Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.5    
    

 
 

CONFIDENTIAL TREATMENT    
    

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

 
 

STARSEM LAUNCH SERVICES  
    
    AGREEMENT FOR THE LAUNCH
  OF THE
  GLOBALSTAR LLC SPARE SATELLITES
  BY THE
  SOYUZ LAUNCH SYSTEM    
    
    ONE FIRM AND ONE OPTIONAL
LAUNCH SERVICES    
    

   DISTRIBUTION LIST  

	COMPANY
 
	 	Name
	 	Direction—Department

	STARSEM	 	 	 	DE
	 	 	 	 	DT
	

 	
 	

 	
 	

DC
	

 	
 	

 	
 	

DF
	GLOBALSTAR	 	 	 	 

CHANGES  

	Issue
 
	 	Date
	 	Changes description

	01	 	09/01/05	 	Issue 1—Initial release of the document

2

 
SIGNATURES FOR APPROVAL  

	GLOBALSTAR Signature

	Name: P. ROSATI

Position: Contracts Manager

Date: 21 September 2005

Signature: /s/  PAUL ROSATI      	 	Name: M. FITZGERALD

Position: Senior Vice-President Strategic

               Initiatives and Space Operations

Date: 21 September 2005

Signature: /s/  MEGAN FITZGERALD      

   

	STARSEM

	Written by:
	 	Verified by:

	Name: C. TRASSY

Position: Legal Counsel

Date: 15 September 2005

Signature: /s/  C. TRASSY      	 	Name: M. GROSHEITSCH

Position: Vice President—Missions

Date: 15 September 2005

Signature: /s/  M. GROSHEITSCH      
	
Quality:
	
 	

Approved by:

	Name: J-Y MOALIC

Position: Quality Manager

Date: 15 September 2005

Signature: /s/  J-Y MOALIC      	 	Name: C. RISING

Position: Deputy Vice-President

Sales and Marketing

Date: 15 September 2005

Signature: /s/  CARL D. RISING      

3

 
LAUNCH SERVICES AGREEMENT  

This
Launch Services Agreement is entered into 

BY
AND BETWEEN 

GLOBALSTAR LLC a Delaware limited liability company with principal offices located at 461 South Milpitas Blvd, Milpitas, CA 95035, U.S.A. hereinafter
referred to as "GLLC", 

ON
THE ONE HAND, 

AND

STARSEM, a company organized under the laws of France with principal offices located at 2, rue François Truffaut, 91042 Evry Cedex,
France, hereinafter referred to as "STARSEM", 

ON
THE OTHER HAND, 

4

   CONTENTS  

SECTION A

TERMS AND CONDITIONS  

	 
	 
	 	Pages

	ARTICLE 1	DEFINITIONS	 	7
	

ARTICLE 2	

SUBJECT OF THE AGREEMENT	
 	

10
	

ARTICLE 3	

CONTRACTUAL DOCUMENTS	
 	

10
	

ARTICLE 4	

STARSEM SERVICES	
 	

11
	

ARTICLE 5	

GLLC'S TECHNICAL COMMITMENTS	
 	

11
	

ARTICLE 6	

LAUNCH SCHEDULE	
 	

12
	

ARTICLE 7	

COORDINATION BETWEEN STARSEM AND GLLC	
 	

12
	

ARTICLE 8	

REMUNERATION	
 	

13
	

ARTICLE 9	

PRICE ESCALATION FORMULA	
 	

14
	

ARTICLE 10	

PAYMENT FOR SERVICES	
 	

14
	

ARTICLE 11	

LAUNCH SCHEDULE ADJUSTMENT	
 	

16
	

ARTICLE 12	

RIGHT OF OWNERSHIP AND CUSTODY	
 	

18
	

ARTICLE 13	

LAUNCH RISK GUARANTEE	
 	

19
	

ARTICLE 14	

ALLOCATION OF POTENTIAL LIABILITIES AND RISKS	
 	

20
	

ARTICLE 15	

INSURANCE	
 	

23
	

ARTICLE 16	

OWNERSHIP OF DOCUMENTS AND WRITTEN INFORMATION/ CONFIDENTIALITY / PUBLIC STATEMENTS	
 	

23
	

ARTICLE 17	

PERMITS AND AUTHORIZATIONS	
 	

24
	

ARTICLE 18	

TERMINATION BY GLLC	
 	

25
	

ARTICLE 19	

TERMINATION BY STARSEM	
 	

26
	

ARTICLE 20	

MISCELLANEOUS	
 	

27
	

ARTICLE 21	

APPLICABLE LAW	
 	

28
	

ARTICLE 22	

ARBITRATION	
 	

28
	

ARTICLE 23	

EFFECTIVE DATE	
 	

28

SECTION B

APPENDICES  

	APPENDIX 1	STATEMENT OF WORK (SOW)—ST-GLS-SOW-01
	

APPENDIX 2	

INTERFACE CONTROL DOCUMENT (ICD)—ST-GLS-ICD-01

5

   SECTION A  

 TERMS AND CONDITIONS  

6

 

ARTICLE 1    DEFINITIONS  

        In this Agreement the terms set forth hereafter shall have the meaning given in this ARTICLE: 

        Additional Service(s) means those supplementary services defined in Appendix 1 - §7.10 to this Agreement and presented
in Appendix 6 to the SOW. 

        Agreement means this Agreement as defined in ARTICLE 3 of this document. 

        Ancillary Equipment means all equipment, devices and software to be provided by GLLC and/or its Associates on the Launch Site in order to
make the Satellite(s) ready for Launch. 

        Associate(s) means all individuals or legal entities, organized under public or private law, who shall act, directly or indirectly, on
behalf or at the direction of either Party to this Agreement to fulfill the obligations undertaken by such Party in this Agreement, including, without limitation, the employees, officer agent of each
of the Parties, their respective suppliers, contractors and sub-contractors at any tier. In the case of STARSEM, Associates shall include, without
limitation, EADS, RUSSIAN FEDERAL SPACE AGENCY, ARIANESPACE, SAMARA SPACE CENTER and in the case of GLLC, Associates shall include, without limitation, SPACE SYSTEMS LORAL and ALENIA SPAZIO. 

        For
the purpose of the definition of Third Party and ARTICLE 14: 

        a)    Any
individual or legal entity governed by private or public law that has directed STARSEM to proceed with the Launch Services or has any interest in the Launch Services,
including, without limitation, a legal interest in the Launch Vehicle(s), shall be deemed to be an Associate of STARSEM. 

        b)    Any
individual or legal entity governed by private or public law that has directed GLLC to proceed with the procurement of Launch Services or has any interest in the
Satellite(s) to be launched, including, without limitation, insurers, any person or entity to whom GLLC has sold or leased, directly or indirectly, or otherwise agreed to provide any portion of the
Satellite(s) or Satellite(s) services, shall be treated to be an Associate of GLLC. 

Notwithstanding
the above-mentioned definition, the Parties understand that individual users (or final users) of the GLLC services shall not be considered "Associates". 

        Base Rate means CHASE MANHATTAN prime rate plus THREE percent (3%). 

        Commercial Insurance Market means the providers of insurance or reinsurance for space related risks on a regular basis that are not
affiliated with or controlled directly or indirectly by GLLC. 

        Customer property means any property GLLC and/or its Associates use for Launch including the Satellite(s) and its/their Ancillary
Equipment. 

        Deviation means non-compliance with the Interface Control Document (ICD) specifications (including its reference documents,
applicable documents and appendices) with respect to the performance of the Launcher(s), and/or the environmental conditions undergone by the Satellite(s) during the period from the instant when the
Launch(es) occurred until Satellite(s) separation, as evaluated on the basis of telemetry data received from the Launcher(s) and data recorded by active position-plotting and tracking facilities
during and after Launch Mission(s). 

        Effective Date of Contract (EDC) date of signature of this Agreement, duly executed as set forth in ARTICLE 23. 

        Events of Force Majeure means events such as but not limited to explosions, fires, earthquakes, floods, bad weather and other Acts of God,
wars, whether or not declared, social uprisings, strikes, 

7

 

lock-outs
and other labor problems, governmental or administrative measures, and all other events beyond the reasonable control of the Parties or their Associates that impede the execution
of the obligations of the Parties or their Associates and including, but without limitation, the accomplishment of the Launch(es) within the Launch Period, Slot, Day or at Launch Time, provided such
difficulties may not be overcome using efforts which may reasonably be expected of the Parties and/or their Associates under the circumstances. For clarification purposes, it is hereby stated that in
the absence of a general US Department of State decision concerning STARSEM, STARSEM Sub-contractors, France, Russia, Kazakhstan pr launches from Baikonur, neither the failure to obtain an
ITAR License, or the temporary suspension of an ITAR license or the definitive annulment of an ITAR License by the U.S. Department of State shall be considered as an Event of Force Majeure. 

        Within
FOURTEEN (14) days of learning of the occurrence of an Event of Force Majeure, the affected Party shall promptly notify the other Party of such occurrence and within FOURTEEN (14)
days thereafter shall send the other Party another notice stating the date, nature, extent, and anticipated consequences of the occurrence. In addition the Party suffering the Force Majeure Event
shall notify the other Party the end of the Force Majeure Event within EIGHT (8) days after such occurrence. 

        Firm Launch Services means the single Launch Service corresponding to 1 (one) Launch ordered by GLLC at the date of execution of this
Agreement. 

        L0 means the first day of the Launch Period, initially agreed upon at T0 

        L1 means the first day of the Launch Period agreed upon at T1 

        L means the actual Launch Day. 

        L* means L1 if no postponement has been requested by STARSEM or otherwise the date obtained by adding to L1the
aggregate duration of Launch Period or Launch Slot postponement(s) requested by STARSEM after T1 for such Launch pursuant to Paragraph 11.3 of ARTICLE 11 of this Agreement,
including the aggregate duration of postponements caused by Events of Force Majeure and / or a delay to obtain an ITAR license in due time. 

        Launch or Launching means the disconnection of the lift-off plug of the Launch Vehicle, if such event follows the intentional
ignition of the first (strap-on boosters) and second (core stage) stage liquid engines of the Launch Vehicle. 

        Launch Attempt or Launch Abort means the launch operations of a Launch Vehicle that has been integrated with the Satellite(s) supplied by
GLLC upon the ignition of at least one of the first stage (strap-on boosters) or second stage (core stage) liquid engines without the Launch occurring. 

        Launch Site means the Baikonur Space Center (BSC) in Baikonur, Republic of Kazakhstan, including all its facilities and equipment. 

        Launch Campaign means the period beginning at the arrival of the Satellite(s) to the Launch Site and ending at the moment of departure of
GLLC's and/or its Associate's ground equipment. 

        Launch Day or Day means a calendar day (established for the Launch pursuant to this Agreement) within the Launch Slot during which the
Launch is scheduled to occur. 

        Launch Opportunity means the availability to GLLC within a Launch Period or Launch Slot of a Launch on a Soyuz Launch Vehicle of the GLLC
Satellite(s). Such availability is linked to the time required to complete the mission analysis studies and to select the Launch Vehicle/Satellite(s)configuration. 

8

 

        Launch Period or Period means a period of THREE (3) consecutive months. 

        Launch Services means the services to be provided by STARSEM as defined herein and in Appendix 1 and Appendix 2 to this
Agreement. 

        Launch Slot or Slot means a period of 30 consecutive days within a Launch Period such that, where possible, each of its days is a Launch
Day. 

        Launch Time means the time that Launch is scheduled to take place, defined in hours, minutes and seconds (GMT Universal Time). 

        Launch Vehicle or Launcher means a Soyuz vehicle to perform the Launch Mission including the Satellite(s) dispenser as defined in
Appendix 1 to this Agreement. 

        Launch Vehicle Mission or Launch Mission means the mission assigned to the Launch Vehicle as defined in Appendix 1 and
Appendix 2 to this Agreement. 

        Loss Quantum means the degradation factor of the Satellite(s) as defined by the LRG and by the Satellite(s) launch and
in-orbit insurance policies taken by STARSEM. The provisional Loss Quantum to be defined in the insurance policy when subscribed would be 75%. 

        OL0 means the first day of the Optional Launch Period, initially agreed upon at T0 

        OL1 means the first day of the Optional Launch Period, agreed upon at TOL 

        OL means the actual Launch Day of the Optional Launch 

        OL* means OL1 if no postponement has been requested by STARSEM or otherwise the date obtained by adding to OL1 the
aggregate duration of Launch Period or Launch Slot postponement(s) requested by STARSEM after TOL for such Launch pursuant to Paragraph 11.3 of ARTICLE 11 of this Agreement,
including the aggregate duration of postponements caused by Events of Force Majeure and / or a delay to obtain an ITAR license in due time. 

        Optional Launch Services means the right for GLLC to order from STARSEM supplementary Launch Services to be performed by STARSEM under the
provisions of this Agreement. 

        Party or Parties means GLLC or STARSEM or both according to the context. 

        Post-Launch Services means the reports and range services as defined in Appendix 1 to this Agreement that are to be
provided to GLLC by STARSEM after the Launch Mission. 

        Reflight means replacement Launch Services under ARTICLE 13 of this Agreement. 

        Replacement Satellite(s): means the satellites to be launched on the Reflight. 

        Satellite(s) means any particular spacecraft supplied by GLLC that is(are) compatible with the Launch Vehicle and the Launch Vehicle
Mission, by meeting the specifications set forth in Appendix 2 to this Agreement. 

        Satellite(s) Mission means the mission assigned to any particular Satellite(s) by GLLC after separation from the Launch Vehicle. 

        Satellite(s) Separation means the moment of loss of physical contact between Satellite(s) and Launch Vehicle, as indicated by the Launch
Vehicle. 

        STARSEM Payload Preparation and Launch Facilities (SPPLF) means the complex of installations and facilities at Baikonur needed to prepare
the Satellite(s) for Launch. 

        STARSEM property means any property STARSEM uses to perform the Launch Mission(s) and interface tests, or any property placed at GLLC's
and/or its Associate's disposal, including 

9

 

without
limitation the Launch Vehicle(s) and any movable or immovable property at the Launch Site and at the STARSEM Payload Preparation and Launch Facilities (SPPLF). 

        T0 means the Authority to Proceed with the Feasibility/Compatibility Study and Procurement of Long Lead Items. (Pending
approval/activation of required U.S. ITAR licenses.) 

        T1 means the Authority to Proceed with the Firm Launch Services or, with the Firm Launch Services and the Optional Launch
Services. 

        TOL means the Authority to Proceed with the Optional Launch Services. 

        Third Party(ies) means any individual or legal entity other than the Associates or the Parties. 

        Total Launch Mission Failure or Launch Failure means, for the application of ARTICLE 13: 

        a)    that
the Satellite(s) loaded into the Launch Vehicle (i) is(are) destroyed or lost during the period extending from the instant when the Launch occurred to the
instant the Satellite(s) is(are) separated from the Launch Vehicle; or (ii) cannot be separated from the Launch Vehicle; or (iii) is(are) destroyed or lost due to a
post-separation collision of such Satellite(s) with Launch Vehicle or any part of it; or 

        b)    the
occurrence, due to a Deviation, of a reduction of the operational capability (Loss Quantum) of the Satellite(s) for GLLC's intended purpose. 

