Document:

Loan Agreement dated as of February 11, 2003

Exhibit 10.26 
 
LOAN AGREEMENT 
 
between 
 
VARITEK INDUSTRIES, INC., 
as Lender 
 
and

 
CISLUNAR NETWORKS CORP., 
as Borrower 
 
February 11, 2003 

TABLE OF CONTENTS 
 

	 ARTICLE I. DEFINITIONS
	  	 1

	     1.1.
	  	 Defined Terms
	  	 1

	     1.2.
	  	 Accounting Terms
	  	 7

	     1.3.
	  	 Other Terms
	  	 7

	 ARTICLE II. AMOUNT AND TERMS OF THE TERM LOAN
	  	 7

	     2.1.
	  	 Term Loan
	  	 7

	     2.2.
	  	 Term Note
	  	 7

	     2.3.
	  	 Payments.
	  	 8

	     2.4.
	  	 Interest.
	  	 8

	     2.5.
	  	 Method of Payments; Computations.
	  	 10

	     2.6.
	  	 Use of Proceeds
	  	 10

	     2.7.
	  	 Recovery of Payments
	  	 10

	 ARTICLE III. CONDITIONS OF CLOSING AND BORROWING
	  	 10

	     3.1.
	  	 Conditions of Closing and the making of the Term Loan
	  	 10

	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	  	 12

	     4.1.
	  	 Corporate Organization and Power
	  	 12

	     4.2.
	  	 Litigation; Government Regulation
	  	 12

	     4.3.
	  	 Approvals
	  	 12

	     4.4.
	  	 Subsidiaries
	  	 12

	     4.5.
	  	 Licenses, Permits, Authorizations, Etc.
	  	 13

	     4.6.
	  	 Taxes
	  	 13

	     4.7.
	  	 Enforceability of Loan Documents; Compliance with Other Instruments
	  	 13

	     4.8.
	  	 Event of Default
	  	 14

	     4.9.
	  	 Full Disclosure
	  	 14

	     4.10.
	  	 Assets
	  	 14

	     4.11.
	  	 Use of Proceeds
	  	 14

	     4.12.
	  	 Compliance with Laws; FCC Matters
	  	 14

	     4.13.
	  	 First Priority
	  	 15

	     4.14.
	  	 Intentionally Omitted
	  	 15

	     4.15.
	  	 Hazardous Waste and Substances
	  	 15

	     4.16.
	  	 Financial Statements
	  	 16

	     4.17.
	  	 Material Adverse Change
	  	 16

	     4.18.
	  	 Solvency
	  	 16

	     4.19.
	  	 ERISA
	  	 17

	     4.20.
	  	 Patent Collateral and Intellectual Property Collateral
	  	 17

	 ARTICLE V. AFFIRMATIVE COVENANTS
	  	 18

	     5.1.
	  	 Financial and Business Information about the Borrower
	  	 18

	     5.2.
	  	 Budget
	  	 19

	     5.3.
	  	 Notice of Certain Events
	  	 19

	     5.4.
	  	 Corporate Existence and Maintenance of Properties
	  	 19

	     5.5.
	  	 Payment of Debt
	  	 20

	     5.6.
	  	 Intentionally Omitted.
	  	 20

	     5.7.
	  	 Maintenance of Books and Records; Inspection
	  	 20

	     5.8.
	  	 Compliance with Laws
	  	 20

	     5.9.
	  	 Name Change
	  	 20

 

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	     5.10.
	  	 Covenants with respect to Patent Collateral and Intellectual Property
Collateral
	  	 20

	 ARTICLE VI. NEGATIVE COVENANTS
	  	 22

	     6.1.
	  	 Merger, Consolidation, Ownership
	  	 22

	     6.2.
	  	 Liens and Encumbrances
	  	 22

	     6.3.
	  	 Intentionally Omitted.
	  	 22

	     6.4.
	  	 Transactions with Related Persons
	  	 22

	     6.5.
	  	 Transactions Affecting the Collateral
	  	 23

	     6.6.
	  	 Dividends and Distributions
	  	 23

	     6.7.
	  	 No Margin Stock
	  	 23

	     6.8.
	  	 ERISA
	  	 23

	     6.9.
	  	 Covenants with respect to Patent Collateral and Intellectual Property
Collateral
	  	 23

	 ARTICLE VII. EVENTS OF DEFAULT
	  	 23

	     7.1.
	  	 Events of Default
	  	 23

	 ARTICLE VIII. RIGHTS AND REMEDIES AFTER EVENT OF DEFAULT
	  	 25

	     8.1.
	  	 Remedies: Acceleration, etc.
	  	 25

	     8.2.
	  	 Right of Setoff
	  	 26

	 ARTICLE IX. MISCELLANEOUS
	  	 26

	     9.1.
	  	 Survival
	  	 26

	     9.2.
	  	 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial
	  	 26

	     9.3.
	  	 Notice
	  	 27

	     9.4.
	  	 Amendments, Waivers, etc.
	  	 28

	     9.5.
	  	 Rights and Remedies Cumulative, Non-Waiver, etc.
	  	 28

	     9.6.
	  	 Binding Effect, Assignment
	  	 28

	     9.7.
	  	 Severability
	  	 28

	     9.8.
	  	 Entire Agreement
	  	 28

	     9.9.
	  	 Interpretation
	  	 29

	     9.10.
	  	 Counterparts, Effectiveness
	  	 29

	     9.11.
	  	 Conflict of Terms
	  	 29

	     9.12.
	  	 Injunctive Relief
	  	 29

	     9.13.
	  	 Confidentiality
	  	 29

 
 

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LOAN
AGREEMENT 
 
THIS LOAN AGREEMENT,
effective as of the 11th day of February, 2003 (the “Loan Agreement” or “Agreement”), is made
between Varitek Industries, Inc., a Texas corporation (the “Lender”), and Cislunar Networks Corp., a Delaware corporation (the “Borrower”). 
 
Recitals 
 
A. The Borrower wishes to borrow $389,674.62 from the Lender. 
 
B. The Lender is willing to make the Term Loan described herein based on the terms and conditions set forth
herein. 
 
NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lender hereby agree as follows: 
 
ARTICLE I. 
DEFINITIONS 
 
1.1.
Defined Terms. For purposes of this Loan Agreement, in addition to the terms defined elsewhere in this Loan Agreement, the following terms shall have the meanings set forth below: 
 
“Additional Interest” shall have the meaning set forth in Section 2.4(c) hereof.

 
“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” or “this Agreement” or “Loan Agreement” shall mean this Loan Agreement and any amendments,
modifications and supplements hereto, any replacements, renewals, extensions and restatements hereof, and any substitutes herefor, in whole or in part and all Schedules and Exhibits hereto, and shall refer to this Agreement as the same may be in
effect at the time such reference becomes operative. 
 
“Amendment to Lease Agreement” shall mean that certain Amendment to Lease Agreement, in substantially the form attached hereto as Exhibit A, executed simultaneously herewith and dated as of the date hereof between
the Borrower and Mark K. Sullivan. 
 
“Annual
Budget” shall mean the budget prepared annually by the Borrower and delivered to the Lender. 
 
“Applicable Environmental Laws” shall have the meaning set forth in Section 4.15 hereof. 

 
“Applicable Usury Laws” shall have the meaning set forth in Section 2.4(c) hereof. 
 
“Bankruptcy Code” shall mean 11 U.S.C. § 101 et seq., as amended, and any successor statute or statute having
substantially the same function. 
 
“Borrower” shall mean Cislunar Networks Corp., a Delaware corporation. 
 
“Business Day” shall mean (i) any day other than a Saturday or Sunday, a legal holiday or a day on which commercial banks in Houston, Texas are required by law to be closed. 
 
“Capital Lease” shall mean any lease of any property
that would, in accordance with GAAP, be required to be classified and accounted for as a capital lease on the balance sheet of the lessee. 
 
“CERCLA” shall have the meaning set forth in Section 4.15 hereof. 
 
“Closing” shall mean the closing of the Term Loan
contemplated by this Agreement. 
 
“Closing
Date” shall mean the date upon which the Closing takes place. 
 
“Collateral” shall mean all right, title and interest of the Borrower in the collateral described in the Security Agreement. 
 
“Default” shall mean any event that, with the passage of time or giving of notice, or both, would constitute an Event of
Default. 
 
“Dollars” or “$”
shall mean dollars of the United States of America. 
 
“Employee Plan” shall mean an employee benefit plan (other than a Multiemployer Plan) covered by Title IV of ERISA and maintained (or that was maintained at any time during the six (6) calendar years preceding the date of
any borrowing hereunder) for employees of the Borrower or any of its ERISA Affiliates. 
 
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, and regulations thereunder, in each case, as in effect from
time to time. References to sections of ERISA shall be construed also to refer to any successor sections. 
 
“ERISA Affiliate” shall mean, with respect to any Person, any trade or business (whether or not incorporated) which is a member
of a group of which such Person is a member and which would be deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the IRC. 
 
“Event of Default” shall have the meaning set forth in Article VII hereof. 
 
“Existing Obligations” shall mean the payment
obligations under the agreements listed on Schedule 1.1 attached hereto. 
 
“FCC” shall mean the Federal Communications Commission. 
 

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“FCC
Licenses” shall have the meaning set forth in Appendix A attached to the Security Agreement. 
 
“Final Order” shall mean an action or decision by the FCC as to which (i) 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, (ii) 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, (iii) 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 (iv) 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. 
 
“Financial Statements” shall have the meaning set
forth in Section 4.16(b) hereof. 
 
“Financing Statements” shall mean financing statements approved for filing in accordance with the applicable adopted version of the Uniform Commercial Code and all other titles, documents, and certificates that the Lender
may require from the Borrower to describe and perfect the security interests created hereunder or under the other Loan Documents, and all assignments thereof and amendments thereto, in form and substance satisfactory to the Lender. 
 
“GAAP” shall mean generally accepted accounting
principles, as in effect from time to time, applied on a consistent basis. 
 
“Governmental Authority” shall mean any nation or government, any state 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. 
 
“Highest Lawful Rate” shall have the meaning set forth in Section 2.4(c) hereof. 
 
“Intellectual Property Collateral” shall have the
meaning set forth in Section E of Appendix A of the Security Agreement. 
 
“IRC” shall mean the Internal Revenue Code of 1986, as amended (or any successor statute thereto) and the regulations thereunder. 
 
“Leasehold Deed of Trust” shall mean that certain Leasehold Deed of Trust, in substantially the
form attached hereto as Exhibit B, granted by the Borrower in favor of the Lender effective as of the date hereof. 
 
“Lender” shall mean Varitek Industries, Inc., a Texas corporation. 
 
“Letter Agreement” shall mean that certain letter agreement, in substantially the form attached
hereto as Exhibit C, executed simultaneously herewith and dated as of the date hereof by and between the Borrower and the Lender regarding the Lender’s option to purchase the assets of the Borrower set forth therein as further
consideration for the Lender’s entering into the Loan Documents. 
 

3 

 
“Loan
Documents” shall mean and collectively refer to this Agreement, the Letter Agreement, the Term Note, the Security Agreement, the Financing Statements, the Amendment to the Lease Agreement, the Leasehold Deed of Trust, the Memorandum of Lease,
the Patent Assignment, the Assignment of Security Interest in U.S. Patents, the Invention Assignments, the Copyright Assignment, the Assignment of Security Interest in Copyrights, the Letter Agreement with Arvest Bank, the Letter Agreement with Mark
K. Sullivan, and any and all agreements, instruments and documents, including, without limitation, notes, guaranties, mortgages, deeds to secure debt, deeds of trust, chattel mortgages, pledges, powers of attorney, consents, assignments, contracts,
notices, security agreements, trust account agreements and all other written matters, whether heretofore, now or hereafter, executed by or on behalf of the Borrower and delivered to the Lender, with respect to this Agreement or with respect to the
transactions contemplated by this Agreement, and in each case, together with any amendments, modifications and supplements thereto, any replacements, renewals, extensions and restatements thereof, and any substitutes therefor, in whole or in part.

 
“Material Adverse Effect” or
“Material Adverse Change” shall mean a material adverse effect upon, or a material adverse change in, any of (a) the financial condition, operations, business or properties of the Borrower, other than any adverse effects relating to
general economic, market wide or industry conditions; (b) the ability of the Borrower to perform under the Loan Documents; (c) the Collateral or the first priority liens upon, continuing security interests in, and rights of set-off against, the
Collateral granted to the Lender under the Security Agreement and the other Loan Documents; or (d) the Lender’s rights and remedies under this Agreement and the other Loan Documents. 
 
“Maturity Date” shall mean January 19, 2004. 
 
“Maximum Amount” shall have the meaning set forth in
Section 2.4(c) hereof. 
 
“Memorandum
of Lease” shall mean that certain Memorandum of Lease, in substantially the form attached hereto as Exhibit D, executed simultaneously herewith and dated as of the date hereof between the Borrower and Mark K. Sullivan. 
 
“Multiemployer Plan” shall mean a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Borrower or any of its ERISA Affiliates has contributed to, or has been obligated to contribute, at any time during the preceding six (6) years. 
 
“Obligations” shall mean (i) the Term Loan and all
other loans, advances, indebtedness, liabilities, obligations, covenants and duties owing, arising, due or payable from the Borrower to the Lender of any kind or nature, present or future, howsoever evidenced, created, incurred, acquired or owing,
arising under this Agreement, the Term Note or the other Loan Documents or in any other way related to this Agreement, whether direct or indirect, absolute or contingent, primary or secondary, due or to become due, now existing or hereafter arising
and however acquired and (ii) all interest (including, to the extent permitted by law, all post-petition interest), charges, expenses, fees, attorneys’ fees and any other sums payable by the Borrower to the Lender under this Agreement or any of
the other Loan Documents. 
 

4 

 
“Patent
Assignment” shall mean that certain Patent Assignment, in substantially the form attached hereto as Exhibit F, executed simultaneously herewith and dated as of the date hereof between the Borrower and Niobrara Research & Development
Corporation. 
 
“Patent Collateral” shall
have the meaning set forth in Section D of Appendix A of the Security Agreement. 
 
“PBGC” shall mean the Pension Benefit Guaranty Corporation or any successor thereto. 
 
