Document:

Employment Agreement between Hughes Networks Systems, LLC and Adrian Morris

 Exhibit 10.21 
  
 EMPLOYMENT AGREEMENT 
  
 EMPLOYMENT AGREEMENT (as amended, modified, restated or supplemented from time to time, the “AGREEMENT”), dated as of April 23, 2005, by
and among Hughes Network Systems, LLC, a Delaware limited liability company, (the “COMPANY”), and the individual set forth on ATTACHMENT 1 (the “EXECUTIVE”). 
  
 WHEREAS, the Company entered into a Contribution and Membership Interest Purchase Agreement (as amended, modified, restated
or supplemented from time to time, the “TRANSACTION AGREEMENT”) dated as of December 3, 2004, with The DirecTV Group, Inc., a Delaware corporation (“DTV”), Hughes Network Systems, Inc., a Delaware corporation
(“HNS”), and SkyTerra Communications, Inc., a Delaware corporation; 
  
 WHEREAS, the Executive is currently party to the Prior Agreements identified on ATTACHMENT 1; and 
  
 WHEREAS, subject to the consummation of the transactions contemplated by the Transaction Agreement, the Company desires to employ the Executive on a
full-time basis and the Executive desires to be so employed by the Company. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein (including, without limitation, the Company’s employment of the Executive and the advantages and benefits thereby inuring to
the Executive) and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows: 
  
 1. EMPLOYMENT OF THE EXECUTIVE. 
  
 1.1 EMPLOYMENT BY THE COMPANY. The Company hereby employs the Executive in
the position set forth on ATTACHMENT 1 and the Executive hereby accepts such employment with the Company. During the Employment Period (as defined in Section 3), the Executive shall directly and exclusively report to, and perform such duties
and services for the Company (including supervising the Company’s investment in its subsidiaries and affiliates (such subsidiaries and affiliates, collectively, “AFFILIATES”)), as may be designated from time to time by the individuals
referred to on ATTACHMENT 1. During the Employment Period, the Executive shall devote all of his business time and attention to his employment under this Agreement; PROVIDED, HOWEVER, that the Executive may continue to engage in the outside
activities set forth on ATTACHMENT 1 during the Employment Period. The Executive acknowledges that he shall be required to travel on business in connection with the performance of his duties hereunder. 
  
 1.2 LOCATION. During the Employment Period, the Executive’s principal
place of employment shall be Germantown, Maryland; PROVIDED, HOWEVER, that the Executive shall be required to travel in a manner consistent with his employment as a senior executive employed in a world-wide business. 
  

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 2. COMPENSATION AND BENEFITS. 
  
 2.1 (a) SALARY. During the Employment Period, the Company shall pay the Executive for services during his employment
under this Agreement a base salary of no less than the annual rate set forth on ATTACHMENT 1 (“BASE SALARY”). The Base Salary received by the Executive shall be reviewed by the Compensation Committee (the “COMPENSATION
COMMITTEE”) of the Board of Managers of the Company (the “BOARD”) no less frequently than annually. If at any time a Compensation Committee does not exist, all references herein to the “Compensation Committee” shall be
deemed to be the “Board.” Any and all increases to the Executive’s Base Salary shall be determined by the Compensation Committee, in its sole discretion. During the Employment Period, such Base Salary shall be payable in accordance
with the Company’s customary payroll policies in force at the time of payment, less any required or authorized payroll deductions. The Base Salary may be increased, but not decreased, during the Employment Period. 
  
 (b) ANNUAL BONUS. For each fiscal year during the Employment Period, the
Executive shall be eligible to receive an annual discretionary bonus with a target amount (the “TARGET BONUS AMOUNT”) up to the percentage of his Base Salary set forth on ATTACHMENT 1, subject to his satisfaction of objective performance
criteria that have been pre-established by the Managing Member (such as minimum EBITDA, free cash flow, backlog, and accomplishment of strategic goals (e.g., the successful launch and implementation of Spaceway 3)). For each fiscal year during the
Employment Period, the Compensation Committee may award an additional bonus, in its sole discretion, to the Executive of up to 50 percent of the Executive’s Target Bonus Amount, in the event of the Executive’s significant out-performance
of objective performance criteria that have been pre-established by the Compensation Committee. 
  
 (c) EQUITY COMPENSATION. The Executive shall purchase the number of Class B Units of the Company as set forth on ATTACHMENT 1 (the “RESTRICTED
UNITS”) at the closing (the “CLOSING”) of the transactions contemplated by the Transaction Agreement, having the terms and conditions provided below and such other terms and conditions not inconsistent therewith as may be
provided for in the Restricted Unit Purchase Agreement attached hereto as EXHIBIT A (as amended, modified, supplemented or restated from time to time, the “RESTRICTED UNIT AGREEMENT”), and the Amended and Restated Limited Liability Company
Agreement of the Company (as amended, modified, supplemented or restated from time to time, the “LLC AGREEMENT”). The Executive acknowledges that the Restricted Units will be subject to the terms and conditions set forth in this Agreement,
the Restricted Unit Agreement and the LLC Agreement and shall be subject to a substantial risk of forfeiture and restrictions on transferability. 
  
 (d) TIME-VESTING UNITS. 50.0 percent of the Restricted Units issued to the Executive hereunder (the “TIME-VESTING UNITS”) shall vest over sixty
months with 10 percent of the Time Vesting Units vesting on the first day of the 7th month following the Closing and the remainder of the Time Vesting Units vesting in fifty-four equal months installments of 1.6667 percent commencing on the first
day of the 8th month following the Closing, subject to the Executive’s continued employment on the date of vesting and to Section 4 below. Notwithstanding anything to the contrary contained herein, if the Executive is employed by the

  

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 Company on the date that the Investor (together with its affiliates) holds less than 20% of the aggregate equity
interests, measured by vote and value, of the Company (an “INVESTOR DILUTION TRANSACTION”), then all of the Time Vesting Units shall vest on the later to occur of (i) the third anniversary of the Closing or (ii) the first
anniversary of the date on which the Investor Dilution Transaction occurs. For the avoidance of doubt, following the occurrence of an Excluded Event (as defined below), but subject to the other provisions herein, the Time Vesting Units shall
continue to vest in accordance with and subject to the terms and conditions set forth herein. 
  
 (e) PERFORMANCE UNITS. The remaining 50.0 percent of the Restricted Units granted to the Executive hereunder (the “PERFORMANCE UNITS”) shall vest as follows: (X) 50.0 percent of the Performance Units
shall vest on the Test Date (as defined below) if and when the Investors have received a Cumulative Total Return as set forth below of at least 3.0 times the amount of their aggregate Capital Contributions (as defined in the LLC Agreement) as of the
Test Date and (Y) the remaining 50.0 percent of the Performance Units shall vest on the Test Date if and when the Investors have received a Cumulative Total Return of at least 5.0 times the amount of their aggregate Capital Contributions as of
the Test Date, in each case, subject to the Executive’s continued employment as of the Test Date and to Section 4 below. If the Performance Units remain outstanding but not yet vested as of the fifth anniversary of the Closing, they shall
be forfeited upon such anniversary; PROVIDED, HOWEVER, that in the event that any Performance Units remain outstanding upon such anniversary and the valuation process referred to in the definition of “CUMULATIVE TOTAL RETURN” has not yet
been completed in accordance with the terms hereof, the forfeiture of such Performance Units shall be tolled until the completion of such valuation process. For the avoidance of doubt, following the occurrence of an Excluded Event, but subject to
the other provisions herein, the Performance Units shall continue to vest in accordance with and subject to the terms and conditions set forth herein. 
  
 (f) DEFINED TERMS. 
  
 (A) CUMULATIVE TOTAL RETURN. The “CUMULATIVE TOTAL RETURN” means the sum (net of all transaction and valuation costs) of (i) all dividends
and other distributions (including the aggregate amount of the Quarterly Management Fee Payments (as defined in the LLC Agreement), but specifically excluding tax distributions and expense reimbursement payments) paid to the Investors with respect
to the Class A Units, (ii) the gross proceeds of any sale of Class A Units by any of the Investors, and (iii) solely for purposes of determining Cumulative Total Return as of the fifth anniversary of the Closing, the fair market
value of the Class A Units held by the Investors on the fifth anniversary of the Closing, which will be determined by a nationally recognized third party valuation firm selected by the Managing Member. Notwithstanding anything in this Agreement
to the contrary, upon a Significant Event Cumulative Total Return shall be finally determined and there shall be no further opportunity to vest in any Performance Units. 
  
 (B) INVESTORS. The “INVESTORS” means SkyTerra and its successors and assigns (other than assigns of SkyTerra
resulting from a Change in Control). 
  

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 (C) SIGNIFICANT EVENT. A “SIGNIFICANT EVENT” means a Change of Control or a liquidation,
dissolution or winding up of the Company in accordance with the LLC Agreement. Notwithstanding the foregoing, a Significant Event shall not include (i) the consummation of any public offering of the securities of the Company pursuant to a
registration statement declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended or (ii) a SkyTerra Acquisition (as defined in the Restricted Unit Agreement) (each of (i) and (ii), an
“EXCLUDED EVENT”). 
  
 (D) TEST DATE. The “TEST
DATE” means the date that is the earlier to occur of (i) the fifth anniversary of the date hereof and (ii) the consummation of a Significant Event. 
  
 (g) ADJUSTMENT. In the event of any equity split, reverse split, equity distribution, merger, consolidation,
recapitalization or similar event affecting the capital structure of the Company, the number and kind of equity interests (or other property, including without limitation cash) subject to the Restricted Units shall be equitably adjusted as
determined in good faith by the Compensation Committee to prevent the dilution or enlargement of the value of the Executive’s Restricted Units. 
  
 (h) BENEFITS. During the Employment Period, the Executive shall be eligible to participate, on the same basis and at the same level as other similarly
situated senior executives of the Company generally, in any group insurance, hospitalization, medical, vision, health and accident, disability, life insurance, fringe benefit and retirement plans or programs of the Company now existing or hereafter
established to the extent that he is eligible under the general provisions thereof. The Executive shall receive credit for service prior to the Closing for all purposes to the extent provided in EXHIBIT J to the Transaction Agreement. During the
Employment Period, the Executive shall be entitled to a number of days of vacation time annually as set forth on ATTACHMENT 1, consistent with the Company’s policies at such time as may be mutually agreed by the parties hereto. 
  
 (i) EXPENSES. During the Employment Period, pursuant to the Company’s
customary reimbursement policies in force at the time of payment, the Executive shall be promptly reimbursed, subject to the Executive’s presentation of vouchers or receipts therefor, for all expenses properly incurred by the Executive on
behalf of the Company in the performance of the Executive’s duties hereunder. 
  
 (j) EXECUTIVE AUTOMOBILE BENEFITS. During the Employment Period, the Company shall provide the Executive with an annual car allowance in the amount set forth on Attachment 1 (the “AUTO ALLOWANCE”), which
such amount shall be paid in accordance with the policies or practices of the Company. 
  
 3. EMPLOYMENT PERIOD. The Executive’s employment under this Agreement shall commence on the Closing and shall terminate on the second anniversary of the date thereof, unless terminated earlier pursuant to
Section 4 (the “INITIAL EMPLOYMENT PERIOD”). Unless written notice of either party’s desire to terminate this Agreement has been given to the other party at least ninety days but no more than one hundred and twenty days prior to
the expiration of the Initial Employment Period (or any renewal thereof contemplated by this 
  

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 sentence), the term of the Executive’s employment hereunder shall be automatically renewed for successive one-year
periods (such term, including the Initial Employment Period, as it may be extended, the “EMPLOYMENT PERIOD”). Notice of non-renewal provided by the Company shall be treated as a termination by the Company without Cause for purposes of
Sections 4.4(a), (b) and (c) and Section 4.10, and the Company shall have no additional obligation to the Executive other than the payment of the Accrued Obligations (as defined below), except as otherwise required by law or the terms
of the Company’s benefit plans. Notice of non-renewal provided by the Executive shall be treated as a termination by the Executive without Good Reason for purposes of Section 4.6(a). 
  
 4. TERMINATION AND FORFEITURE OF PAYMENTS AND BENEFITS. 
  
 4.1 TERMINATION BY THE COMPANY FOR CAUSE. The Executive’s employment
with the Company may be terminated at any time by the Company for Cause. Upon such a termination, the Company shall have no obligation to the Executive pursuant to this Agreement or any other agreement executed in connection herewith other than the
payment of the Executive’s (i) earned but unpaid base salary and any bonus earned in accordance with the terms of the applicable bonus plan but which has not been paid, (ii) accrued but unused vacation, and (iii) accrued but
unreimbursed documented business expenses incurred in accordance with Company policies, in each case, through the effective date of such termination (the “ACCRUED OBLIGATIONS”), except as otherwise required by law or by the terms of the
Company’s benefit plans. All Restricted Units that have not yet been vested as of the date of termination, shall be forfeited as of the date of termination. Any Restricted Units that have vested may be repurchased by the Company at any time
following such termination of employment at a price per Restricted Unit equal to the lesser of (i) the greater of (1) (x) fair market value thereof as determined by the Managing Member in its reasonable and good faith discretion (the
“FAIR MARKET VALUE”) of such Restricted Unit on the date of the termination minus (y) the value of any dividends or other distributions previously paid to the Executive in respect of such Restricted Unit (subject to equitable
adjustment in the Company’s discretion to reflect equity distributions, corporate transactions, or similar events, to the extent not reflected in (y)) and (2) $0, and (ii) (x) the original purchase price paid for such Restricted
Unit by the Executive minus (y) the value of any dividends or other distributions previously paid to the Executive in respect of such Restricted Unit, but in no event less than $0. 
  
 For purposes of this Agreement, the term “CAUSE” shall mean any of the following: (i) the Executive’s
failure to perform materially his duties under this Agreement (other than by reason of illness or disability), (ii) the Executive’s commission of any felony, or his commission of any other crime involving moral turpitude or his commission
of a material dishonest act or fraud against the Company or any of its Affiliates, (iii) the Executive’s use or sale of illegal drugs, (iv) any act or omission by the Executive that (A) is the result of his misconduct or gross
negligence and that is, or may reasonably be expected to be, materially injurious to the financial condition, business or reputation of the Company or any of its Affiliates or (B) is the result of his willful, reckless or grossly negligent act
or omission occurring during the Employment Period or during the one-year period prior to the date hereof and results in a violation of any International Trade Law (as defined in the Transaction Agreement), (v) the Executive’s breach of
any material provision of this Agreement, the Conflict of Interest and 
  

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 Confidentiality Agreement, the Restricted Unit Agreement or the LLC Agreement, or (vi) the Executive’s exercise
of his right to revoke the release set forth in, and in accordance with, Section 9 hereof. Any such occurrence described in clauses (i), (iv)(B) or (v) of the preceding sentence shall constitute “CAUSE” only after the Company has
given the Executive written notice that the Company has elected to terminate his employment for Cause, which notice shall specify the particular acts or failures to act on the basis of which the decision to so terminate employment was made. In the
case of a termination for Cause described in clause (i), (ii), or (iv), the Executive shall be given the opportunity to meet with the Board within twenty (20) business days of receipt of such notice to defend such acts or failures to act.

  
 4.2 PERMANENT DISABILITY. If, during the Employment Period,
the Executive becomes permanently disabled within the meaning of the Company’s applicable long-term disability plan, the Company shall have the right to terminate the Executive’s employment with the Company upon written notice to the
Executive. Upon such a termination, the Company shall have no obligation to the Executive other than payment of the Accrued Obligations and to treat the Restricted Units as described below in this Section 4.2, except as otherwise required by
law or by the terms of the Company’s benefit plans. Any Time Vesting Units that are not vested as of the date of termination shall vest as of the date of termination. If the Performance Units are not vested as of the date of termination, the
Performance Units will remain outstanding until the 180th day following the date of termination (not to exceed the
fifth anniversary of the Closing), and if the Test Date occurs prior to the last day of such 180-day period and the Investors meet the applicable Cumulative Total Return goal as of the Test Date, the Executive will vest in a number of Performance
Units at such time as each applicable Cumulative Total Return goal is met. All other Performance Units will be forfeited. If any Performance Units remain outstanding but have not yet vested as of the expiration of the foregoing 180-day period, they
shall be forfeited. Section 4.10 shall apply to Company repurchases of vested Restricted Units. Notwithstanding the foregoing, the Board, in its sole discretion, may permit the vesting of any Performance Units that are not vested as of the date
of termination. 
  
 4.3 DEATH. The Executive’s employment
with the Company shall terminate automatically upon the death of the Executive and the Company shall have no obligation to the Executive or the Executive’s estate other than payment of the Accrued Obligations and to treat the Restricted Units
as described below in this Section 4.3, except as otherwise required by law or by the terms of the Company’s benefit plans. Any Time Vesting Units that are not vested as of the date of termination shall vest as of the date of termination.
If the Performance Units are not vested as of the date of termination, the Performance Units will remain outstanding until the 180th day following the date of termination (not to exceed the fifth anniversary of the Closing), and if the Test Date occurs prior to the last day of such 180-day period and the Investors meet the applicable Cumulative Total Return goal
as of the Test Date, the Executive will vest in a number of Performance Units at such time as each applicable Cumulative Total Return goal is met. All other Performance Units will be forfeited. If any Performance Units remain outstanding but have
not yet vested as of the expiration of the foregoing 180-day period, they shall be forfeited. Section 4.10 shall apply to Company repurchases of vested Restricted Units. Notwithstanding the foregoing, the Board, in its sole discretion, may
permit the vesting of any Performance Units that are not vested as of the date of termination. 
  

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 4.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. The Executive’s employment with the Company may be
terminated at any time by the Company without Cause. In such event, the Executive shall have the rights set forth in the subparagraphs below. 
  
 (a) SEVERANCE. Subject to the Executive’s continued compliance with his obligations under this Agreement and the other agreements executed in
connection herewith, the Company shall have no obligation to the Executive other than: (i) the payment of the Accrued Obligations; (ii) the payment of an amount equal to the sum of the Executive’s annual Base Salary (as in effect as
of the date of termination) plus the Target Bonus Amount that would have been payable to the Executive for the calendar year in which such termination occurs as if the Executive were employed by the Company at the end of such year;
(iii) treatment of the Restricted Units as described below in Section 4.4(b) and (c) and Section 4.10; (iv) the continuation of the Executive’s participation in all Company health and medical plans in which the
Executive was participating immediately prior to the date of termination, on the same basis as other senior executives of the Company, for a period twelve months following such date of termination; and (vi) reasonable executive outplacement
benefits, except as otherwise required by law or by the terms of the Company’s benefit plans (excluding severance plans). All payments pursuant to this Section 4.4(a) shall be made in a lump sum; PROVIDED, HOWEVER, that the payment of the
bonus pursuant to Section 4.4(a)(ii) shall be paid at the time and in the manner bonuses are paid to the executive officers of the Company for the year in which such termination occurred. In the event that the Executive is eligible to receive
the severance benefits provided for by this Section 4.4(a), the Executive shall not be eligible to receive severance benefits under any other Company plan, policy or agreement. 
  
