Document:

Celestica - Redacted

Exhibit 10.9

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

AMENDED AND RESTATED 

AGREEMENT FOR MANUFACTURE

BETWEEN

IRIDIUM SATELLITE LLC

AND

CELESTICA CORPORATION

Final 01-10-2007

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

CONTENTS

1.

DEFINITIONS..............................................................................................................

1

2.

SCOPE OF AGREEMENT...............................................................................................

2

3.

FORECAST AND ORDER PROCEDURE............................................................................

3

4.

MATERIALS...............................................................................................................

3

5.

DELIVERY AND RISK...................................................................................................

4

6.

ACCEPTANCE OF PRODUCTS.......................................................................................

5

7.

ORDER AND FORECAST, UPSIDE FLEXIBILITY, AND RESCHEDULING................................

5

8.

CANCELLATION.........................................................................................................

6

9.

PRICES......................................................................................................................

6

10.

PAYMENT..................................................................................................................

7

11.

CUSTOMER LETTER OF CREDIT....................................................................................

7

12.

TITLE........................................................................................................................

7

13.

INTELLECTUAL PROPERTY..........................................................................................

7

14.

QUALITY ASSURANCE................................................................................................

8

15.

CHANGE CONTROL.....................................................................................................

8

16.

COST SAVING SHARING..............................................................................................

9

17.

EXCESS AND/OR OBSOLETE MATERIAL........................................................................

9

18.

CELESTICA WARRANTY.............................................................................................

10

19.

CUSTOMER WARRANTY..............................................................................................

11

20.

INDEMNIFICATION....................................................................................................

11

21.

CUSTOMER PROPERTY...............................................................................................

11

22.

CONFIDENTIALITY....................................................................................................

12

23.

FREEDOM OF ACTION................................................................................................

12

24.

EXCLUSIONS AND LIMITATION OF LIABILITY...............................................................

12

25.

TERM AND TERMINATION..........................................................................................

13

26.

GENERAL.................................................................................................................

14

SCHEDULE 1:

PRODUCTS AND SPECIFICATION

SCHEDULE 2:

PRICING

i

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

THIS AMENDED AND RESTATED AGREEMENT is made effective the first day of January, 2007 (the “Effective Date”)

BETWEEN

CELESTICA CORPORATION, a Delaware corporation with an office located at 4300 West Round Lake Road, Arden Hills MN 55112 (“Celestica”).

AND

IRIDIUM SATELLITE LLC, a Delaware limited liability company with an office located at 8440 South River Parkway, Tempe AZ 85284 (the “Customer”).

WHEREAS

This Agreement sets out the terms and conditions upon which Celestica will manufacture and supply to the Customer certain Products and supply certain Services as herein defined.

IT IS AGREED

1.

DEFINITIONS

The following words and expressions shall have the following meanings:

1.1

“Affiliate” means, a) with respect to the Customer, any company, firm, joint venture, partnership, or other entity of which the Customer directly or indirectly owns or controls the power to vote a majority of the voting rights or over which the Customer directly or indirectly has the power to exercise a controlling influence; b) with respect to Celestica, any company, firm, joint venture, partnership, or other entity of which Celestica Inc., an Ontario, Canada corporation, directly or indirectly owns or controls the power to vote a majority of the voting rights or over which Celestica Inc., directly or indirectly has the power to exercise a controlling influence.

1.2

“Customer Information” shall mean the specification for the relevant Product and all drawings, documentation, data, software, information and know-how, and any tooling provided by the Customer to Celestica.

1.3

“Days” means calendar days unless otherwise identified herein 

1.4

“Excess” Material shall have the meaning set forth in Article 17.

1.5

“Forecast” shall have the meaning set forth in Article 3.1(b).

1.6

“Intellectual Property” shall mean all patents, applications for patents, copyrights, mask works, trade secrets, know-how, discoveries, improvements, inventions, technical data, writings, software in whatever form and Information (as that term is defined in the Confidentiality Agreement between Iridium Satellite LLC and Celestica Corporation dated February 8, 2002), Subscriber Equipment Technical Information (as that term is defined in the Non-Disclosure Agreement among SE Licensing LLC, Iridium Satellite LLC and Celestica Corporation dated April 2, 2003), and any other intellectual property rights recognised by any jurisdiction.

1.7

“Material” shall mean any components and other materials comprising or comprised in Products.

1.8

“Minimum Order Quantity” shall mean the minimum monthly quantity of Products which Customer agrees to buy and which Celestica agrees to sell pursuant to the terms of Article 3.

1.9

“Obsolete” Material shall have the meaning set forth in Article 17.4.

1

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

1.10

“Order” shall mean purchase order for Products and/or Services placed by the Customer subject to the terms and conditions of this Agreement.

1.11

“Prices” shall mean the prices for Products and/or Services and/or non-recurring expenditure (“NRE”) (including, without limitation, tooling and fixtures and other agreed items) agreed between the parties from time to time.

1.12

“Products” shall mean the products listed in Schedule 1 and described in the Specifications.

1.13

“RMA” shall mean a return material authorisation to be provided by Celestica to the Customer.

1.14

“Services” shall have the meaning set forth in Article 2.2.

1.15

“Specifications” shall mean the requirements for the development, manufacture, test, and packaging of the Products, all as further specified in the documents listed in Schedule 1.

2.

SCOPE OF AGREEMENT

2.1

This Agreement will apply to all Orders for Products and Services placed by the Customer and accepted by Celestica under this Agreement.

2.2

From time to time, Customer or its Affiliates may wish to purchase services from Celestica. Such “Services” may include, but shall not be limited to: development, design, engineering, out-of-warranty repair, prototyping, distribution or other services as Customer may request and Celestica may provide from time to time and which may be described in more detail in various statements of work or Orders. Unless otherwise agreed to in writing between the parties, Celestica shall perform all Services in accordance with the terms and conditions set forth in this Agreement and in accordance with Celestica’s then-current fee schedule for such service, or if no fee exists for such service, at a mutually agreed upon price.

2.3

Celestica will manufacture and deliver Products and supply Services pursuant to the terms of this Agreement, subject to the Customer first having provided Celestica with the specification for the Product, together with any Customer Information and all other necessary drawings, documentation, data, software, and other information of the Customer and any consigned materials necessary for the manufacture of Products and the provision of Services. Celestica is responsible for maintaining necessary drawings, documentation, data, software, and other information provided by the Customer.

2.4

As required for the manufacture of the Products, Celestica will procure components, materials, equipment and other supplies, and manufacture, assemble, test and deliver Products pursuant to detailed written specifications, workmanship standards and quality requirements for each such Product as specified in the Schedule 1 Specifications, including applicable bills of materials, schematics, assembly drawings, process documentation, test specifications, current revision number, quality standards and approved vendor list.

2.5

The Customer will accept Products and Services delivered, at agreed upon Prices, pursuant to the terms of this Agreement.

2.6

Celestica shall provide reasonable information and technical support to Customer as required to assist Customer in obtaining regulatory certifications as well as country-by-country type approvals necessary for the distribution and sale of the Product in the jurisdictions specified by Customer.

2.7

All previous agreements between the parties concerning the subject matter hereof are superseded and merged into this amended and restated Agreement for Manufacture including without limitation:

(a)

the Agreement for Manufacture which became effective 02 April 2003;

2

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

(b)

Amendment No. 1 to the Agreement for Manufacture which became effective 03 December 2004; and

(c)

Exhibit A, Fulfillment and Miscellaneous Services, to the Agreement for Manufacture which became effective 30 May 2003.

3.

FORECAST AND ORDER PROCEDURE

3.1

During the term of this Agreement, Customer agrees to purchase and Celestica agrees to provide a Minimum Order Quantity of two thousand (2000) Products per month (the “Delivery Month”). On a monthly basis, Customer will provide Celestica with an updated forecast (the “Forecast”) covering the upcoming ten (10) month period that specifies any Delivery Month where Customer’s monthly order requirements are projected to exceed the Minimum Order Quantity. Customer will use its reasonable commercial efforts to ensure that the Forecast is accurate, but the Forecast will not constitute an Order. No less than two (2) months in advance of each Delivery Month, Customer will provide Order(s) to Celestica confirming the Minimum Order Quantity for that Delivery Month plus any quantity in excess of the Minimum Order Quantity as ordered by Customer.

3.2

Celestica will acknowledge receipt of Orders as soon as reasonably practicable and notify the Customer of acceptance or non-acceptance of Orders within five working (5) days of receipt. Celestica shall not unreasonably refuse to accept an Order, provided that the Order is issued consistent with the Minimum Order Quantity for the Delivery Month, plus any excess quantity as Forecast by Customer for such Delivery Month.

