Document:

ex10_1.htm

Exhibit 10.1

 

 

AMENDED AND RESTATED ASSET PURCHASE AGREEMENT

BY AND BETWEEN

ANTE5, INC., A DELAWARE CORPORATION (“BUYER”)

AND

TWIN CITY TECHNICAL, LLC,

A NORTH DAKOTA LIMITED LIABILITY COMPANY

AND

IRISH OIL AND GAS, INC., A NEVADA CORPORATION

(COLLECTIVELY, THE “SELLERS”)

MINERAL LEASES

 

 

  

  

  

“Harris/Furlong III”

Amended and Restated Asset Purchase Agreement

This Amended and Restated Asset Purchase Agreement (the “Agreement”) is made and entered into as of the 2nd day of March, 2011 (the “Effective Date”) by and between Twin City Technical, LLC, a North Dakota limited liability company, and Irish Oil and Gas, Inc., a Nevada corporation (collectively, the “Sellers”), and Ante5, Inc., a Delaware corporation (“Buyer”), with respect to the following facts:

R E C I T A L S

A.  Sellers are the lessees (“Lessees”) and sole working interest owners under those certain mineral leases described in Appendix B of this Agreement (collectively, the “Mineral Leases”).

B.  Buyer is a Delaware corporation that files public reports with the Securities and Exchange Commission and desires to purchase from the Sellers all of the Sellers’ right, title and interest in and to the Mineral Leases along with all related assets described in Appendix B to this Agreement (collectively, the “Acquired Assets”).

C.  Sellers desire to sell to Buyer and Buyer desires to purchase from the Sellers all of the Acquired Assets on the terms and conditions set forth in this Agreement.

D.  This Agreement completely amends, restates and supersedes that certain Asset Purchase Agreement, dated as of February 14, 2011, entered into by the Buyer and Sellers and executed and delivered by Buyer on February 18, 2011 (the “Original Agreement”), relating to the oil and gas properties referred to therein as the “Harris/Furlong III”.  The Original Agreement is no longer in force or effect.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the parties to this Agreement, and in light of the above recitals to this Agreement, the parties to this Agreement hereby agree as follows:

1.             Purchase and Sale of Assets.

Provided there is a closing (“Closing”) and subject to the terms and conditions set forth in this Agreement, Sellers agree to sell, convey, assign, transfer and deliver to Buyer and Buyer agrees to purchase from Sellers all of the Sellers’ right, title and interest in and to the Mineral Leases described in Appendix B to this Agreement (collectively referred to as the “Acquired Assets”).

2.             Assumption of Lessee's Lease Obligations and Liabilities.

Except for AFE's and JIB's, if any, as referenced in Section 4 of this Agreement, with respect to the performance of Lessees’ obligations pursuant to the terms of the Mineral Leases, Buyer shall not be liable or obligated to perform or pay any of Lessees' obligations pursuant to such Mineral Leases which accrue or become payable at or before the date of the Closing (the “Closing Date”).  Buyer shall be solely liable and responsible for full payment and full performance of Lessees' obligations pursuant to such Mineral Leases which accrue or arise from and after the Closing Date. Sellers shall be solely obligated for full performance and full payment of all Lessee obligations pursuant to the terms of such Mineral Leases which accrue or arise from and before the Closing Date. Sellers shall not be obligated or liable for performance or payment of Lessees' obligations pursuant to the terms of such Mineral Leases which accrue or arise from and after the Closing Date.  Accordingly, Sellers are solely responsible for all payments required to be made under the Mineral Leases by Lessees accruing prior to the Closing Date, and hereby agree to make all such payments prior to the Closing Date and to indemnify and hold Buyer harmless from them.

3.             Purchase Price.

As consideration for the sale, conveyance, assignment, transfer and delivery of the Acquired Assets to Buyer, Buyer agrees to pay to the Sellers a total of $1,372,787 in cash plus issue to them 871,960 shares of the common stock of the Buyer, and to issue to xxxxxxxxxxxxxx or the company of xxxxxxxx choosing (“xxx”) 400,000 shares of the common stock of the Buyer (collectively, the “Shares”).  Prior to Buyer issuing shares to xxx, xxx must execute an agreement with Buyers with terms similar to Section 5.15 of this Agreement wherein xxx acknowledges that it is an accredited investor and suitable to receive said shares from Buyer.  The Buyer will allocate the Purchase Price among the Sellers in accordance with specific written instructions delivered by the Sellers (signed by both of them) to the Buyer at the Closing.  In the absence of such written instructions, the Buyer will allocate 50% of the Purchase Price to Twin City Technical, LLC, and 50% of the Purchase Price to Irish Oil and Gas, Inc.

 

  

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4.             Closing and Further Acts.

The Closing of the purchase and sale of the Acquired Assets will occur upon the satisfaction or waiver of the conditions set forth in Section 7 of this Agreement, but no later than March 16, 2011, unless Sellers and Buyer mutually agree in writing to extend the Closing Date. At the Closing, Sellers shall deliver to Buyer such bills of sale, deeds, assignments and other instruments of sale, conveyance, assignment and transfer as are sufficient in the opinion of Buyer and its counsel to vest in Buyer and its successors or assigns the absolute, legal and equitable title to the Acquired Assets.  At the Closing, Buyer shall deliver to Sellers the cash portion of the Purchase Price by wire transfer or cashier’s check, and the original stock certificates associated with the stock portion of the Purchase Price.  The allocation of said deliveries by the Buyer among the Sellers at the Closing is governed by Section 3 of this Agreement.  At the Closing, the Sellers will deliver to the Buyer the following items:  (i) assignments in recordable form of all of Sellers’ right, title and interest in and to the Mineral Leases signed by both Sellers or each respective Seller, as appropriate, effective on the Closing Date, (ii) the executed Bill of Sale in the form of Appendix A to this Agreement, signed by both of the Sellers, and (iii) all books, records, leases, assignments, geological reports and other documents relating in any way to the Acquired Assets.  All parties to this Agreement hereby agree to execute all other documents and take all other actions which are reasonably necessary or appropriate in order to effect all of the transactions contemplated by this Agreement. In the event that an Authorization for Expenditures (“AFE’s”) or a Joint Interest Billing (“JIB”) for the Acquired Assets is received and requires payment prior to the Closing Date, Sellers will provide notice in writing to Buyer within three (3) days of their receipt of the AFE or JIB and Sellers covenant to pay the AFE and JIB promptly.  Buyer will reimburse Sellers for such payments at the Closing.

	
5.

	
Representations and Warranties of Sellers.

Sellers jointly and severally represent and warrant to Buyer as follows:

5.1           Power and Authority; Binding Nature of Agreement.

Sellers have full power and authority to enter into this Agreement and to perform their obligations hereunder.  The execution, delivery and performance of this Agreement by them have been duly authorized by all necessary action on their part.  This Agreement is a valid and binding obligation of the Sellers.

5.2           Good Standing.

Sellers (i) are duly organized, validly existing and in good standing under the laws of the state of their organization and in each state where the Acquired Assets are located or where they otherwise conduct business, (ii) have all necessary power and authority to own their assets and to conduct their business as it is currently being conducted, and (iii) are duly qualified or licensed to do business and are in good standing in every jurisdiction (both domestic and foreign) where such qualification or licensing is required.

5.3           Absence of Undisclosed Liabilities.

Sellers have no debt, liability or other obligation of any nature (whether due or to become due and whether absolute, accrued, contingent or otherwise) that may in any way affect the Acquired Assets or encumber them, or be imposed on the Buyer as a result of the transactions contemplated by this Agreement.

