Document:

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                                                                    Exhibit 10.1

                              INVESTMENT AGREEMENT

                                  BY AND AMONG

                                GLOBALSTAR, L.P.,
                         GLOBALSTAR CAPITAL CORPORATION,
                       GLOBALSTAR SERVICES COMPANY, INC.,
                               GLOBALSTAR, L.L.C.

                                       AND

                  ICO GLOBAL COMMUNICATIONS (HOLDINGS) LIMITED

                                   DATED AS OF

                                  MAY 19, 2003
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                                 TABLE OF CONTENTS

<TABLE>
<S>                                                                               <C>
I. CONTRIBUTION OF ASSETS AND PURCHASE OF SHARES............................       1
      1.1   Contribution of Assets by Debtors...............................       1
      1.2   Excluded Assets.................................................       2
      1.3   Assumption of Liabilities.......................................       2
      1.4   Rejection and Assumption of Contracts...........................       2
      1.5   Transfer Taxes..................................................       2
      1.6   Purchase of Class B Shares......................................       2
      1.7   Closing.........................................................       2
      1.8   Closing Deliveries..............................................       3
      1.9   Exemption from Registration.....................................       3
      1.10  Further Documents or Necessary Action...........................       3

II. REPRESENTATIONS AND WARRANTIES OF THE DEBTORS...........................       3
      2.1   Existence; Authorization, Validity and Effect of Agreement......       3
      2.2   Capitalization of New Globalstar................................       4
      2.3   Ownership of Subsidiaries.......................................       4
      2.4   No Conflict; Required Filings and Consents......................       5
      2.5   SEC Documents...................................................       6
      2.6   No Changes......................................................       6
      2.7   Title to Assets.................................................       6
      2.8   Globalstar FCC Licenses.........................................       6
      2.9   Intellectual Property...........................................       6
      2.10  No Brokers......................................................       7
      2.11  Non-Debtor Entity Liabilities and Obligations...................       7
      2.12  Scope of Partnership Representations............................       7

III. REPRESENTATIONS AND WARRANTIES OF INVESTOR.............................       7
      3.1   Existence; Authorization, Validity and Effect of Agreement......       7
      3.2   Capitalization of New Globalstar................................       8
      3.3   No Conflict; Required Filings and Consents......................       8
      3.4   No Brokers......................................................       8
      3.5   Sufficient Funds................................................       8
      3.6   Investment Intent...............................................       8
      3.7   Investor Sophistication; Etc....................................       9
      3.8   Ownership of Securities.........................................       9
      3.9   Access to Information...........................................       9
      3.10  Forecasts and Projections.......................................       9
      3.11  Scope of Investor Representations...............................       9

IV. COVENANTS...............................................................       9
      4.1   Deposit of Funds................................................       9
      4.2   Inspection of Records...........................................      10
      4.3   Confidentiality.................................................      10
      4.4   Publicity.......................................................      10
      4.5   Further Action..................................................      10
      4.6   Filings with Governmental Entities..............................      10
      4.7   Notification....................................................      11
      4.8   Conduct of Business.............................................      11
      4.9   Exchange Act Registration; Securities Exchange Listing..........      13
      4.10  Right to Participate in Offering of Equity Securities...........      13
</TABLE>
<PAGE>
                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                PAGE

<S>                                                                             <C>
      4.11  Formation of New Globalstar.....................................      14
      4.12  Employees.......................................................      14
      4.13  Funding of Expenses.............................................      14
      4.14  Chapter 11 Cases Assistance.....................................      15
      4.15  Right to Participate in First Public Offering...................      15

V. CONDITIONS TO CLOSING....................................................      15
      5.1   Conditions to Each Party's Obligations..........................      15
      5.2   Conditions to Obligations of Debtors............................      16
      5.3   Conditions to Obligations of Investor...........................      16

VI. NO SURVIVAL.............................................................      17

VII. TERMINATION............................................................      18
      7.1   Termination by Mutual Consent...................................      18
      7.2   Termination by Investor.........................................      18
      7.3   Termination by the Debtors......................................      18
      7.4   Effect of Termination...........................................      19

VIII. GENERAL PROVISIONS....................................................      19
      8.1   Notices.........................................................      19
      8.2   Assignment; Binding Effect......................................      20
      8.3   Entire Agreement................................................      21
      8.4   Amendment.......................................................      21
      8.5   Governing Law...................................................      21
      8.6   Counterparts....................................................      21
      8.7   Headings........................................................      21
      8.8   Certain Definitions/Interpretations.............................      21
      8.9   Waivers.........................................................      27
      8.10  Jurisdiction; Consent to Service of Process.....................      27
      8.11  Severability....................................................      28
      8.12  WAIVER OF JURY TRIAL............................................      28
      8.13  No Strict Construction..........................................      28
</TABLE>

Exhibits

Exhibit 1.2.    Excluded Assets
Exhibit 1.3.    Assumed Liabilities
Exhibit 4.13    Approved Post-Closing Budget
Exhibit A       New Globalstar Certificate of Incorporation
Exhibit B       New Globalstar Bylaws

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<PAGE>
                              INVESTMENT AGREEMENT

      This INVESTMENT AGREEMENT (this "Agreement") is dated as of May 19, 2003,
by and among Globalstar, L.P., a Delaware limited partnership (the
"Partnership"), Globalstar Capital Corporation, a Delaware corporation
("Globalstar Capital"), Globalstar Services Company, Inc., a Delaware
corporation ("Globalstar Services"), and Globalstar, L.L.C., a Delaware limited
liability company ("Globalstar LLC") and ICO Global Communications (Holdings)
Limited, a Delaware corporation ("Investor"). Capitalized terms used but not
defined elsewhere in the text of this Agreement are defined in Section 8.8
hereof.

      WHEREAS, the Partnership, Globalstar Capital, Globalstar Services and
Globalstar LLC (collectively, the "Debtors") have filed voluntary petitions for
relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy
Code") in the United States Bankruptcy Court for the District of Delaware (the
"Bankruptcy Court") and the Debtors' chapter 11 cases (collectively, the
"Chapter 11 Cases") are being jointly administered in case no. 02-10499 (PJW)
for procedural purposes;

      WHEREAS, the Debtors have entered into a Credit Agreement, dated as of the
date of this Agreement (the "DIP Facility"), with a wholly owned, special
purpose Subsidiary of Investor (the "Investor DIP Lender"), pursuant to which
Investor DIP Lender has agreed to lend up to $35,000,000 to the Debtors on the
terms and subject to the conditions contained therein including, the Bankruptcy
Court's approval of the transactions contemplated by this Agreement;

      WHEREAS, on the terms and subject to the approval of the Bankruptcy Court
pursuant to Sections 105, 363 and 165 of the Bankruptcy Code and the other
conditions contained herein, the Debtors will contribute to a newly formed
Delaware corporation ("New Globalstar") substantially all of their assets, free
and clear of any and all Liens (including without limitation any and all Claims)
other than Permitted Liens, in exchange for 4,600,000 shares of Class A Common
Stock, par value $0.01 per share, of New Globalstar, which shall represent 46%
of the then outstanding stock of New Globalstar and shall be entitled to one
vote per share ("Class A Shares"), and the assumption by New Globalstar of
certain obligations and liabilities including all obligations under the DIP
Facility; and

      WHEREAS, on the terms and subject to the approval of the Bankruptcy Court
pursuant to Section 363 of the Bankruptcy Code and the other conditions
contained herein, Investor will purchase, and New Globalstar will issue to
Investor, 5,400,000 shares of Class B Common Stock, par value $0.01 per share,
of New Globalstar, which shall represent 54% of the then outstanding stock of
New Globalstar and shall be entitled to 3.407 votes per share ("Class B
Shares");

      NOW, THEREFORE, in consideration of the foregoing premises and the
representations, warranties, covenants and agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties
hereto agree as follows:

      I. CONTRIBUTION OF ASSETS AND PURCHASE OF SHARES

            1.1 Contribution of Assets by Debtors. On the terms and subject to
the conditions set forth in this Agreement and the Approval Order, as of the
Closing, each Debtor shall contribute, assign, transfer, convey and deliver to
New Globalstar, and New Globalstar shall acquire and accept from each Debtor,
all of the properties, assets, claims, cash and cash equivalents and rights of
every nature, tangible and intangible, real and personal, whether accrued,
contingent or otherwise, of such Debtor, including without limitation the stock
of any non-Debtor Subsidiaries of any Debtor, other than the Excluded Assets
<PAGE>
(the properties, assets and rights contributed pursuant to this Section 1.1
being referred to herein as the "Assets") in exchange for the Class A Shares.

            1.2 Excluded Assets. Notwithstanding anything to the contrary
contained in Section 1.1, the Debtors shall retain and not transfer, and New
Globalstar shall not accept or acquire, those properties, assets or rights of
the Debtors listed or described in Exhibit 1.2 (the "Excluded Assets"). Investor
may supplement Exhibit 1.2 to add (a) the rights under, or interests in, any
prepetition executory contract or unexpired lease to which a Debtor is a party
by delivery of a written notice to the Debtors delivered at least 10 Business
Days prior to Closing and (b) other assets of the Debtor by delivery of a
written notice to the Debtors delivered no later than May 30, 2003.

            1.3 Assumption of Liabilities. Contemporaneously with Debtors'
contribution of the Assets to New Globalstar, as of the Closing Date, New
Globalstar shall assume, and thereafter shall discharge and perform when due,
only those liabilities and obligations of the Debtors specified on Exhibit 1.3
attached hereto (collectively, the "Assumed Liabilities"). Exhibit 1.3 shall
identify all of Debtors' post-petition contracts. New Globalstar is not
assuming, and shall not be deemed to have assumed, any liabilities or
obligations of the Debtors other than the Assumed Liabilities. Except for the
Assumed Liabilities and as otherwise provided in Section 4.13, New Globalstar
shall have no obligation for or with respect to any liability or obligation of
the Debtors of any nature whatsoever, whether accrued or fixed, absolute or
contingent, known or unknown, and whether incurred prior to, on, or after the
Closing Date.

            1.4 Rejection and Assumption of Contracts. The Debtors will reject
any executory contract or unexpired lease listed on Exhibit 1.2. The Debtors
will not reject any executory contract or unexpired lease that is not listed on
Exhibit 1.2 without the prior consent of Investor. Upon the request of Investor,
the Debtors will cooperate with and provide reasonable assistance to Investor
and New Globalstar in their efforts to negotiate acceptable terms and conditions
of adequate assurance of future payment, assumption and/or modification of any
of the contracts or leases not listed on Exhibit 1.2 with the parties to any
such contracts or leases.

            1.5 Transfer Taxes. In accordance with the Approval Order, neither
the Debtors nor New Globalstar shall have any obligations with respect to any
state or local transfer taxes arising from the transactions contemplated by this
Agreement.

            1.6 Purchase of Class B Shares. On the terms and subject to the
conditions set forth in this Agreement and the Approval Order, on the Closing
Date, New Globalstar shall issue and sell to Investor, and Investor shall
purchase from New Globalstar the Class B Shares in exchange for (a) a cash
payment by Investor to New Globalstar in an amount equal to the difference
between $55,000,000 and the aggregate amounts loaned to the Debtors pursuant to
the DIP Facility (the "Cash Purchase Price") and (b) the cancellation of all
amounts loaned and interest accrued thereon, and all other obligations, under
the DIP Facility (the "Loan Cancellation").

            1.7 Closing. The closing of the transactions contemplated by Section
1.1 and Section 1.6 (the "Closing") will take place at the offices of Jones Day,
222 E. 41st Street, New York, New York at 10:00 a.m. local time on the date on
which all of the conditions (other than the conditions to be satisfied
concurrently with the Closing) set forth in Article V have been satisfied or
waived (or such other date, time and place to which the parties to this
Agreement may agree in writing). The date on which the Closing occurs is
referred to herein as the "Closing Date."

                                      -2-
<PAGE>
            1.8 Closing Deliveries. At the Closing:

            (a) Each of the Debtors shall deliver the certificate of an
executive officer as required pursuant to Section 5.3(c) and the Transfer
Documents as required pursuant to Section 5.3(e);

            (b) Investor shall deliver to New Globalstar (i) the Cash Purchase
Price in immediately available funds, (ii) an agreement evidencing the Loan
Cancellation and (iii) the certificate of an executive officer as required
pursuant to Section 5.2(d); and

            (c) New Globalstar shall deliver (i) to the Debtors validly issued
certificates representing the Class A Shares, and (ii) to Investor validly
issued certificates representing the Class B Shares.

            1.9 Exemption from Registration. The Class A Shares and Class B
Shares will be issued under an exemption or exemptions from registration under
the Securities Act of 1933, as amended (the "Securities Act"). The
certificate(s) evidencing the Class A Shares and Class B Shares shall, upon
issuance, contain the following legend (in addition to any other legends
required to be placed thereon by applicable state blue sky or securities Laws):

            THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT UNDER ANY
            CIRCUMSTANCES BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
            THEY HAVE BEEN REGISTERED UNDER THAT ACT AND ANY APPLICABLE
            SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

Upon the distribution of the Class A Shares to holders of Claims against the
Debtors pursuant to a plan of reorganization of the Debtors and subject to
compliance with and in accordance with Section 1145 of the Bankruptcy Code, New
Globalstar shall, or shall cause the transfer agent for the Class A Common
Stock, par value $0.01 per share, of New Globalstar to, effect the transfer of
the Class A Shares from the Debtors to such holders in accordance with the
written instructions of the Debtors and the certificates evidencing Class A
Shares so transferred shall not contain any legend.

            1.10 Further Documents or Necessary Action. The Debtors, Investor
and New Globalstar, respectively, shall take all such action as may be necessary
or appropriate in order to effectuate the transactions contemplated hereby. On
or after the Closing Date, if any further action is necessary or desirable to
carry out the purposes of this Agreement and to vest New Globalstar with sole
title to the Assets, the Debtors, Investor and New Globalstar shall take all
such necessary or appropriate action. Except as otherwise provided in Section
4.13, each such party shall bear its own costs and expenses in connection with
any such further actions.

               II. REPRESENTATIONS AND WARRANTIES OF THE DEBTORS

      Each of the Debtors hereby represents and warrants to Investor, except as
set forth in the Partnership Disclosure Letter, as follows:

            2.1 Existence; Authorization, Validity and Effect of Agreement. The
Partnership is a limited partnership duly organized, validly existing and in
good standing under the laws of the State of Delaware. Each Subsidiary of the
Partnership that is a corporation is duly incorporated, validly existing and in
good standing under the laws of the jurisdiction of its incorporation; each
Subsidiary of the

                                      -3-
<PAGE>
Partnership that is a limited liability company is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
formation; and each Subsidiary of the Partnership that is a limited partnership
is duly organized and validly existing under the laws of the jurisdiction of its
formation. Each of the Partnership and its Subsidiaries (a) is duly qualified or
licensed as a foreign corporation, limited liability company or limited
partnership, as applicable, in each jurisdiction in which its ownership of
properties or the conduct of its business requires such qualification or
licensing, except for failures to be so qualified or licensed that, individually
or in the aggregate, would not have a Partnership Material Adverse Effect, (b)
has all requisite corporate, limited liability company or limited partnership,
as applicable, power and authority and the legal right to own, pledge, mortgage
and operate its properties, to lease the property it operates under lease and
conduct its business as now or currently proposed to be conducted, (c) is in
compliance with its certificate of incorporation, bylaws, certificate of
formation of limited liability company, limited liability company agreement,
certificate of limited partnership, partnership agreement or equivalent
organizational documents, as applicable, (d) is in compliance with all Laws
applicable to it or to which any of its properties are subject, except for such
noncompliance as, individually or in the aggregate, would not have a Partnership
Material Adverse Effect, and (e) has made all necessary filings with, and has
given all necessary notices to, the FCC to the extent required for ownership and
use with respect to Globalstar FCC Licenses, except for any failures to file or
give such notice that, individually or in the aggregate, would not have a
Partnership Material Adverse Effect. Subject to the entry of the Approval Order:
(x) each Debtor has the requisite limited partnership, limited liability company
or corporate power and authority to execute and deliver this Agreement and all
agreements, instruments and documents contemplated hereby to be executed and
delivered by it; (y) this Agreement and the consummation by the Debtors of the
transactions contemplated hereby have been duly authorized by all requisite
partnership, limited liability company or corporate action; and (z) this
Agreement has been duly and validly executed and delivered by each Debtor and
constitutes the valid and binding obligation of each Debtor, enforceable against
each Debtor in accordance with its terms, except that (i) such enforceability
may be subject to applicable bankruptcy, insolvency or other similar Laws now or
hereafter in effect affecting creditors' rights generally and (ii) the
availability of the remedy of specific performance or injunctive or other forms
of equitable relief may be subject to equitable defenses and would be subject to
the discretion of the court before which any proceeding therefor may be brought.

            2.2 Capitalization of New Globalstar. To the Knowledge of each
Debtor, as of the Closing Date and upon issuance of the Class A Shares and Class
B Shares pursuant to this Agreement, the Class A Shares and Class B Shares will
constitute all of the issued and outstanding shares of common stock of New
Globalstar, and, no preferred stock or options, warrants or other rights to
acquire, or any securities convertible into or exchangeable for, any equity
securities of New Globalstar will be outstanding.

            2.3 Ownership of Subsidiaries.

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

            (b) All outstanding capital stock or other equity interests of each
Subsidiary of the Partnership are owned directly or indirectly by the
Partnership, free and clear of all Liens. All outstanding shares of capital
stock owned by the Partnership of each Subsidiary of the Partnership that is a
corporation have been validly issued and are fully paid and nonassessable. All
limited liability company interests owned by the Partnership of each Subsidiary
of the Partnership that is a limited

                                      -4-
<PAGE>
liability company and all partnership interests owned by the Partnership of each
Subsidiary of the Partnership that is a limited partnership have been validly
issued and are fully paid (to the extent required as of the date of this
Agreement). No shares of capital stock or other equity interests of any
Subsidiary of the Partnership are subject to, nor have any been issued in
violation of, preemptive or similar rights.

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

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

            2.4 No Conflict; Required Filings and Consents.

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

            (b) The execution and delivery of this Agreement by the Debtors do
not, and the performance of this Agreement and the consummation of the
transactions contemplated hereby by the Debtors will not, require any consent,
approval, authorization or permit of, or filing with or notification to, any
domestic or foreign governmental or regulatory authority, including any
department, commission, board, bureau, agency or instrumentality of such
authority, or any court or tribunal (each a "Governmental Entity"), except (i)
for (A) the applicable requirements, if any, of the Securities Exchange Act of
1934, as amended, and the rules and regulations thereunder (the "Exchange Act"),
(B) the applicable notification requirements, if any, of the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and the rules and regulations
thereunder (the "HSR Act"), (C) the applicable notification or approval
requirements, if any, of the FCC, the United States Department of Defense (the
"DoD"), the Federal Bureau of Investigation (the "FBI"), the United States
Department of Justice (the "DoJ") and (D) the entry of the Approval Order and
(ii) where the failure to obtain any such consent, approval, authorization or
permit, or to make any such filing or notification, would not, individually or
in the aggregate, have a Partnership Material Adverse Effect.

                                      -5-
<PAGE>
            2.5 SEC Documents. The Partnership has timely filed, and on the
Closing Date will have timely filed, all forms, reports and documents required
to be filed by it with the Securities and Exchange Commission (the "SEC") since
January 1, 2002. All Partnership Reports, as of their respective dates, to the
Knowledge of the Partnership, (a) complied, or will comply, in all material
respects with the applicable requirements of the Exchange Act and (b) did not,
and will not, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
made therein, in the light of the circumstances under which they were made, not
misleading. The representation in the preceding sentence does not apply to (a)
any misstatement or omission in (i) any Partnership Report filed prior to the
date of this Agreement that was superseded by a subsequent Partnership Report
filed prior to the date of this Agreement or (ii) any Partnership Report filed
after the date of this Agreement that is superseded by a subsequent Partnership
Report filed prior to the Closing Date or (b) any financial forecasts or
projections included in the Partnership Reports. To the Knowledge of the
Partnership, the consolidated financial statements of the Partnership included
in the Partnership Reports were prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto) and
fairly present the consolidated financial position of the Partnership and its
Subsidiaries, as of the dates thereof (subject, in the case of any unaudited
statements, to the absence of footnotes and to normal year-end audit
adjustments). As of the time of the filing of any relevant Partnership Report,
to the Knowledge of the Partnership, the financial forecasts or projections
included in such Partnership Report (as qualified and limited in the Partnership
Report) were made by management of the Partnership in good faith and on a
reasonable basis, except for any failure to make the financial forecasts or
projections in good faith and on a reasonable basis that would not have a
Partnership Material Adverse Effect. No Subsidiary of the Partnership is
currently required to file any periodic reports with the SEC under the Exchange
Act.

            2.6 No Changes. Since the date of the last Partnership Report,
through the date of this Agreement, except as otherwise provided in this
Agreement or in connection with the transactions contemplated hereby, neither
the Partnership nor any of its Subsidiaries has taken any action described in
any of clauses (a) through (q) of the last sentence of Section 4.8.

            2.7 Title to Assets. At the Closing, the Debtors will convey to New
Globalstar title to the Assets. Immediately after the Closing, the Assets and
the assets of Non-Debtor Entities shall be free and clear of any Liens, other
than Permitted Liens.

            2.8 Globalstar FCC Licenses. The Partnership Disclosure Letter lists
all of the Globalstar FCC Licenses. As of the date hereof, (a) the party
designated on the Partnership Disclosure Letter as the holder of a Globalstar
FCC License is the authorized legal holder, free and clear of any Liens, of such
Globalstar FCC License, true and correct copies of which have been provided to
Investor and New Globalstar, and (b) the Globalstar FCC Licenses are valid and
in full force and effect. There is not pending, nor to the Knowledge of any
Debtor, threatened, against the holder of a Globalstar FCC License, or against
the Globalstar FCC Licenses, any application, action, petition, objection or
other pleading, or any proceeding with the FCC which questions or contests the
validity of, or seeks the revocation, non-renewal or suspension of, any of the
Globalstar FCC Licenses, which seeks the imposition of any modification or
amendment with respect thereto, or which adversely affects the ability of the
holder of such Globalstar FCC License to employ the Globalstar FCC Licenses in
its business or seeks the payment of a fine, sanction, penalty, damages or
contribution in connection with the use of any Globalstar FCC License.

            2.9 Intellectual Property. To the Knowledge of each Debtor, each of
the Debtors and their respective Subsidiaries owns or licenses or otherwise has
the right to use all Intellectual Property that is necessary for the operation
of their respective businesses and that the Debtors reasonably anticipate is
likely to be used in their respective businesses or otherwise held by the
Debtors and their respective

                                      -6-
<PAGE>
Subsidiaries, without infringement upon or conflict with the rights of any other
Person with respect thereto, including all trade names associated with any
private label brands of the Debtors or any of their Subsidiaries, except where
the failure to so own or license or otherwise obtain the right to use,
individually or in the aggregate, would not have a Partnership Material Adverse
Effect or where any such infringement or conflict, individually or in the
aggregate, would not have a Partnership Material Adverse Effect. To the
Knowledge of any Debtor, (a) no slogan or other advertising device, product,
process, method, substance, part or component, or other material now employed,
or now contemplated to be employed, in the ordinary course of business by the
Debtors or any of their Subsidiaries infringes upon or conflicts with any rights
owned by any other Person, except where any such infringement or conflict,
individually or in the aggregate, would not have a Partnership Material Adverse
Effect, and (b) as of the date of this Agreement, no material claim or
litigation regarding any of the foregoing is pending or threatened.

            2.10 No Brokers. None of the Debtors or any of their Subsidiaries
has entered into any contract, arrangement or understanding with any Person that
may result in the obligation of the Debtors or any of their Subsidiaries,
Investor or New Globalstar to pay any investment banker's or finder's fees,
brokerage or agent's commissions or other like payments in connection with the
negotiations incident to this Agreement or the consummation of the transactions
contemplated hereby, except that the Partnership has retained Jefferies &
Company, Inc. ("Jefferies") as its financial advisor. The arrangements regarding
such relationship have been described in the Partnership Disclosure Letter and a
copy of the engagement letter relating thereto has been provided to Investor
prior to the date of this Agreement. Except as otherwise provided in Section
4.13, the Debtors will pay all amounts owed pursuant to the foregoing
arrangements.

            2.11 Non-Debtor Entity Liabilities and Obligations. Except for such
liabilities or obligations arising after the date of this Agreement that are not
violative of Section 4.8, none of the Non-Debtor Entities have any liabilities
or obligations (whether accrued or unaccrued, absolute or contingent, or due or
to become due), individually or in the aggregate, in excess of $10,000 other
than those incurred in the ordinary course of business consistent with past
practices and there is no basis for any claim, suit or action against any of the
Non-Debtor Entities for any such liability or obligation. Except for such
contracts entered into after the date of this Agreement that are not violative
of Section 4.8, none of the Non-Debtor Entities are party to any contract other
than contracts entered into in the ordinary course of business consistent with
past practices.

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

                III. REPRESENTATIONS AND WARRANTIES OF INVESTOR

      Investor represents and warrants to the Debtors as follows:

            3.1 Existence; Authorization, Validity and Effect of Agreement.
Investor is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware. Investor has the requisite
corporate power and authority to execute and deliver this Agreement and to
execute and deliver all agreements, instruments and documents contemplated
hereby to be executed and delivered by it. This Agreement and the consummation
by Investor of the transactions contemplated hereby have been duly authorized by
all requisite corporate action. This Agreement has

                                      -7-
<PAGE>
been duly and validly executed and delivered by Investor and constitutes the
valid and binding obligation of Investor, enforceable against Investor in
accordance with its terms, except that (a) such enforceability may be subject to
applicable bankruptcy, insolvency or other similar Laws now or hereafter in
effect affecting creditors' rights generally and (b) the availability of the
remedy of specific performance or injunctive or other forms of equitable relief
may be subject to equitable defenses and would be subject to the discretion of
the court before which any proceeding therefor may be brought.

            3.2 Capitalization of New Globalstar. To the Knowledge of Investor,
as of the Closing Date and upon issuance of the Class A Shares and Class B
Shares pursuant to this Agreement, the Class A Shares and Class B Shares will
constitute all of the issued and outstanding shares of common stock of New
Globalstar, and, no preferred stock or options, warrants or other rights to
acquire, or any securities convertible into or exchangeable for, any equity
securities of New Globalstar will be outstanding.

            3.3 No Conflict; Required Filings and Consents.

            (a) The execution, delivery and performance of this Agreement by
Investor do not, and the consummation by Investor of the transactions
contemplated hereby will not, (i) conflict with or violate the certificates of
incorporation, bylaws or equivalent organizational documents of Investor or any
of its Subsidiaries, (ii) subject to entry of the Approval Order and approval by
the FCC, conflict with or violate any Law or Order applicable to Investor or any
of its Subsidiaries, or by which any property or asset of Investor or any of its
Subsidiaries is bound or affected, or (iii) conflict with or violate or result
in a breach or default under any contract, agreement or instrument binding upon
Investor or any of its Subsidiaries, except, in the case of clauses (ii) and
(iii), for any such conflicts, violations, breaches or defaults that,
individually or in the aggregate, would not have an Investor Material Adverse
Effect.

            (b) The execution and delivery of this Agreement by Investor do not,
and the performance of this Agreement and the consummation of the transactions
contemplated hereby by Investor will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any Governmental
Entity, except (i) for (A) applicable requirements, if any, of the Exchange Act,
(B) the applicable notification requirements, if any, of the HSR Act, and (C)
the applicable notification or approval requirements, if any, of the FCC, the
DoD, the FBI, the DoJ and the Applicable Foreign Authorities and (ii) where
failure to obtain such consents, approvals, authorizations or permits, or to
make such filings or notifications, would not, individually or in the aggregate,
have an Investor Material Adverse Effect.

            3.4 No Brokers. Neither Investor nor any of its Subsidiaries has
entered into any contract, arrangement or understanding with any Person that may
result in the obligation of the Debtors, Investor, New Globalstar or any of
their respective Subsidiaries to pay any investment banker's or finder's fees,
brokerage or agent's commissions or other like payments in connection with the
negotiations incident to this Agreement or the consummation of the transactions
contemplated hereby.

            3.5 Sufficient Funds. Investor DIP Lender has, or will have with
funds made available to it by Investor, sufficient funds available to make
advances to the Debtors under the DIP Facility, in accordance with its terms,
prior to the Closing, and Investor has sufficient funds to pay the Cash Purchase
Price payable by Investor in accordance with Section 1.6.

            3.6 Investment Intent. Investor is purchasing the Class B Shares in
accordance with Section 1.6 hereof for its own account and for investment
purposes, and does not intend to redistribute the Class B Shares. Investor
acknowledges that the Class B Shares have not been registered under the

                                      -8-
<PAGE>
Securities Act, or any state blue sky or securities Laws, and that the
subsequent transfer of the Class B Shares may be subject to compliance with such
Laws.

            3.7 Investor Sophistication; Etc. Investor is a sophisticated
investor and has such knowledge and experience in financial, business and
investment matters as to be capable of evaluating the merits and risks of an
investment in the Class B Shares. Investor is not organized for the specific
purpose of acquiring the Class B Shares in accordance with Section 1.6 hereof.
Investor is not an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.

            3.8 Ownership of Securities. Other than as contemplated by this
Agreement or the DIP Facility and except for the Globalstar, L.P. 11.25% bonds
due June 15, 2004, that Investor owns as previously disclosed to the Debtor in
writing and for its interest under the Existing DIP Loan Agreement, as of the
date of this Agreement none of Investor or any of its Affiliates beneficially
owns any Claims against, or equity securities of any Debtor or any direct or
indirect options, warrants or other rights to acquire, or any security
convertible into or exchangeable for, any Claims against or equity securities of
any Debtor.

            3.9. Access to Information. Investor acknowledges that, to its
Knowledge, it and its representatives have received or been afforded the
opportunity to review prior to the date of this Agreement all materials that
Investor requested the Partnership to deliver or make available, as the case may
be, to Investor and its representatives in connection with entering into this
Agreement. Investor acknowledges that, to its Knowledge, it and its
representatives have been permitted full and complete access to the books and
records, tax returns, contracts, insurance policies (or summaries thereof) and
other properties and assets of the Partnership and its Subsidiaries that it or
its representatives have desired or requested to see or review, and that it and
its representatives have had a full opportunity to meet with the officers and
employees of the Partnership.

            3.10 Forecasts and Projections. Investor acknowledges that any
forecasts or projections included in any Partnership Report are not to be viewed
as facts and that actual results achieved by the Partnership or any of its
Subsidiaries during the period or periods covered by any such forecasts or
projections may vary materially from those contained in such forecasts or
projections. Without limiting the generality of Section 2.12 or the immediately
preceding sentence, Investor acknowledges that none of the Partnership, its
Affiliates or any of their respective directors, officers, stockholders,
managers, members, partners, employees, agents or representatives has made any
representation or warranty concerning any future revenues, costs, expenditures,
cash flows, results of operations, financial condition or prospects of the
Partnership or any of its Subsidiaries.

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

                                 IV. COVENANTS

            4.1 Deposit of Funds. Immediately after execution of this Agreement,
Investor shall deposit $55,000,000 in a segregated account. Unless and until
this Agreement and the DIP Facility are terminated, no amounts shall be
withdrawn from such account except to fund borrowings under the DIP Facility and
to pay the Cash Purchase Price.

                                      -9-
<PAGE>
            4.2 Inspection of Records. During the period from the date of this
Agreement through the earlier of the Closing and the termination of this
Agreement in accordance with Section 7.1, 7.2 or 7.3 (the "Pre-Closing Period"),
the Debtors will (a) allow all designated officers, attorneys, accountants and
other representatives of Investor reasonable access at reasonable times to the
officers, key employees, accountants and other representatives of the Debtors
and any of their Subsidiaries and the books and records of the Debtors and any
of their Subsidiaries and (b) furnish to Investor and its counsel, financial
advisors, auditors and other authorized representatives such financial and
operating data and other information as such Persons may reasonably request.
Without limiting the generality of the foregoing, during the Pre-Closing Period
Investor may designate, by written notice to the Partnership, one or more
individuals to be present at the principal executive offices of the Partnership
during the Partnership's regular business hours and, at no cost to Investor, the
Partnership will provide one such designee to be identified by Investor in
writing (the "Investor Representative") with appropriate office space and
reasonable secretarial support.

            4.3 Confidentiality. Information obtained by the Investor pursuant
to Section 4.2 shall be subject to the provisions of the Confidentiality
Agreement, provided that the Confidentiality Agreement shall automatically
terminate as of the Closing.

            4.4 Publicity. The initial press release relating to this Agreement
will be in the form of a joint press release agreed to by Investor and the
Debtors, and thereafter Investor, the Partnership and New Globalstar will,
subject to their respective legal obligations, consult with the others and use
reasonable efforts to agree, in advance, upon the text of any press release or
other public statements with respect to the transactions contemplated hereby,
including those contained in any filings with any Governmental Entity or with
any securities exchange or similar body.

            4.5 Further Action. The Debtors and Investor will use their
respective commercially reasonable efforts to take, or cause to be taken, all
appropriate action, do or cause to be done all things reasonably necessary,
proper or advisable under applicable Law, and execute and deliver such documents
and other papers and promptly, after the date of this Agreement, make all
filings with the Bankruptcy Court, as may be required to carry out the
provisions of this Agreement and the other documents contemplated hereby and
make effective the transactions contemplated hereby and thereby.

            4.6 Filings with Governmental Entities.

            (a) The Debtors and Investor will comply with the Laws that are
applicable to any of the transactions contemplated hereby and pursuant to which
government notification or approval of such transactions is necessary. The
Debtors and Investor will cooperate with each other and use their respective
commercially reasonable efforts to provide information required for this purpose
and to promptly file with the appropriate Governmental Entities all required
notifications and applications seeking all required approvals. The Debtors and
Investor will use their respective commercially reasonable efforts to resolve
objections, if any, that are asserted by any Governmental Entity with respect to
the transactions contemplated hereby.

            (b) Without limiting the generality or effect of Section 4.6(a), (i)
the Debtors and Investor will, as soon as practicable after the date of this
Agreement, (A) file any required Notification and Report Forms under the HSR Act
with the Federal Trade Commission (the "FTC") and the Antitrust Division of the
DoJ (the "Antitrust Division"), (B) make or cause to be made all filings and
applications which are required by the FCC requesting the FCC's written consent
to the transfer of the Globalstar FCC Licenses to New Globalstar (the "FCC
Applications") and (C) file any additional required notifications or
applications, if any, with the FCC, DoD, FBI and DoJ and (ii) the Debtors and
Investor will use their respective commercially reasonable efforts to prosecute
expeditiously the FCC Applications and to

                                      -10-
<PAGE>
respond as promptly as practicable to all inquiries received from any such
Governmental Entity for additional information or documentation.

            (c) During the Pre-Closing Period, the Debtors shall not make any
filings with the FCC or agree to any proposal, settlement, amendment or
alteration with the FCC, with respect to the Globalstar FCC Licenses without
prior consultation with Investor.

            4.7 Notification.

            (a) During the Pre-Closing Period, the Partnership shall promptly
notify Investor in writing if any Debtor becomes aware of any fact or condition
that makes the satisfaction of the conditions in Article V impossible or
unlikely. No such notice will be deemed to have amended the Partnership
Disclosure Letter, to have qualified any of the Debtors' representations and
warranties contained herein and to have cured any misrepresentation or breach of
warranty that otherwise might have existed hereunder by reason of such fact,
condition or occurrence.

            (b) During the Pre-Closing Period, Investor shall promptly notify
the Debtors in writing if Investor becomes aware of any fact or condition that
makes the satisfaction of the conditions in Article V impossible or unlikely. No
such notice will be deemed to have qualified any of the representations and
warranties of Investor contained herein and to have cured any misrepresentation
or breach of warranty that otherwise might have existed hereunder by reason of
such fact, condition or occurrence.

            4.8 Conduct of Business. During the Pre-Closing Period, (a) except
(i) as otherwise provided in this Agreement, and (ii) for payment of the
restructuring expenses as identified in the Approved Budget, the Debtors will,
and will cause each of their respective Subsidiaries to, conduct their
operations in the ordinary and usual course of business consistent with past
practice (including managing their working capital in accordance with its past
practice and custom) and (b) the Debtors will use their commercially reasonable
efforts to keep the Investor Representative generally informed on a timely
basis, and to consult with the Investor Representative, regarding all such
operations. Without limiting the generality or effect of the foregoing, during
the Pre-Closing Period, the Debtors will, and will cause each of their
respective Subsidiaries to, use their respective reasonable best efforts to: (a)
preserve intact their business organizations; (b) keep available the services of
their officers and employees; (c) continue in full force and effect without
material modification all existing material policies or binders of insurance
currently maintained in respect of the Debtors and their Subsidiaries; (d) pay
their post-petition debts and trade and other accounts payable punctually when
and as the same shall become due and payable and perform and observe, in all
material respects, their duties and obligations under all material contracts
that have been assumed in the Chapter 11 Cases, in each case in accordance with
past practice during the Chapter 11 Cases; and (e) maintain their relationships
and goodwill with suppliers, distributors, customers, landlords, employees,
agents and others having business relationships with them, in each case in
accordance with past practice during the Chapter 11 Cases. Without limiting the
generality or effect of the foregoing, during the Pre-Closing Period, except as
otherwise provided in this Agreement, the Debtors will not, and will not permit
any of their respective Subsidiaries to, without the prior written consent of
Investor (which consent will not be unreasonably withheld or delayed):

            (a) amend or modify their partnership agreements, limited liability
company agreements, certificates of incorporation, bylaws or other equivalent
organizational documents in any material respect from their form on the date of
this Agreement;

            (b) change any salaries or other compensation of, or pay any bonuses
to, any director, officer or employee or enter into any employment, severance,
or similar agreement with any

                                      -11-
<PAGE>
director, officer or employee except for cost of living, normal merit, and
promotional increases in the ordinary course and consistent with past practices;

            (c) adopt or increase any benefits under any profit sharing, bonus,
deferred compensation, savings, insurance, pension, retirement, or other
employee benefit plan for or with any of its employees;

            (d) enter into (i) any lease or leases resulting in a commitment or
obligation, individually or in the aggregate, in excess of $250,000, or (ii) any
other contract or commitment or related contracts or commitments resulting in an
obligation, individually or in the aggregate, in excess of $250,000, except such
leases, contracts and commitments that are entered into in the ordinary course
of business consistent with past practice;

            (e) incur, assume or guarantee any debt or debts or other obligation
or obligations, individually or in the aggregate, in excess of $250,000, except
accounts payable incurred in the ordinary course of business consistent with
past practice;

            (f) cancel or waive any claims or rights having a value,
individually or in the aggregate, reasonably expected to be in excess of
$250,000;

            (g) enter into (i) any contract with any existing or prospective
independent gateway operator, (ii) any contracts for services other than with
existing or future customers of Debtors in the ordinary course of business
consistent with past practices, (iii) any contracts granting rights to any
Intellectual Property of Debtors, (iv) any agreement with Loral Space &
Communications Ltd. ("Loral"), or (v) any agreement with QUALCOMM;

            (h) set aside or pay any dividend or make any other distribution
with respect to equity interests in the Partnership or any of its Subsidiaries
or repurchase, redeem or otherwise acquire, directly or indirectly, any
outstanding equity interests in, or other securities of, New Globalstar, the
Partnership or any of its Subsidiaries;

            (i) make any change in their financial or tax accounting methods or
practices, except as required by applicable Law or United States generally
accepted accounting principles;

            (j) issue or sell any equity interests in the Partnership or any of
its Subsidiaries or make any other changes in their respective capital
structures;

            (k) sell, lease or otherwise dispose of any material asset or
property, including any capacity on the Debtors' satellite communication system,
other than in the ordinary course of business consistent with past practices;

            (l) (i) write-off as uncollectible any notes or accounts receivable
except write-offs in the ordinary course of business charged to reserves, (ii)
write-off, write-up or write-down any other material asset, or (iii) alter the
customary time periods for collection of accounts receivable or payments of
accounts payable;

            (m) create or assume any Lien other than a Permitted Lien;

            (n) make any loan, advance or capital contributions to or investment
in any Person;

                                      -12-
<PAGE>
            (o) terminate or make any material change in the conduct of the
business or operation of the Partnership or any of its Subsidiaries;

            (p) file any plan of reorganization for the Debtors in the Chapter
11 Cases containing, or amend any such plan of reorganization so that it
contains, any obligation for the Debtors to make any cash payment other than in
respect of Claims for administrative expenses, priority tax Claims, priority
non-tax Claims and cure amounts relating to executory contracts and unexpired
leases assumed by the Debtors ("Priority Claims") (provided that treatment of
each such Priority Claim shall have been approved by Investor to the extent
required by provisions of this Agreement other than this Section 4.8 and is
otherwise consistent with the terms of this Agreement); or

            (q) agree to or contract to do any of the foregoing.

            4.9 Exchange Act Registration; Securities Exchange Listing.

            (a) Unless otherwise determined by a majority of the Class A
Directors, in their sole discretion, Investor and New Globalstar will use all
commercially reasonable efforts to cause the Class A Shares to be registered
under Section 12 of the Exchange Act by no later than April 29, 2004.

            (b) Investor and New Globalstar will use all commercially reasonable
efforts to cause the Class A Shares to be listed on a national securities
exchange or quoted on the NASDAQ National Market or NASDAQ Small Cap at the time
such Class A Shares are registered under Section 12 of the Exchange Act. So long
as Investor holds a majority of New Globalstar's securities entitled to vote
generally in the election of directors, Investor shall nominate and cause to be
elected directors that will permit New Globalstar to be in compliance with
applicable provisions of the Exchange Act and applicable rules of the national
securities exchange on which the Class A Shares are, or are expected to be,
listed or of The Nasdaq Stock Market, Inc. if the Class A Shares are, or are
expected to be, quoted on Nasdaq.

            (c) Following the registration and listing of the Class A Shares as
described above in paragraphs (a) or (b), New Globalstar will use all
commercially reasonable efforts, until such time as shares of Class A Shares are
owned by fewer than 300 holders of record, to maintain (i) the registration
under Section 12 of the Exchange Act of the Class A Shares and (ii) the listing
on a national securities exchange or quotation on Nasdaq of the Class A Shares.

            4.10 Right to Participate in Offering of Equity Securities. Each of
New Globalstar and Investor will ensure that, in the event that New Globalstar,
at any time after the Closing Date, sells its equity securities to Investor or
any of its Affiliates (each an "Affiliate Equity Sale"), New Globalstar and
Investor will ensure that each holder of record of Class A Shares (other than
Investor and its Affiliates) as of the later to occur of the date of such sale
and the effective date of a plan of reorganization in the Chapter 11 Cases (each
an "Eligible Class A Holder") is given the opportunity, by means of a rights
offering (each a "Rights Offering"), to purchase up to a number of newly issued
Class A Shares that if purchased will cause such Eligible Class A Holder's
Post-Sale Relative Ownership in connection with such Affiliate Equity Sale and
related Rights Offering to equal such Eligible Class A Holder's Pre-Sale
Relative Ownership in connection with such Affiliate Equity Sale and related
Rights Offering. For purposes of this Section 4.10, (a) "Pre-Sale Relative
Ownership" means, for any Eligible Class A Holder in connection with an
Affiliate Equity Sale and related Rights Offering, the ratio of (i) the number
of Class A Shares held by such Eligible Class A Holder immediately prior to such
Affiliate Equity Sale to (ii) the sum of (A) the total number of Class A Shares
and Class B Shares held by Investor and its Affiliates immediately prior to the
closing of such Affiliate Equity Sale, (B) the total Class A Shares held by such
Eligible Class A Holder immediately prior to the closing of such Affiliate
Equity Sale and (C) the

                                      -13-
<PAGE>
positive difference, if any, of (x) the total number of Class A Shares and Class
B Shares sold or otherwise transferred by Investor or its Affiliates to third
parties during the period from the Closing through the closing of such Affiliate
Equity Sale less (y) the total number of Class A Shares and Class B Shares
purchased by Investor or its Affiliates from third parties during the period
from the Closing through the closing of such Affiliate Equity Sale and (b)
"Post-Sale Relative Ownership" means, for any Eligible Class A Holder in
connection with an Affiliate Equity Sale and related Rights Offering, the ratio
of (i) the number of Class A Shares that would be held by such Eligible Class A
Holder immediately after the closing of such Rights Offering if such Eligible
Class A Holder fully subscribes in such Rights Offering and assuming such
Eligible Class A Holder otherwise does not purchase or sell any Class A Shares
from and after the closing of such Affiliate Equity Sale and at or prior to the
closing of such Rights Offering to (ii) the sum of (A) the total number of Class
A Shares and Class B Shares held by Investor and its Affiliates immediately
after the closing of such Affiliate Equity Sale, (B) the total Class A Shares
that would be held by such Eligible Class A Holder immediately after the closing
of such Rights Offering if such Eligible Class A Holder fully subscribes in such
Rights Offering and assuming such Eligible Class A Holder otherwise does not
purchase or sell any Class A Shares during the period from the closing of such
Affiliate Equity Sale through the closing of such Rights Offering and (C) the
positive difference, if any, of (x) the total number of Class A Shares and Class
B Shares sold or otherwise transferred by Investor or its Affiliates to third
parties during the period from the Closing through the closing of such Affiliate
Equity Sale less (y) the total number of Class A Shares and Class B Shares
purchased by Investor or its Affiliates from third parties during the period
from the Closing through the closing of such Affiliate Equity Sale. The
obligations of New Globalstar and Investor pursuant to this Section 4.10 shall
terminate upon the earlier of (i) the second anniversary of the effective date
of the plan of reorganization in the Chapter 11 Cases and (ii) the occurrence of
a Trigger Event.

            4.11 Formation of New Globalstar. The Debtors and Investor will
cause (a) the Certificate of Incorporation of New Globalstar in the form of
Exhibit A hereto (the "Certificate of Incorporation"), to be filed with the
Secretary of State of the State of Delaware on or before the Closing Date, (b)
the Bylaws of New Globalstar, in the form of Exhibit B hereto (the "Bylaws"), to
be adopted on or before the Closing Date, (c) the Certificate of Incorporation
and the Bylaws to be in full force and effect on the Closing Date, and (d) New
Globalstar to agree in writing to be bound by the provisions hereof. New
Globalstar will be formed solely for the purpose of engaging in the transactions
contemplated by this Agreement and, until the Closing Date, will not engage in
any business activity or operations, or incur any liability or obligation, other
than in connection with such transactions. As of the Closing Date, (x) New
Globalstar will issue the Class A Shares and Class B Shares pursuant to this
Agreement, (y) such shares will constitute all of the issued and outstanding
shares of common stock of New Globalstar, and (y) no preferred stock or options,
warrants or other rights to acquire, or any securities convertible into or
exchangeable for, any equity securities of New Globalstar will be outstanding.
When issued in accordance with this Agreement, each of the Class A Shares and
the Class B Shares will be duly authorized, validly issued, fully paid,
nonassessable and free of preemptive rights.

            4.12 Employees. As of the Closing, New Globalstar shall identify and
extend offers of employment to those employees of Debtors that it desires to
hire as of the Closing (the "Acquired Employees"). All such offers shall be for
pay and benefits comparable to the level of base pay, incentive compensation and
employee benefits provided to comparable employees of Investor as of the Closing
Date. New Globalstar shall not be obligated to continue to employ any Acquired
Employee for any particular period.

            4.13 Funding of Expenses. From and after the Closing Date, New
Globalstar shall pay all reasonable costs and expenses of the Debtors in
connection with the administration of the Chapter 11 Cases (including all
allowed Claims for administrative expenses payable in cash), any conversion of
the Chapter 11 Cases to a liquidation under Chapter 7 of the Bankruptcy Code or
any such liquidation and

                                      -14-
<PAGE>
other winding up of the Debtors in accordance with the budget with respect to
such costs and expenses attached hereto as Exhibit 4.13 (the "Approved
Post-Closing Budget"). The Approved Post-Closing Budget may be updated from time
to time by the Debtors, subject to approval of such updates by Investor, which
approval shall not be unreasonably withheld or delayed. Investor and the Debtors
shall each have standing to object to the reasonableness of costs and expenses
reflected in such updates in accordance with the Bankruptcy Code and the
procedures of the Bankruptcy Court. In the event that a plan of reorganization
is unable to be confirmed solely as a result of the nonpayment of Claims
(including, without limitation, administrative expense Claims) in a manner
consistent with the requirements of Section 1129(a)(9) of the Bankruptcy Code
associated with the Chapter 11 Cases as a result of disputes with respect to
updates to the Approved Post-Closing Budget, New Globalstar will promptly
register the distribution of the Class A Shares to creditors of the Debtors
under the Securities Act of 1933 and pay all reasonable costs and expenses
relating thereto.

            4.14 Chapter 11 Cases Assistance. From and after the Closing Date,
New Globalstar will provide reasonable assistance to the Debtors in connection
with the administration of the Chapter 11 Cases or any liquidation or other
winding up of the Debtors at no charge. Without limiting the generality of the
foregoing, New Globalstar will permit its employees to serve as officers of the
Debtors and spend such portion of their time as may be reasonably necessary to
direct and oversee the administration of the Chapter 11 Cases or any liquidation
or other winding up of the Debtors.

