Document:

Employee Change in Control Severance Plan

 
Exhibit 10.2 
  
 SPINNAKER EXPLORATION COMPANY 
 EMPLOYEE CHANGE IN CONTROL SEVERANCE PLAN

  

	I.	INTRODUCTION 

  
 This Employee Change in Control Severance Plan is adopted pursuant to the authorization of the Board of Directors of Spinnaker Exploration Company, a
Delaware corporation (the “Company”), for the benefit of its eligible employees and the eligible employees of its participating subsidiaries and affiliated entities. This Change in Control Severance Plan is intended to provide severance
benefits to certain individuals whose employment is terminated under certain circumstances on or after the date upon which occurs a change in control of the Company. 
  

	II.	DEFINITIONS AND CONSTRUCTION 

  
 2.1 Definitions. Where the following words and phrases appear in the Plan, they shall have the respective meanings set forth below, unless
their context clearly indicates to the contrary. 
  
 (a) “Board” shall mean the Board of Directors of the Company. 
  
 (b) “Change in Control” shall mean: (1) a merger of the Company with another entity, a consolidation involving the
Company, or the sale of all or substantially all of the assets of the Company to another entity if, in any such case, the holders of equity securities of the Company immediately prior to such transaction or event do not beneficially own immediately
after such transaction or event equity securities of the resulting entity entitled to 50% or more of the votes then eligible to be cast in the election of directors generally (or comparable governing body) of the resulting entity in substantially
the same proportions that they owned the equity securities of the Company immediately prior to such transaction or event; (2) the dissolution or liquidation of the Company; (3) when any person or entity other than an Exempt Person, including a
“group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the combined voting power of the outstanding securities of the
Company; or (4) as a result of or in connection with a contested election of directors, the persons who were members of the Board immediately before such election shall cease to constitute a majority of the Board. For purposes of the preceding
sentence and determining Exempt Persons, (i) “resulting entity” in the context of a transaction or event that is a merger, consolidation or sale of all or substantially all assets shall mean the surviving entity (or acquiring entity in the
case of an asset sale) unless the surviving entity (or acquiring entity in the case of an asset sale) is a subsidiary of another entity and the holders of common stock of the Company receive capital stock of such other entity in such transaction or
event, in which event the resulting entity shall be such other entity, and (ii) subsequent to the consummation of a merger or consolidation that does not constitute a Change in Control, the term “Company” shall refer to the resulting
entity and the term “Board” shall refer to the board of directors (or comparable governing body) of the resulting entity. 
  
 (c) “Change in Terms of Service” shall mean, with respect to each Covered Individual, the occurrence, on the date upon
which a Change in Control occurs or within such Covered Individual’s Coverage Period, of either or both of the following: 
  

 (1) a material reduction in such Covered Individual’s annual base salary (or, in the
case of a Covered Individual who is paid on an hourly basis, a material reduction in such Covered Individual’s regular hourly rate of pay multiplied by his regularly scheduled hours per annum) from that provided to such Covered Individual
immediately prior to the date on which a Change in Control occurs; or 
  
 (2) a change in the location of such Covered Individual’s principal place of employment by the Employer by 50 miles or more from the location where he was principally employed immediately prior to the date on
which a Change in Control occurs. 
  
 (d)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (e) “Committee” shall mean the Committee appointed pursuant to Section 4.1. 
  
 (f) “Company” shall mean Spinnaker
Exploration Company, a Delaware corporation. 
  
 (g) “Compensation” shall mean, with respect to each Covered Individual, the sum of the following: 
  
 (1) the greater of such Covered Individual’s annual base salary (or, in the case of a Covered Individual who is paid on an hourly
basis, the greater of such Covered Individual’s regular hourly rate of pay multiplied by his regularly scheduled hours per annum) at the rate in effect (A) immediately prior to the Change in Control, (B) 60 days prior to the date of such
Covered Individual’s Involuntary Termination, or (C) the date of such Covered Individual’s Involuntary Termination; and 
  
 (2) the annual cash bonus, if any, most recently paid by the Employer to such Covered Individual prior to the date of such Covered
Individual’s Involuntary Termination (or, if greater, the annual cash bonus, if any, most recently paid by the Employer to such Covered Individual prior to the date upon which a Change in Control occurs); provided, however, that if such Covered
Individual was employed by the Employer for only a portion of the year with respect to which such bonus was paid, then the amount under this clause (2) shall equal an amount determined by annualizing the bonus received by such Covered Individual
based on the ratio of the number of days such Covered Individual was employed by the Employer during such year to 365 days. 
  
 (h) “Coverage Period” shall mean, with respect to each Covered Individual, a period of time that begins on the date upon
which a Change in Control occurs and continues for a number of months designated by the Company in its sole discretion, which number of months shall be set forth opposite such Covered Individual’s name in the Covered Individual Schedule;
provided, however, that if, for any reason, the number of months is not so designated in the Covered Individual Schedule, then such number of months shall equal 12. 
  
 (i) “Covered Individual” shall mean each individual who, immediately prior to the effective
time of a Change in Control, is a regular, full-time employee of the Employer (not including temporary, casual or part time employees) other than (1) any individual whose terms of employment are governed by a collective bargaining agreement between
a collective bargaining unit and the Employer unless such agreement provides for coverage of such individual under the Plan, (2) any individual who is a participant in the Company’s Executive Change in Control Severance Plan, (3) any individual
who is a nonresident alien and (4) any individual who is not on the Employer’s United States payroll. 
  

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 (j) “Covered Individual Schedule” shall mean a schedule maintained by
the Company for purposes of the Plan indicating the name, Coverage Period and Severance Amount Percentage of each Covered Individual. The Covered Individual Schedule shall be established prior to the date upon with a Change in Control occurs, and
such schedule shall be and is hereby made a part of the Plan for all purposes. The Covered Individual Schedule may be amended from time to time by the Company in accordance with Section 5.2. 
  
 (k) “Disability” shall mean a disability
entitling a Covered Individual to benefits under a group long-term disability plan maintained by the Employer. 
  
 (l) “Employer” shall mean the Company and each of its subsidiaries and affiliates that is treated as an Employer in
accordance with the provisions of Section 5.1. 
  
 (m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (n) “Exempt Person” shall mean any person or entity, including a “group” as contemplated by Section 13(d)(3) of
the Exchange Act, who acquires securities of the Company directly from the Company and who immediately after such acquisition has ownership or control (including, without limitation, power to vote) of more than 50% of the combined voting power of
the outstanding securities of the Company and who immediately prior to such acquisition did not have ownership or control (including, without limitation, power to vote) of more than 50% of the combined voting power of the outstanding securities of
the Company; provided, however, such person or entity shall not be deemed to be an Exempt Person if such person or entity concurrently or subsequently acquires or gains ownership or control (including, without limitation, power to vote) from any
person or entity other than the Company of additional voting securities of the Company and if, immediately after such acquisition or gain, such person or entity has ownership or control (including, without limitation, power to vote) of more than 50%
of the combined voting power of the outstanding securities of the Company. 
  