 

  

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5.4

	
Leases and Contracts.

Sellers have delivered or will deliver to Buyer complete and correct copies of all of the leases, contracts, documents and other instruments, as amended, relating to the Acquired Assets.  All of such leases, contracts, documents and other instruments are valid and in full force and effect, and are enforceable in accordance with their terms.  There is no existing default by any person under any of said leases, contracts, documents or other instruments, and there exists no condition or set of circumstance which, with notice or lapse of time or both, would constitute such a default.

	
  

	
5.5

	
Acquired Assets.

(a)           The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not result in a breach of the terms and conditions of, or result in a loss of rights under, or result in the creation of any lien, charge or encumbrance upon, any of the Acquired Assets for any reason, including but not limited to pursuant to (i) Sellers’ charter documents, (ii) any franchise, mortgage, deed of trust, lease, license, permit, agreement, contract, instrument or undertaking to which Sellers are a party or by which they or any of their properties are bound, or (iii) any statute, rule, regulation, order, judgment, award or decree.

(b)           Sellers have good and marketable title to all of the Acquired Assets, free and clear of all mortgages, liens, leases, pledges, charges, encumbrances, equities or claims, and is conveying such title in such state to the Buyer pursuant to this Agreement.

(c)           The Acquired Assets are not subject to any material liability, absolute or contingent.

(d)           The list of Acquired Assets set forth in Appendix B of this Agreement is an accurate description of all of the Mineral Leases of Sellers that are being assigned by the Sellers to the Buyer pursuant to this Agreement.

(e)           The list of Acquired Assets set forth in Appendix B to this Agreement contains a list of all contracts, agreements, licenses, leases, arrangements, commitments and other undertakings relating to the Acquired Assets to which Sellers are a party or by which they or the Acquired Assets are bound.  All of such contracts, agreements, leases, licenses and commitments are valid, binding and in full force and effect, and are assignable to Buyer without the consent of any other party or such consent will be obtained in writing prior to the Closing.

(f)           No consent is necessary to effect the transfer to Buyer of any of the Acquired Assets, and upon the consummation of the transactions contemplated hereby, Buyer will be entitled to use the Acquired Assets to the full extent that Sellers used the same immediately prior to the transfer of the Acquired Assets.

(g)           On the Closing, Buyer will have no less than a 78% net revenue interest in the Mineral Leases, or greater as indicated in Appendix B to this Agreement.

(h)           There is no condition, order, or situation or any basis for such that would cause the prohibition of customary oil and gas drilling on the Mineral Leases after the Closing in accordance with applicable laws, rules and regulations.

	
  

	
5.6

	
Compliance with Laws; Licenses and Permits.

Sellers are not in violation of, nor have they failed to conduct their business with respect to the Acquired Assets in full compliance with, any applicable federal, state, local or foreign laws, regulations, rules, treaties, rulings, orders, directives or decrees.  Sellers have delivered or will deliver to Buyer complete and correct copies of all of the licenses, permits, authorizations and franchises to which Sellers are subject and all said licenses, permits, authorizations and franchises are valid and in full force and effect.  Said licenses, permits, authorizations and franchises constitute all of the licenses, permits, authorizations and franchises necessary to permit Sellers to conduct their business with respect to the Acquired Assets in the manner in which it is now being conducted, and Sellers are not in violation or breach of any of the terms, requirements or conditions of any of said licenses, permits, authorizations or franchises.

 

  

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5.7           Litigation.

There is no action, suit, proceeding, dispute, litigation, claim, complaint or investigation by or before any court, tribunal, governmental body, governmental agency or arbitrator pending or, to Sellers’ knowledge, threatened against or with respect to Sellers or the Acquired Assets which (i) if adversely determined would have an adverse effect on the Acquired Assets, or (ii) challenges or would challenge any of the actions required to be taken by the Sellers under this Agreement.  To the best of Sellers’ knowledge, information and belief, there exists no basis for any such action, suit, proceeding, dispute, litigation, claim, complaint or investigation.

5.8           Non-Contravention.

Neither (a) the execution and delivery of this Agreement, nor (b) the performance of this Agreement will:  (i) contravene or result in a violation of any of the provisions of the articles of incorporation, bylaws or other charter or organizational documents of Sellers; (ii) contravene or result in a violation of any resolution adopted by the board of directors or equity owners of Sellers; (iii) result in a violation or breach of, or give any person the right to declare (whether with or without notice or lapse of time) a default under or to terminate, any agreement or other instrument to which Sellers are a party or by which Sellers are bound relating to the Acquired Assets; (iv) result in the loss of the Acquired Assets; (v) result in the creation or imposition of any lien, charge, encumbrance or restriction on any of the Acquired Assets; or (vi) result in a violation of any law, rule, regulation, treaty, ruling, directive, order, arbitration award, judgment or decree to which Sellers or the Acquired Assets are subject.

5.9           Approvals.

No authorization, consent or approval of, or registration or filing with, any governmental authority or any other person is required to be obtained or made by Seller in connection with the execution, delivery or performance of this Agreement.

5.10           Brokers.

Sellers have not agreed to pay any brokerage fees, finder’s fees or other fees or commissions with respect to the transactions contemplated by this Agreement, and, to Sellers’ knowledge, no person is entitled, or intends to claim that it is entitled, to receive any such fees or commissions in connection with such transaction.

5.11           Tax Matters.

All federal, state, local and foreign tax returns required to be filed by the Sellers with respect to the Acquired Assets have been properly prepared and duly filed, and all taxes required to be paid by, or claimed by any federal, state, local or foreign taxing authority to be payable by, the Sellers with respect to the Acquired Assets have been paid in full.  There is no (i) pending audit or examination of the Sellers (or of any of the tax returns thereof) being conducted by any federal, state, local or foreign taxing authority, (ii) pending or threatened claim or dispute relating to the payment of any taxes by the Sellers, (iii) basis specifically known to the Sellers upon which any federal, state, local or foreign taxing authority may make any claim for the payment of additional taxes by the Sellers, or (iv) outstanding agreement or waiver extending the statutory limitations period applicable to the payment of any taxes by the Sellers.

5.12           Environmental Compliance Matters.

The Sellers hereby represent and warrant to the best of their knowledge, without independent investigation or verification, that they are unaware of any environmental issue of any kind, as that term is defined in the oil and gas industry at the time of this transaction, relating to, affecting or potentially affecting the Acquired Assets.  In the event environmental issues arise that are not covered by Sellers’ representation and warranties herein, Sellers shall not be liable.

5.13           Representations True on Closing Date.

The representations and warranties of Sellers set forth in this Agreement are true and correct on the date hereof, and will be true and correct on the Closing Date as though such representations and warranties were made as of the Closing Date.

 

  

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5.14

	
Non-Distributive Intent.

The Shares of common stock that may be acquired by the Sellers pursuant to this Agreement are not being acquired by the Sellers with a view to the public distribution of them.  Sellers acknowledge and agree that the Shares acquired by the Sellers pursuant to this Agreement have not been registered or qualified under federal or state securities laws, and may not be sold, conveyed, transferred, assigned or hypothecated without being registered under the Securities Act of 1933, as amended (the “Act”), and applicable state law, or in the alternative in accordance with Rule 144 of the Act or submission of evidence reasonably satisfactory to Buyer that another exemption from registration is available.

	
  

	
5.15

	
Suitability and Acknowledgments of Sellers.

