Document:

AMENDMENT NO. 3

 

 

TO THE 

 

 

PRODUCTS AND SERVICES AGREEMENT 

 

NO. AIR-12-001

 

 

 

BETWEEN

 

 

AIREON LLC

 

AND

 

HARRIS CORPORATION

 

 

For

 

 

Automatic Dependent Surveillance-Broadcast
(ADS-B) Payload Development

 

    	 

    	 

    

 

PREAMBLE

 

This Amendment No. 3 (the “Amendment”)
to the Products and Services Agreement for ADS-B Payload Development, No AIR-12-001, signed on June 19, 2012 between Aireon LLC
and Harris Corporation, Government Communications Systems Division (the “Agreement”) is entered into
on this 18th Day of March, 2013, by and between Aireon LLC, a limited liability company organized and existing under
the laws of Delaware, having its office at 1750 Tysons Boulevard, Suite 1400, McLean, VA 22102 (“Aireon”) and
Harris Corporation, Government Communications Systems organized in the state of Delaware with offices located at 2400 Palm Bay
Road NE, Palm Bay, Florida 32905 USA (“Contractor”).

 

RECITALS

 

WHEREAS, Aireon and Contractor have
engaged in discussions relating to changes each would like to incorporate in the Agreement; and

 

WHEREAS, the Parties now desire
to: (1) add new definitions; (2) amend the definition of “Other Payload”, and (3) amend Articles 4.2, 16.3, and 18.1
of the Agreement and Section 1.2 of Exhibit A, the Statement of Work, and Exhibit D.

 

NOW, THEREFORE, in consideration
of the foregoing, the agreements contained herein, the payments to be made by Aireon to Contractor under the Agreement and other
good and valid consideration, the receipt and adequacy of which are hereby expressly acknowledged, and intending to be legally
bound, the Parties hereby amend the Agreement as follows:

 

		1.	Capitalized terms used but not defined in this Amendment shall have the meanings ascribed thereto
in the Agreement.

 

		2.	Add the following new definitions:

 

		a.	“Auxiliary Component Customers” means any person or entity which owns or otherwise maintains a financial interest
in any Auxiliary Component.

 

		b.	“Auxiliary Component Work Product” means Work Product solely related to the Auxiliary Component(s).

 

		c.	“Auxiliary Component Hosting Cost Reimbursement Agreement” means an agreement between Harris and Iridium Satellite,
LLC specifying the integration and delivery of Auxiliary Component(s) as part of the Payload Enclosure, and related technical parameters.

 

    	 

    	 

    

 

 

		d.	“Payload Enclosure” means the enclosure delivered by Contractor enclosing the ADS-B Payload and the Auxiliary Components
that are located inside the enclosure.

 

		3.	Delete the definition of “Other Payload”.

 

		4.	Add definition of “Auxiliary Component” as follows:

 

“Auxiliary Component” means any auxiliary
sensor or instrument assembly, other than the ADS-B Payload, that is located either inside or outside or partly inside and partly
outside the Payload Enclosure and is provided on any satellite which is part of Iridium NEXT.

 

		5.	Article 4.2 Option for Other Payload(s) CLIN 002: is hereby deleted in its entirety and
replaced in its entirety as follows:

 

“Article 4.2  Auxiliary Component(s)

 

		a)	Aireon understands and agrees that Contractor will, to the extent permitted by and in accordance
with a separate Auxiliary Component Hosting Cost Reimbursement Agreement between Iridium Satellite LLC and Contractor, integrate
and deliver Auxiliary Components as part of the Payload Enclosure.

 

		b)	Contractor agrees that, as a condition precedent to the permission being granted in Article 4.2(a),
such integration of Auxiliary Component(s) shall not (i) have a material adverse impact upon the operation of the Payload, or (ii)
limit or modify any other obligations or rights of Contractor or Aireon as set forth in this Agreement; including but not limited
to Contractor’s obligations to meet the delivery schedule set forth in this Agreement. Contractor further agrees that at
all times, as between the Payload and any Auxiliary Component, the Payload and the continued stable operation of the Payload shall
take precedence and at all times be prioritized over any Auxiliary Component and the operation of any Auxiliary Component.

