Document:

Exhibit 10.5

 

LOAN AGREEMENT

 

Loan
Agreement dated as of 25 June 2009, between Globalstar, Inc., a
Delaware corporation (the “Borrower”),
and Thermo Funding Company LLC, a Colorado limited liability company (the “Lender”).

 

Recitals:

 

1.                                       The Borrower is
party to the COFACE Facility Agreement dated 5 June 2009 (the “COFACE
Agreement”), between, among others, the Borrower, BNP Paribas
as the Security Agent and the COFACE Agent (“Paribas”) and the
lenders thereunder, pursuant to which the Borrower will borrow up to
$586,342,000.

 

2.                                       It is a
condition precedent to any borrowings under the COFACE Agreement that the
Borrower establish an account with Paribas under the Accounts Agreement (as
defined in the COFACE Agreement) entitled the Debt Service Reserve Account (the
“DSRA”) with an initial 
balance of $46,773,000 million in cash and guarantee obligations.

 

3.                                       Thales Alenia
Space France (“Thales”) has entered into a
Guarantee dated as of 5 June 2009 (the “Guarantee”), pursuant to
which, under certain circumstances, Thales will pay up to $12.5 million to the
Borrower for deposit in the DSRA.

 

4.                                       To induce
Thales to enter into the Guarantee, the Lender has entered into a Reimbursement
Agreement dated 5 June 2009 (the “Reimbursement Agreement”), with
Thales.

 

5.                                       The Lender has
entered into a Cash Contribution Agreement with Arianespace   dated on or about the date hereof and with
Hughes Network Systems LLC (“Hughes”) dated 17 June 2009
(together the “Contribution Agreements”), pursuant to
which the Lender may borrow up to $10 million from each of Arianespace and
Hughes.

 

6.                                       The Lender has
agreed to lend an additional $5 million to Borrower to complete the funding of
the DSRA.

 

The Borrower and the Lender
hereby agree as follows:

 

1.                                       Loans.

 

a.                                                                                       On the date
hereof, (i) the Lender is borrowing, in aggregate, $20,000,000 from
Arianespace and Hughes pursuant to the Contribution Agreements and (ii) the
Borrower is borrowing an additional $5 million directly from Lender.

 

b.                                                                                      On the date
hereof, the Lender has directed Arianespace and Hughes to advance such funds
directly to the Borrower for deposit in the DSRA and the Lender has deposited
$5 million in the DSRA.  Such funds shall
be deemed to be a loan by the Lender to the Borrower.

 

1

 

c.                                                                                       If at any time
Thales makes any payment to the Borrower pursuant to the Guarantee, the amount
of such payment shall be deemed to be an additional loan from the Lender to the
Borrower.

 

d.                                                                                      Any loans made
or deemed to be made by the Lender to the Borrower pursuant to 1(b) or
1(c), together with all accrued and unpaid interest capitalized pursuant to
2(b), are referred to in this Agreement as the “Loans.”

 

e.                                                                                       The Loans shall
not be evidenced by a note.

 

2.                                       Interest.

 

a.                                                                                       Interest on the
outstanding principal amount of the Loans shall accrue at the rate of 12% per
annum, payable monthly in arrears on the last day of each month.

 

b.                                                                                      Interest
accruing on the Loans as provided in 2(a) shall not be payable in cash but
shall be capitalized and added to the outstanding principal amount of the
Loans.

 

3.                                       Payments.

 

a.                                                                                       The Borrower
shall make cash payments to the Lender with respect to the Loans when and as
permitted by Clauses 5.2(b)(i) or 9.3(b) of the Accounts Agreement or
Clause 7.3(a) or 7.4(a) of the COFACE Agreement.

 

b.                                                                                      The Loans shall
become immediately due and payable in full upon:

 

(i)                                     any Borrower
Change in Control (as defined in the COFACE Agreement) or

 

(ii)                                  any
acceleration of the maturity of the loans under the COFACE Agreement,

 

provided that the Lender
will not take any action to recover any sum due in accordance with this clause
3b. unless permitted by and in accordance with the Subordination Deed.

 

c.                                                                                       Unless
previously paid, the Loans shall be due and payable six months after all
obligations under the COFACE Agreement have been paid in full.