(a)     The Sellers are “Accredited Investors”, as that term is defined in Rule 501 of Regulation D promulgated under Section 4(2) of the Securities Act of 1933, as amended, and the Frank/Dodd Wall Street Reform and Consumer Protection Act of 2010, by virtue of the fact that all of the equity owners of the Sellers are “Accredited Investors”, or the Sellers otherwise qualify as “Accredited Investors” under current applicable federal and state securities laws.

(b)           Sellers are able to bear the economic risk of an investment in the Shares and will, after making an investment in the Shares, have sufficient means of providing for Sellers’ current needs and possible future contingencies.

(c)           Sellers have had access to all information concerning the Buyer that Sellers and Sellers’ financial, tax and legal advisors required or considered necessary to make a proper evaluation of this investment.  The available information included all information filed by the Buyer with the Securities and Exchange Commission. In making the decision to purchase the Shares herein agreed to, Sellers and Sellers’ advisors have relied upon their own independent investigations, and fully understand that there are no guarantees, assurances or promises in connection with any investment hereunder and understand that the particular tax consequences arising from this investment in the Buyer will depend upon the individual circumstances of Sellers.

(d)           Sellers also understand and agree that instructions relating to the Shares will be placed in the Buyer’s transfer ledger, and that the certificates evidencing the Shares sold will bear legends in substantially the following form:

The Shares represented by this Certificate have not been registered under the Securities Act of 1933, as amended (the “Act”) and are “restricted securities” as that term is defined in Rule 144 under the Act. The securities may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act or pursuant to Rule 144 of the Act or another exemption from registration under the Act, the availability of which is to be established to the satisfaction of the Company.

(e)           Sellers know that the Shares are offered and sold pursuant to exemptions from registration under the Securities Act of 1933, as amended, and state securities law based, in part, on these warranties and representatives, which constitute a material part of the bargained-for consideration without which this Agreement would not have been executed.  Sellers agree to indemnify and hold the Buyer harmless for any damages suffered by the Buyer as a result of any misrepresentation or breach of any representation or warranty of Sellers.

(f)            By reason of Sellers’ business or financial experience or the business or financial experience of Sellers’ professional advisors, Sellers have the capacity to protect their own interest in connection with this transaction or have a pre-existing personal or business relationship with the Buyer or one or more of its officers, directors or controlling persons consisting of personal or business contacts of a nature and duration such as would enable a reasonably prudent purchaser to be aware of the character, business acumen and general business and financial circumstances of such person with whom such relationship exists.

 

  

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(g)           Sellers acknowledge that Sellers have had the opportunity to review this Agreement and the Appendices attached hereto, the Buyer’s reports filed with the Securities and Exchange Commission, and the transactions contemplated hereby and thereby with Sellers’ own legal counsel.

 

	
6.

	
Representations and Warranties of Buyer.

Buyer represents and warrants to Sellers as follows:

6.1           Power and Authority; Binding Nature of Agreement.

Buyer has full power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution, delivery and performance of this Agreement by Buyer have been duly authorized by all necessary action on its part.  This Agreement is a valid and binding obligation of Buyer.

6.2           Good Standing.

Buyer (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, (ii) has all necessary power and authority to own its assets and to conduct its business as it is currently being conducted, and (iii) is duly qualified or licensed to do business and is in good standing in every jurisdiction (both domestic and foreign) where such qualification or licensing is required.

6.3           Charter Documents and Corporate Records.

Buyer has filed with the Securities and Exchange Commission in public reports accessible to the Sellers complete and correct copies of the articles of incorporation, bylaws and other charter or organizational documents of Buyer, including all amendments thereto. Buyer is not to its knowledge in violation or breach of (i) any of the provisions of its articles of incorporation, bylaws or other charter or organizational documents, or (ii) any resolution adopted by its shareholders or directors.

6.4           Capitalization.

Buyer has filed with the Securities and Exchange Commission in public reports accessible to the Sellers information regarding the authorized and outstanding capital stock of Buyer.  To Buyer’s knowledge, the outstanding shares of the capital stock of Buyer are, and the Shares if and when issued to the Sellers will be, validly issued, fully paid and non-assessable, and have been and will be issued in full compliance with all applicable federal, state, local and foreign securities laws and other laws.

6.5           Absence of Undisclosed Liabilities.

Buyer has no material debt, liability or other obligation whether due or to become due and whether absolute, accrued, contingent or otherwise, other than those that have been disclosed to Sellers in the Buyer’s public reports filed with the Securities and Exchange Commission.

6.6           Litigation.

There is no action, suit, proceeding, dispute, litigation, claim, complaint or investigation by or before any court, tribunal, governmental body, governmental agency or arbitrator pending or, to Buyer’s knowledge, threatened against or with respect to Buyer which (i) if adversely determined would have an adverse effect on the transactions contemplated by this Agreement, or (ii) challenges or would challenge any of the actions required to be taken by Buyer under this Agreement.

 

  

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6.7           Non-Contravention.

Neither (a) the execution and delivery of this Agreement, nor (b) the performance of this Agreement will:  (i) contravene or result in a violation of any of the provisions of the articles of incorporation, bylaws or other charter or organizational documents of Buyer; (ii) contravene or result in a violation of any resolution adopted by the shareholders or directors of Buyer; (iii) result in a violation or breach of, or give any person the right to declare (whether with or without notice or lapse of time) a default under or to terminate, any agreement or other instrument to which Buyer is a party or by which Buyer or any of its assets are bound; (iv) give any person the right to accelerate the maturity of any indebtedness or other obligation of Buyer; (v) result in the loss of any license or other contractual right of Buyer; (vi) result in the loss of, or in a violation of any of the terms, provisions or conditions of, any governmental license, permit, authorization or franchise of Buyer; (vii) result in the creation or imposition of any lien, charge, encumbrance or restriction on any of the assets of Buyer; (viii) result in the reassessment or revaluation of any property of Buyer by any taxing authority or other governmental authority; (ix) result in the imposition of, or subject Buyer  to any liability for, any conveyance or transfer tax or any similar tax; or (x) result in a violation of any law, rule, regulation, treaty, ruling, directive, order, arbitration award, judgment or decree to which Buyer or any of its assets is subject.

6.8           Approvals.

No authorization, consent or approval of, or registration or filing with, any governmental authority or any other person is required to be obtained or made by Buyer in connection with the execution, delivery or performance of this Agreement.

6.9           Brokers.

In return for services provided by Sellers to Buyer in association with this Agreement, Buyer has agreed to pay Sellers an over-riding interest (“ORR”) in any Mineral Lease with a Net Royalty Interest (NRI) in excess of 78%.  Sellers earn a maximum ORR of 2% on any Mineral Lease with an NRI equal to or greater than 80%.  For Mineral Leases with an NRI less than 80% but greater than 78%, Sellers earn an ORR equal to the Mineral Lease NRI less 78% (e.g., Sellers earn an ORR 1% on a mineral lease with a 79% NRI).  Sellers do not earn an ORR on Mineral Leases with an NRI less than 78%.

6.10           Representations True on Closing Date.

The representations and warranties of Buyer set forth in this Agreement are true and correct on the date hereof, and will be true and correct on the Closing Date as though such representations and warranties were made as of the Closing Date.

	
7.

	
Conditions to Closing.

	
  

	
7.1

	
Conditions Precedent to Buyer’s Obligation To Close.

Buyer’s obligation to close the purchase and sale of the Acquired Assets as contemplated in this Agreement is conditioned upon the occurrence or waiver by Buyer of the following:

(a)           Buyer is satisfied in its reasonable discretion with its due diligence of the Acquired Assets and with the Assignment of Oil and Gas Leases that will evidence the assignment of the Acquired Assets by the Sellers to the Buyer at the Closing, after a thorough investigation and examination, no material adverse change has occurred to the Acquired Assets between the date of this Agreement and Closing Date, and Sellers have received all third party consents in writing necessary to permit the conveyance of the Acquired Assets to the Buyer including but not limited to all necessary government and regulatory approvals.

