Document:

exv10w1

Exhibit 10.1

SECOND AMENDED AND RESTATED SUPPORT AGREEMENT

     This SECOND AMENDED AND RESTATED SUPPORT AGREEMENT, dated as of July 19, 2011 (this
“Agreement”), is by and among Energy Transfer Equity, L.P., a Delaware limited partnership
(“Parent”), Sigma Acquisition Corporation, a Delaware corporation and direct wholly owned
subsidiary of Parent (“Merger Sub,” and together with Parent, the “Parent
Parties”), George L. Lindemann, Dr. Frayda B. Lindemann, George L. Lindemann, Jr., Adam M.
Lindemann, Sloan Lindemann Barnett, and Eric D. Herschmann (the “Stockholders”).

RECITALS:

     WHEREAS, the Parent Parties and the Stockholders entered into a Support Agreement on June 15,
2011 (the “Original Agreement”);

     WHEREAS, the Parent Parties and the Stockholders amended and restated the Original Agreement
on July 4, 2011 by entering into an Amended and Restated Support Agreement (the “First Amended
Agreement”);

     WHEREAS, the Parent Parties and the Stockholders wish to amend and restate the First Amended
Agreement for the purpose of adding certain provisions thereto;

     WHEREAS, concurrently with the execution of this Agreement, the Parent Parties and Southern
Union Company, a Delaware corporation (the “Company”), are entering into a Second Amended
and Restated Agreement and Plan of Merger, dated as of the date hereof (as amended, supplemented,
restated or otherwise modified from time to time, the “Merger Agreement”), pursuant to
which, among other things, Merger Sub will merge with and into the Company (the “Merger”),
with the Company as the surviving entity, and each share of common stock of the Company
(“Company Common Stock”) will be converted into the right to receive the merger
consideration specified therein; and

     WHEREAS, as of the date hereof, each Stockholder is the record and beneficial owner in the
aggregate of, and has the right to vote and dispose of, the number of shares of Company Common
Stock set forth opposite such Stockholder’s name on Schedule I hereto; and

     WHEREAS, as a material inducement to the Parent Parties to enter into the Merger Agreement,
the Parent Parties have required that the Stockholders agree, and each Stockholder has agreed, to
enter into this agreement and abide by the covenants and obligations with respect to the Covered
Shares (as hereinafter defined) set forth herein.

     NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, and intending to be legally bound hereby, the parties
hereto agree as follows:

ARTICLE 1

GENERAL

 

 

     Section 1.1 Defined Terms. The following capitalized terms, as used in this
Agreement, shall have the meanings set forth below. Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Merger Agreement.

     “Company Entity” means each of the Company and its Subsidiaries.

     “Covered Shares” means, with respect to each Stockholder, such Stockholder’s Existing
Shares, together with any shares of Company Common Stock that such Stockholder acquires, either
beneficially or of record, on or after the date hereof, including any shares of Company Common
Stock received as dividends, as a result of a split, reverse split, combination, merger,
consolidation, reorganization, reclassification, recapitalization or similar transaction or upon
exercise of any option, warrant or other security or instrument exercisable, convertible or
exchangeable into shares of Company Common Stock.

     “Existing Shares” means, with respect to each Stockholder, all shares of Company
Common Stock owned, either beneficially or of record, by such Stockholder on the date of this
Agreement.

     “Permitted Transfer” means a Transfer by a Stockholder (or an Affiliate thereof) to an
Affiliate of such Stockholder, provided that such transferee Affiliate agrees in writing to assume
all of such transferring Stockholder’s obligations hereunder in respect of the Covered Shares
subject to such Transfer and to be bound by, and comply with, the terms of this Agreement, with
respect to the Covered Shares subject to such Transfer, and all other Covered Shares owned
beneficially or of record from time to time by such transferee Affiliate, to the same extent as
such Stockholder is bound hereunder.

     “Transfer” means, directly or indirectly, to sell, transfer, assign or otherwise
dispose of (whether by merger or consolidation (including by conversion into securities or other
consideration as a result of such merger or consolidation), by tendering into any tender or
exchange offer, by testamentary disposition, by operation of law or otherwise), either voluntarily
or involuntarily, or to enter into any contract, option or other arrangement or understanding with
respect to the voting of or sale, transfer, conversion, assignment or other disposition of (whether
by merger or consolidation (including by conversion into securities or other consideration as a
result of such merger or consolidation), by tendering into any tender or exchange offer, by
testamentary disposition, by operation of law or otherwise).

ARTICLE 2

VOTING

     Section 2.1 (a) Agreement to Vote Covered Shares. Each Stockholder hereby irrevocably
and unconditionally agrees that, during the term of this Agreement, at any meeting of the
stockholders of the Company, however called, including any adjournment or postponement thereof, and
in connection with any written consent of the stockholders of the Company (or any class or
subdivision thereof), the Stockholder shall, in each case to the fullest extent that the Covered
Shares are entitled to vote thereon or consent thereto:

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     (i) appear at each such meeting or otherwise cause its Covered Shares to be
counted as present thereat for purposes of calculating a quorum; and

     (ii) vote (or cause to be voted), in person or by proxy, or deliver (or cause
to be delivered) a written consent covering, all of the Covered Shares:

     (1) in favor of the approval or adoption of, or consent to, the
Merger Agreement, any transactions contemplated by the Merger Agreement and any
other action reasonably requested by Parent in furtherance thereof submitted for the
vote or written consent of stockholders of the Company;

     (2) against the approval or adoption of (A) any Acquisition Proposal
or any other action, agreement, transaction or proposal made in opposition to the
approval of the Merger Agreement or inconsistent with the Merger and the other
transactions contemplated by the Merger Agreement, or (B) any action, agreement,
transaction or proposal that is intended, or would reasonably be expected, to result
in a material breach of any covenant, agreement, representation, warranty or any
other obligation of the Company Parties contained in the Merger Agreement or of such
Stockholder contained in this Agreement; and

     (3) against any action, agreement, transaction or proposal that is
intended, would reasonably be expected, or the result of which would reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage,
frustrate the purposes of or adversely affect the Merger or the other transactions
contemplated by the Merger Agreement, including but not limited to the following
actions (other than the Merger and the other transactions contemplated by the Merger
Agreement and actions requested or expressly permitted by Parent): (A) any
extraordinary corporate transaction, such as a merger, consolidation or other
business combination involving a Company Entity; (B) a sale, lease or transfer of a
material amount of assets of a Company Entity, or a reorganization,
recapitalization, dissolution, liquidation or winding up of a Company Entity; (C)
(1) any change in a majority of persons who constitute the Board of Directors of the
Company as of the date hereof, except for changes requested or expressly permitted
by Parent, (2) any change in the present capitalization of the Company or any
amendment to any charter, bylaws, limited liability company agreement, limited
partnership agreement or other company constituent document of any Company Entity,
or (3) any other material change in a Company Entity’s organizational structure or
business.

