Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.10    
    

 
 

CONFIDENTIAL TREATMENT    
    

Portions
of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of
1933. Such Portions are marked "[*]" in this document; they have been filed separately with the Commission. 

 
 

GLOBALSTAR COMPANIES
  
    DESIGNATED EXECUTIVE INCENTIVE
  COMPENSATION MEMORANDUM    
    

This
is a Memorandum of Agreement ("Memorandum") entered into by GLOBALSTAR LLC (together with its
post-Conversion [defined below] successor, hereinafter individually and collectively "Globalstar"), with the
following employee: FUAD AHMAD ("Participant" and collectively with ANTHONY J. NAVARRA, MEGAN FITZGERALD, ROBERT MILLER,
DENNIS ALLEN, and STEVEN BELL, one of the "Participants"). 

This
Memorandum sets forth the terms and conditions of a supplemental executive incentive compensation program (the "Plan") that Globalstar has made
available severally to each of the Participants. The Memorandum is an integration and complete restatement of all prior documents and discussions between and among Globalstar and any or all of the
Participants concerning the Plan, and completely supersedes and replaces any such prior documents and discussions. The undersigned Participant acknowledges that his opportunity to become a Participant
in the Plan has arisen because of his succession to responsibilities formerly discharged on behalf of Globalstar by
[*], whose status as a Participant terminated on May 31, 2004, and that the undersigned Participant's entitlement under the Plan varies from the entitlement of other
Participants as expressly set forth in Sections 11 (iii) and 11 (v), below. This Plan does not otherwise modify or affect any Participant's terms and conditions of employment by
Globalstar. Anything in this Memorandum to the contrary notwithstanding, the Plan does not, expressly or by implication, create a contract for, or any assurance of, a fixed or minimum duration of
employment by any of the Participants with Globalstar. Each Participant acknowledges and agrees that all agreements and understandings in this Memorandum are expressly made subject to Globalstar's
at-will employment policy, as well as all other applicable terms and conditions of the Globalstar Personnel Policies and Procedures Manual. 

The
understandings and agreements in this Memorandum are personal to the named Participants and do not attach to, nor will they become an incident of, any Participant's office. 

I.    PRINCIPLES  

The
Plan is predicated on the following principles and should be understood and interpreted to be consistent with them: 

	A.
	The
financial interests of all equity holders of Globalstar LCC and its successor corporation (such equity holders being hereinafter referred to for convenience, both before and after
Conversion as "Stockholders") will be enhanced by a financial compensation arrangement that rewards key members of management (the undersigned
Participants) financially in a manner that is linked to increases in the value of Stockholder equity.

	B.
	Incentive
compensation based on equity-like participation in Globalstar LLC (and its successor corporation) by the Participants should and will result in an alignment of
the financial interests of management of Globalstar LLC and its successor with the financial interests of Stockholders.

	C.
	Incentive
compensation should be payable based on increase in the value of Stockholder equity, but only after the value of Stockholder equity has increased by a specified minimum
amount. The Participants acknowledge that the minimum return increase in equity value to all 

 

Stockholders
specified in this Memorandum, to be measured for all Stockholders by a tripling of the value of the "Thermo Investment" (defined below)
within the period beginning April 14, 2004 and ending on the final "Valuation Date" (defined below), is a reasonable standard for measuring the
minimum increase in value of Stockholder equity during this period. 

	D.
	Awarding
incentive compensation to the Participants based on interim increases in Compensatable Value (defined below) should and will
provide an incentive for management to achieve near term objectives, while maintaining focus on long-term growth of Stockholder equity value as the primary objective.

	E.
	Paying
Incentive Compensation over multiple years in accordance with the Annual Payment Limitations (defined below) specified in this
Memorandum should and will promote management's commitment to Globalstar and will be in the best interests of Globalstar. 

II.    DEFINITIONS  

Capitalized
terms used in this Memorandum but not defined elsewhere, either in this Memorandum or in the Operating Agreement (defined below), have the meanings ascribed to them below; provided,
however, that in the event of conflict the definition in this Memorandum shall prevail: 

	(i)
	ACA:    The Asset Contribution Agreement between and among Globalstar, L.P. and others, including Thermo, dated
as of December 5, 2003 and amended April 13, 2004.

	(ii)
	Affiliate(s) (of Thermo):    Persons, natural or otherwise,
who, directly or indirectly, control, are controlled by, or are under common control with Thermo.

	(iii)
	Aggregate Limitation:    Five Million Dollars ($5,000,000) per Participant,  less,
with respect to the undersigned Participant, any amount by which the Annual Payment Limitation for 2007 may have been reduced in accordance with
item (v), below.

	(iv)
	Annual Payment Dates:    With respect to the October 2006 Annual Valuation Date, the final business day
of the first full week in January 2007. With respect to the October 2007 and 2008 Annual Valuation Dates, the corresponding days in January 2008 and 2009.

	(v)
	Annual Payment Limitations:    The greater of (a) these stipulated amounts: $500,000 in 2007, $750,000
in 2008, and $3,750,000 in 2009 or (b) in the case of 2008 and 2009, the stipulated amount for the year in question plus the excess of (1) the sum of stipulated amounts for the year in
question and prior year(s) over (2) the actual amount(s) paid for prior year(s); provided, however, that the Annual Payment Limitation applicable
to 2007 for the undersigned Participant shall be reduced by any sum, not in excess of 7/24 × 5500,000 (i.e. by up to
$145,833) or by such lesser sum (if any) as shall be payable under the Plan in 2007 to a former Participant, [*], pursuant to a certain Memorandum of Agreement dated
January 31, 2005 with respect to termination of [*] 's employment with Globalstar.

	(vi)
	Annual Valuation Date(s):    The final Trading Day in October of 2006, 2007, and 2008;  provided,
however, that after registration of the Shares under the Securities Exchange Act of 1934 in October 2006 it reasonably appears that an
additional stock trading stabilization period is required, the first Annual Valuation Date shall be the final Trading Day of November 2006. This shall not postpone the January 2007
Annual Payment Date.

	(vii)
	Compensatable Value:    The calculated value of the Thermo Equity in excess of the Floor Valuation on the
applicable Valuation Date, determined by (a) adding (1) the cumulative consideration, if any, actually received by Thermo from transfers, prior to such Valuation Date, of Shares (or
Units) to persons other than Affiliates, plus (2) the fair market value of all Shares owned, directly or indirectly, by Thermo on the Valuation Date and (b) subtracting 

2

 

the
Floor Valuation from such sum; provided, however, that if this calculation would yield Compensatable Value in excess of $250,000,000 then
Compensatable Value shall be deemed to be $250,000,000. For purposes of the preceding sentence, consideration received by Thermo in the form of securities issued by third parties shall be valued at
zero (0) unless such securities are, or until they become, freely tradable and marketable. Third-party securities received that are not freely tradable and marketable when received by Thermo,
but that later become freely tradable and marketable, shall be valued at their closing arms length sale price on the day that they become freely tradable and marketable, or if no trades occur on that
day, at their closing sale price on the first day that an arms length transaction in such securities occurs. Such securities shall be deemed for purposes of all future Valuation Dates to have the
value determined in accordance with the preceding sentence, and any proceeds received by Thermo from a disposition of such securities shall likewise be deemed for purposes of this definition of
Compensatable Value to be equal to the value so determined. For purposes of this definition, shares transferred by Thermo to non-Affiliates shall be conclusively presumed to have been.
sold at full and fair value consideration as established by the relevant transaction documentation. 

	(viii)
	Conversion:    The conversion of Globalstar LLC into a corporation in accordance with the laws of the State
of Delaware and the Operating Agreement.

	(ix)
	Floor Valuation:    On any Valuation Date, three (3) times the maximum amount of the Thermo Investment
in Globalstar.

	(x)
	Incentive Compensation:    Sums becoming payable to Participants in accordance with the Plan.

	(xi)
	Operating Agreement:    The Amended and Restated Limited Liability Company Agreement of Globalstar LLC dated
December 5, 2003, as amended effective October 1, 2004 and thereafter from time to time in accordance with its terms, including any document intended to succeed or replace the Operating
Agreement at the time of Conversion.

	(xii)
	Participants:    The individuals whose names are set forth on the first page of this Memorandum and who have
signed it.

	(xiii)
	Payment Date:    Any date, including an Annual Payment Date, on which Incentive Compensation shall be
payable in accordance with this Memorandum.

	(xiv)
	Plan:    The Incentive Compensation program described by this Memorandum. Upon approval in accordance with
this Memorandum, the Plan shall be deemed effective as of November 1, 2004 and shall expire when final payment has been made to eligible Participants as provided in this Memorandum.

	(xv)
	Shares:    The representation of an investor's interest in Globalstar LLC, including, while Globalstar LLC
remains a limited liability company, units of membership interest of Globalstar LLC ("Units") and thereafter shares of common stock of Globalstar LLC's
successor corporation. After Conversion, the Shares will be registered under the Securities Exchange Act of 1934, but may or may not be listed on any Stock Exchange. An investor is any person, natural
or otherwise, listed as a record owner of Shares (or Units) in the official Globalstar Stockholder (or membership) Record maintained by the Secretary of Globalstar or a duly designated transfer agent
for Globalstar.

	(xvi)
	Stock Exchange:    Any stock exchange registered under the Securities Exchange Act of 1934 or any alternative
quotation system established by the National Association of Securities Dealers, including NASDAQ.

	(xvii)
	Thermo:    Globalstar Holdings LLC and Globalstar Satellite, LP, both organized under the laws of the State
of Delaware, and their respective Affiliates. 

3

 

	(xviii)
	Thermo Equity:    Subject to the requirements of the definition of Transfer Valuation Event (below), on any
given Valuation Date, Thermo's share of ownership in Globalstar LLC (and its successor corporation), as represented by (a) Shares,  i.e. Units, issued to Thermo on April 14, 2004, plus
(b) any additional Shares (or Units) issued to Thermo thereafter, including
Shares issued to Thermo in substitution for or in addition to Units at and after Conversion, less (c) Shares (or Units) that have been as of such Valuation Date transferred by Thermo to
non-Affiliated third parties or redeemed by Globalstar LLC from Thermo. At the close of business on January 1, 2005, Thermo Equity was represented by 6,543,218 Units out of a total
of 10,309,278 Units issued and outstanding, 1,966,000 of which were held by Globalstar Holdings LLC, and 4,577,218 of which were held by Globalstar Satellite LP.

	(xix)
	Thermo Investment:    On any given Valuation Date, the sum of (a) money actually advanced directly or
indirectly to Globalstar by Thermo pursuant to the ACA (such amount being $17,017,645.46 as of January l, 2005, net of funds received by Thermo on December 3, 2004 as proceeds of
redemptions); plus (b) any additional sum of money that Thermo shall advance, or be or become legally obligated to advance, directly or indirectly to Globalstar on or prior to the effective
date of Conversion.

	(xx)
	Trading Day:    Any day following Conversion on which Globalstar Shares shall be traded in an arm's length
private transaction or, if listed on a Stock Exchange, on the applicable Stock Exchange.

	(xxi)
	Transfer Valuation Date:    The date of final closing, as determined in good faith by Globalstar of any
transaction (but only if such closing shall occur on or before November 1, 2008) that shall result in Thermo having transferred (when cumulated with all such prior transfers) to one or more
non-Affiliates, an aggregate of more than fifty percent (50%) of the Thermo Equity for cash, freely tradable and marketable securities, or a combination thereof (a
"Transfer Valuation Event"). For purposes of determining whether more than fifty percent (50%) of the Thermo Equity shall have been transferred, Thermo
Equity shall be deemed to be represented by the number of Shares held by Thermo at the close of business as of January 1, 2005 adjusted as required for stock dividends, stock splits (if any),
stock consolidations, or similar events occurring after January 1, 2005. 

III.    THE PLAN  

	1.
	Conversion
to Corporation; Registration of Stock.    The parties contemplate that Globalstar LLC Units will be converted into common stock and
registered in the form of Shares not later than in October 2006 in accordance with the Operating Agreement. If registration occurs earlier, the Valuation Dates and Payment Dates specified in
the Plan shall remain unchanged.

	2.
	Impact
on Value of Stockholder's Equity.    The parties also contemplate that the per-Share value of Thermo Equity on any applicable
Valuation Date should approximate the per Share value of the equity of non-Thermo Stockholders on that Valuation Date. Stated differently, as the value of Thermo's Shares increases, the
value of other Stockholders' Shares should also increase in proportion to the value of Thermo's Shares.

	3.
	Annual
Equity Valuation Procedures.    Not less than once each year beginning in 2006, on each Annual Valuation Date Globalstar LLC shall
calculate the then-value of Thermo Equity in the following manner. The value of Thermo Equity on Annual Valuation Dates will be deemed to be (a) the closing price per share of
Globalstar Shares on the applicable Annual Valuation Date multiplied by the number of Shares then owned directly or indirectly by Thermo plus (b) the aggregate consideration received by Thermo
either in cash or the value on date of delivery of freely tradable and marketable securities, plus, for securities that were not freely tradable and marketable on the date received but have
subsequently become so, the 

4

 

value
established prior to the applicable Annual Valuation Date, in accordance with the definition of Compensatable Value. 

	4.
	Payment
of Incentive Compensation.    Subject to the limitation and provisions of this Memorandum, on the Annual Valuation Date in 2006, 2007,
and 2008, Globalstar shall determine Compensatable Value, and, on the corresponding Annual Payment Date in 2007, 2008, and 2009, shall pay Incentive Compensation to each eligible Participant.
Incentive Compensation payable to each eligible Participant shall equal two percent (2%) of Compensatable Value on the latest applicable Annual Valuation Date; provided, however, that total Incentive
Compensation paid to any Participant shall never exceed the Aggregate Limitation, nor, except as provided in Subsection 7(b), shall any payment of incentive Compensation to any Participant on
any Payment Date exceed the applicable Annual Payment Limitations.

	5.
	Eligibility
Requirement.    Subject to the exceptions provided in this Section 5, in order to be eligible to receive Incentive
Compensation a Participant must be employed by Globalstar on the applicable Payment Date. A Participant will forfeit all rights to future payments of Incentive Compensation if, prior to a future
Payment Date, the Participant resigns from employment by Globalstar for any reason or is terminated by Globalstar for cause. Incentive Compensation paid to eligible Participants will not be subject to
recoupment by Globalstar because of resignation subsequent to the date of payments. 

Exceptions:

	(a)
	Termination
on/after Valuation Date but before Corresponding Payment Date.    If Participant's employment is terminated by Globalstar
involuntarily (except for cause) on or after a Valuation Date but prior to the corresponding Payment Date, the affected Participant shall receive on the applicable Payment Date, in the same manner as
if he or she had remained employed on the applicable Payment Date, the Incentive Compensation that he or she would have received based on the latest Valuation Date occurring prior to termination.

	(b)
	Termination
on/after Payment Date but before Next Succeeding Valuation Date.

	(I)
	First Valuation Date.    If a Participant is terminated by Globalstar involuntarily (except for cause), on or
prior to the first Valuation Date (i.e. October 31, 2006, subject to extension in accordance with definition (vi), above), the affected
Participant shall receive on the 2007 Annual Payment Date the Incentive Compensation that he or she would have received if he or she had remained employed on that Payment Date multiplied by a
fraction, the numerator of which shall be the number of full calendar months, beginning with November 2004, that shall have elapsed at time of termination and the denominator of which shall
be 24.

	(II)
	Subsequent Valuation Date.    If a Participant is terminated by Globalstar involuntarily (except for cause)
after the first Annual Valuation Date but prior to the then-next succeeding Annual Payment Date, the affected Participant shall receive on the applicable Annual Payment Date the Incentive
Compensation that he or she would have received if he or she had remained employed on that Payment Date, prorated in the same manner as is provided in clause I, above, except that the numerator
of the fraction shall be the number of full calendar months that shall have elapsed after the most recent Valuation Date prior to termination and the denominator shall be 12.

	(c)
	Termination
within Six Months prior to Transfer Valuation Event.    If a Participant's employment is terminated by Globalstar involuntarily
(except for cause), and a Transfer 

5

 

Valuation
Event occurs within six (6) months after the date of termination, then, in addition to the rights granted under exception (a), or (b), above, the Participant shall receive the
Incentive Compensation payable as a consequence of the Transfer Valuation Event that he or she would have received if he or she had remained employed at the time of the Transfer Valuation Event,
except that no portion of such Incentive Compensation shall be payable until the Annual Payment Date in January 2009. The payment provided for under this exception (c) shall be based on
a one-time additional payment arising out of the Transfer Valuation Event and shall be subject to the Aggregate Limitation after deducting all prior payments of Incentive Compensation. 

	(d)
	Termination
Because of Death or Disability.    If a Participant's employment terminates prior to any applicable Payment Date because of the
Participant's death or total disability, the Participant (or if applicable his or her estate, personal representative, or designated beneficiary), shall receive on the applicable Payment Date the
Incentive Compensation that the Participant would have received on such Payment Date if termination had occurred pursuant to (as applicable) exception (a) or (b), above, and no subsequent
payments. For purposes of this exception, total disability is any circumstance or condition that results in the Participant being unable to discharge his or her duties of employment by Globalstar. 

The
exceptions provided in this Section 5 are the only exceptions to the requirement that a Participant must be employed on the applicable Payment Date to be eligible to receive Incentive
Compensation. After receipt of the payments provided for under these sections, Participants that are no longer employed by Globalstar shall have no further entitlement under the Plan. 

	6.
	Annual
Payment Limitations.    Payments of Incentive Compensation on any Annual Payment Date shall not exceed stipulated Annual Payment
Limitations, increased if applicable in accordance with clause (b) of the definition of Annual Payment Limitations. This Section 6 shall not be construed to limit larger or earlier
payments that may become due pursuant to Section 7, below, upon the occurrence of a Transfer Valuation Event. After the full amount permitted by an Annual Payment Limitation has been paid in
full, it shall not be duplicated on a subsequent Payment Date. Entitlement to payments on subsequent Payment Dates will be determined based on Compensatable Value on an applicable subsequent Valuation
Date, subject to the Annual Payment Limitation applicable to the year of the Payment Date.

	7.
	Transfer
Valuation Event.    The value of Thermo Equity on any Transfer Valuation Date shall be the sum of (i) the value of the
consideration received by Thermo in cash and/or freely tradable and marketable securities from dispositions of Shares to non-Affiliates prior to the Transfer Valuation Event,
(ii) the value of the consideration received by Thermo in cash and/or freely tradable and marketable securities as a result of the Transfer Valuation Event, and (iii) the value of the
Shares retained by Thermo after the Transfer Valuation Event. The value of Thermo's retained Shares shall be determined by multiplying the number of such retained Shares by the per-Share
value of the Shares transferred in the Transfer Valuation Event, as provided in the Transfer Valuation Event documentation, provided, however, that any
consideration received by Thermo in securities that are not freely tradable and marketable when received shall be valued in accordance with the definition of Compensatable Value. 

6

  

The
following procedures shall apply to a Transfer Valuation Event: 

	(a)
	Acceleration
of Final Payment Date.    If a Transfer Valuation Event occurs and Compensatable Value as of the resultant Transfer Valuation Date
equals or exceeds $250,000,000, then the third Annual Valuation Date shall be deemed to have occurred on the Transaction Valuation Date and, except as provided in Subsection 7(b) below,
Globalstar shall pay all Incentive Compensation that becomes due because of the Transfer Valuation Event on the earliest of (i) January 2009, (ii) termination of Participant's
employment by or at the request of the purchaser in the Transfer Valuation Event transaction, or (iii) twelve (12) months after the Transfer Valuation Date, during which period each
Participant hereby agrees, if requested by the purchaser to do so, to continue employment with Globalstar on terms and conditions that, exclusive of the Plan, are substantially equal to or better than
the Participant's pre-Transfer Valuation Event terms and conditions of employment.

	(b)
	Postponement
of Final Payment Date.    Subsection 7(a) to the contrary notwithstanding, if the Transfer Valuation Event transaction
includes a requirement that one or more of the Participant(s) remain employed by Globalstar for more than twelve (12) months after the Transfer Valuation Date the affected Participants hereby
agree to accept employment in accordance with this requirement; provided, however, that the terms and conditions of continued employment offered to the
Participant, exclusive of the Plan, are substantially equal to or better than the terms and conditions enjoyed by the Participant at the time of the offer; provided,
further, that nothing in this Memorandum shall be construed either to require the Participant to remain employed after the Transfer Valuation Date for more than
twenty-four (24) months or to preclude voluntary employment by the Participant for longer than twenty-four (24) months after the Transfer Valuation Date. If
employment for more than twelve (12) months is required, Globalstar shall pay one-half (1/2) of all Incentive Compensation that becomes due because of the Transfer Valuation Event
on the Transfer Valuation Date and one-half (1/2) upon the conclusion of the extended employment period, but not longer than twenty-four (24) months after the Transfer
Valuation Date. At the request of any affected Participant, payments that are postponed in accordance with the preceding sentence beyond the date that they could be payable in accordance with
Subsection 7(a) shall be secured by escrow or by other means reasonably satisfactory to the affected Participants. This Subsection 7(b) shall not apply to Participants who are not
required by the terms of the Transfer Valuation Event to remain employed by Globalstar or the purchaser for a term in excess of twelve (12) months after the Transfer Valuation Date.

	(c)
	2007
and 2008 Annual Payments not Affected.    Notwithstanding Subsections 7(a) and 7(b), payments of up to the January 2007 and
January 2008 Annual Payment Limitations shall not be postponed beyond January 2007 and January 2008, respectively, to the extent that Incentive Compensation that becomes payable
because of the Transfer Valuation Event equals or exceeds these maximum payments on a cumulative basis.