(b)           All representations and warranties of Sellers made in this Agreement or in any exhibit hereto delivered by Sellers shall be true and correct as of the Closing Date with the same force and effect as if made on and as of that date, and Sellers shall have performed and complied with all agreements, covenants and conditions required by this Agreement to be performed or complied with by Sellers prior to or at the Closing Date.

  

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7.2

	
Conditions Precedent to Seller’s Obligation To Close.

Seller’s obligation to close the purchase and sale of the Acquired Assets as contemplated in this Agreement is conditioned upon the occurrence or waiver by Seller of the following:

(a)           All representations and warranties of Buyer made in this Agreement or in any exhibit hereto delivered by Buyer shall be true and correct on and as of the Closing date with the same force and effect as if made on and as of that date.

(b)           Buyer shall have performed and complied with all agreements and conditions required by this Agreement to be performed or complied with by Buyer prior to or at the Closing Date.

8.             Further Assurances.

Following the Closing, Sellers agree to take such actions and execute, acknowledge and deliver to Buyer such further instruments of assignment, assumptions, conveyance and transfer and take any other action as Buyer may reasonably request in order to more effectively convey, sell, transfer and assign to Buyer the Acquired Assets, to confirm the title of Buyer thereto, and to assist Buyer in exercising its rights with respect to the Acquired Assets.

	
9.

	
Survival of Representations and Warranties.

All representations and warranties made by each of the parties hereto shall survive the Closing for a period of one (1) year from the Closing Date, except for those representations and warranties in Sections 5.1, 5.2, 5.8, 5.11, 5.14, 5.15, 6.1, 6.2, 6.3, 6.4, and 6.8 of this Agreement, which shall survive for the applicable statute of limitations under applicable state law.  All covenants, representations and warranties of the Sellers in this Agreement are joint and several.  Any reference to Seller in this Agreement also refers to each of them.

	
10.

	
Indemnification.

10.1           Indemnification by Sellers.

Sellers agree to indemnify, defend and hold harmless Buyer and its affiliates against any and all claims, demands, losses, costs, expenses, obligations, liabilities and damages, including interest, penalties and attorney’s fees and costs, incurred by Buyer arising, resulting from, or relating to any and all liabilities of Sellers, or any breach of, or failure by Sellers to perform, any of its representations, warranties, covenants or agreements in this Agreement or in any exhibit or other document furnished or to be furnished by Sellers under this Agreement.

10.2           Indemnification by Buyer.

Buyer agrees to indemnify, defend and hold harmless Sellers and their affiliates against any and all claims, demands, losses, costs, expenses, obligations, liabilities and damages, including interest, penalties and attorneys’ fees and costs incurred by Sellers arising, resulting from or relating to any breach of, or failure by Buyer to perform, any of its representations, warranties, covenants or agreements in this Agreement or in any exhibit or other document furnished or to be furnished by Buyer under this Agreement.

10.3           Indemnification Limits.

In the case of fraud or willful misconduct by Buyer or Sellers, the indemnification amount will be determined by a court of law. In the event of breach by Sellers of any of their representations, warranties and covenants relating to the Mineral Leases, then as soon as reasonably possible, Sellers promise to replace any defective Mineral Lease with a mineral lease having the same or greater value as the Mineral Lease being replaced, and the Buyer promises to assign the defective mineral lease back to Sellers.  In the event the parties disagree on what is a comparable replacement, the final determination will be made by a mutually agreed upon consulting geologist. If the Sellers are unable to replace the defective Mineral Lease, then the indemnification amount will be limited to the cash value of the lease at the time of closing. For all other breaches triggering indemnification by Buyer or Sellers, the amount of indemnification liability will be limited to one million dollars in the aggregate.

 

  

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11.           Injunctive Relief.

11.1           Damages Inadequate.

The Sellers acknowledge that it would be impossible to measure in money the damages to the Buyer if there is a failure by Sellers to comply with any covenants and provisions of this Agreement, and agree that in the event of any such breach of any covenant or provision, the Buyer will not have an adequate remedy at law.

11.2           Injunctive Relief.

It is therefore agreed that to the extent that the Buyer is entitled to the benefit of the covenants and provisions of this Agreement which have been breached by the Sellers, in addition to any other rights or remedies which Buyer may have, Buyer shall be entitled to immediate injunctive relief to enforce such covenants and provisions.  In the event that any such action or proceeding is brought by the Buyer in equity to enforce them, the Sellers will not urge a defense that there is an adequate remedy at law.  Furthermore, Buyer shall not be obligated to post a surety or other bond in connection with the exercise of any of its equitable remedies under this Agreement.

	
12.

	
Waivers.

If any party shall at any time waive any rights hereunder resulting from any breach by the other party of any of the provisions of this Agreement, such waiver is not to be construed as a continuing waiver of other breaches of the same or other provisions of this Agreement.  Resort to any remedies referred to herein shall not be construed as a waiver of any other rights and remedies to which such party is entitled under this Agreement or otherwise.

	
13.

	
Successors and Assigns.

Each covenant and representation of this Agreement shall inure to the benefit of and be binding upon each of the parties, their personal representatives, assigns and other successors in interest.

	
14.

	
Entire and Sole Agreement.

This Agreement amends, restates and entirely supersedes the Original Agreement, which is terminated and no longer in force or effect, since it is entirely replaced by this Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes all other agreements, representations, warranties, statements, promises and undertakings, whether oral or written, with respect to the subject matter of this Agreement.  This Agreement may be modified or amended only by a written agreement signed by the parties against whom the amendment is sought to be enforced.  In the event of any contradiction between this Agreement and the Original Agreement, the terms of this Agreement will govern for all intents and purposes.

	
15.

	
Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, and the venue for any action hereunder shall be in the appropriate forum in the State of North Dakota.

	
16.

	
Counterparts.

This Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument.

	
17.

	
Attorneys’ Fees and Costs.

In the event that either party must resort to legal action in order to enforce the provisions of this Agreement or to defend such action, the prevailing party shall be entitled to receive reimbursement from the nonprevailing party for all reasonable attorneys’ fees and all other costs incurred in commencing or defending such action, or in enforcing this Agreement, including but not limited to post judgment costs.

 

  

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18.

	
Assignment.

Sellers specifically and expressly agree that the Buyer may assign all of its right, title and interest in and to this Agreement, and that such assignee will thereafter have all of the rights and obligations of Buyer under this Agreement, which will remain in full force and effect.

	
19.

	
Remedies.

Except as otherwise expressly provided herein, none of the remedies set forth in this Agreement are intended to be exclusive, and each party shall have all other remedies now or hereafter existing at law, in equity, by statute or otherwise.  The election of any one or more remedies shall not constitute a waiver of the right to pursue other available remedies.

	
20.

	
Section Headings.

The section headings in this Agreement are included for convenience only, are not a part of this Agreement and shall not be used in construing it.

	
21.

	
Severability.

In the event that any provision or any part of this Agreement is held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect the validity or enforceability of any other provision or part of this Agreement.

