Document:

EXHIBIT 10.11

 

STARENT
NETWORKS, INC.

 

INDEMNIFICATION
AGREEMENT

 

This Agreement is made as of the
[            ] day
of
[             ]
2007, by and between Starent Networks, Inc., a Delaware corporation (the “Corporation),
and [           ] (the “Indemnitee”),
a director or officer of the Corporation.

 

WHEREAS, it is essential to the Corporation to
retain and attract as directors and officers the most capable persons
available, and

 

WHEREAS, the increase in corporate litigation
subjects directors and officers to expensive litigation risks, and

 

WHEREAS, it is now and has always been the policy of
the Corporation to indemnify its directors and officers, and

 

WHEREAS, the Corporation desires the Indemnitee to
serve, or continue to serve, as a director or officer of the Corporation.

 

NOW THEREFORE, the Corporation and the Indemnitee do
hereby agree as follows:

 

1.                                       Definitions.  As used in this Agreement:

 

(a)                                  The term “Proceeding” shall include any
threatened, pending or completed action, suit, arbitration, alternative dispute
resolution proceeding, administrative hearing or other proceeding, whether
brought by or in the right of the Corporation or otherwise and whether of a
civil, criminal, administrative or investigative nature, and any appeal
therefrom.

 

(b)                                 The term “Corporate Status” shall mean the
status of a person who is or was, or has agreed to become, a director or
officer of the Corporation, or is or was serving, or has agreed to serve, at
the request of the Corporation, as a director, officer, fiduciary, partner,
trustee, member, employee or agent of, or in a similar capacity with, another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise.

 

(c)                                  The term “Expenses” shall include, without
limitation, attorneys’ fees, retainers, court costs, transcript costs, fees and
expenses of experts, travel expenses, duplicating costs, printing and binding
costs, telephone charges, postage, delivery service fees and other
disbursements or expenses of the types customarily incurred in connection with
investigations, judicial or administrative proceedings or appeals, but shall
not include the amount of judgments, fines or penalties against Indemnitee or
amounts paid in settlement in connection with such matters.

 

(d)                                 The term “Change in Control” shall mean the
occurrence of any one of the following:

 

 

(i)                                     individuals who, on the date of this
Agreement, constitute the Board (the “Incumbent Directors”) cease for any
reason to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to the date of this Agreement whose election or
nomination for election was approved by a vote of at least a majority of the
Directors then on the Board (either by a specific vote or by approval of the
proxy statement of the Corporation in which such person is named as a nominee
for director, without written objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual initially elected or
nominated as a director of the Corporation as a result of an actual or
threatened election contest with respect to directors or as a result of any
other actual or threatened solicitation of proxies by or on behalf of any
person other than the Board shall be deemed to be an Incumbent Director;

 

(ii)                                  any “person” (as such term is defined in the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 50% or more of the
combined voting power of the Corporation’s then outstanding securities eligible
to vote for the election of the Board (the “Corporation Voting Securities”);
provided, however, that the event described in this paragraph (ii) shall
not be deemed to be a Change in Control by virtue of any of the following
acquisitions:  (A) by the
Corporation or any subsidiary, (B) by any employee benefit plan (or related
trust) sponsored or maintained by the Corporation or any subsidiary, (C) by
any underwriter temporarily holding securities pursuant to an offering of such
securities, (D) pursuant to a Non-Qualifying Transaction, as defined in
paragraph (iii), or (E) by any person of Voting Securities from the
Corporation, if a majority of the Incumbent Board approves in advance the
acquisition of beneficial ownership of 50% or more of Corporation Voting
Securities by such person;

 

(iii)                               the consummation of a merger, consolidation,
statutory share exchange, reorganization or similar form of corporate
transaction involving the Corporation or any of its subsidiaries that requires
the approval of the Corporation’s stockholders, whether for such transaction or
the issuance of securities in the transaction (a “Business Combination”),
unless immediately following such Business Combination:  (A) more than 50% of the total voting
power of (x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that
directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent
Corporation”), is represented by Corporation Voting Securities that were
outstanding immediately prior to such Business Combination (or, if applicable,
is represented by shares into which such Corporation Voting Securities were
converted pursuant to such Business Combination), and such voting power among
the holders thereof is in substantially the same proportion as the voting power
of such Corporation Voting Securities among the holders thereof immediately
prior to the Business Combination, (B) no person (other than any employee
benefit plan (or related trust) sponsored or maintained by the Surviving
Corporation or the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 35% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
and (C) at least half of the members of the board of directors of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) following the consummation of the Business

 

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Combination
were Incumbent Directors at the time of the Board’s approval of the execution
of the initial agreement providing for such Business Combination (any Business
Combination which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”);

 

(iv)                              the stockholders of the Corporation approve a
plan of complete liquidation or dissolution of the Corporation;

 

(v)                                 the consummation of a sale of all or
substantially all of the Corporation’s assets; or

 

(vi)                              the occurrence of any other event that the
Board determines by a duly approved resolution constitutes a Change in Control.

 

(e)                                  The term “Independent Counsel” shall mean a
law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither currently is, nor in the past five years has been,
retained to represent:  (i) the
Corporation or the Indemnitee in any matter material to either such party or (ii) any
other party to the Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Corporation or the
Indemnitee in an action to determine the Indemnitee’s rights under this
Agreement.

 

(f)                                    References to “other enterprise” shall
include employee benefit plans; references to “fines” shall include any excise
tax assessed with respect to any employee benefit plan; references to “serving
at the request of the Corporation” shall include any service as a director,
officer, employee or agent of the Corporation which imposes duties on, or
involves services by, such director, officer, employee, or agent with respect
to an employee benefit plan, its participants, or beneficiaries; and a person
who acted in good faith and in a manner such person reasonably believed to be
in the interests of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner “not opposed to the best
interests of the Corporation” as referred to in this Agreement.

 

2.                                       Indemnity of Indemnitee. 
Subject to Sections 5, 6 and 8, the Corporation shall indemnify the
Indemnitee in connection with any Proceeding as to which the Indemnitee is, was
or is threatened to be made a party (or is otherwise involved) by reason of the
Indemnitee’s Corporate Status, to the fullest extent permitted by law (as such
may be amended from time to time).  In
furtherance of the foregoing and without limiting the generality thereof:

 

(a)                                  Indemnification in Third-Party Proceedings.  The
Corporation shall indemnify the Indemnitee in accordance with the provisions of
this Section 2(a) if the Indemnitee was or is a party to or
threatened to be made a party to or otherwise involved in any Proceeding (other
than a Proceeding by or in the right of the Corporation to procure a judgment
in its favor or a Proceeding referred to in Section 5 below) by reason of
the Indemnitee’s Corporate Status or by reason of any action alleged to have
been taken or omitted in connection therewith, against all Expenses, judgments,
fines, penalties and amounts paid in settlement actually and reasonably
incurred by or on behalf of the Indemnitee in connection with such Proceeding,
if the Indemnitee

 

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acted
in good faith and in a manner which the Indemnitee reasonably believed to be
in, or not opposed to, the best interests of the Corporation and, with respect
to any criminal Proceeding, had no reasonable cause to believe that his or her
conduct was unlawful.

