Document:

Exhibit
10.2(b)

Schedule of Purchasers

	
   

  	
  Name of Purchaser

  	
   

  	
   

  	
  Number of Series M

  Preferred Shares Purchased

  	
   

  	
  Purchase Price

  	
   

  
	
  James Kaboski

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Stephen Auburn

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Fred Wampnar

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Joseph Kwederis

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  James Kingsley

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Kenneth Swanson

  	
   

  	
  5

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Robert Corey

  	
   

  	
  15

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Greg Gard

  	
   

  	
  60

  	
   

  	
  $

  	
  20.00/share

  	
   

  
	
  Robert Maltarich

  	
   

  	
  115

  	
   

  	
  $

  	
  20.00/shareExhibit 10.1

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 24b-2 under the Securities Exchange Act
of 1934. Such Portions are marked “[*]” in this document; they have been filed
separately with the Commission.

CONTRACT

BETWEEN

GLOBALSTAR, INC.

AND

ALCATEL ALENIA SPACE FRANCE

FOR THE CONSTRUCTION OF

THE GLOBALSTAR CONTROL NETWORK FACILITY

FOR THE SECOND GENERATION
CONSTELLATION

CONTRACT NUMBER
GINC-C-07-0320

TABLE OF
CONTENTS

	
  Article

  	
   

  	
   

  	
   

  	
  Page

  
	
  Article 1.

  	
   

  	
  Definitions

  	
   

  	
  3

  
	
  Article 2.

  	
   

  	
  Scope and Exhibits

  	
   

  	
  5

  
	
  Article 3.

  	
   

  	
  Purchaser’s Undertakings

  	
   

  	
  6

  
	
  Article 4.

  	
   

  	
  Total Price

  	
   

  	
  7

  
	
  Article 5.

  	
   

  	
  Purchaser’s Undertakings under the Satellite
  Contract

  	
   

  	
  7

  
	
  Article 6.

  	
   

  	
  Delivery and Delivery Schedule

  	
   

  	
  8

  
	
  Article 7.

  	
   

  	
  Payment

  	
   

  	
  8

  
	
  Article 8.

  	
   

  	
  Inspection and Acceptance

  	
   

  	
  10

  
	
  Article 9.

  	
   

  	
  Title and Risk of Loss

  	
   

  	
  11

  
	
  Article 10.

  	
   

  	
  Access to Work in Progress

  	
   

  	
  12

  
	
  Article 11.

  	
   

  	
  Progress Meeting, Presentations and Reports

  	
   

  	
  12

  
	
  Article 12.

  	
   

  	
  Intellectual Property Rights

  	
   

  	
  12

  
	
  Article 13.

  	
   

  	
  Public Release of Information

  	
   

  	
  13

  
	
  Article 14.

  	
   

  	
  Confidentiality

  	
   

  	
  13

  
	
  Article 15.

  	
   

  	
  Intellectual Property Rights Indemnity

  	
   

  	
  13

  
	
  Article 16.

  	
   

  	
  Limitation of Liability

  	
   

  	
  14

  
	
  Article 17.

  	
   

  	
  Excusable Delays

  	
   

  	
  15

  
	
  Article 18.

  	
   

  	
  Liquidated Damages for Late Delivery

  	
   

  	
  16

  
	
  Article 19.

  	
   

  	
  Request For Deviation (RFD)/Request For Waivers
  (RFW) and Changes

  	
   

  	
  16

  
	
  Article 20.

  	
   

  	
  Termination for Default

  	
   

  	
  17

  
	
  Article 21.

  	
   

  	
  Termination for Convenience

  	
   

  	
  18

  
	
  Article 22.

  	
   

  	
  Stop Work

  	
   

  	
  18

  
	
  Article 23.

  	
   

  	
  Arbitration

  	
   

  	
  20

  
	
  Article 24.

  	
   

  	
  Warranty

  	
   

  	
  21

  
	
  Article 25.

  	
   

  	
  Communication and Authority

  	
   

  	
  22

  
	
  Article 26.

  	
   

  	
  RESERVED

  	
   

  	
  24

  
	
  Article 27.

  	
   

  	
  Licenses for Export

  	
   

  	
  24

  
	
  Article 28.

  	
   

  	
  RESERVED

  	
   

  	
  25

  
	
  Article 29.

  	
   

  	
  Options

  	
   

  	
  25

  
	
  Article 30.

  	
   

  	
  Key Personnel

  	
   

  	
  25

  
	
  Article 31.

  	
   

  	
  Indemnification and Insurance

  	
   

  	
  25

  
	
  Article 32.

  	
   

  	
  Effective Date of Contract

  	
   

  	
  26

  
	
  Article 33.

  	
   

  	
  Representations

  	
   

  	
  27

  
	
  Article 34.

  	
   

  	
  General Provisions

  	
   

  	
  27

  

 

 2
 

This Contract dated as of the 22nd day of
March 2007, made between Alcatel Alenia
Space France, a company organized under the laws of France and
having its registered office at 12, rue de la Baume 75008 Paris, France (“Contractor”)
and Globalstar, Inc., a
Delaware corporation with offices at 461 South Milpitas Blvd., Milpitas,
California 95035, U.S.A. (“Purchaser”).

Recitals

Whereas, Purchaser has procured from Contractor forty
eight (48) satellites for Globalstar Second Generation and other
Deliverable Items and related services pursuant to a contract (“Satellite
Contract”) dated as of November 30th, 2006; and

Whereas, Purchaser desires to procure from Contractor the
Control Network Facility for the Globalstar Second Generation and other
Deliverable Items and related services; and

Whereas, Contractor desires to provide such Control
Network Facility and other Deliverable Items and related services, all in
accordance with the terms and conditions of this Contract; and

Now therefore, the Parties hereto, in consideration of the
mutual covenants herein expressed, agree with each other as follows:

Terms and
Conditions

ARTICLE 1

DEFINITIONS

As used in this Contract, the following terms have the
meanings indicated:

“Background IP” shall mean Intellectual Property developed and owned by
Contractor prior to entering into this Contract or outside the scope of this
Contract which will be utilized or incorporated by Contractor into any
Deliverable Item under this Contract.

“Business Day” means a day which Purchaser and Contractor are both open
for business, other than a Saturday, Sunday or other day on which commercial
banks in New York City, France, or the State of California are authorized
or required by law to close.

“Contract” shall mean this Contract between Purchaser and Contractor,
including all Exhibits and Appendices referenced herein, and all amendments
that may be made hereto and thereto.

“Contractor” shall mean Alcatel Alenia Space France.

“Contractor Indemnitees” shall have the meaning ascribed to it in
Article 31(B).

“Control Network Facility” shall mean the items to be provided by
Contractor under this Contract composed of the following Subsystems:
(i) Satellite Operations Control Centers (SOCCs), (ii) the Telemetry
Command Units (TCUs) and (iii) the In Orbit Test Equipment (MCE and CMA).

“Control Network Facility Acceptance Review” shall have the meaning set
forth in section 2 of Exhibit A.

“Day” shall mean, whether or not capitalized, a calendar day.

“Deliverable Items” shall mean those items set forth in
Article 2(C).

“Delivery” shall mean the delivery of Deliverable Items as set forth in
Article 6.

“Delivery Place” shall mean the port of entry in the country of
destination as set forth in Article 6.

“Delivery Schedule” shall mean the timetables for Delivery of the
Deliverable Items as set forth in Article 6.

 3
 

“Documentation” shall mean the documentation to be supplied by
Contractor to Purchaser as listed in Exhibit A.

“EDC” shall mean the effective date of this Contract as set forth in
Article 32.

“Excusable Delay” shall have the meaning as set forth in
Article 17.

“Factory Test Review” shall have the meaning set forth in section 2
of Exhibit A.

“Final Acceptance” shall be as described in Article 8.

“Foreground IP” shall mean Intellectual Property developed, conceived or
first actually reduced to practice by the Contractor in the performance of Work
under this Contract.

“Globalstar System” shall mean the system consisting of the Satellites,
including the satellites from the first generation, Ground Control Network,
network control centers and user terminals for the provision of communications
services.

“Ground Control Network” shall mean the network composed of the
following: (i) Control Network Facility, (ii) the gateway RF
terminals and (iii) the Globalstar data network.

“In Orbit Test Equipment” or “IOTE” shall mean both the two
(2) IOTE (Measurement and Calibration Equipment (MCE)) and the IOTE
(Control, Monitoring and Analysis (CMA)), as set forth in section 9.1.3 of
Exhibit A.

“Intellectual Property” or “IP” shall mean all intellectual property, including
without limitation, inventions, patents, copyrights, trade secrets,
Documentation including Technical Data, discoveries, technical know-how,
techniques, procedures, methods, designs, improvements or innovations and
computer programs in executable code and source code form.

“Interest Rate” shall mean the One Month EURIBOR as established by the
European Financial Markets Association (ACI) and European Banking Federation
(EBF) and as published on their joint website at
http://www.euribor.org/html/content/euribor_data.html on the payment due date
plus 400 basis points (such one-month EURIBOR rate to “float” by being
re-determined on the first day of each calendar month).

“Key Person” shall have the meaning ascribed to it in
Article 30(A).

“Key Personnel” shall have the meaning ascribed to it in
Article 30(A).

“Licensed Items” shall mean any Deliverable Items being furnished
pursuant to, or to be utilized in connection with, this Contract which require
the approval, permission or license from a government with respect to export
control laws of such government.

“Milestone Events” shall mean those milestones which are eligible for
payment as set forth in the column entitled “Milestone Events” in
Exhibit C.

“Mission Operations Support Services” or “MOSS” shall mean the services
Contractor shall provide pursuant to the Satellite Contract as more fully set
forth in section 3.5 of Exhibit A of the Satellite Contract.

“Party” or “Parties” shall mean one or both of Contractor and Purchaser.

“Preliminary Design Review” or “PDR” shall mean the review described in
section 2 of Exhibit A.

“Purchaser” shall mean Globalstar, Inc.

“Purchaser Indemnitees” shall have the meaning ascribed to it in
Article 31(A).

“Satellite” or ”Spacecraft” shall mean any spacecraft to be constructed
and delivered pursuant to the Satellite Contract and/or the last eight
(8) spacecrafts of the first generation to be launched in 2007.

 4
 

“Satellite Contract” shall mean the contract entered into between
Purchaser and Contractor dated November 30th, 2006 for the delivery of the Satellites and
associated hardware and services (Contract number GINC-C-06-0300).