 (b) TIME VESTING UNITS. To the extent that any Time Vesting Units remain unvested as of the date that is six (6) months
following such termination, such unvested Time Vesting Units shall be forfeited as of such date; PROVIDED, that if the termination without Cause occurs within the one-year period after a Change of Control (as defined in Section 4.8 below), all
unvested Time Vesting Units shall vest as of the date of termination. 
  
 (c) PERFORMANCE UNITS. If the Performance Units are not vested as of the date of termination, the Performance Units will remain outstanding until the 180th day following the date of termination (not to exceed the fifth anniversary of the
Closing), and if the Test Date occurs prior to the last day of such 180-day period and the Investors meet the applicable Cumulative Total Return goal as of the Test Date, the Executive will vest in a number of Performance Units at such time as each
applicable Cumulative Total Return goal is met. All other Performance Units will be forfeited. In the event that (i) the Company consummates an initial public offering of its equity interests prior to the third anniversary of the Closing and
(ii) the Executive’s employment with the Company is terminated without Cause after the third anniversary of the Closing, then the unvested Performance Units shall remain outstanding until the Test Date. If the Performance Units remain
outstanding but not yet vested as of the fifth anniversary of the Closing, they shall be forfeited. 
  
 4.5 TERMINATION BY THE EXECUTIVE FOR GOOD REASON. (a) During the Employment Period, the Executive’s employment with the Company may be
terminated by the Executive for Good Reason, if the Executive provides the Company with 
  

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 notice within 90 days following the Executive’s knowledge of the event constituting Good Reason. In the event that
the Executive terminates his employment with the Company for Good Reason, the Executive shall be entitled to the same payments and benefits that he would have been entitled to receive under Section 4.4 if his employment had been terminated by
the Company without Cause and the Company shall be entitled to the repurchase rights thereunder. 
  
 (b) For purposes of this Agreement, the term “GOOD REASON” shall mean any of the following conditions or events without the Executive’s
prior consent: (i) a material diminution of the Executive’s position or responsibilities that is inconsistent with the Executive’s title (PROVIDED that (x) any change in the Executive’s position or responsibilities that
occurs as a result of a sale of the Company or its significant assets or (y) any change in the Executive’s position or responsibilities pursuant to an internal reorganization, in each case, following which the Executive’s level of
position at the Company is not materially diminished shall not give rise to Good Reason under clause (i) or clause (ii) of this definition), (ii) a material and willful breach by the Company of any terms of this Agreement,
(iii) a reduction in the Executive’s Base Salary or the percentage of his Base Salary eligible as a target bonus, or (iv) a relocation of the Executive’s principal place of business more than fifty (50) miles away from the
location set forth as the Executive’s principal place of business in Section 1.2. Any such occurrence shall constitute “GOOD REASON” only after the Executive has given the Company written notice of, and twenty (20) business
days opportunity to cure, such violation after receipt by the Company of such written notice, and then only if such occurrence is not cured. 
  
 4.6 TERMINATION BY THE EXECUTIVE WITHOUT GOOD REASON. 
  
 (a) The Executive may voluntarily resign from his employment with the Company without Good Reason, PROVIDED that the Executive shall provide the Company
with ninety (90) days’ advance written notice (which notice requirement may be waived, in whole or in part, by the Company in its sole discretion) of his intent to terminate. Upon such a termination, the Company shall have no obligation to
the Executive pursuant to this Agreement or any other agreement executed in connection herewith other than the payment of the Accrued Obligations, except as otherwise required by law or by the terms of the Company’s benefit plans. All
Restricted Units that have not yet been vested as of the date of termination shall be forfeited as of the date of termination. Subject to Section 4.6(b), any Restricted Units that have vested may be repurchased by the Company at any time
following such termination of employment at a price per Restricted Unit equal to the lesser of (i) the (x) Fair Market Value of such Restricted Unit on the date of the termination minus (y) the value of any distributions previously
paid to the Executive in respect of such Restricted Unit (subject to equitable adjustment in the Company’s discretion to reflect equity distributions, corporate transactions, or similar events, to the extent not reflected in (y)) and
(ii) the original purchase price paid for such Restricted Unit by the Executive. 
  
 (b) If the Executive terminates his employment with the Company pursuant to this Section 4.6 and represents, warrants and covenants (the “RETIREMENT COVENANT”) that he is permanently retiring and does not
intend to, and will not, engage in any business or professional activity whether as an employer, consultant or owner (excluding the Executive’s Management of his owned real estate or his personal portfolio of publicly traded securities), then
any Restricted Units that have vested may be repurchased by the Company at any time following 
  

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 such termination of employment at a price per Restricted Unit regardless of the value of the Escrow Amount (as defined
below) equal to the (x) Fair Market Value of such Restricted Unit on the date of the termination minus (y) the value of any distributions previously paid to the Executive in respect of such Restricted Unit (subject to equitable adjustment
in the Company’s discretion to reflect equity distributions, corporate transactions, or similar events, to the extent not reflected in (y)). All amounts (whether cash, securities or other property) (the “ESCROW AMOUNT”)
(i) payable upon the exercise of the repurchase right set forth in the prior sentence and (ii) derived from the Restricted Units whether from distribution, a Liquidity Event resulting after the date that the Executive terminates his
employment with the Company (the “RETIREMENT DATE”) pursuant to this Section 4.6(b) or otherwise, in each case, shall be deposited into an escrow account under the sole control of the Company. The Escrow Amount shall be promptly
released to the Executive on the fifth anniversary of the Retirement Date (or to his estate upon his death) if the Executive has complied with the Retirement Covenant in all respects. If the Executive violates the Retirement Covenant at any time
prior to the earlier of (x) the fifth anniversary of the Retirement Date and (y) the date of his death, the Escrow Amount shall be promptly released to the Company for the sole benefit of the Company and the Executive shall have no right
or claim to the Escrow Amount or any other rights with respect to the Restricted Units repurchased pursuant by the Company pursuant to this Section 4.6(b). For the purposes of this Agreement, the term “LIQUIDITY EVENT” shall mean the
consummation of an Excluded Event, a Significant Event, a Sale of the Company (as defined in the Restricted Unit Agreement), an Exchange (as defined in the Restricted Unit Agreement) or any other event or transaction resulting in the purchase, sale,
transfer or disposition of the Restricted Units (or any securities issued in exchange for, or substitution of, the Restricted Units) after the Retirement Date. 
  

4.7 RELEASE OF CLAIMS AND COOPERATION. As a condition to receiving any payments set forth in Section 4.2 through Section 4.5, the Executive
(or his executor) shall be required to execute and not revoke a waiver and release of claims in favor of the Company and its Affiliates, in the form attached hereto as EXHIBIT B and, to the extent reasonably necessary, for a 180-day period following
such employment termination, shall make himself reasonably available to provide transition services and consultation to the Company, subject to his other business and personal commitments. 
  
 4.8 DEFINITION OF CHANGE OF CONTROL. A “CHANGE OF CONTROL” shall
mean (i) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended from time to time) not affiliated with the Company or its owners immediately
prior to such acquisition of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50 percent, indirectly or directly, of the equity vote of the Company (other than any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate) or (ii) consummation of an amalgamation, a merger or consolidation of the Company or any direct or indirect subsidiary thereof with any other entity or a
sale or other disposition of all or substantially all of the assets of the Company following which the voting securities of the Company that are outstanding immediately prior to such transaction cease to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity (or the entity that owns substantially all of the Company’s assets either directly or through one or more subsidiaries) or any parent or other Affiliate thereof) at 

 

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 least 50 percent of the combined voting power of the securities of the Company or, if the Company is not the surviving
entity, such surviving entity (or the entity that owns substantially all of the Company’s assets either directly or through one or more subsidiaries) or any parent or other Affiliate thereof, outstanding immediately after such transaction.
Notwithstanding the foregoing, a Change of Control shall not include a SkyTerra Acquisition or the acquisition of any assets or securities of the Company or its subsidiaries by the Investors, DTV or any of their respective Affiliates. 
  
 4.9 RESIGNATION. Upon a termination of employment, the Executive will upon
the Company’s request resign from all boards of directors and officer positions of the Company and any of its Affiliates. 
  
 4.10 REPURCHASE RIGHT. Any Restricted Units held by the Executive as a result of vesting may be repurchased (the “REPURCHASE RIGHT”) by the
Company at any time during the two-year period following (x) the date of termination of employment in the event that such Restricted Units were vested as of such termination and (y) the vesting of such Restricted Units in the event that
such vesting occurred after the date of termination of employment, each (other than Repurchase Rights exercised following a termination pursuant to Section 4.1 and 4.6) at a price per Restricted Unit equal to the Fair Market Value thereof
determined as of the date of repurchase. If the Company’s or any of its subsidiaries’ debt agreements restrict, limit or prohibit it from exercising the Repurchase Right, the foregoing two-year period shall be tolled until such time as the
Company is permitted to exercise the Repurchase Right pursuant to the terms of such debt agreements. At no time shall the Company be obligated to exercise the Repurchase Right. The Repurchase Right shall be exercised by the Company, or its designee,
by delivering to the Executive a written notice of exercise and a check in the amount of the applicable purchase price. Upon delivery of such notice and payment of the applicable purchase price, the Company, or its designee, shall become the legal
and beneficial owner of the Restricted Units being repurchased and all rights and interest therein or related thereto, and the Company, or its designee, shall have the right to transfer to its own name the number of Restricted Units being
repurchased without further action by the Executive or any of his transferees. If the Company or its designee elect to exercise the Repurchase Right pursuant to this Section 4.10 and the Executive or his transferee fails to deliver the
Restricted Units in accordance with the terms hereof, the Company, or its designee, may, at its option, in addition to all other remedies it may have, deposit the applicable purchase price in an escrow account administered by an independent third
party (to be held for the benefit of, and payment over to, the Executive or his transferee in accordance herewith) or set-off the applicable purchase price against any amount the Company or its affiliates may owe the Executive at such time,
whereupon the Company shall by written notice to the Executive cancel on its books all of the Executive’s or his transferee’s right, title and interest in and to such Restricted Units. Anything herein to the contrary notwithstanding, in
lieu of “forfeiting” any unvested Restricted Units hereunder, the Company may, but shall not be obligated to, repurchase such Restricted Units at a purchase price equal to the original purchase price paid for such Restricted Units held by
the Executive. For purposes of this Section 4.10, in the event that the Executive in good faith disputes the determination of Fair Market Value hereunder, the Managing Member shall select a regionally or nationally recognized investment banking
or valuation firm (the “VALUER”) to determine the fair market value of such Restricted Units and the Valuer’s determination shall be final and binding on all the parties. The fees and expenses of the Valuer shall be paid one-half by
the Executive and one-half by the Company. 
  

 10 

 5. COVENANTS. 
  

5.1 The Executive understands that, in the course of his employment with the Company, he will be given access to confidential information and trade
secrets including, but not limit to, discoveries, ideas, concepts, software in various stages of development, designs, drawings, specifications, techniques, models, data, source code, object code, documentation, diagrams, flowcharts, research,
development, processes, procedures, “know-how,” marketing techniques and materials, marketing and development plans, business plans, merger or acquisition investigations, customer names and other information relating to customers, price
lists, pricing policies, and financial information of the Company (“CONFIDENTIAL INFORMATION”). Confidential Information also includes any information described above which the Company obtains from another party and which the Company
treats as proprietary or designates as Confidential Information, whether or not owned or developed by the Company. The Executive agrees that during his employment by the Company and thereafter to hold in confidence and not to directly or indirectly
reveal, report, publish, disclose, or transfer any Confidential Information to any person or entity, or utilize any Confidential Information for any purpose, except in the course of the Executive’s work for the Company. The Executive agrees to
turn over all copies of Confidential Information in his control to the Company upon request or upon termination of his employment with the Company. For purposes of this Section 5.1, the “Company” shall include Affiliates of the
Company. The Executive agrees to enter into as of the Closing the Company’s general Conflict of Interest and Confidentiality Agreement set forth on EXHIBIT C. 
  
 5.2 The Executive agrees that, during his employment with the Company and for one (1) year thereafter (the
“RESTRICTED PERIOD”), he will not, either directly or indirectly, (i) hire Company employees or former employees (which shall for this purpose include any individual employed by the Company at any point during the year preceding such
hiring by the Executive or the Executive’s new employer), induce, persuade, solicit or attempt to induce, persuade, or solicit any of the Company’s employees to leave the Company’s employ, nor will he help others to do so or
(ii) induce, persuade, solicit or attempt to induce, persuade, or solicit any person or entity that was a customer of the Company during the Restricted Period or the one-year period preceding the Restricted Period, or is a prospective customer,
for the purpose of (A) providing to such customer goods or services similar to or in competition with the goods or services provided by the Company or (B) inducing or encouraging them to acquire of obtain from anyone other than the
Company, goods or services similar to or in competition with the goods or services provided by the Company. This means, among other things, that if the Executive’s employment with the Company terminates (whether voluntarily or involuntarily),
he shall refrain for one (1) year from giving any person or entity the names of his former, fellow employees or former, current or prospective customers or any information about them, as well as refrain from in any way helping any person or
entity hire any of his former, fellow employees away from the Company or otherwise engage any former, current or prospective customers. This shall not be construed to prohibit general solicitations of employment through the placing of
advertisements. For purposes of this Section 5.2, the “Company” shall include Affiliates of the Company. 
  

 11 

 5.3 The Executive agrees that, during the Restricted Period, he shall not, without the prior written
consent of the Board, engage in or become associated with any business or other endeavor engaged in or competitive with the businesses (the “PROTECTED BUSINESSES”) conducted by the Company, DTV, the Investors or any of their respective
Subsidiaries at the time of such engagement or association. For these purposes, the Executive shall be considered to have become “associated with” a business or other endeavor if the Executive becomes directly or indirectly involved as an
owner, principal, employee, officer, director, independent contractor, representative, stockholder, financial backer, agent, partner, advisor, lender, or in any other individual or representative capacity with any individual, partnership,
corporation or other organization that is engaged in that business. The foregoing shall not be construed to forbid the Executive from making or retaining investments in less than one percent of the equity of any entity, if such equity is listed on a
national securities exchange or regularly traded in an over-the-counter market. 
  
 5.4 The Executive agrees that during and after his employment by the Company, the Executive will assist the Company and its Affiliates in the defense of any claims, or potential claims that may be made or threatened
to be made against the Company or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise (a “PROCEEDING”), and will assist the Company and its Affiliates in the
prosecution of any claims that may be made by the Company or any of its Affiliates in any Proceeding, to the extent that such claims may relate to the Executive’s employment or the period of the Executive’s employment by the Company. The
Executive agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to participate (or otherwise become involved) in any Proceeding involving such claims or potential claims. The Executive also agrees, unless
precluded by law, to promptly inform the Company if the Executive is asked to assist in any investigation (whether governmental or otherwise) of the Company or any of its Affiliates (or their actions), regardless of whether a lawsuit has then been
filed against the Company or any of its Affiliates with respect to such investigation. The Company agrees to reimburse the Executive for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance, including lost
wages or other benefits, travel expenses and any attorneys’ fees. 
  
 5.5 The Company and the Executive acknowledge that the time, scope, geographic area and other provisions of Sections 5.2 and 5.3 have been specifically negotiated by sophisticated commercial parties and agree that all such provisions are
reasonable under the circumstances of the activities contemplated by this Agreement. The Executive acknowledges and agrees that the terms of Sections 5.2 and 5.3: (i) are reasonable in light of all of the circumstances, (ii) are
sufficiently limited to protect the legitimate interests of the Company and its Affiliates, (iii) impose no undue hardship on the Executive and (iv) are not injurious to the public. The Executive further acknowledges and agrees that
(x) the Executive’s breach of the provisions of Sections 5.2 and 5.3 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, and (y) if the Company elects to prevent the Executive from
breaching such provisions by obtaining an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits. The Executive consents and agrees that if the Executive commits any such breach or
threatens to commit any breach, the Company shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity 
  

 12 

 of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for
such breach, including the recovery of money damages. The parties hereto acknowledge and agree that the provisions of Section 7.9 below are accurate and necessary because (A) as of the Closing, the State of Delaware will have a substantial
relationship to the parties hereto and to the transactions contemplated by the Transaction Agreement, (B) the use of the State of Delaware law provides certainty to the parties hereto in any covenant litigation in the United States, and
(C) enforcement of the provisions of Sections 5.2 and 5.3 would not violate any fundamental public policy of the State of Delaware or any other jurisdiction. In the event that the agreements in Sections 5.2 and 5.3 shall be determined by any
court of competent jurisdiction to be unenforceable by reason of their extending for too great a period of time or over too great a geographical area or by reason of their being too extensive in any other respect, they shall be interpreted to extend
only over the maximum period of time for which they may be enforceable and/or over the maximum geographical area as to which they may be enforceable and/or to the maximum extent in all other respects as to which they may be enforceable, all as
determined by such court in such action. 
  
 6. NOTICES. Any
notice or communication given by either party hereto to the other shall be in writing and personally delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, or by facsimile, to the following addresses:

  
 if to the Company: 
  
 Hughes Network Systems, LLC 
 c/o SkyTerra Communications, Inc. 
 19 West
44th Street, Suite 507 
 New York, New York 10036 
 Attention.: Chief Executive Officer 
 Telecopy No.: 212-730-7541 
  
 With a copy to: 
  
 O’Melveny & Myers LLP 
 Times
Square Tower 
 7 Times Square 
 New York, NY 10036 
 Telephone:    (212) 326-2000 
 Telecopy:      (212) 326-2061 
 Attention:      John J. Suydam, Esq. 
  
 if to the Executive: 
  
 The most recent address on file for the Executive at the Company. With a copy to: 
  
 Doreen E. Lilienfeld, Esq. 
 Shearman & Sterling LLP 
 599 Lexington Avenue 
 13th Floor 
 New York, NY 10022 
 212-848-7179 (facsimile) 
  

 13 

 Any notice shall be deemed given when actually delivered to such party at the designated address, or five
days after such notice has been mailed or sent by overnight courier or when sent by facsimile with printed confirmation, whichever comes earliest. Any person entitled to receive notice may designate in writing, by notice to the other, such other
address to which notices to such person shall thereafter be sent. 
  