 

4.                                       Subordination. All obligations of the Borrower to the Lender
under this Agreement are subordinated to the Borrower’s obligations under the
COFACE Agreement and are subject to the provisions of the Subordination Deed
between the Borrower, the Lender, BNP Paribas, as COFACE Agent, and BNP
Paribas, as Security Agent, dated 22 June 2009, a copy of which is
attached hereto as Exhibit A. 
The Subordination Deed is for the benefit of and enforceable by the
lenders under the COFACE Agreement provided
that the Lender may not require the Borrower to do anything under
this Agreement which is inconsistent with the 

 

2

 

obligations of the parties to the Subordination Deed or seek any
remedies for the failure of the Borrower to do anything under this Agreement
that is inconsistent with the Borrower’s obligations under the Subordination
Deed or the other Finance Documents (as such term is defined in the COFACE
Agreement).

 

5.                                       Warrant. As additional consideration for the Lender
entering into this Agreement and making the Loans, on the date hereof the
Borrower is issuing to the Lender a warrant (the “Warrant”) in the form
attached hereto as Exhibit B.

 

6.                                       Representations and Warranties of the Borrower.  The Borrower represents and warrants to the
Lender, with respect to the transactions contemplated hereby (collectively, the
“Transaction”) as of the date hereof, as follows:

 

a.                                       Organization
and Authority. The Borrower has all requisite power and authority
to enter into this Agreement and to consummate the Transaction. The Borrower is
duly incorporated and validly existing under the laws of the State of
Delaware.  The execution and delivery by
the Borrower of this Agreement and the Warrant and the consummation by the
Borrower of the Transaction have been duly authorized. This Agreement and the
Warrant, when duly executed and delivered by the Borrower, will constitute a
legal, valid, and binding obligations of the Borrower, enforceable against it
in accordance with their respective terms, except as the enforcement hereof may
be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium, or similar laws affecting the enforcement of creditors’ rights
generally and general equitable principles whether in a proceeding in equity or
at law.

 

b.                                                                                      Noncontravention. The execution
and delivery of this Agreement and the Warrant, the consummation of the
Transaction and the fulfillment of and compliance with the terms and conditions
hereof and thereof do not and will not with the passing of time or giving of
notice (i) result in a violation of the organizational documents of the
Borrower, (ii) violate any law, rule, regulation, provision of any
judicial or administrative order, award, judgment or decree applicable to the
Borrower, or (iii) conflict with, result in a breach of or right to cancel
or constitute a default under any agreement, or instrument to which the Company
is a party, by which the Borrower is bound or to which the Borrower is subject.

 

c.                                                                                       Title.  Upon exercise of the Warrant in accordance
with its terms, the Lender will obtain good, valid and transferable title to
the shares subject to the Warrant (the “Warrant Shares”) free and clear of all
liens, claims and encumbrances whatsoever, and all of the Warrant Shares when
issued will be validly authorized, duly issued and outstanding, fully paid and
non-assessable.

 

d.                                                                                      Shares.  The Borrower is issuing the Warrant and any
Warrant Shares pursuant to an exemption from registration under Section 4(2) of
the Securities Act of 1933 (the “Securities Act”).

 

e.                                                                                       Broker.  No officer, director, employee or third party
shall be entitled to receive any brokerage commissions or similar compensation
in connection with the Transaction contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of the Borrower.

 

3

 

f.                                                                                         Acknowledgement.  The Borrower acknowledges that the Lender has
not made any representations or warranties to it except to the extent of the
representations and warranties of the Lender in this Agreement.

 

7.                                       Representations and Warranties of the Lender.  The Lender hereby represents and warrants to the Borrower as
follows:

 

a.                                                                                       Organization and Authority.  The Lender has all requisite power and
authority to enter this Agreement and to consummate the Transactions
contemplated hereby.  The Lender is duly
organized or formed and validly existing as a limited liability company and in
good standing  under the laws of the
State of Colorado. The execution and delivery by the Lender of this Agreement
and the consummation by the Lender of the Transaction have been duly
authorized. This Agreement, when duly executed and delivered by the Lender will
constitute a legal, valid and binding obligation of the Lender in accordance
with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and general equitable
principles whether in a proceeding in equity or at law.

 

b.                                                                                      Noncontravention. The execution
and delivery of this Agreement, the consummation of the Transaction and the
fulfillment of and compliance with the terms and conditions hereof do not and
will not with the passing of time or giving of notice (i) result in a
violation of the organizational documents of the Lender, (ii) violate any
law, rule, regulation, provision of any judicial or administrative order,
award, judgment or decree applicable to the Lender or (iii) conflict with,
result in a breach of or right to cancel or constitute a default under any
agreement or instrument to which the Lender is a party, by which the Lender is
bound or to which the Lender is subject.