22.           Notices.

Each notice or other communication hereunder shall be in writing and shall be deemed to have been duly given on the earlier of (i) the date on which such notice or other communication is actually received by the intended recipient thereof, or (ii) the date five (5) days after the date such notice or other communication is mailed by registered or certified mail (postage prepaid) to the intended recipient at the following address (or at such other address as the intended recipient shall have specified in a written notice given to the other parties hereto):

If to Sellers:

Twin City Technical, LLC

P.O. Box 2323

Bismark, North Dakota  58502

Attn: Terry L. Harris, President

Telephone:  (701) 223-4866

Email Address: tlharris@bis.midco.net

Irish Oil and Gas, Inc.

925 Basin Avenue

P.O. Box 2356

Bismark, North Dakota  58502

Attn:  Timothy P. Furlong, Vice President

Telephone:  (701) 751-3141

Email Address: tim@irishog.com

If to Buyer:

 

Ante5, Inc.

10275 Wayzata Boulevard, Suite 310

Minnetonka, MN 55305

Attn: Bradley Berman, Chief Executive Officer

Telephone: (952) 426-1851

Email Address: bberman@ante5oil.com

 

  

Page 11 of 15

  

 

23.           Termination.

This Agreement will be effective on the date first above written and extend until the earliest to occur of the following events:

	
  

	
(1)

	
The mutual written agreement of all of the parties to this Agreement to terminate this Agreement for any reason or no reason.

	
  

	
(2)

	
A nonbreaching party may terminate this Agreement by written notice to a breaching party where the notice contains a description of the alleged breach, and the breaching party does not cure the breach within ten (10) days of its receipt of the notice, or if the cure would reasonably be expected to take longer than ten (10) days, commences to cure within ten (10) days and thereafter diligently proceeds to complete the cure.

	
  

	
(3)

	
The Closing occurs, subject to the survival of covenants, representations and warranties as provided in Section 9 of this Agreement.

	
  

	
(4)

	
The Closing does not occur by the Closing Date, as it may be extended by the mutual written agreement of the parties, subject to the ongoing effect of Section 25 of this Agreement.

	
24.

	
Publicity.

Except as may be required in order for a party to comply with applicable laws, rules or regulations or with this Agreement, or to enable Buyer to raise capital or financing for the transactions contemplated by this Agreement, no press release, notice to any third party or other publicity concerning the transactions contemplated by this Agreement will be issued, given or otherwise disseminated without the prior approval of the Buyer.

25.           Expenses.

Each party to this Agreement will bear their own expenses incurred by them in connection with this Agreement.

IN WITNESS WHEREOF, this Agreement has been entered into as of the date first above written.

 

	
SELLERS:

	
TWIN CITY TECHNICAL LLC,

	  	
a North Dakota Limited Liability Company

	  	  	  
	  	
By:

	  
	  	  	
Terry L. Harris, President

	  	  	  
	  	  	  
	  	
IRISH OIL AND GAS, INC., a Nevada corporation

	  	  	  
	  	
By:

	  
	  	  	
Timothy P. Furlong, Vice-President

	  	  	  
	  	  	  
	
BUYER:

	
ANTE5, INC., a Delaware corporation

	  	  	  
	  	  	  
	  	
By:

	  
	  	  	
Bradley Berman, Chief Executive Officer

 

  

Page 12 of 15

  

 

 

 

 

 

APPENDIX A

BILL OF SALE OF ASSETS

 

 

 

 

 

 

  

Page 13 of 15

  

 

BILL OF SALE OF ASSETS

 

Twin City Technical, LLC, a North Dakota limited liability company, and Irish Oil and Gas, Inc., a Nevada corporation (“Sellers”) hereby sell and convey to Ante5, Inc., a Nevada corporation (“Buyer”), all of the tangible and intangible assets (the “Assets”) to be transferred to Buyer pursuant to the terms and conditions of that certain Amended and Restated Asset Purchase Agreement (“Agreement”), made and entered into as of March 2, 2011, by and between Sellers and Buyer, and assign the Assets to Buyer forever, free and clear of all liens and encumbrances.  All such Assets are listed on Appendix B to the Agreement, which is made a part hereof.

Sellers warrant and agree to defend the title to all of the Assets for the benefit of Buyer and assigns against all persons by, through or under Assignor and to reimburse Assignee for any and all costs of legal proceedings to defend against the same; provided, that upon written demand of the Buyer delivered to Sellers, Sellers covenant to promptly replace any defective Acquired Asset that is the subject of a breach by Sellers of their covenants, representations or warranties with respect to the Mineral Leases in the Agreement in accordance with Section 10.3 of the Agreement.

IN WITNESS WHEREOF, Sellers have signed and delivered this Bill of Sale to Buyer on March ___, 2011 via email.

 

 

	
 

	

TWIN CITY TECHNICAL LLC,

	  	

a North Dakota Limited Liability Company

	  	  	  
	 	 	 
	  	
By:

	  
	  	  	

Terry L. Harris, President

	  	  	  
	  	  	  
	  	

IRISH OIL AND GAS, INC., a Nevada Corporation

	  	  	  
	 	 	 
	  	
By:

	  
	  	  	

Timothy P. Furlong, Vice-President

  

Page 14 of 15

  

 

 

 

 

 

APPENDIX B

LIST OF ACQUIRED ASSETS

OF

TWIN CITY TECHNICAL LLC

IRISH OIL AND GAS, INC.

Page 15 of 15EX-10.1

GATEWAY FACILITIES ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS GATEWAY FACILITIES ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is dated
as of the 1st day of March 2011 and effective on the Effective Date (as defined below) (by and
between TELESAT CANADA, a Canadian corporation (“Telesat”), LORAL SPACE & COMMUNICATIONS
INC., a corporation organized and existing under the laws of the State of Delaware (“Loral
Space”), and LORAL CANADIAN GATEWAY CORPORATION, a Canadian corporation (“LCGC”). The
parties hereto may be referred to individually as a “Party” and collectively as the
“Parties”.

W I T N E S S E T H:

WHEREAS, ViaSat, Inc., a corporation organized and existing under the laws of the State of
Delaware (“ViaSat”), and Space Systems/Loral, Inc., a Delaware corporation and an indirect,
wholly-owned subsidiary of Loral Space (“SS/L”), entered into a contract, dated as of
January 7, 2008, for the construction, testing and purchase of the ViaSat-1 satellite (the
“Satellite”); and

WHEREAS, Loral Space and Telesat entered into an Option Agreement, dated as of January 11,
2008 (the “Option Agreement”), pursuant to which Loral Space granted to Telesat the right
and option (the “Option”) to assume and succeed to the rights and obligations of Loral
Space under certain agreements relating to the Satellite; and

WHEREAS, Loral Space and Telesat IOM Limited, a corporation organized and existing under the
laws of the Isle of Man (“Telesat IOM”) are entering into a Space Segment Assignment and
Assumption Agreement contemporaneously with this Agreement (the “Space Segment Assignment
Agreement”) pursuant to which Loral Space will assign certain contracts relating to the
Satellite to Telesat IOM; and

WHEREAS, Loral Space and Telesat IOM are entering into the Barrett Assignment Agreement
contemporaneously with this Agreement (the “Barrett Assignment Agreement”), pursuant to
which Loral Space will assign to Telesat IOM a contract with Barrett Xplore Inc.
(“Barrett”) to provide certain space segment services to Barrett; and

WHEREAS, Loral Space, LCGC and Telesat have entered into certain contracts, as set forth in
Schedule 1 hereto, whereby Telesat has agreed to provide certain consulting and other services to
Loral Space and LCGC in support of the gateway facilities for operation of the Satellite
(collectively, the “Telesat Consulting Agreements”); and

WHEREAS, LCGC has entered into certain contracts with ViaSat and other third parties, as set
forth on Schedule 1 hereto, to provide certain equipment and other services to LCGC in support of
the gateway facilities for operation of the Satellite (collectively, the “Gateway
Agreements”); and