            4.15 Right to Participate in First Public Offering. Each of New
Globalstar and Investor will use commercially reasonable efforts to ensure that
all shareholders of record of Globalstar Telecommunications Limited, a Bermuda
corporation, as of the effective date of the plan of reorganization of the
Debtors have the opportunity to acquire securities in the first underwritten
public offering of equity securities, if any, made by New Globalstar on or
before the seventh anniversary of such effective date at the price such
securities are offered to the public and in such amounts as New Globalstar
determines to be appropriate after consultation with the managing underwriter or
underwriters for such offering, provided that so doing will not result in any
additional material expense to New Globalstar, have an adverse effect on the
success of such offering or result in any material delay of the completion of
such offering. This Section 4.15 shall automatically terminate (a) if Globalstar
Telecommunications Limited dissolves or takes any other action adverse to the
Debtors (as determined by the Debtors in their sole discretion) prior to the
effective date of the plan of reorganization of the Debtors without the prior
written consent of the Debtors and Investor or (b) upon a Change of Control.

                            V. CONDITIONS TO CLOSING

            5.1 Conditions to Each Party's Obligations. The respective
obligations of each party to consummate the transactions contemplated by this
Agreement are subject to the satisfaction or waiver, at or prior to the Closing,
of the following conditions:

            (a) The DIP Facility shall have been approved by the Bankruptcy
Court.

            (b) The Approval Order as entered by the Bankruptcy Court shall not
have been amended (except to the extent that any such amendment is reasonably
acceptable to the Debtors and Investor) or vacated.

            (c) The waiting period (and any extension thereof) under the HSR
Act, if any, applicable to the consummation of the transactions contemplated by
this Agreement shall have been terminated or shall have expired.

                                      -15-
<PAGE>
            (d) All approvals of the FCC, the DoD, the FBI and the DoJ, if any,
required in connection with the consummation of the transactions contemplated by
this Agreement shall have been obtained and the FCC shall have consented to the
transfer to New Globalstar of (i) the Big Leo License or (ii) all of the equity
securities of L/Q Licensee, Inc.

            (e) No Order or Law enacted, entered, promulgated, enforced or
issued by any court of competent jurisdiction or other Governmental Entity or
other legal restraint or prohibition preventing the consummation of the
transactions contemplated by this Agreement shall be in effect.

            (f) Any withholding obligations owed to the Internal Revenue Service
or any other taxing authorities with respect to allocations of income and gain
or distributions to the Partnership's partners in connection with any discharge
of indebtedness in the Chapter 11 Cases or otherwise in connection with the
transactions contemplated hereby shall have been resolved to the mutual
satisfaction of the parties.

            5.2 Conditions to Obligations of Debtors. The obligations of Debtors
to consummate the transactions contemplated by this Agreement are subject to the
satisfaction or waiver, at or prior to the Closing, of the following conditions:

            (a) Investor shall have delivered to New Globalstar the Cash
Purchase Price.

            (b) All representations and warranties of Investor contained in this
Agreement shall be true and correct in all material respects on the Closing Date
(except for representations and warranties made as of a specific date, which
shall be true and correct in all material respects as of such date).

            (c) All material covenants contained in this Agreement and required
to be performed or complied with by Investor shall have been performed or
complied with by Investor in all material respects.

            (d) Investor shall have delivered to the Partnership a certificate
of an executive officer of Investor certifying to the satisfaction of the
conditions set forth in (b) and (c) above.

            5.3 Conditions to Obligations of Investor. The obligations of
Investor to consummate the transactions contemplated by this Agreement are
subject to the satisfaction or waiver, at or prior to the Closing, of the
following conditions:

            (a) All representations and warranties of the Debtors contained in
this Agreement shall be true and correct in all material respects on the Closing
Date (except for representations and warranties made as of a specific date,
which shall be true and correct in all material respects as of such date).

            (b) All material covenants contained in this Agreement and required
to be performed or complied with by the Debtors shall have been performed or
complied with by the Debtors in all material respects.

            (c) Each of the Debtors shall have delivered to Investor a
certificate of an executive officer of each Debtor certifying to the
satisfaction of the conditions set forth in (a) and (b) above.

            (d) Investor shall have received satisfactory evidence of QUALCOMM's
having taken the following actions or having executed agreements with respect to
the following, on terms and conditions reasonably satisfactory to the Investor:

                                      -16-
<PAGE>
            (i) transfer by QUALCOMM to the Debtors or New Globalstar of all
      handset inventories (which shall be in good working order) and chipsets
      for Globalstar products currently owned by QUALCOMM at no additional cost
      to the Debtors or New Globalstar for the handsets, and at reasonable
      pricing for the chipsets;

            (ii) grant by QUALCOMM to one or more third parties of a
      non-exclusive, perpetual, irrevocable worldwide license (including rights
      to sublicense) to manufacture user terminals and gateways using the
      applicable CDMA technology, at commercially reasonable royalty rates and
      to provide the necessary technical information to make the manufacture by
      such third parties feasible;

            (iii) provision by QUALCOMM to New Globalstar of continued tier 3
      support with respect to intellectual property and maintenance support for
      the Debtors' gateways for the benefit of New Globalstar and its service
      providers on commercially reasonable terms;

            (iv) the modification of the Contract for OmniTRACS-Like Services,
      dated March 23, 1994, between QUALCOMM and the Partnership, to provide for
      market-based pricing and to eliminate exclusivity;

            (v) the upgrading of gateway software to current version for each of
      the gateways, including gateways in storage, on commercially reasonable
      terms;

            (vi) confirmation that New Globalstar has a perpetual, royalty free,
      irrevocable right to use and modify all intellectual property rights
      associated with that portion of the Debtors' satellite system and ground
      network provided by QUALCOMM; and

            (vii) agreement by QUALCOMM to incorporate all new applicable
      features, improvements and enhancements to QUALCOMM's core CDMA technology
      into new generation of chipsets for use with the Debtors' satellite system
      on commercially reasonable terms, or to permit one or more third parties
      to manufacture and incorporate such features, improvements and
      enhancements into new generations of chipsets for use with the Debtors'
      satellite system, and to provide necessary support and know-how to such
      third parties, all on commercially reasonable terms.

            (e) Each of the Debtors shall have delivered to New Globalstar all
documents, certificates and agreements reasonable requested by Investor to
transfer to New Globalstar title to the Assets (collectively, the "Transfer
Documents").

            (f) Not later than August 15, 2003, the Debtors shall have reached
an agreement with the Pension Benefit Guaranty Corporation (the "PBGC") on terms
and conditions reasonably acceptable to Investor, which agreement shall provide
that, as of the Closing, the PBGC shall have no lien, and waives or releases all
liens and all rights to assert liens in the future, on the stock or any assets
of the Non-Debtor Entities, and the Non-Debtor Entities shall have no liability,
in connection with the defined pension plan entitled "Retirement Plan of Space
Systems/Loral."

                                VI. NO SURVIVAL

      None of the representations, warranties, covenants and agreements in this
Agreement shall survive the Closing, except that nothing in this Article VI
shall limit any covenant or agreement of a party which by its terms contemplates
performance by such party after the Closing.

                                      -17-
<PAGE>
                                VII. TERMINATION

            7.1 Termination by Mutual Consent. This Agreement may be terminated
at any time prior to the Closing by the mutual consent of Investor and the
Debtors.

            7.2 Termination by Investor. This Agreement may be terminated by
Investor by written notice to the Debtors if:

            (a) the Closing Date has not occurred on or before December 31,
2003;

            (b) a Partnership Material Adverse Effect occurs after March 21,
2003, which Partnership Material Adverse Effect shall be incapable of being
cured or, if capable of being cured, shall not have been cured within 15
calendar days following receipt by the Partnership from Investor of written
notice of the occurrence of a Partnership Material Adverse Effect (specifying in
reasonable detail the claimed circumstances giving rise to the Partnership
Material Adverse Effect and demand of its cure or satisfaction);

            (c) there shall have occurred a material default, other material
breach or a repudiation of any of the contracts that QUALCOMM entered into
pursuant to Section 5.3(d) of this Agreement;

            (d) there shall have occurred an Event of Default, the Commitment
shall have been terminated and the Obligation shall have been declared by
Investor DIP Lender to be due and payable;

            (e) there shall have been a material default under or material
breach of any representation, warranty, covenant or agreement of the Debtors
contained in this Agreement, which default or breach shall be incapable of being
cured or, if capable of being cured, shall not have been cured within 30
calendar days following receipt by the Partnership of written notice of such
default or breach (specifying in reasonable detail the claimed default or breach
and demand of its cure or satisfaction) and which material default or material
breach would result in a failure of a condition set forth in Article V;

            (f) (i) the DIP Facility has not been approved by an order in form
and substance satisfactory to Investor, entered by the Bankruptcy Court at a
final hearing in accordance with Fed. R. Bankr. Proc. 4001(c)(2) (a "Final
Hearing") on or before May 22, 2003, and Investor delivers written notice of
termination to the Partnership on or before May 29, 2003, or (ii) if the DIP
Facility has been approved, a stay of any provision of the approval order has
been issued and Investor delivers written notice of termination to the
Partnership on or before the fifth Business Day after Investor receives notice
of the issuance of such stay;

            (g) the Partnership shall have become a party to any agreed term
sheet, letter of intent or agreement contemplating a transaction for the direct
or indirect transfer of all or a material portion of the Assets to a party or
parties other than Investor; or

            (h) any of the conditions to the obligations of Investor set forth
in Sections 5.1 or 5.3 shall have become impossible of fulfillment other than as
a result of a breach by Investor of any covenant or agreement contained in this
Agreement, and such condition is not waived by Investor.

            7.3 Termination by the Debtors. This Agreement may be terminated by
the Debtors by written notice to Investor if:

            (a) the Closing Date has not occurred on or before December 31,
2003;

                                      -18-
<PAGE>
            (b) an Investor Material Adverse Effect occurs after the date of
this Agreement, which such Investor Material Adverse Effect shall be incapable
of being cured or, if capable of being cured, shall not have been cured within
15 calendar days following receipt by Investor from the Debtors of written
notice of the occurrence of an Investor Material Adverse Effect (specifying in
reasonable detail the claimed circumstances giving rise to the Investor Material
Adverse Effect and demand of its cure or satisfaction);

            (c) there shall have been a material default under or material
breach of any representation, warranty, covenant or agreement of Investor
contained in this Agreement, which default or breach shall be incapable of being
cured or, if capable of being cured, shall not have been cured within 30
calendar days following receipt by Investor from the Partnership of written
notice of such default or breach (specifying in reasonable detail the claimed
default or breach and demand of its cure or satisfaction) and which material
default or material breach would result in a failure of a condition set forth in
Article V;

            (d) after 7 Business Days following receipt by Investor from the
Debtors of written notice of the occurrence of any of the following: (i)
Investor DIP Lender refuses or otherwise fails to fund any requested draw under
the DIP Facility that complies with the applicable provisions of the DIP
Facility and applicable Law or (ii) (A) under the terms of the DIP Facility, the
Debtors have no ability to draw funds under the DIP Facility (provided that such
inability to draw is not solely as a result of a breach by the Debtors), (B)
Investor refuses to advance further funds to the Debtors on terms reasonably
acceptable to the Debtors, and (C) the Debtors have utilized any of the
Wind-Down Funds to fund the ongoing operation of their businesses;

            (e) if termination is authorized pursuant to an order of the
Bankruptcy Court, which Debtors agree not to seek except in the event of the
occurrence of any of the events specified in (a) - (d) above; or

            (f) (i) the DIP Facility has not been approved by an order in form
and substance satisfactory to Investor, entered by the Bankruptcy Court at a
final hearing in accordance with Fed. R. Bankr. Proc. 4001(c)(2) (a "Final
Hearing") on or before May 22, 2003, and the Partnership delivers written notice
of termination to the Investor on or before May 29, 2003, or (ii) if the DIP
Facility has been approved, a stay of any provision of the approval order has
been issued and the Partnership delivers written notice of termination to the
Investor on or before the fifth Business Day after the Partnership receives
notice of the issuance of such stay.

            7.4 Effect of Termination. In the event of the termination of this
Agreement pursuant to Section 7.1, 7.2, or 7.3, this Agreement shall become void
and have no effect, and there shall be no liability hereunder on the part of
Investor or of any Debtor; provided, however, that Section 4.3 shall survive any
such termination for so long as the Confidentiality Agreement shall remain in
effect; provided further, however, that nothing in this Section 7.4 shall
prevent any party from pursuing any and all damages, remedies or other relief
available to it at law or in equity as a result of any willful and voluntary
breach of this Agreement by another party hereto. The Confidentiality Agreement
shall, except as provided herein, remain in effect during the term of this
Agreement and following its termination; provided, however, that such agreement
will automatically terminate as of the Closing.

                            VIII. GENERAL PROVISIONS

            8.1 Notices. Any notice or other communication permitted or required
to be given hereunder will be in writing, and sent by reputable courier service
(with proof of delivery), by hand

                                      -19-
<PAGE>
delivery or by facsimile (followed by delivery by courier service (with proof of
delivery) or by hand delivery), addressed as follows:

      If to Investor or New Globalstar:

            ICO Global Communications (Holdings) Limited
            4 Orinda Way
            Orinda, California 94563, Suite B240
            Attn:  Craig Jorgens
            Fax No.:  (925)-253-4912

      With copies to:

            Davis Wright Tremaine LLP
            1300 SW Fifth Avenue, Suite 2300
            Portland, Oregon 97201-5682
            Attn:  Benjamin Wolff, Esq.
            Fax No.:  (503) 778-5299

      If to any Debtor:

            Globalstar, L.P.
            3200 Zanker Road
            San Jose, California  95134
            Attn: William Adler, Esq.
            Fax No.:  (408) 933-4950

      With copies to:

            Jones Day
            222 East 41st Street
            New York, New York  10017
            Attn:  Paul D. Leake, Esq.
            Fax No.:  (212) 755-7306

      and

            Akin Gump Strauss Hauer & Feld LLP
            590 Madison Avenue
            New York, New York  10022
            Attn:  Stephen B. Kuhn, Esq. and Daniel H. Golden, Esq.
            Fax No.:  (212) 872-1002

or to such other address as any party will specify by written notice so given,
and such notice will be deemed to have been delivered as of the date so
telecommunicated or delivered by hand or courier service.

            8.2 Assignment; Binding Effect. Neither this Agreement nor any of
the rights, interests or obligations hereunder will be assigned to a third party
by Investor or any Debtor (whether by operation of Law or otherwise) without the
prior written consent of the other; provided, however, Investor may assign this
Agreement or its rights or obligations hereunder to an Affiliate of Investor
without the

                                      -20-
<PAGE>
consent of the Debtors if Investor remains liable for its obligations under this
Agreement. Any assignment not made in accordance with the foregoing shall be
null and void. Subject to this Section 8.2, this Agreement will be binding upon
and will inure to the benefit of the parties hereto and their respective
successors and assigns. Notwithstanding anything contained in this Agreement to
the contrary, (a) the Debtors' obligations hereunder are subject to the approval
by the Bankruptcy Court of the transactions contemplated hereby and (b) except
for the provisions of Section 4.9 and Section 4.10, nothing in this Agreement,
expressed or implied, is intended to confer on any Person other than the parties
hereto or their respective heirs, successors, executors, administrators and
assigns any rights, remedies, obligations or liabilities under or by reason of
this Agreement.

            8.3 Entire Agreement. This Agreement, the Partnership Disclosure
Letter and the exhibits and schedules hereto, and any documents delivered by the
parties in connection herewith or therewith, and the Confidentiality Agreement,
constitute the entire agreement between the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings (both
written and oral) between the parties with respect thereto.

            8.4 Amendment. Subject to applicable Law, including the requirements
of the Bankruptcy Code and Orders of the Bankruptcy Court, this Agreement may
only be amended by an instrument in writing signed by each of the Debtors and
Investor.

            8.5 Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the State of Delaware, without regard to its
conflict of laws principles.

            8.6 Counterparts. This Agreement may be executed by the parties
hereto in any number of counterparts, each of which when so executed and
delivered will be an original, with the same effect as if the signature thereto
were upon the same instrument. Each counterpart may consist of a number of
copies hereof each signed by one, but together signed by both of the parties
hereto. A facsimile copy of a signature page shall be deemed to be an original
signature page.

            8.7 Headings. Headings of the Articles and Sections of this
Agreement are for the convenience of the parties only, and will be given no
substantive or interpretive effect whatsoever.

            8.8 Certain Definitions/Interpretations.

            (a) For purposes of this Agreement:

                  "Acquired Employees" has the meaning set forth in Section
      4.12;

                  "Affiliate" of any Person means any other Person that,
      directly or indirectly, through one or more intermediaries, controls, is
      controlled by, or is under common control with, such first Person; and,
      for the purposes of this definition only, "control" (including the terms
      "controlling", "controlled by" and "under common control with") means the
      possession, direct or indirect, of the power to direct or cause the
      direction of the management, policies or activities of a Person whether
      through the ownership of securities, by contract or agency or otherwise;
      provided that as such term is used in this Agreement, Investor shall not
      be included as an Affiliate of any Debtor;

                  "Affiliate Equity Sale" has the meaning set forth in
      Section 4.6(b);

                  "Agreement" has the meaning set forth in the introduction
      to this Agreement;

                                      -21-
<PAGE>
                  "Antitrust Division" has the meaning set forth in Section
      4.6(b);

                  "Applicable Foreign Authorities" has the meaning set forth in
      Section 2.4(b);

                  "Approval Order" means the order of the Bankruptcy Court
      approving this Agreement and the transactions contemplated herein pursuant
      to Section 363 of the Bankruptcy Code;

                  "Approved Budget" has the meaning set forth in the DIP
      Facility;

                  "Approved Post-Closing Budget" has the meaning set forth in
      Section 4.13.

                  "Assets" has the meaning set forth in Section 1.1;

                  "Assumed Liabilities" has the meaning set forth in Section
      1.3;

                  "Bankruptcy Code" has the meaning set forth in the
      introduction to this Agreement;

                  "Bankruptcy Court" has the meaning set forth in the
      introduction to this Agreement;

                  A Person will be deemed the "beneficial owner" of, and will be
      deemed to "beneficially own," and will be deemed to have "beneficial
      ownership" of:

                  (i) any securities that such Person or any of such Person's
            Affiliates is deemed to "beneficially own" within the meaning of
            Rule 13d-3 under the Exchange Act, as in effect on the date of this
            Agreement and any securities deposited into a trust established by
            the Person the sole beneficiaries of which are the shareholders of
            the Person;

                  (ii) any securities (the "underlying securities") that such
            Person or any of such Person's Affiliates has the right to acquire
            (whether such right is exercisable immediately or only after the
            passage of time) pursuant to any agreement, arrangement or
            understanding (written or oral), or upon the exercise of conversion
            rights, exchange rights, rights, warrants or options, or otherwise
            (it being understood that such Person will also be deemed to be the
            beneficial owner of the securities convertible into or exchangeable
            for the underlying securities); and

                  (iii) any securities beneficially owned by persons that are
            part of a "group" (within the meaning of Rule 13d-5(b) under the
            Exchange Act) with such Person;

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

                  "Business Day" means any day, other than a Saturday, Sunday or
      legal holiday (as defined in Rule 9006(a) of the Federal Rules of
      Bankruptcy Procedure);

                  "Bylaws" has the meaning set forth in Section 4.11;

                  "Cash Purchase Price" has the meaning set forth in Section
      1.6;

                                      -22-
<PAGE>
                  "Certificate of Incorporation" has the meaning set forth in
      Section 4.11;

                  "Change of Control" has the meaning set forth in the
      Certificate of Incorporation;

                  "Chapter 11 Cases" has the meaning set forth in the
      introduction to this Agreement;

                  "Claim" has the meaning as set forth in section 101(5) of
      the Bankruptcy Code;

                  "Class A Directors" shall have the meaning set forth in the
      Certificate of Incorporation.

                  "Class A Shares" has the meaning set forth in the
      introduction to this Agreement;

                  "Class B Shares" has the meaning set forth in the
      introduction to this Agreement;

                  "Closing" has the meaning set forth in Section 1.7;

                  "Closing Date" has the meaning set forth in Section 1.7;

                  "Commitment" shall have the meaning set forth in the DIP
      Facility;

                  "Confidentiality Agreement" means the confidentiality
      agreement, dated as of May 8, 2002, by and between the Partnership and
      Investor;

                  "Copyright Licenses" means any written agreement granting any
      right under any Copyright, including the grant of rights to copy, publicly
      perform, create derivative works, manufacture, distribute, exploit and
      sell material derived from any Copyright;

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

                  "Debtors" has the meaning set forth in the introduction to
      this Agreement;

                  "DIP Facility" has the meaning set forth in the
      introduction to this Agreement;

                  "Disclosure Statement" has the meaning set forth in the
      introduction to this Agreement;

                  "DoD" has the meaning set forth in Section 2.4(b);

                  "DoJ" has the meaning set forth in Section 2.4(b);

                  "Eligible Class A Holder" has the meaning set forth in
      Section 2.4(b);

                  "Event of Default" has the meaning set forth in the DIP
      Facility;

                  "Exchange Act" has the meaning set forth in Section 2.4(b);

                                      -23-
<PAGE>
                  "Excluded Assets" has the meaning set forth in Section 1.2;

                  "FBI" has the meaning set forth in Section 2.4(b);

                  "FCC" has the meaning set forth in Section 2.4(a);

                  "FCC Applications" has the meaning set forth in Section
      4.6(b);

                  "FTC" has the meaning set forth in Section 4.6(b);

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

                  "Governmental Entity" has the meaning set forth in Section
      2.4(b);

                  "HSR Act" has the meaning set forth in Section 2.4(b);

                  "Intellectual Property" means, collectively, all rights,
      priorities and privileges of relating to intellectual property, whether
      arising under United States, multinational or foreign laws or otherwise,
      including Copyrights, Copyright Licenses, Patents, Patent Licenses,
      Trademarks, Trademark Licenses and trade secrets, and all rights to sue at
      law or in equity for any infringement or other impairment thereof,
      including the right to receive all proceeds and damages therefrom;

                  "Investor" has the meaning set forth in the introduction to
      this Agreement;

                  "Investor DIP Lender" has the meaning set forth in the
      introduction to this Agreement;

                  "Investor Material Adverse Effect" means any change, effect,
      event or condition that has prevented or could reasonably be expected to
      prevent Investor's ability to consummate the transactions contemplated
      hereby;

                  "Investor Representative" has the meaning set forth in
      Section 2.10;

                  "Jefferies" has the meaning set forth in Section 2.10;

                  "Knowledge" means, with respect to any entity, the actual
      knowledge of such party after reasonable inquiry of such entity's
      executive officers;

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

                  "Liens" means liens, security interests, encumbrances,
      restrictions on voting or alienation or otherwise, or adverse interests;

                  "Loan Cancellation" has the meaning set forth in Section
      1.6;

                  "Loral" has the meaning set forth in Section 4.8;

                  "New Globalstar" has the meaning set forth in the
      introduction to this Agreement;

                                      -24-
<PAGE>
                  "Non-Debtor Entity" means any Subsidiary of the Partnership
      which is not a Debtor;

                  "Obligation" has the meaning set forth in the DIP Facility;

                  "Order" has the meaning set forth in Section 2.4;

                  "Original Class A Holder" has the meaning set forth in
      Section 4.10;

                  "Partnership" has the meaning set forth in the introduction
      to this Agreement;

                  "Partnership Disclosure Letter" means that certain letter
      dated the date of this Agreement from the Partnership to Investor that
      shall be arranged in paragraphs corresponding to the numbered paragraphs
      contained in Article II and the disclosure in any paragraph shall qualify
      (i) the corresponding paragraph of Article II and (ii) the other
      paragraphs of Article II only to the extent that it is clear from a
      reading of such disclosure that it also qualifies or applies to such other
      paragraphs;

                  "Partnership Material Adverse Effect" means any change,
      effect, event or condition that has had or could reasonably be expected to
      have a material adverse effect on (i) the assets or operations of the
      Partnership, and its Subsidiaries, taken as a whole, or (ii) the ability
      of the Debtors to consummate the transactions contemplated hereby;
      provided, however, that the loss of satellite availability shall not
      constitute a Partnership Material Adverse Effect unless, following the
      date of this Agreement, (A) one additional satellite in the Partnership's
      satellite constellation shall have been declared "failed" in addition to
      the existing four satellites that have been declared "failed" or (B) at
      any time, for a continuous period of 60 calendar days or more there shall
      have been fewer than 43 Qualifying Satellites in the Partnership's
      satellite constellation;

                  "Partnership Reports" means all forms, reports and documents
      filed by the Partnership with the SEC between January 1, 2002 and the
      Closing Date, in each case under Section 13 of the Exchange Act and the
      rules and regulations promulgated thereunder;

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

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

                  "Permitted Liens" means (i) Liens created pursuant to the DIP
      Facility; (ii) purchase money Liens upon or in any property acquired after
      the filing of the Chapter 11 Cases by any of the Debtors in the ordinary
      course of business to secure the purchase price of such property or to
      secure indebtedness incurred solely for the purpose of financing the
      acquisition of such property; (iii) any Lien securing the renewal,
      extension or refunding of any indebtedness or other obligation secured by
      any Lien permitted by the foregoing clause (ii) without any increase in
      the amount secured thereby or in the assets subject to such Lien; (iv)
      Liens arising by operation of Law in favor of materialmen, mechanics,
      warehousemen,

                                      -25-
<PAGE>
      carriers, lessors or other similar Persons incurred by any of Debtors in
      the ordinary course of business which secure its obligations to such
      Person; (v) Liens securing taxes, assessments or governmental charges or
      levies; (vi) Liens incurred in the ordinary course of business in
      connection with workers' compensation, unemployment insurance, old-age
      pensions and other social security benefits; (vii) Liens securing the
      performance of statutory obligations, surety and appeal bonds and other
      obligations of like nature, incurred as an incident to and in the ordinary
      course of business, and judgment liens; (viii) zoning restrictions,
      easements, licenses, reservations and similar restrictions on the use of
      real property or minor irregularities incident thereto which do not in the
      aggregate materially detract from the value or use of the property or
      assets of the Debtors or impair, in any manner, the use of such property
      for the purposes for which such property is held by the Debtors; and (ix)
      Liens created by New Globalstar; excluding, in each of clauses (i) through
      (ix), any Liens discharged or released as against the Assets as a result
      of the Approval Order;

                  "Person" means an individual, a corporation, a partnership, a
      limited liability company, a joint venture, an association, a trust, an
      unincorporated organization or any other entity;

                  "Post-Sale Relative Ownership" has the meaning set forth in
      Section 4.10;

                  "Pre-Closing Period" has the meaning set forth in Section
      4.2;

                  "Pre-Sale Relative Ownership" has the meaning set forth in
      Section 4.10;

                  "Priority Claims" has the meaning set forth in Section 4.8;

                  "QUALCOMM" means QUALCOMM Incorporated;

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

                  "Subsidiary" when used with respect to any party, means any
      corporation or other organization, whether incorporated or unincorporated,
      of which such party directly or indirectly owns or controls more than 50%
      of the securities or other interests having by their terms ordinary voting
      power to elect a majority of the board of directors or others performing
      similar functions;

                  "Trademarks" means (i) all trademarks, trade names, corporate
      names, company names, business names, fictitious business names, trade
      styles, service marks, logos and other source or business identifiers, and
      all goodwill associated therewith, now existing or hereafter adopted or
      acquired, all registrations and recordings thereof, and all applications
      in connection therewith, whether in the United States Patent and Trademark
      Office or in any similar office or agency of the United States, any State
      thereof or any other country or any political subdivision thereof, or
      otherwise, and all common-law rights related thereto, and (ii) the right
      to obtain all renewals thereof;

                  "Transfer Documents" has the meaning set forth in Section
      5.3(e)Trigger Event" has the meaning set forth in the Certificate of
      Incorporation;

                  "Wind-Down Funds" has the meaning set forth in the DIP
      Facility.

                                      -26-
<PAGE>
            (b) When a reference is made in this Agreement to an Article,
Section or Exhibit such reference will be to an Article or Section of, or an
Exhibit to, this Agreement unless otherwise indicated. Whenever the words
"include," "includes" or "including" are used in this Agreement, they will be
deemed to be followed by the words "without limitation." The words "hereof,"
"herein," "hereto" and "hereunder" and words of similar import when used in this
Agreement will refer to this Agreement as a whole and not to any particular
provision of this Agreement. All terms used herein with initial capital letters
have the meanings ascribed to them herein and all terms defined in this
Agreement will have such defined meanings when used in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. The
definitions contained in this Agreement are applicable to the singular as well
as the plural forms of such terms and to the masculine as well as to the
feminine and neuter genders of such term. Any agreement, instrument or statute
defined or referred to herein or in any agreement or instrument that is referred
to herein means such agreement, instrument or statute as from time to time
amended, modified or supplemented, including (in the case of agreements or
instruments) by waiver or consent and (in the case of statutes) by succession of
comparable successor statutes and references to all attachments thereto and
instruments incorporated therein. References to a Person include such Person's
permitted successors and assigns.

            8.9 Waivers. Except as provided in this Agreement, no action taken
pursuant to this Agreement, including any investigation by or on behalf of any
party, will be deemed to constitute a waiver by the party taking such action of
compliance with any representations, warranties, covenants or agreements
contained in this Agreement. The waiver by any party hereto of a breach of any
provision hereunder will not operate or be construed as a waiver of any prior or
subsequent breach of the same or any other provision hereunder. At any time
prior to the Closing, any party hereto may as to itself (a) extend the time for
the performance of any of the obligations or other acts of any of the other
parties hereto, (b) waive any inaccuracies in the representations and warranties
of any of the other parties contained herein or in any document delivered
pursuant hereto, and (c) waive compliance with any of the agreements or
conditions contained herein. Any such extension or waiver shall be valid only if
set forth in an instrument in writing signed by the party to be bound thereby.

            8.10 Jurisdiction; Consent to Service of Process.

            (a) Each party hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the Bankruptcy Court,
and any appellate court from such court, in any suit, action or proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby, or for recognition or enforcement of any judgment resulting from any
such suit, action or proceeding, and each party hereby irrevocably and
unconditionally agrees that all claims in respect of any such suit, action or
proceeding may be heard and determined in the Bankruptcy Court.

            (b) It will be a condition precedent to each party's right to bring
any such suit, action or proceeding that such suit, action or proceeding, in the
first instance, be brought in the Bankruptcy Court, and if each such court
refuses to accept jurisdiction with respect thereto, such suit, action or
proceeding may be brought in any other court with jurisdiction.

            (c) No party may move to (i) transfer any such suit, action or
proceeding from the Bankruptcy Court to another jurisdiction, (ii) consolidate
any such suit, action or proceeding brought in the Bankruptcy Court with a suit,
action or proceeding in another jurisdiction, or (iii) dismiss any such suit,
action or proceeding brought in the Bankruptcy Court for the purpose of bringing
the same in another jurisdiction.

            (d) Each party hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, (i) any objection that it
may now or hereafter have to the laying of

                                      -27-
<PAGE>
venue of any suit, action or proceeding arising out of or relating to this
Agreement in the Bankruptcy Court, (ii) the defense of an inconvenient forum to
the maintenance of such suit, action or proceeding in any such court, and (iii)
the right to object, with respect to such suit, action or proceeding, that such
court does not have jurisdiction over such party. Each party irrevocably
consents to service of process in any manner permitted by Law.

            8.11 Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any jurisdiction will, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision will be interpreted
to be only so broad as is enforceable.

            8.12 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF
OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

            8.13 No Strict Construction. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.

                  [Remainder of page intentionally left blank]

                                      -28-
<PAGE>
      IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute this Agreement and caused the same to duly deliver
this Agreement on their behalf on the day and year first written above.

                                    PARTNERSHIP
                                    GLOBALSTAR, L.P.

                                    By:    /s/ Anthony J. Navarra
                                    Name:  Anthony J. Navarra
                                    Title: President

                                    OTHER DEBTORS

                                    GLOBALSTAR CAPITAL CORPORATION

                                    By:    /s/ Anthony J. Navarra
                                    Name:  Anthony J. Navarra
                                    Title: President

                                    GLOBALSTAR SERVICES COMPANY, INC.

                                    By:    /s/ Anthony J. Navarra
                                    Name:  Anthony J. Navarra
                                    Title: President

                                    GLOBALSTAR, L.L.C.

                                    By:    /s/ Anthony J. Navarra
                                    Name:  Anthony J. Navarra
                                    Title: President

                                    INVESTOR

                                    ICO GLOBAL COMMUNICATIONS (HOLDINGS)
                                    LIMITED

                                    By:    /s/ Craig N. Jorgens
                                           Craig N. Jorgens, President

                                      -29-
<PAGE>
                                   EXHIBIT 1.2

                                 EXCLUDED ASSETS

      1. All causes of action arising under Chapter 5 of the Bankruptcy Code;
and

      2. All other claims, rights of setoff or recoupment or causes of action
other than (a) those relating to any executory contract or unexpired lease
included among the Assets and (b) those otherwise relating to the operation of
the respective businesses of the Debtors and arising in the ordinary course of
business following commencement of the Chapter 11 Cases and prior to the
Closing; provided, however, that to the extent that following the Closing the
Partnership, or New Globalstar on behalf of the Partnership, pays cash to the
Internal Revenue Service or any other taxing authority with respect to
allocations of income or gain or distributions to the Partnership's partners in
connection with any discharge of indebtedness in the Chapter 11 Cases or as a
result of the transactions contemplated by this Agreement, the Partnership will
transfer to New Globalstar the rights of the Partnership to recover such amounts
from its partners, but only to the extent of any amounts paid by New Globalstar
in respect of costs and expenses of the Debtors in accordance with Section 4.13
of this Agreement (including without limitation such amounts paid to the
Internal Revenue Service or any other taxing authority as contemplated by this
proviso).
<PAGE>
                                   EXHIBIT 1.3

                               ASSUMED LIABILITIES

      1. All liabilities and obligations of the Debtors under executory
contracts and unexpired leases included in the Assets and the allowed cure
Claims relating to such contracts and leases, in each case to the extent the
same remains unpaid or undischarged as of the Closing; and

      2. All liabilities and obligations of the Debtors relating to the
operation of their respective businesses and arising in the ordinary course of
the conduct of such businesses following commencement of the Chapter 11 Cases
and prior to the Closing (other than liabilities and obligations under executory
contracts and unexpired leases), in each case to the extent the same remains
unpaid or undischarged as of the Closing.

                                       ii

<PAGE>

                                  EXHIBIT 4.13

                               POST CLOSING BUDGET
                                ($ in Thousands)

<TABLE>
<S>                                                          <C>
     Convenience Claims & Distribution of Equity             $   400
     Employee Retention Plan                                   2,017
     Jefferies Fee                                             1,650
     GTL Liquidation Costs                                       100
     Indenture Trustee Fees                                      250
     Withholding Tax on COD Income                               400
     Trailing Legal Costs                                        500
     Other                                                       250
                                                             -------
Total Costs                                                  $ 5,567
</TABLE>

Notes

1)   Post closing budget assumes that the Disclosure Statement and Plan of
     Reorganization are filed and approved by the court prior to closing.

2)   Budget does not include cash settlement of professional and other fees
     related to the bankruptcy case that may have been incurred, but not
     settled, prior to closing.

3)   Disposition of the defined benefit pension plan may result in
     administrative claims, which have not been included in this budget. In no
     event shall this budget a include any costs or liabilities associated with
     any of the Debtors' defined benefit pension plans or arising upon
     termination of any plan., other than costs or liabilities acceptable to ICO
     in its sole discretion.

<PAGE>

                                   EXHIBIT A

                          CERTIFICATE OF INCORPORATION
                                       OF
                           NEW GLOBALSTAR CORPORATION

                                   ARTICLE I

         The name of the corporation is New Globalstar Corporation (the
"Corporation").

                                   ARTICLE II

         The address of the Corporation's registered office in the State of
Delaware is 2711 Centerville Road, Suite 400, City of Wilmington, County of New
Castle. The name of the Corporation's registered agent at such address is
Corporation Service Company.

                                  ARTICLE III

         The purpose of the Corporation is to engage in any lawful act or
activity for which corporations may be organized under the General Corporation
Law of the State of Delaware (the "DGCL").

                                   ARTICLE IV

         Section 1.        Authorized Capital Stock. The total number of shares
of capital stock that the Corporation is authorized to issue is 100,000,000
shares, initially consisting of 60,000,000 shares of Class A Common Stock, par
value $0.01 per share (the "Class A Common Stock"), 20,000,000 shares of Class B
Common Stock, par value $0.01 per share (the "Class B Common Stock"), and
20,000,000 shares of Preferred Stock, par value $0.01 per share (the "Preferred
Stock"). (The term "Common Stock" will mean the Class A Common Stock and Class B
Common Stock collectively).

         Section 2.        Common Stock.

                  (a)      Equality of Rights Generally. Each share of Class A
Common Stock and Class B Common Stock shall, except as otherwise provided in
this Certificate of Incorporation, be identical in all respects and shall have
equal rights, powers and privileges.

                  (b)      Voting Rights.

                           (i)      Except as may otherwise be provided in this
Certificate of Incorporation, holders of Class A Common Stock will be entitled
to one vote for each share of Class A Common Stock held of record on the
applicable record date, and holders of Class B Common Stock will be entitled to
3.407 votes for each share of Class B Common Stock held of record on the
applicable record date, on each matter submitted to a vote of stockholders,
voting together as a single class; and

                           (ii)     the holders of record of shares of Class A
Common Stock and the holders of record of Class B Common Stock shall each be
entitled to vote separately as a single class with respect to (A) any amendment
or repeal of any provision of, or the addition of any

<PAGE>

provision to, this Certificate of Incorporation that would adversely alter or
change the relative rights, powers or privileges of their respective class of
Common Stock, (B) matters specified in this Certificate of Incorporation as
requiring a separate vote by such holders, and (C) such other matters as require
a separate class vote under the DGCL.

                  (c)      Dividends.

                           (i)      Subject to Section 1 of Article IX, the
holders of the Common Stock shall be entitled to receive dividends at such times
and in such amounts as may be determined by the Board of Directors of the
Corporation (the "Board") and declared out of any funds lawfully available
therefor. Dividends on Common Stock declared payable from time to time by the
Board, whether payable in cash, property or shares of capital stock of the
Corporation, shall be paid equally, on a per share basis, to holders of Class A
Common Stock and holders of Class B Common Stock.

                           (ii)     Unless the holders of a majority of the
Class A Common Stock that are not Interested Stockholders, shall, voting as a
separate class, otherwise agree, in the case of any consolidation, merger,
recapitalization, reorganization or similar event: (i) the consideration payable
in respect of each share of Class A Common Stock shall be the same and (ii)
prior to the conversion of all shares of Class B Common Stock into shares of
Class A Common Stock, the consideration payable in respect of each share of
Class B Common Stock shall be the same as that payable in respect of each share
of Class A Common Stock. Notwithstanding the foregoing, if the consideration
payable in respect of shares of Class A Common Stock and Class B Common Stock
consists of securities, the securities issued to the holders of Class A Common
Stock and Class B Common Stock shall be identical in all respects, except that
the disproportionate voting power of the Class B Common Stock (i.e., each share
of Class B Common Stock is entitled to 3.407 votes per share versus 1 vote per
share with regard to a share of Class A Common stock) may be incorporated into
the terms of the securities issued to the holders of the Class B Common Stock.

                  (d)      Optional Conversion of Class B Common Stock. At any
time after the occurrence of a Conversion Event, each share of Class B Common
Stock shall be convertible at the option of the holder thereof into one fully
paid and nonassessable share of Class A Common Stock.

                           (i)      Mechanics of Conversion. In the event of the
optional conversion of any Class B Common Stock pursuant to Section 2(d) of
Article IV hereof, such holder shall surrender the certificate or certificates
therefor, duly endorsed, at the office of the Corporation or any transfer agent
of such stock, and shall deliver together therewith written notice of the
election to convert the same and shall state therein the name or names in which
the certificate or certificates for shares of Class A Common Stock are to be
issued. The Corporation shall, as soon as practical thereafter, issue and
deliver at such office to such holder or the nominee or nominees of such holder,
certificate or certificates for the number of shares of Class A Common Stock to
which such holder shall be entitled. Such conversion shall be deemed to have
been made immediately prior to the close of business on the date of such
surrender of the shares to be converted and the person or persons entitled to
receive the shares of Class A Common Stock

                                        2

<PAGE>

issuable on the conversion shall be treated for all purposes as the record
holder or holders of such shares of Class A Common Stock as of such date.

                           (ii)     Reservation of Class A Common Stock Issuable
upon Conversion. The Corporation shall at all times keep available out of its
authorized but unissued shares of Class A Common Stock, solely for the purpose
of effecting the conversion of the shares of Class B Common Stock, such number
of shares of Class A Common Stock as shall from time to time be sufficient to
effect the conversion of all of the outstanding shares of Class B Common Stock;
and if at any time the number of authorized but unissued shares of Class A
Common Stock shall not be sufficient to effect the conversion of all of the then
outstanding shares of Class B Common Stock, in addition to such other remedies
as may be available to the holders of such shares, the Corporation will take
such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Class A Common Stock to such
number of shares as shall be sufficient for such purposes, including, without
limitation, engaging in best efforts to obtain the requisite stockholder
approval of any necessary amendment to this Certificate of Incorporation.

         Section 3.        Preferred Stock. The Preferred Stock may be issued in
one or more series as may be determined by the Board. The Board is hereby
authorized to issue the shares of Preferred Stock and to fix from time to time
before issuance the number of shares to be included in any series and the
designation, relative powers, preferences and rights and qualifications,
limitations or restrictions of all shares of such series. The authority of the
Board with respect to each series will include, without limiting the generality
or effect of the foregoing, the determination of any or all of the following:

                  (a)      the number of shares of any series and the
designation to distinguish the shares of such series from the shares of all
other series;

                  (b)      the voting powers, if any, and whether the voting
powers are full or limited in such series;

                  (c)      the redemption provisions, if any, applicable to the
series, including the redemption price or prices to be paid;

                  (d)      whether dividends, if any, will be cumulative or
noncumulative, the dividend rate of the series and the dates and preferences of
dividends on such series;

                  (e)      the rights of the series upon the voluntary or
involuntary dissolution of, or upon any distribution of the assets of, the
Corporation;

                  (f)      the provisions, if any, pursuant to which the shares
of the series are convertible into, or exchangeable for, shares of any other
class or classes or of any other series of the same or any other class or
classes of stock, or any other security, of the Corporation or any other
corporation or other entity, and the price or prices or the rate or rates of
conversion or exchange applicable thereto;

                  (g)      the right, if any, to subscribe for or to purchase
any securities of the Corporation or any other corporation or other entity;

                                        3

<PAGE>

                  (h)      the provisions, if any, of a sinking fund applicable
to such series; and

                  (i)      any other relative, participating, optional or other
special powers, preferences, rights, qualifications, limitations or restrictions
thereof;

all as may be determined from time to time by the Board and stated in the
resolution or resolutions providing for the issuance of such Preferred Stock.

         Section 4.        Nonvoting Stock. The Corporation will not issue
nonvoting capital stock to the extent prohibited by Section 1123 of Title 11 of
the United States Code (the "Bankruptcy Code"); provided, however, that this
Section 4 of Article IV: (a) will have no further force and effect beyond that
required under Section 1123 of the Bankruptcy Code; (b) will have such force and
effect only for so long as Section 1123 of the Bankruptcy Code is in effect and
applicable to the Corporation; and (c) in all events may be amended or
eliminated in accordance with applicable law as from time to time in effect.

         Section 5.        Amendment, Repeal, Etc. Notwithstanding anything
contained in this Certificate of Incorporation to the contrary, the amendment or
repeal of, or the adoption of any provision inconsistent with, Sections 2 and 5
of this Article IV will require (i) the affirmative vote of the holders of
record of a majority of the issued and outstanding Class A Common Stock, voting
separately as a single class, and (ii) the affirmative vote of the holders of
record of a majority of the issued and outstanding Class B Common Stock, voting
separately as a single class.

                                    ARTICLE V

         Section 1.        Meetings of Stockholders.

                  (a)      Any action required or permitted to be taken by the
stockholders of the Corporation may be effected at a duly called annual or
special meeting of stockholders of the Corporation or may be effected by a
consent in writing of the stockholders.

                  (b)      Special meetings of the stockholders of the
Corporation may be called only by (i) the Chairman of the Board (the
"Chairman"), (ii) the Chief Executive Officer or (iii) the Secretary of the
Corporation within 10 calendar days after receipt of a written request of (A) a
majority of the total number of directors that the Corporation would have if
there were no vacancies (the "Whole Board"), (B) the holders of record of at
least 15% of the issued and outstanding Voting Stock (as herein defined) of the
Corporation, or (C) (1) a majority of the Class A Directors or (2) the holders
of at least 25% of the issued and outstanding Class A Common Stock or Class B
Common Stock.

         Section 2.        Amendment, Repeal, Etc. At any annual meeting or
special meeting of the stockholders of the Corporation, only such business will
be conducted or considered as has been brought before such meeting in the manner
provided in the Bylaws of the Corporation. Notwithstanding anything contained in
this Certificate of Incorporation to the contrary, the amendment or repeal of,
or the adoption of any provision inconsistent with this Article V will require
(a) the affirmative vote of the holders of record of a majority of the issued
and outstanding Class A Common Stock, voting separately as a single class, and
(b) the affirmative

                                        4

<PAGE>

vote of the holders of record of a majority of the issued and outstanding Class
B Common Stock, voting separately as a single class.

                                   ARTICLE VI

         Section 1.        Number, Voting Power, Election and Terms of
Directors.

                  (a)      General. Subject to Section 1(b) of this Article VI,
the number of the directors of the Corporation will be fixed from time to time
in the manner described in the Bylaws of the Corporation. Each director will
hold office until the next annual meeting of stockholders of the Corporation and
until such director's successor is elected and qualified or until such
director's earlier death, resignation or removal. Each director shall be
entitled to one vote on each matter submitted to the directors for a vote.
Election of directors of the Corporation need not be by written ballot unless
requested by the Chairman or by the holders of a majority of the Voting Stock
present in person or represented by proxy at a meeting of the stockholders at
which directors are to be elected. If authorized by the Board, such requirement
of written ballot shall be satisfied by a ballot submitted by electronic
transmission, provided that any such electronic transmission must either set
forth or be submitted with information from which it can be determined that the
electronic transmission was authorized by the stockholder or proxy holder.

                  (b)      Allocation of Director Seats. The number of directors
will be fixed at nine. The holders of shares of Class A Common Stock shall have
the right, voting separately as a single class at the annual meeting of
stockholders, to elect three directors (the "Class A Directors"); and the
holders of shares of Class B Common Stock shall have the right, voting
separately as a single class at the annual meeting of stockholders, to elect six
directors (the "Class B Directors"). The Class A Directors shall qualify as
Independent Directors until a Trigger Event. Commencing upon the occurrence of a
Trigger Event, the holders of shares of Class A Common Stock and the holders of
shares of Class B Common Stock shall vote together as a single class with
respect to all subsequent elections of the Class A Directors.

         Section 2.        Nomination of Director Candidates.  Advance notice of
stockholder nominations for the election of directors must be given in the
manner provided in the Bylaws of the Corporation.

         Section 3.        Newly Created Directorships and Vacancies. Any newly
created directorship resulting from any increase in the number of Class A
Directors and any vacancies of Class A Directors resulting from death,
resignation, disqualification, removal or other cause will be filled (a) prior
to a Trigger Event by (i) the affirmative vote of a majority of the remaining
Class A Directors then in office, even though less than a quorum of the Board,
(ii) the sole remaining Class A Director, (iii) if there are no remaining Class
A Directors, the affirmative vote of a majority of the Independent Directors, if
any, or (iv) if there are no remaining Independent Directors, the affirmative
vote of the holders of a majority of the votes attributable to the issued and
outstanding Class A Common Stock, excluding any such holder that is an
Interested Stockholder, at a meeting called for that purpose, and (b) following
a Trigger Event by (i) the affirmative vote of a majority of all of the
remaining directors then in office, even though less than a quorum of the Board,
(ii) the sole remaining director or (iii) the affirmative vote of the

                                        5

<PAGE>

holders of a majority of the votes attributable to the issued and outstanding
Class A Common Stock and Class B Common Stock voting together as a single class.
Any newly created directorships resulting from any increase in the number of
Class B Directors and any vacancies of Class B Directors resulting from death,
resignation, disqualification, removal or other cause will be filled by (a) the
affirmative vote of a majority of the remaining Class B Directors then in
office, even though less than a quorum of the Board, (b) the sole remaining
Class B Director, or (c) the affirmative vote of the holders of a majority of
the issued and outstanding Class B Common Stock, at a meeting called for that
purpose. Any director elected in accordance with the preceding sentence will
hold office until the next annual meeting of stockholders and until such
director's successor has been elected and qualified or until such director's
earlier death, resignation or removal. No decrease in the number of directors
constituting the Board may shorten the term of any incumbent director.

         Section 4.        Removal. Any director may be removed from office by
the stockholders only in the manner provided in this Section 4 of Article VI. At
any special meeting of the stockholders, the notice of which states that the
removal of a director or directors is among the purposes of the meeting, (a) (i)
prior to a Trigger Event the affirmative vote of the holders of at least 66 2/3%
of the issued and outstanding Class A Common Stock represented at such meeting,
excluding any such holder that is an Interested Stockholder, voting separately
as a single class, may remove such Class A Director or Directors, and (ii)
following a Trigger Event the affirmative vote of the holders of 66 2/3% of the
votes attributable to the Class A Common Stock and Class B Common Stock
represented at such meeting, voting together as a single class, may remove such
Class A Director or Directors, and (b) the affirmative vote of the holders of at
least 66 2/3% of the issued and outstanding Class B Common Stock represented at
such meeting, voting separately as a single class, may remove such Class B
Director or Directors.

         Section 5.        Executive Committee. There is hereby established an
executive committee (the "Executive Committee"), which shall consist of between
three and five members as determined by a majority of the Whole Board. The
members of the Executive Committee shall be designated by a majority of the
Class B Directors. The Executive Committee, together with the Board, shall,
pursuant to Section 141(a) of the DGCL, exercise the powers and duties conferred
and imposed upon the Board by the DGCL as provided for herein.