 

(b)                                 Indemnification in Proceedings by or in the
Right of the Corporation.  The Corporation shall indemnify the
Indemnitee in accordance with the provisions of this Section 2(b) if
the Indemnitee was or is a party to or threatened to be made a party to or
otherwise involved in any Proceeding by or in the right of the Corporation to
procure a judgment in its favor by reason of the Indemnitee’s Corporate Status
or by reason of any action alleged to have been taken or omitted in connection
therewith, against all Expenses and, to the extent permitted by law, amounts
paid in settlement actually and reasonably incurred by or on behalf of the
Indemnitee in connection with such Proceeding, if the Indemnitee acted in good
faith and in a manner which the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Corporation, except that, if applicable
law so requires, no indemnification shall be made under this Section 2(b) in
respect of any claim, issue or matter as to which the Indemnitee shall have
been adjudged to be liable to the Corporation, unless, and only to the extent,
that the Court of Chancery of Delaware or the court in which such action or
suit was brought shall determine upon application that, despite the
adjudication of such liability but in view of all the circumstances of the case,
the Indemnitee is fairly and reasonably entitled to indemnity for such Expenses
as the Court of Chancery or such other court shall deem proper.

 

3.                                       Indemnification of Expenses of Successful
Party.  Notwithstanding any other provision of this
Agreement, to the extent that the Indemnitee has been successful, on the merits
or otherwise, in defense of any Proceeding or in defense of any claim, issue or
matter therein (other than a Proceeding referred to in Section 5), the
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by or on behalf of the Indemnitee in connection therewith.

 

4.                                       Indemnification for Expenses of a Witness.  To
the extent that the Indemnitee is, by reason of the Indemnitee’s Corporate
Status, a witness in any Proceeding to which the Indemnitee is not a party, the
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by or on behalf of the Indemnitee in connection therewith.

 

5.                                       Exceptions to Right of Indemnification. 
Notwithstanding anything to the contrary to this Agreement, except as
set forth in Section 9,

 

(a)                                  the Corporation shall not indemnify the
Indemnitee under this Agreement in connection with a Proceeding (or part
thereof) initiated by the Indemnitee unless (i) the initiation thereof was
approved by the Board of Directors of the Corporation or (ii) the
Proceeding was commenced following a Change in Control; and

 

(b)                                 the Corporation shall not indemnify the
Indemnitee to the extent the Indemnitee is reimbursed from the proceeds of
insurance, and in the event the Corporation makes any indemnification payments
to the Indemnitee and the Indemnitee is subsequently reimbursed from the
proceeds of insurance, the Indemnitee shall promptly refund such
indemnification payments to the Corporation to the extent of such insurance
reimbursement.

 

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6.                                       Notification and Defense of Claim.

 

(a)                                  As a condition precedent to the Indemnitee’s
right to be indemnified, the Indemnitee must notify the Corporation in writing
as soon as practicable of any Proceeding for which indemnity will or could be
sought.  With respect to any Proceeding
of which the Corporation is so notified, the Corporation will be entitled to
participate therein at its own expense and/or to assume the defense thereof at
its own expense, with legal counsel reasonably acceptable to the
Indemnitee.  After notice from the
Corporation to the Indemnitee of its election so to assume such defense, the
Corporation shall not be liable to the Indemnitee for any legal or other
expenses subsequently incurred by the Indemnitee in connection with such
Proceeding, other than as provided below in this Section 6.  The Indemnitee shall have the right to employ
his or her own counsel in connection with such Proceeding, but the fees and
expenses of such counsel incurred after notice from the Corporation of its
assumption of the defense thereof shall be at the expense of the Indemnitee
unless (i) the employment of counsel by the Indemnitee has been authorized
by the Corporation, (ii) counsel to the Indemnitee shall have reasonably
determined that there may be a conflict of interest or position on any
significant issue between the Corporation and the Indemnitee in the conduct of
the defense of such Proceeding or (iii) the Corporation shall not in fact
have employed counsel to assume the defense of such Proceeding, in each of
which cases the fees and expenses of counsel for the Indemnitee shall be at the
expense of the Corporation, except as otherwise expressly provided by this
Agreement, and provided that Indemnitee’s counsel shall cooperate reasonably
with the Corporation’s counsel to minimize the cost of defending claims against
the Corporation and the Indemnitee.  The
Corporation shall not be entitled, without the consent of the Indemnitee, to
assume the defense of any claim brought by or in the right of the Corporation
or as to which counsel for the Indemnitee shall have reasonably made the
determination provided for in clause (ii) above.

 

(b)                                 The Corporation shall not be required to
indemnify the Indemnitee under this Agreement for any amounts paid in
settlement of any Proceeding effected without its written consent.  The Corporation shall not settle any Proceeding
in any manner that would impose any penalty or limitation on the Indemnitee
without the Indemnitee’s written consent. 
Neither the Corporation nor the Indemnitee will unreasonably withhold or
delay their consent to any proposed settlement.

 

7.                                       Advancement of Expenses. 
Subject to the provisions of Section 8, in the event that (a) the
Corporation does not assume the defense pursuant to Section 6 of any
Proceeding of which the Corporation receives notice under this Agreement or (b) the
Corporation assumes such defense but Indemnitee is, pursuant to Section 6,
entitled to have the fees and costs of Indemnitee’s own counsel paid for by the
Corporation, any Expenses actually and reasonably incurred by or on behalf of
the Indemnitee in defending such Proceeding shall be paid by the Corporation in
advance of the final disposition of such Proceeding; provided, however, that the payment of such Expenses incurred
by or on behalf of the Indemnitee in advance of the final disposition of such
Proceeding shall be made only upon receipt of an undertaking by or on behalf of
the Indemnitee to repay all amounts so advanced in the event that it shall
ultimately be determined that the Indemnitee is not entitled to be indemnified
by the Corporation as authorized in this Agreement.  Such undertaking shall be accepted without
reference to the financial ability of the Indemnitee to make repayment.  Any advances and undertakings to repay
pursuant to this Section 7 shall be unsecured and interest-free.

 

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8.                                       Procedures.

 

(a)                                  In order to obtain indemnification or
advancement of Expenses pursuant to this Agreement, the Indemnitee shall submit
to the Corporation a written request, including in such request such
documentation and information as is reasonably available to the Indemnitee and
is reasonably necessary to determine whether and to what extent the Indemnitee
is entitled to indemnification or advancement of Expenses.  Any such indemnification or advancement of
Expenses shall be made promptly, and in any event within (i) in the case
of advancement of Expenses under Section 7, 30 calendar days after receipt
by the Corporation of the written request of the Indemnitee, or (ii) in
the case of all other indemnification, 60 calendar days after receipt by the
Corporation of the written request of the Indemnitee, subject to the provisions
of Sections 8(b) and (c) below.