 (o) “Involuntary Termination” shall mean, with respect to each Covered Individual, any termination of such Covered Individual’s employment with the Employer which: 
  
 (1) does not result from a voluntary resignation by such
Covered Individual (other than a resignation pursuant to clause (2) of this Section 2.1(o)); or 
  
 (2) results from a resignation by such Covered Individual on or before the date which is 60 days after the date the Covered Individual
receives notice of a Change in Terms of Service; 
  
 provided,
however, that the term “Involuntary Termination” shall not include a Termination for Cause or any termination as a result of such Covered Individual’s death or Disability. 
  
 (p) “Plan” shall mean the Spinnaker Exploration Company Employee Change in Control
Severance Plan, as amended from time to time. 
  
 (q) “Severance Amount Percentage” shall mean, with respect to each Covered Individual, a percentage designated by the Company in its sole discretion, which percentage shall be set forth opposite such Covered
Individual’s name in the Covered Individual Schedule; provided, however, that if, for any reason, the percentage is not so designated in the Covered Individual Schedule, then such percentage shall equal 50%. 
  

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 (r) “Termination for Cause” shall mean, with respect to each Covered
Individual, any termination of such Covered Individual’s employment with the Employer based on a determination by the Committee that such Covered Individual (1) has been convicted of a misdemeanor involving moral turpitude or a felony, (2) has
engaged in conduct which is materially injurious (monetarily or otherwise) to the Employer or any of its affiliates (including, without limitation, misuse of the Employer’s or an affiliate’s funds or other property), (3) has engaged in
gross negligence or willful misconduct in the performance of such Covered Individual’s duties, (4) has willfully refused without proper legal reason to perform such Covered Individual’s duties and responsibilities, (5) has materially
breached any material provision of any agreement between the Employer and such Covered Individual, or (6) has materially breached any material corporate policy maintained and established by the Employer that is of general applicability to Covered
Individuals. 
  
 2.2 Number and Gender. Wherever
appropriate herein, a word used in the singular shall be considered to include the plural and the plural to include the singular. The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender. 
  
 2.3 Headings. The headings of Articles and Sections herein are
included solely for convenience and if there is any conflict between such headings and the text of the Plan, the text shall control. 
  

	III.	SEVERANCE BENEFITS 

  
 3.1 Severance Benefits. If the employment by the Employer or a successor thereto of a Covered Individual shall be subject to an Involuntary
Termination on the date upon which a Change in Control occurs or within such Covered Individual’s Coverage Period, then such Covered Individual shall be entitled to receive as a severance benefit, subject to the provisions of Sections 3.3, 3.4
and 3.5, a lump sum cash payment in an amount equal to such Covered Individual’s Severance Amount Percentage multiplied by his Compensation. Such lump sum cash payment shall be paid by the Employer to such Covered Individual as soon as
administratively feasible after the release required to be delivered to the Employer as a condition to the receipt of severance benefits becomes effective and irrevocable (or, if later, on the fifth day after such Covered Individual executes the
agreement referred to in Section 3.4(b)); provided, however, that if the lump sum cash payment would be subject to additional taxes and interest under Section 409A of the Code, then payment of the lump sum cash payment shall be deferred to the
extent required to avoid such additional taxes and interest. 
  
 3.2 Interest on Late Payments. If any cash payment provided for in Section 3.1 is not made when due, the Employer shall pay to the Covered Individual interest on the amount payable from the date that such payment should have
been made under such Section until such payment is made, which interest shall be calculated at the rate of 10% per annum, compounded annually. 
  
 3.3 Parachute Payments. Anything to the contrary herein notwithstanding, if a Covered Individual is a “disqualified individual”
(as defined in Section 280G(c) of the Code), and the severance benefits provided for in Section 3.1, together with any other payments or benefits which the Covered Individual has the right to receive from the Employer, would constitute a
“parachute payment” (as defined in Section 280G(b)(2) of the Code), then the severance benefits provided hereunder shall be either (a) reduced (but not below zero) so that the present value of such total amounts received by the Covered
Individual from the Employer will be one dollar ($1.00) less than three times the Covered Individual’s 

  

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“base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts received by the Covered Individual shall be
subject to the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax position to the Covered Individual (taking into account any applicable excise tax under Section 4999 of the Code and any
applicable income tax). The determination as to whether any such reduction in the amount of the severance benefits is necessary shall be made by the Committee in good faith. If a reduced cash payment is made and through error or otherwise that
payment, when aggregated with other payments or benefits from the Employer (or its affiliates) used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times the Covered Individual’s base amount,
the Covered Individual shall immediately repay such excess to the Employer upon notification that an overpayment has been made. Nothing in this Section 3.3 shall require the Employer to be responsible for, or have any liability or obligation with
respect to, any Covered Individual’s excise tax liabilities under Section 4999 of the Code. 
  
 3.4 Coordination with Employment Agreement. The benefits under the Plan are not intended to duplicate the benefits to which a Covered
Individual is entitled under an employment agreement or a severance agreement between such Covered Individual and the Employer, and if a Covered Individual is entitled to a severance benefit under any such agreement, then such Covered Individual
shall not be entitled to benefits under the Plan unless (a) within five days after the date of such Covered Individual’s Involuntary Termination, such Covered Individual provides written notice to the Company (addressed to the Chairman of the
Board of the Company or any successor entity) that such Covered Individual has elected to receive the benefits under the Plan in lieu of any severance benefit payable in cash under any such agreement (including, without limitation, any cash payment
under any such agreement that is intended to make such Covered Individual whole or otherwise compensate him with respect to excise taxes imposed under Section 4999 of the Code) and (b) such Covered Individual executes an agreement in the form
prescribed by the Committee pursuant to which such Covered Individual expressly waives his right to receive any severance benefit payable in cash under any such agreement (including, without limitation, any cash payment under any such agreement that
is intended to make such Covered Individual whole or otherwise compensate him with respect to excise taxes imposed under Section 4999 of the Code) in exchange for the receipt of benefits under the Plan. 
  
 3.5 Release and Full Settlement. As a condition to the receipt
of any severance benefit hereunder, a Covered Individual shall first execute a release, in the form established by the Committee, releasing the Committee, the Employer, and the Employer’s shareholders, partners, officers, directors, employees
and agents from any and all claims and from any and all causes of action of any kind or character, including but not limited to all claims or causes of action arising out of such Covered Individual’s employment with the Employer or the
termination of such employment, and the performance of the Employer’s obligations hereunder and the receipt of any benefits provided hereunder by such Covered Individual shall constitute full settlement of all such claims and causes of action.