 

c.                                                                                       Securities  Act. 
The Lender is acquiring the Warrant and any Warrant Shares for its own
account for investment only and not with any view towards the public sale or
distribution thereof, except pursuant to sales registered or exempted under the
Securities Act.

 

d.                                                                                      Lender’s
Qualifications. The Lender is an “accredited investor” as such
term is defined in Regulation D under the Securities Act of 1933 (the “Securities
Act”).

 

e.                                                                                       Transfer
or Resale.  The Lender
understands that the Warrant and any Warrant Shares have not been and are not
being registered under the Securities Act or any state securities laws and may
not be offered for sale, sold, assigned or transferred without registration
under the Securities Act or an exemption therefrom, and that the for exemption
of the Transaction is Section 4(2) of the Securities Act. The Lender
understands that a legend restricting transfer except in compliance with the
Securities  Act will be reflected on the
certificates or records representing the Warrant and any Warrant Shares.

 

f.                                                                                         Broker.  No officer, director, employee or third party
shall be entitled to receive any brokerage commissions or similar compensation
in connection with the Transaction contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of the Lender.

 

4

 

g.                                                                                      Acknowledgements.  The Lender acknowledges that the Borrower has
not made any representations or warranties to it except to the extent of the
representations and warranties of the Borrower in this Agreement.

 

8.                                       Reporting.  Each party
is responsible for making and shall make its own required reports with the
Securities and Exchange Commission and NASDAQ regarding the Transaction.

 

9.                                       Survival. The representations
and warranties of the Lender and the Borrower contained in Sections 6 and 7 and
the covenant in Section 8 shall survive this Agreement.

 

10.                                 Successors
and Assigns.  Neither
party may assign this Agreement or its rights or obligations hereunder without
the prior written consent of the other party. Subject to the preceding, this
Agreement shall be binding upon, inure to the benefit of and be enforceable by
the parties hereto and their respective successors and assigns.

 

11.                                 Severability.  If any
provision of this Agreement is prohibited by law or otherwise determined to be
invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long as this
Agreement as so modified continues to express, without material change, the
original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in
question does not substantially impair the respective expectations or
reciprocal obligations of the parties or the practical realization of the
benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or
unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

12.                                 Entire
Agreement; Amendment.  This
Agreement supersedes all other prior oral or written agreements between the
Lender, the Borrower, and their respective affiliates and persons acting on
their behalf with respect to the matters discussed herein, and, except as
specifically set forth herein, neither the Lender nor the Borrower makes any
representation, warranty, covenant or undertaking with respect to such
matters.  No provision of this Agreement
may be amended, waived, terminated or otherwise modified other than by an
instrument in writing signed by the Lender and the Borrower. Any amendment to
this Agreement made in conformity with the provisions of this Section 12
shall be binding on all parties.  No
provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is subject.

 

13.                                 Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the parties hereto and the respective
successors, legal representatives and assigns of each.

 

14.                                 Counterparts.   This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together
shall be deemed one and the same instrument.

 

5

 

15.                                 Applicable
Law.  This Agreement shall be
governed by the laws of the State of Delaware, without regard to the choice of
law rules thereof.

 

Signatures are on the
following pages.

 

6

 

IN WITNESS WHEREOF, this Agreement has been
duly executed by each of the parties hereto as of the date first above written.

 

 

	
   

  	
  THERMO
  FUNDING COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James Monroe III

  
	
   

  	
  Printed
  Name: James Monroe III

  
	
   

  	
  Title:
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GLOBALSTAR,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Fuad Ahmad

  
	
   

  	
  Printed
  Name: Fuad Ahmad

  
	
   

  	
  Title: Senior Vice President and CFO

  

 

7Exhibit 10.6

 

CONFIDENTIAL TREATMENT

 

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

 

AMENDMENT
No 2 

TO THE AGREEMENT FOR THE LAUNCHING INTO

LOW EARTH ORBIT

OF THE GLOBALSTAR SATELLITES

BY THE SOYUZ LAUNCH VEHICLE

 

This Amendment No 2 to the
Agreement for the launching of the GLOBALSTAR Satellites, (hereinafter
referred to as the “Agreement”) is entered into

 

BY AND
BETWEEN

 

GLOBALSTAR,
INC., a company organized and existing under the laws
of the State of Delaware, with head offices located at 461 South Milpitas Blvd,
Milpitas, CA 95035, U.S.A., (hereinafter referred to as “CUSTOMER”),

 

On
the one hand,

 

AND

 

ARIANESPACE
a company organized and existing under the laws of the Republic of France, with
head offices at Boulevard de l’Europe, 91006 Evry-Courcouronnes Cedex, France
(hereinafter referred to as “ARIANESPACE”).