ARTICLE 2    SUBJECT OF THE AGREEMENT  

        The subject of this Agreement is the performance of ONE (1) Firm Launch Services and of ONE (1) Optional Launch Services to launch the Satellite(s)
supplied by GLLC at the Launch Site for the purpose of accomplishing the Launch Mission(s) in accordance with the terms and conditions of this Agreement. 

ARTICLE 3    CONTRACTUAL DOCUMENTS  

        3.1.    This
Agreement consists of the following documents which are contractually binding between the Parties: 

	•
	Terms
and Conditions.

	•
	Appendix 1
"Statement of Work" (SOW)—ST-GLS-SOW-01.

	•
	Appendix 2
"Interface Control Document" (ICD)—ST-GLS-ICD-01. 

        3.2.    All
of the Agreement documents shall be read so as to be consistent to the extent practical. In the event of any inconsistency between the above documents, the Terms
and Conditions shall prevail over the Appendix 1 (SOW), and Appendix 1 (SOW) shall prevail over Appendix 2 (ICD) and Appendix 2 shall prevail over Soyuz User's Manual
(ST-GTD-SUM-01—Issue 3) as modified by the Technical Note ST-GTD-NTE-01. 

10

 

ARTICLE 4    STARSEM SERVICES  

        4.1.    STARSEM
shall perform the following services under the terms and conditions defined herein: 

        4.1.1.    ONE
(1) Compatibility/Feasibility Study as defined in Appendix 1 and Appendix 2. 

        4.1.2.    ONE
(1) Procurement of Long Lead Items as defined in Appendix 1 and Appendix 2. 

        4.1.3.    ONE
(1) Firm Launch Service as defined in Appendix 1 and Appendix 2. 

	Firm Launch Services

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Firm

Launch
	 	Satellites

to be

Launched

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

	1	 	Soyuz FG	 	S / SL	 	"IKAR-modified"	 	4

	*
	As
defined in Appendix 1 and Appendix 2. 

        4.1.4.    ONE
(1) Optional Launch Services as may be ordered by GLLC. 

	Optional Launch Services

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Optional

Launch
	 	Satellites

to be

Launched

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

	2	 	Soyuz FG	 	S / SL	 	"IKAR-modified"	 	4

	*
	As
defined in Appendix 1 and Appendix 2. 

        4.2.    Launch
Services, with the exception of Post-Launch Services, shall be deemed to be accomplished by STARSEM at the point of Satellite(s) separation and
STARSEM shall not assume any further liability for said Launch Services, except as expressly provided in this Agreement. In the event that, for any reason whatsoever, a Launch Attempt occurs, STARSEM
shall postpone the Launch in accordance with the conditions set forth in ARTICLE 11 of this Agreement. 

        4.3.    STARSEM
warrants that all data deliverables shall conform with the requirements of this Agreement and, all services shall be performed in a skillful and workmanlike
manner and shall conform with the requirements of this Agreement and the highest professional industrial standards. 

ARTICLE 5    GLLC'S TECHNICAL COMMITMENTS  

        GLLC undertakes to fulfill the technical commitments set forth in this Agreement and Appendix 1 and Appendix 2, including, without any limitation,
delivery of the technical information and delivery of the Satellite(s) to the Launch Site within time limits which are consistent with the Launch schedules set forth under this Agreement and in
Appendix 1. 

        GLLC
shall promptly notify STARSEM in writing of any event that reasonably may cause a delay in the Launch schedules. 

11

 

ARTICLE 6    LAUNCH SCHEDULE  

        6.1.    Launch
schedule. 

        The
anticipated Launch schedule for GLLC Firm and Optional Launches is the following: 

	Launch

Number
	 	Anticipated Launch Period
	 	Preliminary

Launch Period

Determined at:
	 	Launch Period

Finalized at:

	Firm Launch	 	Launch Period = 1 March - 31 May, 2007	 	T0	 	T1
	

Optional Launch	
 	

01 June - 31 August 2007 or 01 September - 30 November 2007	
 	

T0	
 	

TOL

        STARSEM
and GLLC recognize that the above Launch Periods are indicative only and shall be determined between the Parties in accordance with Paragraph 6.2 hereunder. 

        6.2.    Determination
of Launch Vehicle Configuration, Launch Period, Launch Slot, scheduled Launch Day and Launch Time. 

        6.2.1.    STARSEM
and GLLC agree that the Launch Period of the Firm Launch Services stated for in Sub Paragraph 0 above, shall be finalized no later than TWELVE (12)
months prior to the first day of the applicable Launch Period, by mutual agreement of the Parties taking into account the launch manifest of STARSEM at that date. L1 shall be defined as
the first day of the agreed upon Launch Period. 

        6.2.2.    The
Launch Period of the Optional Launch Services stated for in Sub Paragraph 6.1 above, shall be finalized no later than TWELVE (12) months prior to the first
day of the applicable Launch Period, by mutual agreement of the Parties taking into account the launch manifest of STARSEM at that date. OL1 shall be defined as the first day of the agreed
upon Launch Period. 

        6.2.3.    The
Launch Slot within a Launch Period of any Launch Services shall be determined by mutual agreement of the Parties no later than SIX (6) months prior to the first
day of the applicable Launch Period, taking into account the Launch Opportunities. 

        6.2.4.    The
Launch Day within a Launch Slot of any Launch Services and the Launch Time shall be determined by mutual agreement of the Parties no later than the applicable
Final Mission Analysis Review, based on a proposal made by STARSEM. 

        6.2.5.    In
the event that, for any reason whatsoever, the Parties fail to agree upon the Launch Slot within the Launch Period, the Launch Day, or the Launch Time, STARSEM
shall determine said Launch Slot, Launch Day, or Launch Time taking into account the available Launch Opportunities, and the requirements and interests of GLLC. 

ARTICLE 7    COORDINATION BETWEEN STARSEM AND GLLC  

        7.1.    GLLC
and STARSEM shall each designate a project Mission Manager no later than ONE (1) month following EDC. 

        7.2.    All
communication between the Parties concerning the Agreement and its implementation shall be made exclusively through the Mission Managers at the addresses of the
Parties set forth in the Agreement. 

        7.3.    The
task of the Mission Managers shall be to supervise and to co-ordinate the performance of the Launch Services and of the respective technical commitments
of the Parties within the Launch schedules set forth in this Agreement. 

12

   
        7.4.    The Mission Managers shall be endowed upon their appointment by each of the Parties with sufficient powers to enable them to resolve any technical issues that may arise
during the performance of this Agreement, as well as any other questions arising from its day-to-day management. Should the Mission Managers have unresolved technical issues,
such issues will be escalated to the respective signatories of the SOW. 

        7.5.    Either
Party may replace its Mission Manager by informing the other Party in writing of such action and indicating the effective date of designation. Such notification
shall be signed by an official of the respective Party who is authorized to amend this Agreement, and shall become part of this Agreement when received by the other Party. 

        7.6.    STARSEM
shall invite GLLC to participate in the reviews concerning the Launch Services or the Launch Vehicle(s) as defined in Appendix 1. The associated
documentation shall be made available at least TEN (10) calendar days prior to the date of such reviews. 

ARTICLE 8    REMUNERATION  

        8.1.    The
remuneration of STARSEM for the provision of the Launch Services set forth herein is as follows: 

        The
following table provides prices in Euro for Soyuz Firm Launch Services. 

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Firm

Launch
	 	Launch

Services

Price (Euro)

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

	1	 	Soyuz FG	 	S / SL	 	"IKAR-modified"	 	[*]

	*
	As
defined in Appendix 1 and Appendix 2. 

        The
Launch Services prices indicated in the proceeding Table are inclusive of the following Preliminary Payments. 

	•
	[*]
for the completion of Compatibility/Feasibility Studies described in Appendix 2 to the SOW,

	•
	[*]
for the procurement of Dispenser Long Lead Items described in Appendix 1 to the SOW. 

        The
following table provides prices in Euro for Soyuz Optional Launch Services. 

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Optional

Launch

Alternative
	 	Launch

Services

Price (Euro)

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

	1	 	Soyuz FG	 	S / SL	 	"IKAR-modified"	 	[*]

	*
	As
defined in Appendix 1 and Appendix 2. 

        8.2    Additional
Services 

        The
remuneration of STARSEM for the provision of any selected Additional Services shall be per the prices provided in Appendix 6 to the SOW. 

        8.3    STARSEM
shall pay all taxes and other duties of any French tax authority or the authority of any country where work is performed by STARSEM and/or its suppliers. 

13

 

ARTICLE 9    PRICE ESCALATION FORMULA  

        9.1.    Firm
Launch Services. 

        Should
GLLC finalize a Launch Period with L1 established more than 6 months later than L0, the price identified in Article 8 "Remuneration" shall be
subject to an adjustment of [*]% per month, calculated from L0 to L1. 

        9.2.    Optional
Launch Services. 

        Should
GLLC exercise the option and finalize a Launch Period with OL1 established more than 6 months later than OL0, the price identified in
Article 8 "Remuneration" shall be subject to an adjustment of [*]% per month, calculated from OL0 to OL1. 

ARTICLE 10    PAYMENT FOR SERVICES  

        10.1.    Payment
Plan. 

        10.1.1.    Payment
Plan of Firm Launch Services. 

        Payment
of the remuneration under Paragraph 8.1 of ARTICLE 8 of this Agreement for any Launch Services shall be made in accordance with the following payment schedule: 

	 
	 	 
	 	Preliminary Payments (Euro)

	Due Date of Payment

For

Firm Launch

Services
	 	Launch Services

Payments*

(Euro)
	 	Compatibility /

Feasibility

Study
	 	Long-Lead

Items

Dispenser

[1(a)]

	EDC	 	 	 	 	 	 
	T0 - L0 - 17 months	 	 	 	 	 	 
	

L0 - 15 months	
 	

[*]	
 	

[*]	
 	

[*]
	

T1 = L1 - 12 months	
 	

 	
 	

 	
 	

 
	

L1 - 9 months	
 	

 	
 	

 	
 	

 
	

L1 - 6 months	
 	

 	
 	

 	
 	

 
	

L1 - 3 months	
 	

 	
 	

 	
 	

 
	

L	
 	

 	
 	

 	
 	

 

	(*)
	Launch
Services Payments are calculated as a percentage of the applicable Launch Services price minus the Preliminary Payments billed to date (defined in ARTICLE 8). 

        Payment Example: At EDC, GLLC signs a Contract for Soyuz FG Launch Services, which allows for an Authority to Proceed at T1, 12 months before
the required launch date.

        Case 1: [*] 

	T0
	= Authority
to Proceed with the Feasibility/Compatibility Study and Procurement of Long Lead Items. (Pending approval/activation of required U.S. ITAR licenses.)

	T1
	= Authority
to Proceed with the Firm Launch Services or, with the Firm Launch Services and the Optional Launch Services.

	L0
	= First
day of the Launch Period, initially agreed upon at T0

	L1
	= First
day of the Launch Period agreed upon at T1

	L
	= The
actual Launch Day. 

14

 

        10.1.2.    Payment
Plan of Optional Launch Services. 

	Due Date of Payment

For Optional

Launch Services
	 	Payments(*) - Launch

Services - (Euro)

	Option Exercised	 	 
	TOL = OL1 - 12 months	 	[*]
	OL1 - 9 months	 	 
	OL1 - 6 months	 	 
	OL1 - 3 months	 	 
	OL	 	 

	(*)
	Launch
Services Payments are calculated as a percentage of the applicable Launch Services price defined in ARTICLE 8). 

TOL = Authority
to Proceed with the Optional Launch Services. 

OL0 = First
day of the Optional Launch Period, initially agreed upon at T0 

OL1 = First
day of the Optional Launch Period, agreed upon at TOL 

OL = The
actual Launch Day of the Optional Launch 

        10.2.    Payment
for Additional Services. 

        Payment
for Additional Services ordered by GLLC and associated payment plans will be provided through specific agreements detailed in Contract Change Notices (CCN). Prices for usual
Additional Services are detailed in Appendix 6 to the SOW.. 

        10.3.    Payments
terms 

        10.3.1.    In
all cases where this Agreement establishes a precise due date of payment, payment shall be made on such date, or within THIRTY (30) days of GLLC's receipt of
STARSEM corresponding invoice, whichever is later. 

        Notwithstanding
the above, it is agreed by the Parties that the first payment shall be paid within 3 business days following EDC. 

        10.3.2.    Any
and all STARSEM invoices shall be drawn in THREE (3) copies (ONE (1) original and TWO (2) copies) and sent to the following: 

Globalstar
LLC,

Post Office Box 640670

San Jose, California—95164-0670

Attention: Accounts Payable. 

        10.3.3.    Payments
shall be made in Euro, to the account(s) designated on the relevant invoice, by electronic bank transfer, free of charge for STARSEM. Copy of such
electronic transfer order shall be sent by fax to STARSEM. This notice of payment shall clearly state the value date to be applied and the bank through which the funds will be made available to the
receiving bank or its correspondent. 

        10.3.4.    GLLC's
payment(s) shall be in the amount(s) invoiced by STARSEM, and shall be made net, free and clear of any and all taxes, duties, bank charges or withholdings
that may be imposed in the country from which they are paid so that STARSEM receives each such payment in its entirety as if no such tax, duty, or withholding had been made. 

15

 

        10.3.5.    Payment(s)
by GLLC shall be effective as of the date on which the amount of STARSEM's invoice is credited for value to the designated account(s). 

        10.4.    Late
Payment. 

        In
the event of late payment, GLLC shall pay STARSEM interest on such late payment at the Base Rate per annum from the due date of payment up to and including the date of payment. The
computation of interest for late payments shall be based on a year of 360 days. 

        During
any period of non-payment in excess of THIRTY (30) days, STARSEM shall be entitled to reschedule the considered Launch under Sub-paragraph 11.3.5 of
ARTICLE 11 of this Agreement and to suspend any and all of its activities in preparation for the considered Launch, provided that STARSEM shall have notified GLLC of its failure to comply with its
payment obligation at least FIFTEEN (15) days prior to such suspension and rescheduling. 

        Any
non-payment period in excess of SIXTY (60) days shall constitute GLLC's material breach of this Agreement, and STARSEM shall be entitled to terminate the concerned Launch
Services pursuant to the provisions of ARTICLE 19. 

        10.5.    Waiver
of Deferral, Withholding or Set-off. 

        Under
this Article 10 and unless otherwise specified in this Agreement, GLLC irrevocably waives any right to defer, withhold or set-off by counterclaim or other legal
or equitable claim or otherwise all or any part of any payment under this Agreement for any reason whatsoever. All payments due under this Agreement shall be made in their entirety and on the dates
specified in this Agreement. 

ARTICLE 11    LAUNCH SCHEDULE ADJUSTMENT  

        11.1.    Each
postponement of a Launch Period, a Launch Slot, a Launch Day or a Launch Time for whatever reason, shall be governed solely by the terms and conditions provided
in this ARTICLE 11. The Parties hereto expressly waive, renounce, and exclude any and all rights and remedies that may arise at law or in equity with respect to postponements that are not stated in
this ARTICLE 11 or elsewhere in this Agreement. 

        11.2.    Postponements
requested by GLLC. 

        11.2.1.    GLLC
shall have the right for any reason whatsoever to postpone a Launch Period and once determined, a Launch Slot or a Launch Day. GLLC's written notice for
postponement shall indicate the new requested (i) Launch Period, or (ii) Launch Slot, or (iii) Launch Day, as the case may be. 