     (b) Agreement to Make Common Unit Election. Each Stockholder hereby irrevocably and
unconditionally agrees to make a Common Unit Election (as defined in, and for purposes of, Section
2.1(a)(ii) of the Merger Agreement), with respect to all of its Covered Shares, in accordance with
the election procedures set forth in Section 2.2 of the Merger Agreement, as promptly as
practicable following its receipt of an Election Form with respect to its Covered Shares, and to
cause such election to remain valid and effective at all times until and including the Effective
Time. Each Stockholder understands and agrees that by making such Common Unit Election it will,
subject to the terms and conditions of the Merger Agreement, be

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entitled to receive Common Units
(and cash in lieu of fractional Common Units) in consideration for its Covered Shares, and that,
except as set forth in Section 2.1(a)(ii) of the Merger Agreement, it will not be entitled to
receive any cash consideration (other than cash in lieu of fractional Common Units) as
consideration for its Covered Shares.

     Section 2.2 No Inconsistent Agreements. Each Stockholder hereby represents, covenants
and agrees that, except for this Agreement, such Stockholder (a) has not entered into, and shall
not enter into at any time while this Agreement remains in effect, any voting agreement or voting
trust with respect to its Covered Shares, (b) has not granted, and shall not grant at any time
while this Agreement remains in effect, a proxy, consent or power of attorney with respect to its
Covered Shares (except pursuant to Section 2.3 hereof) and (c) has not taken and shall not
take any action that would make any representation or warranty of such Stockholder contained herein
untrue or incorrect in any material respect or have the effect of preventing or disabling such
Stockholder from performing in any material respect any of its obligations under this Agreement.

     Section 2.3 Proxy. In order to secure the obligations set forth herein, each
Stockholder hereby irrevocably appoints Parent, or any nominee thereof, with full power of
substitution and resubstitution, as its true and lawful proxy and attorney-in-fact, in the event
that such Stockholder does not comply with its obligations in Section 2.1, to vote or
execute written consents with respect to such Stockholder’s Covered Shares in accordance with
Section 2.1 hereof and with respect to any proposed postponements or adjournments of any
meeting of the stockholders of the Company at which any of the matters described in
Section 2.1 hereof are to be considered. Each Stockholder hereby affirms that this proxy
is coupled with an interest and shall be irrevocable, except upon termination of this Agreement,
and such Stockholder will take such further action or execute such other instruments as may be
necessary to effectuate the intent of this proxy and hereby revokes any proxy previously granted by
such Stockholder with respect to any of its Covered Shares. Parent may terminate this proxy with
respect to any Stockholder at any time at its sole election by written notice provided to such
Stockholder.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

     Section 3.1 Representations and Warranties of the Stockholders. Each Stockholder
(except to the extent otherwise provided herein) hereby represents and warrants to the Parent
Parties, severally for itself and with respect to its Covered Shares only, and not jointly with the
other Stockholders or with respect to the Covered Shares of any other Stockholder, as follows:

     (a) Organization; Authorization; Validity of Agreement; Necessary Action.
Such Stockholder has the requisite power and authority and/or capacity to execute and deliver this
Agreement and to carry out its obligations hereunder. The execution and delivery by such
Stockholder of this Agreement and the performance by it of the obligations hereunder have been duly
and validly authorized by such Stockholder and no other actions or proceedings are required on the
part of such Stockholder to authorize the execution and delivery of this Agreement or the
performance by such Stockholder of its obligations hereunder. This Agreement has been duly
executed and delivered by such Stockholder and, assuming the due authorization, execution and

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delivery of this Agreement by the Parent Parties, constitutes a legal, valid and binding agreement
of such Stockholder, enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equitable principles.

     (b) Ownership. Such Stockholder is the record and beneficial owner of, and
has good title to, its Existing Shares, free and clear of any Liens, except as may be provided for
in this Agreement. All of such Stockholder’s Covered Shares from the date hereof through and on
the Closing Date will be beneficially or legally owned by such Stockholder, except in the case of a
Permitted Transfer of any Covered Shares (in which case this representation shall, with respect to
such Covered Shares, be made by the transferee of such Covered Shares). Except as provided for in
this Agreement, such Stockholder has and will have at all times through the Closing Date sole
voting power (including the right to control such vote as contemplated herein), sole power of
disposition, sole power to issue instructions with respect to the matters set forth in
Article 2 hereof, and sole power to agree to all of the matters set forth in this
Agreement, in each case with respect to all of such Stockholder’s Existing Shares and with respect
to all of such Stockholder’s Covered Shares at any time through the Closing Date, except in the
case of a Permitted Transfer (in which case this representation shall, with respect to such Covered
Shares, be made by the transferee of such Covered Shares). Such Stockholder does not, directly or
indirectly, legally or beneficially own or have any option, warrant or other right to acquire any
securities of a Company Entity that are or may by their terms become entitled to vote or any
securities that are convertible or exchangeable into or exercisable for any securities of a Company
Entity that are or may by their terms become entitled to vote, nor is such Stockholder subject to
any contract, agreement, arrangement, understanding or relationship, other than this Agreement,
that obligates it to vote, acquire or dispose of any securities of a Company Entity.

     (c) No Violation. Neither the execution and delivery of this Agreement by
such Stockholder nor its performance of its obligations under this Agreement will (i) result in a
violation or breach of, or conflict with any provisions of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in the
termination or cancellation of, or give rise to a right of purchase under, or result in the
creation of any Lien (other than under this Agreement) upon any of the properties, rights or assets
(including but not limited to its Existing Shares) owned by such Stockholder under, any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license,
contract, lease, agreement or other instrument or obligation of any kind to which such Stockholder
is a party or by which it or any of its respective properties, rights or assets may be bound,
(ii) violate any Law applicable to such Stockholder or any of its properties, rights or assets, or
(iii) result in a violation or breach of or conflict with its organizational and governing
documents, except in the case of clause (i) as would not reasonably be expected to prevent or
materially delay the ability of such Stockholder to perform its obligations hereunder.