WHEREAS, LCGC desires to assign to Telesat, and Telesat desires to assume from LCGC, LCGC’s
rights and obligations under the Gateway Agreements, and Loral Space, LCGC and Telesat desire to
terminate the Telesat Consulting Agreements, according to the terms and conditions set forth below;

NOW, THEREFORE, in consideration of the foregoing premises and of the mutual representations,
warranties, covenants and agreements hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

1.0 Assignment by LCGC to Telesat and Assumption by Telesat from LCGC of the Gateway Agreements

1.1 For and in consideration of (x) payment by Telesat to LCGC of the LCGC Payment (as defined
below) and (y) and assumption by Telesat from LCGC of the Assumed Liabilities (as defined below),
LCGC hereby absolutely and irrevocably transfers, assigns, sets over and conveys unto Telesat any
and all of its rights, title and interest in, to and under the Gateway Agreements and any and all
of LCGC’s burdens, duties, obligations and liabilities under the Gateway Agreements from and after
the Effective Date. Telesat hereby accepts such assignment and, without limiting, and in
furtherance of, the foregoing, hereby expressly assumes such burdens, including the Assumed
Payments (as defined below), and agrees to observe and perform all of the duties, obligations,
terms, provisions and covenants, and to pay and discharge all of the liabilities of LCGC, as
applicable, to be observed, performed, paid or discharged from and after the Effective Date under
any Gateway Agreements (the “Assumed Liabilities”), in each case with the same force and
effect as though Telesat were a party to each such Gateway Agreement. “Assumed Payments” means all
amounts to be assumed and paid by Telesat IOM pursuant to the Gateway Agreements following the
Effective Date, which amounts are estimated in the attached Schedule 2: “Disclosure Schedule”. It
is understood and agreed that, except as set forth below in Section 1.3, from and after the
Effective Date LCGC shall be released from any and all further liabilities and obligations under
each of the Gateway Agreements, and Telesat shall cooperate with LCGC and use commercially
reasonable efforts to assist LCGC in obtaining from the parties to the Gateway Agreements a full
release of its obligations under the Gateway Agreements.

1.2 On the Effective Date, Telesat shall pay to LCGC all amounts paid by LCGC pursuant to the
Gateway Agreements on or prior to the Effective Date and all amounts paid by LCGC or Loral pursuant
to the Telesat Consulting Agreements on or prior to the Effective Date as identified in the
attached Schedule 2: “Disclosure Schedule” (the “LCGC Payment”). The LCGC Payment shall be
made without reduction for any tax imposed by Canada with respect to the transactions contemplated
by this Agreement. Telesat shall promptly after the Effective Date allocate the LCGC payment among
the three gateway locations for tax purposes and provide such allocation to LCGC and Loral. In the
event that LCGC receives a refund or any reimbursement for any amount included in the LCGC Payment,
LCGC shall refund the amount of any refund or reimbursement received by LCGC to Telesat within ten
(10) days of receipt of such refund or reimbursement.

1.3 Notwithstanding anything in this Agreement to the contrary, LCGC and Loral Space shall
indemnify, hold harmless, and defend (at Telesat’s request), Telesat and its Affiliates from and
against any and all liabilities, losses, costs, claims, damages, penalties and expenses, including
reasonable out-of-pocket attorneys’ fees and disbursements whether direct or indirect
(collectively, “Losses”) suffered or incurred by Telesat or its Affiliates relating to the
Gateway Agreements assigned hereunder as a result of or arising directly or indirectly out of or in
connection with any act or omission of LCGC or any other breach of any covenant or agreement set
forth under any Gateway Agreement, where such act or omission or breach occurred prior to the
Effective Date, unless such Losses arise directly or indirectly as a result of or in connection
with Telesat’s default, gross negligence or willful misconduct.

1.4 Telesat shall indemnify, hold harmless, and defend (at LCGC’s request), LCGC and its
Affiliates from and against any and all Losses suffered or incurred by LCGC or its Affiliates
relating to the Gateway Agreements assigned hereunder arising on or after the Effective Date,
unless such Losses arise directly or indirectly as a result of or in connection with LCGC’s
default, gross negligence or willful misconduct.

1.5 For purposes of this Agreement, an “Affiliate” of Telesat or LCGC or Loral Space, as
applicable, shall be defined as any individual, partnership, limited liability company,
corporation, joint stock company, trust, unincorporated association, joint venture or other entity
(i) directly or indirectly controlling (including all directors, officers, members and partners of
such person or entity), controlled by, or under direct or indirect common control with, Telesat or
LCGC or Loral Space, as applicable, or (ii) that directly or indirectly owns more than fifty
percent (50%) of any class of voting or equity securities of Telesat or LCGC or Loral Space, as
applicable. “Control” shall mean the power, directly or indirectly, to direct or cause the
direction of the management and policies of another entity whether through the ownership of voting
securities or voting interests, by contract or otherwise.

1.6 The indemnifying party shall have the right, upon written notice to the indemnified party,
to investigate, contest, defend or settle any asserted liability that may result in a Loss with
respect to which the indemnified party is entitled to indemnification pursuant to this Agreement,
as the case may be, subject to a reservation of rights; provided that the indemnified party may, at
its option and at its own expense, participate in the investigation, contesting, defense or
settlement of any such asserted liability through representatives and counsel of its own choosing;
and, provided further, that the indemnifying party shall not settle any asserted liability unless
(i) such settlement is on exclusively monetary terms or (ii) the indemnified party shall have
consented to the terms of such settlement, which consent shall not unreasonably be withheld. If
requested by the indemnifying party, the indemnified party will, at the sole cost and expense of
the indemnifying party, cooperate with the indemnifying party and its counsel in contesting any
asserted liability or, if appropriate and related to the asserted liability in question, in making
any counterclaim against the third party claimant, or any cross-complaint against any person (other
than the indemnified party or its Affiliates). Unless and until the indemnifying party elects to
defend the asserted liability, the indemnified party shall have the right, at its option and at the
indemnifying party’s expense, to do so in such manner as it deems appropriate; provided, however,
that the indemnified party shall not settle, compromise or pay any asserted liability for which it
seeks indemnification hereunder without the prior written consent of the indemnifying party (which
shall not be unreasonably withheld).

1.7 All transfer, documentary, sales, use, stamp, registration, goods and services, provincial
sales, harmonized sales and other such taxes, and all conveyance fees, recording charges and other
fees and charges (including any penalties and interest) incurred in connection with consummation of
the transactions contemplated by this Agreement shall be paid by Telesat when due, and Telesat
will, at its own expense, file all necessary tax returns and other documentation with respect to
all such taxes, fees and charges, and, if required by applicable law, LCGC will, and will cause its
Affiliates to, join in the execution of any such tax return and other documentation.

2.0 Termination of Telesat Consulting Agreements and other Obligations

2.1 Effective as of the Effective Date, the Parties agree that the Telesat Consulting
Agreements, as set forth in Schedule 1 hereto, shall be deemed terminated, and the Parties shall
have no further obligations or liabilities thereunder, except for any liabilities or obligations
that were incurred prior to the Effective Date.

2.2 As of the Effective Date, Telesat’s obligation to pay over to Loral Space all the fees it
receives from ViaSat for satellite operational services pursuant to Section 2.1 of the Option
Agreement shall be deemed terminated. In addition, Loral Space and Telesat agree that Section 1.3
of the Option Agreement (whereby in the event that Telesat does not exercise the Option, Loral
Space may request that Telesat’s license rights to the 115 degree West Longitude orbital position
and Telesat’s rights under the Cooperation Agreement by and among Loral Space, Telesat, and ViaSat,
dated as of January 11, 2008, be assigned to Loral Space) shall be deemed of no force and effect as
of the Effective Date.