“Satellite Operations Control Centers” or “SOCCs” shall mean the Main
SOCC, the Development SOCC and the Back Up SOCC to be delivered under this Contract,
as set forth in section 9.1.2 of Exhibit A.

“Stop Work Order” shall mean a written order from Purchaser to
Contractor requesting that Contractor cease, and cause Subcontractors
(as applicable) to cease, performance of all or part of the Work for the
period specified in such order, as such period may be extended in accordance
with the Contract, as set forth in Article 22(A).

“Subcontractors” shall mean all subcontractors of Contractor at any
tier.

“Technical Data” shall mean information which is required for the
design, development, production, manufacture, assembly, operation, repair,
testing, maintenance or modification of the Deliverable Items, including
documentation.

“Telemetry Command Units” or “TCUs” shall mean the six (6) TCU
Racks to be delivered under this Contract, as set forth in section 9.1.1
of Exhibit A.

“Total Price” shall mean the firm fixed price payable for the Work as
defined in Article 4(A).

“WIP” shall mean all Work in progress.

“Work” shall mean all design, development, construction, manufacturing,
labor, services, and acts of Contractor, including tests to be performed,
required under Exhibit A (except section 10 thereof),
and including all equipment, materials, articles, matters, services and
things to be furnished by Contractor under this Contract.

ARTICLE 2

SCOPE AND
EXHIBITS

(A)  Contractor shall provide the necessary personnel, material,
services and facilities to perform the Work in accordance with the provisions
of this Contract, including the Exhibits and Appendices listed below, which are
attached hereto or incorporated by reference and made a part hereof, and to
make delivery to Purchaser in accordance with the Delivery Schedule as provided
in Article 6:

	
  Exhibit A 

  	
  Globalstar
  Second Generation Control Network Facility Statement of Work

  Ref
  RAOT-ASP-SW-3301 Issue 3 dated March 21, 2007

  
	
   

  	
   

  
	
  Exhibit B1 

  	
  Satellite
  Operation Control Center Requirements Specification Document

  Ref
  GS-06-1126 issue 2 dated March 20, 2007

  
	
   

  	
   

  
	
  Exhibit B2 

  	
  Telemetry
  and Command Unit Requirements Specification Document

  Ref
  GS-06-1125 issue 2 dated March 20, 2007

  
	
   

  	
   

  
	
  Exhibit B3 

  	
  In
  Orbit Test Equipment Requirements Specification Document

  Ref
  GS-06-1127 issue 1 dated July 14, 2006

  
	
   

  	
   

  
	
  Exhibit C 

  	
  Payment
  Plan

  
	
   

  	
   

  
	
  Appendix 1 

  	
  Mutual
  Nondisclosure Agreement between Globalstar, Inc and Alcatel Alenia Space
  France, dated November 2nd 2006 (incorporated herein
  by reference).

  
	
   

  	
   

  
	
  Appendix 2 

  	
  Technical
  Assistance Agreement (DTC Case TA 3474-05), dated December 14,
  2005; approved by U.S. Dept. State, March 22, 2006 and subsequent
  amendments (incorporated herein by reference).

  

 

 5
 

(B)   In case of any inconsistencies among the articles of this Contract
and any of the Exhibits, the following order of precedence shall apply:

Appendix 2

Terms and Conditions of Contract

Appendix 1

Exhibit C

Exhibit A

Exhibit B1, B2 and B3

(C)   The scope of this Contract is the design, production, testing, and
delivery of the equipment and services, as summarized in this
Article 2(C), and represents a firm commitment by Contractor and a firm
order by Purchaser for all equipment and services. The following constitute the
Deliverable Items:

(i)    The Satellite Operations Control Centers for
monitoring the Spacecrafts, as generally described in Exhibit B1.

(ii)   The Telemetry Command Units, as described in
Exhibit B2.

(iii)  The In Orbit Test Equipment, as described in
Exhibit B3.

(iv)  Documentation as described in section 9.3
of Exhibit A.

ARTICLE 3

PURCHASER’S
UNDERTAKINGS

(A)  Purchaser’s undertakings are contained in or identified in this Contract
and Exhibit A. In particular, Purchaser shall perform the following:

(i)    Purchaser shall provide all items as set
forth in section 10 of Exhibit A.

(ii)   Subject to government requirements,
Purchaser will provide access to Contractor and its Subcontractors at each of
Purchaser’s SOCC facilities and pertinent Globalstar gateways, on a timely
basis, as necessary to permit Contractor to deliver, install and test the
Deliverable Items.

(iii)  Purchaser shall be responsible for obtaining
all necessary approvals, authorizations and/or licenses to import, install,
test, use and operate the Deliverable Items in all countries of installation.

(B)   Contractor shall promptly notify Purchaser of any failure by
Purchaser to perform any of its obligations under this Contract which may cause
Contractor to be delayed, to incur additional costs, or both. In addition,
Purchaser shall promptly notify Contractor in writing of any event which may
delay or prevent the performance by Purchaser of any of its obligations under this
Contract which may cause Contractor to be delayed, to incur additional costs,
or both.

Any failure by Purchaser to perform any of its
obligations under this Contract which causes Contractor to be delayed, to incur
additional costs, or both, shall cause (i) in case of delay, an extension
of the Delivery Schedule to reflect the actual delay incurred by Contractor in
the performance of the Work as a result of such failure (such delay to be
documented to Purchaser) and (ii) in case of additional costs, payment to
Contractor by Purchaser of reasonable costs incurred by Contractor as a result
of such failure (such costs to be documented to Purchaser).

 6
 

ARTICLE 4

TOTAL PRICE

(A)  Purchaser shall pay to Contractor for the Work to be performed the
Total Price as set forth in the Table below in accordance with the payment
plans as set forth in Exhibit C, as such Total Price may be adjusted in
accordance with the provisions of this Contract.

The Total Price shall be deemed to include all fees for
the use of Intellectual Property as defined in Article 12 and all
transportation and insurance charges for delivery of each Deliverable Item as
set forth in Article 6 and Exhibit A.

	
  Item

  	
   

  	
  Description

  	
   

  	
  Price in Euro

  
	
  1

  	
   

  	
  SOCCs

  	
   

  	
  4,000,000

  
	
  2

  	
   

  	
  TCUs

  	
   

  	
  3,000,000

  
	
  3

  	
   

  	
  IOTE

  	
   

  	
  2,000,000

  
	
  Total
  Price

  	
   

  	
  9,000,000

  

 

(B)   In addition to the Total Price that Purchaser shall pay in
accordance with Article 4(A), Purchaser shall also be responsible for
paying all custom duties, VAT, import taxes, sales taxes or charges, taxes,
fees or duties of similar nature whatsoever levied in the U.S.A. or any
political division thereof or in the country where the services under this
Contract are performed or where the items are delivered (except for services
rendered in France or by the Subcontractors in their countries).

Such payments will be made by Purchaser in compliance
with the regulations in force at that time and will not be deducted from any
payment of price called for pursuant to Article 4(A) of this Contract.
Purchaser shall reimburse Contractor for any payment to be made by Purchaser
pursuant to this Article 4(B) but made by Contractor within thirty
(30) Days of receipt by Purchaser of the electronic invoice with all
relevant documentation evidencing liability for and payment of such tax, fees
or duties.

(C)   All payments by Purchaser pursuant to this Contract shall be made
without deduction or offset of any income taxes, withholding or similar taxes,
if any, of any nature whatsoever levied by Purchaser’s country, any political
division thereof or any other country where the Work is performed or by the
country from which payment is made, unless Purchaser shall be compelled to make
such deduction by government regulation, in which case Purchaser shall pay,
within thirty (30) Days of receipt by Purchaser of the relating electronic
invoice, any additional amount necessary in order that the net amount of
payments received by the Contractor shall be equal to the amount of payments
agreed to be paid pursuant to this Contract.

(D)  Contractor shall be entirely responsible for all present and future
taxes, levies and duties whatsoever imposed under this Contract in
(i) France and (ii) any of the Subcontractors’ countries, to the
extent relating to the performance of the Work, which taxes shall be paid by
the Contractor or the Subcontractors when they become due.

ARTICLE 5

PURCHASER’S UNDERTAKINGS
UNDER THE SATELLITE CONTRACT

Inasmuch as the Contractor is also the Satellite Contract
contractor, if Purchaser is delayed in the performance of any of its
obligations under the Satellite Contract due to a delay solely caused by
Contractor under this Contract, and it is not an Excusable Delay, then
contractor under Satellite Contract shall not be entitled to claim for any cost
or schedule adjustments as set forth in Article 3(B) of the Satellite
Contract nor shall be considered as an excusable delay as set forth in
Article 17 of the Satellite Contract for contractor’s performance in
meeting its delivery obligations.

 7
 

ARTICLE 6

DELIVERY AND DELIVERY
SCHEDULE

(A)  The Delivery Schedule is identified in the Table below. Delivery of
a Deliverable Item shall be deemed to have occurred upon arrival at the
Delivery Place.

	
  Item

  	
   

  	
  Description

  	
   

  	
  Delivery Date or date

  of performance

  	
   

  	
  Delivery Place

  
	
  1

  	
   

  	
  Main SOCC

  Development SOCC

  Back-Up SOCC

  	
   

  	
  Per
  Exhibit A

  	
   

  	
  Milpitas, CA

  Milpitas, CA

  El Dorado Hills, CA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  6 TCU Racks

  	
   

  	
  Per
  Exhibit A

  	
   

  	
  Clifton, TX

  Aussaguel, France

  Bosque Alegre, Argentina

  Dubbo, Australia

  Yeo-Ju, South Korea

  Delareyville, South Africa-(TBC)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  IOTE (MCE)

  IOTE (MCE)

  IOTE (CMA)

  	
   

  	
  Per
  Exhibit A

  	
   

  	
  Clifton, TX

  Aussaguel, France

  Milpitas, CA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Documentation

  	
   

  	
  Per
  Exhibit A

  	
   

  	
  Milpitas, CA

  

 

(B)   The Deliverable Items shall be transported at Contractor’s risk
and expense Carriage and Insurance Paid to the Delivery Place as specified in
the Table above (“CIP” according to Incoterms 2000), except for Documentation
that shall be transported at Contractor’s risk and expense Delivered Duties
Unpaid (“DDU” according to Incoterms 2000) to Delivery Place as specified in the
Table above.

(C)   The Contractor shall promptly notify Purchaser in writing of any
event which may delay or prevent the performance by Contractor of any of its
obligations under this Contract.