                  The Corporation shall not, directly or indirectly, and shall
not permit any of its subsidiaries to, directly or indirectly, take any of the
following actions without the approval of at least a majority of the members of
the Executive Committee:

                           (i)      adopt a new Business Plan, materially modify
the Business Plan or take any action that would constitute a material deviation
from the Business Plan;

                           (ii)     approve or recommend a Change of Control or
any public offering of the Corporation's Stock;

                           (iii)    acquire, by purchase, merger or otherwise,
in one transaction or a series of related transactions, any equity or other
ownership interest in, or assets of, any Person in exchange for consideration
with a fair market value greater than $5,000,000;

                                        6

<PAGE>

                           (iv)     authorize for issuance or issue any equity
securities or securities convertible into or exchangeable or exercisable for, or
which otherwise give the holder thereof, the right to acquire, any equity
securities of the Corporation in a single transaction or a series of related
transactions with a fair market value at the time of issuance in excess of
$5,000,000 (other than to directors, officers, employees and others in the
ordinary course of business pursuant to an employee stock purchase plan,
employee stock option plan or similar compensation plan approved by the Board,
or a committee thereof);

                           (v)      purchase, redeem, prepay, acquire or retire
for value any shares of its capital stock or securities exercisable for or
convertible into shares of its capital stock other than as required by the terms
of such capital stock or securities;

                           (vi)     declare, incur any liability to declare, or
pay, any dividends or make any distributions in respect of, any shares of its
capital stock other than as required under the terms of such capital stock;

                           (vii)    redeem, retire, defease, offer to purchase
or change any material term, condition or covenant in respect of outstanding
long-term Indebtedness of the Corporation other than as required under the terms
of such Indebtedness; or

                           (viii)   incur Indebtedness in a single transaction
or a series of related transactions in excess of $5,000,000 in aggregate
principal amount (other than intercompany Indebtedness and Indebtedness
outstanding as of the Effective Date (and borrowing pursuant to the terms
thereof), and any amendment or refinancing of such Indebtedness in a principal
amount not exceeding the principal amount so refinanced and on financial and
other terms no less favorable to the Corporation then such outstanding
Indebtedness).

         The Executive Committee shall have such other powers and perform such
other duties as may from time to time be assigned to it by the Board.

         Section 6.        Amendment, Repeal, Etc. Notwithstanding anything
contained in this Certificate of Incorporation to the contrary, the amendment or
repeal of, or the adoption of any provision inconsistent with, this Article VI
will require (a) prior to a Trigger Event (i) the affirmative vote of the
holders of record of a majority of the issued and outstanding Class A Common
Stock, excluding any such holder that is an Interested Stockholder, voting
separately as a single class, and (ii) the affirmative vote of the holders of
record of a majority of the issued and outstanding Class B Common Stock, voting
separately as a single class, and (b) following a Trigger Event the affirmative
vote of the holders of a majority of the votes attributable to the issued and
outstanding Class A Common Stock and Class B Common Stock voting together as a
single class. Notwithstanding the foregoing, prior to a Trigger Event, any
amendment or repeal of, or the adoption of any provision inconsistent with
Section 5 of this Article VI, shall not require the affirmative vote of the
holders of record of a majority of the issued and outstanding Class A Common
Stock, excluding any such holder that is an Interested Stockholder, voting
separately as a single class, unless such amendment, repeal or newly-adopted
provision would adversely alter or change the relative rights, powers or
privileges of the Class A Common Stock.

                                        7

<PAGE>

                                   ARTICLE VII

         To the fullest extent permitted by the DGCL or any other applicable law
currently or hereafter in effect, no director of the Corporation will be
personally liable to the Corporation or its stockholders for or with respect to
any acts or omissions in the performance of his or her duties as a director of
the Corporation. Any repeal or modification of this Article VII will not
adversely affect any right or protection of a director of the Corporation in
respect of any act or omission occurring in whole or in part prior to such
repeal or modification.

                                  ARTICLE VIII

         Section 1.        Right to Indemnification. Each individual who was or
is a party or is threatened to be made a party to or is otherwise involved in,
any action, suit or proceeding, whether pending or threatened, whether civil,
criminal, administrative or investigative and whether brought by or in the right
of the Corporation or otherwise (a "Proceeding"), by reason of the fact that
such individual is or was a director or officer of the Corporation, or is or was
a director or officer of the Corporation and is or was serving at the request of
the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise, (an "Indemnitee") shall be indemnified and held harmless by the
Corporation to the fullest extent permitted by the DGCL, as same exists or may
hereafter be amended (but, in the case of any such amendment, only to the extent
that such amendment permits the Corporation to provide broader indemnification
rights than such law permitted the Corporation to provide prior to such
amendment) against all expenses, liability and loss (including, without
limitation, attorneys' fees and expenses, judgments, fines, excise taxes or
penalties pursuant to the Employee Retirement Income Security Act of 1974, as
amended, and amounts paid in settlement) reasonably incurred or suffered by such
Indemnitee in connection therewith. The right to indemnification shall extend to
the heirs, executors, administrators and estate of any such director or officer.
The right to indemnification provided in this Article VIII: (a) will not be
exclusive of any other rights to which any individual seeking indemnification
may otherwise be entitled, including without limitation, pursuant to any
contract approved by a majority of the Whole Board (whether or not the directors
approving such contract are or are to be parties to such contract or similar
contracts); and (b) will be applicable to matters otherwise within its scope
whether or not such matters arose or arise before or after the adoption of this
Article VIII. Without limiting the generality or the effect of the foregoing,
the Corporation may adopt Bylaws, or enter into one or more agreements with any
individual, that provide for indemnification greater or otherwise different than
that provided in this Article VIII or the DGCL, and any such agreement approved
by a majority of the Whole Board will be a valid and binding obligation of the
Corporation regardless of whether one or more members of the Board, or all
members of the Board, are parties thereto or to similar agreements.
Notwithstanding anything to the contrary in this Article VIII, in the event that
the Corporation enters into a contract with any individual providing for
indemnification of such individual, the provisions of that contract will
exclusively govern the Corporation's obligations in respect of indemnification
for or advancement of fees or disbursements of that individual's attorney(s) and
any other professional engaged by that individual. Any amendment or repeal of,
or adoption of any provision inconsistent with, this Article VIII will not
adversely affect any right or protection existing hereunder, or arising out of
events occurring or circumstances existing, in whole or in part, prior to such
amendment, repeal or adoption, and no such amendment, repeal or adoption

                                        8

<PAGE>

will affect the legality, validity or enforceability of any contract entered
into or right granted prior to the effective date of such amendment, repeal or
adoption.

         Section 2.        Right to Advancement of Expenses. The right to
indemnification conferred in Section 1 of this Article VIII shall include the
right to be paid by the Corporation the expenses (including, without limitation,
attorneys' fees and expenses) reasonably incurred in defending any such
Proceeding in advance of its final disposition (an "Advancement of Expenses");
provided, however, that, if the DGCL so requires, an Advancement of Expenses
incurred by an Indemnitee in his or her capacity as a director or officer (and
not in any other capacity in which service was or is rendered by such
Indemnitee, including, without limitation, service to an employee benefit plan)
shall be made only upon delivery to the Corporation of an undertaking (an
"Undertaking"), by or on behalf of such Indemnitee, to repay all amounts so
advanced if it shall ultimately be determined by final judicial decision from
which there is no further right to appeal (a "Final Adjudication") that such
Indemnitee is not entitled to be indemnified for such expenses under this
Section 2 of Article VIII or otherwise. The rights to indemnification and to the
Advancement of Expenses conferred in Sections 1 and 2 of this Article VIII shall
be contract rights and such rights shall continue as to an Indemnitee who has
ceased to be a director or officer and shall inure to the benefit of the
Indemnitee's heirs, executors, administrators and estate.

         Section 3.        Right of Indemnitee to Bring Suit. If a claim under
Sections 1 and 2 of this Article VIII is not paid in full by the Corporation
within 60 calendar days after a written claim has been received by the
Corporation, except in the case of a claim for an Advancement of Expenses, in
which case the applicable period shall be 20 calendar days, the Indemnitee may
at any time thereafter bring suit against the Corporation to recover the unpaid
amount of the claim. If successful in whole or in part in any such suit, or in a
suit brought by the Corporation to recover an Advancement of Expenses pursuant
to the terms of an Undertaking, the Indemnitee shall be entitled to be paid also
the expense of prosecuting or defending such suit. In (a) any suit brought by
the Indemnitee to enforce a right to indemnification hereunder (but not in a
suit brought by the Indemnitee to enforce a right to an Advancement of Expenses)
it shall be a defense that, and (b) any suit brought by the Corporation it shall
be entitled to recover such expenses upon a Final Adjudication that, the
Indemnitee has not met any applicable standard for indemnification set forth in
the DGCL. Neither the failure of the Corporation (including the Board,
independent legal counsel or stockholders) to have made a determination prior to
the commencement of such suit that indemnification of the Indemnitee is proper
in the circumstances because the Indemnitee has met the applicable standard of
conduct set forth in the DGCL, nor an actual determination by the Corporation
(including the Board, independent legal counsel or stockholders) that the
Indemnitee has not met such applicable standard of conduct, shall create a
presumption that the Indemnitee has not met the applicable standard of conduct
or, in the case of such a suit brought by the Indemnitee, be a defense to such
suit. In any suit brought by the Indemnitee to enforce a right to
indemnification or to an Advancement of Expenses hereunder, or brought by the
Corporation to recover an Advancement of Expenses pursuant to the terms of an
Undertaking, the burden of proving that the Indemnitee is not entitled to be
indemnified, or to such Advancement of Expenses, under this Article VIII or
otherwise shall be on the Corporation.

                                        9

<PAGE>

         Section 4.        Non-Exclusivity of Rights. The rights to
indemnification and to the Advancement of Expenses conferred in this Article
VIII shall not be exclusive of any other right which any individual may have or
hereafter acquire under any statute, this Certificate of Incorporation, the
Bylaws of the Corporation, any agreement, any vote of stockholders or
disinterested directors, or otherwise.

         Section 5.        Insurance. The Corporation may maintain insurance, at
its expense, to protect itself and any director, manager, trustee, officer,
employee or agent of the Corporation or another corporation, partnership, joint
venture, trust or other enterprise against any expenses, liability or loss,
whether or not the Corporation would have the power to indemnify such individual
against such expense, liability or loss under the DGCL.

         Section 6.        Indemnification of Employees and Agents of the
Corporation. The Corporation may, to the extent authorized from time to time by
the Board, grant rights to indemnification and to the Advancement of Expenses to
any employee or agent of the Corporation to the fullest extent of the provisions
of this Article VIII with respect to the indemnification and Advancement of
Expenses of directors and officers of the Corporation.

                                   ARTICLE IX

         Section 1.        Limitation on Payment of Dividends. Prior to the
earliest to occur of (i) the second anniversary of the date on which the
Corporation acquired the assets of Globalstar L.P. (the "Effective Date"), (ii)
the first date after the Effective Date on which the Corporation has, taking
into account all expenditures by the Corporation from and after the Effective
Date, expended an amount of cash equal to the amount of cash held by the
Corporation on the Effective Date after giving effect to the acquisition of the
assets of Globalstar, L.P., on the Effective Date and (iii) the last day of the
first fiscal quarter after the Effective Date for which the Corporation has
gross revenues in excess of expenses, no cash will be distributed to the
stockholders of the Corporation, as such, without the affirmative vote of a
majority of the Independent Directors (as herein defined).

         Section 2.        Certain Related Party Transactions.

                  (a)      The Corporation shall not enter into any transaction
with or involving an Interested Stockholder (as herein defined) or an Affiliate
of an Interested Stockholder including, but not limited to, any transaction
involving (i) the redemption of Class B Common Stock, (ii) the issuance of Stock
to an Interested Stockholder or its Affiliate, or (iii) the pledge of any assets
of the Corporation as collateral for an obligation, in whole or in part, of an
Interested Stockholder or its Affiliate (a "Related Party Transaction"), unless
such Related Party Transaction has been approved by the affirmative vote of a
majority of the Independent Directors, including at least one Class A Director.
The Independent Directors may, at the Corporation's expense, retain separate
legal counsel and financial advisors, to the extent they deem either necessary
or appropriate, to represent them in connection with the negotiation and
consummation of any such Related Party Transaction. Notwithstanding the
foregoing, the Corporation may enter into a Related Party Transaction without
the approval of a majority of the Independent Directors if (x) a majority of the
Whole Board, including at least one Class A Director, affirmatively determines
that such Related Party Transaction is being effected on terms

                                       10

<PAGE>

no less favorable to the Corporation than would be obtainable in an arm's-length
transaction with an unrelated third party or (y) such Related Party Transaction
involves less than $1,000,000 in a single transaction or series of related
transactions.

                  (b)      Notwithstanding anything to the contrary in Article
IX, Section 2(a), the Corporation shall not enter into a Related Party
Transaction that is a merger or other business combination (a "Related Party
Merger") unless: (i) a majority of the Independent Directors vote in favor of
the Related Party Merger, which vote need not include a Class A Director, (ii)
the Corporation has received an opinion of a nationally recognized investment
banking firm that such Related Party Merger is fair to the stockholders of the
Corporation other than the Interested Stockholder from a financial point of view
and (iii) the Related Party Merger is approved by an affirmative vote of the
holders of a majority of the issued and outstanding Class A Common Stock,
excluding any such holder that is an Interested Stockholder, represented at a
meeting of the stockholders called for the purpose of approving the Related
Party Merger.

                  (c)      The Corporation expressly elects not to be governed
by Section 203(a) of Title 8 of the DGCL.

         Section 3.        Definitions. As used in this Certificate of
Incorporation, the term:

                  (a)      "Affiliate" means a Person that directly, or
indirectly through one of more intermediaries, controls, or is controlled by, or
is under common control with, another Person.

                  (b)      "Business Plan" means the business plan of the
Corporation, as approved a majority of the Whole Board, and as the same may be
amended and approved from time to time by a majority of the Whole Board.

                  (c)      "Control," including the terms "controlling,"
"controlled by" and "under common control with," means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of Voting Stock, by
contract or otherwise.

                  (d)      "Change of Control" means (i) an acquisition of the
Corporation by another entity other than an Affiliate of the Corporation, which
includes any Interested Stockholder, by means of a merger, consolidation, or
other transaction or series of related transactions resulting in the exchange of
the outstanding shares of the Corporation's capital stock such that the
stockholders of the Corporation prior to such transaction own, directly or
indirectly, less than 50% of the voting power of the surviving entity, or (ii) a
sale or transfer of all or substantially all of the Corporation's assets to any
Person that is not an Affiliate of the Corporation, which includes any
Interested Stockholder.

                  (e)      "Conversion Event" means the earliest to occur of (i)
a Change of Control, (ii) the consummation of an underwritten public offering of
the Corporation's Stock that results in net proceeds to the Corporation (after
deducting applicable underwriting discounts and commissions) of not less than
$25 million in the aggregate (excluding sales in the offering to an Affiliate of
the Corporation, which includes an Interested Stockholder) and (iii) the second
anniversary of the Effective Date.

                                       11

<PAGE>

                  (f)      "Indebtedness" means, with respect to any Person, at
any time, without duplication, (a) its liabilities for borrowed money; (b) its
liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but
including all liabilities created or arising under any conditional sale or other
title retention agreement with respect to any such property); (c) all
liabilities appearing on its balance sheet in accordance with generally accepted
accounting principles in respect of capital leases; (d) all liabilities for
borrowed money secured by any Encumbrance with respect to any property owned by
such Person (whether or not it has assumed or otherwise become liable for such
liabilities); (e) all its liabilities in respect of letters of credit or
instruments serving a similar function issued or accepted for its account by
banks and other financial institutions (whether or not representing obligations
for borrowed money); and (f) any guaranty of such Person with respect to
liabilities of a type described in any of clauses (a) through (e) hereof.

                  (g)      "Independent Director" means a director of the
Corporation other than (x) an officer or employee of (I) the Corporation or any
of its Affiliates or (II) an Interested Stockholder or (y) any other individual
having a relationship which, in the opinion of the Whole Board, would interfere
with the exercise of independent judgment with respect to the action to be
taken. Any of the following individuals shall not be considered to be an
Independent Director:

                           (i)      a director who is employed by the
Corporation or any of its Affiliates, or an Interested Stockholder, for the
current year or any of the past three years;

                           (ii)     a director who accepts any compensation from
an Interested Stockholder in excess of $60,000 (including political
contributions) during the previous fiscal year (including the receipt of
payments by a non-employee family member of the director), other than
compensation for board services;

                           (iii)    a director who is a member of the Immediate
Family of an individual who is, or has been in any of the past three years,
employed by the Corporation or any of its Affiliates, or an Interested
Stockholder, as an executive officer ("Immediate Family" includes an
individual's spouse, parents, children, siblings, mother-in-law, father-in-law,
brother-in-law, sister-in-law, daughter-in-law and anyone who resides in such
individual's home);

                           (iv)     a director who is a partner in, or an
Affiliate of, or an executive officer or employee of, any for-profit business
organization to which an Interested Stockholder or the Corporation or any of its
Affiliates has made payments (other than those arising solely from investments
in securities) that exceed 5% of the business organization's consolidated gross
revenues for that year or $200,000, whichever is more, in any of the past three
years;

                           (v)      a director who is a partner in, or an
Affiliate of, or an executive officer or employee of, any for-profit business
organization from which the Interested Stockholder or the Corporation or any of
its Affiliates received payments (other than those arising solely from
investments in securities) that exceed 5% of the consolidated gross revenues of
the Interested Stockholder or $200,000, whichever is more, in any of the past
three years; or

                                       12

<PAGE>

                           (vi)     a director who is employed as an executive
officer of another entity where any of the Corporation's executive officers or
an Interested Stockholder's executive officers serve on that entity's
compensation committee.

                  (h)      "Interested Stockholder" means (i) any Person (other
than the Corporation and any direct or indirect majority-owned subsidiary of the
Corporation) that is the Owner of shares having the right to vote more than 50%
of the aggregate votes attributable to the Voting Stock, and (ii) the Affiliates
of any Person determined to be an Interested Stockholder under clause (i) of
this Section 3(h).

                  (i)      "Person" means any individual, corporation, limited
liability company, partnership, trust, estate, unincorporated association or
other entity.

                  (j)      "Stock" means, with respect to any corporation,
capital stock and, with respect to any other entity, any equity interest.

                  (k)      "Trigger Event" means the earlier to occur of (i) a
Change of Control and (ii) the later of (x) the consummation of an underwritten
public offering of the Corporation's Common Stock that results in net proceeds
to the Corporation (after deducting applicable underwriting discounts and
commissions) of not less than $25 million in the aggregate (excluding sales in
the offering to an Affiliate of the Corporation, which includes an Interested
Stockholder) and (y) the second anniversary of the Effective Date.

                  (l)      "Voting Stock" means, with respect to any
corporation, Stock of any class or series entitled to vote generally in the
election of directors and, with respect to any entity that is not a corporation,
any equity interest entitled to vote generally in the election of the governing
body of such entity, including, without limitation, the Class A Common Stock and
the Class B Common Stock.

                  (m)      "Owner," including the terms "Own" and "Owned," when
used with respect to any Stock, means a Person that individually or with or
through any of its Affiliates:

                           (i)      beneficially owns such Stock, directly or
indirectly;

                           (ii)     has (A) the right to acquire beneficial
ownership of such Stock (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or
understanding, or upon the exercise of conversion rights, warrants or options,
or otherwise; provided, however, that a Person shall not be deemed the Owner of
Stock tendered pursuant to a tender or exchange offer made by such Person or any
of such Person's Affiliates until such tendered Stock is accepted for purchase
or exchange; or (B) the right to vote such Stock pursuant to any agreement,
arrangement or understanding; provided, however, that a Person shall not be
deemed the Owner of any Stock because of such Person's right to vote such Stock
if the agreement, arrangement or understanding to vote such Stock arises solely
from a revocable proxy or consent given in response to a proxy or consent
solicitation made to all holders of a class or series of such Stock; or

                           (iii)    has any agreement, arrangement or
understanding for the purpose of acquiring, holding, voting (except voting
pursuant to a revocable proxy or consent as

                                       13

<PAGE>

described in clause (B) of Section 2(m)(ii) of this Article IX) or disposing of
such Stock with any Person that beneficially owns, or whose Affiliates
beneficially own, directly or indirectly, such Stock.

         Section 4.        Amendment, Repeal, Etc. Notwithstanding anything
contained in this Certificate of Incorporation to the contrary, the amendment or
repeal of, or the adoption of any provision in a manner inconsistent with, this
Article IX will (a) prior to a Trigger Event require (i) the affirmative vote of
the holders of record of a majority of the issued and outstanding Class A Common
Stock excluding any such holder that is an Interested Stockholder, voting
separately as a single class, and (ii) the affirmative vote of the holders of a
majority of the issued and outstanding Class B Common Stock, voting separately
as a single class, and (b) following a Trigger Event the affirmative vote of the
holders of record of a majority of the votes attributable to the issued and
outstanding Class A Common Stock and Class B Common Stock voting together as a
single class. The amendment or repeal of, or the adoption of any provision in a
manner inconsistent with, this Article IX, and adverse to the interests of any
Interested Stockholder or any of its Affiliates (as determined by the Class B
Directors) will require the affirmative vote of the holders of a majority of the
issued and outstanding Class B Common Stock, voting separately as a single
class.

                                    ARTICLE X

         Section 1.        Bylaws. The Board may make, amend and repeal the
Bylaws of the Corporation. Any Bylaw made by the Board under the powers
conferred hereby may be amended or repealed by the Board (except as specified in
any such Bylaw) or by the stockholders in the manner provided in the Bylaws of
the Corporation. Notwithstanding the foregoing and anything contained in this
Certificate of Incorporation to the contrary, Bylaws 2.2, 2.5, 2.6, 3.2, 3.3,
3.5, 3.12, 3.14 and 7.3 may not be amended or repealed, and no provision
inconsistent therewith may be adopted, without (a) prior to a Trigger Event (i)
the approval of a majority of the Class A Directors or (ii) the affirmative vote
of the holders of record of a majority of the issued and outstanding Class A
Common Stock, excluding any such holder that is an Interested Stockholder,
voting separately as a single class, and (b) following a Trigger Event (i) the
affirmative vote of a majority of the Whole Board or (ii) the affirmative vote
of the holders of record of a majority of the votes attributable to the issued
and outstanding Class A Common Stock and Class B Common Stock voting together as
a single class. The Corporation may in its Bylaws confer powers upon the Board
in addition to the foregoing and in addition to the powers and authorities
expressly conferred upon the Board by applicable law.

         Section 2.        Amendment, Repeal, Etc. Notwithstanding anything
contained in this Certificate of Incorporation to the contrary, the amendment or
repeal of, or the adoption of any provision inconsistent with, this Article X
will (a) prior to a Trigger Event require (i) the affirmative vote of the
holders of record of a majority of the issued and outstanding Class A Common
Stock, excluding any such holder that is an Interested Stockholder, voting
separately as a single class, and (ii) the affirmative vote of the holders of a
majority of the issued and outstanding Class B Common Stock, voting separately
as a single class, and (b) following a Trigger Event the affirmative vote of the
holders of record of a majority of the votes attributable to the issued and
outstanding Class A Common Stock and Class B Common Stock voting together as a
single class.

                                       14

<PAGE>

                                   ARTICLE XI

         The name and mailing address of the incorporator of the Corporation is:

                           Benjamin Wolff
                           1501 Fourth Avenue, Suite 2600
                           Seattle WA 98101-1688

         IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of May,
2003.

                                       ________________________________
                                       Benjamin Wolff, Incorporator

                                       15

<PAGE>

                                   EXHIBIT B

================================================================================

                                     BYLAWS

                                       OF

                           NEW GLOBALSTAR CORPORATION

               As Adopted and in Effect as of __________ __, 2003

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                   <C>
ARTICLE I             OFFICES...................................................................................       1

         SECTION 1.1           Registered Office................................................................       1

         SECTION 1.2           Other Offices....................................................................       1

ARTICLE II            MEETINGS OF STOCKHOLDERS..................................................................       1

         SECTION 2.1           Annual Meetings..................................................................       1

         SECTION 2.2           Special Meetings.................................................................       1

         SECTION 2.3           Place of Meetings................................................................       2

         SECTION 2.4           Notice of Meetings...............................................................       2

         SECTION 2.5           Quorum...........................................................................       2

         SECTION 2.6           Voting...........................................................................       2

         SECTION 2.7           List of Stockholders.............................................................       3

         SECTION 2.8           Inspectors of Election...........................................................       3

         SECTION 2.9           Order of Business................................................................       3

         SECTION 2.10          Action Without Meeting...........................................................       5

ARTICLE III           BOARD OF DIRECTORS........................................................................       5

         SECTION 3.1           General Powers...................................................................       5

         SECTION 3.2           Number and Term of Office........................................................       6

         SECTION 3.3           Nomination of Directors; Election................................................       6

         SECTION 3.4           Resignations.....................................................................       7

         SECTION 3.5           Newly Created Directorships and Vacancies........................................       7

         SECTION 3.6           Place of Meeting, Etc............................................................       8

         SECTION 3.7           Regular Meeting..................................................................       8

         SECTION 3.8           Special Meetings.................................................................       8

         SECTION 3.9           Quorum and Manner of Acting......................................................       8

         SECTION 3.10          Participation in Meetings by Remote Communications...............................       8

         SECTION 3.11          Action by Consent................................................................       8

         SECTION 3.12          Removal of Directors.............................................................       9

         SECTION 3.13          Compensation.....................................................................       9

         SECTION 3.14          Committees.......................................................................       9

ARTICLE IV            OFFICERS..................................................................................      10

         SECTION 4.1           Generally........................................................................      10

         SECTION 4.2           Compensation.....................................................................      10
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         SECTION 4.3           Succession.......................................................................      10

         SECTION 4.4           Authority and Duties.............................................................      10

ARTICLE V             STOCK.....................................................................................      10

         SECTION 5.1           Certificates.....................................................................      10

         SECTION 5.2           Classes of Stock.................................................................      11

         SECTION 5.3           Lost, Stolen, or Destroyed Certificates..........................................      11

         SECTION 5.4           Record Dates.....................................................................      11

ARTICLE VI            NOTICES...................................................................................      11

         SECTION 6.1           Generally........................................................................      11

         SECTION 6.2           Waivers..........................................................................      12

ARTICLE VII           MISCELLANEOUS.............................................................................      12

         SECTION 7.1           Fiscal Year......................................................................      12

         SECTION 7.2           Seal.............................................................................      12

         SECTION 7.3           Amendments.......................................................................      12

         SECTION 7.4           Pronouns.........................................................................      13

         SECTION 7.5           Certain Defined Terms............................................................      13
</TABLE>

                                      -ii-

<PAGE>

                                     BYLAWS
                                       OF
                           NEW GLOBALSTAR CORPORATION
                            (A DELAWARE CORPORATION)

                                    ARTICLE I
                                     OFFICES

         SECTION 1.1       Registered Office. The registered office of New
Globalstar Corporation (hereinafter called the Corporation) in the State of
Delaware shall be at Corporation Service Company, 2711 Centerville Road, Suite
400, City of Wilmington, County of New Castle, and the name of the registered
agent in charge thereof shall be Corporation Service Company.

         SECTION 1.2       Other Offices. The Corporation may also have an
office or offices at such other place or places, within or outside of the State
of Delaware, as the Board of Directors of the Corporation (the "Board") may from
time to time determine or as the business of the Corporation may require.

                                   ARTICLE II
                            MEETINGS OF STOCKHOLDERS

         SECTION 2.1       Annual Meetings. Commencing with the year 2004,
annual meetings of the stockholders of the Corporation for the purpose of
electing directors and for the transaction of such other proper business as may
come before such meetings will be held at such time, date and place as the Board
shall determine by resolution.

         SECTION 2.2       Special Meetings. (a) Special meetings of the
stockholders may be called only by (i) the Chairman of the Board (the
"Chairman"), (ii) the Chief Executive Officer, (iii) the Secretary of the
Corporation within 10 calendar days after receipt of the written request of (A)
a majority of the Whole Board, (B) the holders of record of at least 15% of the
issued and outstanding Voting Stock of the Corporation or (C) (1) a majority of
the Class A Directors or (2) the holders of record of at least 25% of the issued
and outstanding Class A Common Stock or Class B Common Stock. Any such request
by a majority of the Whole Board or a majority of the Class A Directors must be
sent to the Chairman and the Secretary and must state the purpose or purposes of
the proposed meeting.

                  (b)      Upon the receipt by the Corporation of a written
request executed by the holders of record at least 15% of the issued and
outstanding Voting Stock or, the holders of record of at least 25% of the issued
and outstanding Class A Common Stock (a "Meeting Request"), the Secretary will
(i) call a special meeting of the stockholders for the purposes specified in the
Meeting Request and (ii) fix a record date for the determination of stockholders
entitled to notice of and to vote at such meeting, which record date will not be
later than 60 calendar days after the date of receipt by the Corporation of the
Meeting Request; provided, however, that no separate special meeting of
stockholders requested pursuant to a Meeting Request will be required to be
convened if (A) the Board calls an annual or special meeting of

                                       1

<PAGE>

stockholders to be held not later than 90 calendar days after receipt of such
Meeting Request and (B) the purposes of such annual or special meeting include
(among any other matters properly brought before the meeting) the purposes
specified in such Meeting Request.

         SECTION 2.3       Place of Meetings. All meetings of the stockholders
shall be held at such places, within or outside of the State of Delaware, as may
from time to time be designated by the Board, the Chairman, the President or the
Secretary and specified in the respective notices or waivers of notice thereof.
Notwithstanding the foregoing, the Board may, in its sole discretion, determine
that meetings of the stockholders shall not be held at any place, but may
instead be held by means of remote communication, subject to such guidelines and
procedures as the Board may adopt from time to time. The Board may postpone and
reschedule any previously scheduled annual or special meeting of the
stockholders.

         SECTION 2.4       Notice of Meetings. Except as otherwise provided
herein or required by law, written notice of each meeting of the stockholders,
whether annual or special, stating the place, if any, date and time thereof,
means of remote communications, if any, by which stockholders and proxy holders
may be deemed to be present in person and vote at such meeting, and, in the case
of a special meeting, stating the purpose or purposes for which the meeting is
called, will be given not less than 10 nor more than 60 calendar days before the
date of the meeting to each stockholder of record entitled to vote at such
meeting.

         SECTION 2.5       Quorum. The holders of record of a majority of the
stock issued and outstanding and entitled to be voted at a meeting of
stockholders, present in person or by proxy or otherwise participating in such
meeting, will constitute a quorum for the transaction of business at any meeting
of the stockholders of the Corporation or any adjournment thereof. In the
absence of a quorum at any meeting or any adjournment thereof, the stockholders
present in person or by proxy or otherwise participating in such meeting and
entitled to vote thereat will have the power to adjourn such meeting from time
to time, without notice other than announcement at the meeting, provided that
the adjournment is for less than 30 calendar days, until a quorum is present or
represented. At any such adjourned meeting at which a quorum is present any
business may be transacted which might have been transacted at the meeting as
originally called. Where a separate vote of a class or classes is required with
respect to a matter, a majority of the outstanding shares of each such
respective class or classes, present in person or by proxy or otherwise
participating in a meeting, will constitute a quorum entitled to take action
with respect to the vote on such matter.

         SECTION 2.6       Voting. Except as otherwise provided by law, or by
the Certificate of Incorporation of the Corporation (the "Certificate of
Incorporation"), each stockholder will be entitled at every meeting of the
stockholders to one vote for each share of stock having voting power standing in
the name of such stockholder on the books of the Corporation on the record date
for the meeting and such votes may be cast either in person or by proxy. Every
proxy must be in a form permitted by Section 212 of the General Corporation Law
of the State of Delaware (or any successor provision). Without affecting any
vote previously taken, a stockholder may revoke any proxy that is not
irrevocable by attending the meeting and voting in person, by revoking the proxy
by giving notice to the Secretary of the Corporation, or by a later appointment
of a proxy. The vote upon any question brought before a meeting of these
stockholders may be by voice vote, unless otherwise required by the Certificate
of Incorporation

                                       2

<PAGE>

or these Bylaws or unless the Chairman or the holders of a majority of the
outstanding shares of all classes of stock entitled to vote thereon present in
person or by proxy at such meeting otherwise determine. Every vote taken by
written ballot will be counted by the inspectors of election. When a quorum is
present at any meeting, the affirmative vote of the holders of a majority of the
stock present in person or represented by proxy at the meeting and entitled to
vote on the subject matter and which has actually been voted will be the act of
the stockholders, except in the election of directors or as otherwise provided
in these Bylaws, the Certificate of Incorporation, provided, however, that where
a separate vote of a class or classes is required, and provided that a quorum of
such class or classes is present at any meeting, corporate action to be taken by
such class or classes shall be authorized by a majority of the votes (assigned
under the Certificate of Incorporation to the shares of the Corporation
represented in person or by proxy at the meeting and entitled to vote) cast by
such class or classes. Directors shall be elected at each annual meeting of
stockholders by a plurality of the votes (assigned under the Certificate of
Incorporation to the shares of the Corporation represented in person or by proxy
at the meeting and entitled to vote) cast by the stockholders entitled to vote
and present in person or represented by proxy at the meeting.

         SECTION 2.7       List of Stockholders. The Secretary of the
Corporation shall prepare and make, at least 10 calendar days before every
meeting of stockholders, a complete list of the stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each stockholder.
Such list shall be open to the examination of any stockholder, for any purpose
germane to the meeting, during ordinary business hours, for a period of at least
10 calendar days prior to the meeting, either at a place within the city where
the meeting is to be held, which place shall be specified in the notice of the
meeting, or, if not so specified, at the place where the meeting is to be held.
The list shall also be produced and kept at the time and place of the meeting
during the whole time thereof, and may be inspected by any stockholder who is
present.

         SECTION 2.8       Inspectors of Election. The Board may appoint one or
more inspectors of election to act as judges of the voting and to determine
those entitled to vote at any meeting of the stockholders, or any adjournment
thereof, in advance of such meeting. The Board may designate one or more persons
as alternate inspectors of election to replace any inspector of election who
fails to act. If no inspector of election or alternate is able to act at a
meeting of stockholders, the presiding officer of the meeting may appoint one or
more substitute inspectors of election.

         SECTION 2.9       Order of Business. (a) The Chairman, or such other
officer of the Corporation designated by a majority of the Whole Board, will
call meetings of the stockholders to order and will act as presiding officer
thereof. Unless otherwise determined by the Board prior to the meeting, the
presiding officer of the meeting of the stockholders will also determine the
order of business and have the authority in good faith to regulate the conduct
of any such meeting, including without limitation by imposing restrictions on
the persons (other than stockholders of the Corporation or their duly appointed
proxies) who may attend any such stockholders' meeting, by ascertaining whether
any stockholder or his proxy may be excluded from any meeting of the
stockholders based upon any determination by the presiding officer, in good
faith, that any such person has unduly disrupted or is likely to disrupt the
proceedings

                                       3

<PAGE>

thereat and by determining the circumstances in which any person may make a
statement or ask questions at any meeting of the stockholders.

                  (b)      At an annual meeting of the stockholders, only such
business will be conducted or considered as is properly brought before the
meeting. To be properly brought before an annual meeting, business must be (i)
specified in the notice of meeting (or any supplement thereto) given by or at
the direction of the Board in accordance with Bylaw 2.4, (ii) otherwise properly
brought before the meeting by the presiding officer or by or at the direction of
a majority of the Whole Board, or (iii) otherwise properly requested to be
brought before the meeting by a stockholder of the Corporation in accordance
with Bylaw 2.9(c).

                  (c)      For business to be properly requested by a
stockholder to be brought before an annual meeting, (i) the stockholder must be
a stockholder of the Corporation of record at the time of the giving of the
notice for such annual meeting provided for in these Bylaws, (ii) the
stockholder must be entitled to vote at such meeting, and (iii) the stockholder
must have given timely notice thereof in writing to the Secretary. To be timely,
a stockholder's notice must be delivered to or mailed and received at the
principal executive offices of the Corporation not less than 60 nor more than 90
calendar days prior to the first anniversary of the date on which the
Corporation first mailed its proxy materials for the preceding year's annual
meeting of stockholders; provided, however, that if there was no annual meeting
held during the prior year or if the date of the annual meeting is advanced more
than 30 calendar days prior to or delayed by more than 30 calendar days after
the anniversary of the preceding year's annual meeting, notice by the
stockholder to be timely must be so delivered not later than the close of
business on the later of the 90th calendar day prior to such annual meeting or
the 10th calendar day following the day on which public announcement of the date
of such meeting is first made. In no event shall the public announcement of an
adjournment of an annual meeting commence a new time period for the giving of a
stockholder's notice as described above. A stockholder's notice to the Secretary
must set forth as to each matter the stockholder proposes to bring before the
annual meeting (A) a description in reasonable detail of the business desired to
brought before the annual meeting and the reasons for conducting such business
at the annual meeting, (B) the name and address, as they appear on the
Corporation's books, of the stockholder proposing such business and the
beneficial owner, if any, on whose behalf the proposal is made, (C) the class
and number of shares of the Corporation that are owned beneficially and of
record by the stockholder proposing such business and by the beneficial owner,
if any, on whose behalf the proposal is made, (D) any material interest of such
stockholder proposing such business and the beneficial owner, if any, on whose
behalf the proposal is made in such business, and (E) whether either such
stockholder or beneficial owner intends to deliver a proxy statement and form of
proxy to holders of at least the percentage of shares of the Corporation
entitled to vote required to approve the proposal. Notwithstanding the foregoing
provisions of this Bylaw 2.9(c), a stockholder must also comply with all
applicable requirements of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the rules and regulations thereunder with respect to the
matters set forth in this Bylaw 2.9(c). For purposes of this Bylaw 2.9(c) and
Bylaw 3.3, "public announcement" means disclosure in a press release reported by
the Dow Jones News Service, Associated Press, or comparable national news
service or in a document publicly filed by the Corporation with the Securities
and Exchange Commission pursuant to Sections 13, 14, or 15(d) of the Exchange
Act or furnished to stockholders. Nothing in this Bylaw 2.9(c) will be

                                       4

<PAGE>

deemed to affect any rights of stockholders to request inclusion of proposals in
the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act.

                  (d)      At a special meeting of stockholders, only such
business may be conducted or considered as is properly brought before the
meeting. To be properly brought before a special meeting, business must be (i)
specified in the notice of the meeting (or any supplement thereto) given by or
at the direction of the Chairman, the President or a majority of the Whole Board
in accordance with Bylaw 2.4 or (ii) otherwise properly brought before the
meeting by the presiding officer or by or at the direction of a majority of the
Whole Board or a majority of the Class A Directors.

                  (e)      The determination of whether any business sought to
be brought before any annual or special meeting of the stockholders is properly
brought before such meeting in accordance with this Bylaw 2.9 will be made in
good faith by the presiding officer of such meeting. If the presiding officer
determines that any business is not properly brought before such meeting, he or
she will so declare to the meeting and any such business will not be conducted
or considered.

         SECTION 2.10      Action Without Meeting.

         Any action required or permitted to be taken at any meeting of
stockholders may be taken without a meeting, without a vote, if a consent in
writing, setting forth the action so taken, shall (a) be signed by the holders
of outstanding stock having not fewer than the minimum number of votes assigned
under the Certificate of Incorporation to the shares of the Corporation that
would be necessary to authorize or take such action at a meeting at which all
shares entitled to vote thereon were present and voting and (b) be delivered to
the Corporation by delivery to its registered office in the State of Delaware,
its principal place of business, or an officer or agent of the Corporation
having custody of the records of proceedings of meetings of stockholders.
Delivery made to the Corporation's registered office shall be by hand, by
verified facsimile, by nationally recognized courier or by certified mail or
registered mail, return receipt requested. Every written consent shall bear the
date of signature of each stockholder who signs the consent and no written
consent shall be effective to take the corporate action referred to therein
unless written consents signed by the requisite number of stockholders entitled
to vote with respect to the subject matter thereof are delivered to the
Corporation, in the manner required by this Bylaw 2.10 within sixty (60) (or the
maximum number permitted by applicable law) days of the earliest dated consent
delivered to the Corporation in the manner required by this Bylaw 2.10. The
validity of any consent executed by a proxy for a stockholder pursuant to a
telegram, cablegram or other means of electronic transmission transmitted to
such proxy holder by or upon the authorization of the stockholder shall be
determined by or at the direction of the Secretary. A written record of the
information upon which the person making such determination relied shall be made
and kept in the records of the proceedings of the stockholders. Prompt notice of
the effectiveness of such action shall also be given to those stockholders who
did not consent in writing.

                                       5

<PAGE>

                                   ARTICLE III
                               BOARD OF DIRECTORS

         SECTION 3.1       General Powers. The business and affairs of the
Corporation shall be managed under the direction of the Board.

         SECTION 3.2       Number and Term of Office. The authorized number of
directors shall be nine and the authorized number of directors may be changed
from time to time only (a) by a vote of a majority of the Whole Board, including
at least one Class A Director, or (b) by the holders of at least (i) a majority
of the issued and outstanding Class A Common Stock, voting separately as a
single class, and (ii) a majority of the issued and outstanding Class B Common
Stock, voting separately as a single class. Directors need not be stockholders.
Each director of the Corporation shall hold office until the next annual meeting
of stockholders of the Corporation and until such director's successor is
elected and qualified or until such director's earlier death, resignation or
removal.

         SECTION 3.3       Nomination of Directors; Election. (a) Only persons
who are nominated in accordance with this Bylaw 3.3 will be eligible for
election at a meeting of stockholders to be members of the Board.

                  (b)      (i) Nominations for election as Class A Directors at
an annual meeting of stockholders may be made only (A) by or at the direction of
the Class A Directors or (B) by any stockholder that is a holder of record of
Class A Common Stock at the time of giving of notice provided for in this Bylaw
3.3, that is entitled to vote for the election of Class A Directors at such
meeting, and that complies with the procedures set forth in this Bylaw 3.3, and
(ii) nominations for election as Class B Directors at an annual meeting of
stockholders may be made only (A) by or at the direction of the Class B
Directors or (B) by any stockholder that is a holder of record of Class B Common
Stock at the time of giving of notice provided for in this Bylaw 3.3, that is
entitled to vote for the election of Class B Directors at such meeting, and that
complies with the procedures set forth in this Bylaw 3.3. All nominations by
stockholders must be made pursuant to timely notice in proper written form to
the Secretary.

                  (c)      To be timely, a stockholder's notice must be
delivered to or mailed and received at the principal executive offices of the
Corporation not less than 60 nor more than 90 calendar days prior to the first
anniversary of the date on which the Corporation first mailed its proxy
materials for the preceding year's annual meeting of stockholders; provided,
however, that if there was no annual meeting held during the prior year or if
the date of the annual meeting is advanced more than 30 calendar days prior to
or delayed by more than 30 calendar days after the anniversary of the preceding
year's annual meeting, notice by the stockholder to be timely must be so
delivered not later than the close of business on the later of the 90th calendar
day prior to such annual meeting or the 10th calendar day following the day on
which public announcement of the date of such meeting is first made. In no event
shall the public announcement of an adjournment of an annual meeting commence a
new time period for the giving of a stockholder's notice as described above. To
be in proper written form, such stockholder's notice must set forth or include
(i) the name and address, as they appear on the Corporation's books, of the
stockholder giving the notice and of the beneficial owner, if any, on whose
behalf the nomination is made; (ii) a representation that the stockholder giving
the notice is a holder of record of stock

                                       6

<PAGE>

of the Corporation entitled to vote at such annual meeting and intends to appear
in person or by proxy at the annual meeting to nominate the person or persons
specified in the notice; (iii) the class series, if any, and number of shares of
stock of the Corporation owned beneficially and of record by the stockholder
giving the notice and by the beneficial owner, if any, on whose behalf the
nomination is made; (iv) a description of all arrangements or understandings
between or among any of (A) the stockholder giving the notice, (B) the
beneficial owner on whose behalf the notice is given, (C) each nominee, and (D)
any other person or persons (naming such person or persons) pursuant to which
the nomination or nominations are to be made by the stockholder giving the
notice; (v) such other information regarding each nominee proposed by the
stockholder giving the notice as would be required to be included in a proxy
statement filed pursuant to the proxy rules of the Securities and Exchange
Commission had the nominee been nominated, or intended to be nominated, by the
Board; (vi) the signed consent of each nominee to serve as a director of the
Corporation if so elected; and (vii) whether either such stockholder or
beneficial owner intends to deliver a proxy statement and form of proxy to
holders of at least the percentage of shares of the capital stock of the
Corporation entitled to vote on such election that is required to elect such
nominee or nominees. At the request of the Board, any person nominated by the
Board for election as a director must furnish to the Secretary that information
required to be set forth in a stockholder's notice of nomination which pertains
to the nominee. The presiding officer of any annual meeting will, if the facts
warrant, determine that a nomination was not made in accordance with the
procedures prescribed by this Bylaw 3.3, and if he or she should so determine,
he or she will so declare to the meeting and the defective nomination will be
disregarded. Notwithstanding the foregoing provisions of this Bylaw 3.3, a
stockholder must also comply with all applicable requirements of the Exchange
Act and the rules and regulations thereunder with respect to the matters set
forth in this Bylaw 3.3.

         SECTION 3.4       Resignations. Any director of the Corporation may
resign at any time by giving written notice to the Chairman or to the Secretary
of the Corporation. Any such resignation shall take effect at the time specified
therein, or, if the time be not specified, it shall take effect immediately upon
its receipt; and unless otherwise specified therein, the acceptance of such
resignation shall not be necessary to make it effective.

         SECTION 3.5       Newly Created Directorships and Vacancies. Any newly
created directorship resulting from any increase in the number of Class A
Directors and any vacancies of Class A Directors resulting from death,
resignation, disqualification, removal or other cause will be filled (a) prior
to a Trigger Event by (i) the affirmative vote of a majority of the remaining
Class A Directors then in office, even though less than a quorum of the Board,
(ii) the sole remaining Class A Director, (iii) if there are no remaining Class
A Directors, the affirmative vote of a majority of the Independent Directors, if
any, or (iv) if there are no remaining Independent Directors, the affirmative
vote of the holders of a majority of the votes attributable to the issued and
outstanding Class A Common Stock, excluding any such holder that is an
Interested Stockholder, at a meeting called for that purpose, and (b) following
a Trigger Event by (i) the affirmative vote of a majority of all of the
remaining directors then in office, even though less than a quorum of the Board,
(ii) the sole remaining director or (iii) the affirmative vote of the holders of
a majority of the votes attributable to the issued and outstanding Class A
Common Stock and Class B Common Stock voting together as a single class. Any
newly created directorships resulting from any increase in the number of Class B
Directors and any vacancies of Class B Directors resulting from death,
resignation, disqualification, removal or other cause

                                       7

<PAGE>

will be filled by (a) the affirmative vote of a majority of the remaining Class
B Directors then in office, even though less than a quorum of the Board, (b) the
sole remaining Class B Director, or (c) the affirmative vote of the holders of a
majority of the issued and outstanding Class B Common Stock, at a meeting called
for that purpose. Any director elected in accordance with the preceding sentence
will hold office until the next annual meeting of stockholders and until such
director's successor has been elected and qualified or until such director's
earlier death, resignation or removal. No decrease in the number of directors
constituting the Board may shorten the term of any incumbent director.

         SECTION 3.6       Place of Meeting, Etc. The Board may hold any of its
meetings at such place or places within or outside of the State of Delaware as
the Board may from time to time by resolution designate or as shall be
designated by the person or persons calling the meeting or in the notice or a
waiver of notice of any such meeting.

         SECTION 3.7       Regular Meeting. Regular meetings of the Board may be
held at such times as the Board shall from time to time by resolution determine.
Regular meetings of the Board may be held either within or outside of the State
of Delaware, as is determined by the Board. The Board may fix the place, if any,
of its regular meetings. Notice of regular meetings need not be given.

         SECTION 3.8       Special Meetings. Special meetings of the Board may
be called by the Chairman or the President on two calendar days' notice to each
director by whom such notice is not waived, given either personally or by mail,
courier, telephone, facsimile, electronic mail or other form of electronic
transmission, or other medium of communication, and will be called by the
Chairman or the President in like manner and on like notice on the written
request of a majority of the Whole Board. Special meetings of the Board may be
held either within or outside of the State of Delaware as is determined by the
Board or specified in the notice of any such meeting. The Board may fix the time
and place, if any, of special meetings.

         SECTION 3.9       Quorum and Manner of Acting. At all meetings of the
Board, the presence of a majority of the Whole Board shall be required to
constitute a quorum for the transaction of business. Except for the designation
of committees as hereinafter provided, and except for actions required by these
Bylaws or the Certificate of Incorporation to be taken by a majority of the
Whole Board, the act of a majority of the directors present at, or participating
in, any meeting at which there is a quorum will be the act of the Board. If a
quorum is not present at, or participating in, any meeting of the Board, the
directors present thereat, or participating therein, may adjourn the meeting
from time to time to another place, time, or date, without notice other than
announcement at the meeting, until a quorum is present or participating.

         SECTION 3.10      Participation in Meetings by Remote Communications.
Members of the Board or any committee designated by the Board may participate in
a meeting of the Board or any such committee, as the case may be, by means of
conference telephone or by similar communications equipment pursuant to which
all persons participating in the meeting can hear each other, and such
participation in a meeting will constitute presence in person at the meeting.

         SECTION 3.11      Action by Consent. Any action required or permitted
to be taken at any meeting of the Board or of any committee thereof may be taken
without a meeting if a

                                       8

<PAGE>

written consent thereto is signed by all members of the Board or of such
committee, as the case may be, and such written consent is filed with the
minutes of proceedings of the Board or committee.