“Permitted Liens” shall mean any of the following liens, restrictions or encumbrances securing any liability or indebtedness of
the Borrower or any subsidiary of the Borrower on, or otherwise affecting, any of the Borrower’s or such subsidiary’s property, real or personal, whether now owned or hereafter acquired: 
 
(a) Liens granted to the Lender;

 
(b) Liens imposed by mandatory
provisions of law of carriers, warehousemen, mechanics, repairmen and materialmen and other like liens required by provisions of law and incurred in the ordinary course of business for sums not yet due and payable (or with respect to any obligation
not greater than $10,000, not more than sixty (60) days past the date of service) or that are being contested in good faith and with due diligence by appropriate proceedings; 
 
(c) Liens incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance or other forms of governmental insurance or benefits, provided that all such liens in the aggregate have no Material Adverse Effect; 
 
(d) Liens for current taxes, assessments or other governmental charges that are not
delinquent or remain payable without any penalty or that are being contested in good faith and with due diligence by appropriate proceedings, provided that all such liens in the aggregate have no Material Adverse Effect; 
 
(e) Liens upon property leased under a
Capital Lease and placed upon such property at the time of, or within ten (10) days after, the commencement of the lease thereof to secure the lease payments under such Capital Lease, provided that any such lien (i) shall not encumber any
other property of the Borrower and (ii) shall not exceed the total of such lease payments; 
 
(f) Purchase money liens relating to equipment used in the Borrower’s business, provided that any such lien
(i) attaches to such asset concurrently with or within ten (10) days after the acquisition thereof, (ii) shall not encumber any other property of the Borrower and (iii) shall not exceed the purchase price of such asset; 
 
(g) Easements, rights of way, zoning
restrictions and other similar encumbrances on real estate that do not materially impair the value of the property to which they relate; and 
 

5 

 
(h) Any other liens or encumbrances as the Lender may approve in writing from time to time. 
 
“Person” shall mean a corporation, an association, a joint venture, a partnership, an organization, a business, an individual, a
trust or a government or political subdivision thereof or any government agency or any other legal entity. 
 
“RCRA” shall have the meaning set forth in Section 4.15 hereof. 
 
“Reportable Event” shall mean an event described in
Section 4043 of ERISA (other than an event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated under such Section). 
 
“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. 
 
“Responsible Officer” shall mean the chief financial officer or president of the Borrower. 
 
“Security Agreement” shall mean that certain
Security Agreement, in substantially the form attached hereto as Exhibit G, executed simultaneously herewith and dated as of the date hereof by and between the Borrower and the Lender pursuant to which the Borrower has granted to the Lender a
security interest in certain of its fixed assets and customer contracts as collateral security for the Obligations under this Agreement, the Term Note and the other Loan Documents. 
 
“Solvent” shall mean, with respect to any Person, that the value of the assets of such Person (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 such Person as of such date and that, as of such date, such Person
is able to pay all liabilities of such Person as such liabilities mature 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 ac actual or matured liability. 
 
“Termination Event” shall mean (i) a Reportable Event with respect to any Employee Plan, (ii) any
event that causes the Borrower or any of its ERISA Affiliates to incur liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 4971 or 4975 of the IRC, (iii) the filing of a notice of intent
to terminate an Employee Plan or the treatment of an Employee Plan amendment as a termination under Section 4041 of ERISA, (iv) the institution of proceedings by the PBGC to terminate an Employee Plan, or (v) any other event or condition which might
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Employee Plan. 
 
“Term Loan” shall mean the term loan made in accordance with Section 2.1. 
 

6 

 
“Term
Note” shall have the meaning assigned to such term in Section 2.2, together with any amendments, modifications and supplements thereto and restatements thereof. 
 
“Uniform Commercial Code” shall mean the Uniform Commercial Code of the State of Texas, as amended
from time to time, unless in any particular instance the Uniform Commercial Code of another state is applicable, in which case it shall mean the Uniform Commercial Code of such state. 
 
1.2. Accounting Terms. Any accounting terms used in this Agreement that are not specifically defined
shall have the meanings customarily given them in accordance with GAAP. 
 
1.3. Other Terms. All other terms contained in this Agreement shall, when the context so indicates, have the meanings provided for by the Uniform Commercial Code to the extent the same are used or defined therein.

 
ARTICLE II. 
AMOUNT AND TERMS OF THE TERM LOAN 
 
2.1. Term Loan. 
 
(a) On the date hereof, and subject to the terms and conditions contained herein, the Lender shall make the Term Loan to
the Borrower, the proceeds of which shall be immediately applied to pay in full the Existing Obligations. There shall be no further advances under the Term Loan. 
 
(b) Interest on the Term Loan shall accrue in accordance with Section 2.4, and accrued
(and theretofore unpaid) interest shall be due and payable on April 18, 2003, July 10, 2003, October 20, 2003 and January 19, 2004. The principal amount of the Term Loan shall be due and payable in four (4) equal installments payable on April 18,
2003, July 10, 2003, October 20, 2003 and January 19, 2004. The Borrower may prepay, without penalty, the Term Loan in full or in part at any time, but may not reborrow any amounts so prepaid. Any such prepayment will be applied to the most remote
installment of principal due under this Agreement. 
 
2.2. Term Note. The Term Loan made by the Lender shall be evidenced by a Term Note appropriately completed in substantially the form of Exhibit H. The Term Note issued to the Lender shall (i) be executed by the
Borrower, (ii) be payable to the order of the Lender, (iii) be dated as of the Closing Date, (iv) be in a stated principal amount of $389,674.62, (v) bear interest in accordance with the provisions of Section 2.4, as the same may be
applicable from time to time, and (vi) be entitled to all of the benefits of this Agreement and the other Loan Documents and subject to the provisions hereof and thereof. 
 

7 

 
2.3.
Payments. 
 
(a) The
Borrower shall pay principal and interest on the Term Loan in accordance with Section 2.1 and in the manner specified in Section 2.5. 
 
(b) The Borrower shall repay the Term Note in full on the Maturity Date. 
 
2.4. Interest. 
 
(a) Subject to Section 2.4(c), the
Borrower will pay interest in respect of the unpaid principal amount of the Term Loan, from the date hereof until such principal amount shall be paid in full, at a rate per annum equal to the lesser of (i) 8% per annum and (ii) the Highest Lawful
Rate. 
 
(b) Upon the occurrence
and during the continuance of an Event of Default, all outstanding principal amounts of the Term Loan and, to the greatest extent permitted by law, all interest accrued on the Term Loan and all other fees and amounts not paid when due hereunder,
shall bear interest at a rate per annum equal to the lesser of (i) 13% per annum and (ii) the Highest Lawful Rate and such interest shall be payable on demand. To the greatest extent permitted by law, interest shall continue to accrue after the
filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any law pertaining to insolvency or debtor relief. 
 
(c) It is the intention of the parties hereto to conform strictly to applicable usury laws regarding the use, forbearance
or detention of the indebtedness evidenced by this Agreement, the Term Note and the other Loan Documents, whether such laws are now or hereafter in effect, including the laws of the United States of America or any other jurisdiction whose laws are
applicable, and including any subsequent revisions to or judicial interpretations of those laws, in each case to the extent they are applicable to this Agreement, the Term Note and the other Loan Documents (the “Applicable Usury Laws”).
Accordingly, if any acceleration of the maturity of the Term Note or any payment by the Borrower or any other person or entity produces a rate in excess of the Highest Lawful Rate or results in the Borrower or such other person or entity being
deemed to have paid any interest in excess of the Maximum Amount, as hereinafter defined, or if the Lender shall for any reason receive any unearned interest in violation of any Applicable Usury Law, or if any transaction contemplated hereby would
otherwise be usurious under any Applicable Usury Laws, then, in that event, notwithstanding anything to the contrary in this Agreement or any other Loan Document or any other agreement or instrument, it is agreed as follows: (i) the provisions of
this Section 2.4(c) shall govern and control; (ii) the aggregate of all interest under Applicable Usury Laws that is contracted for, taken, charged, collected, reserved or received under this Agreement, or under any of the other aforesaid
agreements or instruments or otherwise shall under no circumstances exceed the Maximum Amount, and any amount that would be excessive interest shall be applied to the reduction of the principal amount owing in respect of the Term Note and not to the
payment of interest, or if such excessive amount exceeds the principal amount owing in respect of the Term Note, any excess shall be promptly refunded to the Borrower or such other person or entity by the Lender; 

 

8 

(iii) neither the Borrower nor any other person or entity shall be obligated to pay the amount of such interest to the extent that it is in
excess of the Maximum Amount; and (iv) the effective rate of interest on the Term Loan shall be ipso facto reduced to the Highest Lawful Rate, and the provisions of this Agreement, the Term Note and the other Loan Documents immediately
shall be deemed reformed, without the necessity of the execution of any new document or instrument, so as to comply with all Applicable Usury Laws. All sums paid, or agreed to be paid, to the Lender for the use, forbearance or detention of the
indebtedness of the Borrower to the Lender evidenced by this Agreement and the Term Note and the other Loan Documents shall, to the fullest extent permitted by the Applicable Usury Laws, be amortized, pro rated, allocated and spread throughout the
full term of the indebtedness evidenced by this Agreement, the Term Note and the other Loan Documents so that the actual rate of interest does not exceed the Highest Lawful Rate in effect at any particular time during the full term thereof. As used
herein, the term “Highest Lawful Rate” means the maximum rate of interest, if any, that may be contracted for, taken, charged, collected, reserved or received under all Applicable Usury Laws on the principal balance of the Term Loan from
time to time outstanding; and in this connection, for purposes of the Texas Finance Code § 303.001 et seq., as it may be amended from time to time, the “applicable interest rate ceiling,” to the extent it is determined
with reference thereto, shall be the “weekly ceiling” from time to time in effect referred to in, and determined pursuant to, the Texas Finance Code § 303.003, as amended, as limited by the Texas Finance Code §
303.009, as amended; provided, however, that to the fullest extent permitted by all Applicable Usury Laws, the Lender shall have the right to change, from time to time by further written notice and disclosure to the Borrower, the ceiling upon which
the Highest Lawful Rate is based to the extent it is based thereon; provided, further, that the Highest Lawful Rate shall not be limited to the applicable rate ceiling under the Texas Finance Code § 303.001 et seq., if
applicable federal laws or state laws now or hereafter in effect shall permit a higher rate of interest to be contracted for, taken, charged, collected and received hereunder; and the term “Maximum Amount” means the maximum nonusurious
amount of interest which may be lawfully contracted for, taken, charged, collected, reserved or received by the Lender in connection with the indebtedness evidenced by this Agreement, the Term Note and other Loan Documents under all Applicable Usury
Laws. If at any time the interest rate on the Term Loan, together with any other fees and additional amounts payable hereunder or under any other agreements or instruments that are deemed to constitute interest under Applicable Usury Laws (the
“Additional Interest”), exceeds the Highest Lawful Rate, then the amount of interest to accrue pursuant to this Agreement and the Term Note and the other Loan Documents shall be limited, notwithstanding anything to the contrary in this
Agreement or the Term Note or any other Loan Document or any other agreement or instrument, to the amount of interest that would accrue at the Highest Lawful Rate; provided, however, that to the fullest extent permitted by Applicable Usury Laws, any
subsequent reductions in the interest rate on the Term Loan shall not reduce the interest to accrue pursuant to this Agreement, the Term Note and the other Loan Documents below the Highest Lawful Rate until the aggregate amount of interest actually
accrued pursuant to this Agreement, the Term Note and the other Loan Documents, together with all Additional Interest, equals the amount of interest which would have accrued if the 

 

9 

interest rate on the Term Loan had at all times been in effect and such Additional Interest, if any, had been paid in full. 
 
2.5. Method of Payments; Computations. 
 
(a) Except as set forth in Section
8.2, all payments by the Borrower hereunder and under the Term Note shall be made without setoff, counterclaim or other defense, in Dollars and in immediately available funds to the Lender prior to 2 p.m., Houston time, on the date payment is
due. Any such payment made as required hereinabove, but after 2 p.m., Houston time, shall be deemed to have been made on the next succeeding Business Day. If any payment falls due on a day that is not a Business Day, then such due date shall be
extended to the next succeeding Business Day, and such extension of time shall then be included in the computation of payment of interest, fees or other applicable amounts. 
 
(b) All computations of interest and fees hereunder shall be made on the basis of a year
consisting of 365 or 366 days, as applicable, and the actual number of days (including the first day, but excluding the last day) elapsed. 
 
2.6. Use of Proceeds. The Borrower hereby agrees to immediately apply the proceeds of the Term Loan to payment in full of the
Existing Obligations. 
 
2.7. Recovery of
Payments. The Borrower agrees that to the extent the Borrower makes a payment or payments to or for the account of the Lender, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy, insolvency or similar state or federal law, or otherwise at law or equity, then, to the extent of such payment or repayment, the Obligation intended
to be satisfied shall be revived and continued in full force and effect as if such payment had not been received. 
 
ARTICLE III.  
CONDITIONS OF CLOSING
AND BORROWING 
 
3.1. Conditions of
Closing and the making of the Term Loan. The Term Loan shall not be made by the Lender hereunder unless the following conditions precedent shall have been satisfied: 
 
(a) The Lender shall have received the following, each dated as of the Closing Date (unless
otherwise specified): 
 
(i)
counterparts hereof signed by each of the parties hereto; 
 
(ii) the Term Note, duly completed and executed by the Borrower; 
 
(iii) the Security Agreement, duly completed and executed by the Borrower; 
 

10 

 
(iv) the Letter Agreement, duly completed and executed by the Borrower; 
 
(v) the Amendment to Lease Agreement, duly completed and executed by the Borrower and Mark K. Sullivan; 
 
(vi) the Leasehold Deed of Trust, duly
completed and executed by the Borrower in favor of the Lender; 
 
(vii) the Memorandum of Lease, duly completed and executed by the Borrower and Mark K. Sullivan; 
 
(viii) the Letter Agreement with Arvest Bank, in substantially the form attached hereto as Exhibit E, duly
completed and executed by Arvest Bank; 
 
(ix) the Patent Assignment, duly completed and executed by the Borrower and Niobrara Research & Development Corporation; 
 
(x) the Assignment of Security Interest in U.S. Patents, in substantially the form attached hereto as Exhibit I,
duly completed and executed by the Borrower; 
 
(xi) the Invention Assignment, in substantially the form attached hereto as Exhibit J, duly completed and executed by the Borrower, Mark K. Sullivan and Charles Adam Crowder; 
 
(xii) the Invention Assignment, in
substantially the form attached hereto as Exhibit K, duly completed and executed by the Borrower and Mark K. Sullivan (together with subsection (xi) above, the “Invention Assignments”); 
 
(xiii) the Copyright Assignment, in
substantially the form attached hereto as Exhibit L, duly completed and executed by Mark K. Sullivan and the Borrower; 
 
(xiv) the Assignment of Security Interest in Copyrights, in substantially the form attached hereto as Exhibit M,
duly completed and executed by the Borrower; 
 
(xv) the Letter Agreement with Mark K. Sullivan, in substantially the form attached hereto as Exhibit N, duly completed and executed by Mark K. Sullivan; and 
 
(xvi) executed copies of each document (including Financing Statements) to be filed or
recorded in each jurisdiction in which the filing or recording is necessary or appropriate in order to create in favor of the Lender, a valid, legal and perfected first priority security interest in or lien on the Collateral that is the subject of
the Security Agreements, subject only to Permitted Liens. 
 