	8.
	Transfer
Valuation Event Yielding Compensatable Value of Less than $250,000,000.    Notwithstanding anything in Section 7, if as a
consequence of a Transfer Valuation Event the sum of (i) Incentive Compensation previously paid on Annual Valuation Dates plus (ii) Incentive Compensation becoming due because of the
Transfer Valuation Event shall be less than the Aggregate Limitation, the Plan shall remain in effect through one or more succeeding Annual Payment Date(s) until a valuation of Thermo Equity conducted
on future Annual Valuation Date shall have yielded Compensatable Value of not less than $250,000,000 and Incentive Compensation shall have been paid with respect thereto, but under no circumstances
beyond the 2008 Annual Valuation Date and the corresponding 

7

 

January 2009
Annual Payment Date. Under these circumstances, Globalstar shall continue to compute Compensatable Value as of the Annual Valuation Date(s) through October 2008 as if the
Transfer Valuation Event had not occurred, and shall pay Incentive Compensation based on such post-Transfer Valuation Event calculation(s). For purposes of this Section 8, if a
post-Transfer Valuation Event annual computation of Compensatable Value shall result in a determination that Compensatable Value has decreased in comparison to Compensatable Value as of a
previous Valuation Date, Compensatable Value shall be deemed to be the highest value determined as of any previous Annual Valuation Date or as of the Transfer Valuation Event. The purpose of the
immediately preceding sentence is to provide that under the circumstances described in the first sentence of this Section 8 the highest amount of Incentive Compensation that becomes payable
because of any determination of Compensatable Value that occurs on or after a Transfer Valuation Event shall be a vested entitlement and not be subject to a reduction as a result of a subsequent
decline in Compensatable Value. Both the Annual Payment Limitations and the Aggregate Limitation shall continue to apply. Nothing in this Section 8 shall be construed to add to, limit,
override, or otherwise conflict with, the final sentence of exception (c) in Section 5 conferring certain additional rights on persons who are no longer Participants in the Plan because
of termination of their employment, it being agreed that this Section 8 is inapplicable to such persons. 

	9.
	Failure
to Achieve Minimum Compensatable Value.    Notwithstanding the provisions of Section 8, if a Transfer Valuation Event occurs as a
result of which Thermo shall have received aggregate consideration for the Thermo Equity equal to or in excess of the amount of the Thermo investment but not in excess of the Floor Valuation, the Plan
shall terminate on the date the final such transaction closes and no Incentive Compensation shall become payable hereunder. If the Plan terminates under these circumstances, and if Globalstar
involuntarily terminates the employment of any Participant, other than for cause, within one (1) year after the Plan terminates for this reason, Globalstar shall pay the terminated Participant
a termination benefit equal to one (1) year of the Participant's then gross salary without allowance for benefits. For avoidance of doubt, this Section 9 does not apply to any person
whose status as Participant had terminated for any reason prior to Plan termination pursuant to this Section 9.

	10.
	No
Recapture.    Incentive Compensation actually paid to Participants based on Compensatable Value as of any Valuation Date shall not be subject
to recapture by or repayment to Globalstar if Compensatable Value shall have declined on a subsequent Valuation Date. 

GENERAL PROVISIONS  

	11.
	Consultation
Regarding Thermo Investment.    Recognizing that accepting Thermo Investment prior to Conversion in excess of the sum required to
be advanced by Thermo to Globalstar pursuant to the ACA (the "Required Thermo Investment") will have the impact on the Floor Valuation illustrated by
the schedule of examples attached to this Memorandum, Globalstar agrees that prior to accepting from Thermo more than the Required Thermo Investment, it will notify the Participants that additional
Thermo Investment is under consideration, and that Globalstar's officers and directors will consult with the Participants on the impact of such additional Thermo Investment on the company, its
members, and the Participants. After this consultation, all decisions with respect to the source and terms of any such additional funding for the Company's activities shall be made in the manner
required by law, including without limitation in accordance with Globalstar's Amended and Restated Limited Liability Agreement as the same shall exist at the time. This Section 11 shall not
apply to Participants, if any, who are no longer employed by Globalstar at the time the additional Thermo Investment is being considered. 

8

 

	12.
	Confidentiality.    This
Memorandum and its contents shall be treated by the Participants, Globalstar, and Thermo as confidential, and shall not
be disclosed by any of such persons to third parties, except as may be required by law or to persons with a bona fide need to know, and then only after prior notice to and consent of the other
Participants and the Board of Directors of Globalstar, which consent shall not be delayed or withheld unreasonably.

	13.
	Dispute
Resolution.    Any controversy or claim between the Parties arising out of or relating to this Memorandum, or the breach thereof, shall
be governed by Colorado law and settled by arbitration in Denver, Colorado by three (3) arbitrators under the Commercial Arbitration Rules of the American Arbitration Association ("AAA") and
administered by the AAA. Each party shall appoint one (1) neutral and impartial arbitrator. The two (2) arbitrators thus appointed shall choose the third arbitrator, who shall act as
chairman. Any award issued under this Section shall be entitled to enforcement in any court having jurisdiction. In the event of a dispute over interpretation of this Memorandum, neither Thermo,
Globalstar, nor any of the Participants shall be deemed to be the drafter hereof.

	14.
	Full
and Final Termination.    Nothing in the Plan shall be construed to create any right for any Participant to receive Incentive Compensation
greater than the Aggregate Limitation. Upon receipt by a Participant of the Aggregate Limitation, and without prejudice to or limitation of any term or condition of the Plan under which it shall
terminate upon payment of a lesser sum (or no sum) as to such Participant, the Plan shall fully and finally terminate as to such Participant upon payment to that Participant of the full sum that shall
become due to the Participant. No claim on any other basis, legal or equitable, shall be recognized that would yield entitlement to compensation or other damages greater than the Incentive
Compensation otherwise payable in strict accordance with the Plan.

	15.
	Illustrations.    The
attached schedule sets forth certain hypothetical fact patterns that are intended to serve as a guide to interpretation
and understanding of this Memorandum but do not constitute a part of the agreements set forth herein. Therefore, in the event of an irreconcilable inconsistency between an illustration in the attached
schedule and the text of this Memorandum, the illustration shall be deemed to be erroneous and shall be conformed to make it consistent with the text.

	16.
	Effective
Date, Obligation: Amendments.    The Plan with respect to the undersigned Participant shall become effective as of June 1,
2005. The Plan became effective with respect to the remaining participants on November l, 2004. All obligations hereunder with respect to calculation and payment of Incentive Compensation shall
be solely the obligations of Globalstar. No subsequent supplement, modification, understanding, or interpretation of this Memorandum shall be effective or binding unless and until set forth in
writing, signed by Globalstar and the affected Participant(s), and approved by the Board of Directors.

	17.
	Impact
of IRC Section 409A.    It is the intention of the parties that the Plan comply with, and/or be exempt from, the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended. The parties shall therefore review this Memorandum in a timely way and adopt changes hereto that are necessary (if any) to achieve
this objective and to preserve to the maximum extent possible the business and economic purposes of the Plan. This shall be done at the request of any party promptly after the issuance of relevant
guidance by the Internal Revenue Service ("IRS") but under no circumstances later than the latest date (if any) that the IRS may authorize for adoption of conforming changes. The Plan is not intended
to be a qualified plan under the Federal Employee Retirement Income Security Act.

	18.
	Attachments.    See
Attachments 1 and 2, which constitute integral parts of this memorandum. 

9

 

 
 

Illustrative Schedule to Incentive Compensation Memorandum
  
    Effective as of November 1, 2004    
    

ASSUMES $50,000,000 THERMO INVESTMENT  

	Valuation

Date
	 	Thermo

Equity

Value*
	 	Floor

Valuation
	 	Compensatable

Value
	 	Indicated

Payment
	 	Annual

Payment

Limitation
	 	Actual

Cumulative

Payments

	Oct. 06	 	$	175,000,000	 	$	150,000,000	 	$	25,000,000	 	$	500,000	 	$	500,000	 	$	500,000
	Oct. 07	 	 	175,000,000	 	 	150,000,000	 	 	25,000,000	 	 	0	 	 	750,000	 	 	500,000
	Oct. 07	 	 	212,500,000	 	 	150,000,000	 	 	65,500,000	 	 	750,000	 	 	750,000	 	 	1,250,000
	Oct. 08	 	 	400,000,000	 	 	150,000,000	 	 	250,000,000	 	 	4,500,000	 	 	4,500,000	 	 	5,000,000
	Oct. 08	 	 	400,000,000	 	 	150,000,000	 	 	250,000,000	 	 	3,750,000	 	 	3,750,000	 	 	5,000,000

ASSUMES $44,000,000 THERMO INVESTMENT  

	Valuation

Date
	 	Thermo

Equity

Value*
	 	Floor

Valuation
	 	Compensatable

Value
	 	Indicated

Payment
	 	Annual

Payment

Limitation
	 	Actual

Cumulative

Payments

	Oct. 06	 	$	157,000,000	 	$	132,000,000	 	$	25,000,000	 	$	500,000	 	$	500,000	 	$	500,000
	Oct. 07	 	 	194,500,000	 	 	132,000,000	 	 	62,500,000	 	 	750,000	 	 	750,000	 	 	1,250,000
	Oct. 08	 	 	194,500,000	 	 	132,000,000	 	 	62,500,000	 	 	0	 	 	3,750,000	 	 	1,250,000
	Oct. 08	 	 	382,000,000	 	 	132,000,000	 	 	250,000,000	 	 	3,750,000	 	 	3,750,000	 	 	5,000,000

ASSUMES $31,000,000 THERMO INVESTMENT  

	Valuation

Date
	 	Thermo

Equity

Value*
	 	Floor

Valuation
	 	Compensatable

Value
	 	Indicated

Payment
	 	Annual

Payment

Limitation
	 	Actual

Cumulative

Payments

	Oct. 06	 	$	118,000,000	 	$	93,000,000	 	$	25,000,000	 	$	500,000	 	$	500,000	 	$	500,000
	Oct. 07	 	 	155,000,000	 	 	93,000,000	 	$	62,500,000	 	 	750,000	 	 	750,000	 	 	1,250,000
	Oct. 08	 	 	218,000,000	 	 	93,000,000	 	 	125,000,000	 	 	1,250,000	 	 	3,750,000	 	 	2,500,000
	Oct. 08	 	 	343,000,000	 	 	93,000,000	 	 	250,000,000	 	 	3,750,000	 	 	3,750,000	 	 	5,000,000

	

General Note:	

The hypothetical fact patterns illustrated in this schedule are for illustrative purposes only and furnish no basis for any express or implied promise to pay Incentive Compensation, or of employment for any minimum duration for any
Participant.

	*
	Includes
value of consideration received from previous arms length transfers. 

10

  

 
 

ATTACHMENT 1
  
    Vesting Schedule    
    

For
additional clarification, amounts due under this Designated Executive Incentive Compensation Memorandum are limited to the following: 

	(1)
	up
to 10% of the Aggregate Limitation, as calculated on 10/31/06 and payable 1/07;

	(2)
	up
to 25% of the Aggregate Limitation less any amount previously paid under (1), above, as calculated on 10/31/07 and payable 1/08; and

	(3)
	up
to the Aggregate Limitation less any amounts previously paid under (1) and (2), above, as calculated on 10/31/08 and payable 1/09. 

11

 

 
 

ATTACHMENT 2
  
    Participant Responsibilities    
    

As
part of each year's budget cycle, the CEO of Globalstar shall establish employment performance criteria for each Participant which that Participant must attain as of the next succeeding Valuation
Date in order to retain eligibility. Each Participant shall receive periodic written statements of that Participant's criteria. 

12

QuickLinks

Exhibit 10.10

CONFIDENTIAL TREATMENT

GLOBALSTAR COMPANIES DESIGNATED EXECUTIVE INCENTIVE COMPENSATION MEMORANDUM

Illustrative Schedule to Incentive Compensation Memorandum Effective as of November 1, 2004

ATTACHMENT 1 Vesting Schedule

ATTACHMENT 2 Participant ResponsibilitiesQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.11    
    

 
 

ASSET CONTRIBUTION AGREEMENT    
    
    BY AND AMONG    
    
    GLOBALSTAR, L.P.    
    
    NEW OPERATING GLOBALSTAR LLC    
    
    THERMO CAPITAL PARTNERS, L.L.C.    
    
    AND
CERTAIN OF THEIR AFFILIATES    
    
    December 5, 2003    
    

   TABLE OF CONTENTS  

	ARTICLE I CONTRIBUTION OF ASSETS	 	1
	 	Section 1.1	Contributions by Thermo	 	1
	 	Section 1.2	Contribution of Assets by the Globalstar Entities	 	2
	 	Section 1.3	Excluded Assets	 	3
	 	Section 1.4	Assumed Liabilities	 	4
	 	Section 1.5	Excluded Liabilities	 	5
	 	Section 1.6	Assumption and Rejection of Contracts	 	5
	 	Section 1.7	Assignment of Revenue and Expense of Licensees	 	6
	ARTICLE II STRUCTURE OF THE TRANSACTIONS	 	6
	 	Section 2.1	Contribution Date Transactions	 	6
	 	Section 2.2	Interest Acquisition	 	7
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE GLOBALSTAR ENTITIES	 	8
	 	Section 3.1	Existence; Authorization, Validity and Effect of Agreement	 	8
	 	Section 3.2	Ownership of Subsidiaries	 	9
	 	Section 3.3	No Conflict; Required Filings and Consents	 	10
	 	Section 3.4	SEC Documents	 	10
	 	Section 3.5	No Changes	 	11
	 	Section 3.6	Title to Assets	 	11
	 	Section 3.7	Globalstar FCC Licenses	 	11
	 	Section 3.8	Intellectual Property	 	12
	 	Section 3.9	No Brokers	 	12
	 	Section 3.10	Liabilities and Obligations of Certain Subsidiaries; Assumed Liabilities	 	12
	 	Section 3.11	Scope of Partnership Representations	 	13
	 	Section 3.12	Legal Proceedings	 	13
	 	Section 3.13	Labor Matters	 	13
	 	Section 3.14	Contracts	 	13
	 	Section 3.15	Bring-Down of Bankruptcy Disclosure Schedules	 	13
	 	Section 3.16	Restrictive Agreements	 	13
	 	Section 3.17	Tangible Property	 	13
	 	Section 3.18	Globalstar Foreign Licenses	 	13
	 	Section 3.19	Employee Plans	 	14
	 	Section 3.20	Certain Liabilities	 	14
	 	Section 3.21	Additional Intellectual Property Representations	 	14
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE ACQUIRORS	 	14
	 	Section 4.1	Organization	 	14
	 	Section 4.2	Authority Relative to this Agreement	 	14
	 	Section 4.3	No Violations	 	14
	 	Section 4.4	Consents and Approvals	 	15
	 	Section 4.5	Brokers	 	15
	 	Section 4.6	Financing	 	15
	 	Section 4.7	Investor Sophistication; Etc	 	15
	 	Section 4.8	Forecasts and Projections	 	15
	 	Section 4.9	Interim Operations of GS Holdings, New Globalstar and Globalstar Leasing	 	15
	 	Section 4.10	Scope of the Acquirors' Representations	 	16
	ARTICLE V COVENANTS	 	16
	 	Section 5.1	Conduct by the Globalstar Entities Pending the Interest Acquisition Date	 	16
	 	Section 5.2	Access and Information	 	17
	 	Section 5.3	Filings; Other Action	 	17
	 	 	 	 

ii

 

	 	Section 5.4	Bankruptcy Actions	 	18
	 	Section 5.5	Tax Returns and Filings; Payment of Taxes	 	18
	 	Section 5.6	Certain Prohibitions	 	18
	 	Section 5.7	Employment Matters	 	18
	 	Section 5.8	Non-Solicitation/Non-Disclosure	 	19
	 	Section 5.9	Additional Matters	 	19
	 	Section 5.10	Purchase of DIP Loan by Thermo; Amendment to DIP Loan	 	20
	 	Section 5.11	Funding of the Operations Pending the Interest Acquisition Date	 	20
	 	Section 5.12	Preservation of Cash by Debtors	 	20
	 	Section 5.13	Conversion of DIP Loan into Equity	 	20
	 	Section 5.14	Obligation of Thermo to Fund New Globalstar	 	21
	 	Section 5.15	Change of Corporate Names	 	21
	 	Section 5.16	Treatment of Debtors' Membership Interest in GS Holdings	 	21
	ARTICLE VI ADDITIONAL POST-INTEREST ACQUISITION DATE COVENANTS	 	21
	 	Section 6.1	Further Assurances	 	21
	 	Section 6.2	Books and Records; Personnel	 	21
	 	Section 6.3	Employee Withholding	 	22
	 	Section 6.4	Deferred Assets; Regulatory Approvals; Assumed Contracts	 	22
	 	Section 6.5	Cure Claims	 	23
	 	Section 6.6	RESERVED	 	23
	 	Section 6.6	Debtors' Plan of Liquidation	 	23
	 	Section 6.8	Contribution of Avoidance Actions and Wind Up Funds	 	23
	 	Section 6.9	Right to Participate in First Public Offering	 	24
	ARTICLE VII CONDITIONS PRECEDENT TO CONTRIBUTION	 	24
	 	Section 7.1	Conditions Precedent to Obligations of All Parties	 	24
	 	Section 7.2	Conditions Precedent to Obligations of the Globalstar Entities	 	24
	 	Section 7.3	Conditions Precedent to Obligations of the Acquirors	 	25
	ARTICLE VIII CONDITIONS PRECEDENT TO INTEREST ACQUISITION	 	25
	 	Section 8.1	Conditions Precedent to Obligations of All Parties	 	25
	 	Section 8.2	Conditions Precedent to Obligations of the Globalstar Entities	 	26
	 	Section 8.3	Conditions Precedent to Obligations of the Acquirors	 	26
	ARTICLE IX TERMINATION, AMENDMENT AND WAIVER	 	27
	 	Section 9.1	Termination by Mutual Consent	 	27
	 	Section 9.2	Termination by Any Party	 	27
	 	Section 9.3	Termination by the Globalstar Entities or the Committee	 	27
	 	Section 9.4	Termination by Thermo	 	27
	 	Section 9.5	Effect of Termination and Abandonment	 	28
	ARTICLE X DELIVERIES	 	28
	 	Section 10.1	The Globalstar Entities' Contribution Date Deliveries	 	28
	 	Section 10.2	The Globalstar Entities Deliveries at Interest Acquisition	 	29
	 	Section 10.3	Thermo's Contribution Date Deliveries	 	29
	 	Section 10.4	Thermo's Deliveries at Interest Acquisition	 	30
	 	Section 10.5	Required Documents	 	30
	ARTICLE XI GENERAL PROVISIONS	 	30
	 	Section 11.1	Notices	 	30
	 	Section 11.2	Descriptive Headings; Interpretation	 	31
	 	Section 11.3	Entire Agreement; Assignment	 	31
	 	Section 11.4	Governing Law	 	31
	 	Section 11.5	Venue and Retention of Jurisdiction	 	31
	 	Section 11.6	Expenses	 	32
	 	Section 11.7	Amendment	 	32
	 	 	 	 

iii

 

	 	Section 11.9	Waiver	 	32
	 	Section 11.10	Counterparts; Effectiveness	 	32
	 	Section 11.11	Severability; Validity; Parties in Interest	 	32
	 	Section 11.12	Enforcement of Agreement	 	32
	 	Section 11.13	No Third-Party Beneficiaries	 	32
	 	Section 11.14	Non-survival of Representations, Warranties and Agreements	 	32
	 	Section 11.15	Public Announcements	 	33
	 	Section 11.16	FCC Related Requirements of Law	 	33
	 	Section 11.17	Utilization of Wind Down Funds	 	33
	ARTICLE XII DEFINITIONS	 	33
	 	Section 12.1	Defined Terms	 	33

LIST OF EXHIBITS  

	Exhibit 1.3(a)	—	 	Excluded Contracts
	Exhibit 1.3(c)	—	 	Excluded Equity Interests
	Exhibit 2.1(b)	—	 	GS Holdings LLC Agreement (Contribution Date)
	Exhibit 2.1(d)	—	 	New Globalstar LLC Agreement (Contribution Date)
	Exhibit 2.1(e)	—	 	Globalstar Leasing LLC Agreement (Contribution Date)
	Exhibit 2.1(f)	—	 	Management Agreement
	Exhibit 2.1(g)	—	 	Globalstar Lease Agreement
	Exhibit 2.1(j)	—	 	Amended and Restated DIP Loan Agreement
	Exhibit 2.2(b)	—	 	Agreement of Transfer
	Exhibit 2.2(d)	—	 	New Globalstar LLC Agreement (Interest Acquisition Date)
	Exhibit 2.2(e)	—	 	GS Holdings LLC Agreement (Interest Acquisition Date)
	Exhibit 2.2(f)	—	 	Globalstar Leasing LLC Agreement (Interest Acquisition Date)
	Exhibit 12	—	 	Wind Up Budget

iv

ASSET CONTRIBUTION AGREEMENT  

        This ASSET CONTRIBUTION AGREEMENT, dated as of December 5, 2003 (this "Agreement"), by and among Thermo
Capital Partners, L.L.C., a Colorado limited liability company ("Thermo"), Globalstar Holdings LLC, a Delaware limited liability company
("GS Holdings"), New Operating Globalstar LLC, a Delaware limited liability company ("New Globalstar"),
and Globalstar Leasing LLC, a Delaware limited liability company ("Globalstar Leasing") (collectively, the
"Acquirors" and each individually, an "Acquiror"); Globalstar, L.P., a Delaware limited partnership
("Globalstar"), Globalstar Capital Corporation, a Delaware corporation, Globalstar Services Company, Inc., a Delaware corporation, Globalstar,
L.L.C., a Delaware limited liability company, Globalstar Corporation, a Delaware corporation, and Globalstar Satellite Services, Inc., a Delaware corporation (collectively, the
"Globalstar Entities" and, individually, each a "Globalstar Entity"); Globalstar USA, LLC, a Delaware
limited liability company, and Globalstar Caribbean Ltd., an organization organized under the laws of the Cayman Islands (collectively, the
"Licensees"); and, solely for purposes of Section 5.8, the Official Committee of Unsecured Creditors of Globalstar (the
"Committee"). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Article XII. 

