Document:

Employment Agreement between Alexion Pharmaceuticals & Stephen P. Squinto, Ph.D.

 Exhibit 10.3 
  
 EMPLOYMENT AGREEMENT 
  
 This EMPLOYMENT AGREEMENT (the “Agreement”) dated as of October 20, 2003 by and between Alexion Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), and Stephen P. Squinto, Ph.D. (the “Executive”). 
  
 WITNESSETH 
  
 WHEREAS, the Company and Executive are parties to that certain Employment Agreement dated as of October 22, 1997 (the “Old Employment Agreement”); 
  
 WHEREAS, the Old Employment Agreement expired on March 23, 2002, and the Company and Executive desire to enter into a new
Employment Agreement; 
  
 NOW, THEREFORE, in consideration of the
premises and the mutual covenants and agreements herein contained, the parties hereto agree as follows: 
  
 1. Employment. Duties and Acceptance. 
  
 (a) The Company hereby employs the Executive, for the Term (as hereinafter defined), to render full-time services to the Company as Executive Vice
President and Head of Research, and to perform such duties commensurate with such office as the Executive shall reasonably be directed by the Board of Directors (the “Board”) of the Company to perform, which duties shall be
consistent with the provisions of the Bylaws in effect on the date hereof that relate to the duties of the Executive Vice President and Head of Research. The Executive will report directly to the Chief Executive Officer. 
  
 (b) The Executive hereby accepts such employment and agrees to render the
services described above. 
  
 (c) The principal place of
employment of the Executive hereunder shall at all times during the Term be in the greater Cheshire, Connecticut area, or other locations acceptable to the Executive, in the Executive’s sole discretion. 
  
 (d) With the prior approval of the Chief Executive Officer of the Company,
the Executive may serve on boards of directors of non-profit institutions and other companies that are not competitive with the Company, and participate in professional activities, (collectively, “Permitted Activities”);
provided, however, that such Permitted Activities do not interfere with the Executive’s duties to the Company. 
  

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 Exhibit 10.3 
  
 2. Term of Employment. 
  
 The term of the Executive’s employment under this Agreement (the “Term”) commences as of October 1, 2003 (the “Effective
Date”) and shall end on the third anniversary thereof, unless sooner terminated pursuant to Section 6, 7 or 8 of this Agreement. Notwithstanding the foregoing, unless notice is given by the Executive or the Company at least six months prior
to the expiration of the Term of this Agreement (or at least six months prior to the expiration of any extension hereof), the Term of the Agreement shall be automatically extended by one year from the date it would otherwise end (whether upon
expiration of the original Term or any extension(s) thereof), unless sooner terminated pursuant to Section 6, 7 or 8 hereof. 
  
 3. Compensation and Benefits. 
  
 (a) As compensation for services to be rendered pursuant to this Agreement, the Company agrees to pay the Executive, during the Term, an annual base
salary of not less than the Executive’s base salary in effect immediately prior to the Effective Date (the “Base Salary”), payable in accordance with its regular payroll practices. The Executive’s Base Salary hereunder
shall be reviewed as of July 31, 2004 and at least annually thereafter during the Term of the Agreement for increase in the discretion of the Board of Directors or the Compensation Committee of the Board of Directors, after consultation with the
Company’s Chief Executive Officer. Base Salary, as adjusted, shall be considered the new Base Salary for all purposes of this Agreement. 
  
 (b) The Company agrees that the Executive shall be eligible for an annual performance bonus from the Company with respect to each fiscal year of the
Company that ends during the Term, pursuant to the Company’s management incentive bonus program in effect from time to time. The amount of any such bonus shall be determined by the Board of Directors or the Compensation Committee of the Board
of Directors in its discretion, consistent with the Company’s performance, the Executive’s contribution to the Company’s performance and the provisions of any applicable incentive bonus program. 
  
 (c) The Company agrees to grant to the Executive during the Term, at the time
of its usual annual, or semi-annual, grant to employees for the applicable year, such options to purchase shares of the Company’s common stock as the Board of Directors or the Compensation Committee of the Board of Directors shall determine. In
the event of the consummation of a Change in Control (as defined in Section 14) of the Company, all stock options and stock awards (and similar equity rights) previously granted shall immediately vest and remain fully exercisable through their
original term with all rights. 
  
 (d) The Company shall pay or
reimburse the Executive for all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of services under this Agreement, upon presentation of expense statements or vouchers or such other supporting
information as it reasonably may require. 
  

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 Exhibit 10.3 
  
 (e) During the Term, the Executive shall be eligible to participate in all qualified and non-qualified savings and
retirement plans, and all other compensation and benefit plans and programs, including welfare and fringe benefit programs, that are generally available to other senior executives of the Company. 
  
 (f) During the Term, the Executive shall be eligible for paid vacation of
four weeks per calendar year taken in accordance with the vacation policy of the Company. 
  
 4. Confidentiality. 
  
 The Executive agrees that the “Proprietary Information and Inventions Agreement” annexed hereto as Exhibit A shall be deemed incorporated in and made a part of this Employment Agreement. Notwithstanding any other provision
of this Agreement, the Executive shall continue to be bound by the terms of such Proprietary Information and Inventions Agreement for a period of five years after the termination of this Agreement for any reason. Executive and the Company agree that
following termination of this Agreement for any reason, the Proprietary Information and Inventions Agreement shall be applicable only to material, non-public proprietary information of the Company. 
  
 5. Non-Competition, Non-Solicitation and Non-Disparagement.

  
 (a) During the Term, the Executive shall not (1) provide any
services, directly or indirectly, to any other business or commercial entity or (2) participate in the formation of any business or commercial entity; provided, however, that nothing contained in this Section 5(a) shall be deemed to prohibit the
Executive from acquiring, solely as an investment, shares of capital stock (or other interests) of any corporation (or other entity) not exceeding 2% of such corporation’s (or other entity’s) then outstanding shares of capital stock and
provided, further, that nothing contained herein shall be deemed to limit the Executive’s Permitted Activities pursuant to Section 1(d). 
  
 (b) If the Executive is terminated by the Company for Cause (as defined in Section 6(c)) or if the Executive terminates this Agreement other than in
accordance with Section 7 following a Constructive Termination or for Good Reason under Section 8 hereof, or if the Executive is receiving Severance Payments in accordance with Section 9(c) or payments under Section 9(d), then for a period of one
year following the date of termination (or, should the Executive receive Severance Payments in accordance with Section 9(c) or payments under Section 9(d), for the period used to calculate such Severance Payments under Section 9(c) or payments under
Section 9(d)), the Executive shall not (1) provide any services, directly or indirectly, to any other business or commercial entity in the Company’s Field of Interest (as defined in 

  

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 Exhibit 10.3 
  
 
Section 14), (2) participate in the formation of any business or commercial entity engaged primarily in the Company’s Field of Interest, or (3) directly
or indirectly employ, or seek to employ or secure the services in any capacity of, any person employed at that time by the Company or any of its Affiliates, or otherwise encourage or entice any such person to leave such employment; provided,
however, that nothing contained in this Section 5(b) shall be deemed to prohibit the Executive from acquiring, solely as an investment, shares of capital stock (or other interests) of any corporation (or other entity) in the Company’s Field of
Interest not exceeding 2% of such corporation’s (or other entity’s) then outstanding shares of capital stock and provided, further, that nothing contained herein shall be deemed to limit Executive’s Permitted Activities pursuant to
Section 1(d). This Section 5(b) shall be subject to written waivers that may be obtained by the Executive from the Company. 
  
 (c) At no time during the Term of this Agreement or thereafter will Executive knowingly make any written or oral untrue statement that disparages the
Company or its Affiliates in communications with any customer, client or the public. 
  
 (d) If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of this Section 5 or Exhibit A, the Company shall have the right and remedy to have the provisions of this
Agreement specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate
remedy to the Company. 
  
 (e) If any of the covenants contained
in this Section 5 or Appendix A, or any part thereof, is hereafter construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect without regard to the invalid
portions. 
  
 (f) If any of the covenants contained in this
Section 5 or Appendix A, or any part thereof, is held to be unenforceable because of the duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the
duration and/or area of such provision and, in its reduced form, such provision shall then be enforceable. 
  
 (g) The parties hereto intend to and hereby confer jurisdiction to enforce the covenants contained in this Section 5 and Appendix A upon the courts
of any state within the geographical scope of such covenants. In the event that the courts of any one or more of such states shall hold any such covenant wholly unenforceable by reason of the breadth of such scope or otherwise, it is the intention
of the parties hereto that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any other states within the geographical scope of such other covenants, as to breaches of such
covenants in such other respective jurisdictions, the above covenants as they relate to each state being, for this purpose, severable into diverse and independent covenants. 
  

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 Exhibit 10.3 
  
 6. Termination by the Company. 
  
 During the Term of this Agreement, the Company may terminate this Agreement, upon expiration of 90 days’ prior written
notice given by the Company to the Executive (except in the case of the Executive’s death), if any one or more of the following shall occur: 
  
 (a) The Executive shall die during the Term; provided, however, that the Executive’s legal representatives shall be entitled to receive the
(1) Executive’s Base Salary through the date which is 90 days after the Executive’s date of death and (2) a pro-rata annual performance bonus with respect to the fiscal year of the Company during which death occurs. Upon the
Executive’s death, stock options previously granted to the Executive shall become immediately exercisable and remain exercisable through their original terms with full rights as if the Executive’s employment had not terminated. 

 
 (b) The Executive shall become physically or mentally disabled so that
the Executive is unable substantially to perform his services hereunder for (1) a period of 120 consecutive days, or (2) for shorter periods aggregating 180 days during any twelve-month period. Notwithstanding such disability the Company shall
continue to pay the Executive his Base Salary through the date of such termination. In addition, the Executive shall be entitled to a pro-rata annual performance bonus with respect to the fiscal year of the Company during which such termination
occurs. Upon such a disability, stock options previously granted to the Executive shall become immediately exercisable and remain exercisable through their original terms with full rights as if the Executive’s employment had not terminated.

  
 (c) The Executive acts, or fails to act, in a manner that
provides Cause for termination. For purposes of this Agreement, the term “Cause” means (1) the Executive’s indictment for, or conviction of, any crime or serious offense involving money or other property which constitutes a
felony in the jurisdiction involved, (2) the Executive’s willful and continual neglect or failure to discharge his duties (including fiduciary duties), responsibilities and obligations with respect to the Company hereunder; provided such
neglect or failure remains uncured for a period of 30 days after written notice describing the same is given to the Executive; provided that isolated and insubstantial neglect or failure shall not constitute Cause hereunder, (3) the Executive’s
violation of any of the non-competition provisions of Section 5 hereof or the Executive’s breach of any confidentiality provisions contained in Exhibit A hereto, or (5) any act of fraud or embezzlement by the Executive involving the
Company or any of its Affiliates. All determinations of Cause for termination pursuant to this Section 6 shall be determined by the Board. 
  

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 Exhibit 10.3 
  
 7. Termination by the Executive. 
  
 The Executive may terminate this Agreement on written notice to the Company in the event of a material breach of the terms
of this Agreement by the Company and such breach continues uncured for 30 days after written notice of such breach is first given; provided, however, it shall constitute the termination of this Agreement if such breach is for the payment of
money and continues uncured for ten days after written notice of such breach is given. Such termination by Executive is deemed to follow a “Constructive Termination” by Company. 
  
 8. Termination Following a Change in Control. 
  
 In addition to the above, during the period commencing on the six month anniversary of a Change in Control (as defined in
Section 14) of the Company and ending on the two year anniversary of such Change in Control, the Executive may terminate this Agreement upon expiration of 90 days’ prior written notice if “Good Reason” exists for the Executive’s
termination. For this purpose, termination of the Executive for “Good Reason” shall mean a termination of the Executive of his employment hereunder following the occurrence, without his prior written consent, of any of the following
events, unless the Company fully cures all grounds for such termination within 30 days after the Executive’s notice: 
  
 (a) any material adverse change in the Executive’s authority, duties, titles or offices (including reporting responsibility), or any significant
increase in the Executive’s business travel obligations, from those existing immediately prior to the Change in Control; 
  
 (b) any failure by the Company to continue in effect any compensation plan in which the Executive participated immediately prior to such Change in Control
and which is material to the Executive’s total compensation, including but not limited to the Company’s stock option, bonus and other plans or any substitute plans adopted prior to the Change in Control, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or any failure by the Company to continue the Executive’s participation therein (or in such substitute or alternative plan) on a basis no less
favorable to the Executive, both in terms of the amount of benefits provided and the level of the Executive’s participation relative to other participants, as existed immediately prior to such Change in Control; 
  
 (c) any failure by the Company to continue to provide the Executive with
benefits substantially similar to those enjoyed by the Executive under any of the Company’s retirement, life insurance, medical, health and accident, or disability plans, programs or arrangements in which the Executive was participating
immediately prior to such Change in Control, the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits or deprive the Executive of any perquisite enjoyed by the Executive at the time of such
Change in Control, or the failure by the Company to maintain a vacation policy with respect to the Executive that is at least as favorable as the vacation policy (whether formal or informal) in place with respect to the Executive immediately prior
to such Change in Control; or 
  

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 Exhibit 10.3 
  
 (d) the failure of the Company to obtain the assumption in writing of its obligation to perform this Agreement by any
successor to all or substantially all of the assets of the Company upon a merger, consolidation, sale or similar transaction. 
  