3.3

Following Customer’s issuance of an Order, Customer may increase the quantity ordered for the specified Delivery Month as follows:

(a)

from 31 to 60 days in advance of the monthly period, an increase of up to [*]% can be incurred with no premium charges;

(b)

from 1 to 30 days in advance of the monthly period, an increase of up to [*]% can be incurred with no premium charges;

Changes outside the limits specified in 33 (a) and (b) are subject to Celestica’s advance notice to Customer of a proposed premium and Customer’s agreement to pay the proposed premium rates per Product.

3.4

Orders will incorporate by reference, the terms and conditions of this Agreement. This Agreement shall supersede the terms and conditions of such Orders and exclude any pre-printed terms and conditions found on the Customer’s Orders, which shall be deemed deleted. Orders will describe in more detail the required Product and/or Service to be rendered by Celestica and will include: the description and Price per unit of Product; the quantities ordered; Product revision details and such other information as the parties may agree is required. Orders may be issued in writing, by mail or facsimile, or by electronic means as agreed to by the parties.

4.

MATERIALS

4.1

The Customer hereby authorises Celestica, and Celestica shall be entitled, to order Materials in accordance with Material leadtimes (for which Customer will be responsible in accordance with Article 17 herein), as necessary to support Orders and Forecasts. Such authorisation shall include without limitation, additional Materials as are, in Celestica’s opinion, reasonably required, taking into account any supplier minimum order requirements, packaging sizes and economic order quantities.

4.2

Without limiting Article 4.1 above, where lead times for Materials are at any time longer than the period covered by Orders set out in Article 3.1(a) above, Celestica shall be authorized to order such Materials on the basis of the Forecast in order to meet the Customer’s delivery requirements requested therein.

4.3

Where the Customer so directs, Celestica will procure Materials in accordance with the Customer’s approved vendor list. To use other vendors of Materials, Celestica must obtain the Customer’s prior written consent, which consent shall normally be provided within fourteen (14) Days and, in any event, shall not be 

3

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

unreasonably withheld or delayed. Where the Customer has not directed the use of an approved vendor list, Celestica shall be responsible for all actions necessary to assure the timely and compliant procurement of Materials as necessary to meet Customer Order and Forecast requirements.

4.4

In the event of any inconsistency between the terms and conditions of this Agreement and Customer negotiated terms and conditions with suppliers for Customer controlled components, then to the extent of any such inconsistencies, Celestica shall be relieved of any liability to Customer with respect to Customer controlled components.

4.5

When requested by the Customer or as identified by Celestica, and upon receipt of a Customer Order, Celestica will purchase lifetime buys of Materials that exceed the Forecast.

4.6

Where the Customer directs Celestica to buy Materials from contracts that are negotiated by the Customer, the Customer will have primary responsibility for directing its suppliers to perform in accordance with these contracts, including resolving any quality issues and compensating Celestica for its reasonable costs related to Material quality issues.

4.7

Customer will furnish the Materials specified in Schedule 2 to Celestica for use in the manufacture of the Products. In the event that such Customer-supplied Material is received by or provided to Celestica in a condition that is not suitable for its intended use, Celestica shall immediately notify Customer, and Customer shall, in its discretion, be responsible for the correction of such Material. Upon Celestica’s acceptance of Customer-supplied Material, Celestica shall be responsible for loss of or damage to the Material where such loss or damage is the result of negligence of Celestica. Celestica shall not be responsible for reasonable attrition of Customer-supplied Material. The use by Celestica of Customer-supplied Material, which is provided in a suitable condition for its intended use, shall not relieve Celestica from its responsibility to manufacture and deliver Products in conformance with the requirements of this Agreement. All Customer-supplied Material shall remain the property of Customer, shall be maintained by Celestica only for Customer’s work and shall be returned to Customer as provided in Article 17 below.

5.

DELIVERY AND RISK

5.1

Except as agreed otherwise, all Products sold to the Customer are delivered FCA (1NCOTERMS 2000) Celestica’s premises of manufacture.

5.2

The Customer will arrange transportation and specify carrier and transportation instructions. If the Customer has not done so, Celestica shall arrange for transportation on the Customer’s behalf and at the Customer’s cost, utilizing to the extent possible any Customer negotiated discount arrangements made available by Customer to Celestica.

5.3

Celestica will meet agreed delivery dates, will advise the Customer promptly of any delivery delays, and will bear the cost of any reasonable premium freight charges, material expediting fees, and overtime labour necessarily incurred to mitigate the impact on Customer of actual or impending late deliveries, to the extent such lateness is attributable to Celestica.

5.4

Risk of loss and damage will pass from Celestica to the Customer upon delivery by Celestica pursuant to Article 5.1 above.

5.5

All Products will be packed by Celestica in accordance with the Schedule 1 Specification packaging requirements or otherwise as may be agreed to by the parties.

5.6

The Customer is responsible for obtaining:

(a)

any necessary export and import licenses relating to Products; and

4

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

(b)

any government or regulatory approvals relating to the marketing, sale or use of Products and maintaining compliance with all applicable laws and regulations in any jurisdiction to or from which Products are shipped or in or from which the Products are marketed, distributed or sold.

6.

ACCEPTANCE OF PRODUCTS

6.1

The Customer may reject Products which, a) have been materially damaged by Celestica prior to delivery or b) have not met, in all material respects, the Specifications (“Rejected Products”).

6.2

The Customer will notify Celestica in writing of Rejected Products within thirty (30) Days of original delivery and will return Rejected Products at its risk to Celestica within a further fifteen (15) Days. The Customer requires an RMA from Celestica prior to returning any Product. Celestica’s issuance of an RMA will not be unreasonably withheld.

6.3

Upon return of the Rejected Products, Celestica will, as soon as reasonably practical at its election either repair, replace or credit the Customer for Rejected Products. The cost associated with any such repair, replacement, or credit will be the responsibility of Celestica. In the case of replacement or credit, title to the Rejected Product shall pass to Celestica on delivery to Celestica. Where the Customer has a preference for one of repair, replacement or credit, it shall communicate its preference to Celestica, which shall use its reasonable commercial efforts to accommodate the request.

6.4

In the absence of earlier notification of rejection, the Customer will be deemed to have accepted Products thirty (30) Days after Customer’s receipt of Products at Customer’s facility.

7.

ORDER AND FORECAST, UPSIDE FLEXIBILITY, AND RESCHEDULING

7.1

Upon Customer’s request, Celestica shall use its commercially reasonable efforts to:

(a)

accept unplanned Orders, or

(b)

accelerate delivery dates of existing Orders, or

(c)

accept increases in quantities on existing Orders; subject to the mutual agreement of the parties on any increased costs or premium charges incurred as a result of such activity.

7.2

The Customer may delay or reschedule deliveries in advance of agreed delivery dates, subject to the limitations set forth in the table below:

		
	Maximum quantity of

Products for a Delivery

Month for which delivery

may be delayed

 

	Number of days prior to the

original scheduled Delivery

Month on which a request for

delayed delivery is made by

Customer

	Minimum Order Quantity

 

100% of Quantity in excess

of Minimum Order Quantity

 

	No delay allowed

 

30 or more days

 

 

 

Celestica shall use its commercially reasonable efforts to mitigate the costs of Excess material caused by any such delay or rescheduling. Any Excess or Obsolete Material created as a result of such delay or rescheduling will be dealt with in accordance with Article 17.

5

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

7.3

For Quantities in Excess of the Minimum Order Quantity, a delivery may only be delayed or rescheduled (whether in whole or in part) once from its original scheduled delivery date and then only within the limitations set forth in the table above and only within a period of sixty (60) days from such original scheduled delivery date. Celestica may treat any attempt to delay or reschedule an Order more than once or outside such period as a Cancellation.

8.

CANCELLATION

8.1

Subject to Article 8.2, if Customer cancels an Order (or any part thereof), reschedules delivery of an Order outside of the limitations allowed pursuant to Article 7.2, or if an Order is deemed to be cancelled pursuant to Article 7.3 or 8.4, then:

(a)

in the case of prototypes, pilot, pre-production, work-in-process (which Supplier shall be entitled to complete and deliver to Company) or finished Products, Company shall pay to Supplier the full Price for such Order (or any part thereof) so cancelled;

(b)

Otherwise, Customer shall pay to Celestica the transformation cost of the Order(s) (or any part thereof) so cancelled, where “transformation cost” is defined as the full Product price that the Celestica would have received for such Products if it had completed the manufacturing process on the date the Order(s) (or any part thereof) was cancelled, minus Celestica’s Material cost for such Products;

(c)

Customer shall pay for all costs associated with any Obsolete Inventory and/or Excess Inventory that arises as a result of the cancellation of such Order (or any part thereof), in accordance with Article 17 of this Agreement; and

(d)

Customer shall pay Celestica an amount equal to any investment incurred by Celestica specifically in relation to this Agreement with the prior agreement of Customer and which has not been fully recovered by Celestica from Customer through amortization or other means.

8.2

If any Order (or part thereof) is cancelled due to a termination pursuant to Article 25, Customer may direct Celestica to cease its manufacturing operations in respect of Products affected by such termination. In the event of such termination, Customer shall pay to Celestica all relevant amounts specified in Article 25.3 and 25.4.