         SECTION 3.12      Removal of Directors. A director may be removed from
office by the stockholders only for cause and only in the manner specified in
the Certificate of Incorporation.

         SECTION 3.13      Compensation. The Board may establish the
compensation for, and reimbursement of the expenses of, directors for membership
on the Board and on committees of the Board, attendance at meetings of the Board
or committees of the Board, and for other services by directors to the
Corporation or any of its majority-owned subsidiaries.

         SECTION 3.14      Committees. (a) The Board, by resolution passed by a
majority of the Whole Board, will designate an Executive Committee in accordance
with the Corporation's Certificate of Incorporation. The Board, by resolution
passed by a majority of the Whole Board will also designate an Audit Committee,
a Compensation Committee and a Nominating and Corporate Governance Committee.
Such committees shall consist of one or more directors and each shall have such
lawfully delegable powers and duties as the Board may confer; provided, however,
that persons who are not directors of the Corporation may also be members of
such committees to the extent provided in the resolution of the Board, and
permitted by the DGCL. The Class A Director Nominating Committee shall consist
of the Class A Directors. To the extent that a Class A Director is required to
vote on a particular matter, a committee shall not make any such determination
on behalf of the Board unless a Class A Director (i) is on such committee and
(ii) votes in favor of such matter.

                  (b)      The Board, by resolution passed by a majority of the
Whole Board, may designate one or more additional committees, each to have such
lawfully delegable powers and duties as the Board may confer.

                  (c)      Each committee of the Board will serve at the
pleasure of the Board or as may be specified in any resolution from time to time
adopted by the Board. The Board may also designate one or more directors as
alternate members of any committee, who may replace any absent or disqualified
member at any meeting of the committee. In the absence or disqualification of a
member of a committee, the member or members thereof present at any meeting and
not disqualified from voting, whether or not they constitute a quorum, may
unanimously appoint another member of the Board to act at the meeting in place
of any such absent or disqualified member. Any vacancy in the Executive
Committee may be filled from among the Directors by a resolution of a majority
of the Whole Board.

                  (d)      Except as otherwise provided in these Bylaws or by
law, any committee of the Board, to the extent provided in Bylaw 3.14(a) or, if
applicable, in the resolution of the Board, will have and may exercise all the
powers and authority of the Board in the direction of the management of the
business and affairs of the Corporation. Any such committee designated by the
Board will have such name as may be determined from time to time by resolution
adopted by the Board. Unless otherwise prescribed by the Board, the presence of
a majority of the members of any committee of the Board shall be required to
constitute a quorum for the transaction of business, and the act of a majority
of the members present at a meeting at which

                                       9

<PAGE>

there is a quorum will be the act of such committee. Each committee of the Board
may prescribe its own rules for calling and holding meetings and its method of
procedure, subject to any rules prescribed by the Board, and will keep a written
record of all actions taken by it.

                                   ARTICLE IV
                                    OFFICERS

         SECTION 4.1       Generally. The officers of the Corporation will be
elected by the Board and will consist of a Chairman, a Chief Executive Officer,
a President, a Secretary and a Treasurer. The Board may also choose any or all
of the following: one or more Vice Chairmen, one or more Assistants to the
Chairman, one or more Vice Presidents (who may be given particular designations
with respect to authority, function, or seniority), and such other officers as
the Board may from time to time determine. Notwithstanding the foregoing, by
specific action the Board may authorize the Chairman to appoint any person to
any office other than Chairman, a Chief Executive Officer, President, Secretary
or Treasurer. Any number of offices may be held by the same person. Any of the
offices may be left vacant from time to time as the Board may determine. In the
case of the absence or disability of any officer of the Corporation or for any
other reason deemed sufficient by a majority of the Board, the Board may
delegate the absent or disabled officer's powers or duties to any other officer
or to any director.

         SECTION 4.2       Compensation. The compensation of all officers and
agents of the Corporation who are also directors of the Corporation will be
fixed by the Board or by a committee of the Board. The Board may fix, or
delegate the power to fix, the compensation of other officers and agents of the
Corporation to an officer of the Corporation.

         SECTION 4.3       Succession. The officers of the Corporation will hold
office until their successors are elected and qualified. Any officer may be
removed at any time by the affirmative vote of a majority of the Whole Board.
Any vacancy occurring in any office of the Corporation may be filled by the
Board or by the Chairman as provided in Bylaw 4.1.

         SECTION 4.4       Authority and Duties. Each of the officers of the
Corporation will have such authority and will perform such duties as are
customarily incident to their respective offices or as may be specified from
time to time by the Board.

                                    ARTICLE V
                                      STOCK

         SECTION 5.1       Certificates. Certificates representing shares of
stock of the Corporation will be in such form as is determined by the Board,
subject to applicable legal requirements. Each such certificate will be numbered
and its issuance recorded in the books of the Corporation, and such certificate
will exhibit the holder's name and the number of shares and will be signed by,
or in the name of, the Corporation by the Chairman, President or any Vice
President and the Secretary or an Assistant Secretary, or the Treasurer or an
Assistant Treasurer, and will also be signed by, or bear the facsimile signature
of, a duly authorized officer or agent of any properly designated transfer agent
of the Corporation. Any or all of the signatures and the seal of the
Corporation, if any, upon such certificates may be facsimiles, engraved, or
printed. Such certificates may be issued and delivered notwithstanding that the
person whose facsimile

                                       10

<PAGE>

signature appears thereon may have ceased to be such officer at the time the
certificates are issued and delivered.

         SECTION 5.2       Classes of Stock. The designations, preferences, and
relative participating, optional, or other special rights of the various classes
of stock or series thereof, and the qualifications, limitations, or restrictions
thereof, will be set forth in full or summarized on the face or back of the
certificates which the Corporation issues to represent its stock or, in lieu
thereof, such certificates will set forth the office of the Corporation from
which the holders of certificates may obtain a copy of such information.

         SECTION 5.3       Lost, Stolen, or Destroyed Certificates. The
Secretary may direct a new certificate or certificates to be issued in place of
any certificate or certificates theretofore issued by the Corporation alleged to
have been lost, stolen, or destroyed, upon the making of an affidavit of that
fact, satisfactory to the Secretary, by the person claiming the certificate of
stock to be lost, stolen, or destroyed. As a condition precedent to the issuance
of a new certificate or certificates, the Secretary may require the owners of
such lost, stolen, or destroyed certificate or certificates to give the
Corporation a bond in such sum and with such surety or sureties as the Secretary
may direct as indemnity against any claims that may be made against the
Corporation with respect to the certificate alleged to have been lost, stolen,
or destroyed or the issuance of the new certificate.

         SECTION 5.4       Record Dates. (a) In order that the Corporation may
determine the stockholders entitled to notice of or to vote at any meeting of
stockholders or any adjournment thereof, the Board may fix a record date, which
will not be more than 60 or less than 10 calendar days before the date of such
meeting. If no record date is fixed by the Board, the record date for
determining stockholders entitled to notice of or to vote at a meeting of
stockholders will be at the close of business on the calendar day next preceding
the day on which notice is given, or, if notice is waived, at the close of
business on the calendar day next preceding the day on which the meeting is
held. A determination of stockholders of record entitled to notice of or to vote
at a meeting of the stockholders will apply to any adjournment of the meeting;
provided, however, that the Board may fix a new record date for the adjourned
meeting.

                  (b)      In order that the Corporation may determine the
stockholders entitled to receive payment of any dividend or other distribution
or allotment of any rights or the stockholders entitled to exercise any rights
in respect of any change, conversion, or exchange of stock, or for the purpose
of any other lawful action, the Board may fix a record date, which record date
will not be more than 60 calendar days prior to such action. If no record date
is fixed, the record date for determining stockholders for any such purpose will
be at the close of business on the calendar day on which the Board adopts the
resolution relating thereto.

                  (c)      The Corporation will be entitled to treat the person
in whose name any share of its stock is registered as the owner thereof for all
purposes, and will not be bound to recognize any equitable or other claim to, or
interest in, such share on the part of any other person, whether or not the
Corporation has notice thereof, except as expressly provided by applicable law.

                                       11

<PAGE>

                                   ARTICLE VI
                                     NOTICES

         SECTION 6.1       Generally. Except as otherwise provided by law, these
Bylaws, or the Certificate of Incorporation, whenever by law or under the
provisions of the Certificate of Incorporation or these Bylaws notice is
required to be given to any director or stockholder, it will not be construed to
require personal notice, but such notice may be given: (a) in writing, by mail
or courier service, addressed to such director or stockholder, at the address of
such director or stockholder as it appears on the records of the Corporation,
with postage thereon prepaid; or (b) by form of electronic transmission
consented to by such director or stockholder. Notice given by mail or courier
service will be deemed to be given at the time when the same is deposited in the
United States mail. Notice given pursuant to electronic transmission will be
deemed given: (i) if by facsimile telecommunication, when directed to a number
at which the director or stockholder has consented to receive notice; (ii) if by
electronic mail, when directed to an electronic mail address at which the
director or stockholder has consented to receive notice; (iii) if by a posting
on an electronic network together with separate notice to the director or
stockholder of such specific posting, upon the later of (A) such posting and (B)
the giving of such separate notice; and (iv) if by any other form of electronic
transmission, when directed to the director or stockholder. Notice to directors
may also be given by telephone or similar medium of communication or as
otherwise may be permitted by these Bylaws.

         SECTION 6.2       Waivers. Whenever any notice is required to be given
by law or under the provisions of the Certificate of Incorporation or these
Bylaws, a waiver thereof in writing, signed by the person or persons entitled to
such notice, or a waiver by electronic transmission by the person entitled to
such notice, whether before or after the time of the event for which notice is
to be given, will be deemed equivalent to such notice. Attendance of a person at
a meeting will constitute a waiver of notice of such meeting, except when the
person attends a meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business because the meeting is not
lawfully called or convened.

                                   ARTICLE VII
                                  MISCELLANEOUS

         SECTION 7.1       Fiscal Year. The fiscal year of the Corporation shall
be fixed by resolution of the Board.

         SECTION 7.2       Seal. The Corporation may have a corporate seal which
shall have the name of the Corporation and shall be in such form as may be
approved from time to time by the Board.

         SECTION 7.3       Amendments. Except as otherwise provided by law or by
the Certificate of Incorporation or these Bylaws, these Bylaws or any of them
may be amended in any respect or repealed at any time, either (a) at any meeting
of stockholders, provided that any amendment or supplement proposed to be acted
upon at any such meeting has been described or referred to in the notice of such
meeting, or (b) at any meeting of the Board, provided that (i) no amendment
adopted by the Board may vary or conflict with any amendment adopted by the
stockholders in accordance with the Certificate of Incorporation and these
Bylaws and (ii) that

                                       12

<PAGE>

any amendment or repeal of, or adoption of any Bylaw inconsistent with, any of
Bylaws 2.2, 2.5, 2.6, 3.2, 3.3, 3.5, 3.12 and 3.14 or this Bylaw 7.3 by the
Board prior to a Trigger Event must be approved by a majority of the Class A
Directors.

         SECTION 7.4       Pronouns. All pronouns used in these Bylaws shall be
deemed to refer to the masculine, feminine or neuter, singular or plural, as the
identity of the person or persons may require.

         SECTION 7.5       Certain Defined Terms. Terms used herein with initial
capital letters that are not otherwise defined are used herein as defined in the
Certificate of Incorporation.

                                       13

<PAGE>

                            CERTIFICATE OF SECRETARY

         The undersigned, being the duly elected Secretary of New Globalstar
Corporation, a Delaware corporation, hereby certifies that the Bylaws to which
this Certificate is attached were duly adopted by the Board of Directors of said
Corporation on ____________ ___, 2003.

                                             ___________________________________

                                             ______________________
                                             Secretary<PAGE>

                                                                    Exhibit 10.2

                                   $35,000,000

                   SECURED SUPER-PRIORITY DEBTOR IN POSSESSION

                                CREDIT AGREEMENT

                            Dated as of May 19, 2003

                                      among

                                GLOBALSTAR, L.P.,

                                   as Borrower

                 The Subsidiaries of the Borrower Party Hereto,
                                  as Guarantors

                                       and

                              ICO INVESTMENT CORP.,

                                    as Lender
<PAGE>
      SECURED SUPER-PRIORITY DEBTOR IN POSSESSION CREDIT AGREEMENT, dated as of
May 19, 2003, between GLOBALSTAR, L.P., a Delaware limited partnership, as
debtor and debtor in possession under chapter 11 of the Bankruptcy Code (as
hereinafter defined) (the "Borrower"), the Subsidiaries (as defined below) of
the Borrower listed on the signature pages hereto as Guarantors, as debtors and
debtors in possession under chapter 11 of the Bankruptcy Code (the "Guarantors")
and ICO Investment Corp., a Delaware corporation (the "Lender").

                              W I T N E S S E T H :

      WHEREAS, on February 15, 2002 (the "Petition Date"), the Borrower and the
Guarantors each filed a voluntary petition for relief commencing a
reorganization case under chapter 11 of the Bankruptcy Code (as defined herein)
with the United States Bankruptcy Court for the District of Delaware;

      WHEREAS, in connection with the consummation of this Agreement, the
Borrower and the Guarantors are continuing to operate their respective
businesses and manage their respective properties as debtors and debtors in
possession under sections 1107 and 1108 of the Bankruptcy Code;

      WHEREAS, the Borrower and ICO (as defined herein) are entering into the
Investment Agreement (as defined herein) relating to ICO's proposed purchase of
substantially all the assets of Borrower and Guarantors;

      WHEREAS, prior to the consummation of the transactions contemplated by the
Investment Agreement, an immediate and ongoing need exists for the Borrower to
obtain additional funds to continue the operation of its and its Subsidiaries'
respective businesses through the closing date of the Investment Agreement and,
accordingly, the Borrower has requested that Lender provide a secured
super-priority debtor in possession credit facility;

      WHEREAS, the Lender is not in the business of making loans, but for the
sole purpose of consummating the transactions contemplated by the Investment
Agreement, the Lender is willing to make funds available to the Borrower
pursuant to sections 364(c)(1), (c)(2) and (c)(3) of the Bankruptcy Code, but
only for the purposes and upon the terms and subject to the conditions set forth
in this Agreement; and

      WHEREAS, each of the Guarantors has agreed to guaranty the obligations of
the Borrower hereunder and the Borrower and the Guarantors have agreed to secure
their obligations to the Lender in connection with such facility with, inter
alia, security interests in, and liens on, substantially all of their respective
property and assets, whether real or personal, tangible or intangible, as
provided herein;

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreement, hereinafter contained, the parties hereto agree as follows:
<PAGE>
                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

            Section 1.1 Defined Terms. As used in this Agreement, the following
      terms have the following meanings (such meanings to be equally applicable
      to both the singular and plural forms of the terms defined):

      "Account" has the meaning specified in Article 9 of the UCC.

      "Account Debtor" has the meaning specified in Article 9 of the UCC.

      "Accounts Receivable" means all rights to payment, whether or not earned
by performance, for goods or other property sold, leased, licensed, assigned or
otherwise disposed of, or services rendered or to be rendered, including,
without limitation, all such rights constituting or evidenced by any Account,
Chattel Paper, Instrument, General Intangible or Investment Property, together
with all of the Grantor's right, title and interest, if any, in any goods or
other property giving rise to such right to payment, including any rights to
stoppage in transit, replevin, reclamation and resales, and all related security
interests, Liens and pledges, whether voluntary or involuntary, in each case
whether now existing or owned or hereafter arising or acquired, and all
Collateral Support and Supporting Obligations related to the foregoing and all
Accounts Receivable Records.

      "Accounts Receivable Records" means (a) all original copies of all
documents, instruments or other writings or electronic records or other Records
evidencing the Accounts Receivable, (b) all books, correspondence, credit or
other files, Records, ledger sheets or cards, invoices, and other papers
relating to Accounts Receivable, including, without limitation, all tapes,
cards, computer tapes, computer discs, computer runs, record keeping systems and
other papers and documents relating to the Accounts Receivable, whether in the
possession or under the control of Grantor or any computer bureau or agent from
time to time acting for Grantor or otherwise, (c) all evidences of the filing of
financing statements and the registration of other instruments in connection
therewith, and amendments, supplements or other modifications thereto, notices
to other creditors or Lender, and certificates, acknowledgments, or other
writings, including, without limitation, lien search reports, from filing or
other registration officers, (d) all credit information, reports and memoranda
relating thereto and (e) all other written, electronic or other non-written
forms of information related in any way to the foregoing or any Accounts
Receivable.

      "Administrative Expenses" means any right to payment constituting a cost
or expense of administration of any of the Reorganization Cases allowed under
sections 503(b) and 507(b) of the Bankruptcy Code and fees required to be paid
to the Office of the United States Trustee under section 1930(a), title 28,
United States Code.

      "Affiliate" means, with respect to any Person, any other Person which,
directly or indirectly, controls, is controlled by or is under common control
with such Person, each officer, director, general partner or joint venturer of
such Person, and each Person who is the beneficial owner of 5% or more of any
class of voting Stock of such Person. For the purposes of this

                                       2

<PAGE>
definition, "control" means the possession of the power to direct or cause the
direction of management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

      "Agreement" means this Secured Super-Priority Debtor In Possession Credit
Agreement.

      "Approved Budget" means the operating budget of the Borrower and the
Guarantors for the period ending December 31, 2003, attached hereto as Exhibit B
and agreed between the parties hereto and each supplemental budget approved by
Lender, which approval shall be in Lender's sole discretion.

      "Avoidance Actions" means any Claim or cause of action of any Grantor
arising under chapter 5 of the Bankruptcy Code and any proceeds, monies or
property of any kind recovered therefrom.

      "Bankruptcy Code" means title 11, United State Code, as amended from time
to time.

      "Bankruptcy Court" means the United States Bankruptcy Court for the
District of Delaware and any other court having competent jurisdiction over the
Reorganization Cases.

      "Bankruptcy Rules" means the Federal Rules of Bankruptcy Procedure and the
Local Rules of the Bankruptcy Court, each as amended from time to time.

      "Borrower" has the meaning specified in the recitals to this Agreement.

      "Borrowing" means a Term Loan Borrowing.

      "Borrower Termination Event" means the occurrence and continuation of any
of the events set forth in Section 7.3 of the Investment Agreement.

      "Business Day" means a day (excluding Saturday and Sunday) of the year on
which banks are not required or authorized to close in New York, New York.

      "Capital Lease Obligations" means, as to any Person, the capitalized
amount of all obligations of such Person or any of its Subsidiaries under any
lease of property (whether real, personal or mixed) by such Person as lessee
which would be accounted for as a capital lease on a balance sheet of such
Person in conformity with GAAP (a "Capital Lease").

      "Chattel Paper" has the meaning specified in Article 9 of the UCC.

      "Claim" has the meaning specified in section 101(5) of the Bankruptcy
Code.

      "Closing Date" means the first date on which all of the conditions
precedent specified in Section 3.1 hereof are satisfied.

      "Collateral" has the meaning specified in Section 9.1.

                                       3
<PAGE>
      "Collateral Support" means all property (real or personal) assigned,
hypothecated or otherwise securing any of items (i) through (xxi) in the
definition of Collateral set forth in Section 9.1 and includes any security
agreement or other agreement granting a Lien or security interest in such real
or personal property.

      "Commitment" means the commitment of the Lender to make Term Loans to the
Borrower in the aggregate principal amount of up to $35,000,000.

      "Committee" means the official statutory committee of unsecured creditors
appointed in the Reorganization Cases pursuant to section 1102 of the Bankruptcy
Code.

      "Contracts" means, with respect to any Grantor, any and all "contracts",
as such term is defined in Article 1 of the UCC, of such Grantor.

      "Contractual Obligation" means, with respect to a Person, any obligation,
agreement, undertaking or similar provision of any security issued by such
Person or of any agreement, undertaking, contract, lease, indenture, mortgage,
deed of trust or other instrument (excluding a Loan Document) to which such
Person is a party or by which it or any of its property is bound or to which any
of its properties is subject.

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

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

      "Credit Party" means the Borrower, each Guarantor, LQP and each other
Person that grants a security interest in any property to secure the
Obligations.

      "Default" means any event which with the passing of time or the giving of
notice or both would become an Event of Default.

      "Documents" has the meaning specified in Article 9 of the UCC.

      "Dollars" and the sign "$" each mean the lawful money of the United States
of America.

      "Domestic Subsidiary" means any Subsidiary of the Borrower that is
incorporated under the laws of any of the states of the United States of America
or the District of Columbia.

      "Equipment" has the meaning specified in Article 9 of the UCC.

                                       4
<PAGE>
      "Event of Default" means any of the following events:

      (a) The Borrower shall fail to pay any principal of any Loan or any
interest on (except as provided in Section 1.6 of the Investment Agreement) any
Loan on the Maturity Date or within five (5) Business Days after the same
otherwise becomes due and payable; or

      (b) Any material representation or warranty made or deemed made by any
Credit Party in any Loan Document shall prove to have been incorrect, false or
misleading in any material respect when made or deemed made; or

      (c) Any Credit Party shall fail to perform or observe (i) any material
term, covenant or agreement contained in Article V or VI or (ii) any material
term, covenant or agreement contained in any other Loan Document and, in either
case, such failure shall remain unremedied for five (5) Business Days after the
earlier of the date on which (A) a Responsible Officer of the Borrower or a
Guarantor becomes aware of such failure or (B) written notice thereof shall have
been given to the Borrower or a Guarantor by the Lender; or

      (d) Any of the Reorganization Cases shall be dismissed or converted to a
case under chapter 7 of the Bankruptcy Code or a trustee shall be appointed in
any of the Reorganization Cases; or

      (e) The Bankruptcy Court or any court of competent jurisdiction shall have
entered an order, which order is a Final Order, amending, supplementing,
vacating or otherwise modifying the Financing Order without the consent of the
Lender; or

      (f) The Borrower shall bring a motion before the Bankruptcy Court to
obtain additional financing or incur Indebtedness arising from such additional
financing that is secured by a Lien that is equal or senior to any one or more
Liens granted hereunder or hereafter granted to the Lender; or

      (g) The occurrence of any event giving ICO the right to terminate the
Investment Agreement pursuant to Section 7.2 thereof and ICO's delivery to the
Debtors of written notice to terminate the Investment Agreement.

      "Existing DIP Loan Agreement" means that certain Secured Super-Priority
Debtor in Possession Credit Agreement, dated as of February 24, 2003, among
Globalstar, L.P., as "Borrower", the subsidiaries of the Borrower thereunder
party thereto, as "Guarantors" and ICO Investment Corp., Blue River Capital LLC,
Iridium Investors, LLC, Loeb Partners Corp. and Columbia Ventures Corporation,
as Lenders, as the same may be amended, supplemented or otherwise modified from
time to time.

      "FCC" means the Federal Communications Commission.

      "FCC Licenses" means the FCC licenses issued to the Borrower, LQP or any
of their respective Subsidiaries by the FCC and listed on Schedule 1.

      "Final Order" means an order of the Bankruptcy Court entered on the docket
of the Clerk of the Bankruptcy Court, that is in effect and not stayed, and as
to which the time to

                                       5
<PAGE>
appeal, petition for certiorari, or move for reargument or rehearing has expired
and as to which no appeal, petition for certiorari or other proceedings for
reargument or rehearing shall then be pending or as to which any right to
appeal, petition for certiorari, reargue or rehear shall have been waived, or if
an appeal, reargument, petition for certiorari, or rehearing thereof has been
sought, the order of the Bankruptcy Court shall have been affirmed by the
highest court to which the order was appealed, from which the reargument or
rehearing was sought, or certiorari has been denied, and the time to take any
further appeal, petition for certiorari or move for reargument or rehearing
shall have expired.

      "Financing Order" means that certain order issued by the Bankruptcy Court
pursuant to section 364 and other applicable provisions of the Bankruptcy Code
after a final hearing under Bankruptcy Rule 4001(c)(2) approving this Agreement
and the other Loan Documents and authorizing the incurrence by the Borrower and
the Guarantors of the Obligations and the other transactions hereunder,
including the granting of the super-priority status, the security interest and
liens, and the payment of all fees constituting Obligations hereunder, and
authorizing the Lender to exercise its rights and remedies hereunder, and which
is substantially in the form of Exhibit C and otherwise in form and substance
reasonably satisfactory to the Lender. The Financing Order may not be amended or
modified in any respect without the prior written consent of the Lender.

      "Fiscal Quarter" means each of the three-month periods ending on March 31,
June 30, September 30 and December 31.

      "GAAP" means generally accepted accounting principles in the United States
of America as in effect from time to time set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and the statements and pronouncements of the
Financial Accounting Standards Board, or in such other statements by such other
entity as may be in general use by significant segments of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

      "General Intangible" has the meaning specified in Article 9 of the UCC.

      "Goods" has the meaning specified in Article 9 of the UCC.

      "Governmental Authority" means any nation, sovereign or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

      "Grantor" means the Borrower and each Guarantor.

      "Guarantor" has the meaning specified in the preamble hereto.

      "Guaranty" means the guaranty of the Obligations of the Borrower made by
the Guarantors pursuant to Article VIII.

      "Guaranty Obligation" means, as applied to any Person, any direct or
indirect liability, contingent or otherwise, of such Person with respect to any
Indebtedness of another Person, if the purpose or intent of such Person in
incurring the Guaranty Obligation is to provide

                                       6
<PAGE>
assurance to the obligee of such Indebtedness that such Indebtedness will be
paid or discharged, or that any agreement relating thereto will be complied
with, or that any holder of such Indebtedness will be protected (in whole or in
part) against loss in respect thereof, including (a) the direct or indirect
guaranty, endorsement (other than for collection or deposit in the ordinary
course of business), co-making, discounting with recourse or sale with recourse
by such Person of Indebtedness of another Person and (b) any liability of such
Person for Indebtedness of another Person through any agreement (contingent or
otherwise) (i) to purchase, repurchase or otherwise acquire such Indebtedness or
any security therefor, or to provide funds for the payment or discharge of such
Indebtedness (whether in the form of a loan, advance, stock purchase, capital
contribution or otherwise), (ii) to maintain the solvency or any balance sheet
item, level of income or financial condition of another Person, (iii) to make
take-or-pay or similar payments, if required, regardless of non-performance by
any other party or parties to an agreement, (iv) to purchase, sell or lease (as
lessor or lessee) property, or to purchase or sell services, primarily for the
purpose of enabling the debtor to make payment of such Indebtedness or to assure
the holder of such Indebtedness against loss, or (v) to supply funds to or in
any other manner invest in such other Person (including to pay for property or
services irrespective of whether such property is received or such services are
rendered), if in the case of any agreement described under subclause (i), (ii),
(iii), (iv) or (v) of clause (b) of this sentence the primary purpose or intent
thereof is as described in the preceding sentence. The amount of any Guaranty
Obligation shall be equal to the amount of the Indebtedness so guaranteed or
otherwise supported.

      "Hedging Contracts" means all interest rate contracts, foreign exchange
contracts, currency swap or option agreements, forward contracts, commodity
swap, purchase or option agreements, other commodity price hedging arrangements,
and all other similar agreements or arrangements designed to alter the risks of
any Person arising from fluctuations in interest rates, currency values or
commodity prices.

      "ICO" means ICO Global Communications (Holdings) Limited, a Delaware
corporation.

      "Indebtedness" of any Person means without duplication (a) all
indebtedness of such Person for borrowed money, all reimbursement and all other
obligations with respect to surety bonds, performance bonds, letters of credit
and bankers' acceptances, whether or not matured, and all indebtedness for the
deferred purchase price of property or services, other than trade payables
incurred in the ordinary course of business that are not overdue, (b) all
obligations of such Person evidenced by notes, bonds, debentures or similar
instruments or which bear interest, (c) all indebtedness of such Person created
or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and remedies
of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property), (d) all Capital Lease Obligations of
such Person and the present value of future rental payments under all synthetic
leases, (e) all obligations of such Person to purchase, redeem, retire, defease
or otherwise acquire for value any Stock or Stock equivalents of such Person,
valued, in the case of redeemable preferred stock, at the greater of its
voluntary or involuntary liquidation preference plus accrued and unpaid
dividends, (f) all payments that such Person would have to make in the event of
an early termination on the date Indebtedness of such Person is being determined
in respect of Hedging Contracts of such Person and (g) all Indebtedness referred
to in clause (a), (b), (c), (d), (e) or (f) above secured by

                                       7
<PAGE>
(or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien upon or in property (including, without
limitation, Accounts and General Intangibles) owned by such Person, even though
such Person has not assumed or become liable for the payment of such
Indebtedness.

      "Instrument" has the meaning specified in Article 9 of the UCC other than
instruments that constitute, or are a part of a group of writings that
constitute, Chattel Paper.

      "Intellectual Property" means, collectively, all rights, priorities and
privileges of any Grantor relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks, Trademark
Licenses and trade secrets, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

      "Interest Payment Date" means the last Business Day of each Fiscal Quarter
during the term of this Agreement.

      "Inventory" has the meaning specified in Article 9 of the UCC, wherever
located.

      "Investment Agreement" means the Investment Agreement of even date
herewith among the Borrower, ICO and the Guarantors.

      "Investment Property" means, with respect to any Grantor, any and all
"investment property," as such term is defined in Article 9 of the UCC, of such
Grantor, wherever located.

      "Lender" means ICO Investment Corp., a Delaware corporation.

      "Lender Termination Event" means (a) the occurrence and continuation of an
Event of Default or (b) a termination of the Investment Agreement by ICO
pursuant to Section 7.2 thereof.

      "Lien" means any mortgage, deed of trust, pledge, hypothecation,
assignment, charge, deposit arrangement, encumbrance, lien (statutory or other),
security interest or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever intended to assure
payment of any Indebtedness or other obligation, including, without limitation,
any conditional sale or other title retention agreement, the interest of a
lessor under a Capital Lease, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of any financing
statement under the UCC or comparable law of any jurisdiction, naming the owner
of the asset to which such Lien relates as debtor.

      "Loan Documents" means, collectively, this Agreement, the Notes, the LQP
Pledge Agreement and each certificate, agreement or document executed by the
Borrower or any other Credit Party and delivered to the Lender.

      "LQP" means Loral/QUALCOMM Partnership, L.P., a Delaware limited
partnership.

                                       8
<PAGE>
      "LQP Pledge Agreement" means the Pledge Agreement dated as of the date
hereof between LQP, as pledgor, and the Lender, as pledgee.

      "Material Adverse Effect" means any change, effect, event or condition
that has had or could reasonably be expected to have a material adverse effect
on (i) the assets or operations of the Borrower, and its Subsidiaries, taken as
a whole, or (ii) the ability of the Borrower to consummate the transactions
contemplated hereby; provided, however, that the loss of satellite availability
shall not constitute a Material Adverse Effect unless, following the date of
this Agreement, (A) one additional satellite in the Borrower's satellite
constellation shall have been declared "failed" in addition to the existing four
satellites that have been declared "failed" or (B) at any time, for a continuous
period of sixty (60) days or more there shall have been fewer than 43 Qualifying
Satellites in the Borrower's satellite constellation.

      "Maturity Date" means the earlier of (i) the "Closing Date" as defined in
the Investment Agreement or (ii) December 31, 2003.

      "New Globalstar" has the meaning specified in the Investment Agreement.

      "Notes" means, collectively, the Term Loan Notes and the PIK Interest
Note.

      "Notice of Borrowing" has the meaning specified in Section 2.2(a).

      "Obligations" means the Loans and all other advances, debts, liabilities,
fees, obligations, covenants and duties of any kind and description, now
existing or hereafter arising, whether due or not due, absolute or contingent,
liquidated or unliquidated, direct or indirect, express or implied, individually
or jointly with others, howsoever evidenced or acquired owing by the Borrower to
the Lender, arising under or pursuant to this Agreement or any other Loan
Document.

      "Partnership" means any partnership in which any Credit Party has an
interest.

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

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

      "Payment Intangible" has the meaning specified in Article 9 of the UCC.

      "Permitted Expenditures" means (i) the cash expenditures set forth in the
Approved Budget, plus (ii) for each month commencing with July 2003, following a
request by Borrower and approval by Lender, which approval shall not be
unreasonably withheld or delayed, additional cash expenditures totaling no more
than 5.0% of the total monthly budget for such month as set forth in the
Approved Budget, plus (iii) cash expenditures necessary to pay

                                       9
<PAGE>
agent and dealer sales commissions incurred in the ordinary course of business
consistent with past practice, plus (iv) cash expenditures necessary for the
purchase of user equipment and accessories held for resale up to an aggregate of
$250,000 and for such additional amounts as are approved by Lender in its sole
discretion. Any unused portion of Permitted Expenditures for any given month may
be carried over as additional Permitted Expenditures in the immediately
subsequent month.

      "Permitted Liens" has the meaning specified in Section 6.1.

      "Person" means an individual, partnership, corporation (including, without
limitation, a business trust), joint stock company, estate, trust, limited
liability company, unincorporated association, joint venture or other entity, or
a Governmental Authority.

      "Petition Date" has the meaning specified in the recitals hereto.

      "PIK Interest Note" means a promissory note of the Borrower, payable to
the order of the Lender, substantially in the form of Exhibit A-2, evidencing
the aggregate Indebtedness of the Borrower to the Lender resulting from the
capitalization of accrued interest payable on the Loans pursuant to Section
2.5(b).

      "Plan of Reorganization" means a proposed plan or plans of reorganization
for the Borrower and the Guarantors whether filed with or confirmed by order of
the Bankruptcy Court; provided that the Plan of Reorganization shall not be
amended so that it contains any obligations for the Borrower to make any cash
payment other than in respect of Claims for administrative expenses, priority
tax Claims, priority non-tax Claims and cure amounts relating to executory
contracts and unexpired leases assumed by the Borrower.

      "Pledged Collateral" means, collectively, the Pledged Notes, the Pledged
Stock, the Pledged Partnership Interests, the Pledged LLC Interests, any other
Investment Property of any Grantor, all certificates or other instruments
representing any of the foregoing, all Security Entitlements of any Grantor in
respect of any of the foregoing, all dividends, interest distributions, cash,
warrants, rights, instruments and other property or Proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the foregoing. Pledged Collateral may be General Intangibles or
Investment Property.

      "Pledged Collateral Schedule" means a schedule of the Borrower to be
delivered to the Lender on the Closing Date setting forth the Pledged Notes,
Pledged Stock, Pledged Partnership Interests and Pledged LLC Interests pledged
hereunder by each Grantor.

      "Pledged LLC Interests" means all of any Grantor's right, title and
interest as a member of any limited liability company and all of such Grantor's
right, title and interest in, to and under any limited liability company
agreement to which it is a party.

      "Pledged Notes" means all right, title and interest of any Grantor in the
Instruments evidencing all Indebtedness owed to such Grantor issued by the
obligors named therein, and all interest, cash, Instruments and other property
or Proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Indebtedness.

                                       10
<PAGE>
      "Pledged Partnership Interests" means all of any Grantor's right, title
and interest as a limited and/or general partner in all Partnerships and all of
such Grantor's right, title and interest in, to and under any partnership
agreements to which it is a party.

      "Pledged Stock" means the shares of Stock owned by each Grantor (except
Globaltel Joint Stock Company), including all shares of Stock listed on the
Pledged Collateral Schedule; provided, however, that only the outstanding Stock
of a Subsidiary that is not a Domestic Subsidiary possessing up to but not
exceeding 65% of the voting power of all classes of Stock of such controlled
foreign corporation entitled to vote shall be deemed to be pledged hereunder.

      "Proceeds" has the meaning specified in Article 9 of the UCC.

      "QUALCOMM" means QUALCOMM Incorporated.

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

      "Real Property" means all of those plots, pieces or parcels of land now
owned or leased or hereafter acquired by the Borrower or any of its Subsidiaries
(the "Land"), together with the right, title and interest of the Borrower, if
any, in and to the streets, the land lying in the bed of any streets, roads or
avenues, opened or proposed, in front of, the air space and development rights
pertaining to the Land and the right to use such air space and development
rights, all rights of way, privileges, liberties, tenements, hereditaments and
appurtenances belonging or in any way appertaining thereto, all fixtures, all
easements now or hereafter benefiting the Land and all royalties and rights
appertaining to the use and enjoyment of the Land, including, without
limitation, all alley, vault, drainage, mineral, water, oil and gas rights,
together with all of the buildings and other improvements now or hereafter
erected on the Land, and any fixtures appurtenant thereto.

      "Reorganization Cases" means the cases of the Borrower and the Guarantors
pursuant to chapter 11 of the Bankruptcy Code pending in the Bankruptcy Court.

      "Requirement of Law" means, as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and all federal, state and local laws, roles and regulations, and all
orders, judgments, decrees or other determinations of any Governmental Authority
or arbitrator, applicable to or binding upon such Person or any of its property
or to which such Person or any of its property is subject.

      "Responsible Officer" means, with respect to any Person, any of the
principal executive officers, managing members or general partners of such
Person but in any event, with respect to financial matters, the chief financial
officer, treasurer or controller of such Person.

      "Standstill Period" means thirty (30) business days, such period to
commence upon the delivery of the Lender's written notice of termination and
acceleration given pursuant to Section 7.1.

                                       11
<PAGE>
      "Stock" means shares of capital stock (whether denominated as common stock
or preferred stock), beneficial, partnership or membership interests,
participations or other equivalents (regardless of how designated) of or in a
corporation, partnership, limited liability company or equivalent entity,
whether voting or non-voting and any and all interest, warrants and options to
purchase any of the foregoing.

      "Subsidiary" means, with respect to any Person, any corporation,
partnership or other business entity of which an aggregate of 50% or more of the
outstanding Stock having ordinary voting power to elect a majority of the board
of directors, managers, trustees or other controlling persons, is, at the time,
directly or indirectly, owned or controlled by such Person and/or one or more
Subsidiaries of such Person (irrespective of whether, at the time, Stock of any
other class or classes of such entity shall have or might have voting power by
reason of the happening of any contingency). As used herein, unless the context
requires otherwise, "Subsidiary" means a direct or indirect Subsidiary of the
Borrower.

      "Supporting Obligations" has the meaning specified in Article 9 of the
UCC.

      "Taxes" has the meaning specified in Section 2.8(a).

      "Term Loan" means each loan made by the Lender to the Borrower pursuant to
Section 2.1.

      "Term Loan Borrowing" means a borrowing consisting of Term Loans made on
the same day.

      "Term Loan Draw Conditions" means all of the conditions precedent to the
obligation of the Lender to make Term Loans set forth in Section 3.1.

      "Term Loan Note" means a promissory note of the Borrower, payable to the
order of the Lender in a principal amount equal to the amount of the Term Loan
Commitment as originally in effect, in substantially the form of Exhibit A-1,
evidencing the aggregate Indebtedness of the Borrower to the Lender resulting
from the Term Loans made by the Lender.

      "Trademarks" means (a) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade styles, service
marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, and (b) the right to obtain all renewals thereof.

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

      "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of New York.

                                       12
<PAGE>
      "Wind-Down Budget" means that certain Wind-Down Budget provided by
Borrower to Lender reflecting Borrower's best faith estimate of Wind-Down Costs.

      "Wind-Down Costs" means the Administrative Expenses and actual wind-down
costs to liquidate the Borrower and the Guarantors in the event the transactions
contemplated by the Investment Agreement are not consummated and the Borrower
liquidates.

      "Wind-Down Funds" means the sum of (i) $10,000,000, (ii) the "Prepaids,
Deposits and Retainers" in the amount of $1,045,000 identified in the Wind-Down
Budget (iii) when available, the recovery of the payments on account of the 2
GHz contract with Space Systems/Loral, Inc. (the "Loral Refund"), (iv) when
available, the proceeds from the settlement with Elsacom S.p.A. and/or its
affiliates as described in the related motion filed by the Borrower and the
Guarantors filed with the Bankruptcy Court on January 22, 2003, and (v) cash
held by entities control of which is acquired by the Borrower as a result of the
Loral settlement transactions; provided, however, that in no event shall the
Wind-Down Funds exceed $15,000,000.

      Section 1.2 Computation of Time Periods. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding" and the word "through" means "to and including."

      Section 1.3 Accounting Terms. All accounting terms not specifically
defined herein shall be construed in conformity with GAAP and all accounting
determinations required to be made pursuant hereto shall, unless expressly
otherwise provided herein, be made in conformity with GAAP.

      Section 1.4 Certain Terms. (a) The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a
whole, and not to any particular Article, Section, subsection or clause in this
Agreement.

      (b) References herein to an Exhibit, Schedule, Article, Section,
subsection or clause refer to the appropriate Exhibit or Schedule to, or
Article, Section, subsection or clause in this Agreement.

      (c) Each agreement defined in this Article I shall include all appendices,
exhibits and schedules thereto and any references in this Agreement to such
agreement shall be to such agreement as so amended, restated, supplemented or
modified from time to time.

      (d) References in this Agreement to any statute shall be to such statute
as amended or modified and in effect at the time any such reference is
operative.

      (e) The term "Lender" includes its respective successors and each
permitted assignee of such Lender who becomes a party hereto pursuant to Section
10.14.

      (f) Terms not otherwise defined herein and defined in the UCC are used
herein with the meanings specified in the UCC.

                                       13
<PAGE>
                                   ARTICLE II

                         AMOUNTS AND TERMS OF THE LOANS

      Section 2.1 The Term Loans. (a) Subject to the terms and conditions
hereof, the Lender agrees to make term loans (each, a "Term Loan") to the
Borrower from time to time on any Business Day during the period from the date
of satisfaction or waiver in writing of all of the Term Loan Draw Conditions (as
provided in Section 3.1 with respect to the Initial Loan and Section 3.2 with
respect to all Term Loans) until the Maturity Date in an aggregate principal
amount not to exceed the Term Loan Commitment.

      (b) The Term Loans shall be evidenced by the Term Loan Notes.

      Section 2.2 Making the Loans. (a) Each Term Loan Borrowing (other than
with respect to the initial Borrowing made hereunder) shall be made on notice,
given by the Borrower to the Lender not later than 11:00 A.M. (New York City
time) at least two (2) Business Days prior to the date of the proposed Term Loan
Borrowing. Each such notice (a "Notice of Borrowing") shall be in substantially
the form of Exhibit D, which Notice of Borrowing shall specify (i) the date of
the requested Borrowing, (ii) the amount of such Borrowing and (iii) the
Permitted Expenditures to be paid with the proceeds of such Borrowing.

      (b) Each Term Loan Borrowing shall be in an aggregate amount of not less
than $1,000,000 and no more than one Term Loan Borrowing shall be made during
any calendar month.

      (c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower.

      Section 2.3 Repayment. Except as provided in Section 1.6 of the Investment
Agreement, the Borrower shall repay the entire unpaid principal amount of the
Term Loans and all other outstanding Obligations on the Maturity Date.

      Section 2.4 Prepayments. (a) The Borrower shall have no right to prepay
the principal amount of any Term Loan other than as provided in this Section
2.4.

      (b) The Borrower may, upon at least three (3) Business Days' prior notice
to the Lender stating the proposed date and aggregate principal amount of the
prepayment, prepay the outstanding principal amount of the Loans in whole or in
part, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided, however, that each partial prepayment shall
be in an aggregate principal amount not less than $250,000 or integral multiples
of $50,000 in excess thereof. Upon the giving of such notice of prepayment, the
principal amount of the Loans specified to be prepaid shall become due and
payable on the date specified for such prepayment. Any such prepayment of a Term
Loan shall result in a permanent reduction in the Commitment.

      Section 2.5 Interest. (a) All Loans and the outstanding amount of all
other Obligations shall bear interest, in the case of Loans, on the unpaid
principal amount thereof from the date such Loans are made and, in the case of
such other Obligations, from the date such

                                       14
<PAGE>
other Obligations are due and payable until, in all cases, paid in full, at a
rate equal to eight percent ( 8% ) per annum.

      (b) Interest accrued on the Loans shall be capitalized on each Interest
Payment Date and added to the outstanding principal amount of the Loans, which
capitalized interest shall be evidenced by the PIK Interest Note. The Lender is
hereby authorized to endorse on the grid attached to the PIK Interest Note the
amount of interest capitalized and evidenced by the PIK Interest Note.

      (c) Interest accrued on the Loans shall be cancelled when the outstanding
principal amount of the Loans is cancelled.

      Section 2.6 Payments and Computations. (a) The Borrower shall make each
payment hereunder and under the Notes not later than 1:00 P.M. (New York City
time) on the day when due, in Dollars, to the Lender at the address set forth in
Section 10.2 in immediately available funds without set-off or counterclaim.

      (b) All computations of interest shall be on the basis of a year of 365
days for the actual number of days occurring in the period for which such
interest is payable.

      (c) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest.

      Section 2.7 Application of Payments. All payments (including prepayments)
on the Loans or any other Obligations other than the capitalization of interest
as set forth in Section 2.5(b) shall be made to the Lender for application
against the Obligations as follows (regardless of how the Lender may treat such
payments for purposes of its own accounting): first to then due and outstanding
fees, expenses or other charges of the Lender under this Agreement or any of the
other Loan Documents to the extent payable by the Borrower; second to then due
interest on any principal amount of Loans prepaid, if any; third to the
principal balance of the PIK Interest Note; and fourth to the principal balance
of the Term Loans.

      Section 2.8 Taxes. (a) Any and all payments by the Borrower to or for the
account of the Lender under each Loan Document shall be made free and clear of
and without deduction for any and all present or future taxes, duties, levies,
imposts, deductions, assessments, fees, charges or withholdings, and all
liabilities with respect thereto, excluding, in the case of the Lender, taxes
measured by its overall net income, and franchise taxes imposed on it (in lieu
of net income taxes), by the jurisdiction under the laws of which the Lender is
organized or any political subdivision thereof (all such non-excluded taxes,
levies, duties, imposts, deductions, assessments, fees, charges, withholdings
and liabilities being hereinafter referred to as "Taxes"). If the Borrower shall
be required by law to deduct any Taxes from or in respect of any sum payable to
the Lender hereunder or under any Loan Document (i) the sum payable shall be
increased as may be necessary so that after making all required deductions
(including, without limitation, deductions applicable to additional sums payable
under this Section 2.8) the Lender receives an amount equal to the sum it would
have received had no such

                                       15
<PAGE>
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxing authority or
other authority in accordance with applicable law and (iv) within thirty (30)
Business Days after the date of such payment, the Borrower shall deliver to the
Lender the original or a certified copy of a receipt evidencing such payment to
the relevant taxation or other authority.

      (b) In addition, the Borrower agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies of the United States or any political subdivision thereof or any
applicable foreign jurisdiction which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement, or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

      (c) The Borrower agrees to indemnify the Lender for (i) the full amount of
Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by
any jurisdiction on amounts payable under this Section 2.8) paid by the Lender,
and (ii) any liability (including additions to tax, penalties, interest and
expenses) arising therefrom or with respect thereto, in each case whether or not
such Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant taxation or other authority. Payment under this subsection (d) shall be
made within thirty (30) Business Days after the date the Lender makes a demand
therefor.

                                  ARTICLE III

                              CONDITIONS OF LENDING

      Section 3.1 Conditions Precedent to Initial Loans under Term Loan
Commitment. The obligation of the Lender to make the initial Loans requested to
be made by it under the Term Loan Commitment is subject to the satisfaction of
all the following conditions precedent on or before May 22, 2003:

      (a) Financing Order and Bankruptcy Court Proceedings.

            (i) The Financing Order shall have been entered by the Bankruptcy
      Court, and no provisions of such order shall have been stayed or vacated.

            (ii) A Final Order approving the Investment Agreement, in form and
      substance reasonably satisfactory to Lender, shall have been entered by
      the Bankruptcy Court and any or all provisions of such order shall not
      have been stayed or vacated.

      (b) Existing DIP Loan Agreement. Lender's reasonable satisfaction that the
loans under the Existing DIP Loan Agreement will be indefeasibly satisfied in
full and all liens securing its repayment shall be terminated and released
simultaneously with funding of the initial Loans hereunder; provided, that the
"Commitment Fee" (as defined in the Existing DIP Loan Agreement) shall be
required to be paid when and on the terms set forth in that certain Waiver and
Consent Letter Agreement to the Existing DIP Loan Agreement of even date
herewith.

                                       16
<PAGE>
      (c) Certain Documents. The Lender shall have received the following
documents:

            (i) This Agreement, duly executed and delivered by the Borrower and
      each Guarantor;

            (ii) The Notes and other Loan Documents, duly executed and delivered
      by the Borrower and Guarantors, as applicable;

            (iii) A certificate, signed by a Responsible Officer of each Credit
      Party other than LQP, stating that each of the conditions specified in
      Sections 3.2(a), (b) and (c) has been satisfied;

            (iv) The Investment Agreement, in form and substance reasonably
      satisfactory to the Lender, duly executed and delivered by the Borrower
      and Lender, and approved by the Committee; and

            (v) The Pledged Collateral.

      Section 3.2 Conditions Precedent to Each Loan. The obligation of the
Lender to make any Term Loan on any date (including the Closing Date) shall be
subject to the satisfaction of all of the following conditions precedent:

      (a) The representations and warranties set forth in Article IV and in the
other Loan Documents shall be true and correct in all material respects on and
as of such date as though made on and as of such date other than any such
representations and warranties that, by their terms, refer to an earlier date;
provided, that the Borrower shall not be required to certify as to the
representations and warranties made by LQP in the LQP Pledge Agreement.

      (b) The making of the Loans on such date shall not violate any Requirement
of Law and is not subject to any stay or injunction, whether temporary,
preliminary or permanent.

      (c) No Event of Default shall have occurred and be continuing.

      (d) The Investment Agreement shall not have been terminated.

      (e) Each of the Term Loan Draw Conditions shall have been satisfied or
waived by the Lender.