11 

 
(b) Each of the representations and warranties made by the Borrower contained in Article IV shall be true and correct and no Default or Event of Default shall have occurred and be continuing on such date, both immediately
before and after giving effect to the Term Loan. 
 
(c) The Lender shall have received such other documents, in form and substance reasonably satisfactory to the Lender, as it may reasonably request in connection with the Term Loan. 
 
ARTICLE IV. 
REPRESENTATIONS AND WARRANTIES 
 
In order to induce the Lender to enter into this Loan Agreement and extend the credit contemplated hereby, the Borrower makes the
following warranties and representations to the Lender: 
 
4.1. Corporate Organization and Power. The Borrower (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 Loan 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 the Borrower’s properties, owned or leased, or the nature of its activities makes such qualification or license necessary, unless the failure to be so licensed or qualified does not have a Material Adverse
Effect. 
 
4.2. Litigation; Government
Regulation. (a) There are no judgments, injunctions or similar orders or decrees and no actions, suits, investigations or proceedings pending (pursuant to which the Borrower has been served) or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or its business that is reasonably likely to have a Material Adverse Effect, or that question the validity of this Agreement or any of the Loan Documents, at law or in equity before any court, arbitrator or
Governmental Authority, and (b) the Borrower 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. 
 
4.3. Approvals. There is no legal impediment to the
execution and delivery of this Agreement, the Term Note or the other Loan Documents by the Borrower or to the consummation of the transactions contemplated hereby or thereby, and 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 the Borrower of the transactions contemplated hereby or thereby, other than such which, if not made or obtained, would not, in the aggregate,
have a Material Adverse Effect. 
 
4.4.
Subsidiaries. Schedule 4.4 sets forth a true, complete and correct list of each subsidiary of the Borrower, including state or country of organization and address of its principal executive offices. Each subsidiary of the Borrower is a
corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite corporate power and authority to own, to lease or to operate its properties and to carry 

 

12 

on its business as it is now being conducted and is duly qualified or licensed to do business in each jurisdiction in which the character of
its properties, owned or leased, or the nature of its activities makes such qualification or license necessary, unless the failure to be so licensed or qualified would not have a Material Adverse Effect. 
 
4.5. Licenses, Permits, Authorizations, Etc.

 
(a) The Borrower 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 its business as presently conducted. The execution and
delivery of this Agreement, the Term Note or any of the other Loan 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 the Borrower, 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 the Borrower’s knowledge,
threatened against either the Borrower or against any of the FCC Licenses, nor is the Borrower 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. 
 
4.6. Taxes. The Borrower is not
delinquent in the payment of any taxes that have been levied or assessed by any Governmental Authority against it or its assets. The Borrower (a) has timely filed all tax returns that are required by law to be filed prior to the date hereof, and has
paid all taxes shown on said returns and all other assessments or fees levied upon it or upon its properties to the extent that such taxes, assessments or fees have become due, and if not due, such taxes have been adequately provided for and
sufficient reserves therefor established on its books of account, and (b) is current with respect to payment of all federal and state withholding taxes, social security taxes and other payroll taxes. 
 
4.7. Enforceability of Loan Documents; Compliance with
Other Instruments. Each of the Loan Documents to which the Borrower is a party has been duly authorized by all necessary corporate action on the part of the Borrower, has been validly executed and delivered by the Borrower and is the legal,
valid and binding obligation of the Borrower, enforceable against the Borrower 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. The Borrower is not in default with respect to any indenture, loan agreement, mortgage, lease, deed or similar agreement related to the 

 

13 

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 Loan Documents by the Borrower, nor compliance by the Borrower 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 the Borrower 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 lien, charge or encumbrance upon the properties of the Borrower pursuant to any such
agreement or instrument, except for Permitted Liens. 
 
4.8. Event of Default. No Default or Event of Default has occurred and is continuing. 
 
4.9. Full Disclosure. To the Borrower’s knowledge, there is no fact related to the business of the Borrower that the Borrower
has not disclosed to the Lender that may reasonably be expected to result in a Material Adverse Effect. 
 
4.10. Assets. 
 
(a) After application of the proceeds of the Term Loan in accordance with Section 2.6 hereof, the Borrower will
have good and indefeasible title to the Collateral free and clear of all liens, claims, security interests and encumbrances except Permitted Liens and no financing statement or other record of a security interest that names the Borrower as debtor
has been filed and is still in effect or has been authorized to be filed, other than Financing Statements evidencing Permitted Liens. 
 
(b) The Collateral comprises all assets necessary or appropriate for the conduct of the Borrower’s business as now
being conducted by the Borrower. 
 
4.11. Use of
Proceeds. The Borrower’s use of the proceeds of the Term Loan in accordance with Section 2.6 hereof is and will be a legal and proper business use, and such use is and will be consistent in all material respects with all applicable
laws and statutes, as in effect from time to time. 
 
4.12. Compliance with Laws; FCC Matters. The Borrower 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, the Borrower 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 the Borrower (including without limitation the Borrower’s ownership of the FCC Licenses) as required by, and in accordance with, applicable Requirements of Law. The
Borrower has duly and timely paid to the FCC and all other Governmental Authorities all fees associated with any such filings. The Borrower has duly and timely paid all periodic regulatory fees to the FCC and all other Governmental Authorities in
accordance with applicable Requirements of Law. The Borrower is in material compliance with all terms and conditions of, and all obligations under, the FCC Licenses. 
 

14 

 
4.13. First
Priority. Except for Permitted Liens, after application of the proceeds of the Term Loan in accordance with Section 2.6 hereof, this Agreement, together with the other Loan Documents, will create valid and perfected first priority
security interests and liens in and upon the Collateral covered thereby, in each case enforceable against the Borrower and all other Persons in all relevant jurisdictions and securing the payment of all Obligations purported to be secured thereby.

 
4.14. Intentionally Omitted.

 
4.15. Hazardous Waste and Substances. To
the Borrower’s best knowledge after reasonable investigation by the Borrower, neither the operations of the Borrower 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 (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”). To the Borrower’s best knowledge after reasonable investigation by the Borrower, none of the
operations of the Borrower 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 the Borrower 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 the Borrower 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 the Borrower of any such notice. To the Borrower’s best knowledge after reasonable investigation by the Borrower, there has been no action taken, or omitted to be
taken, by the Borrower 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. The Borrower will conduct its business operations in substantial compliance with all
current and future Applicable Environmental Laws, as those may be amended from time to time. The Borrower hereby indemnifies the Lender from and against any liability arising out of or related to: (i) breach of any of the above covenants,
representations or warranties; (ii) the presence or release of any hazardous substances on any property owned or operated by the Borrower; and (iii) any other 

 

15 

acts or omissions by the Borrower (a) giving rise to liabilities under any current or future Applicable Environmental Laws (as those may be
amended from time to time) or (b) otherwise relating to hazardous materials, hazardous substances, or hazardous wastes. 
 
4.16. Financial Statements. 
 
(a) The unaudited consolidating balance sheet of the Borrower as at November 30, 2002 and the related unaudited
consolidating statements of operations of the Borrower for the period then ended, copies of which have been furnished to the Lender, fairly present the financial condition of the Borrower as at such dates and the results of the operations of the
Borrower for the period ended on such dates, all in conformity with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments). 
 
(b) The unaudited consolidating balance sheet of the Borrower as at December 31, 2002 and the
related unaudited consolidating statements of operations of the Borrower for the period then ended, copies of which will be furnished to the Lender within seven (7) days following the Closing Date, will fairly present the financial condition of the
Borrower as at such dates and the results of the operations of the Borrower for the period ended on such dates, all in conformity with GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments). All of the
above-referenced financial statements in Section 4.16(a) and Section 4.16(b) are referred to herein collectively as the “Financial Statements.” 
 
(c) The Borrower does not have any material obligation, contingent liability or liability for
taxes, long-term leases or unusual forward or long-term commitment which is not reflected in the Financial Statements or in the notes thereto or permitted by this Agreement or the other Loan Documents. 
 
(d) The Annual Budget for 2003, a copy of
which has been delivered to the Lender, has been prepared by the Borrower in light of the past operations of its business. Such budget shall be based upon estimates and assumptions stated therein, all of which the Borrower believes to be reasonable
and fair in light of current conditions and current facts known to the Borrower and, as of the date prepared, shall reflect the Borrower’s good faith and reasonable estimates of the future financial performance of the Borrower and of the other
information projected therein for the Borrower for the periods set forth therein. 
 
4.17. Material Adverse Change. Since December 31, 2002 there have been no events or developments that in the aggregate have had a Material Adverse Effect. 
 
4.18. Solvency. Both before and after giving effect to
(a) the Term Loan to be made or extended on the Closing Date, (b) the application of the proceeds of the Term Loan pursuant to Section 2.6 of this Agreement and (c) the payment and accrual of all transaction costs in connection with the
foregoing, the Borrower is Solvent. 
 

16 

 
4.19.
ERISA. The Borrower does not sponsor, maintain or contribute to, and for the six (6) years prior to the Closing Date has not had any obligation to sponsor, maintain or contribute to, any Employee Plan or Multiemployer Plan. 
 
4.20. Patent Collateral and Intellectual Property
Collateral. 
 
(a) Each item
of Patent Collateral and Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable, in whole or in part. 
 
(b) To the best of Borrower’s knowledge, each item of Patent Collateral and Intellectual Property Collateral is valid
and enforceable, and no administrative or court decisions have issued limiting the literal or equivalent scope of any such item of Patent Collateral or limit the scope of any such item of Intellectual Property Collateral. 
 
(c) To the best of the Borrower’s
knowledge, no claim has been made that any item of Patent Collateral or Intellectual Property Collateral or the use or practice thereof, in whole or any part, does or may violate any rights or misappropriate any property or interest of any third
party. 
 
(d) The Borrower is the
sole and exclusive owner of the entire and unencumbered right, title and interest in and to each item of Patent Collateral and Intellectual Property Collateral (including all distinct exclusive rights therein), free and clear of any liens,
restrictions or encumbrances (except for Permitted Liens), including, without limitation, free and clear of pledges, assignments, grants, licenses, user agreements, shop rights and covenants by the Borrower not to sue third persons, except for the
pledge, security interest and assignment created by this Agreement and the Security Agreement. 
 
(e) The Borrower has used, and will use its best efforts to continue to use for the duration of this Agreement, proper
statutory notice in connection with its use of the Patent Collateral and Intellectual Property Collateral. 
 
(f) All of the patents and patent applications of the Borrower are listed in Section D of Appendix A of the
Security Agreement. Borrower has delivered to Lender true, complete and accurate copies of all documents in Borrower’s or Borrower’s counsel’s possession that relate to the prosecution of each such patent and patent application.

 
(g) As necessary to identify
the following, Appendix A of the Security Agreement sets forth a true, accurate, and complete list and description (i) in Section E(1) of all material trademarks, service marks and trade names of the Borrower; (ii) in Section E(2) all domain
name registrations used in Borrower’s business; (iii) in Section E(3) all material works of authorship of Borrower; (iv) in Section E(4) all material trade secrets of Borrower; and (v) in Section E(5) all material licenses to which Borrower 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 a governmental application, registration, or other filing, the
applicable governmental entity and its applicable file number or other identifier for such filing is identified. Borrower 
 

17 

has delivered to Lender true, complete, and accurate copies of documents and provided descriptions relating to the foregoing sufficient to
allow Lender to fully evaluate the foregoing as collateral and assess its role in the operation of Borrower’s businesses. 
 
(h) Pursuant to the Patent Collateral and the Intellectual Property Collateral, Borrower holds all material rights,
powers, privileges and immunities with respect to any invention, discovery, design, industrial property, work of authorship, maskwork, trademark, service mark, trade name, trade dress, trade secret, database, confidential or proprietary information
or other intellectual property or proprietary interest necessary or appropriate for the conduct of Borrower’s business as currently conducted or planned. The execution and delivery of this Agreement, the Term Note or any of the other Loan
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 such rights, powers, privileges and immunities, 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.

 
ARTICLE V. 
AFFIRMATIVE COVENANTS 
 
The Borrower covenants and agrees that, until the termination of this Agreement and the payment in full of all principal and interest with
respect to the Term Loan together with all other amounts then due and owing hereunder, it will comply with the following covenants. 
 
5.1. Financial and Business Information about the Borrower. The Borrower shall provide the following financial information and
statements, and such additional information as requested by the Lender from time to time, all in form and detail reasonably acceptable to the Lender: 
 
(a) within 60 Business Days of the end of each fiscal year of the Borrower, the Borrower’s unaudited annual financial
statements; 
 
(b) within 30
Business Days of the end of each calendar quarter, the Borrower’s unaudited quarterly financial statements; 
 
(c) within 15 Business Days of the end of each month, the Borrower’s balance sheet and income statement for
such month; 
 
(d) within 15
Business Days of the end of each month, a copy of the Borrower’s check register; 
 
(e) upon the Lender’s request, the Borrower will furnish such information about the Collateral or the financial
condition and operations of the Borrower as the Lender may from time to time reasonably request and Borrower may supply without violation of its obligations to any third party; and 
 

18 

 
(f) all financial information and statements delivered pursuant to clauses (a), (b) and (c) of this Section 5.1 shall be accompanied by a certification of a Responsible Officer of the Borrower stating that (i) such information
or statements fairly present in all material respects the financial position of the Borrower as of such date and the results of operations of the Borrower for the period covered thereby and (ii) that, to the knowledge of such Responsible Officer, no
Default or Event of Default has occurred and is continuing. 
 
5.2. Budget. The Borrower has furnished to the Lender the Borrower’s Annual Budget for 2003. Within forty-five (45) days of the end of each fiscal year after the date hereof, the Borrower shall deliver to the Lender an
Annual Budget, in form and substance reasonably satisfactory to the Lender. 
 
5.3. Notice of Certain Events. The Borrower shall promptly, but in no event later than ten (10) Business Days after the Borrower obtains knowledge thereof, give written notice to the Lender of:

 
(a) Any litigation or
proceeding before any Governmental Authority, court or arbitrator brought by or against the Borrower; 
 
(b) Any written notice of a violation received by the Borrower from any Governmental Authority; 
 
(c) Any attachment, judgment, lien, levy or
order that is placed on, assessed against or threatened against the Borrower or any of the Collateral, except for Permitted Liens; 
 
(d) Any Default or Event of Default; 
 
(e) Any material default or event of default under any agreement or instrument to which the
Borrower is a party or by which the Borrower, or any of its property, is bound; 
 
(f) Any other matter that has resulted or could reasonably be expected to result in a Material Adverse Change. 
 