8.3

Celestica will use its commercially reasonable efforts to attempt to mitigate the costs described above on behalf of the Customer. All costs of Obsolete or Excess Materials and related handling charges shall be addressed in accordance with Article 17.

8.4

With the exception of Rejected Products in accordance with 6.1, if the Customer refuses or fails to accept any delivery made by Celestica pursuant to any Order or this Agreement, such Order (or the relevant part thereof) may, at Celestica’s option, be deemed to have been cancelled by the Customer.

9.

PRICES

9.1

Celestica and Customer agree on the per unit current pricing in effect for Q4 2006, as outlined in Schedule 2. For 2007 pricing, Celestica commits to a minimum $[*] per unit price reduction for Monaco Products and Daytona Products in 2007, and a $[*] per unit price minimum reduction for the Talladega Product in 2007. These price reduction commitments are based on bills of material (“BOM”) current at the Effective Date. For 2008 and thereafter, Celestica and Customer will mutually agree on annual price reduction commitments on or before October 31 of the previous year.

9.2

Celestica may, from time-to-time, request that Customer amend its Specifications so as to assist in cost reduction projects, which request may be accepted or denied at the sole discretion of the Customer.

9.3

Payment by Customer of the Prices invoiced for a Product shall not constitute acceptance of such Product.

6

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

9.4

If, during any calendar year, Customer does not purchase at least [*] units in any combination of Products, Celestica reserves the right to renegotiate future pricing to reflect the effect of the actual annual volumes.

10.

PAYMENT

10.1

All Orders for Products will be invoiced based on the Prices specified in Article 9. Payment of invoices for Products as well as any other costs or charges payable by the Customer are: (a) due to Celestica without any set off or deduction; (b) in US Dollars; (c) within thirty (30) Days following the date of invoice unless otherwise specified herein; and (d) shall be made consistent with the terms of the Letter of Credit issued by Customer on behalf of Celestica as specified in Article 11.1.

10.2

Celestica will invoice on, or as soon as reasonably practicable, after the delivery of Products pursuant to Article 5.1 or the rendering of Services.

10.3

Unless the Customer provides appropriate exemption certificates, the Customer will be solely responsible for and will pay all taxes including value added taxes, duties or other governmental or regulatory charges in any country resulting from the performance of this Agreement, except for any income related taxes for which Celestica is directly liable.

11.

CUSTOMER LETTER OF CREDIT

11.1

The Customer acknowledges that Celestica, in the performance of its obligations under this Agreement, will incur financial obligations on behalf of the Customer. Customer agrees to implement, for the term of this Agreement, an irrevocable, standby Letter(s) of Credit, with Celestica as the beneficiary, in the aggregate amount of $[*], and in a form or format, and from a financial institution, all of which is acceptable to Celestica. If order volumes, order forecasts, Material leadtimes and/or Material prices change so that Celestica’s gross risk is no longer covered by the Letter(s) of Credit, Celestica shall have the right to require Customer to increase the amount of the Letter(s) of Credit.

11.2

Celestica and Customer will review Customer’s financial performance on a quarterly schedule and Celestica will provide a Gross Risk Exposure report to Customer on a monthly basis. Based on Customer’s financial performance and maintaining Celestica’s Gross Risk Exposure below $[*], Customer may request that Celestica waive the requirement for the LoC, which request shall not be unreasonably denied. Should Celestica’s Gross Risk Exposure exceed $[*] with an LoC in place or $11m without an LoC in place, then Celestica may request that Customer operate under “pay on receipt” terms.

12.

TITLE

12.1

Except as otherwise specified in Article 6.3 and Article 18.2, title and interest to Products will pass to the Customer upon delivery.

13.

INTELLECTUAL PROPERTY

13.1

All existing Intellectual Property owned by or licensed to the Customer will continue to be owned by the Customer and, accordingly, Celestica is authorized to exercise Customer’s “have made” rights thereunder and to use such of it as may be necessary for Celestica to perform its obligations under this Agreement. With respect to any Intellectual Property licensed to the Customer, the Customer warrants that such license is in good standing and includes all necessary “have made” rights.

7

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

13.2

All existing Intellectual Property of Celestica will continue to be owned by Celestica and all Intellectual Property arising in the course of Celestica’s performance of this Agreement will be owned by Celestica other than Intellectual Property solely and uniquely related to Products which shall be owned by the Customer.

13.3

Nothing in this Agreement or any Order grants or can be capable of granting to a party (whether directly, indirectly, or by implication, estoppel or otherwise) any rights to any Intellectual Property owned by or licensed to the other party.

14.

QUALITY ASSURANCE

14.1

Celestica will maintain quality assurance systems for the control of material quality, processing, assembly, testing, packaging and shipping in accordance with its usual policies and practices. The workmanship standards to be used in building Product includes IPC-A-610 Rev. C Class 2, as published by the Institute for Interconnecting and Packaging Electronic Circuits, as well as any other standards specified in the Schedule 1 Specifications.

14.2

Celestica will perform its normal test procedures relating to Products and Services, and/or such other test procedures as mutually agreed by the parties. The parties recognise that documented test coverage is not complete and there is a finite risk of defects escaping test. If this occurs, the parties will in good faith implement a solution and allocate cost responsibilities.

14.3

Either party may during normal business hours and following reasonable notice and subject to the other party’s normal security and confidentiality requirements, review the other party’s facilities and quality control procedures as reasonably necessary for the first party to satisfy itself of the other party’s compliance with its obligations under this Agreement.

14.4

The parties will endeavour to meet quarterly to discuss and resolve any issues which may have arisen including those relating to quality, performance, engineering changes, obsolescence or excess.

15.

CHANGE CONTROL

15.1

Either party may at any time propose changes to the relevant specification or the Products by a written Engineering Change Notice (“ECN”) to the other party.

15.2

The recipient of an ECN will use all reasonable efforts to provide a detailed response within fourteen (14) Days of receipt.

15.3

Celestica will advise the Customer of the likely impact of an ECN (including but not limited to delivery scheduling and Prices) on the provisions of any relevant Orders.

15.4

Neither party will unreasonably withhold or delay agreement to an ECN and the parties will endeavor to agree and implement at the earliest opportunity ECN’s relating to personal and product safety.

15.5

Until an ECN and any associated impact have been agreed in writing, the parties will continue to perform their obligations without taking account of that ECN.

15.6

Any Obsolete and/or Excess Materials resulting from an ECN will be dealt with in accordance with Article 17 below.

15.7

All costs of implementing ECN’s (including without limitation: premium costs of Materials; Material handling charges; process and tooling charges; administrative charges; engineering charges; and evaluation and testing costs) will be the responsibility of the Customer, except for ECN’s initiated by Celestica solely to improve its manufacturing processes.

8

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

16.

COST SAVING SHARING

16.1

Any cost savings which are achieved by Celestica as a result of changes proposed by Celestica or Iridium will be dealt with in the following manner and the calculation of such cost savings sharing will commence immediately after Celestica’s implementation costs are recovered (as mutually agreed upon by the parties): (a) Celestica and the customer share the savings on a 50/50 basis for the remainder of the quarter in which Celestica’s implementation costs are recovered, and thereafter, 100% of the savings will be to the benefit of the Customer.

17.

EXCESS AND/OR OBSOLETE MATERIAL

17.1

If at any time, the aggregate quantity of any item of Material that Celestica has on hand, which has been ordered, manufactured or acquired in accordance with Article 3 and Article 4, is greater than the quantity of such Material Forecasted to be consumed by Celestica in the manufacture of Products for Customer under this Agreement in the subsequent (a) ninety (90) Days, then such excess quantity of Material shall be deemed “Excess” or (b) one hundred eighty (180) days, then such excess quantity of Material shall be deemed “Obsolete”.

17.2

Quarterly, Celestica shall provide Customer with a notice, setting out the amount and value of any Excess Material on hand at the end of the quarter, plus an invoice for an inventory carrying charge in the amount of one and one half (1.5) percent per month of the value of such Excess Material which have been Excess for longer than 45 days. Also quarterly, Celestica shall deliver to the Customer and submit an invoice for, any inventory which has been Excess for ninety (90) days or is Obsolete.

17.3

In the event of:

(a)

a complete or partial termination, rescheduling or cancellation of an Order, or

(b)

a reduction in a Forecast, or

(c)

the termination of all or any part of this Agreement, or

(d)

any other event, including a change in specifications or an engineering change,

which results in any Material which Celestica has purchased or issued a purchase order to the Material vendor for in accordance with Article 3 and Article 4, no longer being required by Celestica to manufacture Products (or being otherwise unsuitable for use in the manufacture of Products due to the passage of time) within Customer’s contemplated manufacturing quantity for the Product as specified in Article 3.2, such Material shall be considered “Obsolete” and Customer shall be notified of the same subsequent to Celestica’s mitigation efforts as specified in Article 17.6 below. Customer shall, within seven (7) business days of receiving such notice, issue an inventory Order to Celestica for such Obsolete Material, pursuant to Article 17.5 below.