 

		c)	Aireon acknowledges and agrees that, in connection with the integration of Auxiliary Components:
(i) Work Product regarding the Payload may include Auxiliary Component Work Product, which will be clearly identified as such;
(ii) ) the configuration of the Payload Enclosure may be modified as agreed by the Parties during the Term of this Agreement; and
(iii) Auxiliary Component Work Product may be shared with or otherwise distributed to Auxiliary Component Customers; provided,
however, that Contractor shall comply with the obligations set forth in Article 13.1 regarding all Proprietary Information
relating to the Aireon System.

 

    	 

    	 

    

 

 

		d)	Aireon shall have no obligations regarding any Auxiliary Component and notwithstanding anything
to the contrary in this Agreement, all costs and expenses related to the integration and operation of any Auxiliary Component shall
be borne by Contractor.

 

		e)	Except as otherwise agreed to in writing by Aireon and Contractor, under no circumstances will
Aireon or Aireon’s suppliers, or subcontractors be liable or directly responsible to Contractor or any Auxiliary Component
Customers for any damages, liabilities, costs, expenses, suits, claims, or losses arising from, directly or indirectly, the operation,
integration, or accommodation of the Auxiliary Components for any reason and under any theory of liability (including for any direct
or indirect, consequential, special or other damages).”

 

		f)	Contractor shall also defend, indemnify and hold harmless Aireon and Aireon subcontractors and
suppliers, and each of their respective successors and assigns, from and against all claims, demand and actions and resulting loss,
liability, cost, expenses and damages (including, but not limited to, reasonable attorney’s fees and, to the extent permitted
by law, any fines and penalties) made and/or incurred  by (i) any Harris' customer, supplier, or contractor to the extent
arising solely from Contractor’s acts or omissions, and (ii) any other third party to the extent arising solely from Contractor's
gross negligence and willful misconduct, and in each case of (i) and (ii), solely in connection with the delivery, integration
and/or operation of any Auxiliary Components. This indemnification shall be conditioned upon the procedures for indemnification
set forth in Article 22.3.

 

		6.	Article 16.3 Inter-Party Waiver of Liability, all references to the term “Other Payloads”
in sub-articles 16.3.1 and 16.3.2 are replaced with the term “Auxiliary Components.”

 

		7.	Article 18.1 Storage: the first sentence is revised to read as follows:

 

“In the event that any Payload(s) or Payload
Enclosure(s) are placed in storage, all storage costs, including insurance, shall be borne by the Contractor.”

 

		8.	Exhibit A - Statement of Work, Section 1.2, Option, inclusive of CLIN 002, should be deleted
in its entirety.

 

    	 

    	 

    

 

 

		9.	Exhibit D – Completion Certification Form, all references to the term “other
payloads” are replaced with the term “Auxiliary Components”.

 

This Amendment may be executed and delivered
(including via facsimile or other electronic means) in one or more counterparts, each of which shall be deemed to be an original,
but all of which shall constitute one and the same agreement.

 

All other provisions of the Agreement not
expressly referred to in this Amendment remain in full force and effect.

 

IN WITNESS WHEREOF, the Parties have executed this Amendment
by their duly authorized representatives as of the date set forth in the Preamble.