ARTICLE 7

PAYMENT

(A)  Payment terms shall be in accordance with this Article 7 and
Exhibit C to this Contract. Purchaser shall pay all invoices within
thirty (30) Days after the date of receipt of an emailed invoice confirmed
electronically.

(i)    Starting April 1, 2007
and until the Contract is paid in full, Contractor shall on the first Day of
each quarter provide Purchaser with one (1) original of the invoice for
the total amount of payments due during that quarter, in accordance with
Exhibit C. So there is no misunderstanding, the Parties agree that the invoice
for and payment of the first payment (second quarter of 2007) shall be handled
as set forth in Article 32.

(ii)   Beginning with the quarter
that starts July 1, 2007, Contractor shall deliver to Purchaser, along
with each quarterly invoice, supporting documentation confirming completion of
the Milestone Events which were to have been achieved during the quarter prior
to the quarter in which the invoice is delivered.

(B)   Should Contractor fail to achieve during a given quarter one or
more Milestone Events for which payment has already been made, then Contractor
shall deduct the amount relating to each such unachieved Milestone Event from
the invoice Contractor delivers at the beginning of the following quarter.

 8
 

Except as set forth in the preceding sentence, any delay
in the achievement of a particular Milestone Event will have no impact on the
amount invoiced at the beginning of the subsequent quarter. Any amount deducted
in accordance with this Article 7(B) will be re-invoiced with supporting
documentation submitted with the invoice for the quarter following completion
of such Milestone Event, and Purchaser shall make payment to Contractor in
accordance with such invoice after such completion.

(i)    If after five (5) Business Days from
the date of receipt of an invoice, Purchaser has not notified Contractor of a
dispute of the invoice, stating the reason for such dispute, then all Milestone
Events scheduled to occur during the preceding quarter shall be deemed
complete, and payment shall be due and payable within thirty (30) Days of
receipt of the emailed invoice. For purposes of Exhibit C, a Milestone
Event shall be deemed to have been completed by Contractor when all
requirements associated with the particular Milestone Event shall have been
completed in accordance with the provisions of the Contract.

(ii)   If Purchaser disputes only part of a
Milestone Event, then Purchaser shall pay to the Contractor the amount
corresponding to the undisputed portion of such Milestone Event.

The Parties agree to negotiate in good faith the
settlement of the disputed portion and the agreed upon amount shall be paid by
Purchaser after such settlement. No dispute with respect to the payment of any
amount under this Contract shall relieve the disputing Party of its obligation
to pay all other amounts due and owing under this Contract. The Parties agree
that a dispute over a Milestone Event payment shall not relieve Purchaser of
its obligation to make subsequent payments.

(C)   Contractor may, from time to time, submit an invoice requesting partial
payment for a partially completed Milestone Event. If Purchaser, in Purchaser’s
reasonable judgment, determines such partial payment to be appropriate under
the circumstances, then Purchaser shall make such partial payment, and the
remainder of the Milestone Event payment shall be paid at such time as the
Milestone Event is completed.

(D)  In the event that Contractor achieves any Milestone Event in
advance of the scheduled achievement date provided for in Exhibit C
and provided that the cumulative amount of payments shall not exceed the
schedule set forth in Exhibit C, then, subject to Purchaser’s
agreement, the Contractor shall be entitled to invoice the Purchaser for such
achieved Milestone Event. Purchaser shall pay for any such Milestone Event, subject
to having received the required supporting documentation.

(E)   Unless otherwise agreed in writing by the Party entitled to
payment, all transfers of funds in accordance with this Contract from one Party
to the other Party shall be sent to the receiving Party by wire transfer of
immediately available funds to the following bank accounts:

Alcatel Alenia Space France

For
payments in Euros:

Alcatel
Alenia Space France

Société
Générale Toulouse

Address:
Innopole Voie 8 - BP 500 31316 Labège Cedex, France

Swift
Code: [*]

Account no [*]

Globalstar, Inc.

Union
Bank of California

Address:
350 California Street, 10th Floor, San Francisco, CA 94104, U.S.A.

Routing
Number: [*]

Account no [*]

 9
 

or such other account as the relevant Party may specify from time to
time in writing.

Any payment due by Purchaser shall be deemed to have been
made when the Contractor’s bank account has been credited of the amount of
such payment.

If any payment would otherwise be due under this Contract
on any Day that is not a Business Day, such payment shall be due on the
succeeding Business Day.

(F)   Payments required to be made by either Party to this Contract and
not received within the due date plus ten (10) Days shall bear interest at
the Interest Rate for each Day from the tenth (10th) Day following the due date until the date of
actual payment. Such interest due pursuant to this Article 7(F) will be
included in the next quarterly invoice.

(G)   The Contractor shall send one (1) copy of each invoice to
Purchaser by email to [*] with confirming email to [*].

The Contractor may request status of payment by calling
[*] in Accounts Payable at [*].

The
address reference to be put on the invoice is:

Globalstar, Inc.

461 South
Milpitas Boulevard

Milpitas, California 95035, U.S.A.

The Contractor may send one (1) hard copy of each
invoice to Purchaser at address referenced above to the
attention of [*].

ARTICLE 8

INSPECTION AND
ACCEPTANCE

Contractor shall perform the following tests and reviews:

(A)  For each Subsystem of the Control Network Facility, Contractor
shall conduct a Factory Test Review on each Deliverable Items at Contractor’s
facilities. Upon successful completion of the Factory Test Review, Contractor
shall certify requirements compliance to Purchaser. Purchaser shall have two
(2) Days from receipt of such certification to notify Contractor in
writing of those particulars which do not meet the requirements of
the Contract.

Upon such notification by Purchaser, Contractor shall
remedy such particulars or satisfactorily complete other conditions mutually
acceptable to Purchaser and Contractor after which Contractor shall proceed to
ship each Deliverable Item to the designated delivery place. If Purchaser does
not so notify Contractor within two (2) Days, Contractor shall proceed to
ship each Deliverable Item to the designated delivery place.

(B)   For each Subsystem of the Control Network Facility, an Acceptance
Review shall be conducted following full and complete installation and testing
of the Deliverable Items in accordance with Exhibit A. Contractor and
Purchaser shall, within two (2) Days after the successful completion of
Acceptance Review, certify in writing on a form, mutually agreed, that
acceptance of the Deliverable Items has occurred. If Purchaser fails to reject
or certify acceptance within such two (2) Days after the successful
completion of Acceptance Review, acceptance of the Deliverable Items shall be
deemed to have occurred.

If a Deliverable Item is non-conforming to the
specifications defined in applicable Exhibit B1 to B3, Purchaser shall so
notify Contractor (with detailed reasons for such non-compliance given in the
notification), and such non-compliance shall be corrected by Contractor. Upon
such correction, followed by a delta Acceptance Review, if necessary,
acceptable to Purchaser, acceptance shall be deemed to have occurred.

 10
 

(C)   A Control Network Facility Acceptance Review shall be conducted
following completion of all Subsystem Acceptance Reviews referred to in
Article 8(B) in accordance with Exhibit A. Contractor and Purchaser
shall, within two (2) Days after the successful completion of Control
Network Facility Acceptance Review, certify in writing on a form, mutually
agreed, that Final Acceptance of the Control Network Facility has occurred. If
Purchaser fails to reject or certify acceptance within such two (2) Days
after the successful completion of Control Network Facility Acceptance Review,
Final Acceptance of the Control Network Facility shall be deemed to
have occurred.

If the Control Network Facility is non-conforming to the
specifications defined in Exhibit B1 to B3, Purchaser shall so notify
Contractor (with detailed reasons for such non-compliance given in the
notification), and such non-compliance shall be corrected by Contractor. Upon
such correction, followed by a delta Control Network Facility Acceptance
Review, if necessary, acceptable to Purchaser, Final Acceptance shall be deemed
to have occurred.

(D)  Upon completion of a Milestone Event, Contractor shall issue and
send to Purchaser a Milestone Event acceptance certificate. Purchaser shall
notify Contractor of its acceptance or rejection of a Milestone Event within
two (2) Days from the date of receipt of the Milestone Event acceptance
certificate, failing which such Milestone Event shall be deemed successfully
completed. In case of acceptance, the Parties shall sign the Milestone Event
acceptance certificate. In case of rejection, Purchaser shall state in writing
the reasons for such rejection and Contractor shall implement necessary
corrective measures. After such correction to the satisfaction of Purchaser,
such Milestone Event shall be deemed successfully completed and the Parties
shall sign the Milestone Event acceptance certificate.

ARTICLE 9

TITLE AND RISK OF LOSS

(A)  Subject to the provisions of this Contract, risk of loss for
Deliverable Items shall pass from Contractor to Purchaser upon Delivery to the
Delivery Place set forth in Article 6. Title to Deliverable Items shall
pass from Contractor to Purchaser upon Final Acceptance thereof.

Any loss or damage to such items prior to Purchaser’s
assumption of risk of loss shall be at Contractor’s risk, unless such loss or
damage is caused by the negligent acts or omissions or willful misconduct
of Purchaser.

(B)   Title to Deliverable Items shall pass to Purchaser free and clear
of any claims, liens, encumbrances and security interests of any nature.
Contractor shall not grant to third parties any lien, encumbrance or security
interest of any nature on Deliverable Items.

 11
 

ARTICLE 10

ACCESS TO WORK IN
PROGRESS

(A)  Subject to applicable government regulations, Contractor shall
afford Purchaser access to all WIP, including without limitation Technical Data
and information, test data, documentation (not containing cost
information), testing and hardware, being performed at Contractor’s facilities
pursuant to this Contract during the period of Contract performance as set
forth in section 2 of Exhibit A, provided that such access does not
unreasonably interfere with such WIP or any other work.

(B)   Contractor shall afford Purchaser access to WIP being performed
pursuant to this Contract in Subcontractor’s facilities to the extent
Contractor obtains such access, subject to the right of Contractor to accompany
Purchaser on any such visit and subject further to the execution by Purchaser
of such non-disclosure or similar agreements as may be required by
Subcontractors. Contractor shall use its best efforts to obtain access to the
WIP being performed in Subcontractor’s facilities.

ARTICLE 11

PROGRESS MEETING,
PRESENTATIONS AND REPORTS

(A)  In addition to any other meetings called for under the provisions
of this Contract, Contractor shall provide the personnel, facilities, materials
and support to conduct the following meetings and presentations with Purchaser,
provided that such meetings and presentations do not unreasonably interfere
with Contractor’s performance: (i) informal Program Manager meetings;
(ii) informal project level technical review meetings; and
(iii) management level presentations as deemed appropriate by Contractor
or Purchaser’s management and subject to reasonable prior notice
by Purchaser.