17.4

Customer will purchase the Excess Material and/or the Obsolete Material, as the case may be, pursuant to an inventory purchase order at the price paid by Celestica for such Excess or Obsolete Material, together with the Material mark-up reflected in the Product pricing. Any Excess or Obsolete Material purchased by Customer from Celestica pursuant to an inventory purchase order shall be deemed Customer Owned Inventory. The inventory purchase order include the costs of mitigation incurred by Celestica pursuant to Article 17.6 below, shall including under-recoveries resulting from the sale of Material at prices less than the price originally paid by Celestica for such Material, as well as costs relating to re-stocking or return charges.

17.5

When any Material is for any reason at any time rendered Excess or Obsolete, Celestica will use its reasonable efforts to:

(a)

cancel outstanding orders for such Materials; and

(b)

return or sell such Materials back to the original supplier or to a third party on such terms as Celestica may determine at its discretion; and

9

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

(c)

use excess/non-cancellable Materials for the manufacture of other Products. 

Such mitigation efforts shall continue for a period of up to thirty (30) Days.

17.6

All invoices relating to Excess or Obsolete Material, as specified in this Article 17, shall be due to Celestica in accordance with the payment terms specified in Article 10.1.

17.7

Notwithstanding the persons designated in Article 26.5, all notices, inventory purchase orders and any other communication required to be made or delivered by either party to the other party pursuant to this Article 17 shall be sent to representatives agreed to by the parties.

18.

CELESTICA WARRANTY

18.1

Celestica warrants that it will without charge, repair, replace or credit, as it may elect, any Products which are proved to be defective as a result of a failure in Celestica’s workmanship provided that such defective Product has been returned prepaid to Celestica’s designated repair location within [*] months after original delivery to Customer (which period shall not be extended by the repair or replacement of Product), except where the defect is discovered in the last month of the warranty. And where Customer notifies Celestica in accordance with Article 18.1 (a) above and returns the defective Product no later than thirty Days after the expiration of the warranty period, then the warranty shall be deemed to still be in effect. To the maximum extent allowed by its agreements with suppliers, Celestica shall pass through to Customer and shall administer on Customer’s behalf; Material warranties from component and raw material suppliers.

The Customer requires a return material authorization (RMA) from Celestica prior to returning any Products. All returned Product shall include documentation describing the nature of the defect, how it was discovered and under what conditions it occurred. Celestica’s issuance of an RMA will not be unreasonably withheld.

18.2

The Customer will pay for the return of Products to Celestica’s designated premises. Celestica will pay for the redelivery to the Customer’s premises in the USA of all repaired or replaced Products, where the returned Products were found by Celestica to be defective under Article 18.1 above. For any Products which are found by Celestica not to be so defective the Customer will pay to Celestica all redelivery costs and an administrative fee (no defect found charge) of $[*] per unit of each such Product In the case of Product replacement: title to replaced Product will pass to Celestica on delivery to Celestica; and title to replacement Product will pass to the Customer on delivery to the Customer.

18.3

The above warranties will not apply to:

(a)

Products which have been misused, modified, damaged, placed in an unsuitable physical or operating environment or maintained improperly or caused to fail by any product or service not supplied by Celestica or to any Products which have been subjected to any repair not authorised in writing in advance by Celestica;

(b)

any defect caused by the Customer or a third party or by an error or omission or design or other fault in any Customer Information or in any other drawings, documentation, data, software, information, know-how or Materials provided or specified by the Customer;

(c)

prototypes and pre-production or pilot versions of Products which will be supplied “as is” without warranty of any kind; or

(d)

Products for which Celestica has not performed the standard inspection and test procedure at the request of the Customer.

18.4

THIS ARTICLE 18 SETS OUT CELESTICA’S SOLE OBLIGATION AND LIABILITY, AND THE CUSTOMER’S EXCLUSIVE REMEDIES, FOR CLAIMS BASED ON DEFECTS IN OR FAILURE OF ANY PRODUCT OR SERVICE OR THE SUBJECT MATTER OF ANY SERVICE AND REPLACES ALL

10

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

OTHER WARRANTIES, REPRESENTATIONS AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES, REPRESENTATIONS OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

19.

CUSTOMER WARRANTY

19.1

The Customer warrants that the Customer Information and any other items or information supplied by the Customer are accurate and contain all items and information of the Customer necessary for Celestica to manufacture and deliver the Products and Services.

19.2

Celestica will notify the Customer of any manufacturing problems which it encounters and believes are related to the Product design or any Customer Information. The parties will jointly determine whether such manufacturing problems are attributable to the Product design or any Customer Information. Where such problems are so attributable, the parties will discuss cost responsibility, however, the basic assumption is that Customer will bear the costs incurred by Celestica to correct such problems. Celestica will not implement any changes to the Product design or any Customer Information without the Customer’s prior approval. Where any such changes result in the delay of any scheduled delivery date for Product, Celestica will have no liability for such delay.

19.3

Prior to start of Celestica’s manufacturing, Customer shall validate and certify that all bill of material and approved vendor listing information is correct and accurate.

19.4

Customer assumes full responsibility, including responsibility for reasonable expenses incurred by Celestica if any consigned material is the cause of deficiencies or failures in the Product.

20.

INDEMNIFICATION

20.1

Customer agrees to indemnify, defend and hold harmless Celestica from and against all third party claims, costs, damages, fines, losses and expenses (including reasonable attorney’s fees) to the extent that such claims, costs, damages, fines, losses and expenses result from: (i) death, personal injury or property damage arising from Customer’s negligent acts or omissions or wilful misconduct; or, (ii) an intellectual property infringement claim arising from any specifications, software, information supplied or any instructions given to Celestica by or on behalf of the Customer provided that Celestica gives Customer prompt notice in writing of the claim, provides reasonable assistance and co-operation to Customer in defense of the claim and permits Customer to control the defense of the claim. Celestica may employ counsel, at its own expense, to assist in the defense of the claim. Celestica shall have no authority to settle any claim on behalf of the Customer.

20.2

Celestica agrees to indemnify, defend and hold harmless Customer from and against all third party claims, costs, damages, fines, losses and expenses (including reasonable attorney’s fees) to the extent that such claims, costs, damages, fines, losses and expenses result from: (i) death, personal injury or property damage arising from Celestica’s negligent acts or omissions or wilful misconduct; or, (ii) an intellectual property infringement claim arising from Celestica proprietary manufacturing processes or other Celestica-supplied information used for the Customer provided that Customer gives Celestica prompt notice in writing of the claim, provides reasonable assistance and co-operation to Celestica in defense of the claim and permits Celestica to control the defense of the claim. Customer may employ counsel, at its own expense, to assist in the defense of the claim. Customer shall have no authority to settle any claim on behalf of Celestica.

21.

CUSTOMER PROPERTY

11

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

21.1

All Customer Information may be used solely by Celestica as required by Celestica for the purposes of performing its obligations under this Agreement and any Orders.

21.2

All Customer Information will remain the Customer’s property and will be treated by Celestica with substantially the same care as it treats its own property of a similar nature.

21.3

Except for routine maintenance and routine calibration of Customer tooling, the costs of maintenance, calibration and repair of any Customer tooling shall at all times be the responsibility of the Customer.

22.

CONFIDENTIALITY

22.1

The parties will comply with the provisions of the Confidentiality Agreement between Iridium Satellite LLC and Celestica Corporation dated February 8, 2002, regarding the exchange of confidential information in general, and the Non-Disclosure Agreement among SE Licensing LLC, Iridium Satellite LLC, and Celestica Corporation dated April 2, 2003, regarding the “Subscriber Equipment Technical Information” as that term is defined therein.

22.2

Nothing in this Agreement gives either party a right to use the other party’s name, trade mark(s), trade name(s) or to refer to, or disclose, the existence of this Agreement or any Orders or any terms and conditions of this Agreement or any Orders, whether directly or indirectly in connection with any marketing or other activities without the other party’s prior written consent. Either party may, however, be permitted to respond generally to inquiries regarding its business provided that it will not disclose specific terms of the Agreement, except as may be required under applicable laws and regulations.

23.

FREEDOM OF ACTION

23.1

Except as expressly provided pursuant to Articles 21.2 and 22 above, this Agreement shall not prevent Celestica or its Affiliates from marketing, acquiring, or developing materials, products or services which are similar or competitive to those of the Customer. Celestica may pursue activities independently with any third party, even if similar to the activities under this Agreement.

24.