5.4. Corporate Existence and Maintenance of Properties. The Borrower shall: 
 
(a) Maintain and preserve in full force and
effect (i) its corporate existence and (ii) all material rights, privileges and franchises; 
 
(b) Keep its properties (including without limitation the Collateral) in good working order and condition (normal wear and
tear excepted) and from time to time make all needed repairs to, renewals of or replacements of its properties (except to the extent that any of such properties are obsolete or are being replaced); and 
 

19 

 
(c) File or cause to be filed in a timely manner all reports, applications, estimates and licenses required by any Governmental Authority that, if not timely filed, could reasonably be expected to have a Material Adverse Effect.

 
5.5. Payment of Debt. The Borrower shall
pay all material indebtedness when due and all other obligations in accordance with customary trade practices. 
 
5.6. Intentionally Omitted. 
 
5.7. Maintenance of Books and Records; Inspection. The Borrower shall maintain adequate books, accounts and records. The Borrower
shall, upon reasonable request, permit employees or agents of the Lender to inspect the properties of the Borrower relating to this Agreement and to examine or audit the books, records, working papers and accounts of the Borrower and make copies and
memoranda of them, and to discuss the affairs, finances and accounts of the Borrower with its officers, all at such times and from time to time during business hours as may be reasonably requested. 
 
5.8. Compliance with Laws. The Borrower shall (i) have
all material licenses, permits, certifications, approvals and authorizations required by Governmental Authorities (including without limitation the FCC) necessary to the ownership, occupation or use of its properties or the conduct of its business,
including, without limitation, certificates of need, and maintain the same at all times in full force and effect for so long as is required, and (ii) comply with all Requirements of Law in all material respects in respect of the conduct of its
business, the ownership of its property and the Collateral. 
 
5.9. Name Change. The Borrower shall notify the Lender at least thirty (30) days prior to the effective date of any change of its name, and prior to such effective date the Borrower shall have executed any required amended or
new Financing Statements, other documents pertaining to the Collateral, and other Loan Documents necessary to maintain and continue the perfected security interest of the Lender in all of its Collateral and shall have taken such other actions and
executed such documents as the Lender shall reasonably require. 
 
5.10. Covenants with respect to Patent Collateral and Intellectual Property Collateral. 
 
(a) The Borrower shall give the Lender prompt written notice of any rights, titles or interests Borrower may hereafter
obtain in, or with regard to, any discoveries and inventions and disclosures thereof (whether patentable or not), patent applications and patents, and similar interests provided by law, whether statutory or common law, in addition to the Patent
Collateral, or if the Borrower shall become entitled to the benefit of any patent application or patent for any reissue, re-examination, division, continuation, renewal, extension, or continuation-in-part of any item of Patent Collateral or any
improvement on any item of Patent Collateral, and the Borrower agrees that all provisions this Agreement and the Security Agreement shall automatically apply and attach thereto (whether or not such notice is given) and the same shall thereupon be
deemed included in Appendix A of the Security Agreement for all purposes. The Borrower hereby authorizes the Lender to modify the Security Agreement at any time and from time to time by amending Appendix A thereto, so as to include any
future 

 

20 

patents and patent applications including those referred to in the immediately preceding sentence. 
 
(b) The Borrower shall give the Lender prompt
written notice of any rights, titles or interests Borrower may hereafter obtain in, or with regard to, any material design, industrial property, work of authorship, maskwork, trademark, service mark, trade name, trade dress, trade secret, database,
confidential or proprietary information or other intellectual property or proprietary interest and similar interests provided by law, whether statutory or common law, in addition to the Intellectual Property Collateral, and the Borrower agrees that
all provisions of this Agreement and the Security Agreement shall automatically apply and attach thereto (whether or not such notice is given) and the same shall thereupon be deemed included in Appendix A of the Security Agreement for all
purposes. The Borrower hereby authorizes the Lender to modify the Security Agreement at any time and from time to time by amending Appendix A thereto, so as to include any future design, industrial property, work of authorship, maskwork,
trademark, service mark, trade name, trade dress, trade secret, database, confidential or proprietary information or other intellectual property or proprietary interest. To the extent consistent with its rights, titles or interests in the
Intellectual Property Collateral, Borrower shall keep properly-identified copies and other embodiments of the Intellectual Property Collateral at its principal place of business identified in the Security Agreement, and shall promptly notify Lender
of the details that make the keeping of such copies and embodiments inconsistent with Borrower’s rights, titles or interests in the Intellectual Property Collateral. Upon the occurrence of an Event of Default, Borrower shall make all such
copies and embodiments available to Lender. 
 
(c) The Borrower shall have the right, with the prior written consent of the Lender, which consent will not be unreasonably withheld, to bring any administrative actions or lawsuits in its own name to enforce or protect the Patent
Collateral and Intellectual Property Collateral. In the event that any item of Patent Collateral or Intellectual Property Collateral is believed infringed or misappropriated by a third party, Borrower shall notify the Lender promptly after it learns
thereof and shall, if consistent with its reasonable business judgment or if requested by Lender in its reasonable business judgment, promptly sue for infringement or misappropriation and to recover any and all damages for such infringement or
misappropriation, and take such other actions as are appropriate under the circumstances to protect such Patent Collateral or Intellectual Property Collateral. In the event of an action or suit under this subsection, the Lender shall, (i) if
necessary for just adjudication under Federal Rule of Civil Procedure 19 or a comparable state rule of civil procedure, be joined as a nominal party to such suit, (ii) be apprised of any such proceedings or suits, and (iii) in any such proceeding or
suit in which Lender is named as a party, be represented by counsel of Lender’s choosing in such proceeding or suit, at Borrower’s expense. Any costs or expenses incurred by the Lender pursuant hereto shall be payable by the Borrower.

 
(d) Borrower shall notify
Lender immediately if it knows or has reason to know that any material item of Patent Collateral or Intellectual Property Collateral may become abandoned or dedicated to the public, or of any adverse determination or development (including the
institution of, or any such determination or development in, 

 

21 

any proceeding in the U.S. Patent and Trademark Office or any court) regarding Borrower’s ownership of any item of Patent Collateral or
Intellectual Property Collateral, its right to register the same or to keep and maintain the same, or concerning the scope of the same. 
 
(e) The Borrower shall have the duty, through counsel reasonably acceptable to the Lender, to prosecute diligently any
patent applications of the Patent Collateral pending as of the date of this Agreement or thereafter, to make application on all patentable but unpatented properties and to do any and all other acts which are reasonably necessary or desirable to
preserve, maintain and pursue all rights in the Patent Collateral, with all expenses incurred in connection with the foregoing to be borne by the Borrower 
 
(f) The Borrower shall have the duty, through counsel reasonably acceptable to the Lender, to submit and prosecute
diligently any applications or other governmental filings with respect to the Intellectual Property Collateral and to do any and all other acts which are reasonably necessary or desirable to preserve, maintain and pursue all rights in the
Intellectual Property Collateral, with all expenses incurred in connection with the foregoing to be borne by the Borrower. 
 
ARTICLE VI. 
NEGATIVE COVENANTS 
 
The Borrower covenants and agrees that, until the termination of this Agreement and the payment in full of all principal and interest with respect to the Term Loan together with all other amounts then due and owing hereunder:

 
6.1. Merger, Consolidation, Ownership.
The Borrower will not sell all or substantially all of the assets or any of the equity interests in the Borrower, or enter into any agreement to do so or to merge or consolidate or otherwise combine the Borrower with or into any Person, nor shall
the Borrower liquidate, wind up or dissolve, or enter into any consolidation, merger or any other such combination or agree to do any of the foregoing. 
 
6.2. Liens and Encumbrances. The Borrower will not create, assume or suffer to exist any deed of trust, mortgage or encumbrance,
lien (including a lien of attachment, judgment or execution) or security interest (including the interest of a conditional seller of goods), securing a charge or obligation, in or on any of its real or personal property (including without limitation
the Collateral), whether now owned or hereafter acquired, except for Permitted Liens. 
 
6.3. Intentionally Omitted. 
 
6.4. Transactions with Related Persons. The Borrower will not directly or indirectly make any loan or advance to, or purchase, assume or guarantee any debt to or from, any of its officers,
directors, stockholders or Affiliates, or subcontract any operations to any Affiliate, or enter into any transaction with any Affiliate, except (a) in the ordinary course of and pursuant to the reasonable requirements of the Borrower’s business
and (b) upon fair and reasonable terms no less favorable to the Borrower than the Borrower would obtain in a comparable arm’s-length transaction with a Person not an Affiliate. 
 

22 

 
6.5.
Transactions Affecting the Collateral. The Borrower will not enter into any transaction that materially adversely affects a material portion of the Collateral. Notwithstanding the foregoing, the Borrower may sell certain assets as provided in
Section 6.3 hereof. 
 
6.6. Dividends and
Distributions. The Borrower will not declare, make or permit (or incur any liability to declare, make or permit) any dividend or other distribution in respect of any equity interests in the Borrower except for distributions to the holders of
such equity interests to cover the income tax effects on such equity holders of earnings attributable to the Borrower. 
 
6.7. No Margin Stock. The Borrower will not directly or indirectly apply any part of the proceeds of the Term Loan to the
purchasing or carrying of any “margin stock” within the meaning of Regulations U or X of the Board of Governors of the Federal Reserve System, or any regulations, interpretations or rulings thereunder, nor will the Borrower own or hold any
such margin stock. 
 
6.8. ERISA. The
Borrower will not (i) engage, or permit any ERISA Affiliate to engage, in any transaction described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to engage, in any prohibited transaction described in Section 406 of ERISA or
4975 of the IRC for which a statutory or class exemption is not available or a private exemption has not previously been obtained from the U.S. Department of Labor; (iii) adopt or permit any ERISA Affiliate to adopt any employee welfare benefit plan
within the meaning of Section 3(1) of ERISA which provides health or medical benefits to employees after termination of employment other than as required by Section 601 of ERISA or applicable law; (iv) fail to make any contribution or payment to any
Multiemployer Plan which it or any ERISA Affiliate may be required to make under any agreement relating to such Multiemployer Plan, or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to fail, to pay any required installment or
any other payment required under Section 412 of the IRC on or before the due date for such installment or other payment. 
 
6.9. Covenants with respect to Patent Collateral and Intellectual Property Collateral. The Borrower will not enter into any
agreement (including with limitation any license agreement) or otherwise take any action or omit any action that is inconsistent with the Borrower’s obligations and undertakings under this Agreement or that will divest, limit or restrict any of
Borrower’s rights, titles or interests in the Patent Collateral or Intellectual Property Collateral. Without limiting the foregoing sentence, Borrower will not commit any act or omit any act without Lender’s prior written consent whereby
any item of Patent Collateral or Intellectual Property Collateral may become abandoned, invalidated or dedicated to the public, and shall continue to mark any products covered by a patent with the relevant patent number as required by applicable
patent laws. 
 
ARTICLE VII. 
EVENTS OF DEFAULT 
 
7.1. Events of Default. The occurrence of any one or more of the following events shall constitute an “Event of Default”:

 

23 

 
(a) The Borrower fails to pay when due any principal of or interest on the Term Note when the same becomes due or fails to pay any fees, expenses or other payments hereunder or under any other Loan Document; 
 
(b) The Borrower fails or neglects to
observe, perform or comply with any term, provision, condition or covenant contained herein or in any Loan Document except those specified in subsection (a) above (and except to the extent that violations of any such provisions or covenants
otherwise trigger an Event of Default under any of the other subparagraphs of this Section 7.1), and such failure, if capable of being remedied, shall remain unremedied for fifteen (15) days after the earlier of (i) notice thereof from the
Lender or (ii) the Borrower acquires knowledge thereof; 
 
(c) The Borrower materially fails or neglects to observe, perform or comply with any term, provision, condition or covenant contained in any contract or agreement material to the business or operations or condition,
financial or otherwise, of the Borrower, and such failure or neglect continues beyond any grace period provided for in such material contract or agreement. 
 
(d) If any representation or warranty made in writing by or on behalf of the Borrower in this Agreement, in the other Loan
Documents or in any other agreement now existing or hereafter executed between the Borrower and the Lender in connection with any Loan Document, or in connection with the transactions contemplated hereby or thereby, shall prove to have been false or
misleading in any material respect when made; 
 
(e) The occurrence of an “Event of Default” under any of the Loan Documents; 
 
(f) The occurrence of any material uninsured damage to or loss, theft or destruction of the Collateral or other assets of
the Borrower that has a Material Adverse Effect; 
 
(g) The Borrower shall (i) file a voluntary petition or commence a voluntary case seeking liquidation, winding-up, reorganization, dissolution, arrangement, readjustment of debts or any other relief under the Bankruptcy Code
or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to controvert in a timely and appropriate manner, any petition or case of the type described in subsection
(h) below, (iii) apply for or consent to the appointment of or taking possession by a custodian, trustee, receiver or similar official for or of itself of all or a substantial part of its properties or assets, (iv) fail generally to pay its debts
generally as they become due, or (v) make a general assignment for the benefit of creditors; 
 
(h) Any involuntary petition or case shall be filed or commenced against the Borrower seeking liquidation, winding-up,
reorganization, dissolution, arrangement, readjustment of debts, the appointment of a custodian, trustee, receiver or similar official for it or all or a substantial part of its properties or any other relief under the Bankruptcy Code or under any
other applicable bankruptcy, insolvency or similar law now or 

 

24 

hereafter in effect, and such petition or case shall continue undismissed and unstayed for a period of sixty (60) days; or an order, judgment
or decree approving or ordering any of the foregoing shall be entered in any such proceeding; 
 
(i) A notice of lien, levy or assessment is filed of record against any portion of the assets of the Borrower by the
United States, or any department, agency or instrumentality thereof, or by any other Governmental Authority or if any taxes or debts owing at any time or times hereafter to any one of them becomes a lien or encumbrance (other than a Permitted Lien)
upon the Collateral or any other asset of the Borrower, and the same is not dismissed, released, discharged or stayed pending appeal within thirty (30) days after the same becomes a lien or encumbrance or, in the case of ad valorem taxes, prior to
the last day when payment may be made without penalty; 
 
(j) The entry of a judgment or the issuance of a warrant of attachment, execution or similar process against the Borrower or any of its assets that are $5,000 or more in excess of proceeds of insurance which shall not be
dismissed, discharged, stayed pending appeal or bonded within sixty (60) days after entry; 
 
(k) For any reason other than the satisfaction in full of all Obligations and termination of this Agreement, (i) any Loan
Document shall cease to be in full force and effect at any time or is declared to be null and void or (ii) the Borrower denies that it has any further liability under any Loan Document to which it is a party or gives notice to such effect;

 
(l) The occurrence of any
Material Adverse Change; 
 
(m)
The existence of any security interests, liens or other encumbrances at any time other than Permitted Liens; 
 
(n) The Borrower or any of its ERISA Affiliates shall have made a complete or partial withdrawal from a Multiemployer
Plan, and, as a result of such complete or partial withdrawal, the Borrower or any of its ERISA Affiliates incurs a withdrawal liability; or a Multiemployer Plan enters reorganization status under Section 4241 of ERISA, and, as a result thereof the
Borrower’s or any of its ERISA Affiliates’ annual contribution requirements with respect to such Multiemployer Plan increases; or 
 
(o) any Termination Event with respect to any Employee Plan shall have occurred. 
 