 

On
the other hand,

 

 

PREAMBLE

 

Whereas                                                               On
September 5, 2007 CUSTOMER and ARIANESPACE have entered into a Launch
Services Agreement (“the Agreement”), as amended on 9 July 2008 (“Amendment
#1), for the launch of the GLOBALSTAR Satellites.

 

Whereas                                                               On
June 25, 2009, upon the request of CUSTOMER, ARIANESPACE has accepted to
loan to Thermo Funding Company LLC (principal stockholder of CUSTOMER) a sum of
US$ 10,000,000 to help fund CUSTOMER debt service reserve account required
under the COFACE guaranteed financing.

 

Whereas                                                               Pursuant
to commercial discussions and negotiations between the Parties it has been
agreed that as soon as drawings are permitted under the COFACE-guaranteed
financing dated 5 June 2009 and entered among CUSTOMER as borrower, BNP
Paribas as Arranger, Security Agent and COFACE Agent and the Lenders named
therein, Globalstar has shall draw down under the Facility an amount sufficient
to prepay to Arianespace (i) the entire amount of the pre-Launch financing
granted by Arianespace   to Globalstar
under the Agreement together with interest thereon and   (ii) plus late payments and interests
corresponding to the unpaid installments due at L-9 months and L-6 months for
Launch #1  (respective due dates — December 23rd,
2008 and March 23rd, 2009) and
at L-9 months for Launch #2 (due date March 22nd,
2009).

 

Whereas                                                               The
Parties have therefore agreed, in light of the loan agreement referred to above
and entered into between Thermo Funding Company LLC and Arianespace, to amend
the terms of the Agreement and its Amendment #1 on the terms and conditions set
out herein.

 

NOW
THEREFORE, THE PARTIES HAVE AGREED UPON THE FOLLOWING MODIFICATION TO THE
AGREEMENT:

 

2

 

Section 1
-

 

This
Amendment #2 cancels and replaces the terms of Amendment #1 and modifies the
terms of the Agreement as follows:

 

1.1                                 The first
paragraph of the recitals is cancelled and replaced as follows:

 

“WHEREAS         CUSTOMER has approached
ARIANESPACE with a request to launch TWENTY FOUR (24) Satellites through FOUR (4) Firm
Launches, with the option to launch an additional SIX (6) Satellites,
subject to the terms and conditions herein.”

 

1.2                                 The
definition of “Launch Option” included in Article 1 (“Definitions”) of the
Agreement is deleted and replaced as follows:

 

“Launch
Option means the right for CUSTOMER to order from ARIANESPACE an
Optional Launch in accordance with this Agreement for the launch of additional
GLOBALSTAR Satellites to be performed by ARIANESPACE.”

 

1.3                                 Article 2
of the Agreement is deleted and replaced as follows:

 

“ARTICLE — 2    SUBJECT OF THE AGREEMENT

 

The subject of this Agreement is the performance of FOUR (4) Firm
Launch Services, each launching six Satellites supplied by CUSTOMER from the
Launch Site for the purpose of accomplishing the Launch Mission in accordance
with the terms and conditions of this Agreement plus, subject to the conditions
stipulated herein, ONE (1) additional Launch Services for the Launch
Option exercised by CUSTOMER.”

 

1.4                                 Paragraph
4.1 of Article 4 (ARIANESPACE’S SERVICES) of the Agreement is deleted and
replaced as follows:

 

“4.1                         ARIANESPACE
shall, for the FOUR (4) Firm Launches and for the Optional Launch, if the
Launch Option has been exercised by CUSTOMER, perform the Services under this
Agreement including:

 

4.1.1                                   Launch
Services;

 

4.1.2                                   Associated
Services: subject to any further additional orders of CUSTOMER, one or more of
the services as set forth in Part 6 of Annex 1 to this Agreement.”