EXCLUSIONS AND LIMITATION OF LIABILITY

24.1

To the maximum extent permitted by law, under no circumstances will either party have any liability, whether in contract or for negligence or otherwise and whether related to any single event or series of connected events, and except for any obligation to pay amounts which are properly due and payable hereunder, for any of the following:

(a)

any liability in excess of:

(i)

in the case of damage to or loss of tangible property, the value of such property; and

(ii)

in any event, regarding any other liability, the total of the Prices (if any) paid by the Customer for the product(s) which is the subject of the claim or $[*] (whichever is the lesser)

(b)

any liability for any incidental, indirect or consequential damages or loss of business, loss of records or data, loss of use, loss of profits, revenue or anticipated savings or other economic loss whether or not a party was informed or was aware of the possibility of such loss; or

(c)

any third party claims, other than claims arising under Article 20, against the other party for any loss, damage, costs or expenses.

24.2

Neither party may bring an action under this Agreement more than [*] ([*]) years after the cause of action arose.

12

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

25.

TERM AND TERMINATION

25.1

This Agreement:

(a)

is effective from the Effective Date and continues for a period of three (3) years from the Effective Date unless and until terminated in accordance with this Article 25; and

(b)

will automatically renew for additional one (1) year terms after the expiration of the initial term unless either party receives from the other, at least ninety (90) days prior to the end of the initial term or any renewal term, written notice to terminate this Agreement at the end of the then current term.

25.2

Either party may terminate this Agreement by giving to the other party 180 days prior written notice at any time. In the event of termination pursuant to this Article 25.2:

(a)

termination of this Agreement will not prejudice accrued rights and liabilities (including payment of Prices for Product delivered) of either party; and

(b)

on the termination or other discharge of this Agreement Celestica will, in so far as reasonably practicable following the Customer’s request, deliver up to the Customer at the Customer’s expense and risk all Customer Information (for which, if applicable, Celestica has been paid in full) on an “as is” basis.

25.3

Either party may terminate any Order and/or this Agreement:

(a)

if the other party commits a material breach of any of the terms of this Agreement and fails to remedy the breach, or, in the event of a breach by Celestica, present a plan for a cure which is acceptable to the Customer, within thirty (30) Days of written notice requiring it to do so; or

(b)

immediately, if the other party becomes insolvent or is declared bankrupt, or if a receiver and manager, liquidator, trustee in bankruptcy or other officer with similar powers is appointed over all or a substantial part of the assets of that party, or if that party files a proposal or a notice of intention to make a proposal under the Bankruptcy and Insolvency Act or any similar law, or any equivalent event occurs under any relevant jurisdiction;

and, in any such case on termination under 25.3 (a) or (b) above, the terminating party shall have no further obligations to the other party except:

(c)

for Customer to make payment of Prices for Product delivered prior to the date of termination;

(d)

except in the event of a termination for the default of Celestica, for Customer to make payment for any Orders cancelled, in accordance with Article 8.2, In the event of a termination for the default of Celestica, Customer shall nonetheless remain responsible for any Obsolete Inventory and Excess Inventory created by such termination in accordance with section 8.1 (c)

(e)

for Celestica to, in so far as reasonably practicable following the Customer’s request, deliver up to the Customer at the Customer’s expense and risk all Customer Information (for which, if applicable, Celestica has been paid in full) on an “as is” basis; and

(f)

for Celestica to deliver all Customer-supplied, Excess and/or Obsolete Materials to Customer as soon as reasonably practicable.

25.4

For convenience termination by either party or default termination by Celestica, the terms of Article 8 “Cancellation” will apply to any Orders cancelled as a result of termination pursuant to this Article 25, and the terms of Article 17 “Excess and/or Obsolete Material” will apply to any Material rendered Excess or Obsolete by such cancellation.

25.5

For convenience termination by either party or default termination by Celestica, Celestica will be entitled at its option to perform all accepted Orders placed prior to the termination or expiration of this Agreement and the terms of this Agreement will continue to apply to such Orders.

13

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

26.

GENERAL

26.1

Resale, import and export - The Customer will comply with all applicable laws and regulations and will obtain all necessary licenses and consents for the resale, import or export of Products under the laws and regulations of any relevant jurisdiction. Celestica shall not export, directly or indirectly, any equipment, information or technical data under this Agreement to any individual or country for which the U.S. Government at the time of export requires an export license or other governmental approval without first confirming that Customer has obtained such license or approval. Customer shall use its reasonable commercial efforts to identify to Celestica the export control status of equipment, data and information it provides to Celestica.

26.2

Effective terms and precedence -

(a)

Together with Orders, the terms of this Agreement constitute the entire agreement between the parties in respect of the subject matter thereof and supersede and exclude all other representations, promises and proposals, whether oral or written.

(b)

Any standard terms and conditions set out in any Customer Order form will be without effect.

(c)

Any rights or obligations under this Agreement which by their nature continue after termination will remain in effect until they are completed.

(d)

If there is any conflict or inconsistency between the terms of any Order or other documents and the terms of this Agreement, then the terms of this Agreement will prevail over the Order or any other such document.

26.3

Severability - If any provision or any part thereof contained in any Order or this Agreement is, for any reason, held to be invalid or unenforceable in any respect under the laws of any jurisdiction where enforcement is sought, such invalidity or unenforceability will not affect any other provision of such Order or this Agreement, and such Order and this Agreement will be construed as if such invalid or unenforceable provision or part thereof had not been contained therein.

26.4

Variations - No purported variation or amendment of this Agreement or any Order will be valid unless made or confirmed in writing by a duly authorised representative of each party.

26.5

Notices - All notices must be in writing and sent by prepaid registered mail, by facsimile or by electronic mail or delivered personally to the parties at their respective addresses set out below or such other address as may be notified from time to time by the addressee to the other party. A notice shall be deemed to have been given on the date of receipt if sent by prepaid registered mail, on the date of transmission in the case of facsimile or electronic communication or on the date of delivery if it is delivered by hand.

Notices delivered to Customer shall be delivered to:

Iridium Satellite LLC

8440 South River Parkway

Tempe AZ 85284

Attention: Jim Hammant

fax 480-752-5185 

With a copy to:

Iridium Satellite LLC

6701 Democracy Blvd.

Suite 500

Bethesda, MD 20817

Attention: Chief Counsel

14

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

fax (301-571-6250)

Notices delivered to Celestica shall be delivered to:

Celestica Corporation

4300 West Round Lake Road Arden Hills MN 55112

Attention: General Manager 

Fax: 651-604-2420

With a copy to:

Celestica International Inc.

1150 Eglinton Avenue East 

Toronto, Canada

M3C 1H7

Attention: Corporate Contracts Department 

fax: 416-448-2817

26.6

Waiver - The waiver of any term, condition or provision of this Agreement must be in writing and signed by an authorized representative of the waiving party. Any such waiver will not be construed as a waiver of any other term, condition or provision except as provided in writing, nor a waiver of any subsequent breach of the same term, condition or provision.

26.7

Force majeure

(a)

Except for defaults of subcontractors at any tier, Celestica shall not be in default because of any failure to perform this contract under its terms if the failure arises from causes beyond its control and without its fault or negligence. Examples of these causes are:

(i)

acts of God or of the public enemy;

(ii)

acts of the Government in either its sovereign or contractual capacity;

(iii)

fires;

(iv)

floods;

(v)

epidemics or pandemics;

(vi)

quarantine restrictions;

(vii)

strikes;

(viii)

freight embargoes; and

(ix)

unusually severe weather.

In each instance, the failure to perform must be beyond the control and without the fault or negligence of Celestica. “Default” includes failure to make progress in the work so as to endanger performance.

If the failure to perform is caused by the failure of a subcontractor at any tier to perform or make progress, and if the cause of the failure was beyond the control of both Celestica and subcontractor, and without the fault or negligence of either, Celestica shall not be deemed to be in default.

26.8

Assignment -

(a)

Neither party may assign this Agreement or any Order or any part thereof without the written consent of the other party, such consent not to be unreasonably withheld.

(b)

The expressions “Celestica” and the “Customer” include their respective successors and permitted assigns where the context admits.

(c)

Notwithstanding Article 26.8 (a) above, and unless the non-assigning party can reasonably demonstrate that such an assignment is materially detrimental to its commercial interests, this Agreement may be 

15

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of

The Securities Exchange Act of 1934, as amended.

assigned to a third party when required as the result of a merger, acquisition, re-capitalization or other similar capital event, or other legal transfer of a party’s partial or complete assets to such third party.

26.9

Relationship of the parties - The relationship of Celestica and Customer as established under this Agreement and any Order(s) will be and at all times remain one of independent contractors, and neither party will at any time nor in any way represent itself as being a dealer, agent or other representative of the other party or as having authority to assume or create obligations or otherwise act in any manner on behalf of the other party.

26.10

Headings - The headings in this Agreement are inserted for convenience only and do not constitute a part of any agreement nor are they to be referred to in its interpretation.

26.11

Governing law - This Agreement and all transactions under it will be governed by the laws of the State of Delaware, USA exclusive of any provisions of the United Nations Convention on the International Sale of Goods and without regard to principles of conflict of laws. The parties submit to the non-exclusive jurisdiction of the courts of Delaware, USA.