        11.2.1.1.    If
GLLC's written request relates to a Launch Period or a Launch Slot postponement, within TWO (2) weeks of receipt of such request, STARSEM shall inform GLLC
whether a Launch Opportunity exists within the Launch Period, or within the Launch Slot requested, or will propose a new Launch Period or Launch Slot. GLLC shall have THIRTY (30) days following
receipt of STARSEM's proposal to consent thereto in writing. In the event STARSEM's counterproposal is not acceptable for GLLC, the Parties shall mutually agree within the TWO (2) following weeks upon
an alternative Launch Opportunity as near as possible to GLLC's request. 

        11.2.1.2.    If
GLLC's written request relates to a Launch Day postponement, the choice of a new Launch Day shall be made by mutual agreement of the Parties, taking into
account the technical needs and interests of GLLC, the time necessary for the revalidation of the Soyuz Launch Vehicle, the Soyuz Launch Complex (SLC), the Soyuz Payload Preparation and Launch
Facilities (SPPLF), and the Baikonur Space Center (BSC) facilities and services used for launching the Launch Vehicle and the meteorological forecasts. Should postponement of 

16

 

the
Launch Day lead to postponement beyond the Launch Slot, Sub-paragraph 11.2.1.1 of ARTICLE 11 of this Agreement shall apply. 

        11.2.1.3.    GLLC
can stop the final countdown sequence until Launch Time—20 seconds. In the event that GLLC has requested such postponement and that technical
reasons, including, without limitation, those relating to meteorological reasons, prevent STARSEM from performing the considered Launch on the Launch Day, the postponement shall be considered to be a
postponement of the Launch Day, and Sub-paragraph 11.2.1.2 shall apply. 

        11.2.1.4.    In
the event that a singular or cumulative amount of postponement pursuant to this Paragraph 11.2. is less than THREE (3) months the considered payment
schedule shall not be affected. In the event that a singular or cumulative amount of postponement pursuant to this Paragraph 11.2 is in excess of THREE (3) months, then the considered payment
schedule shall be modified accordingly, being agreed that the sums remaining due will be increased at a rate of [*]. 

        11.2.1.5.    In
the event that a singular or cumulative amount of postponement pursuant to this Paragraph 11.2 is in excess of SIX (6) months, then STARSEM may be
entitled to terminate the considered Launch Services in accordance with ARTICLE 19 of this Agreement. 

        11.2.1.6.    For
the implementation of Sub-paragraph 11.2.1.4 and Sub-paragraph 11.2.1.5 above, the aggregate duration of any
postponement(s) resulting from the occurrence of one or more of the events listed hereinafter shall not be accounted: 

          (i)  Events
of Force Majeure, and/or 

         (ii)  Damages
caused by STARSEM and/or its Associates to the Property of GLLC and/or the property of its Associates, and/or 

        (iii)  Bodily
harm caused by STARSEM and/or its Associates to GLLC and/or its Associates. 

        (iv)  Delays
due to either the failure to obtain an ITAR License, or the temporary suspension of an ITAR license or the definitive annulment of an ITAR License by the U.S.
Department of State when this delay occurs before L1 - 4 months. 

        11.2.2.    GLLC
shall not be liable for postponement fees or liquidated damages for any Launch Period, Launch Slot or Launch Day postponement. 

        11.2.3.    Notwithstanding
Sub-paragraph 11.2.2 above, it is agreed by the Parties that GLLC shall indemnify STARSEM for the direct costs, directly incurred
or billed by sub-contractors, to the exclusion of consequential damages (including but not limited to loss of revenue, loss of business), resulting of any postponement requested by GLLC
during the Launch Campaign. The Parties hereby agree to control and limit as much as possible those costs. 

        11.3.    Launch
postponement by STARSEM. 

        11.3.1.    STARSEM
shall have the right to postpone a Launch Period, or if already determined, a Launch Slot, a Launch Day or a Launch Time up to a cumulative maximum of SIX
(6) months. 

        STARSEM's
right to postpone Launch schedule under this Paragraph 11.3 shall be for whatever reasons. 

        The
Parties shall determine by mutual agreement a new Launch Period and/or a new Launch Slot as near as possible to that postponed in accordance with a Launch Opportunity for the
considered GLLC's Satellite(s). The new Launch Day and the new Launch Time shall be 

17

 

determined
by mutual agreement of the Parties according to the technical constraints of STARSEM and/or of its Associates and the respective interests of the Parties. 

        11.3.2.    In
the event that a singular or cumulative amount of postponement pursuant to this Paragraph 11.3 is less than THREE (3) months, the considered payment
schedule shall not be affected. In the event that a singular or cumulative amount of postponement pursuant to this 11.3 is in excess of THREE (3) months, then GLLC shall be entitled to defer the
considered payment(s) remaining due under Paragraph 10.1 or Paragraph 10.2 of ARTICLE 10 of this Agreement at the date of the postponement by the number of days of postponement. 

        11.3.3.    In
the event of a singular or cumulative amount of postponement pursuant to this Paragraph 11.3 in excess of SIX (6) months, then GLLC may be entitled to
terminate the procurement of considered Launch Services in accordance with Paragraph 18.3 of ARTICLE 18 of this Agreement. 

        11.3.4.    For
the implementation of Sub-paragraph 11.3.2 and Sub-paragraph 11.3.3 above, the aggregate duration of any postponement(s)
resulting from the occurrence of one or more of the events listed hereinafter shall not be accounted: 

          (i)  Events
of Force Majeure, and/or 

         (ii)  Damages
caused by GLLC and/or its Associates to the Property of STARSEM and/or the property of its Associates, and/or 

        (iii)  Bodily
harm caused by GLLC and/or its Associates to STARSEM and/or its Associates. 

        11.3.5.    In
the event of a GLLC's non-fulfillment of its obligations under this Agreement (subject to Paragraph 10.4 of ARTICLE 10 of this Agreement in
case of late payment), STARSEM shall have as its sole remedy the right to postpone the considered Launch Period, Launch Slot, Launch Day
or the Launch Time. In this event and subject to such GLLC's failure making the considered Launch impossible within the Launch Period, Launch Slot, Launch Day, or the Launch Time, the terms of
Paragraph 11.2 of ARTICLE 11 of this Agreement shall apply. 

        Postponement
under this Sub-paragraph 11.3.5 shall be considered to be requested by GLLC as of the date of STARSEM's decision to postpone the considered Launch. 

        11.3.6.    STARSEM
shall not be liable for postponement fees or liquidated damages for any Launch Period, Launch Slot, Launch Day or Launch Time postponement. 

        11.3.7.    Notwithstanding
the above Sub-paragraph 11.3.6, it is agreed by the Parties that STARSEM shall indemnify GLLC for the direct costs, directly
incurred or billed by sub-contractors, to the exclusion of consequential damages (including but not limited to loss of revenue, loss of business), resulting of any postponement requested
by STARSEM during the Launch Campaign. The Parties hereby agree to control and limit as much as possible those costs. 

ARTICLE 12    RIGHT OF OWNERSHIP AND CUSTODY  

        12.1.    The
obligations of STARSEM under this Agreement are strictly limited to the Launch Services, and GLLC acknowledges and agrees that at no time shall it have any right
of ownership of, any other right in, or title to, the property that STARSEM shall use in connection with the Launch Services, or shall place at GLLC's disposal for the purpose of this Agreement,
including, without limitation, the Launch Vehicles and the Launch Site. Said property shall at all times be considered to be the sole property of STARSEM. 

        12.2.    STARSEM
acknowledges and agrees that at no time shall it have any right of ownership, or any other right in, or title to, the property that GLLC shall use for the
procurement of Launch Services and the interface test(s), including, without limitation, the Satellites and all equipment, devices and software to be provided by GLLC at the Launch Site in order to
prepare the Satellites for Launch. Said property shall at all times be considered to be the sole property of GLLC. 

        12.3.    At
all times during the performance by the Parties of this Agreement, each Party shall be deemed to have full custody and possession of its own property. 

18

   ARTICLE 13    LAUNCH RISK GUARANTEE  

        GLLC shall have the possibility to purchase a Soyuz Launch Risk Guarantee (LRG) Option, for any Launch Services performed under this Agreement. If this option is
exercised, in the event of a Launch Failure, STARSEM shall provide a Reflight as described below. The option shall be exercised before L*- 5 months and exact terms of the policy shall be
settled at that time. 

        13.1.    Reflight.    

        13.1.1.    In
the event of a Launch Failure, STARSEM shall perform a Reflight, in accordance with the provisions of this Agreement, with no further payment than those due and
payable under this Agreement for such considered Launch Services by GLLC to STARSEM, to be due for the provision of (i) the Launch Services associated with the Launch of a Replacement
Satellite(s) that complies with all specifications stated in the Interface Control Document, and (ii) such Additional Services as are retained by GLLC as of the date of execution of this
Agreement. 

        13.1.2.    STARSEM
shall be capable to provide such Reflight within TBD (TBD) months following the written request received from GLLC provided that such request is made by GLLC
no later than TBD (TBD) calendar days following the occurrence of the Total Launch Failure, and pending an authority to launch is given by the resultant failure investigation board. 

        13.1.3.    GLLC
is entitled to select a Launch Slot beyond such TBD (TBD) month period (see Paragraph 13.1.2) up to and including TBD (TBD) months following the day of
such Total Launch Failure. The Parties according to provisions of Paragraph 6.2.3 and Paragraph 6.2.4 of ARTICLE 6 above shall determine the considered Launch Slot and Launch Day
of such Reflight. 

        13.1.4.    The
implementation of this Paragraph 13.1 shall not imply any transfer of title of the Satellite(s) to STARSEM. In the case of Launch Failure, the rights of
STARSEM shall be the same as those of any entity(ies) who could cover risks related to the Launch of the Satellite(s) (including, without limitation, insurers of GLLC). Specially and without
limitation, in circumstances where salvage can be performed, STARSEM will be entitled to a share in any salvage value remaining in any portion of the Satellite(s) for which the Reflight has been due
by STARSEM to GLLC and will negotiate the disposition of the Satellite(s) if transfer of title has been requested. 

        13.1.5.    In
the event that, after application of this Paragraph 13.1 due to a Launch Failure, the Satellite(s) is(are) placed into commercial operation and/or is(are)
sold, leased or otherwise transferred, STARSEM shall be entitled to a share of any resulting revenues and/or payments, as shall be negotiated and agreed upon promptly, taking into account the
conditions peculiar to such commercial operation, but in no case shall any shared amount exceed the Launch Services price remunerated in Article 8 

        13.1.6.    There
shall not be any coverage for Launch Failure and consequently the provisions of Paragraph 13.1 of ARTICLE 13 hereof shall not apply, in any of
the following cases: 

        13.1.6.1.    If
GLLC does not notify in writing STARSEM of any event that would entitle GLLC to any right under Paragraph 13.1 of ARTICLE 13 of this Agreement
before the first to occur of any of the THREE (3) following events: 

          (i)  the
day the Satellite(s) is(are) put into commercial operation, 

         (ii)  the
SIXTIETH (60th) day following the date of station acquisition of the Satellite(s), 

        (iii)  the
NINETIETH (90th) day at zero hour following the date of the related Launch. 

19

 

        Notwithstanding
the foregoing, an extension of the periods hereabove shall be obtained upon request from GLLC if both of the following conditions occur: 

        (a)   the
Launch Mission is not in conformance with the specifications but the Satellite(s) reached its(their) final position such that it cannot be determined that a Launch
Failure has occurred and; 

        (b)   GLLC's
request for extension is received before the first of the THREE (3) events specified above. 

        In
no event, shall such extension extend beyond the ONE HUNDRED AND EIGHTIETH (180th) day following the date of the related Launch. 

        And/or 

        13.1.6.2.    If
the Launch Failure is caused by, or results from one or more of the following events: 

        (a)   War,
hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack by
(a) any government or sovereign power (de jure or de facto), or (b) any authority maintaining or using a military, naval or air force, or (c) a military, naval or air force, or
(d) any agent of any such government, power, authority or force; 

        (b)   Any
anti-satellite device, or device employing atomic or nuclear fission and/or fusion, or device employing laser or directed energy beams; 

        (c)   Insurrection,
strikes, riots, civil commotion, rebellion, revolution, civil war, usurpation or action taken by a government authority in hindering, combating, or
defending against such an occurrence whether there be a declaration of war or not; 

        (d)   Confiscation
by order of any government or governmental authority or agent (whether secret or otherwise) or public authority; 

        (e)   Nuclear
reaction, nuclear radiation, or radioactive contamination of any nature, whether any such loss or damage be direct or indirect, except for radiation naturally
occurring in the space environment; 

        (f)    Willful
or intentional acts of GLLC designed to cause loss or failure of the Satellite(s); 

        (g)   Electromagnetic
or radio frequency interference, except for physical damage to the Satellite(s) resulting from such interference and except for interference naturally
occurring in the space environment. 

        13.2.    Should
GLLC exercise the Reflight (LRG Option) as defined in Paragraph 13.1 above on particular Launch Services, GLLC shall have the possibility to purchase a
Launch Risk Guarantee for the
subsequent Launch Services; any and all other rights and remedies of GLLC being excluded whatever their nature. 

ARTICLE 14    ALLOCATION OF POTENTIAL LIABILITIES AND RISKS  

        14.1.    Allocation
of risks for damages caused by one Party and/or its Associates to the other Party and/or its Associates, except as provided in this Agreement and/or in the
case of gross negligence or willful misconduct,: 

        14.1.1.    Due
to the particular nature of the Launch Services, the Parties agree that any liability of STARSEM or of GLLC arising from the defective, late or
non-performance of STARSEM's Services and GLLC's technical obligations under this Agreement is, in all circumstances, including termination of this Agreement in all or in part, strictly
limited to the liability expressly provided for in this Agreement. Except as provided in this Agreement, the 

20

 

Parties
hereto expressly waive, renounce, and exclude any and all rights and remedies that may arise at law or in equity with respect to the Launch Services. 

        14.1.2.    Each
Party shall bear any and all loss of or damage to property and any bodily injury (including death) and all consequences, whether direct or indirect, of such
loss, damage or bodily injury (including death), and/or of a Launch Failure and/or of Satellite(s) Mission failure, which it or its Associates may sustain, directly or indirectly, arising out of or
relating to this Agreement or the performance of this Agreement. Each Party irrevocably agrees to a no-fault, no-subrogation, inter-party waiver of liability, and waives the
right to make any claims or to initiate any proceedings whether judicial, arbitral, or administrative on account of any such loss, damage or bodily injury (including death) and/or Launch Failure
and/or Satellite(s) Mission failure against the other Party or that other Party's Associates arising out of or relating to this Agreement for any reason whatsoever. 

        Furthermore
there shall be no liability of STARSEM or its Associates for any loss or damages to GLLC or its Associates, resulting from the intentional destruction of the Launch Vehicle
and the Satellite(s) in furtherance of Launch Site safety measures. Notwithstanding the preceding sentence, such intentional destruction of the Launcher shall be deemed a Total Launch Mission failure,
for which the provisions of ARTICLE 13 of this Agreement shall apply. 