 

	For Aireon	 	For Contractor	 
	 	 	 	 	 	 
	By: 	/s/ Donald L. Thoma	 	By: 	/s/ Janis Rubin-Telles	 
	 	 	 	 	 	 
	Name: 	Donald L. Thoma	 	Name: 	Janis Rubin-Telles	 
	  	 	 	 	 	 
	Title: 	CEO	 	Title: 	Manager, Contracts	 
	 	 	 	 	 	 
	Date: 	3/18/2013	 	Date: 	18 March 2013STRATEGIC TRANSACTION BONUS GRANT AGREEMENT

 

This Strategic Transaction
Bonus Grant Agreement (the “Agreement”) made as of this 28th day of February, 2013, by and between ACURA
PHARMACEUTICALS, INC., a New York corporation (the “Corporation”), with offices at 616 N. North Court, Suite 120, Palatine,
IL 60067, and Robert B. Jones, residing at 20 Beekman Terrace, Summit, NJ 07901 (the “Employee”).

 

WHEREAS, the
Corporation seeks (i) to retain the Employee; and (ii) increase the incentive of the Employee to continue to increase the value
of the Corporation and to enhance shareholder value by rewarding the consummation of a Strategic Transaction (as defined below);
and

 

WHEREAS, in
connection therewith, the Employee shall be eligible to receive from the Corporation a one-time Strategic Transaction Bonus Payment
as provided herein.

 

NOW, THEREFORE,
in consideration of the mutual covenants and undertakings herein contained, the parties agree as follows:

 

I.          DEFINED
TERMS

 

In addition to the
terms defined elsewhere herein, as used in this Agreement the terms shall have the meanings set forth in Exhibit A unless
the context dictates otherwise.

 

 

II.          STRATEGIC
TRANSACTION BONUS PAYMENT

 

1.          In
General; Bonus Amount. The Corporation will remit to the Employee a Strategic Transaction bonus payment of Nine Hundred Thousand
and 00/100 Dollars ($900,000) (net of applicable withholding taxes and subject to adjustment as provided in Section 4 below)(the
“Strategic Transaction Bonus Payment Amount”) upon the closing of a Strategic Transaction in 2013. Notwithstanding
anything to the contrary contained herein, (i) a Strategic Transaction Bonus Payment Amount shall be payable only once upon the
first Strategic Transaction to occur after the date of this Agreement, and (ii) if the closing of a Strategic Transaction occurs
in 2014, but received the approval of the Corporation’s Board of Directors in 2013, or the negotiations and due diligence
for such Strategic Transaction commenced in 2013, the Employee shall be entitled to the full Strategic Transaction Bonus Payment
Amount upon the closing of such Strategic Transaction in 2014.

 

2.          Payment
of Strategic Transaction Bonus Payment Amount. The Strategic Transaction Bonus Payment Amount shall be paid to the Employee
in cash, provided, however, that in the case of Strategic Transaction described in (i) Section (A) or Section (D) of the definition
of “Strategic Transaction” or (ii) Section (C) of the definition of Strategic Transaction,” and in which the
Corporation is not the surviving entity, the Strategic Transaction Bonus Payment Amount shall be paid by the Corporation to the
Employee in the same form as received by the Corporation or its shareholders in such Strategic Transaction, and may include, inter
alia, cash, stock and/or other securities of the third-party acquirer in such Strategic Transaction. Subject to Section
1 above, the Strategic Transaction Bonus Payment Amount shall be paid by the Corporation to the Employee upon the closing of the
first Strategic Transaction to be completed following the date of this Agreement. Payment of the Strategic Transaction Bonus Payment
Amount shall not reduce or eliminate any other bonus or other payments to the Employee specified in Employee’s Executive
Employment Agreement.

 

    	 

    	 	

    
 

3.          Strategic
Transaction Bonus Payment Following Termination of the Employee’s Employment.

 

(A)If the Employee’s
employment with the Corporation is terminated (i) by the Corporation without Cause or due to Employee's Disability, (ii) by the
Employee for Good Reason, or (iii) due to the death of the Employee, Employee (or his estate, as appropriate) shall be entitled
to the Strategic Transaction Bonus Payment Amount relating to the first Strategic Transaction occurring following the termination
of Employee's employment with the Corporation, provided, however, that (i) such Strategic Transaction shall
have been completed in 2013 (or in 2014, subject to Section 1 above), and (ii) that the negotiations and due diligence for
such Strategic Transaction shall have commenced prior to the Employee’s termination of employment.