26.12

Socioeconomic Requirements - During the performance of this Agreement, Celestica agrees to comply with all Federal, State and local laws concerning discrimination in employment and non-segregation of facilities including, but not limited to, the requirements of Executive Order 11246 (41 CFR 60-1.4), Section 503 of the Rehabilitation Act of 1973 (41 CFR 60-741.4), and the Vietnam Era Veteran’s Readjustment Assistance Act of 1974 (41 CFR 60-250.4).

AGREED TO BY THE DULY AUTHORIZED REPRESENTATIVES OF THE PARTIES AS OF THE DATE FIRST SET FORTH ABOVE:

  /s/ James E.Hamarit                                                   

  /s/ Peter Lindgren                                                     

Signed by:

Signed by:

James E.Hamarit                                                           

Peter Lindgren                                                            

Name:

Name:

VP, Production & Distribution                                   

SVP                                                                               

Title:

Title:

April 19, 2007                                                               

April 13, 2007                                                               

Date:

Date:

16Convertible Note

Exhibit 10.10

Execution Copy

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR TRANSFERRED ABSENT SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND APPLICABLE STATE LAWS.  

THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR UNITED STATES FEDERAL INCOME TAX PURPOSES.  UPON REQUEST, THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO A HOLDER OF THIS NOTE INFORMATION REGARDING THE ISSUE PRICE, THE AMOUNT OF OID, THE ISSUE DATE AND THE YIELD TO MATURITY OF THIS NOTE.  HOLDER SHOULD CONTACT THE CHIEF FINANCIAL OFFICER AT IRIDIUM HOLDINGS LLC, 6707 DEMOCRACY BLVD, SUITE 300, BETHESDA, MARYLAND 20817.

IRIDIUM HOLDINGS LLC

CONVERTIBLE SUBORDINATED PROMISSORY NOTE

		
	 
	 

	U.S. $22,900,000

	October 24, 2008

	 
	 

FOR VALUE RECEIVED, Iridium Holdings LLC, a Delaware limited liability company (the “Company”), promises to pay to Greenhill & Co. Europe Holdings Limited, an English corporation (“Greenhill”), or its registered assigns, the principal amount of twenty-two million nine hundred thousand dollars (U.S. $22,900,000), on the Maturity Date, together with accrued interest at the Interest Rate (as defined below), such interest to accrue until the unpaid principal balance is paid in full.  All unpaid principal of this Note, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due and payable on the seventh anniversary of the date hereof (the “Maturity Date”).

The following is a statement of the rights of the Holder and the conditions to which this Note is subject, and to which the Holder, by the acceptance of this Note and the Company, by the issuance of this Note, agree:

1.

Definitions. 

As used in this Note, the following capitalized terms have the following meanings:

(a)

“Additional Common Units” shall mean all Common Units issued (or, pursuant to Section 8(e), Section 8(h) or Section 8(i), deemed to be issued) by the Company after the Original Issue Date, other than

(i)

Common Units issued (A) pursuant to any bona fide acquisition of assets or operating business by the Company or any bona fide merger or business combination involving the acquisition by the Company of assets or operating business which has been approved by its Board of Directors; provided that any such transaction is at arms-length terms, (B) in connection with any pro rata distribution or split of Common Units in respect of which adjustment has been made pursuant to Section 8(g), (C) to financial institutions or commercial lenders in connection with commercial credit 

arrangements, equipment financings or similar transactions, or (D) for commercial reasons and not capital-raising reasons, to potential or existing trade partners or service providers providing trade enabling services; provided that the aggregate Fair Market Value, in each case as determined at the time of issuance, of all Common Units issued pursuant to clauses (C) and (D) hereof may not exceed $15 million;

(ii)

up to30,000 Common Units (including any such Common Units which are repurchased) issued pursuant to the Company’s equity incentive plans; and 

(iii)

Common Units issued in connection with any event for which adjustment is made pursuant to Section 8(h) hereof.

(b)

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control of such Person.

(c)

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized by law to close.

(d)

“Change of Control” means the acquisition, directly or indirectly, by any Person who as of the date hereof does not control at least 25% of the Common Units, of the beneficial ownership (as defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934) in the Common Units representing more than 50% of all outstanding Common Units at such time.

(e)

“Class A Units” shall have the meaning set forth in the LLC Agreement.

(f)

“Class B Units” shall have the meaning set forth in the LLC Agreement.

(g)

“Common Units” or “Units” shall mean either (i) Class A Units or Class B Units or (ii) both Class A Units and Class B Units taken together.

(h)

“Conversion Date” shall have the meaning set forth in Section 8(d)(i).

(i)

“Convertible Securities” shall mean any evidences of indebtedness, shares of capital stock or other securities directly or indirectly convertible into or exchangeable for Common Units (other than the Note and the Common Units).

(j)

“Event of Default” has the meaning given in Section 5 hereof.

(k)

“Fair Market Value” as of any date means the fair market value as of such date as determined in good faith by the Board of Directors; provided that if the Holder objects to such determination, the Board of Directors shall retain an independent appraiser of national reputation reasonably satisfactory to the Holder in order to determine such fair market value, and such appraiser’s determination of the fair market value shall be binding hereunder (and the fees and expenses of such appraiser shall be borne equally by the Company and the Holder). 

(l)

“Holder” means Greenhill and any other Person or Persons who shall at the time be the registered holder of this Note. 

(m)

“Initial Public Offering” means any offering of the common equity securities of the Company (or its successor) to the public which results in net proceeds of at least $100 million pursuant to an effective registration statement under the Securities Act of 1933, as then in effect. 

2

(n)

“Interest Rate” means 0% initially and, six months after the issuance date, 5% per annum.

(o)

“LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of Iridium Holdings LLC. 

(p)

“Lien” means with respect to any property or asset, any mortgage, lien, pledge, charge, security interest, encumbrance or other adverse claim of any kind in respect of such property or asset.

(q)

“Note Payment Amount” means, as of any Business Day, with respect to this Note, the aggregate unpaid Principal Amount outstanding plus the aggregate amount of accrued but unpaid interest with respect to the Note.

(r)

“Note Purchase Agreement” means the note purchase agreement among the Company and Greenhill dated as of September 22, 2008.

(s)

“Options” mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Units or Convertible Securities.

(t)

“Original Issue Date” shall mean the date of the issuance of this Note.

(u)

“Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

(v)

“Principal Amount” means $22,900,000. 

(w)

“Termination Event” shall mean the termination of the Transaction Agreement pursuant to the terms thereof.

(x)

“Transaction Agreement” means the Transaction Agreement dated as of September 22, 2008 among the Company, GHL Acquisition Corp. and certain other parties.

2.

Interest.  Interest shall be calculated on the principal amount and accrue at a rate per annum equal to the Interest Rate, compounded quarterly and computed on the basis of the actual number of days elapsed and a year of 365 days.  Interest will not be paid until the date the Note is repaid or redeemed as provided in Section 3(a) or Section 7, as applicable.

3.

Payment.

(a)

Payment of the Note.  Subject to earlier conversion or repayment thereof pursuant to Section 7 or Section 8 hereof, the outstanding principal and all accrued interest on this Note shall be due and payable in full on the Maturity Date.  This Note will not be prepayable at the option of the Company.

(b)

Method of Payments.

(i)

Except to the extent otherwise provided herein, each payment by the Company of principal and interest owing under this Note shall be made in dollars in immediately available funds, without deduction, set-off or counterclaim, not later than 2:00 p.m. New York City Time 

3

on the date on which such payment shall become due by wire transfer to such account(s) as the Holder may notify the Company in writing.

(ii)

Notwithstanding anything to the contrary contained herein, if any due date under this Note would otherwise fall on a day that is not a Business Day, such date shall be extended to the next succeeding Business Day, and interest shall be payable for any principal so extended for the period of such extension.

4.

Notice of Defaults.  Promptly upon (but in no event later than three (3) Business Days after) the occurrence thereof, the Company will provide the Holder written notice of the occurrence of (i) any Event of Default hereunder or (ii) any event or circumstance which, with the giving of notice, passage of time, or both, will constitute an Event of Default.

5.

Events of Default and Right to Cure.  The occurrence of any of the following shall constitute an “Event of Default” under this Note:

(a)

Failure to Pay Principal or Interest. The Company fails to make a payment, when due, of any principal or interest due on this Note and, in the case of interest, such default continues for a period of ten (10) days.

(b)

Breach of Covenants or Agreements. Any material breach by the Company of any provision this Note, and such default continues for a period of ten (10) days. 

(c)

Voluntary Bankruptcy or Insolvency Proceedings.  The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, or (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it.

(d)

Involuntary Bankruptcy or Insolvency Proceedings.  Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of its property, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within 30 days of commencement. 

6.

