
   the highest and lowest sales price of a share of L-3
       Holdings&amp;#8217; common stock on the last trading day of the
       trading period. Share purchases are funded through payroll
       deductions of up to 10% of a participating employee&amp;#8217;s
       compensation for each payroll period, or $21,250 each calendar
       year. Employees may not purchase more than $25,000 worth of L-3
       Holdings&amp;#8217; common stock for each year based on the value of
       the common stock at the beginning of each offering period during
       the year. After adjustment for the shares issued under the 2001
       ESPP, the 2009 ESPP authorizes L-3 Holdings to issue up to
       7.4&amp;#160;million shares. No shares will be issued under the 2009
       ESPP until the conclusion of the first six-month offering
       period, which began on July&amp;#160;1, 2009 and ends on
       December&amp;#160;31, 2009.
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   &amp;#160;








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