 7. MISCELLANEOUS. 
  
 7.1 REPRESENTATION. No agreements
or obligations exist to which the Executive is a party or otherwise bound, in writing or otherwise, that in any way interfere with, impede or preclude him from fulfilling all of the terms and conditions of this Agreement. 
  
 7.2 ENTIRE AGREEMENT. This Agreement, and the documents incorporated by
reference herein, including, without limitation, the LLC Agreement, the Conflict of Interest and Confidentiality Agreement, the Restricted Unit Agreement and the Prior Agreements specified on ATTACHMENT 1, contain the entire understanding of the
parties in respect of their subject matter and supersede upon their effectiveness all other prior plans, arrangements, agreements and understandings, including, without limitation, the Prior Agreements, between the parties with respect to such
subject matter. The Executive represents and warrants that, immediately prior to the effectiveness of this Agreement, except for the Prior Agreements and the Separation and Release Agreement (the “SETTLEMENT AGREEMENT”) between the
Executive and DTV dated on or about the date hereof, there are no agreements, understandings or arrangements, whether oral or written, among DTV or any of its Affiliates, on the one hand, and the Executive, on the other hand. Notwithstanding
anything to the contrary contained herein or in any other contract between the Executive and the Company or its Affiliates and predecessors (including, but not limited to the Settlement Agreement), all other contracts and agreements (including, but
not limited to, the Prior Agreements) are hereby terminated as of the date hereof, and shall be of no further force or effect. 
  
 7.3 AMENDMENT; WAIVER. This Agreement may not be amended, supplemented, canceled or discharged, except by written instrument executed by the party against
whom enforcement is sought. No failure to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof. No waiver of any breach of any provision of this Agreement shall be deemed to be a waiver of
any preceding or succeeding breach of the same or any other provision. 
  
 7.4 BINDING EFFECT; ASSIGNMENT. The rights and obligations of this Agreement shall bind and inure to the benefit of any successor of the Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the
Company’s business and properties. The Company may assign its rights and obligations under this Agreement to any of its Affiliates without the consent of the Executive. The Executive’s rights or obligations under this Agreement may not be
assigned by the Executive. 
  

 14 

 7.5 HEADINGS. The headings contained in this Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Agreement. 
  
 7.6
GOVERNING LAW; INTERPRETATION. This Agreement shall be construed in accordance with and governed for all purposes by the laws and public policy (other than conflict of laws principles) of the State of Delaware applicable to contracts executed and to
be wholly performed therein. 
  
 7.7 FURTHER ASSURANCES. Each of
the parties agrees to execute, acknowledge, deliver and perform, and cause to be executed, acknowledged, delivered and performed, at any time and from time to time, as the case may be, all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the provisions or intent of this Agreement. 
  
 7.8 SEVERABILITY. The parties have carefully reviewed the provisions of this Agreement and agree that they are fair and equitable. However, in light of
the possibility of differing interpretations of law and changes in circumstances, the parties agree that if any one or more of the provisions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the provisions of this Agreement shall, to the extent permitted by law, remain in full force and effect and shall in no way be affected, impaired or invalidated. Moreover, if any of the provisions contained in this
Agreement are determined by a court of competent jurisdiction to be excessively broad as to duration, activity, geographic application or subject, it shall be construed, by limiting or reducing it to the extent legally permitted, so as to be
enforceable to the extent compatible with then applicable law. 
  
 7.9 DISPUTE RESOLUTION. Arbitration will be the method of resolving disputes under this Agreement, other than disputes arising under Section 5. All arbitrations arising out of this Agreement shall be conducted in the State of Delaware.
Subject to the following provisions, the arbitration shall be conducted in accordance with the rules of the American Arbitration Association (the “ASSOCIATION”) then in effect. Any award entered by the arbitrators shall be final, binding
and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrators shall have no authority to
modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of this Agreement. Each party shall be responsible for its own expenses relating to the
conduct of the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees of the Association equally. 
  
 7.10 LEGAL FEES. The Company will promptly reimburse the Executive for all reasonable and documented legal fees and related expenses incurred in
connection with the drafting, negotiation and execution of this Agreement and the other documents relating to the equity arrangements contemplated hereunder (including the Restricted Unit Agreement); PROVIDED, HOWEVER, that the sum of all fees and
related expenses reimbursable to the Executive and all other executives of the Company shall not exceed $25,000 in the aggregate and shall not be payable to more than one counsel. 
  

 15 

 7.11 INDEMNIFICATION. The Company will, to a degree no less favorable than would be applicable under its
policies and contractual obligations to the Executive as of immediately following the Closing, indemnify and hold the Executive harmless from any and all liability arising from his good faith performance of services as an employee, officer or
director of the Company. In addition, the Executive will have the benefit of coverage under any D&O insurance policy that the Company may have in place to the same extent as similarly situated executives of the Company. 
  
 7.12 WITHHOLDING TAXES. All payments hereunder, and pursuant to any other
agreement to which the Executive is a party, shall be subject to any and all applicable federal, state, local and foreign withholding taxes and all other applicable withholding amounts. Any such amounts so withheld shall be treated as paid to the
Executive. If the amount that the Company is required to withhold exceeds the cash payments currently paid to the Executive, the Executive shall promptly pay to the Company the amount of such excess; PROVIDED, that if such amount is not paid, the
Company may withhold amounts otherwise due to the Executive. 
  
 7.13 NO MITIGATION. The Executive shall not be required to mitigate the amount of any severance payments payable by the Company hereunder by seeking alternative employment following the Executive’s termination of employment with the
Company. 
  
 7.14 COUNTERPARTS. This Agreement may be executed in
or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. 
  

 16 

 8. RELEASE. Employee, on Employee’s own part and on behalf of Employee’s dependents, heirs,
executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases, acquits, and discharges HNS, the Company, and their respective parent, subsidiaries, affiliates, owners, trustees, directors,
managers, officers, members, agents, employees, stockholders, representatives, assigns, and successors (collectively referred to as “COMPANY RELEASEES”) with respect to and from any and all claims, wages, agreements, contracts, covenants,
actions, suits, causes of action, expenses, attorneys’ fees, damages, and liabilities of whatever kind or nature in law, equity or otherwise, whether known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which
Employee has at any time heretofore owned or held against said Company Releasees, including, without limitation, those arising out of or in any way connected with the Prior Agreements or Employee’s employment relationship with the Company,
except with respect to the obligations set forth in this Agreement. 
  
 9. TIME TO CONSIDER RELEASE. Employee may take twenty-one (21) days from the date this Agreement is presented to Employee to consider whether to execute this Agreement, and may wish to consult with an attorney prior to execution of
this Agreement. Employee, by signing this Agreement, specially acknowledges that he/she is waiving his/her right to pursue any claims under federal, state or local discrimination laws, including the Age Discrimination in Employment Act, 29 U.S.C.
Section 626 ET SEQ., which have arisen prior to the execution of this Agreement. This release shall become final and irrevocable upon execution by the Employee, except that if Employee is age 40 or older, Employee may revoke the release at any
time during the seven (7) day period following Employee’s execution of this Agreement, after which time it shall be final and irrevocable. 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	THE COMPANY
	
	HUGHES NETWORK SYSTEMS, LLC
		
	By:	 	SkyTerra Communications, Inc.
	 	 	its Managing Member
		
	By:	 	 /s/ Jeffrey A. Leddy

	Name:	 	Jeffrey A. Leddy
	Title:	 	CEO
	
	THE EXECUTIVE
		
	By:	 	 /s/ Adrian Morris

	 	 	Adrian Morris

  

 18 

 ATTACHMENT 1 
  
 Adrian Morris 
  

			
	Position	  	Senior Vice President
		
	Reporting Person	  	Chief Executive Officer of the Company
		
	Annual Base Salary	  	$304,082
		
	Maximum Bonus Percentage	  	51 percent
		
	Number of Restricted Units	  	500
		
	Vacation Days	  	25 with a maximum accrual limit of 50 days
		
	Auto Allowance	  	$12,940
		
	Prior Agreements	  	Hughes Electronics Corporation Executive Change in Control Severance Agreement dated as of July 9, 2001, as amended, and The DIRECTV Group Employment Transition Assistance Plan dated as of June
18, 2004.

  

 19 

 EXHIBIT A 
  
 RESTRICTED UNIT PURCHASE AGREEMENT, dated as of April 23, 2005 (this “Agreement”), between HUGHES NETWORK SYSTEMS,
LLC, a Delaware limited liability company (the “Company”); and Adrian Morris (the “Purchaser”). 
  
 WHEREAS, the parties hereto are entering into this Agreement to provide for the Company’s issuance and sale of certain equity securities to
the Purchaser and to set forth certain other agreements between them. 
  
 NOW, THEREFORE, in consideration of the mutual benefits to be derived and the representations and warranties, conditions and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as set forth below. 
  
 Section 1. Definitions. 
  
 Capitalized terms used herein and not otherwise defined shall have the meanings set forth below. 
  
 “Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries,
Controls, or is Controlled by, or is under common Control with, such Person and/or one or more affiliates thereof. 
  
 “Board” means the Board of Managers of the Company. Any calculation, determination, election or decision of the Board hereunder shall be
made by the Board excluding the Purchaser if the Purchaser is a member of the Board at such time. 
  
 “Business Day” means any day except a Saturday, a Sunday or any other day on which commercial banks are not required to be open in New
York, New York. 
  
 “Compensation Committee”
means the compensation committee of the Board. 
  
 “Control” (including, with correlative meaning, the terms “Controlling”, “Controlled by” and “under common Control with”), as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Documents” means this Agreement, the Employment Agreement (together with the conflict of interest and
confidentiality agreement attached thereto), and the LLC Agreement. 
  
 “Employment Agreement” means the Employment Agreement dated as of the date hereof between the Company and the Purchaser, as amended, modified, restated or supplemented from time to time. 
  
 “Equity Securities” means (a) Restricted Units and any
other Securities of the Company acquired by the Purchaser from time to time, (b) any equity Securities issued or issuable pursuant to Section 7 and (c) any equity Securities issued or issuable directly or 

 indirectly with respect to the Securities referred to in clauses (a) and (b) above by way of conversion,
distribution, dividend or split or in connection with a combination of equity interests, recapitalization, merger, consolidation or other reorganization. 
  
 “Fair Market Value” means, with respect to each Security, the fair market value thereof as determined by the Managing Member in its
reasonable good faith discretion. 
  
 “Law” means
any law, treaty, convention, rule, directive, legislation, ordinance, regulatory code (including, without limitation, rules and regulations) or similar provision having the force of law or an order of any governmental entity or any self-regulatory
organization. 
  
 “Lien” means and includes
security interests, mortgages, liens, pledges, charges, easements, reservations, restrictions, clouds, servitudes, rights of way, options, rights of first refusal, community property interests, equitable interests, restrictions of any kind,
conditional sale or other title retention agreements, any agreement to provide any of the foregoing and all other encumbrances, whether or not relating to the extension of credit or the borrowing of money, whether imposed by contract, Law, equity or
otherwise. 
  
 “LLC Agreement” means the Amended
and Restated Limited Liability Company Agreement dated as of April 22, 2005, among the Company, and its other members, as amended, modified, restated or supplemented from time to time. 
  
 “Person” shall be construed as broadly as possible and shall
include an individual person, a partnership (including a limited liability partnership), a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and a governmental
authority. 
  
 “Rule 144” means Rule 144
(including Rule 144(k) and all other subdivisions thereof) promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any similar or successor rule then in force. 
  
 “Sale Transaction” means the consummation of (a) the
transfer (in one or a series of related transactions) of all or substantially all of the Company’s consolidated assets to a Person or a group of Persons acting in concert; (b) the sale or transfer (in one or a series of related
transactions) of a majority of the outstanding Securities of the Company to one Person or a group of Persons acting in concert; or (c) the merger or consolidation of the Company with or into another Person, in the case of clauses (b) and
(c) above, under circumstances in which the holders of a majority of the voting power of the outstanding Securities of the Company immediately prior to such transaction own less than a majority in voting power of the outstanding Securities of
the Company or the surviving or resulting corporation or acquirer, as the case may be, immediately following such transaction. A sale (or multiple related sales) of one or more Subsidiaries of the Company (whether by way of merger, consolidation,
reorganization or sale of all or substantially all assets or Securities) which constitutes all or substantially all of the consolidated assets of the Company shall be deemed a “Sale Transaction.” 
  
 “Securities” means “securities” as defined in
Section 2(1) of the Securities Act and includes, with respect to any Person, such Person’s capital stock or other equity interests or any options, warrants or other securities that are directly or indirectly convertible into, or
exercisable or exchangeable for, such Person’s capital stock or other equity or equity-linked interests. 
  

 - 21 - 

 Whenever a reference herein to Securities is referring to any derivative Securities, the rights of the Purchaser shall
apply to such derivative Securities and all underlying Securities directly or indirectly issuable upon conversion, exchange or exercise of such derivative securities. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any successor Federal statute, and the
rules and regulations of the Securities and Exchange Commission promulgated thereunder, all as the same shall be in effect from time to time. 
  
 “Share Market Price” means, (x) with respect to the SkyTerra Shares to be issued to the Purchaser in connection with an Exchange:
(a) if such SkyTerra Shares are not publicly traded or quoted at the time of determination, the fair market value of such Securities determined by the board of directors of SkyTerra; and (b) if the SkyTerra Shares are publicly traded or
quoted at the time of determination, the per share fair market value of such Securities shall be the average closing trading price of such Securities for the twenty (20) Business Day period immediately preceding the date of determination, and
(y) with respect to an Exchange following an initial public offering of the Company’s equity securities, the per share fair market value of such Securities shall be the average closing trading price of such Securities for the twenty
(20) Business Day period immediately preceding the date of determination. 
  
 “SkyTerra” means SkyTerra Communications, Inc., a Delaware corporation, and its successors and assigns. 
  
 “SkyTerra Acquisition” means the direct or indirect acquisition by SkyTerra and/or any of its Affiliates, pursuant to any transaction
structure, of all or substantially all of the Securities of the Company that are held by members of the Company that are not employees of the Company. 
  
 “Subsidiary” means, at any time, with respect to any Person (the “Subject Person”), any other Person of which either
(a) more than fifty percent (50%) of the Securities or other interests entitled to vote in the election of directors or comparable governance bodies performing similar functions or (b) more than a 50% interest in the profits or
capital of such Person, are at the time owned or controlled directly or indirectly by the Subject Person or through one or more subsidiaries of the Subject Person. 
  
 “Transfer” of Securities shall be construed broadly and shall include any issuance, sale, assignment,
transfer, participation, gift, bequest, distribution, or other disposition thereof, or any pledge or hypothecation thereof, placement of a Lien thereon or grant of a security interest therein or other encumbrance thereon, in each case whether
voluntary or involuntary or by operation of law or otherwise. Notwithstanding anything to the contrary contained herein, Transfer shall not include the sale or transfer of Equity Securities by the Purchaser to the Company or any of its designees
pursuant to the Employment Agreement or otherwise limit the Purchaser’s obligations in Section 8(b). 
  
 “Transferee” means a Person acquiring or intending to acquire Equity Securities through a Transfer. 
  

 - 22 - 

 Section 2. Authorization of Restricted Units; Adjustments. 
  
 (a) The Company has authorized the issuance and sale to the Purchaser, upon
the terms and subject to the conditions set forth in this Agreement, an aggregate of 500 units (the “Restricted Units”) of the Company’s Class B Units (the “Units”). For the purposes of the Employment
Agreement, 50.0 percent of the Restricted Units shall be “Time Vesting Units” and 50.0 percent of the Restricted Units shall be “Performance Vesting Units.” 
  
 (b) In the event of any equity split, reverse equity split, dividend, merger, consolidation, recapitalization or similar
event affecting the capital structure of the Company’s Class A Units, the number, kind and type of equity (or other property, including without limitation cash) subject to the Restricted Units shall be equitably adjusted as determined in
good faith by the Compensation Committee to prevent the dilution or enlargement of the value of the Executive’s Restricted Units. 
  
 Section 3. Issuance and Sale of Restricted Units. 
  
 At the Closing, subject to the terms and conditions hereof and in reliance upon the representations and warranties, covenants and agreements contained
herein, the Company will issue and sell to the Purchaser, and the Purchaser will purchase from the Company, the Restricted Units for a purchase price per Restricted Unit equal to $0.01. The aggregate purchase price paid for all Restricted Units is
hereinafter referred to as the “Cash Consideration”. 
  
 Section 4. Closing. 
  
 The closing
of the transactions contemplated hereby (the “Closing”) will take place simultaneously with the execution and delivery of this Agreement at the offices of O’Melveny & Myers, LLP, 7 Times Square, New York, New York
10036. 
  
 Section 5. Deliveries at the Closing. 
  
 At the Closing, the Purchaser shall deliver to the Company (i) the Cash
Consideration; (ii) a duly executed counterpart to the LLC Agreement and the Employment Agreement (together with the conflict of interest and confidentiality agreement attached thereto); and (iii) a duly executed spousal consent in the
form attached hereto as Exhibit A. 
  
 Section 6.
Representations and Warranties. 
  
 (a)
Representations and Warranties of the Company. The Company represents and warrants to the Purchaser as of the date of this Agreement as set forth below. 
  

(i) It is a company duly organized, validly existing and in good standing under the laws of the State of Delaware. It has full power
and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance by it of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary corporate action. 
  
 (ii) This Agreement has been duly and validly executed and delivered by the Company and constitutes a legal and binding obligation of the Company, enforceable against the Company in accordance with its terms.

  

 - 23 - 

 (iii) The execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby will not (A) violate any provision of Law to which the Company is subject, (B) violate any order, judgment or decree applicable to the Company or (C) conflict with,
or result in a breach or default under, any term or condition of the Company’s certificate of formation or the LLC Agreement or any agreement or instrument to which the Company is a party or by which it is bound, except for such violations,
conflicts, breaches or defaults that would not, in the aggregate, materially affect the Company’s ability to perform its obligations hereunder. 
  
 (iv) No consent, approval or authorization of, or declaration to or filing with, any Person is required to be made or obtained by the
Company for the execution, delivery and performance by the Company of this Agreement or the consummation by the Company of the transactions contemplated hereby, including, the authorization, issuance and delivery of the Restricted Units. 

 
 (b) General Representations and Warranties of the Purchaser. The
Purchaser hereby represents and warrants to the Company as of the date of this Agreement as set forth below. 
  
 (i) Each Document has been duly and validly executed and delivered by the Purchaser and each Document constitutes a legal and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms. 
  
 (ii) The execution, delivery and performance by the Purchaser of each Document and the consummation by the Purchaser of the transactions
contemplated by each such Document will not (A) violate any provision of any Law to which the Purchaser is subject, (B) violate any order, judgment or decree applicable to the Purchaser or (C) conflict with, or result in a breach or
default under, any term or condition of any agreement or other instrument to which the Purchaser is a party or by which the Purchaser is bound, except for such violations, conflicts, breaches or defaults that would not, in the aggregate, materially
affect the Purchaser’s ability to perform its obligations under each such Document. 
  