 In addition, the Executive may elect to terminate his employment, at his own initiative, for any reason or for no reason, during the six month period
commencing on the six month anniversary of a Change in Control of the Company and ending on the one year anniversary of such Change in Control, in which case such termination of employment shall also be deemed to be for “Good Reason”.

  
 9. Severance and Benefit Continuation. 
  
 (a) Termination for Cause. If the Company terminates this
Agreement for Cause pursuant to Section 6(c) hereof, or if the Executive terminates this Agreement other than in accordance with Section 7 following a Constructive Termination or for Good Reason under Section 8, no severance or benefit continuation
provisions shall apply, provided however that the Executive shall have the same opportunity to continue group health benefits at the Executive’s expense in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”) as is available generally to other employees terminating employment with the Company. 
  
 (b) Termination for Death or Disability. In the event of termination of this Agreement pursuant to Section 6(a) or 6(b) by reason of the
death or disability of the Executive, in addition to the Base Salary payments and pro-rata annual performance bonus provided for in paragraph (a) or (b) of Section 6, as applicable, the Company shall continue to provide all benefits subject to COBRA
at its expense with respect to the Executive and his dependents for the maximum period provided by COBRA. 
  
 (c) Involuntary Termination Other Than for Cause, Voluntary Termination following Constructive Termination, or Nonrenewal by the Company. If
(1) the Company terminates this Agreement other than pursuant to Section 6 hereof, (2) the Executive terminates this Agreement in accordance with Section 7 following a Constructive Termination, or (3) at the end of the Term of this Agreement, the
Executive shall cease to be employed by the Company in the capacity of Executive Vice President and Head of Research by reason of the Company’s decision not to continue to employ the Executive as Executive Vice President and Head of Research at
least on terms substantially similar to those set forth herein, and in each case the termination of employment does not occur within two years following the consummation of a Change in Control of the Company, then: 
  
 (i) the Company shall pay the Executive in accordance with its normal
payroll practice an amount equal to the sum of the Executive’s Base Salary at the time of his termination of employment plus the average bonus received by the Executive for the two years preceding the year in which his termination of employment
occurs (the “Severance Payment”) for each year of the period of the next two years (the “Severance Period”); 
  

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 Exhibit 10.3 
  
 (ii) all Company employee benefit plans and programs (including, but not limited to, the plans and programs set forth in
Section 3(e)), other than participation in any Company tax-qualified retirement plan, applicable to the Executive shall be continued for the Severance Period (or, if such benefits are not available, or cannot be provided due to applicable law, the
Company shall pay the Executive a lump sum cash amount equal to the after-tax economic equivalent thereof, provided that with respect to any benefit to be provided on an insured basis, such lump sum cash value shall be the present value of the
premiums expected to be paid for such coverage, and with respect to other benefits, such value shall be the present value of the expected cost to the Company of providing such benefits). In the case of all benefits subject to COBRA, the Company
shall continue to provide such benefits at its expense with respect to the Executive and his dependents for the maximum period provided by COBRA; and 
  
 (iii) all stock options and stock awards (and similar equity rights) shall fully and immediately vest and become exercisable immediately prior to such
termination of employment, and shall remain exercisable through their original term with full rights as if the Executive’s employment had not terminated. 
  

(d) Involuntary Termination Other Than for Cause, Voluntary Termination following Constructive Termination or for Good Reason, or Nonrenewal by
the Company, Upon a Change in Control. If (1) the Company terminates this Agreement other than pursuant to Section 6 hereof, (2) the Executive terminates this Agreement in accordance with Section 7 following a Constructive Termination or for
Good Reason under Section 8, or (3) at the end of the Term of this Agreement the Executive shall cease to be employed by the Company in the capacity of Executive Vice President and Head of Research by reason of the Company’s decision not to
continue to employ the Executive as Executive Vice President and Head of Research at least on terms substantially similar to those set forth herein, and in each case the termination of employment occurs within two years of the consummation of a
Change in Control of the Company, then: 
  
 (i) the Company
shall pay the Executive a cash lump sum immediately upon such termination of employment equal to three times the sum of the Executive’s Base Salary at the time of his termination of employment plus the average bonus received by the Executive
for the two years preceding the year in which his termination of employment occurs; 
  
 (ii) all Company employee benefit plans and programs (including, but not limited to, the plans and programs set forth in Sections 3(e), other than participation in any Company tax-qualified retirement plan, applicable
to the Executive shall be continued for three years from the date of such termination of employment (or, if such benefits are not available, or cannot be provided due to applicable law, the Company shall pay the Executive a lump sum cash amount
equal to the after-tax economic equivalent thereof, provided that with respect to any benefit to be provided on an insured basis, such lump sum cash value shall be the present value of the premiums 

  

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 Exhibit 10.3 
  
 
expected to be paid for such coverage, and with respect to other benefits, such value shall be the present value of the expected cost to the Company of
providing such benefits). In the case of all benefits subject to COBRA, the Company shall continue to provide such benefits at its expense with respect to the Executive and his dependents for the maximum period provided by COBRA; 
  
 (iii) all stock options and stock awards (and similar equity rights) shall
fully and immediately vest and become exercisable immediately prior to such termination of employment, and shall remain exercisable through their original term with full rights as if the Executive’s employment had not terminated; and

  
 (iv) notwithstanding the foregoing, if the Executive elects
to terminate his employment, at his own initiative, during the six month period commencing on the six month anniversary of a Change in Control of the Company and ending on the one year anniversary of such Change in Control, without a basis for such
termination that would constitute “Good Reason” in the absence of the last paragraph of Section 8, then “two times” shall be substituted for “three times” in subparagraph (i) of this Section 9(d), and “two
years” shall be substituted for “three years” in subparagraph (ii) of this Section 9(d). 
  
 (e) The payments provided in Section 9(c) and 9(d) are intended as enhanced severance for a termination by the Company without Cause, or a termination by
the Executive in the circumstances provided. As a condition of receiving such payments, the Executive shall first execute and deliver a general release of all claims against the Company, its Affiliates, agents and employees (other than any claims or
rights pursuant to the Agreement or pursuant to equity or employee benefit plans), in a form and substance reasonably satisfactory to the Company. 
  
 10. Cooperation. 
  
 Following his termination of employment, the Executive agrees to cooperate with, and assist, the Company to ensure a smooth transition in management and,
if requested by the Company, will make himself available to consult during regular business hours at mutually agreed upon times for up to a three month period thereafter. At any time following his termination of employment, the Executive will
provide such information as the Company may reasonably request with respect to any Company-related transaction or other matter in which the Executive was involved in any way while employed by the Company. The Executive further agrees, during the
Term of this Agreement and thereafter, to assist and cooperate with the Company in connection with the defense or prosecution of any claim that may be made against, or by, the Company or its Affiliates, in connection with any dispute or claim of any
kind involving the Company or its Affiliates, including providing testimony in any proceeding before any arbitral, administrative, judicial, legislative or other body or agency. The Executive shall be entitled to reimbursement for all properly
documented expenses incurred in connection with rendering services under this Section, including, but not limited to, reimbursement for all reasonable travel, lodging, meal expenses and legal fees, and the Executive shall be entitled to a per diem
amount for his services equal to his then most recent annualized Base Salary under this Agreement, divided by 240 (business days). 
  

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 Exhibit 10.3 
  
 11. Indemnification. 
  
 The Company shall indemnify the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or
sustained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party by reason of being an officer, director or employee of the Company or of any subsidiary or Affiliate of the Company. The Company
shall provide, at its expense, Directors and Officers insurance for the Executive in amounts reasonably satisfactory to the Executive, to the extent such insurance is available at reasonable rates, which determination shall be made by the Board.

  
 12. Excise Tax. 
  
 If any payments made in respect of this Agreement, or otherwise in respect
of the Executive’s employment or termination of employment with the Company, become subject to the excise tax described in Section 4999 of the Internal Revenue Code of 1986 (or any successor to such section), the Company shall make a special
payment to the Executive sufficient, on an after-tax basis (taking into account federal, state and local income, employment and excise taxes and related interest and penalties), to put the Executive in the same position as would have been the case
had no such excise taxes been applicable to any payments or benefits provided in this Agreement or otherwise in respect of the Executive’s employment or termination of employment with the Company. Any such special payment shall be made prior to
the time any excise tax is payable by the Executive (through withholding or otherwise). The determination of whether any payment is subject to an excise tax and, if so, the amount to be paid by the Company to the Executive and the time of payment
shall be made by an independent auditor selected jointly by the Company and the Executive and paid by the Company. Unless the Executive agrees otherwise in writing, the auditor shall be a nationally recognized public accounting firm that has not,
during the two years preceding the date of its selection, acted in any way on behalf of the Company or any of its Affiliates. If the Executive and the Company cannot agree on the firm to serve as the auditor under this Section, then the Executive
and the Company shall each select one accounting firm and those two firms shall jointly select the accounting firm to serve as the auditor. 
  
 13. No Mitigation. 
  
 The Executive shall not be required to mitigate the amount of any payment provided for hereunder by seeking other employment or otherwise, nor shall the
amount of any payment provided for hereunder be reduced by any compensation earned by the Executive as the result of employment by another employer after the date of termination of employment by the Company. 
  

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 Exhibit 10.3 
  
 14. Definitions. 
  
 As used herein, the following terms have the following meaning: 
  

(a) “Affiliate” means and includes any person, corporation or other entity controlling, controlled by or under common control with
the corporation in question. 
  
 (b) “Change in
Control” means the occurrence of any of the following events: 
  
 (i) Any Person, other than the Company, its affiliates (as defined in Rule 12b-2 under the Exchange Act) or any Company employee benefit plan (including any trustee of such plan acting as trustee), is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company representing more than 40% of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors (“Voting
Securities”) of the Company, or 
  
 (ii) Individuals who
constitute the Board of Directors of the Company (the “Incumbent Directors”) as of the beginning of any twenty-four month period (not including any period prior to the date of this Agreement), cease for any reason to constitute at
least a majority of the directors. Notwithstanding the foregoing, any individual becoming a director subsequent to the beginning of such period, whose election or nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then comprising the Incumbent Directors, shall be considered an Incumbent Director; or 
  
 (iii) Consummation by the Company of a recapitalization, reorganization, merger, consolidation or other similar transaction (a “Business
Combination”), with respect to which all or substantially all of the individuals and entities who were the beneficial owners of the Voting Securities immediately prior to such Business Combination (the “Incumbent
Shareholders”) do not, following consummation of all transactions intended to constitute part of such Business Combination, beneficially own, directly or indirectly, more than 50% of the Voting Securities of the corporation, business trust
or other entity resulting from or being the surviving entity in such Business Combination (the “Surviving Entity”), in substantially the same proportion as their ownership of such Voting Securities immediately prior to such Business
Combination; or 
  
 (iv) Consummation of a complete liquidation
or dissolution of the Company, or the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, business trust or other entity with respect to which, following consummation of all transactions
intended to constitute part of such sale or disposition, more than 50% of the combined Voting Securities is then owned beneficially, directly or indirectly, by the Incumbent Shareholders in substantially the same proportion as their ownership of the
Voting Securities immediately prior to such sale or disposition. 
  
 For purposes of this definition, the following terms shall have the meanings set forth below: 
  
 (A) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act; 
  

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 Exhibit 10.3 
  
 (B) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended; and

  
 (C) “Person” shall have the
meaning as used in Sections 13(d) and 14(d) of the Exchange Act. 
  
 (c) “Company’s Field of Interest” means the primary businesses of the Company as described in the Company’s then most-recent filings with the Securities and Exchange Commission during the Executive’s
employment hereunder and as determined from time to time by the Board of Directors during the Term hereof. 
  