 

3

 

1.5                                 Paragraph
4.3 (Launch Option) of Article 4 (ARIANESPACE’S SERVICES) of the Agreement
is deleted and replaced as follows:

 

“4.3 Launch Option

 

ARIANESPACE undertakes to maintain ONE (1) Launch
Option available to CUSTOMER and to be exercised by CUSTOMER in accordance with
the terms of Article 6 and subject to the conditions below.

 

ARIANESPACE shall be obligated for:

 

(i)                                                         ONE (1) Optional
Launch in addition to the FOUR (4) firm Launches if no Launch Failure or
Satellite Mission failure has occurred,

 

or

 

(ii)                                                      ONE (1) Optional
Launch in addition to the FOUR (4) firm Launches and ONE (1) Replacement
Launch in case of one Launch Failure or Satellite Mission failure.

 

For sake of clarity, ARIANESPACE shall not be obligated to
CUSTOMER for any Optional Launch in case of two or more Launch Failure(s) or
Satellite Mission failure(s).”

 

1.6                                 Paragraph
4.4 (Launch Site Selection) of Article 4 (ARIANESPACE’S SERVICES) of the
Agreement is deleted and replaced as follows (for clarity, this new Paragraph
4.4 cancels Section 1 (“Launch Site Selection for the Firm Launches and
Associated Remuneration”) of Amendment #1):

 

“4.4 Launch Site

 

The Launch Site for the FOUR (4) Firm Launches shall be the SOYUZ launch
complex at the Baikonur Space Center (BSC), in Baikonur, Kazakhstan.

 

ARIANESPACE shall inform CUSTOMER of the Launch Site selected for the
Optional Launch, if any, by written notice to be received no later than TWELVE
(12) months prior to the first day of the associated Launch Period as defined
in accordance with Article 6 herein.

 

It is hereby mutually understood by the Parties that none of the Firm or
Optional Launches provided under this Agreement shall be performed on the first
Soyuz to be launched from CSG.”

 

1.7                                 Paragraph
5.3 of Article 5 (“CUSTOMER COMMITMENTS”) of the Agreement is deleted and
replaced as follows:

 

4

 

“5.3                           CUSTOMER
will have the possibility to exercise the Launch Option under sub-paragraph 4.3
of Article 4 of this Agreement, in addition to the TWENTY-FOUR (24)
CUSTOMER Satellites to be launched through the FOUR (4) Firm Launches
under this Agreement.

 

Notwithstanding the above ARIANESPACE releases CUSTOMER
from the above commitment in the following cases:

 

(i)                          ARIANESPACE
becomes bankrupt or insolvent or has a receiving order made against it, or
takes the benefit of any status or legislation related to bankruptcy or
insolvent debtors, or if an order is made or resolution passed for the
winding-up of ARIANESPACE,

 

(ii)                       If,
following a CUSTOMER request for a single Launch Period in accordance with
sub-paragraph 6.2.2, the first day of the nearest available Launch Period
proposed by ARIANESPACE is more than TWELVE (12) months later than the first
day of the Launch Period requested by CUSTOMER.”

 

1.8                                 Paragraph
6.1 (“Launch Term”) of Article 6 (“LAUNCH SCHEDULE”) of the Agreement is
cancelled and replaced as follows:

 

“6.1         Launch Term

 

The FOUR (4) Firm Launches
shall take place during the term from EDC + TWENTY-SEVEN (27) months up to March 31,
2011.

 

The Optional Launch shall be available to CUSTOMER during the term
extending from April 01, 2010 up to and including December 31, 2013.”

 

1.9                                Sub-paragraph
6.2.2 (“Optional Launches”) of Article 6 (“LAUNCH SCHEDULE”) of the
Agreement is cancelled and replaced as follows:

 

“6.2.2      Optional
Launch

 

The Launch Period for the Optional Launch, if any, shall be established
within the Launch Term defined in Sub-paragraph 6.1 of Article 6 of this
Agreement.

 

(i)                                     CUSTOMER
shall notify ARIANESPACE by written notice to be received no later than TWELVE
(12) months prior to the first day of the Launch Period desired by CUSTOMER for
the corresponding Optional Launch, being further agreed that such Launch Period
shall not be earlier than the provisional Launch Period defined in
sub-paragraph (ii) hereinafter.

 

Within ONE (1) month of
receipt of CUSTOMER’s notice, ARIANESPACE shall inform CUSTOMER whether a
Launch Opportunity exists within the desired Launch Period.