 (iii) No consent, approval or authorization of, or declaration to or filing with, any Person is required to be made or obtained by the
Purchaser for the execution, delivery and performance by the Purchaser of the Documents or the consummation by the Purchaser of the transactions contemplated the Documents. 
  
 (c) Investment Representations of the Purchaser. The Purchaser hereby represents and warrants to the Company as of
the date of this Agreement as set forth below. 
  
 (i) The Purchaser understands that (A) the Restricted Units have not been registered under the Securities Act or registered or qualified under applicable state securities Laws by reason of their issuance by the Company in a transaction
exempt from the registration and qualification requirements of the Securities Act and applicable state securities Laws, and (B) the Restricted Units issued to the Purchaser must be held by the Purchaser indefinitely unless a subsequent
disposition thereof is registered or qualified 
  

 - 24 - 

 under the Securities Act and applicable state securities Laws, or are exempt from such registration or
qualification. The Purchaser further understands that in connection with the Transfer of the Restricted Units, that the Company may request, and if so requested the Purchaser will furnish, such certificates, legal opinions and other information as
the Company may reasonably require to confirm that such share Transfer complies with the foregoing. 
  
 (ii) The Purchaser further understands that, with respect to the Restricted Units, the exemption from registration afforded by Rule 144
(the provisions of which are known to the Purchaser) promulgated under the Securities Act depends on the satisfaction of various conditions, and that, if applicable, Rule 144 may only afford the basis for sales only under certain circumstances and
only in limited amounts. 
  
 (iii) The Purchaser
will not Transfer the Restricted Units acquired by it hereunder, except in compliance with the Documents. 
  
 (iv) The Purchaser is acquiring the Restricted Units for its own account, for investment only and not with a view to, or an intention of,
the distribution thereof in violation of the Securities Act or any applicable state securities Laws. 
  
 (v) The Purchaser is an “accredited investor” (as defined in Rule 501(a) of Regulation D promulgated under the Securities Act).

  
 (vi) The Purchaser has no need for liquidity
in its investment in the Restricted Units and is able to bear the economic risk of his investment in the Restricted Units for an indefinite period of time. 
  
 (vii) The Purchaser has been represented by counsel and/or advisors in connection with the execution and delivery of the Documents and has
had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of the Restricted Units and has had full access to or been provided with all such other information concerning the Company as he has
requested. 
  
 (viii) The Purchaser has such
knowledge and experience in financial and business matters and with respect to investments in securities of privately held companies such that the Purchaser is capable of evaluating the risks and merits of his investment in the Restricted Units.

  
 (ix) The Purchaser further understands that
this Agreement is made with the Purchaser in reliance upon its representations to the Company contained in Sections 5(b) and 5(c). 
  
 (d) Acknowledgement of Purchaser. As an inducement to the Company to issue the Restricted Units to the Purchaser and as a condition thereto, the
Purchaser acknowledges and agrees as set forth below. 
  
 (i) Neither the issuance of the Restricted Units to the Purchaser nor any provision contained in the Documents shall entitle the Purchaser to obtain employment with or remain in the employment of the Company or any of its Subsidiaries

  

 - 25 - 

 or Affiliates or affect any right the Company or any Subsidiary or Affiliate of the Company may have to
terminate the Purchaser’s employment, pursuant to the Employment Agreement or otherwise, for any reason. 
  
 (ii) The Company shall have no duty or obligation to disclose to the Purchaser, and the Purchaser shall have no right to be advised of,
any material information regarding the Company or any of its Subsidiaries or Affiliates at any time prior to, upon or in connection with the repurchase of the Restricted Units upon the termination of the Purchaser’s employment with the Company
and any of its Subsidiaries or Affiliates or as otherwise provided in the Documents. 
  
 (e) The Optionee hereby acknowledges receipt of a complete copy of each of the Documents. The Optionee has reviewed each of the Documents and agrees to be bound by the terms of each of the Documents. 
  
 Section 7. SkyTerra Acquisition. 
  
 Commencing on the date that is one year following the consummation of the
SkyTerra Acquisition, if any, the Purchaser shall have the right to exchange (the “Exchange”) all of his Restricted Units which have vested in accordance with the terms of the Employment Agreement for common stock of SkyTerra
(“SkyTerra Shares”). The number of SkyTerra Shares to be issued to the Purchaser in connection with the Exchange shall equal the quotient obtained by dividing (x) the product of (1) the number of Vested Securities and
(2) the Fair Market Value of such Vested Securities by (y) the Share Market Price. 
  
 Section 8. Specific Transfer Restrictions on Equity Securities. 
  
 The provisions set forth in this Section 8 shall apply to the Purchaser and any Transferee of the Purchaser (other the Company or its designees).

  
 (a) The Purchaser acknowledges the restrictions on Transfer of
the Equity Securities set forth in the LLC Agreement (including, without limitation, Section 9 thereof). 
  
 (b) If the SkyTerra Investors (as defined in the LLC Agreement) approve a Sale Transaction, the Purchaser shall consent to and raise no objections against
the Sale Transaction, and if the Sale Transaction is structured as a sale of the issued and outstanding Securities of the Company (whether by merger, recapitalization, consolidation or sale or Transfer of Securities of the Company, or otherwise),
then the Purchaser shall waive any dissenters rights, appraisal rights or similar rights in connection with such Sale Transaction and such Purchaser shall agree to sell his Equity Securities on the terms and conditions approved by the Board. The
Purchaser shall take all necessary and desirable actions in connection with the consummation of the Sale Transaction, including, but not limited to, the execution of such agreements and instruments (including equityholder resolutions) and other
actions necessary to provide the representations, warranties, indemnities, covenants, conditions, escrow agreement(s) and other provisions and agreements relating to such Sale Transaction. In the event that the Purchaser fails for any reason to take
any of the foregoing actions after reasonable notice thereof, he hereby grants an irrevocable power of attorney and proxy to the Company to take all necessary actions and execute and deliver all documents deemed by the Company necessary to
effectuate the terms of this Section 8(b). 
  

 - 26 - 

 (c) If and whenever the Company proposes to register any of its Securities under the Securities Act for
its own account (or otherwise), the Purchaser agrees not to effect (other than pursuant to such registration) any public sale or distribution (including, but not limited to, any sale pursuant to Rule 144 or Rule 144A of the Securities Act) of any
Equity Securities or any other Securities of the Company until 180 days after (or with respect to the Company’s initial public offering of Units under the Securities Act, 270 days after), and during the twenty (20) days prior to, the
effective date of such registration. 
  
 (d) Any Transferee of
Equity Securities (other than the Company or its designees) shall, as a condition to such Transfer, agree to be bound by all of the provisions of the Documents applicable to holders of Equity Securities (including, without limitation,
Sections 7 and 8 hereof). 
  
 Section 9. Indemnification.

  
 (a) The Company shall indemnify, defend and hold the
Purchaser harmless from and against all liability, loss or damage, together with all reasonable costs and expenses related thereto (including reasonable legal and accounting fees and expenses), relating to or arising from the untruth, inaccuracy or
breach of any of the representations, warranties or covenants of the Company contained in this Agreement. 
  
 (b) The Purchaser shall indemnify and hold the Company harmless from and against all liability, loss or damage, together with all reasonable costs and
expenses related thereto (including reasonable legal and accounting fees and expenses), relating to or arising from the untruth, inaccuracy or breach of any of the representations, warranties or covenants of the Purchaser contained in this
Agreement. 
  
 Section 10. Tax Election. 
  
 (a) THE PURCHASER ACKNOWLEDGES THAT IT IS THE PURCHASER’S SOLE
RESPONSIBILITY, AND NOT THE COMPANY’S, TO DECIDE IF AN ELECTION UNDER SECTION 83(B) OF THE INTERNAL REVENUE CODE SHOULD BE MADE AND TO FILE TIMELY SUCH ELECTION, EVEN IF THE PURCHASER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS
FILING ON HIS BEHALF. THE PURCHASER ACKNOWLEDGES THAT IT IS NOT RELYING ON ANY TAX ADVICE PROVIDED BY THE COMPANY OR ITS AFFILIATES, REPRESENTATIVES, CONSULTANTS OR OTHER ADVISORS, AND THE PURCHASER IS STRONGLY ADVISED TO CONSULT WITH HIS OWN TAX
ADVISORS IN CONNECTION WITH THE MATTERS SET FORTH HEREIN. 
  
 Section 11.
General Provisions. 
  
 (a) Transfers in Violation
of Agreement. Any attempted Transfer of any Equity Securities in violation of the Documents shall be null and void, and the Company shall not record such Transfer on its books or treat any purported Transferee of such Equity Securities as the
owner of such Equity Securities for any purpose. 
  
 (b)
Amendments; Waiver and Release. The terms and provisions of this Agreement may not be modified or amended, nor may any of the provisions hereof be waived, 
  

 - 27 - 

 temporarily or permanently, except pursuant to a written instrument executed by the party to be bound by such
modification or amendment. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms. 
  
 (c)
Severability. It is the desire and intent of the parties hereto that the provisions each Document be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of any Document shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without
invalidating the remaining provisions of such Document or affecting the validity or enforceability of such Document or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such
provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of such Document or affecting
the validity or enforceability of such provision in any other jurisdiction. 
  
 (d) Entire Agreement. The Documents and the other writings referred to in the Documents or delivered pursuant to the Documents contain the entire agreement between the parties with respect to the subject matter
of the Documents and supersede all prior and contemporaneous arrangements or understandings with respect thereto. 
  
 (e) Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the
Purchaser and the Company and their respective successors, permitted assigns, heirs, representatives and estates, as the case may be; provided, however, that the rights and obligations of the Purchaser under this Agreement shall not be
assignable except in connection with a Transfer of Equity Securities not prohibited under the terms and provisions of the Documents. Except as expressly provided herein, this Agreement shall not confer any rights or remedies upon any Person other
than the parties hereto and their respective successors and permitted assigns. 
  
 (f) Counterparts and Facsimile Execution. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered (by facsimile or otherwise) to the other party, it being understood that all parties need not sign the same counterpart. Any counterpart or other signature hereunder delivered by
facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. 
  
 (g) Remedies. Each of the parties to this Agreement and any such Person granted rights hereunder whether or not such Person is a signatory hereto
(including, without limitation, the SkyTerra Investors) shall be entitled to enforce its rights under this Agreement specifically to recover damages and costs (including reasonable attorney’s fees) for any breach of any provision of this
Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party and any such Person
granted 
  

 - 28 - 

 rights hereunder whether or not such Person is a signatory hereto (including, without limitation, SkyTerra) may in its
sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or other injunctive relief (without posting any bond or deposit) in order to enforce or prevent any violations of the provisions of this
Agreement. The SkyTerra Investors shall be third party beneficiaries of the rights of the Company hereunder. 
  
 (h) Notices. All notices, requests, demands, claims and other communications hereunder shall be in writing and sufficient if delivered in
accordance with the provisions set forth in the Employment Agreement. 
  
 (i) Construction. The use in this Agreement of the term “including” means “including, without limitation.” The words “herein,” “hereof,” “hereunder” and other words of similar import
refer to this Agreement as a whole, including the schedules and exhibits, as the same may from time to time be amended, modified, supplemented or restated, and not to any particular section, subsection, paragraph, subparagraph or clause contained in
this Agreement. All references to sections, schedules and exhibits mean the sections of this Agreement and the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the section and paragraph headings in
this Agreement are for convenience of reference only and shall not govern or affect the interpretation of any of the terms or provisions of this Agreement. The use herein of the masculine, feminine or neuter forms shall also denote the other forms,
as in each case the context may require. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the
general statement to which it relates. The language used in this Agreement has been chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. 
  
 (j) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. EACH OF THE PARTIES
HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND THAT MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF THE OTHER PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED OR HAD THE OPPORTUNITY TO REVIEW THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  

 - 29 - 

 (k) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
DOMESTIC LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE CONFLICTS OF LAWS OR PRINCIPLES THEREOF THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. WITH RESPECT TO ANY LAWSUIT OR PROCEEDING ARISING
OUT OF OR BROUGHT WITH RESPECT TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED BY THIS AGREEMENT, EACH OF THE PARTIES HERETO IRREVOCABLY (a) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL AND DELAWARE STATE COURTS LOCATED
IN THE COUNTY OF DELAWARE IN THE STATE OF DELAWARE; (b) WAIVES ANY OBJECTION IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT; (c) WAIVES ANY CLAIM THAT SUCH PROCEEDING HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM; AND (d) FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY. 
  
 (l) Survival of Representations and Warranties. All representations, warranties and agreements contained herein shall
survive for the consummation of the transactions contemplated hereby, indefinitely. 
  
 (m) Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates,
instruments, and documents as any other party hereto reasonably may request in order to carry out the provisions of this Agreement and the consummation of the transactions contemplated hereby. Without limiting the foregoing each party shall use its
commercially reasonable efforts, and the other parties shall cooperate with such efforts, to obtain any consents, orders, authorizations and approvals of, or effect the notification of or filing with each Person, whether private or governmental,
whose consent or approval is or may be required to permit the consummation of, and give full effect to, the transactions contemplated hereby. 
  
 * * * * 
  

 - 30 - 

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

			
	 Company:

	
	 HUGHES NETWORK SYSTEMS, LLC

		
	 By:
	 	 SkyTerra Communications, Inc.,

	 	 	 its Managing Member

		
	 By:
	 	 /s/ Jeffrey A. Leddy

	 Name:
	 	 Jeffrey A. Leddy

	 Title:
	 	 Chief Executive Officer and President

	
	 Purchaser:

	
	 /s/ Adrian Morris

	 Adrian Morris

  

 - 1 -Underwriting Agreement dated January 25, 2006

 EXHIBIT 10.1 
  
 Execution Copy 
  
 4,436,454 Shares 
  
 ALLION HEALTHCARE, INC. 
  
 COMMON STOCK 
  
 UNDERWRITING AGREEMENT 
  
 Dated January 25, 2006 

 January 25, 2006 
  
 Thomas Weisel Partners LLC 
 William
Blair & Company, L.L.C. 
 First Albany Capital Inc. 
 Susquehanna Financial Group, LLLP 
     As Representatives of the several Underwriters 
 c/o Thomas Weisel Partners LLC 
 390 Park Avenue, 16th Floor 
 New York, New York 10022

  
 Ladies and Gentlemen: 
  
 Introduction. Allion Healthcare, Inc., a Delaware corporation (the
“Company”), proposes to issue and sell to the several underwriters named in Schedule A hereto (the “Underwriters”), and certain stockholders of the Company (the “Selling Stockholders”)
named in Schedule B hereto severally propose to sell to the several Underwriters, an aggregate of 4,436,454 shares of the common stock, par value $0.001 per share, of the Company (the “Firm Shares”), of which 1,800,000 shares
are to be issued and sold by the Company and 2,636,454 shares are to be sold by the Selling Stockholders, with each Selling Stockholder selling the number of shares set forth opposite such Selling Stockholder’s name in Schedule B hereto.

  
 The Company also proposes to issue and sell to the several
Underwriters not more than an additional 665,468 shares of the Company’s common stock, par value $0.001 per share (the “Additional Shares”), if and to the extent that you shall have determined to exercise, on behalf of the
Underwriters, the right to purchase such shares of common stock granted to the Underwriters in Section 3 hereof. The Firm Shares and the Additional Shares are hereinafter collectively referred to as the “Shares.” The shares of
common stock, par value $0.001 per share, of the Company to be outstanding after giving effect to the sales contemplated hereby are hereinafter referred to as the “Common Stock.” The Company and the Selling Stockholders are
hereinafter sometimes collectively referred to as the “Sellers.” Thomas Weisel Partners LLC, William Blair & Company L.L.C., First Albany Capital Inc., and Susquehanna Financial Group, LLLP have agreed to act as
representatives of the several Underwriters (in such capacity, the “Representatives”) in connection with the offering and sale of the Shares. 
  

The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”), in accordance with the provisions
of the Securities Act of 1933, as amended (the “Securities Act”), and the applicable rules and regulations thereunder, a registration statement on Form S-1 (Commission File No. 333-130165), including a prospectus, relating
to the Shares. The term “Registration Statement” as used herein means the registration statement including all financial schedules and exhibits incorporated or deemed to be incorporated by reference therein (but excluding any
information or statements therein that were incorporated, or deemed to be incorporated by reference to the extent such information or statements have been modified or superceded by any statement in the prospectus, or in any other document that was

  

 - 2 - 

 
subsequently filed with the Commission and incorporated by reference in the prospectus or Registration Statement) as amended at the time it becomes effective
or, if the registration statement became effective prior to execution of this Agreement, as supplemented or amended prior to the execution of this Agreement and includes information (if any) contained in the form of final prospectus filed with the
Commission pursuant to Rule 424(b) of the rules under the Securities Act and deemed to be part thereof at the time of effectiveness pursuant to Rule 430A under the Securities Act. If it is contemplated, at the time this Agreement is executed, that a
post-effective amendment to the registration statement will be filed and must be declared effective before the offering of the Shares may commence, the term “Registration Statement” as used herein means the registration statement as
amended by said post-effective amendment. If the Company has filed, or files on or after the date of this Agreement, a registration statement to register additional shares of Common Stock pursuant to Rule 462(b) under the Securities Act (the
“Rule 462(b) Registration Statement”), then any reference herein to the term “Registration Statement” shall be deemed to include such Rule 462(b) Registration Statement. Any preliminary prospectus included in
the Registration Statement or filed with the Commission pursuant to Rule 424(a) of the rules under the Securities Act is hereinafter referred to as a “Preliminary Prospectus.” The term “Statutory Prospectus” as used
herein means any Preliminary Prospectus, as amended or supplemented, relating to the Shares that is included in the Registration Statement immediately prior to the Applicable Time (as defined below). The final prospectus filed with the Commission
pursuant to Rule 424 of the rules under the Securities Act that satisfies the requirements of Section 10(a) of the Securities Act is hereinafter referred to as the “Prospectus.” The term “Applicable Time” means
8:00 p.m. (Eastern time) on the date of this Agreement. The term “General Disclosure Package” means the Statutory Prospectus, each Issuer Represented Free Writing Prospectus (as defined below) and the pricing-related information set
forth on Schedule C. All references in this Agreement to the Registration Statement, the Rule 462(b) Registration Statement, a Preliminary Prospectus, the Statutory Prospectus, the Prospectus, any Issuer Represented Free Writing
Prospectus or any amendments or supplements to any of the foregoing, shall include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”). 
  