Rights of Holder upon Default.  If any Event of Default occurs, the Holder, by written notice to the Company with respect to the Event of Default specified in Section 5(a) or Section 5(b) and without any notice with respect to the Event of Default specified in Section 5(c) or Section 5(d), may:

(a)

declare the entire unpaid principal of the Note and accrued interest thereon due and payable and such principal and accrued interest shall thereupon become due and payable without presentment, notice, protest or demand of any kind (all of which are expressly waived by the Company); and 

(b)

take all actions available to them, at law or in equity, to collect or otherwise enforce the Note. 

4

7.

Redemption.  (a)  In the event of a Change of Control, the Holder of this Note may demand, at its option, that the Company redeem the Note in full for the Note Payment Amount outstanding on the date of such Change of Control. 

(b)

In the event of a Termination Event, after January 31, 2013, the Holder may require, at its option, that the Company redeem the Note in full for the Note Payment Amount (as of such date).

(c)

Any redemption payment pursuant to paragraph (a) or (b) above shall be made within five Business Days of a written notice from the Holder demanding redemption, in each case against delivery of this Note.  

8.

Conversion.

(a)

Optional Conversion.  Subject to the terms and conditions of this Section 8, upon the later of (x) the first anniversary hereof and (y) the earlier of the occurrence of a Termination Event or the closing of the transactions contemplated by the Transaction Agreement (if notice of exercise of the right to convert is given not less than one Business Day before such closing), the Holder shall have the right, at any time and from time to time, at the Holder’s option, to convert all of this Note into a number of Class A Units of the Company equal to the Note Payment Amount (as of the date of such conversion) divided by the Conversion Price.

(b)

Termination of Optional Conversion.  Unless the Holder has exercised its right under Section 8(a) immediately prior to the earlier of (i) the closing of the transactions contemplated by the Transaction Agreement (unless notice of exercise of the right to convert has been given in accordance with Section 8(a)) or (ii) the closing of an Initial Public Offering, then the right to convert set forth in this Section 8 shall irrevocably terminate and the Company shall have, for a period of ten (10) Business Days following the date of such closing, the right to redeem, in its sole discretion, the Note at a price equal to the Principal Amount plus any accrued interest on the Note incurred up and until the date of such redemption; provided, in each case, that if the Holder did not have the right to exercise such conversion as a result of the operation of clause (x) of Section 8(a), then the “closing” of transactions described in clauses (i) and (ii) above shall be deemed replaced by “the fifth Business Day following the first anniversary hereof.”

(c)

Conversion Price.  The initial conversion price (as adjusted from time to time, the “Conversion Price”) shall be $272.87.

(d)

Adjustment of Conversion Prices Upon Issuance of Additional Common Units.  In the event that after the Original Issue Date the Company shall issue Additional Common Units for a consideration per Unit (determined pursuant to Section 8(f)) less than the Conversion Price in effect immediately prior to such issue, then and in such event, the Conversion Price shall be reduced, concurrently with such issue, to a price equal to the consideration per Unit (determined pursuant to Section 8(f)) received by the Company for the issue of such Additional Common Units.

(e)

Deemed Issue of Additional Common Units.  In the event the Company at any time or from time to time after the Original Issue Date shall issue any Options or Convertible Securities or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then, if the Common Units issuable upon exercise and conversion thereof would constitute Additional Common Units, the Common Units issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Common Units issued as of the time of 

5

such issue or, in case such a record date shall have been fixed, as of the close of business on such record date, provided that, with respect to the Conversion Price, Additional Common Units shall not be deemed to have been issued unless the consideration per Common Unit (determined pursuant to Section 8(f) hereof) of such Additional Common Units would be less than the Conversion Price immediately prior to such issue, or such record date, as the case may be, and provided further that in any such case in which Additional Common Units are deemed to be issued:

(i)

no further adjustment in the Conversion Price shall be made upon the subsequent issue of Convertible Securities or Common Units upon the exercise of such Options or conversion or exchange of such Convertible Securities;

(ii)

if such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any increase or decrease in the consideration payable to the Company, or increase or decrease in the number of Common Units issuable, upon the exercise, conversion or exchange thereof, the Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease becoming effective, be recomputed to reflect such increase or decrease insofar as it affects such Options or the rights of conversion or exchange under such Convertible Securities;

(iii)

upon the expiration of any such Options or any rights of conversion or exchange under such Convertible Securities which shall not have been exercised, the Conversion Price computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, shall, upon such expiration, be recomputed as if:

(A)

in the case of Convertible Securities or Options for Common Units, the only Additional Common Units issued were Common Units, if any, actually issued upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the consideration received therefor was the consideration actually received by the Company for the issue of all such Options, whether or not exercised, plus the consideration actually received by the Company upon such exercise, or for the issue of all such Convertible Securities which were actually converted or exchanged, plus the additional consideration, if any, actually received by the Company upon such conversion or exchange, and

(B)

in the case of Options for Convertible Securities, the only Additional Common Units issued were the Convertible Securities, if any, actually issued upon the exercise thereof were issued at the time of issue of such Options, and the consideration received by the Company for the Additional Common Units deemed to have been then issued was the consideration actually received by the Company for the issue of all such Options, whether or not exercised, plus the consideration deemed to have been received by the Company upon the issue of the Convertible Securities with respect to which such Options were actually exercised; and

(iv)

no readjustment pursuant to Section 8(e)(ii) or Section 8(e)(iii) above shall have the effect of increasing the Conversion Price to an amount which exceeds the Conversion Price existing immediately prior to the original adjustment with respect to the issuance of such Options or  Convertible Securities, as adjusted for any Additional Common Units issued (or pursuant to Section 8(e), deemed to be issued) between such original adjustment date and such readjustment date.

(f)

Determination of Consideration.  For purposes of this Section 8, the consideration received by the Company for the issue of any Additional Common Units shall be computed as follows:

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(i)

Cash and Property.  Except as provided in clause (ii) below, such consideration shall:

(A)

insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company in United States dollars;

(B)

insofar as it consists of property other than cash, be computed at the Fair Market Value thereof at the time of such issue; and

(C)

in the event Additional Common Units are issued together with other Units or securities or other assets of the Company for consideration which covers both, the proportion of such consideration so received with respect to such Additional Common Units, be computed as provided in clauses (A) and (B) above.

(ii)

Options and Convertible Securities.  The consideration per Unit received by the Company for Additional Common Units deemed to have been issued pursuant to Section 8(e), relating to Options and Convertible Securities, shall be determined by dividing

(x)

the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities by;

(y)

the maximum number of Common Units (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities.

(g)

Adjustments for Dividends, Subdivisions, Combinations or Consolidations of Common Units.  In the event the outstanding Common Units shall be subdivided (by dividend, split, or otherwise), into a greater number of Common Units, the Conversion Price shall, concurrently with the effectiveness of such subdivision, be proportionately decreased.  In the event the outstanding Common Units shall be combined or consolidated, by reclassification or otherwise, into a lesser number of Common Units, the Conversion Price shall, concurrently with the effectiveness of such combination or consolidation, be proportionately increased.

(h)

Adjustments for Distributions.  In the event the Company at any time or from time to time makes, or sets a record date for the determination of holders of Common Units entitled to receive, any distribution payable in cash, property, or securities of the Company other than Common Units (a “Distribution”), then in each such event provision shall be made so that the Holder shall receive upon conversion of this Note, in addition to the number of Class A Units receivable thereupon pursuant to the other provisions of this Section 8, an additional number of Class A Units determined based on the following formula (rounded upwards to the nearest whole number of Units): 

		
	Additional Number of Class A Units =

	Hypothetical Distribution

	Common Unit Value

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The “Hypothetical Distribution” with respect to any Distribution means the hypothetical amount the Holder would have received if this Note had been converted into Class A Units immediately prior to such Distribution (“Hypothetical Conversion”) and the Company had distributed to the Holder the same amount per Unit as it actually distributed pursuant to such Distribution (taking into account, for the avoidance of doubt, any such Additional Class A Units the Holder would receive upon the Hypothetical Conversion in respect of any prior Distribution).  Insofar as a Distribution consists of property other than cash, the amount of such Distribution shall be the Fair Market Value thereof at the time of such Distribution.  The Common Unit Value shall equal the aggregate Fair Market Value of Common Units outstanding immediately prior to such Distribution divided by the number of Common Units outstanding immediately prior to such Distribution.  Notwithstanding the foregoing, adjustment pursuant to this Section 8(h) shall not apply to the first $37,900,000 of cash distributions made by the Company on or after September 22, 2008.