2.3 Telesat shall use reasonable commercial efforts to assist Loral Space to wind up and
dissolve the LCGC corporate entity following the assignment of the Gateway Agreements and
termination of the Telesat Consulting Agreements.

3.0 Representations and Warranties

3.1 Except as disclosed in Schedule 2 hereto (the “Disclosure Schedule”) delivered by
LCGC to Telesat in connection with this Agreement, LCGC (and Loral Space, as applicable) hereby
represents and warrants to Telesat as of the Effective Date as follows:

3.1.1 No Other Commitments. LCGC has not made any promises or commitments or incurred
any liabilities or obligations with respect to the Gateway Agreements being assigned to Telesat
hereunder other than as set forth in the terms and conditions of such Gateway Agreements, nor has
LCGC waived or modified or agreed to waive or modify any terms of the Gateway Agreements. Loral
Space and LCGC represent that no other commitments or promises have been made by Loral Space or
LCGC or their Affiliates with respect to the procurement, operation or sale of capacity on the
ViaSat-1 satellite other than as set forth in this Agreement, the Space Segment Assignment
Agreement and the Barrett Assignment Agreement.

3.1.2 Authority. Each of LCGC and Loral Space has the requisite power and authority
and has taken all action necessary in order to execute and deliver this Agreement, to perform all
of its obligations hereunder, and to consummate the transactions contemplated by this Agreement,
including, but not limited to, obtaining any requisite consents to the assignment by LCGC of the
Gateway Agreements to Telesat from the counterparties to the Gateway Agreements. The execution and
delivery by each of Loral Space and LCGC of this Agreement and the performance of its obligations
hereunder have been duly authorized by all necessary and proper corporate action. This Agreement
has been, and each other document to be delivered by LCGC and Loral Space pursuant to this
Agreement will be, duly executed and delivered by each of Loral Space and LCGC and, assuming the
due authorization, execution and delivery hereof by Telesat, this Agreement and each such other
document shall constitute a legal, valid and binding obligation of each of Loral Space and LCGC,
enforceable against each of Loral Space and LCGC in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of
creditors generally and the availability of equitable remedies.

3.1.3 Gateway Agreements. Schedule 1 of this Agreement sets forth all the Gateway
Agreements. So far as LCGC is aware, the Gateway Agreements are legal, valid and binding, and in
full force and effect, in accordance with their respective terms and none of the counterparties
thereto has cancelled or given written notice that it intends to cancel. LCGC has performed, and
as far as LCGC is aware, each counterparty to the Gateway Agreements has performed, in all material
respects, its respective obligations under each Gateway Agreement. No material default exists (or,
but for the passage of time or the giving of notice, would exist) under any Gateway Agreement on
the part of LCGC or, so far as LCGC is aware, on the part of any counterparty to said Gateway
Agreements.

3.1.4 No Conflicts; No Default. The execution and delivery of this Agreement by LCGC
and Loral Space does not, and the performance by LCGC and Loral Space of the obligations to be
performed by them hereunder and the consummation by LCGC and Loral Space of the transactions
contemplated by this Agreement will not, constitute or result in (i) a breach or violation of, or a
default under, the articles, by-laws or the comparable governing instruments of LCGC and Loral
Space; (ii) a material breach or violation of, a default under, the triggering of any payment or
other material obligation pursuant to, the acceleration of (with or without the giving of notice or
the lapse of time) any provision of any Gateway Agreement, or create in any party the right to
accelerate, terminate, modify or cancel, require any notice or give rise to a loss of any benefit
under any Gateway Agreement; (iii) a material breach or violation of any law or regulation to which
LCGC and Loral Space is subject; (iv) any material and adverse change in the rights or obligations
of LCGC under any Gateway Agreement, or under any permit or license; or (v) the creation of any
lien or encumbrance on, or the forfeiture of, any Gateway Agreement.

3.1.5 Accuracy of Information. LCGC represents that the information, including without
limitation the financial and other information relating to the Gateway Agreements, contained in the
Disclosure Schedule is accurate. So far as LCGC is aware, after due inquiry, no representation,
warranty or statement made by it in this Agreement, or in any Schedule, statement or certificate
furnished to Telesat pursuant to this Agreement (including the Disclosure Schedule) contains any
untrue statement of material fact, or omits as of the Effective Date to state a material fact
necessary to make the representations, warranties or statements contained herein or therein, not
misleading.

3.1.6 Governmental Proceedings, Litigation, Laws and Licenses. So far as LCGC and
Loral Space are aware, there is not in effect any judgment, ruling, order, writ, decree,
stipulation or injunction by or with any governmental entity or agency to which LCGC and Loral
Space or any of their Affiliates is party or by which LCGC and Loral Space or any of their
Affiliates or any properties or assets of any of the foregoing is bound and which relates to or
affects the Gateway Agreements, or this Agreement or the transactions contemplated hereby. Neither
LCGC and Loral Space nor any of their Affiliates is party to, engaged in or, to the knowledge of
either of them, threatened with any legal action or proceeding, claim or complaint which relates to
or affects the Gateway Agreements, this Agreement or the transactions contemplated hereby, and
neither of them has any knowledge of any event or condition which would reasonably be expected to
result in any such legal action or proceeding or that would reasonably be expected to prevent, or
to materially hinder, modify or delay, the transactions contemplated by this Agreement. So far as
LCGC and Loral Space are aware, neither of them or any of their Affiliates is in default under or
with respect to any judgment, ruling, order, writ, decree, stipulation or injunction of the type
described in this Section 3.1.6 relating to this Agreement or the Gateway Agreements.

3.2 Notwithstanding anything in this Agreement to the contrary, LCGC and Loral Space, as
applicable, shall indemnify, hold harmless, and defend (at Telesat’s request), Telesat and its
Affiliates from and against any and all Losses suffered or incurred by Telesat or its Affiliates as
a result of or arising directly or indirectly out of or in connection with any breach of the
foregoing representations or warranties. In no event shall the liability of LCGC and Loral Space
for all Losses under this Agreement exceed the amount of SIXTY ONE MILLION, TWO HUNDRED THOUSAND US
DOLLARS ($61,200,000 USD) less any amounts paid to Telesat IOM or Telesat Canada pursuant to (i)
this Agreement, (ii) the Space Segment Assignment Agreement or (iii) the Barrett Assignment
Agreement, whether paid with respect to an indemnification obligation, direct damages or otherwise.

3.3 Telesat represents and warrants to LCGC and Loral Space, as of the Effective Date, as
follows:

3.3.1 Authority. Telesat has the requisite power and authority and has taken all
action necessary in order to execute and deliver this Agreement, to perform all of its obligations
hereunder, and to consummate the transactions contemplated by this Agreement. The execution and
delivery by Telesat of this Agreement has been duly authorized by all necessary and proper
corporate action. This Agreement has been, and each other document to be delivered by Telesat
pursuant to this Agreement will be, duly executed and delivered by Telesat and, assuming the due
authorization, execution and delivery hereof by LCGC and Loral Space, this Agreement shall
constitute a legal, valid and binding obligation of Telesat, enforceable against Telesat in
accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other
laws affecting the rights of creditors generally and the availability of equitable remedies.