 

(B)If the Employee's
employment with the Corporation is terminated for any reason other than as provided in Section 3 (A) above, including, without
limitation, resignation by the Employee for any reason or cause other than for Good Reason, the Corporation shall have no obligation
to pay any Strategic Transaction Bonus Payment Amount to the Employee, except to the extent of any Strategic Transaction Bonus
Payment Amount then currently due and payable at the time of such termination.

 

4.          Section
280G. In the event the payment of the Strategic Transaction Bonus Payment Amount, combined with any other payments to which
the Employee may be entitled under Employee’s Executive Employment Agreement or otherwise result in the application of Section
280G of the Internal Revenue Code or will otherwise be subject to the excise tax (“Excise Tax”) imposed by Section
4999 of the Internal Revenue Code (or any similar tax that may hereafter be imposed) the Strategic Transaction Bonus Payment Amount
shall be reduced to the Reduced Amount (as defined below) if reducing the Strategic Transaction Bonus Payment Amount will provide
the Employee with a greater net after-tax amount than would be the case if no such reduction was made. The “Reduced Amount”
shall be an amount which maximizes the aggregate value of the Strategic Transaction Bonus Payment Amount without causing such payment
to be subject to the Excise Tax, determined in accordance with Sections 280G and/or 4999 of the Internal Revenue Code. In the case
of any such reduction, the Corporation shall reduce the Strategic Transaction Bonus Payment Amount by first reducing payments that
are not payable in cash (if any), and then by reducing cash payments.

 

III.          MISCELLANEOUS

 

1.          Taxes.
In order to comply with all applicable federal or state income, social security, payroll, withholding or other tax laws or regulations,
the Corporation may take such action and may require the Employee to take such action, as it deems appropriate to ensure that all
applicable federal or state income, social security, payroll, withholding or other taxes, which are the responsibility of the Employee,
are withheld or collected from the Employee.

 

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2.          Award
Not a Service Contract. Nothing in this Agreement gives the Employee the right to remain in the employ of the Corporation.
Except to the extent explicitly provided otherwise in the Employee’s Executive Employment Agreement, the Employee is an “at
will” employee whose employment may be terminated by the Corporation without liability at any time for any reason.

 

3.          Notice.
Any notice required to be given pursuant to this Agreement shall be in writing and shall be deemed to have been duly delivered
upon receipt or, in case of notices by the Corporation, five (5) days after deposit in the U.S. mail, postage prepaid, addressed
to the Employee at the address provided for herein.

 

4.          Assignability.
The rights and obligations of the Corporation under this Agreement shall be transferable to any one or more persons or entities,
and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Corporation's successors and
assigns. The Employee may not assign this Agreement or any of his rights or obligations hereunder without the prior written consent
of the Corporation.

 

5.          Further
Documentation. The Employee agrees upon request to execute any further documents or instruments necessary or desirable in the
sole determination of the Corporation to carry out the purposes or intent of this Agreement.

 

6.          Amendments
and Termination of Agreement. Any amendments or revisions to this Agreement must be proposed in writing by a Party and mutually
accepted in writing by both Parties before they shall become effective and binding.

 

7.          Acknowledgment.
The Employee acknowledges and agrees that he has reviewed this Agreement in its entirety, has had an opportunity to obtain the
advice of counsel prior to executing and accepting this Agreement and fully understand all provisions of this Agreement.

 

8.          Headings.
Any headings used in this document are for convenience of reference only and may not be given any weight in interpreting any provision
of this Agreement.

 

9.          Severability.
If any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision
had never been inserted herein.

 

10.          Governing
Law. This Agreement shall be governed and construed in accordance with the laws of the state of New York.

 

11.          Counterparts.
This Agreement may be executed with counterpart signature pages, including by facsimile or PDF copy, all of which together shall
constitute one and the same agreement.