 1. Representations and Warranties and Agreements of the Company.

  
 The Company represents and warrants to and agrees with each
of the Underwriters that: 
  
 1.1 Effective Registration
Statement. 
  
 The Registration Statement has become
effective under the Securities Act; no stop order suspending the effectiveness of the Registration Statement is in effect, and no proceedings for such purpose are pending before or to the Company’s knowledge threatened by the Commission.

  
 1.2 Contents of Registration Statement. 
  
 (i) The Registration Statement, when it became effective, did not
contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements 

  

 - 3 - 

 
therein not misleading, (ii) the Registration Statement and the Prospectus comply and, as amended or supplemented, if applicable, will comply in all
material respects with the Securities Act and the applicable rules and regulations of the Commission thereunder, (iii) the Prospectus does not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not
apply to statements or omissions in the Registration Statement or the Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such Underwriter through you expressly for use therein, and (iv) the
statistical and market-related data included in the Registration Statement and the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate. With respect to the exception set forth at clause (iii), the
Company acknowledges that the only information furnished in writing by the Underwriters for use in the Registration Statement or the Prospectus are the statements specifically relating to (a) the aggregate number of Firm Shares that the
Representatives have severally agreed to purchase contained in the first paragraph under the Section captioned “Underwriting” in the Prospectus, (b) the concession and reallowance figures contained in the paragraph captioned
“Commissions and Discounts” under the Section captioned “Underwriting” in the Prospectus, (c) information under the paragraph captioned “Passive Market Making” under the Section captioned
“Underwriting” in the Prospectus, and (d) stabilizing and passive market making activities under the paragraph captioned “Short Sales, Stabilizing Transactions and Penalty Bids” under the Section captioned
“Underwriting” in the Prospectus. 
  
 1.3
Non-Ineligible Issuer. 
  
 At the time of filing the
Registration Statement and at the date hereof, the Company was not and is not an “ineligible issuer” as defined in Rule 405 under the Securities Act (“Rule 405”). 
  
 1.4 Contents of Free Writing Prospectuses. 
  
 Other than the Preliminary Prospectus and the Prospectus, the Company
(including its agents and representatives, other than the Underwriters in their capacity as such) has not used or referred to or authorized any other person to use or refer to, and will not use or refer to or authorize any other person to use or
refer to, any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Shares (each such communication by the Company or its agents and
representatives (other than a communication referred to in clause (i) below, but including a communication referred to in clause (ii) below) an “Issuer Represented Free Writing Prospectus”) other than (i) any document
not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act or (ii) the documents listed on Schedule D hereto and any other “written communications” (as defined
in Rule 405 under the Securities Act) approved in writing in advance by the Representatives. Each such Issuer Represented Free Writing Prospectus, as of its issue date and at all subsequent times through the Closing Date or until any earlier date of
which the Company notified or notifies the Representatives as described in the second paragraph of Section 5.11, (i) complied and will comply in all material respects with the Securities Act, (ii) did not and does not include any
information that conflicts with the 

  

 - 4 - 

 
information contained in the Registration Statement, the Statutory Prospectus or the Prospectus, (iii) has been filed in accordance with the Securities
Act (to the extent required thereby) and, (iv) when taken together with the Preliminary Prospectus, the Statutory Prospectus and the Prospectus accompanying, or delivered prior to delivery of, such Issuer Represented Free Writing Prospectus,
did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the
representations and warranties set forth in this paragraph do not apply to statements or omissions made in each such Issuer Represented Free Writing Prospectus based upon information relating to any Underwriter furnished to the Company in writing by
such Underwriter through the Representatives expressly for use in any Issuer Represented Free Writing Prospectus, it being acknowledged that the only such information provided by the Underwriters expressly for use therein consists of the information
set forth in the final sentence of Section 1.2. 
  
 As of the
Applicable Time, the General Disclosure Package, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, except that the representations and warranties set forth in this sentence do not apply to statements or omissions in the General Disclosure Package based upon information relating to any Underwriter furnished to the Company in writing by
such Underwriter through the Representatives expressly for use therein, it being acknowledged that the only such information provided by the Underwriters expressly for use therein consists of the information set forth in the final sentence of
Section 1.2. 
  
 1.5 Compliance with Securities Act.

  
 Each Preliminary Prospectus filed as part of the Registration
Statement as originally filed or as part of any amendment thereto, or filed pursuant to Rule 424 under the Securities Act, complied when so filed in all material respects with the Securities Act and the applicable rules and regulations of the
Commission thereunder. 
  
 1.6 Financial Statements of the
Company and Acquired Companies. 
  
 The financial statements
of (i) the Company and its consolidated subsidiaries, (ii) Medicine Made Easy (“MME”), (iii) North American Home Health Supply, Inc. (“North American”), (iv) Specialty Pharmacies Inc.
(“Specialty”), and (v) Frontier Pharmacy & Nutrition, Inc. d/b/a PMW Pharmacy (“Frontier” and, collectively with MME, North American and Specialty, the “Acquired Companies”) included
in the Registration Statement, the Statutory Prospectus and the Prospectus (including, in each case, all notes and schedules thereto) present fairly in all material respects the financial condition, results of operations and cash flows of the
Company and its consolidated subsidiaries, and of the Acquired Companies at the dates and for the periods indicated; and such financial statements and related schedules and notes thereto, including the unaudited financial information filed with the
Commission as part of the Registration Statement , the Statutory Prospectus and Prospectus have been prepared in conformity with generally accepted accounting principles (“GAAP”), consistently applied throughout the periods
indicated and conform with the rules and regulations adopted by the Commission under the Securities Act, provided however, that unaudited interim financial 

  

 - 5 - 

 
statements are subject to year end adjustments not material in amount, and do not contain footnotes required under GAAP. The information in the Registration
Statement, the Statutory Prospectus and the Prospectus under the captions “Summary Historical and Pro Forma Consolidated Financial Data,” “Selected Historical Consolidated Financial Data” and “Unaudited Pro Forma
Consolidated Financial Statements” presents fairly the information shown therein as at the respective dates and for the respective periods specified and has been presented on a basis consistent with the audited consolidated financial statements
of the Company and its consolidated subsidiaries, and of the Acquired Companies set forth in the Registration Statement, the Statutory Prospectus and Prospectus, subject to such adjustments as shall be described in the footnotes to such financial
data in the Registration Statement, the Statutory Prospectus and Prospectus. 
  
 1.7 Pro Forma Financial Statements. 
  
 The unaudited condensed consolidated pro forma financial data and the related notes thereto set forth under the captions “Summary Historical and Pro Forma Consolidated Financial Data” and “Unaudited Pro
Forma Consolidated Financial Statements” in the Registration Statement, the Statutory Prospectus and the Prospectus presents fairly the information shown therein, have been prepared in accordance with the applicable requirements of Article 11
of Regulation S-X promulgated under Securities Exchange Act of 1934, as amended (the “Exchange Act”), have been properly compiled on a pro forma basis as described therein, and the assumptions used in the preparation thereof were
reasonable at the time made and the adjustments used therein are based upon good faith estimates and assumptions believed by the Company to be reasonable at the time made. 
  
 1.8 Auditor Independence. 
  

BDO Seidman, LLP, which has expressed its opinion with respect to the financial statements and schedules of the Company and its consolidated
subsidiaries and of MME filed as a part of the Registration Statement and included in the Registration Statement, the Statutory Prospectus and the Prospectus, is an independent certified public accountant with respect to the Company and its
subsidiaries and MME within the meaning of the Securities Act and the rules and regulations of the Commission adopted thereunder. 
  
 1.9 Due Incorporation. 
  
 The Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the State of Delaware, has the corporate
power and authority to own its property and to conduct its business as described in the Registration Statement, the Statutory Prospectus and the Prospectus and to enter into and perform its obligations under this Agreement, and is duly qualified to
transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing
would not have, individually or in the aggregate, a material adverse effect on the assets, properties, condition, financial or otherwise, or in the results of operations, business, affairs or business prospects of the Company and its subsidiaries,
taken as a whole (a “Material Adverse Effect”). 
  

 - 6 - 

 1.10 Subsidiaries. 
  
 Schedule E hereto accurately sets forth each such subsidiary of the Company and its jurisdiction of organization.
Each subsidiary of the Company has been duly organized, is validly existing as a corporation or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its organization, has the power and authority to
own its property and to conduct its business as described in the Registration Statement, the Statutory Prospectus and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its
business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not result in, individually or in the aggregate, a Material Adverse Effect. All of
the issued shares of capital stock of each subsidiary of the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are either owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities, claims, preemptive rights, rights of first refusal or similar rights, or restrictions upon voting or transfer. 
  
 1.11 Authorization of Underwriting Agreement. 
  
 This Agreement has been duly and validly authorized by all necessary corporate action in respect thereof, duly executed and delivered by the Company, and
is a valid and binding agreement of the Company, enforceable in accordance with its terms, except as rights to indemnification hereunder may be limited by applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 
  
 1.12 Description of Capital Stock. 
  
 The authorized, issued and outstanding capital stock of the Company conforms in all material respects to the description thereof contained in the
Registration Statement, the Statutory Prospectus and the Prospectus, and, as of the date hereof, the Company has authorized and outstanding capital stock as set forth in the column entitled “Actual” and in the corresponding line items
under the caption “Capitalization” in the Registration Statement, the Statutory Prospectus and the Prospectus. 
  
 1.13 Outstanding Securities. 
  
 All of the issued and outstanding shares of capital stock of the Company, including the Firm Shares to be sold by the Selling Stockholders, (i) have
been duly authorized and are validly issued, fully paid and non-assessable, (ii) were not issued in violation of any preemptive rights, rights of first refusal or other similar rights of any security holder of the Company or any other person,
and (iii) are not subject to preemptive rights, rights of first refusal or similar rights to subscribe for or to purchase or acquire any shares of capital stock of the Company or any of its subsidiaries, or any such rights pursuant to its
certificate of incorporation or bylaws or any agreement or instrument to or by which the Company or any of its subsidiaries is a party or bound. All sales of shares of capital stock of the Company prior to the date hereof were at all relevant times
duly registered under the Securities Act or were exempt from the 

  

 - 7 - 

 
registration requirements of the Securities Act, and all such sales of shares complied in all material respects with applicable state securities or Blue Sky
laws or were exempt from such applicable state securities or Blue Sky laws. Except as disclosed in the Registration Statement, the Statutory Prospectus and the Prospectus, the Company has not sold or issued any securities during the six-month period
preceding the date of the Prospectus, including any sales pursuant to Rule 144A, or Regulations D or S of, the Securities Act, other than shares issued pursuant to employee benefit plans, qualified stock option plans or other employee compensation
plans or pursuant to outstanding options, rights or warrants described in the Registration Statement, the General Disclosure Package and the Prospectus. 
  
 1.14 Validly Issued Shares. 
  
 The Shares to be sold by the Company have been duly authorized and, when issued and delivered by the Company in accordance with the terms of this
Agreement, will be validly issued, fully paid and non-assessable, and the issuance of such Shares will not be subject to any preemptive rights, rights of first refusal or other similar rights to subscribe for or to purchase or acquire any shares of
Common Stock of the Company or any of its subsidiaries, or any such rights pursuant to its certificate of incorporation or bylaws or any agreement or instrument to or by which the Company or any of its subsidiaries is a party or bound. 

 
 1.15 Registration Rights. 
  
 There are no contracts, agreements or understandings between the Company and
any person granting such person the right to require the Company to file a registration statement under the Securities Act with respect to any securities (debt or equity) of the Company or to require the Company to include such securities with the
Shares registered pursuant to the Registration Statement (collectively, “Registration Rights”), other than as set forth on Schedule F hereto. Schedule F hereto accurately sets forth the names of all holders of shares
of capital stock of the Company that have Registration Rights and the number of such shares of capital stock subject to Registration Rights. Prior to the date hereof, all holders listed on Schedule F (i) have waived in writing the
Registration Rights to which their shares relate in connection with the offering contemplated by this Agreement or (ii) have received written notice from the Company, in compliance with the terms of each holder’s Registration Rights
agreement, that such holders may exercise his, her or its Registration Rights with respect to all or any portion of the shares subject thereto and such holders have elected either to exercise the right to have all or a portion of their shares
included in the offering contemplated by this Agreement or to waive their rights to have their shares included in such offering. 
  
 1.16 Nasdaq; Exchange Act Registration. 
  
 The Shares have been listed for quotation on the National Association of Securities Dealers Automated Quotation (“Nasdaq”) National
Market System. A registration statement has been filed on Form 8-A pursuant to Section 12 of the Exchange Act, which complies in all material respects with the Exchange Act. The Company has taken no action designed to, or likely to have the
effect of, terminating the registration of the Common Stock under the Exchange Act or the quotation of the Common Stock on Nasdaq, nor has the Company received any notification that the Commission or the Nasdaq is contemplating terminating such
registration or quotation. 
  

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 1.17 No Conflicts. 
  
 The execution and delivery by the Company of, and the performance by the Company of its obligations under, this Agreement
will not contravene, result in a breach or violation of, or constitute a default under, or will not result in the creation or imposition of any lien, charge, claim or encumbrance upon any property or assets of the Company or any of its subsidiaries
pursuant to, (i) any provision of applicable law, (ii) any provision of the certificate of incorporation or bylaws or other organizational or governing documents of the Company or any of its subsidiaries, (iii) any agreement or other
instrument binding upon the Company or any of its subsidiaries or to which the Company or any of its subsidiaries is a party or to which any of its or their respective properties are subject, or (iv) any regulation, rule, judgment, order or
decree of any governmental body, agency or court having jurisdiction over the Company or any subsidiary, except, in the case of clauses (i), (iii) and (iv) above, where such violations, breaches, contraventions, liens, charges, claims or
encumbrances would not, individually or in the aggregate, result in a Material Adverse Effect. 
  
 1.18 No Consents. 
  
 (i)
No filing with, or authorization, approval, consent, license, order, registration, qualification or decree of, any court or governmental authority or agency, domestic or foreign, (ii) no authorization, approval, vote or other consent of any
stockholder or creditor of the Company, and (iii) no authorization, approval, vote or other consent of any other person or entity, is necessary or required for the performance by the Company of its obligations under this Agreement, for the
offering, issuance, sale or delivery of the Shares hereunder, or for the consummation by the Company of any of the other transactions contemplated by this Agreement, in each case on the terms contemplated by the Prospectus, except such as have been
already obtained under the Securities Act or the rules and regulations thereunder, or such as may be required under state securities or Blue Sky laws or the National Association of Securities Dealers, Inc. (the “NASD”). 

 
 1.19 No Material Adverse Change. 
  
 Subsequent to the respective dates as to which information is given in the
Registration Statement, the Statutory Prospectus and the Prospectus, (i) there has not occurred any Material Adverse Effect, (ii) except in the ordinary course of business, the Company and its subsidiaries have not incurred any material
liability or obligation, direct or contingent, nor entered into any material transaction, (iii) the Company has not purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on
its capital stock, and (iv) there has not been any material change in the capital stock, short-term debt or long-term debt of the Company and its subsidiaries. 
  
 1.20 Legal Proceedings; Statutes and Regulations. 
  
 There are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which the Company
or any of its subsidiaries is a party or to which 

  

 - 9 - 

 
any of the properties of the Company or any of its subsidiaries is subject (i) that are required to be described in the Registration Statement, the
Statutory Prospectus or the Prospectus and are not so described, or (ii) which would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. There are no material statutes or regulations applicable to the
Company or any of its subsidiaries, or its or their business operations or properties, that are required to be described in the Registration Statement, the Statutory Prospectus or the Prospectus that are not described as required. The statements
relating to legal matters and proceedings and statutes and regulations in the Registration Statement, the Statutory Prospectus and the Prospectus under the subcaptions “– Reimbursement Management,” “– Disease
Management,” “– Third Party Reimbursement, Cost Containment and Legislation,” “– Government Regulation,” and “– Legal Proceedings,” under the caption “Business,” in each case fairly and
accurately summarize such matters and proceedings in all material respects. 
  
 1.21 Contracts. 
  
 There
are no contracts or other documents which are required to be described in the Registration Statement, the Statutory Prospectus and the Prospectus or filed as exhibits to the Registration Statement by the Securities Act or the applicable rules and
regulations thereunder which have not been described in the Registration Statement, the Statutory Prospectus and the Prospectus or filed as exhibits to the Registration Statement. 
  
 1.22 Related Party Transactions. 
  
 No relationship, direct or indirect, exists between or among the Company, on the one hand, and the directors, officers,
stockholders, customers or suppliers of the Company, on the other hand, which is required to be described in the Registration Statement, the Statutory Prospectus and the Prospectus and which is not so described. There are no outstanding loans,
advances or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members. 
  
 1.23 Not an Investment Company. 
  
 The Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds
thereof as described in the Registration Statement, the Statutory Prospectus and the Prospectus, will not be an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
  
 1.24 No Violation. 
  
 The Company and its subsidiaries have conducted its and their businesses in
compliance with applicable laws, except where the failure to comply would not result in a Material Adverse Effect and neither the Company nor any of its subsidiaries is in violation of, and no event has occurred which with notice or lapse of time or
both would constitute a default under or in, (i) its certificate of incorporation or bylaws, (ii) the performance or observance of any material obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of
trust, loan agreement, lease or other agreement or instrument to which it is a party or by which it or any of its properties may be bound, or (iii) any federal, state, local or foreign law, statute, rule, regulation, decree, order, license or
permit, to which the Company or any of its 

  

 - 10 - 

 
subsidiaries or any of its or their properties or its or their businesses may be subject, including but not limited to the Medicare Prescription Drug,
Improvement and Modernization Act, the Prescription Drug Marketing Act, the Federal Food, Drug, and Cosmetic Act, the Federal Controlled Substances Act, the Federal Anti-Kickback Statute, the Federal Stark Law, the Federal False Claims Act, the
Federal Civil Monetary Penalties Law, the health information privacy and security regulations enacted under the Health Insurance Portability and Accountability Act of 1996, the applicable State pharmacy licensing laws, and the applicable State
unfair and deceptive trade practices and consumer protection laws except, for violations or defaults which would not, individually or in the aggregate, result in a Material Adverse Effect. 
  