 15. Representations by Executive. 
  
 The Executive represents and warrants that he has full right, power and authority to execute the terms of this Agreement; this Agreement has been duly
executed by the Executive and such execution and the performance of this Agreement by the Executive does not result in any conflict, breach or violation of or default under any other agreement or any judgment, order or decree to which the Executive
is a party or by which he is bound. The Executive acknowledges and agrees that any material breach of the representations set forth in this Section will constitute Cause under Section 6. 
  
 16. Arbitration. 
  
 Any controversy or claim arising out of or relating to this Agreement or the breach thereof (including, without limitation, disputes under Title VII, the
ADEA, the ADA and other state and federal discrimination or employment laws) shall be settled by arbitration in Connecticut, in accordance with the employment dispute rules then existing of the American Arbitration Association, and judgment upon the
award rendered may be entered in any court having jurisdiction thereof. The parties shall be free to pursue any remedy before the arbitrator that they shall be otherwise permitted to pursue in a court of competent jurisdiction. The award of the
arbitrator shall be final and binding. The costs of the American Arbitration Association and the arbitrator will be borne equally by the Company and the Executive, subject to the provisions of Section 17. 
  
 17. Legal Costs. 
  
 If the Executive institutes any legal action to enforce his rights under, or
to recover damages for breach of, this Agreement, and the Executive prevails, he shall be entitled to recover from the Company any actual expenses for attorney’s fees and disbursements incurred by the Executive. If any payment made to or in
respect of the Executive pursuant to this Section 17 becomes subject to any tax, the Company shall make a special payment to the Executive sufficient, on an after-tax basis (taking into account federal, state and local taxes and related interest and
penalties), to put the Executive in the same position as would have been the case had no such taxes been applicable to any payments or benefits provided in this Section. 
  

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 Exhibit 10.3 
  
 18. Notices. 
  
 All notices, requests, consents and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been
duly given if sent by private overnight mail service (delivery confirmed by such service), registered or certified mail (return receipt requested and received), telecopy (confirmed receipt by return fax from the receiving party) or delivered
personally, as follows (or to such other address as either party shall designate by notice in writing to the other in accordance herewith): 
  
 If to the Company: 
  
 Thomas I.H. Dubin, Esq. 
 Vice President and
General Counsel 
 Alexion Pharmaceuticals, Inc. 
 352 Knotter Drive 
 Cheshire, Connecticut 06410 
 Telephone:  (203) 272-2596 
 Fax:             (203)271-8199 
  
 If to the Executive: 
  
 Stephen P. Squinto, Ph.D. 
 Alexion
Pharmaceuticals, Inc. 
 352 Knotter Drive 
 Cheshire, Connecticut 06410 
 Telephone:  (203) 272-2596 
 Fax:             (203) 271-8199 
  
 19. General. 
  
 (a) This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Connecticut applicable to agreements made and to be performed entirely in Connecticut by Connecticut residents. 
  
 (b) This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof, and supersedes all prior
agreements, arrangements and understandings, written or oral, relating to the subject matter hereof. No representation, promise or inducement has been made by either party that is not embodied in this Agreement, and neither party shall be bound by
or liable for any alleged representation, promise or inducement not so set forth. 
  
 (c) This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms or covenants hereof may be waived, only by a written instrument executed by the parties hereto, or in the case

  

 13 

 Exhibit 10.3 
  
 
of a waiver, by the party waiving compliance. The failure of a party at any time or times to require performance of any provision hereof shall in no manner
affect the right at a later time to enforce the same. No waiver by a party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, or any one or more or continuing waivers of any such breach, shall
constitute a waiver of the breach of any other term or covenant contained in this Agreement 
  
 (d) This Agreement shall be binding upon the legal representatives, heirs, distributees, successors and assigns of the parties hereto. The Company may not assign its rights and obligation under this Agreement without
the prior written consent of the Executive, except to a successor of substantially all the Company’s business which expressly assumes the Company’s obligations hereunder in writing. In the event of a sale of all or substantially all of the
assets of the Company, the Company shall use its best efforts to cause the purchaser to expressly assume this Agreement. The Executive may not assign, transfer, alienate or encumber any rights or obligations under this Agreement, except by will or
operation of law, provided that the Executive may designate beneficiaries to receive any payments permitted under the terms of the Company’s benefit plans. 
  

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

	 ALEXION PHARMACEUTICALS, INC.

		
	 By:
	 	  /S/    STEPHEN P. SQUINTO
	 	 	

	 	 	   Stephen P. Squinto

  

 14Varikek Industries, Inc. Acquistion Agreement of Cislunar Networks Corp.

 Exhibit 10.32 
  

  
 ASSET PURCHASE AGREEMENT 
  
 between

  
 VARITEK INDUSTRIES, INC. 
 as Buyer 
  
 and 
  
 CISLUNAR NETWORKS CORP. 
 as Seller 
  
 September     , 2003 
  

 TABLE OF CONTENTS 
  

	 	 	 	  	Page

	 ARTICLE I ASSET PURCHASE
	  	1
			
	 1.1
	 	 Purchase and Sale
	  	1
	 1.2
	 	 No Assumed Liabilities
	  	2
	 1.3
	 	 Consideration
	  	2
	 1.4
	 	 Tax Allocation of Purchase Price
	  	2
	 1.5
	 	 Transfer Taxes; Personal Property and Ad Valorem Taxes
	  	2
		
	 ARTICLE II CLOSING DELIVERABLES
	  	3
			
	 2.1
	 	 Seller’s Closing Deliverables
	  	3
	 2.2
	 	 Buyer’s Closing Deliverables
	  	4
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER
	  	4
			
	 3.1
	 	 Corporate Organization and Power
	  	4
	 3.2
	 	 Litigation; Government Regulation
	  	4
	 3.3
	 	 Approvals
	  	4
	 3.4
	 	 Subsidiaries
	  	5
	 3.5
	 	 Licenses, Permits, Authorizations, Etc
	  	5
	 3.6
	 	 Enforceability of Transaction Documents; Compliance with Other Instruments
	  	5
	 3.7
	 	 Event of Default
	  	6
	 3.8
	 	 Full Disclosure; Undisclosed Liabilities
	  	6
	 3.9
	 	 Title; Condition of Purchased Assets
	  	6
	 3.10
	 	 Compliance with Laws; FCC Matters
	  	6
	 3.11
	 	 Hazardous Waste and Substances
	  	6
	 3.12
	 	 Absence of Changes or Events
	  	7
	 3.13
	 	 Patent Assets and Intellectual Property Assets
	  	8
	 3.14
	 	 Brokers
	  	9
	 3.15
	 	 Disclosure
	  	9
		
	 ARTICLE IV REPRESENTATIONS OF BUYER
	  	10
			
	 4.1
	 	 Corporate Organization and Power
	  	10
	 4.2
	 	 Approvals
	  	10
	 4.3
	 	 Enforceability of Transaction Documents
	  	10
	 4.4
	 	 Brokers
	  	10
		
	 ARTICLE V COVENANTS
	  	10
			
	 5.1
	 	 Varitek Ground Lease
	  	10
	 5.2
	 	 Varitek Office Sublease
	  	10
	 5.3
	 	 License Agreement
	  	11
	 5.4
	 	 Moonbeamer Satellite Router and Related Technology and Know-how
	  	11
	 5.5
	 	 Purchased Assets Requiring Consent to Transfer
	  	13
	 5.6
	 	 Commercially Reasonable Efforts
	  	14
	 5.7
	 	 Further Assurances
	  	14

  

 i 

	 ARTICLE VI INDEMNIFICATION
	  	14
			
	 6.1
	 	 Survival
	  	14
	 6.2
	 	 Indemnification by Seller
	  	14
	 6.3
	 	 Indemnification by Buyer
	  	15
	 6.4
	 	 Limitation
	  	15
	 6.5
	 	 Procedure for Indemnification
	  	15
	 6.6
	 	 Payment of Losses
	  	17
	 6.7
	 	 ACKNOWLEDGMENT REGARDING NEGLIGENCE
	  	17
		
	 ARTICLE VII ARBITRATION
	  	17
			
	 7.1
	 	 Scope
	  	17
	 7.2
	 	 Arbitrators
	  	17
	 7.3
	 	 Applicable Rules
	  	18
		
	 ARTICLE VIII MISCELLANEOUS
	  	18
			
	 8.1
	 	 Remedies Not Exclusive
	  	18
	 8.2
	 	 Parties Bound
	  	19
	 8.3
	 	 Notices
	  	19
	 8.4
	 	 Choice of Law
	  	19
	 8.5
	 	 Entire Agreement; Amendments and Waivers
	  	20
	 8.6
	 	 Assignment
	  	20
	 8.7
	 	 Attorneys’ Fees
	  	20
	 8.8
	 	 Expenses
	  	20
	 8.9
	 	 No Tax Representations
	  	20
	 8.10
	 	 Multiple Counterparts
	  	20
	 8.11
	 	 Headings, Gender and Number
	  	21
	 8.12
	 	 Severability
	  	21
	 8.13
	 	 “Knowledge,” Etc
	  	21
		
	 ARTICLE IX DEFINITIONS
	  	21
			
	 9.1
	 	 Defined Terms
	  	21

  

 ii 

 ASSET PURCHASE AGREEMENT 
  
 This Asset Purchase Agreement (this “Agreement”), dated and effective as of September
    , 2003 (the “Effective Date”), is by and between Cislunar Networks Corp., a Delaware corporation (“Seller”), and Varitek Industries, Inc., a Texas corporation
(“Buyer”) (Seller and Buyer are individually referred to herein as a “Party” and collectively referred to herein as the “Parties”). Capitalized terms used in this Agreement have the meanings set
forth in Article IX of this Agreement. 
  
 W
I T N E S S E T H: 
  
 WHEREAS, Buyer and Seller have entered into that certain Loan Agreement between Buyer as lender and Seller as borrower dated February 11, 2003 (the “Loan Agreement”), pursuant to which Buyer made a
term loan to Seller in the aggregate amount of $389,674.62 (the “Loan”) on and subject to the terms and conditions set forth in the Loan Agreement; and 
  
 WHEREAS, in connection with the Loan Agreement, Buyer and Seller entered into that certain letter agreement by and between
Buyer and Seller dated February 11, 2003 (the “Letter Agreement”), pursuant to which Seller granted to Buyer an option (the “Option”) to purchase the assets set forth on Exhibit A to the Letter Agreement (the
“Optioned Assets”), which assets constitute substantially all of the assets of Seller, within six (6) months after the date of the Letter Agreement for a purchase price of $389,674.62, less all amounts outstanding on the Loan
(including principal and interest) at the time of such purchase (the “Outstanding Loan Amount”); and 
  
 WHEREAS, Buyer now desires to exercise the Option and purchase some but not all of the Optioned Assets, but with no corresponding reduction of the
purchase price set forth in the Letter Agreement, on the terms and conditions set forth in this Agreement; and 
  
 WHEREAS, Seller desires to sell such Optioned Assets to Buyer for such purchase price, on the terms and conditions set forth in this Agreement;

  
 NOW, THEREFORE, in consideration of the foregoing and the
respective representations, warranties, covenants and agreements set forth herein, the Parties hereby agree as follows: 
  
 ARTICLE I 
 ASSET PURCHASE

  
 1.1 Purchase and Sale. On and subject to the terms
and conditions contained in this Agreement, the Seller will sell, transfer, assign and deliver to Buyer, and Buyer will purchase, accept and receive from the Seller, in exchange for the aggregate consideration set forth in Section 1.3 hereof,
all of the Seller’s right, title and interest in and to the assets listed and described on Schedule 1.1 attached hereto (the “Purchased Assets”). Seller shall retain all of Seller’s right, title and interest in an
to all of Seller’s other assets (the “Retained Assets”). 

 1.2 No Assumed Liabilities. The Parties hereby expressly acknowledge and agree that Buyer is not
assuming or otherwise agreeing to be responsible for any of Seller’s Liabilities, and Seller is and shall remain solely liable and responsible for all of Seller’s Liabilities. 
  
 1.3 Consideration. Buyer and Seller each acknowledge and agree that the Outstanding Loan Amount as of the Closing
will exceed $389,674.62. Accordingly, subject to the terms and conditions set forth herein and in reliance upon the representations, warranties and covenants set forth herein, Buyer shall, as full consideration for the Purchased Assets, cancel the
Term Note and deliver same to Seller at the Closing, and the occurrence of the Closing and the consummation of the transactions contemplated by this Agreement shall be in full and complete satisfaction of Seller’s Obligations under the Loan
Agreement. 
  