     (d) Consents and Approvals. No consent, approval, order or authorization
of, or registration, declaration or filing with, any Governmental Entity is necessary to be
obtained or made by such Stockholder in connection with its execution, delivery and performance of
this Agreement, except for any reports under Sections 13(d) and 16 of the Exchange Act as may be
required in connection with this Agreement and the transactions contemplated hereby.

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     (e) Reliance by Parent. Such Stockholder understands and acknowledges that
the Parent Parties are entering into the Merger Agreement in reliance upon such Stockholder’s
execution and delivery of this Agreement and the representations, warranties, covenants and
obligations of such Stockholder contained herein.

     (f) Adequate Information. Such Stockholder acknowledges that it is a
sophisticated party with respect to its Covered Shares and has adequate information concerning the
business and financial condition of the Company to make an informed decision regarding the
transactions contemplated by this Agreement and has, independently and without reliance upon any of
the Parent Parties and based on such information as such Stockholder has deemed appropriate, made
its own analysis and decision to enter into this Agreement. Such Stockholder acknowledges that no
Parent Party has made or is making any representation or warranty, whether express or implied, of
any kind or character except as expressly set forth in this Agreement.

     Section 3.2 Representations and Warranties of Parent. Parent hereby represents and
warrants to each Stockholder that the execution and delivery of this Agreement by Parent and the
consummation of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of the board of directors of the general partner of Parent. The Parent Parties
acknowledge that no Stockholder has made and no Stockholder is making any representation or
warranty of any kind except as expressly set forth in this Agreement.

ARTICLE 4

OTHER COVENANTS

     Section 4.1 Prohibition on Transfers, Other Actions.

     (a) Each Stockholder hereby agrees, except for a Permitted Transfer, not to (i)
Transfer any of the Covered Shares, beneficial ownership thereof or any other interest therein,
(ii) enter into any agreement, arrangement or understanding, or take any other action, that
violates or conflicts with, or would reasonably be expected to violate or conflict with, or would
reasonably be expected to result in or give rise to a violation of or conflict with, such
Stockholder’s representations, warranties, covenants and obligations under this Agreement, or
(iii) take any action that would restrict or otherwise affect such Stockholder’s legal power,
authority and right to comply with and perform its covenants and obligations under this Agreement.
Any Transfer in violation of this provision shall be null and void.

     (b) Each Stockholder agrees that if it attempts to Transfer (other than a Permitted
Transfer), vote or provide any other Person with the authority to vote any of the Covered Shares
other than in compliance with this Agreement, such Stockholder shall unconditionally and
irrevocably (during the term of this Agreement) instruct the Company to not, (i) permit any such
Transfer on its books and records, (ii) issue a book-entry interest or a new certificate
representing any of the Covered Shares, or (iii) record such vote unless and until such Stockholder
has complied in all respects with the terms of this Agreement.

     (c) Each Stockholder agrees that it shall not, and shall cause each of its
controlled Affiliates to not, become a member of a “group” (as that term is used in Section 13(d)
of the

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Exchange Act) that such Stockholder or such Affiliate is not currently a part of and that
has not been disclosed in a filing with the SEC prior to the date hereof (other than as a result of
entering into this Agreement) for the purpose of opposing or competing with the transactions
contemplated by the Merger Agreement.

     (d) Each Stockholder agrees not to knowingly take any action that would make any of
its representations or warranties contained herein untrue or incorrect in any material respect or
would reasonably be expected to have the effect of preventing, impeding or interfering with or
adversely affecting in any material respect its performance of its obligations under or
contemplated by this Agreement.

     Section 4.2 Further Assurances. Each of the parties hereto agrees that it will use
its reasonable best efforts to do all things reasonably necessary to effectuate this Agreement.

     Section 4.3 Waiver of Appraisal Rights and Claims. Each Stockholder hereby waives any
and all rights of appraisal or rights to dissent from the consummation of the Merger and any
transactions contemplated by the Merger Agreement.

ARTICLE 5

NO SOLICITATION

     Section 5.1 No Solicitation. Prior to the termination of this Agreement, each
Stockholder shall not, and shall cause its officers, employees, legal counsel, financial advisors,
agents and other representatives (collectively, “Representatives”) not to, directly or
indirectly (a) solicit or initiate, or knowingly encourage or facilitate, any Acquisition Proposal
or any inquiries regarding the submission of any Acquisition Proposal, (b) participate in any
discussions or negotiations regarding, or furnish any third party any confidential information
regarding the Company or its Subsidiaries in response to or in connection with any Acquisition
Proposal, or (c) enter into any agreement with respect to any Acquisition Proposal or approve or
resolve to approve any Acquisition Proposal; provided, however, notwithstanding anything in this
Agreement to the contrary, prior to obtaining the Company Stockholder Approval, the restrictions
set forth in this Section 5.1 shall not apply to the Stockholders and their Representatives,
including in their capacity as beneficial owners of the Covered Shares, to the extent that the
Company and its Subsidiaries, and its and their Representatives, are permitted by the terms of
Section 5.4(a) of the Merger Agreement to take such actions. Each Stockholder shall, and shall
cause its Representatives to, immediately cease and cause to be terminated all existing discussions
or negotiations with any third party conducted prior to the date of this Agreement with respect to
any Acquisition Proposal.

     Notwithstanding any provision in this Agreement to the contrary, the Stockholders have entered
into this Agreement solely in their capacity as the beneficial owners of the Covered Shares, and
nothing herein shall limit or effect any actions taken by any Stockholder or Representative of a
Stockholder in such Stockholder’s or such Representative’s capacity as a director or officer of the
Company. In addition, for purposes of this Agreement, the Company shall be deemed not to be an
Affiliate of any of the Stockholders, and any officer, director,

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employee, agent or advisor of the
Company (in each case, in their capacities as such), shall be deemed not to be a Representative of
a Stockholder.