      Section 3.3 Other Conditions Precedent. The obligation of Lender to make
any Term Loan on any date (including the Closing Date) that would result in the
aggregate amount of Term Loans exceeding $20,000,000 shall be subject to the
following condition precedent:

      (a)   Lender shall have received evidence of agreements between Borrower
            and QUALCOMM, on terms reasonably satisfactory to Lender, as to the
            following:

                                       17
<PAGE>
            i.    transfer by QUALCOMM to the Borrower or New Globalstar of all
                  handset inventories (which shall be in good working order) and
                  chipsets for Globalstar products currently owned by QUALCOMM
                  at no additional cost to Borrower or New Globalstar for the
                  handsets and at reasonable pricing for the chipsets;

            ii.   grant by QUALCOMM to one or more third parties of a
                  non-exclusive, perpetual, irrevocable worldwide license
                  (including rights to sublicense) to manufacture user terminals
                  and gateways using the applicable CDMA technology, at
                  commercially reasonable royalty rates and to provide the
                  necessary technical information to make the manufacture by
                  such third parties feasible;

            iii.  provision by QUALCOMM to New Globalstar of continued tier 3
                  support with respect to intellectual property and maintenance
                  support for Borrower's gateways for the benefit of New
                  Globalstar and its service providers on commercially
                  reasonable terms;

            iv.   the modification of the Contract for OmniTRACS-Like Services,
                  dated March 23, 1994, between QUALCOMM and Borrower, to
                  provide for market-based pricing and to eliminate exclusivity;

            v.    the upgrading of gateway software to current version for each
                  of the gateways, including gateways in storage, on
                  commercially reasonable terms;

            vi.   confirmation that New Globalstar has a perpetual, royalty
                  free, irrevocable right to use and modify all intellectual
                  property rights associated with that portion of the Borrower's
                  satellite system and ground network provided by QUALCOMM; and

            vii.  agreement by QUALCOMM to incorporate all new applicable
                  features, improvements and enhancements to QUALCOMM's core
                  CDMA technology into new generation of chipsets for use with
                  the Borrower's satellite system on commercially reasonable
                  terms, or to permit one or more third parties to manufacture
                  and incorporate such features, improvements and enhancements
                  into new generations of chipsets for use with the Debtors'
                  satellite system, and to provide necessary support and
                  know-how to such third parties, all on commercially reasonable
                  terms.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

      To induce the Lender to enter into this Agreement, the Borrower and each
Guarantor represents and warrants to the Lender as of the date hereof:

                                       18
<PAGE>
      Section 4.1 Corporate Existence; Compliance with Law. (a) The Borrower is
a limited partnership duly organized, validly existing and in good standing
under the laws of the State of Delaware. Each of the Borrower's Subsidiaries
that is (i) a corporation is duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, (ii) a limited
liability company is duly organized, validly existing and in good standing under
the jurisdiction of its formation and (iii) a limited partnership is duly
organized and validly existing under the laws of the jurisdiction of its
formation.

      (b) Except as set forth in Schedule 4.1, each of the Borrower and its
Subsidiaries (i) is duly qualified or licensed as a foreign limited partnership,
limited liability company or corporation, as applicable, in each jurisdiction in
which its ownership of properties or the conduct of its business requires such
qualification or licensing except for failures to be so qualified or licensed
which in the aggregate would not reasonably be expected to have a Material
Adverse Effect; (ii) has all requisite limited partnership, limited liability
company or corporate power, as applicable, and authority and the legal right to
own, pledge, mortgage and operate its properties, to lease the property it
operates under lease and to conduct its business as now or currently proposed to
be conducted; (iii) is in compliance with its certificate of limited partnership
and partnership agreement, certificate of formation of limited liability company
and limited liability company agreement, or certificate of incorporation and
by-laws, as applicable; (iv) is in compliance with all other applicable
Requirements of Law, except for such noncompliances as individually or in the
aggregate would not reasonably be expected to have a Material Adverse Effect and
Requirements of Law that are stayed as a result of the commencement of the
Reorganization Cases; and (v) has made all necessary filings with, and has given
all necessary notices to, the FCC to the extent required for such ownership and
use with respect to the FCC Licenses, except for failures to file or give notice
which individually or in the aggregate would not reasonably be expected to have
a Material Adverse Effect.

      Section 4.2 Corporate Power; Authorization; Enforceable Obligations.
Except as set forth in Schedule 4.2:

      (a) The execution, delivery and performance by the Borrower and each
Guarantor of the Loan Documents to which it is a party and the consummation of
the transactions related to the financing contemplated hereby:

            (i) are within its limited partnership, limited liability company or
      corporate powers, as applicable;

            (ii) have been duly authorized by all necessary limited partnership,
      limited liability company or corporate action, as applicable;

            (iii) do not and will not (A) contravene its respective certificate
      of limited partnership or partnership agreement, certificate of limited
      liability company or limited liability company agreement, or certificate
      of incorporation or by-laws, as applicable, (B) upon entry of the
      Financing Order by the Bankruptcy Court violate any other applicable or
      enforceable Requirement of Law, or any applicable or enforceable order or
      decree of any Governmental Authority or arbitrator, (C) result in the
      breach of, or constitute a default under, or result in or permit the
      termination or acceleration of, any

                                       19
<PAGE>
      Contractual Obligation of the Borrower or any Guarantor, the effect of
      which will not be subject to the automatic stay pursuant to section 362 of
      the Bankruptcy Code or (D) result in the creation or imposition of any
      Lien upon any of its property other than Liens in favor of the Lender
      pursuant to the Loan Documents; and

            (iv) do not require the consent of, authorization by, approval of,
      notice to, acts by or filing or registration with, any Governmental
      Authority or any other Person, except as otherwise ordered by the
      Bankruptcy Court or required by the Bankruptcy Code or the Bankruptcy
      Rules.

      (b) This Agreement has been, and each of the other Loan Documents will
have been upon delivery thereof pursuant to Section 3.1, duly executed and
delivered for the benefit of or on behalf of each Credit Party party thereto.
This Agreement and the other Loan Documents will be, when delivered pursuant
hereto, the legal, valid and binding obligation of such Credit Party,
enforceable against it in accordance with its terms and the Financing Order.

      Section 4.3 Ownership of Subsidiaries. Set forth on Schedule 4.3 is a
complete and accurate list, as of the Closing Date, of all Subsidiaries of the
Borrower and, as to each such Subsidiary, the exact legal name, jurisdiction of
its incorporation or organization, taxpayer identification number, the number of
shares authorized (in the case of capital stock) and the number and/or
percentage of such outstanding shares of each such class or partnership or
limited liability company interests owned (directly or indirectly) by the
Borrower, any other Grantor or any other owner. Except as set forth in Schedule
4.3, no Stock of any Subsidiary of the Borrower is subject to any outstanding
option, warrant, right of conversion or purchase or any similar right. All of
the outstanding Stock of each Subsidiary of the Borrower owned (directly or
indirectly) by the Borrower (including the Pledged Stock) has been duly and
validly issued and is owned by the Borrower or a Subsidiary of the Borrower,
free and clear of all Liens except those created under the Loan Documents and
the Financing Order. All of outstanding shares of Stock that are owned by the
Borrower of each Subsidiary that is a corporation are fully paid and
nonassessable. All partnership or limited liability company interests of each
Subsidiary that is a limited partnership or limited liability company, as the
case may be, owned by the Borrower are fully paid and nonassessable to the
extent required as of the date of this Agreement. Neither the Borrower nor any
such Subsidiary is a party to, or has knowledge of, any agreement restricting
the transfer or hypothecation of any Stock of any such Subsidiary, other than
the Loan Documents.

      Section 4.4 Secured, Super Priority Obligations. (a) On and after the
Closing Date, the provisions of the Loan Documents and the Financing Order are
effective to create in favor of the Lender, legal, valid and perfected Liens on
and security interests (having the priority provided for herein and in the
Financing Order) in all right, title and interest in the Collateral, enforceable
against each Grantor that owns interest in such Collateral.

      (b) All Obligations and all other amounts owing by the Borrower hereunder
and under the other Loan Documents and by the Guarantors under the Guaranty in
respect thereof will be secured pursuant to section 364(c)(2) of the Bankruptcy
Code and the Financing Order, by a first priority perfected security interest in
and Lien on, and mortgage against, all of

                                       20
<PAGE>
the Collateral and all Proceeds, rents and products of all of the foregoing and
all distributions thereon that are unencumbered as of the date hereof.

      (c) All Obligations and all other amounts owing by the Borrower hereunder
and under the other Loan Documents and by the Guarantors under the Guaranty in
respect thereof will be secured pursuant to section 364(c)(3) of the Bankruptcy
Code and the Financing Order, by a perfected junior security interest in and
Lien on, and mortgage against, all of the Collateral that is subject to the
Permitted Liens.

      (d) Pursuant to section 364(c)(1) of the Bankruptcy Code and the Financing
Order, all Obligations and other amounts owing by the Borrower hereunder and
under the other Loan Documents and by Guarantors under the Guaranty in respect
thereof at all times will constitute allowed super-priority administrative
expense claims in the Reorganization Cases having priority over all
administrative expenses of the kind specified in sections 503(b) or 507(b) of
the Bankruptcy Code, provided, however, that the foregoing super-priority
administrative claims (i) shall be subordinated to the Wind-Down Costs only to
the extent of the Wind Down Funds and (ii) shall not be paid from the Avoidance
Actions.

      Section 4.5 Use of Proceeds. The proceeds of the Loans shall be used
solely by the Borrower to pay the Permitted Expenditures.

      Section 4.6 Intellectual Property.

      (a) Except as set forth in Schedule 4.6, the Borrower and its Subsidiaries
own or license or otherwise have the right to use all Intellectual Property that
is necessary for the operation of their respective businesses or otherwise held
by the Borrower and its Subsidiaries, without infringement upon or conflict with
the rights of any other Person with respect thereto, including all trade names
associated with any private label brands of the Borrower or any of its
Subsidiaries except where the failure to so own or license or otherwise obtain
the right to use, individually or in the aggregate, would not have a Material
Adverse Effect or where any such infringement or conflict, individually or in
the aggregate, would not have a Material Adverse Effect. Except as set forth in
Schedule 4.6, to the actual knowledge of the Borrower following reasonable
inquiry by its Responsible Officers, (a) no slogan or other advertising device,
product, process, method, substance, part or component, or other material now
employed, or now contemplated to be employed, in the ordinary course of business
by the Borrower or any of its Subsidiaries infringes upon or conflicts with any
rights owned by any other Person, except where any such infringement or
conflict, individually or in the aggregate, would not have a Material Adverse
Effect, and (b) as of the date of this Agreement, no material claim or
litigation regarding any of the foregoing is pending or threatened.

      (b) Except as set forth on Schedule 4.6, no Grantor owns any material
Trademarks, Patents or Copyrights or has any material Trademarks, Patents or
Copyrights registered in, or the subject of pending applications in, the United
States Patent and Trademark Office or any similar office or agency in any other
country or any political subdivision thereof. The registrations for the
Collateral disclosed on Schedule 4.6 are valid and subsisting and in full force
and effect to the extent they are necessary for the operation of the business of
such Grantor in the reasonable business judgment of such Grantor and material to
the assets, properties,

                                       21
<PAGE>
condition (financial or otherwise), operations or prospects of the Borrower and
its Subsidiaries taken as a whole, except where the failure to maintain a valid
and subsisting registration with respect to such collateral, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect. None of the material Patents or Copyrights necessary for the operation
of the business of such Grantor in the reasonable business judgment of such
Grantor have been abandoned or dedicated, except where such abandonment or
dedication, individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect.

      Section 4.7 Pledged Collateral.

      (a) The Pledged Stock, Pledged Partnership Interests and Pledged LLC
Interests pledged hereunder by each Grantor constitutes that percentage of the
issued and outstanding equity of all classes of each issuer thereof as set forth
on the Pledged Collateral Schedule.

      (b) (i) All of the Pledged Stock, Pledged Partnership Interests and
Pledged LLC Interests have been duly and validly issued and (ii) all of the
Pledged Stock is fully paid and nonassessable and, to the extent required as of
the date of this Agreement, all of the Pledged Partnership Interests and Pledged
LLC Interests are fully paid and nonassessable.

      (c) Each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

      (d) All Pledged Collateral consisting of certificated securities has been
delivered to the Lender on or prior to the Closing Date to the extent requested
by the Lender.

      (e) Other than the Pledged Partnership Interests and the Pledged LLC
Interests that constitute General Intangibles, there is no Pledged Collateral
other than that represented by certificated securities in the possession of the
Lender on the Closing Date.

      (f) No Person other than the Lender has control within the meaning of the
UCC over any Investment Property of such Grantor.

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS

      As long as any of the Obligations or any portion of the Commitment remains
outstanding, unless the Lender otherwise consents in writing, the Borrower and
each Guarantor agrees with the Lender that:

      Section 5.1 Compliance with Laws, Etc. The Borrower and each Guarantor
shall comply in all material respects with all applicable laws, rules,
regulations and orders, except where (a) the failure to comply would not
reasonably be expected to have a

                                       22
<PAGE>
Material Adverse Effect or (b) compliance is prohibited by, in conflict with, or
excused by, the Bankruptcy Code, the Bankruptcy Rules or order of the Bankruptcy
Court.

      Section 5.2 Maintenance of Existence. The Borrower and each Guarantor
shall maintain and preserve, in each case as in effect on the date hereof, its
respective existence as a corporation or other form of business organization in
good standing, as the case may be, and all material rights, privileges, FCC
Licenses, Patents, Patent Licenses, Copyrights, Copyright Licenses, Trademarks,
Trademark Licenses, trade names and franchises necessary in the reasonable
business judgment of such Credit Party to the operations of the business of such
Credit Party, except where the failure to do so results solely from the
commencement of the Reorganization Cases and except as permitted in Section 6.3.

      Section 5.3 Access. The Borrower and each Guarantor shall, at any
reasonable time and from time to time, upon prior reasonable notice, permit the
Lender, or any agents or representatives thereof, to (a) examine and make copies
of and abstracts from its records and books of account, (b) visit its properties
and inspect the Collateral of such Grantor, (c) discuss its affairs, finances
and accounts with any of its respective officers or directors and (d)
communicate directly with its independent certified public accountants.

      Section 5.4 Keeping of Books. The Borrower and each Guarantor shall keep
proper books of record and account, in which full and correct entries in all
material respects shall be made of all of its financial transactions, assets and
business in conformity with GAAP and all Requirements of Law.

      Section 5.5 Use of Proceeds. The Borrower shall use the entire amount of
the proceeds of the Loans only as provided in Section 4.5; provided, however,
that the Borrower shall not use the proceeds from any Loans for any purpose
(whether or not permitted pursuant to Section 4.5) that is improper under the
Bankruptcy Code.

      Section 5.6 Further Assurances. The Borrower and each Guarantor shall
perform, make, execute and deliver all such additional and further acts, things,
deeds, occurrences and instruments as the Lender may reasonably require to
document and consummate the transactions contemplated hereby and to vest
completely in and ensure the Lender its respective rights under this Agreement,
the Notes and the other Loan Documents.

      Section 5.7 Secured Indebtedness. To the knowledge of the Borrower, there
exists no indebtedness of the Borrower for borrowed money secured by any Lien
upon or in property owned by the Borrower as of the date hereof other than
Indebtedness in respect of the Existing DIP Loan Agreement.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

      As long as any of the Obligations or any portion of the Commitment remains
outstanding, without the written consent of the Lender, the Borrower and each
Guarantor agrees with the Lender that, except to the extent necessary to
implement the Settlement Agreement between Loral Space & Communications Ltd. and
the Borrower (all agreements necessary to

                                       23
<PAGE>
implement such Settlement Agreement shall be subject to the approval of Lender,
such consent not to be unreasonably withheld or delayed):

      Section 6.1 Liens, Etc. Neither the Borrower nor any of it Subsidiaries
shall create or suffer to exist any Lien upon or with respect to any of its
properties, whether now owned or hereafter acquired, or assign any right to
receive income, except for (collectively, the following are hereinafter referred
to as the "Permitted Liens"): (a) Liens created pursuant to the Loan Documents
and authorized by the Financing Order; (b) purchase money Liens upon or in any
property hereinafter acquired by the Borrower or such Subsidiary in the ordinary
course of business that are Permitted Expenditures to secure the purchase price
of such property or to secure Indebtedness incurred solely for the purpose of
financing the acquisition of such property, including Liens to secure Capital
Lease Obligations; (c) any Lien securing the renewal, extension or refunding of
any Indebtedness or other Obligation secured by any Lien permitted by subsection
(b) of this Section 6.1 without any increase in the amount secured thereby or in
the assets subject to such Lien; (d) Liens arising by operation of law in favor
of materialmen, mechanics, warehousemen, carriers, lessors or other similar
Persons incurred by the Borrower or such Subsidiary in the ordinary course of
business which secure its obligations to such Person; (e) Liens securing taxes,
assessments or governmental charges or levies, exclusive of any such Liens
asserted by the FCC; (f) Liens incurred in the ordinary course of business in
connection with workers' compensation, unemployment insurance, old-age pensions
and other social security benefits; (g) Liens securing the performance of
statutory obligations, surety and appeal bonds and other obligations of like
nature, incurred as an incident to and in the ordinary course of business, and
judgment liens; (h) zoning restrictions, easements, licenses, reservations and
similar restrictions on the use of real property or minor irregularities
incident thereto which do not in the aggregate materially detract from the value
or use of the property or assets of the Borrower or such Subsidiary or impair,
in any material manner, the use of such property for the purposes for which such
property is held by the Borrower or such Subsidiary; (i) valid, perfected and
enforceable Liens of record existing immediately prior to the Petition Date; and
(j) Liens created pursuant to the Existing DIP Loan Agreement so long as the
Existing DIP Loan Agreement remains effective.

      Section 6.2 Indebtedness. Neither the Borrower nor any Guarantor shall
create or suffer to exist any Indebtedness except: (i) the Obligations; (ii)
Indebtedness outstanding on the Petition Date; (iii) current liabilities in
respect of taxes, assessments and governmental charges or levies incurred, or
Claims for labor, materials, inventory, services, supplies and rentals incurred,
or for goods or services purchased in the ordinary course of business of the
Borrower or such Guarantor; (iv) Indebtedness arising under any performance bond
reimbursement obligation entered into by the Borrower or such Guarantor; (v)
Indebtedness constituting Administrative Expenses or other administrative
expense obligations incurred in the Reorganization Cases, unless disallowed by
the Bankruptcy Court; (vi) Indebtedness otherwise permitted under this
Agreement; (vii) Indebtedness secured by Permitted Liens; and (viii)
Indebtedness under the Existing DIP Loan Agreement.

      Section 6.3 Mergers, Sale of Assets. Etc. Except in connection with the
Investment Agreement, neither the Borrower nor any of its Subsidiaries shall (a)
directly or indirectly, by operation of law or otherwise, merge with,
consolidate with, acquire all or substantially all of the assets or Stock, or
otherwise combine with, any Person or form any

                                       24
<PAGE>
Subsidiary, (b) sell, convey, transfer, lease or otherwise dispose of any of its
assets or Stock or any interest therein to any Person, or permit or suffer any
other Person to acquire any interest in any of the assets of the Borrower or
such Subsidiary, except (i) the sale or disposition of Inventory or other assets
in the ordinary course of business or other tangible personal property which has
become obsolete or is replaced in the ordinary course of business, and (ii) the
rejection or assumption and assignment of executory contracts and unexpired
leases pursuant to section 365 of the Bankruptcy Code; provided that all
necessary approvals, including the approval of the Bankruptcy Court, have been
obtained, or (c) enter into agreements in respect of any of the foregoing
prohibited transactions.

      Section 6.4 Investments. Neither the Borrower nor any of its Subsidiaries
shall make or commit to make any loan, extension of credit or capital
contribution to, or purchase of any stock, bonds, notes, debentures or other
securities of, or make any other investment in any Person (all such transactions
being called "Investments") except:

      (a) Investments pursuant to the Investment Agreement;

      (b) Investments in cash and cash equivalents;

      (c) Investments existing on the date hereof; or

      (d) Investments made in any Person that are Permitted Expenditures.

      Section 6.5 Restricted Payments. Neither the Borrower nor any of its
Subsidiaries shall, except to the extent provided in the Plan of Reorganization,
and not inconsistent with the Approved Budget, (a) declare, pay or make or
permit any Subsidiary to declare, pay or make (i) any dividends or other
distributions with respect to Stock or rights to acquire Stock or any payment on
account of such Stock, or (ii) any payment of principal or payment of interest
on account of any of its Indebtedness incurred prior to the commencement of the
Reorganization Cases, except as otherwise ordered by the Bankruptcy Court, (b)
set apart assets for a sinking or any analogous fund for the purchase,
redemption, or retirement or other acquisition of, any shares of its Stock or
rights to acquire Stock or any of its Indebtedness or (c) purchase, defease,
acquire, or redeem any of its Indebtedness; provided that the Borrower may make
required or permitted payments or prepayments on the Loans.

      Section 6.6 Transactions With Affiliates. Neither the Borrower nor any of
its Subsidiaries shall enter into any transaction, including any purchase, sale,
lease or exchange of property or the rendering of any service, with any
Affiliate or employee, except transactions that are (a) contemplated by this
Agreement, (b) contemplated by the Investment Agreement, or (c) in the ordinary
course of the Borrower's or such Subsidiary's business and are Permitted
Expenditures.

      Section 6.7 Permitted Expenditures. Neither the Borrower nor any of its
Subsidiaries shall make any expenditure that is not a Permitted Expenditure.

      Section 6.8 Amendment of Charter or Bylaws. Neither the Borrower nor any
of its Subsidiaries shall, except as set forth in the Plan of Reorganization,
amend its

                                       25
<PAGE>
partnership agreement, certificate or articles of incorporation or other
equivalent organizational documents to revise, in any material respect from
their form on the date hereof.

                                  ARTICLE VII

                                   TERMINATION

      Section 7.1 Termination; Acceleration. Upon the termination of the
Investment Agreement (other than as a result of a Borrower Termination Event) or
the occurrence and during the continuation of any Event of Default, without
further order of, application to, or action by, the Bankruptcy Court and without
limiting any other right or remedy, the Lender may, by written notice to the
Borrower and the Committee in accordance with Section 10.2, (a) declare that all
or any portion of the Commitment be terminated, whereupon the obligation of the
Lender to make Loans shall immediately terminate, and (b) declare the Loans, the
PIK Interest Note, all accrued interest thereon and all other amounts and
Obligations payable under this Agreement and the Notes to be forthwith due and
payable, whereupon the Loans, the PIK Interest Note, all such interest and all
such amounts and Obligations shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower.

      Section 7.2 Standstill Period; Exercise of Remedies. Upon expiration of
the applicable Standstill Period following the Lender's written notice of
termination and acceleration given pursuant to Section 7.1, the automatic stay
provided in section 362 of the Bankruptcy Code shall be deemed automatically
vacated without further action or order of the Bankruptcy Court and the Lender
shall be entitled to exercise all of its rights and remedies under the Loan
Documents and applicable law, including, without limitation, all rights and
remedies with respect to the Collateral and the Guarantors.

      Section 7.3 Intentionally Omitted.

      Section 7.4 Borrower Termination Event. Upon the occurrence and during the
continuation of a Borrower Termination Event, the Borrower may, by written
notice to the Lender, terminate this Agreement, upon which termination the
Borrower shall pay to the Lender in full the aggregate outstanding principal
amount of the Loans, the PIK Interest Note and all interest thereon accrued
through the date of such termination. In addition, upon such termination and the
payment in full to the Lender of the Loans, the PIK Interest Note and the
accrued interest thereon, the Borrower shall have no further obligations
hereunder, under any other Loan Documents or the Investment Agreement (other
than indemnification of other contingent obligations that expressly survive
repayment of the Term Loans under this Agreement).

      Section 7.5 Other Termination. In the event the Term Loan Draw Conditions
have not been met or otherwise waived on or before May 29, 2003, either the
Lender or the Borrower may, by written notice to each other and the Committee,
terminate this Agreement. Upon such termination, neither the Lender, ICO nor any
Credit Party shall have any further obligation hereunder, under any other Loan
Document or under the Investment Agreement.

                                       26
<PAGE>
                                  ARTICLE VIII

                                    GUARANTY

      Section 8.1 The Guaranty. In order to induce the Lender to enter into this
Agreement and to extend credit hereunder and in recognition of the direct
benefits to be received by each Guarantor from the proceeds of the Loans, each
Guarantor hereby agrees with the Lender that such Guarantor hereby
unconditionally and irrevocably, jointly and severally, guarantees as primary
obligor and not merely as surety the full and prompt payment and performance by
the Borrower when due, whether upon maturity, by acceleration or otherwise, of
any and all of the Obligations of the Borrower to the Lender. If any or all of
the Obligations of the Borrower to the Lender become due and payable hereunder,
each Guarantor, jointly and severally, unconditionally promises to pay such
Obligations to the Lender, or order, on demand, together with any and all
reasonable expenses which may be incurred by the Lender in collecting any of the
Obligations.

      Section 8.2 Nature of Liability. The liability of each Guarantor hereunder
is exclusive and independent of any security for or other guaranty of the
Obligations of the Borrower whether executed by such Guarantor, any other
Guarantor, any other guarantor or by any other party, and the liability of each
Guarantor hereunder shall not be affected or impaired by (a) any direction as to
application of payment by the Borrower or by any other party, or (b) any other
continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the Obligations of the Borrower, or (c) any payment on
or in reduction of any such other guaranty or undertaking, or (d) any
dissolution, termination or increase, decrease or change in personnel by the
Borrower, or (e) any payment made to the Lender in respect of the Obligations
which the Lender is required to repay to the Borrower pursuant to court order in
any bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceeding, and each Guarantor waives any right to the deferral or modification
of its obligations hereunder by reason of any such proceeding.

      Section 8.3 Independent Obligation. The obligations of each Guarantor
hereunder are independent of the obligations of any other Guarantor, any other
guarantor or the Borrower, and a separate action or actions may be brought and
prosecuted against each Guarantor whether or not action is brought against any
other Guarantor, any other guarantor or the Borrower and whether or not any
other Guarantor, any other guarantor or the Borrower be joined in any such
action or actions. Each Guarantor waives, to the fullest extent permitted by
law, the benefit of any statute of limitations affecting its liability hereunder
or the enforcement thereof. Any payment by the Borrower or other circumstance
which operates to toll any statute of limitations as to the Borrower shall
operate to toll the statute of limitations as to the Guarantor.

      Section 8.4 Authorization. Each Guarantor authorizes the Lender without
notice or demand (except as shall be required by applicable statute and cannot
be waived), and without affecting or impairing its liability hereunder, from
time to time to:

      (a) change the manner or place of payment of, and/or change or extend the
time of payment of, renew, accelerate or alter, any of the Obligations, any
security therefor, or

                                       27
<PAGE>
any liability incurred directly or indirectly in respect thereof, and the
Guaranty herein made shall apply to the Obligations as so changed, extended,
renewed or altered;

      (b) take and hold security for the payment of the Obligations and sell,
exchange, release, surrender, realize upon or otherwise deal with in any manner
and in any order any property by whomsoever at any time pledged or mortgaged to
secure, or howsoever securing, the Obligations or any liabilities (including any
of those hereunder) incurred directly or indirectly in respect thereof or
hereof, and/or any offset there against;

      (c) exercise or refrain from exercising any rights against the Borrower or
others or otherwise act or refrain from acting;

      (d) release or substitute any one or more endorsers, guarantors, the
Borrower or other obligors;

      (e) settle or compromise any of the Obligations, any security therefor or
any liability (including any of those hereunder) incurred directly or indirectly
in respect thereof or hereof, or subordinate the payment of all or any part
thereof to the payment of any liability (whether due or not) of the Borrower to
its creditors;

      (f) apply any sums by whomsoever paid or howsoever realized to any
liability or liabilities of the Borrower to the Lender regardless of what
liability or liabilities of such Guarantor or the Borrower remain unpaid; and/or

      (g) consent to or waive any breach of, or any act, omission or default
under, this Agreement or any of the instruments or agreements referred to
herein, or otherwise amend, modify or supplement this Agreement or any of such
other instruments or agreements.

            Section 8.5 Reliance. It is not necessary for the Lender to inquire
      into the capacity or powers of the Borrower or its Subsidiaries or the
      officers, directors, partners or agents acting or purporting to act on its
      behalf, and any Obligations made or created in reliance upon the professed
      exercise of such powers shall be guaranteed hereunder.

            Section 8.6 Subordination. Any of the Indebtedness of the Borrower
      now or hereafter owing to any Guarantor is hereby subordinated to the
      Obligations of the Borrower; provided, however, that payment may be made
      by the Borrower on any such Indebtedness owing to such Guarantor so long
      as the same is not prohibited by this Agreement; and provided further,
      that if the Lender so requests at a time when a Lender Termination Event
      exists, all such Indebtedness of the Borrower to such Guarantor shall be
      collected, enforced and received by such Guarantor as trustee for the
      Lender and be paid over to the Lender on account of the Obligations of the
      Borrower to the Lender, but without affecting or impairing in any manner
      the liability of such Guarantor under the other provisions of this
      Guaranty. Prior to the transfer by any Guarantor of any note or negotiable
      instrument evidencing any of the Indebtedness of the Borrower to such
      Guarantor, such Guarantor shall mark such note or negotiable instrument
      with a legend that the same is subject to this subordination.

                                       28
<PAGE>
            Section 8.7 Waiver. Subject to Section 9.10, the expiration of the
      applicable Standstill Period and the giving of notice as required by the
      Financing Order:

      (a) Each Guarantor waives any right (except as shall be required by
applicable statute and cannot be waived) to require the Lender to (i) proceed
against the Borrower, any other Guarantor, any other guarantor or any other
party, (ii) proceed against or exhaust any security granted by the Borrower, any
other Guarantor, any other guarantor or any other party or (iii) pursue any
other remedy in the Lender's power whatsoever. Each Guarantor waives (except as
shall be required by applicable statute and cannot be waived) any defense based
on or arising out of any defense of the Borrower, any other Guarantor, any other
guarantor or any other party other than payment in full of the Obligations,
including, without limitation, any defense based on or arising out of the
disability of the Borrower, any other Guarantor, any other guarantor or any
other party, or the unenforceability of the Obligations or any part thereof from
any cause, or the cessation from any cause of the liability of the Borrower
other than payment in full of the Obligations. The Lender may, at its election,
foreclose on any security held by the Lender by one or more judicial or
nonjudicial sales (to the extent such sale is permitted by applicable law), or
exercise any other right or remedy the Lender may have against the Borrower or
any other party, or any security, without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Obligations have
been paid. Each Guarantor waives any defense arising out of any such election by
the Lender, even though such election operates to impair or extinguish any right
of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrower or any other party or any security.

      (b) Each Guarantor waives all presentments, demands for performance,
protests and notices, including without limitation notices of nonperformance,
notices of protest, notices of dishonor, notices of acceptance of this Guaranty,
and notices of the existence, creation or incurring of new or additional
Obligations. Each Guarantor assumes all responsibility for being and keeping
itself informed of the Borrower's financial condition and assets, and of all
other circumstances bearing upon the risk of nonpayment of the Obligations and
the nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that the Lender shall have no duty to advise such
Guarantor of information known to it regarding such circumstances or risks.

                                   ARTICLE IX

                                    SECURITY

      Section 9.1 Security.

      (a) To induce the Lender to make the Loans, each Grantor hereby grants to
the Lender, as security for the full and prompt payment when due (whether at
stated maturity, by acceleration or otherwise) of the Obligations, a continuing
first (or junior, as the case may be) priority Lien and security interest
(subject only to the Permitted Liens) in accordance with sections 364(c)(2) and
(3) of the Bankruptcy Code in and to all Collateral of such Grantor. For
purposes of this Agreement, all of the following property now owned or at any
time hereafter acquired by a Grantor or in which a Grantor now has or at any
time in the future may acquire any right, title or interests is collectively
referred to as the "Collateral":

                                       29
<PAGE>
            (i) All cash and cash equivalents;

            (ii) all Accounts;

            (iii) all Accounts Receivable and Accounts Receivable Records;

            (iv) all books and Records pertaining to the property described in
      this Section 9.1;

            (v) all Chattel Paper;

            (vi) all Documents;

            (vii) all Equipment;

            (viii) all General Intangibles, including all Intellectual Property
      and that portion of the Pledged Collateral constituting General
      Intangibles (provided, however, that notwithstanding any other provision
      in this Agreement or any other Loan Document, the Collateral shall not
      include any FCC Licenses now owned or at any time hereafter acquired by
      any Grantor);

            (ix) all Instruments;

            (x) all Insurance;

            (xi) all Inventory;

            (xii) all Investment Property and that portion of the Pledged
      Collateral constituting Investment Property;

            (xiii) all other Goods and personal property of such Grantor,
      whether tangible or intangible, wherever located;

            (xiv) all Payment Intangibles;

            (xv) all property of any Grantor held by the Lender, including all
      property of every description, in the possession or custody of or in
      transit to the Lender for any purpose, including safekeeping, collection
      or pledge, for the account of such Grantor, or as to which such Grantor
      may have any right or power;

            (xvi) all Real Property;

            (xvii) to the extent not otherwise included, all monies and other
      property of any kind which is, after the Closing Date, received by such
      Grantor in connection with refunds with respect to taxes, assessments and
      governmental charges imposed on such Grantor or any of its property or
      income;

            (xviii) all causes of action and all monies and other property of
      any kind received therefrom by any Grantor;

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<PAGE>
            (xix) to the extent not otherwise included, all Pledged Collateral;

            (xx) to the extent not otherwise included, all Collateral Support
      and Supporting Obligations;

            (xxi) to the extent not otherwise included, all Proceeds of each of
      the foregoing and the sale of the FCC Licenses and all accessions to,
      substitutions and replacements for, and rents, profits and products of,
      each of the foregoing, any and all proceeds of insurance, indemnity,
      warranty or guaranty payable to any Grantor from time to time with respect
      to any of the foregoing;

            (xxii) deposit accounts; and

            (xxiii) commercial tort claims

provided that the Collateral shall expressly exclude the Wind-Down Funds and the
Avoidance Actions and all monies and other property of any kind received
therefrom by any Grantor.

            Section 9.2 Perfection of Security Interests. The Liens and security
      interests granted herein shall be deemed valid, enforceable and perfected
      by entry of the Financing Order. No financing statement, notice of lien,
      mortgage, deed of trust or similar instrument in any jurisdiction or
      filing office need be filed or any other action taken in order to
      validate, perfect, maintain, protect or enforce the Liens and security
      interests granted by or pursuant to this Agreement and the Financing
      Order.

            Section 9.3 Rights of Lender; Limitations on Lender's Obligations.
      Subject to Section 9.10, the expiration of the applicable Standstill
      Period and the giving of notice as required by the Financing Order and in
      any event not inconsistent with the Approved Budget:

      (a) Subject to each Grantor's rights and duties under the Bankruptcy Code
(including section 365 of the Bankruptcy Code), it is expressly agreed by each
Grantor that, anything herein to the contrary notwithstanding, such Grantor
shall remain liable under its Contracts to observe and perform all the
conditions and obligations to be observed and performed by it thereunder. The
Lender shall not have any obligation or liability under any Contract by reason
of or arising out of this Agreement, the Loan Documents, or the granting to the
Lender of a security interest therein or the receipt by the Lender of any
payment relating to any Contract pursuant hereto, nor shall the Lender be
required or obligated in any manner to perform or fulfill any of the obligations
of any Grantor under or pursuant to any Contract, or to make any payment, or to
make any inquiry as to the nature or the sufficiency of any payment received by
it or the sufficiency of any performance by any party under any Contract, or to
present or file any claim, or to take any action to collect or enforce any
performance or the payment of any amounts which may have been assigned to it or
to which it may be entitled at any time or times.

      (b) Subject to Section 9.5, the Lender authorizes each Grantor to collect
its Accounts, provided that such collection is performed in accordance with such
Grantor's

                                       31
<PAGE>
customary procedures, and the Lender may, upon the occurrence and during the
continuation of any Lender Termination Event and without notice limit or
terminate said authority at any time.

      (c) The Lender may at any time, upon the occurrence and during the
continuation of any Lender Termination Event, after first notifying the Borrower
of its intention to do so, notify Account Debtors, notify the other parties to
the Contracts of the Borrower or any other Grantor, notify obligors of
Instruments and Investment Property of the Borrower or any other Grantor and
notify obligors in respect of Chattel Paper of the Borrower or any other Grantor
that the right, title and interest of the Borrower or such Grantor in and under
such Accounts, such Contracts, such Instruments, such Investment Property and
such Chattel Paper have been assigned to the Lender and that payments shall be
made directly to the Lender. Upon the request of the Lender, the Borrower or
such other Grantor will so notify such Account Debtors, such parties to
Contracts, obligors of such Instruments and Investment Property and obligors in
respect of such Chattel Paper. Upon the occurrence and during the continuation
of an Event of Default, the Lender may in its own name, or in the name of
others, communicate with such parties to such Accounts, Contracts, Instruments,
Investment Property and Chattel Paper to verify with such Persons to the
Lender's reasonable satisfaction the existence, amount and terms of any such
Accounts, Contracts, Instruments, Investment Property or Chattel Paper.

            Section 9.4 Covenants of the Grantors with Respect to Collateral.
      Subject to Section 9.10, the expiration of the applicable Standstill
      Period and the giving of notice as required by the Financing Order and in
      any event not inconsistent with the Approved Budget, each Grantor hereby
      covenants and agrees with the Lender that from and after the date of this
      Agreement and until all the Obligations are fully satisfied:

      (a) Limitations on Modifications of Accounts. Such Grantor will not,
without the Lender's prior written consent, grant any extension of the time of
payment of any of the Accounts, Chattel Paper or Instruments, compromise,
compound or settle the same for less than the full amount thereof, release,
wholly or partly, any Person liable for the payment thereof, or allow any credit
or discount whatsoever thereon other than any of the foregoing which are done in
the ordinary course of business, consistent with past practices and trade
discounts granted in the ordinary course of business of such Grantor.

      (b) Notices. Such Grantor will advise the Lender promptly, in reasonable
detail, (i) of any Lien asserted against any of the Collateral other than
Permitted Liens, and (ii) of the occurrence of any other event which would have
a Material Adverse Effect with respect to the aggregate value of the Collateral
or on the security interests created hereunder.

      (c) Pledged Collateral.

            (i) Upon request of the Lender, such Grantor will deliver to the
      Lender, all certificates representing or evidencing any Pledged
      Collateral, whether now arising or hereafter acquired, in suitable form
      for transfer by delivery or, as applicable, accompanied by such Grantor's
      endorsement, where necessary, or duly executed instruments of transfer or
      assignment in blank, all in form and substance satisfactory to the Lender.
      Upon the occurrence and during the continuation of a Lender Termination
      Event, the Lender shall have the right, at any time in its discretion and
      without notice to

                                       32
<PAGE>
      the Grantor, to transfer to or to register in its name or in the name of
      its nominees any or all of the Pledged Collateral. The Lender shall have
      the right at any time to exchange certificates or instruments representing
      or evidencing any of the Pledged Collateral for certificates or
      instruments of smaller or larger denominations.

            (ii) Except as provided in Section 9.7, such Grantor shall be
      entitled to receive all cash dividends paid in respect of the Pledged
      Collateral (other than liquidating or distributing dividends) with respect
      to the Pledged Collateral. Any sums paid upon or in respect of any of the
      Pledged Collateral upon the liquidation or dissolution of any issuer of
      any of the Pledged Collateral, any distribution of capital made on or in
      respect of any of the Pledged Collateral or any property distributed upon
      or with respect to any of the Pledged Collateral pursuant to the
      recapitalization or reclassification of the capital of any issuer of
      Pledged Collateral or pursuant to the reorganization thereof shall, unless
      otherwise subject to a perfected security interest in favor of the Lender,
      be delivered to the Lender to be held by it hereunder as additional
      collateral security for the Obligations. If any sums of money or property
      so paid or distributed in respect of any of the Pledged Collateral shall
      be received by such Grantor, such Grantor shall, until such money or
      property is paid or delivered to the Lender, hold such money or property
      in trust for the Lender, segregated from other funds of such Grantor, as
      additional security for the Obligations.

            (iii) Except as provided in Section 9.7, such Grantor will be
      entitled to exercise all voting, consent and corporate rights with respect
      to the Pledged Collateral; provided that no vote shall be cast, consent
      given or right exercised or other action taken by such Grantor which would
      impair the Collateral or which would be inconsistent with or result in any
      violation of any provision of this Agreement or any other Loan Document
      or, without prior notice to the Lender, to enable or take any other action
      to permit any issuer of Pledged Collateral to issue any stock or other
      equity securities of any nature or to issue any other securities
      convertible into or granting the right to purchase or exchange for any
      stock or other equity securities of any nature of any issuer of Pledged
      Collateral.

            (iv) In the case of each Grantor which is an issuer of Pledged
      Collateral, such Grantor agrees to be bound by the terms of this Agreement
      relating to the Pledged Collateral issued by it and will comply with such
      terms insofar as such terms are applicable to it. In the case of each
      Grantor which is a partner in a Partnership, such Grantor hereby consents
      to the extent required by the applicable Partnership agreement to the
      pledge by each other Grantor, pursuant to the terms hereof, of the Pledged
      Partnership Interests in such Partnership pursuant to the terms hereof and
      to the transfer of such Pledged Partnership Interests to the Lender or its
      nominee and to the substitution of the Lender or its nominee as a
      substituted partner in such Partnership, subject to the terms hereof, with
      all the rights, powers and duties of a general partner or a limited
      partner, as the case may be. In the case of each Grantor which is a member
      of a limited liability company, such Grantor hereby consents to the extent
      required by the applicable a limited liability company agreement to the
      pledge by each other Grantor, pursuant to the terms hereof, of the Pledged
      LLC Interests in such limited liability company and to the transfer of
      such Pledged LLC Interests to the Lender or its nominee and to the
      substitution of the Lender or its nominee as a substituted member of the
      limited liability company pursuant

                                       33
<PAGE>
      to the terms hereof with all the rights, powers and duties of a member of
      the limited liability company in question.

               (v) Such Grantor will not agree to any amendment of a constituent
      document that in any way adversely affects the perfection of the security
      interest of the Lender in the Pledged Partnership Interests or Pledged LLC
      Interests pledged by such Grantor hereunder, including electing to treat
      the membership interest or partnership interest of such Grantor as a
      security under section 8-103 of the UCC.

            (d) Intellectual Property.

               (i) Such Grantor will (i) continue to use each Trademark that is
      material Intellectual Property in order to maintain such Trademark in full
      force and effect with respect to each class of goods for which such
      Trademark is currently used in the ordinary course of business, free from
      any claim of abandonment for non-use, (ii) maintain as in the past the
      quality of products and services offered under such Trademark in the
      ordinary course of business, (iii) use such Trademark in the ordinary
      course of business with the appropriate notice of registration and all
      other notices and legends required by applicable Requirements of Law, (iv)
      not adopt or use any mark in the ordinary course of business which is
      confusingly similar or a colorable imitation of such Trademark unless the
      Lender shall obtain a perfected security interest in such mark pursuant to
      this Agreement and (v) not do any act or knowingly omit to do any act
      whereby such Trademark may become invalidated or impaired in any way in
      the ordinary course of business.

               (ii) Such Grantor will not do any act, or omit to do any act,
      whereby any Patent which is material Intellectual Property may become
      forfeited, abandoned or dedicated to the public unless such act or
      omission would not reasonably be expected to have a Material Adverse
      Effect.

               (iii) Such Grantor (i) will not (and will not permit any licensee
      or sublicensee thereof to) do any act or omit to do any act whereby any
      portion of the Copyrights which is material Intellectual Property may
      become invalidated or otherwise impaired and (ii) will not (either itself
      or through licensees) do any act whereby any portion of the Copyrights
      which is material Intellectual Property may fall into the public domain
      unless such act or omission would not reasonably be expected to have a
      Material Adverse Effect.

               (iv) Such Grantor will not do any act, or omit to do any act,
      whereby any trade secret which is material Intellectual Property may
      become publicly available or otherwise unprotectable unless such act or
      omission would not reasonably be expected to have a
         Material Adverse Effect.

               (v) Such Grantor will not do any act that knowingly uses any
      material Intellectual Property to infringe the intellectual property
      rights of any other Person unless such act or omission would not
      reasonably be expected to have a Material Adverse Effect.

                                       34
<PAGE>
               (vi) Such Grantor will notify the Lender immediately if it knows,
      or has reason to know, that any application or registration relating to
      any material Intellectual Property may become forfeited, abandoned or
      dedicated to the public, or of any adverse determination or development
      (including the institution of, or any such determination or development
      in, any proceeding in the United States Patent and Trademark Office, the
      United States Copyright Office or any court or tribunal in any country)
      regarding such Grantor's ownership of, right to use, interest in, or the
      validity of, any material Intellectual Property or such Grantor's right to
      register the same or to own and maintain the same, unless such event would
      not reasonably be expected to have a Material Adverse Effect.

               (vii) Whenever such Grantor, either by itself or through any
      agent, licensee or designee, shall file an application for the
      registration of any material Intellectual Property with the United States
      Patent and Trademark Office, the United States Copyright Office or any
      similar office or agency within or outside the United States, such Grantor
      shall report such filing to the Lender within (5) five Business Days after
      the last day of the fiscal quarter in which such filing occurs.

               (viii) Such Grantor will take all reasonable actions necessary or
      requested by the Lender, including in any proceeding before the United
      States Patent and Trademark Office, the United States Copyright Office or
      any similar office or agency, to maintain and pursue each application (and
      to obtain the relevant registration) and to maintain each registration of
      any Copyright, Trademark or Patent that is material Intellectual Property,
      including filing of applications for renewal, affidavits of use,
      affidavits of incontestability and opposition and interference and
      cancellation proceedings.

               (ix) In the event that any material Intellectual Property is
      infringed upon or misappropriated or diluted by a third party and such
      event would be reasonably likely to result in a Material Adverse Effect,
      such Grantor shall notify the Lender promptly after such Grantor learns
      thereof. Such Grantor shall take appropriate action in response to such
      infringement, misappropriation or dilution, including promptly bringing
      suit for infringement, misappropriation or dilution and to recover any and
      all damages for such infringement, misappropriation or dilution, and shall
      take such other actions may be appropriate in its reasonable judgment
      under the circumstances to protect such material Intellectual Property.

            Section 9.5 Performance by Lender of the Grantors' Obligations.
      Subject to Section 9.10, the expiration of the applicable Standstill
      Period and the giving of notice as required by the Financing Order, if any
      Grantor fails to perform or comply with any of its agreements contained
      herein and the Lender, as provided for by the terms of this Agreement,
      shall itself perform or comply, or otherwise cause performance or
      compliance, with such agreement, the expenses of the Lender incurred in
      connection with such performance or compliance, together with interest
      thereon at the rate then in effect in respect of the Loan, shall be
      payable by such Grantor to the Lender on demand and shall constitute
      Obligations secured by the Collateral. Performance of such Grantor's
      obligations as permitted under this Section 9.5 shall in no way constitute
      a violation of the

                                       35
<PAGE>
      automatic stay provided by section 362 of the Bankruptcy Code and each
      Grantor hereby waives applicability thereof.

            Section 9.6 Limitation on Lender's Duty in Respect of Collateral.
      The Lender shall not have any duty as to any Collateral in its possession
      or control or in the possession or control of any agent or nominee of it
      or any income thereon or as to the preservation of rights against prior
      parties or any other rights pertaining thereto, except that the Lender
      shall, with respect to the Collateral in its possession or under its
      control, deal with such Collateral in the same manner as the Lender deals
      with similar property for its own account. Upon request of the Borrower,
      the Lender shall account for any moneys received by it in respect of any
      foreclosure on or disposition of the Collateral of any Grantor.

            Section 9.7 Remedies, Rights Upon Lender Termination Event. Subject
      to Section 9.10, the expiration of the applicable Standstill Period and
      the giving of notice as required by the Financing Order:

      (a) If any Lender Termination Event shall occur and be continuing, the
Lender may exercise in addition to all other rights and remedies granted to it
in this Agreement and in any other Loan Document, any or all of the following
rights, remedies and recourses, either successively or concurrently:

            (i) all rights and remedies of a secured party under the UCC or
      other applicable law. Without limiting the generality of the foregoing,
      each Grantor expressly agrees that in any such event the Lender, without
      demand of performance or other demand, advertisement or notice of any kind
      (except the notice specified below of time and place of public or private
      sale) to or upon such Grantor or any other Person (all and each of which
      demands, advertisements and/or notices are hereby expressly waived to the
      maximum extent permitted by the UCC and other applicable law), may
      forthwith collect, receive, appropriate and realize upon the Collateral,
      or any part thereof, and/or may forthwith sell, lease, assign, give an
      option or options to purchase, or sell or otherwise dispose of and deliver
      said Collateral (or contract to do so), or any part thereof, in one or
      more parcels at public or private sale or sales, at any exchange or
      broker's board or at any of the Lender's offices or elsewhere at such
      prices at it may deem best, for cash or on credit or for future delivery
      without assumption of any credit risk. The Lender shall have the right
      upon any such public sale or sales to purchase the whole or any part of
      said Collateral so sold, free of any right or equity of redemption, which
      equity of redemption each Grantor hereby releases to the extent permitted
      by applicable law. Each Grantor further agrees, at the Lender's request,
      to assemble the Collateral and make it available to the Lender at places
      which the Lender shall reasonably select, whether at such Grantor's
      premises or elsewhere. The Lender shall apply the proceeds of any such
      collection, recovery, receipt, appropriation, realization or sale (net of
      all expenses incurred by the Lender in connection therewith, including,
      without limitation, attorney's fees and expenses), to the Obligations in
      any order deemed appropriate by the Lender, such Grantor remaining liable
      for any deficiency remaining unpaid after such application, and only after
      so paying over such net proceeds and after the payment by the Lender of
      any other amount required by any provision of law, including, without
      limitation, the UCC,

                                       36
<PAGE>
      need the Lender account for the surplus, if any, to such Grantor. To the
      maximum extent permitted by applicable law, each Grantor waives all
      claims, damages, and demands against the Lender arising out of the
      repossession, retention or sale of the Collateral except such as arise out
      of the gross negligence or willful misconduct of the Lender. Each Grantor
      agrees that the Lender need not give more than ten (10) days' notice to
      the Borrower (which notification shall be deemed given when mailed or
      delivered on an overnight basis, postage prepaid, addressed to the
      Borrower at its address set forth in Section 10.2) of the time and place
      of any public sale of Collateral or of the time after which a private sale
      may take place and that such notice is reasonable notification of such
      matters. The Lender and its agents shall have the right to enter upon any
      real property owned or leased by any Grantor to exercise any of its rights
      or remedies under this Agreement. The Lender shall not be obligated to
      make any sale of Collateral regardless of notice of sale having been
      given. The Lender may adjourn any public or private sale from time to time
      by announcement at the time and place fixed therefor, and any such sale
      may, without further notice, be made at the time and place to which it was
      adjourned. Each Grantor shall remain liable for any deficiency if the
      proceeds of any sale or disposition of the Collateral are insufficient to
      pay its Obligations and all other amounts to which the Lender is entitled,
      the Grantors also being liable for the fees and expenses of any attorneys
      employed by the Lender to collect such deficiency.