 1.4 Tax Allocation of Purchase
Price. For federal and state income Tax purposes, the Outstanding Loan Amount shall be deemed to be the purchase price and shall be allocated among the Purchased Assets as agreed by the Parties following the Closing. The Parties shall use such
allocation in all reports, statements and Tax Returns filed with any taxing authority. 
  
 1.5 Transfer Taxes; Personal Property and Ad Valorem Taxes. 
  
 (a) Each Party shall be responsible for and pay all excise, sales, value added, use, registration, stamp, transfer and similar Taxes, levies, charges and
fees incurred in connection with this Agreement and the transactions contemplated hereby (collectively, “Transfer Taxes”), to the extent such items are imposed upon such Party by applicable law. To the extent that applicable law
does not impose liability for such items on one Party or the other, Buyer shall be responsible for and pay such items of the Transfer Tax. Seller or Buyer, as the case may be, shall properly file on a timely basis all necessary Tax Returns and other
documentation with respect to any Transfer Tax (subject to reimbursement for the other Party’s share thereof, if applicable), provided that where such return or other documentation is required to be filed on a joint basis, the Parties shall
cooperate in the timely preparation and filing thereof. The Parties hereto shall cooperate in providing the information required by any returns or other documentation relating to Transfer Taxes. 
  
 (b) All personal property and ad valorem Taxes levied or imposed upon the
Purchased Assets by any Governmental Authority for the taxable period beginning before and ending after the Closing Date shall be apportioned or prorated on a per diem basis between Seller and Buyer as of 11:59 p.m., Houston, Texas time, on the day
before the Closing Date. If the actual amounts to be prorated are not known as of the Closing Date, the prorations shall be made as soon as reasonably practicable following receipt by Seller or Buyer of a statement or invoice for such Taxes from the
applicable Governmental Authority. Each Party shall promptly provide the other a copy of all such statements or invoices such Party receives. Seller shall, within five (5) Business Days after receipt of such a statement or invoice from a
Governmental Authority or a copy of such a statement or invoice from Buyer, pay Seller’s prorata portion of such Taxes (as determined in accordance with this Section 1.5(b)) to Buyer. Buyer shall then promptly pay Seller’s prorata
portion and Buyer’s prorata portion of such Taxes to the applicable Governmental Authority. 
  

 2 

 ARTICLE II 
 CLOSING DELIVERABLES 
  
 2.1 Seller’s Closing Deliverables. At the Closing, Seller shall deliver to Buyer each of the following: 
  
 (a) Copies, certified by Seller’s secretary, of (i) Seller’s certificate of incorporation and (ii) Seller’s bylaws; 
  
 (b) A copy, certified by Seller’s secretary, of the resolutions adopted
by Seller’s board of directors and approved by Seller’s shareholders authorizing the execution of this Agreement and the consummation of the transactions contemplated hereby; 
  
 (c) Possession of the Purchased Assets; 
  
 (d) An Assignment and Bill of Sale for the Purchased Assets from Seller substantially in the form attached hereto as
Exhibit A; 
  
 (e) Patent, trademark and copyright
assignments, and all other asset-specific transfer documents required or reasonably requested by Buyer to transfer or evidence the transfer of various assets included in the Purchased Assets; 
  
 (f) Evidence of releases of all Encumbrances of any kind or character on the
Purchased Assets, other than those in favor of Buyer securing the Obligations; 
  
 (g) Evidence, satisfactory to Buyer in Buyer’s reasonable judgment, that Seller has obtained all approvals, clearances, consents, authorizations or waivers from all applicable Governmental Authorities necessary
to properly and validly transfer the FCC Licenses to Buyer; 
  
 (h) Any third party consents required for the consummation of the transactions contemplated hereby, or required to prevent such transactions from constituting a breach of or a default under or grounds for a termination or alteration of any
agreement to which Seller is a party or by which Seller is bound or affected or to which any of the Purchased Assets is subject; 
  
 (i) The Varitek Ground Lease required by Section 5.1 of this Agreement, executed by Sullivan as lessor; 
  
 (j) Evidence, satisfactory to Buyer in the exercise of Buyer’s
reasonable judgment, of the amendment of the Cislunar Ground Lease, effective as of the Closing; 
  
 (k) The Varitek Office Sublease required by Section 5.2 of this Agreement, executed by Niobrara as sublessor; 
  
 (l) Evidence, satisfactory to Buyer in the exercise of Buyer’s
reasonable judgment, of the consent of Sullivan and Ed Wade, as Lessors under the Niobrara Office Lease, to the execution and delivery of the Varitek Office Sublease; and 
  

 3 

 (m) Such other certificates, documents, instruments and evidences as Buyer may reasonably request.

  
 2.2 Buyer’s Closing Deliverables. At the Closing,
Buyer shall deliver to Seller each of the following: 
  
 (a) A
certificate, executed by Buyer’s secretary, certifying the resolutions adopted by Buyer’s board of directors approving the execution of this Agreement and the consummation of the transactions contemplated hereby; 
  
 (b) The Term Note; 
  
 (c) Such documents and instruments as are necessary to release all
Encumbrances on the Purchased Assets and the Retained Assets in favor of Buyer; and 
  
 (d) The License Agreement required by Section 5.3 of this Agreement. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 The following representations and warranties are made by Seller to Buyer:

  
 3.1 Corporate Organization and Power. Seller (a) is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, (b) has the full power (corporate or otherwise), authority and legal right to execute and deliver this Agreement and the other Transaction
Documents to which it is a party and to perform and observe the terms and provisions thereof and (c) is licensed and qualified to do business as a foreign corporation in each jurisdiction in which the character of Seller’s properties, owned or
leased, or the nature of its activities makes such qualification or license necessary, except where the failure to be so licensed or qualified would not have a Material Adverse Effect. 
  
 3.2 Litigation; Government Regulation. There are no judgments, injunctions or similar orders or decrees and no
Actions, suits, investigations or proceedings (arbitration or otherwise) pending (pursuant to which Seller has been served) or, to the knowledge of Seller, threatened against or affecting Seller that is reasonably likely to have a Material Adverse
Effect, or that question the validity of this Agreement or any of the other Transaction Documents, at law or in equity before any court, arbitrator or Governmental Authority. To Seller’s knowledge, there are no, and have not been any, facts
conditions or incidents that may result in any such Actions, suits, investigations or proceedings. Seller is not in violation of or in default under any Requirement of Law where such violation could reasonably be expected to have a Material Adverse
Effect. 
  
 3.3 Approvals. There is no legal impediment to
the execution and delivery of this Agreement or the other Transaction Documents by Seller or to the consummation of the transactions contemplated hereby or thereby, and, except as set forth on Schedule 3.3 attached hereto, no filing or
registration with, or authorization, consent or approval of, a Governmental Authority, stockholders or any other third party is necessary for the consummation by Seller of the transactions contemplated hereby or thereby, other than those which, if
not made or obtained, would not, in the aggregate, have a Material Adverse Effect. 
  

 4 

 3.4 Subsidiaries. Seller has no subsidiaries. 
  
 3.5 Licenses, Permits, Authorizations, Etc. 
  
 (a) Seller holds all material approvals, authorizations, consents, licenses
(including, without limitation, the FCC Licenses), orders, franchises, rights, registrations and permits of any type required to operate the business and operations of Seller as presently conducted. The execution and delivery of this Agreement or
any of the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby will not result in any revocation, cancellation, suspension or modification of any such material approval, authorization, consent,
license, order, franchise, right, registration or permit. 
  
 (b)
Each of the FCC Licenses is validly issued in the name of Seller, is in full force and effect, has been granted by Final Order and will remain in full force and effect until the date set forth in such FCC License. Except for proceedings effecting
the communications services industry generally, there is not pending, nor to Seller’s knowledge, threatened against Seller or any of the FCC Licenses, nor is Seller aware of any basis for, any application, action, petition, objection or other
pleading, or any proceeding with the FCC or any other Governmental Authority which questions or contests the validity of, or seeks the revocation, forfeiture, non-renewal or suspension of, any of the FCC Licenses, which seeks the imposition of any
modification or amendment with respect thereto, or seeks the payment of a fine, sanction, penalty, damages or contribution in connection with the use of the FCC Licenses. None of the FCC Licenses is subject to any conditions other than those
appearing on the face of the respective FCC Licenses and those imposed by the FCC. 
  
 3.6 Enforceability of Transaction Documents; Compliance with Other Instruments. Each of the Transaction Documents to which Seller is a party has been duly authorized by all necessary corporate action on the
part of Seller, has been (or as of the Closing, will be) validly executed and delivered by Seller and is (and as of the Closing, will be) the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditor’s rights generally or by general principles of equity. Seller is not in default with respect to
any indenture, loan agreement, mortgage, lease, deed or similar agreement related to the borrowing of monies to which it is a party or by which it, or any of its property, is bound except where such default would not have a Material Adverse Effect.
Neither the execution, delivery or performance of the Transaction Documents by Seller, nor compliance by Seller therewith: (a) conflicts or will conflict with or results or will result in any breach of, or constitutes or will constitute with the
passage of time or the giving of notice or both, a default under, (i) any Requirement of Law or (ii) any written or oral agreement or instrument to which Seller is a party or by which it, or any of its property, is bound, except where such conflict,
breach or default would not have a Material Adverse Effect, or (b) results or will result in the creation or imposition of any Encumbrance upon the properties of Seller pursuant to any such agreement or instrument. 
  

 5 

 3.7 Event of Default. No Default or Event of Default has occurred and is continuing. 

 
 3.8 Full Disclosure; Undisclosed Liabilities. To Seller’s
knowledge, there is no fact related to the business or operations of Seller that Seller has not disclosed to Buyer that may reasonably be expected to result in a Material Adverse Effect. Except as set forth on Schedule 3.8 attached hereto,
Seller does not have any Liability, individually or in the aggregate, in excess of $10,000, and there is no basis for any present or future Action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand against Seller giving
rise to any Liability. 
  
 3.9 Title; Condition of Purchased
Assets. 
  
 (a) Seller has good and marketable title to the
Purchased Assets free and clear of all Encumbrances other than those in favor of Buyer securing the Obligations, and no financing statement or other record of a security interest or other Encumbrance that names Seller as debtor has been filed and is
still in effect or has been authorized to be filed, other than financing statements that name Buyer as secured party. 
  
 (b) Except as noted on Schedule 1.1 attached hereto, each of the tangible Purchased Assets conforms to all applicable laws, ordinances and
regulations, is in good working condition and repair (normal wear and tear excepted), with no material defects, with no need for maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost and
is fully suitable for the uses for which it is intended. 
  
 (c)
At the Closing, Seller will convey to Buyer, and Buyer will acquire from Seller, all of the Purchased Assets free and clear of any and all Encumbrances. 
  
 3.10 Compliance with Laws; FCC Matters. Seller has duly complied with, and its business, operations and leaseholds are in compliance in all
material respects with, all material Requirements of Law. Without limiting the generality of the foregoing, Seller has duly and timely filed with the FCC and all other Governmental Authorities all reports, statements, registrations, filings,
submissions, notices, applications (including without limitation applications for renewal) and other documents with respect to the business and operations of Seller (including without limitation Seller’s ownership of the FCC Licenses) as
required by, and in accordance with, applicable Requirements of Law. Seller has duly and timely paid to the FCC and all other Governmental Authorities all fees associated with any such filings. Seller has duly and timely paid all periodic regulatory
fees to the FCC and all other Governmental Authorities in accordance with applicable Requirements of Law. Seller is in material compliance with all terms and conditions of, and all obligations under, the FCC Licenses. 
  
 3.11 Hazardous Waste and Substances. 
  
 (a) To Seller’s best knowledge after reasonable investigation by
Seller, neither the operations of Seller nor the use of its assets violates any applicable federal, state or local law, statute, ordinance, rule, regulation, memorandum of understanding, order or notice requirement pertaining to the use, generation,
collection, transportation, storage, treatment, discharge, release or disposal of hazardous or non-hazardous waste or substances which violation could reasonably be expected to have a Material Adverse Effect, including without limitation 

  

 6 

 
(i) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §§9601 et seq.), as amended from time to time on
or before the Closing Date (“CERCLA”) (including, without limitation, as amended pursuant to the Superfund Amendments and Reauthorization Act of 1986), and all regulations promulgated under CERCLA on or before the Closing Date, (ii) the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§6901 et seq.), as amended from time to time (“RCRA”) on or before the Closing Date, and all regulations promulgated under RCRA, and (iii) any other applicable federal,
state or local laws or regulations relating to the environment in effect on the Closing Date (collectively, the “Applicable Environmental Laws”). 
  