ARTICLE VIII. 
RIGHTS AND REMEDIES AFTER EVENT OF DEFAULT 
 
8.1. Remedies: Acceleration, etc. Upon and at any time after the occurrence and during the continuance
of any Event of Default, the Lender may take any or all of the following actions at the same or different times: 
 

25 

 
(a) Declare all or any part of the outstanding principal amount of the Term Loan, all unpaid interest accrued thereon, and all other amounts (excluding unearned interest) payable under this Agreement, the Term Note and the other Loan
Documents to be immediately due and payable, whereupon such outstanding principal amounts, accrued interest and other such amounts shall become immediately due and payable without presentment, demand, protest, notice of intent to accelerate or other
notice or legal process of any kind, all of which are hereby knowingly and expressly waived by the Borrower (provided that, upon the occurrence of an Event of Default pursuant to Sections 7.1(h) or (i), all of such outstanding
principal amounts, accrued interest and other such amounts shall automatically become immediately due and payable); 
 
(b) Exercise all rights and remedies available to it under this Agreement, the other Loan Documents and applicable law.

 
8.2. Right of Setoff. The Lender may, and
is hereby authorized by the Borrower, at any time and from time to time, to the fullest extent permitted by applicable law, to set off any other indebtedness at any time owing by the Lender to or for the credit or the account of the Borrower against
any or all of the Obligations now or hereafter existing, which are then due and payable. The Lender agrees to notify the Borrower ten (10) days prior to any such setoff or application. 
 
ARTICLE IX. 
MISCELLANEOUS 
 
9.1. Survival. The representations and warranties made by or on behalf of the Borrower in this Agreement and in each other Loan Document shall survive the execution and delivery of this
Agreement and each such other Loan Document until the satisfaction of all of Obligations and the termination of this Agreement. 
 
9.2. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS HAVE BEEN
EXECUTED, DELIVERED AND ACCEPTED IN, AND SHALL BE DEEMED TO HAVE BEEN MADE IN, TEXAS AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS (WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF).
THE BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE COURT WITHIN HARRIS COUNTY, TEXAS OR ANY FEDERAL COURT LOCATED WITHIN THE SOUTHERN DISTRICT OF TEXAS FOR ANY PROCEEDING INSTITUTED HEREUNDER OR UNDER ANY OF THE OTHER LOAN DOCUMENTS, OR
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, OR ANY PROCEEDING TO WHICH THE LENDER OR THE BORROWER IS A PARTY, INCLUDING ANY ACTIONS BASED UPON, ARISING OUT OF, OR IN CONNECTION WITH, ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR THE BORROWER. THE BORROWER IRREVOCABLY AGREES TO BE BOUND (SUBJECT TO ANY AVAILABLE RIGHT OF APPEAL) BY ANY JUDGMENT RENDERED OR RELIEF 

 

26 

GRANTED THEREBY AND FURTHER WAIVES ANY OBJECTION THAT IT MAY HAVE BASED ON LACK OF JURISDICTION OR IMPROPER VENUE OR FORUM NON CONVENIENS
TO THE CONDUCT OF ANY SUCH PROCEEDING. THE BORROWER CONSENTS THAT ALL SERVICE OF PROCESS BE MADE BY REGISTERED OR CERTIFIED MAIL DIRECTED TO IT AT ITS ADDRESS SET FORTH HEREINBELOW, AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE
EARLIER OF ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE PREPAID AND PROPERLY ADDRESSED. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
AFFECT THE RIGHT OF ANY PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY IN THE COURTS OF ANY OTHER JURISDICTION. THE BORROWER, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, AND THE LENDER, HEREBY WAIVE, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. 
 
9.3. Notice. All notices and other communications provided for hereunder or in connection herewith
shall be in writing (including telegraphic, telex, facsimile transmission or cable communication) and mailed, telegraphed, telexed, telecopied, cabled or delivered to the party to be notified at the following addresses: 
 

	 If to the Lender:
	  	 Varitek Industries, Inc.

	 	  	 16360 Park Ten Place, Suite 200

	 	  	 Houston, Texas 77084

	 	  	 Attention: Henry Houston, Chief Financial Officer

	 	  	 Telephone: (281) 599-4948

	 	  	 Telecopier: (281) 599-1162

	
	 With copies to:
	  	 Andrews & Kurth L.L.P.

	 	  	 600 Travis, Suite 4200

	 	  	 Houston, Texas 77002

	 	  	 Attention: Meredith S. Mouer

	 	  	 Telephone: (713) 220-4758

	 	  	 Telecopier: (713) 220-4285

	
	 If to the Borrower:
	  	 Cislunar Networks Corp.

	 	  	 P. O. Box 3794

	 	  	 Joplin, MO 64803

	 	  	 Attention: Mark K. Sullivan

	 	  	 Telephone: (417) 624-8918

	 	  	 Telecopier: (417) 624-8920

 
or to such other address
as any party may designate for itself by like notice to all other parties hereto. All such notices and communications shall be deemed to have been given (i) if mailed as 

 

27 

provided above by any method other than overnight delivery service, on the third Business Day after deposit in the mails, (ii) telegraphed,
telexed, telecopied or cabled, when delivered to the telegraph company, confirmed by telex answerback, transmitted by telecopier or delivered to the cable company, respectively, or (iii) if delivered by hand, or mailed by overnight delivery services
upon delivery. 
 
9.4. Amendments, Waivers,
etc. Except as may be otherwise specifically set forth in this Agreement or the other Loan Documents, neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be amended, modified, waived, discharged or
terminated, and no consent to any departure by the Borrower from any provision hereof or thereof may be given, except in a writing signed by all parties hereto. 
 
9.5. Rights and Remedies Cumulative, Non-Waiver, etc. The enumeration of the Lender’s rights and
remedies set forth in this Agreement and the other Loan Documents is not intended to be exhaustive, and the exercise by the Lender of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given hereunder, under the other Loan Documents or under any other agreement between the Borrower and the Lender, or any of them, or that may now or hereafter exist in law or in
equity or by suit or otherwise. No delay or failure to take action on the part of the Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or
privilege preclude other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default. No course of dealing between the Borrower and the Lender or their agents or
employees shall be effective to change, modify or discharge any provision of this Agreement or to constitute a waiver of any Event of Default. No notice to or demand upon the Borrower in any case shall entitle the Borrower to any other or further
notice or demand in similar or other circumstances or constitute a waiver of the right of the Lender to exercise any right or remedy or take any other or further action in any circumstances without notice or demand. 
 
9.6. Binding Effect, Assignment. All of the terms of
this Agreement shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of the Borrower and the Lender; provided, however, that the Borrower may not sell, assign or transfer this Agreement or any
portion hereof or thereof, including, without limitation, any of its rights, title, interests, remedies, powers and duties hereunder or thereunder. 
 
9.7. Severability. To the extent any provision of this Agreement is prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 
9.8. Entire Agreement. THIS AGREEMENT AND THE DOCUMENTS AND INSTRUMENTS EXECUTED AND DELIVERED
CONTEMPORANEOUSLY HEREWITH EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES HERETO AND SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS OF SUCH PERSONS, VERBAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF. THIS AGREEMENT, THE
TERM NOTE, 

 

28 

THE OTHER LOAN DOCUMENTS AND THE INSTRUMENTS AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 
9.9. Interpretation. The captions to the various sections and subsections of this Agreement have been
inserted for convenience only and shall not limit or affect any of the terms hereof. Unless the context otherwise requires, words in the singular include the plural and words in the plural include the singular, and the use of any gender shall be
applicable to all genders. 
 
9.10.
Counterparts, Effectiveness. This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which, when so executed and delivered, shall be an original, but all of which shall
together constitute one and the same instrument. This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto. 
 
9.11. Conflict of Terms. The provisions of the other Loan Documents are incorporated in this Agreement
by this reference thereto. Except as otherwise provided in this Agreement and except as otherwise provided in the other Loan Documents, if any provision contained in this Agreement is in conflict with, or inconsistent with, any provision of the
other Loan Documents, the provision contained in this Agreement shall control. 
 
9.12. Injunctive Relief. The Borrower recognizes that in the event it fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, any remedy of law may
prove to be inadequate relief to the Lender. The Borrower therefore agrees that the Lender shall be entitled to temporary and permanent injunctive relief without the necessity of proving actual damages in any case where a remedy at law would prove
to be inadequate relief. 
 
9.13.
Confidentiality. Except as required by Requirement of Law, the Borrower hereby agrees that this Agreement and the other Loan Documents are for the Borrower’s confidential use only and will not be disclosed by the Borrower or any of the
Borrower’s representatives, without the Lender’s prior written consent, to any Person other than the Borrower’s accountants, attorneys and other advisors, and then only in connection with the transactions contemplated hereby or
thereby and only on a confidential and need-to-know basis, except that the Borrower may make such disclosures of the terms and conditions of this Agreement and the other Loan Documents as the Borrower is required by Requirement of Law or compulsory
legal process to make; provided, however, that if such disclosure is required by Requirement of Law or compulsory legal process, the Borrower agrees to give the Lender reasonable notice to the extent permitted by law to afford the Lender the
opportunity to seek a protective order and to cooperate with the Lender in securing such a protective order. The Borrower agrees that the Borrower will permit the Lender to review and approve any reference to the Lender in connection with this
Agreement, the other Loan Documents or the transactions contemplated hereby or thereby contained in any press release or similar public disclosure prior to public release. 
 
[Signature Page Follows] 
 

29 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
their corporate names by their duly authorized corporate officers as of the date first above written. 
 

	 LENDER:

	
	 VARITEK INDUSTRIES, INC.

	
	 By:
	 	 /s/    ZANE
RUSSELL        

	 Name:
	 	 Zane Russell

	 Title:
	 	 COO

	
	 BORROWER:

	
	 CISLUNAR NETWORKS CORP.

	
	 By:
	 	 /s/    MARK
SULLIVAN        

	 Name:
	 	 Mark K. Sullivan

	 Title:
	 	 President

 

30 

SCHEDULE 1.1 
 
Existing Obligations 
 
Equipment Lease, dated as of April 24, 2001, by and between Mobilcom Pittsburg, Inc. (“Mobilcom”), as the lessor
party thereto, and Borrower, as the lessee party thereto, as assigned by Mobilcom to Girard National Bank (“Girard Bank”) pursuant to that certain Assignment of Commercial Lease, dated as of May 1, 2001, executed by Mobilcom in favor of
Girard Bank. 
 
Master Lease, dated as of May 15,
2000, by and between Solarcom, LLC (“Solarcom”), as the lessor party thereto, and the Borrower, as the lessee party thereto, as assigned in part by Solarcom to CIT Group (“CIT”) pursuant to that certain Assignment of Contract
Without Recourse, dated as of June 28, 2000, by and between Solarcom and CIT. 
 
Equipment Lease Agreement, dated as of October 1, 2002, by and between Thorium Network Services Inc. (“Thorium”), as the lessor party thereto, and Borrower, as the lessee party
thereto. 
 

SCHEDULE 4.4 
 
Subsidiaries 
 
None.Security Agreement dated as of February 11, 2003

 
Exhibit 10.27

 
SECURITY AGREEMENT 
 
THIS SECURITY AGREEMENT, effective as of February 11,
2003 (as amended or otherwise modified from time to time, the “Agreement”), is made by Cislunar Networks Corp., a Delaware corporation (the “Debtor”), in favor of Varitek Industries, Inc., a Texas corporation (the “Secured
Party”). 
 
WITNESSETH: 
 
WHEREAS, the Secured Party has made a loan (the
“Loan”) to the Debtor evidenced by the Promissory Note dated of even date herewith (as amended or otherwise modified from time to time, the “Term Note”) pursuant to the terms of that certain Loan Agreement, dated and effective as
of even date herewith (as amended or otherwise modified from time to time, the “Loan Agreement”), by and between the Debtor and the Secured Party; and 
 
WHEREAS, it is a condition precedent to the Secured Party’s entering into the Loan contemplated by the
Loan Agreement that the Debtor shall have executed and delivered to the Secured Party, among other things, this Agreement providing for the grant to the Secured Party of first priority liens upon, continuing security interests in, and rights of
set-off against, certain property of the Debtor. 
 
NOW, THEREFORE, in consideration of the promises herein contained, and in order to induce the Secured Party to make the Loan, the parties agree as follows: 
 
1.    Certain Definitions. 
 
(a)    The terms “accounts,” “chattel paper,” “documents,”
“equipment,” “fixtures,” “general intangibles,” “goods,” “instruments,” “inventory,” “proceeds,” “supporting obligations,” and any other terms used herein and defined in
the Uniform Commercial Code as adopted and in effect in the State of Texas (the “UCC”) and not otherwise defined herein shall have the respective meanings assigned to those terms in the UCC. 
 
(b)    “Related Rights” shall
mean all chattel paper and/or instruments relating to the accounts, equipment, inventory, goods, fixtures, supporting obligations and general intangibles included in the definition of Collateral set forth below, and all rights now or hereafter
existing in and to all security agreements, leases, licenses and other contracts, agreements and commitments securing or otherwise relating to such accounts, equipment, inventory, goods, fixtures, supporting obligations, general intangibles or any
such chattel papers and/or instruments, or the use of any of the foregoing. 
 
(c)      Capitalized terms used herein and not otherwise defined herein shall have the respective meanings assigned to those terms in the Loan Agreement. 
 