        Each
Party agrees to bear the financial and any other consequences of such loss, damage or bodily injury (including death) and/or of a Launch Mission(s) failure and/or Satellite(s)
Mission failure which it or its Associates may sustain, without recourse to the other Party or the other Party's Associates. 

        14.1.3.    In
the event that one or more Associates of a Party shall proceed against the other Party and/or that Party's Associates as a result of such loss, damage or bodily
injury (including death) and/or Launch Failure and/or Satellite(s) Mission failure, the first Party shall indemnify, hold harmless, dispose of any claim, and defend, when not contrary to the governing
rules of procedure, the other Party and/or its Associates, as the case may be, from any liability, cost or expense, including attorneys' fees, on account of such loss, damage or bodily injury
(including death) and/or Launch Failure and/or Satellite(s) Mission failure, and shall pay all costs and expenses and satisfy all judgments and awards which may be imposed on or rendered against that
other Party and or its Associates. 

        14.2.    Indemnification.    

        Each
Party shall take all necessary and reasonable steps to foreclose claims for loss, damage or bodily injury (including death) by any participant involved in the Launch Services
activities. Each Party shall require its Associate(s) to agree to a no-fault, no-subrogation, inter-party waiver of liability and indemnity for loss, damage or bodily injury
(including death) that its Associates sustain, identical to the Parties' respective undertakings under ARTICLE 14 of this Agreement. 

        14.3.    Liability for damages suffered by Third Parties.    

        14.3.1.    Each
Party shall be solely and entirely liable for loss, damage or bodily injury (including death) sustained, whether directly or indirectly by a Third Party, which
is caused by such Party or its Associates arising out of or relating to the performance of this Agreement. 

        14.3.2.    In
the event of any proceeding, whether judicial, arbitral, administrative or otherwise, by a Third Party against one of the Parties, or its Associates on account of
loss or damage or bodily injury (including death) caused whether directly or indirectly by the other Party, its Property or its Associates or its (their) property, the latter Party shall indemnify and
hold harmless the former Party and/or the former Party's Associates, as the case may be, and shall advance any funds necessary to defend their interests. 

21

 

        14.4.    Infringement of Industrial property rights of Third Parties.    

        14.4.1.    STARSEM
shall indemnify and hold GLLC harmless with respect to any injury, cost, and expenditure resulting from an infringement or claim of infringement of patent
rights or any other industrial or intellectual property rights of a Third Party which may arise from GLLC's use of STARSEM's Services, including without limitation the use of any and all products,
processes, articles of manufacture, supporting equipment, facilities, and services by STARSEM in connection with said Services; provided however that this indemnification shall not apply to an
infringement of rights as set forth above that have been mainly caused by an infringement of a right of a Third Party for which GLLC is liable pursuant to Sub-paragraph 14.4.2 of
ARTICLE 14 of this Agreement. 

        14.4.2.    GLLC
shall indemnify and hold STARSEM harmless with respect to any injury, cost, and expenditure resulting from an infringement or claim of infringement of the
patent rights or any other industrial or intellectual property rights of a Third Party arising out or relating to GLLC with respect to the design or manufacture of the Satellite(s), or STARSEM's
compliance with specifications furnished by GLLC with respect to the Launch Mission(s) and the Satellite(s) Mission. 

        14.4.3.    The
rights to indemnification provided hereunder shall be subject to the observance of the following conditions: 

        14.4.3.1.    The
Party seeking indemnification shall promptly advise the other Party of the filing of any suit, or of any written or oral claim, alleging an infringement of the
Third Party's rights, which it may receive in relation to this Agreement. 

        14.4.3.2.    The
Party sued or against whom the claim is otherwise made shall take no steps in the dispute with the Third Party, nor shall it reach a compromise or settlement,
without the prior written approval of the other Party, which approval shall not be unreasonably withheld or delayed. 

        14.4.4.    The
Party indemnifying shall assist and assume, when not contrary to the governing rules of procedure, the defense of any claim or suit and/or settlement thereof,
shall take all other steps which it may reasonably be expected to take, given the circumstances on the one hand, and on the other hand the obligations incurred by it under ARTICLE 14 of this
Agreement, to avoid, settle, or otherwise terminate the dispute and shall pay all litigation and administrative costs and expenses incurred in connection with the defense of any such suit, including
fees and expenses of legal counsel, shall satisfy any judgments rendered by a court of competent jurisdiction in such suits, and shall make all settlement payments. 

        14.4.5.    In
the event that STARSEM, with respect to the Launch Services and GLLC, with respect to the Satellite(s), shall be the subject of the same court action or the same
proceedings based on alleged infringements of patent rights or any other industrial or intellectual property rights of a Third Party
pursuant to both Sub-paragraphs 14.4.1 and 14.4.2 of ARTICLE 14 of this Agreement, STARSEM and GLLC shall jointly assume the defense and shall bear the damages, costs and
expenditures pro rata according to their respective liability. In the event that the pro rata allocation is applicable but should cause a problem, the Parties undertake in good faith to resolve the
problem by means of negotiation. 

        14.4.6.    It
is expressly understood that neither Party's execution or performance of this Agreement, grants any rights to or under any of either Party's respective patents,
proprietary information, and/or data, to the other Party or to any Third Party, unless such grant is expressly recited in a separate written document duly executed by or on behalf of the granting
Party. 

22

 

ARTICLE 15    INSURANCE  

        15.1.    Third Parties Liability Insurance.    

        15.1.1.    For
the Launch Services provided under this Agreement, STARSEM shall take out an occurrence basis type insurance policy at no cost to GLLC, to protect itself, GLLC
and any or all Associates against liability for property loss or damage and bodily injury (including death) that Third Parties may sustain and that is caused by activities of GLLC and its Associates,
their respective contractor(s) and their respective sub-contractors and/or STARSEM, its contractor(s) and its sub-contractor(s) within the Launch Site. 

        Said
insurance coverage shall come into effect as of the beginning of the Launch Campaign and until its end and up to an amount of [*]. 

        15.1.2.    STARSEM
shall take out an occurrence basis type insurance policy at no cost to GLLC to protect itself, GLLC, any and all Associates against liability for property
loss or damage and bodily injury (including death) that Third Parties may sustain and that is caused by the Launch Vehicle, and/or the Satellite, and/or their components or any part thereof. 

        The
insurance referred to in Paragraph 15.1.2 shall be in the amount of [*] and shall come into effect as of ignition of at least one of the first stage
(strap-on boosters) or second stage (core stage) liquid engines, and shall be maintained for a period of the lesser of [*] or so long as all or any part of the
Launch Vehicle, and/or the Satellite(s), and/or their components remain in orbit. 

        15.2.    Risk to the Satellite(s).    

        The
Parties to this Agreement are aware that the use of Launch Vehicles involves a degree of risk to the Satellite(s). The Parties have made a deliberate, knowing allocation between them
of that risk, it being their intent that GLLC, its Insurers, and Associates shall bear the risk of loss of the Satellite(s). 

ARTICLE 16    OWNERSHIP OF DOCUMENTS AND WRITTEN INFORMATION/ CONFIDENTIALITY / PUBLIC STATEMENTS  

        16.1.    Title
to all documents, data and written information furnished to GLLC by STARSEM or its Associates during the implementation of this Agreement shall remain
exclusively with STARSEM or said Associates. 

        16.2.    Title
to all documents, data and written information furnished to STARSEM by GLLC or its Associates during the implementation of this Agreement shall remain
exclusively with GLLC or said Associates. 

        16.3.    Each
Party shall use the documents, data and written information supplied to it by the other Party or the other Party's Associates solely to implement and perform this
Agreement and related activities. 

        16.4.    To
the extent necessary for the implementation of this Agreement, and in accordance with sub-paragraph 20.8, each Party shall be entitled to divulge
to its own Associates the documents, data and written information received from the other Party or from the other Party's Associates in connection herewith, provided that such receiving Parties have
first agreed to be bound by the nondisclosure and use restrictions of this Agreement. 

        16.5.    Subject
to the provisions of Paragraph 16.4 of ARTICLE 16 of this Agreement, neither Party shall divulge any document, data or written information which
it receives from the other Party or the other
Party's Associates, but shall protect all such documents, data and written information which is marked with an appropriate and valid proprietary legend from unauthorized disclosure except as provided
herein, in the same manner as the receiving Party protects its own confidential information, provided, however, that each Party shall have the right to use and duplicate such documents, data and
written information subject to the nondisclosure requirements and use restrictions provided herein. 

        If
the information disclosed by one Party to the other Party or by or to their respective Associates is deemed confidential by the disclosing Party or Associate and is verbal, not
written, such verbal 

23

 

confidential
information shall be identified prior to disclosure as confidential and, after acceptance by and disclosure to the receiving Party, shall be reduced to writing promptly, labeled
confidential, but in no event later than TWENTY (20) days thereafter, and delivered to the receiving Party in accordance with this Paragraph. 

        16.6.    The
obligation of the Parties to keep secret and confidential the documents and written information shall not apply to those documents and written information that: 

	•
	are
insufficiently or improperly designated;

	•
	are
in the public domain or use;

	•
	shall
become in public use, by publication or otherwise, and due to no fault of the receiving Party;

	•
	the
receiving Party can demonstrate were legally in its possession at the time of receipt;

	•
	are
rightfully acquired by the receiving Party from Third Parties;

	•
	are
commonly disclosed by the disclosing Party and/or its Associates;

	•
	are
inherently disclosed by any product or service marketed by the disclosing Party or its Associates;

	•
	are
independently developed by the receiving Party;

	•
	are
approved for release by the written authorization of the disclosing Party; or

	•
	are
required, but only to the extent necessary, to be disclosed pursuant to governmental or judicial order, in which event the Party concerned shall notify the other Party
of any such requirement and the information required to be disclosed prior to such disclosure. 

        16.7.    The
provisions of this ARTICLE 16 shall survive the completion of performance of Launch Services under this Agreement and shall remain valid, in full force and
effect for a period of 5 years after the term of this Agreement for whatever reason until said documents, data and written information become part of the public domain. 

        Each
Party shall however be entitled to destroy documents, data and written information received from the other Party, or to return these documents, data or such written information to
the other Party, at any time after Launch. 

        16.8.    The
Parties understand that all exchange of data and information involving GLLC, STARSEM and any and all Associates pursuant to this Agreement shall be in accordance
with all national laws, rules and regulations, as applicable regarding exportation and re-exportation of technical data, including but not limited to the United States Department of State
International Traffic in Arms Regulations (ITAR), the corresponding regulations of France and Russia, and the export control regulations of the United States, France and Russia. STARSEM shall inform
GLLC of any specific regulations applicable to GLLC under French and / or Russian law. 

        16.9.    The
present Agreement and each part thereof shall be considered to be confidential by both Parties. Any disclosure of the same by one Party shall require the prior
written approval of the other
Party, except when disclosed to Associates or Clients. Approval shall not be unreasonably withheld or delayed. 

        Each
Party shall obtain the prior written approval of the other Party concerning the content and timing of news releases, articles, brochures, advertisements, speeches, and other
information releases concerning the work performed or to be performed hereunder by either Party and/or its Associates. 

ARTICLE 17    PERMITS AND AUTHORIZATIONS  

        17.1.    The
obligations of STARSEM are limited to the obligations set forth in this Agreement. GLLC shall be required to obtain all permits, authorizations, or notices of
non-opposition from all national or international, public or private authorities having jurisdiction over the Satellite(s), its/their components and/or any part thereof and the
Satellite(s) Mission. 

24

 

        17.2.    GLLC
and its Associates shall also be obliged to obtain all required government permits and authorizations regarding the transfer of the Satellite(s) and its/their
Ancillary Equipment from the country of origin to the Launch Site, and the availability and use of Satellite(s)'s ground stations. STARSEM shall inform GLLC of any specifically required government
permits and authorizations and shall assist GLLC in obtaining such documentation. 

        17.3.    STARSEM
agrees to assist and support GLLC and its Associates, free of charge, with any administrative matters with Russian and Kazakhstan governmental entities with
respect to the importation into Russia and/or the Republic of Kazakhstan of the Satellite(s) and all equipment, devices and software to be provided by GLLC on the Launch Site in order to prepare the
Satellite(s) for Launch, and related to their preservation and possible repatriation. 

        17.4.    STARSEM
shall assist and support GLLC and its Associates, free of charge, with any administrative matters with Russian and Kazakhstan governmental entities with
respect to the entry, stay, and departure of GLLC and its Associates. 

ARTICLE 18    TERMINATION BY GLLC  

        18.1.    GLLC
shall have the right to terminate the procurement of any particular Firm Launch Services or Optional Launch Services under this Agreement at any time prior to the
Launch concerned, in accordance with the provisions of this ARTICLE. GLLC's right shall cover termination situations for reasons of convenience as well as those of delay or impossibility of
performance in which one of the Parties may find themselves. Notice of termination shall be given by registered letter with acknowledgement of receipt. 

        18.2.    Termination by GLLC for GLLC's convenience.    

        18.2.1.    GLLC, for its convenience, may terminate the procurement of any particular Launch Services under this Agreement at
any time prior to the Launch concerned. Notice of Termination shall be given by registered letter with acknowledgement of receipt, and Termination shall take effect at receipt of such letter by
STARSEM.    

        In
such case of Termination by GLLC, STARSEM shall be entitled for the Launch Services terminated to the following termination fees: 

        Applicable
Termination fees for the Firm Launch Services are indicated in the following table: 

	Effective Date of Termination of

the Firm Launch Services
	 	Percentage of the

Terminated Firm Launch Services

Payments Billed to Date
	 	Percentage of the

Preliminary Payments

Billed to Date

	Between EDC and on or before L0 - 12 months	 	[*]	 	[*]
	Between L* - 12 and on or before L* - 9 months	 	 	 	 
	Between L* - 9 and on or before L*	 	 	 	 
	After L* - 6 months	 	 	 	 

        The
termination fees shall be calculated as the percentage (as shown in the Table above) multiplied by the price of the terminated Launch Services (as referred in ARTICLE 8 and
possibly revised under ARTICLE 9). 

25

 

        Applicable
Termination fees for the Optional Launch Services are indicated in the following table: 

	Effective Date of Termination of the

Optional Launch Services
	 	Percentage of the Terminated

Optional Launch Services Price

	On or before TOL	 	 
	Between OL* - 12 and on or before OL* - 9 months	 	[*]
	Between OL* - 9 and on or before OL* - 6 months	 	 
	After OL* - 6 months	 	 

        The
termination fees shall be calculated as the percentage (as shown in the Table above) multiplied by the price of the terminated Launch Services (as referred in ARTICLE 8 and
possibly revised under ARTICLE 9). 

        18.2.2.    Plus
STARSEM shall be entitled to any late payment interest applicable under the Agreement at the effective date of termination and payment of the price of those
Additional Services as may have been ordered by GLLC and performed or committed by STARSEM at the effective date of termination. 

        18.2.3.    Termination
fees are due by GLLC to STARSEM as of the effective date of termination and payable within THIRTY (30) days of receipt by GLLC of the
corresponding invoice from STARSEM. Any amounts paid by GLLC for the considered terminated Launch Services in excess of the termination fees under Sub-paragraph 18.2.1 and sums
under Subparagraph 18.2.2 above shall be refunded promptly by STARSEM to GLLC. 

