Document:

erf_8ka-ex1002.htm

    

      Exhibit
10.2                                    Exclusive
Canadian Reseller Agreement

    

     

    
 

    Portions
of this exhibit indicated by “***” have been omitted pursuant to the Company’s
request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended, and the omitted material has been separately
filed with the Securities and Exchange Commission.

    ___________________________________

    

    EXCLUSIVE
RESELLER AGREEMENT

     

    This
Exclusive Reseller Agreement is entered into as of this 13th day of January,
2009 (“Effective Date”) between Schlumberger Canada Limited, through its
Schlumberger Information Solutions Remote Connectivity North America division
(“SIS RCO NAM”), an Ontario corporation having a place of business at 525 – 3rd
Avenue SW, Calgary, Alberta T2P 0G4 (hereinafter referred to as “Schlumberger”)
and ERF Wireless, Inc., a Nevada corporation having a place of business at 2911
South Shore Blvd., Suite 100, League City, Texas 77573 (hereinafter referred to
along with its Affiliates as “ERF”).  Schlumberger and ERF are
sometimes hereafter collectively referred to as the “Parties”, and individually
as a “Party.”

     

    RECITALS

     

    WHEREAS, Schlumberger is an
oilfield services and technology company that has developed and continues to
develop technology relating to oilfield services, to the Oil and Gas Sector,
which includes well stimulation, wireline logging, measurement-while-drilling,
logging-while-drilling, directional drilling and well construction, perforating
systems, shaped charges, well completions, oilfield related tools and equipment,
and a full range of information systems and telecommunication services and
terrestrial infrastructure to the Oil and Gas Sector, while owning and operating
a global network of teleports and providing satellite bandwidth;

     

    WHEREAS, ERF is a company that
applies wireless broadband technology to a select suite of enterprise,
commercial and retail communications needs and has recently utilized its
extensive wireless network coverage in oil and gas production regions of Texas,
New Mexico Louisiana, and Oklahoma through its Oil & Gas Services Division
which provides wireless high-speed broadband communications to drilling and
production operations;

     

    WHEREAS, ERF and Schlumberger
have agreed to collaborate in the area of wireless broadband products and
services in Canada (the “ERF Services”);

     

    WHEREAS, ERF grants to
Schlumberger the exclusive right to use and/or distribute, including but not
limited to license, sublicense, lease or otherwise commercialize the ERF
Services. The ERF Services and pricing are set forth in Schedule A with
Schlumberger’s minimum purchase commitments set forth in Schedule
B.  Notwithstanding, ERF retains the right to resell its ERF Services
to those Oil and Gas Sector end users identified in Schedule C (“ERF Retained
Clients”). Products and services in development shall be declared in Schedule D
and updated during a monthly technical review with Schlumberger;

     

    NOW THEREFORE, in
consideration of the mutual covenants hereinafter recited and other good and
valuable consideration (the receipt and sufficiency of which is mutually
acknowledged), Schlumberger and ERF do hereby agree as follows:

     

    CONDITIONS
PRECEDENT

     

    As a
condition precedent to the execution of this Agreement, the Parties have agreed
to provide the following:

     

    
      	
               
      

            	
              (i)

            	
              Satisfactory
      completion of due diligence and resolution of all issues that arise in the
      course of the review;

            

    

    
      	
               
      

            	
              (ii)

            	
              All
      required approvals and authorizations from ERF management, and ERF Board
      of Directors and/or shareholders, as necessary;
  and

            

    

    
      	
               
      

            	
              (iii)

            	
              All
      required approvals and authorizations from Schlumberger management, as
      necessary.

            

    

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    

    AGREEMENT

     

    1.           DEFINITIONS

     

    1.1           “Agreement”
means this Exclusive Reseller Agreement, including all exhibits and attachments
hereto.

     

    1.2           “Affiliates”
means and includes:  (i) any parent company (including all divisions
thereof) of a Party which now or hereafter owns or controls, directly or
indirectly through one or more intermediaries, at least fifty percent (50%) of
the stock having the right to vote for or appoint directors of the Party; and
(ii) any other company, regardless of where situated, at least fifty percent of
whose stock having the right to vote for or appoint directors is now or
hereafter owned or controlled, directly or indirectly through one or more
intermediaries, by the Party or a parent company of the Party.

     

    1.3           “Confidential
Information” means: (a) any information relating to the Parties’ product plans,
designs, software design, source code, end users, costs, prices and clients
and/or product names, finances, marketing plans, business opportunities,
personnel, research, development or know-how; (b) to the extent not otherwise
covered in (a), any information that is designated by the disclosing Party as
confidential writing or, if disclosed orally, reduced in writing and designated
as confidential within thirty (30) days; and (c) the terms and conditions of
this Agreement; provided, however, that “Confidential Information” will not
include information that: (i) was generally available to the public at the time
of receipt from the disclosing Party, or thereafter becomes generally available
to the public other than through a breach of this Agreement by the recipient
Party or a breach of any other duty of confidentiality to the disclosing Party
of which the recipient Party is aware; (ii) is known to the recipient Party on a
non-confidential basis prior to its receipt from the disclosing Party; (iii) is
disclosed with the prior written consent of the disclosing Party; (iv) becomes
known to the recipient Party from a source other than the disclosing Party on a
non-confidential basis and without breach of this Agreement by the recipient
Party; (v) was required to be disclosed pursuant to law; or (vi) is developed
independently by personnel of the recipient Party who had no substantive
knowledge of the disclosing Party’s Confidential Information at the time of such
independent development.

     

    1.4           “Documentation”
means the documents or other information pertaining to the ERF Services, as
specified in Schedule A.

     

    1.5           “End
User” refers to any person or entity in the Oil and Gas Sector who licenses the
ERF Services from Schlumberger.

     

    1.6           “Oil
and Gas Sector” means the sector of industry focused on exploration, data
acquisition, development, drilling, production, gathering, refining,
distribution and transportation of hydrocarbons and includes but is not limited
to major resource holders, national oil companies, multinational oil companies,
drilling contractors, services contractors, and other related
businesses.

     

    1.7           “Intellectual
Property” means all discoveries, patentable or unpatentable, patents, mask
works, patent applications, copyrights (whether published or unpublished), trade
secrets, knowhow, designs, methods, processes, work-flow(s), inventions,
proprietary information, but as used herein excludes all trademarks or trade
names (whether common-law or registered).

     

    1.8           “Schlumberger”
means Schlumberger Technology Corporation, through its Schlumberger Information
Solutions Remote Connectivity North America division.

     

    1.9           “Territory”
means Canada.

     

    1.10           “ERF”
means, collectively, ERF and all ERF Affiliates.

     

    1.11           “ERF
Services” includes the wireless broadband products and services for the Oil and
Gas Industry contemplated under this Agreement, which includes supporting
equipment, hardware and software, including network edge and backhaul radio
based communications systems, fiber, cable-based and satellite communications
required in the routine distribution of ERF products and services. This also
includes base-band equipment and assets such as radio and telecommunications
towers, cabling, power supplies, and distribution as utilized in the provision
of ERF existing and future networks that are owned, leased, contracted for, or
otherwise utilized to provide services to Schlumberger.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    1.12           “ERF
Technology” means the current and future versions of all of ERF technology
related to wireless communications in the provision of ERF Services existing on
the Closing Date, including but not limited to the technology identified in
Schedule A, as well as any future products with the same or similar
functionality.

     

    2.        
    CONTRIBUTION & EXCHANGE

     

    2.1           
Schlumberger’s Contribution.

     

    (a)           Pricing. In exchange
for the exclusive distribution rights granted herein in the Territory for an
initial period of three (3) years plus any extensions as defined herein,
Schlumberger agrees to the pricing and the minimum revenue requirements as set
forth in Schedule B and agrees to pay ERF within fifty (50) days of receipt of
invoice from ERF. Schlumberger retains the right to determine the pricing
schedule at which the ERF Services and ERF Technology and derivate works are
distributed in the Oil and Gas Sector, exclusive of any previously negotiated
pricing that ERF may have negotiated with pre-existing customers as set forth in
Schedule C, which ERF shall be permitted to honor.

     

    (b)           Increases in Pricing.
For the hardware and bandwidth configurations defined in this Agreement, ERF may
not increase the prices set forth in Schedule A by more than ten percent (10%)
per year without the prior written consent of Schlumberger.  Any price
increase of less than ten percent (10%) is effective only upon thirty (30) days
written notice to, and agreement by, Schlumberger.

     

    (c)           Exclusive
Provider.
Schlumberger agrees that it will consider ERF its exclusive provider of
the type of wireless broadband products and services included in the Services
throughout the Territory, provided that such collaboration is not prohibited by
operation of law.

     

    The
exclusivity set forth in the previous paragraph is subject to ERF Wireless
offering its services at commercial quality acceptable to
Schlumberger.

     

    Schlumberger
will notify ERF of regions to which Services should be provisioned (as defined
by Schlumberger business demographics analysis) within a minimum timeframe of
six months prior to the intended business inception date or the first day of the
Services commercial availability and ERF shall be offered a “Right of First
Refusal” to build, acquire, lease, or otherwise provide the infrastructure
required to provide the Services therein.

     

    Should
ERF not be able to provide the Services or declare no intention to deploy such
service in a region of the Territory where Schlumberger has expressed
significant business interest, the region shall be declared exempt of this
agreement and defined in Schedule E.

     

    Should
ERF elect to not provide the services in the Territory required by Schlumberger,
ERF will notify Schlumberger of that fact within sixty days of the original
request by Schlumberger that they will not exercise their Right of First
Refusal.

     

    For
deployments in Canada, where the Technology is already available (is technically
operational and available for commercial purchase) within the Territory, ERF
shall be offered a “Right of First Refusal” to offer an equivalent or superior
service.  Pricing shall be negotiated by the parties in good faith.
This clause shall only apply to Schlumberger’s SIS RCO NAM
business.

     

    2.2           ERF
Contribution.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    
      
        	
              	
                (a)

              	
                Exclusive
      Reseller. Subject to the terms and conditions of this Agreement,
      ERF hereby appoints Schlumberger as the exclusive authorized reseller of
      ERF Services and ERF Technology to the Oil and Gas Sector within the
      Territory, and Schlumberger hereby accepts such
    appointment.

              

      

    

     

    
      
        	
              	
                (b)

              	
                For
      avoidance of doubt, Schlumberger’s exclusivity rights hereunder preclude
      ERF or any third party from commercializing the ERF Technology in the Oil
      and Gas Sector within the Territory while this Agreement is in force and
      effect, except for the ERF Retained Clients set forth in Schedule
      C.  The Parties acknowledge and agree that this license is
      limited to the Oil and Gas Sector and that Schlumberger will not
      sublicense the ERF Technology outside of the Oil and Gas
      Sector.  Schlumberger’s exclusivity shall be subject to minimum
      purchase commitments set forth in Schedule B.  To the extent
      Schlumberger does not achieve such minimum purchase commitments during any
      given year, Schlumberger reserves the right to retain its exclusivity
      rights through the payment of a supplemental cash amount to achieve the
      required commitment levels.

              

      

    

     

    
      
        	
              	
                (c)

              	
                Development
      Rights. ERF grants to Schlumberger a limited, non-exclusive
      royalty-free license and right to make derivative works of ERF Technology
      in the Oil and Gas Sector for the Territory during the duration of the
      Agreement.  Schlumberger will retain all intellectual property
      rights associated with any such derivative works.  ERF retains
      all intellectual property rights to ERF Technology.  ERF grants
      to Schlumberger perpetual rights to use, commercialize, distribute, or
      modify ERF Technology to the extent that ERF Technology is incorporated
      into the derivative works created by Schlumberger for the Oil and Gas
      Sector in the Territory. Schlumberger grants ERF the right to resell such
      derivatives of the ERF Technology to any ERF Retained Client on such terms
      and at such pricing as is subsequently
agreed.

              

      

    

     

    3.          
  INTELLECTUAL PROPERTY

     

    3.1           ERF Ownership. Except
as may be otherwise expressly set forth herein, ERF retains all rights, title,
and interest to: (i) the ERF Technology; (ii) ERF service marks, trademarks
and/or trade names; (iii) all Intellectual Property or intangible rights
associated with the ERF Technology and related Documentation; and (iv) all
enhancements to the ERF Technology that are part of ERF development plan that
are not funded or developed by Schlumberger.