2.    Grant of First Priority Liens, Security
Interests, Rights of Set-Off and License. 
 
(a)    As collateral security for the prompt satisfaction of the Obligations, the Debtor hereby pledges, assigns, conveys, transfers and grants to the Secured Party first priority liens and mortgages upon,
continuing security interests in, and rights of set-off against, all of the Debtor’s 

property, rights and other assets described below, whether now owned or existing or hereafter acquired or arising and wherever located
(collectively, the “Collateral”): 
 
(i)    all of the Debtor’s accounts, equipment, inventory, goods, fixtures, supporting obligations and general intangibles (including without limitation all things in action, payment intangibles, software,
inventions and discoveries (whether patentable or not), industrial property, designs, works of authorship, maskworks, trademarks, service marks, trade dress, trade names, trade secrets, databases, customer and vendor lists, proprietary or
confidential data or information, contracts, licenses, and the goodwill of the Debtor’s businesses, and the proceeds thereof and the income thereon), and all Related Rights; and 
 
(ii)    all income, products, proceeds, cash equivalents, additions and
attachments to, and accessions, reissues, re-examinations, divisions, continuations, continuations-in-part, renewals, extensions, and improvements of, any and all property described in Subsection (i) of this Section 2(a); and 
 
(iii)    without limiting
subsections (i) or (ii) above, all of the property, rights and other assets more fully described on Appendix A attached hereto and incorporated herein by this reference and all Related Rights. 
 
(b)    The Debtor shall cooperate with the
Secured Party in taking all reasonable actions necessary to perfect and maintain the Secured Party’s first priority liens upon, continuing security interests in, and rights of set-off against, the Collateral. 
 
(c)    Debtor hereby grants to Secured
Party a nonexclusive, royalty-free, worldwide right and license in, under and to each and every item of Patent Collateral and Intellectual Property Collateral, for so long as any Obligations remain outstanding, to make, use, sell, offer for sale,
import, export and otherwise fully exploit such Patent Collateral and Intellectual Property Collateral, which right and license may be freely transferred, assigned or sublicensed by Secured Party subject to the terms and conditions of this Agreement
and the Loan Agreement. 
 
3.    Representations and Warranties.    To induce the Secured Party to enter into this Agreement, the Debtor represents and warrants to the Secured Party as follows:

 
(a)    After the Debtor
applies the proceeds of the Loan in accordance with Section 2.6 of the Loan Agreement, the Debtor will at all times hold legal title to or own the Collateral free and clear of any lien, security interest, right of set-off or other charge or
encumbrance except for the liens, security interests and rights of set-off created by this Agreement or other encumbrances permitted pursuant to the provisions of the Loan Agreement. This Agreement creates valid liens, security interests and rights
of set-off in favor of the Secured Party in the Collateral as security for all of the Obligations. 
 
(b)    The Debtor’s principal place of business and chief executive office are located at 2400 Country Club Road,
Joplin, Missouri 64804. 
 

2 

 
4.    Covenants and Agreements. 
 
(a)    Protection and Preservation of Collateral and Security Interests.    The Debtor does hereby covenant and agree with the Secured Party that, until
the Term Note is paid in full and all other obligations under the Loan Documents are satisfied in full, the Debtor will take all reasonable and necessary steps available to the Debtor to protect and preserve the Collateral and the liens, security
interests and rights of set-off granted to the Secured Party pursuant to this Agreement, together with the priority of such liens, security interests and rights of set-off, and to protect and maintain the value of the Collateral. The Debtor agrees
that the Debtor has the risk of loss with respect to the Collateral, and the Secured Party has no duty to collect any income accruing on the Collateral or to preserve any rights relating to the Collateral. 
 
(b)    Possession of
Collateral.    The Collateral shall remain in the Debtor’s constructive possession and control at all times, at the Debtor’s risk of loss. 
 
(c)    Filings by Secured Party Authorized.    The Debtor
hereby authorizes the Secured Party to file financing statements, without the signature of the Debtor, describing the Collateral and other documents necessary or convenient to record, preserve and perfect its security interest and priority granted
under this Agreement and the Loan Agreement. 
 
(d)    Filing Reproductions.    At the option of the Secured Party, a photocopy or other reproduction of this Agreement or of a financing statement covering the Collateral shall be
sufficient and may be filed as a financing statement. 
 
(e)    Delivery of Information.    The Debtor will promptly deliver to the Secured Party notice of, and all additional information that the Debtor may have or receive with respect to,
(i) any security interest, or other lien, right of set-off, charge, encumbrance or claim made or asserted against any of the Collateral (other than liens, security interests or rights of set-off in favor of the Secured Party) and (ii) the occurrence
of any other event that would have a material adverse effect on the aggregate value of the Collateral or on the liens, security interests and rights of set-off created hereby. 
 
(f)    Financing Statement Filings; Notifications.    The
Debtor recognizes that financing statements and other documents pertaining to the Collateral have been or will be filed with the office of the Secretary of State of the State of Delaware and with the office of the county clerk of the Missouri
counties of Newton and Jasper (or such other office of public records for any counties, states, and national governments as the Secured Party may, in its sole and absolute discretion, deem necessary or appropriate). The Debtor will immediately
notify the Secured Party of any condition or event that may change the proper location for the filing of any financing statements or other public notice or recordings for the purpose of perfecting a lien upon, security interest in, or right of
set-off against, the Collateral. Without limiting the generality of the foregoing, the Debtor will: (a) notify the Secured Party within a reasonable period of time in advance of any change to a jurisdiction, (i) in the location of the Debtor’s
state of organization or place of business, (ii) in the “location” of the Debtor within the meaning of the UCC or (iii) in the location of the Collateral; and (b) immediately notify the Secured Party of any change in the Debtor’s
name. In any notice furnished pursuant to this Section, the Debtor will expressly state that the notice is required by this Agreement and contains facts that will or may 
 

3 

require additional filings of financing statements or other notices for the purpose of continuing perfection of the Secured Party’s
liens upon, security interests in, and rights of set-off against, the Collateral. 
 
(g)    Control.    The Debtor will cooperate with the Secured Party in obtaining control, for purposes of the UCC, with respect to all applicable
Collateral. 
 
(h)    Satisfaction and Discharge.    The Secured Party does hereby covenant and agree with the Debtor that upon full payment of the Term Note and when all other obligations under the
Loan Documents (including, without limitation, this Agreement) are satisfied in full, at the written request and expense of the Debtor, the Secured Party will (a) release the Debtor from the first priority liens, security interests and rights of
set-off granted hereunder, (b) release, reassign and transfer any Collateral in its possession to the Debtor and (c) declare this Agreement to be of no further force or effect. 
 
(i)    Exercise of License Rights and Delivery of Patent Collateral and Intellectual
Property Collateral.    Secured Party covenants and agrees that it shall exercise its rights under the license granted in Section 2(c) of this Agreement only if an Event of Default shall have occurred and be continuing and
only to the extent that required third-party consents, if any, have been obtained or obviated by applicable law. Upon notice from the Secured Party of its intention to exercise its rights under such license, Debtor shall transfer and deliver to
Secured Party all embodiments of Patent Collateral or Intellectual Property Collateral and any other materials necessary or convenient for Secured Party to exercise its rights under such license. Secured Party may solicit and employ or contract with
any director, officer, employee, agent, or contractor of Debtor in order to exercise its rights under such license. Debtor has obtained or will use its best efforts to obtain any third-party consents necessary for Secured Party to exercise its
rights under such license. 
 
5.    Default. 
 
(a)    Default Remedies Generally.    In addition to and without limiting any other rights and remedies given to the Secured Party by this Agreement, the Loan Agreement, the
other Loan Documents and any and all applicable laws (including, without limitation, the right to declare the Obligations under the Loan Agreement, the Term Note and the other Loan Documents immediately due and payable as set forth in the Loan
Agreement), to the extent permitted by applicable law, the Secured Party may, upon the happening and during the continuance of any Event of Default, collect, sell in one or more sales, lease, or otherwise transfer any or all of the Collateral, in
its then condition or following any commercially reasonable preparation or processing, in such order as the Secured Party may elect, and any such sale may be made either at public or private sale at its place of business or elsewhere, either for
cash or upon credit or for future delivery, at such price as the Secured Party may reasonably deem fair. No purchase or holding of the Collateral by the Secured Party shall be deemed a retention by the Secured Party in satisfaction of the
Obligations. If any applicable provision of the UCC or other applicable law requires the Secured Party to give reasonable notice of any such sale or disposition or other action, and reasonable notice is not defined in such law, the Debtor hereby
agrees that ten (10) days’ prior written notice shall constitute reasonable notice. To the extent permitted by applicable law, any sale hereunder may be conducted by an auctioneer or any officer or agent of 

 

4 

the Secured Party. The Secured Party may require the Debtor to assemble the Collateral and make it available to the Secured Party at a place
designated by the Secured Party which is reasonably convenient to the Secured Party and the Debtor. After an Event of Default, the Secured Party shall have the right to take possession of any or all of the Collateral and to take possession of all
books, records, documents, information, agreements, and other property of the Debtor or in the Debtor’s possession or control relating to the Collateral, and for such purpose may enter upon any premises upon which any of the Collateral or any
of such books, records, information, agreements or other property are situated and remove the same therefrom without any liability for trespass or damages occasioned thereby. 
 
(b)    Direction of Certain Payments upon Default.    Upon the
occurrence and during the continuation of an Event of Default, the Secured Party shall have the right to notify the account debtors or obligors under any account, instrument, chattel paper or general intangible included in the Collateral of the
assignment of such account, instrument, chattel paper or general intangible to the Secured Party and to direct such account debtors or obligors to make payment of all amounts due or to become due to the Debtor thereunder directly to the Secured
Party or otherwise as the Secured Party shall direct and, upon such notification and at the expense of the Debtor and, to the extent permitted by applicable law, to enforce collection of any such account, instrument, chattel paper or general
intangible and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as the Debtor might have done. After the Secured Party has notified the account debtors and obligors, as provided above, all
amounts and proceeds (including instruments) received directly by the Debtor in respect of the account, instrument, chattel paper or general intangible shall be received in trust for the benefit of the Secured Party, shall be segregated from other
funds of the Debtor and shall be forthwith paid over to or at the direction of the Secured Party in the same form as so received (with any necessary endorsement) to be applied towards Debtor’s Obligations and the Debtor will not grant any
extension in the time of payment of any account, instrument, chattel paper or general intangible or otherwise adjust, settle or compromise the amount or payment of any account, instrument, chattel paper or general intangible or release in whole or
in part any account debtor or obligor thereof or allow any credit or discount thereon. 
 
(c)    Proceeds.    After the happening of any Event of Default, the proceeds of any sale or other transfer of the Collateral and all sums received or
collected by the Secured Party from or on account of the Collateral shall be applied by the Secured Party in the manner set forth in the UCC (unless otherwise required by any other applicable law). Notwithstanding the foregoing, the Secured Party
shall in any event be entitled to recover from such sums its reasonable costs and expenses incurred in enforcing its rights and remedies under this Agreement. In connection with the exercise of the Secured Party’s rights hereunder, the Debtor
hereby grants to the Secured Party, after the happening and during the continuance of an Event of Default, the right to receive, change the address for delivery, open, and dispose of mail addressed to the Debtor (to the extent that it relates to the
Collateral), and to execute, assign and endorse negotiable and other instruments, documents or other evidence of payment, shipment, storage, or transfer for any form of Collateral on behalf of and in the name of the Debtor. 
 
(d)    Deficiency.    The Debtor shall remain liable to the Secured Party for any unpaid Obligations, advances, costs, charges, and expenses (including without limitation reasonable
attorney’s fees) incurred by the Secured Party in connection herewith, together with interest 

 

5 

thereon, and shall pay the same immediately to the Secured Party at the Secured Party’s offices. If the Secured Party sells any of the
Collateral upon credit, the Debtor will be credited only with payments actually made by the purchaser, received by the Secured Party, and applied to the indebtedness of the purchaser; in the event the purchaser fails to pay for the Collateral
purchased, the Secured Party may resell the Collateral and the Debtor shall be credited with the proceeds of the sale. 
 
(e)    Secured Party’s Actions.    The Debtor waives (i) any right to require the
Secured Party to proceed against any person or entity, exhaust any Collateral, or have any person or entity joined with the Debtor in any suit arising out of the Obligations or this Agreement or pursue any other remedy in the Secured Party’s
power; (ii) any and all notice of acceptance of this Agreement or of creation, modification, rearrangement, renewal or extension for any period of any of the Obligations from time to time; and (iii) any defense arising by reason of any disability or
other such defense relating to disability. All dealings between the Debtor and the Secured Party, whether or not in connection with the Obligations, shall conclusively be presumed to have been had or consummated in reliance upon this Agreement. The
Debtor waives any benefit of and any right to participate in any Collateral or security whatsoever now or hereafter held by the Secured Party. The Debtor authorizes the Secured Party, without notice or demand and without any reservation of rights
against the Debtor and without affecting the Debtor’s liability hereunder or the Obligations, from time to time to (a) apply the Collateral or such other property and direct the order or manner of sale thereof as the Secured Party, in its sole
and absolute discretion, may determine; (b) renew, extend for any period, accelerate, modify, compromise, settle, or release the obligation of any person or entity with respect to any or all of the Obligations or the Collateral; and (c) waive,
enforce, modify, amend, or supplement any of the provisions of this Agreement. 
 
(f)    Transfer of Obligations and Collateral.    The Secured Party may transfer any or all of the Obligations, and upon any such transfer the Secured
Party may transfer any or all of the Collateral and shall be fully discharged thereafter from all liability with respect to the Collateral so transferred, and the transferee shall be vested with all rights, powers and remedies of the Secured Party
hereunder with respect to Collateral so transferred. With respect to any Collateral not so transferred, the Secured Party shall retain all rights, powers, and remedies hereby given. The Secured Party may at any time deliver any or all of the
Collateral to the Debtor whose receipt shall be a complete and full acquittance for the Collateral so delivered, and the Secured Party shall thereafter be discharged from any liability therefor. 
 
(g)    Cumulative
Security.    The execution and delivery of this Agreement in no manner shall impair or affect any other security (by endorsement or otherwise) for the Obligations. No security taken hereafter as security for the Obligations
shall impair in any manner or affect this Agreement. All such present and future additional security is to be considered as cumulative security. 
 
(h)    Continuing Agreement.    This is a continuing agreement, and the grant of the liens,
security interests and rights of set-off hereunder shall remain in full force and effect. All the rights of the Secured Party hereunder shall continue to exist until the Obligations are paid in full as the same becomes due and payable. 
 

6 

 
(i)    Exercise of Rights, Etc.    Time shall be of the essence for the performance of any act under this Agreement or the Obligations by the Debtor, but neither the Secured Party’s
acceptance of partial or delinquent payments nor any forbearance, failure or delay by the Secured Party in exercising any right shall be deemed a waiver of any obligation of the Debtor or of any right of the Secured Party or preclude any other or
further exercise thereof; and no single or partial exercise of any right shall preclude any other or further exercise thereof, or the exercise of any other right. 
 