 

(b)                                 With respect to requests for indemnification
under Section 2, indemnification shall be made unless the Corporation
determines that Indemnitee has not met the applicable standard of conduct set
forth in Section 2.  Any
determination as to whether Indemnitee has met the applicable standard of
conduct set forth in Section 2, and any determination that advanced
Expenses must be subsequently repaid to the Corporation, shall be made, in the
discretion of the Board of Directors of the Corporation, (1) by a majority
vote of the directors of the Corporation consisting of persons who are not at
that time parties to the Proceeding (“disinterested directors”), whether or not
a quorum, (2) by a committee of disinterested directors designated by a
majority vote of disinterested directors, whether or not a quorum, (3) if
there are no disinterested directors, or if the disinterested directors so
direct, by Independent Counsel in a written opinion to the Board, or (4) by
the stockholders of the Corporation.  Any
such determination with respect to requests under Section 2 shall be made
within the 60-day period referred to in clause (ii) of Section 8(a) (unless
extended by mutual agreement by the Corporation and Indemnitee).  For the purpose of the foregoing
determination with respect to requests under Section 2 or repayment of
advanced Expenses, the Indemnitee shall be entitled to a presumption that he or
she has met the applicable standard of conduct set forth in Section 2.

 

(c)                                  Notwithstanding anything to the contrary set
forth in this Agreement, if a request for indemnification is made after a
Change in Control, at the election of the Indemnitee made in writing to the
Corporation, any determination required to be made pursuant to Section 8(b) above
as to whether the Indemnitee has met the applicable standard of conduct or is
required to repay advanced Expenses shall be made by Independent Counsel
selected as provided in this Section 8(c). 
The Independent Counsel shall be selected by the Indemnitee, unless the
Indemnitee shall request that such selection be made by the Board of Directors
of the Corporation.  The party making the
determination shall give written notice to the other party advising it of the
identity of the Independent Counsel so selected.  The party receiving such notice may, within
seven days after such written notice of selection shall have been given,
deliver to the other party a written objection to such selection.  Such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements
of “Independent Counsel” as defined in Section 1, and the objection shall
set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person so selected shall act as Independent Counsel.  If a written objection is made, the
Independent Counsel so selected may not serve as Independent Counsel unless and
until a court has determined that such

 

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objection
is without merit.  If, within 20 days
after submission by the Indemnitee of a written request for indemnification, no
Independent Counsel shall have been selected or if selected, shall have been
objected to, in accordance with this paragraph either the Corporation or the
Indemnitee may petition the Court of Chancery of the State of Delaware or other
court of competent jurisdiction for resolution of any objection which shall
have been made by the Corporation or the Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the court or by such other person as the court shall
designate, and the person with respect to whom an objection is favorably
resolved or the person so appointed shall act as Independent Counsel.  The Corporation shall pay the reasonable fees
and expenses of Independent Counsel incurred in connection with its acting in
such capacity.  The Corporation shall pay
any and all reasonable and necessary fees and expenses incident to the
procedures of this paragraph, regardless of the manner in which such
Independent Counsel was selected or appointed.

 

(d)                                 The termination of any Proceeding by
judgment, order, settlement, conviction or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that the Indemnitee
did not act in good faith and in a manner that the Indemnitee reasonably
believed to be in, or not opposed to, the best interests of the Corporation,
and, with respect to any criminal Proceeding, had reasonable cause to believe
that his or her conduct was unlawful.

 

(e)                                  The Indemnitee shall cooperate with the
person, persons or entity making such determination with respect to the
Indemnitee’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to the Indemnitee and reasonably necessary to
such determination.  Any Expenses
actually and reasonably incurred by the Indemnitee in so cooperating shall be
borne by the Corporation (irrespective of the determination as to the
Indemnitee’s entitlement to indemnification) and the Corporation hereby
indemnifies the Indemnitee therefrom.

 

9.                                       Remedies.  The right to indemnification
or advancement of Expenses as provided by this Agreement shall be enforceable
by the Indemnitee in any court of competent jurisdiction if the Corporation
denies such request, in whole or in part, or if no disposition thereof is made
within the applicable period referred to in Section 8.  Unless otherwise required by law, the burden
of proving that indemnification is not appropriate shall be on the
Corporation.  Neither the failure of the
Corporation to have made a determination prior to the commencement of such
action that indemnification is proper in the circumstances because the Indemnitee
has met the applicable standard of conduct, nor an actual determination by the
Corporation that the Indemnitee has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that the
Indemnitee has not met the applicable standard of conduct.  The Indemnitee’s Expenses actually and
reasonably incurred in connection with successfully establishing the Indemnitee’s
right to indemnification, in whole or in part, in any such Proceeding shall
also be indemnified by the Corporation.

 

10.                                 Partial Indemnification.  If
the Indemnitee is entitled under any provision of this Agreement to
indemnification by the Corporation for some or a portion of the Expenses,
judgments, fines, penalties or amounts paid in settlement actually and
reasonably incurred by or

 

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on
behalf of the Indemnitee in connection with any Proceeding but not, however,
for the total amount thereof, the Corporation shall nevertheless indemnify the
Indemnitee for the portion of such Expenses, judgments, fines, penalties or
amounts paid in settlement to which the Indemnitee is entitled.

 

11.                                 Subrogation.  In the event of any payment
under this Agreement, the Corporation shall be subrogated to the extent of such
payment to all of the rights of recovery of the Indemnitee, who shall execute
all papers required and take all action necessary to secure such rights,
including execution of such documents as are necessary to enable the
Corporation to bring suit to enforce such rights.

 

12.                                 Term of Agreement.  This
Agreement shall continue until and terminate upon the later of (a) six
years after the date that the Indemnitee shall have ceased to serve as a
director or officer of the Corporation or, at the request of the Corporation,
as a director, officer, partner, trustee, member, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise or (b) the final termination of all Proceedings pending
on the date set forth in clause (a) in respect of which the Indemnitee is
granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by the Indemnitee pursuant to Section 9 of this
Agreement relating thereto.

 

13.                                 Indemnification Hereunder Not Exclusive.  The
indemnification and advancement of Expenses provided by this Agreement shall
not be deemed exclusive of any other rights to which the Indemnitee may be
entitled under the Certification of Incorporation, the By-Laws, any other
agreement, any vote of stockholders or disinterested directors, the General
Corporation Law of Delaware, any other law (common or statutory), or otherwise,
both as to action in the Indemnitee’s official capacity and as to action in
another capacity while holding office for the Corporation.  Nothing contained in this Agreement shall be
deemed to prohibit the Corporation from purchasing and maintaining insurance,
at its expense, to protect itself or the Indemnitee against any expense,
liability or loss incurred by it or the Indemnitee in any such capacity, or
arising out of the Indemnitee’s status as such, whether or not the Indemnitee
would be indemnified against such expense, liability or loss under this
Agreement.

 

14.                                 No Special Rights. 
Nothing herein shall confer upon the Indemnitee any right to continue to
serve as an officer or director of the Corporation for any period of time or at
any particular rate of compensation.

