Exhibit 10.3


 


Portions of this exhibit have been omitted pursuant to a
request for confidential treatment filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934. Such portions are marked “[*]” in this document; they have been filed separately with the Commission.


 


January 30. 2013


 


Globalstar Inc


Att: Paul Monte


461 SO Milpitas Blvd


Milpitas, CA 95035


 


Subject: Globalstar requested payment delays and
"temporary hold" - Third Extension Dear


 


Paul,


 


In response to your third request to defer outstanding
and accumulated payments for the Globalstar CN Program, your contract number GINC-C-08-0400 (the "Agreement"), this letter
acknowledges the agreement by Ericsson to defer the payments for achieved and upcoming Payment Milestones as defined in the Agreement
and in the letter agreement PJR0311-002 dated March 7, 2011 and subsequent letter agreements on this subject. Specifically this
deferral consists of:


 


$347,658 CDR ($929,520 less September 2012 payment
of $581,862 = $347,658)


 


$0 down payment Supplementary Services contracted
in Dec 2011 ($130,375 less July 2012 payment of $130,375 = $0)


 


$0 Delivery Milpitas lab HW ($1,500,000 less March
2012 payment of $650,000 less July 2012 payment of $781,862 less September 2012 payment of $68,138 = $0.)


 


$0 for amendment 5 — Genband /Server Delta
Lab ($12.763 less July 2012 payment of $12,763 = $0)


 


$347,658 Total owed Feb 23rd 2012


 


$2,100,000 for Clifton HW Install Complete, delivered
in March, 2012 $0 for lab rental ($25,000 less July


 


2012 payment of $25,000 = $0) $110,305 Nigeria Lab Testing Complete


 


Total additional owed before June 28th
2012: $2,210,305


 


In addition to the above, Globalstar also owes
5 quarterly support payments for BSCS


Support as follows:


January 31, 2012: [*]


April 30. 2012: [*}


July 31, 2012: [*]


October 31, 2012: [*]


January 31, 2013: [*]


 




    	 



    	 



    

 


Total deferral: $2,726,713


 


Subject to your consent as indicated below, Ericsson
Inc. ("Ericsson") would agree as follows:


 


		a)	Assuming the Payment Milestone is completed and invoiced, Globalstar shall pay any unpaid milestone payments in Exhibit C and
C-1 of the Agreement (referred to as "Deferred Payments") upon the earlier of the completion of a third party
source of financing or June 151, 2013. Upon such payment, Globalstar and Ericsson will use good faith efforts to come
to a mutual agreement on a revised milestone payment schedule and amend Exhibits C and C1 of the Agreement.



 


		b)	In consideration for agreeing to the Deferred Payments, Globalstar shall pay six and a half percent (6.5%) per annum interest
on the Deferred Payments. Interest shall begin to accrue after the 3151 day of acceptance of the completion of any Payment
Milestone and shall be paid at the same time as the Deferred Payment is made.



 


		c)	For any material event, such as change of ownership, bankruptcy filing, material investment, shareholder or ownership changes
affecting control (i.e. the ownership and/or ability to vote more than 50% of the total shares), breach of obligations, failure
to pay debts, and the like, the Deferred Payments become due and payable immediately.



 


		d)	Due to delays by Globalstar in delivering necessary Customer Furnished Equipment for the Core Network Program (both as defined
in the Agreement), the only work that will be performed by Ericsson between now and when the project is resumed under a
new mutually agreed milestone schedule (the "Temporary Hold Period") will be the completion of the following agreed punch
list items for the Milpitas lab:



 


1. Loading and testing of the
QoS patch in the SGSN including any necessary software reinstallation of software in the SGSN planned for Q1 2013


 


Should Globalstar require installation (including
upgrading the software on all boxes to the same version that is on the Milpitas lab), and integration of the Clifton Site 1 during
the Temporary Hold Period, Ericsson will initiate such work within 4 weeks of Globalstar satisfying the following 3 requirements:


 


1.   Globalstar
notifies Ericsson that the site is ready for integration including completion of Globalstar's agreed deliverables such as Power;
and


2.   Ericsson's
receipt of a written request for the integration work; and


3.   Ericsson
receives a cash payment of the contracted fee of [*] for the integration project plus a contract amendment for the [*] fee for
providing and integrating the software upgrades to the Clifton site to the same level as is present in the Milpitas lab. The [*]
cash payment amount will be deducted from the future payment milestone "SAT sites 1-3" and Exhibit C will be updated
accordingly.


 




    	 



    	 



    

 


		e)	Globalstar understands and agrees that the above "temporary hold" will cause a delay to the Core Network Program,
and that Ericsson cannot guarantee a day-for-day schedule delay nor can Ericsson commit to re-staffing the project with the same
individuals as have been assigned to-date when the Core Network Program resumes as these individuals may have been assigned to
other long term Ericsson projects. Ericsson will use commercially reasonable efforts to limit any such delay caused by such "temporary
hold" to a period of time equal to the length of the Temporary Hold Period plus four months. Ericsson will not be obligated
to perform any work until the project is resumed and a new milestone schedule is agreed. Upon Ericsson's resumption of work, Globalstar
agrees to pay Ericsson a project re-setup fee of $250,000.00.