ARTICLE 6

MISCELLANEOUS

     Section 6.1 Termination. This Agreement shall remain in effect until the earliest to
occur of (a) the Effective Time, (b) a Change of Recommendation in connection with an Intervening
Event pursuant to Section 5.4 of the Merger Agreement, or (c) the valid termination of the Merger
Agreement in accordance with its terms (including after any extension thereof), in which case this
Agreement shall terminate and be of no further force and effect with respect to all parties hereto.
The Parent may terminate this Agreement with respect to all or any portion of any Stockholder’s
Covered Shares by delivering a written notice to such Stockholder stating the portion of such
Stockholder’s Covered Shares with respect to which this Agreement is terminated (in which case such
Stockholder’s obligations hereunder shall terminate only with respect to the portion of its Covered
Shares so identified). Nothing in this Section 6.1 and no termination of this Agreement
shall relieve or otherwise limit any party of liability for any breach of this Agreement occurring
prior to such termination.

     Section 6.2 No Ownership Interest. Nothing contained in this Agreement shall be
deemed to vest in any Parent Party any direct or indirect ownership or incidence of ownership of or
with respect to any Covered Shares. All rights, ownership and economic benefit relating to the
Covered Shares of any Stockholder shall remain vested in and belong to such Stockholder, and Parent
shall have no authority to direct such Stockholder in the voting or disposition of any of its
Covered Shares, except as otherwise provided herein.

     Section 6.3 Publicity. Each Stockholder hereby permits Parent and the Company to
include and disclose in the Proxy Statement, and in such other schedules, certificates,
applications, agreements or documents as such entities reasonably determine to be necessary or
appropriate in connection with the consummation of the Merger and the transactions contemplated by
the Merger Agreement such Stockholder’s identity and ownership of the Covered Shares and the nature
of such Stockholder’s commitments, arrangements and understandings pursuant to this Agreement.
Parent and the Company hereby permit each Stockholder to disclose this Agreement and the
transactions contemplated by the Merger Agreement in any reports required to be filed by such
Stockholder or any of its Affiliates under Sections 13(d) and 16 of the Exchange Act.

     Section 6.4 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally or by facsimile or email (upon
telephonic confirmation of receipt) or on the first Business Day following the date of dispatch if
delivered by a recognized next day courier service. All notices hereunder shall be delivered as
set forth below or pursuant to such other instructions as may be designated in writing by the party
to receive such notice:

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     If to Parent or Merger Sub, to:

Energy Transfer Equity, L.P.

3738 Oak Lawn Avenue

Dallas, TX 75219

Attention: John McReynolds

Facsimile: (214) 981-0706

Email: tom.mason@energytransfer.com

     with a copy (which shall not constitute notice) to:

Latham & Watkins LLP

717 Texas Avenue, 16th Floor

Houston, Texas 77002

Attention: William N. Finnegan, Esq.

                   Sean T. Wheeler, Esq.

Fax: 713-546-5401

Email: bill.finnegan@lw.com

            sean.wheeler@lw.com

     If to any Stockholder, to the address set forth below such Stockholder’s name on Schedule I
hereto.

     Section 6.5 Interpretation. The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section references are to this Agreement unless
otherwise specified. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of
such terms. The headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. This Agreement is the product
of negotiation by the parties having the assistance of counsel and other advisers. It is the
intention of the parties that this Agreement not be construed more strictly with regard to one
party than with regard to the others.

     Section 6.6 Counterparts. This Agreement may be executed by facsimile and in
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same counterpart.

     Section 6.7 Entire Agreement. This Agreement and, solely to the extent of the defined
terms referenced herein, the Merger Agreement, together with the schedule annexed hereto, embody
the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or representations by
or among the parties, written and oral, that may have related to the subject matter hereof in any
way.

     Section 6.8 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

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     (a) THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY
AND ALL DISPUTES BETWEEN THE PARTIES UNDER OR RELATING TO THIS AGREEMENT OR THE FACTS AND
CIRCUMSTANCES LEADING TO ITS EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (WITHOUT REFERENCE TO SUCH
STATE’S PRINCIPLES OF CONFLICTS OF LAW). THE DELAWARE COURT OF CHANCERY (AND IF THE DELAWARE COURT
OF CHANCERY SHALL BE UNAVAILABLE, ANY DELAWARE STATE COURT AND THE FEDERAL COURT OF THE UNITED
STATES OF AMERICA SITTING IN THE STATE OF DELAWARE) WILL HAVE EXCLUSIVE JURISDICTION OVER ANY AND
ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, BASED UPON, ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY OR THE
FACTS AND CIRCUMSTANCES LEADING TO ITS EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE. EACH OF
THE PARTIES IRREVOCABLY CONSENTS TO AND AGREES TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH
COURTS IN ANY SUCH DISPUTE, IRREVOCABLY CONSENTS TO THE SERVICE OF THE SUMMONS AND COMPLAINT AND
ANY OTHER PROCESS IN ANY OTHER ACTION OR PROCEEDING RELATING TO THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT, ON BEHALF OF ITSELF OR ITS PROPERTY, BY DELIVERY IN ANY METHOD CONTEMPLATED BY
SECTION 6.4 HEREOF OR IN ANY OTHER MANNER AUTHORIZED BY LAW, AND HEREBY WAIVES, AND AGREES
NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM
THAT (i) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (ii) SUCH PARTY
AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR (iii) ANY
LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM.

     (b) THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT
WHICH ANY PARTY MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY PROCEEDING, LITIGATION OR COUNTERCLAIM
BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. IF THE SUBJECT
MATTER OF ANY LAWSUIT IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED, NO PARTY TO THIS
AGREEMENT SHALL PRESENT AS A NON-COMPULSORY COUNTERCLAIM IN ANY SUCH LAWSUIT ANY CLAIM BASED ON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. FURTHERMORE, NO PARTY TO THIS
AGREEMENT SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL CANNOT BE WAIVED.

     Section 6.9 Amendment; Waiver. The obligations of any Stockholder hereunder may not
be modified or amended except by an instrument in writing signed by Parent and by each Stockholder
with respect to which such modification or amendment will be effective. Each party may waive any
right of such party hereunder by an instrument in writing signed by such party

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and delivered to the
party benefiting from such waiver. No amendment or waiver shall be permitted or effective without
the prior written consent of the Company.