     

    3.2           Rights in ERF Intellectual
Property. ERF grants to Schlumberger the right to make, have made and to
use derivative works based on the ERF Technology.  Schlumberger will
own the Intellectual Property rights in any derivative works it creates of ERF
Technology and will be free to use, commercialize, distribute, sell or otherwise
make use of the derivative works without accounting to ERF for royalties or
other payments.  In connection with Schlumberger’s rights to make
derivative works of the ERF Technology and to market and distribute the ERF
Technology and Documentation, ERF hereby grants to Schlumberger a limited,
non-exclusive, royalty-free license to ERF Technology solely for the purpose of,
and only to the extent required for, Schlumberger’s performance under this
Agreement.  ERF further grants to Schlumberger the worldwide,
non-exclusive, irrevocable right during the term of Schlumberger’s rights of
distribution under this Agreement to use (1) all copyrighted materials contained
in the ERF Technology, Documentation, and any packaging or other materials
provided by ERF and (2) all trademarks associated with the ERF Technology for
the purpose of marketing, training and reselling the ERF Technology to End
Users.

     

    3.3           Ownership of Derivative
Works. Schlumberger will own all right, title and interest to derivative
works of the ERF Technology developed by Schlumberger’s employees and/or
subcontractors, and will be free to modify, use, lease, sell or otherwise
distribute any such derivative works without restriction and in any
manner.  Schlumberger agrees that, for the duration of the exclusive
distribution rights granted in this agreement, Schlumberger agrees not to use,
sell, license, sublicense, or otherwise commercialize or transfer the derivative
works for use outside the Oil and Gas Sector.

     

    4.      
      SCHLUMBERGER’S RIGHTS AND
RESPONSIBILITIES

     

    4.1           Purchasing
Obligation. Schlumberger’s exclusivity shall be subject to minimum
purchase commitments set forth in Schedule B.  To the extent,
Schlumberger does not achieve such minimum purchase commitments during any given
year, Schlumberger reserves the right to retain its exclusivity rights through
the payment of a supplemental cash amount to achieve the required commitment
levels.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    4.2           Pricing of ERF
Technology. Schlumberger will be solely responsible for determining the
pricing schedule at which the ERF Technology are distributed in the Oil and Gas
Sector except for those ERF retained clients listed in Schedule C.

     

    4.3           Maintenance
Contracts.  To the extent any ERF Retained Clients are assigned
to Schlumberger, as additional consideration for the exclusive rights granted
herein, Schlumberger agrees to assume the maintenance obligations for such
clients (the “Maintenance Contracts”), following confirmation through due
diligence that the terms and conditions of the existing ERF contracts permit
assignment to Schlumberger.  Following the assignment of any agreed
existing client agreements from ERF, Schlumberger shall be permitted to directly
invoice and retain all maintenance fees associated with the Maintenance
Contracts.

     

    5.           
 ERF RIGHTS AND RESPONSIBILITIES

     

    5.1           Schlumberger’s
Exclusivity. ERF represents that it has not granted the right to resell
the ERF Technology in the Oil and Gas Sector to any third party or executed any
other agreement with a third party that may infringe upon the rights granted to
Schlumberger herein and agrees that it will not use, sell, or otherwise
distribute, or authorize any third party to use, sell or otherwise distribute
within the Territory, the ERF Technology or any other existing products or
technology that ERF might possess upon the Effective Date in the Oil and Gas
Sector during the term of this Agreement.

     

    5.3           Patent Application.
ERF represents that with respect to the ERF Technology, including any new
products, it. will use its best efforts to file patent applications as soon as
reasonably practical.

     

    5.4           Project Staffing. ERF
represents and warrants that it will retain, for the duration of this Agreement,
personnel of sufficient education and/or experience to meet its obligations
under this Agreement, including but not limited to providing commercially
reasonable updates and enhancements to the ERF Technology and to provide such
updates to Schlumberger, as well as to support Schlumberger’s continued
utilization and resale of the ERF Technology.  Such staffing
requirements will be determined based on the monthly meeting with Schlumberger
to develop a reasonable support system for the planned expansion
areas.

     

    5.5           Training and Knowledge
Transfer. ERF agrees to provide Schlumberger technical support,
marketing, and pre- and post- sales support, and one hundred (100) hours of
knowledge transfer at no additional cost to Schlumberger’s Houston office
located at 5599 San Felipe Street. Schlumberger agrees to provide ERF with one
hundred (100) hours of knowledge transfer regarding safety and efficiency while
working in the Oil and gas Sector at no additional cost at Schlumberger’s
training facilities.  The parties are individually responsible for the
respective travel and accommodation expenses associated with the
training.

     

    5.6           Maintenance and
Support. ERF agrees to use its best efforts to correct any critical bugs
in the Services, upon Schlumberger’s request, at no additional
charges.  A critical bug is one that prevents Schlumberger or its
client from using the ERF Services as intended.  For avoidance of
doubt, ERF agrees to provide Schlumberger with enhancements to the technology
that are developed for other sectors, including the Public Sector, if
Schlumberger believes that the features are applicable to the Oil and Gas
Sector.  Following the Closing Date, and for the initial three year
term of this Agreement and any renewals thereof, ERF will provide third-tier
maintenance support to Schlumberger’s customer support group at no additional
charge.  ERF will not be required to provide support directly to
Schlumberger’s clients.  This maintenance will entitle Schlumberger,
and its clients, access to any bug-fixes, patches, upgrades, and enhancements to
the ERF Technology at no additional cost.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    5.7           Enhancements. ERF
will continue to enhance the functionality of ERF Technology and will provide to
Schlumberger no cost software and same-specification hardware upgrades.
Functional upgrades involving hardware modification shall be priced at
cost.  If Schlumberger desires specific developments or enhancements
to ERF Technology that are not in current development plans, ERF agrees to
provide development services to Schlumberger at a rate not to exceed $200 per
hour.  For avoidance of doubt, and to ascertain ownership of
intellectual property and applicable product development, ERF shall declare
specific products currently in development.  Products and services in
development shall be declared in Schedule D and updated during a monthly
technical review with Schlumberger.  Schlumberger-funded developments
will be considered works made for hire in accordance with international
copyright laws and all intellectual property rights associated with such
developments will vest in, and be retained by, Schlumberger.  None of
the existing ERF Technology or intellectual property shall be affected,
impaired, or transferred as a result of the development.  Schlumberger
hereby grants ERF a limited, non-exclusive, royalty-free license to ERF to
resell or otherwise distribute the Schlumberger-funded developments outside of
the Oil and Gas Sector.

     

    5.8           Points of Contact.
Each Party has identified its primary contact, together with a list of its
representatives having responsibility for resolution of increasingly critical
issues related to this Agreement.  In the event of any change in names
of these points of contact, such Party will immediately notify the other Party
of the replacement representative.

     

    6.       
     REPRESENTATIONS AND WARRANTIES

     

    6.1           Ownership. ERF
represents and warrants:

     

    
      	
               
      

            	
              (i)

            	
              that
      it is the owner of, or has obtained a license from the owner of, all
      right, title and interest, including patents, copyright, and/or trade
      secrets, if any, in the ERF Technology and documentation, or that the
      preexisting information related to the ERF Technology and documentation
      are within the public domain and not subject to the protections of
      copyright law;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that
      it has obtained or will obtain prior to delivery under this Agreement, all
      licenses, approvals, and releases required to enable Schlumberger to
      exercise the license granted in this Agreement, including without
      limitation, the release of each person or organization whose name, voice,
      likeness, portrayal, impersonation or performance is included in any ERF
      Technology or documentation, as well as rights in third-party intellectual
      property for Schlumberger to the extent
  necessary;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              that
      it has not previously granted and will not grant any rights in any ERF
      Technology to any third party in the Oil and Gas sector inconsistent with
      the rights granted to Schlumberger
herein;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              that
      the ERF Technology and documentation do not violate or infringe any
      patent, copyright, trade secret or other proprietary right of any third
      party and that ERF is not aware of any facts upon which such a claim for
      infringement could be based.

            

    

     

    6.2           ERF Technology Warranty to
Schlumberger. ERF warrants that the ERF Technology will perform
substantially in accordance with its specifications and
requirements;

     

    6.3           ERF Technology Warranty to
End Users. ERF will warrant the ERF Technology to End Users, which will
be passed through by Schlumberger.  Section 5.6 sets forth the support
obligations of ERF.

     

    7.    
        INDEMNIFICATION

     

    7.1           ERF
Indemnities.

     

    (a)           ERF
agrees to defend, indemnify and hold harmless Schlumberger and its directors,
officers, employees, agents and contractors from any and all losses, damages,
liabilities, costs, expenses (including reasonable legal fees), judgments or
settlement amounts arising out of or in connection with any claim that the
marketing, sale or use of the ERF Technology infringes any patent, copyright,
trademark, trade secret, privacy right, right of publicity or other proprietary
right of a third party.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    (b)           ERF
agrees to defend, indemnify and hold harmless Schlumberger and its directors,
officers, employees, agents and contractors, from and against any and all
losses, damages, liabilities, costs, expenses (including costs and reasonable
fees of attorneys and other professionals), judgments or settlement amounts
arising out of or in connection with bodily/personal injury, disease or death of
ERF employees, without regard to the cause or causes thereof or the sole or
concurrent negligence, fault or strict liability regardless of the fault of
Schlumberger.

     

    (c)           ERF
agrees to defend, indemnify and hold harmless Schlumberger and its directors,
officers, employees, agents and contractors, from and against any and all
losses, damages, liabilities, costs, expenses (including costs and reasonable
fees of attorneys and other professionals), judgments or settlement amounts
arising out of or in connection with damage to or loss or destruction of ERF
property whether owned, hired, leased or otherwise, without regard to the cause
or causes thereof or the sole or concurrent negligence, fault or strict
liability regardless of the fault of Schlumberger.

     

    (d)           ERF
agrees to defend, indemnify and hold harmless Schlumberger and its directors,
officers, employees, agents and contractors, from and against any and all
losses, damages, liabilities, costs, expenses (including costs and reasonable
fees of attorneys and other professionals), judgments or settlement amounts
arising out of or in connection with a breach of ERF representations and/or
warranties as set forth in Sections 6.1 and 6.2 above.

     

    7.2           Schlumberger
Indemnities.

     

    (a)           Schlumberger
agrees to defend, indemnify and hold harmless ERF and its directors, officers,
employees, agents and contractors, from and against any and all losses, damages,
liabilities, costs, expenses (including costs and reasonable fees of attorneys
and other professionals), judgments or settlement amounts arising out of or in
connection with bodily/personal injury, disease or death of Schlumberger’s or
its Affiliate’s employees, without regard to the cause or causes thereof or the
sole or concurrent negligence, fault or strict liability regardless of the fault
of ERF.

     

    (b)           Schlumberger
agrees to defend, indemnify and hold harmless ERF and its directors, officers,
employees, agents and contractors, from and against any and all losses, damages,
liabilities, costs, expenses (including costs and reasonable fees of attorneys
and other professionals), judgments or settlement amounts arising out of or in
connection with damage to or loss or destruction of Schlumberger’s or its
Affiliates property whether owned, hired, leased or otherwise, without regard to
the cause or causes thereof or the sole or concurrent negligence, fault or
strict liability regardless of the fault of ERF.

     

    8.          
  LIMITATION OF LIABILITY

     

    EXCEPT IN
CONNECTION WITH A CLAIM FOR BREACH UNDER THIS AGREEMENT’S CONFIDENTIALITY
PROVISIONS, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY PUNITIVE,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO
BREACH OR FAILURE TO PERFORM UNDER THIS AGREEMENT, EVEN IF THAT PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT IN CONNECTION WITH A THIRD
PARTY’S INTELLECTUAL PROPERTY CLAIM FOR INFRINGEMENT UNDER SECTION 7.1 OR CLAIM
FOR BREACH OF THE CONFIDENTIALITY PROVISIONS UNDER ARTICLE 9, NEITHER PARTY’S
TOTAL LIABILITY TO THE OTHER PARTY FOR ALL DAMAGES, LOSSES AND CAUSES OF ACTION,
WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, WILL IN NO EVENT
EXCEED THE AMOUNT OF FEES PAID UNDER THIS AGREEMENT.