 1.25 Governmental Permits. 
  
 The Company, its subsidiaries and each of the pharmacists employed by the
Company (i) have all licenses, certificates, authorizations, permits, approvals and other rights from, and have filed all reports, documents and other information required to be filed with, the appropriate federal, state, local or foreign
regulatory authorities necessary to conduct their respective businesses as now conducted (each, an “Authorization”) except for such Authorizations where the failure to possess such Authorization, or the invalidity of which,
individually or in the aggregate, would not have a Material Adverse Effect, (ii) have fulfilled and performed all obligations necessary to maintain each Authorization, and (iii) to the Company’s knowledge, there are no pending or
threatened actions, suits, proceedings or investigations that would reasonably be expected to result in the revocation, termination, suspension, modification or impairment of any Authorization, which revocation, termination, suspension, modification
or impairment would, individually or in the aggregate, result in a Material Adverse Effect. All such Authorizations are valid and in full force and effect and the Company, its subsidiaries and each of the pharmacists employed by the Company and its
subsidiaries are in compliance in all respects with the terms and conditions of all such Authorizations and with the rules and regulations of the regulatory authorities having jurisdiction with respect thereto except where the failure to comply
would not result in a Material Adverse Effect 
  
 1.26
Properties. 
  
 All real property, buildings and other
improvements held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and buildings or other improvements by the Company and its subsidiaries, and all such leases are in full force and effect. Neither the Company nor any of its subsidiaries has any notice of any claim of any sort that has been asserted by
anyone adverse to the rights of the Company or any of its subsidiaries under any of the leases mentioned above or affecting or questioning the rights of the Company or its subsidiaries in the continued possession of the leased premises under any
such lease. The Company and its subsidiaries have good and marketable title to all personal property owned by them which is material to the businesses of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in the Registration Statement, the Statutory Prospectus and the Prospectus or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such
property by the Company and its subsidiaries. 
  

 - 11 - 

 1.27 Environmental. 
  
 The Company and its subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local
laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses, and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance
with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, individually or in the aggregate, result in a Material
Adverse Effect. 
  
 1.28 Intellectual Property Rights.

  
 Except as disclosed in the Registration Statement, the
Statutory Prospectus and the Prospectus, the Company and its subsidiaries own, license or otherwise possess all rights to use, all software, hardware, systems, processes and other technology and all material patents, patent rights, inventions,
know-how (including trade secrets and other unpatented or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names, copyrights and other intellectual property rights (collectively, the
“Rights”) necessary for the conduct of its or their businesses as currently operated. To the Company’s knowledge, no claims have been asserted against the Company or any of the Company’s subsidiaries by any person with
respect to the use of any such Rights or challenging or questioning the validity or effectiveness of any such Rights. Except as disclosed in the Registration Statement, the Statutory Prospectus and the Prospectus, the continued use of the Rights in
connection with the business and operations of the Company and its subsidiaries does not, to the knowledge of the Company, infringe on the rights of any person, which, if the subject of an unfavorable decision, ruling or filing, would, individually
or in the aggregate, result in a Material Adverse Effect. 
  
 1.29
No Labor Disputes. 
  
 No material labor dispute with the
employees of the Company or any of its subsidiaries exists or is imminent; and the Company is not aware of any existing, threatened or imminent labor disturbance by the employees of any of its principal suppliers, manufacturers or contractors that
would, individually or in the aggregate, result in a Material Adverse Effect. 
  
 1.30 Insurance. 
  
 The
Company and its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged. There are no claims by the
Company or its subsidiaries under any insurance policy as to which any insurance company is denying liability or defending under a reservation of rights clause. Neither the Company nor any of its subsidiaries has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its or their businesses at a cost that would not, individually or in the
aggregate, result in a Material Adverse Effect. 
  

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 1.31 Taxes. 
  
 (i) Each of the Company and its subsidiaries has filed all federal, state, local and foreign tax returns and tax forms
required to be filed except where the failure to file would not have a Material Adverse Effect, (ii) such returns and forms were complete and correct in all material respects, and any taxes, including any penalties and interest, shown by such
returns or otherwise assessed that are due or payable have been paid, (iii) all payroll withholdings required to be made by the Company and its subsidiaries with respect to employees have been made, and (iv) there have been no tax
deficiencies asserted or, to the knowledge of the Company, threatened against the Company or its subsidiaries. 
  
 1.32 No Price Stabilization or Manipulation. 
  
 The Company has not taken, directly or indirectly, any action designed to or that would reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 
  
 1.33 Accounting Controls. 
  
 The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance regarding the (i) reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with GAAP, (ii) maintenance of records that in reasonable detail accurately and fairly reflect transactions and dispositions of the assets of the Company and its subsidiaries, (iii) recording of transactions
as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the Company and its subsidiaries are being made only in accordance with authorizations of management and directors of the
Company or the applicable subsidiary, and (iv) prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s or its subsidiaries’ assets that would have a Material Adverse Effect on the Company’s
consolidated financial statements. Except as described in the Registration Statement, the Statutory Prospectus and the Prospectus, the Company has not identified any material weakness in the Company’s “internal control over financial
reporting” as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) (whether or not remediated). 
  
 1.34 Exchange Act; Sarbanes-Oxley Act. 
  
 The Company has filed all documents required to be filed with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and
within the time periods required by the Exchange Act and such documents, at the time filed with Commission, conformed in all material respects to the requirements of the Exchange Act, and none of such documents when they were filed with the
Commission contained an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein not misleading. The Company is in compliance in all material respects with all of the provisions of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder (the “Sarbanes-Oxley Act”) that are effective and applicable to the Company. 
  

 - 13 - 

 1.35 Disclosure Controls and Procedures. 
  
 Management has established and maintains disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and its subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and that material information relating to the Company and its subsidiaries is made known to the
Company’s principal executive officer and principal financial officer, or persons performing similar functions, by others within those entities. Since the date of the Form 10-Q for the third quarter of 2005, there has been no change in the
Company’s internal controls that has materially affected, or is reasonably likely to materially affect, the Company’s disclosure controls. 
  
 1.36 Brokers Fees. 
  
 Except as disclosed in the Registration Statement, the Statutory Prospectus and the Prospectus, there are no contracts, agreements or understandings
between the Company and any person that would give rise to a valid claim against the Company or any of the Underwriters for a brokerage commission, finder’s fee or other like payment in connection with the transactions contemplated herein, the
Registration Statement, the Statutory Prospectus and the Prospectus or, to the Company’s knowledge, any contracts, agreements, understandings, payments, arrangements or issuances with respect to the Company or any of its officers, directors,
stockholders, employees or affiliates that may affect the Underwriters’ compensation as determined by the NASD. 
  
 1.37 Audit Committee. 
  
 The Company’s board of directors has validly appointed an audit committee whose composition satisfies the requirements of the Exchange Act, the rules
and regulations of the Commission adopted thereunder and Rules 4200 and 4350 of the rules of the NASD. The audit committee has adopted a charter that satisfies the Exchange Act, the rules and regulations of the Commission adopted thereunder and
Rules 4200 and 4350 of the NASD. 
  
 1.38 Mail Order Meds,
Inc. 
  
 Mail Order Meds, Inc. does not own, lease or
otherwise have any material assets and the Company has discontinued all material business operations related to Mail Order Meds, Inc. 
  
 2. Representations and Warranties and Agreements of the Selling Stockholders. Each of the Selling Stockholders severally, not jointly, represents
and warrants to and agrees with each of the Underwriters that: 
  

 - 14 - 

 2.1 Power and Authority. 
  
 If such Selling Stockholder is a corporation, partnership, limited partnership, limited liability company or trust, such
Selling Stockholder has been duly organized or incorporated and is validly existing as a corporation, partnership, limited partnership, limited liability company or trust in good standing under the laws of its jurisdiction of incorporation or
organization, as applicable. 
  
 2.2 Due Authorization.

  
 This Agreement has been duly authorized, executed and
delivered by or on behalf of such Selling Stockholder and, assuming due authorization, execution and delivery by each of the Company and the Representatives, is a valid and binding agreement of such Selling Stockholder, enforceable in accordance
with its terms, except as rights to indemnification hereunder may be limited by applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors or by general equitable principles. 
  
 2.3 Selling Stockholder Documents. 
  
 The Custody Agreement signed by such Selling Stockholder relating to the deposit of the Firm Shares to be sold by such Selling Stockholder (the “Custody Agreement”) and the Power of Attorney
appointing certain individuals as such Selling Stockholder’s attorneys-in-fact to the extent set forth therein, relating to the transactions contemplated hereby and by the Registration Statement (the “Power of Attorney”) have
been duly authorized, executed and delivered by such Selling Stockholder and, assuming due authorization, execution and delivery by Continental Stock Transfer & Trust Company, as Custodian, are valid and binding agreements of such Selling
Stockholder enforceable in accordance with their respective terms, except as rights to indemnification thereunder may be limited by applicable law and except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or law). 
  
 2.4 No Conflicts or Consents. 
  
 The execution and delivery by such Selling Stockholder of, and the
performance by such Selling Stockholder of its obligations under, this Agreement, the Custody Agreement and the Power of Attorney will not contravene, result in a breach or violation of, or constitute a default under or will not result in the
creation or imposition of any lien, charge, claim or encumbrance upon any property or assets of such Selling Stockholder pursuant to, (i) any provision of applicable law, (ii) any provision of the certificate of incorporation or by-laws or
other organizational or governing documents of such Selling Stockholder (if such Selling Stockholder is not an individual), (iii) any agreement or other instrument binding upon such Selling Stockholder or (iv) any regulation, rule,
judgment, order or decree of any governmental body, agency or court having jurisdiction over such Selling Stockholder. No filings with, or consent, approval, authorization or order of, or qualification with, any court or governmental authority or
agency, domestic or foreign, is required for the performance by such Selling Stockholder of its obligations under this Agreement, or the Custody Agreement or Power of 

  

 - 15 - 

 
Attorney of such Selling Stockholder, except such as have been already obtained under the Securities Act or the rules and regulations thereunder, or such as
may be required by the state securities or Blue Sky laws or the NASD in connection with the offer and sale of the Shares. 
  
 2.5 Good Title to Shares. 
  
 (a) Such Selling Stockholder is, or in the case of the Selling Stockholders identified on Schedule G hereto, upon the exercise of options or
warrants, as the case may be, with respect to underlying shares of Common Stock, such Selling Stockholder will be on the Closing Date, the lawful owner of the Firm Shares to be sold by such Selling Stockholder pursuant to this Agreement and
(b) such Selling Stockholder, other than those Selling Stockholders identified on Schedule G prior to the exercise of options or warrants, as the case may be, with respect to underlying shares of Common Stock, has and each such Selling
Stockholder on the Closing Date will have, valid title to the Firm Shares to be sold by such Selling Stockholder free and clear of any security interests, claims, liens, equities and other encumbrances and the legal right and power, and all
authorization and approval required by law, to enter into this Agreement, the Custody Agreement and the Power of Attorney and to sell, transfer and deliver the Firm Shares to be sold by such Selling Stockholder. The Firm Shares to be sold by such
Selling Stockholder are not subject to any preemptive rights, rights of first refusal or similar rights to subscribe for or to purchase or acquire any of such Firm Shares. 
  
 2.6 Delivery of Common Shares. 
  
 The Firm Shares to be sold by such Selling Stockholder pursuant to this Agreement are certificated securities in registered
form and are not held in any securities account or by or through any securities intermediary within the meaning of the Uniform Commercial Code as in effect in the State of New York. The Selling Stockholder has caused certificates for the number of
Firm Shares to be sold by such Selling Stockholder hereunder to be delivered to the Custodian, endorsed in blank or with blank stock powers duly executed, with a signature appropriately guaranteed, such certificates to be held in custody by the
Custodian for delivery pursuant to the provisions of this Agreement and the Custody Agreement. Delivery of the Firm Shares to be sold by such Selling Stockholder pursuant to this Agreement will pass valid title to such Firm Shares free and clear of
any security interests, claims, liens, equities and other encumbrances. 
  

 - 16 - 

 2.7 No Association with the NASD. 
  
 Except as described in the completed NASD Questionnaire provided by such Selling Stockholder to the Company prior to the
date of this Agreement, neither such Selling Stockholder nor any of its affiliates, directly, or indirectly through one or more intermediaries, is or controls, is controlled by, or is under common control with, or is a person associated with (as
defined in such NASD Questionnaire), any member firm of the National Association of Securities Dealers, Inc. 
  
 2.8 No Price Stabilization or Manipulation. 
  
 Such Selling Stockholder has not taken and will not take, directly or indirectly, any action designed to or that might be reasonably expected to cause or
result in any stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 
  
 2.9 Disclosure by Selling Stockholder in Registration Statement. 
  
 The information in the Registration Statement, the Statutory Prospectus and the Prospectus under the caption “Principal
and Selling Stockholders” and any other information furnished by or on behalf of such Selling Stockholder in writing expressly for use in the General Disclosure Package or any Selling Stockholder Free Writing Prospectus which specifically
relates to such Selling Stockholder does not, and will not on the Closing Date, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. Such Selling Stockholder is not prompted by any information concerning the Company or its subsidiaries which is not set forth in the Registration Statement, the Statutory Prospectus and
the Prospectus to sell its Shares pursuant to this Agreement. 
  
 2.10 Confirmation of Company Representations and Warranties. 
  
 If such Selling Stockholder is an executive officer or director of the Company, such Selling Stockholder has no reason to believe that the representations and warranties of the Company contained in Section 1
hereof are not true and correct. If such Selling Stockholder is an executive officer or director of the Company, such Selling Stockholder has reviewed and is familiar with the Registration Statement, the General Disclosure Package and the Prospectus
and the information in the Registration Statement, the General Disclosure Package and the Prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; provided, that the representations and warranties provided in this Section 2.10 do not apply to statements or omissions based upon information
relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use therein, which such Selling Stockholder and the Underwriters acknowledge consists only of that information identified
in the final sentence of Section 1.2. 
  

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 2.11 Lock-Up Agreement. 
  
 Such Selling Stockholder agrees to be bound by the terms of the “lock-up” agreement set forth in
Exhibit A hereto (the “Lock-Up Agreement”), between the Representatives and such Selling Stockholder; provided, however, that if such Selling Stockholder is the Chief Executive Officer of the Company as of the
date hereof, the restricted period set forth in the Lock-Up Agreement shall be for a period of 180 days, rather than 90 days. 
  
 2.12 Selling Stockholder Free Writing Prospectuses. 
  
 Such Selling Stockholder represents and agrees that, without the prior consent of Thomas Weisel Partners LLC, it has not made and will not make any offer
relating to the Shares that would constitute a “free writing prospectus,” as defined in Rule 405 under the Securities Act (any such “free writing prospectus” of any Selling Stockholder, a “Selling Stockholder Free Writing
Prospectus”), and it has not used, referred to, or distributed, and will not use, refer to or distribute, any such Selling Stockholder Free Writing Prospectus. Any Selling Stockholder Free Writing Prospectus consented to by Thomas Weisel
Partners LLC is hereinafter referred to as a “Selling Stockholder Permitted Free Writing Prospectus.” Each Selling Stockholder represents that it has treated or agrees that it has complied and will comply with the requirements of
Rule 433 under the Securities Act applicable to any Selling Stockholder Permitted Free Writing Prospectus of such Selling Stockholder, including timely filing with the Commission where required, legending and record keeping 
  
 3. Purchase and Sale Agreements. 
  
 3.1 Firm Shares. 
  
 Each Seller, severally and not jointly, hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to purchase from such Seller at $12.12435 per share (the
“Purchase Price”) the number of Firm Shares (subject to such adjustments to eliminate fractional shares as the Representatives may determine) that bears the same proportion to the number of Firm Shares to be sold by such Seller, as
set forth in Schedule B opposite the name of the Company and each other Seller, as the number of Firm Shares set forth in Schedule A hereto opposite the name of such Underwriter bears to the total number of Firm Shares.

  
 3.2 Additional Shares. 
  
 On the basis of the representations and warranties contained in this
Agreement, and subject to its terms and conditions, the Company agrees to sell to the Underwriters the Additional Shares, and the Underwriters shall have the right to purchase, severally and not jointly, up to 665,468 Additional Shares at the
Purchase Price. The Representatives may exercise this right on behalf of the Underwriters in whole or from time to time in part by giving notice to the Company in writing not later than 30 days after the date of this Agreement. Any exercise notice
shall specify the number of Additional Shares to be purchased by the Underwriters and the date on which such shares are to be purchased. A purchase date may be the same as the Closing Date (as defined below) but may not be earlier than the Closing
Date and no 

  

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purchase date may be later than 10 business days after the date of notice. Additional Shares may be purchased as provided in Section 4 hereof solely for
the purpose of covering over-allotments made in connection with the offering of the Firm Shares. If any Additional Shares are to be purchased, each Underwriter agrees, severally and not jointly, to purchase the number of Additional Shares (subject
to such adjustments to eliminate fractional shares as the Representatives may determine) that bears the same proportion to the total number of Additional Shares to be purchased as the number of Firm Shares set forth in Schedule A hereto
opposite the name of such Underwriter bears to the total number of Firm Shares. 
  
 3.3 Market Standoff Provision. 
  
 The Company hereby agrees that, without the prior written consent of Thomas Weisel Partners LLC (which consent may be withheld in its sole discretion) it will not, during the period commencing on the date hereof and ending 90 days after the
date of the Prospectus, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. Additionally, the
Company hereby agrees that without the prior written consent of Thomas Weisel Partners LLC (which consent may be withheld in its sole discretion), it will not, during the period commencing on the date hereof and ending 90 days after the date of the
Prospectus, file any registration statement with the Commission relating to the offering of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock. The restrictions set forth in this
Section 3.3 shall not apply to (i) the Shares to be sold hereunder, (ii) the issuance by the Company of options to purchase shares of the Company’s Common Stock under the Company’s existing plans as described in the
Prospectus, provided that such options do not become vested and exercisable during the 90-day restricted period, or (iii) the issuance by the Company of shares of Common Stock upon the exercise of options or warrants. 
  
 If, (i) during the last 17 days of the 90-day restricted period
described in this Section 3.3, the Company issues an earnings release or material news or a material event relating to the Company occurs, or (ii) prior to the expiration of the 90-day restricted period, the Company announces that it will
release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 90-day restricted period, the 90-day restricted period described in this Section 3.3
automatically shall extend until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event, unless in either clauses (i) or (ii) the Representatives waive
the extension in writing. 
  
 The Company acknowledges that the
Selling Stockholders are subject to similar restrictions as contained in this Section 3.3 pursuant to the “lock-up” agreement terms included in Exhibit A hereto on the transfer or other disposition of shares of capital stock of
the Company held by them, and the Company agrees to take all reasonable measures to enforce each such Selling Stockholders’ compliance with such restrictions. 
  

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 3.4 Terms of Public Offering. 
  
 The Sellers are advised by the Representatives that the Underwriters propose to make a public offering of their respective
portions of the Shares as soon after the Registration Statement and this Agreement have become effective as in the Representatives’ judgment is advisable. The Sellers are further advised by the Representatives that the Underwriters will offer
the Shares to the public initially at a price of $12.83 per share (the “Public Offering Price”) and to certain dealers selected by the Representatives at a price that represents a concession of not more than $0.42339 per share below
the Public Offering Price, and that any Underwriter may allow, and such dealers may reallow, a concession not in excess of $0.1000 per share to any other Underwriter or to certain other dealers. 
  