  
 3.6 No Mitigation. A Covered Individual shall
not be required to mitigate the amount of any payment or benefit provided for in this Article III by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Article III be reduced by any
compensation or benefit earned by the Covered Individual as the result of employment by another employer or by retirement benefits. Except as provided in Section 3.4, the benefits under the Plan are in addition to any other benefits to which a
Covered Individual is otherwise entitled; provided, however, that a Covered Individual who is entitled to receive benefits under the Plan shall not be eligible to receive any benefits under any other severance benefit plan maintained by the Employer
or any of its affiliates. 
  

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	IV.	ADMINISTRATION OF PLAN 

  
 4.1 Appointment of Committee. The Company shall be the Plan administrator during the period preceding the date upon which a Change in
Control occurs. Prior to the date upon which a Change in Control occurs, the Board shall appoint one or more persons or entities who are not employed by the Employer or any affiliate thereof to serve as the Committee from and after such date. If for
any reason any individual or entity so appointed resigns or is otherwise unwilling or unable to serve as a member of the Committee, then such individual or entity (or any successor thereto) shall appoint his or its own successor (who shall also be
independent of the Employer). The Committee may select officers and may appoint a secretary who need not be a member of the Committee. The Committee shall designate the person or persons who shall be authorized to sign for the Committee and, upon
such designation, the signature of such person or persons shall bind the Committee. 
  
 4.2 Proceedings and Meetings. The Committee shall keep appropriate records of proceedings related to the administration of the Plan and shall make available for examination during business hours to any
Covered Individual or beneficiary such records as pertain to that individual’s interest in the Plan. The Committee shall hold meetings upon such notice and at such times and places as it may from time to time determine. Notice to a member shall
not be required if waived in writing by that member. A majority of the members of the Committee duly appointed shall constitute a quorum for the transaction of business. All resolutions or other actions taken by the Committee at any meeting where a
quorum is present shall be by vote of a majority of those present at such meeting and entitled to vote. Resolutions may be adopted or other action taken without a meeting upon written consent signed by all of the members of the Committee.

  
 4.3 Committee’s Powers and Duties. It shall
be a principal duty of the Committee to see that the Plan is carried out, in accordance with its terms, for the exclusive benefit of persons entitled to participate in the Plan. The Committee shall have full power to administer the Plan in all of
its details, subject to applicable requirements of law. For this purpose, the Committee’s powers shall include, but not be limited to, the following authority, in addition to all other powers provided by the Plan: 
  
 (a) to make and enforce such rules and regulations as it deems necessary or
proper for the efficient administration of the Plan; 
  
 (b) to
interpret the Plan, its interpretation thereof to be final and conclusive on all persons claiming benefits under the Plan; 
  
 (c) to decide all questions concerning the Plan and the eligibility of any person to participate in the Plan; 
  
 (d) to make a determination as to the right of any person to a benefit under
the Plan (including, without limitation, to determine whether and when there has been a termination of a Covered Individual’s employment and the cause of such termination); 
  
 (e) to appoint such agents, counsel, accountants, consultants, claims administrator and other persons as may be required to
assist in administering the Plan; 
  
 (f) to allocate and delegate
its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities under the Plan, any such allocation, delegation or designation to be in writing; 
  
 (g) to sue or cause suit to be brought in the name of the Plan; and

  

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 (h) to obtain from the Employer and from Covered Individuals such information as is necessary for the
proper administration of the Plan. 
  
 4.4 Indemnification
of Committee. The Company agrees to indemnify and to defend to the fullest extent permitted by law any member of the Committee against all liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in
settlement of any claims approved by the Company) occasioned by any act or omission to act in connection with the Plan, if such act or omission was in good faith. 
  
 4.5 Compensation, Bond and Expenses. The members of the Committee shall not receive compensation with respect
to their services for the Committee. To the extent required by applicable law, but not otherwise, Committee members shall furnish bond or security for the performance of their duties hereunder. Any expenses properly incurred by the Committee
incident to the administration, termination or protection of the Plan, including the cost of furnishing bond, shall be paid by the Company. 
  
 4.6 Claims Procedures. Claims for Plan benefits and reviews of Plan benefit claims that have been denied or modified shall be processed in
accordance with the written Plan claims procedures that are attached hereto as Exhibit A, which procedures are hereby incorporated by reference as a part of the Plan. 
  

	V.	GENERAL PROVISIONS 

  
 5.1 Other Participating Employers. It is contemplated that affiliates of the Company may adopt this Plan and thereby become an
“Employer” hereunder. Any such entity, whether or not presently existing, may become a party hereto by appropriate action of its Board of Directors or noncorporate counterpart. The provisions of the Plan shall apply separately and equally
to each Employer and its employees in the same manner as is expressly provided for the Company and its employees, except that the determination of whether a Change in Control has occurred shall be made based solely on the Company. Nevertheless, any
Employer may incorporate in its adoption agreement or in an amendment document specific provisions relating to the operation of the Plan, and such provisions shall become a part of the Plan as to such Employer only. Transfer of employment among the
Company and other participating Employers (and among any of their affiliates) shall not be considered an Involuntary Termination hereunder. Subject to the provisions of Section 5.2, any participating Employer may, by appropriate action of its Board
of Directors or noncorporate counterpart, terminate its participation in the Plan. Amounts payable hereunder shall be paid by the Employer which employs the particular Covered Individual. 
  
 5.2 Termination and Amendment of Plan. 
  
 (a) The Plan (including the Covered Individual Schedule) may be amended, terminated or discontinued by the Board (or an
authorized committee thereof) in whole or in part, at any time and from time to time; provided, however, that, subject to the provisions of Section 5.2(b), the Plan (including the Covered Individual Schedule) may not be amended, terminated or
discontinued (1) with respect to each Covered Individual and upon the occurrence of a Change in Control, during such Covered Individual’s Coverage Period, and (2) to reduce the potential benefits provided under Section 3.1 or to adversely (from
the perspective of employees of the Employer) modify the classification of individuals who will qualify as Covered Individuals during the period beginning on the date of a public announcement by the Company of a potential transaction that could
result in a Change in Control and ending on the date such potential transaction is abandoned by the Company and any other parties thereto or has been consummated and resulted in a Change in Control. The Plan shall automatically terminate with
respect to each Covered Individual at the end of such Covered Individual’s Coverage Period; provided, however, 

  

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that if, prior to such termination date, the contingency factors occur which would entitle such Covered Individual to the benefits as provided herein, then
the Plan shall remain in effect with respect to such Covered Individual in accordance with its terms. 
  
 (b) The provisions set forth in Section 5.2(a) that otherwise restrict amendments to the Plan (including the Covered Individual Schedule) shall not apply
to (1) an amendment to the administrative provisions of the Plan that is required pursuant to applicable law, (2) an amendment that adds a Covered Individual to the Covered Individual Schedule, (3) an amendment that increases the benefits payable
under the Plan or otherwise constitutes a bona fide improvement of a Covered Individual’s rights under the Plan (including an amendment to the Covered Individual Schedule that increases the Coverage Period or Severance Amount Percentage
applicable to a Covered Individual) or (4) an amendment which decreases the benefits of a Covered Individual (including an amendment to the Covered Individual Schedule that decreases the Coverage Period or Severance Amount Percentage applicable to a
Covered Individual) that is consented to in writing by such Covered Individual. 
  