 

15.                                 Savings Clause.  If
this Agreement or any portion thereof shall be invalidated on any ground by any
court of competent jurisdiction, then the Corporation shall nevertheless
indemnify the Indemnitee as to Expenses, judgments, fines, penalties and
amounts paid in settlement with respect to any Proceeding to the full extent
permitted by any applicable portion of this Agreement that shall not have been
invalidated and to the fullest extent permitted by applicable law.

 

16.                                 Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall
constitute the original.

 

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17.                                 Successors and Assigns.  This
Agreement shall be binding upon the Corporation and its successors and assigns
and shall inure to the benefit of the estate, heirs, executors, administrators
and personal representatives of the Indemnitee.

 

18.                                 Headings.  The headings of the paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

19.                                 Modification and Waiver.  This
Agreement may be amended from time to time to reflect changes in Delaware law
or for other reasons.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof nor shall any such
waiver constitute a continuing waiver.

 

20.                                 Notices.  All notices, requests, demands
and other communications hereunder shall be in writing and shall be deemed to
have been given (i) when delivered by hand or (ii) if mailed by
certified or registered mail with postage prepaid, on the third day after the
date on which it is so mailed:

 

(a)                                  if to the Indemnitee, to: 
[                  ]

 

(b)                                 if to the Corporation, to:  [                 ]

 

or
to such other address as may have been furnished to the Indemnitee by the
Corporation or to the Corporation by the Indemnitee, as the case may be.

 

21.                                 Applicable Law.  This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware.  The
Indemnitee may elect to have the right to indemnification or reimbursement or
advancement of Expenses interpreted on the basis of the applicable law in
effect at the time of the occurrence of the event or events giving rise to the
applicable Proceeding, to the extent permitted by law, or on the basis of the
applicable law in effect at the time such indemnification or reimbursement or
advancement of Expenses is sought.  Such
election shall be made, by a notice in writing to the Corporation, at the time
indemnification or reimbursement or advancement of Expenses is sought; provided,
however, that if no such notice is given, and if the General Corporation
Law of Delaware is amended, or other Delaware law is enacted, to permit further
indemnification of the directors and officers, then the Indemnitee shall be
indemnified to the fullest extent permitted under the General Corporation Law,
as so amended, or by such other Delaware law, as so enacted.

 

22.                                 Enforcement.  The Corporation expressly
confirms and agrees that it has entered into this Agreement in order to induce
the Indemnitee to continue to serve as an officer or director of the
Corporation, and acknowledges that the Indemnitee is relying upon this
Agreement in continuing in such capacity.

 

23.                                 Entire Agreement.  This
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supercedes all prior agreements,

 

9

 

whether
oral or written, by any officer, employee or representative of any party hereto
in respect of the subject matter contained herein; and any prior agreement of
the parties hereto in respect of the subject matter contained herein is hereby
terminated and cancelled.  For avoidance
of doubt, the parties confirm that the foregoing does not apply to or limit the
Indemnitee’s rights under Delaware law or the Corporation’s Certificate of
Incorporation or By-Laws.

 

24.                                 Consent to Suit.  In
the case of any dispute under or in connection with this Agreement, the
Indemnitee may only bring suit against the Corporation in the Court of Chancery
of the State of Delaware.  The Indemnitee
hereby consents to the exclusive jurisdiction and venue of the courts of the
State of Delaware, and the Indemnitee hereby waives any claim the Indemnitee
may have at any time as to forum non conveniens with respect to such
venue.  The Corporation shall have the
right to institute any legal action arising out of or relating to this
Agreement in any court of competent jurisdiction.  Any judgment entered against either of the
parties in any proceeding hereunder may be entered and enforced by any court of
competent jurisdiction.

 

 

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Blank]

 

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

 

	
   

  	
  STARENT NETWORKS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

11Filed by Automated Filing Services Inc. (604)609-0244 - Arvana Inc. - Exhibit 10.1

EXHIBIT 10.1

REGULATION D DEBT CONVERSION AGREEMENT

THIS AGREEMENT is made effective as of the 28th
day of March, 2007.

BETWEEN:

ARVANA INC., a Nevada
corporation

(hereinafter called the “Company”)

OF THE FIRST PART 

AND: 

ARVANA NETWORKS INC., a Barbados
corporation 

(hereinafter called “Arvana
Networks”)

OF THE SECOND PART 

AND: 

IPH HORIZON LLC

(hereinafter called the “Creditor”)

OF THE THIRD PART

WHEREAS:

A. Arvana Networks, a wholly owned subsidiary of the Company
entered into an agreement in August 2005 with the Creditor (the “Original
Agreement”) whereby the Creditor was to be issued 1,500,000 shares of the
Company in exchange for a commitment to deliver equipment, software and network
hardware for the initial launching of VOIP service in Brazil. The Creditor also
agreed to provide termination services to Arvana Networks, at its cost plus an
administration fee not to exceed 13 percent. 

B. As of December 31, 2005 and 2006, Arvana Networks and the
Company had not received the assets to be acquired in connection with Original
Agreement.

C. While a share certificate was delivered to the Creditor
representing the 1,500,000 shares (the “Original Share Certificate”), the
1,500,000 shares were not considered issued for accounting purposes because
Arvana Networks and the Company had not yet received the assets to be acquired
in connection with this transaction. 

D. The Creditor, Arvana Networks and the Company have agreed to
settle the obligations of Arvana Networks and the Company under the Original
Agreement for the amount of $150,000 to be owed by the Company to the Creditor
(defined herein as the “Indebtedness”).

E. Arvana Networks, the Company and the Creditor have agreed to
settle the Indebtedness by the issuance of 500,000 shares of the Company’s
common stock to the Creditor upon the terms and conditions of this
Agreement.

- 2 –

NOW THEREFORE, in consideration of the premises and the
mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows: 

ARTICLE 1 
DEFINITIONS

1.1 Definitions. The following terms will have the
following meanings for all purposes of this Agreement:

(a) “Agreement” shall mean this
Agreement, and all schedules and amendments to in the Agreement;

(b) “Common Stock” means the Common
Stock of the Company with a par value of $0.001 per share;

(c) “Exchange Act” shall mean the
United States Securities Exchange Act of 1934, as amended;

(d) “Indebtedness” means the amount of
$150,000 owed by the Company to the Creditor further to the settlement referred
to in Section 2.1 of this Agreement.

(e) “Offering” shall mean the offering
of the Shares by the Company to the Creditor;

(f) “SEC” shall mean the United States
Securities and Exchange Commission;

(g) “SEC Filings” shall mean those
filings made by the Company with the SEC in accordance with its reporting
obligations under the Exchange Act;

(h) “Securities Act” shall mean the
United States Securities Act of 1933, as amended;

(i) "Shares" means 500,000 shares of
Common Stock to be issued to the Creditor pursuant to the terms and conditions
of this Agreement in settlement of the Indebtedness.

1.2 Currency. All dollar amounts referred to in this
agreement are in United States funds, unless expressly stated otherwise.