        18.3.    Termination by GLLC for cause.    

        In
the event that the aggregate of all postponements by STARSEM under Sub-paragraph 11.3.1. of this Agreement should result in STARSEM delaying GLLC's considered Launch under this
Agreement by more than SIX (6) months, GLLC shall have the right, within THIRTY (30) days of STARSEM's corresponding notice of postponement, to terminate the procurement of the considered Launch
Services, in which case STARSEM shall refund to GLLC all payments made by GLLC for said Launch Services, within THIRTY (30) days of receipt by STARSEM of the relevant termination notice. In such an
event, GLLC may be liable only for the payment of the Additional Services performed or committed by STARSEM and any late payment interest due at the effective date of termination as specified in
Sub-paragraph 18.2.2 above. 

        However,
postponements resulting from (i) Events of Force Majeure; and/or (ii) any damage caused by GLLC and/or its Associates to the property of STARSEM and/or the
property of its Associates; and/or (iii) any bodily injury (including death) caused by GLLC and/or its Associates to STARSEM and/or its Associates shall not be taken into account for the
computation of the above six (6) month period. 

        The
rights and remedies of GLLC provided in this Agreement shall be the exclusive remedies of GLLC in the event of default or breach by STARSEM of this Agreement. 

ARTICLE 19    TERMINATION BY STARSEM  

        19.1.    In
the event that GLLC fails to comply with its payment obligations pursuant to the payment schedule and other payment dates set forth in this Agreement, and does not
pay within SEVEN (7) calendar days after the date of receipt of a written notice to that effect issued after expiry of the total NINETY (90) days period referred to in
Paragraph 10.4 of ARTICLE 10, or, without prejudice to the provisions in ARTICLE 11, if the aggregate of all postponements requested by GLLC under Paragraph 11.2. of this Agreement
should result in GLLC delaying a considered Launch under this Agreement by more than SIX (6) months, STARSEM shall be entitled to terminate the considered Launch Services by registered letter
with acknowledgement of receipt. 

        19.2.    In
the event of such Termination, STARSEM shall be entitled to retain and to claim, as liquidated damages and not as penalty, the termination fees and amounts set out
in Paragraph 18.2 of the Agreement. 

        19.3.    In
the event that GLLC does not proceed to T1, assigning a L1 date for the Firm Launch within 18 months following T0,
STARSEM shall be entitled to terminate this Agreement and to retain and to claim; as liquidated damages a termination fee of FIVE percent (5%) of the Launch Services Price defined in
Paragraph 8. 

26

   
        19.4.    The rights and remedies of STARSEM provided in this Agreement shall be the exclusive remedies of STARSEM in the event of a default or breach by GLLC of this Agreement.

ARTICLE 20    MISCELLANEOUS  

        20.1.    Working
language. 

        Any
communication by one Party to the other shall be made in English. 

        All
communications on the Launch Site between STARSEM or its Associates and GLLC's personnel and/or that of its Associates, shall be made in English. 

        20.2.    Notices.

        Unless
expressly provided otherwise under this Agreement, all communications and notices to be given by one Party to the other in connection with this Agreement shall be in writing and
in the language of this Agreement and shall be sent by registered mail, and if transmitted by telecopier or telegram, shall be confirmed by registered letter to the following addresses (or to such
address as a Party may designate by written notice to the other Party): 

	STARSEM	 	GLLC
	

STARSEM

2 rue François Truffaut

91042 Evry Cedex

France	
 	

GLOBALSTAR LLC

461 South Milpitas Blvd

Milpitas, CA 95035

U.S.A
	

Attention: Cécile TRASSY

Telephone:+33 1 69 87 0122

Fax: +33 1 60 78 31 99	
 	

Attention: Paul ROSATI

Telephone:+1 408 933 4156

Fax: +1408 933 4943

        20.3.    Waiver.

        Waiver
on the part of either STARSEM or GLLC of any term, provision, or condition of this Agreement shall only be valid if made in writing and accepted by the other Party. Said
acceptance shall not obligate the Party in question to waive its rights in connection with any other previous or subsequent breaches of this Agreement. 

        20.4.    Headings.

        The
headings and sub-headings used in this Agreement are provided solely for convenience of reference, and shall not prevail over the content of the ARTICLES of this
Agreement. 

        20.5.    Assignment.

        Neither
Party shall be entitled to assign all or part of its rights and obligations under this Agreement without the prior written consent of the other Party. Such consent may not be
unreasonably withheld or withdrawn. 

        Notwithstanding
the foregoing, both Parties shall have the right subject to prior written notice to be received by the other Party THIRTY (30) calendar days in advance, to assign
all its rights, title and interest on and to this Agreement to a wholly-owned subsidiary, or to a qualified successor in case of merger, consolidation or reorganization or transfer of all of its
assets without the other Party's prior consent, provided such successor shall not be a competitor to or comprise among its significant shareholders a competitor to the other Party. 

27

 

        20.6.    Entire
Agreement and Modifications. 

        The
Agreement constitutes the entire understanding between the Parties with respect to its subject and supersedes all prior and contemporaneous discussions between them. Neither Party
shall be bound by the conditions, warranties, definitions, statements, or documents previous to the execution of this Agreement, unless this Agreement makes express reference thereto. Any actions
and/or undertakings subsequent to the execution of this Agreement shall be made in writing and signed by duly authorized representatives of each of the Parties and shall expressly state that it is
such an amendment or modification. 

        20.7.    Registration
of GLLC's Satellite(s). 

        In
accordance with the Convention on Registration of Objects Launched into Outer Space of U.N.O., GLLC shall be responsible to obtain registration of the Satellite(s). 

        20.8.    Publicity
/ Communication. 

        Any
publicity, news release (including communication of any sort with the press whether direct or indirect, written or oral), public announcement or advertisement to be released by GLLC
in connection with the Satellite(s) Launch(es) activities shall quote STARSEM as the Launch Services provider. 

ARTICLE 21    APPLICABLE LAW  

        This Agreement shall govern the relationship between the Parties as to the subject of this Agreement. To the extent the Parties have failed to address any
question arising hereunder, or in the event of the need for any interpretation of any term of this Agreement, English law shall be applied to this Agreement. 

ARTICLE 22    ARBITRATION  

        In the event of disputes arising in connection with this Agreement, the Parties undertake to use their best efforts to reach an amicable settlement. If an
amicable settlement cannot be achieved, the dispute shall be referred to the respective Chief Executive Officer of STARSEM and of GLLC, who will use their best efforts to reach an agreement acceptable
to both Parties. Should an amicable settlement fail, the dispute(s) shall be finally settled under the rules of Conciliation and Arbitration of the International Chamber of Commerce (I.C.C.) in Geneva
by THREE (3) arbitrators appointed in accordance with the then existing rules of the I.C.C. The Arbitration shall be conducted in the English language. The award of the Arbitrators shall be
final and binding, and the execution thereof may be entered in any court having jurisdiction. 

ARTICLE 23    EFFECTIVE DATE  

        This Agreement shall take effect after signature by the two Parties. 

Executed in Paris on the 19th of September, 2005, in TWO (2) originals.  

	STARSEM	 	GLOBALSTAR LLC
	

/s/  J-Y LE GALL      	
 	

/s/  K. ROSE      
	

J-Y LE GALL	
 	

K. ROSE
	

Chief Executive Officer	
 	

Director of Contracts

28

QuickLinks

Exhibit 10.5

CONFIDENTIAL TREATMENT

STARSEM LAUNCH SERVICES AGREEMENT FOR THE LAUNCH OF THE GLOBALSTAR LLC SPARE SATELLITES BY THE SOYUZ LAUNCH SYSTEM ONE FIRM AND ONE OPTIONAL LAUNCH SERVICESQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.6    
    

 
 

CONFIDENTIAL TREATMENT    
    

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

 
 

QUALCOMM Incorporated
  QUALCOMM Globalstar Satellite Products Supply Agreement
  Agreement No. 04-QC/NOG-PRODSUP-001    
    

This
QUALCOMM Globalstar Satellite Products Supply Agreement ("Agreement") is entered into as of April 13, 2004 (the "Effective Date"), by and between QUALCOMM
Incorporated, a Delaware corporation, ("QUALCOMM") with offices located at 5775 Morehouse Drive, San Diego, CA 92121, and New Operating Globalstar
LLC, a Delaware limited liability company ("Buyer"), with offices located at 3110 Zanker Road, San Jose, CA 95134, with respect to the following facts: 

        Whereas
Buyer desires to purchase from QUALCOMM, and QUALCOMM desires to sell to Buyer, Product(s) for resale to Buyer's customers from time to time under Purchase Orders in accordance
with this Agreement. 

 
 

AGREEMENT    
    

        NOW, THEREFORE, the parties, in consideration of the mutual promises set forth herein, agree as follows: 

1.    DEFINITIONS.    Capitalized terms not defined herein shall have the meaning set forth in the QUALCOMM Supply Terms &
Conditions (the "Supply Terms"), a copy of which is attached hereto as Exhibit A and incorporated herein as fully as if set forth in its entirety
herein: 

"Accessories" shall mean the accessories described on Exhibit B. 

"Diagnostic Monitor" or "UTDM" shall mean QUALCOMM's proprietary software-based diagnostic tool that may
be available for license to Buyer hereunder that operates on a Buyer-supplied, QUALCOMM-specified computer attached by data cable and dongle to a Phone. The Diagnostic Monitor is used as a diagnostic
tool for the sole purpose of evaluating the functionality of the Phone in the Globalstar network. 

"Fixed Phone(s)" shall mean the QUALCOMM Globalstar Fixed Phone, Model GSP-2800 (Base) or Model GSP-2900 (Enhanced), including
battery. 

"Hands-Free Car Kit" or "Car Kit" shall mean QUALCOMM's Model GCK-1410 equipment
designed to allow use of the Tri-Mode Portable Phone in vehicles, including voltage modification for such equipment. 

"Integrator" shall mean a third party which has expertise in the design, development, manufacture and certification of wireless telecommunication
products, and which is approved by QUALCOMM to integrate Satellite Data Modems into, or interface Satellite Data Modems with, other components to produce products for use in the Globalstar System,
pursuant to and in accordance with an Integration Agreement. 

"Integration Agreement" shall mean the agreement to be signed by an Integrator as a requirement for developing, designing, manufacturing, modifying,
marketing, selling, distributing or using any Satellite Data Modem for any application not permitted under the terms of this Agreement, a copy of which is attached hereto as  Exhibit E. 

"Phone(s)" shall mean the Tri-Mode Portable Phone and the Fixed Phone(s). 

 

"Product(s)" shall mean Satellite Data Modems, Phones, Accessories, Car Kits, Spares and Tools available for purchase, or license, as applicable, from
time to time from QUALCOMM. 

"Program Support Tool" or "PST" shall mean QUALCOMM's proprietary software tool that may be available
for license to Buyer hereunder to be loaded on a Buyer-supplied, QUALCOMM-specified computer that provides the capability for service programming and software downloads, and the associated cables. 

"Satellite Data Modem" shall mean the QUALCOMM Globalstar Satellite Data Modem, GSP-1620. 

"Term" shall commence on the Effective Date and continue for two (2) years, unless earlier terminated as provided herein. The Term may be renewed
for one or more additional period(s) subject to the mutual written agreement of the parties. 

"Tools" shall mean UTDM and PST. 

"Tri-Mode Portable Phone" shall mean the QUALCOMM Globalstar Tri-Mode Portable Phone, Model GSP-1600, generically
provisioned and tested by QUALCOMM, without a SIM Card, battery, spares or any accessories, delivered in standard bulk packaging, consisting of individual bag/box units in master pack containers, and
applicable Documentation. Buyer will need to purchase and install batteries from a Globalstar-approved supplier to qualify for warranty coverage as set forth in the Supply Terms. 

"Warranty Period" shall mean (a) as to Phones and Satellite Data Modems, twelve (12) months, and (b) as to Car Kits, ninety
(90) days, in each case beginning on the date of delivery thereof to the FCA Point. No Warranty applies to Accessories or Tools. 

2.    AGREEMENT.    This Agreement, including the Supply Terms, shall apply to each and every P.O. for Product(s) issued to QUALCOMM
by Buyer during the Term. Buyer may resell Product(s) and sublicense Software pursuant to the terms of this Agreement, provided that Buyer and such Distributors shall include with each Product sold or
distributed a copy of the Documentation provided by QUALCOMM for such Product(s). 

3.    PRICE.    The price of Product(s) shall be as set forth on Exhibits B and  C hereto. 

4.    LEVEL 1 SERVICE FOR TRI-MODE PORTABLE PHONES.    Buyer shall, directly or pursuant to arrangements with one
(1) or more dealers in the region(s) in which the Tri-Mode Portable Phones are to be distributed, undertake such steps as are necessary and appropriate to handle Level 1 Service for
the Tri-Mode Portable Phones; such Level 1 Service to be at no cost to QUALCOMM. As applicable, Level 1 Service includes the following (and any other service that is
authorized in writing by QUALCOMM): replace batteries, replace cellular antennas and replace SIM card, if any. All such Level 1 Service will be performed in accordance with QUALCOMM's written
instructions. 

5.    TRAINING.    Subject to the availability of QUALCOMM personnel and upon written request of Buyer to QUALCOMM, QUALCOMM may
provide training support to Buyer at QUALCOMM's then current standard rates at QUALCOMM's San Diego, CA facilities. Such training may consist of information regarding Product features, Level 1
Service repair procedures, and other topics as agreed to between the parties. 

6.    ADDITIONAL TERMS APPLICABLE TO SATELLITE DATA MODEMS.  

        6.1.    Packet Data License Required; Airtime.    Satellite Data
Modems may be distributed, sold and used for (a) asynchronous data applications, and (b) Packet Data Service only on Gateways which are covered by a valid packet data software license
with QUALCOMM. Buyer and its Distributors shall be responsible for obtaining Globalstar airtime and rates for the use of Satellite Data Modems. 

2

 

        6.2.    Product Modification Restrictions.    Satellite Data Modems may be modified only
as set forth in Exhibit D in the column marked "Supply Agreement," and consultation with QUALCOMM's engineering staff is required as noted
thereon. Such consultation shall be provided at QUALCOMM's San Diego facility, subject to staff availability and payment at the Commercial Rates. Modifications set forth in  Exhibit D in the column
marked "Integration Agreement" may only be performed by an
Integrator pursuant to the terms of an Integration Agreement, and any other modifications, including, without limitation, those listed in the column entitled "Not Approved" may not be performed by or
on behalf of Buyer or any third party. 

        6.3.    Environmental Protection.    Buyer acknowledges that the Satellite Data Modem is
a circuit board module requiring environmental protection. These environmental elements include, but are not limited to, temperature variation, humidity, condensation, lightning strikes,
electromagnetic radiation, corrosive agents, ESD, particulates, direct impacts, mechanical shocks and vibrations, and as such, requires Buyer or its Distributors to provide environmental protection
for the Satellite Data Modem. QUALCOMM shall have no liability for Buyer's (or any subsequent purchaser's) failure to sell, distribute or use any Satellite Data Modem in such a manner that provides it
an adequate enclosure or other sufficient environmental protection capabilities therefor. 