 (c) The Plan may not be amended, terminated, or discontinued except as expressly provided in this Section 5.2. For purposes of this Section 5.2, the termination of an Employer’s participation in the Plan (and,
accordingly, but for the provisions of this Section 5.2, the termination of such Employer’s participation in the Plan pursuant to Section 5.1) shall be deemed to be an amendment to the Plan, but the commencement of participation by an Employer
in the Plan (and, accordingly, participation by such Employer in the Plan pursuant to Section 5.1) shall not be considered an amendment to the Plan. 
  
 5.3 Funding; Cost of Plan. The benefits provided herein shall be unfunded and shall be provided from the Employer’s general assets. The
entire cost of the Plan shall be borne by the Employer and no contributions shall be required of the Covered Individuals. 
  
 5.4 Plan Year. The Plan shall operate on a plan year consisting of the 12-consecutive month period commencing on January 1 of each year;
provided, however, that the first Plan Year shall begin on the date of the approval of the Plan by the Board and shall end on December 31, 2005. 
  
 5.5 Nonalienation. Covered Individuals shall not have any right to pledge, hypothecate, anticipate or assign benefits or rights under the
Plan, except by will or the laws of descent and distribution. 
  
 5.6 Not Contract of Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract of employment between the Employer and any person or to be consideration for the employment of any person. Nothing
herein contained shall be deemed to (a) give any person the right to be retained in the employ of the Employer, (b) restrict the right of the Employer to discharge any person at any time, (c) give the Employer the right to require any person to
remain in the employ of the Employer, or (d) restrict any person’s right to terminate his employment at any time. 
  
 5.7 Indemnification. If a Covered Individual shall obtain any money judgment or otherwise prevail with respect to any litigation brought by
such Covered Individual or the Employer to enforce or interpret any provision contained herein, the Employer, to the fullest extent permitted by applicable law, hereby indemnifies such Covered Individual for his reasonable attorneys’ fees and
disbursements incurred in such litigation and hereby agrees (a) to pay in full all such fees and disbursements and (b) to pay prejudgment interest on any money judgment obtained by such Covered Individual from the earliest date that payment to such
Covered Individual should have been made under the Plan until such judgment shall have been paid in full, which interest shall be calculated at the rate of 10% per annum, compounded annually. 
  

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 5.8 Payment Obligations Absolute. The Employer’s obligation to pay a Covered
Individual the amounts provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Employer or any of its
subsidiaries may have against such Covered Individual or anyone else. All amounts payable by the Employer shall be paid without notice or demand. 
  
 5.9 Withholding. Any benefits paid or provided pursuant to the Plan shall be subject to any required tax withholding. 
  
 5.10 Severability. Any provision in the Plan that is prohibited
or unenforceable in any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 5.11 Effect of Plan. The Plan is intended to supersede all prior oral or written policies of the Employer and all prior oral or written
communications to Covered Individuals with respect to the subject matter hereof, and all such prior policies or communications are hereby null and void and of no further force and effect. Further, the Plan shall be binding upon the Employer and any
successor of the Employer, by merger or otherwise, and shall inure to the benefit of and be enforceable by the Employer’s Covered Individuals. Any benefits paid or provided pursuant to the Plan shall be deemed to be a severance payment and not
“compensation” for purposes of determining benefits under the Employer’s qualified plans (unless and to the extent that any such qualified plan expressly provides otherwise). 
  
 EXECUTED this 31st day of May, 2005. 
  

			
	 SPINNAKER EXPLORATION COMPANY

		
	 By:
	 	/s/ ROGER L. JARVIS
	 Name:
	 	
 Roger L. Jarvis

	 Title:
	 	 Chairman of the Board, President and
 Chief
Executive Officer

  

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 EXHIBIT A 
 TO SPINNAKER EXPLORATION COMPANY 
 EMPLOYEE CHANGE IN CONTROL SEVERANCE PLAN 
  
 CLAIMS PROCEDURES 
  
 1. Purpose of Exhibit 
  
 This Exhibit sets forth the benefit claims procedures for the Spinnaker
Exploration Company Employee Change in Control Severance Plan, as amended from time to time (the “Plan”). 
  
 2. Definitions 
  
 Capitalized terms used in this Exhibit that are not defined in this Paragraph 2 shall have the meaning assigned to such terms in the Plan. For purposes of this Exhibit, the following terms, where capitalized, will
have the meanings provided below: 
  

	 	(a)	Adverse Benefit Determination: Any denial, reduction or termination of or failure to provide or make payment (in whole or in part) of a Plan benefit, including any denial,
reduction, termination or failure to provide or make payment that is based on a determination of a Claimant’s eligibility to participate in the Plan. Further, any invalidation of a claim for failure to furnish written proof of loss or to comply
with the claim submission procedure will be treated as an Adverse Benefit Determination. 

  

	 	(b)	Benefits Administrator: The Company’s Vice President of Human Resources or such other person or office to whom the Committee has delegated day-to-day Plan administration
responsibilities and who, pursuant to such delegation, processes Plan benefit claims in the ordinary course. 

  

	 	(c)	Claimant: An individual or an authorized representative of such individual who has filed or desires to file a claim for a benefit or an increased benefit under the Plan.

  

	 	(d)	ERISA: The Employee Retirement Income Security Act of 1974, as amended. 

  

3. Filing of Benefit Claim 
  
 To file a benefit claim under the Plan, a Claimant must submit to the Benefits Administrator a written claim for Plan benefits containing a description of
(a) an alleged failure to receive a benefit payable to such Claimant under the Plan or (b) an alleged discrepancy between the amount of a benefit owed and the amount of a benefit received by such Claimant under the Plan. In connection with the
submission of a claim, the Claimant may examine the Plan and any other relevant documents relating to the claim, and may submit written comments relating to such claim to the Benefits Administrator coincident with the filing of the benefit claim
form. If the Claimant needs additional information regarding his Plan benefits, he may obtain such information by submitting a written request to the Benefits Administrator describing the additional information needed. Failure of a Claimant to
furnish a written claim description or to otherwise comply with the claim submission procedure will invalidate such claim unless the Benefits Administrator in its discretion determines that it was not reasonably possible to comply with such
procedure. 
  