ARTICLE 2
SETTLEMENT AND PURCHASE AND SALE OF
SHARES

2.1 Settlement of Amounts Owing Under Original
Agreement. The Company, Arvana Networks and the Creditor hereby agree that
the amount owing by Arvana Networks and the Company to the Creditor under the
Original Agreement for all assets transferred and services provided by the
Creditor to Arvana Networks and the Company under the Original Agreement is
$150,000, which amount is owed by the Company to the Creditor and is referred to
herein as the Indebtedness. The Company and Arvana Networks agree that no
further assets or services are to be provided by the Creditor under the Original
Agreement. The Creditor agrees that no further consideration is payable by the
Company or Arvana Networks to the Creditor under the Original Agreement,
including the originally contemplated 1,500,000 shares. Each of the Company and
Arvana Networks, on the one hand, and the Creditor, on the other, hereby release
each other from all liabilities and obligations under the Original Agreement.
Further to this Agreement and as a condition of delivery by the Company of the
Shares pursuant to Section 2.3 of this Agreement, the Creditor agrees to
forthwith surrender and return the Original Share Certificate to the 

- 3 –

Company. Upon surrender, the 1,500,000 shares represented by
the Original Share Certificate will be cancelled and returned to treasury and
will be deemed and treated as if the shares had not been originally issued in
the first instance.

2.2 Agreement to Convert Indebtedness to Shares. Subject
to the terms and conditions of this Agreement, the Creditor hereby agrees to
accept the issuance by the Company to the Creditor of the Shares as payment in
full of the Indebtedness.

2.3 Delivery of Shares. Upon execution of this Agreement
by the Company, the Company will deliver to the Creditor certificates
representing the Shares. Upon delivery by the Company of the certificates
representing the Shares, the Indebtedness will be deemed to be repaid in full by
the Company, the Company will have no further liability or obligation to the
Creditor in respect of the Indebtedness and the Creditor will have no further
claim or action against the Company in respect of the Indebtedness.

2.4 Compliance with Securities Laws. The obligation of
the Company to issue the Shares is conditional upon compliance with all
securities laws and other applicable laws of the jurisdiction in which the
Creditor is resident. Each Creditor will deliver to the Company all other
documentation, agreements, representations and requisite government forms
required by the lawyers for the Company as required to comply with all
securities laws and other applicable laws of the jurisdiction of the
Creditor.

2.5 Contractual Hold Period. The Creditor agrees that it
will not sell, assign or otherwise transfer the Shares or any interest in the
Shares during the two year period from the date of issue of the Shares without
the prior written consent of the Company. This agreement will survive the
issuance of the Shares. The Creditor agrees that the certificate representing
the Shares will be endorsed with the following legend to reflect this
agreement:

“The shares represented by this certificate
  may not be sold, assigned or otherwise transferred without the prior written
  consent of the Company until April <>, 2009.”

ARTICLE 3
AGREEMENTS, REPRESENTATIONS AND
WARRANTIES OF THE CREDITOR

3.1 Exemption from Registration. The Creditor
acknowledges and agrees that the Shares will be issued to the Creditor without
such offers and sales being registered under the Securities Act, and will be
issued to the Creditor in accordance with an exemption of the registration
requirements of the Securities Act provided by Rule 506 of Regulation D of the
Securities Act based on the representations and warranties of the Creditor in
this Agreement. As such, the Creditor further acknowledges and agrees that all
Shares will, upon issuance, be “restricted securities” within the meaning of the
Securities Act inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances. The Creditor further
acknowledges that the Offering has not been reviewed by the SEC or any state or
provincial securities regulatory authority.

3.2 Resales of Shares. The Creditor agrees that the
Shares may not be offered, resold, pledged or otherwise transferred except
through an exemption from registration under the Securities Act, or pursuant to
an effective registration statement under the Securities Act, and in accordance
with all applicable state securities laws and the laws of any other
jurisdiction. The Creditor agrees that the Company may require the opinion of
legal counsel reasonably acceptable to the Company in the event of any offer,
sale, pledge or transfer of any of the Shares by the Creditor. 

- 4 –

3.3 No Requirement to Register. The Creditor
acknowledges and agrees that the Company has no obligation to register the
resale of the Shares pursuant to the Securities Act or to otherwise qualify the
Shares for resale under any federal, state or provincial securities laws.

3.4 Share Certificates. The Creditor acknowledges and
agrees that all certificates representing the Shares will be endorsed with the
following legend, or such similar legend as deemed advisable by legal counsel
for the Company, to ensure compliance with Regulation D of the Securities Act
and to reflect the status of the Shares as restricted securities:

	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"),
        AND HAVE BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE
        OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE
        APPLICABLE PROVISIONS OF THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
        FROM THE REGISTRATION REQUIREMENTS OF THE ACT.”
	 

3.5 Representations and Warranties of the Creditor. The
  Creditor, represents and warrants to the Company as follows, and acknowledges
  that the Company is relying upon such covenants, representations and warranties
  in connection with the sale of the Shares to the Creditor:

(a) The Creditor is an "Accredited
Investor" as defined in Rule 501 of Regulation D of the Securities Act by virtue
of satisfying one or more of the following categories:

If the Creditor is an individual (that
is, a natural person and not a corporation, partnership, trust or other entity),
then it satisfies one or more of the categories indicated below (please place
an “X” on the appropriate lines):

  	
   ____________
 
 	A natural person whose individual net worth,
        or joint net worth with that person’s spouse, at the date of this
        Subscription Agreement exceeds US $1,000,000; 
 
 
	
   ____________
 
 	A natural person who had an individual income
        in excess of US $200,000 in each of the two most recent years or joint
        income with that person’s spouse in excess of US $300,000 in each
        of those years and has a reasonable expectation of reaching the same income
        level in the current year; 
 

If the Creditor is a corporation, partnership, trust
  or other entity), then it satisfies one or more of the categories indicated
  below (please place an “X” on the appropriate lines):

  	
                  X          

        

        	An organization described in Section 501(c)(3)
        of the United States Internal Revenue Code, a corporation, a Massachusetts
        or similar business trust or partnership, not formed for the specific
        purpose of acquiring the Shares, with total assets in excess of US $5,000,000;
        

	
   ____________
 
 	A trust that (a) has total assets in excess of US $5,000,000,
        (b) was not formed for the specific purpose of acquiring the Shares and
        (c) is directed in its purchases of securities by a person who has such
        knowledge and experience in financial and business matters that he/she
        is capable of evaluating the merits and risks of an investment in the
        Shares; 
 

- 5 –

  	
   ____________
 
 	An investment company registered under the Investment
        Company Act of 1940 or a business development company as defined in Section
        2(a)(48) of that Act; 

	
   ____________
 
 	A Small Business Investment Company licensed
        by the U.S. Small Business Administration under Section 301(c) or (d)
        of the Small Business Investment Act of 1958; 

	
   ____________
 
 	A private business development company as defined
        in Section 202(a)(22) of the Investment Advisors Act of 1940; or 

	
   ____________
 
 	An entity in which all of the equity owners satisfy
        the requirements of one or more of the foregoing categories. 