        WHEREAS,
the Globalstar Entities and their Subsidiaries are engaged in the business of operating a low earth orbit satellite communications system providing voice, data and ancillary
telecommunications services; 

        WHEREAS,
Globalstar, Globalstar Capital Corporation, Globalstar Services Company, Inc., and Globalstar, L.L.C. (collectively, the
"Debtors") have filed voluntary petitions (collectively, the "Petitions") for relief under Chapter 11 of
Title 11 of the United States Code, 11 U.S.C. Sections 101 et seq. (the "Bankruptcy Code") in the United
States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), commencing Chapter 11 cases that are being jointly administered under the
case styled In re Globalstar Capital Corporation, et al. (Case No. 02-10499 (PJW)) (collectively, the
"Chapter 11 Case"); 

        WHEREAS,
New Globalstar desires to obtain ownership, in the manner described in this Agreement, of substantially all of the assets of the Globalstar Entities, and thereafter to transfer
certain of these assets to Globalstar Leasing; 

        WHEREAS,
the Globalstar Entities desire to contribute to New Globalstar (through GS Holdings) on or after the Contribution Date substantially all of the assets and properties of the
Globalstar Entities (except for the assets and properties of Globalstar Corporation and Globalstar Satellite Services, Inc., certain of which shall be contributed to newly-formed limited
liability companies, the equity of which shall be contributed to New Globalstar through GS Holdings), all on the terms and subject to the conditions set forth herein and in accordance with
(a) in the case of the Debtors, Sections 105, 363, and 365 of the Bankruptcy Code and (b) the rules and policies of the FCC, in exchange for a 93.4%
membership interest in GS Holdings and the assumption by New Globalstar of specified obligations and liabilities of the Globalstar Entities; 

        WHEREAS,
Thermo desires to contribute to New Globalstar on the Contribution Date $1,000,000 in exchange for an 8.77% membership interest in New Globalstar; and 

        WHEREAS,
New Globalstar desires to contribute certain of its assets to Globalstar Leasing on and after the Contribution Date in exchange for a 98% membership interest in Globalstar
Leasing. 

        NOW,
THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, and agreements set forth herein, the Parties hereto agree as follows: 

ARTICLE I

CONTRIBUTION OF ASSETS  

        Section 1.1    Contributions by Thermo.    On the terms and subject to the conditions set forth in this
Agreement, on the Contribution Date, Thermo shall contribute (a) to GS Holdings, $700,000 in immediately available funds (the "Initial GS Holdings
Contribution") in exchange for a 6.6% 

 

membership
interest in GS Holdings, as provided in the GS Holdings LLC Agreement; and (b) to New Globalstar, $1,000,000 in immediately available funds (the "Initial New
Globalstar Contribution") in exchange for an 8.77% membership interest in New Globalstar, as provided in the New Globalstar LLC Agreement. Prior to the Contribution Date,
Thermo shall have caused two of its Affiliates to contribute to Globalstar Leasing a total of $100,000 in immediately available funds (the "Initial Globalstar Leasing
Contribution") in exchange for an aggregate 100% membership interest in Globalstar Leasing, which membership interest shall be reduced to an aggregate 2% membership interest
following the transactions described in Section 2.1 hereof. 

        Section 1.2    Contribution of Assets by the Globalstar Entities.    On the terms and subject to the conditions
and limitations set forth in this Agreement (including, without limitation, Sections 1.6, 6.4 and 6.5), on
the Contribution Date, after the transactions described in Section 2.1(h) are completed, each Globalstar Entity shall contribute, assign, transfer, convey, and deliver to GS Holdings, and GS
Holdings shall acquire and accept from each Globalstar Entity, all of such Globalstar Entity's rights, title, and interests in and to its Assets, which rights, title and interests shall be (with
respect to the Debtors only) free and clear of all Liens as provided by the Sale Order. The term "Assets" means, with respect to each Globalstar Entity,
all assets and properties of such Globalstar Entity, wherever located (including in the possession of vendors or other third parties or elsewhere), whether tangible, intangible, absolute or
contingent, of whatever nature, whether real, personal or mixed, whether now existing or hereafter acquired, in each case, whether or not recorded or reflected or required to be recorded or reflected
on the books and records or financial statements of such Globalstar Entity, and all contractual rights and claims of such Globalstar Entity relating to the foregoing, including, without limitation,
those assets that are described below (but specifically excluding the Excluded Assets): 

        (a)   all
Gateway Assets, Handset Inventory and Satellites, and all other assets listed in the Globalstar Disclosure Schedule as contemplated by Section 3.15; 

        (b)   all
accounts receivable and claims or rights and causes of actions related thereto and the proceeds thereof; 

        (c)   all
copies of network or systems design specification materials and other printed or written materials in any form or medium relating to the Globalstar Entities'
ownership or operation of the assets described in this Section 1.2 to the extent that the Globalstar Entities are not required by Law to retain them, and duplicates of any such materials that
the Globalstar Entities are required by Law to retain; 

        (d)   the
exclusive right to the benefits of all contracts (including all customer contracts, whether or not executory), leases (including unexpired real property and
equipment leases), subleases, licenses, permits, registrations, authorizations and agreements used in connection with the operation of the businesses of the Seller Entities, and any and all claims,
rights of setoff or recoupment or causes of action arising under or in connection therewith (collectively, the "Contracts"), whether or not such
Contracts arose prior to or after the commencement of the Chapter 11 Case; 

        (e)   all
rights under all warranties, representations, and guarantees made by suppliers, manufacturers, and contractors in connection with the assets described in this
Section 1.2; 

        (f)    all
rights under any noncompetition, confidentiality, nondisclosure and similar agreements related to the assets described in this Section 1.2 or the Business
Employees; 

        (g)   all
books and records of the Globalstar Entities that relate to the assets described in this Section 1.2 or the Transferred Employees or that are used in
connection with the operation of the businesses of the Seller Entities, including, without limitation, data processing records, employment and personnel records, records relating to suppliers,
supplier lists, cost information, vendor data, specifications and drawings, correspondence and lists, product literature, legal files related to the 

2

 

ordinary
course operations of the business, artwork, design, development and manufacturing files, quality records, anomaly records, and other data;  provided, however, the Globalstar Entities may retain copies of (x) all books and records
included in the assets described in this Section 1.2 to the extent necessary or useful for the administration of the Chapter 11 Case or any other Action to which they are parties, the filing of
any Tax Return or compliance with any applicable Laws and (y) all personnel files; 

        (h)   to
the extent not part of the Intellectual Property, all work telephone numbers and electronic mail addresses relating to the Transferred Employees and domain names
related to the operating system software; 

        (i)    to
the extent not part of the Intellectual Property, all technical information, data, specifications, research and development information, engineering drawings,
operating and maintenance manuals related primarily to, or used or useful in connection with, the assets described in this Section 1.2, the satellite network or any operations support systems; 

        (j)    all
of the Globalstar Entities' rights under all Globalstar Governmental Licenses and Regulatory Approvals (provided, that such rights shall not be transferred unless
and until all applicable Regulatory Approvals have been obtained); 

        (k)   all
rights to all Intellectual Property owned or used by the Globalstar Entities, including, without limitation, all right, title and interest in and to the name
"Globalstar" and any variations thereof used in the Globalstar Entities business; 

        (l)    all
goodwill relating to the Globalstar Entities and the operation of the business of the Globalstar Entities; and 

        (m)  all
equity interests in Persons owned by the Globalstar Entities (including without limitation the Single Member LLCs), but excluding those equity interests referenced
in Section 1.3(c) (and provided that the equity interests in the Licensees shall be transferred only if and when all applicable Regulatory Approvals have been obtained). 

        The
Assets will be contributed to GS Holdings by the Globalstar Entities in exchange for a 93.4% membership interest in GS Holdings, which membership interest shall be allocated among
the Globalstar Entities as designated in writing by the Globalstar Entities, subject to the approval of the Acquirors (which approval will not be unreasonably withheld or delayed). On the Contribution
Date, following the contribution of the Assets to GS Holdings described above, GS Holdings shall contribute, assign, transfer, convey, and deliver to New Globalstar, and New Globalstar shall acquire
and accept from GS Holdings, all of GS Holdings' rights, title, and interests in and to the Assets. 

        Section 1.3    Excluded Assets.    The following assets and properties are not included in the Assets and shall
be retained by the Globalstar Entities (collectively, the "Excluded Assets"): 

        (a)   all
of the Globalstar Entities' contracts and agreements with QUALCOMM and its Affiliates, and all other executory contracts and unexpired leases listed on  Exhibit 1.3(a); 

        (b)   subject
to Section 6.8, all causes of action arising under Chapter 5 of the Bankruptcy Code ("Avoidance Actions"); 

        (c)   all
shares of capital stock or direct or indirect equity listed on Exhibit 1.3(c); 

        (d)   all
claims, rights of setoff or recoupment or causes of action arising under or in connection with any asset described in this Section 1.3 or Rejected Contract
(but not including any such claims, rights or causes of action arising under a Rejected Contract after the Contribution Date but prior to the date on which rejection of such Rejected Contract is
approved by the Bankruptcy Court); 

3

 

        (e)   subject
to Sections 2.2 and 6.8, all cash and cash equivalents (including all marketable securities, certificates of deposits and other investments), including retainers
held by Bankruptcy Professionals (collectively, "Cash"); and 

        (f)    Globalstar's
rights to accounts receivable owed by Globalstar Canada Co. in an amount not to exceed $3 million. 

        Section 1.4    Assumed Liabilities.    On the terms and subject to the conditions set forth in this Agreement,
on the Contribution Date (except as described in Section 1.4(g)), GS Holdings shall assume and thereafter pay, perform, and discharge in accordance with their terms, the following obligations
and liabilities of the Debtors (collectively, the "Assumed Liabilities"): 

        (a)   all
obligations under the DIP Loan (provided the Debtors shall remain jointly and severally liable for all obligations under the DIP Loan, as described in
Section 5.10); 

        (b)   except
to the extent arising under Assumed Contracts or as covered by subsection (e) below, all trade accounts payable existing as of the Contribution Date which
arose in the ordinary course of the Debtors' business post-petition and would be entitled to allowance as administrative expenses under Section 503(b)(1)(A) of the Bankruptcy Code
(collectively, the "Assumed Trade Accounts"); 

        (c)   all
accrued and unpaid employee severance obligations arising under the Globalstar Entities' employment policies currently in force for employees terminated by a
Globalstar Entity with Thermo's prior written consent after November 17, 2003 (the "Employee Severance Plan"); 

        (d)   all
accrued and unpaid amounts required to be paid under the existing employee retention plan approved by the Bankruptcy Court on May 21, 2002 (the
"Employee Retention Plan"); 

        (e)   all
accrued and unpaid fees and expenses of Bankruptcy Professionals, but only to the extent such fees and expenses are actually allowed by, or that are permitted to be
paid pursuant to, an order of the Bankruptcy Court, including the order dated March 22, 2002 establishing procedures for interim compensation and reimbursement of expenses for the Bankruptcy
Professionals; 

        (f)    all
accrued and unpaid obligations arising solely with respect to the Debtors' current and former employees who are participants under the Loral Pension Plan, but only
if and to the extent that such obligations can be severed from the Loral Pension Plan and assumed by New Globalstar; 

        (g)   (i) the
obligations of the Globalstar Entities under Assumed Contracts that, by the terms of such Assumed Contracts, arise after the Interest Acquisition Date and
relate to periods following the Interest Acquisition Date and are to be observed, paid, discharged, or performed, as the case may be, in each case, at any time after the Interest Acquisition Date; and
(ii) all Allowed Cure Claims (subject to Section 6.5); provided, however, that the obligations described in this Section 1.4(g)
shall not be assumed until the Interest Acquisition Date (if and when such date occurs). Following the Contribution Date, New Globalstar shall be responsible for and pay all obligations of the
Globalstar Entities under the Assumed Contracts, and to the extent provided in Section 1.6, Rejected Contracts, that arise in the ordinary course of the Debtors' business after the Petition
Date and relate to periods following the Petition Date and are to be observed, paid, discharged, or performed, as the case may be, in each case,
at any time after the Petition Date, but only to the extent that such obligations would be entitled to allowance as administrative expenses under Section 503(b)(1)(A) of the Bankruptcy Code; 

        (h)   any
other liabilities, commitments or obligations that arose with respect to the Assets or the use thereof following the Petition Date in the ordinary course of business
of the Globalstar Entities or pursuant to any order of the Bankruptcy Court; and 

4

 

        (i)    the
liabilities or obligations under the Jefferies Agreement with respect to the monthly retainer (not to exceed $5,000/month) and out-of-pocket
expenses and accrued and unpaid professional fees for prior periods approved by the Bankruptcy Court. 

        On
the Contribution Date, following the assumption of Assumed Liabilities by GS Holdings described above, New Globalstar shall assume from GS Holdings and thereafter pay, perform, and
discharge in accordance with their terms, the Assumed Liabilities. 

        Section 1.5    Excluded Liabilities.    Notwithstanding anything to the contrary contained herein, except for
the Assumed Liabilities, none of the Acquirors or their Affiliates shall assume, or in any way be liable or responsible for, any liabilities, commitments, or obligations, whether known or unknown,
disclosed or undisclosed, absolute, contingent, inchoate, fixed or otherwise, of any of the Debtors (the "Excluded Liabilities"). Without limiting the
generality of the foregoing, none of the Acquirors or their Affiliates shall assume, and the Debtors shall remain fully responsible for, the following liabilities, commitments, or obligations, whether
known or unknown, disclosed or undisclosed, absolute, contingent, fixed or otherwise (all of which shall be Excluded Liabilities): 

        (a)   any
liabilities, commitments or obligations that arose with respect to the Debtors' business or Assets or the use thereof prior to the Petition Date including without
limitation (i) any liabilities that result from, relate to or arise out of tort or other product liability claims, and (ii) any liability, commitment or obligation of, or required to be
paid by, any of the Debtors for any Taxes of any kind arising prior to the Petition Date; 

        (b)   except
as provided in Section 1.6, any liability or obligation of any kind under any contract or agreement, written or oral, that is not an Assumed Contract,
including the obligations arising under any Contract added to Exhibit 1.3(a); 

        (c)   any
liabilities, commitments or obligations that arose with respect to the Assets or the use thereof following the Petition Date other than in the ordinary course of
business (or pursuant to an order of the Bankruptcy Court); and 

        (d)   any
liabilities or obligations under the Jefferies Agreement other than as specifically set forth in Section 1.4(i). 

        Except
for the Assumed Liabilities, none of the Acquirors or their Affiliates shall assume, and the Globalstar Entities shall retain and discharge when due, all other obligations and
liabilities of the Globalstar Entities. 

        Section 1.6    Assumption and Rejection of Contracts.    Between the date of this Agreement and the Interest
Acquisition Date, Thermo, by written notice to Globalstar (a "Rejection Notice"), may add to  Exhibit 1.3(a), and thereby request the Debtors to reject,
 any pre-Petition Date Contract to which any Debtor is a party (a
"Rejected Contract"); provided that (a) there shall be no adjustment to the consideration received by the Debtors as a result thereof, and
(b) New Globalstar shall remain responsible for any liability for goods and services provided under such Rejected Contract during the period commencing on the Petition Date and ending on the
day an order is approved by the Bankruptcy Court rejecting the Rejected Contract, whether before or after the Interest Acquisition Date, but only to the extent that such liability arose in the
ordinary course of the Debtors' business post-petition and would be entitled to allowance as an administrative expense under Section 503(b)(1)(A) of the Bankruptcy Code. If the
Debtors consent to the rejection of a Rejected Contract identified in a Rejection Notice (which consent shall be deemed granted on the Interest Acquisition Date for all Rejected Contracts not
previously consented to), the Debtors will use commercially reasonable efforts to seek an order of the Bankruptcy Court rejecting the Rejected Contract as soon as practicable after receipt of the
related Rejection Notice; provided, however, that (x) the Debtors need not seek rejection prior to the next regularly scheduled omnibus hearing date in the Bankruptcy Case that is at least 23
calendar days after receipt of such Rejection Notice; (y) if the 

5

 

scheduling
of a hearing to reject a Rejected Contract on the next regularly scheduled omnibus hearing date at least 23 calendar days from the Rejection Notice will result in a material liability to
the Debtors, the Debtors will use commercially reasonable efforts to have the hearing to reject such Rejected Contract heard at the next regularly scheduled omnibus hearing date that is less than 23
calendar days from the receipt of the Rejection Notice or to have the order approving the rejection of such Rejected Contract provide that the rejection is to be effective prior to the hearing related
thereto; and (z) if the Debtors do not consent to the rejection of a Rejected Contract, the Debtors will use commercially reasonable efforts to obtain an order rejecting such Rejected Contract
conditioned upon the Interest Acquisition Date. Any Contract listed on Exhibit 1.3(a) (originally or by addition) shall cease to constitute an
Assumed Contract for all purposes of this Agreement and any pre-Petition Date liability arising under such Contract shall be an Excluded Liability. On the Interest Acquisition Date, the
Debtors will assign to New Globalstar, and New Globalstar will assume, any pre-Petition Date Contract, and subject to Section 6.4(b) any post-Petition Date Contract,
that is not listed on Exhibit 1.3(a) as of the Interest Acquisition Date, and the liabilities arising under such contract shall constitute
Assumed Liabilities. Upon request of Thermo and at Thermo's expense, the Debtors shall cooperate with and provide reasonable assistance to the Acquirors in their efforts to negotiate acceptable terms
and conditions of adequate assurance of future payment or performance, and assumption or modification of any of the Assumed Contracts with the parties to such Contracts. 

        Section 1.7    Assignment of Revenue and Expense of Licensees.    From and after the Contribution Date, each
Licensee shall assign to New Globalstar all of its revenue arising on and after the Contribution Date and prior to the Interest Acquisition Date, and promptly pay to New Globalstar all funds received
with respect thereto, and New Globalstar shall assume and pay when due all expenses of each Licensee arising on and after the Contribution Date and prior to the Interest Acquisition Date, all as
provided in the Management Agreement. 

ARTICLE II

STRUCTURE OF THE TRANSACTIONS  

        Section 2.1    Contribution Date Transactions.    The following transactions (the
"Contribution Date Transactions") shall take place at the offices of Jones Day, 222 E. 41st Street, New York, New York at
10:00 a.m. local time on the Business Day after all of the conditions set forth in Article VII (other than the conditions to be satisfied concurrently therewith) shall have been
satisfied or waived (or such other time, date and place to which the Parties may agree in writing) (the date of the Contribution Date Transactions being referred to as the
"Contribution Date"): 

        (a)   Following
the transactions described in subparagraph (h) below, the Globalstar Entities shall transfer (pursuant to Section 1.2) their respective Assets to
GS Holdings in exchange for a 93.4% membership interest in GS Holdings and the assumption by GS Holdings of the Assumed Liabilities, and Thermo shall make the Initial GS Holdings Contribution to GS
Holdings in exchange for a 6.6% membership interest in GS Holdings. 

        (b)   Thermo
and the Globalstar Entities which are members of GS Holdings shall enter into a Limited Liability Company Agreement for GS Holdings (the
"GS Holdings LLC Agreement") in the form of Exhibit 2.1(b). 

        (c)   GS
Holdings shall contribute all of the Assets to New Globalstar and $500,000 in cash in exchange for a 91.23% membership interest in New Globalstar and the assumption
by New Globalstar of the Assumed Liabilities, and Thermo shall make the Initial New Globalstar Contribution to New Globalstar in exchange for an 8.77% membership interest in New Globalstar. 

        (d)   GS
Holdings and Thermo shall enter into a Limited Liability Company Agreement (the "New Globalstar LLC Agreement") for
New Globalstar in the form of Exhibit 2.1(d). 

6

 

        (e)   New
Globalstar and two Affiliates of Thermo shall enter into an Amended and Restated Limited Liability Company Agreement for Globalstar Leasing (the
"Globalstar Leasing LLC Agreement") in the form of Exhibit 2.1(e), and, in connection therewith,
New Globalstar shall contribute all of the Leased Assets to Globalstar Leasing in exchange for a 98% membership interest in Globalstar Leasing (such two Affiliates of Thermo having previously
contributed the Initial Globalstar Leasing Contribution to Globalstar Leasing). 

        (f)    The
Acquirors, the Globalstar Entities and the Licensees shall enter into a Management Agreement (the "Management
Agreement") in the form of Exhibit 2.1(f), providing for New Globalstar's management of the business and Assets of the
Globalstar Entities and the Licensees following the Contribution Date. 

        (g)   New
Globalstar and Globalstar Leasing shall enter into a Lease Agreement (the "Globalstar Lease Agreement") in the form
of Exhibit 2.1(g), providing for the lease of the Leased Assets by Globalstar Leasing to New Globalstar. 

        (h)   Prior
to the other transactions described above, Globalstar Corporation shall contribute all of its assets (other than its cash and cash equivalents and its shares of
capital stock and other equity interests in Globalstar Satellite Services, Inc., Globalstar Caribbean Ltd. and Globalstar USA, LLC) to Globalstar C LLC, a Delaware limited liability
company, in exchange for a 100% membership interest in Globalstar C LLC and the assumption by Globalstar C LLC of all of the liabilities of Globalstar Corporation arising on or prior to the
Contribution Date (other than liabilities arising under this Agreement), and Globalstar Satellite Services, Inc. shall contribute all of its assets (other than its cash and cash equivalents and
its partnership interests in Globalstar) to GSSI LLC, a Delaware limited liability company, in exchange for a 100% membership interest in GSSI LLC and the assumption by GSSI LLC of all of the
liabilities of Globalstar Satellite Services, Inc. arising on or prior to the Contribution Date (other than liabilities arising under this Agreement). Globalstar C LLC and GSSI LLC are
collectively referred to herein as the "Single Member LLCs." 

