freedom 7

It appears that this patch was produced as an expansion to the original Eagle One Aerospace Mercury patch series.

Mercury-Atlas 10 (MA-10) was a cancelled early manned space mission, which would have been the last flight in NASA's Mercury program. It was planned as a three-day extended mission, to launch in late 1963; the spacecraft, Freedom 7-II, would have been flown by Alan Shepard, a veteran of the suborbital Mercury-Redstone 3 mission in 1961. However, it was cancelled after the success of the one-day Mercury-Atlas 9 mission in May 1963, to allow NASA to focus its efforts on the more advanced two-man Gemini program.

Eagle One Aerospace produced an exclusive set of Project Mercury crew patches in the early 90's. 5 sets were produced and mounted on a poster, another 25-50 were produced as an unmounted set. Each patch has the hallmark initials of their respective crewman. They faithfully render the capsule artwork and are often considered to be the proper mercury crew patch as opposed to the common, later souvenir patches from A-B Emblem and others. 

Collected as a set with other 3" Mercury and Gemini patches. This set of patches, while at first glance appear to be regular A-B Emblem 3" souvenir versions, actually have some distinct oddities that set them apart.