 

    	3

    	 

    
 

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

 

	ATTEST:	 	ACURA PHARMACEUTICALS, INC.
	 	 	 	 	 
	 	 	 	 	 
	/s/ John Reilly	 	By:	/s/ Richard  J. Markham
	 	 	 	Name:	Richard J. Markham
	 	 	 	Title:	Chairman of the Board
	 	 	 	 	 
	 	   	 	 	 
	 	 	 	 	 
	WITNESS:	 	EMPLOYEE
	 	 	 	 	 
	 	 	 	 	 
	/s/ John Reilly	 	By:	/s/ Robert B. Jones
	 	 	 	Robert B. Jones

 

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EXHIBIT A

 

Definitions

 

For the purposes of this Agreement, the following terms shall
be defined as set forth below:

 

“Cause” shall have the
meaning provided in the Employee’s Executive Employment Agreement.

 

“Disability” shall have
the meaning provided in the Employee’s Executive Employment Agreement.

 

“Employee’s Executive Employment
Agreement” means the Executive Employment Agreement dated March 18, 2008 between the Employee and the Corporation, as
amended.

 

“Good Reason” shall
have the meaning provided in the Employee’s Executive Employment Agreement.

 

“Net Strategic Transaction Proceeds”
shall mean (x) in the case of a Strategic Transaction described in (i) Section (A) or (D) of the definition of Strategic Transaction,
or (ii) Section (C) of the definition of Strategic Transaction pursuant to which the Corporation is not the surviving entity, the
aggregate cash, stock and/or other securities paid to the Corporation or its securityholders in such Strategic Transaction, including
amounts paid to the Corporation or its securityholders by the acquiring party subsequent to the consummation of such Strategic
Transaction (as provided in the acquisition documents for such Strategic Transaction) relating to the satisfaction of post-closing
conditions, earn-out provisions, milestone or contingent payments, or similar conditions or provisions, and (y) in the case of
a Strategic Transaction described in (i) Section (B) or (E) of the definition of Strategic Transaction, or (ii) Section C of the
definition of Strategic Transaction pursuant to which the Corporation is the surviving entity, the aggregate cash, stock and/or
other securities paid to the acquired third party (the “Acquired Entity”) or its securityholders in such Strategic
Transaction, including amounts paid by the Corporation to the Acquired Entity or its securityholders subsequent to the consummation
of such Strategic Transaction (as provided in the acquisition documents for such Strategic Transaction) relating to the satisfaction
of post-closing conditions, earn-out provisions, milestone or contingent payments, or similar conditions or provisions.

 

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“Strategic Transaction”
means the completion in 2013 (or in 2014, subject to Article II, Section 1) of any one of the following, in one or a series of
related transactions (A) the acquisition (other than solely from the Corporation) by any individual, entity or group (within the
meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended ("Exchange Act")),
other than the Corporation or any subsidiary or affiliate (within the meaning of Rule 144 under the Securities Act of 1933, as
amended), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent
(50%) of the combined voting power of the then outstanding voting securities of the Corporation entitled to vote generally in the
election of directors (the "Voting Securities"), (B) the acquisition by the Corporation or any subsidiary of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty (50) percent of the combined
voting power of the outstanding Voting Securities of a third party corporation, limited liability company, partnership or other
entity, (C) a reorganization, merger, consolidation, share exchange, recapitalization, business combination or similar transaction
of the Corporation, (D) a sale of all or substantially all of the Corporation’s assets (measured by the value or earning
power of the assets); or (E) the purchase of all or substantially all of the assets of a third party corporation, limited liability
company, partnership or other entity; provided, however, that any transaction described in (i) Section (B) or (E) above, or (ii)
Section (C) above pursuant to which the Corporation is the surviving entity, that results in Net Strategic Transaction Proceeds
of less than $25 million shall not be considered a Strategic Transaction for purposes of this Agreement.

 

“without Cause” means
a termination by the Corporation of the Employee's employment other than due to death, Disability or for Cause.

 

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