(B)   Contractor shall deliver to Purchaser all reports as described in
Exhibit A. The Parties agree to utilize a secure, electronic-based
system for delivery of reports and documents (which may include exceptions on
its use for certain documents).

ARTICLE 12

INTELLECTUAL PROPERTY
RIGHTS

(A)  Purchaser shall protect all Intellectual Property to which
Purchaser has a right of access pursuant to Article 10, or that is or may
be disclosed by Contractor to Purchaser, from disclosure to third parties in
the same manner in which Purchaser protects its own IP, in accordance with and
subject to Article 14.

(B)   Notwithstanding any other provision of this Contract, the
ownership in and title to Background IP delivered to Purchaser by Contractor in
accordance with this Contract shall remain in Contractor or its licensors.
Contractor hereby grants to Purchaser a fully paid up, non-exclusive,
perpetual, irrevocable (except as set forth herein), world-wide and
non-transferable (except as part of a sale of the business or by operation of
law) license (with right to sublicense to third parties) to use, duplicate,
adapt, make derivatives and disclose its Background IP (and its related documentation)
and other Deliverable Items for the the use, operation, enhancement and
maintenance of the Globalstar System pursuant to this Contract and the existing
Globalstar network.

(C)   Title to all Foreground IP shall remain with Contractor.
Contractor hereby grants to Purchaser a fully paid up, non-exclusive,
perpetual, irrevocable (except as set forth herein), world-wide and
non-transferable (except as part of a sale of the business or by operation of
law) license (with right to sublicense to third parties) to use, duplicate,
adapt, make derivatives and disclose its Foreground IP (and its related
documentation) and other Deliverable Items for the use, operation, enhancement
and maintenance of the Globalstar System pursuant to this Contract, the existing
Globalstar network and future similar contracts and such Globalstar network as
it will exist under such future similar contracts.

(D)  Purchaser hereby grants to Contractor a fully paid up,
non-exclusive, perpetual, irrevocable (except as set forth herein), world-wide
and non-transferable (except as part of a sale of the business or by operation
of law) license (with right to disclose to Subcontractors who are signatories
of the TAA as set

 12
 

forth in Appendix 2) to use, adapt and disclose
the patents identified as being “granted” as set forth in Exhibit I of the
Satellite Contract for the purpose of performance of the Work under this
Contract. In addition, Contractor reserves the right to request and receive
copies of Technical Data which are owned by Purchaser for use for the
performance of the Work. Purchaser grants to Contractor a license to use such
Technical Data under the same type of license as Purchaser grants to Contractor
in this Article 12(D), subject to the TAA.

ARTICLE 13

PUBLIC RELEASE OF
INFORMATION

(A)  During the term of this Contract, neither Party, nor its
affiliates, subcontractors, employees, agents and consultants, shall release
items of publicity of any kind including, without limitation, news releases,
articles, brochures, advertisements, prepared speeches, company reports or
other information releases related to the work performed hereunder, including
the denial or confirmation thereof, without the other Party’s prior written
consent.

(B)   Nothing contained herein or in the Mutual Nondisclosure Agreement
between Purchaser and Contractor, dated November 2, 2006 shall be deemed
to prohibit either Party from disclosing this Contract, in whole or in part, or
information relating thereto (i) as may be required by the rules and
regulations of a government agency with jurisdiction over the disclosing Party
or a stock exchange on which the disclosing Party’s shares are then listed,
(ii) as may be required by a subpoena or other legal process (iii) in
any action to enforce its rights under this Agreement, (iv) to its lenders
under appropriate assurances of confidentiality for the benefit of the
disclosing Party or (v) to its auditors, attorneys and other professional
advisors in the ordinary course, provided that such auditors, attorney and advisors
have contractual or professional obligations to maintain the confidentiality of
the disclosed material. The disclosing Party shall use reasonable commercial
efforts to disclose only such information as it believes in good faith it is
legally required to disclose pursuant to clauses (i) or (ii), above,
and will seek, to the extent reasonably available under applicable rules, to
obtain confidential treatment for any information either Party reasonably
considers trade secrets and that is required to be disclosed. To the extent
practicable, the disclosing Party shall provide the other Party with a
reasonable opportunity in advance of disclosure to request redactions or
deletions of specific terms and provisions of the Contract and shall
accommodate those requests to the extent reasonably consistent with applicable
confidential treatment rules.

(C)   Within a reasonable time prior to a proposed issuance of news
releases, articles, brochures, advertisements, prepared speeches, and other
such information releases concerning the Work performed hereunder, the Party
desiring to release such information shall request the written approval of the
other Party concerning the content and timing of such releases. The Parties
anticipate the issuance of press releases in connection with the execution of
the Contract, which press releases shall be subject to approval by both Parties
prior to release.

ARTICLE 14

CONFIDENTIALITY

The Parties agree that all exchanges of proprietary
information shall be governed by the Mutual Nondisclosure Agreement between
Purchaser and Contractor, dated November 2, 2006 as set forth in
Appendix 1, as such Agreement may be amended.

ARTICLE 15

INTELLECTUAL PROPERTY
RIGHTS INDEMNITY

(A)  Contractor shall indemnify, defend and hold harmless Purchaser and
its affiliates and their respective directors, officers, agents and employees,
against any claims, damages, losses, costs (including attorneys’ fees) incurred
in connection with any claim, suit, or proceeding asserted or filed against
Purchaser relating to infringement of any patent, copyright, trade secret,
trademark or other proprietary

 13
 

right based on the laws of the United States and EU,
or a country where Contractor or any Subcontractor is located (except that such
indemnification shall not apply to any patent identified as being “granted” as
set forth in Exhibit I of the Satellite Contract), by any Deliverable Item
to be delivered hereunder, or any part thereof or arising out of Contractor’s
performance of its obligations under the Contract. Purchaser shall notify
Contractor promptly in writing of any such claim, suit or proceeding, and give
Contractor proper and full information, of which it is aware, and reasonable
assistance to settle and/or to defend any such claim, suit, or proceeding. At
its option and expense, Purchaser may participate in the defense of such claim,
suit or proceeding with counsel of its own choosing. In addition, the
indemnification shall also apply if in the reasonable opinion of Contractor’s
outside intellectual property counsel, any Deliverable Item to be delivered
hereunder or any part thereof may become the subject of any claim, suit, or
proceeding for infringement of any such patent, copyright, trade secret,
trademark or other proprietary right.

(B)   In case of such a claim as set forth in Article 15(A),
Contractor shall, at its option and expense, either (i) procure for
Purchaser the right under such patent, copyright, trade secret, trademark or
other proprietary right, to use, lease, or sell, as appropriate, such
Deliverable Item, or part thereof, or (ii) replace or modify such
Deliverable Item, or part thereof, so that it becomes non-infringing but
continues to meet the requirements of the Contract.

(C)   Contractor shall have no liability for and the provisions of
Article 15(A) shall not apply for any infringement arising from
(i) the combination of such Deliverable Item, part thereof or process
practiced therein with any other item or part not furnished to Purchaser by
Contractor unless such Deliverable Item, part or process furnished by
Contractor contributorily infringes, or (ii) the modification of such
Deliverable Item, part thereof or process practiced therein, unless such
modification was made or authorized by Contractor, or (iii) the use of any
patent identified as being “granted” as set forth in Exhibit I of the
Satellite Contract.

(D)  Contractor’s total liability to Purchaser under this
Article 15 shall not exceed the Total Price. This Article 15 states
the entire obligation of Contractor and the exclusive remedy of Purchaser, with
respect to any alleged patent, copyright, trade secret or trademark
infringement by such product or part or process.

ARTICLE 16

LIMITATION OF LIABILITY

(A)  EXCEPT AS SPECIFICALLY PROVIDED IN THIS CONTRACT, CONTRACTOR MAKES
NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, WITH RESPECT TO THE
CONTRACT OR THE PERFORMANCE OF THE CONTRACTOR OR THE WORK HEREUNDER, WHETHER
ARISING AT LAW OR IN EQUITY AND ALL SUCH WARRANTIES AND REPRESENTATIONS,
EXPRESS OR IMPLIED, AT LAW OR IN EQUITY ARE, TO THE EXTENT PERMITTED BY
LAW, EXCLUDED.

(B)   IN NO EVENT SHALL CONTRACTOR OR ITS SUBCONTRACTORS BE LIABLE TO
PURCHASER FOR INCIDENTAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES
(INCLUDING ANY LOSS OF PROFIT OR ANY OTHER SIMILAR LOSS) WHETHER ARISING IN
CONTRACT, TORT, STRICT LIABILITY, OR UNDER ANY OTHER THEORY OF LIABILITY
RESULTING FROM ANY BREACH OF THIS CONTRACT OR WITH RESPECT TO ANY DEFECT,
NON-CONFORMANCE OR DEFICIENCY IN ANY INFORMATION, INSTRUCTIONS, SERVICES OR
OTHER THINGS PROVIDED PURSUANT TO THIS CONTRACT. THE FOREGOING EXCLUSION SHALL
APPLY WHETHER OR NOT FORESEEABLE OR EVEN IF CONTRACTOR HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. SPECIFICALLY, BUT WITHOUT LIMITATION TO THE
FOREGOING, CONTRACTOR AND ITS SUBCONTRACTORS SHALL NOT BE LIABLE TO PURCHASER
FOR ANY SUCH DAMAGES RESULTING FROM ANY LOSS OR DESTRUCTION OF A SPACECRAFT OR
FAILURE OF THE GLOBALSTAR SYSTEM TO OPERATE SATISFACTORILY.

 14
 

(C)   IN NO EVENT SHALL PURCHASER BE LIABLE TO CONTRACTOR OR ITS
SUBCONTRACTORS FOR INCIDENTAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR SPECIAL
DAMAGES (INCLUDING ANY LOSS OF PROFIT OR ANY OTHER SIMILAR LOSS) WHETHER
ARISING IN CONTRACT, TORT, STRICT LIABILITY, OR UNDER ANY OTHER THEORY OF
LIABILITY RESULTING FROM ANY BREACH OF THIS CONTRACT. THE FOREGOING EXCLUSION
SHALL APPLY WHETHER OR NOT FORESEEABLE OR EVEN IF PURCHASER HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES.