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 4. Processing of Benefit Claim 
  
 Upon receipt of a fully completed benefit claim from a Claimant, the Benefits Administrator shall determine if the
Claimant’s right to the requested benefit, payable at the time or times and in the form requested, is clear and, if so, shall process such benefit claim without resort to the Committee. If the Benefits Administrator determines that the
Claimant’s right to the requested benefit, payable at the time or times and in the form requested, is not clear, it shall refer the benefit claim to the Committee for review and determination, which referral shall include: 
  

	 	(a)	All materials submitted to the Benefits Administrator by the Claimant in connection with the claim; 

  

	 	(b)	A written description of why the Benefits Administrator was of the view that the Claimant’s right to the benefit, payable at the time or times and in the form requested, was
not clear; 

  

	 	(c)	A description of all Plan provisions pertaining to the benefit claim; 

  

	 	(d)	Where appropriate, a summary as to whether such Plan provisions have in the past been consistently applied with respect to other similarly situated Claimants; and

  

	 	(e)	Such other information as may be helpful or relevant to the Committee in its consideration of the claim. 

  
 If the Claimant’s claim is referred to the Committee, the Claimant may examine any relevant document relating to his claim and may
submit written comments or other information to the Committee to supplement his benefit claim. Within 90 days of receipt of a fully completed benefit claim form from a Claimant that has been referred to the Committee by the Benefits Administrator
(or such longer period as may be necessary due to unusual circumstances or to enable the Claimant to submit comments, but in any event not later than will permit the Committee sufficient time to fully and fairly consider the claim and make a
determination within the time frame provided in Paragraph 5 below), the Committee shall consider the referral regarding the claim of the Claimant and make a decision as to whether it is to be approved, modified or denied. If the claim is approved,
the Committee shall direct the Benefits Administrator to process the approved claim as soon as administratively practicable. 
  
 5. Notification of Adverse Benefit Determination 
  
 In any case of an Adverse Benefit Determination of a claim for a Plan benefit, the Benefits Administrator or the Committee shall furnish written notice to
the affected Claimant within a reasonable period of time but not later than 90 days after receipt of such claim for Plan benefits (or within 180 days if special circumstances necessitate an extension of the 90-day period and the Claimant is informed
of such extension in writing within the 90-day period and is provided with an extension notice consisting of an explanation of the special circumstances requiring the extension of time and the date by which the benefit determination will be
rendered). Any notice that denies a benefit claim of a Claimant in whole or in part shall, in a manner calculated to be understood by the Claimant: 
  

	 	(a)	State the specific reason or reasons for the Adverse Benefit Determination; 

  

 A-2 

	 	(b)	Provide specific reference to pertinent Plan provisions on which the Adverse Benefit Determination is based; 

  

	 	(c)	Describe any additional material or information necessary for the Claimant to perfect the claim and explain why such material or information is necessary; and

  

	 	(d)	Describe the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under
section 502(a) of ERISA following an Adverse Benefit Determination on review. 

  
 6. Review of Adverse Benefit Determination 
  
 A Claimant has the right to have an Adverse Benefit Determination reviewed in accordance with the following claims review procedure: 
  

	 	(a)	The Claimant must submit a written request for such review to the Committee not later than 60 days following receipt by the Claimant of the Adverse Benefit Determination
notification; 

  

	 	(b)	The Claimant shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits to the Committee;

  

	 	(c)	The Claimant shall have the right to have all comments, documents, records, and other information relating to the claim for benefits that have been submitted by the Claimant
considered on review without regard to whether such comments, documents, records or information were considered in the initial benefit determination; and 

  

	 	(d)	The Claimant shall have reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits free of charge upon request, including
(i) documents, records or other information relied upon for the benefit determination, (ii) documents, records or other information submitted, considered or generated without regard to whether such documents, records or other information were relied
upon in making the benefit determination, and (iii) documents, records or other information that demonstrates compliance with the standard claims procedure. 

  
 The decision on review by the Committee will be binding and conclusive upon all persons, and the Claimant shall neither be required nor be
permitted to pursue further appeals to the Committee. 
  
 7.
Notification of Benefit Determination on Review 
  
 Notice of the
Committee’s final benefit determination regarding an Adverse Benefit Determination will be furnished in writing or electronically to the Claimant after a full and fair review. Notice of an Adverse Benefit Determination upon review will:

  

	 	(a)	State the specific reason or reasons for the Adverse Benefit Determination; 

  

	 	(b)	Provide specific reference to pertinent Plan provisions on which the Adverse Benefit Determination is based; 

  

	 	(c)	 State that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information
relevant to the 

  

 A-3 

	 	 
Claimant’s claim for benefits, including (i) documents, records or other information relied upon for the benefit determination, (ii) documents, records
or other information submitted, considered or generated without regard to whether such documents, records or other information were relied upon in making the benefit determination, and (iii) documents, records or other information that demonstrates
compliance with the standard claims procedure; and 

  

	 	(d)	Describe the Claimant’s right to bring an action under section 502(a) of ERISA. 

  
 The Committee shall notify a Claimant of its determination on review with respect to the Adverse Benefit Determination of the Claimant
within a reasonable period of time but not later than 60 days after the receipt of the Claimant’s request for review unless the Committee determines that special circumstances require an extension of time for processing the review of the
Adverse Benefit Determination. If the Committee determines that such extension of time is required, written notice of the extension (which shall indicate the special circumstances requiring the extension and the date by which the Committee expects
to render the determination on review) shall be furnished to the Claimant prior to the termination of the initial 60-day review period. In no event shall such extension exceed a period of 60 days from the end of the initial 60-day review period. In
the event such extension is due to a Claimant’s failure to submit necessary information, the period for making the determination on review will be tolled from the date on which the notification of the extension is sent to the Claimant until the
date on which the Claimant responds to the request for additional information. 
  
 8. Exhaustion of Administrative Remedies 
  
 Completion of the claims procedures described in this document will be a condition precedent to the commencement of any legal or equitable action in connection with a claim for benefits under the Plan by a Claimant or
by any other person or entity claiming rights individually or through a Claimant; provided, however, that the Committee may, in its sole discretion, waive compliance with such claims procedures as a condition precedent to any such action.

  
 9. Payment of Benefits 
  
 If the Benefits Administrator or Committee determines that a Claimant is
entitled to a benefit under the Plan, payment of such benefit will be made to such Claimant as soon as administratively practicable after the date the Benefits Administrator or Committee determines that such Claimant is entitled to such benefit or
on such other date designated by the Committee in accordance with the terms of the Plan. 
  
 10. Authorized Representatives 
  
 An authorized representative may act on behalf of a Claimant in pursuing a benefit claim or an appeal of an Adverse Benefit Determination. An individual or entity will only be determined to be a Claimant’s authorized representative for
such purposes if the Claimant has provided the Committee with a written statement identifying such individual or entity as his authorized representative and describing the scope of the authority of such authorized representative. In the event a
Claimant identifies an individual or entity as his authorized representative in writing to the Committee but fails to describe the scope of the authority of such authorized representative, the Committee shall assume that such authorized
representative has full powers to act with respect to all matters pertaining to the Claimant’s benefit claim under the Plan or appeal of an Adverse Benefit Determination with respect to such benefit claim. 
  