        (i)    Thermo
shall purchase from the DIP Lender all of the DIP Lenders' rights under the DIP Loan as described in Section 5.10. 

        (j)    Thermo,
the Debtors, GS Holdings, New Globalstar and Globalstar Leasing shall enter into an Amended and Restated DIP Loan Agreement in the form of  Exhibit 2.1(j), and Thermo shall make the advance under
the DIP Loan to the New Globalstar described in Section 5.11. 

        Section 2.2    Interest Acquisition.    If and when the conditions set forth in Article VIII (other than
the conditions to be satisfied concurrently therewith) have been satisfied or waived, the following transactions (the "Interest Acquisition") shall take
place at the offices of Jones Day, 222 E. 41st Street, New York, New York at 10:00 a.m. local time on the Business Day immediately after all of such conditions have been
satisfied, or such other time, date and place to which the Parties may agree in writing (the date of the Interest Acquisition being herein referred to as the "Interest
Acquisition Date"): 

        (a)   Thermo
shall convert a portion of the amount outstanding under the DIP Loan into equity of New Globalstar as described in Section 5.13, and shall contribute or
agree to contribute (within the time periods set forth in Section 5.14) to New Globalstar an additional amount of cash equal to $43 million less the sum of (i) the previous
capital contributions made by Thermo to New Globalstar, (ii) $500,000 of the $700,000 contributed by Thermo to GS Holdings that was subsequently contributed by GS Holdings to New Globalstar,
(iii) the $10 million paid to the DIP Lender as provided in Section 5.10 (a), and (iv) the principal amount of all advances made by Thermo under the DIP Loan on and after
the Contribution Date. Following the transactions described in this Section 2.2(a) (and prior to the transactions described in Section 2.2(b)), Thermo shall own directly an 80.34%
membership interest in New Globalstar; 

7

 

        (b)   Thermo
shall purchase from the Globalstar Entities a 92.4% membership interest in GS Holdings (with a 1% membership interest in GS Holdings to remain with the Globalstar
Entities pursuant to Section 5.16), in exchange for the transfer to the Debtors of an 18.75% membership interest in New Globalstar and the release by Thermo of all obligations of the Globalstar
Entities under the DIP Loan, pursuant to the terms of an Agreement of Transfer (the "Agreement of Transfer") in the form of  Exhibit 2.2(b);

        (c)   New
Globalstar and Globalstar Leasing shall assume the Assumed Contracts pursuant to one or more duly executed Assignment Agreements; 

        (d)   GS
Holdings, Thermo and the Globalstar Entities who are parties thereto will amend and restate the New Globalstar LLC Agreement in the form attached as  Exhibit 2.2(d). 

        (e)   Thermo
and the Globalstar Entities who are parties thereto will amend and restate the GS Holdings LLC Agreement in the form attached as  Exhibit 2.2(e). 

        (f)    New
Globalstar and Thermo will amend and restate the Globalstar Leasing LLC Agreement in the form attached as  Exhibit 2.2(f). 

        (g)   Prior
to or contemporaneously with the transactions described in Section 2.2(b), the Globalstar Entities shall contribute all Cash then held by the Globalstar
Entities (except for the Wind Up Funds) to GS Holdings, which shall immediately thereafter contribute all such Cash to New Globalstar. The contributions contemplated by this Section 2.2(g)
shall not increase either the Globalstar Entities' equity ownership in GS Holdings or GS Holdings' equity ownership in New Globalstar. 

        (h)   Prior
to or contemporaneously with the transactions described in Section 2.2(b), the Globalstar Entities shall contribute 100% of the outstanding capital stock or
other equity interests of the Licensees to GS Holdings, which shall immediately thereafter contribute all such capital stock or other equity interests to New Globalstar. The contributions contemplated
by this Section 2.2(h) shall not increase either the Globalstar Entities' equity ownership in GS Holdings or GS Holdings' equity ownership in New Globalstar. 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE GLOBALSTAR ENTITIES  

        Except as otherwise disclosed to Thermo in the schedule delivered by the Globalstar Entities to Thermo by separate letter dated as of the date hereof and made a
part hereof (which schedule contains appropriate references to identify the representations and warranties herein to which the information in such schedule relates) (the
"Globalstar Disclosure Schedule"), each of the Globalstar Entities, jointly and severally, represents and warrants to Thermo as follows: 

        Section 3.1    Existence; Authorization, Validity and Effect of Agreement.    Globalstar is a limited
partnership duly organized, validly existing and in good standing under the laws of the State of Delaware. Each Subsidiary of Globalstar that is a corporation is duly incorporated, validly existing
and in good standing under the laws of the jurisdiction of its incorporation; each Subsidiary of Globalstar that is a limited liability company is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation; and each Subsidiary of Globalstar that is a limited partnership is duly organized and validly existing under the laws of the jurisdiction of its
formation. Each of Globalstar and its Subsidiaries (a) is duly qualified or licensed as a foreign corporation, limited liability company or limited partnership, as applicable, in each
jurisdiction in which its ownership of properties or the conduct of its business requires such qualification or licensing, except for failures to be so qualified or licensed that, individually or in
the aggregate, would not have a Globalstar Material Adverse Effect, (b) has all requisite corporate, limited liability company or limited partnership, as applicable, power and authority and the
legal right to own, pledge, mortgage and operate its properties, 

8

 

to
lease the property it operates under lease and conduct its business as now or currently proposed to be conducted, (c) is in compliance with its certificate of incorporation, bylaws,
certificate of formation of limited liability company, limited liability company agreement, certificate of limited partnership, partnership agreement or equivalent organizational documents, as
applicable, (d) is in compliance with all Laws applicable to it or to which any of its properties are subject, except for such noncompliance as, individually or in the aggregate, would not have
a Globalstar Material Adverse Effect, and (e) has made all necessary filings with, and has given all necessary notices to, the FCC to the extent required for ownership and use of the Globalstar
FCC Licenses and to other Governmental Authorities to the extent required for ownership and use of other Globalstar Governmental Licenses, except for any failures to file or give such notice that,
individually or in the aggregate, would not have a Globalstar Material Adverse Effect. Each Globalstar Entity has the requisite limited partnership, limited liability company or corporate power and
authority to execute and deliver this Agreement and all agreements, instruments and documents contemplated hereby to be executed and delivered by it; this Agreement and the consummation by the
Globalstar Entities of the Contemplated Transactions have been duly authorized by all requisite partnership, limited liability company or corporate action; and this Agreement has been duly and validly
executed and delivered by each Globalstar Entity and (assuming this Agreement constitutes a valid and binding obligation of each of the Parties hereto) constitutes the valid and binding obligation of
each Globalstar Entity, enforceable against each Globalstar Entity in accordance with its terms, except that (i) such enforceability may be subject to applicable bankruptcy, insolvency or other
similar Laws now or hereafter in effect affecting creditors' rights generally and (ii) the availability of the remedy of specific performance or injunctive or other forms of equitable relief
may be subject to equitable defenses and would be subject to the discretion of the court before which any proceeding therefor may be brought. 

        Section 3.2    Ownership of Subsidiaries.    

        (a)   Globalstar
does not own, directly or indirectly, any capital stock or other equity securities of any corporation or have any direct or indirect equity or ownership
interest in any other Person, other than the Subsidiaries of Globalstar. The Globalstar Disclosure Schedule lists the exact legal name of each Subsidiary of Globalstar, the jurisdiction of
incorporation or formation of each Subsidiary of Globalstar, and the authorized (in the case of capital stock) and outstanding capital stock or other equity interests of each Subsidiary of Globalstar. 

        (b)   All
outstanding capital stock or other equity interests of each Subsidiary of Globalstar are owned directly or indirectly by Globalstar, free and clear of all Liens. All
outstanding shares of capital stock owned by Globalstar of each Subsidiary of Globalstar that is a corporation have been validly issued and are fully paid and nonassessable. All limited liability
company interests owned by Globalstar of each Subsidiary of Globalstar that is a limited liability company and all partnership interests owned by Globalstar of each Subsidiary of Globalstar that is a
limited partnership have been validly issued and are fully paid (to the extent required as of the date of this Agreement). No shares of capital stock or other equity interests of any Subsidiary of
Globalstar are subject to, nor have any been issued in violation of, preemptive or similar rights. 

        (c)   There
are not (and as of the Contribution Date there will not be) outstanding (i) any shares of capital stock or other equity securities of any Subsidiary of
Globalstar, (ii) any securities of any Subsidiary of Globalstar convertible into or exchangeable for shares of capital stock or other equity securities of any Subsidiary of Globalstar, or
(iii) any options or other rights to acquire from Globalstar or any of its Subsidiaries, or any obligation of Globalstar or any of its Subsidiaries to issue or sell, any shares of capital stock
or other equity securities of any Subsidiary of Globalstar or any securities convertible into or exchangeable for such capital stock or equity securities. 

9

  

        (d)   Neither
Globalstar nor any of its Subsidiaries is a party to, and to the Knowledge of the Globalstar Entities, there is not, any agreement restricting the transfer or
hypothecation of any capital stock or equity interests of any Subsidiary of Globalstar. 

        Section 3.3    No Conflict; Required Filings and Consents.    

        (a)   The
execution and delivery of this Agreement by the Globalstar Entities do not, and the performance of this Agreement and the consummation of the Contemplated
Transactions by the Globalstar Entities will not, in each case, (i) conflict with or violate the certificate of limited partnership, partnership agreement, certificate of formation of limited
liability company, limited liability company agreement, certificate of incorporation, bylaws or equivalent organizational documents of the Globalstar Entities or any of their respective Subsidiaries,
as applicable (as they may be amended or adopted with the prior consent of Thermo pursuant to the Sale Order, as applicable), (ii) subject to the approval by the Federal Communications
Commission (the "FCC"), conflict with or violate any Law or order, judgment, injunction or decree
applicable to the Globalstar Entities or any of their respective Subsidiaries, or by which any property or asset of any Globalstar Entity or any of its respective Subsidiaries is bound or affected, or
(iii) conflict with or violate or result in a breach or default under any contract, agreement or instrument binding upon the Globalstar Entities or any of their respective Subsidiaries
(excluding contracts, agreements and instruments that have been or will be rejected in connection with the Chapter 11 Case), except, in the case of clauses (ii) and (iii), for any such
conflicts, violations, breaches or defaults that, individually or in the aggregate, would not have a Globalstar Material Adverse Effect. 

        (b)   The
execution and delivery of this Agreement by the Globalstar Entities do not, and the performance of this Agreement and the consummation of the Contemplated
Transactions by the Globalstar Entities will not, require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Entity, except (i) for
(A) the applicable requirements, if any, of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the "Exchange
Act"), (B) the applicable notification requirements, if any, of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and
regulations thereunder (the "HSR Act"), and (C) the applicable notification or approval requirements, if any, of the FCC, the United States
Department of Defense (the "DoD"), the Department of Homeland Security (the "DHS"), the Federal Bureau
of Investigation (the "FBI"), and the United States Department of Justice (the "DoJ") and
(ii) where the failure to obtain any such consent, approval, authorization or permit, or to make any such filing or notification, would not, individually or in the aggregate, have a Globalstar
Material Adverse Effect. 

        Section 3.4    SEC Documents.    Globalstar has timely filed, and on the Interest Acquisition Date will have
timely filed, all forms, reports and documents required to be filed by it with the Securities and Exchange Commission (the "SEC") since
January 1, 2002. All SEC Filings, as of their respective dates, (a) complied, or will comply, in all material respects with the applicable requirements of the Exchange Act and
(b) did not, and will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in
the light of the circumstances under which they were made, not misleading. The representation and warranty in the preceding sentence does not apply to (a) any misstatement or omission in
(i) any SEC Filing filed prior to the date of this Agreement that was superseded by a subsequent SEC Filing filed prior to the date of this Agreement or (ii) any SEC Filing filed after
the date of this Agreement that is superseded by a subsequent SEC Filing filed prior to the Contribution Date or (b) any financial forecasts or projections included in the SEC Filings. The
consolidated financial statements of Globalstar included in the SEC Filings were prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of Globalstar and its Subsidiaries, as of the dates thereof (subject, in
the case of any unaudited statements, to the 

10

 

absence
of footnotes and to normal year-end audit adjustments). As of the time of the filing of any relevant SEC Filing, to the Knowledge of Globalstar and its Subsidiaries, the financial
forecasts or projections included in such SEC Filing (as qualified and limited in the SEC Filing) were made by management of Globalstar in good faith and on a reasonable basis, except for any failure
to make the financial forecasts or projections in good faith and on a reasonable basis that would not have a Globalstar Material Adverse Effect. No Subsidiary of Globalstar is currently required to
file any periodic reports with the SEC under the Exchange Act. 

        Section 3.5    No Changes.    Since the date of the last SEC Filing, through the date of this Agreement, except
as otherwise provided in this Agreement or in connection with the Contemplated Transactions, (a) neither Globalstar nor any of its Subsidiaries has taken any action described in any of clauses
(a) through (i) of the last sentence of Section 5.1, and (b) no Globalstar Material Adverse Effect has occurred. 

        Section 3.6    Title to Assets.    At the Contribution Date, the Globalstar Entities will convey to GS Holdings
title to the Assets (except as otherwise provided herein), free and clear of any Liens, other than Permitted Liens and Assumed Liabilities. Immediately after the Contribution Date, the Assets so
conveyed and the assets of any Subsidiaries of Globalstar that become Subsidiaries of New Globalstar as a result of the transactions to be effectuated on the Contribution Date shall be free and clear
of any Liens, other than Permitted Liens and Assumed Liabilities. 

        Section 3.7    Globalstar FCC Licenses.    The Globalstar Disclosure Schedule lists all of the Globalstar FCC
Licenses together with the owner of each Globalstar FCC License. No party other than the party designated on the Globalstar Disclosure Schedule (each a "Globalstar License
Entity") has any right, claim or interest in or to any Globalstar FCC License. Each Globalstar FCC License has been validly issued and is validly held in the name of the
applicable Globalstar License Entity, is in full force and effect and has been granted by final order of the FCC. Except for proceedings affecting the satellite services industry generally, there is
not pending, nor to the knowledge of Globalstar, threatened against Globalstar or against any Globalstar FCC License, nor is Globalstar aware of any basis for, any application, action, petition,
objection or other pleading, or any proceeding with the FCC or any other Governmental Entity which questions or contests the validity of, or seeks the revocation, forfeiture, non-renewal
or suspension of, any Globalstar FCC License, which seeks the imposition of any modification or amendment with respect thereto, or which would adversely affect the ability of New Globalstar to employ
any Globalstar FCC License in its business after the Interest Acquisition Date or seeks the payment of a fine, sanction, penalty, damages or contribution in connection with the use of any Globalstar
FCC License. Each Globalstar FCC License is unimpaired by any acts or omissions of the license holders. All material documents required to be filed at any time by each Globalstar License Entity with
the FCC or other Governmental Entity pursuant to applicable Law with respect to each Globalstar FCC License has been filed or the time period for such filing has not lapsed. All such documents filed
since the date that such Globalstar FCC License was issued or transferred to the Globalstar License Entity are correct in all material respects. No Globalstar FCC License is subject to any conditions
other than those appearing on the face of such Globalstar FCC License and those imposed by applicable Law upon licenses or the industry generally. Each Globalstar License Entity complies and, since
the filing of its initial application to acquire each Globalstar FCC License has complied, in all material respects with all applicable Laws, including (a) the rules, regulations and policies
pertaining to eligibility to hold Licenses in general, and (b) the rules, regulations and policies governing p and restricting foreign ownership of radio licenses. Each Globalstar License
Entity is in compliance with all terms and conditions of, and all its obligations under, each Globalstar FCC License. 

11

 

        Section 3.8    Intellectual Property.    

        (a)   To
the Knowledge of each Globalstar Entity, each of the Globalstar Entities and their respective Subsidiaries owns or licenses or otherwise has the right to use all
Intellectual Property that is necessary for the operation of their respective businesses and that the Globalstar Entities reasonably anticipate is likely to be used in their respective businesses or
otherwise held by the Globalstar Entities and their respective Subsidiaries, without infringement upon or conflict with the rights of any other Person with respect thereto, including all trade names
associated with any private label brands of the Globalstar Entities or any of their Subsidiaries, except where the failure to so own or license or otherwise obtain the right to use, individually or in
the aggregate, would not have a Globalstar Material Adverse Effect or where any such infringement or conflict, individually or in the aggregate, would not have a Globalstar Material Adverse Effect. To
the Knowledge of any Globalstar Entity, (i) no slogan or other advertising device, product, process, method, substance, part or component, or other material now employed, or now contemplated to
be employed, in the ordinary course of business by the Globalstar Entities or any of their Subsidiaries infringes upon or conflicts with any rights owned by any other Person, except where any such
infringement or conflict, individually or in the aggregate, would not have
a Globalstar Material Adverse Effect, and (ii) as of the date of this Agreement, no material claim or litigation regarding any of the foregoing is pending or threatened. 

        (b)   No
Globalstar Entity owns any material Trademarks, Patents or Copyrights or has any material Trademarks, Patents or Copyrights registered in, or the subject of pending
applications in, the United States Patent and Trademark Office or any similar office or agency in any other country or any political subdivision thereof. The registrations for the Intellectual
Property are valid and subsisting and in full force and effect to the extent they are necessary for the operation of the business of such Globalstar Entity and material to the assets, properties,
condition (financial or otherwise), operations or prospects to the Globalstar Entities taken as a whole, except where the failure to maintain a valid and subsisting registration with respect to such
collateral, individually or in the aggregate, would not reasonably be expected to have a Globalstar Material Adverse Effect. None of the material Patents or Copyrights necessary for the operation of
the business of such Globalstar Entity in the reasonable business judgment of such Globalstar Entity have been abandoned or dedicated, except where such abandonment or dedication, individually or in
the aggregate, would not reasonably be expected to have a Globalstar Material Adverse Effect. 

        Section 3.9    No Brokers.    None of the Globalstar Entities or any of their Subsidiaries has entered into any
contract, arrangement or understanding with any Person that may result in the obligation of the Globalstar Entities or any of their Subsidiaries, Acquirors or New Globalstar to pay any investment
banker's or finder's fees, brokerage or agent's commissions or other like payments in connection with the negotiations incident to this Agreement or the consummation of the Contemplated Transactions,
except that Globalstar has retained Jefferies & Company, Inc. ("Jefferies") as its financial advisor. The arrangements regarding such
relationship have been described in the Globalstar Disclosure Schedule and a copy of the engagement letter relating thereto has been provided to Thermo prior to the date of this Agreement. None of the
Acquirors shall have any liability to Jefferies arising from or relating to such retention. 

        Section 3.10    Liabilities and Obligations of Certain Subsidiaries.    Except for such liabilities or
obligations arising after the date of this Agreement that are not violative of Section 5.1 no Subsidiary of Globalstar that is not a Globalstar Entity has any liabilities or obligations
(whether accrued or unaccrued, absolute or contingent, or due or to become due), individually or in the aggregate, in excess of $10,000 other than those incurred in the ordinary course of business
consistent with past practices and, to the knowledge of the Globalstar Entities, there is no basis for any claim, suit or action against any Subsidiary of Globalstar that is not a Globalstar Entity
for any such liability or obligation. Except for such contracts entered into after the date of this Agreement that are not violative of Section 5.1, no 

12

 

Subsidiary
of Globalstar that is not a Globalstar Entity is party to any contract other than contracts entered into the ordinary course of business consistent with past practices. 

        Section 3.11    Scope of Globalstar Representations.    Except as and to the extent expressly set forth in this
Agreement (together with the Globalstar Disclosure Schedule and the agreements and certificates
contemplated hereby), no Globalstar Entity makes any representations or warranties whatsoever, and each Globalstar Entity disclaims all liability and responsibility for any representation, warranty or
statement made or information communicated (whether such representation, warranty, statement or communication was made orally or in writing) to Investor. 

        Section 3.12    Legal Proceedings.    There is no pending or, to the Knowledge of the Globalstar Entities,
threatened Legal Proceeding: 

        (a)   By
or against Globalstar or any of its Subsidiaries that relates to or may affect the business of, or any of the assets owned or used by, Globalstar or any of its
Subsidiaries (except where such pending or threatened Legal Proceeding would not have a Globalstar Material Adverse Effect); or 

        (b)   That
seeks to prevent, prohibit or make illegal or materially and adversely alter the Contemplated Transactions. 

        Section 3.13    Labor Matters.    Neither Globalstar nor any of its Subsidiaries is a party to a collective
bargaining agreement, and, to the Knowledge of the Globalstar Entities no labor unions or other organizations represent, purport to represent, or have attempted to represent, any employee of
Globalstar or any of its Subsidiaries with respect to the employee's employment therewith. 

        Section 3.14    Contracts.    Each Contract, the loss of which reasonably could be expected to have a
Globalstar Material Adverse Effect (collectively, the "Material Contracts"), is in full force and effect, and no rights of Globalstar or any of its
Subsidiaries under the Material Contracts have been assigned or otherwise transferred as security for any obligation of Globalstar or any of its Subsidiaries. The consummation of the Contemplated
Transactions pursuant to the Sale Order will not create or constitute a default or an event of default under any of the Material Contracts which are Assumed Contracts. 

        Section 3.15    Bring-Down of Bankruptcy Disclosure Schedules.    The Globalstar Disclosure
Schedule sets forth information with respect to the Debtors that would have been required to be set forth on schedules B and G pursuant to section 521 of the Bankruptcy Code and the Official
Bankruptcy Forms if the Debtors were to have commenced the Chapter 11 Case on the date specified in the Globalstar Disclosure Schedule rather than the date on which they were actually commenced, and,
to the Knowledge of the Globalstar Entities, such information is true, correct and complete in all material respects. None of the Globalstar Entities owns any real property. 