(j)    Remedy and Waiver.    The Secured Party may remedy any
Event of Default and may waive any Event of Default without waiving the Event of Default remedied or waiving any prior or subsequent Event of Default. 
 
(k)    Compliance With Other Laws.    The Secured Party may comply with any applicable
state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 
 
(l)    Patent Collateral and
Intellectual Property Collateral. 
 
(i)    If any Event of Default shall have occurred and be continuing, the Debtor hereby irrevocably authorizes and empowers the Secured Party, but only after the occurrence and during the continuation of an Event
of Default, to make, constitute and appoint any officer or agent of the Secured Party as the Secured Party may select, in its exclusive discretion, as the Debtor’s true and lawful attorney-in-fact, with the absolute power to endorse the
Debtor’s name on all applications, documents, papers and instruments necessary for the Secured Party to use, maintain and preserve the Patent Collateral or Intellectual Property Collateral, or to grant or issue an exclusive or nonexclusive
license under the Patent Collateral or Intellectual Property Collateral to anyone else, or necessary for the Secured Party to assign, pledge, convey or otherwise transfer title in, or dispose of, the Patent Collateral or Intellectual Property
Collateral to anyone else. The Debtor hereby ratifies and confirms all that such attorney shall lawfully do or cause to be done by virtue hereof. 
 
(ii)    In an Event of Default shall occur and be continuing, the Secured Party may by written notice
to the Debtor take any or all of the following actions: (A) declare the entire right, title and interest of Debtor in each item of the Patent Collateral and Intellectual Property Collateral vested in Secured Party for its benefit under this
Agreement and the Loan Agreement, in which event such right, title and interest shall immediately vest in the Secured Party, and the Secured Party shall be entitled to exercise any and all powers of attorney available to it under this Agreement or
the Loan Agreement to execute, cause to be acknowledged and notarized and to record such absolute assignment with any applicable agency or forum; (B) take and use, practice, license, or sell any and all items of the Patent Collateral and
Intellectual Property Collateral; and (C) direct Debtor to refrain, and Debtor if so instructed shall refrain, from using or practicing any and all items of the Patent Collateral and Intellectual Property Collateral directly or indirectly, or
otherwise exercising or exploiting any right, power, 
 

7 

privilege, or immunity under any and all items of the Patent Collateral and Intellectual Property Collateral. 
 
6.    Miscellaneous. 
 
(a)    Further Assurances;
Attorney-in-Fact. 
 
(i)    The Debtor agrees that, from time to time, it will join with the Secured Party to execute and file and refile under the Uniform Commercial Code and other applicable laws and regulations such financing
statements, continuation statements and other documents and instruments in such offices as the Secured Party may deem necessary or appropriate, and wherever required or permitted by law, in order to perfect and preserve the Secured Party’s
security interest in the Collateral, and agrees to do such further acts and things (including without limitation making any notice filings with state tax or revenue authorities required to be made by account creditors in order to enforce any
accounts in such state), to provide such additional information and to execute and deliver to the Secured Party such additional conveyances, assignments, agreements and instruments as the Secured Party may reasonably require or deem advisable to
perfect, establish, confirm and maintain the security interests, liens and rights of set-off provided for herein, to carry out the purposes of this Agreement, to further assure and confirm unto the Secured Party its rights, powers and remedies
hereunder and to keep the Secured Party informed of the status and affairs of the Debtor. 
 
(ii)    The Debtor hereby irrevocably appoints the Secured Party its lawful attorney-in-fact, with
full authority in the place and stead of the Debtor and in the name of the Debtor, the Secured Party or otherwise, and with full power of substitution in the premises (which power of attorney, being coupled with an interest, is irrevocable for so
long as this Agreement shall be in effect), from time to time in the Secured Party’s sole and absolute discretion after the occurrence and during the continuance of an Event of Default (except for the actions described in clause (A)(1) below
which may be taken by the Secured Party without regard to whether an Event of Default has occurred) to take any action and to execute any instruments that the Secured Party may deem necessary or advisable to accomplish the purpose of this Agreement,
including, without limitation: 
 
(A) (1) to sign the name of the Debtor on any financing statement, continuation statement, notice or other similar document that, in the Secured Party’s opinion, should be made or filed in order to perfect or continue perfected
the security interests, liens and rights of set-off granted under this Agreement and (2) to sign the name of the Debtor on any title or ownership applications for filing with applicable state agencies to enable any motor vehicles now or hereafter
owned by the Debtor to be retitled and the Secured Party listed as lienholder thereon; 
 
(B) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to
become due under or in respect of any of the Collateral; 
 

8 

 
(C) to receive, endorse and collect any checks, drafts, instruments, chattel paper and other orders for the payment of money made payable to the Debtor representing any interest, income, dividend, distribution or other amount payable
in respect of any of the Collateral and to give full discharge for the same; 
 
(D) to obtain, maintain and adjust any property or casualty insurance with respect to all tangible Collateral insuring against risks of fire, theft and other risks as are customarily carried by
businesses of the size and character of the Debtor, and direct the payment of proceeds thereof to the Secured Party; 
 
(E) to pay or discharge taxes, liens or other encumbrances levied or placed on or threatened against the Collateral, the
legality or validity thereof and the amounts necessary to discharge the same to be determined by the Secured Party in its sole and absolute discretion, any such payments made by the Secured Party to become Obligations of the Debtor to the Secured
Party, due and payable immediately upon demand; 
 
(F) to file any claims or take any action or institute any proceedings that the Secured Party may deem necessary or advisable for the collection of any of the Collateral or otherwise to enforce the rights of the Secured Party with
respect to any of the Collateral; and 
 
(G) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with any and all of the Collateral as fully and completely as though the Secured Party were the absolute owner of the Collateral for all
purposes, and to do from time to time, at the Secured Party’s option, all other acts and things deemed necessary or appropriate by the Secured Party, in its sole and absolute discretion, to protect, preserve or realize upon the Collateral and
to more completely carry out the purposes of this Agreement. 
 
(iii)    If the Debtor fails to perform any covenant or agreement contained in this Agreement after written request to do so by the Secured Party, the Secured Party may itself
perform, or cause the performance of, such covenant or agreement and may take any other action that it deems necessary or appropriate for the maintenance and preservation of the Collateral or its security interest, lien and right of set-off therein.

 
(b)    Preservation of
Liability.    No failure on the part of the Secured Party to exercise, and no delay in exercising, any right hereunder or under the Term Note, the Loan Agreement or the other Loan Documents shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. 
 
(c)    Survival of Agreements.    All representations and warranties of the Debtor herein,
and all covenants and agreements herein not fully performed before the effective date of this Agreement, shall survive such date. 
 
(d)    Amendments and Waivers.    No amendment of any provision hereof shall be effective
unless it is in writing and signed by the Debtor and the Secured Party, and no waiver of 

 

9 

any provision of this Agreement and no consent to any departure therefrom by the Debtor shall be effective unless it is in writing and signed
by the Secured Party, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
 
(e)    Intentionally Omitted. 
 
(f)    Notices.    All notices and other communications
provided to any party hereto in connection with this Agreement shall be in writing (including telecopied communications) and shall be given to the intended recipient at the applicable address specified below, unless such address is changed by
written notice hereunder. All such notices and other communications shall be effective (i) if delivered by telecopy, when transmitted, (ii) if delivered by courier, when delivered at the address of the recipient specified below, or (iii) if mailed,
on the third calendar day after being deposited in the mails, by certified mail, postage prepaid, return receipt requested: 
 
(i)    If to the Debtor: 
 
    Cislunar Networks Corp. 
    P.O. Box 3794 
    Joplin, Missouri 64803-3794 
    Attention: Mark K. Sullivan 
    Telephone: (417) 624-8918 
    Telecopier: (417) 624-5756 
 
(ii)    If to the Secured Party: 
 
    Varitek Industries,
Inc. 
    16360 Park Ten Place, Suite 200 
    Houston, Texas 77084 
    Attention: Henry Houston, Chief Financial Officer 
    Telephone: (281) 599-4948 
    Telecopier: (281) 599-1162 
 
    with a copy to: 
 
    Andrews & Kurth
L.L.P. 
    600 Travis, Suite 4200 
    Houston, Texas 77002 
    Attention: Meredith S. Mouer 
    Telephone: (713) 220-4758 
    Telecopier: (713) 220-4285 
 
(g)    Governing Law.    THIS AGREEMENT SHALL BE SUBJECT TO
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAWS PRINCIPLES EXCEPT TO THE EXTENT THAT MATTERS OF PERFECTION AND VALIDITY OF THE LIENS, SECURITY INTERESTS AND RIGHTS
OF SET-OFF 
 

10 

HEREUNDER OR REMEDIES HEREUNDER, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF TEXAS. 
 
(h)    Landlord’s
Waivers.    The Debtor shall use reasonable efforts to furnish to the Secured Party, if requested, a landlord’s waiver of all liens with respect to any Collateral covered by this Agreement that is or may be located upon
leased premises, such landlord’s waivers to be in such form and upon such terms as are reasonably acceptable to the Secured Party. 
 
(i)    Successors and Assigns.    This Agreement shall inure to the benefit of, and shall
be binding upon, the Debtor and the Secured Party and their respective successors and assigns. 
 
(j)    Severability.    Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction, and, to this end, the provisions
hereof are severable. 
 
(k)    Attorney’s Fees.    If this Agreement is placed in the hands of an attorney for enforcement, the Debtor hereby undertakes to pay all reasonable costs and expenses of
administering and enforcing this Agreement, including, without limitation, reasonable attorney’s fees. 
 
(l)    Entire Agreement.    This Agreement, the Loan Agreement and the other Loan Documents
embody the entire agreement between the parties as to the subject matter hereof and shall supersede any prior agreement between the parties hereto, whether written or oral, relating to the subject matter hereof. Furthermore, in this regard, this
Agreement, the Loan Agreement and the other Loan Documents represent, collectively, the final agreement among the parties thereto and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There
are no unwritten oral agreements between the parties. In the event of any inconsistency between the terms of this Agreement and the Loan Agreement, the terms of the Loan Agreement shall govern and control. 
 
(Signature Page Follows) 
 

11 

 
IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be executed and delivered by its officer thereunto duly authorized effective as of the date first above written. 
 

	 DEBTOR: 

	
	 Cislunar Networks Corp

	
	 By:
	 	 /s/    MARK K.
SULLIVAN        

	 Name:
	 	 Mark K. Sullivan

	 Title:
	 	 President

 

	 SECURED PARTY:: 

	
	 Varitek Industries, Inc.

	
	 By:
	 	 /s/    ZANE
RUSSELL        

	 Name:
	 	 Zane Russell

	 Title:
	 	 COO

 
STATE OF
MISSOURI                     § 
 
COUNTY OF
JASPER                      § 
 
I, the undersigned Notary Public, do hereby attest that before me on this day personally appeared Mark K. Sullivan, known to me to be the
person whose name is subscribed to the foregoing instrument, who acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of said corporation.

 
GIVEN UNDER MY HAND and seal of office
this 7th day of February, 2003. 
 

	
	 /s/    CODY L.
WALKER        

	 Notary Public in and for the State of Missouri
 My Commission Expires: Aug. 30, 2005

 
STATE OF
                                      
   § 
 
COUNTY OF
                                     §

 
I, the undersigned Notary Public, do hereby
attest that before me on this day personally appeared                         , known to me to be the person whose name is
subscribed to the foregoing instrument, who acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of said corporation. 
 
GIVEN UNDER MY HAND and seal of office this
     day of February, 2003. 
 

	
	 /s/    Barbara Waters

	 Notary Public in and for the State of
                
 My Commission
Expires:

 

12 

 
APPENDIX
A 
 
COLLATERAL 
 
A.    Equipment and Inventory. 
 

	 DESCRIPTION
	  	 QUANTITY
	  	 SERIAL NUMBERS

	
	 CABINET, DIGITAL, 115VAC
 TIME DIVISION MULTIPLE ACCESS
 BASIC HUB
 #105-1260-005
	  	 1
	  	 1792

	
	 CABINET, INTERMEDIATE
 FREQUENCY, 115VAC
 TIME DIVISION MULTIPLE ACCESS
 BASIC HUB
 #105-1260-006
	  	 1
	  	 1781

	
	 CABINET, SECOND EXTENSION
 DIGITAL, 115VAC
 TIME DIVISION MULTIPLE ACCESS
 BASIC HUB
 #105-1260-008
	  	 1
	  	 1797

	
	 TERMINAL, WYSE-520
 WHITE
 WYSE 90110-35
 #435-2107-001
	  	 1
	  	 0VJ18600138

	
	 KEYBOARD, AMERICAN NATIONAL
 STANDARDS INSTITUTE
 WYSE 901879-01
 #435-2107-002
	  	 1
	  	 98420685

	
	 ASSEMBLY, SUBNETWORK CONTROL
 UNIT 1 LINK CONTROL PROCESSOR
 128/256/514
 WITH ETHERNET
 WITH NEW TIME DIVISION MULTIPLE
 ACCESS PROGRAM
 #150-1265-039
	  	 2
 

	  	 0255
  
 0254

	
	 MISCELLANEOUS SOFTWARE
 X.NMS SOFTWARE
 #325-1002
	  	 1
	  	 No S/N

 

A-1 

	 DESCRIPTION
	  	 QUANTITY
	  	 SERIAL NUMBERS

	
	 MISCELLANEOUS SOFTWARE
 X.STAR NET PROTOCOL
 #325-1002
	  	 1
	  	 No S/N

	
	 MISCELLANEOUS SOFTWARE
 TERMINAL CONTROL PROTOCOL /
 INTERNET PROTOCOL
 #325-1002
	  	 1
	  	 No S/N

	
	 MANUAL, SUBNETWORK
 CONTROL UNIT
 #101-370
 MAN.XNMS
 #101-510
	  	 1
	  	 No S/N

	
	 MANUAL, NETWORK CONTROL UNIT
 SYSTEM & SOFTWARE
 #101-200
	  	 1
	  	 No S/N

	
	 ASSEMBLY, BURST DEMODULATOR
 70 MEGA-HERTZ, DIFFERENTIAL
 QUADRATURE PHASE SHIFT KEYING
 BD501
 BUILD TO DRAWING
 #105-1321-003
	  	 2
 

	  	 1679842
  
 1669842

	
	 ASSEMBLY, 1:8 SWITCH, BURST
 DEMODULATOR
 BUILD TO DRAWING
 #105-1077-02
	  	 1
	  	 5521

	
	 ASSEMBLY, BURST DEMODULATOR
 70 MEGA-HERTZ, DIFFERENTIAL
 QUADRATURE PHASE SHIFT KEYING
 BD501
 BUILD TO DRAWING
 #150-1321-003
	  	 1
	  	 179