     

    9.       
     CONFIDENTIALITY

     

    9.1           The
Parties acknowledge that, in the course of performance of their obligations
under this Agreement, each Party may disclose Confidential Information to the
other.  The receiving Party will not use the Confidential Information
of the disclosing Party other than for the purpose of performing its obligations
under this Agreement or as expressly permitted under the terms of this Agreement
or by a separate written agreement.  The receiving Party’s obligation
under this Article 9 shall be for a period of five (5) years after the date of
disclosure of the Confidential Information except for either Party’s source code
which shall be held confidential in perpetuity.

     

    
      
         

      

      
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    9.2           Each
Party will protect the other’s Confidential Information from unauthorized
dissemination and use with the same degree of care that each such Party uses to
protect and safeguard its own like information, but not less than the degree of
care that would be exercised by a prudent person given the sensitivity and
strategic value of such Confidential Information. Confidential Information will
be disclosed only to the employees of the recipient Party who have a “need to
know” and who have executed an internal nondisclosure agreement at least as
restrictive as the terms of this Agreement. Neither Party will disclose
Confidential Information of the other to any third party without the other
Party’s prior written consent to such disclosure, unless such disclosure is
compelled by a court of competent jurisdiction over the Parties.

     

    9.3           Notification. Each
Party agrees to notify the other promptly on the event of any breach of security
under conditions in which it would appear that any confidential information was
prejudiced or exposed to loss.  Each Party will, upon request of the
other, take all other reasonable steps necessary to recover any compromised
confidential information disclosed to or placed in the possession of each Party
by virtue of this Agreement.  Each Party will individually bear the
cost of taking any such steps.

     

    9.4           Neither
Party will issue any press release or make any public announcement(s) relating
in any way whatsoever to this Agreement or the relationship established by this
Agreement without the express prior written consent of the other Party, which
consent shall not be unreasonably withheld. However, the Parties acknowledge
that this Agreement, or portions thereof, may be required under applicable law
to be disclosed, as part of or an exhibit to a Party’s required public
disclosure documents.  ERF will be required to make a public
announcement due to the Material Event nature of this agreement within 4
business days following the closing of the Proposed
Agreement.  Schlumberger, through its SIS RCO NAM division, is invited
to make it a joint announcement.  The Parties will jointly seek
confidential treatment of this Agreement to the maximum extent reasonably
possible, in documents approved by both Parties and filed with the applicable
governmental or regulatory authorities.

     

    10.           TERM
AND TERMINATION

     

    10.1           Term and Right of First
Refusal. This Agreement will commence on the Effective Date, will
continue in full force and effect for three (3) years with two (2), one (1)-year
automatic extensions, unless terminated by either Party with thirty (30) days
notice.  ERF agrees to offer Schlumberger first rights of refusal on
any newly developed products, software, or services, other than to the ERF
Retained Clients set forth in Schedule C.  The parties agree to
negotiate the terms for such exclusivity agreement in good faith.  If
the parties are unable to reach an agreement on exclusivity, ERF agrees to then
offer Schlumberger the right to resell the new products or services in the Oil
and Gas Sector in the Territory on terms no less favorable to the Reseller
agreement than that in effect between the parties on the original Closing
Date.

     

    10.2           Termination For
Schlumberger’s Convenience. Schlumberger will have the right to terminate
this Agreement for convenience after the full Initial Consideration obligation
is met upon thirty (30) days written notice  Any termination under
this provision will not result in any penalties or refunds of consideration
being due from ERF; however, the Parties agree to negotiate a new agreement to
allow Schlumberger to continue as a standard reseller, without
exclusivity.

     

    10.3           Termination For
Cause. Except as otherwise provided in Section 10.3 (b) below, either
Party will have the right to terminate this Agreement immediately upon written
notice at any time if:

     

    (a)           The
other Party is in material breach of any term, condition or covenant of this
Agreement and fails to cure that breach within ninety (90) days after written
notice of such breach.

     

    (i) With
respect to ERF obligations, “material breach” will include (but not be limited
to): (1) an act, inaction or occurrence resulting in Schlumberger’s inability to
offer the ERF Technology to the Oil and Gas Sector on an exclusive basis; (2) an
act, inaction or occurrence resulting in Schlumberger’s inability to offer the
ERF Technology to the Oil and Gas Sector arising from an impediment to ERF
rights as licensor or to Schlumberger’s license rights (including but not
limited to foreclosure of liens, ERF bankruptcy preventing Schlumberger’s
continued license rights, or similar occurrence); (3) ERF failure to provide
personnel of sufficient education and/or experience to meet its obligations
under this Agreement as set forth in Section 5.3; (4) if ERF becomes bankrupt;
has a receiver or administrator appointed to it; compounds with its creditors or
where proceedings are commenced for it to be wound up or to carry on its
business; or (5) ERF failure to provide support under Section 5.4 after notice
from Schlumberger and ninety (90) day opportunity to cure such
failure.

     

    
      
         

      

      
        Page 8 of
18

        
          

        

      

      
         

        
          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    (ii) With
respect to Schlumberger’s obligations, “material breach” will include (but not
limited to): (1) failure to pay amounts due; (2) breach of the license rights
and other restrictions imposed by this Agreement; (3) Schlumberger’s failure to
make reasonable efforts to sell the ERF Technology in the Oil and Gas Sector; or
(4) Schlumberger becomes bankrupt; has a receiver or administrator appointed to
it; compounds with its creditors or where proceedings are commenced for it to be
wound up or to carry on its business. The Parties agree that ERF will have the
right to terminate the Agreement under Sections 10.3(a)(ii)(1) and (2) by giving
notice and a ninety (90) day opportunity to cure any breach.  The
Parties agree that ERF will have the right to terminate the Agreement under
Section 10.3.(a)(ii)(3) on the fourth (4th) anniversary of the Effective
Date.

     

    (b)           ERF
breaches the representation contained in Section 5.1 or fails or refuses to take
appropriate and reasonable steps to seek to enforce its rights pursuant to the
referenced non-compete provisions arising from an employee’s post-employment
activities, which will be grounds for immediate termination of this Agreement
(“Terminable Breach”).  Schlumberger will have the right to seek all
damages to which it is entitled.

     

    10.4           Termination
or expiration of this Agreement will not affect any End User agreement and will
continue for the duration of the then current term.  For the avoidance
of doubt, ERF will continue to provide third tier support to Schlumberger for
their End Users during the remainder of such term.  Schlumberger will
take all actions required to ensure that such End User agreements terminate as
of the end of such term.

     

    10.5           Schlumberger’s
exclusivity shall remain in force and effect regardless of whether ERF is
acquired or merged with any third party, including but not limited to any third
party operating in the Oil & Gas Sector. Such change in ownership or control
shall not be grounds for termination by ERF; however, Schlumberger will have the
right to terminate the Agreement based on the acquisition of ERF by a
Schlumberger competitor.  Schlumberger shall be advised of any firm
offer to purchase ERF once it is made publicly available and before a
recommendation of acceptance of the offer by the ERF Board of
Directors.  Schlumberger shall be given fair and reasonable time (60
Days) to prepare a counter offer before the board accepts such an
offer.   .

     

    11.           GENERAL
TERMS

     

    11.1           Headings and
Captions. Headings and captions are for convenience of reference only and
do not alter the meaning or interpretation of this Agreement.

     

    11.2           Relationship of the
Parties. The Agreement shall not be construed as creating a
joint-venture, partnership or the like. Neither Party shall act or be deemed to
act on behalf of the other Party, or have the right to bind the other Party.
Each Party shall remain an independent entity, and act as an independent
contractor. Each Party shall at all times during the performance of the
Agreement be responsible for the payment of wages and benefits to, and as
applicable, tax withholding from, its own employees. Without limiting the
generality of the foregoing, the employees and subcontractors engaged by ERF for
the performance of the Agreement, or an Order or Statement pursuant to the
Agreement, shall be the direct employees and subcontractors of ERF, and ERF
shall remain solely responsible for all matters related to compliance with all
relevant  federal, provincial, state and local employment
laws.  This includes, but is not limited to the right to work and all
visa and immigration laws  that pertain to the employees and
subcontractors of ERF.

     

    11.3           No Assignment.
Neither Party will assign any of its rights or delegate any of its obligations
under this Agreement without the prior written consent of the other Party,
provided that such consent will not be unreasonably withheld, except that either
Party may assign this Agreement to its respective Affiliate without prior
consent of the other Party.  The provisions of this Agreement will be
binding upon and inure to the benefit of the Parties, their successors, and
permitted assigns.

     

    
      
         

      

      
        Page 9 of
18

        
          

        

      

      
         

        
          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    11.4           Notices.  Every
notice between the Parties relating to the performance or administration of this
Agreement will be made in writing and if to Schlumberger, to Schlumberger’s
authorized representative or, if to ERF, to ERF authorized
representative.  All notices required or permitted under this
Agreement will be deemed received when delivered either: (i) two (2) calendar
days after mailing by certified mail, return receipt requested and postage
prepaid; or (ii) one (1) working day after deposit for next day delivery with a
commercial overnight carrier provided the carrier obtains a written verification
of receipt from the receiving Party.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                If
      to ERF:

                              	
                                If
      to Schlumberger:

                              
	 	 
	
                                ERF
      Wireless, Inc.

                                2911
      South Shore Blvd., Suite 100

                                League
      City, Texas 77573

                                Attn:  John
      Nagel

                              	
                                Schlumberger
      Information Solutions

                                5599
      San Felipe, Suite 100

                                Houston,
      Texas 77056

                                Attn:  Mick
      Shaw

                              
	 	 
	
                                With
      a copy of legal notices to:

                              	 
      
	 	 
	
                                ERF
      Wireless Inc.

                                2911
      South Shore Blvd., Suite 100 League City, Texas 77573

                                Attn:  Dean
      Cubley

                              	
                                Schlumberger
      Information Solutions

                                5599
      San Felipe, Suite 100

                                Houston,
      TX 77056

                                Attn:  Maidie
      Ryan

                              

                      

                    

                  

                

              

            

          

        

      

    

    

     

    11.5           Governing Law & Dispute
Resolution.

     

    (a)           Governing Law. This
Agreement shall be governed and interpreted by, and construed in accordance with
the laws of the Province of Alberta.

     

    (b)           Mediation. The
parties agree that the Schlumberger primary contact and the ERF primary contact
identified in Section 5.8 will attempt in good faith to resolve all disputes
(other than those arising out of a breach of a Party’s obligations under Article
8). In the event that the Schlumberger senior corporate executive and the ERF
senior corporate executive are unable to resolve the dispute within thirty (30)
days, the dispute will be resolved through mediation by written notice of a
Party to the other Party and shall be mediated pursuant to the National
Mediation Rules of the ADR Institute of Canada, Inc. (“Meditation Rules”),
expect as otherwise expressly provided in this Section 11.5. In the mediation
process, the Parties will try to resolve their differences voluntarily with the
aid of an impartial mediator, who will attempt to facilitate negotiations. The
mediator will be selected in accordance with the Mediation Rules. The mediation
will be treated as a settlement discussion and therefore will be confidential.
The mediator may not testify for any Party in any later proceeding relating to
the dispute. No recording or transcript shall be made of the mediation
proceedings. Each Party will bear its own costs in the mediation. The fees and
expenses of the mediator will be shared equally by the Parties. If a dispute is
not resolved within forty-five (45) days after the written notice beginning the
mediation process (or a longer period, if necessitated by the time periods in
the Mediation Rules or the Parties agree to extend the mediation) the mediation
shall terminate. Despite this agreement to mediate, a Party may apply to a court
of competent jurisdiction or other competent authority for interim measures of
protection at any time.

     

    (c)           Arbitration. After
the mediation has been terminated, the dispute shall be arbitrated and finally
resolved pursuant to the National Arbitration Rules of the ADR Institute of
Canada, Inc. before a panel of three arbitrators. The decision of the
arbitrators shall be final and binding. Each Party shall bear its own costs
related to the arbitration but shall share equally in the fees and expenses of
the arbitrators. Any arbitration award may include costs against either Party,
but under no circumstances are the arbitrator(s) authorized or empowered to
award special, punitive or multiple damages against either Party.  Any
judgment upon the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction therein.