     Section 6.10 Remedies. The parties hereto agree that money damages would not be a
sufficient remedy for any breach of this Agreement and that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is hereby agreed that, prior to the valid
termination of this Agreement pursuant to Section 6.1 hereof, the parties hereto shall be
entitled to specific performance and injunctive or other equitable relief as a remedy for any such
breach, to prevent breaches of this Agreement, and to specifically enforce compliance with this
Agreement. In connection with any request for specific performance or equitable relief, each of
the parties hereto hereby waives any requirement for the security or posting of any bond in
connection with such remedy. Such remedy shall not be deemed to be the exclusive remedy for breach
of this Agreement but shall be in addition to all other remedies available at law or equity to such
party. The parties further agree that, by seeking the remedies provided for in this Section
6.10, no party hereto shall in any respect waive its right to seek any other form of relief
that may be available to it under this Agreement, including monetary damages in the event that this
Agreement has been terminated or in the event that the remedies provided for in this Section
6.10 are not available or otherwise are not granted.

     Section 6.11 Severability. To the fullest extent permitted by law, any term or
provision of this Agreement, or the application thereof, that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is illegal, void, invalid or unenforceable,
the parties hereto agree that the court making such determination shall have the power to limit the
term or provision, to delete specific words or phrases, or to replace any illegal, void, invalid or
unenforceable term or provision with a term or provision that is legal, valid and enforceable and
that comes closest to expressing the intention of the illegal, void, invalid or unenforceable term
or provision, and this Agreement shall be enforceable as so modified. To the fullest extent
permitted by law, in the event such court does not exercise the power granted to it in the prior
sentence, the parties hereto shall replace such invalid or unenforceable term or provision with a
valid and enforceable term or provision that will achieve, to the extent possible, the original
economic, business and other purposes of such invalid or unenforceable term as closely as possible
in an acceptable manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the fullest extent possible.

     Section 6.12 Expenses. Except as otherwise expressly provided herein or in the Merger
Agreement, all costs and expenses incurred in connection with this Agreement and the actions
contemplated hereby shall be paid by the party incurring such expenses, whether or not the Merger
is consummated.

     Section 6.13 Successors and Assigns; Third Party Beneficiaries.

     (a) Except in connection with a Permitted Transfer, neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto

 - 11 - 

 

(whether by operation of Law or otherwise) without the prior written consent of the other parties;
provided, however, that Parent and Merger Sub may transfer or assign their rights
and obligations under this Agreement, in whole or in part or from time to time in part, to one or
more of their Affiliates at any time. Any assignment in violation of the foregoing shall be null
and void. Subject to the preceding two sentences, this Agreement will be binding upon, inure to
the benefit of and be enforceable by the parties and their respective successors and assigns.

     (b) Other than the Company with respect to Section 6.3 hereof, this
Agreement is not intended to and shall not confer upon any Person (other than the parties hereto)
any rights or remedies hereunder.

[Signature pages follow.]

 - 12 - 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed
as of the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	PARENT:

ENERGY TRANSFER EQUITY, L.P.

 	 
	 	By:  	LE GP, LLC, its general partner
 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	John McReynolds 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 
	 	MERGER SUB:

SIGMA ACQUISITION CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	John McReynolds 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 

[Signature Page of Parent and Merger Sub to Second Amended and Restated Support Agreement]

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed
as of the date first written above by their respective officers thereunto duly authorized.

STOCKHOLDERS:

	 	 	 

	/s/ George L. Lindemann

	 	/s/ Eric D. Herschmann
	 

	 	 
	GEORGE L. LINDEMANN

	 	ERIC D. HERSCHMANN
	 
	 	 
	/s/ Dr. Frayda B. Lindemann

	 	/s/ Adam M. Lindemann
	 

	 	 
	DR. FRAYDA B. LINDEMANN

	 	ADAM M. LINDEMANN
	 
	 	 
	/s/ George L. Lindemann, Jr.

	 	/s/ Sloan Lindemann Barnett
	 

	 	 
	GEORGE L. LINDEMANN, JR.

	 	SLOAN LINDEMANN BARNETT

[Signature Page of Stockholders to Second Amended and Restated Support Agreement]

 

 

Schedule I

	 	 	 	 	 	 	 
	 	 	 	 	
	 	 	 	 	
	 	 	 	 	Shares of Company Common Stock Held
	Stockholder	 	Address	 	Beneficially or of-Record*
	George L. Lindemann

	 	1565 North Ocean Way
	 	Shares: 4,485,628**

	 

	 	Palm Beach, Florida 33480
	 	Options: 1,888,162

	 
	 	 	 	 	 	 
	Eric D. Herschmann

	 	3333 Allen Parkway #2207
	 	Shares: 555,091***

	 

	 	Houston, Texas 77019
	 	Options: 1,185,768

	 
	 	 	 	 	 	 
	Dr. Frayda B.
Lindemann

	 	1565 North Ocean Way

Palm Beach Florida, Florida

33480
	 	3,289,220 		 
	 
	 	 	 	 	 	 
	George L.
Lindemann, Jr.

	 	1736 West 28th Street

Miami, FL 33141
	 	3,365,500 		 
	 
	 	 	 	 	 	 
	Adam M. Lindemann

	 	77 East 77th Street

New York, NY 10075
	 	2,000,000
(approximate; +/-
not more than
100,000 shares)

	 
	 	 	 	 	 	 
	Sloan Lindemann 

Barnett

	 	2920 Broadway Street

San Francisco, CA 94115
	 	3,369,667 		 

 

			
	*-	 	As of June 14, 2011, Southern Union Company had 124,721,110 shares of common stock issued and
outstanding. As of June 14, 2011, the shares represented on the chart above represent approximately
13.43% of the issued and outstanding shares of common stock of Southern Union Company. The options
and non-expired/lapsed restricted shares awarded to Messrs. Lindemann and Herschmann have not been
included in the foregoing calculation as they are not able to be voted at this time.
	 
	**-	 	Included in this number are 144,888 shares held in the Southern Union Company Supplemental
Deferred Compensation Plan and 29,870 shares in the Southern Union 401(k) Savings Plan as of
December 31, 2010. Included in this number are 69,513 restricted shares awarded to Mr. Lindemann
under the Southern Union Company Third Amended and Restated 2003 Stock and Incentive Plan for which
restrictions have not otherwise lapsed/expired. The options and unlapsed/unexpired restricted
shares are not able to be voted at this time.
	 
	***-	 	Included in this number are 251,308 restricted shares awarded to Mr. Herschmann under the
Southern Union Company Third Amended and Restated 2003 Stock and Incentive Plan for which
restrictions have not otherwise lapsed/expired. The options and unlapsed/unexpired restricted
shares are not able to be voted at this time.