 A-4 

 11. Amendments 
  
 These procedures may be amended in accordance with the provisions of, and subject to the limitations set forth in, Section 5.2 of the Plan. 
  

 A-5Letter of Intent

 Exhibit 10.1 
  
 GLOBAL EPOINT, INC. 
 339 S. Cheryl Lane 
 City of Industry, CA 91789 
  
 May 27, 2005 
  
 Astrophysics, Inc. 
 21481 Ferrero Parkway

 City of Industry, CA 91789 
 Attention: Francois Zayek, Chief
Executive Officer 
  
 Re:     Proposed
Acquisition of Astrophysics, Inc. 
  
 Gentlemen: 
  
 This letter is intended to confirm our mutual intent to pursue the proposed
purchase by Global ePoint, Inc., a Nevada corporation, or one of its affiliates or subsidiaries, now existing or to be created (“Global”), of Astrophysics, Inc., a California corporation
(“Astrophysics”), and to engage in certain related transactions, as more fully described in and subject to the terms and conditions set forth on Exhibit A (the “Term Sheet”) attached to and made a part
of this letter, which we refer to as the “Letter of Intent.” 
  
 The parties acknowledge and understand that the Term Sheet does not constitute a legally binding obligation or commitment of the parties hereto and that
no such legally binding obligation or commitment shall exist unless and until the execution and delivery of definitive and binding agreements by the parties (the “Definitive Agreements”). However, in consideration of the
financial expense that has been and will continue to be devoted by the parties to pursuing the proposed transaction, this will confirm that the numbered provisions below, upon execution of this Letter of Intent, will constitute the legal and binding
obligations of the parties. 
  
 1. The recipient of Confidential
Information (as defined below) agrees that from the date of this Letter of Intent it will (i) keep the Confidential Information confidential, (ii) not use Confidential Information of the disclosing party except as is necessary to evaluate the
transaction described herein and (iii) not disclose to third parties any of the Confidential Information, unless otherwise required by law or applicable SEC or Nasdaq reporting regulations. The parties acknowledge and agree that Global may publicly
announce this Letter of Intent by way of press release and Current Report on Form 8-K filed with the Securities and Exchange Commission, including the filing of the Letter of Intent as an exhibit to such Form 8-K, subject to the approval of content
by Astrophysics which shall not be unreasonably withheld. The receiving party may make the Confidential Information available only to its officers, directors, employees, advisors and, in the case of Global, investment bankers and potential investors
involved in the proposed Financing (as defined in the Term Sheet) who have a need for such access; provided that the 

 Astrophysics, Inc. 
 May 27, 2005 
  Page
 2
 
  

 receiving party has informed all such persons of the provisions of this Letter of Intent and such persons have agreed
in writing to be bound by these terms. The receiving party may make only the minimum number of copies of any Confidential Information required to evaluate the proposed transaction. All proprietary and copyright notices in the original must be
affixed to copies or partial copies. 
  
 If a recipient of
Confidential Information or any of its representatives is required by law (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to disclose all or any part of the Confidential Information, the
recipient shall and shall cause its representatives, as the case may be, to (i) immediately notify the disclosing party of the existence, terms and circumstances surrounding such request, (ii) consult with the disclosing party on the advisability of
taking legally available steps to resist or narrow such request and (iii) assist the disclosing party in seeking a protective order or other appropriate remedy. If such protective order or other remedy is not obtained or the disclosing party waives
compliance with the provisions hereof, (i) the recipient or its representatives, as the case may be, may disclose only that portion of the Confidential Information which it is advised by counsel is legally required to be disclosed, and shall
exercise reasonable commercial efforts to obtain assurance that confidential treatment will be accorded such Confidential Information, and (ii) the recipient shall not be liable for such disclosure unless disclosure was caused by or resulted from a
previous disclosure by the recipient or its representatives that was prohibited by this Letter of Intent. 
  
 “Confidential Information” means (i) the existence and terms of this Letter of Intent, the facts and content of all
discussions relating to the proposed transaction (including the proposed terms and conditions), the fact the parties have made information available to each other and/or that discussions or negotiations have taken place concerning a possible
transaction, and (ii) any information that is furnished orally or in writing (whatever the form or storage medium) or gathered by inspection, and regardless of whether such information is specifically identified as “confidential”.

  
 The receiving party shall not be obligated to maintain any
information in confidence or refrain from use, if: (a) the information was in the receiving party’s possession or was known to it prior to its receipt from the disclosing party; (b) the information is or becomes public knowledge other than as a
result of a disclosure by the receiving party or its representatives in violation of this Letter of Intent; or (c) the information is or becomes rightfully available on an unrestricted basis to the receiving party from a source other than the
disclosing party; provided that such source, to the receiving party’s knowledge, is not prohibited from disclosing such information to the receiving party by a contractual, legal or fiduciary obligation to the disclosing party or its
representatives. 
  
 Within three (3) days of the Termination Date
(as defined below), the receiving party shall immediately return to the disclosing party all copies of Confidential Information received by it or its representatives or, if the disclosing party requests, shall immediately destroy all such
Confidential Information, and shall certify such destruction to the disclosing party. 

 Astrophysics, Inc. 
 May 27, 2005 
  Page
 3
 
  

 Astrophysics understands that in the course of the discussions regarding the proposed transaction it
may come into possession of material non-public information concerning Global under U.S. securities laws and regulations and will not, and will use reasonable commercial efforts to cause its affiliates and personnel to not, effect any purchase or
sale of Global’s common stock or effect any transaction involving a derivative security relating to Global’s common stock (including, but not limited to, options, warrants, puts, calls, collars and the like) so long as such person is in
possession of or has access to Global material non-public information. 
  
 Each party hereto will not, without the written consent of the other party, for a period of two years from the date of this Letter of Intent directly or indirectly solicit for employment any person who is now employed by the other party in
an executive or management level position; provided, however, nothing contained herein shall prohibit a party from soliciting or hiring any person provided that such solicitation and hiring results from a general employment
solicitation made to the public. 
  
 2. Astrophysics agrees that
from the date hereof until the earlier of (i) the date the parties mutually agree in writing to terminate this Letter of Intent, or (ii) June 30, 2005 (the earlier to occur of such dates is referred to as the “Termination
Date”), Astrophysics will not solicit, initiate discussions, engage in or encourage discussions with, or enter into any agreement with, any party relating to the possible acquisition of Astrophysics (by way of merger, purchase of
capital stock, purchase of assets, license, lease or otherwise) or any material portion of its capital stock or assets (collectively, a “Restricted Transaction”) or permit its employees, agents or shareholders to enter into
such agreement. Further, in the event that during this period Astrophysics is contacted by any third party expressing an interest in discussing a Restricted Transaction with Astrophysics, Astrophysics will promptly (within one day of receipt)
provide Global with the name of the potential acquirer and the terms and conditions of such proposed Restricted Transaction. Each of the parties will use reasonable commercial efforts to complete the acquisition or to terminate it as provided for
herein, as promptly as practicable. 
  