 3.5 No Fiduciaries. 
  
 The Sellers acknowledge and agree that (i) the purchase and sale of the
Shares pursuant to this Agreement is an arm’s-length commercial transaction between the Sellers, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith each Underwriter is acting as a principal and not
the agent or fiduciary of the Sellers, and (iii) no Underwriter has assumed an advisory responsibility in favor of the Sellers with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such
Underwriter has advised or is currently advising the Sellers on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement. 
  
 4. Payment and Delivery. 
  
 4.1 Firm Shares. 
  
 Payment for the Firm Shares to be sold by each Seller shall be made to such Seller in immediately available funds to bank accounts designated by the
Company and the Custodian against delivery of such Firm Shares for the respective accounts of the several Underwriters at 10:00 a.m., New York City time, on January 31, 2006, or at such other time on the same or such other date, not later than
February 10, 2006, as shall be designated in writing by the Representatives. The time and date of such payment are hereinafter referred to as the “Closing Date.” 
  
 4.2 Additional Shares. 
  
 Payment for any Additional Shares shall be made to the Company in immediately available funds against delivery of such Additional Shares for the
respective accounts of the several Underwriters at 10:00 a.m., New York City time, on the date specified in the notice described in paragraph 3.2 or at such other time on the same or on such other date, in any event not later than
February 24, 2006, as shall be designated in writing by the Representatives. The time and date of each payment for any Additional Shares are hereinafter referred to as the “Option Closing Date.” 
  

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 4.3 Delivery of Certificates. 
  
 Certificates for the Firm Shares and Additional Shares, if any, shall be in definitive form and registered in such names and
in such denominations as the Representatives shall request in writing not later than two full business day prior to the Closing Date or the Option Closing Date, as the case may be. The certificates evidencing the Firm Shares and Additional Shares
shall be delivered to the Representatives on the Closing Date or the Option Closing Date, as the case may be, for the respective accounts of the several Underwriters, with any transfer taxes payable in connection with the transfer of the Shares to
the Underwriters duly paid, against payment of the Purchase Price therefor. 
  
 5. Covenants. 
  
 In
further consideration of the agreements of the Underwriters herein contained, the Company covenants with each Underwriter (and, in certain provisions herein contained, each Underwriter covenants to the Company) as follows: 
  
 5.1 Furnish Copies of Registration Statement and Prospectus.

  
 To furnish to the Representatives, without charge, four
signed copies of the Registration Statement (including exhibits thereto) and, for delivery to each other Underwriter a conformed copy of the Registration Statement (without exhibits thereto) and, to furnish to the Underwriters in New York City,
without charge, prior to 10:00 a.m. New York City time on the business day next succeeding the date of this Agreement and during the period mentioned in paragraph 5.3 below, as many copies of the preliminary prospectus and the Prospectus
and any supplements and amendments thereto or to the Registration Statement as the Representatives may reasonably request. 
  
 5.2 Notification of Amendments or Supplements and Other Information. 
  
 Before amending or supplementing the Registration Statement or the Prospectus, to furnish to the Representatives a copy of
each such proposed amendment or supplement, and not to file any such proposed amendment or supplement to which the Representatives or counsel for the Underwriters reasonably object, and to file with the Commission within the applicable period
specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such rule. 
  
 The Company will notify the Representatives immediately, and confirm the notice in writing, (i) when any post-effective amendment to the Registration
Statement shall become effective, or any amendment or supplement to the Prospectus shall have been filed, (ii) of the receipt of any comments from the Commission, (iii) of any request by the Commission for any amendment to the Registration
Statement or any amendment or supplement to the Prospectus or for additional information, (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, any Rule 462(b) Registration
Statement or any post-effective amendment to the Registration Statement, or of any order preventing or suspending the use of any Preliminary Prospectus, or of the suspension of the qualification of the Shares for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or of any examination pursuant to Section 8(e) of the 

  

 - 21 - 

 
Securities Act concerning the Registration Statement and (v) if the Company becomes the subject of a proceeding under Section 8A of the Securities
Act in connection with the offering of the Shares. In addition, each Underwriter agrees to notify the Company immediately, and confirm notice in writing, if such Underwriter becomes subject of a proceeding under Section 8A of the Securities Act
in connection with the offering of Shares. 
  
 5.3 Filings of
Amendments or Supplements. 
  
 If, during such period after
the first date of the public offering of the Shares as in the opinion of counsel for the Underwriters the Prospectus is required by law to be delivered in connection with sales by an Underwriter or dealer (the “Prospectus Delivery
Period”), any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered to a
purchaser, not misleading, or if, in the reasonable opinion of counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own
expense, to the Underwriters and to the dealers (whose names and addresses the Representatives will furnish to the Company) to which Shares may have been sold by the Representatives on behalf of the Underwriters and to any other dealers upon
request, either amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances when the Prospectus is delivered to a purchaser, be misleading or so that
the Prospectus, as amended or supplemented, will comply with applicable law. 
  
 5.4 Blue Sky Laws. 
  
 To
use its reasonable efforts to qualify the Shares for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representatives shall reasonably request. In each jurisdiction in which the Shares have been so qualified, the
Company will file such statements and reports as may be required by the laws of such jurisdiction and shall maintain such qualifications in effect so long as required for the distribution of the Shares; provided however, that the Company shall not
be required in connection therewith, as condition thereof, to qualify as a foreign corporation or to execute a general consent to service of process in any jurisdiction or subject itself to taxation as doing business in any jurisdiction. 

 
 5.5 Earnings Statement. 
  
 To make generally available to its securityholders and to the
Representatives as soon as practicable, but in any event not later than eighteen months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Securities Act), an earnings statement of the Company and its
subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act and the rules and regulations thereunder (including, at the option of the Company, Rule 158). 
  
 5.6 Use of Proceeds. 
  
 The Company shall apply the net proceeds from the sale of the Shares sold by
it in the manner described under the caption “Use of Proceeds” in the Prospectus. 
  

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 5.7 Transfer Agent. 
  
 The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Common Stock. 
  
 5.8 Periodic Reporting Obligations. 
  
 During the Prospectus Delivery Period, the Company shall (i) file all
documents required to be filed with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods required by the Exchange Act and (ii) file all reports and documents required to be filed
with the Nasdaq National Market under applicable securities laws and by the Nasdaq National Market. 
  
 5.9 Preparation of Prospectus. 
  
 Immediately following the execution of this Agreement, the Company will, subject to Section 5.3 hereof, prepare the Prospectus containing the
information required by Rule 430A of the Securities Act and other selling terms of the Shares, the plan of distribution thereof and such other information as may be required by the Securities Act or rules and regulations thereunder or as the
Representatives and the Company may deem appropriate, and will file or transmit for filing with the Commission, in accordance with Rule 424(b) of the Securities Act (without reliance on Rule 424(b)(8) of the Securities Act), copies of the
Prospectus. 
  
 5.10 Notification of Earnings Releases or
Material News. 
  
 Prior to the expiration of the 90-day
period described in Section 3.3, the Company shall promptly notify the Representatives if it intends to release earnings results or becomes aware that material news or a material event concerning the Company will occur at any time prior to the
expiration of such 90-day restricted period through the 16-day period beginning on the last day of such 90-day restricted period. 
  
 5.11 Issuer Free Writing Prospectuses. 
  
 The Company represents and agrees that, unless it obtains the prior consent of Thomas Weisel Partners LLC, and each Underwriter represents and agrees
that, unless it obtains the prior consent of the Company and Thomas Weisel Partners LLC, it will not make any offer relating to the Shares that would constitute an “issuer free writing prospectus,” as defined in Rule 433, or that would
otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus consented to by Thomas Weisel Partners LLC is hereinafter referred to as an
“Issuer Permitted Free Writing Prospectus” and, collectively with any Selling Stockholder Permitted Free Writing Prospectuses, the “Permitted Free Writing Prospectuses.” The Company represents and agrees that it
will treat each Issuer Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433 under the Securities Act, and will comply with the requirements of Rules 164 and 433 under the Securities Act
applicable to any Issuer Permitted Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping. 
  

 - 23 - 

 The Company further represents and agrees that if at any time following issuance of an Issuer Represented
Free Writing Prospectus there occurred or occurs an event or development as a result of which any Issuer Represented Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or contained or
would contain an untrue statement of a material fact or omitted or would omit to state a material fact necessary to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company has
promptly notified or will promptly notify the Representatives and has promptly amended or will promptly amend or supplement, at its own expense, such Issuer Represented Free Writing Prospectus to eliminate or correct such conflict, untrue statement
or omission; provided, however, that the foregoing does not apply to statements or omissions made in any Issuer Represented Free Writing Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such
Underwriter through the Representatives expressly for use in any Issuer Represented Free Writing Prospectus, it being acknowledged that the only such information provided by the Underwriters expressly for use therein consists of the information set
forth in the final sentence of Section 1.2. 
  
 6.
Conditions to the Underwriters’ Obligations. 
  
 The
obligations of the Sellers to sell the Shares to the several Underwriters and the several obligations of the Underwriters to purchase and pay for the Shares on the Closing Date and on each Option Closing Date, as the case may be, are subject to the
following conditions: 
  
 6.1 Effective Registration
Statement. 
  
 The Registration Statement shall have become
effective not later than 4:00 p.m. (New York City time) on the date hereof. 
  
 6.2 Rule 462(b) Registration Statement. 
  
 If the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the date of this
Agreement, and the Company shall at the time of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee pursuant to Rule 111(b) under the Securities
Act. 
  
 6.3 Prospectus Filed with Commission. 

 
 The Company shall have filed the Prospectus with the Commission
(including the information required by Rule 430A under the Securities Act) in the manner and within the time period required by Rule 424(b) under the Securities Act (without reliance on Rule 424(b)(8) of the Act); or the Company shall have
filed a post-effective amendment to the Registration Statement containing the information required by such Rule 430A, and such post-effective amendment shall have become effective. 
  

 - 24 - 

 6.4 No Stop Order. 
  
 No stop order suspending the effectiveness of the Registration Statement, any Rule 462(b) Registration Statement, or
any post-effective amendment to the Registration Statement, shall be in effect on the Closing Date and each Option Closing Date, as the case may be, and no proceedings for such purpose shall have been instituted or threatened by the Commission on
the Closing Date and each Option Closing Date, as the case may be. 
  
 6.5 Nasdaq. 
  
 The Shares shall have been listed
for quotation on the Nasdaq National Market System. 
  
 6.6 No
NASD Objection. 
  
 The NASD shall have raised no objection
to the fairness and reasonableness of the underwriting terms and arrangements. 
  
 6.7 Representations and Warranties; Covenants. 
  
 The representations and warranties of the Company and the Selling Stockholders contained in this Agreement and in the certificates delivered pursuant to Sections 6.9 and 6.10 shall be true and correct when made, on
and as of the Applicable Time and on and as of the Closing Date and, with respect to the representations and warranties of the Company, on and as of each Option Closing Date, as the case may be, as if made on such date (except that those
representations and warranties that address matters only as of a particular date shall remain true and correct as of such date). The Company and the Selling Stockholders shall have performed in all material respects all covenants and agreements and
satisfied all the conditions contained in this Agreement required to be performed or satisfied by the Company and the Selling Stockholders at or before the Closing Date and, with respect to the covenants, agreements and conditions of the Company,
each Option Closing Date, as the case may be. 
  
 6.8 No
Material Adverse Change. 
  
 There shall not have occurred
any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, businesses, operations or prospects of the Company and its subsidiaries, individually or as a whole, from that set forth in
the Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in the Representative’s reasonable judgment, is material and adverse and that makes it, in the Representative’s judgment,
impracticable to market the Shares on the terms and in the manner contemplated in the Prospectus. 
  
 6.9 Officer’s Certificate. 
  
 The Representatives shall have received on the Closing Date and on each Option Closing Date a certificate, dated the Closing Date or the Option Closing
Date, as applicable, and signed by the Chief Executive Officer and by the Chief Financial Officer of the Company, representing (i) that the representations and warranties contained in this Agreement are true and 

  

 - 25 - 

 
correct as of the Closing Date or the Option Closing Date, as applicable, (ii) that the Company has complied with all of the agreements and has
satisfied all of the conditions on its part to be performed or satisfied hereunder on or before such Closing Date or Option Closing Date, as applicable. 
  
 6.10 Selling Stockholders Certificate. 
  
 The Underwriters shall have received on the Closing Date a certificate, dated the Closing Date, and signed by the Attorney-in-Fact of each Selling
Stockholder, to the effect that the representations and warranties of the Selling Stockholders contained in this Agreement are true and correct as of the Closing Date and that the Selling Stockholders have complied with all of the agreements and
satisfied all of the conditions on their part to be performed or satisfied hereunder on or before the Closing Date. 
  
 6.11 Opinion of Company Counsel. 
  
 The Representatives shall have received on the Closing Date an opinion of Kirkland & Ellis LLP, counsel for the Company, dated the Closing Date,
to the effect set forth in Exhibit B-1 attached hereto. The opinion shall be rendered to the Representatives as representatives of the Underwriters at the request of the Company and shall so state therein. 
  
 6.12 Opinion of Special Regulatory Counsel. 
  
 The Representatives shall have received on the Closing Date an opinion of
Nixon Peabody LLP, special regulatory counsel to the Company, dated the Closing Date, to the effect set forth in Exhibit B-2 attached hereto. The opinion shall be rendered to the Representatives as representatives of the Underwriters at
the request of the Company and shall so state therein. 
  
 6.13
Opinion of Selling Stockholders’ Counsel. 
  
 The
Underwriters shall have received on the Closing Date an opinion of Gusrae, Kaplan, Bruno & Nusbaum PLLC, counsel for the Selling Stockholders, dated the Closing Date, the form of which is attached hereto as Exhibit B-3. The opinion
shall be rendered to the Underwriters at the request of the Selling Stockholders and shall so state therein. 
  
 6.14 Opinion of Underwriters’ Counsel. 
  
 The Representatives shall have received on the Closing Date an opinion of Alston & Bird LLP, counsel for the Underwriters, dated the Closing
Date, with respect to the Registration Statement, the Prospectus and other related matters as the Representatives may request, and the Company shall have furnished to such counsel such documents as they request for the purpose of enabling them to
pass upon such matters. 
  
 6.15 Opinion of Special Local
Counsel. 
  
 The Representatives shall have received on the
Closing Date (i) an opinion of Johnson, Pope, Bokor, Ruppell & Burns, LLP, special Florida counsel to the Company, dated the Closing Date, to the effect set forth in Exhibit B-4 attached hereto, (ii) an opinion of Perkins

  

 - 26 - 

 
Coie LLP, special Washington counsel to the Company, dated the Closing Date, to the effect set forth in Exhibit B-5 attached hereto, and an opinion of
Winstead Sechrest & Minick P.C., special Texas counsel to the Company, dated the Closing Date, to the effect set forth in Exhibit B-6 attached hereto. The opinions shall be rendered to the Representatives as representatives of the
Underwriters at the request of the Company and shall so state therein. 
  
 6.16 Comfort Letter from BDO Seidman, LLP. 
  
 The Representatives shall have received, on each of the date hereof, the Closing Date and each Option Closing Date, a letter dated the date hereof, the Closing Date or the Option Closing Date, as the case may be, in form and substance
satisfactory to the Representatives, from BDO Seidman, LLP, independent public accountants, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information of the Company and its consolidated subsidiaries and of the Acquired Companies contained in the Registration Statement and the Prospectus; provided that the letter delivered on the Closing Date
shall use a “cut-off date” not earlier than the date hereof. 
  
 6.17 Selling Stockholder Documents. 
  
 On the
date hereof, the Company and the Selling Stockholders shall have furnished for review by the Representatives copies of the Powers of Attorney and Custody Agreements executed by each of the Selling Stockholders and such further information,
certificates and documents as the Representatives may reasonably request. 
  
 6.18 Additional Documents. 
  
 On the Closing Date and on each Option Closing Date, the Representatives and counsel for the Underwriters shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass
upon the issuance and sale of the Shares as contemplated herein or in order to evidence the accuracy of any of the representations and warranties or the satisfaction of any of the conditions or agreements herein contained. 
  
 The several obligations of the Underwriters to purchase Additional Shares
hereunder are subject to the satisfaction of each of the above conditions on or prior to the Option Closing Date and to the delivery to the Representatives on the Option Closing Date of such documents as the Representatives may reasonably request
with respect to the good standing of the Company, the due authorization and issuance of the Additional Shares and other matters related to the issuance of the Additional Shares. 
  
 7. Expenses. 
  
 Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, (a) the Company agrees to pay or
cause to be paid all expenses incident to the performance of its obligations under this Agreement, including: (i) the fees, disbursements and expenses of each of the Company’s counsel, the Company’s accountants and one counsel for the
Selling Stockholders (which shall be Gusrae, Kaplan, Bruno & Nusbaum 

  

 - 27 - 

 
PLLC) in connection with the preparation and negotiation of this Agreement and the registration and delivery of the Shares under the Securities Act, and all
other fees or expenses in connection with the preparation and filing of the Registration Statement, any preliminary prospectus, any Permitted Free Writing Prospectus the Prospectus (including any costs associated with the electronic delivery of
these materials), and amendments and supplements to any of the foregoing, including all printing costs associated therewith, and the mailing and delivering of copies thereof to the Underwriters and dealers, in the quantities as may be specified by
the Underwriters, (ii) the fees and expenses of the Custodian, any attorney-in-fact under the Power of Attorney and expenses associated with communications with and collection of documents from the Selling Stockholders, (iii) except as
provided in clause (b) below, all costs and expenses related to the transfer and delivery of the Shares to the Underwriters, including any transfer or other taxes payable thereon, (iv) the cost of printing or producing any Blue Sky or
legal investment memorandum in connection with the offer and sale of the Shares under state securities laws and all expenses in connection with the qualification of the Shares for offer and sale under state securities laws as contemplated by
Section 5.4 hereof, including filing fees and the reasonable fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky or legal investment memorandum (such fees and
disbursements not to exceed $5,000), (v) all filing fees and the reasonable fees and disbursements of counsel to the Underwriters incurred in connection with the review and qualification of the offering of the Shares by the NASD (such fees and
disbursements not to exceed $20,000), (vi) all costs and expenses incident to listing the Shares on the Nasdaq National Market, (vii) the cost of printing certificates, if any, representing the Shares, (viii) the costs and charges of
any transfer agent, registrar or depositary, (ix) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Shares, including,
without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging
expenses of the representatives and officers of the Company and any such consultants, (x) all expenses in connection with any offer and sale of the Shares outside of the United States, if any, including filing fees and reasonable fees and
disbursements of counsel for the Underwriters in connection with offers and sales outside of the United States, and (xi) all other costs and expenses incident to the performance of the obligations of the Company hereunder for which provision is
not otherwise made in this Section, and (b) each Selling Stockholder will bear its own costs and expenses, including any fees and expense of counsel or other advisors for such Selling Stockholders, other than the fees and expenses of the one
counsel for the Selling Stockholders paid by the Company as provided in Section 7(a)(i) above, and any transfer or other taxes payable on the transfer and delivery of the Shares by such Selling Stockholder to the Underwriters. It is understood,
however, that except as provided in this Section, Section 8 entitled “Indemnity and Contribution,” and the last paragraph of Section 11 below, the Underwriters will pay all of their costs and expenses, including fees and
disbursements of their counsel and any advertising expenses connected with any offers they may make. 
  