(b) The Creditor has such knowledge,
sophistication and experience in business and financial matters such that it is
capable of evaluating the merits and risks of the investment in the Shares. The
Creditor has evaluated the merits and risks of an investment in the Shares. The
Creditor can bear the economic risk of this investment, and is able to afford a
complete loss of this investment.

(c) The Creditor acknowledges that the
Company is in the early stages of development of its business and the Company’s
success is subject to a number of significant risks, including the risk that the
Company will not be able to finance its plan of operations and that the
Company’s business plan will not succeed. The Creditor acknowledges that any
forward-looking information provided by the Company to the Creditor are subject
to risks and uncertainties and that the Company’s actual results may differ
materially from the results anticipated.

(d) The Shares will be acquired by the
Creditor for investment for the Creditor's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that the Creditor has no present intention of selling, granting any
participation in, or otherwise distributing the same. The Creditor does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the Shares.

(e) The Creditor has received or has
had full opportunity to review the Company’s SEC Filings. The Creditor has had
full opportunity to ask questions and receive answers from representatives of
the Company regarding the Company’s SEC Filings, the terms and conditions of the
Offering and the business, properties, prospects and financial condition of the
Company, each as is necessary to evaluate the merits and risks of investing in
the Securities. The Creditor believes it has received all the information it
considers necessary or appropriate for deciding whether to purchase the
Securities. The Creditor has had full opportunity to discuss this information
with the Creditor’s legal and financial advisers prior to execution of this
Agreement.

(f) The Creditor represents that it is
familiar with SEC Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act.

(g) The Creditor has satisfied himself
  or herself as to the full observance of the laws of his or her jurisdiction
  in connection with any invitation to subscribe for the Shares or any use of
  this Agreement, including (i) the legal requirements within his jurisdiction
  for the purchase of the Shares; (ii) any foreign exchange restrictions applicable
  to such purchase; (iii) any governmental or other consents that may need to
  be obtained; (iv) the income tax and other tax consequences, if any, that may
  be relevant to an investment in the Shares; and (v) any restrictions on transfer
  applicable to any disposition of the Shares imposed by the jurisdiction in which
  the Creditor is resident. 

- 6 –

(h) The Creditor has not purchased the
Shares as a result of any form of general solicitation or general advertising,
including advertisements, articles, notices or other communications published in
any newspaper, magazine or similar media or broadcast over radio, television or
other form of telecommunications, or any seminar or meeting whose attendees have
been invited by general solicitation or general advertising.

(i) This Agreement has been duly
authorized, validly executed and delivered by the Creditor.

          3.6
  British Columbia Matters. The Creditor acknowledges that certain of the
  directors and officers of the Company and the head office of the Company are
  presently located in the Province of British Columbia. In order to enable the
  Company to ensure compliance with British Columbia securities law, the Creditor
  represents and warrants to the Company that the Creditor an “accredited
  investor” within the meaning of National Instrument 45-106 and has
  completed the attached Canadian Accredited Investor Certificate attached hereto
  as Schedule A. The Creditor acknowledges that the Shares may not be sold or
  otherwise disposed of for value in British Columbia, except pursuant to either
  a prospectus or statutory exemption available only in specific and limited circumstances.
  The Creditor acknowledges that the Company is not a reporting issuer in the
  Province of British Columbia and has no plans to become a reporting issuer in
  the Province of British Columbia.

ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

          4.1
  Representations and Warranties of the Company. The Company represents
  and warrants to the Creditor and acknowledges that the Creditor is relying upon
  such representations and warranties in connection with the execution, delivery
  and performance of this Agreement:

(a) The Company is a corporation duly
incorporated and in good standing under the laws of the State of Nevada, and has
the requisite corporate power and authority to conduct its business as it is
currently being conducted, to enter into this Agreement and to issue the Shares
to the Creditor.

(b) The execution and delivery by the
Company of this Agreement has been duly authorized by all necessary action on
the part of the Company, and no further consent or action is required by the
Company, its board of directors or its stockholders.

(c) The issuance of the Shares has been
duly authorized by all necessary corporate action of the Company.

(d) Upon issuance in accordance with
the terms and conditions of this Agreement, the Shares will be validly issued,
fully paid and non-assessable shares of the Company’s common stock. 

(e) The existing stockholders of the
Company have no pre-emptive or similar rights to purchase shares of Common Stock
from the Company.

(f) The issue and sale of the Shares by
the Company does not and will not conflict with, and does not and will not
result in a breach of, any of the terms of its Articles of Incorporation or
Bylaws or any agreement or instrument to which the Company is a party.

- 7 –

ARTICLE 5 
MISCELLANEOUS PROVISIONS

5.1 Effectiveness of Representations; Survival. Each
party is entitled to rely on the representations, warranties and agreements of
each of the other parties and all such representation, warranties and agreement
will be effective regardless of any investigation that any party has undertaken
or failed to undertake. The representation, warranties and agreements will
survive the purchase and sale of the Shares.

5.2 Further Assurances. Each of the parties hereto will
cooperate with the others and execute and deliver to the other parties hereto
such other instruments and documents and take such other actions as may be
reasonably requested from time to time by any other party hereto as necessary to
carry out, evidence, and confirm the intended purposes of this Agreement.

5.3 Amendment. This Agreement may not be amended except
by an instrument in writing signed by each of the parties.

5.4 Expenses. Each party to this Agreement will bear its
respective expenses incurred in connection with the preparation, execution, and
performance of this Agreement and the transactions contemplated hereby,
including all fees and expenses of agents, representatives, counsel, and
accountants. 

5.5 Entire Agreement. This Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior arrangements and understandings, both written and oral,
expressed or implied, with respect thereto. Any preceding correspondence or
offers are expressly superseded and terminated by this Agreement. In particular,
this Agreement and the issuance of the Shares to the Creditor supersedes and
replaces any obligation of the Company to issue 1,500,000 shares of Common Stock
to the Creditor arising under the Original Agreement.

5.6 Severability. If one or more provisions of this
Agreement is held to be unenforceable under applicable law, such provision will
be excluded from this Agreement and the balance of this Agreement will be
enforceable in accordance with its terms.

5.7 Notices. All notices and other communications
required or permitted under to this Agreement must be in writing and will be
deemed given if sent by personal delivery, faxed with electronic confirmation of
delivery, internationally-recognized express courier or registered or certified
mail (return receipt requested), postage prepaid, to the parties at the
following addresses (or at such other address for a party as will be specified
by like notice):

If to the Investor:

AT THE ADDRESS SET FORTH ON THE

SIGNATURE PAGE TO THIS AGREEMENT

If to the Corporation:

Arvana Inc.
Suite 2610, 1066
West Hastings Street, Vancouver, BC V6E 3X2

Attention: Mr. Teyfik Oezcan, Chief
Executive Officer

All such notices and other communications will be deemed to
have been received (a) in the case of personal delivery, on the date of such
delivery, (b) in the case of a fax, when the party sending such fax 

- 8 –

has received electronic confirmation of its delivery, (c) in
the case of delivery by internationally-recognized express courier, on the
business day following dispatch and (d) in the case of mailing, on the fifth
business day following mailing.

