<SEC-DOCUMENT>0000897101-20-000595.txt : 20200804
<SEC-HEADER>0000897101-20-000595.hdr.sgml : 20200804
<ACCEPTANCE-DATETIME>20200804104341
ACCESSION NUMBER:		0000897101-20-000595
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200730
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200804
DATE AS OF CHANGE:		20200804

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMMUNICATIONS SYSTEMS INC
		CENTRAL INDEX KEY:			0000022701
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				410957999
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31588
		FILM NUMBER:		201071725

	BUSINESS ADDRESS:	
		STREET 1:		10900 RED CIRCLE DRIVE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
		BUSINESS PHONE:		9529961674

	MAIL ADDRESS:	
		STREET 1:		10900 RED CIRCLE DRIVE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>csi201192_8k.htm
<DESCRIPTION>FORM 8K DATED JULY 30, 2020
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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">United States<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT STYLE="font-size: 14pt">Washington, D.C. 20549</FONT></P>

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<P STYLE="font: bold 20pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center"></P>

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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (date of earliest event reported):
<B> July 30, 2020</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 20pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: bold 20pt Times New Roman, Times, Serif; margin: 0; text-align: center">Communications Systems, Inc.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">(Exact name of Registrant
as Specified in its Charter)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><FONT STYLE="font-size: 12pt"><B>Minnesota</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">(State Or Other Jurisdiction
Of Incorporation)</P>

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    <TD STYLE="width: 50%; text-align: center; text-indent: 0in"><B>001-31588</B></TD>
    <TD STYLE="width: 50%; text-align: center; text-indent: 0in"><B>41-0957999</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="text-align: center; text-indent: 0in"><FONT STYLE="font-size: 10pt">(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>10900 Red Circle Drive</B></P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Minnetonka, MN</B></P></TD>
    <TD STYLE="text-align: center"><B>55343</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Address Of Principal Executive Offices)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Zip Code)</FONT></TD></TR>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><B>(952) 996-1674</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">Registrant&rsquo;s Telephone
Number, Including Area Code</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
registered pursuant to Section 12(b) of the Act:</FONT></P>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0pt">&nbsp;</P>

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    <TD STYLE="width: 42%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title
    of each class</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trading</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Symbol</FONT></P></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 42%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name
    of each exchange on which registered</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock, par
    value, $0.05 per share</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">JCS</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NASDAQ
        Global Market</FONT></P>
        </TD></TR>
</TABLE>


<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written
communications pursuant to Rule 425 under the Securities Act</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act</P>

<P STYLE="font: 12pt/13pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/13pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17
CFR &sect;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17
CFR &sect;240.12b-2). &nbsp;&#9744;</font></p>


<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Emerging growth company &#9744;</P>