 (b) To Seller’s best knowledge after reasonable investigation by Seller, none of the operations of Seller has ever been conducted nor have any of its
assets been used in such a manner as to constitute a violation of any of the Applicable Environmental Laws, or otherwise to create any liability under or relating to any Applicable Environmental Laws, which violation or liability would have a
Material Adverse Effect. No notice has been served on Seller by any person or Governmental Authority regarding any existing, pending or threatened investigation or inquiry related to violations or liabilities under any Applicable Environmental Law,
or regarding any claims for corrective action, remedial obligations or contribution for removal costs or damages under any Applicable Environmental Law or regarding the designation of Seller or any of its Affiliates as a potentially responsible
party for any facility under the Applicable Environmental Laws which would have a Material Adverse Effect, nor does any fact or circumstance exist which, if disclosed publicly, could reasonably be expected to result in the service on Seller of any
such notice. 
  
 (c) To Seller’s best knowledge after
reasonable investigation by Seller, there has been no action taken, or omitted to be taken, by Seller which has caused, or could reasonably be expected to cause, a “release” of any “hazardous substance” at any
“facility,” which “release” could reasonably be expected to have a Material Adverse Effect; without limiting the meaning of those terms, those terms shall include the meaning of those terms as defined in all Applicable
Environmental Laws. 
  
 3.12 Absence of Changes or Events.
Except as set forth on Schedule 3.12 attached hereto, since February 11, 2003 Seller has not: 
  
 (i) Incurred any obligation or liability, absolute, accrued, contingent or otherwise, whether due or to become due, whether individually or in the
aggregate, that has had or might have a Material Adverse Effect; 
  
 (ii) Pledged or subjected any of the Purchased Assets to any material Encumbrance or permitted any of the Purchased Assets to become subject to any material Encumbrance; 
  
 (iii) Sold, transferred, leased to others or otherwise disposed of any of the Purchased Assets or any interest therein;

  
 (iv) Suffered any event or events, whether individually or in
the aggregate, that has had or could be reasonably expected to have a Material Adverse Effect; or 
  

 7 

 (v) Entered into any agreement or made any commitment to take any of the actions described in
Subsections (i) through (iv) inclusive of this Section 3.12. 
  
 3.13 Patent Assets and Intellectual Property Assets. 
  
 (a) Each of the Patent Assets and the Intellectual Property Assets is subsisting and has not been adjudged invalid or unenforceable, in whole or in part. 
  
 (b) To the best of Seller’s knowledge, each of the Patent Assets and the Intellectual Property Assets is valid and
enforceable, and no administrative or court decisions have issued limiting the literal or equivalent scope of any of the Patent Assets or limiting the scope of any of the Intellectual Property Assets. 
  
 (c) To the best of Seller’s knowledge, no claim has been made that any
of the Patent Assets or the Intellectual Property Assets or the use or practice thereof, in whole or any part, does or may violate or Infringe any rights of any third party, misappropriate any property or interest of any third party or constitute
unfair competition with any third party, and there is no basis for any such claim. 
  
 (d) To the best of Seller’s knowledge, there is no unauthorized use by any third party or Infringement or misappropriation of any of the Patent Assets or Intellectual Property Assets. 
  
 (e) Except for the Intellectual Property Assets in which Seller has acquired
its rights, title and interest pursuant to licenses as set forth in Section C(3) of Schedule 1.1 and disclosed to Buyer as required by Section 3.13(h) below, Seller is the sole and exclusive owner of the entire and unencumbered
right, title and interest in and to each of the Patent Assets and the Intellectual Property Assets (including all distinct exclusive rights therein), free and clear of any and all Encumbrances, including, without limitation, free and clear of
pledges, assignments, grants, licenses, user agreements, shop rights and covenants by Seller not to sue third Persons, except for the pledge, security interest and assignment created by the Loan Agreement and the Security Agreement. 
  
 (f) All of the patents and patent applications of Seller are listed in
Section B of Schedule 1.1. Seller has delivered to Buyer true, complete and accurate copies of all documents in Seller’s or Seller’s counsel’s possession that relate to the prosecution of each such patent and patent
application. 
  
 (g) Each of the Patent Assets listed in
Section B(1) of Schedule 1.1 has been duly issued. Each of the Patent Assets is current and in good standing, all maintenance, renewal or other fees currently due in connection with each of the Patent Assets has been paid and all
necessary documents, recordations and certificates in connection therewith have been filed for the purposes of maintaining such Patent Assets in full force and effect. Seller has used proper statutory notice in connection with its use of the Patent
Assets and the Intellectual Property Assets. Seller has taken all other necessary and reasonably appropriate action to maintain and protect its right, title and interest in and to the Patent Assets and the Intellectual Property Assets and its
rights, powers, privileges and immunities thereunder, except where the failure to take such action would not have a Material Adverse Effect. 
  

 8 

 (h) As necessary to identify the following, Schedule 1.1 sets forth a true, accurate, and complete
list and description (i) in Section C(1) thereof, all material works of authorship of Seller; (ii) in Section C(2) thereof, all material trade secrets of Seller that are part of the Purchased Assets; and (iii) in Section C(3)
thereof, all material licenses to which Seller is a party and under which it acquires any right, power, privilege, or immunity with respect to any intellectual property of a third party. For any of the foregoing that is the subject of an
application, registration or other filing with any Governmental Authority, the applicable Governmental Authority and its applicable file number or other identifier for such filing is identified in such Section of Schedule 1.1. Seller has
delivered to Buyer true, complete, and accurate copies of all documents relating to the foregoing and has provided descriptions relating to the foregoing sufficient to allow Buyer to fully evaluate the foregoing. 
  
 (i) The execution and delivery of this Agreement or any of the other
Transaction Documents and the consummation of the transactions contemplated hereby and thereby will not result in any abandonment, revocation, cancellation, suspension, termination or modification of any of the rights, powers, privileges and
immunities of Seller in or with respect to any of the Patent Assets or Intellectual Property Assets (other than to transfer all of same intact to Buyer), or constitute a breach or other condition that will or with the passage of time will permit any
third-party to cause the revocation, cancellation, suspension, termination or modification of any such rights, powers, privileges and immunities. 
  
 (j) Each component of the software listed in Section C(1) of Schedule 1.1 will function in all material respects in accordance with the
applicable specifications for such component, which Seller has provided to Buyer in accordance with Section 3.13(h). 
  
 (k) Other than the Patent Assets and Intellectual Property Assets conveyed to Buyer under this Agreement, no intellectual property or other proprietary
rights or interests are or will be required by Buyer to make, use, sell, offer for sale, import or operate (i) any Moonbeamer Satellite Router in the ordinary and intended manner or in any reasonably foreseeable alternative or equivalent manner, or
(ii) any invention claimed in any Patent Asset in accordance with any embodiment of such invention set forth in such Patent Asset. 
  
 3.14 Brokers. All negotiations relating to the Transaction Documents and the transactions contemplated hereby have been carried on without the
intervention of any person acting on behalf of Seller in such manner as to give rise to any valid claim for any broker’s or finder’s fee or similar compensation. 
  
 3.15 Disclosure. No representation, warranty or statement made by Seller in this Agreement or any of the Exhibits or
Schedules hereto, or any agreements, certificates, documents or instruments delivered or to be delivered to Buyer in accordance with this Agreement or the other Transaction Documents, contains or will contain any untrue statement of a material fact
or omits or will omit to state a material fact necessary to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading. Seller does not know of any fact or condition that materially
adversely affects, or in the future may materially adversely affect, the condition, properties, assets, liabilities, business, operations or prospects of Seller that has not been set forth herein or in any Schedule hereto. 
  

 9 

 ARTICLE IV 
 REPRESENTATIONS OF BUYER 
  
 The following representations and warranties are made by Buyer to Seller: 
  
 4.1 Corporate Organization and Power. Buyer (a) is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas and (b) has the full power (corporate or otherwise),
authority and legal right to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform and observe the terms and provisions thereof. 
  
 4.2 Approvals. There is no legal impediment to the execution and
delivery of this Agreement or the other Transaction Documents by Buyer or to the consummation of the transactions contemplated hereby or thereby, and, except as set forth on Schedule 4.2 attached hereto, no filing or registration with, or
authorization, consent or approval of, a Governmental Authority, stockholders or any other third party is necessary for the consummation by Buyer of the transactions contemplated hereby or thereby, other than such filings, registrations,
authorizations, consents or approvals which, if not made or obtained, would not, in the aggregate, have a material adverse effect on the Buyer’s ability to consummate the transactions contemplated by this Agreement. 
  
 4.3 Enforceability of Transaction Documents. Each of the Transaction
Documents to which Buyer is a party has been duly authorized by all necessary corporate action on the part of Buyer, has been validly executed and delivered by Buyer and is the legal, valid and binding obligation of Buyer, enforceable against Buyer
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditor’s rights generally or by general principles of equity. 

 
 4.4 Brokers. All negotiations relating to the Transaction Documents
and the transactions contemplated hereby have been carried on without the intervention of any person acting on behalf of Buyer in such manner as to give rise to any valid claim for any broker’s or finder’s fee or similar compensation.

  
 ARTICLE V 
 COVENANTS 
  
 5.1 Varitek Ground Lease. Seller shall use its best efforts to amend that certain Lease Agreement dated January 1, 2000, by and between Sullivan as
“Lessor” and Seller as “Lessee” (as amended, the “Cislunar Ground Lease”) to provide that Seller’s use of the Leased Property (as defined in the Cislunar Ground Lease) is non-exclusive effective as of the
Closing. Seller shall further use its best efforts to cause Sullivan to enter into a lease agreement with Buyer substantially in the form attached hereto as Exhibit B (the “Varitek Ground Lease”), effective as of the Closing,
pursuant to which Sullivan leases to Buyer a portion of the leased property described in Section 1 of the Cislunar Ground Lease, on the terms and conditions set forth in the Varitek Ground Lease. 
  
 5.2 Varitek Office Sublease. Seller shall use its best efforts to
cause Niobrara Research and Development Corporation (“Niobrara”) to enter into a sublease agreement as 

  

 10 

 
“Sublessor” with Buyer as “Sublessee” substantially in the form attached hereto as Exhibit C (the “Varitek Office
Sublease”), effective as of the Closing, pursuant to which Niobrara subleases to Buyer office space in the “leased premises” described in Section 2 of that certain Lease Agreement dated January 1, 2001, by and between Sullivan and
Ed Wade as “Lessor” and Niobrara as “Lessee” (as amended, the “Niobrara Office Lease”) on the terms and conditions set forth in the Varitek Office Sublease. Seller will use its best efforts to cause Ed Wade to,
consent to the Varitek Office Sublease, as required under Section 9 of the Niobrara Office Lease. 
  
 5.3 License Agreement. At the Closing, Buyer shall enter into a license agreement with Seller substantially in the form attached hereto as
Exhibit D (the “License Agreement”) pursuant to which Buyer will grant to Seller a non-exclusive, non-transferable license to use certain of the Intellectual Property Assets solely in connection with the provision of service
by Seller to any of Seller’s customers listed on Schedule 5.4 attached hereto and their respective Affiliates (but only to such Persons) in the conduct of Seller’s business and operations in the ordinary course and consistent with
Seller’s past practices. 
  
 5.4 Moonbeamer Satellite
Router and Related Technology and Know-how. 
  
 (a) Buyer and
Seller each hereby expressly acknowledges and agrees that the Purchased Assets include, among other assets, all of Seller’s right, title and interest in and to all of the technology, know-how, information and other intellectual property,
whether patented, patentable, copyrighted, copyrightable, confidential or otherwise, embodied in a Moonbeamer Satellite Router in the ordinary and intended manner or in any reasonably foreseeable alternative or equivalent manner (collectively, the
“Moonbeamer Technology”), and that from and after the Closing, Buyer shall be the sole owner of all of the Moonbeamer Technology and shall have the sole and exclusive right to manufacture, produce, import, market, sell, develop and
otherwise use and exploit the Moonbeamer Satellite Router, the Moonbeamer Technology and all other related technology, know-how and information. 
  
 (b) Notwithstanding the provisions of Section 5.4(a) above, Buyer hereby agrees to sell to Seller all Moonbeamer Satellite Routers that Seller may
reasonably require (upon sixty (60) days prior written notice of such requirements from Seller to Buyer) solely for Seller to service the current and future requirements of those of Seller’s current customers set forth on Schedule 5.4
attached hereto and their respective Affiliates for any of the services currently offered by Seller as of the Effective Date and solely for the use of such services and Moonbeamer Satellite Routers by such customers and their respective Affiliates
within the Field. The price for such Moonbeamer Satellite Routers shall be negotiated by Buyer and Seller but in no event shall exceed one hundred fifty percent (150%) of Buyer’s cost. 
  