[Schedule I to Support Agreement]exv4w8

Exhibit 4.8

22 October 2010

Mr. George Orrison, IV

84 Rock Hall Farm Lane

Berryville, VA 22611

Dear Mr. Orrison,

It is my pleasure to offer you the position of Director of Sales at Metal Storm, reporting to Mr.
Peter Faulkner. Your primary duty station will be Metal Storm Inc.’s Arlington, Virginia
headquarters. In this position, you will responsible for sales of Metal Storm’s products and
services to U.S. Government services and agencies and State and Local organizations.

This letter and accompanying enclosures will summarize important details of matters pertaining to
your employment. Also enclosed is information about current benefits, which are provided to the
workforce here at Metal Storm. Our benefits, payroll, and other human resource management services
are provided through TriNet Employer Group, Inc., a professional employer organization. As a
result of Metal Storm’s arrangement with TriNet, TriNet will be considered your employer of record
for these purposes and your managers here at Metal Storm will be responsible for directing your
work, reviewing your performance, setting your schedule, and otherwise directing your work at Metal
Storm.

Start Date: Your start date is 1 November 2010. Changes to this date must be approved by
the undersigned in writing.

Compensation: Your base salary is $125,000 annualized. You are also entitled to sales
commissions on orders that are a direct result from your activities that will be paid at four
percent of the first $100,000 of a funded order and one percent on the amount greater than
$100,000. Commissions will be paid monthly in arrears from the date of contract funding.

Performance Expectations: In addition to Metal Storm’s standard annual performance review,
your performance will be evaluated based on your ability to secure $4.5 Million in sales within
your first twelve months upon hiring. Progress toward this goal will be reviewed regularly.

Territory: You will be responsible for generating sales within North America, Canada and
Israel. Sales outside of these regions are prohibited unless authorized in writing.

Authority to Bind the Company: Your appointment as Director of Sales does not authorize
you to legally bind the company in any manner or under any circumstances.

Expenses: The Company will reimburse you for reasonable and necessary expenses incurred by
you in furtherance of Metal Storm’s business. All expenses claimed are subject to the review and
approval of your supervisor. Records must be maintained and submitted for any expenses to be
reimbursed — including destination for auto mileage totals and receipts for all other items in
accordance with company policy. All non-local travel requires prior authorization per company
policy. Travel expenses are reimbursed in accordance with the General Services Administration’s
(GSA) Joint Travel Regulations (JTR).

Company Property: During and after your employment, you will not use any Company Property
for any purpose other than for the benefit of the Company. Except for business uses related to the
performance of your job, you will not remove from the Company premises any Company Property without
written consent of your supervisor. In the event of your termination of employment, or at any time
at the request of the Company, you will return all Company Property. You will also return all
copies of Company Property, and any Work Product derived from Company Property.

“Company Property” means Trade Secrets of Metal Storm, Work Product, customer lists, prospect
lists, forms, manuals, records, correspondence, contracts, notes, memoranda, notebooks and other
documents of the Company, software media, equipment, and other intangible and tangible property
owned by the Company.

 

 

Name & Likeness Rights, etc.: You hereby authorize the Company to use, reuse, and to grant
others the right to use and reuse your name, photograph, likeness (including caricature), voice,
and biographical information, and any reproduction or simulation thereof, in any media now known or
hereafter developed (including but not limited to film, video, and digital, or other electronic
media), both during and after my employment, for whatever purposes the Company deems necessary.

Term of Employment: As Metal Storm is the company for which you will perform service, we
will retain the right to control and direct your work, its results, and the manner and means by
which your work is accomplished. Your employment with the Company is at will, and therefore, may be
terminated by you or the Company at any time and for any reason, with or without cause, and with or
without notice. This “at will” employment relationship may not be modified by any oral or implied
agreement.

Additional Benefits: As stated above, Metal Storm has contracted with TriNet to provide
payroll, benefits and HR administration services on behalf of Metal Storm. Information about these
benefits is included with this letter and additional information will be available on-line over the
web on the terms and conditions included in the End User License Agreement (EULA) each new employee
must accept in order to access TriNet’s on-line self-service portal: HR Passport.

Acceptance of Employment Offer: This employment offer is valid for five (5) business days
from the date of this letter. Written acceptance is to be indicated to the undersigned. Please
bring the original signed acceptance letter to the office on your reporting date along with the
necessary documents required to verify your identity and eligibility to work in the United States.
A list of acceptable documents is described on the enclosed I-9 form.

We are all excited about the opportunity to work with you. On behalf of all our team members, let
me extend a sincere Welcome Aboard!

Sincerely,

METAL STORM INCORPORATED

a Delaware corporation

	 	 	 	 	 

	By: 

Name:

	 	/s/ J Kirby
 

James A Kirby
	 	 
	Title:

	 	Director — Corporate Sales	 	 

I accept the above terms of employment as stated:

/s/ G Orrison

	 	 	 	 	 

	 

	 	 

	 	 
	Addressee’s Signature

	 	Date	 	 

Approved by Metal Storm (Following receipt of signed acceptance by employee)

	 	 	 	 	 

	 

	 	 

	 	 
	Name/Title

	 	Date	 	 

 

 

ARBITRATION AGREEMENT

     The following confirms an Agreement between Mr. George Orrison, IV (“Employee”), and Metal
Storm Inc. (“Company”), which is a material part of the consideration for Employee’s employment by
Company.

     WHEREAS, Company desires to employ Employee and Employee desires to be employed by Company;

     NOW, THEREFORE, in consideration of the employment of Employee by Company, and other good and
valuable consideration,

IT IS HEREBY AGREED:

     The Company and Employee mutually agree that any controversy or claim arising out of or
relating to Employee’s employment relationship with the Company, which could have been brought in a
court of law (“Covered Disputes”), shall be settled by arbitration administered by the American
Arbitration Association (“AAA”) under its National Rules for the Resolution of Employment Disputes,
and judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof.

     Covered Disputes include all claims, rights, demands, losses, and causes of action rising: in
contract, whether express or implied; or in tort; or under any common law theories; or under any
covenants of good faith and fair dealing; or under any Company policy, wage or compensation
obligation or benefit plan; or under any federal, state, or municipal statute, executive order,
regulation or ordinance pertaining to labor or employment law, including, but not limited to, Title
VII of the Civil Rights Act of 1964, as amended in 1991; the Americans with Disabilities Act; the
Family and Medical Leave Act; the Age Discrimination in Employment Act; the Equal Pay Act; the Fair
Labor Standards Act; and the applicable state and local labor and employment law requirements.