<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &nbsp;&#9744;</font></p>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 1.02</TD><TD>Termination of a Material Definitive Agreement</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 1pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in">On July 30, 2020, Transition Networks,
Inc. (&#8220;Seller&#8221;), a Minnesota corporation and wholly owned subsidiary of Communications Systems, Inc. (the &#8220;Company&#8221;)
entered into a Termination of Real Estate Purchase Agreement (&#8220;Termination Agreement&#8221;) with Launch Properties, LLC,
a Minnesota limited liability company (&#8220;Buyer&#8221;). Buyer and Seller were parties to a purchase agreement dated August
2, 2018, and subsequently amended, under which Buyer had agreed to purchase from Seller the 105,000 square-foot building in Minnetonka,
Minnesota where the Company&#8217;s executive and administrative offices are located (the &#8220;Property&#8221;). Under the terms
of the Termination Agreement, Buyer and Seller agreed that the purchase agreement, as amended, was terminated and is no longer
in effect, except for any indemnification rights that Seller might have against Buyer under the purchase agreement. Seller represented
in the Termination Agreement that it is not aware of any claims for indemnification that would trigger Buyer&#8217;s obligations
under the indemnification provisions of purchase agreement. Under the Termination Agreement, the parties confirmed, based on the
original purchase agreement and amendments, that the escrow amount of $225,000 paid by Buyer under the purchase agreement, as amended,
would be forfeited and paid directly to Seller by the third-party title escrow company.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 8.01</TD><TD>Other Events</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 1pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in">As noted above in Item 1.02, on July
30, 2020, the Company&#8217;s Transition Networks, Inc. subsidiary, as Seller, entered into a Termination Agreement with Buyer
to terminate the purchase agreement for the Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in">The Company has entered into a new listing
agreement to relist the Property for sale. This allows the Company to consider options while it also determines its future office
and warehouse space needs considering (i) its May 14, 2020 acquisition of Ecessa Corporation, (ii) the Company&#8217;s corporate
development and M&amp;A strategy, and (iii) the continuing effect of the COVID-19 pandemic, which on one hand would suggest employees
require more physical office space around their work areas and on the other hand would suggest the Company might require less office
space if a significant number of employees continue to work remotely. The Company has not committed to a specific plan considering
the many uncertainties related to the duration of COVID-19 pandemic and its effect on the national and world economies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in">The Company will provide additional information
about developments in this area as they occur.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 9.01</TD><TD>Financial Statements and Exhibits</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">(d) Exhibits</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%; border: Black 1pt solid; padding-right: -19.05pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 21.35pt">Exhibit Number</TD>
    <TD STYLE="width: 73%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: -19.05pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 21.35pt">Exhibit Name</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: -19.05pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 21.35pt"><A HREF="csi201192_ex10-1.htm">10.1</A> </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="csi201192_ex10-1.htm">Termination of Real Estate Agreement dated as of July30, 2020, by and between Transition Networks, Inc. and Launch Properties, LLC.</A></TD></TR>
</TABLE>
<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center">SIGNATUREs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-indent: 0.5in">COMMUNICATIONS SYSTEMS, INC.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in">By: <U>/s/ Mark D. Fandrich&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-indent: 0.25in">Mark D. Fandrich, Chief Financial Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Date: August 4, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>csi201192_ex10-1.htm
<DESCRIPTION>TERMINATION OF REAL ESTATE PURCHASE AGREEMENT
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right; text-indent: 0in"><B>Exhibit 10.1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B>TERMINATION OF REAL
ESTATE PURCHASE AGREEMENT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">THIS TERMINATION
OF REAL ESTATE PURCHASE AGREEMENT (&ldquo;<B>Termination</B>&rdquo;) is made and entered into as of this 30th day of July, 2020,
by and between Transition Networks, Inc., a Minnesota corporation (&ldquo;<B>Seller</B>&rdquo;), and Launch Properties, LLC, a
Minnesota limited liability company (&ldquo;<B>Buyer</B>&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B>Recitals</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">A.</TD><TD STYLE="text-align: justify">Buyer and Seller are parties to that certain Purchase Agreement dated August 2, 2018 (&ldquo;<B>Original
Purchase Agreement</B>&rdquo;), as amended by that certain First Amendment of Purchase Agreement dated July 2, 2019 (the &ldquo;<B>First
Amendment</B>&rdquo;), that certain Second Amendment of Purchase Agreement dated February 20, 2020 and that certain Third Amendment
of Purchase Agreement dated May 4, 2020 (collectively, the &ldquo;<B>Purchase Agreement</B>&rdquo;), pursuant to which Buyer agreed
to purchase certain real property from Seller on the terms and conditions more particularly described in the Purchase Agreement.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">B.</TD><TD STYLE="text-align: justify">Buyer has deposited $225,000.00 with the Title Company, comprised of the following amounts: $125,000.00,
as required by the Original Purchase Agreement; the First Additional Earnest Deposit of $50,000.00, as required by the First Amendment
and the Second Additional Earnest Deposit of $50,000.00, as required by the First Amendment (collectively, the &ldquo;<B>Earnest
Money</B>&rdquo;).</TD></TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">C.</TD><TD STYLE="text-align: justify">Buyer and Seller desire to terminate the Purchase Agreement pursuant to the terms and conditions
herein.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.25in; text-align: center; text-indent: 0in"><B>Agreement</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In consideration
of the mutual promises and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify"><U>Termination</U>. Buyer and Seller acknowledge and agree that the Purchase Agreement is hereby
terminated and no longer of any force or effect. No party to the Purchase Agreement has any further rights or obligations thereunder,
except that Seller shall be entitled to exercise any rights or remedies it may have pursuant to Section 4.2 of the Original Purchase
Agreement. Seller represents and warrants that it is not aware of any liability, claim, lien or damages that might trigger Buyer&rsquo;s
indemnification obligation in Section 4.2 of the Original Purchase Agreement.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify"><U>Earnest Money</U>. In accordance with Section 7 of the Original Purchase Agreement, as amended
by Section 2(b) of the First Amendment, the parties acknowledge and agree that the Earnest Money in the amount of $225,000.00 is
nonrefundable to Buyer. The parties hereby instruct Land Title, Inc., the Title Company, to release the Earnest Money to Seller
without the requirement for any further documentation or direction from either Seller or Buyer.</TD></TR></TABLE>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify"><U>Further Assurances</U>. The parties agree that, upon request, each party shall furnish such
further information, execute and deliver such other documents, and do such other acts and things, as the other party shall reasonably
request for the purpose of carrying out the intent of this Termination.</TD></TR></TABLE>



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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify"><U>Delivery of Third Party Reports</U>. Buyer shall deposit (by email drop box link) copies of
all third party reports with respect to the Property not previously provided to Seller upon full execution of this Termination.</TD></TR></TABLE>



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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5.</TD><TD STYLE="text-align: justify"><U>Governing Law</U>. This Termination shall be governed by the laws of the State of Minnesota.</TD></TR></TABLE>



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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">6.</TD><TD><U>Capitalized Terms</U>. Unless otherwise defined herein, capitalized terms shall have the meaning ascribed to them in the
Purchase Agreement.</TD></TR></TABLE>



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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">7.</TD><TD STYLE="text-align: justify"><U>Binding Effect</U>. This Termination reflects the entire agreement of the parties with respect
to the matters set forth herein. This Termination shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns.</TD></TR></TABLE>



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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">8.</TD><TD STYLE="text-align: justify"><U>Counterparts</U>. This Termination may be executed in counterparts, and signature upon this
Termination transmitted by electronic means including email or facsimile shall suffice and be binding upon the respective parties.</TD></TR></TABLE>



<P STYLE="font: 1pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties have executed this Termination as of the date first set forth above.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 3in"><B>BUYER</B>:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3in">Launch Properties, LLC,<BR>
a Minnesota limited liability company</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3in">By:<U>&#9;/s/Daniel O. Regan</U><BR>
Name: Daniel O. Regan<BR>
Title: Chief Manager&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 3in"><B>SELLER</B>:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3in">Transition Networks, Inc.,<BR>
a Minnesota corporation</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in 3in">By:<U>&#9;/s/Mark Fandrich<BR>
</U>Name: Mark Fandrich<BR>
Title: Chief Financial Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in">&nbsp;</P>

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