 


Globalstar and Ericsson agree that the delays in the
Core Network Program have created issues regarding the obsolescence of certain program features (specifically 1. HPA including
"NRSPCA on offer"; 2. Push-to-Talk; and 3. Sigcomp). Upon the signing of this letter agreement, Globalstar and Ericsson
agree to continue the good faith technical discussions agreed to in the letter agreement dated March 8, 2012 relating to HPA and
"NRSPCA on offer". Globalstar agrees to forego the requirements for Push-To-Talk and Sigcomp previously committed to
and Ericsson agrees to credit Globalstar for the elimination of these requirements. Globalstar and Ericsson will use good faith
efforts to come to mutual agreement on the technical solution for HPA and "NRSPCA on offer" at the conclusion of such
discussions. However, Ericsson will not commit to deliver the agreed solution on a particular schedule due to the delays in payment
as outlined in a) above. Globalstar and Ericsson agree to enter into good faith commercial discussions upon Ericsson's receipt
of all monies due in this letter agreement regarding the ordering and delivery of the revised HPA and "NRSPCA on offer"
functionality and any commercial impacts following Ericsson's receipt of the Deferred Payments. At that time, Globalstar and
Ericsson will execute a contract amendment reflecting the agreed solution for HPA and "NRSPCA on offer" and the elimination
of Push-To-Talk and Sigcomp. Should the parties be unable to agree on the above technical solution by August 31, 2013 then either
Globalstar or Ericsson may choose to terminate the Agreement. Thereafter, provided that all amounts due under this letter agreement
have been paid, neither party will have any liability whatsoever under the Agreement.


 


		f)	This letter agreement will become effective upon GlobeIstar's signature below and Globalstar's payment to Ericsson of $200,000
paid as follows: $100,000 on or before February11. 2013 and $100,000 on or before February 28, 2013. The first payment of $100,000,
when paid, will be used to reduce the balance for the Nigeria Lab Testing Complete from $110,305 to $10,305. The second $100,000
will be applied as follows: $10,305 will be used to eliminate the remaining $10,305 for the Nigeria Lab Testing Complete and $89,695
will be used to reduce the balance for CDR from $347,658 to $257,963. The letter agreement between the parties dated July 17, 2012
is hereby superseded by this letter agreement.



 


		g)	Globalstar requests the following payment modifications:



 


1.          If
Globalstar has not paid Ericsson the amount due. together with interest and


any other amounts owing under the Agreement as of
June 1st 2013, Globalstar may

terminate the Agreement for convenience by delivering such written notice of the termination and agreeing to make a final payment
of $10,000,000 ("Final Payment") to Ericsson.


2.          If
Globaistar cancels the Agreement for convenience on June 1st, 2013, then Globalstar shall make the Final Payment either:
(a) in cash not later than June 15, 2013 or (b) subject to paragraph 4 below, in Globalstar common stock (OTC: GSAT, the "GSAT
Stock") not later than June 15, 2013. Globalstar shall provide written notice of such its request to pay in cash or GSAT Stock
on June 1St, 2013.


 




    	 



    	 



    

 


3.          If
payment is to be made in GSAT Stock, such GSAT Stock shall be registered and freely tradable, free and clear of any liens, encumbrances
or other restrictions. The number of shares delivered by Globalstar to Ericsson shall be equal to the Final Payment plus 5%, divided
by the volume weighted average price of GSAT for the 20 trading days immediately prior to (but not including) the date of delivery
of such shares. If Globalstar requests to make the Final Payment in GSAT Stock, Ericsson shall have the option (exercisable by
written notice delivered on or before June 10, 2013) either to accept such GSAT Stock (including the additional 5% mentioned in
the above paragraph) or to receive the Final Payment in cash from the sale of such GSAT stock by Globalstar and/or from other sources
who will then remit the full amount of the Final Payment. Under no circumstance would Globalstar remit less than the total Final
Payment amount.


 


h) Except
as modified hereby, the terms and conditions of the Agreement will continue on in full force and effect.


 


If Globalstar concurs with the
foregoing, please execute a copy of this letter and return it to my attention at Ericsson.


 





	 	Sincerely,
	 	 
	 	  /s/  Johan Westerberg
	 	ERICSSON INC.
	 	Johan Westerberg
	 	Vice President Eastern Region







 







    	 



    	 



    

 


Agreed and accepted by Ericsson Inc and
Globalstar Inc:


 


	Ericsson Inc.	 	Globalstar Inc
	 	 	 
	  /s/  Johan R. Westerberg	 	  /s/  David Milla
	Name:  Johan R. Westerberg	 	Name:  David Milla
	Title:  Vice President Sales	 	Title:  Director – Contracts
	Date:  February 13, 2013	 	Date:  February 11, 2013