(D)  BOTH PARTIES’ SOLE AND EXCLUSIVE REMEDIES AND OBLIGATIONS FOR ANY
BREACH OF THIS CONTRACT OR WITH RESPECT TO ANY DEFECT, NON-CONFORMANCE OR
DEFICIENCY IN ANY INFORMATION, INSTRUCTIONS, GOODS, SERVICES OR OTHER THINGS
PROVIDED PURSUANT TO THIS CONTRACT ARE LIMITED TO THOSE SET FORTH IN THIS
CONTRACT, AND ALL OTHER REMEDIES OR RECOURSE AGAINST THE OTHER PARTY OF ANY
KIND ARE EXPRESSLY DISCLAIMED AND FOREVER WAIVED.

(E)   NOTWITHSTANDING ANY OTHER LANGUAGE IN THIS CONTRACT TO THE
CONTRARY, CONTRACTOR’S TOTAL LIABILITY TO PURCHASER SHALL NOT EXCEED THE TOTAL
PRICE. NOTWITHSTANDING ANY OTHER LANGUAGE IN THIS CONTRACT TO THE CONTRARY,
PURCHASER’S TOTAL LIABILITY TO CONTRACTOR SHALL NOT EXCEED THE TOTAL PRICE LESS
ANY PAYMENTS MADE.

ARTICLE 17

EXCUSABLE DELAYS

(A)  Any delay or failure in the performance of a Party’s obligations
under this Contract (other than payment obligations) shall be excused, and such
Party will not be liable for, or be in default for, such delay or
non-performance, if the cause of the delay or non-performance is, in whole or
in part, beyond such Party’s reasonable control and without the negligence of
such Party (or its Subcontractors at any tier).

Purchaser acknowledges that following the end of an
excusable delay event, Contractor shall resume full performance as soon as
commercially practicable after the end of an excusable delay event, and the
schedule of performance shall be deemed modified to reflect such recommencement
of performance. Payments obligations of Purchaser shall be suspended only for
the portion of Contractor’s performance of Work affected by the excusable
delay.

(B)   Excusable delays shall be conclusively deemed to include, but are
not limited to Acts of God or of the public enemy; acts or omissions of
governmental bodies, including the FCC, in their sovereign capacities or
contractual capacities (including the inability to obtain and/or the
suspension, withdrawal, or non-renewal of export or import licenses required
for the performance of the Contract); acts of war (declared or undeclared),
fires, earthquakes, floods, other unusually severe weather conditions such as
hurricanes, tornadoes and typhoons, epidemics, quarantine restrictions,
strikes, component or parts alerts, labor and other industrial disputes,
terrorist acts and freight embargoes sabotage, riots, theft; introduction of
malicious code; failures or interruptions in essential services or equipment (e.g., electrical
power, telecommunications, fuels, water); embargoes and other transportation
failures.

(C)   The Party whose performance is delayed under Section 17(A)
shall give notice in writing to the other Party within seven (7) Business
Days after an excusable delay shall have occurred or such notifying Party knows
of an excusable delay, whichever is later. Notwithstanding the foregoing, a
Party’s failure to provide such notice shall not prevent such an event from
qualifying as an excusable delay, except to the extent the failure to so notify
prejudices the other Party’s ability to mitigate the impact of the delay or non
performance. Such notice shall also be given at the termination of the
excusable delay. The delivery requirements shall only be extended, upon mutual
agreement of the Parties, by such period of time as is justified by the
evidence forwarded in the notice, but in any event not less than one
(1) Day for one (1) Day of excusable delay.

 15

(D)  Should excusable delays total, or be likely to total, six
(6) consecutive months or more, Purchaser, at its option, may terminate
this Contract with respect to the affected remaining Work by written notice to
Contractor and the conditions of Article 21 shall apply. Purchaser’s right
to terminate pursuant to this Article 17(D) shall not apply to the extent
that excusable delays do not affect Contractor’s ability to perform (i.e., such excusable delays affect
Purchaser only).

ARTICLE 18

LIQUIDATED DAMAGES FOR
LATE DELIVERY

(A)  Contractor understands that delays in Delivery of Deliverable Items
required herein may cause Purchaser to incur additional cost, loss of revenues
and other damages, which damages are difficult to estimate but the Parties
acknowledge are likely to be significant. Accordingly, the Parties agree to
fixed and liquidated damages for late Delivery of Deliverable Items which
damages are intended to be compensatory, not a penalty and are in lieu of
actual damages incurred by the Purchaser.

(B)   In the event Contractor has not successfully completed the Control
Network Facility Acceptance Review on or before the sixtieth (60th) Day after the due date as set forth in
Section 2.7 of Exhibit A, then for each Day thereafter until
completion of the Satellite Control Network Acceptance Review, Contractor
agrees to pay Purchaser, as liquidated damages, [*] of the price of the
Deliverable Item as set forth in Article 4 which caused the delay, up to a
maximum of [*] of the price of the delayed Deliverable Item.

(C)   Payment of liquidated damages due to Purchaser shall be made
within thirty (30) Days after receipt of an emailed invoice by Contractor
from Purchaser.

(D)  Delays in delivery shall be excused and the delivery date(s) shall
be extended, as appropriate, to reflect the following conditions:

(i)    if delay in Delivery is due to any cause
referred to in Article 17; or

(ii)   the execution of a Stop Work pursuant to
Article 22 which results in an extension of the Delivery Schedule; or

(iii)  if the delay is due to a cause or causes
attributable to the Purchaser.

(E)   The liquidated damages set forth herein reflect the mutual
agreement of the Parties as fair and reasonable compensation for a delay
in Delivery.

ARTICLE 19

REQUEST FOR DEVIATION
(RFD)/REQUEST FOR WAIVERS (RFW) AND CHANGES

(A)  Should Contractor desire to deviate from the requirements of a
specific item of the Work, it shall submit to Purchaser an RFD/RFW, as set
forth in section 2.2 of Exhibit A.

Contractor shall submit RFD/RFWs to the Purchaser promptly
as and when they occur. Before Purchaser shall grant a deviation or waiver, it
may negotiate in good faith with Contractor a mutually acceptable consideration
therefor.

(B)   Purchaser may from time to time between the EDC and completion of
this Contract, by written change order issued by Purchaser, make changes within
the general scope of this Contract regarding the Deliverable Items, the
services or in any drawings, designs, specifications, methods of shipment or
packing, quantities of items, places of delivery, additional Work, or the
omission of Work. Procedures for implementing such changes may be similar to
RFD/RFWs submitted by Contractor pursuant to Article 19(A), with the
Parties negotiating the terms of the change order, including the price therefor,
before the change order becomes effective, or Purchaser may issue the change
order without such negotiation, as set forth in Article 19(C).

(C)   If any change order causes an increase or decrease in the costs
of, or the time required for, Contractor’s obligations under this Contract, and
the Parties do not negotiate such terms before the

 16
 

change order becomes effective, in accordance with
Article 19(B), an equitable adjustment in the price or Delivery Schedule
or both shall thereafter be negotiated by the Parties and this Contract shall
be modified in writing accordingly provided that Contractor shall begin the
work related to the change if and when Contractor has received from Purchaser a
financial commitment acceptable to Contractor to begin such work. Any claim for
adjustment under this Article shall be deemed waived unless asserted in writing
(with the amount of the claim) within forty-five (45) Days from the date
of receipt by Contractor of the change order.

ARTICLE 20

TERMINATION FOR DEFAULT

(A)  Purchaser may, by written notice to Contractor, issue a written
notice of Default (the ”Default Notice”) to Contractor, if:

(i)    there is a material breach by Contractor in
the technical compliance identified during the Subsystems Acceptance Review of
any of the Deliverable Item, in accordance with the Contract; or

(ii)   Contractor fails to satisfactorily complete
the Control Network Facility Acceptance Review on or before six (6) months
after the due date as set forth in Article 18(B).

After Purchaser issues a Default Notice in connection
with any of the circumstances in Article 20(A)(i), Contractor shall within
thirty (30) Days of such notice submit to Purchaser a plan (“Plan”) for
remedying such Default. If the Plan demonstrates to the mutual agreement of the
Parties that the Control Network Facility Acceptance Review will be completed
within the time specified in Article 18(B) plus six (6) months, then
such Plan shall be implemented by Contractor and the Delivery Schedule shall be
adjusted as the Parties shall mutually agree. Contractor may also suggest a
Plan that does not result in the Control Network Facility Acceptance Review
being completed within the time specified in Article 18(B) plus six
(6) months, provided that Purchaser shall in its sole discretion either
accept or reject such a Plan by written notice sent to Contractor within ten
(10) Business Days. In case of rejection, Purchaser may terminate the
Contract by written notice of termination as set forth in Article 20(B).

(B)   If Purchaser gives Contractor a Default Notice and Contractor
fails to respond to within the time period (if any) specified above in
Article 20(A), Purchaser may terminate this Contract upon notice
(the ”Termination Notice”) to Contractor and without further period
for cure.

In the event of a termination pursuant to this
Article 20(B), then, on demand from Purchaser, Contractor will refund
all payments made by Purchaser less any amounts due under Article 18.
Except as provided in Article 9(C), no refund shall be made with respect
to Deliverable Items for which Final Acceptance has occurred at the time of
termination. Contractor shall make this refund within thirty (30) Days of
receipt of Purchaser’s written notice of termination of this Contract. In the
event that Purchaser demands the refund as described above, then such refund
shall be Purchaser’s sole and exclusive remedy for such termination.

Contractor shall keep title and ownership to all
terminated WIP. Purchaser shall take all reasonable necessary action for the
protection and preservation of the Work in possession of Purchaser in which
Contractor has an interest under this Contract, and Purchaser shall deliver to
Contractor such work in its possession at Contractor’s expense.

(C)   If, after notice of termination under the provisions of this
Article, it is determined that Contractor was not in default under the
provisions of this Article or that the delay was excusable under the provisions
of Article 17, the rights and obligations of the Parties shall be the same
as if notice of termination had been issued pursuant to Article 21.

 17
 

ARTICLE 21

TERMINATION FOR
CONVENIENCE

(A)  Purchaser, by written notice to Contractor to be effective three
(3) months following the date of such notice, may terminate this Contract
in whole or in part for its convenience in accordance with the terms of this
Article 21. In such case, Contractor shall immediately stop Work as
directed in the termination notice and make its reasonable best efforts to
mitigate costs.

(B)   In case of termination for convenience, Contractor shall be
entitled to be paid the lesser of (i) all actual costs, direct and
indirect, incurred by Contractor (Value Added Tax payable by Contractor on such
costs as a result of such termination shall be documented to Purchaser, added
to such costs and paid by Purchaser) for all Work performed plus actual
termination costs incurred by Contractor and its Subcontractors and to receive,
in addition, an amount representing [*] profit, before taxes, on such costs
less amounts previously paid by Purchaser to Contractor pursuant to this
Contract or (ii) the maximum aggregate payments to be made as set forth in
Exhibit C for the two (2) quarters following the date of notice
as set forth in Article 21(A). A claim for such costs shall be submitted
by Contractor to Purchaser within sixty (60) Days from the date of notice
of termination. The Parties shall agree upon the final termination charges to
be paid to Contractor within thirty (30) Days after the date of submission
by Contractor of its claim.