        Section 3.16    Restrictive Agreements.    Neither Globalstar nor any of its Subsidiaries is a party to any
agreement that purports to restrict or prohibit such Person, directly or indirectly, from engaging in any business currently engaged in by Globalstar or any of its Subsidiaries. 

        Section 3.17    Tangible Property.    Except for such matters that, individually or in the aggregate, would not
be reasonably likely to have a Globalstar Material Adverse Effect, the equipment included in the Assets or owned by the Subsidiaries of Globalstar that will become Subsidiaries of GS Holdings as a
result of the Contemplated Transactions is in good operating condition and repair (normal wear and tear excepted) and suitable for its use as used by Globalstar and its Subsidiaries in the operation
of the business of Globalstar and its Subsidiaries as of the date hereof. 

        Section 3.18    Globalstar Foreign Licenses.    Globalstar has made available to Thermo copies of the
Globalstar Governmental Licenses (other than the Globalstar FCC Licenses) issued by Canada and France (the "Globalstar Foreign Licenses"). The
Globalstar Foreign Licenses are valid and in full force 

13

 

and
effect. There is not pending, nor to the Knowledge of any Globalstar Entity, threatened, against the holder of a Globalstar Foreign License, or against the Globalstar Foreign Licenses, any
application, action, petition, objection or other pleading, or any proceeding with any Governmental Entity which questions or contests the validity of, or seeks the revocation, non-renewal
or suspension of, any of the Globalstar Foreign Licenses, which seeks the imposition of any modification or amendment with respect thereto, or which adversely affects the ability of the holder of such
Globalstar Foreign License to employ the Globalstar Foreign Licenses in its business or seeks the payment of a fine, sanction, penalty, damages or contribution in connection with the use of any
Globalstar Foreign License. 

        Section 3.19    Employee Plans.    The Globalstar Entities have delivered to Thermo true and correct copies of
the Employee Severance Plan, the Employee Retention Plan and the Loral Pension Plan as each is in effect as of the date hereof (together with, in the case of the Employee Severance Plan and the
Employee Retention Plan only, a list of the obligations under each such Plan as of a recent date). As of the Contribution Date, the Globalstar Entities shall have no liabilities under the Employee
Severance Plan, the Employee Retention Plan or the Loral Pension Plan that are due and unpaid. 

        Section 3.20    Certain Liabilities.    The Debtors' pre-petition liabilities and obligations which
are secured by Liens on Assets that are not discharged or released by the Sale Order do not exceed $100,000 in the aggregate. 

        Section 3.21    Additional Intellectual Property Representations.    Following the consummation of the
Contemplated Transactions, New Globalstar and/or Globalstar Leasing will own or license or otherwise have the right to use all Intellectual Property that is necessary for the operation of the business
of Globalstar and its Subsidiaries as presently conducted, without infringement upon or conflict with the rights of any other Person with respect thereto, except where the failure to so own or license
or otherwise obtain the right to use, individually or in the aggregate, would not have a Globalstar Material Adverse Effect or where any such infringement or conflict, individually or in the
aggregate, would not have a Globalstar Material Adverse Effect. 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE ACQUIRORS  

        Except as otherwise disclosed to the Globalstar Entities by separate letter dated as of the date hereof and made a part hereof (which schedule contains
appropriate references to identify the representations and warranties herein to which the information in such schedule relates) (the "Acquiror Disclosure
Schedule"), the Acquirors, jointly and severally, represent and warrant to each of the Globalstar Entities as follows: 

        Section 4.1    Organization.    Each Acquiror is duly organized, validly existing and in good standing under
the Laws of the state of its organization. 

        Section 4.2    Authority Relative to this Agreement.    Each Acquiror has the limited liability company power
and authority to enter into this Agreement and to carry out its obligations hereunder. The execution, delivery, and performance of this Agreement by each Acquiror and the consummation by it of the
Contemplated Transactions have been duly authorized by all requisite limited liability company actions. This Agreement has been duly and validly executed and delivered by each Acquiror, and (assuming
this Agreement constitutes a valid and binding obligation of each of the other Parties hereto) constitutes a valid and binding agreement of each Acquiror, enforceable against each Acquiror in
accordance with its terms. 

        Section 4.3    No Violations.    Assuming approval of the Bankruptcy Court and receipt of the other
Governmental Requirements, the execution, delivery and performance of this Agreement will not (a) violate any provision of the organizational instruments of any Acquiror, (b) violate any
Contract of any Acquiror except where such violation would not result in a Acquiror Material Adverse Effect, or 

14

 

(c) violate
or conflict with any statute, rule, regulation, ordinance, judgment, decree or decision applicable to any Acquiror, or any of its properties or assets or any other material
restriction of any kind or character to which any Acquiror or (solely in the case of Thermo) any of its Affiliates is subject that would prohibit or make unlawful the Contemplated Transactions. 

        Section 4.4    Consents and Approvals.    No consent, approval, or authorization of, or declaration, filing,
notice to, or registration with, any Governmental Entity is required to be made or obtained by any Acquiror in connection with the execution, delivery, and performance of this Agreement and the
consummation of the Contemplated Transactions, except for (a) the Governmental Requirements, (b) those that become applicable solely as a result of the specific regulatory status of
Globalstar or any of its Subsidiaries, or (c) where the failure to make, file, give or obtain any of them would not prohibit or make unlawful the consummation of the Contemplated Transactions. 

        Section 4.5    Brokers.    No broker, investment banker, financial advisor or other person is entitled to any
broker's, finder's, financial advisor's or other similar fee or commission from any Globalstar Entity in connection with the Contemplated Transactions based upon arrangements made by or on behalf any
Acquiror. 

        Section 4.6    Financing.    As of the date hereof Thermo has, and on the Contribution Date and the Interest
Acquisition Date it will have, access to sufficient funds to deliver the Initial Thermo Contributions to GS Holdings and New Globalstar on the Contribution Date, to make the initial contribution to
Globalstar Leasing on the Contribution Date, to purchase the DIP Loan pursuant to Section 5.10, to purchase the membership interests in GS Holdings from the Globalstar Entities on the Interest
Acquisition Date and to consummate the Contemplated Transactions, including without limitation to fund GS Holdings and New Globalstar with at least $43 million (including amounts paid in cash
to purchase the DIP Loan and amounts advanced under the DIP Loan by Thermo on or after the Contribution Date). THERMO REPRESENTS AND WARRANTS TO EACH GLOBALSTAR ENTITY THAT THERE IS NO FINANCING
CONTINGENCY OR CONDITION WITH RESPECT TO ITS OBLIGATIONS TO PROCEED WITH SUCH CONTRIBUTIONS, THE INTEREST ACQUISITION, AND THE CONTEMPLATED TRANSACTIONS. 

        Section 4.7    Investor Sophistication; Etc.    Thermo is a sophisticated investor and has such knowledge and
experience in financial, business and investment matters as to be capable of evaluating the merits and risks of the Contemplated Transactions. Thermo was not organized for the specific purpose of
engaging in the Contemplated Transactions. 

        Section 4.8    Forecasts and Projections.    Thermo acknowledges that any forecasts or projections included in
any SEC Filing are not to be viewed as facts and that actual results achieved by the Globalstar Entities or New Globalstar during the period or periods covered by any such forecasts or projections may
vary materially from those contained in such forecasts or projections. Without limiting the generality of Section 3.11 or the immediately preceding sentence, Thermo acknowledges that none of
the Globalstar Entities or any of their respective directors, officers, stockholders, managers, members, partners, employees, agents or representatives has made any representation or warranty
concerning any future revenues, costs, expenditures, cash flows, results of operations, financial condition or prospects of the Globalstar Entities or New Globalstar. 

        Section 4.9    Interim Operations of GS Holdings, New Globalstar and Globalstar Leasing.    Each of GS
Holdings, New Globalstar and Globalstar Leasing has been formed solely for the purpose of engaging in the Contemplated Transactions and, until the Interest Acquisition Date, will not engage in any
business activity or operations other than the business and operations of the Globalstar Entities as currently conducted and currently proposed to be conducted, or incur any liability or obligation
other than in connection with such business and operations or the Contemplated Transactions. 

15

 

        Section 4.10    Scope of the Acquirors' Representations.    Except as and to the extent expressly set forth in
this Agreement (together with the exhibits, schedules, agreements and certificates contemplated hereby), the Acquirors make no representations or warranties whatsoever, and disclaim all liability and
responsibility for any representation, warranty or statement made or information communicated (whether such representation, warranty, statement or communication was made orally or in writing) to the
Globalstar Entities. 

ARTICLE V

COVENANTS  

        Section 5.1    Conduct by the Globalstar Entities Pending the Interest Acquisition Date.    To the extent
provided by the Management Agreement, from the Contribution Date to the Interest Acquisition Date, New Globalstar shall have full power and authority to manage the operation of the business of the
Globalstar Entities and the Assets on behalf of the Globalstar Entities, subject to the ultimate control of the Globalstar Entities as set forth in the Management Agreement. Furthermore, in addition
to the obligations and restrictions of the Management Agreement, during such period, other than as directed by Thermo, none of the Globalstar Entities shall (i) reject any executory contract or
unexpired lease except those listed on Exhibit 1.3(a) on or after the date hereof; (ii) alter or terminate relationships with third
parties that would be reasonably likely to have a Globalstar Material Adverse Effect; or (iii) except as otherwise expressly contemplated under this Agreement or the Management Agreement, take
any action reasonably likely to have a Globalstar Material Adverse Effect. In furtherance and not in limitation of the foregoing, from the date hereof until the Interest Acquisition Date, except as
specifically provided in this Agreement, none of the Globalstar Entities shall: 

        (a)   adopt
or propose any change in its certificate of incorporation or bylaws or similar organizational instrument, except a change that would not have any adverse effect on
the Contemplated Transactions or terminate its corporate, partnership or limited liability company existence; 

        (b)   sell,
lease, license, surrender, relinquish, encumber, or dispose of any Assets or compromise any account receivable other than in the ordinary course of business; 

        (c)   terminate,
amend, modify, waive any rights with respect to, or supplement the terms of any Assumed Liability or any Contract not listed on  Exhibit 1.3(a) other than in the ordinary course of business;

        (d)   cease
their operations or turn off all or any part of their satellite telecommunications systems except in connection with normal operating procedures to maintain or
repair such systems; 

        (e)   communicate
with any of its customers, vendors or suppliers except in the ordinary course of business or as required by Law or, if such communication is outside the
ordinary course of business or not required by Law, after giving New Globalstar an opportunity to review and comment on such communication; 

        (f)    take
any action (other than entering into this Agreement and effectuating the Contemplated Transactions) that would cause an Event of Default under the DIP Loan; 

        (g)   amend
or change any term or provision of the Employee Severance Plan, the Employee Pension Plan, or the Loral Pension Plan (except, with respect to the Loral Pension
Plan only, amendments between the Contribution Date and the Interest Acquisition Date that relate solely to the severing of obligations relating to employees of the Globalstar Entities); 

        (h)   incur
any liability outside the ordinary course of business; or 

        (i)    agree
or commit to do any of the foregoing. 

16

 

Provided, however, that the foregoing prohibitions shall not apply to any action taken by a Globalstar Entity at the direction of Thermo or New
Globalstar pursuant to this Agreement or the Management Agreement. The Globalstar Entities shall take all commercially reasonable, necessary and appropriate actions (other than the payment of cure
amounts) to maintain in full force and effect all Contracts not listed on Exhibit 1.3(a) in accordance with their terms. Thermo and its
employees, agents, and contractors shall have no liability for any action or inaction taken pursuant to this Section 5.1, except for willful misconduct, fraud or breach of this Agreement. The
Parties acknowledge their intent that, on and after the Contribution Date, the Assets and the operation of the business currently conducted by the Globalstar Entities be operated by and within GS
Holdings, New Globalstar and Globalstar Leasing. 

        Section 5.2    Access and Information.    Each Globalstar Entity shall afford to Thermo and its financial
advisors, legal counsel, accountants, consultants, funding sources, and other authorized representatives reasonable access during normal business hours and without material disruption to the business
or operations of the Globalstar Entities throughout the period prior to the Interest Acquisition Date, to all books, documents, records, properties, plants, and personnel of the Globalstar Entities,
and all other information as Thermo reasonably may request in furtherance of the Contemplated Transactions. Except to the extent caused by the negligence, willful misconduct, fraud or breach of this
Agreement by the Globalstar Entities or any of their respective employees, agents, or contractors, Thermo shall
indemnify, defend, and hold harmless the Globalstar Entities from and against any and all claims asserted against or incurred by the Globalstar Entities arising out of any act or failure to act of
Thermo or its employees, agents, or contractors in connection with any inspection by Thermo or access to the offices, assets (including the Assets) and properties of the Globalstar Entities. Without
limiting the generality of the foregoing, Thermo shall comply with the terms and conditions of the Confidentiality Agreement with Globalstar dated February 10, 2003 in its handling of such
information. 

        Section 5.3    Filings; Other Action.    (a) The Parties shall comply with the Laws that are applicable
to any of the Contemplated Transactions and pursuant to which government notification or approval of the Contemplated Transactions is necessary. The Parties shall cooperate with each other and use all
commercially reasonable efforts to provide information required for this purpose and to promptly file with the appropriate Governmental Authorities all notifications, and applications seeking all
approvals, required to consummate the Contemplated Transactions. The Parties shall use all commercially reasonable efforts to resolve any objections, if any, as may be asserted by any Governmental
Entity with respect to the Contemplated Transactions. In connection with the foregoing, each Party shall promptly provide the other Parties with copies of all correspondence, filings, or
communications (or memoranda setting forth the substance thereof) between such Party or any of its representatives, on the one hand, and any Governmental Entity or members of their respective staffs,
on the other hand, with respect to all filings and submissions required hereunder. 

        (b)   Without
limiting the generality or effect of Section 5.3(a), (i) the Parties shall, as soon as practicable, file any required notifications or
applications, if any, with the FCC, DoD, DHS, FBI and DoJ and (ii) the Parties shall use all commercially reasonable efforts to respond as promptly as practicable to all inquiries received from
any such Governmental Entity for additional information or documentation. Each of the Parties hereto agrees that, except as otherwise expressly contemplated by this Agreement, it shall not take any
action that would reasonably be expected to materially adversely affect or materially delay the Interest Acquisition or the ability of any of the Parties hereto to satisfy any of the conditions to the
Interest Acquisition or to consummate the Contemplated Transactions. 

17

   
        Section 5.4    Bankruptcy Actions.    The Parties shall use their commercially reasonable efforts to obtain
entry of any additional orders or approvals by the Bankruptcy Court that any of Parties reasonably deems necessary and appropriate to effectuate the Contemplated Transactions and preserve the benefit
of the bargain of those transactions for each Party. 

        Section 5.5    Tax Returns and Filings; Payment of Taxes.    The Parties shall cooperate with respect to Tax
matters. The Globalstar Entities shall provide the Acquirors with such Tax information and copies of such Tax Returns (in each case, relating to the Assets or the operation of the business of the
Globalstar Entities and including, without limitation, the consolidated federal income tax return for 2001 and 2002) as either of them may reasonably request, reasonably promptly after such request. 

        Section 5.6    Certain Prohibitions.    Except to the extent necessary to comply with the requirements of
applicable Laws or Bankruptcy Court orders, from the Contribution Date to the Interest Acquisition Date, no Party will take, or agree or commit to take any action that would result in, or is
reasonably likely to result in, any of the conditions set forth in Article VII or Article VIII not being satisfied. 

        Section 5.7    Employment Matters.    

        (a)   From
time to time from the Contribution Date to the Interest Acquisition Date, New Globalstar (as directed by Thermo) may notify the Globalstar Entities of the names of
any employees engaged in the operation of the business of the Globalstar Entities (the "Business Employees") that New Globalstar wishes to hire (a
"Retainee Notice"). From and after the receipt of a Retainee Notice, each Globalstar Entity shall use its commercially reasonable efforts to retain each
employee that is listed on the Retainee Notice through the earlier of the Interest Acquisition Date and the date such Person is hired by New Globalstar. Each of New Globalstar and Thermo acknowledges
and agrees that the Globalstar Entities retain the right to terminate or otherwise alter the terms of employment of all Business Employees other than those whose names are contained in a Retainee
Notice; provided that the Globalstar Entities shall not terminate (other than for cause) any employee covered by the Employee Severance Plan without Thermo's prior written consent. The Globalstar
Entities have heretofore delivered to New Globalstar and Thermo a written list (the "Employee List") which sets forth (x) the names of each
Business Employee employed by the respective Seller Entity and describes the relevant details of each Business Employee's employment with such Seller Entity, including the Business Employee's
position, brief job description, work location, annual base salary or wage rate, any unused paid vacation, personal or sick leave, most recent annual bonus, and commencement date of employment, as
well as each such Business Employee's current employment status (e.g., active, leave of absence, short term disability), and (y) the amount each
Business Employee shall receive (i) under the Employee Severance Plan or such Seller Entity's other employment policies currently in force in the
event such Business Employee's employment with such Seller Entity is terminated other than for cause, and (ii) under the Employee Retention Plan and any other "stay bonus" or similar program,
if any. 

        The
Employee List shall be updated during regular intervals between the date hereof and the Interest Acquisition Date, and the Globalstar Entities shall provide a final Employee List to
New Globalstar and Thermo on the Interest Acquisition Date. 

        (b)   From
and after the Contribution Date, the Globalstar Entities shall permit New Globalstar and Thermo to communicate orally or in writing with the Business Employees who
are on a Retainee Notice regarding its plans, operations, business, customer relations, and general personnel matters. New Globalstar may offer employment to, and hire, Business Employees whose names
appear on a Retainee Notice, all such hires to be effective as of the Interest Acquisition Date. For purposes of this Agreement, a Business Employee who is hired by New Globalstar shall be referred to
as a "Transferred Employee." 

18

 

        (c)   Except
as specifically provided in this Agreement and the Management Agreement, the Globalstar Entities shall retain the responsibility for all liabilities relating to
compensation earned by a Business Employee for the provision of services to the Globalstar Entities on or before the date such Employee becomes a Transferred Employee, excluding amounts due under the
Employee Severance Plan, the Employee Retention Plan, and the Loral Pension Plan. 

        (d)   New
Globalstar shall recognize all accrued, but unused, paid vacation leave earned by a Transferred Employee under a vacation policy of a Globalstar Entity for purposes
of New Globalstar's vacation policy to the extent that such earned or paid vacation leave is described in the Employee List. New Globalstar shall make commercially reasonable efforts to ensure that
the deductibles, co-payments, and out-of-pocket costs paid during the plan year in which the Interest Acquisition occurs by a Transferred Employee under a
compensation or benefit plan which provides accident or healthcare coverage shall be credited against any deductibles, co-payments, and out-of-pocket costs required
to be paid under an accident or healthcare plan made available to the Transferred Employee by New Globalstar. 

        (e)   No
provision of this Section 5.7 shall create any rights in any individual who is not a Party, including any employee, former employee or Business Employee
(including any beneficiary or dependent thereof) of any Globalstar Entity or of any of their Affiliates. Further, this Section 5.7 shall not create any right to continued employment or service
(or resumed employment or service) with the Globalstar Entities or their Affiliates, New Globalstar or Thermo, or their Affiliates with respect to any employee, independent contractor or consultant,
and no provision of this Section 5.7 shall create any rights in any Person with respect to any benefits that may be provided, directly or indirectly, under any compensation or benefit plan or
any plan or arrangement that may be established by New Globalstar or
any of its Affiliates. No provision of this Agreement shall constitute a limitation on New Globalstar's or any of its Affiliates' rights to amend, modify or terminate after the Interest Acquisition
Date any plans or arrangements sponsored or maintained by New Globalstar or any of its Affiliates. 

        Section 5.8    Non-Solicitation/Non-Disclosure.    From the Contribution Date until the
termination of this Agreement in accordance with Article IX (the "Non-Solicitation
Period"), the Globalstar Entities and the Committee shall not solicit, enter into or agree to enter into any transaction involving the purchase or sale of any equity in or
material assets of the Seller Entities, GS Holdings, New Globalstar or Globalstar Leasing; provided,  however, that the Debtors may file this Agreement and
any document contemplated hereby (the "Transaction
Documents") with the SEC, as an exhibit to a current report on Form 8-K. During the Non-Solicitation Period, neither the Debtors nor the
Committee shall provide any party with any confidential information relating to any Seller Entity or any business operated by any Seller Entity other than in the ordinary course of business without
the prior written consent of Thermo. If any Person contacts the Debtors or the Committee with a written indication of interest or offer to purchase any equity in or assets of the Seller Entities, GS
Holdings, New Globalstar or Globalstar Leasing, then the Debtors or the Committee, as the case may be, shall promptly give to Thermo written notice of the terms and conditions of any proposal made by
such Person. 

        Section 5.9    Additional Matters.    Subject to the terms and conditions herein provided, each of the Parties
hereto shall use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper, or advisable under applicable Laws to
consummate and make effective the Contemplated Transactions, including using commercially reasonable efforts to cooperate with each other in good faith to obtain all necessary waivers, consents,
authorizations and approvals in connection with the Governmental Requirements and to effect all necessary registrations and filings. 

19

 

        Section 5.10    Purchase of DIP Loan by Thermo; Amendment to DIP Loan.    

        (a)   On
the Contribution Date, Thermo shall purchase from the DIP Lender all of the DIP Lender's rights and obligations under the DIP Loan, on terms acceptable to Thermo and
the DIP Lender. The terms of such purchase shall include a cash payment by Thermo of $10 million (subject to adjustment as provided in the Sale Order) plus accrued interest at the
non-default rate, and the issuance by Thermo or an Affiliate of a promissory note for $10 million (subject to adjustment as provided in the Sale Order) (the
"Thermo Note"). The Thermo Note shall bear interest at a rate of 12% per annum, with interest payable monthly in arrears and principal and accrued and
unpaid interest due and payable on the first anniversary of the Contribution Date. 