        6.4.    Violation of Section is Basis for Termination.    Failure to abide by Sections
6.2 and 6.3 hereof will invalidate all of QUALCOMM's obligations under Section 10 (Warranty) and Section 15 (Indemnification) set forth in the Supply Terms, and shall be grounds for
immediate termination by QUALCOMM of this Agreement and cancellation of any outstanding purchase orders, or quantities remaining thereunder, for Satellite Data Modems. 

7.    ENTIRE AGREEMENT.    This Agreement, including the Supply Terms and other Exhibits attached hereto, constitutes the complete
agreement between the parties relating to the subject matter hereof, and supersedes any prior or contemporaneous agreements or representations affecting such subject matter. 

8.    ORDER OF PRECEDENCE.    In the event of conflict between the Supply Terms and the balance of this Agreement, including the
other Exhibits hereto, the Agreement shall govern. 

9.    THIRD PARTY ARRANGEMENTS.    At the written request of Buyer, QUALCOMM shall offer to any Gateway Affiliate(s) an agreement in
the same form as this Agreement, provided that QUALCOMM shall have the right to include such payment terms, restrictions on the use of QUALCOMM confidential and proprietary information and
restrictions on assignment as deemed appropriate by QUALCOMM in its sole discretion, which terms and restrictions may be less favorable to such Gateway Affiliate(s). 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

	QUALCOMM Incorporated	 	New Operating Globalstar, L.L.C.
	

By:	
 	

/s/ Scott J. Becker
	
 	

By:	
 	

/s/ William F. Adler

	Name:	 	Scott J. Becker	 	Name:	 	William F. Adler
	Title:	 	Sr. Vice President & General Manager

QUALCOMM Wireless Systems Division	 	Title:	 	VP Legal and Regulatory

3

 
 

EXHIBIT A    
    

 
  QUALCOMM Supply Terms & Conditions
  
  December 2, 2003    
    

The
terms and conditions set forth herein (the "Supply Terms") shall apply to all arrangements for the order, purchase, sale and delivery of QUALCOMM products for use in the Globalstar System, except
and to the extent the agreement covering the sale thereof ("Supply Agreement") provides otherwise, and a copy hereof shall be attached to each such Supply Agreement. 

1.    DEFINITIONS.    The following capitalized terms shall have the meanings set forth below: 

"Affiliate(s)" shall mean any person or entity (i) which directly or indirectly controls, or is controlled by, or is under common control with a
party or (ii) which, if publicly traded, has twenty percent (20%) or more of the voting securities directly or indirectly beneficially owned by a party. The term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity, whether through ownership of voting securities, by contract or otherwise. 

"Aviation" shall mean any vehicle/container that leaves direct contact with the earth or an associated ground structure, is propelled or carried through
the air, and which may be subject to regulation by the in-country aviation authority(ies). 

"Buyer" shall mean the party identified as "Buyer" or "Customer" in the applicable Supply Agreement. 

"Commercial Rates" shall mean the rates charged by QUALCOMM for development, installation and other types of services, a current listing of which is
attached hereto as Attachment 5, and shall be adjusted annually upon written notice to Buyer. 

"Distributor" shall mean Buyer's agents and resellers of Buyer's services and/or Globalstar products, including Products. 

"Documentation" shall mean the standard end-user and other non-proprietary documentation provided with Product(s) by QUALCOMM. 

"Effective Date" shall be the effective date set forth in the applicable Supply Agreement. 

"Factory Refurbished Unit" shall mean a Product which is the same as or equivalent to a Product that is returned for warranty service, which has been
restored to good working order and refurbished in accordance with QUALCOMM's standard procedures, in a condition at least as good as the unit returned, which has been reprogrammed with the most
current version of Software, shipped in non-retail packaging and covered by a warranty equal to the greater of (a) ninety (90) days from QUALCOMM's delivery thereof to the
FCA Point or (b) the time remaining in the Warranty Period covering the original Product. 

"FCA Point" shall mean QUALCOMM's San Diego manufacturing facility or such other QUALCOMM facility as QUALCOMM may notify Buyer from time to time. 

"Gateway" shall mean the ground system hardware, owned by Buyer or the Gateway Affiliates, and the associated installed software owned by QUALCOMM and
its licensors used on the Globalstar System. 

"Gateway Affiliate(s)" shall mean an owner, operator or service provider of one or more Globalstar System Gateways. 

"Globalstar" shall mean Globalstar LP, a Delaware limited partnership or its successor in bankruptcy, as applicable. 

"Globalstar System" shall mean the low earth orbit satellite based system designed by Globalstar to provide wireless telecommunication services
worldwide. 

 

"Information" shall have the meaning set forth in the Non-Disclosure Agreement, a copy of which is attached to these Supply Terms as  Attachment 1. 

"Marks" shall mean the QUALCOMM trademarks which QUALCOMM places on Product(s). 

"NTF" or ("No Trouble Found") shall mean a Product returned to QUALCOMM which QUALCOMM has, in good
faith and after applicable testing, found not to be defective. 

"Packet Data Service" shall mean a method for transferring data packets over the Globalstar System to a packet-switched network, such as the Internet or
private networks. 

"Product(s)" shall have the meaning set forth in the applicable Supply Agreement. 

"Purchase Order" or "P.O." shall mean Buyer's written authorization issued to QUALCOMM for the purchase
of Product(s) pursuant to the applicable Supply Agreement, including these Supply Terms. 

"Repair Prices" shall mean QUALCOMM's prices for repair of Products, a current listing of which is attached hereto as Attachment
2, and may be adjusted annually upon written notice to Buyer. 

"Reserved Service(s)" shall mean (i) mobile data messaging and position location services utilizing data only terminals that are based on
QUALCOMM technology for in-cab driver communications related to the maintenance and/or monitoring of commercial trucking fleets, trailers, rail cars and/or vessels used on inland waterways
and (ii) mobile data messaging and position location services utilizing data only terminals that are based on QUALCOMM technology for the maintenance and/or monitoring of
off-highway heavy construction vehicles and equipment. Each of the foregoing restrictions shall apply (i) only in the geographic regions of the United States, Canada, Mexico,
Brazil, and Europe (including Russia) and (ii) only until the expiration of three years after April 13, 2004. Reserved Service shall not include any such services used by the United
States Department of Defense or any other United States or foreign governmental agency or entity. 

"RMA Number" shall mean a Return Material Authorization number obtained from QUALCOMM in accordance with the RMA Procedures. 

"RMA Procedures" shall mean the set of procedures found on QUALCOMM's official website which describes the process and documentation required for the
return by Buyer of any Product(s) to QUALCOMM. Copies of the RMA Procedures and the Out-of-Warranty Repair Agreement are attached hereto as Attachments
3 and 4, respectively. 

"Software" shall mean the software in executable form which is contained in Product(s). 

"Term" shall be the term set forth in the applicable Supply Agreement. 

"Termination Charges" shall mean, as to Product(s) which are not delivered under a P.O. due to cancellation by Buyer or termination thereof by QUALCOMM
due to Buyer's default, the greater of (a) the sum of (i) the price paid or incurred by QUALCOMM for any components or materials purchased for such Product(s) to the extent such
components or materials cannot be returned for a refund, (ii) any termination charges invoiced to QUALCOMM by its suppliers for the return of such components or materials,
(iii) QUALCOMM's cost in assembling or manufacturing efforts to produce such Product(s), and (iv) a fee of fifteen percent (15%) of the foregoing items; or (b) twenty percent
(20%) of the purchase price of the undelivered Product(s) (without application of any discounts). 

"Warranty Period" shall mean the duration of the warranty for Product(s) set forth in the applicable Supply Agreement. 

2

 

2.    PURCHASE OF PRODUCT(S).    These Supply Terms are an integral part of the Supply Agreement to
which they are attached and such Supply Agreement shall apply to each and every P.O. issued thereunder unless the parties expressly agree in writing that such Supply Agreement, these Supply Terms, or
a particular provision thereof, does not apply, and each such P. O. shall be subject thereto. Subject to the following sentence, each P.O. accepted by QUALCOMM in writing and the applicable Supply
Agreement, including these Supply Terms, shall constitute the entire agreement between Buyer and QUALCOMM with respect to the purchase, sale and delivery of the Product(s) described in such P.O. Any
terms or conditions stated by QUALCOMM in any invoice or by Buyer in any P.O., acknowledgment, or otherwise, that are different from, or in addition to, such Supply Agreement, shall be of no force and
effect, and no course of dealing, usage of trade, or course of performance shall be relevant to explain or modify any term expressed in the Supply Agreement. 

	3.
	 ORDERS.  

        3.1    P.O. Placement by Buyer.    From time to time during the
Term, Buyer may purchase Product(s) in the quantities and at the prices set forth in the applicable Supply Agreement by submitting to QUALCOMM, Attn: Wireless Systems Division Contracts Department, a
P.O. stating the quantities of Product(s) which Buyer desires to purchase, method of shipment, ship-to address, invoice address, name and contract number of the applicable Supply
Agreement, and the requested delivery date(s). 

        3.2    P.O. Acceptance/Rejection by QUALCOMM.    QUALCOMM is not obligated to accept any
P.O. from Buyer and a P.O. becomes a part of the applicable Supply Agreement in accordance with Section 2 above only after such P.O. is accepted in writing by QUALCOMM. If any P.O. is rejected
by QUALCOMM, QUALCOMM will advise Buyer in writing the reasons therefor. 

Buyer
acknowledges that if quantities of Product(s) or components therefor are limited, orders will be accepted and filled on a "first ordered" basis. 

Buyer
further understands and acknowledges that QUALCOMM may reject a P.O. if Buyer's account with QUALCOMM is in arrears or if Buyer is in default under the applicable Supply Agreement. 

        3.3    Cancellation of P.O. by Buyer.    If approved by QUALCOMM, Buyer may cancel any
portion of an accepted P.O. covering Product(s) in QUALCOMM's inventory at the time such P.O. was accepted by QUALCOMM, subject to payment of a restocking fee calculated as [*]
of the Product price (without application of any discount) relating to the cancelled portion of the P.O. If cancellation is of Products manufactured to order, Termination Charges will apply unless
QUALCOMM chooses to build and retain such Products, and associated components, for inventory, in which case the restocking fee of [*] applies. 

	4.
	RIGHT TO RESELL/OBLIGATIONS AS RESELLER.  

        4.1    Appointment as Reseller.    This is a
non-exclusive agreement. Buyer may resell Product(s) and sublicense Software to Distributors for further resale and sublicense pursuant to a written document containing terms and
conditions equivalent to those set forth in the applicable Supply Agreement, including these Supply Terms. Buyer shall undertake all reasonable commercial efforts to enforce such terms and conditions,
including termination of further sales to any Distributor which
breaches such terms and conditions, and in the event such breach continues, Buyer shall, at QUALCOMM's request, assign to QUALCOMM the right to enforce any such terms and conditions. 

        4.2    Customer Support.    Buyer shall bear full responsibility for providing customer
support in a manner which, at a minimum, meets all legal requirements in the jurisdiction where it resells Product(s). 

5.    CONFIRMATION OF TESTING.    QUALCOMM shall provide to Buyer with each delivery of Product written
confirmation in QUALCOMM's standard format that the Product(s) have passed each 

3

 

of
the manufacturing and/or quality tests and been provisioned, in each case, as appropriate to such Product(s). 

	6.
	DELIVERY; RISK OF LOSS.  

        6.1    Delivery Terms.    All deliveries of Product(s) shall be
made FCA (INCOTERMS 2000) to the FCA Point, and Buyer shall pay all shipping charges directly to carrier. In the absence of written shipping instructions from Buyer, QUALCOMM will select the carrier
and so notify Buyer. 

        6.2    Title and Risk of Loss.    Title to Product(s) (except Software, which is
licensed) sold to Buyer and risk of loss or damage to Product(s) shall pass to Buyer upon QUALCOMM's delivery of such Product to the FCA Point. 

        6.3    Rescheduling of Deliveries.    Deliveries may be rescheduled upon thirty
(30) days written notice to other party. Delays greater than sixty (60) days shall entitle QUALCOMM to invoice and be paid as if delivery had been made when scheduled, provided QUALCOMM
was prepared to ship on such date. At the request of Buyer, QUALCOMM will use reasonable commercial efforts to expedite shipments. 

7.    RESTRICTED EXPORT.    Buyer acknowledges that all Products and all proprietary data, knowhow,
software or other data or information ("Information") obtained from QUALCOMM are subject to United States (US) Government export control laws and accordingly their use, export and
re-export, may be restricted or prohibited. Buyer, therefore, agrees not to directly or indirectly export, re-export, or cause to be exported or re-exported, any
such Products, Information, or any direct product thereof, to any destination or entity prohibited or restricted under US law, unless it shall have first obtained prior written consent of the US
Department
of Commerce (or other applicable agency of the US Government, either in writing or as provided by applicable regulation, as the same may be amended from time to time), a copy of such consent to be
provided to QUALCOMM prior to export by Buyer. Buyer agrees that no Products or Information received from QUALCOMM will be directly employed in missile technology, sensitive nuclear, or chemical
biological weapons end uses or in any manner transferred to any party for any such end use. This requirement shall survive any termination or expiration of the Supply Agreement. 

8.    INSPECTION; ACCEPTANCE.    Buyer shall inspect and either accept or reject Product(s) within
thirty (30) days after the date of delivery to the FCA Point. If Buyer fails to effectively reject any Product in a written document delivered to QUALCOMM stating the reasons therefor within
such period, Buyer shall be deemed conclusively to have accepted such Product and thereafter, Buyer's remedy for Product defects shall be limited to the applicable warranty described in
Section 10. Product(s) properly rejected by Buyer in accordance with this Section 8 shall be returned in accordance with the RMA Procedures, and all shipping charges for the return and
replacement of rejected Product(s), exclusive of duties and taxes, shall be paid by QUALCOMM. Any Product(s) rejected by Buyer which are determined to be NTF shall be subject to the NTF procedures set
forth below. 

	9.
	PRICE; PAYMENT TERMS.

        9.1    Price.    The price of Product(s) delivered, including any applicable discounts,
shall be as set forth in the applicable Supply Agreement. All amounts stated are in U.S. Dollars. QUALCOMM's prices do not include any applicable sales, use, excise, value-added and/or withholding
taxes, customs duties, fees, freight, insurance and delivery charges, or any other taxes, fees or charges. All taxes, fees, customs duties and other charges imposed in connection with the sale and
delivery of Product(s) shall be timely paid directly by Buyer. In the event QUALCOMM is legally required to and actually pays any such taxes, fees, customs duties or charges, Buyer shall reimburse
QUALCOMM therefor within thirty (30) days of QUALCOMM's invoice date. 

4

 

Buyer
shall have the right to request that QUALCOMM aggregate, for the purpose of qualifying for volume pricing and/or discounts, P.O.s placed by Buyer and P.O.s placed by Gateway Affiliates,
Distributors, and other customers of Buyer. 

        9.2    Payment Terms.    QUALCOMM's payment terms are twenty-five percent
(25%) due following P.O. placement and prior to delivery, and seventy-five percent (75%) within thirty (30) days after FCA delivery, unless otherwise agreed to in writing by
QUALCOMM. QUALCOMM will invoice Buyer 25% of the purchase price within one (1) business day of the P.O.
acceptance date, and 75% of the purchase price within one (1) business day of the date QUALCOMM delivers to the FCA Point, on a NET 30 basis. 