            (ii) Either in person or by agent, with or without bringing any
      action or proceeding, or by a receiver appointed by a court and without
      regard to the adequacy of its security, enter upon the Real Property and
      take possession of the Collateral, or any part thereof, without force or
      with such force as is permitted by law and without notice or process or
      with such notice or process as is required by law, unless such notice and
      process is waivable, in which case Grantor hereby waives such notice and
      process, and do any and all acts and perform any and all work which may be
      desirable or necessary in Lender's judgment to preserve the value,
      marketability or rentability of the Collateral.

            (iii) Upon, or at any time prior or after, initiating the exercise
      of any power of sale, instituting any judicial foreclosure or instituting
      any other foreclosure of the liens and security interests provided for
      herein or any other legal proceedings hereunder, make application to a
      court of competent jurisdiction for appointment of a receiver for all or
      any part of the Collateral, as a matter of strict right and without notice
      to Grantors and without regard to the adequacy of the Collateral for the
      repayment of the Obligations or the solvency of Borrower or any person or
      persons liable for the payment of the Obligations, and Grantors hereby
      irrevocably consent to such appointment, waive any and all notices of and
      defenses to such appointment and agree not to oppose any application
      therefor by Lender, but nothing herein is to be construed to deprive
      Lender of any other right, remedy or privilege Lender may now have under
      the law to have a receiver appointed. Any such receiver shall have all of
      the usual powers and duties of receivers in similar cases, including,
      without limitation, the full power to hold, develop, rent, lease, manage,
      maintain, operate and otherwise use or permit the use of the Collateral
      upon such terms and conditions as said receiver may deem to be prudent and
      reasonable under the circumstances as more fully set forth in Section 9.9
      below.

                                       37
<PAGE>
            (iv) Immediately commence an action to foreclose the real property
      liens granted hereunder in the manner provided for foreclosure of
      leasehold deeds of trust.

            (v) Proceed by suit or suits, at law or in equity to enforce the
      payment of the Obligations, to foreclose the liens and security interests
      granted hereunder as against all or any part of the Collateral, and to
      have all or any part of the Collateral sold under the judgment or decree
      of a court of competent jurisdiction. This remedy shall be cumulative of
      any other non-judicial remedies available to Lender with respect to the
      Loan Documents. Proceeding with such judicial remedies or receiving a
      judgment for legal relief shall not be or be deemed to be an election of
      remedies or bar any available non-judicial remedy of Lender.

      (b) Each Grantor hereby waives presentment, demand, protest or any notice
(to the maximum extent permitted by applicable law) of any kind in connection
with this Agreement or any Collateral.

      (c) Pledged Collateral.

               (i) During the continuance of a Lender Termination Event, if the
      Lender shall give notice of its intent to exercise such rights to the
      relevant Grantor or Grantors, (i) the Lender shall have the right to
      receive any and all cash dividends, payments or other Proceeds paid in
      respect of the Pledged Collateral and make application thereof to the
      Obligations in the order set forth herein, and (ii) the Lender or its
      nominee may exercise (A) all voting, consent, corporate and other rights
      pertaining to the Pledged Collateral at any meeting of shareholders,
      partners or members, as the case may be, of the relevant issuer or issuers
      of Pledged Collateral or otherwise and (B) any and all rights of
      conversion, exchange and subscription and any other rights, privileges or
      options pertaining to the Pledged Collateral as if it were the absolute
      owner thereof (including the right to exchange at its discretion any and
      all of the Pledged Collateral upon the merger, consolidation,
      reorganization, recapitalization or other fundamental change in the
      corporate structure of any issuer of Pledged Collateral, the right to
      deposit and deliver any and all of the Pledged Collateral with any
      committee, depositary, transfer agent, registrar or other designated
      agency upon such terms and conditions as the Lender may determine), all
      without liability except to account for property actually received by it,
      but the Lender shall have no duty to any Grantor to exercise any such
      right, privilege or option and shall not be responsible for any failure to
      do so or delay in so doing.

               (ii) In order to permit the Lender to exercise the voting and
      other consensual rights which it may be entitled to exercise pursuant
      hereto and to receive all dividends and other distributions which it may
      be entitled to receive hereunder, (i) each Grantor shall promptly execute
      and deliver (or cause to be executed and delivered) to the Lender all such
      proxies, dividend payment orders and other instruments as the Lender may
      from time to time reasonably request and (ii) without limiting the effect
      of clause (i) above, such Grantor hereby grants to the Lender an
      irrevocable proxy to vote all or any part of the Pledged Collateral and to
      exercise all other rights, powers, privileges and remedies to which a
      holder of the Pledged Collateral would be entitled (including giving

                                       38
<PAGE>
      or withholding written consents of shareholders, partners or members, as
      the case may be, calling special meetings of shareholders, partners or
      members, as the case may be, and voting at such meetings), which proxy
      shall be effective, automatically and without the necessity of any action
      (including any transfer of any Pledged Collateral on the record books of
      the issuer thereof) by any other person (including the issuer of such
      Pledged Collateral or any officer or agent thereof) during the continuance
      of a Lender Termination Event and which proxy shall only terminate upon
      the payment in full of the Obligations.

               (iii) Each Grantor hereby expressly authorizes and instructs each
      issuer of any Pledged Collateral pledged hereunder by such Grantor to (i)
      comply with any instruction received by it from the Lender in writing that
      (A) states that an Event of Default has occurred and is continuing and (B)
      is otherwise in accordance with the terms of this Agreement, without any
      other or further instructions from such Grantor, and each Grantor agrees
      that such issuer shall be fully protected in so complying and (ii) unless
      otherwise expressly permitted hereby, pay any dividends or other payments
      with respect to the Pledged Collateral directly to the Lender.

               Section 9.8 The Lender's Appointment as Attorney-in-Fact. Subject
      to Section 9.10, the expiration of the applicable Standstill Period and
      the giving of notice as required by the Financing Order:

      (a) Each Grantor hereby irrevocably constitutes and appoints the Lender
and any officer or agent thereof, with full power of substitution, as its and
its Subsidiaries true and lawful attorney-in-fact with full irrevocable power
and authority in the place and stead of such Grantor and in the name of such
Grantor, or in its own name, from time to time in the Lender's discretion, for
the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute and deliver any and all documents and
instruments which may be necessary and desirable to accomplish the purposes of
this Agreement and the transactions contemplated hereby, and, without limiting
the generality of the foregoing, hereby gives the Lender the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor to do the
following:

            (i) to ask, demand, collect, receive and give acquittances and
      receipts for any and all moneys due and to become due under any Collateral
      and, in the name of such Grantor, its own name or otherwise, to take
      possession of and endorse and collect any checks, drafts, notes,
      acceptances or other Instruments for the payment of moneys due under any
      Collateral and to file any claim or to take any other action or proceeding
      in any court of law or equity or otherwise deemed appropriate by the
      Lender for the purpose of collecting any and all such moneys due under any
      Collateral whenever payable and to file any claim or to take any other
      action or proceeding in any court of law or equity or otherwise deemed
      appropriate by the Lender for the purpose of collecting any and all such
      moneys due under any Collateral whenever payable;

            (ii) to pay or discharge taxes, liens, security interests or other
      encumbrances levied or placed on or threatened against the Collateral, to
      effect any

                                       39
<PAGE>
      repairs or any insurance called for by the terms of this Agreement and to
      pay all or any part of the premiums therefor and the costs thereof; and

               (iii) (A) to direct any party liable for any payment under any of
      the Collateral to make payment of any and all moneys due and to become due
      thereunder, directly to the Lender or as the Lender shall direct; (B) to
      receive payment of and receipt for any and all moneys, claims and other
      amounts due, and to become due at any time, in respect of or arising out
      of any Collateral; (C) to sign and indorse any invoices, freight or
      express bills, bills of lading, storage or warehouse receipts, drafts
      against debtors, assignments, verifications and notices in connection with
      accounts and other documents constituting or relating to the Collateral;
      (D) to commence and prosecute any suits, actions or proceedings at law or
      equity in any court of competent jurisdiction to collect the Collateral or
      any part thereof and to enforce any other right in respect of any
      Collateral; (E) to defend any suit, action or proceeding brought against
      any Grantor with respect to any Collateral of such Grantor; (F) to settle,
      compromise or adjust any suit, action or proceeding described above and,
      in connection therewith, to give such discharges or releases as the Lender
      may deem appropriate; (G) to license or, to the extent permitted by an
      applicable license, sublicense, whether general, special or otherwise, and
      whether on an exclusive or non-exclusive basis, any trademarks, throughout
      the world for such term or terms, on such conditions, and in such manner,
      as the Lender shall in its sole discretion determine; and (H) generally to
      sell, transfer, pledge, make any agreement with respect to or otherwise
      deal with any of the Collateral as fully and completely as though the
      Lender were the absolute owner thereof for all purposes, and to do, at the
      Lender's option and such Grantor's expense, at any time, or from time to
      time, all acts and things which the Lender reasonably deems necessary to
      protect, preserve or realize upon the Collateral and the Lender's Lien
      therein, in order to effect the intent of this Agreement, all as fully and
      effectively as such Grantor might do.

      (b) The Lender agrees that it will forbear from exercising the power of
attorney or any rights granted to the Lender pursuant to this Section 9.8,
except upon the occurrence or during the continuation of a Lender Termination
Event. The Grantors hereby ratify, to the extent permitted by law, all that said
attorneys shall lawfully do or cause to be done by virtue hereof. The power of
attorney granted pursuant to this Section 9.8 is a power coupled with an
interest and shall be irrevocable until the Obligations are indefeasibly paid in
full.

      (c) The powers conferred on the Lender hereunder are solely to protect the
Lender's interests in the Collateral and shall not impose any duty upon it to
exercise any such powers. The Lender shall be accountable only for amounts that
it actually receives as a result of the exercise of such powers and neither it
nor any of its officers, directors, employees or agents shall be responsible to
any Grantor for any act or failure to act, except for its own gross negligence
or willful misconduct.

      (d) Each Grantor also authorizes the Lender, at any time and from time to
time upon the occurrence and during the continuation of any Lender Termination
Event or as otherwise expressly permitted by this Agreement, (i) to communicate
in its own name or the name of its Subsidiaries with any party to any Contract
with regard to the assignment of the right, title and interest of such Grantor
in and under the Contracts hereunder and other matters

                                       40
<PAGE>
relating thereto and (ii) to execute any endorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral.

            Section 9.9 Right and Authority of Receiver or Lender in the Event
      of Default. Upon the occurrence of an Event of Default which is not cured
      within any applicable grace or cure period, and entry upon the Real
      Property pursuant to Section 9.7(a)(ii) hereof or appointment of a
      receiver pursuant to Section 9.7(a)(iv) hereof, and under such terms and
      conditions as may be prudent and reasonable under the circumstances in
      Lender's or the receiver's sole discretion, all at Grantor's expense,
      Lender or said receiver, or such other persons or entities as they shall
      hire, direct or engage, as the case may be, may do or permit one or more
      of the following, successively or concurrently: (a) enter upon and take
      possession and control of any and all of the Collateral; (b) take and
      maintain possession of all documents, books, records, papers and accounts
      relating to the Collateral; (c) exclude Grantors and their agents,
      servants and employees wholly from the Collateral; (d) manage and operate
      the Collateral; (e) preserve and maintain the Collateral; (f) make repairs
      and alterations to any improvements on the Real Property; (g) sublease the
      Real Property, or employ a marketing or leasing agent or agents to do so,
      under such terms and conditions as Lender may in its sole discretion deem
      appropriate or desirable; (h) employ such contractors, subcontractors,
      materialmen, architects, engineers, consultants, managers, brokers,
      marketing agents, or other employees, agents, independent contractors or
      professionals, as Lender may in its sole discretion deem appropriate or
      desirable to implement and effectuate the rights and powers herein
      granted; (i) execute and deliver, in the name of Lender as
      attorney-in-fact and agent of Grantors or in its own name, such documents
      and instruments as are necessary or appropriate to consummate authorized
      transactions. Any money advanced by Lender in connection with any action
      taken under this Section, together with interest thereon, from the date of
      making such advancement by Lender until actually paid by Grantor, shall be
      a demand obligation owing by Grantor to Lender and shall be secured by the
      Collateral and by every other instrument securing the Obligations.

            Section 9.10 FCC-Related Requirements of Law. The Lender
      acknowledges that the effectiveness of certain provisions set forth in
      this Agreement or in any other Loan Document (including the provisions
      relating to the exercise of the Lender's rights with respect to Pledged
      Collateral and effectiveness or the exercise of the power of attorney
      conferred on the Lender) may be subject to prior FCC approval and, to the
      extent such FCC approval is required, notwithstanding any other provision
      in this Agreement or any other Loan Document to the contrary, such
      provisions shall not be effective until such FCC approval is obtained. The
      Lender agrees to not exercise any of its rights or powers hereunder or
      under any other Loan Document unless and until such FCC approval, if
      required, is obtained.

                                   ARTICLE X

                                  MISCELLANEOUS

            Section 10.1 Amendments, Etc. No amendment or waiver of any
      provision of this Agreement nor consent to any departure by the Borrower
      or any

                                       41
<PAGE>
      Guarantor therefrom shall in any event be effective unless the same shall
      be in writing and signed by the Lender, and then any such waiver or
      consent shall be effective only in the specific instance and for the
      specific purpose for which given.

            Section 10.2 Notices, Etc. Any notice or other communication
      permitted or required to be given hereunder will be in writing, and sent
      by reputable courier service (with proof of delivery), by hand delivery or
      by facsimile (followed by delivery by courier service (with proof of
      delivery) or by hand delivery), addressed as follows:

                  If to the Lender:

                  ICO Investment Corp.
                  4 Orinda Way, Suite B240
                  Orinda, CA 94563
                  Attention:  Craig Jorgens
                  Fax No.  925-253-4912

                  With copies to:

                  Davis Wright Tremaine LLP
                  1300 S.W. Fifth Avenue, Suite 2300
                  Portland, OR  97201
                  Attention:  Benjamin G. Wolff
                  Fax No.  503-778-5342

                  If to the Borrower or any Guarantor:

                  Globalstar, L.P.
                  3200 Zanker Road
                  San Jose, California  95134
                  Attention: William Adler, Esq.
                  Telecopy number:  (408) 933-4950

                  With copies to:

                  Jones Day
                  222 East 41st Street
                  New York, New York  10017
                  Attention:  Paul D. Leake, Esq.
                  Telecopy number:  (212) 755-7306

                  and

                  The Committee
                  c/o Akin Gump
                  590 Madison Avenue
                  New York, New York  10022

                                       42
<PAGE>
                  Attention:  Stephen B. Kuhn, Esq. and Daniel H. Golden, Esq.
                  Telecopy number:  (212) 872-1002

      All such notices and communications shall, when mailed, telecopied, or
delivered, be effective when deposited in the mails, or delivered by hand to the
addressee or its agent, respectively, except that notices and communications to
the Lender pursuant to Article II or VIII shall not be effective until received
by the Lender.

            Section 10.3 No Waiver; Remedies. No failure on the part of the
      Lender to exercise, and no delay in exercising, any right hereunder or
      under any Note shall operate as a waiver thereof; nor shall any single or
      partial exercise of any such right preclude any other or further exercise
      thereof or the exercise of any other right. The remedies herein provided
      are cumulative and not exclusive of any remedies provided by law.

            Section 10.4 Costs; Expenses; Indemnities. (a) Upon termination of
      this Agreement by Lender as a result of a Lender Termination Event not
      caused by Lender, the Borrower shall pay, subject to all applicable
      Standstill Periods, all reasonable, documented out-of-pocket expenses
      (including fees and disbursements of counsel) of the Lender in connection
      with the preparation and administration of this Agreement or amendment
      hereof.

      (b) The Borrower and each Guarantor agree to jointly and severally
indemnify the Lender and its directors, officers, agents, affiliates and
employees (each "Indemnitee") and hold each Indemnitee harmless from and against
any and all liabilities, losses, damages and expenses of any kind, including the
reasonable fees and disbursements of counsel, which are incurred by such
Indemnitee in connection with any investigative, administrative or judicial
proceeding (whether or not such Indemnitee shall be designated a party thereto)
brought or threatened relating to or arising out of this Agreement or any actual
or proposed use of proceeds of Loans hereunder; provided, however, that nothing
in this Section 10.4(b) shall obligate the Borrower or any Guarantor to
indemnify the Lender for any liabilities, losses, damages or expenses resulting
from the gross negligence or willful misconduct of the Lender.

            Section 10.5 Right of Set-off. Upon the occurrence and during the
      continuance of any Event of Default and following the expiration of the
      applicable Standstill Period and the giving of notice as required by the
      Financing Order, the Lender, after prompt notice thereof to the Borrower,
      is hereby authorized at any time and from time to time, to the fullest
      extent permitted by law, to set off and apply any and all deposits
      (general or special, time or demand, provisional or final) at any time
      held and other indebtedness at any time owing by the Lender to or for the
      credit or the account of the Borrower or any Guarantor against any and all
      of the Obligations now or hereafter existing whether or not the Lender
      shall have made any demand under this Agreement or any Note or other Loan
      Document and although such Obligations may be unmatured.

            Section 10.6 Binding Effect. This Agreement shall become effective
      when it shall have been executed by the Borrower and each Guarantor and
      the Lender and entry of the Financing Order, and thereafter shall be
      binding upon and inure to the benefit

                                       43
<PAGE>
      of the Borrower and each Guarantor and the Lender and their respective
      successors and assigns, subject to Section 10.14.

            Section 10.7 Governing Law. This Agreement and the Notes and the
      rights and obligations of the parties hereto and thereto shall be governed
      by, and construed and interpreted in accordance with, the laws of the
      State of New York and, to the extent applicable, the Bankruptcy Code.

            Section 10.8 Section Titles. The Section titles contained in this
      Agreement are and shall be without substantive meaning or content of any
      kind whatsoever and are not a part of the agreement between the parties
      hereto.

            Section 10.9 Execution in Counterparts. This Agreement may be
      executed in any number of counterparts and by different parties hereto in
      separate counterparts, each of which when so executed shall be deemed to
      be an original and all of which taken together shall constitute one and
      the same agreement.

            Section 10.10 Entire Agreement. This Agreement, together with all of
      the other Loan Documents and all certificates and documents delivered
      hereunder or thereunder, embodies the entire agreement of the parties and
      supersedes all prior agreements and understandings relating to the subject
      matter hereof.

            Section 10.11 Confidentiality. The Lender agrees to keep information
      obtained by it pursuant hereto and the other Loan Documents confidential
      in accordance with customary practices and agrees that it will only use
      such information in connection with the transactions contemplated by this
      Agreement and not disclose any of such information other than (i) to the
      Lender's employees, representatives and agents who are or are expected to
      be involved in the evaluation of such information in connection with the
      transactions contemplated by this Agreement and who are advised of the
      confidential nature of such information, (ii) to the extent such
      information presently is or hereafter becomes available to such Lender on
      a non-confidential basis from a source other than the Borrower, (iii) to
      the extent disclosure is required by law, regulation or judicial order or
      requested or required by bank regulators or auditors or (iv) to assignees
      or participants or potential assignees or participants who agree to be
      bound by the provisions of this sentence.

            Section 10.12 Jurisdiction. Any legal action or proceeding with
      respect to this Agreement or any other Loan Document may be brought in the
      Bankruptcy Court, and, by execution and delivery of this Agreement, the
      Borrower hereby accepts for itself and in respect of its property,
      generally and unconditionally, the jurisdiction of the Bankruptcy Court.
      The parties hereto hereby irrevocably waive any objection, including any
      objection to the laying of venue or based on the grounds of forum non
      conveniens, which any of them may now or hereafter have to the bringing of
      any such action or proceeding in such respective jurisdictions.

            Section 10.13 Waiver of Jury Trial. Each of the parties hereto
      irrevocably waives trial by jury in any action or proceeding with respect
      to this Agreement or any other Loan Document.

                                       44
<PAGE>
            Section 10.14 Non-Assignment. Neither the Lender nor the Borrower or
      any Guarantor may assign this Agreement without the prior written consent
      of the other parties hereto; provided that the Lender may assign this
      Agreement to ICO or an entity wholly owned by the Lender upon five (5)
      Business Days' prior notice to the Borrower.

            Section 10.15 Severability. Any term or provision of this Agreement
      that is invalid or unenforceable in any jurisdiction will, as to that
      jurisdiction, be ineffective to the extent of such invalidity or
      unenforceability without rendering invalid or unenforceable the remaining
      terms and provisions of this Agreement or affecting the validity or
      enforceability of any of the terms or provisions of this Agreement in any
      other jurisdiction. If any provision of this Agreement is so broad as to
      be unenforceable, the provision will be interpreted to be only so broad as
      is enforceable.

            Section 10.16 Lender Status. Lender acknowledges, represents and
      covenants that (i) it is and shall at all times remain a special purpose
      vehicle under the laws of the State of Delaware, (ii) it is and shall
      remain a wholly owned subsidiary of ICO Global Communications (Holdings)
      Limited, (iii) it has and shall at no time engage in any business or
      activity other than the making of Term Loans under this Agreement and any
      actions reasonably incidental thereto, and (iv) it shall at no time incur
      any debt or other obligations except as contemplated herein.

                                       45
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        Borrower:

                                        GLOBALSTAR, L.P.,
                                        a Debtor and Debtor in Possession

                                        By:  /s/ Anthony J. Navarra
                                             Name:  Anthony J.  Navarra
                                             Title:   President

                                        Guarantors:

                                        GLOBALSTAR CAPITAL CORPORATION,
                                        a Debtor and Debtor in Possession

                                        By:   /s/ Daniel P. McEntee
                                              Name: Daniel P. McEntee
                                              Title: Treasurer

                                        GLOBALSTAR SERVICES COMPANY, INC.,
                                        a Debtor and Debtor in Possession

                                        By:   /s/ Daniel P. McEntee
                                              Name: Daniel P. McEntee
                                              Title: Treasurer

                                        GLOBALSTAR, L.L.C.,
                                        a Debtor and Debtor in Possession

                                        By:   /s/ Daniel P. McEntee
                                              Name: Daniel P. McEntee
                                              Title: Treasurer
<PAGE>
                                        Lender:

                                        ICO INVESTMENT CORP.

                                        By:    /s/ Brent M. Abrahamsen
                                               Name: Brent M. Abrahamsen
                                               Title: President

<PAGE>

                                   SCHEDULE 1
                                  FCC LICENSES

            HELD BY GLOBALSTAR, L.P. ("GLOBALSTAR") AND SUBSIDIARIES
              (LICENSES HELD BY GLOBALSTAR UNLESS OTHERWISE NOTED)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
      LICENSEE      CALL SIGN            FILE NO.        FEE CODE    FEE           FORM          ELECTRONIC           TYPE
-----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>          <C>                     <C>         <C>    <C>                  <C>          <C>
L/Q Licensee, Inc.    S2115      19-DSS-P-91(48)            CZW             312 plus Schedule A      Yes      1.6/2.4 GHz NGSO
                                 CSS-91-014                                                                   license
-----------------------------------------------------------------------------------------------------------------------------------
Globalstar, L.P.      S2320*     SAT-LOA-19970926-00156     CZW             312 plus Schedule A      YES      2 GHz NGSO license
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2320*     SAT-MOD-20020717-00119     CAW             312 plus Schedule A      YES      Pending milestone mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2320*     SAT-MOD-20020722-00110     CAW             312 plus Schedule A      YES      Pending technical mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2321*     SAT-LOA-19970926-00151     BFY             312 plus Schedule A      YES      2 GHz GSO license
                                                                                                              (99WL)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2321*     SAT-MOD-20020722-00109     CWY             312 plus Schedule A      YES      Pending technical mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2322*     SAT-LOA-19970926-00152     BFY             312 plus Schedule A      YES      2 GHz GSO license
                                                                                                              (10EL)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2322*     SAT-MOD-20020717-00116     CWY             312 plus Schedule A      YES      Pending milestone mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2322*     SAT-MOD-20020722-00108     CWY             312 plus Schedule A      YES      Pending technical mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2323*     SAT-LOA-19970926-00153     BFY             312 plus Schedule A      YES      2 GHz GSO license
                                                                                                              (100EL)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2323*     SAT-MOD-20020717-00117     CWY             312 plus Schedule A      YES      Pending milestone mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
      LICENSEE      CALL SIGN            FILE NO.        FEE CODE    FEE           FORM          ELECTRONIC           TYPE
-----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>          <C>                     <C>         <C>    <C>                  <C>          <C>
GLP                 S2323*       SAT-MOD-20020722-00107     CWY             312 plus Schedule A      YES      Pending technical mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                 S2324*       SAT-LOA-19970926-00154     BFY             312 plus Schedule A      YES      2 GHz GSO license
                                                                                                              (170WL)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                 S2324*       SAT-MOD-20020717-00118     CWY             312 plus Schedule A      YES      Pending milestone mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                 S2324*       SAT-MOD-20020722-00112     CWY             312 plus Schedule A      YES      Pending technical mod
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
Globalstar USA      E970381      1367-DSE-P/L-97            CZB             312 plus Schedule A      YES      MET license
LLC
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E970381      SES-MOD-20021010-01758     CGB             312 plus Schedule A      YES      Granted 5/13/03
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E970199      SES-LIC-19970310-00343     CNX             312 plus Schedule A      YES      Clifton license
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E000342      SES-LIC-20000706-01091     CFX             312 plus Schedule A      YES      Clifton license
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E000343      SES-LIC-20000706-01092     CFX             312 plus Schedule A      YES      Clifton license
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E000344      SES-LIC-20000706-01093     CFX             312 plus Schedule A      YES      Clifton license
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                E000345      SES-LIC-20000706-01094     CFX             312 plus Schedule A      YES      Clifton license
-----------------------------------------------------------------------------------------------------------------------------------
Globalstar          E990335      SES-LIC-19990809-01349     CNX             312 plus Schedule A      YES      Cabo Rojo license
Caribbean Ltd.
-----------------------------------------------------------------------------------------------------------------------------------
GCL                 E990336      SES-LIC-19990809-01350     CFX             312 plus Schedule A      YES      Cabo Rojo license
-----------------------------------------------------------------------------------------------------------------------------------
GCL                 E990337      SES-LIC-19990809-01351     CFX             312 plus Schedule A      YES      Cabo Rojo license
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                             ITC-214-19990728-00484     CUT             Letter                    NO      214 Cert.
-----------------------------------------------------------------------------------------------------------------------------------
GUSA                             ITC-214-19991229-00795     CUT             Letter                    NO      214 Cert.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
      LICENSEE      CALL SIGN            FILE NO.        FEE CODE    FEE           FORM          ELECTRONIC           TYPE
-----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>          <C>                     <C>         <C>    <C>                  <C>          <C>
GUSA                             ITC-214-20000615-00356     CUT             Letter                   NO       214 Cert.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  E010073     SES-LIC-20010302-00475     CGB             312 plus Schedule A      YES      Clifton IOT pending
                                                                                                              app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                   S2295      SAT-LOA-19970926-00128     CAW             312 plus ?               YES      40 GHz pending app.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WB2XAE      0011-EX-ML-2001            EAE             Letter                   NO       Pending exp. App.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WC2XOF      0028-EX-PL-2001            EAE             702                      Yes      Exp. License (exp.
                                                                                                              6/1/04)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WB2XAE      0036-EX-RR-2002            EAE             Letter                            Pending exp. App.
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WC2XXD      0161-EX-RR-2002            EAE             702                      Yes      Exp. License (exp.
                                                                                                              7/1/03)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WC2XWY      0037-EX-ML-2002            EAE             Letter                            Exp. License (exp.
                                                                                                              7/1/03)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                  WC2XWY      0002-EX-RR-2003            EAE             Letter                            Exp. License (exp.
                                                                                                              7/1/03)
-----------------------------------------------------------------------------------------------------------------------------------
GLP                              0013-EX-PL-2003            EAE             Letter                            Pending exp. App.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Indicates 2 GHz license cancelled on January 30, 2003, application for review
pending.

<PAGE>

                                  SCHEDULE 4.1
                    CORPORATE EXISTENCE; COMPLIANCE WITH LAW

         1.       Following its acquisition of Globalstar Caribbean Ltd.
("GCL"), a non-debtor Subsidiary, the Borrower discovered that GCL was not
in full compliance with Puerto Rican tax filing requirements. The Borrower has
corrected the non-compliance. GCL has not been notified by Puerto Rican
authorities of any potential liability.

         2.       Following its acquisition of Globalstar USA, LLC ("GUSA"), a
non-debtor Subsidiary, the Borrower discovered that GUSA was not in full
compliance with certain state business registration and tax filing requirements.
The Borrower is in the process of correcting the non-compliance. GUSA has not
been notified by any state authority of any potential liability.

<PAGE>

                                  SCHEDULE 4.2
             CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATION

1.   The consummation of the transactions contemplated by this Agreement will
     require notification to, but not prior approval by, the regulatory
     authorities in those countries in which the Borrower, or a Subsidiary of
     the Borrower, holds a radiospectrum license. Those countries are France and
     Canada, in addition to the United States.

2.   Ignoring any requirements or relief provided by the Bankruptcy Code or the
     Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy
     Court, certain consents and/or waivers of the partners of the Borrower may
     be required under the Borrower's Amended and Restated Agreement of Limited
     Partnership, as amended (the "Partnership Agreement"), to enter into and
     consummate the transactions contemplated by this Agreement and the
     Investment Agreement, including, without limitation, consents or waivers
     relating to preemptive rights of the Partners (as defined in the
     Partnership Agreement), incurrence of indebtedness in excess of 110% of the
     maximum amount of debt obligations contemplated over the life of the then
     current Baseline Business Plan (as defined in the Partnership Agreement),
     certain settlements with Partners, dissolution of the Borrower, and
     elimination of the Ordinary Partnership Interests (as defined in the
     Partnership Agreement) and the Preferred Partnership Interests (as defined
     in the Partnership Agreement).

3.   The execution, delivery and performance by the Borrower and each Guarantor
     of the Loan Documents to which it is a party and the consummation of the
     transactions related to the financing contemplated in this Agreement is
     subject to the Financing Order having been entered by the Bankruptcy Court.

<PAGE>

                                  SCHEDULE 4.3
                            OWNERSHIP OF SUBSIDIARIES

         1.       A list of the exact legal name, jurisdiction of incorporation
or formation, taxpayer identification number, the number of shares authorized
(in the case of capital stock) and the number and/or percentage of such
outstanding shares of each such class or partnership or limited liability
company interests owned (directly or indirectly) by the Borrower, any other
Grantor or any other owner is attached hereto as Attachment 1, which attachment
is incorporated herein by reference.

         2.       In addition to the Subsidiaries listed in Attachment 1 hereto,
the Borrower directly holds a 49 percent equity interest in Globaltel Joint
Stock Company ("Globaltel"), the Borrower's Russian service provider. In the
Globaltel Assignment Agreement, dated as of August 1, 1997, the Borrower
acknowledged that the Borrower had formed Globaltel under the direction of and
as agent of Loral Space & Communications Ltd. ("Loral"); that Loral had full
responsibility to fund all equity requirements pertaining to the Borrower's 49
percent equity interest; and that Loral is the beneficial owner of the shares.
Under this agreement and under the Settlement Agreement and Release, dated as of
April 8, 2003, among the Debtors, their Subsidiaries, the Official Committee of
Creditors and Loral and its subsidiaries (the "Loral Settlement"), the Borrower
is obligated upon the request by Loral to take any steps that may be necessary
to perfect Loral's title to the shares and to substitute Loral for the Borrower
as the 49 percent partner in Globaltel.

         3.       The Borrower's indirect Subsidiary, ATSS Canada, Inc., is a
party to the Shareholders' Agreement of Globalstar Canada Satellite Co.
("GCSC"). ATSS Canada, Inc. owns 50.1 percent of the shares of GCSC, and a
subsidiary of Loral Space & Communications Ltd. owns the remaining 49.9 percent.
Under the terms of the Loral Settlement, Loral will transfer its 49.9 percent
interest to GLP on the closing date of the Loral Settlement.

         4.       If the matter described in numbered paragraph 10 under
"Section 2.6 - No Changes" of the Partnership Disclosure Letter is not resolved
in a manner favorable to the Borrower and its Subsidiaries, the assets of the
Borrower and its Subsidiaries, including, without limitation, equity interests
held by the Borrower and its Subsidiaries, may be subject to liens that may be
imposed by the Pension Benefit Guaranty Corporation (the "PBGC"). See numbered
paragraph 10 in "Section 2.6 - No Changes" of the Partnership Disclosure Letter.

<PAGE>

                          ATTACHMENT 1 TO SCHEDULE 4.3
                            SUBSIDIARIES OF BORROWER

DEBTOR SUBSIDIARIES:

                                       LEGAL NAME:     GLOBALSTAR, L.L.C.
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     22-3758443
                                Authorized Shares:     Not Applicable
                               Outstanding Shares:     Not Applicable
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.

                                       LEGAL NAME:     GLOBALSTAR CAPITAL
                                                        CORPORATION
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     13-3876323
                                Authorized Shares:     1,000
                               Outstanding Shares:     100
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.

                                       LEGAL NAME:     GLOBALSTAR SERVICES
                                                        COMPANY, INC.
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     33-0755211
                                Authorized Shares:     1,000
                               Outstanding Shares:     100
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.

NON - DEBTOR SUBSIDIARIES:

                                       LEGAL NAME:     GLOBALSTAR CORPORATION
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     13-3958611
                                Authorized Shares:     1,000
                               Outstanding Shares:     100
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.

                                       LEGAL NAME:     STONESTREET HOLDINGS N.V.
    Jurisdiction of incorporation or organization:     Netherlands Antilles
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     6,000
                               Outstanding Shares:     6,000
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.
                                            Other:     Inactive

                                       LEGAL NAME:     GLOBALSTAR (MAURITIUS)
    Jurisdiction of incorporation or organization:     Mauritius
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     1,000,000
                               Outstanding Shares:     1,000,000
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.

<PAGE>

                                       LEGAL NAME:     GLOBALSTAR HOLDINGS LTD.
    Jurisdiction of incorporation or organization:     Cyprus
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     10,000
                               Outstanding Shares:     1,000
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar, L.P.
                                            Other:     Inactive

                                       LEGAL NAME:     MOBILE SATELLITE
                                                        SERVICES, B.V.
    Jurisdiction of incorporation or organization:     The Netherlands
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     100
                               Outstanding Shares:     100
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Corporation

                                       LEGAL NAME:     GLOBALSTAR EUROPE
                                                        SATELLITE SERVICES, LTD.
    Jurisdiction of incorporation or organization:     Ireland
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     10,000
                               Outstanding Shares:     7,500
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Mobile Satellite
                                                        Services, B.V.

                                       LEGAL NAME:     GLOBALSTAR EUROPE
                                                        S.A.R.L.
    Jurisdiction of incorporation or organization:     France
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     Not Applicable
                               Outstanding Shares:     Not Applicable
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Mobile Satellite
                                                        Services, B.V.

                                       LEGAL NAME:     GLOBALSTAR CARIBBEAN LTD.
    Jurisdiction of incorporation or organization:     Cayman Islands
                US Taxpayer Identification Number:     52-2136467
                                Authorized Shares:     5,000,000
                               Outstanding Shares:     2
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Corporation

                                       LEGAL NAME:     GLOBALSTAR REPUBLICA
                                                        DOMINICANA, S.A.
    Jurisdiction of incorporation or organization:     Dominican Republic
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     10,000
                               Outstanding Shares:     1,000
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Caribbean Ltd.
                                            Other:     Inactive

<PAGE>

                                       LEGAL NAME:     GLOBALSTAR USA, LLC
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     13-3958611 (same as
                                                        Globalstar Corporation)
                                Authorized Shares:     1
                               Outstanding Shares:     1
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Corporation

                                       LEGAL NAME:     GLOBALSTAR SATELLITE
                                                        SERVICES, INC.
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     68-0340264
                                Authorized Shares:     1
                               Outstanding Shares:     1
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Corporation

                                       LEGAL NAME:     GLOBALSTAR JAPAN K.K.
    Jurisdiction of incorporation or organization:     Japan
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     600
                               Outstanding Shares:     200
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Satellite
                                                        Services, Inc.

                                       LEGAL NAME:     ATSS CANADA, INC.
    Jurisdiction of incorporation or organization:     Delaware
                US Taxpayer Identification Number:     94-3262383
                                Authorized Shares:     1
                               Outstanding Shares:     1
% Owned directly or indirectly by Globalstar L.P.:     100%
                                 Direct Ownership:     Globalstar Satellite
                                                        Services, Inc.

                                       LEGAL NAME:     ATSS/LORAL NETHERLANDS
                                                        B.V.
    Jurisdiction of incorporation or organization:     Netherlands
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     200,000
                               Outstanding Shares:     4,000
% Owned directly or indirectly by Globalstar L.P.:     50.1%
                     Ownership of Remaining 49.9%:     Affiliates of Loral
                                                        Space & Communications
                                                         Ltd.
                                 Direct Ownership:     Globalstar Satellite
                                                        Services, Inc.

                                       LEGAL NAME:     GLOBALSTAR CANADA
                                                        SATELLITE CO.
    Jurisdiction of incorporation or organization:     Canada
                US Taxpayer Identification Number:     91-1895730
                                Authorized Shares:     100,000,000
                               Outstanding Shares:     2,000
% Owned directly or indirectly by Globalstar L.P.:     50.1%
                     Ownership of Remaining 49.9%:     Affiliates of Loral
                                                        Space & Communications
                                                        Ltd.
                                 Direct Ownership:     ATSS Canada, Inc.

<PAGE>

                                       LEGAL NAME:     GLOBALSTAR CANADA
                                                        HOLDING CO.
    Jurisdiction of incorporation or organization:     Canada
                US Taxpayer Identification Number:     Not Applicable
                                Authorized Shares:     3,360,000
                               Outstanding Shares:     3,360,000
% Owned directly or indirectly by Globalstar L.P.:     50.1%
                     Ownership of Remaining 49.9%:     Affiliates of Loral
                                                        Space & Communications
                                                        Ltd.
                                 Direct Ownership:     Globalstar Canada
                                                        Satellite Co.

                                       LEGAL NAME:     GLOBALSTAR CANADA CO.
    Jurisdiction of incorporation or organization:     Canada
                US Taxpayer Identification Number:     Not Applicable

                                Authorized Shares:     1,500 Common Shares
                                                       4,200,000 Preferred
                                                        Shares

                               Outstanding Shares:     1,500 Common Shares
                                                       1,500 Preferred Shares

% Owned directly or indirectly by Globalstar L.P.:     50.1% Common Shares
                                                       50.1% Preferred Shares
                     Ownership of Remaining 49.9%:     Affiliates of Loral
                                                        Space & Communications
                                                        Ltd.
                                 Direct Ownership:     80% by Globalstar
                                                        Canada Holding Co.
                                                       20% by Globalstar
                                                        Canada Satellite Co.

<PAGE>

                                  SCHEDULE 4.6
                              INTELLECTUAL PROPERTY

         1.       By letters dated December 20, 2001, and November 29, 2001,
QUALCOMM purported to terminate the Borrower's Production Gateway Purchase
Agreement ("PGPA") and Development Contract, respectively. The PGPA was assigned
to Globalstar Services Company, Inc., a Subsidiary of the Borrower in 1998. The
Borrower took the position that QUALCOMM could not lawfully and unilaterally
terminate those agreements. Both agreements contain provisions granting the
Borrower certain intellectual property rights associated with the Globalstar
Gateways and user terminals. QUALCOMM has made no effort thus far to restrict
the Borrower's access to QUALCOMM's intellectual property, and the Borrower
believes that it will reach mutually agreeable terms with QUALCOMM with respect
to such intellectual property rights.

         2.       The Borrower's right to use space segment intellectual
property owned by Space Systems/Loral derives from the terms of the Satellite
Contract, Contract No. GS-C-94-0008, dated February 16, 1994. Under the Loral
Settlement, the Borrower has agreed to reject the Satellite Contract in
accordance with applicable provisions of the Bankruptcy Code. Further, Loral has
agreed to cooperate with the Borrower in turning over technical information
about the space segment and transferring Globalstar-related patents to the
Borrower. In return the Borrower has agreed to grant Space Systems/Loral
("SS/L") a royalty-free license to use Globalstar-related intellectual property.
On April 25, 2003, the Borrower and SS/L signed two (2) agreements to effectuate
these commitments.

         3.       The Borrower has recently acquired service provider companies
use a billing system that is dependent on Oracle database software. The Borrower
has a site license for all Oracle database systems. The Borrower is currently
investigating whether its Oracle site license can be utilized for these billing
systems. If the billing systems are not covered, then additional licenses would
have to be purchased.

         4.       If the matter described in numbered paragraph 10 under
"Section 2.6 - No Changes" of the Partnership Disclosure Letter is not resolved
in a manner favorable to the Borrower and its Subsidiaries, the assets of the
Borrower and its Subsidiaries, including, without limitation, the Intellectual
Property of the Borrower and its Subsidiaries, may be subject to liens that may
be imposed by the PBGC. See numbered paragraph 10 in "Section 2.6 - No Changes"
of the Partnership Disclosure Letter.

         5.       See Attachment for Schedule 4.6 - Intellectual Property.

<PAGE>
                                                      ATTACHMENT TO SCHEDULE 4.6

GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 1
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>

GLOBALSTAR L.P.
WIRELESS TELEPHONE/SATELLITE ROAMING SYSTEM

Inventors: WIEDEMAN RA
                      91-08        USA                    03/29/91      5,303,286     04/12/94     Granted        04/12/11
                                   Canada                 03/16/92      2,063,224     10/12/99     Granted        03/16/12
                                   EPO                    03/11/92        0506295     11/20/96     Granted        03/11/12
                                   Japan                  03/30/92        2558573     09/05/96     Granted        03/30/12
                                   France                 03/11/92        0506255     11/20/96     Granted        03/11/12
                                   Fed. Rep.              03/11/92     69215257.1     11/20/96     Granted        03/11/12
                                   Italy                  03/11/92        0506255     11/20/96     Granted        03/11/12
                                   United Kin             03/11/92        0506255     11/20/96     Granted        03/11/12
GLOBALSTAR L.P.
WIRELESS TELEPHONE/SATELLITE ROAMING SYSTEM

Inventors: WIEDEMAN RA
                      91-08B       USA                    09/15/95      5,715,297     02/03/98     Granted        04/12/11
GLOBALSTAR L.P.
WIRELESS TELEPHONE/SATELLITE ROAMING METHOD

Inventors: WIEDEMAN RA
                      91-08C       USA                    09/22/97      5,903,837     05/11/99     Granted        04/12/11
GLOBALSTAR L.P.
SATELLITE/WIRELESS TELEPHONE ROAMING SYSTEM

Inventors: WIEDEMAN RA MONTE PA
                      91-25        Australia              10/07/92         657,365    08/15/95     Granted        10/07/12
                                   Brazil                 10/13/92                                 Pending
                                   Argentina              10/09/92          254358    07/04/00     Granted        07/04/15
                                   Canada                 09/23/92                                 Pending
                                   EPO                    09/26/92         0536921    01/27/99     Granted        09/24/12
                                   Indonesia              10/10/92         0003051    08/28/98     Granted        10/10/06
                                   Japan                  10/12/92         2849009    11/06/98     Granted        10/12/12
                                   Korea (Sou             10/10/92          149678    06/09/98     Granted        10/10/12
                                   Mexico                 10/09/92          182582    09/09/96     Granted        10/09/12
                                   Fed. Rep.              09/24/92      69228283.1    01/27/99     Granted        09/24/12
                                   France                 09/24/92         0536921    01/27/99     Granted        09/24/12
                                   United Kin             09/24/92         0536921    01/27/99     Granted        09/24/12
                                   Italy                  09/24/92         0536921    01/27/99     Granted        09/24/12
GLOBALSTAR L.P.
WORLDWIDE TELECOMMUNICATIONS SYSTEM USING SATELLITES

Inventors: WIEDEMAN RA MONTE PA
                      91-25A       Brazil                 01/04/94                                 Pending
                                   Canada                 09/08/93      2,105,738     03/23/99     Granted        09/08/13
GLOBALSTAR L.P.
SATELLITE AND TERRESTRIAL TELEPHONE

Inventors: WIEDEMAN RA
                      91-25B       USA                    07/21/94      5,586,165     12/17/96     Granted        04/12/11
                                   Australia              01/16/95        671,560     01/14/97     Granted        10/07/12
                                   Japan                  10/12/92        2895460     03/05/99     Granted        10/12/12
                                   Canada                 09/08/93      2,255,395     05/29/01     Granted        09/08/13
GLOBALSTAR L.P.
WORLDWIDE SATELLITE TELEPHONE SYSTEM AND A NETWORK COORDINATING GATEWAY FOR ALLOCATING SATELLITE AND TERRESTRIAL...

Inventors: WIEDEMAN RA MONTE PA
                      91-25C       USA                    07/21/94      5,526,404     06/11/96     Granted        06/11/13
                                   Australia              01/16/95        671,398     01/14/97     Granted        10/07/12
GLOBALSTAR L.P.
SATELLITE TELECOMMUNICATIONS SYSTEM USING NETWORK COORDINATING GATEWAYS OPERATIVE WITH A TERRESTRIAL......

Inventors: WIEDEMAN RA MONTE PA
                      91-25D       USA                    03/20/95      5,448,623     09/05/95      Granted        09/05/12
GLOBALSTAR L.P.
SATELLITE COMMUNICATION SYSTEM THAT IS COUPLED TO A TERRESTRIAL COMMUNICATION NETWORK AND METHOD

Inventors: WIEDEMAN RA MONTE PA
                      91-25E       USA                    06/02/95      5,594,780     01/14/97     Granted        09/05/12
GLOBALSTAR L.P.
WORLDWIDE TELECOMMUNICATIONS SYSTEM USING SATELLITES

Inventors: WIEDEMAN RA MONTE PA
                      91-25F       USA                    07/24/96      5,655,005     08/05/97     Granted        09/05/12
GLOBALSTAR L.P.