        (b)   The
Thermo Note shall be secured by an irrevocable letter of credit obtained by Thermo and issued by a financial institution acceptable to the DIP Lender. When Thermo is
required to pay the principal of the Thermo Note, New Globalstar shall pay in full to Thermo all then outstanding principal and interest under the DIP Loan, in accordance with terms of the DIP Loan.
If at such time, New Globalstar requires additional funds to pay such principal and interest, Thermo shall make an additional equity investment in New Globalstar in an amount necessary to provide such
funds (not to exceed the principal amount of the Thermo Note plus interest accrued thereon). Any such investment shall be subject to the preemptive rights described in the New Globalstar LLC Agreement
(as amended and restated on the Interest Acquisition Date), and such investment shall not be credited towards Thermo's obligations set forth in Section 5.14. 

        (c)   On
the Contribution Date, following the purchase of the DIP Loan by Thermo, Thermo, GS Holdings, New Globalstar, Globalstar Leasing, and the Debtors and certain of their
Subsidiaries shall amend and restate the DIP Loan in the form of Exhibit 2.1(j), which amendment and restatement shall provide for, among other
things, (i) the ability for Thermo to make advances as contemplated by Section 5.11, and (ii) the joint and several liability of the Debtors and New Globalstar for all obligations
under the DIP Loan. 

        Section 5.11    Funding of the Operations Pending the Interest Acquisition Date.    Between the Contribution
Date and the Interest Acquisition Date, Thermo shall provide the necessary funding to New Globalstar to continue its operations and to perform its obligations under the Management Agreement, and to
the Debtors to administer the Chapter 11 Case, in each case pursuant to a budget to be agreed upon among Thermo, the Debtors and the Committee prior to the Contribution Date (the
"Interim Budget") and subject to the limitations set forth in this Agreement, the Management Agreement and the DIP Loan. The Interim Budget shall
provide for, among other things, the payment of all Assumed Liabilities when due. All funding under this Section 5.11 shall be provided through advances to the New Globalstar pursuant to the
terms of the DIP Loan and payments by New Globalstar to the Debtors pursuant to the terms of the Management Agreement. On the Contribution Date, Thermo shall advance not less than $1.5 million
under the DIP Loan. The aggregate amount of cash contributed to New Globalstar by Thermo and GS Holdings and funds advanced by Thermo to New Globalstar under the DIP Loan on the Contribution Date
shall be not less than $3 million. 

        Section 5.12    Preservation of Cash by Debtors.    Between the Contribution Date and the Interest Acquisition
Date, the Debtors shall preserve all and not disburse any of their Cash on hand as of the Contribution Date or any Cash received after the Contribution Date other than in the ordinary course of
business or as authorized by order of the Bankruptcy Court. New Globalstar and the Debtors shall cooperate to arrange for the payment or settlement of the accounts receivable described in
Section 1.3(f), with the first $3 million in collections on such accounts receivable to be paid to Globalstar pursuant to Section 1.3(f), in such manner as not to adversely affect
the operations of Globalstar Canada Co. 

        Section 5.13    Conversion of DIP Loan into Equity.    On the Interest Acquisition Date, Thermo shall convert
all amounts outstanding under the DIP Loan into equity of New Globalstar, except for 

20

 

the
lesser of (i) the principal amount of the Thermo Note and (ii) the balance owed under the DIP Loan by New Globalstar. At such time, Thermo shall release the Debtors from all
obligations under the DIP Loan, and all liens on the Debtors' and New Globalstar's assets associated with the DIP Loan shall be released. 

        Section 5.14    Obligation of Thermo to Fund New Globalstar.    During the period commencing with the
Contribution Date and ending on the second anniversary of the Interest Acquisition Date, Thermo shall fund New Globalstar, directly or indirectly, with not less than $43 million in cash in the
aggregate (with not less than $25 million of such cash to be provided on or before the 160th day following the Interest Acquisition Date, not less than $30 million of such cash to be
provided on or before the first anniversary of the Interest Acquisition Date, and not less than $35 million of such cash to be provided on or before the date which is 18 months following
the Interest Acquisition Date). Cash provided by Thermo and its Affiliates from all sources shall be credited towards this $43 million obligation, including amounts paid in cash to purchase the
DIP Loan as described in Section 5.10(a), amounts advanced by Thermo pursuant to the DIP Loan, and except as provided in the next sentence, amounts contributed by Thermo to GS Holdings and New
Globalstar. Cash invested by Thermo or its Affiliates in (a) Globalstar Leasing, (b) GS Holdings to the extent required for the business and operations of GS Holdings and therefore not
subsequently contributed to New Globalstar during the two-year period described above or (c) New Globalstar as contemplated by Section 5.10(b) shall not be credited towards
this $43 million obligation (or the $25 million obligation). Except for the equity interests expressly provided for in this Agreement or in the New Globalstar LLC Agreement (as amended
and restated on the Interest Acquisition Date), Thermo will not receive, directly or indirectly, any equity in the exchange for funding credited towards this $43 million obligation. 

        Section 5.15    Change of Corporate Names.    Each of the Globalstar Entities shall take all necessary action
and provide all necessary consents and approvals to New Globalstar, and shall cause all of their Subsidiaries to do the same, for New Globalstar to change its legal name to a name acceptable to Thermo
on the Interest Acquisition Date. The Globalstar Entities shall cease using the name "Globalstar" or any derivation thereof on the Interest Acquisition Date or as promptly as practical thereafter
consistent with the approval of the Plan and the administration of the Chapter 11 Case. 

        Section 5.16    Treatment of Debtors' Membership Interest in GS Holdings.    After the Interest Acquisition
Date, the 1% membership interest in GS Holdings retained by the Debtors shall be held by New Globalstar, as the Debtors' disbursing agent, for the benefit of the Debtors, and shall not be distributed
to the Debtors' creditors in connection with the Plan except as provided in the following sentence. If a sale of such 1% membership interest occurs, the disbursing agent shall pay the proceeds of such
sale as provided in the Plan. 

ARTICLE VI

ADDITIONAL POST-INTEREST ACQUISITION DATE COVENANTS  

        Section 6.1    Further Assurances.    In addition to the provisions of this Agreement, prior to the Interest
Acquisition Date and from time to time thereafter, the Parties hereto shall use all commercially reasonable efforts to execute and deliver such other instruments of conveyance, transfer, or
assumption, as the case may be, and take such other action as may be reasonably requested to implement more effectively the conveyance and transfer of the Assets to New Globalstar, the assumption of
the Assumed Liabilities by New Globalstar, and the other Contemplated Transactions. 

        Section 6.2    Books and Records; Personnel.    For a period ending upon the later of (x) the seventh
(7th) anniversary of the Interest Acquisition Date (or such later date as may be required by any Governmental Entity, Law, or ongoing Legal Proceeding) and (y) the closure of the Chapter 11
Case: 

        (a)   Unless
New Globalstar shall have first given sixty (60) days' prior written notice to the Globalstar Entities, New Globalstar shall not dispose of or destroy any
of the business records and 

21

 

files
contained in the Assets other than in connection with a sale or other disposition of the Assets or any portion thereof. If New Globalstar wishes to dispose of or destroy such records and files
prior to that time, it shall first give sixty (60) days' prior written notice to the Globalstar Entities and the Globalstar Entities shall have the right, at their option and expense, upon
prior written notice to New Globalstar within such sixty (60)-day period, to take possession of the records and files within ninety (90) days after the date of the notice from the
Globalstar Entities. After that time, New Globalstar may dispose of or destroy any such records at its discretion. 

        (b)   New
Globalstar shall allow the Globalstar Entities and any of their directors, officers, employees, legal counsel, financial advisors, representatives, accountants,
professionals, auditors and other agents and any successors thereto (collectively, the "Globalstar Representatives") access to all business records and
files of any of the Globalstar Entities that are transferred by the Globalstar Entities to New Globalstar in connection herewith that are reasonably required by such Person in the administration of
the Chapter 11 Case or in anticipation of, or preparation for, any existing or future Legal Proceeding involving a Globalstar Entity, Tax Return preparation, litigation, or any liability that is not
an Assumed Liability, during regular business hours and upon reasonable notice at New Globalstar's principal place of business or at any location where such records are stored, and the Globalstar
Representatives shall have the right, at their expense, to make copies of any such records and files; provided,  however, that any such access or copying
shall be had or done in such a manner so as not to interfere with the normal conduct of New Globalstar's
business or operations. 

        Section 6.3    Employee Withholding.    The Globalstar Entities agree that, pursuant to the "Alternate
Procedure" (provided in Section 5 of Revenue Procedure 96-60, 1996-2 C.B. 399), with respect to filing and furnishing IRS Forms W-2, W-3,
W-4, W-5, and 941, (a) the Globalstar Entities shall report on a "predecessor-successor" basis (as set forth therein), (b) the Globalstar Entities shall be
relieved from furnishing Forms W-2 to any of the Transferred Employees, and (c) New Globalstar shall assume the obligations of the Globalstar Entities to furnish such Forms
W-2 to any such Transferred Employees for the year in which the Interest Acquisition occurs; provided that, in each case, the Globalstar
Entities shall cooperate with New Globalstar in such transition procedures by supplying New Globalstar with all relevant wage and withholding information in respect of periods prior to the Interest
Acquisition on a timely basis. 

        Section 6.4    Deferred Assets; Regulatory Approvals; Assumed Contracts.    

        (a)   Subject
to the Management Agreement, from the Contribution Date until all Regulatory Approvals have been obtained, (i) the Globalstar Entities shall retain, and
shall cause the Licensees to retain, on New Globalstar's behalf and for the exclusive benefit of New Globalstar such of the Governmental Licenses and other Assets, the transfer of which requires
Regulatory Approvals that have not been obtained (including without limitation the equity securities of the Licensees) (the "Deferred Assets") until
transferred to New Globalstar; (ii) New Globalstar shall pay to, or for the benefit of, the Globalstar Entities all reasonable costs and expenses incurred by the Globalstar Entities to maintain
such Deferred Assets until the date such Regulatory Approvals are obtained and such Deferred Assets are transferred to New Globalstar; (iii) New Globalstar shall indemnify and hold the
Globalstar Entities harmless from and against all liabilities, claims and damages incurred or asserted as a result of the Globalstar Entities' direct or indirect ownership, management or operation of
the Deferred Assets pursuant to this Section 6.4, including the amount of any Taxes or filing fees imposed upon or incurred by the Globalstar Entities as a result thereof but excluding any
liabilities, claims or damages caused by negligence or malfeasance of any of the Globalstar Entities or any of the Globalstar Representatives, and (iv) the Globalstar Entities shall provide New
Globalstar with copies of any notice from or correspondence with any Governmental Entity with respect the Deferred Assets. The Globalstar Entities shall use their commercially reasonable efforts to
continue to cooperate with New Globalstar in its efforts to 

22

 

obtain
all Regulatory Approvals; provided, however, that nothing herein shall require the Globalstar
Entities to maintain such Deferred Assets upon any termination of corporate or limited liability existence of such Globalstar Entity occurring after December 31, 2004. Following the receipt of
all necessary Regulatory Approvals, but not earlier than the Interest Acquisition Date, the Globalstar Entities promptly shall transfer the Deferred Assets to GS Holdings, which shall immediately
thereafter transfer them to New Globalstar. The Globalstar Entities shall not receive any additional equity in GS Holdings or New Globalstar in exchange for such transfers. 

        (b)   To
the extent that any Assumed Contract cannot be assigned to and assumed by New Globalstar on the Interest Acquisition Date because, notwithstanding the Sale Order, an
approval, consent or waiver
of a third party is required for such assignment and assumption (a "Required Consent") and has not been obtained, then (i) such Assumed Contract
shall not be assigned and assumed pursuant to Section 1.6 until the receipt of such Required Consent, (ii) the Globalstar Entities shall, at New Globalstar's expense, enter into such
agreements and arrangements as reasonably requested by New Globalstar to provide to it the economic benefit (taking into account tax costs and benefits) and operational equivalent of the assignment
and assumption of such Assumed Contract until such Required Consent is received, and (iii) the Parties shall use commercially reasonable efforts to obtain all Required Consents as soon as
practicable (provided the Globalstar Entities shall not be required to incur any costs or expenses in connection therewith which are not reimbursed by Thermo or New Globalstar). 

        Section 6.5    Cure Claims.    On or prior to the later of (i) the Interest Acquisition Date, or
(ii) five (5) Business Days after entry of an order of the Bankruptcy Court authorizing the assumption of any Assumed Contract (the "Assumption Order
Date") and allowing a cure claim for such Assumed Contract pursuant to Section 365(b) of the Bankruptcy Code, whether by an agreement among the Parties or following
litigation (the "Allowed Cure Claim"), New Globalstar shall pay to, or for the benefit of, the Globalstar Entities the Allowed Cure Claim in immediately
available funds. 

        Section 6.6    RESERVED.    

        Section 6.7    Debtors' Plan.    The Debtors shall use commercially reasonable efforts to file and seek
confirmation as soon as practicable of a chapter 11 plan (the "Plan") satisfactory to Thermo, pursuant to which the membership interests in New
Globalstar and GS Holdings held by the Debtors shall be distributed to the Debtors' creditors eligible for recovery under such Plan. The Plan will provide that such distribution is made in accordance
with Section 1145 of the Bankruptcy Code and that the Debtors shall be liquidated and dissolved promptly after the Plan Effective Date. The Plan shall also provide for the Equity Purchase
Option described in the Amended and Restated New Globalstar LLC Agreement attached as Exhibit 2.2(d) and such Equity Purchase Option shall be
effected under the Plan in accordance with Section 1145 of the Bankruptcy Code. Thermo's approval of the Plan shall not be unreasonably withheld or delayed. 

        Section 6.8    Contribution of Avoidance Actions and Wind Up Funds.    On the effective date of the Debtors'
Plan (the "Plan Effective Date"), the Debtors shall contribute to GS Holdings, which shall immediately thereafter contribute to New Globalstar,
(a) all Cash then held by the Debtors, except for any Cash necessary to consummate the Plan (including payment of administrative and other claims) and to perform the ministerial functions of
closing the Chapter 11 Case; and (b) all Avoidance Actions held by the Debtors on such date. These contributions shall not result in the issuance of any additional equity to the Debtors. From
and after the Plan Effective Date, New Globalstar will provide reasonable assistance to the Debtors in connection with the administration of the Chapter 11 Case or any liquidation or other winding up
of the Debtors at no charge; without limiting the generality of the foregoing, New Globalstar will permit its employees to spend such portion of their time as may be reasonably necessary to direct and
oversee the administration of the Chapter 11 Case or any liquidation 

23

 

or
other winding up of the Debtors, and New Globalstar shall serve as disbursing agent for such liquidation and winding up of the Debtors. 

        Section 6.9    Right to Participate in First Public Offering.    Thermo will use commercially reasonable
efforts to provide that all shareholders of record of Globalstar Telecommunications Limited, a Bermuda corporation, as of the Plan Effective Date have the opportunity to acquire securities in the
first underwritten public offering of equity securities, if any, made by New Globalstar (or any successor corporation) on or before the third anniversary of the Interest Acquisition Date at the price
such securities are offered to the public and in such amounts as New Globalstar determines to be appropriate after consultation with the managing underwriter or underwriters for such offering,  provided
that so doing will not result in any additional material expense to New Globalstar, have an adverse effect on the success of such offering or
result in any material delay of the completion of such offering. This Section 6.9 shall automatically terminate if Globalstar Telecommunications Limited dissolves or take any other action
adverse to the Debtors (as determined by the Debtors in their sole discretion) prior to the Plan Effective Date without the prior written consent of the Debtors and Thermo. 

ARTICLE VII

CONDITIONS PRECEDENT TO CONTRIBUTION  

        Section 7.1    Conditions Precedent to Obligations of All Parties.    The respective obligations of each Party
hereto to effect the Contribution Date Transactions shall be subject to the satisfaction at or prior to the Contribution Date of the following conditions: 

        (a)   no
statute, rule, regulation, executive order, decree, decision, ruling, or preliminary or permanent injunction shall have been enacted, entered, promulgated, or
enforced by any United States federal or
state court or Governmental Entity that prohibits, restrains, enjoins, or restricts the consummation of the Contemplated Transactions that has not been withdrawn or terminated; 

        (b)   no
Action shall have been commenced by or before any Governmental Entity or arbitral body against any Acquiror or any Globalstar Entity, seeking to prevent, prohibit or
make illegal or materially and adversely alter the Contemplated Transactions or which would reasonably be expected to have a Globalstar Material Adverse Effect;  provided, however, that the provisions of this Section 7.1(b) may not be asserted by any Party
that has, directly or indirectly, solicited or encouraged any such Action; provided, however, that as
long as the Sale Order contains a finding pursuant to Section 363(m) of the Bankruptcy Code that Thermo has acted in good faith in connection with the Contemplated Transactions, the provisions
of this Section 7.1(b) may not be asserted in connection with any appeal of the Sale Order in which no stay has been granted by the Bankruptcy Court; and 

        (c)   the
Sale Order shall be in full force and effect. 

        Section 7.2    Conditions Precedent to Obligations of the Globalstar Entities.    The obligations of the
Globalstar Entities to effect the Contribution Date Transactions shall be subject to the satisfaction at or prior to the Contribution Date of the following additional conditions (compliance with which
or the occurrence of which may be waived in whole or in part in a writing executed by the Globalstar Entities, unless such a waiver is prohibited by Law): 

        (a)   (i) each
Acquiror shall have performed in all material respects all covenants required to be performed by it under this Agreement at or prior to the Contribution
Date, (ii) the representations and warranties of the Acquirors contained in this Agreement (taken as a whole) shall be true and correct in all material respects as of the date of this Agreement
and as of the Contribution Date as if made at and as of such dates, or, in the case of representations and warranties made as of a specific date, as if made at and as of such date, and
(iii) the Globalstar 

24

 

Entities
shall have received a certificate signed by an officer of each of Acquiror as to the satisfaction of the conditions set forth in clauses (i) and (ii); 

        (b)   Thermo
shall have purchased the DIP Lender's rights under the DIP Loan as contemplated by Section 5.10, and shall have made the initial advance under the DIP Loan
as contemplated by Section 5.11; and 

        (c)   there
shall not have occurred an Acquiror Material Adverse Effect from the date of this Agreement to the Contribution Date. 

        Section 7.3    Conditions Precedent to Obligations of the Acquirors.    The obligations of Acquirors to effect
the Contribution Date Transactions shall be subject to the satisfaction at or prior to the Contribution Date of the following additional conditions (compliance with which or the occurrence of which
may be waived in whole or in part in a writing executed by Thermo, unless such a waiver is prohibited by Law): 

        (a)   (i) each
Globalstar Entity shall have performed in all material respects all covenants required to be performed by it under this Agreement at or prior to the
Contribution Date, (ii) the representations and warranties of the Globalstar Entities contained in this Agreement (taken as a whole) shall be true and correct in all material respects as of the
date of this Agreement and as of the Contribution Date as if made at and as of such dates, or, in the case of representations and warranties made as of a specific date, as if made at and as of such
date, and (iii) and Thermo shall have received a certificate signed by an officer of each of the Globalstar Entities as to the satisfaction of the conditions set forth in clauses (i) and
(ii); 

        (b)   there
shall not have occurred any Globalstar Material Adverse Effect since the date of this Agreement; and 

        (c)   Thermo
shall have received from the Debtors satisfactory evidence that immediately following the distribution of membership interests in New Globalstar to the Debtors'
creditors pursuant to the Plan, New Globalstar will have less than 500 "holders of record" of its equity securities as such term is defined under the Exchange Act (assuming that the membership
interests purchased by Thermo pursuant to this Agreement are held by one holder of record, and no other equity securities of New Globalstar have been issued other than as contemplated herein and to
QUALCOMM (which is also assumed to be one holder of record)). 

ARTICLE VIII

CONDITIONS PRECEDENT TO INTEREST ACQUISITION  

        Section 8.1    Conditions Precedent to Obligations of All Parties.    The respective obligations of each Party
hereto to effect the Interest Acquisition shall be subject to the satisfaction at or prior to the Interest Acquisition Date of the following conditions: 

        (a)   any
waiting period applicable to the consummation of the Contemplated Transactions under the HSR Act shall have expired or been terminated, and no Action shall have been
instituted by the United States Department of Justice or the United States Federal Trade Commission challenging or seeking to enjoin the consummation of Contemplated Transactions, which Action shall
not have been withdrawn or terminated; 

        (b)   no
statute, rule, regulation, executive order, decree, decision, ruling, or preliminary or permanent injunction shall have been enacted, entered, promulgated, or
enforced by any United States federal or state court or Governmental Entity that prohibits, restrains, enjoins, or restricts the consummation of the Contemplated Transactions that has not been
withdrawn or terminated; 

25

  

        (c)   no
Action shall have been commenced by or before any Governmental Entity or arbitral body against any Acquiror or any Globalstar Entity, seeking to prevent, prohibit or
make illegal or materially and adversely alter the Contemplated Transactions; provided, however, that
the provisions of this Section 8.1(c) may not be asserted by any Party hereto that has, directly or indirectly, solicited or encouraged any such Action;  provided, however, that as long as the Sale Order contains a finding pursuant to Section 363(m)
of the Bankruptcy Code that Thermo have acted in good faith in connection with the Contemplated Transactions, the provisions of this Section 8.1(c) may not be asserted in connection with any
appeal of the Sale Order in which no stay has been granted by the Bankruptcy Court; 

        (d)   the
Sale Order shall be in full force and effect; and 

        (e)   each
of GS Holdings, New Globalstar and Globalstar Leasing shall have received all Regulatory Approvals set forth on Section 3.3 of the Globalstar Disclosure
Schedule, and the FCC shall have consented to the transfer to New Globalstar of (i) the Big Leo License or (ii) all of the equity securities of L/Q Licensee, Inc. 