(C)   Purchaser shall pay Contractor the termination charges within
thirty (30) Days following the date of receipt of an invoice from
Contractor. Final payment shall be the amount of the total termination charges
less amounts previously paid by Purchaser to Contractor pursuant to this
Contract. In the event the amount of these credits exceeds the amount of the
total termination charges, Contractor will refund the excess to Purchaser
within thirty (30) Days following the date of receipt of an invoice from Purchaser.

Subject to the prior approval of Purchaser and subject to
restrictions that may be imposed under applicable Governmental authorizations,
title to all WIP shall transfer to Purchaser after payment. The license granted
to Purchaser under Article 12 shall continue for the period of use of any
Deliverable Items not terminated.

If requested by Purchaser and to the extent reasonably
practicable, Contractor shall use commercially reasonable efforts to re-sell or
re-use on other programs all WIP (or parts thereof) for the benefit of
Purchaser. In such case, the fair market value of such WIP that Contractor
re-uses or re-sells, as negotiated in good faith by the Parties, less the
reasonable and demonstrable costs of storage and the reasonable costs incurred
by Contractor for reusing and/or reselling such items, shall be deducted from
the termination charges or added to the termination credit.

ARTICLE 22

STOP WORK

(A)  Stop Work by Purchaser

(i)    Purchaser may, at any time, by written
notice to Contractor (“the Stop Work Order”), direct Contractor to suspend
performance of the Work for a maximum cumulative duration of six
(6) months and with a maximum number of suspensions of two (2). Said Stop
Work Order shall specify the date of suspension and the estimated duration of
the suspension. Upon receiving any such Stop Work Order, Contractor shall
promptly suspend further performance of the Work to the extent specified, and
during the period of such suspension shall properly care for and protect all
WIP and materials, supplies, and equipment Contractor has on hand for
performance of the Work.

(ii)   Purchaser may, at any time during the stop
Work, either (a) direct Contractor to resume performance of the Work by
written notice to Contractor, and Contractor shall resume diligent performance
of the Work, provided that (x) the Delivery Schedule is adjusted to
reflect the stop Work and the time required by Contractor to recommence
performance, (y) other affected provisions of the

 18
 

Contract shall be adjusted, and
(z) Contractor is compensated for its costs as defined in
Article 22(A)(iii) below; or (b) terminate the Contract pursuant to
Article 21, in which case the costs incurred by Contractor and its
Subcontractors as a result of the stop Work as defined in Article 22(A)(iii)
shall be added to the termination charges to be paid pursuant to
Article 21.

(iii)  Contractor shall be compensated for any
additional, direct, out-of-pocket costs reasonably incurred by Contractor or
the Subcontractors as a result of such suspension and resumption of Work.
Contractor shall invoice Purchaser for such costs, and Purchaser shall pay such
invoice within thirty (30) Days from the date of invoice. Invoices will
not be issued more frequently than one (1) per month during a
stop Work.

(B)   Stop Work by Contractor

(i)    In the event Purchaser fails to make any
payment in due time as required pursuant to this Contract, Contractor shall
notify Purchaser in writing of such failure. If such failure is not cured by
Purchaser within thirty (30) Days after the date of such notification made
by Contractor, Contractor shall be entitled to immediately stop the Work under
this Contract.

If
Purchaser fails to make any payment within thirty (30) Days from the date
Contractor has stopped the Work as defined above, Contractor shall be entitled
to immediately terminate the Contract by written notice sent to Purchaser and
the provisions of Article 22(B)(iii) shall apply.

If
Purchaser makes any payment on or before thirty (30) Days from the date
Contractor has stopped the Work as defined above, Contractor shall resume any
Work suspended as reasonably and promptly as possible provided that
(a) Purchaser has paid to Contractor all costs and expenses incurred as a
result of the stop Work hereunder and (b) the schedule of the Contract
shall be adjusted (provided such schedule adjustment shall not be less than one
Day for each Day of Work stoppage).

(ii)   In the event Purchaser fails to perform any
material obligations (other than those expressed in Article 22(B)(i)),
Contractor shall notify Purchaser in writing of such failure. If such failure
is not cured by Purchaser within thirty (30) Days after the date of such
notification made by Contractor, Contractor shall be entitled to immediately
stop the Work under this Contract.

If
Purchaser fails to cure the material breach within thirty (30) Days from
the date Contractor has stopped the Work as defined above, Contractor shall be
entitled to immediately terminate the Contract by written notice sent to
Purchaser and the provisions of Article 22(B)(iii) shall apply.

If
Purchaser cures the material breach on or before thirty (30) Days from the
date Contractor has stopped the Work as defined above, Contractor shall resume
any Work suspended as reasonably and promptly as possible provided that (a) Purchaser
has paid to Contractor all costs and expenses incurred as a result of the stop
Work hereunder and (b) the schedule of the Contract shall be adjusted
(provided such schedule adjustment shall not be less than one Day for each Day
of Work stoppage).

(iii)  In the event of termination of the Contract by
Contractor pursuant to this Article 22(B), Purchaser shall be liable to
Contractor for the charges payable pursuant to Article 21(B) which shall
include all costs and expenses incurred as a result of the stop Work hereunder,
but in no event to exceed the maximum aggregate payments to be made as set
forth in Exhibit C for two (2) quarters following the date of
termination notice.

(iv)  In the event of a bankruptcy filing by or
against Purchaser, and the occurrence of a post-bankruptcy default by Purchaser
including, but not limited to, a default under Article 34(F), Purchaser
consents to a modification of the stays of proceedings to permit the Contractor
to exercise such rights and remedies as may be available to it under the
Contract or applicable law, including, but not limited to, the right to suspend
performance, terminate the Contract and exercise rights under other agreements
with the Purchaser.

 19
 

Further, Purchaser consents that any preliminary hearing
on a request under U.S. Bankruptcy Code section 362(d) (or under
any successor statute or rule) by Contractor for a modification of the stays of
proceedings (a ”Modification of the Stays Motion”) shall be combined with
a final hearing so that such hearing may be concluded not less than thirty
(30) days after the filing of the Contractors’ Modification of the
Stays Motion.

Purchaser acknowledges that the provisions of this
Article 22(B)(iv) are critical elements of the transaction to Contractor.
The Parties have consulted legal counsel experienced in such issues, and agree
that a provision of this type is beneficial in these circumstances.

ARTICLE 23

ARBITRATION

(A)  Any dispute or disagreement arising between the Parties in
connection with any interpretation of any provision of the Contract, or the
compliance or non-compliance therewith, or the validity or enforceability
thereof, or any other dispute under any Article hereof which is not settled to
the mutual satisfaction of the Parties within thirty (30) Days
(or such longer period as may be mutually agreed) from the date that
either Party informs the other in writing that such dispute or disagreement
exists, shall be settled by arbitration administered by the American
Arbitration Association under its Commercial Arbitration Rules and the
Supplementary Procedures for Large, Complex Disputes in effect on the date that
such notice is given, except as otherwise specified herein.

(B)   The Party which demands arbitration of the controversy shall in
writing specify the matter to be submitted to arbitration, and at the same
time, choose and nominate an arbitrator; thereupon, within fifteen
(15) Days after receipt of such written notice, the other Party shall in
writing choose and nominate a second arbitrator.

The two arbitrators so chosen shall forthwith select a
third arbitrator, giving written notice to both Parties of the choice so made
and fixing a time and place in New York City, at which both Parties may
appear and be heard with respect to such controversy. In case the two
arbitrators shall fail to agree upon a third arbitrator within a period of
seven (7) Days, or if for any other reason there shall be a lapse in the
naming of an arbitrator or arbitrators, or in the filling of a vacancy, or in
the failure or refusal of any arbitrator or arbitrators to attend or fulfill
his or their duties, then upon application by either Party to the controversy,
arbitrators shall be named by the American Arbitration Association in
accordance with its Arbitration Rules.

The arbitrators shall control discovery as they shall
determine is appropriate in the circumstances, taking into account the needs of
the Parties and the desirability of having the discovery take place in an
expeditious and cost-effective manner. Any discovery shall be limited to
information directly relevant to the controversy or claim in arbitration and
shall be concluded within ninety (90) Days after the arbitrators are
appointed, unless good cause for an extension of such deadline is shown.

(C)   The arbitrators shall not alter or modify the terms and conditions
of this Contract but shall consider the pertinent facts and circumstances and
be guided by the terms and conditions of this Contract. If a solution is not
found in the terms and conditions of this Contract, the arbitrators shall be
guided by the substantive laws of the State of New York, excluding all
conflict of law rules. The arbitration award made shall be final and binding
upon the Parties, their successors and assignees, and judgment may be entered
thereon, upon the application of either Party, by any court having
jurisdiction. Each Party shall bear the cost of preparing and presenting its
case including its own attorneys’ fees; and the cost of arbitration, including
the fees and expenses of the arbitrator or arbitrators, will be shared equally
by the Parties.

(D)  The relief that may be awarded by the arbitrators under any
arbitration arising from this Contract may not exceed actual compensatory
damages. In no event may the arbitrators award punitive damages or otherwise
disregard the limitations of liability set forth in this Contract.

 20
 

ARTICLE 24

WARRANTY

(A)  Contractor warrants that the Deliverable Items shall be free from
material defects in materials and workmanship and will conform to the
requirements in Exhibit B1 to B3. This warranty shall start upon the date of
Final Acceptance of the Control Network Facility and shall run for a period of
one (1) year. The scope of this warranty is as set forth herein.

(B)   Without waiver of its right to terminate this Contract for
default, Purchaser shall have the right, at any time during the period of this
warranty and irrespective of prior inspections or acceptance, to require that
any Deliverable Item not conforming to the material requirements of the Contract
by written notice sent to Contractor (detailing to which extent the Contract
requirements are not met) be corrected or replaced, at Contractor’s expense and
option. Repair of defective parts shall take place at the Contractor’s
facilities, or at any local supplier’s facility specified by
the Contractor.

The ownership to parts replaced shall pass to the
Purchaser upon delivery of the replacements to the Delivery Place.
Transportation and insurance costs for defective parts returned to the
Contractor shall be at Purchaser’s charge and transportation and insurance
costs for parts replaced or repaired by the Contractor shall be at the
Contractor’s charge.