SATELLITE COMMUNICATIONS SYSTEM HAVING DISTRIBUTED USER ASSIGNMENT AND RESOURCE ASSIGNMENT W/TERRESTRIAL GATEWAYS
Inventors: WIEDEMAN RA MONTE PA
                      91-25G       USA                    03/18/97      6,067,442              05/23/00 Granted   09/05/12
GLOBALSTAR L.P.
WORLDWIDE TELECOMMUNICATIONS SYSTEM USING SATELLITES

Inventors: WIEDEMAN RA MONTE PA
                      91-25H       USA                    08/04/97      5,915,217     06/22/99     Granted        09/05/12

GLOBALSTAR L.P.
REPEATER DIVERSITY SPREAD SPECTRUM COMMUNICATION SYSTEM

Inventors: AMES SA
                      92-14        USA                    05/11/92      5,233,626     08/03/93     Granted        08/03/10
GLOBALSTAR L.P.
ACTIVE TRANSMIT PHASED ARRAY ANTENNA

Inventors: HIRSHFIELD E MATTHEWS EW LUH HH
                      92-48        USA                    11/30/92       5,283,587    02/01/94     Granted        02/01/11
                                   China                  11/30/93      93121640.0    03/26/98     Granted        11/30/13
                                   EPO                    11/30/93         0600715    01/27/99     Granted        11/30/13
                                   Kazakhstan             12/13/93            6741    11/16/98     Granted        12/13/13
                                   Israel                 11/28/93          107783    07/01/96     Granted        11/28/13
                                   Korea (Sou             11/29/93          304128    07/18/01     Granted        11/29/13
                                   Thailand               11/26/93            8180    07/07/98     Granted        11/25/13
                                   Russian Fe             01/04/94         2101809    01/10/98     Granted        01/04/14
                                   Ukraine                01/13/94           34434    03/15/01     Granted        01/13/14
                                   Belarus                05/06/94            4397    11/22/01     Granted        05/06/14
                                   Fed. Rep.              11/30/93      69323281.1    01/27/99     Granted        11/30/13
                                   France                 11/30/93         0600715    01/27/99     Granted        11/30/13
                                   United Kin             11/30/93         0600715    01/27/99     Granted        11/30/13
                                   Italy                  11/30/93         0600715    01/27/99     Granted        11/30/13
GLOBALSTAR L.P.
MOBILE COMMUNICATION TERMINAL HAVING EXTENDABLE ANTENNA

Inventors: TSAO CA
                      93-16        Argentina              01/21/94         249653     05/21/96     Granted        05/21/11
                                   Brazil                 02/28/94      9400753-5     06/13/00     Granted        06/13/14
                                   EPO                    05/23/94        0644607     07/07/99     Granted        05/23/14
                                   Israel                 01/17/94         108358     06/19/97     Granted        01/17/14
                                   Japan                  04/12/94                                 Pending
                                   Korea (Sou             01/25/94         292704     03/26/01     Granted        01/25/14
                                   Mexico                 02/11/94         190056     10/14/98     Granted        02/11/14
                                   Fed. Rep.              05/23/94     69419372.0     07/07/99     Granted        05/23/14
                                   France                 05/23/94        0644607     07/07/99     Granted        05/23/14
                                   United Kin             05/23/94        0644607     07/07/99     Granted        05/23/14
                                   Italy                  05/23/94        0644607     07/07/99     Granted        05/23/14
GLOBALSTAR L.P.
MOBILE COMMUNICATION TERMINAL HAVING EXTENDABLE ATENNA

Inventors: TSAO CA
                      93-16A       USA                    03/29/95      5,513,383     04/30/96     Granted        09/14/13
GLOBALSTAR L.P.
ACTIVE TRANSMIT PHASED ARRAY ANTENNA WITH AMPLITUDE TAPER
Inventors: HIRSHFIELD E
                       94-05       EPO                    01/25/95        0665607     04/26/00     Granted        01/25/15
                                   Russian Federation     09/26/94        2134924     08/20/99     Granted        09/26/14
                                   France                 01/25/95        0665607     04/26/00     Granted        01/25/15
                                   Fed. Rep               01/25/95        0665607     04/26/00     Granted        01/25/15
                                   United Kingdom         01/25/95        0665607     04/26/00     Granted        01/25/15
                                   Italy                  01/25/95        0665607     04/26/00     Granted        01/25/15
GLOBALSTAR L.P.
ACTIVE TRANSMIT PHASED ARRAY ANTENNA WITH AMPLITUDE TAPER
Inventors: HIRSHFIELD E
                      94-05A       USA                    05/09/95      5,504,493     04/02/96     Granted        04/02/13
GLOBALSTAR L.P.
MULTIPATH COMMUNICATION SYSTEM OPTIMIZER
Inventors: WIEDEMAN RA MONTE PA
                       94-16       USA                    05/09/94      5,859,874     01/12/99     Granted        01/12/16
                                   Australia              12/15/94         681720     01/08/98     Granted        12/15/14
                                   Canada                 12/22/94                                 Pending
                                   EPO                    02/10/95                                 Pending
GLOBALSTAR L.P.
MULTIPATH COMMUNICATION SYSTEM OPTIMIZER
Inventors: WIEDEMAN RA MONTE PA
                      94-16A       USA                    07/30/97      5,796,760     08/18/98     Granted        08/18/15
GLOBALSTAR L.P.
ANTENNA FOR MULTIPATH SATELLITE COMMUNICATION LINKS
Inventors: DIETRICH FJ MONTE PA
                       94/26       USA                    08/23/94      5,552,798     09/03/96     Granted        09/03/13
                                   Algeria                08/19/95         950102     04/11/96     Granted        08/19/15
                                   Philippine             06/16/95          30609     07/31/97     Granted        07/31/14
                                   Pakistan               08/31/95         134790     08/31/97     Granted        08/31/11
                                   Taiwan                 08/21/95         088746     12/09/97     Granted        08/20/15
                                   Singapore              08/01/95     P-NO.32435     06/14/97     Granted        08/01/15
                                   South Africa           08/22/95        95/7009     05/29/96     Granted        08/22/15
GLOBALSTAR L.P.
ANTENNA FEED AND BEAMFORMING NETWORK

Inventors: METZEN PL BRUNO RD LEMASSENA RW
                      94-28        USA                    09/15/94       5,539,415    07/23/96     Granted        09/15/14
                                   Canada                 03/24/95                                 Allowed
                                   EPO                    02/06/95         0702424    06/13/01     Granted        02/06/15
                                   Japan                  05/08/95                                 Pending
                                   Fed. Rep.              02/06/95      69521252.4    06/13/01     Granted        02/06/15
                                   France                 02/06/95         0702424    06/13/01     Granted        02/06/15
                                   United Kin             02/06/95         0702424    06/13/01     Granted        02/06/15
                                   Italy                  02/06/95         0702424    06/13/01     Granted        02/06/15
GLOBALSTAR L.P.
SATELLITE COMMUNICATION POWER MANAGEMENT SYSTEM

Inventors: HIRSHFIELD E WIEDEMAN RA CANTER S
                      94-31        USA                    11/08/94       5,787,336    07/28/98     Granted        07/28/15
                                   EPO                    11/08/95         0712214    07/18/01     Granted        11/08/15
                                   Japan                  11/01/95                                 Pending
                                   Canada                 10/11/95                                 Pending
                                   China                  11/08/95      95118598.5    05/15/02     Granted        11/08/15
                                   Hong Kong              10/08/98       HK1010432    03/15/02     Granted        11/08/15
                                   Korea (Sou             11/08/95                                 Pending
                                   Taiwan                 11/02/95          085798    08/08/97     Granted        11/01/15
                                   Fed. Rep.              11/08/95      69521765.8    07/18/01     Granted        11/08/15
                                   France                 11/08/95         0712214    07/18/01     Granted        11/08/15
                                   United Kin             11/08/95         0712214    07/18/01     Granted        11/08/15
                                   Italy                  11/08/95         0712214    07/18/01     Granted        11/08/15
                                   Sweden                 11/08/95         0712214    07/18/01     Granted        11/08/15
GLOBALSTAR L.P.
SATELLITE COMMUNICATION POWER MANAGEMENT SYSTEM

Inventors: HIRSHFIELD E WIEDEMAN RA CANTER S
                      94-31A       USA                    03/03/97      5,826,170     10/20/98     Granted        07/28/15
GLOBALSTAR L.P.
STABILIZED POWER CONVERTER HAVING QUANTIZED DUTY CYCLE

Inventors: CANTER S LENK RJ
                      95-06        USA                    03/31/95      5,594,324     01/14/97     Granted        03/31/15
                                   Canada                 11/15/95                                 Pending
                                   EPO                    03/28/96        0735656     10/24/01     Granted        03/28/16
                                   Japan                  12/28/95                                 Pending
                                   China                  01/17/96        1061183     01/24/01     Granted        01/17/16
                                   Hong Kong              10/19/98      HK1010431     05/31/02     Granted        03/28/16
                                   Taiwan                 01/04/96         081706     02/20/97     Granted        01/03/16
                                   Belgium                03/28/96        0735656     10/24/01     Granted        03/28/16
                                   Fed. Rep.              03/28/96        0735656     10/24/01     Granted        03/28/16
                                   France                 03/28/96        0735656     10/24/01     Granted        03/28/16
                                   United Kin             03/28/96        0735656     10/24/01     Granted        03/28/16
                                   Italy                  03/28/96        0735656     10/24/01     Granted        03/28/16
                                   Netherland             03/28/96        0735656     10/24/01     Granted        03/28/16
                                   Sweden                 03/28/96        0735656     10/24/01     Granted        03/28/16

GLOBALSTAR L.P.
LOW EARTH ORBIT COMMUNICATION SATELLITE GATEWAY-TO-GATEWAY RELAY SYSTEM
Inventors: WIEDEMAN RA
                       95-11       USA                    06/06/95      5,634,190     05/27/97     Granted        06/06/15
GLOBALSTAR L.P.
LOW EARTH ORBIT COMMUNICATION SATELLITE GATEWAY-TO-GATEWAY RELAY SYSTEM
Inventors: WIEDEMAN RA
                      95-11A       USA                    03/03/97      5,758,261     05/26/98     Granted        06/06/15

</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 2
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
TWO-SYSTEM PROTOCOL CONVERSION TRANSCEIVER REPEATER
Inventors: WIEDEMAN RA
                       95-12       USA                    06/06/95      5,640,386     06/17/97     Granted        06/06/15
GLOBALSTAR L.P.
CLOSED LOOP POWER CONTROL FOR LOW EARTH ORBIT SATELLITE
COMMUNICATIONS SYSTEM
Inventors: WIEDEMAN RA SITES MJ
                       95-13       USA                    06/06/95      5,619,525     04/08/97     Granted        06/06/15
                                   Japan                  06/05/96                                 Pending
GLOBALSTAR L.P.
CLOSED LOOP POWER CONTROL FOR LOW EARTH ORBIT SATELLITE
COMMUNICATIONS SYSTEM
Inventors: WIEDEMAN RA SITES MJ
                      95-13A       USA                    04/04/97      6,097,752     08/01/00     Granted        04/04/17
GLOBALSTAR L.P.
CLOSED LOOP POWER CONTROL FOR LOW EARTH ORBIT SATELLITE
COMMUNICATIONS SYSTEM
Inventors: WIEDEMAN RA SITES MJ
                      95-13B       USA                    11/02/99      6,240,124     05/29/01     Granted        11/02/19
                                   India                                                           Unfiled
                                   Indonesia                                                       Unfiled
                                   Japan                                                           Unfiled
                                   Korea (South)          11/01/00                                 Published
GLOBALSTAR L.P.
SATELLITE REPEATER DIVERSITY RESOURCE MANAGEMENT SYSTEM
Inventors: WIEDEMAN RA
                       95-14       Canada                 04/26/96                                 Pending
                                   EPO                    04/30/96                                 Pending
                                   Hong Kong              10/19/98                                 Published
                                   Japan                  06/05/96                                 Pending
                                   Korea (South)          05/14/96                                 Pending
                                   Australia              04/23/96        700251      04/15/99     Granted        04/23/16
                                   Mexico                 04/23/96                                 Published
GLOBALSTAR L.P.
SATELLITE REPEATER DIVERSITY RESOURCE MANAGEMENT SYSTEM
Inventors: WIEDEMAN RA
                      95-14A       USA                    04/17/97     5,867,109      02/02/99     Granted        04/17/17
GLOBALSTAR L.P.
SATELLITE REPEATER DIVERSITY RESOURCE MANAGEMENT SYSTEM
Inventors: WIEDEMAN RA
                      95-14B       USA                    06/25/98                                 Pending
GLOBALSTAR L.P.
METHOD FOR ACCOUNTING FOR USER TERMINAL CONNECTION TO A
SATELLITE COMMUNICATIONS SYSTEM
Inventors: MONTE PA WIEDEMAN RA SITES MJ
                       95-16       USA                    06/07/95      5,664,006     09/02/97     Granted        06/07/15
                                   Canada                 01/24/95                                 Pending
                                   EPO                    01/30/96                                 Pending
                                   Hong Kong              10/19/98                                 Pending
                                   Japan                  04/15/96                                 Pending
</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 3
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
                                   Australia              01/23/96         695510     11/26/98     Granted        01/23/16
                                   Mexico                 01/23/96         194650     12/15/99     Granted        01/23/16
                                   Russian Federation     01/23/96        2140725     10/27/99     Granted        01/23/16
GLOBALSTAR L.P.
METHOD FOR ACCOUNTING FOR USER TERMINAL CONNECTION TO A SATELLITE COMMUNICATIONS SYSTEM
Inventors: MONTE PA WIEDEMAN RA SITES MJ
                      95-16A       USA                    03/17/97      6,023,606     02/08/00     Granted        06/07/15
GLOBALSTAR L.P.
METHOD AND APPARATUS FOR ACCOUNTING FOR USER TERMINAL SESSION-BASED CONNECTION TO A SATELLITE COMMUNICATION SYSTEM
Inventors: WIEDEMAN RA MONTE PA SITES MJ
                      95-16B       USA                    01/13/00                                 Pending
                                   EPO                    12/07/00                                 Pending
                                   Australia              01/01/01                                 Pending
                                   Canada                 01/09/01                                 Pending
                                   Russian Federation     01/11/01                                 Pending
GLOBALSTAR L.P.
METHODS AND APPARATUS FOR PROVIDING USER RF EXPOSURE MONITORING AND CONTROL IN A SATELLITE COMMUNICATIONS SYSTEM
Inventors: WIEDEMAN RA MONTE PA SITES MJ
                       95-22       USA                    07/13/95      5,802,445     09/01/98     Granted        07/13/15
GLOBALSTAR L.P.
SATELLITE COMMUNICATIONS SYSTEM HAVING USER RF EXPOSURE MONITORING AND CONTROL
Inventors: WIEDEMAN RA MONTE PA SITES MJ
                      95-22A       USA                    12/23/97      6,134,423     10/17/00     Granted        07/13/15
GLOBALSTAR L.P.
SATELLITE COMMUNICATIONS SYSTEM HAVING USER RF EXPOSURE MONITORING AND CONTROL
Inventors: WIEDEMAN RA MONTE PA SITES, MJ
                      95-22B       USA                    09/18/98      6,272,325     08/07/01     Granted        09/18/18
                                   Japan                  09/01/99                                 Pending
GLOBALSTAR L.P.
METHOD AND APPARATUS FOR INCREASING ANTENNA EFFICIENCY FOR HAND-HELD MOBILE SATELLITE COMMUNICATIONS TERMINAL
Inventors: HIRSHFIELD E
                       95-24       USA                    08/03/95      5,581,268     12/03/96     Granted        08/03/15
                                   Taiwan                 02/02/96         080504     12/24/96     Granted        02/01/16
GLOBALSTAR L.P.
SATELLITE BEAM STEERING REFERENCE USING TERRESTRIAL BEAM STEERING TERMINALS
Inventors: WIEDEMAN RA
                       95-25       USA                    08/23/95      5,758,260     05/26/98     Granted        08/23/15
                                   Japan                  08/23/96                                 Pending
GLOBALSTAR L.P.
SATELLITE BEAM STEERING REFERENCE USING TERRESTRIAL BEAM STEERING TERMINALS
Inventors: WIEDEMAN RA
                      95-25A       USA                    12/12/96      5,697,050     12/09/97     Granted        08/23/15
</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 4
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
MOBILE SATELLITE USER INFORMATION REQUEST SYSTEM AND METHODS
Inventors: WIEDEMAN RA MONTE PA PENWARDEN KA
                       95-36       USA                    11/17/95      5,812,932     09/22/98     Granted        11/17/15
GLOBALSTAR L.P.
MOBILE SATELLITE USER INFORMATION REQUEST SYSTEM AND METHODS
Inventors: WIEDEMAN RA MONTE PA PENWARDEN KA
                      95-36A       USA                    06/03/98      6,272,316     08/07/01     Granted        06/03/18
                                   Japan                  06/03/99                                 Pending
GLOBALSTAR L.P.
AUTOMATIC SATELLITE/TERRESTRIAL MOBILE TERMINAL ROAMING SYSTEM AND METHOD
Inventors: WIEDEMAN RA SITES MJ
                       96-21       USA                    09/04/96      6,072,768     06/06/00     Granted        09/04/16
                                   Canada                 08/29/97                                 Pending
                                   Hong Kong              09/04/97      HK1002163     07/10/98     Granted        09/04/05
                                   India                  09/03/97                                 Pending
                                   Indonesia              09/03/97      ID0007213     01/10/02     Granted        09/03/17
                                   Japan                  09/04/97                                 Pending
                                   Korea (South)          09/04/97                                 Pending
                                   Australia              08/27/97         727452     03/29/01     Granted        08/27/17
                                   Mexico                 08/27/97                                 Pending
                                   Russian Federation     08/27/97        2193815     11/27/02     Allowed        08/27/17
GLOBALSTAR L.P.
AUTOMATIC SATELLITE TERRESTRIAL MOBILE TERMINAL ROAMING SYSTEM AND METHOD
Inventors: WIEDEMAN RA SITES MJ
                      96-21A       USA                    02/09/98      6,233,463     05/15/01     Granted        02/09/18
GLOBALSTAR L.P.
USE OF REFERENCE PHONE IN POINT-TO-POINT SATELLITE COMMUNICATION SYSTEM
Inventors: SCHINDALL J (GLP) BROCK JK (SS/L)
                       96-22       USA                    09/13/96      6,201,961     03/13/01     Granted        09/13/16
GLOBALSTAR L.P.
MULTIPLE SATELLITE FADE ATTENUATION CONTROL SYSTEM
Inventors: WIEDEMAN RA
                       96-31       USA                    10/21/96                                 Allowed
                                   Japan                  10/21/97                                 Pending
GLOBALSTAR L.P.
SATELLITE CONTROLLED POWER CONTROL FOR PERSONAL COMMUNICATION USER TERMINALS
Inventors: GALLAGHER VK MONTE PA WIEDEMAN RA
                       96-38       USA                    12/12/96      5,956,619     09/21/99     Granted        12/12/16
GLOBALSTAR L.P.
SATELLITE CONTROLLED POWER CONTROL FOR PERSONAL COMMUNICATION USER TERMINALS
Inventors: GALLAGHER VK MONTE PA WIEDEMAN RA
                      96-38A       USA                    02/23/99      6,085,067     07/04/00     Granted        12/16/16
</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 5
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
INTERACTIVE FIXED AND MOBILE SATELLITE NETWORK
Inventors: WIEDEMAN RA
                       96-40       USA                    12/19/96      5,896,558     04/20/99     Granted        12/19/16
GLOBALSTAR L.P.
INTERACTIVE FIXED AND MOBILE SATELLITE NETWORK
Inventors: WIEDEMAN RA
                      96-40A       USA                    06/04/98      6,160,994     12/12/00     Granted        12/19/16
GLOBALSTAR L.P.
INTERACTIVE FIXED AND MOBILE SATELLITE NETWORK
Inventors: WIEDEMAN RA
                      96-40C       USA                    03/21/02                                 Published
GLOBALSTAR L.P.
MULTIPLE SATELLITE SYSTEM POWER ALLOCATION BY COMMUNICATION LINK OPTIMIZATION
Inventors: SHERMAN RH (WDL) GALLAGHER V (GLP) HUANG J (WDL)
                       97-01       USA                    01/03/97      6,091,933     07/18/00     Granted        01/03/17
GLOBALSTAR L.P.
INDOOR SATELLITE CELLULAR REPEATER SYSTEM
Inventors: DIETRICH FJ
                       97-03       USA                    01/21/97      5,912,641     06/15/99     Granted        01/21/17
GLOBALSTAR L.P.
SATELLITE TELEPHONE INTERFERENCE AVOIDANCE SYSTEM
Inventors: WIEDEMAN RA MONTE PA GALLAGHER VK
                       97-07       USA                    02/06/97      5,875,180     02/23/99     Granted        02/06/17
                                   Japan                  02/06/98                                 Pending
GLOBALSTAR L.P.
SATELLITE TELEPHONE INTERFERENCE AVOIDANCE SYSTEM
Inventors: WIEDEMAN RA MONTE PA GALLAGHER VK
                      97-07A       USA                    11/23/98      6,023,463     02/08/00     Granted        02/06/17
GLOBALSTAR L.P.
SATELLITE COMMUNICATIONS SYSTEM HAVING DISTRIBUTED USER ASSIGNMENT AND RESOURCE ASSIGNMENT WITH TERRESTRIAL GATEWAYS
Inventors: WIEDEMAN RA MONTE PA
                       97-11       USA                    03/18/97      5,918,157     06/29/99     Granted        09/05/12
                                   Canada                 02/13/98                                 Pending
                                   India                  03/10/98                                 Pending
                                   Indonesia              03/17/98                                 Pending
                                   Japan                  03/18/98                                 Pending
                                   Taiwan                 03/05/98         107162     01/19/00     Granted        03/05/18
                                   Australia              02/12/98         724146     01/11/01     Granted        02/12/18
                                   Mexico                 02/12/98                                 Pending
GLOBALSTAR L.P.
LOW EARTH ORBIT DISTRIBUTED GATEWAY COMMUNICATION SYSTEM
Inventors: WIEDEMAN RA MONTE PA
                       97-15       USA                    04/15/97      5,884,142     03/16/99     Granted        04/15/17
                                   Canada                 03/10/98                                 Pending
</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 6
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
                                   EPO                    04/15/98      0872966       01/02/03     Granted        04/15/18
                                   India                  04/13/98                                 Pending
                                   Japan                  04/15/98                                 Pending
                                   Korea (South)          03/31/98                                 Pending
                                   Russian Federation     03/06/98                                 Pending
                                   Fed. Rep.              04/15/98      0872966       01/02/03     Granted        04/15/18
                                   Finland                04/15/98      0872966       01/02/03     Granted        04/15/18
                                   France                 04/15/98      0872966       01/02/03     Granted        04/15/18
                                   United Kin             04/15/98      0872966       01/02/03     Granted        04/15/18
                                   Italy                  04/15/98      0872966       01/02/03     Granted        04/15/18
                                   Sweden                 04/15/98      0872966       01/02/03     Granted        04/15/18
GLOBALSTAR L.P.
DUAL MODE SATELLITE TELEPHONE WITH HYBRID BATTERY/CAPACITOR POWER SUPPLY
Inventors: WIEDEMAN RA IZADIAN J GALLAGHER V
                       97-16       USA                    04/15/97      6,064,857     05/16/00     Granted        04/15/17
                                   Japan                  06/18/98                                 Pending
GLOBALSTAR L.P.
SYSTEM FOR GENERATING AND USING GLOBAL RADIO FREQUENCY MAPS
Inventors: WIEDEMAN RA GALLAGHER VK SERRI JA
                       97-18       Japan                  04/30/98                                 Pending
GLOBALSTAR L.P.
SYSTEM FOR GENERATING AND USING GLOBAL RADIO FREQUENCY MAPS
Inventors: WIEDEMAN RA GALLAGHER VK SERRI JA
                      97-18A       USA                    10/09/98      6,125,260     09/26/00     Granted        04/29/17
GLOBALSTAR L.P.
CHANNEL FREQUENCY ALLOCATION FOR MULTIPLE-SATELLITE COMMUNICATION NETWORK
Inventors: SHERMAN RH (WDL) DRIGGERS TF (GLP)
                       97-23       USA                    05/22/97      6,021,309     02/01/00     Granted        05/22/17
GLOBALSTAR L.P.
CHANNEL FREQUENCY ALLOCATION FOR MULTIPLE-SATELLITE COMMUNICATION NETWORK
Inventors: SHERMAN RH DRIGGERS TF
                      97-23A       USA                    11/17/99      6,463,279     10/08/02     Granted        05/22/17
GLOBALSTAR L.P.
DYNAMIC TRAFFIC ALLOCATION FOR POWER CONTROL IN MULTIPLE-SATELLITE COMMUNICATION SYSTEMS
Inventors: SHERMAN RH (WDL)  BOYD S (GLP CONSULT)  SCHNEIDER D JR. (WDL)
                       97-26       USA                    07/10/97      6,081,710     06/27/00     Granted        07/10/17
GLOBALSTAR L.P.
SPACECRAFT DISCIPLINED REFERENCE OSCILLATOR
Inventors: HITCH BF     GILLILAND KP
                      97-36        USA                    08/29/97      5,861,842     01/19/99     Granted        08/29/17
                                   EPO                    08/26/98        0899637     07/24/02     Granted        08/26/18
                                   Japan                  08/31/98                                 Pending
                                   Fed. Rep.              08/26/98       69806700.2   07/24/02     Granted        08/26/18
                                   France                 08/26/98        0899637     07/24/02     Granted        08/26/18
                                   United Kin             08/26/98        0899637     07/24/02     Granted        08/26/18
                                   Italy                  08/26/98        0899637     07/24/02     Granted        08/26/18
GLOBALSTAR L.P.
GLOBAL POSITIONING SYSTEM SELF CALIBRATION ATTITUDE DETERMINATION
Inventors: FULLER RA     RODDEN JJ
                      97-38        USA                    08/31/98      6,101,430     08/08/00     Granted        09/16/17
                                   EPO                    09/16/98                                 Published
                                   Japan                  09/16/98                                 Pending
GLOBALSTAR L.P.
SATELLITE COMMUNICATION SERVICE WITH NON-CONGRUENT SUB-BEAM COVERAGE
Inventors: MONTE PA HIRSHFIELD E
                       97-40       USA                    10/09/97      6,101,385     08/08/00     Granted        10/09/17
GLOBALSTAR L.P.
SATELLITE COMMUNICATION SERVICE WITH NON-CONGRUENT SUB-BEAM COVERAGE
Inventors: MONTE PA HIRSHFIELD E
                      97-40A       USA                    08/07/00      6,301,476     10/09/01     Granted        10/09/17
</TABLE>

<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 7
          AS OF 04/02/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
BROADCAST DATA ACCESS CONTROLLER COMMUNICATIONS SYSTEM
Inventors: BOWMAN PJ MONTE PA WIEDEMAN RA
                       97-44       USA                    11/05/97      5,999,623     12/07/99     Granted        11/05/17
                                   China                  11/04/98                                 Published
                                   India                  11/03/98                                 Pending
                                   Japan                  11/05/98                                 Pending
                                   Korea (South)          11/05/98                                 Pending
                                   Mexico                 10/05/98                                 Pending
GLOBALSTAR L.P.
GLOBAL MOBILE PAGING SYSTEM
Inventors: WIEDEMAN RA
                       98-01       USA                    01/07/98      6,128,487     10/03/00     Granted        01/07/18
                                   China                  01/07/99                                 Pending
                                   India                  12/17/98                                 Pending
                                   Japan                  01/07/99                                 Published
                                   Korea (South)          01/08/99                                 Pending
                                   Mexico                 12/03/98                                 Published
                                   Russia Federation      12/03/98                                 Allowed
GLOBALSTAR L.P.
GLOBAL MOBILE PAGING SYSTEM
Inventors: WIEDEMAN RA
                      98-01A       USA                    09/28/00      6,272,339     08/07/01     Granted        01/07/18
GLOBALSTAR L.P.
MULTIPLE VOCODER MOBILE SATELLITE TELEPHONE SYSTEM
Inventors: WIEDEMAN RA
                       98-04       USA                    01/21/98      6,418,147     07/09/02     Granted        01/21/18
                                   EPO                    01/20/99                                 Pending
                                   Japan                  01/21/99                                 Published
                                   Mexico                 12/23/98                                 Pending

GLOBALSTAR L.P.
ROBUST AUTONOMOUS GPS TIME REFERENCE FOR SPACE APPLICATION
Inventors: HUR-DIAZ S                   RODDEN JJ                               FULLER RA
                       98-12       USA                    02/24/99      6,266,584     07/24/01     Granted        02/24/19
                                   EPO                    03/08/99      0986733       06/12/02     Granted        03/08/19
                                   Fed. Rep.              03/08/99      0986733       06/12/02     Granted        03/08/19
                                   France                 03/08/99      0986733       06/12/02     Granted        03/08/19
                                   United Kin.            03/08/99      0986733       06/12/02     Granted        03/08/19
                                   Italy                  03/08/99      0986733       06/12/02     Granted        03/08/19
GLOBALSTAR L.P.
SATELLITE COMMUNICATION SYSTEM PROVIDING MULTI-GATEWAY DIVERSITY TO A MOBILE USER TERMINAL
Inventors: WEIDEMAN RA MONTE PA
                       98-19       USA                    07/14/98                                 Pending
                                   Canada                 06/11/99                                 Pending
                                   EPO                    06/16/99                                 Published
                                   Japan                  07/14/99                                 Pending
                                   Russian Federation     07/13/99                                 Pending
GLOBALSTAR L.P.
SATELLITE COMMUNICATION SYSTEM PROVIDING MULTI-GATEWAY DIVERSITY AND IMPROVED SATELLITE LOADING
Inventors: WEIDEMAN RA MONTE PA
                       98-33       USA                    09/17/98                                 Pending
                                   Canada                 07/22/99                                 Pending
                                   Japan                  09/01/99                                 Pending
                                   Russian Federation     09/16/99                                 Pending
GLOBALSTAR L.P.
ISP SYSTEM USING NON-GEOSYNCHRONOUS ORBIT SATELLITES
Inventors: WIEDEMAN RA WAKNIS PV
                       99-02       USA                    06/16/99                                 Pending
                                   Australia              01/26/00                                 Pending
                                   Canada                 01/17/00                                 Pending
                                   Japan                  01/26/00                                 Pending
</TABLE>

<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 8
          AS OF 4/2/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
LOW EARTH ORBIT DISTRIBUTED GATEWAY COMMUNICATION SYSTEM
Inventors: WIEDEMAN RA MONTE PA
                       99-31       USA                    07/08/99      6,253,080     06/26/01     Granted        07/08/19
                                   EPO                    07/07/00                                 Published
                                   Canada                 06/02/00                                 Pending
                                   China                  07/10/00                                 Published
                                   Hong Kong              06/18/01                                 Published
                                   India                                                           Unfiled
                                   Indonesia                                                       Unfiled
                                   Japan                                                           Unfiled
                                   Korea (South)          07/01/00                                 Published
GLOBALSTAR L.P.
LOW EARTH ORBIT DISTRIBUTED GATEWAY COMMUNICATION SYSTEM
Inventors: WIEDEMAN RA MONTE PA
                      99-31A       USA                    04/06/01                                 Published
GLOBALSTAR L.P.
USING REFLECTED SOLAR RADIATION PRESSURE TO PROVIDE
STATIONKEEPING MANEUVERING OF A SPACECRAFT
Inventors: BARKER LA LANGE B
                       99-36       USA                    08/05/99         6,164,597  12/26/00     Granted        08/05/19
                                   EPO                    07/10/00                                 Published
                                   Japan                  07/19/00                                 Published
GLOBALSTAR L.P.
DYNAMIC SATELLITE FILTER CONTROLLER FOR LEO SATELLITES
Inventors: WIEDEMAN RA HIRSHFIELD E
                       99-43       EPO                    09/13/00                                 Pending
                                   Hong Kong              09/12/01                                 Published
                                   India                                                           Unfiled
                                   Indonesia              09/13/00                                 Pending
                                   Japan                  09/14/00                                 Pending
                                   Korea (South)          09/14/00                                 Published
                                   Taiwan                 09/14/00         153999     08/08/02     Granted        09/13/20
GLOBALSTAR L.P.
PSEUDO-GLOBAL TITLE TRANSLATION FOR INTERNATIONAL ROAMING OF ANSI-41 SUBSCRIBERS
Inventors: BOWMAN P BAZINET C
                      YRO-04       Canada                 01/21/01                                 Pending
                                   China                  01/21/01                                 Published
                                   Australia              01/16/01                                 Pending
                                   Brazil                 01/16/01                                 Pending
                                   Russian Federation     01/16/01                                 Pending
GLOBALSTAR L.P.
PSEUDO-GLOBAL TITLE TRANSLATION FOR INTERNATIONAL ROAMING OF ANSI-41 SUBSCRIBERS
Inventors: BOWMAN P BAZINET C
                      YRO-04A      USA                    03/11/02                                 Published
GLOBALSTAR L.P.
LOW EARTH ORBIT SATELLITE CONSTELLATION STATIONKEEPING
ALGORITHM WITH ABSOLUTE ALTITUDE CONTROL
Inventors: BARKER LA
                      YRO-07       USA                    01/31/00      6,453,220     09/17/02     Granted        01/31/20
                                   France                 01/17/01                                 Published
GLOBALSTAR L.P.
FEEDER LINK CODE DIVISION MULTIPLEXING AND DEMULTIPLEXING FOR A SATELLITE COMMUNICATION SYSTEM
Inventors: MONTE PA YUNG W
                      YRO-13       USA                    02/15/00                                 Pending
GLOBALSTAR L.P.
DUAL MODE INTERNET ACCESS VIA CELLULAR AND LEO SATELLITES
Inventors: WIEDEMAN RA WAKNIS PV
                      YRO-22       USA                    03/19/01                                 Pending
GLOBALSTAR L.P.
USER TERMINAL EMPLOYING QUALITY OF SERVICE PATH DETERMINATION AND BANDWIDTH SAVING MODE FOR A SATELLITE ISP SYSTEM
Inventors: WIEDEMAN RA WAKNIS PV
                      YRO-25       USA                    04/25/01                                 Published
</TABLE>

<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 9
          AS OF 4/2/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
DEFERRING DNS SERVICE FOR A SATELLITE ISP SYSTEM USING NON-GEOSYNCHRONOUS SATELLITES
Inventors: WIEDEMAN RA WAKNIS PV
                      YRO-26       USA                    04/24/01                                 Published
GLOBALSTAR L.P.
ON-BOARD DNS SERVICE FOR A SATELLITE ISP SYSTEM USING NON-GEOSYNCHRONOUS ORBIT SATELLITES
Inventors: WIEDEMAN RA WAKNIS PV
                      YRO-27       USA                    04/24/01                                 Published
GLOBALSTAR L.P.
LOW PERFORMANCE WARNING SYSTEM AND METHOD FOR MOBILE SATELLITE SERVICE USER TERMINALS
Inventors: WIEDEMAN RA WAKNIS PV
                      YRO-28       USA                    05/01/01                                 Published
GLOBALSTAR L.P.
MULTIPLE SATELLITE REPEATER MANAGEMENT SYSTEM USING FRAME ERROR RATE FOR DIVERSITY SELECTION
Inventors: WIEDEMAN RA MONTE PA PENWARDEN KA
                      YRO-41       USA                    08/28/00                                 Allowed
GLOBALSTAR L.P.
METHODS AND APPARATUS FOR BROADCASTING REGIONAL INFORMATION OVER A SATELLITE COMMUNICATION SYSTEM
Inventors: SERRI J GALLAGHER V SITES MJ
                      YRO-42       USA                    08/29/00                                 Allowed
GLOBALSTAR L.P.
E-MAIL COMPOSITION BY REMOTE VOICE RECOGNITION FOR A USER TERMINAL OF A WIRELESS COMMUNICATION SYSTEM
Inventors: PENWARDEN K
                      YRO-44       USA                    09/14/00                                 Pending
GLOBALSTAR L.P.
SPREAD-SPECTRUM CODE DIVISION DESTINATION ACCESS (SS-CDDA) FOR SATELLITE COMMUNICATION SYSTEM W/ DISTRIBUTED GATEWAYS
Inventors: YUNG W MONTE PA WIEDEMAN RA
                      YRO-51       USA                    10/06/00                                 Pending
GLOBALSTAR L.P.
RETURN LINK CHANNEL LOADING OF MULTIPLE SATELLITES WITH MULTIPLE SPREAD SPECTRUM USER TERMINALS
Inventors: VADDIPARTY SV MONTE PA YAO Y
                      YRO-52       USA                    10/13/00                                 Pending
GLOBALSTAR L.P.
RESOLUTION OF AMBIGUITY OF POSITION LOCATION FOR USER TERMINALS OPERATING IN A LOW EARTH ORBIT SATELLITE SYSTEM
Inventors: WIEDEMAN RA SITEG MJ
                      YRO-60       USA                    12/29/00                                 Published
GLOBALSTAR L.P.
METHOD AND APPARATUS PROVIDING SUPPRESSION OF SYSTEM ACCESS BY USE OF CONFIDENCE POLYGONS, VOLUMES AND SURFACES IN A
Inventors: WIEDEMAN RA                    SITES MJ                              MONTE PA
                      YRO-61       USA                    12/29/00                                 Published
</TABLE>
<PAGE>
GLOBALSTAR L.P.  PATENT PORTFOLIO                                        Page 10
          AS OF 4/2/03

<TABLE>
<CAPTION>
                                                           FILING                      ISSUE
    OWNER           DOCKET NO.           COUNTRY            DATE       PATENT NO.       DATE         STATUS        EXPIRES
    -----           ----------           -------            ----       ----------       ----         ------        -------
<S>                 <C>            <C>                    <C>          <C>            <C>          <C>            <C>
GLOBALSTAR L.P.
GLOBAL DUAL TERMINAL LOW EARTH ORBIT COMMUNICATIONS SYSTEM
Inventors: WIEDEMAN RA MONTE PA
                      YR1-05       USA                    03/19/01                                 Published
                                   EPO                    03/19/02                                 Published
                                   Japan                  03/19/02                                 Pending
GLOBALSTAR L.P.
RESOURCE ALLOCATION TO TERRESTRIAL AND SATELLITE SERVICES
Inventors: MONTE PA ARNOLD B
                      YR2-13P      USA                    06/27/02                                 Pending
                                   USA                                                             Unfiled
                                   Australia                                                       Unfiled
                                   Brazil                                                          Unfiled
                                   Canada                                                          Unfiled
                                   Russian Fe                                                      Unfiled
GLOBALSTAR L.P.
SIMPLEX REMOTE TELEMETRY DATA VIA A SATELLITE SYSTEM
Inventors: VADDIPARTY SV SHAH BT MONTE PA
                      YR3-02       USA                    01/29/03                                 Pending
GLOBALSTAR L.P./DASA
DYNAMIC BIAS FOR ORBITAL YAW STEERING
Inventors: RODDEN JJ (SS/L) FURUMOTO N (SS/L) FICHTER W (DASA)
                      96-02        USA                    01/12/96      5,791,598     08/11/98     Granted        01/12/16
                                   India                  01/03/97                                 Pending
                                   Japan                  01/10/97                                 Pending

GLOBALSTAR L.P./QUALCOMM
MULTIPLE SATELLITE REPEATER CAPACITY LOADING WITH MULTIPLE SPREAD SPECTRUM GATEWAY ANTENNAS
Inventors: WIEDEMAN RA MONTE PA CARTER S (QUALCOMM)
                      95-15        USA                    06/06/95      5,592,481     01/07/97     Granted        06/06/15
                                   Canada                 03/21/96                                 Pending
                                   EPO                    03/19/96                                 Pending
                                   Hong Kong              10/19/98                                 Published
                                   Japan                  04/22/96                                 Pending
                                   Korea (South)          05/13/96                                 Pending
                                   Taiwan                 04/06/96         088533     12/01/97     Granted        04/05/16
                                   Australia              03/12/96         695589     12/03/98     Granted        03/12/16
                                   Russian Federation     03/12/96        2136108     08/27/99     Granted        03/12/16
GLOBALSTAR L.P./QUALCOMM
MULTIPLE SATELLITE REPEATER CAPACITY LOADING WITH MULTIPLE SPREAD SPECTRUM GATEWAY ANTENNAS
Inventors: WIEDEMAN RA MONTE PA CARTER SS (Q)
                      95-15A       USA                    01/03/97      5,812,538     09/22/98     Granted        06/06/15
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                              FILING DATE/       APPLN. NO./        REG. DATE
       COUNTRY        CLASS      STATUS       NO.           OWNER             ALLOWANCE DATE        REG. NO.       RENEWAL DATE
       -------        -----      ------       ---           -----             --------------        --------       ------------
<S>                   <C>      <C>           <C>       <C>                    <C>                 <C>              <C>
ABOVE AND BEYOND
Argentina             38       Registered     569      GLOBALSTAR  L.P.          11/08/99         2,250.814          04/10/01
                               No additional expense 5/24/01                     12/22/99         1,824.833          04/10/11
Aruba                 38       Registered     577      GLOBALSTAR  L.P.          06/18/99         IM-991124.13       06/18/99
                               No additional expense 5/24/01                                      20283              06/18/09
Australia             38       Registered     552      GLOBALSTAR  L.P.          06/29/99         798773             07/21/00
                               No additional expense 5/24/01                                      798773             06/29/09
Barbados              38       Registered     579      GLOBALSTAR  L.P.          11/03/99         99186127           09/29/00
                               No additional expense 5/24/01; abandon at renewal 05/18/00         81/13583           09/29/10
Chile                 38       Registered     566      GLOBALSTAR  L.P.          11/26/99         468.370            07/05/00
                               No additional expense 5/24/01                                      571.181            07/05/10
Columbia              38       Registered     559      GLOBALSTAR  L.P.          05/25/00         0038522            03/13/01
                               No additional expense 5/24/01                     06/27/00         249746             03/13/11
Costa Rica            38       Registered     572      GLOBALSTAR  L.P.          12/08/99         073105             06/20/00
                               No additional expense 5/24/01                                      120594             06/20/10
Czech Republic        38       Registered     564      GLOBALSTAR  L.P.          11/10/99         148733             11/20/00
                               No additional expense 5/24/01                     08/16/00         228798             11/20/09
Dominican Republic    16 (63)  Registered     581      GLOBALSTAR  L.P.          12/29/99         52865              01/30/00
                               No additional expense 5/24/01; abandon at renewal                  110,423            01/30/20
European Community    38       Registered     555      GLOBALSTAR  L.P.          06/29/99         1228618            09/12/00
                               No additional expense 5/24/01                                      1228618            06/29/09
France                38       Registered     576      GLOBALSTAR  L.P.          11/17/99         99/823 682         11/17/99
                               No additional expense 5/24/01                                      99 823 682         11/17/09
Guatemala             38       Registered     588      GLOBALSTAR  L.P.          02/08/00         M-958-2000         10/17/00
                               No additional expense 5/24/01; abandon at renewal                  107012             10/17/10
Haiti                 38       Registered     582      GLOBALSTAR  L.P.          12/02/99         45/125             06/23/00
                               No additional expense; abandon at renewal                          45/125             06/23/10
Jamaica                9       Registered     583      GLOBALSTAR  L.P.          11/05/99         9/2435             11/05/99
                               No additional expense 5/24/01; abandon at renewal                  35,752             11/05/06
Mexico                38       Registered     543      GLOBALSTAR  L.P.          08/03/99         385541             09/28/99
                               No additional expense 5/24/01                                      625525             08/03/09
Morocco               38       Registered     567      GLOBALSTAR  L.P.          11/24/99         No. 4              11/24/99
                               No additional expense 5/24/01                                      71584              11/24/19
Netherlands Antilles   9       Registered     584      GLOBALSTAR  L.P.          12/07/99         N/A                01/20/00
                               No additional expense 5/24/01                                      21952              12/07/09
Nicaragua             38       Registered     574      GLOBALSTAR  L.P.          11/19/99         99-4111            12/04/00
                               No additional expense 5/24/01                     03/31/00         45,447 C.C.        12/04/10
Panama                38       Registered     575      GLOBALSTAR  L.P.          12/20/99         104437             12/20/99
                               No additional expense 5/24/01                                      104437             12/20/09
Peru                  38       Registered     561      GLOBALSTAR  L.P.          11/12/99         095023             02/28/00
                               No additional expense 5/24/01                                      00020506           02/28/10
Puerto Rico           38       Registered     585      GLOBALSTAR  L.P.          11/04/99         47,375             07/11/01
                               No additional expense 5/24/01                                      47,375             11/04/09
Switzerland           38       Registered     565      GLOBALSTAR  L.P.          11/02/99         09851/1999         07/17/00
                               No additional expense 5/24/01                                      473.354            11/02/09
Turkey                38       Registered     562      GLOBALSTAR  L.P.          12/09/99         99/21269           12/09/99
                               No additional expense 5/24/01                     06/19/00         99/21269           12/09/09
United States         38       Registered     542      GLOBALSTAR  L.P.          06/18/99         75/732,362         03/21/00
                               No additional expense 5/24/01                                      2,333,230          03/21/10
Venezuela             38       Registered     549      GLOBALSTAR  L.P.          06/30/99         11322-1999         02/25/00
                               No additional expense 5/24/01                                      TBD                02/25/10
GLOBALSTAR
Belize                38       Registered     655      GLOBALSTAR, L.P.          07/10/98         8171               12/03/98
                               Based on UK Reg. 1541774
                                                                                                                     07/15/10
Brazil                38       Registered     044      GLOBALSTAR, L.P.          08/05/94         817934049          10/29/96
                                                                                                  817934049          10/29/06
Canada                38       Registered     046      GLOBALSTAR, L.P.          07/13/93         732,828            01/13/00
                                                                                                  TMA521,512         01/13/15
Chile                 35,38    Registered     774      GLOBALSTAR, L.P.                           572,061            07/14/00
                                                                                                                     07/14/10
Chile                 9        Registered     760      GLOBALSTAR, L.P.          03/23/01         522154             01/21/02
                                                                                 08/03/01         618.509            01/21/12
Dominica              9        Registered     530      GLOBALSTAR, L.P.          08/04/99         2106462 (UK)       07/31/96
                               Based on UK Registraton                                            2106462 (UK)       07/31/06
France                38,9     Registered     049      GLOBALSTAR, L.P.          03/02/93         93/457594          03/02/93
                               Renewal requested C-87 Universal TV-GLOBAL SAT                     93/457594          03/02/03
Germany               9        Registered     321      GLOBALSTAR, L.P.          11/02/96         396 47 546.9       01/14/99
                               Use by 1/14/04                                                     396 47 546         11/30/06
Philippines           38       Registered     055      GLOBALSTAR, L.P.          09/13/94         95181              10/18/01
                               Certificate correction required                   09/07/01         4-1994-97239       10/18/11
United Kingdom        9        Registered     322      GLOBALSTAR, L.P.          07/31/96         2106462            07/31/96
                                                                                                  2106462            07/31/06
United Kingdom        38       Registered     061      GLOBALSTAR, L.P.          07/15/93         1541774            07/15/93
                                                                                                  1541774            07/15/10
United States         38       Registered     066      GLOBALSTAR, L.P.          04/09/92         74/263,999         10/24/00
                                                                                                  2,398,158          10/24/10
United States         9        Pending        319      GLOBALSTAR, L.P.          06/25/96         75/125,377
                               Statement of use filed 12/12/02                   06/25/02
</TABLE>

Note: US applications/registrations cover: Guam, Panama Canal Zone, US Virgin
      Islands, Northern Marianna Islands French applications/registrations
      cover: Guadeloupe, Martinique, St. Barthelemy UK
      applications/registrations cover: Anguilla, Antiqua & Barbuda, Dominica,
      Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent &
      Grenadines, British Virgin Islands

Prepared by: D. Ellwood

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                             FILING DATE/       APPLN. NO./        REG. DATE
   COUNTRY            CLASS       STATUS      NO.           OWNER            ALLOWANCE DATE        REG. NO.       RENEWAL DATE
   -------            -----       ------      ---           -----            --------------        --------       ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
GLOBALSTAR (CHINESE TRANSLATION)
China                 38       Registered     369      GLOBALSTAR, L.P.      08/11/97            970083505          09/28/98
                                                                                                 1211954            09/28/08
</TABLE>

Note: US applications/registrations cover: Guam, Panama Canal Zone, US Virgin
      Islands, Northern Marianna Islands French applications/registrations
      cover: Guadeloupe, Martinique, St. Barthelemy UK
      applications/registrations cover: Anguilla, Antigua & Barbuda, Dominica,
      Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent &
      Grenadines, British Virgin Islands

Prepared by: D. Ellwood

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                                CASE                            FILING DATE/        APPLN. NO./        REG. DATE
       COUNTRY         CLASS     STATUS          NO.           OWNER            ALLOWANCE DATE        REG. NO.       RENEWAL DATE
       -------         -----     ------          ---           -----            --------------      ----------       ------------
<S>                   <C>      <C>              <C>       <C>                   <C>                 <C>              <C>
GLOBALSTAR DESIGN

African IP
  Organization        38       Registered       758       GLOBALSTAR, L.P.      04/03/01            3200102356         06/22/01
                                                                                04/03/01            44006              04/03/11

Algeria               38       Registered       041       GLOBALSTAR, L.P.      03/02/94            047464             03/02/94
                                                                                                    047464             03/02/04

Anguilla              38       Registered       528       GLOBALSTAR, L.P.      06/25/99            3089               07/15/00
                                                                                                    3089               07/15/10

Antigua               38       Registered       529       GLOBALSTAR, L.P.      08/06/99            2051               06/14/00
                                                                                                    2051               07/15/10

Argentina             38       Registered       296       GLOBALSTAR, L.P.      09/26/97            2,105,471          06/15/01
                                                                                11/26/97            1,833,594          06/15/11

Aruba                 38       Registered       537       GLOBALSTAR, L.P.      06/03/99            IM-990604.20       06/23/99
                                                                                                    19944              06/03/09

Australia             38       Registered       042       GLOBALSTAR, L.P.      09/02/93            A610770            09/02/93
                               See conflict 41                                                      A610770            09/02/10

Bahamas               Local    Registered       520       GLOBALSTAR, L.P.      07/02/99            21,756             06/06/01
                                                                                                    21,756             07/02/13

Bahamas               Local    Registered       550       GLOBALSTAR, L.P.      07/15/99            21,755             06/06/01
                                                                                09/07/00            21,755             07/15/13

Bahrain               38       Registered       391       GLOBALSTAR, L.P.      07/07/98            2786               01/15/00
                                                                                11/10/99            TM2786             07/07/08

Barbados              38       Registered       521       GLOBALSTAR, L.P.      05/25/99            P.6714             12/01/00
                                                                                07/10/00            81/14448           12/01/10

Belize                38       Registered       389       GLOBALSTAR, L.P.      07/15/93            1541774            12/03/98
                               Based on UK                                                          8170
                               registration

Bolivia               38       Pending          753       GLOBALSTAR, L.P.      03/30/01            003966             07/15/10
                                                                                11/09/01

Brazil                38       Registered       043       GLOBALSTAR, L.P.      08/05/94            817934057          10/29/96
                                                                                                    817934057          10/29/06

British Virgin
  Islands             38       Registered       536       GLOBALSTAR, L.P.      07/14/93             --                07/12/99
                               Based on UK                                                          1698               07/14/07
                               registration
                               1541776

Canada                9        Registered       313       GLOBALSTAR, L.P.      10/02/96            824,964            01/14/00
                               C-85 Global                                                          TMA521,516         01/14/15
                               Star Software
                               Ltd-Canada

Canada                38       Registered       045       GLOBALSTAR, L.P.      07/13/93            732,989            01/12/00
                                                                                                    TMA521,418         01/12/15
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                            FILING DATE/        APPLN. NO./       REG. DATE
      COUNTRY         CLASS     STATUS        NO.           OWNER            ALLOWANCE DATE        REG. NO.       RENEWAL DATE
      -------         -----     ------        ---           -----            --------------        --------       ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
Chile                 35,38    Pending       769       GLOBALSTAR, L.P.      06/22/01            532,387
                               opposed by                                    11/06/01
                               Grencorp