 (c) Seller hereby expressly acknowledges and agrees that Seller shall have no
right to purchase, and Buyer may refuse to sell, any Moonbeamer Satellite Routers pursuant to this Section 5.4, if such Moonbeamer Satellite Routers are: 
  
 (i) for sale, lease, transfer or other disposition to, or use by or on behalf of, any Person other than the current
customers of Seller set forth on Schedule 5.4 attached hereto and their respective Affiliates; 
  

 11 

 (ii) for any purpose other than solely to service the current and future requirements of such Seller
customers and their respective Affiliates for any of the services currently offered by Seller as of the Effective Date; or 
  
 (iii) for any use not solely within the Field. 
  
 Seller hereby expressly agrees not to purchase or attempt to purchase, use or attempt to use, or permit the use or attempted use of, any Moonbeamer Satellite Routers for
any other Person, purpose or use. 
  
 (d) Buyer and Seller each
hereby expressly acknowledges and agrees that Buyer’s obligation to sell Moonbeamer Satellite Routers to Seller and Seller’s right to purchase Moonbeamer Satellite Routers from Buyer pursuant to this Section 5.4 shall immediately
terminate and be of no further force or effect upon the earliest to occur of: (i) a Seller Bankruptcy Event; (ii) the dissolution of Seller; (iii) the breach by Seller (as determined in Buyer’s reasonable judgment) of the limitations on
Seller’s right to purchase or use Moonbeamer Satellite Routers set forth in this Section 5.4; (iv) the failure of Seller to pay the full purchase price of any Moonbeamer Satellite Router upon delivery of such Moonbeamer Satellite Router
to Seller; (v) the sale or other transfer of all or any material portion of Buyer’s right, title or interest in and to any of the Moonbeamer Technology to any Person other than an Affiliate of Buyer; and (vi) the election by Buyer to cease
production of Moonbeamer Satellite Routers. 
  
 (e) In the event
that Buyer’s obligation to sell Moonbeamer Satellite Routers to Seller and Seller’s right to purchase Moonbeamer Satellite Routers from Buyer pursuant to this Section 5.4 terminates pursuant to Section 5.4(d)(vi) above, Buyer
will enter into a license agreement with Seller pursuant to which Buyer will grant a non-exclusive, non-transferable license to Seller to use such of the Moonbeamer Technology as is reasonably required in order to manufacture Moonbeamer Satellite
Routers solely for the purpose of permitting Seller to manufacture additional Moonbeamer Satellite Routers as reasonably required by Seller solely to service the then-current and future requirements of those of Seller’s current customers set
forth on Schedule 5.4 attached hereto and their respective Affiliates for any of the services currently offered by Seller as of the Effective Date and use thereof within the Field. The terms of such license shall be as mutually agreed upon by
Buyer and Seller if and when such license becomes necessary pursuant to this Section 5.4(e) and shall include, without limitation, such confidentiality and other protective provisions and limitations as Buyer, in the exercise of Buyer’s
reasonable judgment, deems necessary in order to protect its rights in and to the Moonbeamer Technology. 
  
 (f) Except as provided in Section 5.4(g), Buyer and Seller each hereby expressly acknowledges and agrees that all of Seller’s rights pursuant
to this Section 5.4 are personal to Seller and may not be assigned or otherwise transferred, voluntarily or involuntarily, to any other Person without the prior written consent of Buyer, which consent may be withheld in Buyer’s sole and
absolute discretion, and any assignment or other transfer or attempted assignment or transfer of any of such rights in violation of this Section 5.4(f) shall be void. 
  

 12 

 (g) As a limited exception to Section 5.4(f), Seller may assign to Siricomm, Inc.
(“Siricomm”), a Delaware corporation with offices located at 2900 Davis Boulevard, Suite 130, Joplin, Missouri 64804, Seller’s rights under this Section 5.4 relating to the business of Siricomm, subject to each of the
following conditions: 
  
 (i) Such rights shall be further
restricted, and the terms and conditions of this Section 5.4 shall be applied with respect thereto, by limiting the Field to mean data broadcasting, private networking and Internet access services involving satellite transmission of data
using the TCP/IP communications protocol (A) to the kind and quality of such services acquired by Siricomm and its Affiliates from Seller as of the Effective Date, (B) to the application and use of such services by Siricomm and its Affiliates as of
the Effective Date within the particular product and service (but not geographic) markets in which Siricomm and its Affiliates currently use such services, and (C) to the conduct of the business and operations of Siricomm and its Affiliates in the
ordinary course and consistent with the past practices of Siricomm and its Affiliates as of the Effective Date; 
  
 (ii) Any rights assigned to Siricomm under this Section 5.4(g) shall terminate immediately upon the occurrence of any Seller Bankruptcy Event or
any other liquidation or dissolution of Seller occurring on or before March 31, 2004; 
  
 (iii) Prior to the effectiveness of any such assignment, Siricomm shall have agreed in a writing delivered to Buyer to be bound by the terms and conditions of this Section 5.4 and the terms and conditions of
this Agreement necessary to construe and apply this Section 5.4 with respect to Siricomm the same as if Siricomm were itself “Seller” hereunder. Such agreement shall be in form and substance acceptable to Buyer in Buyer’s
reasonable commercial discretion and shall provide Buyer with the right to directly enforce Siricomm’s compliance with the terms and conditions of this Section 5.4; and 
  
 (iv) Any assignment pursuant to this Section 5.4(g) shall not operate to release Seller from compliance with any
term or condition of this Agreement or constitute a waiver or acquiescence by Buyer to any failure of Seller to comply with the terms or conditions of this Agreement. 
  
 (h) Notwithstanding any other provision of this Section 5.4, Seller shall have no obligation to purchase any
Moonbeamer Satellite Routers pursuant to this Section 5.4. 
  
 5.5 Purchased Assets Requiring Consent to Transfer. To the extent that the assignment and transfer of any of the Purchased Assets, including, without limitation, the FCC Licenses and the licenses described in Section C(3) of
Schedule 1.1 attached hereto, is not permitted without the consent of a Person not a Party to this Agreement, the assignment and transfer of such Purchased Assets shall not occur until such time as such consent has been obtained;
provided, however, that in the meantime, Seller shall cooperate with Buyer in any and all reasonable arrangements requested by Buyer designed to provide Buyer with all of the benefits of such Purchased Assets as if such consent had
been obtained and such Purchased Assets had been assigned and transferred to Buyer as of the Closing; and provided further that Seller shall use its best efforts to obtain all such consents prior to the Closing and shall continue to
use its best efforts to obtain as soon after the Closing as possible all such consents that have not been obtained as of the Closing. Nothing in this Section 5.5 shall excuse Seller from responsibility for any of Seller’s
representations, warranties, covenants or agreements under this Agreement. 
  

 13 

 5.6 Commercially Reasonable Efforts. Each of the Parties shall use its commercially reasonable
efforts to take all actions and to do all things necessary, proper or advisable in order to consummate and make effective, as soon as reasonably practicable, the transactions contemplated by this Agreement. 
  
 5.7 Further Assurances. Subsequent to the Closing, Seller, without the
necessity of any further consideration whatsoever, will execute and deliver such further instruments and take such additional actions as Buyer may reasonably request to implement more effectively the conveyance and transfer of the Purchased Assets
hereunder or otherwise to confirm or further evidence the transactions contemplated by this Agreement. 
  
 ARTICLE VI 
 INDEMNIFICATION 
  
 6.1 Survival. All representations, warranties, covenants, agreements,
obligations and undertakings contained in this Agreement and in any other Transaction Document shall be deemed to be material and to have been relied upon by the Parties hereto. All representations, warranties, covenants, agreements, obligations and
undertakings contained in this Agreement and in any other Transaction Document shall survive the Closing without limitation. 
  
 6.2 Indemnification by Seller. Subject to the limitations on indemnification set forth in Section 6.4, Seller shall indemnify, defend and
hold harmless Buyer and each of Buyer’s officers, directors, shareholders, employees, agents and representatives (each a “Buyer Indemnitee”) against any and all Damages which such Buyer Indemnitee may suffer, sustain or become
subject to arising out of or related to: 
  
 (a) any
misrepresentation in or breach of any representation or warranty of Seller or the failure of Seller to perform any of its covenants, agreements, obligations or undertakings contained in this Agreement or any other Transaction Document or in any
Exhibit, Schedule, certificate or other instrument or document furnished or to be furnished by Seller pursuant to this Agreement; 
  
 (b) the business or operations of Seller, including, but not limited to, any and all Liabilities of Seller; 
  
 (c) any Infringement arising out of or related to any of the Purchased Assets
as in existence on or before the Closing Date or use of any of the Purchased Assets in any manner employed by Seller on or before the Closing Date; 
  
 (d) the presence or release of any hazardous substances on any property owned or operated by Seller, and any other acts or omissions by Seller giving rise
to Liabilities under any current or future Applicable Environmental Laws (as those may be amended from time to time) or otherwise relating to hazardous materials, hazardous substances, or hazardous wastes; 
  

 14 

 (e) the use or ownership of any of the Purchased Assets by Seller on or before the Closing Date; or

  
 (f) the use or ownership of any of the Retained Assets at any
time. 
  
 6.3 Indemnification by Buyer. Subject to the
limitations on indemnification set forth in Section 6.4, Buyer shall indemnify, defend and hold harmless Seller and each of Seller’s officers, directors, shareholders, employees, agents and representatives (each a “Seller
Indemnitee”) against any and all Damages which such Seller Indemnitee may suffer, sustain or become subject to arising out of or related to: 
  
 (a) any misrepresentation in or breach of any representation or warranty of Buyer or the failure of Buyer to perform any of its covenants, agreements,
obligations or undertakings contained in this Agreement or any other Transaction Document or in any exhibit, schedule, certificate or other instrument or document furnished or to be furnished by Buyer pursuant to this Agreement; or 
  
 (b) the use or ownership of any of the Purchased Assets by Seller after the
Closing Date. 
  
 6.4 Limitation. Each of Seller’s and
Buyer’s respective indemnification obligations under this Article VI shall terminate and be of no further force or effect upon the expiration of one (1) year after the Closing Date; provided, however, that if a claim for
indemnification has been made against Seller or Buyer prior to the expiration of such one-year period and in accordance with the provisions of this Article VI, such Party’s indemnification obligations pursuant to this Article VI
shall survive with respect to such claim until such claim has been finally resolved. 
  
 6.5 Procedure for Indemnification. 
  
 (a) In the event that any claim, demand or Action for which a Party (an “Indemnifying Party”), would be liable to the another Person under Sections 6.2 or 6.3 (an “Indemnified
Person”) is asserted against or sought to be collected from an Indemnified Party by a third party, the Indemnified Party shall, with reasonable promptness, notify the Indemnifying Party of such claim, demand or Action, but the failure to so
notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article VI, except to the extent the Indemnifying Party demonstrates that the defense of such claim, demand or Action is materially
prejudiced thereby. The Indemnifying Party shall have thirty (30) days from receipt of the above notice from the Indemnified Party (the “Notice Period”) to notify the Indemnified Party whether or not the Indemnifying Party desires,
at the Indemnifying Party’s sole cost and expense, to defend the Indemnified Party against such claim, demand or Action; provided, however, that the Indemnified Party is hereby authorized to file, prior to and during the Notice
Period, any motion, answer or other pleading that it shall deem necessary or appropriate to protect its interests or those of the Indemnifying Party and not prejudicial to the Indemnifying Party. If the Indemnifying Party elects to assume the

  

 15 

 
defense of any such claim, demand or Action, the Indemnified Party shall have the right to employ separate counsel at its own expense and to participate in
the defense thereof. If the Indemnifying Party elects not to assume the defense of such claim, demand or Action (or fails to give notice to the Indemnified Party prior to the expiration of the Notice Period), the Indemnified Party shall be entitled
to assume the defense of such claim, demand or Action with counsel of its own choice, at the expense of the Indemnifying Party. If the claim, demand or Action is asserted against both the Indemnifying Party and the Indemnified Party, and, based on
the advice of counsel reasonably satisfactory to the Indemnifying Party, it is determined that there is or may be a conflict of interest which renders it inappropriate for the same counsel to represent both the Indemnifying Party and the Indemnified
Party, the Indemnifying Party shall be responsible for paying separate counsel for the Indemnified Party; provided, however, that the Indemnifying Party shall not be responsible for paying for more than one separate firm of attorneys
to represent all of the Indemnified Parties, regardless of the number of Indemnified Parties there may actually be. If the Indemnifying Party elects to assume the defense of such claim, demand or Action, (i) no compromise or settlement thereof may
be effected by the Indemnifying Party without the Indemnified Party’s written consent (which consent shall not be unreasonably withheld, conditioned or delayed) unless the sole relief provided is monetary damages that are paid in full by the
Indemnifying Party and (ii) the Indemnifying Party shall have no liability with respect to any compromise or settlement thereof effected without its written consent (which shall not be unreasonably withheld, conditioned or delayed). 
  