	
	 COMPUTER, SUN ULTRA
 10 WORKSTATION
 PURCHASE TO DRAWING
 #435-2108-001
	  	 1
	  	 PR93007792

	
	 SUN 21 INCH COLOR MONITOR
	  	 1
	  	 3651383-01

 

A-2 

	 DESCRIPTION
	  	 QUANTITY
	    	 SERIAL NUMBERS

	
	 TAPE DRIVE, 4-8 GB
 SOLARIS STORAGE UNI-PAK
 SUN SG-XTAPSLR-010A
 #435-1960-001
	  	 1
	    	 939C1443

	
	 CABLE, TAPE DRIVE, SMALL
 COMPUTER SYSTEMS INTERFACE
 68 TO 68, SUN X3858A
 PURCHASE TO DRAWING
 #344-0025-001
	  	 1
	    	 8425-9935

	
	 TAPE, MAGNETIC 150MB
 SUN SO-QD6
 #435-1469-001
	  	 1
	    	 No S/N

	
	 CABLE ASSEMBLY, ETHERNET, RJ45,
 25FT
 CROSS-PINNED, BLACK
 BOX EYN737M-0025
 #345-5979-001
	  	 1
	    	 No S/N

	
	 ASSEMBLY, NETWORK CONTROL
 UNIT WITH NON-VOLATILE RANDOM
 ACCESS MEMORY
 256KB WITH INTERNATIONAL
 STANDARDS ORGANIZATION

PRINTED CIRCUIT ASSEMBLY
 BUILDING TO DRAWING
 #150-1048-014
	  	 1
	    	 152

	
	 ASSEMBLY, SPACEWEB INDOOR UNIT
 BUILD TO DRAWING
 #150-1365-001
	  	 2
 

	    	 98520010
  
 98520008

	
	 CABLE ASSEMBLY, SYMBOL/TIME
 DIVISION MULTIPLEX INTERFACE
 BUILD TO DRAWING
 #345-5119-21
	  	 2
	    	 No S/N

	
	 POWER SUPPLY MONITOR MODEL 26
	  	 1
	    	 0116

	
	 WTI INCS-64 INTELLIGENT
 CONNECTIVITY SYSTEM
	  	 1
	    	 67221

 

A-3 

	 DESCRIPTION
	  	 QUANTITY
	  	 SERIAL NUMBERS

	
	 RADYNE COMSTREAM
 DIGITAL VIDEO BROADCAST
 MODULATOR DVB3030
	  	 1
	  	 00106506070A

	
	 LOGIC INNOVATIONS
 INTERNET PROTOCOL
 ENCAPSULATOR
 #IPE-2000
	  	 1
	  	 298002500017

	
	 ACT WIRELESS QUAD
 DEMODULATOR
 #QD2048
	  	 4
	  	 U051082 U051377
 U051326 U051491

	
	 MCL KU BAND TRAVELING WAVE
 TUBE AMPLIFIER, 150 WATT, 2 UNITS
	  	 1
	  	 1015

	
	 	  	 	  	 1016

	
	 [NOTE: ONE UNIT NOT IN WORKING
 ORDER]
	  	 	  	 
	
	 MITEQ KU BAND UP/DOWN
 CONVERTER
	  	 1
	  	 156312

	
	 10 MEGA-HERTZ MASTER
 OSCILLATOR
	  	 1
	  	 124

	
	 CODAN 5900 KU BAND TRANSCEIVER
 [NOTE: NOT IN WORKING ORDER]
	  	 1
	  	 A0242

	
	 CODAN 5581 POWER SUPPLY
	  	 1
	  	 A1923

	
	 CODAN SOLID STATE POWER
 AMPLIFIER, KU BAND 16 WATT
	  	 1
	  	 A0150

	
	 SATELLITE SYSTEMS MODEL 5420
 70 MEGA-HERTZ INTERMEDIATE
 FREQUENCY TO L-BAND
 UPCONVERTER
	  	 1
	  	 13898

	
	 SATELLITE SYSTEMS ATX-1000
 ANTENNA POSITIONING SYSTEM
	  	 1
	  	 13952

 

A-4 

	 DESCRIPTION
	  	 QUANTITY
	  	 SERIAL NUMBERS

	
	 HARMONIC TRX-100
 INTERNET PROTOCOL
 ENCAPSULATOR
 [NOTE: ONE OF TWO NOT IN
 WORKING ORDER]
	  	 2
 

	  	 751898
  
 2775

	
	 PARADISE P300
 SATELLITE MODEM
	  	 1
	  	 2115

	
	 SM2020 DIGITAL VIDEO BROADCAST
 MODULATOR CALIFORNIA EF DATA
	  	 1
	  	 991290181

	
	 SYSTRON DONNER 762
 SPECTRUM ANALYZER
	  	 1
	  	 3360375

	
	 GILAT SKYDATA MODEL 2470 VSAT
 TERMINAL
	  	 1
	  	 0326-0264

	
	 GILAT SKYDATA MODEM 2462-D-1
 OUTDOOR UNIT
	  	 1
	  	 0253-0196

	
	 MOONBEAMER CHASSIS
	  	 241
	  	 No S/N

	
	 DAMA MODULATOR CARD
	  	 8
	  	 B300414 B300406
 B300416 B300418
 B300412 B300121
 B300394 B300395
 B300422

	
	 2 WATT BLOCK
 UPCONVERTER/TRANSMITTER
	  	 2
	  	 13311-0401 A3353A

	
	 LOW NOISE BLOCK
 DOWNCONVERTER
	  	 15
	  	 91235979 91235873
 91235870 8Z232272
 91235875 03288166
 91235869 91235866
 91235886 91235959
 91235879 91235880
 91235978 91235977
 91235980

 

A-5 

	 DESCRIPTION
	  	 QUANTITY
	  	 SERIAL NUMBERS

	
	 MOONBEAMER TRANSMIT POWER
 SUPPLY
	  	 7
	  	 CA16011180
 CA16011174
 CA16011178
 CA04093013
 CA04093621
 CA04093615

	
	 1.2 METER ANTENNA
	  	 5
	  	 No S/N

	
	 CENTRAL PROCESSOR UNIT POWER
 SUPPLY
	  	 3
	  	 T0073510M1A912541
 T10907988M1A942536
 T0073507M1A912541

	
	 BACKPLANE
	  	 3
	  	 01023323 01023322
 01023324

	
	 MOONBEAMER CENTRAL PROCESSOR
 UNIT CARD
	  	 1
	  	 1C30144

	
	 VERTEX RSI 9 METER ANTENNA
 WITH 4 PORT C BAND FEED
	  	 1
	  	 F251-107

	
	 VERTEX RSI 6.1 METER ANTENNA
 WITH 2 PORT KU BAND FEED
	  	 1
	  	 G338-119

	
	 PRINTER, NETWORK
 READY, FOR 110 V POWER
 HP LASER JET 2100 TN
	  	 1
	  	 USGR013009

	
	 EF DATA MODULATOR
 REDUNDANCY SWITCH
	  	 1
	  	 992038754

	
	 EF DATA MODULATOR
 MODEL SDM300
	  	 1
	  	 972008187

	
	 CISCO SYSTEM 2620 ROUTER
 SH 800-04956-02
	  	 1
	  	 JAB033883PW

	
	 CISCO SYSTEMS MODEL CATALYST
 2924XL ETHERNET SWITCH
	  	 1
	  	 005080715500

 

A-6 

 
B.    Contract Rights. 
 
All rights of the Debtor and its affiliates in and to the following contracts, including any and all amendments, extensions, revisions and modifications thereto and restatements thereof, whether written or oral:

 

	 	•	 	Letter Agreement, dated as of October 12, 2000, by and between Foundation Telecommunications, Inc. and the Debtor. 

 

	 	•	 	Internet Service Agreement, dated as of April 15, 2002, by and between the Debtor and Gardtal Holdings Ltd. 

 

	 	•	 	Oral agreement for internet access services by and between the Debtor and Siricomm, Inc. (“Siricomm”), pursuant to which Siricomm currently pays the Debtor
$350.00 per month for internet access services for each of four (4) terminals (for an aggregate payment of $1,400.00 per month). 

 

	 	•	 	Oral agreement for internet access services by and between the Debtor and Global Communication Support, LLC, dba Advanced Broadband (“Advanced Broadband”),
pursuant to which Advanced Broadband currently pays the Debtor $350.00 per month for internet access services for one (1) terminal (for an aggregate payment of $350.00 per month). 

 
C.    Accounts and Other Rights to Payment.

 
All accounts and other rights to payment
arising from the provision of goods and services by the Debtor to Foundation Telecommunications, Inc., Gardtal Holdings Ltd., Siricomm, Advanced Broadband and each of their respective affiliates, successors and assigns. 
 
D.    Patent Collateral. 
 
Any and all discoveries and inventions and disclosures
thereof (whether patentable or not), patent applications and patents, including, without limitation, the patents listed in Section D(l) of this Appendix A and the patent applications listed in Section D(2) of this Appendix A (in each case as this
Appendix A may be amended from time to time), and similar interests provided by law, whether statutory or common law, whether now or hereafter existing and whether now owned or hereafter acquired, including, without limitation, all income and
proceeds thereof (including, by way of illustration and not limitation, license royalties and damages and other proceeds of infringement suits), the right to sue for past, present and future infringements, all rights corresponding or relating to any
of the foregoing throughout the world and all reissues, re-examinations, divisions, continuations, continuations-in-part, renewals, extensions, and improvements thereof (collectively called the “Patent Collateral”) and all records
pertaining to and all proceeds of any of the foregoing. 
 

A-7 

 
(1)    U.S. Patents. 
 

	         PATENT NO.
	 	 ISSUED
	 	 INVENTORS
	 	 TITLE

	         6,032,193
	 	 February 29, 2000
	 	 Mark K. Sullivan
	 	 Computer system having virtual circuit address altered by local computer to switch to different physical data link to
increase data transmission bandwidth

 
(2)    U.S. Patent Applications. 
 

	         APPLICATION NO.
	 	 FILED
	 	 APPLICANTS
	 	 TITLE

	         09/758,581
	 	 January 11, 2001
	 	 Mark K. Sullivan
 and
 Charles Adam Crowder
	 	 Method and system for improving data transmission and storage of markup language documents

	
	         09/966,325
	 	 September 28, 2001
	 	 Mark Sullivan
	 	 Apparatus and method for efficient live webcasting and network connectivity

 
E.    Intellectual Property Collateral. 
 
Any and all designs, industrial properties, works of authorship, maskworks, trademarks, service marks, trade names, trade dresses, trade secrets, databases, confidential or proprietary information, and
other intellectual properties or proprietary interests, including, without limitation, all items specifically identified in this Section E of this Appendix A (as Appendix A may be amended from time to time), and similar interests provided by law,
and all of the Debtor’s rights, titles and interests therein and thereto and all of the Debtor’s rights, powers, privileges and immunities thereunder, whether statutory or common law, whether now or hereafter existing, whether or not
subject to a governmental application, registration or other filings, and whether now owned or hereafter acquired, including, without limitation, all income and proceeds thereof (including, by way of illustration and not limitation, license
royalties and damages and other proceeds of infringement suits), the right to sue for past, present and future infringements, all governmental applications, registrations and other filings with respect thereto, all rights corresponding or relating
to any of the foregoing throughout the world, and all improvement, extensions, derivative works, modifications, and enhancements thereof (collectively called the “Intellectual Property Collateral”) and all records pertaining to and all
proceeds of any of the foregoing. 
 

A-8 

 
(1)    Trademarks, Service Marks, and Trade Names 
 
CISLUNAR 
 
CISLUNAR in stylized form 
 
“C” in stylized form around dot 
 
CISLUNAR NETWORKS 
 
CISLUNAR NETWORKS in stylized form 
 
Cislunar Networks Corporation 
 
(2)    Domain Names 
 
CISLUNAR.NET 
 
(3)    Works of Authorship 
 
(i)    Moonbeamer
Terminal Software, including without limitation: 
 

	 	•	 	DVB receiver control dvbd.c 

 

	 	•	 	Inroute modulator control damad.c 

 

	 	•	 	Inroute transmit device driver sattx.c 

 

	 	•	 	Configuration receiver recvconfig.c 

 

	 	•	 	Web-based configurator wwwconfig.c 

 

	 	•	 	Startup file downloader getfile.c 

 

	 	•	 	Signal strength indicator ss.c 

 

	 	•	 	Status report transmitter monitor.c 

 
(ii)    Hub Software, including without limitation: 
 

	 	•	 	Remote restart sendreboot.c 

 

	 	•	 	Inroute remote control damaset.c 

 

	 	•	 	Inroute device driver satrx.c 

 

	 	•	 	Configuration broadcast uplinksender.c 

 

	 	•	 	Cryptographic access control authorize.c 

 

	 	•	 	Status report receiver listen.c 

 

	 	•	 	Network status alarm monitor.c 

 

	 	•	 	Demodulator assignment qd2048.c 

 

A-9 

 
(iii)    Look Angle Calculator: satcalc.c (Web site software) 
 
(4) Trade Secrets 
 
(i)     Customer and prospect lists 
 
(ii)    Vendor lists 
 
(iii)   Books of account and
related business records 
 
(iv)    Software identified in Section E(3) of this Appendix A 
 
(5)    Licenses 
 
(i)     X.NMS SOFTWARE #325-1002 
 
(ii)    X.STAR NET PROTOCOL SOFTWARE #325-1002 
 
(iii)   TERMINAL CONTROL
PROTOCOL / INTERNET PROTOCOL SOFTWARE #325-1002 
 
(iv)    Logic Innovations IPE-2000 70 Mb/s operation 
 
(v)     Intuit Quick Books Pro 98 
 
F.    FCC Licenses. 
 
All rights and interests of the Debtor in any and all licenses and permits (collectively referred to as the
“FCC Licenses”) issued by the Federal Communications Commission (the “FCC”), subject to applicable law and FCC rules and regulations governing the FCC Licenses, including without limitation the following: 
 

	 	•	 	that certain Radio Station Authorization, Call Sign No. E000076, File No.: SES-LIC-20000207-00177, granted to Cislunar Networks Corp. on September 27, 2000 for
Domestic Fixed Satellite Service; 

 

	 	•	 	that certain Radio Station Authorization, Call Sign No. E990333, File No.: SES-MOD-20000218-00257, granted to Cislunar Networks Corp. on May 10, 2000 for Domestic
Fixed Satellite Service; and 

 

	 	•	 	that certain Radio Station Authorization, Call Sign No. E020131, File No.: SES-LIC-20020515-00787, granted to Cislunar Networks Corp. on September 3, 2002 for
Domestic Fixed Satellite Service. 

 

A-10

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