China                 38       Registered    047       GLOBALSTAR, L.P.      12/03/94            94019204           12/28/95
                                                                                                 803912             12/28/05

China                 9        Registered    314       GLOBALSTAR, L.P.      09/13/96            960104146          03/28/98
                                                                                                 1163248            03/28/08

Columbia              38       Pending       754       GLOBALSTAR, L.P.      11/22/00            00088602
                                                                             12/26/00

Costa Rica            38       Registered    384       GLOBALSTAR, L.P.      08/04/98            5714-98            03/23/99
                                                                                                 112692             03/23/09

Cyprus                38       Pending       762       GLOBALSTAR, L.P.      02/23/01            8097
                               Rejected.
                               No appeal

Dominican Republic    20-pro   Registered    556       GLOBALSTAR, L.P.      07/02/99            30274              12/15/99
                                                                                                 108,838            12/15/19

Dominican Republic    63-pri   Registered    552       GLOBALSTAR, L.P.      07/02/99            30273              12/15/99
                                                                                                 108,996            12/15/19

Ecuador               38       Registered    751       GLOBALSTAR, L.P.      11/20/00            109256             07/25/01
                                                                             02/03/01            4070-01            07/25/11

Egypt                 38       Registered    298       GLOBALSTAR, L.P.      09/25/95            97591              09/07/99
                                                                             01/07/99            97591              09/25/05

El Salvador           38       Registered    387       GLOBALSTAR, L.P.      06/18/98            3490/98            01/13/00
                               Recorded                                                          226                01/13/10
                               assignment
                               has been
                               published

Finland               9        Registered    315       GLOBALSTAR, L.P.      07/26/96            3279/96            12/15/99
                                                                                                 216191             12/15/09

Finland               38       Registered    306       GLOBALSTAR, L.P.      09/26/95            5495/95            07/15/96
                                                                                                 201105             07/15/06

France                38,9     Registered    048       GLOBALSTAR, L.P.      03/02/93            93/457593          03/02/93
                               Renewal                                                           93/457593          03/02/03
                               requested

Germany               38       Registered    303       GLOBALSTAR, L.P.      09/30/95            395 38 260.2       02/10/97
                                                                                                 395 38 260         09/30/05

Grenada               38       Registered    531       GLOBALSTAR, L.P.      07/15/93            84 of 1999         07/15/93
                               Based on UK                                                       84 of 1999         07/15/10
                               1541776

Guatemala             38       Registered    388       GLOBALSTAR, L.P.      06/02/98            M-4048-8           10/04/99
                                                                                                 98,983             10/04/09
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                            FILING DATE/        APPLN. NO./        REG. DATE
    COUNTRY           CLASS     STATUS        NO.           OWNER            ALLOWANCE DATE        REG. NO.       RENEWAL DATE
    -------           -----     ------        ---           -----            --------------        --------       ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
Haiti                 38       Registered    523       GLOBALSTAR, L.P.      05/07/99            U 000426           01/14/00
                               Aff. of use                                                       263/122            01/14/10
                               due 1/14/05

Honduras              38       Registered    386       GLOBALSTAR, L.P.      03/30/98            4133/98            05/13/99
                                                                                                 5269               05/13/09

Hong Kong             38       Registered    308       GLOBALSTAR, L.P.      12/18/97            97 17904           12/18/97
                               Renewal                                                           B04048/2000        12/18/04
                               requested

Hong Kong             9        Registered    316       GLOBALSTAR, L.P.      08/08/96            96-09817           05/10/99
                                                                                                 B05689             08/08/03

India                 9        Pending       446       GLOBALSTAR, L.P.      06/22/98            807103
                               Informal
                               hearing
                               scheduled
                               1/6/03

Indonesia             38       Registered    051       GLOBALSTAR, L.P.      01/25/94            H4.HC.01.01        04/06/95
                                                                                                 330954             01/25/04
Ireland               9,38     Registered    674       GLOBALSTAR, L.P.      09/08/00            2000/03272         09/08/00
                                                                             08/08/01            219066             09/08/10

Israel                38       Registered    052       GLOBALSTAR, L.P.      10/11/93            89200              06/11/95
                                                                                                 89200              10/11/14

Italy                 9        Registered    323       GLOBALSTAR, L.P.      09/25/96            RM96C004251        09/01/98
                                                                                                 758651             09/25/06

Italy                 38       Registered    299       GLOBALSTAR, L.P.      04/10/95            RM95C004533        07/23/97
                                                                                                 720128             04/10/05

Jamaica               9        Pending       548       GLOBALSTAR, L.P.      06/23/99            9/2378
                               Registration                                  03/09/00
                               details
                               pending

Japan                 38       Registered    053       GLOBALSTAR, L.P.      08/31/93            89252/1993         12/25/96
                                                                                                 3241721            06/25/06

Japan                 9        Registered    317       GLOBALSTAR, L.P.      11/26/96            133468/1996        03/06/98
                                                                                                 4121722            03/06/08

Jordan                38       Registered    626       GLOBALSTAR, L.P.      01/02/00            59236              04/29/02
                                                                             01/30/02            59236              01/02/10

Jordan                9        Registered    392       GLOBALSTAR, L.P.      07/19/98            50563              11/27/99
                                                                                                 50563              07/19/05

Korea, Republic of    9        Registered    324       GLOBALSTAR, L.P.      11/27/96            96-52713           02/27/98
                                                                                                 397528             02/27/08

Korea, Republic of    38       Registered    300       GLOBALSTAR, L.P.      10/01/95            95-9313            06/20/96
                                                                                                 36758              06/20/07
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                             FILING DATE/       APPLN. NO./       REG. DATE
    COUNTRY           CLASS     STATUS        NO.           OWNER            ALLOWANCE DATE        REG. NO.       RENEWAL DATE
    -------           -----     ------        ---           -----            --------------        --------       ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
Kuwait                38       Registered    393       GLOBALSTAR, L.P.      06/14/99            43389              08/14/01
                                                                             07/08/01            35429              06/14/09

Malaysia              9        Registered    304       GLOBALSTAR, L.P.      12/09/97            MA/213067/97       04/04/02
                                                                             09/27/01            97021306           12/09/07

Malaysia              38       Registered    390       GLOBALSTAR, L.P.      12/01/97            97/18664           07/11/01
                                                                             04/26/01            97018664           12/01/07

Mexico                38       Registered    054       GLOBALSTAR, L.P.      02/01/96            253383             05/27/96
                                                                                                 522691             02/01/06

Montserrat            38       Registered    532       GLOBALSTAR, L.P.      07/14/93             --                07/26/99
                                                                                                 1462               07/14/07

Morocco               38       Registered    759       GLOBALSTAR, L.P.      01/18/01            476                01/18/01
                                                                                                 76042              01/18/21

Netherlands           9        Registered    525       GLOBALSTAR, L.P.      11/11/99                               12/13/99
   Antilles                                                                                      21893              11/11/09

New Zealand           38       Registered    557       GLOBALSTAR, L.P.      10/28/99            601842             05/12/00
                                                                                                 601842             10/28/06

Nicaragua             38       Registered    385       GLOBALSTAR, L.P.      05/14/98            98-01839           02/05/01
                                                                                                 46,915 C.C.        02/05/11

Norway                38       Registered    307       GLOBALSTAR, L.P.      08/25/95            T955264            11/21/96
                                                                                                 178 116            11/21/06

Onan                  38       Pending       394       LORAL GENERAL         09/27/98            18742
                               Assignment               PARTNER, INC.
                               filed 1/15/03

Panama                38       Registered    383       GLOBALSTAR, L.P.      03/30/98            093270             04/01/98
                                                                             04/30/01            93270              04/01/08

Peru                  38       Registered    757       GLOBALSTAR, L.P.      11/21/00            118568             04/17/01
                                                                             02/18/01            25351              04/17/11

Philippines           38       Registered    056       GLOBALSTAR, L.P.      10/23/95            103605             08/08/01
                                                                             09/07/01            4-1995-105848      08/08/11

Portugal              38       Registered    756       GLOBALSTAR, L.P.      11/22/00            351,518            10/24/01
                               Registration                                  02/28/01            TBD                10/24/11
                               granted,
                               certificate
                               pending

Puerto Rico           38       Registered    526       GLOBALSTAR, L.P.      06/07/99            049789             08/22/02
                                                                             05/04/01            45,789             06/07/09

Qatar                 38       Pending       395       LORAL GENERAL         07/13/98            19019
                               Assignment               PARTNER, INC.
                               filed 1/13/03
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                             FILING DATE/       APPLN. NO./        REG. DATE
    COUNTRY           CLASS     STATUS        NO.           OWNER            ALLOWANCE DATE       REG. NO.        RENEWAL DATE
    -------           -----     ------        ---           -----            --------------       --------        ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
Russian               38       Registered    112       GLOBALSTAR, L.P.      09/08/95            95710003           12/13/96
   Federation                                                                                    95710003           09/08/05

Russian               35       Registered    627       GLOBALSTAR, L.P.      03/10/00            2000705241         04/02/02
   Federation                                                                05/25/02            RU 210366          03/10/10

Russian                9       Registered    625       GLOBALSTAR, L.P.      01/11/00            2000700479         11/09/01
   Federation                                                                01/12/02            RU206188           01/11/10

Saudi Arabia          38       Registered    057       GLOBALSTAR, L.P.      10/07/95            31223              10/20/95
                                                                                                 387/4              06/19/05

Singapore             38       Registered    302       GLOBALSTAR, L.P.      09/21/95            S/9015/95          09/21/95
                                                                                                 T95/09015E         09/21/05

South Africa          38       Registered    305       GLOBALSTAR, L.P.      08/24/95            9511130            08/24/95
                                                                                                 95/11130           08/24/05

Spain                 38       Registered    755       GLOBALSTAR, L.P.      11/23/00            2359857            10/22/01
                               C-86 Dresser                                  02/16/01            2359857            11/23/10
                               Wayne AB
                               GLOBALSTAR
                               (CTM)

St. Kitts-Nevis       38       Registered    533       GLOBALSTAR, L.P.      10/06/99            S4                 10/06/99
                                                                                                 S4 of 1999         10/06/13

St. Lucia             38       Registered    534       GLOBALSTAR, L.P.      07/15/93            N/A                07/15/93
                               Based on UK                                                       31 of 1999         07/15/10
                               registration

St. Vincent           38       Registered    535       GLOBALSTAR, L.P.                          72                 07/15/93
                               Based on UK                                                       1541776            07/15/10
                               1541776

Sweden                38       Registered    058       GLOBALSTAR, L.P.      11/19/93            9307907            02/25/94
                                                                                                 256004             02/25/04

Taiwan                 9       Registered    318       GLOBALSTAR, L.P.      02/12/97            86006907           10/01/98
                                                                                                 812764             10/01/08

Taiwan                38       Registered    310       GLOBALSTAR, L.P.      02/08/96            856618             10/16/97
                                                                                                 00094940           10/16/07

Trinidad &            38       Registered    527       GLOBALSTAR, L.P.      05/26/99            29513              05/26/99
   Tobago                                                                    07/05/00            29513              05/26/09

Turks & Caicos         9       Registered    547       GLOBALSTAR, L.P.      06/24/99            11,874             06/24/99
                                                                             11/20/99            11,874             06/24/13

Turks & Caicos        38       Unfiled       539       GLOBALSTAR, L.P.
                               No service
                               marks
                               available

Ukraine               38       Registered    311       GLOBALSTAR, L.P.      09/22/95            95092784/T         08/15/00
                                                                                                 UA 15240           09/22/05
</TABLE>

<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                             CASE                             FILING DATE/       APPLN. NO./        REG. DATE
     COUNTRY          CLASS     STATUS        NO.           OWNER            ALLOWANCE DATE       REG. NO.        RENEWAL DATE
     -------          -----     ------        ---           -----            --------------       --------        ------------
<S>                   <C>      <C>           <C>       <C>                   <C>                 <C>              <C>
United Arab           38       Registered    396       GLOBALSTAR, L.P.      07/13/98            27596              05/19/99
   Emirates                                                                                      20960              07/13/08
United Kingdom        38       Registered    062       GLOBALSTAR, L.P.      07/15/93            1541776            07/15/93
                                                                                                 1541776            07/15/10
United States         38       Suspended     447       GLOBALSTAR, L.P.      07/14/98            75/518, 872
                               Suspended
                               pending reg.
                               of prior GLP
                               US apps
Uruguay               38       Registered    752       GLOBALSTAR, L.P.      11/20/00            327.980            05/16/01
                                                                             12/29/00            327.980            05/16/11
Venezuela             38       Registered    087       GLOBALSTAR, L.P.      02/18/94            2083-94            01/05/96
                               C-36, 83                                                          2083-94            01/05/06
Yemen North           38       Registered    397       GLOBALSTAR, L.P.      07/05/98            12464              04/24/99
                                                                                                 9573               07/05/08
</TABLE>

Note: US applications/registrations cover: Guam, Panama Canal Zone, US Virgin
      Islands, Northern Marianna Islands French applications/registrations
      cover: Guadeloupe, Martinique, St. Barthelemy UK
      applications/registrations cover: Anguilla, Antigua & Barbuda, Dominica,
      Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent &
      Grenadines, British Virgin Islands

Prepared by: D. Ellwood

<PAGE>

GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                           CASE                          FILING DATE/     APPLN. NO./         REG. DATE
    COUNTRY         CLASS    STATUS         NO.            OWNER        ALLOWANCE DATE     REG. NO.          RENEWAL DATE
    -------         -----    ------         ---            -----        --------------     --------          ------------
<S>                 <C>    <C>             <C>     <C>                     <C>            <C>                  <C>
IT'S FOR YOU
Argentina           38     Registered      089     GLOBALSTAR, L.P.        02/02/95       1,959,531            12/15/95
                           Abandon at renewal                                             1,584,626            12/15/05
Australia           38     Registered      090     GLOBALSTAR, L.P.        01/20/95       651,236              05/09/97
                           Abandon at renewal                                             651,236              01/20/05
Brazil              38.10  Registered      091     GLOBALSTAR, L.P.        05/26/95       818547448            08/12/97
                           Abandon at renewal                                             547448               08/12/07
Canada              38     Registered      092     GLOBALSTAR, L.P.        01/16/95       773,110              12/20/96
                           Abandon at renewal                                             TMA467,958           12/20/11
France              38,9   Registered      094     GLOBALSTAR, L.P.        02/20/95       95,559,160           07/28/95
                           Abandon at renewal                                             95,559,160           02/20/05
Korea, Republic of  106    Registered      099     GLOBALSTAR, L.P.        01/14/95       95-258               11/29/96
                           Abandon at renewal                                             33702                11/29/06
Mexico              38     Registered      100     GLOBALSTAR, L.P.        01/27/95       222,828              05/28/96
                           Abandon at renewal                                             522,877              01/27/05
Russian Federation  38     Registered      102     GLOBALSTAR, L.P.        02/07/95       95701255             05/17/96
                           Abandon at renewal                                             14196                02/07/05
Saudi Arabia        38     Registered      103     GLOBALSTAR, L.P.        02/15/95       28427                04/17/96
                           Abandon at renewal                                             375/46               10/15/04
United Kingdom      38     Registered      106     GLOBALSTAR, L.P.        01/11/95       2,007,347            01/05/96
                           Abandon at renewal                                             2,007,347            01/11/05
Venezuela           38     Registered      107     GLOBALSTAR, L.P.        02/03/95       1,220                06/05/97
                           Abandon at renewal                                             Pending              06/05/07
</TABLE>

Note: US applications/registrations cover: Guam, Panama Canal Zone, US Virgin
      Islands, Northern Marianna Islands French applications/registrations
      cover: Guadeloupe, Martinique, St. Barthelemy UK
      applications/registrations cover: Anguilla, Antigua & Barbuda, Dominica,
      Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent &
      Grenadines, British Virgin Islands

Prepared by: D. Ellwood
<PAGE>
GLOBALSTAR L.P.

                       GLOBALSTAR TRADEMARK STATUS REPORT
                                  AS OF 4/2/03

<TABLE>
<CAPTION>
                                           CASE                          FILING DATE/     APPLN. NO./         REG. DATE
    COUNTRY         CLASS    STATUS         NO.            OWNER        ALLOWANCE DATE     REG. NO.          RENEWAL DATE
    -------         -----    ------         ---            -----        --------------     --------          ------------
<S>                 <C>    <C>             <C>     <C>                     <C>            <C>                  <C>
MISC. DESIGN
United States       38     Pending         678     GLOBALSTAR, L.P.        08/26/00       76/122,102
                           Extension to                                    05/21/02
                           5/21/03
</TABLE>

Note: US applications/registrations cover: Guam, Panama Canal Zone, US Virgin
      Islands, Northern Marianna Islands French applications/registrations
      cover: Guadeloupe, Martinique, St. Barthelemy UK
      applications/registrations cover: Anguilla, Antigua & Barbuda, Dominica,
      Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent &
      Grenadines, British Virgin Islands

Prepared by: D. Ellwood
<PAGE>

                                  SCHEDULE 4.7
                               PLEDGED COLLATERAL

Please refer to Attachment 1 to Schedule 4.3 Subsidiaries of Borrower.
<PAGE>
                                   EXHIBIT A-1

                                     FORM OF
                                 TERM LOAN NOTE

U.S. $__________                                        Dated: [_________], 2003

                  FOR VALUE RECEIVED, the undersigned, GLOBALSTAR, L.P. (the
"Borrower"), HEREBY PROMISES TO PAY to the order of ICO Investment Corp. (the
"Lender") the principal sum of [_____________] United States Dollars
($[_________]), or if less, the unpaid principal amount of the Loans (as defined
in the Agreement referred to below) of the Lender to the Borrower pursuant to
the Term Loan Commitment (as defined in the Agreement referred to below),
payable at such times, and in such amounts, as are specified in the Agreement.

                  The Borrower promises to pay interest on the unpaid principal
amount hereof from the date when made until such principal amount is paid in
full, at such interest rates, and payable at such times, as are specified in the
Agreement. The date and amount of each Term Loan made by the Lender pursuant to
the Term Loan Commitment and each payment made on account of the principal
thereof shall be recorded on Annex A hereto.

                  Both principal and interest are payable in lawful money of the
United States of America to the Lender in immediately available funds.

                  This Note is one of the Term Loan Notes referred to in, and is
entitled to the benefits of, the Secured Super-Priority Debtor in Possession
Credit Agreement, dated as of May __, 2003 (as it may be amended or otherwise
modified from time to time, the "Agreement"), among the Borrower, the
Subsidiaries (as defined therein) of the Borrower listed on the signature pages
thereto as Guarantors (as defined therein) and the Lender, and the other Loan
Documents referred to therein and entered into pursuant thereto. The Agreement,
among other things, (i) provides for the Term Loans of the Lender in an amount
not to exceed the United States Dollar amount first above mentioned, the
Indebtedness (as defined in the Agreement) of the Borrower resulting from such
Term Loans being evidenced by this Note and (ii) contains provisions for
acceleration of the maturity of the unpaid principal amount of this Note upon
the happening of certain stated events and also for prepayments on account of
the principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

                  This Note is secured as provided in the Agreement.

                  Except as otherwise provided for in the Agreement and
applicable law, the Borrower waives presentment, demand and protest and notice
of presentment, protest, default, nonpayment, maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts,
contracts rights, documents, instruments, chattel paper and guaranties at any
time held by the Lender on which the Borrower may in any way be liable and
hereby ratify and confirm whatever the Lender may do in this regard.

                                     Ex.A-1

<PAGE>

                  This Note shall be governed by, and construed and interpreted
in accordance with, the law of the State of New York.

                                              GLOBALSTAR, L.P.,
                                              a Debtor and Debtor in Possession

                                              By: ____________________________
                                                  Name:   Anthony J. Navarra
                                                  Title:  President

                                     Ex.A-2

<PAGE>

                                                                         ANNEX A

<TABLE>
<CAPTION>
                                                    Amount of Principal
Date                     Amount of Loan               Paid or Prepaid             Notation Made by
----                     --------------             --------------------          ----------------
<S>                      <C>                        <C>                           <C>

</TABLE>

                                     Ex.A-3

<PAGE>

                                   EXHIBIT A-2

                                     FORM OF

                                PIK INTEREST NOTE

                                                        Dated: [_________], 2003

                  FOR VALUE RECEIVED, the undersigned, GLOBALSTAR, L.P. (the
"Borrower"), HEREBY PROMISE TO PAY to the order of ICO Investment Corp. (the
"Lender") the principal amount equal to the amount of accrued interest on the
Loans (as defined in the Agreement referred to below) capitalized in accordance
with Section 2.5(b) of the Agreement and evidenced by this Note. The Lender is
hereby authorized to endorse on Annex A hereto the amounts of interest
capitalized in accordance with Section 2.5(b) of the Agreement. Any such
endorsement shall be conclusive and binding in the absence of manifest error.

                  Interest on the unpaid principal amount hereof shall be
capitalized pursuant to Section 2.5(b) of the Agreement until such principal
amount is paid in full, at such interest rates, and payable at such times, as
are specified in the Agreement

                  Payments hereunder shall be in lawful money of the United
States of America to the Lender in immediately available funds.

                  This Note is the PIK Interest Note referred to in, and is
entitled to the benefits of, the Secured Super-Priority Debtor in Possession
Credit Agreement, dated as of May 19, 2003 (as it may be amended or otherwise
modified from time to time, the "Agreement"), among the Borrower, the
Subsidiaries (as defined therein) of the Borrower listed on the signature pages
thereto as Guarantors (as defined therein) and the Lender, and the other Loan
Documents referred to therein and entered into pursuant thereto. The Agreement,
among other things, (i) provides for the aggregate Indebtedness of the Borrower
to the Lender resulting from the capitalization of accrued interest payable on
the Loans being evidenced by this Note and (ii) contains provisions for
acceleration of the maturity of the unpaid principal amount of this Note upon
the happening of certain stated events and also for prepayments on account of
the principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

                  This Note is secured as provided in the Agreement.

                  Except as otherwise provided for in the Agreement and
applicable law, the Borrower waives presentment, demand and protest and notice
of presentment, protest, default, nonpayment, maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts,
contracts rights, documents, instruments, chattel paper and guaranties at any
time held by the Lender on which the Borrower may in any way be liable and
hereby ratify and confirm whatever the Lender may do in this regard.

                   This Note shall be governed by, and construed and interpreted
in accordance with, the law of the State of New York.

                                     Ex.A-4

<PAGE>

                                             GLOBALSTAR, L.P.,
                                             a Debtor and Debtor in Possession

                                             By: ____________________________
                                                   Name: Anthony J.  Navarra
                                                   Title:   President

                                     Ex.A-5

<PAGE>

                                                                         ANNEX A

<TABLE>
<CAPTION>
                         Amount of Interest
Date                     Capitalized                      Notation Made by
-------------            --------------------             ----------------
<S>                      <C>                              <C>

</TABLE>

<PAGE>

                                    EXHIBIT B

                             FORM OF APPROVED BUDGET

ICO GLOBAL COMMUNICATIONS
GLOBALSTAR INTERIM DIP BUDGET
MAY 1, 2003 - DECEMBER 31, 2003

<TABLE>
<CAPTION>
                                                                                                                      EIGHT MONTHS
                                MAY-03    JUN-03      JUL-03     AUG-03     SEP-03     OCT-03     NOV-03     DEC-03   MAY-DEC 2003
                                ------    ------      ------     ------     ------     ------     ------     ------   ------------
<S>                            <C>         <C>        <C>        <C>        <C>        <C>        <C>        <C>      <C>
OPERATIONS                      5,160      5,444      4,492      4,333      4,813      4,421      4,098      6,680      39,442

RESTRUCTURING                   1,282        595        350        100        100        100        100      2,750       5,377

RETIREMENT OF DIP 1            10,384         --         --         --         --         --         --         --      10,384

ONE-TIME ALLOWABLE VARIANCE       200         --         --         --         --         --         --         --         200
                               ------      -----      -----      -----      -----      -----      -----      -----      ------
TOTAL                          17,026      6,039      4,842      4,433      4,913      4,521      4,198      9,430      55,403
                               ======      =====      =====      =====      =====      =====      =====      =====      ======
</TABLE>

Note 1 - Does not include dealer commissions or revenue split
Note 2 - Does not include cost of equipment

                                     Ex.B-1

<PAGE>
                                    EXHIBIT C

                                     FORM OF

                                 FINANCING ORDER

                                                                       EXHIBIT C

                      IN THE UNITED STATES BANKRUPTCY COURT
                          FOR THE DISTRICT OF DELAWARE

IN RE:                                      ) CHAPTER 11
                                            )
GLOBALSTAR CAPITAL CORPORATION, ET AL.,(1)  ) CASE NO. 02-10499 (PJW)
                                            )
                                   DEBTORS. ) JOINTLY ADMINISTERED
                                            )
                                            ) HEARING DATE MAY 20, 2003 AT
                                            ) 4:00 P.M.

                   NOTICE OF FILING OF PROPOSED FORM OF ORDER

TO:      THE OFFICE OF THE UNITED STATES TRUSTEE FOR THE DISTRICT OF DELAWARE,
         THE OFFICIAL COMMITTEES IN THESE CHAPTER 11 CASES, AND ALL
         PARTIES-IN-INTEREST INCLUDING THOSE HAVING FILED REQUESTS FOR NOTICE
         PURSUANT TO BANKRUPTCY RULE 2002.

         PLEASE TAKE NOTICE that the above-captioned debtors and debtors in
possession (collectively the "Debtors") have filed a proposed form of order (the
"Order") with respect to the Motion of the Debtors and Debtors in Possession for
an Order Authorizing a Secured Postpetition Financing Agreement [Docket No. 884]
(the "Motion"). A copy of the Order is annexed hereto as Exhibit A.

----------
(1) The following affiliates of Globalstar Capital Corporation have filed
voluntary petitions for relief, and their cases are being jointly administered
in these proceedings: Globalstar L.L.C., Globalstar Services Company, Inc., and
Globalstar L.P.

<PAGE>

         PLEASE TAKE NOTICE that a hearing on the Motion will be held on May 20,
2003 at 4:00 p.m. before The Honorable Peter J. Walsh, United States Bankruptcy
Court for the District of Delaware, 824 Market Street, 6th Floor, Wilmington,
Delaware 19801.

Dated:  Wilmington, Delaware
        May 16,2003

                                            JONES DAY

                                            Paul D. Leake
                                            Scott J. Friedman
                                            222 East 41st Street
                                            New York, NY  10017-6030
                                            Telephone:  (212) 326-3939
                                            Fax: (212) 755-7306

                                            -and-

                                            YOUNG CONAWAY STARGATT & TAYLOR, LLP

                                            /s/
                                            ------------------------------------
                                            Brendan Linehan Shannon (No. 3136)
                                            M. Blake Cleary (No. 3614)
                                            Matthew B. Lunn (No. 4119)
                                            1000 West Street, 17th Floor
                                            P.O. Box 391
                                            Wilmington, DE  19899
                                            Telephone:  (302) 571-6600
                                            Fax:  (302) 571-1253
                                            Co-Counsel for the Debtors and
                                            Debtors in Possession

<PAGE>

                                                          Exhibit A to Exhibit C

                      IN THE UNITED STATES BANKRUPTCY COURT

                          FOR THE DISTRICT OF DELAWARE

In re:                                          )     Chapter 11
                                                )
Globalstar Capital Corporation, et al., (1)     )     Case No. 02-10499 (PJW)
                                                )
                                    Debtors.    )     Jointly Administered
                                                )
                                                )     REF. DOCKET NO. 884

          FINAL ORDER PURSUANT TO SECTION 364(c) OF THE BANKRUPTCY CODE
                  AND BANKRUPTCY RULE 4001 AUTHORIZING DEBTORS
                    TO OBTAIN SECURED POSTPETITION FINANCING

                  A hearing having been held on May 20, 2003 (the "Hearing") to
consider the motion, dated May 2, 2003 (the "Motion"), of Globalstar, L.P.
("Globalstar"), Globalstar Capital Corporation, Globalstar Services Company,
Inc. and Globalstar L.L.C., as debtors and debtors in possession (collectively,
the "Debtors"), seeking an order approving pursuant to section 364(c) of title
11, United States Code (the "Bankruptcy Code"), and Fed. R. Bankr. P. 4001(c),
that certain Secured Super-Priority Debtor in Possession Credit Agreement, by
and among Globalstar, as borrower, the other Debtors, as guarantors, and ICO
Investment Corp. (the "Lender") (as the same may be amended, supplemented or
otherwise modified from time to time, the "DIP Facility"),2 and authorizing the
Debtors to obtain under the DIP Facility postpetition loans up to an aggregate
principal amount of $35,000,000 (1) secured pursuant to sections 364(c)(2) and
364(c)(3) of the Bankruptcy Code by (a) first priority liens on all of the
Debtors' unencumbered assets and a junior lien on any of the Debtors' assets
encumbered by Permitted Liens (which

--------------------

(1)  The following affiliates of Globalstar Capital Corporation have filed
     voluntary petitions for relief and their cases are being jointly
     administered in these proceedings: Globalstar, LLC, G1obalstar Services
     Company, Inc. and Globalstar, L.P.

(2)  Capitalized terms used herein and not otherwise defined herein shall have
     the meanings ascribed thereto in the DIP Facility.

<PAGE>

Collateral expressly excludes the (i) Wind-Down Funds, (ii) Avoidance Actions
and all monies and other property of any kind received therefrom or recovered in
connection therewith, and (iii) FCC licenses (clauses (i), (ii) and (iii),
collectively, the "Excluded Assets") and also excludes the $250,000 of cash
collateral of the Borrower that will be subject to the Commitment Fee Lien (as
defined in the Motion)), in each case, in which a lien may be legally granted;
(b) a pledge of the equity interest in the outstanding capital stock of L/Q
Licensee, Inc.; and (c) all proceeds of sale of all FCC licenses held by the
Debtors (collectively, the "Collateral"), in the case of each of the foregoing
clauses (a), (b), and (c) subject and subordinate to Permitted Liens, and (2)
entitled to administrative expense priority with priority over all other
administrative expenses pursuant to section 364(c)(1) of the Bankruptcy Code but
subject and subordinate to the Wind Down Costs as provided in paragraph 7
hereof, and the Court having considered the Motion and the Exhibits thereto, the
DIP Facility and the Schedules and Exhibits thereto; and the appearances of all
interested parties having been noted in the record of the Hearing; and upon the
Motion, papers in support thereof, the record of the Hearing; and after due
deliberation and sufficient cause appearing therefor, it is

         HEREBY FOUND AND DETERMINED:

         A.       This Court has jurisdiction over this proceeding and the
parties in interest and properties and interests in properties affected by the
Motion pursuant to 28 U.S.C. Sections 157 and 1334. Consideration of this Motion
is a core proceeding under 28 US.C. Sections 157(b). Venue of this proceeding is
proper in this district pursuant to 28 U.S.C. Sections 1408 and 1409.

         B.       Good and sufficient notice of the Hearing to consider entry of
this Order (including service of a copy of the Motion and the Exhibits thereto)
has been given. Such notice is sufficient for all purposes under the Bankruptcy
Code, including, without limitation, sections 102(1), 363 and 364 of the
Bankruptcy Code and the applicable Federal Rules of Bankruptcy

                                       2

<PAGE>

Procedure, including, without limitation, Fed. R. Bankr. P. 2002, 4001(c) and
6004 in respect of the relief requested in the Motion.

         C.       On February 15, 2002, each of the Debtors filed with this
Court a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
The Debtors remain in possession of their assets and are authorized to continue
the operation and management of their businesses as debtors in possession
pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.

         D.       On April 25, 2003, the Court approved an investment
transaction with ICO Global Communications (Holdings) Limited ("ICO").

         E.       Absent additional postpetition financing, the Debtors do not
have sufficient liquidity to fund their business operations through consummation
of the ICO Transaction.

         F.       The Debtors cannot obtain postpetition unsecured credit solely
under section 503(b)(1) of the Bankruptcy Code as an administrative expense. New
credit is unavailable to the Debtors without securing such new credit and other
obligations with liens on and security interests in all property and interests
in the Collateral, subject and subordinate to the Permitted Liens and providing
such credit with super-priority administrative expense (subject and subordinate
to Wind Down Costs). The Debtors cannot obtain postpetition financing on terms
more favorable to the Debtors than the financing made available under the DIP
Facility.

         G.       Absent the DIP Facility, the Debtors and their estates would
be unable to fund their business operations through consummation of the ICO
Transaction and consequently, would suffer irreparable harm. The availability of
funding under the DIP Facility to finance the Debtors' business operations is in
the best interests of the Debtors and their respective creditors and estates
because it enables the Debtors to pursue consummation of the ICO Transaction

                                       3

<PAGE>

without significantly increasing the risk of administrative insolvency (as a
result of the Lender's agreement to the carve-outs from the lien and priority
granted hereunder).

         H.       The DIP Facility and the transactions contemplated thereby,
including, without limitation, the use of loan proceeds for the purposes set
forth therein and on the attached Schedules and Exhibits, have no intended
effect that is improper under the Bankruptcy Code. The DIP Facility has been
negotiated in good faith and at arm's length between the Debtors and the Lender,
with the consent and support of the Committee, and any credit extended and loans
made to, or for the benefit of, any of the Debtors by the Lender, including,
without limitation, the Loans, shall be deemed to have been extended and made in
good faith within the meaning of section 364(e) of the Bankruptcy Code and
therefore entitled to the protections of section 364(e) of the Bankruptcy Code.

         I.       The terms of the DIP Facility are fair, reasonable and
adequate under the circumstances.

         J.       The relief requested in the Motion, including approval of the
Loans on a final basis, is in the best interests of the Debtors and their
respective creditors and estates, and is necessary to the continued operations
and successful reorganization of the Debtors.

         For all of the foregoing findings of fact, and after due deliberation
and sufficient cause appearing therefor, the Court ORDERS, ADJUDGES AND DECREES
THAT:

         1.       The Motion is granted.

         2.       The DIP Facility, annexed hereto as Exhibit A, and each of the
other Loan Documents, the Waiver and Consent, and the Escrow Agreement (each as
defined in the Motion) are authorized and approved and the Debtors are (a)
authorized to execute, if not previously executed, and deliver to the Lender
each of the Loan Documents including, without limitation, the DIP Facility, and
authorized to execute, if not previously executed, and deliver to the

                                       4

<PAGE>

administrative agent under the Existing DIP Facility, the Waiver and Consent and
the Escrow Agreement thereunder and (b) authorized to comply with their
respective obligations under each of the Loan Documents and such Waiver and
Consent and the Escrow Agreement. Each of the Debtors is authorized to effect
all actions, to execute and deliver all agreements, instruments, and documents
and to pay all present and future fees, costs, expenses, and taxes which may be
required, necessary, or appropriate for the complete performance of its Loan
Obligations under the DIP Facility and each of the other Loan Documents,
including the Notes. The Debtors are authorized to cooperate and comply with any
reasonable requests as made by the Lender under the terms of the DIP Facility.

         3.       All amounts provided for in the DIP Facility (up to an
aggregate amount of $35,000,000) are to be available for the purposes provided
in the DIP Facility, which purposes are not be improper under the Bankruptcy
Code. The proceeds of the Loans shall be used solely as provided in the DIP
Facility.

         4.       The DIP Facility and each of the Loan Documents, respectively,
shall constitute and evidence the valid and binding Obligations of each of the
Debtors, which obligations shall be enforceable against each of the Debtors in
accordance with their terms and the terms of this Order.

         5.       Except with respect to the pledge of the equity interest in
outstanding capital stock of L/Q Licensee, Inc., the pledges of, liens on, and
security interests in, the Collateral (which expressly excludes the Excluded
Assets and the $250,000 of cash collateral of the Borrower that will be subject
to the Commitment Fee Lien (as defined in the Motion)) granted by the Debtors as
security for their obligations under the Loan Documents are approved in all
respects. The Collateral does not include the Avoidance Actions.

                                       5

<PAGE>

         6.       The Debtors agree that no cost or expense which is incurred by
the Debtors in connection with or on account of the preservation or disposition
of any Collateral or which otherwise could be chargeable to the Lender or the
Collateral pursuant to section 506(c) of the Bankruptcy Code or otherwise, shall
be chargeable to Lender or the Collateral without the consent of the Lender
absent prior authorization from the Court.

         7.       As security for the full and complete repayment, performance
and satisfaction of the Debtors' Loan obligations arising under the DIP
Facility, the Lender is hereby granted, effective immediately and without the
necessity of the execution by the Debtors or the Lender, or filing or
recordation by any party, of financing statements, mortgages, security
agreements, or otherwise, pursuant to sections 364(c)(2) and 364(c)(3) of the
Bankruptcy Code, first priority perfected liens on and security interests in all
of the Collateral (which expressly excludes the Excluded Assets and the $250,000
of cash collateral of the Borrower that will be subject to the Commitment Fee
Lien (as defined in the Motion)), subject and subordinate to Permitted Liens and
subject to the repayment of the Loans and the payment of the Commitment Fee (as
defined in the Existing DIP Facility) under the Existing DIP Facility.
Notwithstanding the foregoing sentence, the Lender may, in its sole discretion,
file or cause the Debtors to file at the sole expense of the Debtors, such
financing statements, mortgages, notices of liens, or similar documents or
instruments or otherwise confirm perfection of such liens, security interests,
and mortgages as the Lender may require, and the automatic stay imposed under
section 362 of the Bankruptcy Code shall be deemed modified for such purposes,
and all such financing statements, mortgages, notices of liens, or similar
documents or instruments shall be deemed to have been filed or recorded at the
time and on the date of entry of this Order. In addition, the Obligations under
the DIP Facility are entitled, pursuant to section 364(c)(1) of the Bankruptcy
Code to administrative priority with priority over all other administrative
expenses, including chapter 7

                                       6

<PAGE>

administrative expenses, which super-priority administrative claims (i) shall be
subordinated to the Wind-Down Costs only to the extent of the Wind Down Funds
and (ii) shall not be paid from the Avoidance Actions or any monies or other
property of any kind received therefrom or recovered in connection therewith.

         8.       The security interests in and liens on the Collateral granted
to the Lender hereunder shall not be, in right of payment or priority,
subordinated to, or pari passu with, any security interest or lien granted
pursuant to section 364(c), 364(d), 546(c) of the Bankruptcy Code, or otherwise,
other than Permitted Liens and the Commitment Fee Lien.

         9.       The Debtors are (a) authorized to execute and deliver to the
Lender any and all nonmaterial amendments to the DIP Facility as approved by the
Lender and the Debtors, without further order of the Court, and (b) authorized
to comply with their respective obligations under any such amendment or
amendments.

         10.      Subject to the provisions of the DIP Facility, the automatic
stay provisions of section 362 of the Bankruptcy Code are modified to the extent
necessary to permit the Lender to exercise, upon the occurrence of an Event of
Default, and the giving of written notice thereof, all rights and remedies
provided for in the DIP Facility and this Order; provided that such remedies may
not be exercised until expiration of the Standstill Period as provided in the
DIP Facility. The Standstill Period starts upon the delivery of the Lender's
written notice of termination and acceleration.

         11.      The provisions of this Order shall be binding upon and inure
to the benefit of the Lender, the Debtors, and their respective successors and
assigns including, without limitation, any trustee hereinafter appointed for any
of the estates of any of the Debtors.

         12.      If any or all of the provisions of this Order or the DIP
Facility are hereafter reversed, modified, vacated, or stayed by subsequent
order of this Court or by any other

                                       7

<PAGE>

court, such reversal, modification, vacatur, or stay shall not affect the
validity of any obligation to the Lender that is or was incurred by any of the
Debtors pursuant to this Order and that is or was incurred prior to the
effective date of such reversal, modification, vacatur, or stay, and shall not
affect the validity and enforceability of any security interest, lien, or
priority authorized, created, or granted by this Order or the DIP Facility, and
notwithstanding such reversal, modification, vacatur, or stay, any obligations
of the Debtors pursuant to this Order or the DIP Facility arising prior to the
effective date of such reversal, modification, vacatur, or stay shall be
governed in all respects by the provisions of this Order and the DIP Facility,
and the validity of any such obligation incurred, or security interest or lien
authorized, shall be entitled to the protection accorded by section 364(e) of
the Bankruptcy Code.

         13.      The failure of the Lender to seek relief or otherwise exercise
their rights and remedies under the DIP Facility or this Order shall not
constitute a waiver of any of the rights of the Lender hereunder, thereunder, or
otherwise.

         14.      In the event of any inconsistency between the terms and
conditions of (i) the DIP Facility, any Loan Document, or any order of this
Court entered prior to or on the date hereof, and (ii) this Order, the
provisions of the DIP Facility shall govern and control.

         15.      The DIP Facility and this Order are binding upon the parties
to the DIP Facility and their respective successors and assigns.

         16.      To the extent any of the foregoing findings of fact constitute
conclusions of law, they are adopted as such. To the extent any of the foregoing
conclusions of law constitute findings of fact, they are adopted as such.

         17.      The Debtors are hereby authorized to pay up to $10,000 to LQP
to reimburse LQP for its reasonable fees and expenses incurred in connection
with the LQP Pledge.

Dated:   Wilmington, Delaware
         May ___, 2003

                              ____________________________________
                              The Honorable Peter J. Walsh
                              Chief United States Bankruptcy Judge

                                       8
<PAGE>

                                    EXHIBIT D

                                     FORM OF

                               NOTICE OF BORROWING

ICO Investment Corp.
4 Orinda Way, Suite B240
Orinda, CA 94563
Attention:  Craig Jorgens

                  [Date]

                  Ladies and Gentlemen:

                  The undersigned, GLOBALSTAR, L.P. (the "Borrower"), refers to
the Secured Super-Priority Debtor in Possession Credit Agreement, dated as of
May 19, 2003, among the Borrower, the Subsidiaries (as defined therein) of the
Borrower listed on the signature pages thereto as Guarantors (as defined
therein) and the Lender (as it may be amended or otherwise modified from time to
time, the "Agreement"; and capitalized terms not defined herein but defined
therein being used herein as therein defined), and hereby gives you notice,
irrevocably, pursuant to Section 2.2 of the Agreement that the undersigned
hereby request a Borrowing under the Agreement, and in that connection sets
forth below the information relating to such Borrowing (the "Proposed
Borrowing") as required by Section 2.2 of the Agreement:

                  (i) The Business Day of the Proposed Borrowing is _________,
200__.

                  (ii) The aggregate amount of the Loans constituting the
Proposed Borrowing is $____________________.

                  (iii) The Permitted Expenditures to be paid with the proceeds
of the Proposed Borrowing are _______________________.

                  The undersigned hereby certifies that the following statements
are true on the date hereof, and will be true on the date of the Proposed
Borrowing, before and after giving effect thereto and to the application of the
proceeds therefrom:

                  (A) the representations and warranties contained in the
Agreement and in each of the other Loan Documents are true and correct as though
made on and as of such date, other than any such representations and warranties
that, by their terms, refer to an earlier date;

                  (B) no Default or Event of Default will result from the
Proposed Borrowing;

                                     Ex.D-1

<PAGE>

                  (C) The making of the Loans on the date of the Proposed
Borrowing shall not violate any Requirement of Law and is not subject to any
stay or injunction, whether temporary, preliminary or permanent; and

                  (D) No Lender Termination Event shall have occurred and be
continuing.

           [Remainder of this page has been left intentionally blank.]

                                     Ex.D-2

<PAGE>

                  Very truly yours,

                  GLOBALSTAR, L.P.,
                  as Borrower

                  By:
                       ------------------------------
                        Name:
                        Title:

                                     Ex.D-3

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      PAGE
<S>                                                                                                   <C>
ARTICLE I    DEFINITIONS AND ACCOUNTING TERMS.......................................................    2

         Section 1.1           Defined Terms........................................................    2
         Section 1.2           Computation of Time Periods..........................................   13
         Section 1.3           Accounting Terms.....................................................   13
         Section 1.4           Certain Terms........................................................   13

ARTICLE II   AMOUNTS AND TERMS OF THE LOANS.........................................................   14

         Section 2.1           The Term Loans.......................................................   14
         Section 2.2           Making the Loans.....................................................   14
         Section 2.3           Repayment............................................................   14
         Section 2.4           Prepayments..........................................................   14
         Section 2.5           Interest.............................................................   14
         Section 2.6           Payments and Computations............................................   15
         Section 2.7           Application of Payments..............................................   15
         Section 2.8           Taxes................................................................   15

ARTICLE III  CONDITIONS OF LENDING..................................................................   16

         Section 3.1           Conditions Precedent to Initial Loans under Term Loan  Commitment....   16
         Section 3.2           Conditions Precedent to Each Loan....................................   17
         Section 3.3           Other Conditions Precedent...........................................   17

ARTICLE IV   REPRESENTATIONS AND WARRANTIES.........................................................   18

         Section 4.1           Corporate Existence; Compliance with Law.............................   19
         Section 4.2           Corporate Power; Authorization; Enforceable Obligations..............   19
         Section 4.3           Ownership of Subsidiaries............................................   20
         Section 4.4           Secured, Super Priority Obligations..................................   20
         Section 4.5           Use of Proceeds......................................................   21
         Section 4.6           Intellectual Property................................................   21
         Section 4.7           Pledged Collateral...................................................   22

ARTICLE V    AFFIRMATIVE COVENANTS..................................................................   22

         Section 5.1           Compliance with Laws, Etc............................................   22
         Section 5.2           Maintenance of Existence.............................................   23
</TABLE>

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>
                                                                                                      PAGE
<S>                                                                                                   <C>
         Section 5.3           Access...............................................................   23
         Section 5.4           Keeping of Books.....................................................   23
         Section 5.5           Use of Proceeds......................................................   23
         Section 5.6           Further Assurances...................................................   23
         Section 5.7           Secured Indebtedness.................................................   23

ARTICLE VI   NEGATIVE COVENANTS.....................................................................   23

         Section 6.1           Liens, Etc...........................................................   24
         Section 6.2           Indebtedness.........................................................   24
         Section 6.3           Mergers, Sale of Assets. Etc.........................................   24
         Section 6.4           Investments..........................................................   25
         Section 6.5           Restricted Payments..................................................   25
         Section 6.6           Transactions With Affiliates.........................................   25
         Section 6.7           Permitted Expenditures...............................................   25
         Section 6.8           Amendment of Charter or Bylaws.......................................   25

ARTICLE VII  TERMINATION............................................................................   26

         Section 7.1           Termination; Acceleration............................................   26
         Section 7.2           Standstill Period; Exercise of Remedies..............................   26
         Section 7.3           Intentionally Omitted................................................   26
         Section 7.4           Borrower Termination Event...........................................   26
         Section 7.5           Other Termination....................................................   26

ARTICLE VIII GUARANTY...............................................................................   27

         Section 8.1           The Guaranty.........................................................   27
         Section 8.2           Nature of Liability..................................................   27
         Section 8.3           Independent Obligation...............................................   27
         Section 8.4           Authorization........................................................   27
         Section 8.5           Reliance.............................................................   28
         Section 8.6           Subordination........................................................   28
         Section 8.7           Waiver...............................................................   29

ARTICLE IX   SECURITY...............................................................................   29

         Section 9.1           Security.............................................................   29
</TABLE>

                                      -2-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>
                                                                                                      PAGE
<S>                                                                                                   <C>
         Section 9.2           Perfection of Security Interests.....................................   31
         Section 9.3           Rights of Lender; Limitations on Lender's Obligations................   31
         Section 9.4           Covenants of the Grantors with Respect to Collateral.................   32
         Section 9.5           Performance by Lender of the Grantors' Obligations...................   35
         Section 9.6           Limitation on Lender's Duty in Respect of Collateral.................   36
         Section 9.7           Remedies, Rights Upon Lender Termination Event.......................   36
         Section 9.8           The Lender's Appointment as Attorney-in-Fact.........................   39
         Section 9.9           Right and Authority of Receiver or Lender in Event of Default........   41
         Section 9.10          FCC-Related Requirements of Law......................................   41

ARTICLE X    MISCELLANEOUS..........................................................................   41

         Section 10.1          Amendments, Etc......................................................   41
         Section 10.2          Notices, Etc.........................................................   42
         Section 10.3          No Waiver; Remedies..................................................   43
         Section 10.4          Costs; Expenses; Indemnities.........................................   43
         Section 10.5          Right of Set-off.....................................................   43
         Section 10.6          Binding Effect.......................................................   43
         Section 10.7          Governing Law........................................................   44
         Section 10.8          Section Titles.......................................................   44
         Section 10.9          Execution in Counterparts............................................   44
         Section 10.10         Entire Agreement.....................................................   44
         Section 10.11         Confidentiality......................................................   44
         Section 10.12         Jurisdiction.........................................................   44
         Section 10.13         Waiver of Jury Trial.................................................   44
         Section 10.14         Non-Assignment.......................................................   45
         Section 10.15         Severability.........................................................   45
         Section 10.16         Lender Status........................................................   45
</TABLE>

                                      -3-

<PAGE>

SCHEDULES

Schedule 1        - FCC Licenses
Schedule 4.1      - Corporate Existence; Compliance with Law
Schedule 4.2      - Corporate Power; Authorization; Enforceable Obligation
Schedule 4.3      - Ownership of Subsidiaries
Schedule 4.6      - Intellectual Property
Schedule 4.7      - Pledge Collateral

EXHIBITS

Exhibit A-1       - Form of Term Loan Note
Exhibit A-3       - Form of Term PIK Interest Note
Exhibit B         - Form of Approved Budget
Exhibit C         - Form of Financing Order
Exhibit D         - Form of Notice of Borrowing

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