(i)

 Adjustments for Repurchases of Common Units.  In the event that on or after September 22, 2008, the Company shall repurchase Common Units from any Person (other than Common Units not exceeding 10,000 in the aggregate from a former employee of the Company) for a consideration per Unit (determined pursuant to Section 8(f)) greater than the Fair Market Value of such Unit at the time of such repurchase, then, concurrently with such issue, provision shall be made so that the Holder shall receive upon conversion of this Note, in addition to the number of Class A Units receivable thereupon pursuant to the other provisions of this Section 8, an additional amount of Class A Units determined on the basis of Section 8(h) as if the Hypothetical Distribution thereunder was equal to the excess of consideration per Common Unit paid in such repurchase over the Fair Market Value of such Unit.  If the Company has given the Holder 30 days advance written notice of the proposed repurchase and the proposed consideration and the Holder has not objected to such proposed consideration, then such proposed consideration shall be deemed to equal Fair Market Value for purposes of this Section 8(i). 

(j)

Adjustments for Reclassification, Exchange and Substitution.  If the Common Units issuable upon conversion of the Note shall be changed into the same or a different number of Units of any other class or classes of units or other securities or property, whether by merger, consolidation, statutory share exchange, recapitalization, capital reorganization, reclassification or otherwise (other than a subdivision or combination of Units provided for above), then and in each such event the Holder shall have the right thereafter to convert the Note into the kind and amount of units and other securities and property receivable upon such merger, consolidation, statutory share exchange, recapitalization, reorganization or reclassification or other change by the holders of Common Units that would have been subject to receipt by the Holder upon conversion of the Note immediately before that change, all subject to further adjustment as provided herein.

(k)

Conversion Procedure. 

(i)

 In order to exercise the conversion privilege, the Holder of the Note to be converted shall surrender the Note, with a written notice to the Company that such Holder elects to exercise its conversion privilege.  The date of receipt of the Note by the Company or the conversion pursuant to Section 8(b) shall be the conversion date (the “Conversion Date”). 

(ii)

As promptly as practicable (but no later than five Business Days) after the Conversion Date, the Company shall issue and shall deliver to such Holder a certificate or certificates for the whole number of Class A Units of the Company issuable upon the conversion of the Note in accordance with the provisions of this Section 8 (or other evidence of the issuance thereof). 

(iii)

Each conversion shall be deemed to have been effected immediately prior to the close of business on the date on which the Note to be converted shall have been surrendered, 

8

and the person in whose name or names any certificate or certificates for Class A Units shall be issuable upon such conversion shall be deemed to have become the holder of record of the Class A Units represented thereby on such date and such conversion shall be into a number of Class A Units resulting from applying the Conversion Price in effect at such time on such date.  All Class A Units delivered upon conversion of this Note will upon delivery be duly and validly issued and fully paid and non-assessable, free and clear of all Liens and charges and not subject to any preemptive rights.  Upon the surrender of the Note for conversion, the Note shall no longer be deemed to be outstanding and all rights of the Holder with respect to the Note so converted including the rights, if any, to receive interest, notices and consent rights shall immediately terminate on the Conversion Date except the right to receive the Class A Units.  The Note so converted shall be retired and cancelled.

(iv)

The Company covenants that it will at all times during which the Note shall be outstanding reserve and keep available, such number of its authorized but unissued Class A Units as shall from time to time be required for the purpose of effecting conversion of this Note.

(v)

Prior to the delivery of any securities that the Company shall be obligated to deliver upon conversion of the Note, the Company shall comply with all applicable federal and state laws and regulations which require action to be taken by the Company.

(vi)

The Company will pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of Class A Units on conversion of the Note pursuant hereto; provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue or delivery of Class A Units in a name other than that of the Holder and no such issue or delivery shall be made unless and until the person requesting such issue or delivery has paid to the Company the amount of any such tax or has established, to the satisfaction of the Company, that such tax has been paid. 

(vii)

All calculations under this Section 8 shall be made to the nearest four decimal points. 

(viii)

No fractional units shall be issued upon conversion of the Note.  In lieu of any fractional units to which the Holder would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the Conversion Price. 

(ix)

Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this Section 8, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based and shall file a copy of such certificate with its corporate records. The Company shall, upon the reasonable written request of the Holder, furnish or cause to be furnished to the Holder a similar certificate setting forth (i) such adjustments and readjustments, (ii) the Conversion Price then in effect, and (iii) the number of Class A Units which then would be received upon the conversion of the Note.  Despite such adjustment or readjustment, the form of the Note, if the same shall reflect the initial or any subsequent Conversion Price, need not be changed in order for the adjustments or readjustments to be valid in accordance with the provisions of this Note, which shall control. 

(x)

The Company will not, by amendment of the LLC Agreement or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue of sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Section 8 and in the taking of all such action as may be necessary or 

9

appropriate in order to protect the conversion rights of the Holder against impairment to the extent required hereunder. Any successor entity to the Company, whether by means of merger, purchase or operation of law, shall, and the Company shall cause such successor to, be bound by all of the terms and provisions of this Note, including but not limited to the provisions of this Section 8.

9.

Transfer.  This Note may be transferred by the Holder in whole but not in part; provided that the transferring Holder (i) shall comply with the right of first refusal provisions set forth in Section 7.3 of the LLC Agreement and (ii) shall comply with restrictions on transfer to a foreign person set forth in Section 7.1 of the LLC Agreement (in each case applied on an as-converted basis). 

10.

Board; LLC Rights.  Prior to the Termination Event, the Holder shall be entitled to appoint one non-voting observer to the Company’s Board of Directors.  After the Termination Event, the Holder shall be entitled to appoint one director to the Company’s Board of Directors who shall be entitled to cast two (2) votes; provided that if an Event of Default is in effect, such director shall be entitled to cast twice the number of votes to which it is otherwise entitled.  The Holder shall have the same right of first offer, registration rights and information rights pursuant to the LLC Agreement as are now or hereinafter in effect as if this Note had been converted into Class A Units at such time. 

11.

Subordination; Pre-payment.  The Holder agrees that the payment in cash of the Principal Amount of and interest on this Note by the Company shall be subordinated, and junior in right of payment, to the prior payment in full of all of the Company’s existing and future indebtedness. The Holder hereby agrees to the subordination provisions set forth on Exhibit A hereto (and any other subordination provisions which may be reasonably requested by any existing holder of indebtedness of the Company which are no more adverse to the Holder than the terms and conditions hereof).  If in connection with any potential future indebtedness which the Company wishes to incur the Holder does not execute any subordination provisions reasonably requested by the prospective holder of such indebtedness and consistent with the subordination provisions described in the preceding sentence, then the Company shall be permitted to prepay the Note in full by paying the Note Payment Amount to the Holder in cash.  For the avoidance of doubt, nothing in this Note is intended to limit the amount or the terms and conditions of any indebtedness of the Company which may be outstanding from time to time if the Transaction Agreement is terminated.

12.

Waiver and Amendment.  Any provision of this Note (including an Event of Default) may be amended, waived or modified only with the written consent of the Company and the Holder.

13.

Notices.  All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by telecopy or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service and shall be deemed given when so delivered by hand or telecopied (with oral confirmation of receipt), or if mailed, three days after mailing (one Business Day in the case of express mail or overnight courier service), as follows:

if to the Company,

Iridium Holdings LLC

6707 Democracy Blvd, Suite 300

Bethesda, MD  20817

Attention:  John Brunette

Facsimile:  (301) 571-6285

with a copy to:

10

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attention:  Edward J. Chung, Esq.

Facsimile:  (212) 455-2502

if to the Holder,

Greenhill & Co. Europe Holdings Limited

c/o Greenhill & Co., Inc.

300 Park Avenue

New York, NY 10022

Attention:  Jodi Ganz

Facsimile: (212) 389-1761

with a copy to:

Davis Polk & Wardwell

450 Lexington Avenue

New York, NY 10017

Attention: Leonard Kreynin, Esq.

Facsimile:  (212) 450-3800

14.

Usury.  In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

15.

No Amendment of LLC Agreement. The LLC Agreement shall not be amended in a manner adverse, directly or indirectly, to the Holder without the prior written consent of the Holder. 

16.

No Recourse Against Others  No director, officer, employee, unit holder or affiliate of the Company shall have any liability for any obligations of the Company under this Note. 

17.

Invalidity. In the event any one or more of the provisions of the Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of the Note operates or would prospectively operate to invalidate the Note, then and in either of those events, such provision or provisions only shall be deemed null and void and shall not affect any other provision of the Note and the remaining provisions of the Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced and disturbed thereby.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Note or affecting the validity or enforceability of such provision in any other jurisdiction

18.

Governing Law.  This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of laws rules of such state that would require the application of the laws of a different jurisdiction.

11

19.

Jurisdiction.  The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may only be brought in any federal court located in the State of Delaware or any Delaware state court, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.

20.

Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

[SIGNATURE PAGE FOLLOWS]

12

IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first written above.

IRIDIUM HOLDINGS LLC.

By:

  /s/ Matthew J. Desch                            

  Name:

Matthew J. Desch

  Title:

Chief Executive Officer

[SIGNATURE PAGE TO CONVERTIBLE SUBORDINATED PROMISSORY NOTE]

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