 3. From the date hereof
until either (i) the Termination Date, or (ii) the date that the Definitive Agreements are executed and delivered, Astrophysics will conduct its business in the normal and ordinary course, consistent with prior practices, and will also consult with
Global on an on-going basis regarding any proposal to undertake business activities not in the ordinary course. 
  
 4. Each party represents and warrants to the other that neither it nor any of its affiliates is a party to and/or bound by any agreement which conflicts
with this Letter of Intent or would prevent it from entering into Definitive Agreements upon the terms contemplated by the Term Sheet. 
  
 5. Each party acknowledges that a breach by it of its obligations under paragraphs 1 and 2 this Letter of Intent could cause irreparable harm to the
other. Accordingly, each acknowledges that the remedy at law for breach of such obligations hereunder could be inadequate and agrees, in the event of a breach or threatened breach by a party of such provisions, that the other party shall be
entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring immediate performance hereunder, without the necessity of showing economic loss, and without any bond or other security being required.

 Astrophysics, Inc. 
 May 27, 2005 
  Page
 4
 
  

 6. Astrophysics represents and warrants that this Letter of Intent, and specifically paragraph 2
herein, has been unanimously approved by the stockholders of Astrophysics. 
  
 7. Each of the parties represents and warrants that this Letter of Intent has been approved by its board of directors. 
  
 8. This Letter of Intent shall be governed by the laws of the State of California, without giving effect to conflict of law principles. The parties agree
that any claim or cause of action arising from or relating to this Letter of Intent and the transactions contemplated hereby shall be subject to the exclusive jurisdiction of the Federal or State courts located in Los Angeles County, California.

  
 9. Upon the signing of this Letter of Intent, Global will
provide a nonrefundable deposit to Astrophysics of $500,000 and a bridge loan of $500,000 to Astrophysics upon reasonable and customary terms. On or after June 1, 2005, Astrophysics may request an additional $1,000,000 loan, on the same terms as the
initial $500,000 loan, based on its working capital requirements, to be funded by Global within 30 days from its receipt of the request and subject to the execution of the Definitive Agreements; provided, however, if the Definitive
Agreements have not been executed by the parties as of June 30, 2005 as the direct result of Global’s failure to use good faith efforts to negotiate and execute the Definitive Agreements, then Global shall be required to fund the $1,000,000
loan in accordance with this Section. On or after the execution of the Definitive Agreements, Astrophysics may request an additional $4,000,000 loan, on the same terms as the initial $500,000 loan, based on its working capital requirements, to be
funded by Global within 30 days from its receipt of the request 
  
 If you are in agreement with the terms and conditions set forth in this Letter of Intent and the attached Term Sheet and desire to proceed on that basis, please sign this Letter of Intent in the space provided below and return an executed
copy to the undersigned no later than 5:00 p.m. (PST) May 31, 2005 or the proposal shall terminate. Upon receiving your signed reply, we will begin the remainder of our due diligence procedures. 

 Astrophysics, Inc. 
 May 27, 2005 
  Page
 5
 
  

 We look forward to concluding a mutually beneficial transaction. 
  

			
	 Very truly yours,

	 GLOBAL EPOINT, INC.

		
	 By:
	 	 /s/ Owen Lee Barnett

	 	 	 Owen Lee Barnett, Chairman of the Special
Committee of the Board of Directors

  
 Agreed to and accepted this

 27th day of May 2005 
  

			
	 ASTROPHYSICS, INC.

		
	 By:
	 	 /s/ Francois Zayek

	 	 	

	 	 	 Francois Zayek, Chief Executive Officer

		
	 cc:
	 	 Global Board of Directors

  
  

 EXHIBIT A TO LETTER OF INTENT 
  
 NON-BINDING CONFIDENTIAL TERM SHEET –
FOR DISCUSSION PURPOSES ONLY 
  
 This term sheet summarizes the principal terms and conditions of the proposed transaction between Global ePoint, Inc. and Astrophysics, Inc. This term sheet is for discussion purposes only and is not intended to
create legal rights or obligations. This term sheet does not constitute a binding agreement or commitment of either party and does not address all of the material terms of the proposed transactions, which will only be addressed after all due
diligence has been completed and definitive agreements have been executed and delivered by the parties. Capitalized Terms used in this Term Sheet not otherwise defined have the meanings given in the Letter of Intent between Global ePoint, Inc. and
Astrophysics, Inc. to which this Term Sheet is an Exhibit. 
  

							
	Transaction Structure	  	It is presently contemplated that the transaction will be structured as the acquisition by a subsidiary of Global (“Global Sub”) of all of the assets of Astrophysics and
the assumption by Global Sub of all of Astrophysics’ liabilities, other than any liabilities specifically excluded by Astrophysics (the “Acquisition”). The parties will discuss the tax implications of this structure and will seek to
achieve a tax-free transaction (other than with respect to the $10 million cash “boot” described below). Although the transaction is structured as an asset acquisition, the parties reserve the right to consider alternative structures,
including a stock purchase or a merger, based on tax and legal due diligence or other reasons.
		
	Consideration	  	In consideration for the Acquisition, at the closing of the Acquisition (the “Closing”), Global will deliver the cash and shares of its common stock set forth
below:
				
	 	  	 	  	•	  	Cash – Global will deliver $10 million of cash to Astrophysics.
				
	 	  	 	  	•	  	Stock – Global will issue to Astrophysics a number of shares of Global common stock that will provide Astrophysics with 50.1% of the outstanding shares of Global common stock after the
consummation of the Acquisition and the Financing.
				
	 	  	 	  	•	  	Rights – Global will issue to Astrophysics the right to receive, for no additional consideration, the number of shares of Global common stock equal to the number of additional shares of
common stock that would have been issued to Astrophysics if the outstanding Global common stock at the Closing included the number of shares of common stock that are issued at any time in the future upon exercise or conversion of (i) any warrants,
stock options, preferred stock or other securities that are convertible into or exercisable for shares of Global common stock that are outstanding at the Closing (including any warrants or other securities that are convertible into or exercisable
for Global common stock issued in the Financing); (ii) Global stock options issued in replacement of Astrophysics options at the Closing; and (iii) 200,000 additional Global stock options.
		
	 	  	The Acquisition would be valued based on a 20-day moving average stock price.
		
	Astrophysics Working Capital	  	At the Closing, Global will invest in Global Sub $10 million (less the amount of any bridge loans made to Astrophysics in excess of the initial $500,000 loan funded upon execution
of the Letter of Intent) for working capital purposes.
		