     

    
      
         

      

      
        Page 10
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    (d)           Place and Language.
The place of mediation and arbitration shall be Calgary, Alberta. The language
for mediation and arbitration shall be English.

     

    11.6          Severability.  In
the event that any of the provisions of this Agreement will be held by a court
or other tribunal of competent jurisdiction to be invalid or unenforceable, the
remaining portions of this Agreement will remain in full force and effect and
will be construed so as to best effectuate the intention of the Parties in
executing it.  The Parties agree to renegotiate in good faith any
provision of the agreement that is held to be unenforceable or
invalid.

     

    11.7          No Waiver. Failure by
either Party to enforce any provision of this Agreement will not be deemed a
waiver of the right to thereafter enforce that or any other provision of this
Agreement.

     

    11.8          Survival. Any
obligations which either expressly or by their nature are to continue after the
termination or expiration of this Agreement, including without limitation the
provisions of Section 2.4 and Articles 3, 6, 7, 8, 9 and 10, will survive and
remain in effect.

     

    11.9          Modification. Any
modifications of this Agreement must be in writing and signed by both Parties
hereto.

     

    11.10        Force Majeure.
Neither Party will be liable for any failure or delay in the performance of an
obligation hereunder on account of strikes, riots, fires, explosions, acts of
God, war, governmental action, or any other cause which is beyond the reasonable
control of such Party.

     

    11.11        Compliance of Laws.
Each Party warrants that no applicable laws or regulations shall be violated in
the manufacture or sale of the Products contemplated hereunder, and shall comply
with, and adhere to, all applicable laws and regulations which may apply to ERF
in connection with this Agreement, or an Order or Statement pursuant to the
Agreement.

     

    Each
Party hereby agrees to comply with all applicable U.S. and Canadian export
control and economic sanctions laws, regulations, and orders, including without
limitation, as applicable, those regulations maintained by the U.S. Treasury
Department’s Office of Foreign Assets Control (“OFAC”), the U.S. Commerce
Department’s Bureau of Industry and Security (“BIS”), and the U.S. State
Department’s Directorate of Defense Trade Controls (“DDTC”). Specifically, ERF
covenants that it shall not --directly or indirectly -- sell, provide, export,
reexport, transfer, divert, loan, lease, consign, or otherwise release or
dispose of any equipment, product, commodities, services, software, source code,
or technology (including the “Direct Product” of such technology) (collectively
“the Products”) received under this Agreement to or via any individual, entity,
or destination, or for any use prohibited by the laws or regulations of the
United States or any other applicable jurisdiction, including without
limitation, OFAC-promulgated regulations, the U.S. Export Administration
Regulations, and the U.S. International Traffic in Arms Regulations, without
having obtained prior authorization from the competent governmental authorities
as required by all such laws and regulations. Notwithstanding any other
provision of this Agreement, neither ERF nor Schlumberger shall take or be
required to take or refrain from taking any action prohibited or penalized under
the laws of the United States or any applicable foreign jurisdiction, including
without limitation U.S. anti-boycott laws administered by BIS and the U.S.
Treasury Department’s Internal Revenue Service.

     

    Breach of
this provision shall constitute cause for immediate termination of this
Agreement. Each Party shall defend, indemnify, and hold the other Party harmless
against any Claims in respect thereof.

     

    11.12       
Interpretation.  This
Agreement has been negotiated in good faith and at arms-length between Parties
who are experienced and knowledgeable in the matter contained herein, and the
Parties hereby agree that any statute, law or common law principles or other
authority that would require interpretation of any ambiguities in this Agreement
against the Party who has drafted it is not applicable and is hereby
waived.

     

    11.13        Counterparts. This
Agreement may be signed in one or more counterparts (including faxed copies),
each of which will be deemed one and the same original. Reproductions of this
executed original (with reproduced signatures) will be deemed to be original
counterparts of this Agreement.

     

    
      
         

      

      
        Page 11
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    11.14           
Entire
Agreement. This Agreement constitutes the entire agreement between the
Parties with respect to the subject matter hereof, and any and all written or
oral Agreements heretofore existing between the Parties are expressly
canceled.  ERF acknowledges that it is not entering this Agreement on
the basis of any representations not expressly contained herein.

     

    IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives.

     

    

     

    
      
        	
                Schlumberger
      Technology Corporation

                 

                Signed    __________________________

                 

                Name  
         __________________________

                 

                Title    
         __________________________

                 

                Dated  
        __________________________

                 

              	
                ERF
      Wireless, Inc.

                 

                Signed    __________________________

                 

                Name  
         __________________________

                 

                Title    
         __________________________

                 

                Dated  
        __________________________

                 

              

      

    

    

     

    

    

    

    

     

    
      
         

      

      
        Page 12
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    Schedule
A – Services

     

    Services
shall include the delivery of communications for the transport of data packets
transported utilizing IP protocol to the Internet cloud or other point of
termination within the ERF Existing Market Territory (EMT) or any Expanded EMT
added thereto.  All fees will be calculated on a 30-day use period.
Pricing dictated is in USD (United States Dollars).

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              TYPE

                                            	
                                               End-Point

                                            	
                                               Contract
      Term

                                            	
                                              Billing
      Term

                                            	
                                              Price
      per Unit (1.5 Mb/s)

                                            
	
                                              Static

                                            	
                                              Field
      Office

                                            	
                                              365
      Days within 450

                                            	
                                              Monthly

                                            	
                                              $(***)**

                                            
	
                                              Nomadic

                                            	
                                              Rig
      Site

                                            	
                                              365
      Days within 450

                                            	
                                              Monthly

                                            	
                                              $***

                                            
	
                                              Nomadic

                                            	
                                              Rig
      Site

                                            	
                                              540
      Days within 675

                                            	
                                              Monthly

                                            	
                                              $***

                                            
	
                                              Nomadic

                                            	
                                              Rig
      Site

                                            	
                                              730
      Days within 900

                                            	
                                              Monthly

                                            	
                                              $***

                                            
	
                                              Nomadic

                                            	
                                              Rig
      Site

                                            	
                                              1095
      Days within 1350

                                            	
                                              Monthly

                                            	
                                              $***

                                            
	
                                              *Mobile

                                            	
                                              Vehicle

                                            	
                                              365
      Days within 450

                                            	
                                              Monthly

                                            	
                                              $***

                                            
	
                                              *Mobile

                                            	
                                              Vehicle
      Retro-fit

                                            	
                                              NA

                                            	
                                              NA

                                            	
                                              $***/Hour

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    TABLE
A1

     

    *Based on
an assumption of 750 Mobile Vehicles being retrofit with telescoping towers and
multiple electronics (CPE) compatible with the different frequency bands of the
ERF network. Pricing of both retrofit and monthly service is based on 1077 units
over no more than 36 months time.  Pricing of the Retro-Fit service
may be adjusted assuming the timing and size of the vehicle retrofit project.
The projected revenue numbers were based on an average capital expenditure of
$***  per Retro-Fit.

     

    **Assumes
extended contract terms (greater than 2 years), line of site in existing
footprint, fixed location, for Schlumberger offices and any O&G related
customer other than those listed specifically in Schedule C.

     

    These
terms are based on a standard equipped MBT with a 50 foot telescoping tower,
volume sales of *** MTBS by July 09 and a default service of
1.5Mbps.  Any additions or modifications to the standard MBT will vary
the “Price per Unit/Month” and will be reviewed at the monthly general
meeting.

     

    Installation and
De-Installation These fees include the transport, set-up, alignment and
tear-down of apparatus that is required to deliver the Services as prescribed by
this agreement.  The following fees are inclusive of travel time, wait
time and work time. $*** per hour with a 3 hour minimum and 6 hour
maximum.

     

    A
surcharge of cost plus 10 percent shall be levied on associated with logistics,
installation and de-installation. Purchases of services detailed in TABLE A1 are
not subject to this surcharge.

     

    SCHEDULE
B - Minimum Purchase Commitments to Maintain Exclusivity

     

    As of
start of contract & mechanism for adjustment

     

    
      	
               
      

            	
              1.

            	
              Initial
      Minimum Rental / Purchase -
Hardware

            

    

     

    
      
         

      

      
        Page 13
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Deployment
      Type

                                  	
                                    Total
      Market

                                  	
                                    July
      09

                                  	
                                    Yr.
      2

                                  	
                                    Yr.
      3

                                  
	
                                    Static

                                  	
                                    ***

                                  	
                                    ***

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note 2

                                  
	
                                    Nomadic

                                  	
                                    1490

                                  	
                                    ***

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note 2

                                  
	
                                    Mobile

                                  	
                                    See
      Note 1

                                  	
                                    See
      Note 1

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note
2

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    TABLE
B1

     

    
      	
               
      

            	
              2.

            	
              Initial
      Minimum Rental / Purchase -
Circuits

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Circuit
      Type

                                  	
                                    July
      09

                                  	
                                    Yr.
      2

                                  	
                                    Yr.
      3

                                  
	
                                    Static

                                  	
                                    ***

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note 2

                                  
	
                                    Nomadic

                                  	
                                    ***

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note 2

                                  
	
                                    Mobile

                                  	
                                    See
      Note 1

                                  	
                                    See
      Note 2

                                  	
                                    See
      Note
2

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    TABLE
B2

     

    Note 1:  Mobile
refers to the following deployment types:

     

    
      	
               
      

            	
              A:

            	
              Vehicular
      Based Deployments, whereby the SS (Subscriber Station) or CPE (Client
      Premise Equipment) is directly mounted on or deployed with a vehicle.
      Individual vehicles deployed in this manner shall be determined to
      constitute one hardware deployment and shall consist of one circuit.
      (Example: Frac Truck with telescoping tower mounted to
      vehicle).

            

    

     

    
      	
               
      

            	
              B:

            	
              Rapid
      Deploy Infrastructures, whereby a base-station utilizing either licensed
      or license exempt communications methodologies is deployed in a customer
      focused and targeted location. (Example: Drilling Rig with Mobile
      Bandwidth Tower – MBT).

            

    

     

    
      	
               
      

            	
              i)

            	
              The
      primary backhaul will utilize the Schlumberger Global VSAT network with
      secondary provision for connection into ERF provisioned terrestrial
      communications where available.

            

    

     

    
      	
               
      

            	
              ii)

            	
              Schlumberger
      shall identify and contract O&G customers for connection to the
      infrastructure. Schlumberger shall be responsible for the cost, deployment
      and maintenance of its VSAT technologies and ERF shall assume
      responsibility for the deployment of the associated wireless mediums as
      described throughout this document.

            

    

     

    Schlumberger
and ERF shall collaborate on the design of the deployment techniques described
in Note 1, items A and B. Both ERF and Schlumberger shall be responsible for the
completion of the design and costing of such deployments along with completion
of associated pilot phases by a date no later than 31 March 2009.  On
this date, Schedule B shall be updated to include addressable market and minimum
rental / purchase figures for both MBT, hardware and circuit provision in Year
1.

     

    Note 2: Business Expansion and
Regional Coverage:

     

    Through
demographic analysis Schlumberger has determined that *** of 1490 active
drilling rigs are within range of ERF assets as of 14 November
2008.

     

    Schlumberger
demographic data shall be provisioned to ERF on a monthly basis and shall
contain data consisting of static and drilling rig locations by State, County
with associated latitude and longitude coordinates.  This data shall
be provisioned to ERF at no cost in both .csv and .kmz format.  This
agreement mandates that ERF shall treat Schlumberger data as
confidential.

     

    
      
         

      

      
        Page 14
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          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    Schlumberger
and ERF Wireless representatives shall hold a monthly strategy meeting in which
customer uptake, market penetration, technical development, rig locations,
customer demographics and new ERF coverage locations will be discussed to
specifically address the O&G industries regional potential market and
technical requirements.

     

    Schlumberger
agrees that they will modify Schedule B in the Contract to guarantee a minimum
of 50% circuit rental to the active drilling rig locations in the new ERF
coverage areas and 15 % of the static locations within ninety days (90) of being
notified by ERF that it now owns, has leased, contracted for, or otherwise
obtained the rights to the new wireless coverage needed to provide the Services
specific to Schlumberger defined regions.