In the event that an on-site intervention is needed
(e.g. fault cannot be located remotely by the Contractor, or failure of a
non replaceable unit), the Contractor shall send a maintenance expert on site
at no additional cost for the Purchaser.

Labor costs, travel, board and lodging of installation
personnel relating to the reinstallation of repaired or replaced part under the
above warranty shall be borne by Purchaser. The Contractor reserves the right
to supply, at a price to be agreed upon, replacement parts which will give
equivalent performance without being identical to the parts replaced.

(C)   The Contractor undertakes to correct any reproducible error or
omission on a software reported by Purchaser during the warranty period.
Contractor will undertake for the warranty period to correct or bypass,
pursuant to its own standards, all reproducible malfunctions or anomalies in a
software within a reasonable period of time depending on the severity of the
problem. This warranty is strictly limited to a software (or features)
delivered under this Contract and does not extend any existing warranty on
software (or features) currently installed in the Purchaser’s facilities.
The Purchaser should notify Contractor of the defects in writing within fifteen
(15) Days after the defects are discovered. The Purchaser shall also
provide an accurate description of the conditions under which the software
defect occurred, including without limitation the conditions prevailing during
the most recent operation of the software.

The above warranties do not extend to any modification on
software which is undertaken by the Purchaser or a third party and which is not
authorised by Contractor, any malfunction which appears because of
modifications of the interface conditions or use of a software which is not
contemplated in the Contract.

For any software supplied under license from third parties,
the rights and guarantees given are those which Contractor is authorised to
provide to its customers.

(D)  The remedy under this Article 24 shall not apply if repair or
parts replacement is required because of accident, unusual physical or
electrical stress, negligence, misuse, failure of environmental control
prescribed in operations and maintenance manuals, repair or alterations by
Purchaser, its officers, directors, employees, consultants, representatives or
agents, or causes other than ordinary use. Furthermore, the warranty is
contingent upon Contractor being given access to delivered Deliverable Items in
order to effect any correction or replacement.

(E)   EXCEPT AS IS OTHERWISE EXPRESSLY PROVIDED IN THIS CONTRACT, NO
OTHER WARRANTIES, WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING BUT NOT

 21
 

LIMITED TO THOSE OF MERCHANTABILITY AND FITNESS FOR ANY
PARTICULAR PURPOSE, SHALL APPLY TO THE GOODS AND SERVICES HEREUNDER AND THE
REMEDIES PROVIDED HEREIN ARE THE SOLE REMEDIES FOR FAILURE BY CONTRACTOR TO FURNISH
WORK THAT IS FREE FROM DEFECTS IN MATERIAL OR WORKMANSHIP AND CONFORMANCE WITH
REQUIREMENTS AS SET FORTH IN THIS ARTICLE 24. IN NO EVENT SHALL CONTRACTOR
BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.
ALL OTHER WARRANTIES OR CONDITIONS IMPLIED BY ANY OTHER STATUTORY ENACTMENT OR
RULE OF LAW WHATSOEVER ARE EXPRESSLY EXCLUDED AND DISCLAIMED.

ARTICLE 25

COMMUNICATION AND
AUTHORITY

(A)  Bill Gregg is assigned as Purchaser’s Program Manager with
authority to issue technical direction within the scope of this Contract. [*]
is assigned as Contractor’s Program Manager with respect to the SOCC and TCU
Subsystems and [*] is assigned as Contractor’s Program Manager with respect to
the IOTE Subsystem, with authority to accept such direction. Notwithstanding
Article 25(A), the foregoing Program Managers are authorized (i) to
initial the Exhibits and any modifications thereto (except Exhibit C), and
(ii) to execute the waivers of technical compliance with the specifications
in the Exhibits.

(B)   All contractual correspondence to Purchaser will be addressed to
(with copy to the Program Manager):

[*]

Globalstar, Inc.

461 South
Milpitas Blvd.

Milpitas,
California 95035, U.S.A.

Tel:
[*]

Email: [*]

All technical correspondence to Purchaser will be
addressed to:

[*]

Globalstar, Inc.

461 South
Milpitas Blvd.

Milpitas,
California 95035, U.S.A.

Tel:
[*]

Email: [*]

All contractual correspondence to Contractor will be
addressed to (with copy to the Program Manager):

[*]

Alcatel
Alenia Space France

26,
avenue Jean François Champollion

31037 Toulouse
Cedex  France

Tel:
[*]

Email: [*]

All technical correspondence to Contractor with respect
to SOCC and TCU Subsystems will be addressed to:

[*]

Alcatel
Alenia Space France

100 Boulevard
du midi—B.P 99

06156 Cannes
la Bocca Cedex  France

Tel:
[*]

Email: [*]

 22
 

All technical correspondence to Contractor with respect
to IOTE Subsystem will be addressed to:

[*]

Alcatel
Alenia Space France

26,
avenue Jean François Champollion

31037 Toulouse
Cedex  France

Tel:
[*]

Email: [*]

(C)   In a time critical situation, such as operational or technical
matters requiring immediate attention, notice may be given by telephone. Any
notice given verbally will be confirmed in writing as soon as practicable
thereafter in accordance with Article 25(D).

(D)  Except as provided in Article 25(C), all notices, demands,
reports, orders and requests hereunder by one Party to the other shall be in
writing and deemed to be duly given on the same Business Day if sent by
electronic means (i.e., electronic
mail) or delivered by hand during the receiving Party’s regular business hours,
or on the date of actual receipt if sent by pre-paid overnight, registered or
certified mail.

(E)   The Parties agree to cooperate in implementing the use of
electronic signatures, provided that such use is consistent with
applicable law.

 23
 

ARTICLE 26

RESERVED

ARTICLE 27

LICENSES FOR EXPORT

(A)  This Contract is subject to all applicable United States laws
and regulations relating to the export of Licensed Items and to all applicable
laws and regulations of the country or countries to which such Licensed Items
are exported or are sought to be exported. Contractor and Purchaser shall fully
comply with all requirements of any Technical Assistance Agreement related to
the substance of this Contract, whether included as an Appendix hereto
or not.

(B)   Without limiting the scope of Article 27(A), Contractor shall
use its reasonable best efforts to obtain all approvals and licenses required
by the laws and regulations of the country or countries to which the Licensed
Items are exported or are sought to be exported. Purchaser shall use its
reasonable best efforts to obtain all US government approvals and licenses to
export Licensed Items.

(C)   If a government refuses to grant a required approval or license to
export the Licensed Items, or revokes or suspends an approval or license
subsequent to its grant, or grants a license or approval subject to conditions,
then (i) this Contract shall, nevertheless, remain in full force and effect
unless terminated for convenience pursuant to Article 21, and
(ii) the Delivery Schedule shall be adjusted on a day-for-day basis for
each day that Contractor is impacted by such action or inaction of the
United States government. Such government action or inaction shall not
modify in any way the rights and obligations of the Parties under this Contract
except to relieve Contractor of any obligations which cannot be performed
without such an approval or license.

(D)  The Parties confirm that their performance of, and obligations
under, this Contract is in all matters subject to the provisions of this
Article 27, notwithstanding that (i) other Articles (including
without limitation those paragraphs in Articles 8 and 9) and Exhibits
may not specifically reference Article 27, and (ii) other Articles
and Exhibits may state that they are subject to compliance with other Articles
of this Contract.

(E)   Contractor and Purchaser shall cooperate in amending as necessary
the existing Technical Assistance Agreement set forth in Appendix 2, which
will allow Purchaser to be directly involved in matters related to some or all
Licensed Items.

 24
 

ARTICLE 28

RESERVED

ARTICLE 29

OPTIONS

(A)  Annual Maintenance Support:Purchaser shall have the option to order
Annual Maintenance Support from Contractor, starting after the one year
warranty expires, renewable on an annual basis for up to 15 years. The
price for such support will be negotiated in good faith between the Parties
upon request from Purchaser.

(B)   Support Services: In addition to support services included in this
Contract as set forth in Section 5 of Exhibit A, Purchaser shall have
the option to order additional support services on a time and material basis.
The price for such support will be negotiated in good faith between the Parties
upon request from Purchaser.

ARTICLE 30

KEY PERSONNEL

(A)  At EDC, Contractor shall identify the Key Personnel for the
following positions to perform the services and staff the Work, working
dedicated until successful completion of the Work performed hereunder
(individually a “Key Person” and collectively the “Key Personnel”).

No person can serve the role of more than one Key Person.

	
  Position

  	
   

  	
  Name

  	
   

  
	
  Program Manager
  SOCC and TCU

  	
   

  	
  [*]

  	
   

  
	
  Program Manager IOTE

  	
   

  	
  [*]

  	
   

  

 

(B)   Key Personnel shall not be removed from performance of the Work
under this Contract unless replaced with personnel of substantially equal
qualifications and ability. Purchaser shall have the right to review the
qualifications of any proposed replacements. If Purchaser deems, in its reasonable
judgment, the proposed replacements to be unsuitable, Purchaser may require
Contractor to offer alternative candidates. Notwithstanding its role in
reviewing Key Personnel and their replacements, Purchaser shall have no
supervisory control over their performance, and nothing in this Article shall
relieve Contractor of any of its obligations under this Contract, or of its
responsibility for any acts or omissions of its personnel.

ARTICLE 31

INDEMNIFICATION AND
INSURANCE

(A)  Contractor shall indemnify and hold harmless Purchaser, and its
subsidiaries and affiliates, and its subcontractors (if any), their
respective officers, employees, agents, servants and assignees, or any of them
(collectively “Purchaser Indemnitees”), from any direct or indirect loss,
damage, liability and expense (including reasonable attorneys fees), on account
of loss or damage to property and injuries, including death, to all persons,
including but not limited to employees or agents of Contractor, the
Subcontractors and the Purchaser Indemnitees, and to all other persons, arising
from any occurrence caused by any negligent act or omission or willful
misconduct of Contractor, the Subcontractors or any of them.

At Contractor’s expense, Contractor shall defend any
suits or other proceedings brought against the Purchaser Indemnitees on account
thereof, and shall pay all expenses and satisfy all judgments which may be
incurred by or rendered against them, or any of them, in connection therewith.

Contractor shall have the right to settle any claim or
litigation against which it indemnifies hereunder. Further, the Purchaser
Indemnitees shall provide to Contractor such reasonable cooperation and
assistance as Contractor may request to perform its obligations hereunder.