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 8. Indemnity and Contribution. 
  
 8.1 Indemnification by the Company and the Selling Stockholders Who Are Directors or Executive Officers. 

 
 The Company and each Selling Stockholder who is a director or executive
officer of the Company on the date of this Agreement, jointly and severally, agree to indemnify and hold harmless each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act, and each affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal
or other expenses reasonably incurred in connection with defending or investigating any such action or claim) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or
any amendment thereof, any Preliminary Prospectus, any Issuer Represented Free Writing Prospectus or the Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), in any Blue Sky application
or other information or other documents executed by the Company and filed in any state or other jurisdiction to qualify any or all of the Shares under the securities laws thereof, or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in light of the circumstances under which they were made in the case of a Prospectus); provided, however, that the Company
shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any
Issuer-Represented Free Writing Prospectus or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives expressly for use
therein, it being acknowledged by the Company that the only such information provided by the Underwriters expressly for use therein consists of the information set forth in the final sentence of Section 1.2. 
  
 8.2 Indemnification by Each Selling Stockholder. 
  
 Each Selling Stockholder of the Company on the date of this Agreement
agrees, severally and not jointly, to indemnify and hold harmless each Underwriter and each person, if any, who controls such Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and
each affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in
connection with defending or investigating any such action or claim) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendment thereof, any Preliminary
Prospectus, any Issuer Represented Free Writing Prospectus, any Selling Stockholder Free Writing Prospectus or the Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or arising out of
or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in light of the circumstances under which they were made in the case of a

  

 - 29 - 

 
Prospectus), but only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration
Statement, any Preliminary Prospectus, any Issuer Represented Free Writing Prospectus, any Selling Stockholder Free Writing Prospectus or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by the Selling Stockholders for use therein. 
  
 8.3 Indemnification by the Underwriters. 
  
 Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, each Selling Stockholder, the directors of the Company, the officers of the Company who sign the Registration Statement,
each person, if any, who controls the Company or any Selling Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of the Company and each Selling Stockholder within
the meaning of Rule 405 under the Securities Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any
such action or claim) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendment thereof, any Preliminary Prospectus, any Issuer Represented Free Writing
Prospectus or the Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or arising out of or based upon any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading (in light of the circumstances under which they were made in the case of a Prospectus), but only with reference to information relating to such Underwriter furnished to the
Company in writing by such Underwriter through the Representatives expressly for use in the Registration Statement, any preliminary prospectus, any Issuer Represented Free Writing Prospectus, Selling Stockholder Free Writing Prospectus, the
Prospectus or any amendments or supplements thereto, it being acknowledged by the Company and each Selling Stockholder that the only such information provided by the Underwriters expressly for use therein consists of the information set forth in the
final sentence of Section 1.2. 
  
 8.4 Indemnification
Procedures. 
  
 In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to this Section 8 (the “Indemnified Party”), the Indemnified Party shall promptly notify the person
against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall retain counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and any others the
Indemnifying Party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel, or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the Indemnifying Party and the Indemnified Party and representation of both parties by the same counsel would be ethically impermissible due to actual or potential 

  

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differing interests between them. It is understood that the Indemnifying Party shall not, in respect of the legal expenses of any Indemnified Party in
connection with any proceeding or related proceedings in the same jurisdiction, be liable for (i) the fees and expenses of more than one separate firm (in addition to any local counsel) for all Underwriters and all persons, if any, who control
any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act or who are affiliates of any Underwriter within the meaning of Rule 405 under the Securities Act, (ii) the fees and
expenses of more than one separate firm (in addition to any local counsel) for the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, and (iii) the fees and expenses of more than one separate firm (in addition to local counsel) for all Selling Stockholders and all persons, if any, who control any Selling Stockholder
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such firm for the Underwriters and such control
persons and affiliates of any Underwriters, such firm shall be designated in writing by Thomas Weisel Partners LLC. In the case of any such firm for the Company, and such directors, officers and control persons of the Company, such firm shall be
designated in writing by the Company. In the case of any such firm for the Selling Stockholders and such control persons of any Selling Stockholders, such firm shall be designated in writing by the persons named as attorneys-in-fact for the Selling
Stockholders under the Powers of Attorney. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Party agrees to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect the
settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an
actual or potential party to such action or claim) unless such settlement, compromise or judgment includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim, and does not include a statement as
to or an admission of fault, culpability or a failure to act, by or on behalf of any Indemnified Party. 
  
 8.5 Limitation of Selling Stockholder Liability. 
  
 The liability of each Selling Stockholder under the indemnity and contribution provisions of this Section 8 shall be limited to an amount equal to
the aggregate offering price of the aggregate number of Shares sold by such Selling Stockholder, less the underwriting discount, as set forth on the front cover page of the Prospectus (“Maximum Stockholder Liability Amount”). If the
Underwriters or any affiliated party of any Underwriter shall have a claim for indemnification or contribution against the Company and the Selling Stockholders who are directors or executive officers of the Company pursuant to Section 8.1, the
Underwriters or the affiliated party of an Underwriter, as the case may be, (i) first shall seek to obtain reimbursement, indemnification or contribution for any losses, expenses, liabilities or claims arising under Section 8.1 from the
Company and (ii) if the Company shall have failed, after reasonable efforts on the part of such Underwriter or affiliated party of such Underwriter, to agree to satisfy such request for reimbursement, indemnification or contribution in full
within 30 

  

 - 31 - 

 
days, then the Underwriters or affiliated party of an Underwriter may seek to obtain reimbursement, indemnification or contribution, on a joint and several
basis, from the Selling Stockholders who are directors or executive officers of the Company; provided, however, in accordance with the 1st sentence of this Section 8.5, no Selling Stockholder who is an officer or director of the Company shall incur liability in excess of such Selling Stockholder’s Maximum Stockholder Liability
Amount; provided, further however, that the Underwriters and any affiliated party of such Underwriter shall not be required to effect such initial demand upon the Company and wait such 30 day period, in accordance with clause (i) above,
if it would prejudice their right to indemnification from any Selling Stockholder. The indemnity agreement set forth herein is not exclusive of any agreement the Company may have with the Selling Stockholders relating to indemnification, and nothing
contained in this Agreement shall affect any obligation or liability the Company may have to one or more of the Selling Stockholders, or one or more of the Selling Stockholders may have to the Company, pursuant to other agreements. 
  
 8.6 Contribution Agreement. 
  
 To the extent the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Party under such Section 8, in lieu of indemnifying such Indemnified Party thereunder,
shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party or
Parties, on the one hand, and the Indemnified Party or Parties, on the other hand, from the offering of the Shares or (ii) if the allocation provided by clause 8.6(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause 8.6(i) above but also the relative fault of the Indemnifying Party or Parties, on the one hand, and of the Indemnified Party or Parties, on the other hand, in
connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Sellers, on the one hand, and the Underwriters,
on the other hand, in connection with the offering of the Shares shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Shares (before deducting expenses) received by each Seller and the total
underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the total public offering price of the Shares. The relative fault of the Sellers, on the one hand,
and the Underwriters, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Sellers or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Underwriters’ respective obligations to contribute
pursuant to this Section 8.6 are several in proportion to the respective number of Shares they have purchased hereunder, and not joint. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action,
suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 8.6, notify such party or parties from whom contribution may be sought, but the omission so to
notify such party or parties from whom contribution may be sought shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 8.6, except to the extent the 

  

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party or parties from whom contribution may be sought are actually and adversely prejudiced as a result of the failure to receive notice. No party shall be
liable for contribution with respect to any action, suit, proceeding or claim settled without its written consent. 
  
 8.7 Contribution Amounts. 
  
 The Sellers and the Underwriters agree that it would not be just or equitable if contribution provided by this Section 8 were determined by pro
rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8.7. The amount paid or payable by
an Indemnified Party as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, no Underwriter shall be required to contribute any amount in excess of the amount by
which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. 
  
 8.8 Survival of Provisions. 
  
 The indemnity and contribution provisions contained in this Section 8
and the representations, warranties and other statements of the Company and the Selling Stockholders contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Underwriter or any person controlling any Underwriter, any Selling Stockholder or any person controlling any Selling Stockholder, or the Company, its officers or directors or any person
controlling the Company and (iii) acceptance of and payment for any of the Shares. 
  
 9. Effectiveness. 
  
 This
Agreement shall become effective upon the execution and delivery hereof by the parties hereto. 
  
 10. Termination. 
  
 This
Agreement shall be subject to termination by notice given by the Representatives to the Company and the Selling Stockholders, if (a) after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally
shall have been suspended or materially limited on or by, as the case may be, any of the New York Stock Exchange, the American Stock Exchange, or the Nasdaq National Market, (ii) trading of any securities of the Company shall have been
suspended on any exchange or in any over-the-counter market, (iii) a general moratorium on commercial banking activities in New York shall have 

  

 - 33 - 

 
been declared by either Federal or New York state authorities, (iv) in the reasonable judgment of the Representatives, there shall have occurred any
material adverse change in the financial markets, beyond normal market fluctuations, as the result of any outbreak or escalation of hostilities, directly or indirectly, involving the United States or the declaration by the United States of a
national emergency or war or any change in financial markets or any calamity or crisis after the date of this Agreement that has an impact on the financial markets, or (v) in the reasonable judgment of the Representatives, there shall have
occurred any material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or otherwise, or in the earnings, business, operations or prospects, whether or not
arising from transactions in the ordinary course of business, of the Company and its subsidiaries, taken as a whole, and (b) in the case of any of the events specified in clauses 10(a)(i) through 10(a)(v), such event, individually or
together with any other such event, makes it, in the reasonable judgment of the Representatives, impracticable to market the Shares on the terms and in the manner contemplated in the Prospectus. 
  
 If this Agreement shall be terminated by the Underwriters, or any of them,
pursuant to Sections 10(a)(ii) or 10(a)(v) hereof, the Company will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect to themselves for all out-of-pocket expenses (including the documented fees and
disbursements of their counsel) reasonably incurred by such terminating Underwriters in connection with this Agreement and the offering contemplated hereunder. 
  

If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure or refusal on the part of any Seller to comply with
the terms or to fulfill any of the conditions of this Agreement, or if for any reason any Seller shall be unable to perform its obligations under this Agreement, the Company will reimburse the Underwriters or such Underwriters as have so terminated
this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the documented fees and disbursements of their counsel) reasonably incurred by such Underwriters in connection with this Agreement or the offering
contemplated hereunder. 
  
 11. Defaulting Underwriters.

  
 If, on the Closing Date or the Option Closing Date, as the
case may be, any one or more of the Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or Underwriters agreed
but failed or refused to purchase is not more than one-tenth of the aggregate number of the Shares to be purchased on such date, the other Underwriters shall be obligated severally in the proportions that the number of Firm Shares set forth opposite
their respective names in Schedule A bears to the aggregate number of Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as the Representatives may specify, to purchase the
Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date; provided that in no event shall the number of Shares that any Underwriter has agreed to purchase pursuant to this Agreement be
increased pursuant to this Section 11 by an amount in excess of one-ninth of such number of Shares without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Firm
Shares and the aggregate 

  

 - 34 - 

 
number of Firm Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Firm Shares to be purchased, and
arrangements satisfactory to the Representatives, the Company and the Selling Stockholders for the purchase of such Firm Shares are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter, the Company or the Selling Stockholders. In any such case either the Representatives or the relevant Sellers shall have the right to postpone the Closing Date, but in no event for longer than 7 days, in order that the
required changes, if any, in the Registration Statement and in the Prospectus or in any other documents or arrangements may be effected. If, on the Option Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Additional
Shares and the aggregate number of Additional Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Additional Shares to be purchased, the non-defaulting Underwriters shall have the option to
(i) terminate their obligation hereunder to purchase Additional Shares or (ii) purchase not less than the number of Additional Shares that such non-defaulting Underwriters would have been obligated to purchase in the absence of such
default. Any action taken under this paragraph shall not relieve any defaulting Underwriter from liability to the Company and the non-defaulting Underwriters arising out of or related to any default of such Underwriter under this Agreement.

  
 12. Failure of the Selling Stockholders to Sell and Deliver
Shares. 
  
 If one or more of the Selling Stockholders shall
fail to sell and deliver to the Underwriters the Firm Shares to be sold and delivered by such Selling Stockholders at the Closing Date pursuant to this Agreement, then the Underwriters may at their option, by written notice from the Representatives
to the Company and the Selling Stockholders, either (i) terminate this Agreement without any liability on the part of any Underwriter or, except as provided in Sections 7 and 8 hereof, the Company or the non-defaulting Selling Stockholders, or
(ii) purchase the shares which the Company and other Selling Stockholders have agreed to sell and deliver in accordance with the terms hereof. If one or more of the Selling Stockholders shall fail to sell and deliver to the Underwriters the
Firm Shares to be sold and delivered by such Selling Stockholders pursuant to this Agreement at the Closing Date, then the Underwriters shall have the right, by written notice from the Representatives to the Company and the Selling Stockholders, to
postpone the Closing Date but in no event for longer than 7 days in order that the required changes, if any, to the Registration Statement and the Prospectus or any other documents or arrangements may be effected. No action taken pursuant to this
Section 12 shall relieve any Selling Stockholder so defaulting from liability, if any, in respect of such default. 
  
 13. Counterparts. 
  
 This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument. 
  
 14. Headings; Table of Contents.

  
 The headings of the sections of this Agreement and the table
of contents have been inserted for convenience of reference only and shall not be deemed a part of this Agreement. 
  

 - 35 - 

 15. Notices. 
  
 All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the
parties hereto as follows: 
  
 If to the Representatives:

  
 Thomas Weisel Partners LLC 
 390 Park Avenue, 16th Floor 
 New York, NY 10022 
 Facsimile: (212) 271-3747 
 Attention: Brent Milner 
  
 with a
copy to: 
  
 Thomas Weisel Partners LLC

 One Montgomery Street, Suite 3700 
 San Francisco, California 94104 
 Facsimile: (415) 364-2694 
 Attention: Jack Helfand, Esq. 
  
 If to the Company: 
  
 Allion Healthcare, Inc. 
 1660 Walt Whitman Road, Suite 105 
 Melville, New York 11747 
 Facsimile: (631) 547-6532 
 Attention: Michael P. Moran 
  
 with a copy to: 
  
 Kirkland & Ellis LLP 
 655 15th Street, N.W., Suite 1200 
 Washington, DC 20005 
 Facsimile: 202-879-5200 
 Attention: Mark D. Director, Esq. 
  
 If to the Selling Stockholders: 
  
 Continental Stock Transfer & Trust Company, as
Custodian 
 17 Battery Place – 8th Floor 
 New York, New York 10004 
 Facsimile: 212-509-5150 
 Attention: Felix Orihuela 
  

 - 36 - 

 With copy to: 
  

Gusrae, Kaplan, Bruno & Nusbaum PLLC 
 120 Wall Street – 11th Floor 
 New York, New York 10005 
 Facsimile: 212-809-5449 
 Attention: Lawrence G. Nusbaum, Esq. 
  
 Any party
hereto may change the address for receipt of communications by giving written notice to the others. 
  
 16. Successors. 
  
 This Agreement will inure to the benefit of and be binding upon the parties hereto, including any substitute Underwriters pursuant to Section 11
hereof, and to the benefit of the officers and directors and controlling persons referred to in Section 8, and in each case their respective successors, and no other person will have any right or obligation hereunder. The term
“successors” shall not include any purchaser of the Shares as such from any of the Underwriters merely by reason of such purchase. 
  
 17. Partial Unenforceability. 
  
 The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other
Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are
necessary to make it valid and enforceable. 
  
 18. Governing
Law. 
  
 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE. 
  
 19. Consent to Jurisdiction. 
  
 Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related
Proceedings”) may be instituted in the federal courts of the United States of America located in the City of New York or the courts of the State of New York in each case located in the City of New York (collectively, the “Specified
Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such
jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action
or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree
not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum. 
  

 - 37 - 

 20. Entire Agreement. 
  
 This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral
and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. 
  
 21. Amendments. 
  
 This Agreement may only be amended or modified in writing, signed by all of the parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit. 
  
 22. Sophisticated Parties. 
  
 Each of the parties hereto acknowledges that it is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including, without limitation, the indemnification and
contribution provisions of Section 8, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Section 8 hereto fairly allocate the risks in light of the ability of the parties
to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement, any preliminary prospectus and the Prospectus (and any amendments and supplements thereto), as required
by the Securities Act and the Exchange Act. 
  
 23. Certain
Agreements, Waivers and Acknowledgements. 
  
 Each Selling
Stockholder acknowledges and agrees that any rights that such Selling Stockholder may have pursuant to any agreement with the Company with respect to the registration of securities of the Company in connection with this offering of the Shares as
contemplated by this Agreement, are hereby satisfied and waived. 
  
 [Remainder of page intentionally left blank] 
  

 - 38 - 

 If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the
enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms. 
  

			
	Very truly yours,
	
	ALLION HEALTHCARE, INC.
		
	By:	 	 /s/ Michael P. Moran

	Name:	 	Michael P. Moran
	Title:	 	Chairman of the Board, Chief Executive Officer and President
	
	 The Selling Stockholders
 named in
Schedule B hereto acting severally

		
	By:	 	 /s/ James G. Spencer

	 	 	Attorney-in-Fact

  
 Accepted as of the date hereof 
  
 Thomas Weisel Partners LLC 
 William Blair & Company, L.L.C. 
 First Albany Capital Inc. 
 Susquehanna Financial Corp. 
  
 Acting severally on behalf 
     of themselves and the 
     several Underwriters named 
     in Schedule A hereto. 
  

					
	 By: Thomas Weisel Partners LLC

			
	 By:
	 	 	 	 /s/ Brent Milner

	 Name:
	 	 	 	Brent Milner
	 Title:
	 	 	 	Partner, Head of Healthcare Investment Banking

  

 - 39 -

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