     

    Where ERF
has reasonable quantification of an addressable O&G customer base within
Canada, a joint business justification shall be undertaken in which ERF will
take all reasonable measures to specifically map the regions which can be
covered by the technology.  Schlumberger shall make all reasonable
efforts to identify the applicable customer base within the coverage region
(those pre-existing customers detailed in Schedule C shall be declared valid ERF
customers but exempt from inclusion in Schedule B) and present a complete
addressable business demographic analysis.

     

    Where
both parties agree the addressable business justifies such deployments, ERF
wireless shall declare an applicable Service Inception Date and Schedule B shall
be adjusted to reflect the minimum addressable business figures
accordingly.  Schlumberger shall ensure that 50% of the identified
addressable business for the newly deployed region is captured for active
drilling locations and 15% of static locations within ninety (90) days of the
service inception date.

     

    Schlumberger
shall in no way, inhibit ERF wireless coverage expansion.  For regions
where services are deployed for non O&G specific service Schlumberger shall
complete a demographics analysis, declare the addressable business under the new
coverage area and adjust Schedule B accordingly.  For non O&G
specific regions, Schlumberger shall guarantee a minimum of 25% uptake of its
identified customer base in the applicable region within ninety (90)
days.

     

    Where ERF
and Schlumberger are unable to reach an agreement on the justification of new
deployment regions that are designated by either party as capable of
specifically addressing an O&G customer base, Schlumberger must produce
documented evidence to indicate reasonable doubt in its justification. Such
regions shall be declared non O&G specific and subject to the caveats
therein.

     

    On 30
June 2009, Schlumberger and ERF Wireless shall hold a formal business review in
which upon Schedule B shall be set with adjusted minimum Rental and Purchase
figures for both MBT’s, Hardware and Circuit sales for Year 1 through Year
3.  ERF and Schlumberger agree to update the minimum Rental and
Purchase figures every six months following June of 2009 based on new coverage
areas owned, leased, contracted for, or otherwise obtained by ERF with the
rights to provide Services to Schlumberger.

     

    
      
         

      

      
        Page 15
of 18

        
          

        

      

      
         

        
          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    SCHEDULE
C – ERF Pre-Existing Customers in the Oil and Gas Sector

    

    1.
***

     

    2.
***

     

    3.
***  

     

    4.
***  

     

    5.
***

     

    6.
***

     

    7.
***  

     

    8.
***  

     

    9.
***  

     

    10.
***  

     

    11.
***

     

    
      
         

      

      
        Page 16
of 18

        
          

        

      

      
         

        
          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    Schedule
D – ERF Declared O&G Related Intellectual Property

     

    
      	
              1. 

            	
              Telescoping
      Tower & trailer used for Radio backhaul and access
    points

            

    

     

    
      	
              2. 

            	
              CryptoVue

            

    

     

    
      	
              3. 

            	
              CryptoVue
      Lite

            

    

     

    
      	
              4. 

            	
              High
      Power Paging Transmitters

            

    

     

    

     

    
      
         

      

      
        Page 17
of 18

        
          

        

      

      
         

        
          Exhibit
10.2
                                    
Exclusive Canadian Reseller Agreement 

          

          

        

      

    

    Schedule
E – Legally Exempt Regions

     

    

     

     

     

     

     

     

     

     

     

     

     

     

    Page 18 of 18exv10w9

Exhibit 10.9

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is made and entered into by and between Jill D.
Smith (the “Executive”) and DigitalGlobe, Inc., a Delaware corporation (the “Company”), effective
as of September 1, 2008 (the “Effective Date”).

RECITALS

     A. Executive is a member of the Company’s executive and management team.

     B. The Company’s Board of Directors (the “Board,” which term also includes any committee of
the Board when used herein) believes that it is in the best interests of the Company and its
stockholders to enter into an Employment Agreement with Executive to set forth the terms and
conditions of Executive’s employment and to provide for severance benefits in the event Executive’s
employment is terminated without Cause (as defined below) or Executive resigns her employment for
Good Reason (as defined below) in order to avoid distraction of Executive due to uncertainty about
her future role with the Company.

     C. To accomplish the foregoing objectives, the Board has directed the Company, upon execution
of this Agreement by Executive, to agree to the terms provided in this Agreement.

     D. Certain capitalized terms used in the Agreement are defined in Section 5 below.

     In consideration of the mutual covenants herein contained, and in consideration of the
continuing employment of Executive by the Company, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Executive and Company agree as
follows:

          1. Employment Term. Unless otherwise terminated in accordance with Section 4, below,
Executive’s employment under this Agreement shall commence on the Effective Date and continue for a
period of 36 months (the “Initial Term”). Thereafter, the Initial Term shall be automatically
extended on an annual basis for an additional one-year period, unless the Company or Executive
provides the other party hereto with not less than 180 days’ prior written notice that the term
will not be so extended. The Initial Term, as it may be extended, is referred to herein as the
“Term.” Notwithstanding the foregoing, the then-current Term is subject to termination as provided
in Section 4 hereof.

          2. Duties.

               (a) During the Term, Executive will serve as the President and Chief Executive Officer of the
Company or in such other capacity as may be mutually agreeable from time to time by the Board and
Executive, and will have such responsibilities, duties and authority as are customary for someone
of that position.

-1-

 

               (b) Executive shall also perform such other duties during the Term as are reasonably assigned
to Executive by the Board and that are consistent with the position in which she is employed.

               (c) The Company will provide the Executive with appropriate office space, facilities and
support personnel.

               (d) During the Term, Executive shall use her good faith best efforts to perform the duties
properly assigned to her hereunder, shall devote substantially all of her business time, attention
and effort to the affairs of the Company and shall use her reasonable best efforts to promote the
interests of the Company. Executive may serve on civic or charitable boards or committees and
manage personal investments; provided that such activities do not individually or in the aggregate
significantly interfere with the performance of her duties under this Agreement. If the Company
consents to such service, Executive may serve on a corporate board; provided that such service does
not individually, or together with other activities described in this Section 2, unreasonably
interfere with the performance of her duties under this Agreement.

          3. Compensation, Benefits and Perquisites.

               (a) Base Salary. Beginning as of the Effective Date, Executive will be paid a base
salary (the “Base Salary”) in respect of her services hereunder during the Term. The
initial Base Salary shall be at an annual rate of $480,000. The Base Salary will be paid in equal
periodic installments according to the Company’s customary payroll practices. During the Term, the
then applicable Base Salary shall be reviewed by the Board at least annually and may be increased,
but shall not be reduced at any time without Executive’s prior written consent. In addition, in
the first paycheck following the Effective Date, the Company shall pay Executive an additional lump
sum amount equal to the additional base salary that Executive would have received since April 14,
2008 if the base salary had been the Base Salary since such date.

               (b) Bonus. In addition to the Base Salary, Executive shall be entitled to receive an
annual bonus (the “Bonus”) (if earned) for each calendar year during the Term for which services
are performed under this Agreement. The performance criteria for any particular calendar year
shall be established by the Board no later than 90 days after the commencement of such calendar
year and prompt notice thereof provided to Executive. Executive’s Annual Bonus for a calendar year
shall equal 70% of her annualized Base Salary for that year if target levels of performance for
that year (as established by the Board when the performance criteria for that year are established)
are achieved, with greater or lesser amounts (including zero) paid for performance above and below
target (such greater and lesser amounts to be determined by a formula established by the Board for
that year when it established the targets and performance criteria for that year). Performance
criteria shall include such criteria as reasonably determined by the Board, which may (but need
not) include stock price, operating earnings, revenue, new product growth, operational
improvements, individual goals, and/or such other metrics as the Board shall determine. Any Bonus
for a calendar year shall be subject to Executive’s continued employment with the
Company through the end of the calendar year in which it is earned and shall be paid after

-2-

 

the conclusion of the calendar year in accordance with the Company’s regular bonus payment policies
in the year following the year with respect to which the Bonus relates, and in any case not later
than two and one half (2 1/2) months following the end of the year with respect to which a Bonus is
earned. The Board shall review the level of the target Bonus annually based on comparisons with
bonus opportunities for chief executive officers of comparable companies and Executive’s individual
performance and, upon notice to Executive, may adjust the target Bonus opportunity upward or
downward as it deems appropriate to reflect such review.

               (c) Stock Option Grant. Within sixty (60) days of the Effective Date (or, if earlier,
upon the occurrence of an Initial Public Offering), Executive shall be granted 750,000 nonqualified
stock options to purchase the Company’s common stock pursuant to the Company’s equity incentive
plan and subject to the terms of such plan. The exercise price of the options shall be the fair
market value (as determined pursuant to the applicable plan) of the Company’s common stock on the
date of grant. The options granted under this Section 3(c) shall vest and become exercisable as
follows, subject in each case to Executive’s continued employment with the Company through the
applicable vesting date: 200,000 options on the Effective Date ; 200,000 on the first anniversary
of the Effective Date; 200,000 options on the second anniversary of the Effective Date; and 150,000
options on the third anniversary of the Effective Date; provided, however, that in the event of a
Change in Control while Executive is an employee of the Company, all such options shall fully vest
and become exercisable and shall remain outstanding for the period specified in the applicable
award agreement.

               (d) Performance Restricted Stock Grant. Effective as of the Effective Date, the Board
shall cause the Company to grant to Executive 150,000 shares of restricted common stock of the
Company. Such shares shall vest annually in equal increments on each of March 31, 2009, 2010 and
2011, subject in each case to the achievement of performance goals determined by the Board and
included in the Company’s annual success sharing bonus plan (or any successor plan); provided,
however, that upon the occurrence of a Change in Control while Executive is an employee of the
Company, all of such unvested restricted shares shall vest in accordance with the provisions of the
Company’s 2007 Employee Stock Option Plan, or such other approved equity award plan pursuant to
which the shares may be issued. If elected by Executive, the minimum legally-required tax
withholding obligations upon the vesting of any shares of restricted stock granted under this
Section 3(d) may be satisfied through the Company withholding the number of shares with a fair
market value equal to the amount of such tax withholdings, and the remaining number of vested
shares shall be delivered to Executive in such event; provided, however that for all shares that
vest following the expiration of any Lock Up Agreement required to be executed by Executive as part
of the Company’s Initial Public Offering, the Board shall have discretion to allow the withholding
of shares or to require the Executive to otherwise pay the required taxes in cash.

               (e) Annual Long-Term Incentives. Executive shall be eligible for annual stock option
and/or other equity incentive grants based on the achievement of such
individual and Company-related performance criteria as determined by the Board.

-3-

 

Performance criteria shall include such criteria as determined by the Board, which may (but need not) include
stock price, operating earnings, revenue, new product growth, operational improvements, individual
goals, and/or such other metrics as the Board shall determine. The target annual incentive grant
shall be equity awards with a value (as determined by the Board in good faith) of $1,000,000 with
greater amounts up to $1,500,000 or lesser amounts (including zero), awarded for performance above
or below target (such greater or lesser amounts to be determined by a formula established by the
Board for that year when it establishes targets and performance criteria for that year). The
vesting and other terms of such equity incentive grants shall be determined by the Board at the
time of grant; provided, however, that upon the occurrence of a Change in Control while Executive
is an employee of the Company, all of such outstanding equity awards shall fully vest and, to the
extent applicable, shall (i) become exercisable and (ii) remain outstanding for the period
specified in the applicable award agreement.

               (f) Liquidity Share Incentive. Upon the first to occur of (i) a Change in Control
pursuant to which shares of the Company’s common stock as a class are exchanged for or converted
into consideration, and more than 50% in value of such consideration to be paid or issued with
respect to each such share of common stock is in the form of either cash, cash equivalents or
Liquid Securities, or (ii) an Initial Public Offering, in each case while Executive is an employee
of the Company or within one (1) year of Executive’s termination of employment, Executive shall
receive the following number of shares of the Company’s common stock:

	 	 	 	 	 
	Liquidity Stock Price (unadjusted for any stock	 	 
	split or reverse stock split that is implemented	 	 
	after the Effective Date)	 	Shares of Common Stock
	Less than $8 per share
	 	 	200,000	 
	At least $8 per share but less than $10 per share
	 	 	400,000	 
	At least $10 per share but less than $12 per share
	 	 	600,000	 

               If elected by Executive, the minimum legally-required tax withholding obligations upon the
delivery of any shares of stock granted under this Section 3(f) may be satisfied through the
Company withholding the number of shares with a fair market value equal to the amount of such tax
withholdings, and the remaining number of shares shall be delivered to Executive in such event.