5.8 Headings. The headings contained in this Agreement
are for convenience purposes only and will not affect in any way the meaning or
interpretation of this Agreement.

5.9 Benefits. This Agreement is and will only be
construed as for the benefit of or enforceable by those persons party to this
Agreement.

5.10 Assignment. This Agreement may not be assigned
(except by operation of law) by any party without the consent of the other
parties.

5.11 Governing Law. This Agreement will be governed by
and construed in accordance with the laws of the State of Nevada applicable to
contracts made and to be performed therein. 

5.12 Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rule of strict construction will be applied against any
party.

- 9 –

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

5.14 Electronic Means. Delivery of an executed copy of
this Agreement by electronic facsimile transmission or other means of electronic
communication capable of producing a printed copy will be deemed to be execution
and delivery of this Agreement as of the date of its acceptance by the
Company.

IN WITNESS WHEREOF, this Subscription Agreement is
executed as of the day and year first written above.

	Signature of Creditor or Authorized Signatory of
      Creditor: 		/s/ Robert Russell 
	 	 	 
	Name of Authorized Signatory of Creditor (if applicable):
    		Robert Russell 
	 	 	 
	Title of Authorized Signatory of Creditor (if applicable):
    		President 
	 	 	 
	Name of Creditor: 	 	IP Horizon LLC 
	 	 	 
	Address of Creditor: 	 	808 Priscilla Street 
	 	 	 
	  	 	Salisbury MD 21801 
	 	 	 
	ARVANA INC. 	 	  
	 	 	 
	Signature of Authorized Signatory: 	 	/s/ Ross Wilmot 
	 	 	 
	Name of Authorized Signatory: 	 	Ross Wilmot 
	 	 	 
	Position of Authorized Signatory: 	 	Director 
	  	 	  
	ARVANA NETWORKS INC. 	 	  
	 	 	 
	Signature of Authorized Signatory: 	 	/s/ Ross Wilmot 
	 	 	 
	Name of Authorized Signatory: 	 	Ross Wilmot 
	 	 	 
	Position of Authorized Signatory: 	 	Director 

- 10 –

SCHEDULE A

CANADIAN ACCREDITED INVESTOR CERTIFICATE

In connection with the issuance of the Shares by the Company to
the Creditor, the Creditor certifies that it and any beneficial purchaser, as
applicable, is an “accredited investor” as defined in National Instrument 45-106
– Prospectus and Registration Exemptions by virtue of satisfying one of
more of the following criteria and acknowledges that the Company is relying on
this certificate in determining to issue the Shares to the Creditor. (Please
insert a checkmark in the box beside each applicable paragraph)

“Accredited investor” means

	 	(a) 	a Canadian financial institution,
        or a Schedule III bank; 
	[   ]
	 	  	 
	  
	 	(b) 	the Business Development Bank
        of Canada incorporated under the Business Development Bank of
        Canada Act (Canada); 
	[   ]
	 	  	 
	  
	 	(c) 	a subsidiary of any person
        referred to in paragraphs (a) or (b), if the person owns all of the voting
        securities of the subsidiary, except the voting securities required by
        law to be owned by directors of that subsidiary; 
	[   ]
	 	  	 
	  
	 	(d) 	a person registered under
        the securities legislation of a jurisdiction of Canada as an adviser or
        dealer, other than a person registered solely as a limited market dealer
        under one or both of the Securities Act (Ontario) or the Securities
        Act (Newfoundland and Labrador); 
	[   ]
	 	  	 
	  
	 	(e) 	an individual registered or
        formerly registered under the securities legislation of a jurisdiction
        of Canada as a representative of a person referred to in paragraph (d);
      
	[   ]
	 	  	 
	  
	 	(f) 	the Government of Canada or
        a jurisdiction of Canada, or any crown corporation, agency or wholly owned
        entity of the Government of Canada or a jurisdiction of Canada; 
	[   ]
	 	  	 
	  
	 	(g) 	a municipality, public board
        or commission in Canada and a metropolitan community, school board, the
        Comité de gestion de la taxe scolaire de l’île de Montréal
        or an intermunicipal management board in Québec; 
	[   ]
	 	  	 
	  
	 	(h) 	any national, federal, state,
        provincial, territorial or municipal government of or in any foreign jurisdiction,
        or any agency of that government; 
	[   ]
	 	  	 
	  
	 	(i) 	a pension fund that is regulated
        by either the Office of the Superintendent of Financial Institutions (Canada)
        or a pension commission or similar regulatory authority of a jurisdiction
        of Canada; 
	[   ]
	 	  	 
	  
	 	(j) 	an individual who, either
        alone or with a spouse, beneficially owns, directly or indirectly, financial
        assets having an aggregate realizable value that before taxes, but net
        of any related liabilities, exceeds $1,000,000; 
	[   ]
	 	  	 
	  
	 	(k) 	an individual whose net income
        before taxes exceeded $200,000 in each of the 2 most recent calendar years
        or whose net income before taxes combined with that of a spouse exceeded
        $300,000 in each of the 2 most recent calendar years and who, in either
        case, reasonably expects to exceed that net income level in the current
        calendar year; 
	[   ]

- 11 –

	 	(l) 	an individual who, either alone
        or with a spouse, has net assets of at least $5,000,000; 
	[   ]
	 	  	 
	 
	  
	 	(m) 	a person, other than an individual
        or investment fund, that has net assets of at least $5,000,000 as shown
        on its most recently prepared financial statements; 
	[ X ]
	 	  	 
	 
	  
	 	(n) 	an investment fund that distributes
        or has distributed its securities only to 
	[   ]
	 	  	 
	 
	  
	 	  	(i) 
	a person that is or was an accredited
        investor at the time of the distribution, 
	  
	 		(ii) 
	a person that acquires or acquired securities
        in the circumstances referred to in section 2.10 of NI 45-106 (being that
        (I) the person purchases as principal, (II) the security has an acquisition
        cost to the purchaser of not less than $150,000 paid in cash at the time
        of the trade, and (III) the trade is in the security of a single Company),
        and section 2.19 of NI 45-106 (being a trade by an investment fund in
        a security of its own issue to a security holder of the investment fund
        where (I) the security holder initially acquired securities of the investment
        fund as principal for an acquisition cost of not less than $150,000 paid
        in cash at the time of the trade, (II) the subsequent trade is for a security
        of the same class or series as the initial trade, and (III) the security
        holder, as at the date of the subsequent trade, holds securities of the
        investment fund that have an acquisition cost of not less than $150,000
        or a net asset value of not less than $150,000); or 
	
	 	 	(iii)
	a person described in paragraph (i) or
        (ii) that acquires or acquired securities under section 2.18 “Investment
        fund reinvestment” of NI 45-106;
	 
	 	 	
	
	 
	 	  	 
	 
	  
	 	(o) 	an investment fund that distributes
        or has distributed securities under a prospectus in a jurisdiction of
        Canada for which the regulator or, in Québec, the securities regulatory
        authority, has issued a receipt; 
	[   ]
	 	  	 
	 
	  