 

(ii)                                For the
purpose of Article 10 and Article 18, the provisional Launch Period
for the Optional Launch shall be defined at option exercise. The first day of
the provisional Launch Period shall not be earlier than EIGHTEEN (18) months
following option exercise.

 

5

 

1.10                           Paragraph
8.1 of Article 8 (“REMUNERATION”) of the Agreement is cancelled and
replaced as follows

 

“A            For the
Firm Launch Services:

 

The Price for Launch Services for
the SOYUZ Firm Launches, each of SIX (6) Satellites is as follows:

 

·                  For each of
the three first Firm Launches:

 

FIFTY TWO MILLION FIVE HUNDRED
THOUSAND United States Dollars (US$ 52,500,000).

 

·                  For the
fourth Firm Launch:

 

FIFTY EIGHT MILLION FIVE HUNDRED
THOUSAND United States Dollars  (US$
58,500,000).

 

For the sake of clarity, it
is acknowledged by the Parties that, for the Firm Launches from the Baikonur
Launch Site, each Firm Launch and related Launch Services shall be increased by
[*]United States Dollars (USD [*]), subject to a contractual cap at [*]United
States Dollars (USD [*] ), and said USD [*]  is included in the above-identified Price of
USD [*]  for the fourth Firm Launch.

 

B 
For the Optional Launch Services:

 

(i) The firm fixed price of
the Optional Launch Services exercised by CUSTOMER for a Launch to take place
on or prior to 31 December 2010 is: 
[*]United States Dollars (US$ [*] ).

 

(ii) The price of the Optional
Launch Services exercised by CUSTOMER for a Launch to take place on or after 1 January 2011
up to and including 31 December 2013, shall be as follows:

 

[*]United States Dollars (US$ [*] ),
as escalated as set forth in paragraph 8.2.

 

(iii) The price and terms and
conditions applicable to the Optional Launch Services requested by CUSTOMER for
a Launch to occur after 31 December 2013, shall be negotiated in good
faith by the Parties.

 

1.11                           Paragraph
8.2 of Article 8 (“REMUNERATION”) of the Agreement is cancelled and
replaced as follows:

 

With respect to Articles 10 and 18, and for the Optional Launch, it is
agreed that the Launch Services prices
as set forth in Sub-paragraph 8.1(B)(ii) and the prices for
Associated Services shall be escalated, prorata, on a quarterly basis from 1 January 

 

6

 

2011 to L* (L* being the first day of the provisional Launch Period
selected at Optional Launch exercise) by an escalation rate of [*]% per
quarter. Said escalation rate is provisional.

 

A final escalation rate will be determined at Launch
Day minus ONE (1) month.

 

The final escalation rate will be a weighted average
calculated as follows:

 

·                  [*]% on a
Western European producer price growth index,

 

·                  [*]% on a
worldwide steel price growth index,

 

·                  [*]% on a
Russian labor cost growth index.

 

The above indices will be initially selected within THIRTY (30) days of
EDC by mutual agreement of the Parties. If a selected index is no longer
available or appropriate at the time of calculation of the final escalation
rate for the Optional Launch, Parties will select by mutual agreement the best
available replacement index.

 

The Launch Services prices as set forth in 8.1(B)(ii) and the prices
for Associated Services will be recalculated, using the final escalation rate,
prorata, on a quarterly basis from 1 January 2011 to L* (L* being the
first day of the provisional Launch Period selected at Optional Launch
exercise).

 

Notwithstanding the calculated value of the final escalation rate, the
maximum rate applicable shall not exceed [*]% per quarter and the minimum rate
applicable shall not be less than [*]% per quarter.

 

Any price differentials will be reconciled in the Launch
Associated Payment.

 

1.12                           Paragraph
10.1 of Article 10 (“PAYMENT FOR SERVICES”) of the Agreement is deleted
and replaced as follows (for clarity, this new Paragraph 10.1 cancels Section 2
(“Payment Schedule and Financing”) of Amendment #1):

 

“10.1                     Payment of the
remuneration under Paragraph 8.1 of Article 8 of this Agreement shall be
made in accordance with the following payment schedule:

 

10.1.1 For each Firm Launch
Services:

 

	
  DUE
  DATE

  	
   

  	
  Total
  amount in US$ for each Firm 

  Launch referred in the sub-paragraph 

  8.1 (A) of Article 8 of this Agreement

  
	
  EDC

  	
   

  	
  [*]

  
	
  EDC + 6 months

  	
   