               (g) Benefits. While Executive remains in the employ of the Company, Executive shall
be entitled to participate in and shall receive rights and benefits
under those employee benefits plans that the Company provides for its executive employees
generally (provided that in no event shall this Agreement affect the Company’s right to

-4-

 

amend or terminate any benefit plan). With regard to Paid Time Off (PTO), Executive shall be entitled to the
rights and benefits under the Company’s Paid Time Off (PTO) Policy, but in any event, not less than
25 days per calendar year. PTO time is considered earned wages.

               (h) Expenses. All reasonable and necessary expenses incurred by Executive in the
course of the performance of Executive’s duties to the Company shall be reimbursed in accordance
with the Company’s then current travel and expense policies

          4. Termination of Employment.

               (a) For Cause, Disability, Death or Voluntary Termination; Termination at the End of the
Term. Executive may terminate her employment at any time, for any reason, upon 30 days prior
notice to Company. If the Executive’s employment is terminated during the Term by the Company for
Cause, if Executive voluntarily terminates employment with the Company other than for Good Reason,
if Executive’s employment terminates due to death or Disability, or if Executive voluntarily does
not renew her employment at the end of the Term, the Company shall pay to the Executive (or, if
applicable, her estate) in a lump sum (i) any unpaid portion of Executive’s accrued Base Salary and
accrued Paid Time Off; (ii) any amounts payable to Executive pursuant to the terms of any pension
or welfare benefit plan, and (iii) any expense reimbursements payable pursuant to the Company’s
reimbursement policy (the “Accrued Obligations”).

               (b) Termination Without Cause or Resignation For Good Reason Prior to a Change in
Control. Company may terminate Executive’s employment at any time without Cause upon 30 days
prior written notice to Executive. Upon Executive’s involuntary termination of employment by the
Company without Cause prior to a Change in Control, or Executive’s resignation for Good Reason
prior to a Change in Control, the Term shall end and, in addition to the amounts specified in
Section 4(a), Executive shall be entitled to receive the Accrued Obligations and a lump sum
severance payment in an amount equal to two (2) times the sum of (i) Executive’s then in effect
Base Salary, plus (ii) Executive’s Bonus Amount.

               (c) Termination Without Cause or Resignation For Good Reason Upon or Following a Change in
Control. Upon Executive’s involuntary termination of employment by the Company without Cause
upon or within 36 months following a Change in Control or Executive’s Resignation for Good Reason
upon or within 36 months following a Change in Control, the Term shall end and, in addition to the
amounts specified in Section 4(a), Executive shall be entitled to receive the Accrued Obligations
and a lump sum severance payment in an amount equal to two and one-half (2-1/2) times the sum of
(i) Executive’s then in effect Base Salary, plus (ii) Executive’s Bonus Amount.

               (d) Welfare Benefits. Executive’s eligibility to participate in the Company’s
Medical, Dental, and Vision benefit plans and other insured Other Welfare Benefits (such as life,
accident, and disability coverage) will terminate upon Executive’s
termination of employment according to the terms of the relevant benefit plan. Executive may
elect to participate in Medical, Dental, and Vision benefits provided through an outside vendor, in
conjunction with continued insurance coverage available to Executive under the

-5-

 

provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) at COBRA rates for up to eighteen (18)
months. In the event Executive is entitled to severance payment benefits pursuant to paragraph
4(b) or 4(c) above, the Company shall continue to provide all welfare benefits provided to
Executive immediately before such termination (including, without limitation, health and life
insurance, but excluding disability insurance) for a period following Executive’s termination of
employment equal to the period with respect to which Executive’s Base Salary is paid as severance,
at the Company’s sole cost; provided, however, that to the extent Executive becomes re-employed and
eligible for benefits with another employer prior to the expiration of such period, Executive will
elect such benefits and promptly notify the Company so that the Company will have no further
obligation to provide benefits under this paragraph (d) unless, and then only to the extent that,
the benefits that are being provided by the Company are more favorable than such benefits provided
by the other company.

               (e) Release of Claims. The payment and provision of any and all severance benefits
pursuant to paragraphs 4(b), (c) and (d) above shall be conditioned upon and subject to execution
of a Release of Claims by Executive at the time of termination of employment in the form attached
to this Agreement as Exhibit A. All lump-sum payments due pursuant to this Agreement shall be
payable at the time specified in such Release of Claims. The payment of the Accrued Obligations
not subject to Executive’s execution of a Release of Claims.

          5. Definition of Terms. The following terms referred to in this Agreement shall have
the following meanings:

               (a) Bonus Amount. “Bonus Amount” shall mean the average of actual annual bonuses
payable under Section 3(b) to Executive with respect to the two fiscal years immediately preceding
the year which the Executive’s employment terminates; provided, however, in the event Section 4(c)
applies, the Bonus Amount shall be the Executive’s target Bonus under Section 3(b) for the year in
which the Change in Control occurs.

               (b) Change in Control. “Change in Control” shall mean the occurrence of any of the
following events:

                    (i) Any person (other than persons who are employees of the Company at any time more than one
year before a transaction) becomes the beneficial owner, directly or indirectly, of securities of
the Company representing 50% or more of the combined voting power of the Company’s then outstanding
securities. In applying the preceding sentence, (A) securities acquired directly from the Company
or its affiliates by or for the person shall not be taken into account, and (B) an agreement to
vote securities shall be disregarded unless its ultimate purpose is to cause what would otherwise
be Change in Control, as reasonably determined by the Board;

                    (ii) The Company consummates a merger, or consolidation of the Company with any other
corporation unless: (a) the voting securities of the Company outstanding immediately before the
merger or consolidation would continue to represent

-6-

 

(either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least 50% of the combined voting power
of the voting securities of the Company or such surviving entity outstanding immediately after such
merger or consolidation; and (b) no person (other than persons who are employees at any time more
than one year before a transaction) becomes the beneficial owner, directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities;

                    (iii) The stockholders of the Company approve an agreement for the sale or disposition by the
Company of all, or substantially all, of the Company’s assets; or

                    (iv) The stockholders of the Company approve a plan or proposal for liquidation or dissolution
of the Company.

Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred by virtue
of the consummation of any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Company immediately prior to such transaction
or series of transactions continue to have substantially the same proportionate ownership in an
entity which owns all or substantially all of the assets of the Company immediately following such
transaction or series of transactions.

               (c) Cause. “Cause” shall mean:

                    (i) conviction of a felony or a crime involving fraud or moral turpitude; or

                    (ii) theft, material act of dishonesty or fraud, intentional falsification of any employment
or Company records, or commission of any criminal act which impairs Executive’s ability to perform
appropriate employment duties for the Company; or

                    (iii) intentional or reckless conduct or gross negligence materially harmful to the Company or
the successor to the Company after a Change in Control , including violation of a non-competition
or confidentiality agreement; or

                    (iv) willful failure to follow lawful instructions of the person or body to which Executive
reports; or

                    (v) gross negligence or willful misconduct in the performance of Executive’s assigned duties.
Cause shall not include mere unsatisfactory performance in the achievement of Executive’s
job objectives.

               (d) Disability. “Disability” means a physical or mental illness, injury, or condition
that prevents Executive from performing substantially all of Executive’s duties associated with
Executive’s position or title with the Company for at least 90 days in a 12-month period.

-7-

 

               (e) Initial Public Offering “Initial Public Offering” means the first underwritten
public offering of the Company’s common stock.

               (f) Liquid Securities. “Liquid Securities” means securities (i) that are listed on a
securities exchange or designated as a national market security on an interdealer quotation system,
such as the NASDAQ National Market List, or (ii) that are eligible to be so listed or designated
and for which there is a commitment or plan at closing of the Change in Control or Initial Public
Offering for such listing or designation to occur within one year after such closing.

               (g) Liquidity Stock Price. “Liquidity Stock Price” means the Per Share Price of
Common Stock (as defined in the Company’s Sale Bonus Plan) in connection with the applicable Change
in Control or Initial Public Offering (it being understood that in the event of an Initial Public
Offering, the Liquidity Stock Price shall be the consideration per share paid for a share of
Company common stock in such Initial Public Offering). The Liquidity Stock Price shall be
equitably adjusted by the Board in the event of the occurrence of an event described in Section 8
of the Sale Bonus Plan.

               (h) Resignation for Good Reason. Resignation for “Good Reason” shall mean Executive’s
voluntary termination, upon thirty (30) days prior written notice to the Company, following the
occurrence of any of the following, provided, that the Company has not cured such event within such
thirty (30) days following the receipt of such notice:

                    (i) a material reduction or change in Executive’s title or job duties, responsibilities and
requirements inconsistent with Executive’s position with the Company and Executive’s prior duties,
responsibilities and requirements;

                    (ii) any reduction of Executive’s then in effect Base Salary or Executive’s target Bonus as
set forth in Section 3(b).

                    (iii) Executive’s refusal to relocate to a facility or location more than thirty (30) miles
from the Company’s current corporate headquarters; or

                    (iv) any material breach of this Agreement by Company.

          6. Golden Parachute Provisions. If Executive becomes entitled to the payments,
benefits and equity acceleration described in Sections 3 and 4 and such payments and benefits,
together with any other payments or transfers of property (collectively the “Severance Payments”),
constitute “parachute” payments under Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), then the Company shall pay an additional amount (the “Gross-Up Payment”) to
Executive. The Gross-Up Payment shall be equal to the amount necessary so that the net amount
retained by Executive, after subtracting the
parachute excise tax imposed by Section 4999 of the Code, as amended, or any successor statute
then in effect (the “Excise Tax”), and after also subtracting all federal, state or local income
tax, FICA tax and Excise Tax on the Gross-Up Payment, shall be equal to the net amount Executive
would have retained if no Excise Tax has been imposed and no Gross-Up Payment had been paid. The
amount of the Gross-Up Payment shall be determined in good

-8-

 

faith by nationally recognized
registered public accountants or tax counsel selected by the Company, who shall apply the following
assumptions: (i) Executive shall be treated as paying federal income taxes at the highest marginal
rate in the calendar year in which the Gross-Up Payment is made, and (ii) Executive shall be
treated as paying state and local income taxes at the highest marginal rate(s) in the calendar year
in which the Gross-Up Payment is made in the locality of Executive’s residence as of the effective
date of Executive’s termination or resignation, net of the maximum reduction in federal income
taxes that could be obtained from deducting those state and local taxes. The Gross-Up Payment
shall be made within five business days after the effective date of Executive’s termination or
resignation, provided that if the Gross-Up Payment cannot be determined within that time, the
Company shall pay Executive within that time an estimate, determined in good faith by the Company,
of the minimum amount of the Gross-Up Payment and shall pay the remainder (plus interest at the
rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount can be determined but in
no event later than the 30th day after the effective date of Executive’s termination or
resignation. If the estimated payment is more than the amount later determined to have been due,
the excess (plus interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be
repaid by Executive within five business days after written demand. In all events, any Gross-Up
Payment made pursuant to this Section 6 shall be paid to Executive no later than the end of the
calendar year following the year in which the related taxes are remitted to the applicable taxing
authority. If the actual Excise Tax imposed is less than the amount that was taken into account in
determining the amount of the Gross-Up Payment, Executive shall repay at the time that the amount
of the reduced Excise Tax is finally determined the portion of the Gross-Up Payment attributable to
that reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax, FICA tax
and federal, state and local income tax imposed on the portion of the Gross-Up Payment being repaid
by Executive, to the extent the repayment results in a reduction in or refund of Excise Tax, FICA
tax or federal, state or local income tax), plus interest on the amount of the repayment at the
rate provided in Section 1274(b)(2)(B) of the Code. If the actual Excise Tax imposed is more than
the amount that was taken into account in determining the amount of the Gross-Up Payment, the
Company shall make an additional Gross-Up Payment in respect of such excess (plus interest at the
rate provided in Section 1274(b)(2)(B) of the Code) at the time that the amount of the excess is
finally determined.