        Section 8.2    Conditions Precedent to Obligations of the Globalstar Entities.    The obligations of the
Globalstar Entities to effect the Interest Acquisition shall be subject to the satisfaction at or prior to the Interest Acquisition Date of the following additional conditions (compliance with which
or the occurrence of which may be waived in whole or in part in a writing executed by the Globalstar Entities, unless such a waiver is prohibited by Law): 

        (a)   (i) each
Acquiror shall have performed in all material respects all covenants required to be performed by it under this Agreement or the Management Agreement at
or prior to the Interest Acquisition Date, (ii) the representations and warranties of the Acquirors contained in this Agreement (taken as a whole) shall be true and correct in all material
respects as of the date of this Agreement and as of the Interest Acquisition Date as if made at and as of such dates, or, in the case of representations and warranties made as of a specific date, as
if made at and as of such date, and (iii) the Globalstar Entities shall have received a certificate signed by an officer of each Acquiror as to the satisfaction of the conditions set forth in
clauses (i) and (ii); 

        (b)   there
shall not have occurred an Acquiror Material Adverse Effect from the date of this Agreement to the Interest Acquisition Date; and 

        (c)   QUALCOMM
on the one hand, and the Debtors and the Committee on the other hand, shall have entered into a mutual release in form and substance satisfactory to the Debtors
and the Committee. 

        Section 8.3    Conditions Precedent to Obligations of the Acquirors.    The obligations of the Acquirors to
effect the Interest Acquisition shall be subject to the satisfaction at or prior to the Interest Acquisition Date of the following additional conditions (compliance with which or the occurrence of
which may be waived in whole or in part in a writing executed by Thermo, unless such a waiver is prohibited by Law): 

        (a)   (i) each
Globalstar Entity shall have performed in all material respects all covenants required to be performed by it under this Agreement or the Management
Agreement at or prior to the Interest Acquisition Date, (ii) the representations and warranties of the Globalstar Entities contained in this Agreement (taken as a whole) shall be true and
correct in all material respects as of the date of this Agreement and as of the Interest Acquisition Date as if made at and as of such dates, or, in the case of representations and warranties made as
of a specific date, as if made at and as of such date, and (iii) and Thermo shall have received a certificate signed by an officer of each of the Globalstar Entities as to the satisfaction of
the conditions set forth in clauses (i) and (ii); 

26

 

        (b)   there
shall not have been any Globalstar Material Adverse Effect from the date of this Agreement to the Interest Acquisition Date; and 

        (c)   Thermo
shall have received satisfactory evidence that immediately following the distribution of membership interests in New Globalstar to the Debtors' creditors pursuant
to the Plan, New Globalstar will have less than 500 "holders of record" of its equity securities as such term is defined under the Exchange Act (assuming that the membership interests purchased by
Thermo pursuant to this Agreement are held by one holder of record, and no other equity securities of New Globalstar have been issued other than as contemplated herein and to QUALCOMM (which is also
assumed to be one holder of record)). 

ARTICLE IX

TERMINATION, AMENDMENT AND WAIVER  

        Section 9.1    Termination by Mutual Consent.    This Agreement may be terminated at any time prior to the
Interest Acquisition Date by mutual written agreement of the Parties hereto. 

        Section 9.2    Termination by Any Party.    This Agreement may be terminated at any time prior to the Interest
Acquisition Date by any Party hereto if (a) a United States federal or state court of competent jurisdiction or United States federal or state Governmental Entity shall have issued an order,
decree or ruling or taken any other action permanently restraining, enjoining, or otherwise prohibiting the consummation of the Contemplated Transactions and either (i) thirty (30) days
shall have elapsed from the issuance of such order, decree or ruling or other action and such order, decree or ruling or other action has not been removed or (ii) such order, decree, ruling or
other action shall have become final and non-appealable; provided that the Party seeking to terminate this Agreement pursuant to this
Section 9.2(a) shall have used commercially reasonable efforts to remove such injunction, order or decree; or (b) the Interest Acquisition Date shall not have occurred on or before
June 30, 2004; provided, however, that the right to terminate this Agreement pursuant to this Section 9.2(b) shall not be available to any
Party hereto whose failure to fulfill any obligation under this Agreement shall have been the cause of the failure of the Interest Acquisition Date to have occurred on or prior to such date. 

        Section 9.3    Termination by the Globalstar Entities or the Committee.    (a) This Agreement may be
terminated at any time prior to the Interest Acquisition Date by the Globalstar Entities if (i) there has been a breach by any Acquiror of any representation or warranty contained in this
Agreement, which breach would result in the failure to satisfy one or more of the conditions set forth in Section 8.2 and which breach is not curable, or if curable, is not cured within thirty
(30) days after written notice of such breach is given by the Globalstar Entities to Thermo; (ii) there has been a breach of any of the covenants or agreements set forth in this
Agreement on the part of any Acquiror, which breach would result in the failure to satisfy one or more of the conditions set forth in Section 8.2 and which breach is not curable or, if curable,
is not cured within thirty (30) days after written notice of such breach is given by the Globalstar Entities to Thermo; or (iii) there shall have been an Acquiror Material Adverse Effect
since the date of this Agreement. 

        (b)   This
Agreement may be terminated at any time prior to the Interest Acquisition Date by either the Globalstar Entities or the Committee if all of the following shall not
have occurred by December 30, 2003: (i) the Contribution Date; and (ii) the initial funding by Thermo under the DIP Loan as described in Section 5.11. 

        Section 9.4    Termination by Thermo.    This Agreement may be terminated at any time prior to the Interest
Acquisition Date by Thermo if (a) there has been a breach by any Globalstar Entity of any representation or warranty contained in this Agreement, which breach would result in the failure to
satisfy one or more of the conditions set forth in Section 8.3 and which breach is not curable, or if 

27

 

curable,
is not cured within thirty (30) days after notice of such breach is given by Thermo to the Globalstar Entities; (b) there has been a breach of any of the covenants or agreements
set forth in this Agreement or the Management Agreement on the part of any Globalstar Entity, which breach would result in the failure to satisfy one or more of the conditions set forth in
Section 8.3 and which breach is not curable or, if curable, is not cured within thirty (30) days after written notice of such breach is given by Thermo to the Globalstar Entities;
(c) either GS Holdings, New Globalstar or Globalstar Leasing shall have received (despite the exercise of commercially reasonable efforts by the Acquirors) a final determination from an
applicable Governmental Entity denying one or more of the Regulatory Approvals contemplated by Section 8.3(b); (d) there shall have been a Globalstar Material Adverse Effect since the
date of this Agreement; or (e) an Event of Default under the DIP Loan shall have occurred after the Contribution Date. 

        Section 9.5    Effect of Termination and Abandonment.    

        (a)   Termination
of this Agreement pursuant to any of Sections 9.2, 9.4 or 9.4 shall be effected by written notice by the terminating Party to the other Parties hereto. In
the event of termination of this Agreement pursuant to this Article IX, this Agreement, except for the provisions of this Section 9.5 and Sections 11.1, 11.2, 11.3, 11.4, 11.5, 11.6,
11.7, 11.9, 11.10 and 11.13, will become null and void and have no further force or effect, without any liability on the part of any Party; provided, however, that nothing in this Article IX
will relieve any Party of liability for any breach of this Agreement occurring prior to that termination. 

        (b)   Upon
any termination of this Agreement prior to the Interest Acquisition Date (other than pursuant to Section 9.3(a)), the Globalstar Entities shall reimburse
Thermo for all legal, accounting and other documented out-of-pocket or third-party expenses (excluding financial advisory fees, if any) incurred in connection with this
Agreement or the Contemplated Transactions (the "Expense Reimbursement"); provided, however, that the Globalstar Entities shall not be obligated to pay
any portion of the Expense Reimbursement out of the Wind Down Funds (as defined in the DIP Loan). 

        (c)   In
addition, if this Agreement is terminated for any reason (other than pursuant to Section 9.3(a)) and the Globalstar Entities later seek Bankruptcy Court
approval of any transaction involving a sale of the Globalstar Entities' business as a going concern in a transaction that the Bankruptcy Court determines is a higher and better offer than the
Contemplated Transactions, promptly after such determination the Globalstar Entities shall pay to Thermo a break-up fee of $1,900,000 (the "Break-Up
Fee"). 

        (d)   Promptly
following any termination of this Agreement, all filings, applications, and other submissions made pursuant to the Contemplated Transactions shall, to the
extent practicable, be withdrawn from the Governmental Entity or other Person to which made. 

ARTICLE X

DELIVERIES  

        Section 10.1    The Globalstar Entities' Contribution Date Deliveries.    In addition to the other things
required to be done hereby, on the Contribution Date, the Globalstar Entities shall deliver, or cause to be delivered, to Thermo the following: 

        (a)   duly
executed bills of sale, assignment and assumptions agreements and other transfer documents, in customary form mutually agreeable to the Parties hereto, to
effectuate the transfer of the Assets and the assumption of the Assumed Liabilities pursuant to Section 2.1; 

        (b)   a
duly executed GS Holdings LLC Agreement signed by each Globalstar Entity; 

28

 

        (c)   a
duly executed Management Agreement signed by the Globalstar Entities and the Licensees; 

        (d)   an
affidavit, in form and substance reasonably acceptable to Thermo, of an officer of each of the Globalstar Entities, sworn to under penalty of perjury, setting forth
each such Globalstar's Entity name, address and federal tax identification number and stating that none of such Globalstar Entities is a "foreign" person (within the meaning of Section 1445 of
the Code and the Treasury Regulations thereunder); 

        (e)   a
copy of any resolutions of the Management Committee or Board of Directors of each Globalstar Entity, or similar enabling document, authorizing the execution, delivery,
and performance hereof by the Globalstar Entities, and a certificate of its secretary or assistant secretary, dated as of the Contribution Date, that such resolutions were duly adopted and are in full
force and effect; and 

        (f)    a
duly executed Amended and Restated DIP Loan Agreement signed by the Debtors and their Subsidiaries which are parties thereto. 

        Section 10.2    The Globalstar Entities Deliveries at Interest Acquisition.    In addition to the other things
required to be done hereby at the Interest Acquisition, the Globalstar Entities shall deliver, or cause to be delivered, to Thermo the following: 

        (a)   a
certificate dated the Interest Acquisition Date and validly executed on behalf of the Globalstar Entities to the effect that the conditions set forth in
Section 8.3(a) have been satisfied; 

        (b)   assignments
of lease (the "Lease Assignments"), dated as of the Interest Acquisition Date, with respect to each Assumed
Contract that is a lease, in form reasonably acceptable to Thermo (and in recordable form if required by Thermo); 

        (c)   duly
executed Assignment Agreements, in customary form mutually agreeable to the Parties hereto, to effectuate the assignment and assumption of the Assumed Contracts; 

        (d)   transfer
and assignment documents, in customary form mutually agreeable to the Parties hereto, to effectuate the transfer of all of the outstanding equity of the
Licensees to GS Holdings (and from GS Holdings to New Globalstar); 

        (e)   a
duly executed Agreement of Transfer signed by the Globalstar Entities; 

        (f)    a
duly executed Amended and Restated New Globalstar LLC Agreement in the form of Exhibit 2.2(d) signed by each
Debtor; and 

        (g)   a
duly executed Amended and Restated GS Holdings LLC Agreement in the form of Exhibit 2.2(e) signed by each
Debtor. 

        Section 10.3    Thermo's Contribution Date Deliveries.    In addition to the other things required to be done
hereby, on the Contribution Date, Thermo shall deliver, or cause to be delivered, the following: 

        (a)   copies
of authorizing resolutions of each Acquiror, or similar enabling document, authorizing the execution, delivery, and performance hereof by each Acquiror, and
certificates of each entity's secretary or assistant secretary, dated as of the Contribution Date, that such resolutions were duly adopted and are in full force and effect; 

        (b)   a
duly executed GS Holdings LLC Agreement, executed by Thermo; 

        (c)   a
duly executed New Globalstar LLC Agreement, executed by Thermo and GS Holdings; 

        (d)   a
duly executed Globalstar Leasing LLC Agreement, executed by New Globalstar and Thermo; 

29

 

        (e)   a
duly executed Management Agreement, executed by Thermo and New Globalstar; 

        (f)    a
duly executed Globalstar Lease Agreement executed by New Globalstar and Globalstar Leasing; and 

        (g)   a
duly executed Amended and Restated DIP Loan Agreement executed by Thermo, New Globalstar, GS Holdings and Globalstar Leasing. 

        Section 10.4    Thermo's Deliveries at Interest Acquisition.    In addition to the other things required to be
done hereby, at the Interest Acquisition, Thermo shall deliver, or cause to be delivered, the following: 

        (a)   certificates
each dated the Interest Acquisition Date and validly executed on behalf of each Acquiror to the effect that the conditions set forth in
Section 8.2(a) have been satisfied; 

        (b)   a
duly executed Agreement of Transfer signed by Thermo; 

        (c)   Thermo's
additional contribution to New Globalstar described in Section 2.2; 

        (d)   a
duly executed Amended and Restated New Globalstar LLC Agreement in the form of Exhibit 2.2(d) signed by Thermo
and GS Holdings; 

        (e)   a
duly executed Amended and Restated GS Holdings LLC Agreement in the form of Exhibit 2.2(e) signed by Thermo; and 

        (f)    a
duly executed Amended and Restated Globalstar Leasing LLC Agreement in the form of Exhibit 2.2(f) signed by
Thermo and New Globalstar 

        Section 10.5    Required Documents.    All documents to be delivered by the Globalstar Entities, or to be
entered into by the Parties necessary to carry out the Contemplated Transactions or contemplated by the terms of this Agreement shall be reasonably satisfactory in form and substance to Thermo, and
all documents to be delivered by the Acquirors necessary to carry out the Contemplated Transactions or to be entered into by the Parties necessary to carry out the Contemplated Transactions shall be
reasonably satisfactory in form and substance to the Globalstar Entities. 

ARTICLE XI

GENERAL PROVISIONS  

        Section 11.1    Notices.    All notices, claims, demands, and other communications hereunder shall be in
writing and shall be deemed given upon (a) confirmation of receipt of a facsimile transmission, (b) confirmed delivery by a standard overnight carrier or when delivered by hand, or
(c) the expiration of three (3) Business Days after the day when mailed by registered or certified mail (postage prepaid, return receipt requested), addressed to the respective Parties
at the following addresses (or such other address for a party hereto as shall be specified by like notice): 

        (a)   If
to any Acquiror, to: 

644
Governor Nicholls Street

New Orleans, Louisiana 70116

Attention: James Monroe III

Facsimile: 504-585-1393 

30

 

with
a copy, which shall not constitute notice, to: 

Taft,
Stettinius & Hollister LLP

425 Walnut Street, Suite 1800

Cincinnati, Ohio 45202

Attention: Gerald S. Greenberg, Esq.

Facsimile: 513-381-0205 

        (b)   If
to any Globalstar Entity, to: 

Globalstar,
L.P.

3200 Zanker Road

San Jose, California 95134

Attention: William Adler, Esq.

Facsimile: 408-933-4950 

with
copies, which shall not constitute notice, to: 

Jones
Day

222 East 41st Street

New York, New York 10017

Attention: Paul D. Leake, Esq.

Facsimile: 212-755-7306 

and

Akin
Gump Strauss Hauer & Feld LLP

590 Madison Avenue

New York, New York 10022

Attention: Stephen B. Kuhn, Esq. and Daniel H. Golden, Esq.

Facsimile: 212-872-1002 

        Section 11.2    Descriptive Headings; Interpretation.    The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The phrase "including" shall be deemed to mean "including, without limitation," whether or not
expressly stated herein. References to any business "as presently conducted" shall refer to the conduct of such business over the twelve (12) months prior to the date hereof. 

        Section 11.3    Entire Agreement; Assignment.    This Agreement (including the Schedules and Exhibits, the
Globalstar Disclosure Schedule, the Acquiror Disclosure Schedule, the Confidentiality Agreement, the GS Holdings LLC Agreement, the New Globalstar LLC Agreement (as amended and restated as
contemplated herein), the Globalstar Leasing LLC Agreement, the Globalstar Lease Agreement, the Management Agreement, and the other documents and instruments referred to herein) (a) constitute
the entire agreement and supersedes all other prior agreements and understandings, both written and oral, between or among the Parties hereto, with respect to the subject matter hereof, including any
transaction between or among the Parties hereto (but not including the Sale Order), and (b) shall not be assigned by operation of law or otherwise;  provided, however, that Thermo may assign its rights and obligations hereunder to one or more Affiliates
of Thermo, but Thermo shall not be relieved of its obligations hereunder as a result of such assignment. 

        Section 11.4    Governing Law.    This Agreement shall be governed by and construed in accordance with the Laws
of the State of Delaware applicable to contracts made and to be performed entirely within such State by residents of such State. 

        Section 11.5    Venue and Retention of Jurisdiction.    The Parties hereto agree that the Bankruptcy Court
shall have exclusive jurisdiction over all disputes and other matters relating to (a) the 

31

 

interpretation
and enforcement of this Agreement or any ancillary document executed pursuant hereto; and (b) the Assets and Assumed Liabilities, and the Parties expressly consent to and agree
not to contest such exclusive jurisdiction. All Actions brought, arising out of, or related to the Contemplated Transactions shall be brought in the Bankruptcy Court, and the Bankruptcy Court shall
retain jurisdiction to determine any and all such Actions. 

        Section 11.6    Expenses.    Except as otherwise provided herein, whether or not the actions contemplated by
this Agreement are consummated, all costs and expenses incurred in connection with this Agreement and the Contemplated Transactions shall be paid by the Party incurring such expenses. On the Interest
Acquisition Date, all documented legal, accounting and other third party expenses (excluding financial advisory fees, if any) incurred by Thermo or its Affiliates in connection with this Agreement or
the Contemplated Transactions shall be paid by New Globalstar. 

        Section 11.7    Amendment.    This Agreement may not be amended, except by an instrument in writing signed on
behalf of all Parties hereto. 

        Section 11.9    Waiver.    At any time prior to the Interest Acquisition Date, the Parties hereto may
(a) extend the time for the performance of any of the obligations or other acts of the other Parties hereto, (b) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto, and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a Party hereto to any such
extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such Party hereto. 

        Section 11.10    Counterparts.    This Agreement may be executed in two or more counterparts, each of which
shall be deemed to be an original but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile shall be
effective as delivery of an original, manually executed counterpart of this Agreement. 

        Section 11.11    Severability; Validity; Parties in Interest.    If any provision of this Agreement or the
application thereof to any Person or circumstance is held invalid or unenforceable, the remainder of this Agreement, and the application of such provision to other Persons or circumstances, shall not
be affected thereby, and to such end, the provisions of this Agreement are agreed to be severable. 

        Section 11.12    Enforcement of Agreement.    The Parties hereto agree that irreparable damage would occur in
the event that any provision of this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the Parties hereto shall be entitled
to equitable relief, including a temporary restraining order and an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this
being in addition to all other remedies available at law or in equity. 

        Section 11.13    No Third-Party Beneficiaries.    (a) The provisions of this Agreement are solely for
the benefit of the Parties and are not intended to confer upon any Person except the Parties any rights or remedies hereunder, and (b) there are no third-party beneficiaries of this Agreement
and this Agreement shall not provide any third party with any remedy, claim, liability, reimbursement, claim of action or other right. Without limiting the foregoing, no provision of this Agreement
shall create any third-party beneficiary rights in any employee or former employee of a Globalstar Entity or any other Persons (including any beneficiary or dependent thereof), in respect of continued
employment (or resumed employment) for any specified period of any nature or kind whatsoever, and no provision of this Agreement shall create such third-party beneficiary rights in any such Persons in
respect of any benefits that may be provided, directly or indirectly, under any compensation or benefit plan. 

        Section 11.14    Non-survival of Representations, Warranties and Agreements.    All
representations, warranties and (except as set forth in the following sentence) covenants set forth in this Agreement or in any certificate, document or other instrument delivered in connection
herewith shall terminate at the earlier of (a) the Interest Acquisition Date and (b) termination of this Agreement in accordance with 

32

 

Article IX
hereof, unless otherwise expressly specified by their terms. Only those covenants that by their express terms contemplate actions to be taken or obligations in effect after the
Interest Acquisition Date or termination of this Agreement, as the case may be, shall survive in accordance with their terms and to the extent so contemplated. 

        Section 11.15    Public Announcements.    Subject to the requirements of the Bankruptcy Code and other
applicable Law, no Party shall make any public announcement relating to the Contemplated Transactions without the prior approval of Globalstar and Thermo; provided however that Globalstar shall be
allowed to make such public filings with the SEC as it deems necessary or appropriate (in the exercise of its reasonable discretion) pursuant to the Exchange Act. 

        Section 11.16    FCC Related Requirements of Law.    The Parties acknowledge that the effectiveness of certain
provisions set forth in this Agreement and in the other agreements and documents referred to herein may be subject to prior FCC approval and, to the extent such FCC approval is required,
notwithstanding any other provision in this Agreement or other agreement or document referred to herein to the contrary, such provisions shall not be effective until such FCC approval is obtained. 

        Section 11.17    Utilization of Wind Down Funds.    Except as expressly provided in Sections 2.2(g) and 6.8,
the Globalstar Entities shall not be obligated to utilize any portion of the Wind Down Funds (as defined in the DIP Loan) to satisfy any claims by any Party under this Agreement or any other
agreement, document or instrument referred to herein or entered into in connection with the Contemplated Transactions. 

ARTICLE XII

DEFINITIONS  

        Section 12.1    Defined Terms.    As used herein, the terms below shall have the following meanings. 