  	
  [*]

  
	
  EDC + 12 months

  	
   

  	
  [*]

  
	
  L* - 9 months

  	
   

  	
  [*]

  
	
  L* - 6 months

  	
   

  	
  [*]

  
	
  L* - 3 months

  	
   

  	
  [*]

  
	
  Launch Associated Payment

  	
   

  	
  [*]for Launch 1, 2 and 3 

  [*]for Launch 4

  
	
  Total

  	
   

  	
  52 500 000 for Launch 1, 2
  and 3 

  58 500 000 for Launch 4

  

 

7

 

Where

 

L* means the first day of the provisional Launch Period as
applicable to each respective Firm Launch and as defined (and potentially
accelerated) in accordance with sub-paragraph 6.2.1 (A) (ii) or 6.2.1
(B) (ii) of Article 6 of this Agreement whichever is relevant.
Except as set forth in Paragraph 11.4 of Article 11, L* is fixed for the
duration of this Agreement.

 

The Launch Associated Payment shall be made at L+1 week (L
being the actual Launch Day) for any Firm Launch for which a subsequent Firm
launch remains to be performed or a subsequent Optional Launch is already
exercised.

 

The Launch Associated Payment related to a Firm Launch for
which there is no subsequent Firm Launch remaining to be performed or no
subsequent Optional Launch already exercised under this Agreement, shall be
made at L — 1 week (L being the actual Launch Day for the said Launch).

 

If the last contracted Launch under this Agreement is
delayed by ARIANESPACE by more than THIRTY (30) days after the Launch
Associated Payment is made by CUSTOMER, ARIANESPACE shall immediately
return  said Launch Associated Payment if
so requested by CUSTOMER. Said Launch Associated Payment shall remain due and
payable to ARIANESPACE at L-1 week in accordance with the newly established
Launch Day.

 

10.1.2 For the Optional Launch Services:

 

	
  DUE
  DATE

  	
   

  	
  Percentage
  of the Launch Services 

  Price for the Optional Launch referred 

  in the sub-paragraph 8.1 (B) of Article 

  8 of this Agreement

  	
   

  
	
  Optional Launch Date of Exercise

  	
   

  	
  [*]

  	
  %

  
	
  L* - 18 months

  	
   

  	
  [*]

  	
  %

  
	
  L* - 15 months

  	
   

  	
  [*]

  	
  %

  
	
  L* - 12 months

  	
   

  	
  [*]

  	
  %

  
	
  L* - 9 months

  	
   

  	
  [*]

  	
  %

  
	
  L* - 6 months

  	
   

  	
  [*]

  	
  %

  
	
  L* - 3 months

  	
   

  	
  [*]

  	
  %

  
	
  Launch Associated Payment

  	
   

  	
  [*]

  	
  %

  
	
  TOTAL

  	
   

  	
  100

  	
  %

  

 

Where

 

L* means the first day of the provisional Launch Period as
applicable to the Optional Launch and as defined in accordance with
sub-paragraph 6.2.2 of Article 6 of this Agreement.  Except as set forth in Paragraph 11.4 of Article 11,
once defined at exercise of the Launch Option, L* is fixed for the duration of
this Agreement.

 

8

 

The Launch Associated Payment shall be made at L — 1 week
(L being the actual Launch Day of the Optional Launch).

 

If the exercised Optional Launch under this Agreement is
delayed by ARIANESPACE by more than THIRTY (30) days after the Launch
Associated Payment is made by CUSTOMER, ARIANESPACE shall immediately return
said Launch Associated Payment if so requested by CUSTOMER. Said Launch
Associated Payment shall remain due and payable to ARIANESPACE at L-1 week in
accordance with the newly established Launch Day.”

 

1.13                           Sub-paragraph
13.1.1 of Paragraph 13.1 (“Terms”) of Article 13 (“REPLACEMENT LAUNCH”) of
the Agreement is deleted and replaced as follows:

 

“13.1.1                      For the
Firm Launches and the Optional Launch, if any, CUSTOMER is entitled to request
a Replacement Launch from ARIANESPACE in the event that, following Intentional
Ignition, except in the case of Terminated Ignition, either the Launch Mission
or the Satellite Mission has not been accomplished for any reason whatsoever.
Replacement Launch Services are subject to the conditions set forth in this Article 13.
Any and all other rights and remedies of CUSTOMER are excluded whatever their
nature.