          7. Successors. Any successor to the Company (whether direct or indirect and whether
by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of
the Company’s business and/or assets shall assume the obligations under this Agreement and agree
expressly to perform the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a succession. The
terms of this Agreement and all of Executive’s rights hereunder shall inure to the benefit of, and
be enforceable by, Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

          8. Notice. Notices and all other communications contemplated by this Agreement shall
be in writing and shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and

-9-

 

postage prepaid. Mailed notices
to Executive shall be addressed to Executive at the home address which Executive most recently
communicated to the Company in writing. In the case of the Company, mailed notices shall be
addressed to its corporate headquarters, and all notices shall be directed to the attention of its
General Counsel.

          9. Proprietary Information, Invention and Non-Competition Agreement. Executive
acknowledges and agrees that the provision of benefits hereunder by the Company is subject to
Executive’s compliance with the Company’s Proprietary Information, Invention and Non-Competition
Agreement attached hereto as Exhibit B, and that no benefits shall be provided hereunder in the
event Executive violates such Agreement.

          10. Miscellaneous Provisions.

               (a) No Duty to Mitigate. Executive shall not be required to mitigate the amount of
any benefit contemplated by this Agreement (whether by seeking new employment or in any other
manner), nor, except as otherwise provided in this Agreement (including without limitation,
Sections 4(b) and (c)), shall any such benefit be reduced by any earnings or benefits that
Executive may receive from any other source.

               (b) Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by
an officer of the Company (other than Executive) expressly authorized by the Board of Directors to
sign said waiver. No waiver by either party of any breach of, or of compliance with, any condition
or provision of this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.

               (c) Entire Agreement. This Agreement constitutes the entire understanding between the
parties with respect to the matters addressed herein, superseding all negotiations, prior
discussions and agreements, written or oral, concerning Executive’s employment arrangements;
provided, however, that this Agreement shall not affect Executive’s rights under the DigitalGlobe,
Inc. Sale Bonus Plan, which such Plan shall remain in effect with respect to Executive pursuant to
its terms (as they may be modified from time-to-time). For the avoidance of doubt, Executive’s
Employment Agreement dated October 17, 2005 is hereby terminated and superseded in its entirety by
this Agreement and no benefits shall be provided thereunder.

               (d) Non-Duplication of Benefits. Any severance benefits payable under the terms of
this Agreement will be offset and not augmented by other compensation or benefits of the same or
similar type payable under any other severance-related arrangement.
It is intended that this Agreement not duplicate benefits Executive is entitled to under the
Company’s regular severance policy, any related policies, or any other contracts, agreements or
arrangements between Executive and the Company. Notwithstanding the foregoing, for the avoidance
of doubt, the benefits payable hereunder shall not be affected by any amounts payable to Executive
pursuant to the DigitalGlobe, Inc. Sale Bonus Plan.

-10-

 

               (e) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Colorado without reference to conflict of
laws provisions.

               (f) Severability. If any term or provision of this Agreement or the application
thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering unenforceable the remaining
terms and provisions of this Agreement or the application of such terms and provisions to
circumstances other than those as to which it is held invalid or unenforceable, and a suitable and
equitable term or provision shall be substituted therefor to carry out, insofar as may be valid and
enforceable, the intent and purpose of the invalid or unenforceable term or provision.

               (g) Jurisdiction, Venue and Waiver of Jury Trial. EXECUTIVE AND THE COMPANY AGREE
THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT, ITS VALIDITY OR
PERFORMANCE, AT THE SOLE OPTION OF EXECUTIVE AND THE COMPANY, THEIR SUCCESSORS AND ASSIGNS, SHALL
BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR HEIRS, SUCCESSORS AND ASSIGNS IN DENVER,
COLORADO. EXECUTIVE AND THE COMPANY EACH CONSENTS TO AND SUBMITS TO THE EXERCISE OF JURISDICTION
OVER HER OR ITS PERSON BY ANY COURT SITUATED IN DENVER, COLORADO, HAVING JURISDICTION OVER THE
SUBJECT MATTER, WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH
SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO EXECUTIVE AND THE COMPANY AT THEIR
ADDRESSES SET FORTH ABOVE AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) BUSINESS
DAYS AFTER SUCH PROCESS SHALL HAVE BEEN DEPOSITED IN THE U.S. MAIL, POSTAGE PREPAID. EACH PARTY
WAIVES TRIAL BY JURY, ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO
VENUE OF ANY ACTION INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

               (h) Legal Fees and Expenses. The parties shall bear their own expenses, legal fees
and other fees incurred in connection with this Agreement.

               (i) No Assignment of Benefits. The rights of any person to payments or benefits under
this Agreement shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without
limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in
violation of this subsection (i) shall be void.

               (j) Employment Taxes. Any payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

-11-

 

               (k) Assignment by Company. The Company may assign its rights under this Agreement to
an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of
the Company or to the Company; provided, however, that no assignment shall be made if the net worth
of the assignee is less than the net worth of the Company at the time of assignment. In the case
of any such assignment, the term “Company” when used in a section of this Agreement shall mean the
corporation that actually employs Executive.

               (l) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

               (m) References to Equity Awards. References to all equity awards in this Agreement,
including, stock options, restricted stock and common stock, are prior to and do not take into
account any stock split or reverse stock split that may be implemented by the Company as part of
the Initial Public Offering or thereafter. For the avoidance of doubt, with regard to all equity
awards provided for under this Agreement, the number of shares, applicable strike price, and such
other terms as may be affected by a stock split or reverse split, shall be appropriately adjusted
by the Board to reflect such split or reverse split.

               (n) Section 409A. Notwithstanding any provision of this Agreement to the contrary,
if, at the time of Executive’s termination of employment with the Company, she is a “specified
employee” as defined in Section 409A of the Code, and one or more of the payments or benefits
received or to be received by Executive pursuant to this Agreement would constitute deferred
compensation subject to Section 409A, no such payment or benefit will be provided under this
Agreement until the earlier of (a) the date that is six (6) months following Executive’s
termination of employment with the Company, or (b) the Executive’s death. The provisions of this
Section 10(n) shall only apply to the extent required to avoid Executive’s incurrence of any
penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance
promulgated thereunder. In addition, if any provision of this Agreement would cause Executive to
incur any penalty tax or interest under Section 409A of the Code or any regulations or Treasury
guidance promulgated thereunder, the Company may reform such provision to maintain to the maximum
extent practicable the original intent of the applicable provision without violating the provisions
of Section 409A of the Code.

-12-

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 	 
	DIGITALGLOBE, INC. 	 	JILL D. SMITH	 
	 
	 	 	 	 	 
	By:
	 	/s/ Youcey L. Spruill	 	/s/ Jill D. Smith	 
	 

	 	 
	 	 	 
	 

	 	Title: Chief Financial Officer	 	Executive Signature	 
	

	 	 	 	 

ACKNOWLEDGEMENT OF

THE BOARD OF DIRECTORS

	 	 	 	 	 
	 	 	 
	By:  	/s/ General Howell Estes, III	 	 
	 	General Howell Estes, III 	 	 
	 	Title:  	Chair of the Compensation Committee 	 	 

-13-

 

Exhibit A

RELEASE OF CLAIMS

     This Release of Claims is entered into by and between DigitalGlobe, Inc., a Colorado
corporation (the “Company”), and «Executive_Name» (“Executive”). It is entered into pursuant to
the terms of an Employment Agreement (the “Agreement”) between Executive and Company dated
                          , 2008 and in order to resolve amicably all matters between Executive and the
Company concerning the Agreement and Executive’s termination of employment with the Company and
benefits payable to Executive under the terms of the Agreement.

     1. Termination of Employment. Executive’s employment with the Company has been
terminated as a result of a Change in Control, an Involuntary Termination Without Cause or a
Voluntary Resignation for Good Reason, as defined in the Agreement, by which Executive became
eligible for benefits upon termination of employment.

     2. Severance Pay. On the eighth day following the execution of this Agreement by
Executive (or on the next business day, if the eighth day is a weekend day or a holiday), the
Company agrees to pay to Executive as a payment of all monetary amounts due to Executive under the
terms of the Agreement the lump sum of $                    , less customary employee withholdings.
Executive is also eligible for certain other continuation of benefits under the terms of the
Agreement. Executive acknowledges that Executive has no entitlement to said benefits except
according to the terms of the Agreement, which includes a requirement that Executive execute this
Release of Claims. For the avoidance of doubt, any amounts payable to Executive pursuant to the
DigitalGlobe, Inc. Sale Bonus Plan are not released hereby.

     3. Sole Entitlement. Executive acknowledges and agrees that no other monies or
benefits are owing to Executive except as set forth in the Agreement or except as may be due under
the Sale Bonus Plan.

     4. Return of Property and Documents. Executive states that Executive has returned to
the Company all property and documents of the Company which were in Executive’s possession or
control, including without limitation access cards, Company-provided credit cards, computer
equipment and software.

     5. Confidentiality and Nondisparagement Agreement. Executive agrees to abide by the
terms of any confidentiality, nondisparagement, nonsolicitation, and non-competition agreement(s)
that Executive previously executed in connection with her employment with the Company. Executive
agrees not to make any communications or engage in any conduct that is or can reasonably be
construed to be disparaging of the Company, its officers, directors, employees, agents,
stockholders, products or services. The Company agrees not to make any communications or engage in
any conduct that is or can reasonably be construed to be disparaging of Executive.

Jill D. Smith

-1-

 

     6. Release. Executive (for herself, her agents, heirs, successors, assigns, executors
and/or administrators) does hereby and forever release and discharge the Company and its past and
present parent, subsidiary and affiliated corporations, divisions or other related entities, as
well as the successors, shareholders, officers, directors, heirs, predecessors, assigns, agents,
employees, attorneys and representatives of each of them, past or present (hereinafter the
“Releasees”) from any and all causes of action, actions, judgments, liens, debts, contracts,
indebtedness, damages, losses, claims, liabilities, rights, interests and demands of whatsoever
kind or character, known or unknown, suspected to exist or not suspected to exist, anticipated or
not anticipated, whether or not heretofore brought before any state or federal court or before any
state or federal agency or other governmental entity, which Executive has or may have against any
released person or entity by reason of any and all acts, omissions, events or facts occurring or
existing prior to the date hereof, including, without limitation, all claims attributable to the
employment of Executive, all claims attributable to the termination of that employment, and all
claims arising under any federal, state or other governmental statute, regulation or ordinance or
common law, such as, for example and without limitation, Title VII of the Civil Rights Act of 1964,
as amended, the Civil Rights Act of 1991, the Age Discrimination in Employment Act which prohibits
discrimination on the basis of age over 40, and wrongful termination claims, excepting only those
obligations expressly recited to be performed hereunder.

     In light of the intention of Executive (for herself, her agents, heirs, successors, assigns,
executors and/or administrators) that this release extend to any and all claims of whatsoever kind
or character, known or unknown, Executive expressly waives any and all rights granted by California
Civil Code Section 1542 or any other analogous federal or state law or regulation. Section 1542
reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN
BY HER MUST HAVE MATERIALLY AFFECTED HER SETTLEMENT WITH THE DEBTOR.

     Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent
Executive from filing a charge with, or participating in any proceeding or investigation
by, the Equal Employment Opportunity Commission or affiliated state agency. However,
Executive acknowledges that, in accordance with this Release, she has no right to recover
any monies on behalf of herself, her agents, heirs, successors, assigns, executors and/or
administrators in connection with, or as a result of, such charge, investigation, or
proceeding.

     7. No Actions Pending. Executive agrees that she has not filed, nor will she
file in the future, any claims, actions or lawsuits against any of the Releasees relating
to Executive’s employment with the Company, or the termination thereof.

     8. No Admissions. Nothing contained herein shall be construed as an admission
of wrongdoing or liability by either party hereto.

-2-

 

     9. Entire Agreement; Miscellaneous. This Agreement constitutes a single
integrated contract expressing the entire agreement of the parties with respect to the
subject matter specifically addressed herein and supersedes all prior and contemporaneous
oral and written agreements and discussions with respect to the subject matter hereof.
There are no other agreements, written or oral, express or implied, between the parties
hereto, concerning the subject matter hereof, except as set forth herein. This Agreement
may be amended or modified only by an agreement in writing, and it shall be interpreted and
enforced according to the laws of the State of Colorado. Should any of the provisions of
the Agreement be determined to be invalid by a court of competent jurisdiction, it is
agreed that this shall not affect the enforceability of the other provisions herein.