     This Agreement shall not prohibit actions solely seeking injunctive relief necessary to
protect either party’s rights, claims for workers’ compensation benefits, unemployment insurance
benefits, claims by Employee for benefits under a Company plan which plan provides its own
arbitration procedure or actions to compel arbitration or to enforce or vacate an arbitration award
under this Agreement.

     With the exception of actions set forth above, arbitration shall be the exclusive means
through which the Parties may seek relief in connection with any Covered Disputes. The Parties
expressly waive their right to a trial by judge or by jury of any Covered Dispute, as well as their
right to appeal the decision rendered by the arbitrator except on the grounds that the decision was
procured by corruption, fraud or other undue influence or on the grounds specifically set forth in
a statute applicable to vacating an arbitration award under this Agreement.

     Employee agrees that if Employee wishes to assert a claim against the Company, the Employee
must present to the Company a written request for arbitration within one year of the date on which
the Employee knows or should have known of the Covered Dispute against the Company. Likewise, the
Company must present a written

 

 

request for arbitration to the Employee against whom it wishes to assert a claim within the
same time frame. Failure by either the Employee or the Company to present such a request within one
year shall constitute a waiver of the right to recover relief in any forum in connection with the
Covered Dispute.

     Unless otherwise agreed to by Employee and Company, the arbitration shall take place in AAA’s
office closest to the Company’s headquarters. The Parties shall select a single arbitrator in
accordance with applicable AAA rules. Employee is required to pay AAA fees and costs only in the
amount of the court costs which the Employee would be required to pay if the dispute were decided
in a court of law. Company shall pay all AAA fees and costs in excess of the amount Employee is
required to pay.

     The Parties are entitled to discovery sufficient to adequately arbitrate their Covered
Disputes, including, but not limited to, access to essential documents and witnesses, as determined
by the arbitrator. Unless otherwise agreed by Employee and Company, the arbitrator shall apply the
law of the State in which the arbitration takes place. The arbitrator shall have the discretion to
award monetary and other damages, or to award no damages, and to fashion any other relief that
would otherwise be available in court. The arbitrator will issue a written arbitration decision
that reveals the essential findings and conclusions on which the award is based.

     This Agreement is the complete agreement of the parties on the subject of Arbitration of
disputes and claims. This Agreement supersedes any prior or contemporaneous oral, written or
implied understanding on the subject, shall survive the termination of Employee’s employment and
can only be revoked or modified by a writing signed by the parties which specifically states an
intent to revoke or modify this Agreement. If any provision of this Agreement is adjudged to be
void or otherwise unenforceable in whole or in part, such adjudication shall not affect the
validity of the remainder of this Agreement.

     Employee and Company mutually and voluntarily accept the above terms of this Arbitration
Agreement.

Employee:

/s/ G Orrison

	 	 	 

	 

	 	 

On Behalf of Metal Storm, Inc.:

Name:

Title:

			
	 	 	 
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Metal Storm Inc

PROPRIETARY INFORMATION and INVENTIONS AGREEMENT

with Confidentiality, Non-Solicitation and Non-Compete Covenants

The following confirms an Agreement between Mr. George Orrison, IV_(Employee), and Metal
Storm Inc, a Delaware corporation (the “Company”), which is a material part of the consideration
for my employment by Metal Storm Inc:

	1.	 	I have not entered into, and I agree I will not enter into, any agreement either oral or
written in conflict with this Agreement, my employment with the Company, or my relationship
with TriNet Employer Group, Inc., which is my employer of record. I will not violate any
agreement with or rights of any third party or, except as expressly authorized by the Company
in writing hereafter, use or disclose my own or any third party’s confidential information or
intellectual property when acting within the scope of my employment or otherwise on behalf of
the Company. Further, I have not retained anything containing any confidential information of
a prior employer or other third party, whether or not created by me.

	2.	 	I agree that all Inventions (as defined in paragraph 6), trade secrets and all other
confidential business, technical, and financial information (including, but not limited to,
those items listed on Appendix A) I develop, learn, or obtain during the term of my employment
with the Company, that relate to the Company, or the business or demonstrably anticipated
business of the Company, or that are received by or for the Company in confidence, constitute
“Proprietary Information.” I will hold in confidence and not disclose or, except within the
scope of my employment with the Company, use any Proprietary Information. However, I shall not
be obligated under this paragraph, with respect to information which I can document is, or
becomes, readily publicly available without restriction through no fault of mine. Upon
termination of my employment with the Company, I will promptly return to the Company all items
containing or embodying Proprietary Information (including all copies), except that I may keep
my personal copies of (i) my compensation records, (ii) my personnel records, if any, (iii)
materials distributed to shareholders or the public generally, and (iv) this Agreement.

	3.	 	Until one year after the term of my employment with the Company, I will not encourage or
solicit any employee or consultant of the Company to leave the Company for any reason (except
for the bona fide termination of Company personnel within the scope of my employment with the
Company.)

	4.	 	I agree that during the term of my employment with the Company (whether or not during
business hours), I will not engage in any activity for a “business in competition with the
Company” or demonstrably anticipated business of the Company, and I will not assist any other
person or organization in competing or in preparing to compete with a “business in competition
with the Company” or demonstrably anticipated business of the Company. For purposes of this
paragraph, a “business in competition with the Company” means any person or company in the
business of electronic ballistics or stacked round technology.

	5.	 	To the extent permitted by the laws of the state or country where I reside or work, I agree
that until one year after the term of my employment with the Company, I will not engage in any
activity for a “business in competition with the Company” or demonstrably anticipated business
of the Company, and I will not assist any other person or organization in competing or in
preparing to compete with a “business in competition with the Company” or demonstrably
anticipated business of the Company. For purposes of this paragraph, a “business in
competition with the Company” means a business described in paragraph 4 above doing business
in any manner within the geographic areas in which the Company does business.