        9.3    Change in Payment Terms.    In the event that Buyer fails to make payments on a
timely basis, QUALCOMM shall have the right to condition further deliveries under open P.O.s, and/or acceptance of additional P.O.s on Buyers payment of the full price for Product(s) covered thereby
prior to delivery. 

        9.4    Late Payments and Charges.    Buyer shall pay to QUALCOMM a late charge on any
undisputed past due amounts at the rate of one percent (1.0%) per month or part thereof or the maximum amount permitted by law, whichever is less. 

        9.5    Disputed Charges.    In the event that Buyer disputes an amount invoiced by
QUALCOMM, Buyer shall promptly notify QUALCOMM in writing of the basis for such dispute, and shall pay the undisputed portion of such invoice as set forth herein. 

        9.6    Payment Method.    Payment shall be made via wire transfer, unless otherwise
agreed to in writing by QUALCOMM. Payment shall be in U.S. Dollars (USD) by Buyer in favor of QUALCOMM at the bank location set forth below, or such other bank location as QUALCOMM may from time to
time designate in writing: 

Bank
of America

San Francisco, California

ABA# 121-000-358 Int: S.W.I.F.T. No. [*]

For credit to QUALCOMM Incorporated

Account [*] 

	10.
	WARRANTIES.

        10.1    Hardware.    QUALCOMM warrants only to Buyer that the Product(s) (excluding the
Software contained therein) will (a) be free from defects in material and workmanship under normal use as permitted hereunder and (b) conform to QUALCOMM's specification for said
Product(s) for the Warranty Period. QUALCOMM's entire liability and Buyer's sole remedy for breach of the above warranty shall be the return of the allegedly defective Product(s) to QUALCOMM or
QUALCOMM's designated service center at Buyer's sole expense, all in accordance with the RMA Procedures, within thirty (30) days of the identification of the defect. 

        10.2    Software.    QUALCOMM warrants that the Software contained in the Product(s) will
be free from material programming errors that substantially impair the intended operation thereof for the Warranty Period. In the event of a breach of the above warranty that is reproducible by
QUALCOMM, QUALCOMM shall use reasonable commercial efforts to provide a software work-around or correction. 

        10.3    Services.    QUALCOMM warrants that any services performed pursuant to any Supply
Agreement will be performed in a professional and workmanlike manner. 

        10.4    Exclusions.    No warranty, express or implied, shall extend to any Software or
any Product(s) which has been subjected to misuse, neglect, accident, or improper storage or installation or which has 

5

 

been
repaired, modified, or altered by anyone other than QUALCOMM or QUALCOMM's authorized representative. In addition, unless approved in writing by QUALCOMM as described in Section 11 hereof,
the warranty does not extend to any Product(s) which are attached to or used with accessories, batteries, connectors, cabling or other items not provided by QUALCOMM. Product(s) are not specifically
warranted to be appropriate for incorporation and use in any other product or for any use prohibited in the applicable Documentation or Supply Agreement. Buyer hereby acknowledges and agrees that it
has not relied on any representations or warranties other than those expressly set forth herein. QUALCOMM MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO PRODUCT(S) OR SOFTWARE,
INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR AGAINST INFRINGEMENT, OR ANY EXPRESS OR IMPLIED WARRANTY ARISING OUT OF TRADE USAGE OR OUT OF A
COURSE OF DEALING OR COURSE OF PERFORMANCE. 

        10.5    Warranty Process.    In the event of an alleged defect of Product(s) covered by
warranty, Buyer shall obtain an RMA Number and return the Product(s) in accordance with the RMA Procedures within thirty (30) days after the issuance of the RMA Number. If Product(s) returned
by Buyer in accordance with the RMA Procedures are determined by QUALCOMM to be defective and covered by warranty, QUALCOMM shall use reasonable commercial efforts to, within thirty (30) days
of receipt of Product(s), at its option, repair or replace such Product and ship such Product to Buyer at QUALCOMM's expense (excluding taxes and customs duties imposed in connection with the return
of Product(s) if applicable) or, if QUALCOMM determines that it is unable to repair or replace such Product, QUALCOMM shall credit to Buyer's account the amount of the unit purchase price paid
therefor. QUALCOMM shall have the right to ship as a replacement a Factory Refurbished Unit. QUALCOMM's obligation to effect the warranty remedy set forth herein shall be subject to Buyer's shipment
of defective Product(s) in strict accordance with the RMA Procedures. 

        10.6    "No Trouble Found" or "NTF".    If Buyer's levels of NTF returns are reasonably
determined by QUALCOMM to be excessive, Buyer shall be notified and thereafter billed the sum of sixty dollars
(US$60) per occurrence for the NTF evaluation. Buyer shall pay for shipping to and from QUALCOMM for all NTF units. 

        10.7    Returned Product(s) Not Covered by Warranty.    In the event Product(s) not
covered by warranty can be economically repaired, QUALCOMM shall contact Buyer for authorization to repair and provide an estimate of the costs therefor, based on the Repair Prices plus an evaluation
fee of sixty (US$60). If authorized by Buyer, QUALCOMM shall attempt to repair such Product(s) within the estimate and return same to Buyer at Buyer's cost. Buyer shall pay for such repair upon
invoice from QUALCOMM. If QUALCOMM is unable to repair non-warranted Product(s), or Buyer does not authorize repair, QUALCOMM will return same to Buyer at Buyer's cost or scrap the same
without liability to Buyer. 

11.    PRODUCT USES AND RESTRICTIONS.    Buyer shall, and shall require its Distributors and other
customers to market, distribute, sell and use the Product(s) and sublicense and use the Software solely in accordance with and for the purposes contemplated in the applicable Documentation and Supply
Agreement. No data only Product(s) shall be marketed or sold for any Reserved Service, nor may any Product be incorporated into any other product developed, marketed, produced, sold or permitted to be
used for or in any Reserved Service or, unless otherwise provided in an Integration Agreement executed by QUALCOMM and a product integrator approved by QUALCOMM, for Aviation applications  (other than QUALCOMM's Globalstar
Aviation Communications Kit, MCN #65-C1748-X). 

        11.1    In the event that any third party item(s) not provided by QUALCOMM will be used in conjunction with the Products, prior to any such use or
incorporation, Customer or third party must provide QUALCOMM all such items for analysis and testing by QUALCOMM at Buyer's expense.  

6

 

 Such analysis and/or testing shall be repeated by QUALCOMM at its sole option, at Buyer's expense, if problems occur and/or if changes are made once the item(s) have been analyzed and tested by
QUALCOMM.

12.    RESTRICTIONS ON USE OF TRADEMARKS AND LOGOS.    In order that each party may protect its
trademarks, trade names, corporate slogans, corporate logo, goodwill and product designations, no party, without the express written consent of the other, shall have the right to use any such marks,
names, slogans or designations of the other party, in the sales, lease or advertising of any products or on any product container, component part, business forms, sales, advertising and promotional
materials or other business supplies or material, whether in writing, orally or otherwise, except as expressly agreed by the parties. Nothing in this Section shall restrict Buyer from distributing
Product(s) with the Marks. 

13.    NO TRANSFER OF INTELLECTUAL PROPERTY RIGHTS IMPLIED.    The sale to Buyer of Product(s) does not
convey to Buyer any intellectual property rights in such Product(s) or any Software, including but not limited to any rights under any patent, trademark, copyright, or trade secret other than as set
forth in Section 14. Neither the sale of Product(s), the license of Software nor any provision in any Supply Agreement shall be construed to grant to Buyer, either expressly, by implication or
by way of estoppel, any license under any patents or other intellectual property rights of QUALCOMM or its licensors covering or relating to any other product or invention or any combination of
Products or software with any other product. 

14.    SOFTWARE LICENSE.    Product(s) sold hereunder may contain or be accompanied by Software and,
except as otherwise expressly provided herein, all references to "Product(s)" herein shall be deemed to include the accompanying Software, provided that nothing herein shall be construed as the sale
of, or passage of title in, any Software or any other intellectual property embedded in the Product to Buyer. QUALCOMM hereby grants to Buyer a non-exclusive, worldwide license to
sublicense the Software and to use the Software (in object form only) solely as included and intended to be used in the Products purchased by Buyer from QUALCOMM and for use only in the manner which
QUALCOMM intends the Software to be used, for the duration of the useful life of such Product(s) and subject to the terms and conditions of the applicable Supply Agreement. Buyer shall not and shall
not permit any third party to, without the prior written consent of QUALCOMM: (i) alter, modify, translate, or adapt any Software or create any derivative works based thereon; (ii) copy
any Software; (iii) assign, sublicense or otherwise transfer the Software in whole or in part, except as permitted herein; (iv) use the Software except as specifically contemplated in
the applicable Supply Agreement; or (v) disclose the Software to any third party. The entire right, title and interest in the Software shall remain with QUALCOMM, and Buyer shall not remove any
copyright notices or other legends from the Software or any accompanying documentation. Buyer may reproduce and distribute any Documentation provided by QUALCOMM for distribution with the Product, in
whole or in part, for purposes related to the operation, maintenance, marketing or sale thereof. 

Buyer
may sublicense to its Distributors the right to further sublicense to bona fide end user customers the right to use the Software only as incorporated in the Product, subject to terms at least as
protective of QUALCOMM's rights therein as the provisions of the applicable Supply Agreement and such right shall survive termination or expiration of such Supply Agreement and last for the duration
of the useful life of the Product. If Buyer, and Buyer's Distributors, do not take reasonable steps to enforce their rights under such software sublicense agreements, Buyer shall take all reasonable
steps necessary to ensure that the right to enforce such software sublicense agreements is transferred and assigned to QUALCOMM. 

Buyer
shall use the Products and Software contained therein or furnished by QUALCOMM solely in accordance with and for the purposes specifically contemplated in the terms of the applicable Supply
Agreement. Buyer shall not, and shall not permit any third party to, directly or indirectly, alter, modify, 

7

 

translate,
or adapt any Product or Software contained therein or create any derivative works based thereon, disassemble, decompose, reverse engineer, or analyze the physical construction of, any of
the Products or Software or any component thereof for any purpose. 

	15.
	INDEMNIFICATION.  

        15.1    Misuse.    Buyer shall indemnify, defend and hold
harmless QUALCOMM, its Affiliates, and their directors, officers, agents and employees against any and all losses, claims, demands, damages and expenses (including reasonable attorneys' fees) arising
out of (i) any misuse or modification of the Product(s) sold hereunder, (ii) any unauthorized or unlawful use or distribution of the Product(s) sold hereunder, (iii) any breach of
the Non-Disclosure Agreement described in Section 18 hereof, or (iv) any unlawful acts or omissions by Buyer or its Service Providers, or military and aviation application
customers, including any nonpayment of taxes, duties or other assessments relating to the transactions contemplated by the applicable Supply Agreement. If a military or aviation application customer
is deemed by QUALCOMM to be a viable indemnifier based on various factors, including without limitation, its capitalization, financial status, and the nature of the product/application, and such
customer is willing to indemnify QUALCOMM to the same extent as required in this Section 15.1, QUALCOMM will accept a written indemnification directly from such customer with respect to such
customer for the product/application specified in lieu of the indemnification by Buyer for acts or omissions by such customer. For purposes of this Section 15.1, "misuse" shall mean any use of
the Product(s) other than as prescribed in this Agreement. 

        15.2    Third-Party Claims.    QUALCOMM shall indemnify, defend and hold harmless Buyer,
its Affiliates, and their directors, officers, agents and employees against any losses, claims, demands, damages and expenses (including reasonable attorneys' fees) brought or raised in any
jurisdiction in the United States or Canada, arising out of or related to any incident of personal injury or property damage which the Product, when used in accordance with the Documentation, has
directly or indirectly caused or is alleged to have caused, in whole or in part. Buyer shall indemnify, defend and hold harmless QUALCOMM, its Affiliates, and their directors, officers, agents and
employees against any losses, claims, demands, damages and expenses (including reasonable attorneys' fees) arising out of or related to any incident of personal injury or property damage which Buyer's
products, for reasons other than the presence of the Product(s), has caused or is alleged to have caused, in whole or in part. 

        15.3    By Buyer—Infringement.    Buyer shall indemnify, defend, and hold
harmless QUALCOMM, its Affiliates, and their directors, officers, agents and employees, from and against all
suits and claims for infringements or violations (or alleged infringements or violations) of any United States patent, trademark, copyright, trade secret or other intellectual property rights of any
third party: (i) caused by Buyer's modification of any Product(s) or caused by the modification of any Product(s); or (ii) arising from any markings, logos or features other than the
Marks. If a military or aviation application customer is deemed by QUALCOMM to be a viable indemnifier based on various factors, including without limitation, its capitalization, financial status, and
the nature of the product/application, and such customer is willing to indemnify QUALCOMM to the same extent as required in this Section 15.3, QUALCOMM will accept a written indemnification
directly from such customer with respect to such customer for the product/application specified in lieu of the indemnification by Buyer for acts or omissions by such customer. 

        15.4    Procedure for Indemnification.    With respect to indemnification pursuant to
Section 15.1, 15.2 or 15.3, (i) the indemnified party shall give the indemnifying party prompt written notice of any claim or action for which the indemnified party is claiming
indemnification hereunder; (ii) the indemnifying party shall be given the opportunity to control the defense or settlement of each such claim or action; and (iii) the indemnified party
shall cooperate with, and provide reasonable information and assistance to, the indemnifying party in the defense and/or settlement of each such claim or action at the indemnifying party's expense,
provided that failure to comply with (i), (ii) and 

8

 

(iii) shall
not affect the indemnifying party's obligation hereunder unless and to the extent the indemnifying party is materially prejudiced thereby. The indemnifying party shall pay all sums,
including without limitation reasonable attorneys' fees, damages, losses, liabilities, expenses, and other costs, that by final judgment or decree, or in settlement of any suit or claim to such
indemnifying party agrees, may be assigned against the indemnified party, its Affiliates, directors, officers, managers, members, agents, and employees on account of the claim indemnified against. 

        15.5    By QUALCOMM—Infringement.    QUALCOMM shall indemnify, defend, and
hold harmless Buyer, its Affiliates, and their directors, officers, agents and employees, from and against all suits and claims that the Product(s) infringes or violates (or allegedly infringes or
violates) any United States patent, trademark, copyright, trade secret or other intellectual property rights of any third party. QUALCOMM agrees that it will pay all sums, including, without
limitation, reasonable attorneys' fees, damages, losses, liabilities, expenses and other costs, which, by final judgment or decree, or in settlement of any suit or claim to which QUALCOMM agrees, may
be assessed against Buyer, its Affiliates, directors, officers, agents, employees, on account of the foregoing, provided that: (a) QUALCOMM is given prompt written notice of such claim or
action; (b) QUALCOMM is given the opportunity to control the defense or settlement of such claim or action; and (c) Buyer will cooperate with QUALCOMM to provide reasonable information
and assistance in the defense and/or settlement of any such claim. 