     10. Waiting Period and Right of Revocation. EXECUTIVE ACKNOWLEDGES THAT
EXECUTIVE IS AWARE AND IS HEREBY ADVISED THAT EXECUTIVE HAS THE RIGHT TO CONSIDER THIS
AGREEMENT FOR TWENTY-ONE DAYS BEFORE SIGNING IT, ALTHOUGH EXECUTIVE IS NOT REQUIRED TO WAIT
THE ENTIRE TWENTY-ONE DAY PERIOD; AND THAT IF EXECUTIVE SIGNS THIS AGREEMENT PRIOR TO THE
EXPIRATION OF TWENTY-ONE DAYS, EXECUTIVE IS WAIVING THIS RIGHT FREELY AND VOLUNTARILY.
EXECUTIVE ALSO ACKNOWLEDGES THAT EXECUTIVE IS AWARE AND IS HEREBY ADVISED OF EXECUTIVE’S
RIGHT TO REVOKE THIS AGREEMENT FOR A PERIOD OF SEVEN DAYS FOLLOWING THE SIGNING OF THIS
AGREEMENT AND THAT IT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD
HAS EXPIRED. TO REVOKE THIS AGREEMENT, EXECUTIVE MUST NOTIFY THE COMPANY IN WRITING WITHIN
SEVEN DAYS OF SIGNING IT.

     11. Attorney Advice. EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE IS AWARE OF
EXECUTIVE’S RIGHT TO CONSULT AN ATTORNEY, THAT EXECUTIVE HAS BEEN ADVISED TO CONSULT WITH
AN ATTORNEY, AND THAT EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT WITH AN ATTORNEY, IF
DESIRED, PRIOR TO SIGNING THIS AGREEMENT.

     12. Understanding of Agreement. Executive states that Executive has carefully
read this Agreement, that Executive fully understands its final and binding effect, that
the only promises made to Executive to sign this Agreement are those stated above, and that
Executive is signing this Agreement voluntarily.

-3-

 

	 	 	 	 	 
	 	 	 
	Dated: September 1, 2008	
/s/ Jill D. Smith	 
	 	Jill D. Smith 	 
	 	 	 
	 
	Dated: September 1, 2008	DIGITALGLOBE, INC.

 	 
	 	By:  	
/s/ Authorized Signatory	 
	 	 	 Title:  	 	 
	 	 	 	 

-4-

 

	 	 	 	 	 

Exhibit B

Executive Proprietary Information, Invention

and Non-Competition Agreement

	 	 	 
	 
	Executive name (Please type or print)

	 	Company location

 

I acknowledge that, during my employment with DigitalGlobe Inc, (DigitalGlobe) I shall be in a
position of confidence and trust, and shall have access to various data, technical developments and
improvements, processes, tools, customer data and relationships, business plans, customer lists,
marketing programs, price lists, salary and human resource information and other trade secrets
and/or confidential information relating to the business of DigitalGlobe. I further recognize that,
in providing highly specialized services for a wide variety of customers within an increasingly
competitive global market, DigitalGlobe has a proprietary interest in all trade secret and other
confidential information that I may acquire during the course of my employment which, if disclosed
to competitors, would cause DigitalGlobe to suffer immediate and substantial injury. In addition, I
acknowledge that I am a member of DigitalGlobe’s executive and management staff. Thus, I recognize
that it is in DigitalGlobe’s legitimate business interest to restrict my use of such trade secrets
and confidential or proprietary information for any purpose other than the discharge of my
employment duties at DigitalGlobe, and accordingly enter into this Proprietary Information,
Invention and Non-Competition Agreement (herein “Agreement”).

Therefore, in consideration of my employment (it being understood that this Agreement does not
itself give me rights to employment or continued employment) by DigitalGlobe or by any of its
subsidiaries, including any business entity of DigitalGlobe or any of its subsidiaries (such
corporation, its successors and the subsidiaries of such corporation or of its successors being
hereinafter individually and collectively called ‘DigitalGlobe° or “the Company”), I agree as
follows:

1. I will not directly or indirectly during or after the term of my employment:

	 	(a)	 	transfer or allow to be transferred, any information that is classified for
purposes of national security, to any person, firm or organization not authorized to
receive it; or
	 
	 	(b)	 	transfer, or allow to be transferred, any of the Company’s proprietary data
or information, whether relating to products, equipment, inventions, ideas, designs,
processes, research, software, customers, personnel, or otherwise, and including,
without limitation, any of the Company’s manufacturing, technical or scientific
know-how, methodologies, customers’ data, marketing programs, suppliers, pricing or
bidding strategies, bids or proposals submitted or contemplated, customer contracts,
and salary and

-5-

 

	 	 	 	human resource information or practices, to any person, firm or organization not
authorized by the Company to receive it, or to use any of such proprietary data or
information other than for the sole benefit of the Company; or

	 	(c)	 	transfer, or allow to be transferred, any drawing, sketch, layout, formula,
specification, report, written manufacturing, technical, or business information or
the like owned by the Company, or any copy thereof, to any person, firm or
organization not authorized by the Company to receive it; or

	 	(d)	 	transfer, or allow to be transferred, any information that is not generally
known outside the Company or that is designated by the Company as “Confidential” or
°Restricted Confidential” or is similarly designated, to any person, firm or
organization not authorized by the Company to receive it, or to use any of such
designated information other than for the sole benefit of the Company; or

	 	(e)	 	transfer, or allow to be transferred, any information not generally publicly
known that is designated by a third party as “limited”, “private”, “confidential”,
°proprietary” or is similarly designated, that the Company is contractually or
otherwise obligated to protect from unauthorized disclosure, to any person, firm or
organization not authorized by the Company to receive it, or use any such third party
information other than for the benefit of the Company for purposes authorized by the
Company; or

	 	(f)	 	transfer, or allow to be transferred, any information pertaining to
technology that has been deemed to be “controlled technology” as defined by the United
States Department of Commerce, Bureau of Export Administration (BXA).

2. I will keep myself informed of the Company’s policies and procedures for safeguarding
Company-controlled property, including all proprietary data and information, and will strictly
comply therewith at all times. I will not, except when authorized by the Company, remove any
Company-controlled property from Company premises. I will return to the Company, immediately
upon termination of my employment or upon my transfer within the Company, all
Company-controlled property in my possession or control.

3. I will grant and do hereby grant to the Company the sole and exclusive ownership of
(including the sole and exclusive right to reproduce, use or disclose for any purpose) any and
all reports, articles, books, recordings, audio-visual works, drawings, blueprints, data,
software, firmware, writings and technical information and copyrights in the foregoing made or
prepared by me alone or with others during the term of my employment, whether or not made or
prepared in the course of my employment, that relate to the Company’s business or to
apparatus, compositions of matter or methods pertaining to the Company’s business. I
acknowledge that all such materials are the property of the Company within the scope of
paragraph 1(b) and 1(c) above.

-6-

 

4. I will advise the Company’s Legal Department in writing in detail of each invention, whether
or not patentable, made or conceived during the term of my employment by me alone, or with
others. I will assign, and do hereby assign, to the Company or to its nominee, all my right,
title and interest in each invention without further consideration. During or after the term
of my employment, I will execute, acknowledge and deliver such assignments, affidavits, and
other instruments prepared by the Company or its nominee, and do such other things as will
assist the Company, or its nominee to obtain patents on such invention in any and all
countries, all without further consideration, other than reimbursement of my expenses. I
acknowledge that the expenses for which I might request reimbursement from the Company be
limited to mailing charges and notary fees and other such expenses authorized in writing in
advance by the Company, or its nominee.

5. There are excluded from the operation of paragraph 4:

	 	(a)	 	all patents issued in my name, alone or with others, prior to the date of my
first employment by the Company; and inventions for which no equipment, supplies,
facility or trade secret information of the Company was used and which were developed
entirely on my own time, and:

	 	(1)	 	do not relate directly to the business of the Company or to
the Company’s actual or demonstrably anticipated research or development
	 
	 	(2)	 	which do not result from any work performed by me for the
Company; and

	 	(b)	 	the inventions that are listed in the Appendix of this Agreement.

6. To the extent permitted by applicable state law, I agree that I shall not, during my
employment at DigitalGlobe and for a period of one (1) year after the termination of my
employment at DigitalGlobe, directly or indirectly:

	 	(a)	 	recruit, solicit, attempt to persuade, or assist in the recruitment or
solicitation of, any employee of the Company who was an employee, officer or agent of
the Company during the three month period immediately preceding the date of
termination of my employment, for the purpose of employing her or obtaining her
services or otherwise causing her to leave her employment with the Company;
	 
	 	(b)	 	solicit or divert to any competing business any customer or prospective
customer to which I had contact during the eighteen (18) months prior to leaving
DigitalGlobe unless previously approved by DigitalGlobe in writing; or
	 
	 	(c)	 	become employed by or perform professional services of the type I provided
while employed by DigitalGlobe, for any competitor of DigitalGlobe in its direct
business lines, including, but not limited to, satellite and aerial imagery

-7-

 

operations, product distribution, mapping and other value added services, by
directly or indirectly taking any of the following actions:

	 	(1)	 	owning, managing, operating, joining, controlling or
providing services to any entity, regardless of entity form or location, that
engages in or is seeking to engage in the current or planned business
activities of the Company;
	 
	 	(2)	 	serving as an employee, agent, consultant, officer, or
director of any such entity; or
	 
	 	(3)	 	inducing or attempting to induce any customer, supplier, or
business relation of the Company to cease doing business with the Company, or
in any other way interfering with the relationship between any customer,
supplier or business relation and the Company.

If, after termination of my employment with the Company, I violate the covenants contained in
this paragraph, then the duration of the covenant shall be extended from the date I resume
compliance with the covenant, reduced by the number of days following my termination that I was
not in violation of the covenant.

7. If the period of time or the area specified in Paragraph 6 should be adjudged unreasonable in
any proceeding, then the period of time shall be reduced by such numbers of months or the area
reduced by the elimination of such portion thereof or both so that such restrictions may be
enforced in such area and for such time as are adjudged to be reasonable.

8. I acknowledge that the restrictions contained in this Agreement, in view of the global nature
of the Company’s business, are reasonable and necessary in order to protect the legitimate
interests of DigitalGlobe, and that any violation thereof would result in irreparable injuries to
DigitalGlobe. In the event of any violation of any of these restrictions, I acknowledge that
DigitalGlobe shall be entitled to obtain from any court of competent jurisdiction preliminary and
permanent injunctive relief as well as damages and an equitable accounting of all earnings,
profits, and other benefits arising from such violation, which rights shall be cumulative and in
addition to any other rights or remedies to which DigitalGlobe may be entitled.

9. This Agreement constitutes the entire Agreement between the parties in connection with the
subject matter hereof, supersedes any and all prior agreements or understandings between the
parties, and may only be changed by agreement in writing between the parties.

10. This Agreement shall be governed by, and construed in accordance with, the law of the State of
Colorado without regard to its conflict of laws principles.

-8-

 

11. This Agreement will be binding upon and inure to the benefit of the Company, its successors
and assigns. This Agreement may be assigned in whole or in part by the Company to a successor to
all or substantially all of the business or assets of the Company or the sub-portion of the
business or assets of the Company that relate to employee’s duties; or to any subdivision or part
of the company; or to any entity which is a subsidiary or affiliate of the Company. I acknowledge
that my obligations under this Agreement are binding upon my heirs, assigns and legal
representatives.

      

I HAVE READ AND I UNDERSTAND THIS AGREEMENT AND ACKNOWLEDGE RECEIPT OF A COPY THEREOF:

	 	 	 	 	 
	/s/ Jill D. Smith
	 	September 1, 2008	 	/s/ Authorized Signatory
	 

	 	 
	 	 
	(Executive’s signature)

	 	(Date)
	 	(Witness)

-9-

 

 

APPENDIX

	 	 	 
	Jill D. Smith 
	Executive name (Please type or print)

	 	Company location

List of unpatented inventions owned or controlled by me on the date of entering these services
including documents which disclose same. (A disclosure of the inventions themselves is not called
for; what is wanted is an identification of the source documents, such as patent applications, or
drawings, identified by number, title and/or date.) This information should appear on the back of
all copies of this Agreement.

NONE

-10-

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