	 	(p) 	a trust company or trust corporation
        registered or authorized to carry on business under the Trust and Loan
        Companies Act (Canada) or under comparable legislation in a jurisdiction
        of Canada or a foreign jurisdiction, acting on behalf of a fully managed
        account managed by the trust company or trust corporation, as the case
        may be; 
	[   ]
	 	  	 
	 
	  
	 	(q) 	a person acting on behalf of
        a fully managed account managed by that person, if that person 
	[   ]
	 	  	 
	 
	  
	 		(i) 
	is registered or authorized to carry on
        business as an adviser or the equivalent under the securities legislation
        of a jurisdiction of Canada or a foreign jurisdiction, and 
	
	 		(ii) 
	in Ontario, is purchasing a security that
        is not a security of an investment fund; 
	
	 	  	 
	 
	  
	 	(r) 	a registered charity under the
        Income Tax Act (Canada) that, in regard to the trade, has obtained
        advice from an eligibility adviser or an adviser registered under the
        securities legislation of the jurisdiction of the registered charity to
        give advice on the securities being traded; 
	[   ]
	 	  	 
	 
	  
	 	(s) 	an entity organized in a foreign
        jurisdiction that is analogous to any of the entities referred to in paragraphs
        (a) to (d) or paragraph (i) in form and function; 
	[   ]
	 	  	 
	 
	  
	 	(t) 	a person in respect of which
        all of the owners of interests, direct, indirect or beneficial, except
        the voting securities required by law to be owned by directors, are persons
        that are accredited investors; 
	[   ]
	 	  	 
	 
	  
	 	(u) 	an investment fund that is advised
        by a person registered as an adviser or a person that is exempt from registration
        as an adviser; or 
	[   ]

- 12 –

	 	(v) 	a person that is recognized or designated by the securities
      regulatory authority or, except in Ontario and Québec, the regulator
      as 	[   ]
	 	 	 	 
	 	 	 (i) an accredited investor, or

        (ii) an exempt purchaser in Alberta or British Columbia after National
        Instrument 45-106 comes into force.
	 

The following definitions are included for convenience only;
reference should be had to the applicable legislation:

	(a) 	
      “director” means

	 	 	 	 
	 	(i) 	
      a member of the board of directors of a company or an
      individual who performs similar functions for a company, and

	 	 	 
		(ii) 	
      with respect to a person that is not a company, an
      individual who performs functions similar to those of a director of a
      company;

	 	 	 	 
	(b) 	
      “eligibility adviser” means

	 	 	 	 
		(i) 	
      a person that is registered as an investment dealer or in
      an equivalent category of registration under the securities legislation of
      the jurisdiction of a purchaser and authorized to give advice with respect
      to the type of security being distributed, and

	 	 	 	 
		(ii) 	
      in Saskatchewan or Manitoba, also means a lawyer who is a
      practicing member in good standing with a law society of a
      jurisdiction of Canada or a public accountant who is a member in good
      standing of an institute or association of chartered accountants,
      certified general accountants or certified management accountants in a
      jurisdiction of Canada provided that the lawyer or public accountant must
      not

	 	 	 	 
			(a) 	
      have a professional, business or personal relationship
      with the Company, or any of its directors, executive officers, founders,
      or control persons, and

	 	 	 	 
			(b)	
      have acted for or been retained personally or otherwise
      as an employee, executive officer, director, associate or partner of a
      person that has acted for or been retained by the Company or any of its
      directors, executive officers, founders or control persons within the
      previous 12 months;

	 	 	 	 
	(c) 	
      “entity” means a company, syndicate, partnership,
      trust or unincorporated organization;

	 	 	 	 
	(d) 	
      “financial assets” means cash, securities, or a
      contract of insurance, a deposit or an evidence of a deposit that is not a
      security for the purposes of securities legislation;

	 	 	 	 
	(e) 	
      “fully managed account” means an account of a
      client for which a person makes the investment decisions if that person
      has full discretion to trade in securities for the account without
      requiring the client’s express consent to a transaction;

	 	 	 	 
	(f) 	
      “investment fund” has the same meaning as in
      National Instrument 81-106 Investment Fund Continuous
      Disclosure;

	 	 	 	 
	(g) 	
      “person” includes

	 	 	 	 
		(i) 	
      an individual,

	 	 	 	 
		(ii) 	
      a corporation,

	 	 	 	 
		(iii) 	
      a partnership, trust, fund and an association, syndicate,
      organization or other organized group of persons, whether incorporated or
      not, and

	 	 	 	 
		(iv) 	
      an individual or other person in that person’s capacity
      as a trustee, executor, administrator or personal or other legal
      representative;

	 	 	 	 
	(h) 	
      “related liabilities” means

	 	 	 	 
		(i) 	
      liabilities incurred or assumed for the purpose of
      financing the acquisition or ownership of financial assets,
  or

- 13 –

	 	(ii)	 liabilities that are secured by financial assets; 
	 	 	 
	(i)	“spouse” means, an individual
      who,
	 	 	 
	 	(i)	 is married to another individual and is not living separate
        and apart within the meaning of the Divorce Act (Canada), from
        the other individual, 

	 	 	 
	 	(ii)	 is living with another individual in a marriage-like relationship, including
      a marriage-like relationship between individuals of the same gender, or
    
	 	 	 
	 	(iii) 	in Alberta, is an individual referred to in paragraph (i) or (ii), or
      is an adult interdependent partner within the meaning of the Adult Interdependent
      Relationships Act (Alberta); and 
	 	 	 
	(j)	“subsidiary” means an Company
      that is controlled directly or indirectly by another Company and includes
      a subsidiary of that subsidiary.

          An
  Company is an “affiliate” of another Company if (i) one of
  them is the subsidiary of the other, or (ii) each of them is controlled by the
  same person.

          In
  National Instrument 45-106 a person (first person) is considered to “control”
  another person (second person) if 

	 	(i)	 the first person, directly or indirectly, beneficially owns or exercises
      control or direction over securities of the second person carrying votes
      which, if exercised, would entitle the first person to elect a majority
      of the directors of the second person, unless that first person holds the
      voting securities only to secure an obligation, 
	 	 	 
	 	(ii)	 the second person is a partnership, other than a limited partnership,
      and the first person holds more than 50% of the interests of the partnership,
      or 
	 	 	 
	 	(iii)	 the second person is a limited partnership and the general partner of
      the limited partnership is the first person.

*************

          The
  foregoing representation, warranty and certificate is true and accurate as of
  the date of this certificate and will be true and accurate as of Closing. If
  any such representation, warranty or certificate shall not be true and accurate
  prior to Closing, the undersigned shall give immediate written notice of such
  fact to the Company.

	Dated:_____________________, 2007 	 	Signed:                                                   /s/
      Robert Russell 
	  	 	 
	  	 	IP
      Horizon LLC 
	Witness (If Creditor is an Individual) 	 	Print the name of Creditor 
	  	 	 
	  	 	Robert Russell, President 
	Print Name of Witness 	 	If Creditor is a Corporation, print name and title
    
	  	 	of Authorized Signing Officer

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