 (b) Notwithstanding the provisions of Section 6.5(a) or any other
provision of this Agreement, Seller shall have the right to assume the defense of any claim, demand or Action to which Section 6.2 applies, if but only if, prior to the expiration of the Notice Period, Seller (i) confirms in writing to the
applicable Buyer Indemnitee(s) Seller’s obligation to hold such Buyer Indemnitee(s) harmless and to indemnify such Buyer Indemnitee(s) from and against such claim, demand or Action and any Damages such Buyer Indemnitee(s) may suffer, sustain or
become subject to arising out of or related thereto; (ii) furnishes adequate (in the reasonable discretion of such Buyer Indemnitee(s)) financial assurances to such Buyer Indemnitee(s) of Seller’s ability to hold such Buyer Indemnitee(s)
harmless and to indemnify such Buyer Indemnitee(s) from and against such claim, demand or Action and any Damages such Buyer Indemnitee(s) may suffer, sustain or become subject to arising out of or related thereto; and (iii) diligently defends such
claim, demand or Action with counsel satisfactory to such Buyer Indemnitee(s) in such Buyer Indemnitee’s reasonable judgment. 
  
 (c) If requested by the Indemnifying Party, the Indemnified Person agrees to cooperate with the Indemnifying Party and its counsel in contesting any
claim, demand or Action which the Indemnifying Party elects to contest or, if appropriate, in making any counterclaim against the Person asserting the claim, demand or Action, or any cross-complaint against any Person asserting the claim, demand or
Action, or any cross-complaint against any other Person and further agrees to take such other action as may be reasonably requested by the Indemnifying Party to reduce or eliminate any Damages for which the Indemnifying Party would have
responsibility, but the Indemnifying Party shall reimburse the Indemnified Person for any expenses incurred by the Indemnified Person in so cooperating or acting at the request of the Indemnifying Party. 
  
 (d) The Indemnified Person agrees to afford the Indemnifying Party and its
counsel the opportunity to be present at, and to participate in, conferences with all Persons, including Governmental Authorities, asserting any claim, demand or Action against the Indemnified Person or conferences with representatives of or counsel
for such Persons. 
  
  

 16 

 6.6 Payment of Losses. Except as specifically set forth in any other Section of this Agreement
with respect to payment of losses, which Section shall govern payment of losses with respect to matters set forth therein, the Indemnifying Party shall pay to the Indemnified Person in cash the amount of any Damages to which the Indemnified Person
may become entitled by reason of the provisions of this Article VI, such payment to be made within thirty (30) days after any such amount of Damages is finally determined either pursuant to mutual agreement of the Indemnifying Party and the
Indemnified Person, pursuant to the dispute resolution provisions set forth in Article VII or pursuant to a final, nonappealable, binding judgment of a court of competent jurisdiction. 
  
 6.7 ACKNOWLEDGMENT REGARDING NEGLIGENCE. WITHOUT LIMITING OR ENLARGING
THE SCOPE OF THE INDEMNIFICATION OBLIGATIONS SET FORTH IN THIS ARTICLE VI, EACH OF THE PARTIES HEREBY ACKNOWLEDGES AND AGREES THAT THE INDEMNIFICATION OBLIGATIONS SET FORTH IN THIS ARTICLE VI SHALL APPLY EVEN WHERE THE DAMAGES FOR
WHICH AN INDEMNIFIED PERSON SEEKS INDEMNIFICATION RESULT FROM THE GROSS, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE (BUT NOT SOLE) NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF AN INDEMNIFIED PERSON; PROVIDED, HOWEVER, THAT THE
INDEMNIFYING PARTY SHALL NOT BE LIABLE OR RESPONSIBLE FOR SUCH DAMAGES TO THE EXTENT THEY ARE THE RESULT OF THE GROSS, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF AN INDEMNIFIED PERSON. THE PARTIES
HEREBY FURTHER ACKNOWLEDGE AND AGREE THAT THIS SECTION 6.7 CONSTITUTES A CONSPICUOUS LEGEND. 
  
 ARTICLE VII 
 ARBITRATION 
  
 7.1 Scope. The Parties hereto agree that any claim, controversy,
dispute or disagreement between or the Parties arising out of or related to any Transaction Document (other than claims involving any confidentiality covenant) shall be governed exclusively by the terms and provisions of this Article VII;
provided, however, that the terms and provisions of this Article VII shall not preclude any Party hereto from seeking, or a court of competent jurisdiction from granting, a temporary restraining order, temporary injunction or
other equitable relief for any breach of (i) any confidentiality covenant in any Transaction Document or (ii) any duty, obligation, covenant, representation or warranty, the breach of which may cause irreparable harm or damage to such Party.

  
 7.2 Arbitrators. In the event any claim for
indemnification under this Agreement is brought by Seller or Buyer, or there is any other claim, controversy, dispute or disagreement between the Parties arising out of or related to any Transaction Document, and the Parties are unable to resolve
such claim, controversy, dispute or disagreement within thirty (30) days after notice thereof is first delivered, the Parties agree to select arbitrators to hear and decide all such claims, controversies, disputes and disagreements under this
Article VII. Seller shall select one 

  

 17 

 
arbitrator, and Buyer shall select one arbitrator. The two arbitrators so chosen shall then select a third arbitrator who is experienced in the matter or
action that is the subject of such arbitration. Each of the arbitrators chosen shall be impartial and independent of both Parties. If either of the Parties fails to select an arbitrator within twenty (20) days after the end of such thirty-day
period, or if the arbitrators chosen fail to select a third arbitrator within twenty (20) days, then any Party may in writing request the American Arbitration Association to select the arbitrators and, subject to this Article VII, such
arbitrators shall hear all arbitration matters arising under this Article VII. 
  
 7.3 Applicable Rules. 
  
 (a) Each arbitration hearing shall be held in Houston, Texas. The arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association to the extent such rules do not conflict with the
terms hereof. The decision of a majority of the arbitrators shall be reduced to writing and shall be final and binding on the Parties. Judgment upon the award(s) rendered by a majority of the arbitrators may be entered and execution had in any court
of competent jurisdiction or application may be made to such court for a judicial acceptance of the award and an order of enforcement. The charges and expenses of the arbitrators shall be shared equally by the Parties. 
  
 (b) The arbitration shall commence within thirty (30) days after the
arbitrators are selected in accordance with the provisions of this Article VII, and the arbitrators shall render a decision within ninety (90) calendar days after commencement of the arbitration. In fulfilling their duties with respect to
determining the amount of any claim for indemnification, the arbitrators may consider such matters as, in the opinion of the arbitrators, are necessary or helpful to make a proper valuation. The arbitrators may consult with and engage disinterested
third parties to advise the arbitrators. The arbitrators shall add any interest factor reflecting the time value of money to the amount of any indemnification award, but in no event shall the arbitrators award any consequential, exemplary, punitive,
multiple or other special damages. 
  
 (c) The decision of the
arbitrators shall be final and binding on the Parties, and the Parties each covenant and agree not to file any lawsuit or other judicial proceeding in connection with any claim, controversy, dispute or disagreement between or the Parties arising out
of or related to any Transaction Document (other than claims involving any confidentiality covenant), other than to compel arbitration proceedings or to enforce the award of a majority of the arbitrators. 
  
 (d) All privileges under Texas and federal law, including, without
limitation, the attorney-client and work-product privileges, shall be preserved and protected to the same extent that such privileges would be protected in a federal court proceeding applying Texas law. 
  
 ARTICLE VIII 
 MISCELLANEOUS 
  
 8.1 Remedies Not Exclusive. No remedy conferred by any of the specific provisions of this Agreement or any other Transaction Document is intended to be exclusive of any other remedy, and each and every remedy
shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. The election of any one or more remedies by any Party hereto shall not constitute a
waiver of the right to pursue other available remedies. 
  

 18 

 8.2 Parties Bound. Except to the extent otherwise expressly provided herein, this Agreement shall
be binding upon and inure to the benefit of the Parties hereto and their respective heirs, representatives, administrators, guardians, successors and permitted assigns. No other Person shall have any right, benefit or obligation hereunder, except
that the Buyer Indemnitees and the Seller Indemnitees shall have the benefits of the indemnification rights set forth in Article VI, provided that they comply in all material respects with all terms and conditions thereof as if they were
themselves parties to this Agreement. 
  
 8.3 Notices. All
notices, reports, records or other communications that are required or permitted to be given to the Parties under this Agreement shall be sufficient in all respects if given in writing and delivered in person, by telecopy, by overnight courier or by
registered or certified mail, postage prepaid, return receipt requested, to the receiving Party at the following address: 
  
 If to Buyer, addressed to: 
  
 Varitek Industries, Inc. 
 16360 Park Ten Place, Suite 200 
 Houston, TX 77084 
 Attn: Henry Houston 
 Telecopy: (281) 599-1162 
  
 With a copy to: 

 
 Andrews & Kurth L.L.P. 
 600 Travis, Suite 4200 
 Houston, TX 77002 
 Attention: George C. Jones 
 Telecopy: (713) 220-4285 
  
 If to Seller, addressed to: 
  
 Cislunar Networks Corp. 
 P.O. Box 3794 
 Joplin, MO 64803-3794 
 Attention: Mark K. Sullivan 
 Telecopy: (417) 624-5756 
  
 A Party may change
its address by notice to the other Party given in accordance with the provisions of this Section 8.3. Notice shall be deemed given on the date of delivery, in the case of personal delivery or telecopy, or on the delivery or refusal date, as
specified on the return receipt, in the case of overnight courier or registered or certified mail. 
  
 8.4 Choice of Law. This Agreement shall be governed by, and the rights of the Parties construed, interpreted and determined in accordance with, the
laws of the State of Texas. 
  

 19 

 The Parties agree that if any controversy or claim between or among them arising out of or related to this Agreement or
any other Transaction Document results in litigation, the courts of Harris County, Texas or the courts of the United States of America located in Harris County, Texas shall have exclusive jurisdiction to hear and decide such controversy or claim,
and the Parties hereby submit to the jurisdiction of such courts and agree not to object to the laying of venue in any such court on the ground of forum non conveniens or otherwise. 
  
 8.5 Entire Agreement; Amendments and Waivers. This Agreement, together
with the other Transaction Documents and all Exhibits and Schedules hereto and thereto, constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the Parties, and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof, except those set forth herein
or in any other Transaction Document. No supplement, amendment, modification or waiver of this Agreement shall be binding unless it shall be specifically designated to be a supplement, amendment, modification or waiver of this Agreement and shall be
executed in writing by both of the Parties. No waiver of any of any provision of this Agreement shall be binding unless executed in writing by the Party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 
  
 8.6 Assignment. Except as provided in Section 5.4(f), this Agreement may not be assigned by operation of law
or otherwise without the prior written consent of both Parties; provided, however, that Buyer may assign all or a portion of its rights and obligations in this Agreement to an Affiliate of Buyer without the consent of Seller.

  
 8.7 Attorneys’ Fees. Except as otherwise
specifically provided herein, if any action or proceeding is brought by any party with respect to this Agreement or any other Transaction Document, or with respect to the interpretation, enforcement or breach hereof, the prevailing party in such
action shall be entitled to an award of all reasonable costs of litigation or arbitration, including, without limitation, attorneys’ fees, to be paid by the losing party, in such amounts as may be determined by the court having jurisdiction of
such action or proceeding or by the arbitrators deciding such action or proceeding. 
  
 8.8 Expenses. Except as provided in Section 8.7 of this Agreement, each of the Parties shall bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement
and the consummation of the transactions contemplated hereby. 
  
 8.9 No Tax Representations. Each Party acknowledges that it is relying solely on its advisors to determine the Tax consequences of the transactions and arrangements contemplated by this Agreement and the other Transaction Documents
and that no representation or warranty has been made by any Party as to the Tax consequences of such transactions and arrangements. 
  