			
	 	 	 
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	6.	 	The Company shall own all right, title, and interest (including patent rights, copyrights,
trade secret rights, mask work rights and other rights throughout the world) relating to any
and all inventions (whether or not patentable), works of authorship, mask works, designs,
know-how, ideas and information made or conceived or reduced to practice, in whole or in part,
by me during the term of my employment with or service to the Company to the fullest extent
allowed by applicable law (collectively, “Inventions”). I will promptly disclose all
Inventions to the Company and will identify any Invention I believe is excluded from the scope
of this Agreement, so that the Company can make an independent assessment about said
exclusion. I hereby make all assignments necessary to accomplish the purposes of this
paragraph 6. I shall further assist the Company, at the Company’s expense, to further
evidence, record, and perfect such assignments, and to perfect, obtain, maintain, enforce, and
defend any rights specified to be so owed or assigned. I hereby irrevocably designate and
appoint the Company and its agents and attorneys-in-fact to act for and in my behalf, to
execute and file any document, and to do all other lawfully permitted acts to further the
purpose of the foregoing with the same legal force and effect as if executed by me. If I wish
to clarify that something created by me prior to my relationship with the Company, that
relates to the Company’s actual or demonstrably anticipated business, is not within the scope
of this Agreement, I have listed it on Appendix B. If I use or (except pursuant to this
paragraph) disclose my own or any third party’s confidential information or intellectual
property when acting within the scope of my employment or otherwise on behalf of the Company,
the Company will have, and I hereby grant the Company a perpetual, irrevocable, worldwide
royalty-free, non-exclusive, sublicensable right and license to use and exercise all such
confidential information and intellectual property rights. Due to the specific requirements of
California law, a copy of California Labor Code §2870 is attached hereto as Appendix C and the
provisions thereof are incorporated herein only if California law is applicable to this
Agreement.

	7.	 	To the extent allowed by law, paragraph 6 includes all rights of paternity, integrity,
disclosure and withdrawal, and any other rights that may be known as or referred to as “moral
rights,” “artist’s rights,” “droit moral,” or the like (collectively, “Moral Rights”). To the
extent I retain any such Moral Rights under applicable law, I hereby waive such Moral Rights
and consent to any action with respect to such Moral Rights by or authorized by the Company. I
will confirm any such waivers and consents from time to time as requested by the Company.

	8.	 	I agree that this Agreement is not an employment contract for any particular term and does
not purport to set forth all the terms and conditions of my employment with the Company and
TriNet as my employer of record. However, the terms of this Agreement govern over any
inconsistent terms and can only be changed by a subsequent written agreement duly signed on
behalf of the Company.

	9.	 	I agree that my obligations under paragraphs 2, 3, 5, 6 and 7 of this Agreement shall
continue in effect after termination of my employment with the Company, regardless of the
reason or reasons for termination, and whether such termination is voluntary or involuntary on
my part, and that the Company is entitled to communicate my obligations under this Agreement
to any future employer or potential employer of mine. My obligations under paragraphs 2, 6 and
7 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure
to the benefit of the Company, its subsidiaries, successors, and assigns.

	10.	 	Any dispute over the meaning, effect, or validity of this Agreement shall be resolved in
accordance with the laws of the State of Virginia without regard to the conflict of laws
provisions thereof. I further agree that if one or more provisions of this Agreement are held
to be illegal or unenforceable under applicable law, such illegal or unenforceable portion(s)
shall be limited or excluded from this Agreement to the minimum extent required so that this
Agreement shall otherwise remain in full force and effect and

			
	 	 	 
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	 	 	enforceable in accordance with its terms. I also understand that any breach of this Agreement
will cause irreparable harm to the Company for which damages would not be an adequate remedy
and, therefore, the Company will be entitled to injunctive relief with respect thereto in
addition to any other remedies.

I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES
UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO
SIGN THIS AGREEMENT OTHER THAN THOSE CONTAINED WITHIN THIS DOCUMENT. I SIGN THIS AGREEMENT
VOLUNTARY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT ONE COUNTERPART WILL BE RETAINED BY
Metal Storm Inc AND/OR TRINET AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.

/s/ G Orrison

	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Employee Signature	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 
	Accepted & Agreed To By:	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 

	Metal Storm Inc	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	 

	 	 	 	 

Date
	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

			
	 	 	 
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Metal Storm Inc

PROPRIETARY INFORMATION and INVENTIONS AGREEMENT

Appendix A

PROPRIETARY INFORMATION

Instructions: This is a list of examples of trade secrets and confidential business, technical, and
financial information. Information is considered confidential if it is not readily publicly
available. This is a partial, but not a complete list of the Proprietary Information subject to
the Proprietary Information and Inventions Agreement.

	 	•	 	Employee list and all information contained in employee records
	 
	 	•	 	Vendor list and all information contained in vendor records
	 
	 	•	 	Customer list and all information contained in customer/company records
	 
	 	•	 	Prospective Customer list and all information contained in prospective customer/company
records
	 
	 	•	 	Stockholder list and all information contained in stockholder records
	 
	 	•	 	All information concerning the financial condition of the Company, including
information contained in any income statement, balance sheet or other internal financial
report.
	 
	 	•	 	Marketing plans and strategies of the Company, including information pertaining to
prospective
	 
	 	•	 	customers.
	 
	 	•	 	Financing plans and strategies of the Company
	 
	 	•	 	Staffing plans and strategies of the Company
	 
	 	•	 	Expansion plans and business strategies of the Company
	 
	 	•	 	Negotiations for financing, merger, acquisition, new customers, new vendors or
otherwise
	 
	 	•	 	Technical research projects, methodologies and results
	 
	 	•	 	Other research and development projects
	 
	 	•	 	Drawings and specifications
	 
	 	•	 	Software and hardware documentation
	 
	 	•	 	Forms, manuals, handbooks and guidelines written for internal staff use
	 
	 	•	 	Any materials for which the Company has copyright protection or are marked confidential
	 
	 	•	 	The Company’s proprietary operating procedures and systems

			
	 	 	 
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Metal Storm Inc

PROPRIETARY INFORMATION and INVENTIONS AGREEMENT

Appendix B

PRIOR MATTERS

Instructions: If there are any disclosable items as specified in the Proprietary Information and
Inventions Agreement, set them forth here. The Company will make its own assessment of how the
Agreement affects these items.

   

 

   

 

   

 

   

 

   

 

   

 

			
	 	 	 
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Metal Storm Inc

PROPRIETARY INFORMATION and INVENTIONS AGREEMENT

Appendix C

CALIFORNIA LABOR CODE, SECTION 2870

(a) Any provision in any employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not apply to
an invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

	 	(1)	 	Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the
employer.
	 
	 	(2)	 	Result from any work performed by the employee for the employer.

(b) To the extent that a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision (a),
the provision is against public policy of this state and is unenforceable.

Enacted 1979, amended 1986

			
	 	 	 
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