        "Acquirors"
means GS Holdings, New Globalstar, Globalstar Leasing, and Thermo. 

        "Acquiror
Disclosure Schedule" has the meaning set forth in Article IV. 

        "Acquiror
Material Adverse Effect" means any change, effect, event or condition that has prevented or materially delayed or could reasonably be expected to prevent or materially delay
any Acquiror's ability to consummate the Contemplated Transactions. 

        "Action"
means any claim, suit, action, arbitration, inquiry, proceeding, investigation, charge or complaint. 

        "Affiliate"
(and, with a correlative meaning, "affiliated") means, with respect to any Person, any direct or indirect Subsidiary of such Person, and any other Person that, directly, or
through one or more intermediaries, controls or is controlled by or is under common control with such first Person, and, if such a Person is an individual, any member of the immediate Family
(including parents, spouse and children) of such individual and any trust whose principal beneficiary is such individual or one or more members of such immediate family and any Person who is
controlled by any such member or trust. As used in this definition, "control" (including, with correlative meanings, "controlled by" and "under common control with") means possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise). 

        "Agreement"
has the meaning set forth in the Preamble. 

        "Agreement
of Transfer" has the meaning set forth in Section 2.2(b). 

        "Allowed
Cure Claim" has the meaning set forth in Section 6.5. 

        "Assets"
has the meaning set forth in Section 1.2. 

33

 

        "Assignment
Agreement" means a bill of sale, assignment and assumption agreement in such form as may be agreed to by Thermo, New Globalstar and the Globalstar Entities. 

        "Assumed
Contracts" means all contracts and leases to which any Globalstar Entity is a party that are not listed on Exhibit 1.3(a)
as of the Interest Acquisition Date. 

        "Assumed
Liabilities" has the meaning set forth in Section 1.4. 

        "Assumed
Trade Accounts" has the meaning set forth in Section 1.4(b). 

        "Assumption
Order Date" has the meaning set forth in Section 6.5. 

        "Avoidance
Actions" has the meaning set forth in Section 1.3(b). 

        "Bankruptcy
Code" has the meaning set forth in the Preamble. 

        "Bankruptcy
Court" has the meaning set forth in the Preamble and, with respect to an appeal from any order or determination of the Bankruptcy Court, any court having jurisdiction over
such appeal. 

        "Bankruptcy
Professionals" means those professional persons retained by the Debtors or the Committee upon approval of the Bankruptcy Court pursuant to Sections 327 or 1103 of the
Bankruptcy Code. 

        "Big
Leo License" means the license issued by the FCC to Loral/QUALCOMM Partnership, L.P., and currently held by L/Q Licensee, Inc., to provide mobile satellite services in the
1610-1626.5/2483.5-2500 MHz bands. 

        "Business
Day" means any day that is not a Saturday, Sunday, or other day on which banking institutions in New York, New York are authorized or required by Law or executive order to
close. 

        "Business
Employees" has the meaning set forth in Section 5.7(a). 

        "Cash"
has the meaning set forth in Section 1.3(e). 

        "Chapter
11 Case" has the meaning set forth in the Preamble. 

        "Code"
means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 

        "Committee"
has the meaning set forth in the first paragraph of this Agreement. 

        "Confidentiality
Agreement" has the meaning set forth in Section 5.2. 

        "Contemplated
Transactions" means the transactions contemplated by Article II or other provisions of this Agreement. 

34

   
        "Contracts" has the meaning set forth in Section 1.2(d). 

        "Contribution
Date" has the meaning set forth in Section 2.1. 

        "Contribution
Date Transactions" has the meaning set forth in Section 2.1. 

        "Copyright
Licenses" means any written agreement naming any Globalstar Entity as licensor or licensee granting any right under any Copyright, including the grant of rights to copy,
publicly perform, create derivative works, manufacture, distribute, exploit and sell material derived from any Copyright. 

        "Copyrights"
means (i) all copyrights arising under the Laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and
whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including all registrations, recordings and applications in the United States
Copyright Office or in any foreign counterparts thereof and (ii) the right to obtain all renewals thereof. 

        "Deferred
Assets" has the meaning set forth in Section 6.4. 

        "Debtors"
has the meaning set forth in the Recitals. 

        "DHS"
has the meaning set forth in Section 3.3(b). 

        "DIP
Lender" means ICO Investment Corp. in its capacity as lender under the DIP Loan. 

        "DIP
Loan" means the Secured Super-Priority Debtor in Possession Credit Agreement dated as of May 19, 2003 among Globalstar as Borrower, the other Debtors as Guarantors, and the
DIP Lender, as amended and restated on the Contribution Date as contemplated herein and as it may be further amended, restated or supplemented from time to time. 

        "DoD"
has the meaning set forth in Section 3.3(b). 

        "DoJ"
has the meaning set forth in Section 3.3(b). 

        "Employee
Retention Plan" has the meaning set forth in Section 1.4(d). 

        "Employee
Severance Plan" has the meaning set forth in Section 1.4(c). 

        "Exchange
Act" has the meaning set forth in Section 3.3(b). 

        "Excluded
Assets" has the meaning set forth in Section 1.3. 

        "Excluded
Liabilities" has the meaning set forth in Section 1.5. 

        "Expense
Reimbursement" has the meaning set forth in Section 9.5(b). 

        "FCC"
means the Federal Communications Commission. 

        "FBI"
has the meaning set forth in Section 3.3(b). 

        "Gateway
Assets" means all real property, plant, antennas, equipment, contract rights and other assets owned or used by the Globalstar Entities in connection with the
on-ground operations of the satellite network, whether or not such assets are in the possession of the Globalstar Entities, and including without limitation (i) all contractual
rights with independent service providers for the operation of gateways and (ii) any undeployed gateways and all assets related thereto, and all rights associated with the foregoing. 

        "Globalstar"
has the meaning set forth in the Preamble. 

        "Globalstar
Disclosure Schedule" has the meaning set forth in Article III. 

        "Globalstar
Entities" has the meaning set forth in the Preamble. 

35

 

        "Globalstar
FCC Licenses" means the FCC licenses issued to Globalstar, Loral/QUALCOMM Partnership, L.P. or any of their respective Subsidiaries by the FCC. 

        "Globalstar
Governmental Licenses" means all Governmental Licenses in which any Globalstar Entity has any rights or which are otherwise used in the operation of the business of the
Globalstar Entities, including without limitation all Governmental Licenses owned by Loral, QUALCOMM, the GP Debtors, or other third parties which are, or have been at any time, used or claimed for
use by any Globalstar Entity, together with any renewals, extensions or modifications thereof and any additions thereto existing as of the Interest Acquisition Date. 

        "Globalstar
Foreign Licenses" has the meaning set forth in Section 3.18. 

        "Globalstar
Leasing" means Globalstar Leasing, LLC, a Delaware limited liability company. 

        "Globalstar
Leasing LLC Agreement" has the meaning set forth in Section 2.1(e). 

        "Globalstar
Lease Agreement" has the meaning set forth in Section 2.1(g). 

        "Globalstar
Material Adverse Effect" means any change, effect, event or condition that has had or could reasonably be expected to have a material adverse effect on (i) the Assets,
the Assumed Liabilities, or the operations of Globalstar and its Subsidiaries, taken as a whole, or (ii) the ability of the Globalstar Entities to consummate the Contemplated Transactions;
provided, however, that the loss of satellite availability shall not constitute a Globalstar Material Adverse Effect unless, following the date of this Agreement, (A) two additional satellites
in Globalstar's satellite constellation shall have been declared "failed" in addition to the existing four satellites that have been declared "failed" or (B) at any time, for a continuous
period of 60 calendar days or more there shall have been fewer than 39 Qualifying Satellites in Globalstar's satellite constellation. 

        "Globalstar
Representatives" has the meaning set forth in Section 6.2(b). 

        "Governmental
Entity" means any domestic or foreign governmental or regulatory authority, including any department, commission, board, bureau, agency or instrumentality of such authority
or any court or tribunal. 

        "Governmental
Licenses" means licenses, permits, certificates, franchises, consents, waivers, registrations or other regulatory authorizations from Governmental Authorities, including,
without limitation, State PUCs, the FCC, and all foreign or international Governmental Authorities regulating telecommunications or satellites. 

        "GP
Debtors" means LGP (Bermuda) Ltd., Loral QUALCOMM Partnership, L.P., Loral QUALCOMM Satellite Services, L.P., and Loral General Partner, Inc. 

        "GS
Holdings" has the meaning set forth in the Preamble. 

        "GS
Holdings LLC Agreement" has the meaning set forth in Section 2.1(b). 

        "Handset
Inventory" means all telephone handsets, fixed asset units, and car kits (and all other assets and materials related thereto) owned by the Globalstar Entities and all rights of
the Globalstar Entities related thereto. 

        "HSR
Act" has the meaning set forth in Section 3.3(b). 

        "Initial
Thermo Contributions" means collectively, the Initial GS Holdings Contribution, the Initial New Globalstar Contribution and the Initial Globalstar Leasing Contribution. 

        "Intellectual
Property" means, collectively, all rights, priorities and privileges of any Globalstar Entity relating to intellectual property, whether arising under United States,
multinational or foreign Laws or otherwise, including Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks, 

36

 

Trademark
Licenses and trade secrets, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom. 

        "Interest
Acquisition" has the meaning set forth in Section 2.2. 

        "Interest
Acquisition Date" has the meaning set forth in Section 2.2. 

        "Interim
Budget" has the meaning set forth in Section 5.11. 

        "IRS"
means the Internal Revenue Service. 

        "Jefferies"
has the meaning set forth in Section 3.9. 

        "Jefferies
Agreement" means the letter agreement among Jefferies, the Ad Hoc Committee of Bondholders of Globalstar, L.P. and Globalstar, L.P. dated April 9, 2002, as thereafter
amended or modified. 

        "Knowledge"
means, with respect to any entity, the actual knowledge of such entity's executive officers. 

        "Law"
means any domestic or foreign statute, rule, regulation or other legal requirement. 

        "Lease
Assignments" has the meaning set forth in Section 10.2(b). 

        "Leased
Assets" means all depreciable Assets, whether or not placed in service, including without limitation all depreciable Gateway Assets, equipment, furniture and fixtures,
improvements and Satellites. 

        "Legal
Proceeding" means any Action pending at law or in equity before any Governmental Entity or arbitral body. 

        "Licensees"
has the meaning set forth in the first paragraph of this Agreement. 

        "Liens"
means any and all liens, claims, encumbrances or other interests of any kind or nature whatsoever. 

        "Loral"
means Loral Space and Communications Ltd, a Bermuda company, together with its Affiliates. 

        "Loral
Pension Plan" means the Retirement Plan of Space Systems/Loral. 

        "Losses"
means any and all damages, fines, penalties, deficiencies, losses and expenses (including interest, court costs, reasonable fees of attorneys, accountants and other experts or
other reasonable expenses of litigation or other proceedings or of any claim, default or assessment). 

        "Management
Agreement" has the meaning set forth in Section 2.1(f). 

        "Material
Contracts" has the meaning set forth in Section 3.14. 

        "New
Globalstar" has the meaning set forth in the Preamble. 

        "New
Globalstar LLC Agreement" has the meaning set forth in Section 2.1(d). 

        "Non-Solicitation
Period" has the meaning set forth in Section 5.8. 

        "Parties"
means the Acquirors, the Globalstar Entities and the Committee, and "Party" means any one of them. 

        "Patent
Licenses" means all agreements, whether written or oral, providing for the grant by or to any Globalstar Entity of any right to manufacture, use, import, sell or offer for sale
any invention covered in whole or in part by a Patent. 

37

 

        "Patents"
means (i) all letters patent of the United States, any other country or any political subdivision thereof and all reissues and extensions thereof, (ii) all
applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, and (iii) all rights to
obtain any reissues or extensions of the foregoing. 

        "Permitted
Liens" do not include Liens that are discharged or released as against the Assets as a result of the Sale Order and means, with respect to Liens not so discharged,
(i) Liens created pursuant to the DIP Loan; (ii) purchase money Liens upon or in any property acquired after the filing of the Chapter 11 Cases by any of the Debtors in the ordinary
course of business to secure the purchase price of such property or to secure indebtedness incurred solely for the purpose of financing the acquisition of such property; (iii) any Lien securing
the renewal, extension or refunding of any indebtedness or other obligation secured by any Lien permitted by the foregoing clause (ii) without any increase in the amount secured thereby or in
the assets subject to such Lien; (iv) Liens (but in the case of the Debtors, only postpetition Liens) arising by operation of Law in favor of materialmen, mechanics, warehousemen, carriers,
lessors or other similar Persons incurred by any of Debtors in the ordinary course of business which secure its obligations to such Person; (v) Liens (but in the case of the Debtors, only
postpetition Liens) securing taxes, assessments or governmental charges or levies; (vi) Liens (but in the case of the Debtors, only postpetition Liens) incurred in the ordinary course of
business in connection with workers' compensation, unemployment insurance, old-age pensions and other social security benefits; (vii) Liens (but in the case of the Debtors, only
postpetition Liens) securing the performance of statutory obligations, surety and appeal bonds and other obligations of like nature, incurred as an incident to and in the ordinary course of business,
and judgment liens; (viii) zoning restrictions, easements, licenses Liens (but, in the case of the Debtors, only postpetition licenses), reservations (but, in the case of the Debtors, only
postpetition reservations) and similar restrictions on the use of real property or minor irregularities incident thereto which do not in the aggregate materially detract from the value or use of the
property or assets of the Debtors or impair, in any manner, the use of such property for the purposes for which such property is held by the Debtors; (ix) Liens created by GS Holdings or New
Globalstar and (x) Liens securing Assumed Liabilities; excluding, in each of clauses (i) through (x), any Liens discharged or released as against the Assets as a result of the Sale
Order. Nothing in this definition is intended to limit the scope of the Sale Order with respect to the discharge and release of Liens. 

        "Person"
means any natural person, firm, partnership, limited liability company, association, corporation, trust, business trust or other entity. 

        "Petitions"
has the meaning set forth in the Recitals. 

        "Petition
Date" means February 15, 2002, the date on which the Debtors commenced the Chapter 11 Case. 

        "Plan"
has the meaning set forth in Section 6.7. 

        "Plan
Effective Date" has the meaning set forth in Section 6.8. 

        "Property
Taxes" means real, personal and intangible ad valorem property taxes. 

        "QUALCOMM"
means QUALCOMM Incorporated, together with its Affiliates. 

        "Qualifying
Satellite" means a Satellite that either is in-service or an in-orbit spare capable of being placed in-service. 

        "Real
Property" means real property, together with all structures (surface and subsurface), facilities, improvements, fixtures, systems, attached or appurtenant thereto and all
easements, licenses, rights and appurtenances relating to any of the foregoing. 

38

 

        "Regulatory
Approvals" means all consents, waivers, approvals, certificates and other authorizations required to be obtained from any Governmental Entity, including without limitation
the FCC, DoD, DHS, FBI and DoJ, asserting jurisdiction over New Globalstar, Thermo, the Globalstar Entities or one of their Subsidiaries or the Assets, that are required in order to consummate the
Contemplated Transactions, and/or for New Globalstar and Thermo to operate the businesses of the Globalstar Entities following the Interest Acquisition Date. 

        "Rejected
Contract" has the meaning set forth in Section 1.6. 

        "Retainee
Notice" has the meaning set forth in Section 5.7(a). 

        "Sale
Order" means the order of the Bankruptcy Court entered on December 2, 2003, approving the Contemplated Transactions, as it may be amended from time to time with the prior
written consent of Thermo. 

        "Satellites"
means all rights to all satellites owned or used by the Globalstar Entities, including without limitation all satellites in-orbit and all grounded or spare
satellites, whether or not fully constructed and including all raw materials and work-in-process related to the construction of any satellites. 

        "SEC"
has the meaning set forth in Section 3.4. 

        "SEC
Filings" means all forms, reports and documents filed by Globalstar with the SEC between January 1, 2002 and the Contribution Date, in each case under Section 13 of
the Exchange Act and the rules and regulations promulgated thereunder. 

        "Seller
Entities" means the Globalstar Entities and their direct and indirect Subsidiaries. 

        "Single
Member LLCs" means Globalstar C, LLC, a Delaware limited liability company, and GSSI LLC, a Delaware limited liability company. 

        "State
PUCs" means state and local public service and public utilities commissions or franchise authorities or similar regulatory agencies in each applicable jurisdiction. 

        "Subsidiary"
when used with respect to any party, means any corporation or other organization, whether incorporated or unincorporated, of which such party directly or indirectly owns or
controls more than 50% of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of directors or others performing similar functions; provided,
however, that GS Holdings, New Globalstar, and Globalstar Leasing shall not be deemed to be Subsidiaries of any Globalstar Entity. 

        "Taxes"
means all United States federal, state and local, and foreign taxes, and other assessments of a similar nature (whether imposed directly or through withholding), excluding
Transfer Taxes, and including any interest, additions to tax, or penalties applicable thereto. 

        "Tax
Returns" or "Returns" means all United States federal, state and local, and foreign Tax returns, declarations, statements, reports, schedules, forms, and information returns and any
amended Tax Returns relating to Taxes. 

        "Thermo"
has the meaning set forth in the Preamble. 

        "Thermo
Note" has the meaning set forth in Section 5.10(a). 

        "Trademark
License" means any agreement, whether written or oral, providing for the grant by or to any Globalstar Entity of any right to use any Trademarks. 

        "Trademarks"
means (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source
or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all 

39

 

registrations
and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country or any political subdivision thereof, or otherwise, and all common-law rights related thereto, and (ii) the right to obtain all renewals
thereof. 

        "Transferred
Employee" has the meaning set forth in Section 5.7(b). 

        "Wind
Up Funds" means $7.5 million in Cash, to be used by the Debtors to confirm and consummate a plan of reorganization for the Debtors, and otherwise wind up the Debtors'
bankruptcy estates (but not to be used for investigating or prosecuting Avoidance Actions or objecting to proofs of claims filed in the Chapter 11 Case except for those claims proofs of which have not
been filed prior to the Interest Acquisition Date), generally as described on the budget attached as Exhibit 12 hereto. 

[SIGNATURE
PAGE FOLLOWS] 

40

   
        IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on their behalf, by their officers thereunto duly authorized, as of the date first above written. 

	 	 	GLOBALSTAR, L.P.
	

 	
 	

By:	

/s/  ANTHONY J. NAVARRA      

	 	 	 	Name:	Anthony J. Navarra
	 	 	 	Title:	President
	

 	
 	

GLOBALSTAR CAPITAL CORPORATION
	

 	
 	

By:	

/s/  ANTHONY J. NAVARRA      

	 	 	 	Name:	Anthony J. Navarra
	 	 	 	Title:	President
	

 	
 	

GLOBALSTAR SERVICES COMPANY, INC.
	

 	
 	

By:	

/s/  ANTHONY J. NAVARRA      

	 	 	 	Name:	Anthony J. Navarra
	 	 	 	Title:	President
	

 	
 	

GLOBALSTAR, L.L.C.
	

 	
 	

By:	

/s/  ANTHONY J. NAVARRA      

	 	 	 	Name:	Anthony J. Navarra
	 	 	 	Title:	President
	

 	
 	

GLOBALSTAR CORPORATION
	

 	
 	

By:	

/s/ DANIEL P. McENTEE

	 	 	 	Name:	Daniel P. McEntee
	 	 	 	Title:	Treasurer
	

 	
 	

GLOBALSTAR SATELLITE SERVICES, INC.
	

 	
 	

By:	

/s/ DANIEL P. McENTEE

	 	 	 	Name:	Daniel P. McEntee
	 	 	 	Title:	Treasurer
	

 	
 	

GLOBALSTAR USA, LLC
	

 	
 	

By:	

/s/ DANIEL P. McENTEE

	 	 	 	Name:	Daniel P. McEntee
	 	 	 	Title:	Treasurer
	

 	
 	

GLOBALSTAR CARIBBEAN LTD.
	

 	
 	

By:	

/s/ DANIEL P. McENTEE

	 	 	 	Name:	Daniel P. McEntee
	 	 	 	Title:	Treasurer
	

 	
 	

THERMO CAPITAL PARTNERS, L.L.C.
	

 	
 	

By:	

/s/  JAMES F. LYNCH      

	 	 	 	Name:	James F. Lynch
	 	 	 	Title:	Manager
	 	 	 	 	 

41

 

	

 	
 	

GLOBALSTAR HOLDINGS LLC
	

 	
 	

By:	

/s/  WILLIAM F. ADLER      

	 	 	 	Name:	William F. Adler
	 	 	 	Title:	Secretary
	

 	
 	

NEW OPERATING GLOBALSTAR LLC
	

 	
 	

By:	

/s/  WILLIAM F. ADLER      

	 	 	 	Name:	William F. Adler
	 	 	 	Title:	VP—Legal and Regulatory
	

 	
 	

GLOBALSTAR LEASING LLC
	

 	
 	

By:	

/s/  WILLIAM F. ADLER      

	 	 	 	Name:	William F. Adler
	 	 	 	Title:	Secretary
	

 	
 	

OFFICIAL COMMITTEE OF UNSECURED CREDITORS
	

 	
 	

By:	

Akin Gump Strauss Hauer & Feld LLP, as Counsel
	

 	
 	

By:	

/s/  DANIEL GOLDEN, AKIN GUMP STRAUSS HAUER & FELD LLP      

	 	 	 	Name:	Daniel Golden
	 	 	 	Title:	Partner

42

QuickLinks

Exhibit 10.11

ASSET CONTRIBUTION AGREEMENT BY AND AMONG GLOBALSTAR, L.P. NEW OPERATING GLOBALSTAR LLC THERMO CAPITAL PARTNERS, L.L.C. AND CERTAIN OF THEIR AFFILIATES December 5, 2003

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]