 8.10 Multiple Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 
  

 20 

 8.11 Headings, Gender and Number. The headings of the several Articles and Sections used in this
Agreement are for convenience of reference only, do not constitute a part of this Agreement and shall not be deemed to limit, characterize or in any way affect the construction or interpretation of any provision of this Agreement. All provisions of
this Agreement shall be enforced and construed as if no headings had been used in this Agreement. As used in this Agreement (including all Exhibits, Schedules and amendments hereto), each of the masculine, feminine and neuter gender and each of the
singular and plural number shall be deemed to include the others whenever the context so requires. 
  
 8.12 Severability. Each provision of this Agreement constitutes a separate and distinct undertaking, covenant or provision hereof and shall be
deemed to be severable from the others. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this agreement
(including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and all such remaining provisions shall
remain in full force and effect; (b) such provision shall be deemed reformed to the extent necessary to conform to applicable law and to give maximum effect to the intent of the Parties; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, illegal or unenforceable. 
  
 8.13 “Knowledge,” Etc. “To the knowledge,” “to the best knowledge,” or any similar phrase shall be deemed to refer to the knowledge of the shareholders, directors and officers of
Seller or Buyer. An individual will be deemed to have “knowledge” of a particular fact or matter if: (a) such individual is actually aware of such fact or matter or (b) a prudent individual could be expected to discover or otherwise become
aware of such fact or matter in the course of conducting a reasonably comprehensive investigation concerning the existence of such fact or matter. 
  
 ARTICLE IX 
 DEFINITIONS

  
 9.1 Defined Terms. As used in this Agreement, the
following terms shall have the meanings set forth below: 
  
 “Action” shall mean any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any court or other Governmental Authority. 
  
 “Affiliate” shall mean, as to any Person, each of the Persons that directly or indirectly, through one or
more intermediaries, owns or controls, or is controlled by or under common control with, such Person. For the purpose of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction
of management and policies through the ownership of voting securities. 
  
 “Agreement” shall have the meaning set forth in the Preamble to this Agreement. 
  

 21 

 “Applicable Environmental Laws” shall have the meaning set forth in Section
3.11(a) of this Agreement. 
  
 “Business Day”
shall mean any calendar day other than a Saturday, Sunday or other day on which commercial banks in Houston, Texas are authorized by law to be closed. 
  
 “Buyer” shall have the meaning set forth in the Preamble to this Agreement. 
  
 “Buyer Indemnitee” shall have the meaning set forth in Section 6.2 of this Agreement. 
  
 “CERCLA” shall have the meaning set forth in Section
3.11(a) of this Agreement. 
  
 “Cislunar Ground
Lease” shall have the meaning set forth in Section 5.1 of this Agreement. 
  
 “Closing” shall mean the closing and consummation of the transactions contemplated by this Agreement. 
  
 “Closing Date” shall mean the date on which the Closing occurs. 
  
 “Damages” shall mean any and all Liabilities, losses, damages, demands, assessments, claims, costs and
expenses, including, without limitation, interest, awards, judgments, penalties, settlements, fines, costs of remediation, diminution of value, consequential damages, reasonable fees and expenses of attorneys, accountants and other professionals
sustained or incurred in connection with the defense or investigation of any claim, demand, Action, suit or proceeding. 
  
 “Default” shall have the meaning set forth in Section 1.1 of the Loan Agreement. 
  
 “Effective Date” shall have the meaning set forth in the
Preamble to this Agreement. 
  
 “Encumbrance”
means any security interest, pledge, mortgage, lien (including, without limitation, environmental, Tax and judgment liens), charge, encumbrance, adverse claim, preferential arrangement, or restriction of any kind, including, without limitation, any
restriction on the use, voting, transfer, receipt of income or other exercise of any attributes of ownership. 
  
 “Event of Default” shall have the meaning set forth in Article VII of the Loan Agreement. 
  
 “FCC” shall have the meaning set forth in Section D
of Schedule 1.1. 
  
 “FCC Licenses” shall
have the meaning set forth in Section D of Schedule 1.1. 
  
 “Field” means the provision of data broadcasting, private networking and Internet access services involving satellite transmission of data using the TCP/IP communications protocol, as limited: 
  
 (a) to the provision of such services by Seller solely to
Seller’s current customers set forth on Schedule 5.4 attached hereto and their respective Affiliates; 
  

 22 

 (b) to the conduct of Seller’s business and operations in the ordinary course and
consistent with Seller’s past practices as of the Effective Date; and 
  
 (c) with respect to each of Seller’s current customers set forth on Schedule 5.4 attached hereto and its Affiliates: 
  
 (i) to the kind and quality of such services acquired by such customer and its Affiliates from Seller as of
the Effective Date; 
  
 (ii) to the application
and use of such services by such customer and its Affiliates as of the Effective Date within the particular product and service (but not geographic) markets in which such customer and its Affiliates currently use such services; and 
  
 (iii) to the conduct of the business and operations of such
customer and its Affiliates in the ordinary course and consistent with the past practices of such customer and its Affiliates as of the Effective Date. 
  
 “Final Order” shall mean an action or decision by the FCC as to which (a) no request for a stay or similar request is pending, no stay is
in effect, the action or decision has not been vacated, reversed, set aside, annulled or suspended and any deadline for filing such request that may be designated by statute or regulation has passed, (b) no petition for rehearing or reconsideration
or application for review is pending and the time for the filing of any such petition or application has passed, (c) the FCC does not have the action or decision under reconsideration on its own motion and the time within which it may effect such
reconsideration has passed and (d) no appeal is pending or in effect, including other administrative or judicial review, and any deadline for filing any such appeal that may be designated by statute or rule has passed. 
  
 “Governmental Authority” shall mean any nation or
government, any foreign, United States, state, local or other political subdivision thereof and any central bank thereof, any municipal, local, city or county government, and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government. 
  
 “Indemnifying Party” shall have the meaning set forth in Section 6.5(a) of this Agreement. 
  
 “Indemnified Person” shall have the meaning set forth in Section 6.5(a) of this Agreement. 
  
 “Infringe” shall mean any act or condition that, in whole or
in part, actually constitutes or is alleged to constitute Infringement. 
  
 “Infringement” shall mean any actual or alleged patent, copyright, trademark, trade secret or other intellectual property right infringement, any actual or alleged misappropriation or violation of any
other proprietary right or any actual or alleged unfair competition. 
  

 23 

 “Intellectual Property Assets” shall have the meaning set forth in Section C of
Schedule 1.1. 
  
 “Letter Agreement” shall
have the meaning set forth in the Recitals to this Agreement. 
  
 “Liability” means any debt, obligation or other liability of any kind or character whatsoever, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, due
or to become due, choate or inchoate. 
  
 “License
Agreement” shall have the meaning set forth in Section 5.3 of this Agreement. 
  
 “Loan” shall have the meaning set forth in the Recitals to this Agreement. 
  
 “Loan Agreement” shall have the meaning set forth in the Recitals to this Agreement. 
  
 “Material Adverse Effect” shall mean a material adverse
effect upon any of (a) the ability of Seller to perform under the Transaction Documents; (b) the Purchased Assets; or (c) Buyer’s rights and remedies under this Agreement or the other Transaction Documents. 
  
 “Moonbeamer Satellite Router” shall mean that certain model
of a satellite router designed, developed and marketed by Seller under the brand or mark “Moonbeamer,” that incorporates the functions of internet protocol satellite transceiver, router, caching proxy server, video-on-demand server, web
server and email server in a single package. 
  
 “Moonbeamer Technology” shall have the meaning set forth in Section 5.4(e) of this Agreement. 
  
 “Niobrara” shall have the meaning set forth in Section 5.2 of this Agreement. 
  
 “Niobrara Office Lease” shall have the meaning set forth in
Section 5.2 of this Agreement. 
  
 “Notice
Period” shall have the meaning set forth in Section 6.5(a) of this Agreement. 
  
 “Obligations” shall have the meaning set forth under Section 1.1 of the Loan Agreement. 
  
 “Option” shall have the meaning set forth in the Recitals to this Agreement. 
  
 “Optioned Assets” shall have the meaning set forth in the
Recitals to this Agreement. 
  
 “Outstanding Loan
Amount” shall have the meaning set forth in the Recitals to this Agreement. 
  
 “Parties” shall have the meaning set forth in the Preamble to this Agreement. 
  
 “Patent Assets” shall have the meaning set forth in Section B of Schedule 1.1. 
  

 24 

 “Person” shall mean an individual, a corporation, an association, a joint venture, a
partnership, a limited liability company, an organization, an association, a business, a trust, a government or political subdivision thereof, a government agency or any other legal entity. 
  
 “Purchased Assets” shall have the meaning set forth in
Section 1.1 of this Agreement. 
  
 “RCRA”
shall have the meaning set forth in Section 3.11(a) of this Agreement. 
  
 “Requirement of Law” shall mean, as to any Person, the charter, articles or certificate of incorporation and bylaws or other organizational or governing documents of such Person, and any statute, law,
treaty, rule, regulation, order, decree, writ, injunction or determination of any arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of
its property is subject. 
  
 “Retained Assets”
shall have the meaning set forth in Section 1.1 of this Agreement. 
  
 “Security Agreement” shall have the meaning set forth in Section 1.1 of the Loan Agreement. 
  
 “Seller” shall have the meaning set forth in the Preamble to this Agreement. 
  
 “Seller Bankruptcy Event” shall mean any of the following:
(a) The commencement of an involuntary proceeding or the filing of an involuntary petition seeking (i) liquidation, reorganization or other relief in respect of Seller, Seller’s debts or a substantial part of Seller’s assets under any
federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Seller or for a substantial part of
Seller’s assets, and in either case, such proceeding or petition continues undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing is entered; (b) Seller voluntarily commences any proceeding or files any
petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, or consents to the institution of, or fails to contest in a timely and
appropriate manner, any such proceeding or petition; (c) Seller applies for or consents to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Seller or for a substantial part of Seller’s assets;
(d) Seller files an answer admitting the material allegations of a petition filed against it in any of the foregoing proceedings; (e) Seller makes a general assignment for the benefit of creditors; (f) Seller takes any action for the purpose of
effecting any of the foregoing; or (g) Seller becomes unable, admits in writing its inability to or generally fails to pay its debts as they become due. 
  
 “Seller Indemnitee” shall have the meaning set forth in Section 6.3 of this Agreement. 
  
 “Siricomm” shall have the meaning set forth in Section
5.4(f) of this Agreement. 
  
 “Solvent” shall
mean, with respect to Seller, that the value of the assets of Seller (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of Liabilities (including contingent and unliquidated
Liabilities) of Seller as of such date and that, as of such date, Seller is able to pay all Liabilities of Seller as such Liabilities mature 

  

 25 

 
and does not have unreasonably small capital. In computing the amount of contingent or unliquidated Liabilities at any time, such Liabilities will be
computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured Liability. 
  
 “Sullivan” shall mean Mark K. Sullivan, an individual
residing in Missouri. 
  
 “Tax” and
“Taxes” shall mean means all taxes, charges, fees, premiums, levies, penalties or other assessments imposed by any United States federal, state, local or foreign taxing authority, including, but not limited to, income taxes,
franchise or capital stock taxes, sales taxes, use taxes, gross receipts taxes, real or personal property taxes, excise taxes, transfer taxes, payroll, withholding, social security or other taxes (including taxes or premiums for unemployment
insurance or similar governmental impositions), including any interest, penalties or additions attributable thereto. 
  
 “Tax Return” shall mean any return, declaration, report, claim for refund or information return or statement relating to Taxes, including
any schedule or attachment thereto. 
  
 “Term
Note” shall have the meaning set forth in Section 2.2 of the Loan Agreement. 
  
 “Transaction Documents” shall mean this Purchase Agreement and each other document and instrument executed and delivered at the Closing. 
  
 “Transfer Taxes” shall have the meaning set forth in Section 1.5(a) of this Agreement. 

 
 “Varitek Ground Lease” shall have the meaning set forth
in Section 5.1 of this Agreement. 
  
 “Varitek
Office Sublease” shall have the meaning set forth in Section 5.2 of this Agreement. 
  
 (SIGNATURE PAGE FOLLOWS) 
  

 26 

 IN WITNESS WHEREOF, the Parties have caused this Purchase Agreement to be duly executed as of the date
first above written. 
  
 
	 CISLUNAR NETWORKS CORP.

		
	 By:
	 	 /s/ Mark K. Sullivan

	 Name:
	 	 Mark K. Sullivan

	 Title:
	 	 President

	
	 VARITEK INDUSTRIES, INC.

		
	 By:
	 	 /s/ Henry Houston

	 Name:
	 	 Henry Houston

	 Title:
	 	 Vice President of Finance/CFO

   

 27

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