 

For clarity it is hereby acknowledged by the Parties
that CUSTOMER shall be entitled to a limited number of Replacement Launches,
such that the maximum number of Launches provided by ARIANESPACE under this
Agreement, together with said Replacement Launches, equals to SIX (6),
including the FOUR (4) Firm Launches and the Optional Launch if any.”

 

1.14                         Sub-paragraph
18.2.1, 18.2.2 and 18.2.3 of Paragraph 18.2 of Article 18 (“TERMINATION BY
CUSTOMER”) of the Agreement are deleted and replaced as follows:

 

“18.2.1           Basic
termination fees for the Firm Launches depending of the date of termination as
follows:

 

	
  Effective
  Date of Termination

  	
   

  	
  Termination
  Fees

  Percentage of Launch 

  Services Price for each 

  launch referred to in Sub-

  paragraph 8.1 (A) of Article 8 

  of this Agreement

  
	
  On or before C-21

  	
   

  	
  [*]%

  
	
  From C-21 to C-18

  	
   

  	
  [*]%

  
	
  From C-18 to C-15

  	
   

  	
  [*]%

  
	
  From C-15 to C-10

  	
   

  	
  [*]%

  
	
  From C-10 to C-7

  	
   

  	
  [*]%

  
	
  After C-7 (*)

  	
   

  	
  [*]% ([*]%) (*)

  

 

9

 

Where:

 

For the Firm Launches, C means the first day of the
provisional Launch Period for Firm Launch N° 1, 2, 3, and/or 4 as defined in
Paragraphs 6.2.1(A)(ii) and 6.2.1.(B)(ii), whichever is applicable, as may
be adjusted by the aggregate duration of postponements requested by ARIANESPACE
in accordance with Paragraph 11.3 to the actual Launch Period, Launch Slot or
Launch Day as defined in accordance with Paragraphs 6.2, 6.3, 6.4 or 6.5.

 

(*) with respect to Firm Launch N° 4 only, the percentage
of termination fees applicable after C-7 shall be [*]%.

 

18.2.2                 Basic
termination fees for the Optional Launch depending of the date of termination
as follows:

 

	
  Effective
  Date of Termination

  	
   

  	
  Termination
  Fees

  Percentage of Launch 

  Services Price for the 

  Optional launch referred to 

  in Sub-paragraph 8.1 (B) and 

  8.2 of Article 8 of this 

  Agreement

  	
   

  
	
  On or before C-21

  	
   

  	
  [*]%

  	
   

  
	
  From C-21 to C-18

  	
   

  	
  [*]%

  	
   

  
	
  From C-18 to C-15

  	
   

  	
  [*]%

  	
   

  
	
  From C-15 to C-10

  	
   

  	
  [*]%

  	
   

  
	
  From C-10 to C-7

  	
   

  	
  [*]%

  	
   

  
	
  After C-7

  	
   

  	
  [*]%

  	
   

  

 

Where:

 

C means the first day of the provisional Launch Period as
defined in Paragraph 6.2.2, as may be adjusted by the aggregate duration of
postponements requested by ARIANESPACE in accordance with Paragraph 11.3 to the
actual Launch Period, Launch Slot or Launch Day as defined in accordance with
Paragraphs 6.2, 6.3, 6.4 or 6.5.

 

18.2.3                 Plus (i) any
other amount(s) due including, without limitation, late payment interest
under the Agreement at the effective date of termination, and (ii) the
price of those Associated Services provided, at CUSTOMER’s cost, which have
actually been performed as of the date of termination.

Section 3 -

 

This Amendment No 2 shall be effective as of its
date of execution by both Parties.

 

10

 

This
Amendment #2 constitutes an amendment to the Agreement. It cancels the
terms of Amendment #1. Except as expressly
provided herein, any other terms and provisions
of the Agreement not modified by this Amendment #2 shall remain unchanged
and in full force and effect.

 

IN
WITNESS WHEREOF THE PARTIES HAVE EXECUTED TWO (2) ORIGINALS OF THIS
AMENDMENT #2.

 

Executed in Paris, on
24th June 2009

 

	
  CUSTOMER

  	
   

  	
  ARIANESPACE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Anthony J. Navarra

  	
   

  	
  Name: 

  	
  Jean–Yves Le Gall

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  Chairman & CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:
  

  	
  /S/
  Anthony J. Navarra

  	
   

  	
  Signature:
  

  	
  /S/
  Jean-Yves Le Gall

  
							

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]