3.3.2 No Conflicts; No Default. The execution and delivery of this Agreement by
Telesat does not, and the performance by Telesat of the obligations to be performed by it hereunder
and the consummation by Telesat of the transactions contemplated by this Agreement will not,
constitute or result in (i) a breach or violation of, or a default under, the articles, by-laws or
the comparable governing instruments of Telesat; (ii) a material breach or violation of, a default
under, the triggering of any payment or other material obligation pursuant to, the acceleration of
(with or without the giving of notice or the lapse of time) any provision of any agreement to which
Telesat is party or may be bound, or create in any party the right to accelerate, terminate, modify
or cancel, require any notice or give rise to a loss of any benefit under any such agreement; or
(iii) a material breach or violation of any law or regulation to which Telesat is subject.

3.3.3 Governmental Proceedings, Litigation, Laws and Licenses. So far as Telesat is
aware, there is not in effect any judgment, ruling, order, writ, decree, stipulation or injunction
by or with any governmental entity or agency to which Telesat or any of its Affiliates is party or
by which Telesat or any of its Affiliates or any properties or assets of any of the foregoing is
bound and which relates to or affects any of the Gateway Agreements or this Agreement or the
transactions contemplated hereby. Neither Telesat nor any of its Affiliates is party to, engaged
in or, to the knowledge of any of them, threatened with any legal action or proceeding, claim or
complaint which relates to or affects any of the Gateway Agreements, this Agreement or the
transactions contemplated hereby, and neither Telesat nor any of its Affiliates has any knowledge
of any event or condition which would reasonably be expected to result in any such legal action or
proceeding or that would reasonably be expected to prevent, or to materially hinder, modify or
delay, the transactions contemplated by this Agreement. So far as Telesat is aware neither Telesat
nor any of its Affiliates is in default under or with respect to any judgment, ruling, order, writ,
decree, stipulation or injunction of the type described in this Section 3.3.3 relating to this
Agreement or the Gateway Agreements.

3.4 Notwithstanding anything in this Agreement to the contrary, Telesat shall indemnify, hold
harmless, and defend (at LCGC’s or Loral Space’s request), LCGC, Loral Space and their Affiliates
from and against any and all Losses suffered or incurred by LCGC, Loral Space or their Affiliates
as a result of or arising directly or indirectly out of or in connection with any breach of the
foregoing representations or warranties.

4.0 Miscellaneous

4.1 Governing Law. This Agreement shall be governed by and construed under the laws
of the province of Ontario, Canada, without giving effect to its conflict of law principles, and
the laws of Canada applicable therein.

4.2 Further Assurances. Each Party to this Agreement covenants and agrees that, from
time to time after the date hereof, it will execute and deliver all such documents, including all
such additional conveyances, transfers, consents and other assurances, and do all such other acts
and things as any other Party hereto, acting reasonably, may from time to time request be executed
or done in order to better evidence or perfect or effectuate any provision of this Agreement or any
of the respective obligations intended to be created hereby or thereby. LCGC hereby constitutes
and appoints, effective as of the Effective Date, Telesat and its successors and assigns as the
true and lawful attorney of LCGC with full power of substitution in the name of Telesat or in the
name of LCGC but for the benefit of Telesat (a) to collect for the account of Telesat all amounts
due or accounts receivable under the Gateway Agreements and (b) to institute and prosecute all
proceedings which Telesat may in its discretion deem proper in order to collect such amounts or
accounts receivable or to assert or enforce any right, title or interest in, to or under the
Gateway Agreements and to defend or compromise any and all actions, suits or proceedings in respect
of the Gateway Agreements. Telesat shall be entitled to retain for its own account any amounts
collected pursuant to the foregoing powers, including any amounts payable as interest in respect
thereof.

4.3 Notices. All notices hereunder shall be made by written notification, by hand,
mail, recognized courier service, or electronic mail transmission, and to the address(es) set forth
below and shall be deemed to be received upon actual delivery by a recognized courier service or
personal delivery or upon confirmation of a facsimile or electronic mail transmission:

If to Loral Space, to:

Loral Space & Communications Inc.

600 Third Avenue

New York, New York 10016

Phone: 212-697-1105

Facsimile: 212-338-5320

Attention: Senior Vice President, General Counsel and Secretary

If to LCGC, to:

Loral Canadian Gateway Corporation

600 Third Avenue

New York, New York 10016

Phone: 212-697-1105

Facsimile: 212-338-5320

Attention: Senior Vice President and Secretary

If to Telesat, to:

Telesat Canada

1601 Telesat Court

Ottawa, Ontario K1B 5P4

Phone: 613-748-8797

Facsimile: 613-748-8712

Attention: Vice President, Law

Each Party may by notice in accordance with this Section change the person or address to which such
notices, requests or other communications are to be given.

4.4 Non-Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any Party, any right, remedy, power, or privilege under this Agreement
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power, or privilege. The rights, remedies, powers, and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers, and privileges provided
by law.

4.5 Succession. This Agreement shall inure to the benefit of and be binding upon the
respective successors and permitted assigns of the Parties hereto.

4.6 Headings. The headings used throughout this Agreement are for convenience only,
are not a part of this Agreement, and shall have no effect upon the construction and/or
interpretation of this Agreement.

4.7 Counterparts. This Agreement may be executed in two or more identical
counterparts, each of which shall constitute an original, binding version of this Agreement, and
all such counterparts shall constitute but one and the same agreement. The signature of each Party
shall appear on each counterpart. Facsimile signatures shall be considered valid.

4.8 Severability. Any provision of this Agreement found to be unenforceable or
invalid by a court of competent jurisdiction shall in no way affect the validity or enforceability
of any other provision except that if such invalid or unenforceable provision provided a material
benefit to a Party hereto, such Party shall have the right to terminate the Agreement without
liability to the other.

4.9 Third Party Beneficiary/Independent Contractor. Nothing in this Agreement shall
be deemed or construed by any Party, or by any third party, to create any rights, obligations, or
interests in any third party, or to create any association, partnership, joint venture,
principal/agent relationship, employer/employee relationship, or any fiduciary relationship of any
kind among the Parties.

4.10 Amendment. This Agreement may not be amended or terminated, and no provision
hereof may be waived, except by a writing signed by each of the Parties hereto.

4.11 Effective Date. The Effective Date shall be the later of (a) the date of
execution of this Agreement, (b) the date that the Barrett Assignment Agreement becomes effective
and (c) the date that the Space Segment Assignment Agreement becomes effective.

4.12 Entire Agreement. This Agreement, along with the Schedules hereto, constitutes
the entire agreement among LCGC, Loral Space and Telesat relative to the subject matter of this
Agreement, and this Agreement may be altered, amended, or revoked only by an instrument in writing
signed by LCGC, Loral Space and Telesat. LCGC, Loral Space and Telesat agree that any prior or
contemporaneous oral and written agreements between and among themselves and their agents and
representatives relative to the subject of this Agreement are superseded and replaced by this
Agreement.

[Remainder of page left intentionally blank]

1

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

	 	 	 
	LORAL SPACE & COMMUNICATIONS INC.

	By:

	 	/s/ Avi Katz
	
 
	 	 

	 	 	Name: Avi Katz

Title: Senior Vice President, General Counsel and

Secretary

	 	 	 
	LORAL CANADIAN GATEWAY CORPORATION

	By:

	 	/s/ Avi Katz
	
 
	 	 

	 	 	Name: Avi Katz

Title: Senior Vice President and Secretary

	 	 	 
	TELESAT CANADA

	By:

	 	/s/ Christopher DiFrancesco
	
 
	 	 

	 	 	Name: Christopher DiFrancesco

Title: Vice President, General Counsel and Secretary

2

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