(B)   Purchaser shall indemnify and hold harmless Contractor, and its
subsidiaries and affiliates, its Subcontractors, their respective officers,
employees, agents, servants and assignees, or any of them

 25
 

(collectively “Contractor Indemnitees”), from any direct
or indirect loss, damage (including damage to property and injuries, including
death), liability and expense (including reasonable attorneys fees) incurred by
any third party (including employees or agents of Purchaser and Contractor
Indemnitees) and arising from any occurrence caused by any negligent act or
omission or willful misconduct of Purchaser, its officers, employees, agents,
consultants, servants and assignees.

In addition, Purchaser shall waive any claim against and
shall indemnify and hold harmless Contractor Indemnitees from any direct or
indirect loss, damage (including damage to property and injuries, including
death), liability and expense incurred by any third party and arising from use,
operation or performance of the Deliverable Items after Final Acceptance,
including as a result of modification or improvements made by Purchaser.

Purchaser shall, at Purchaser’s expense, defend any suits
brought against the Contractor Indemnitees referred to above and shall pay all
expenses and satisfy all judgments which may be incurred by or rendered against
them, or any of them, in connection therewith. Purchaser shall have the right
to settle any claim or litigation against which it indemnifies hereunder.
Further, the Contractor Indemnitees shall provide to Purchaser such reasonable
cooperation and assistance as Purchaser may request to perform its obligations
hereunder.

(C)   Contractor shall, at its own expense, provide and maintain
insurance which shall cover all WIP (including all Purchaser’s property while
in Contractor’s custody) against physical loss or damage on an “all risks”
property insurance basis, including coverage for the perils of flood or
earthquake while in or about Contractor’s and its Subcontractors’ premises,
while at other premises which may be used or operated by Contractor for
construction purposes.

The amount of insurance shall be sufficient to cover the
full replacement value of all Work. Upon request by Purchaser, Contractor will
provide certificate of insurance to Purchaser. Additionally, Contractor will
add Purchaser as an additional insured under the All Risks insurance as far as
Purchaser’s interests may appear.

The insurance may be issued with deductibles, which are
consistent with Contractor’s current insurance policies. The amount of any loss
up to the value of the deductible level, or not otherwise covered by the
insurance, shall be borne by Contractor.

In addition, Contractor shall, at its own expense,
provide and maintain a Commercial General Liability Insurance Policy (“CGL Policy”)
which shall cover property damage and injuries, including death, caused to
third parties. Upon written request by Purchaser, Contractor will provide a
certificate of insurance to Purchaser. Contractor shall use its reasonable best
efforts to add Purchaser as additional insured under such CGL Policy.

ARTICLE 32

EFFECTIVE DATE OF
CONTRACT

(A)  The effective date of this contract (the ”EDC”) shall be
April 1st, 2007 provided that all the following conditions
are fulfilled:

(i)    signature of the Contract by both Parties; and

(ii)   the first payment referred to in
Exhibit C has been credited to the Contractor’s bank account.

(B)   If by April 15th, 2007, the conditions under Article 32(A)
are not fulfilled, Contractor or Purchaser shall have the following options:

(i)    to notify the other Party that this Contract
shall not become effective. In such a case, the notified Party shall not be
entitled to claim any damages whatsoever from the notifying Party; or

 26
 

(ii)   be entitled to enter into negotiation with
the other Party if agreed by such Party to adjust the Total Price and the
schedule of Work. The Contract shall be amended to reflect these adjustments.

ARTICLE 33

REPRESENTATIONS

(A)  Contractor represents, covenants and warrants that:

(i)    Contractor’s execution of and performance
under this Contract will not result in a breach of, or constitute a default
under, any contract, instrument or other agreement to which Contractor is a
party or is bound; and

(ii)   Contractor has full power, authority and
legal right to execute, deliver and perform this Contract, that the execution,
delivery and performance by Contractor of this Contract have been duly
authorized by all necessary action on the part of Contractor and do not require
any further approval or consent of any person or entity (whether governmental
or otherwise), and that once executed by Contractor this Contract shall
constitute a legal, valid and binding obligation of Contractor enforceable
against Contractor in accordance with its terms.

(B)   Purchaser represents, covenants and warrants that:

(i)    Purchaser has full power, authority and
legal right to execute, deliver and perform this Contract, that the execution,
delivery and performance by Purchaser of this Contract have been duly
authorized by all necessary action on the part of Purchaser and do not require
any further approval or consent of any person or entity (whether governmental
or otherwise), and that once executed by Purchaser this Contract shall
constitute a legal, valid and binding obligation of Purchaser enforceable against
Purchaser in accordance with its terms.

(ii)   Purchaser’s execution of and performance
under this Contract does not result in a breach of, or constitute a default
under, any contract, instrument or other agreement to which Purchaser is a
party or is bound.

ARTICLE 34

GENERAL PROVISIONS

(A)  Each Party hereby agrees that it will not, without the prior
written approval of the other Party (such approval not to be unreasonably
withheld or unduly delayed), assign or delegate any of their rights, duties,
and obligations under this Contract, except to a wholly-owned subsidiary
of such Party (which assignment or delegation shall not relieve the assignor or
delegator of liability). In case of assignment by Purchaser, Purchaser shall
demonstrate to Contractor’s satisfaction that its successor or assignee
possesses the financial resources to fulfill Purchaser’s obligations under this
Contract. Upon such assignment, the assignee shall assume all rights and
obligations of the assignor existing under this Contract at the time of such
assignment. This Article 34(A) shall not preclude the granting of a
security interest by a Party to a lender.

(B)   Nothing contained in this Contract shall be deemed or construed by
the Parties or by any third party to create any rights, obligations or
interests in third parties, or to create the relationship of principal and
agent, partnership or joint venture or any other fiduciary relationship or
association between the Parties and the rights and obligations of the Parties
shall be limited to those expressly set forth herein.

(C)   No failure on the part of either Party to notify the other Party
of any noncompliance hereunder, and no failure on the part of either Party to
exercise its rights hereunder, shall prejudice any remedy for any subsequent
noncompliance with any term or condition of this Contract and shall be limited
to the particular instance and shall not operate or be deemed to waive any
future breaches or noncompliance

 27
 

with any term or condition. Except as otherwise expressly
provided herein, all remedies and rights hereunder shall be exclusive and in
lieu of all other rights and remedies available by law or in equity.

(D)  The Parties shall comply with the United States Foreign
Corrupt Practices Act, the OECD Antibribery Convention and all other laws of
any country dealing with improper or illegal payments, gifts or gratuities.
Contractor agrees not to pay, promise to pay or authorize the payment of any
money or anything of value, directly or indirectly to any person for the
purpose of illegally or improperly inducing a decision or obtaining or
retaining business in connection with this Contract.

(E)   This Contract (including all Exhibits and Appendices) constitutes
the entire agreement between the Parties and supersedes all prior understandings,
commitments and representations between the Parties with respect to the subject
matter hereof.

This Contract may not be amended or modified and none of
its provisions may be waived, except by a writing signed by an authorized
representative of the Party against which the amendment, modification or waiver
is sought to be enforced.

In the event any one or more of the provisions of this
Contract shall for any reason be held to be invalid or unenforceable, the
remaining provisions of this Contract shall be unimpaired, and the invalid or
unenforceable provision shall be replaced by a provision which, being valid and
enforceable, comes closest to the intention of the Parties underlying the
invalid or unenforceable provisions. The Parties shall negotiate in good faith
to attempt to agree upon any such replacement provision.

The paragraph headings herein shall not be considered in
interpreting the text of this Contract.

All oral and written communications between the Parties
shall be conducted in English.

This Contract shall be governed by and interpreted in
accordance with the laws of the State of New York, U.S.A., excluding its
conflict of laws rules. The U.N. Convention on Contracts for the International
Sales of Goods is not applicable to this Contract.

(F)   In view of a number of factors, including the substantial payments
to Subcontractors that Contractor will be making in connection with its
performance under this Contract, the Parties acknowledge and agree that if
Purchaser should become a debtor in a case under the United States
Bankruptcy Code, Contractor would be severely and irreparably damaged unless
Purchaser continues uninterrupted and timely performance of its obligations
under the Contract and promptly assumes or rejects this Contract. In continuing
to perform this Contract following a bankruptcy filing by the Purchaser,
Contractor would incur significant expense (including commitments to
Subcontractors) that Contractor could avoid incurring through termination
clauses if the Contract ultimately is to be rejected in a bankruptcy
proceeding. Accordingly, if Purchaser should become a debtor in a case
(the ”Bankruptcy Case”) under the United States Bankruptcy Code,
Purchaser shall, within thirty (30) days after the commencement of the
Bankruptcy Case, (i) promptly advise Contractor of such,
(ii) file a motion (the ”Motion”) with the bankruptcy court
presiding over the Bankruptcy Case seeking an order approving Purchaser’s
assumption or rejection of this Contract within such thirty day period, and (iii) obtain
a final and non-appealable order (the ”Order”) approving the assumption or
rejection of this Contract. Purchaser agrees that it shall not, without the
prior written consent of Contractor, withdraw the Motion or adjourn any hearing
on the Motion. Purchaser further agrees that it will promptly take and
diligently pursue any and all actions necessary and/or appropriate, including
such actions as may be reasonably requested by Contractor, to obtain the Order
within the thirty (30) day period set forth above. In the event Purchaser
does not file the Motion and obtain the Order within thirty (30) days
after the commencement of the Bankruptcy Case, Contractor shall, in addition to
any other rights and/or remedies it has or may have, be entitled to stop the
Work under this Contract. Following such Work stoppage, if Purchaser still has
not filed the Motion and obtained the Order within thirty (30) days after
Contractor has stopped the Work then, Contractor shall be entitled to terminate
the Contract by written notice sent to Purchaser and the provisions of
Article 22(B)(iii) shall apply.

 28
 

Purchaser acknowledges that the provisions of this
Article 34(F) are critical elements of the transaction to Contractor. The
Parties have consulted legal counsel experienced in such issues, and agree that
a provision of this type is beneficial in these circumstances.

Execution

In witness whereof, the Parties have duly executed this Contract.

	
  GLOBALSTAR, INC.

  	
  ALCATEL ALENIA SPACE FRANCE

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James Monroe III

  	
   

  	
  By:

  	
  /s/ Dimitri Savescu

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  James Monroe III

  	
  Name:

  	
  Dimitri Savescu

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
  Title:

  	
  Senior Vice President

  Industrial Unit Ground

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  March 22, 2007

  	
  Date:

  	
  March 22, 2007

  
						

 

 29

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