	Financing	  	In order to finance the cash consideration for the Acquisition and to provide Global and Astrophysics with additional working capital, Global shall issue not less than $30 million
of its equity securities prior to the Closing (the

			
	 	  	“Financing”), inclusive of any equity financings consummated at or about the time of the execution of the Letter of Intent. The $30 million Financing proceeds shall be used as
follows: (i) $10 million shall be paid as the cash consideration for the Acquisition as provided above; (2) $10 million shall be provided to Astrophysics for working capital as provided above; and (iii) $10 million shall be retained by Global for
working capital purposes. The terms and conditions of the Financing and the purchasers of the Global equity securities shall be acceptable to Astrophysics in its reasonable discretion.
		
	Shareholder Approval	  	The stockholders of Astrophysics shall approve the Acquisition and Definitive Agreements prior to their execution and delivery by Astrophysics. The Acquisition and Definitive Agreements shall
be subject to the approval of the stockholders of Global and Global shall hold a special meeting of stockholders as soon as practicable following the execution of a Definitive Agreement. Astrophysics shall cooperate with Global in Global’s
preparation of an appropriate proxy statement (“Proxy Statement”) to be filed with the Securities and Exchange Commission and delivered to Global’s stockholders.
		
	 Stock Options;
 Other Stock
Rights
	  	Any outstanding options, warrants or rights to purchase capital stock or other securities of Astrophysics will terminate as of the Closing to the extent that such warrants or other rights
have not been exercised prior to the Closing; provided that employee stock options shall be converted into similar options to purchase Global common stock upon terms determined by the parties.
		
	 Representations and
 Warranties;
Closing
 Conditions
	  	 Prior to entering into the Definitive Agreements, Global shall have received a fairness opinion from an independent valuation firm that the
Acquisition, including the Financing, is fair from a financial point of view to the stockholders of Global.
  
 The Definitive Agreements shall include customary representations, warranties and covenants for an acquisition transaction of this nature.
  
 Global’s obligation to effect the Closing will be conditioned upon the following: (i) delivery to Global prior to the execution of the
Definitive Agreements of two years of audited financial statements for the years ending December 31, 2004, 2003 and 2002 with unqualified audit opinions and the appropriate consents from Astrophysics’ auditors for inclusion of their audit
opinions in Global’s SEC filings, (ii) interim unaudited financial statements for the quarter ended March 31, 2005, (iii) the representations and warranties of Astrophysics being true and correct in all material respects, (v) all covenants of
Astrophysics having been complied with in all material respects, (vi) applicable regulatory clearance, no injunctions or restraints applicable to the Closing, and no litigation seeking such a result, (vii) requisite stockholder by Global, (viii) no
material adverse change with respect to Astrophysics, (ix) the effectiveness of employment agreements, and the continued employment of the Specified Employees and the Retained Employees to be identified by Global and (x) receipt of all material
third party consents.
  
 Astrophysics’ obligation to effect the Closing will
be conditioned upon the following: (i) the terms and conditions of the New Financing shall be acceptable to Astrophysics in its reasonable discretion, (ii) the representations and warranties of Global being true and correct in all material respects,
(iii) all covenants of Global having been complied with in all material respects, (iv) applicable regulatory clearance, no injunctions or restraints applicable to the Closing, and no litigation seeking such a result, (v) no material adverse change
with respect to Global, (vi) receipt of all material third party consents.

			
	Indemnity	  	 Astrophysics and its stockholders will indemnify Global for claims, damages, costs and expenses related to breaches of representations, warranties
and covenants, any litigation claims against Astrophysics, and for other matters agreed to by the parties. Such claims for indemnification arising out of representations and warranties will be subject to a deductible of $700,000 and a cap of $10
million. Claims under $10,000 shall not be reimbursable and shall not count against the deductible or the cap. This indemnity obligation will survive for a period of 15 months after the closing, except that indemnity for breach of Astrophysics’
representations regarding tax matters shall survive for the applicable statute of limitations plus 30 days. If any specific matter is identified in diligence, there may be an adjustment to the indemnity and escrow terms. The indemnity obligations
under this paragraph shall terminate if the Astrophysics business generates revenue of $15 million or more on a trailing twelve months basis at any time after the closing of the Acquisition.
  
 Global will indemnify Astrophysics for claims, damages, costs and expenses related to
breaches of representations, warranties and covenants, any litigation claims against Global, and for other matters agreed to by the parties. Claims for indemnification arising out of representations and warranties will be subject to a deductible of
$700,000 and a cap of $10 million. Such claims under $10,000 shall not be reimbursable and shall not count against the deductible or the cap. This indemnity obligation will survive for a period of 15 months after the closing, except that indemnity
for breach of Global’s representations regarding tax matters shall survive for the applicable statute of limitations plus 30 days. If any specific matter is identified in diligence, there may be an adjustment to the indemnity and escrow
terms.

		
	Operation of the Business	  	The Definitive Agreements will contain a covenant similar to that set forth in Paragraph 3 of the Letter of Intent, providing that until (i) cessation of discussions between Astrophysics and
Global, or (ii) the date of the closing, each of the parties will conduct their respective businesses in the normal and ordinary course, consistent with prior practices, and will also consult with each other on an on-going basis regarding any
business activities not undertaken in the ordinary course, including without limitation, any license agreements (other than standard end user license agreements), OEM agreements, “bundling” agreements, or other material contracts into
which either party proposes to enter.
		
	Termination Events	  	(i) By mutual agreement; (ii) by either party if the closing does not occur by August 30, 2005; (iii) by Global if it fails to obtain requisite Global stockholder approval; (iv) by
Astrophysics if Global is unable to consummate the Financing on terms and conditions that are acceptable to Astrophysics in its sole discretion; (v) if the Acquisition is enjoined or becomes illegal; (vi) by either party if the other party is in
material breach of the Definitive Agreements that is non-curable or is not cured following notice and a reasonable cure period; or (vii) by either party if a material adverse change occurs with respect to the other party.
		
	Exclusivity	  	The Definitive Agreements will contain an exclusivity covenant similar to that set forth in Paragraph 2 of the Letter of Intent, subject to a standard fiduciary out in the case of Global.
Each party will promptly inform the other of any alternative proposals or requests for information, including the identity of the party making such proposal or request, unless such disclosure would violate a currently existing confidentiality
agreement.
		
	Timing	  	Negotiation of final Definitive Agreements, completion of due diligence and receipt of all required Board and Astrophysics, stockholder approvals by June 25, 2005. Signing of Definitive
Agreements by June 30, 2005 with closing on such date or as soon thereafter as all conditions to closing are either satisfied or waived. Definitive agreements for the Financing would be negotiated and executed concurrently with the Definitive
Agreements for the Acquisition. The Financing will be closed concurrently with the Acquisition.

			
	Fees and Expenses	  	Global and Astrophysics will each pay their own fees and expenses (including legal, accounting, investment banking and financial advisory fees and expenses) with respect to the proposed
transactions.
		
	Global Board of Directors	  	All members of Global’s board of directors will resign upon the closing and the former Astrophysics stockholders will elect new directors.

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