16.    TERMINATION FOR CAUSE.    The occurrence of any of the following shall constitute a material
default and breach of the applicable Supply Agreement and shall allow the non-defaulting party to terminate such Supply Agreement and any outstanding Purchase Orders or portions thereof
after the expiration of the applicable period of cure, if any; 

	(a)
	Any
unauthorized disclosure of either party's confidential information as set forth in Section 18 below shall allow the non-defaulting party to terminate
immediately;

	(b)
	Any
unauthorized use, sale or distribution of the Product(s) other than as set forth herein, misuse of the Marks, or the performance by Buyer of unauthorized modifications to the
Product(s) shall permit QUALCOMM to terminate immediately;

	(c)
	The
dissolution, liquidation or discontinuance of business operations of either party shall permit the other party to terminate immediately;

	(d)
	Any
material default by either party of an obligation, condition or covenant of the Supply Agreement which, if curable, is not cured within thirty (30) days of the date after
the other party notifies the defaulting party of such default. 

In
the event of termination by Customer due to QUALCOMM breach that remains uncured, QUALCOMM shall stop work as directed in the termination notice and use best efforts to mitigate expenditures. 

If
termination is by QUALCOMM, Buyer shall pay QUALCOMM the Product price for the delivered units and the applicable cancellation fees set forth in Section 3.3 hereof. If termination is by
Buyer, Buyer shall pay QUALCOMM the Product price for the delivered units, plus QUALCOMM's costs to supplier(s) for part(s) ordered by QUALCOMM that cannot be cancelled or returned for refund. In that
event, those part(s) for which QUALCOMM receives full payment from Buyer shall be delivered to Buyer, subject to any licensing requirements. 

17.    LIMITATION OF LIABILITY.    IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER, NOR SHALL
QUALCOMM BE LIABLE TO BUYER'S DISTRIBUTORS OR CUSTOMERS, FOR ANY INCIDENTAL, INDIRECT, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING BUT NOT LIMITED TO ANY LOST PROFITS, LOST SAVINGS, OR OTHER
INCIDENTAL DAMAGES, ARISING OUT OF THE SUPPLY AGREEMENT 

9

 

INCLUDING
BUT NOT LIMITED TO, THE USE OR INABILITY TO USE, OR THE DELIVERY OR FAILURE TO DELIVER, ANY PRODUCT(S) OR ANY SOFTWARE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THE FOREGOING LIMITATION OF LIABILITY SHALL REMAIN IN FULL FORCE AND EFFECT REGARDLESS OF WHETHER A PARTY'S REMEDIES HEREUNDER ARE DETERMINED TO HAVE FAILED OF THEIR ESSENTIAL PURPOSE.
FURTHER, THE ENTIRE LIABILITY OF EITHER PARTY, AND THE SOLE AND EXCLUSIVE REMEDY OF ANY PARTY, FOR ANY CLAIM OR CAUSE OF ACTION ARISING HEREUNDER (WHETHER IN CONTRACT, TORT, OR OTHERWISE) SHALL NOT
EXCEED THE PURCHASE PRICE FOR THE PRODUCT WHICH IS THE SUBJECT OF SUCH CLAIM OR CAUSE OF ACTION. 

18.    RESTRICTIONS ON DISCLOSURE AND USE.    The terms of the Mutual Non-Disclosure
Agreement between Buyer and QUALCOMM, Attachment 1, shall govern the exchange of all confidential and/or proprietary information between the parties
under the applicable Supply Agreement. 

	19.
	COMPLIANCE WITH LAWS; PERMITS. 

        19.1    Compliance with Laws.    Each party shall comply with all applicable required
U.S. laws, regulations and codes, in the performance of the applicable Supply Agreement. Nothing contained in any Supply Agreement shall require or permit Buyer or QUALCOMM to do any act inconsistent
with the requirements of: (a) the regulations of the United States Department of Commerce; or (b) the foreign assets controls or foreign transactions controls regulations of the United
States Treasury Department; or (c) of any similar United States law, regulation or executive order; or (d) any applicable law or regulation, as the same may be in effect from time to
time. Buyer will comply with all laws and regulations of the United States of America applicable to its activities under the applicable Supply Agreement, including but not limited to U.S. Export
Administration Regulations. Further, Buyer shall comply with the laws of all countries in which Buyer imports any Products in the importation, marketing, sale, distribution, warranty and use thereof.
Each party shall indemnify the other party and its officers, directors, employees and permitted assigns and successors against any losses, damages, claims, demands, suits, liabilities, penalties and
expenses, (including reasonable attorneys' fees) that may be sustained by reason of such party's failure to comply with this Section 19. 

        19.2    Licenses and Permits.    QUALCOMM warrants that the Phone(s), Car Kit(s), and the
Satellite Data Modems have been type-certified by the U.S. Federal Communications Commission. Buyer and its Distributors shall be solely responsible for obtaining all other permits,
certifications and approvals required by law or regulation, including any such permits, certifications and approvals, or any other governmental approval that may be required to market, manufacture,
sell or distribute the Product(s). At Buyer's request, QUALCOMM shall reasonably assist Buyer at Buyer's expense. 

20.    INSURANCE.    Buyer and Buyer's Distributors shall at all times, at their own cost and expense,
carry and maintain the insurance coverage required by law and commercially standard in the jurisdiction(s) and industry(ies) where any Product may be sold. Buyer shall provide a certificate of
insurance to QUALCOMM upon request and shall require its insurer(s) to advise QUALCOMM in writing within sixty (60) days prior to any changes or cancellations being made to such policy(ies). 

21.    PARTY RELATIONSHIP.    It is expressly understood that the parties intend and establish only the
relationship of independent contractors. No party shall have any authority to create or assume in the name of or on behalf of the other party any obligation, express or implied, to act or to purport
to act as the agent or legally empowered representative of the other party for any purpose whatsoever. 

22.    ASSIGNMENT.    Neither the Supply Agreement nor any rights, duties or interest herein, shall be
assigned, transferred, pledged or hypothecated or otherwise conveyed by either party without other party's prior written consent, which shall not be unreasonably delayed or withheld. Notwithstanding, 

10

 

after
December 31, 2006 and upon notice to Buyer, QUALCOMM may transfer the Supply Agreement in connection with any transfer or sale by QUALCOMM to a third party without consent (other than a
direct competitor of Buyer) of its Globalstar-related business, so long as such third party acquires or arranges for sufficient resources to perform its obligations thereunder. For purposes of this
Section 22, "assignment" shall be deemed to include any transaction or series of transactions which results in an aggregate change in ownership or control of fifty percent (50%) or more of the
Buyer. Any assignment or delegation in contravention of this Section shall be void. 

23.    DISPUTE RESOLUTION.  

        23.1    Good Faith Negotiations.    The parties shall attempt to
resolve by good faith and diligent negotiation any dispute, controversy or claim between them arising out of or relating to the Supply Agreement, or the breach, termination or invalidity thereof. If
such negotiations are not initiated within thirty (30) days of one party's request to the other for negotiations and/or concluded within sixty (60) days after initiation, either party
may initiate legal proceedings in accordance with this Section. 

        23.2    Applicable Law: Jurisdiction.    The Supply Agreement shall be construed and the
rights of the parties shall be determined, in all respects, according to the laws of the State of California (USA), without giving effect to the principles of conflicts of law thereof. The Supply
Agreement shall not be governed by the provisions of the 1980 United Nations Conventions on Contracts for the International Sale of Goods. The parties hereto expressly consent and submit to the
exclusive jurisdiction of the courts of California for the adjudication or disposition of any claim, action or dispute arising out of the Supply Agreement. The prevailing party thereto will be
entitled to recover its expenses including, without limitation, reasonable attorney's fees. 

        23.3    Admissibility.    ALL DISCUSSIONS AND DOCUMENTS PREPARED PURSUANT TO ANY ATTEMPT
TO RESOLVE A DISPUTE UNDER THIS PROVISION ARE CONFIDENTIAL AND FOR SETTLEMENT PURPOSES ONLY AND SHALL NOT BE ADMITTED IN ANY COURT OR OTHER FORUM AS AN ADMISSION OR OTHERWISE AGAINST A PARTY FOR ANY
PURPOSE. 

24.    FORCE MAJEURE.    Neither party shall be in default or liable for any loss or damage resulting
from delays in performance or from failure to perform hereunder due to any causes beyond its reasonable control, which causes include but are not limited to acts of God or the public enemy; riots or
insurrections; war; fire; strikes and other labor difficulties (whether or not the party is in a position to concede to such demands) embargoes; judicial action; lack of or inability to obtain
necessary labor, materials, energy, components or machinery; and acts of civil or military authorities. Should an event of Force Majeure occur, the party so affected shall give prompt written notice
to the other party of such cause and its effect on its ability to perform under the applicable Supply Agreement. If the event of Force Majeure is not resolved and performance reinstated within one
hundred twenty (120) days after notice thereof, either party may terminate such Supply Agreement, without further obligation to the other with respect to the unperformed obligation and without
the application of any Termination Charges. 

25.    NOTICES.    All notices, requests, demands, consents, agreements and other communications
required or permitted to be given under this Supply Agreement shall be in writing and shall be mailed to the Party to whom notice is to be given, by first class mail, postage prepaid or sent by,
facsimile and electronically confirmed, or via delivery service, properly addressed as set forth below. Notice shall be 

11

 

deemed
received upon the earlier of actual receipt or (i) one (1) business day after confirmed facsimile or delivery or (ii) five (5) business days after deposit into the
U.S. mail. 

	QUALCOMM Incorporated

5775 Morehouse Drive

San Diego, CA 92121-1714	 	New Operating Globalstar, L.L.C.

3110 Zanker Road

San Jose, California
	Attn.: Director of Contracts	 	Attn:	/s/ Kelly Rose

	QUALCOMM Wireless Systems Division	 	Facsimile:	(408) 933-4943

	Facsimile: (858) 651-6045	 	Copy:	    

	with a copy to:	 	Facsimile:	    

Division
Counsel, Wireless Systems

Facsimile No.: (858) 658-1558 

Addresses
and facsimile numbers can be changed by providing notice to the other party in accordance with this Section. 

26.    ENGLISH LANGUAGE.    All negotiations, correspondence, and documents whatsoever shall be in the
English language. In any case where text exists in more than one language, the English text shall govern. 

27.    MISCELLANEOUS PROVISIONS.    The supply of Products by QUALCOMM is on a nonexclusive basis. No
addition to or modification of any Supply Agreement shall be effective unless made in writing and signed by the respective representatives of QUALCOMM and Buyer. Any delay or failure to enforce at any
time any provision of any Supply Agreement shall not constitute a waiver of the right thereafter to enforce each and every provision thereof. If any of the provisions of any Supply Agreement is
determined to be invalid, illegal, or otherwise unenforceable, the remaining provisions shall remain in full force and effect. The parties' rights and obligations which by their sense and context are
intended to survive any termination or expiration of any Supply Agreement, including these Supply Terms, shall so survive. 

******** 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the date set forth above. 

	New Operating Globalstar, L.L.C.,

a Delaware limited liability company	 	QUALCOMM Incorporated,

a Delaware corporation
	

By:	

/s/ William F. Adler
	
 	

By:	

/s/ Scott J. Becker

	Print Name:	William F. Adler	 	Print Name:	Scott J. Becker
	Title:	VP Legal and Regulatory	 	Title:	Sr. Vice President & General Manager

QUALCOMM Wireless Systems Division

12

  

 
 

Attachment 1  
    

 
 

MUTUAL NON-DISCLOSURE AGREEMENT    
    

 
 

OMITTED    

13

 

 
 

Attachment 2    
    

 
 

QUALCOMM INCORPORATED
  
    OUT-OF-WARRANTY HARDWARE REPAIR PRICING
  GLOBALSTAR PRODUCTS
  (Prices Effective Through December 31, 2004)    

	

	Product
	 	Out-of-Warranty Repair Unit Pricing (U.S. $)

	

	GSP-1600 Tri-Mode Portable Phone	 	 
	

	• Replace Digital Board (MCN 20-81705-1)	 	 
	
	 	 
	• Replace RF Board (MCN 20-81707)	 	 
	
	 	 
	• Light Repair-Antenna Replacement	 	 
	
	 	 
	• Light Repair-Filter Replacement	 	[*]
	
	 	 
	GSP-2800 Fixed Phone (Base)	 	 
	
	 	 
	GSP-2900 Fixed Phone (Enhanced)	 	 
	
	 	 
	GSP-1620 Satellite Data Modem (CCA Only/Excludes Antenna)	 	 
	

	Phone Product Accessories (Includes Car Kit)	 	Not Repaired
	

	No Trouble Found (NTF)/ Repair Evaluation Fee	 	$60 Per Occurrence
	

14

 

 
 

Attachment 3    
    

 
 

RMA (Return Material Authorization) Procedures
  for QUALCOMM Globalstar Products    
    

Prior to Requesting an RMA  

1.    Buyer
personnel must be registered with QUALCOMM Customer Service to submit a request for RMA. To obtain registration status, Buyer must email QUALCOMM Customer Service at
gstechsupport@qualcomm.com. (A list of authorized personnel that can obtain RMAs from QUALCOMM should be provided in advance, if possible, by Buyer). 

2.    Buyer
personnel will receive an email confirmation that they have been authorized to submit RMAs. 

RMA Procedure  

1.    Buyer
should REQUEST an RMA from QUALCOMM using one of the following methods: 

	•
	EMAIL QUALCOMM Customer Service at gstechsupport@qualcomm.com. Be sure to include "RMA Request" in the subject field. 

Or

	•
	Request
a hardcopy RMA form comm-sa@qualcomm.com. 

COMPLETE the hardcopy RMA form and FAX the form to QUALCOMM Customer Service (US) +l 858-651-QFAX (7329) or
send it as an attachment in an email to gstechsupport@qualcomm.com. Be sure to include the original Purchase Order Number or Contract Name/Number on this Form. 

2.    The
QUALCOMM Customer Service Representative will log the information into QUALCOMM's call tracking software system, which automatically assigns a case number for the RMA request.
Please note, this is not the RMA number. The RMA number will be assigned if all warranty criteria have been met. Please include a description of the problem and the RMA documentation with the part(s)
to be repaired. 

3.    Buyer
will RECEIVE a confirmation and case number for the RMA request from QUALCOMM Customer Service via email. 

4.    Buyer
will RECEIVE an RMA number, shipping instructions, and RMA confirmation documents from QUALCOMM Customer Service via email or fax. 

5.    Buyer
must package the RMA part(s) for shipment for safe arrival at QUALCOMM, including the following: 

	a)
	Package
part(s) in accordance with professional packing standards. Part(s) must be packaged in original box or equivalent container. If applicable, external box should be suitable for
international shipment or Freight Forwarder equivalent.

	b)
	Enclose
the RMA form, the description of the failure, and a copy of the RMA documentation received from QUALCOMM in each shipping container. If applicable, enclose any exportation
documentation for customs purposes.

	c)
	Write
the RMA number(s) on the outside of each container. If reusing shipping containers, remove previous stickers and labeling.

	d)
	Verify
the "Ship TO" address is visible on the outside of each container. 

15

 

6.    Buyer
must SHIP the RMA part(s) per QUALCOMM shipping instructions indicated on the RMA documentation. 

Please
refer to the applicable contract agreement with QUALCOMM to determine the responsible party and schedule for payment of associated shipping costs (i.e., customs clearance, freight costs, and
associated duties and taxes) required for transport or parts(s) to and from QUALCOMM; and for Repair Evaluation Fees and Repair Fees. 

7.    For
tracking purposes, Buyer must OBTAIN the Airway Bill (AWB) number from the freight forwarder and email both the AWB number and the
associated RMA number to QUALCOMM Customer Service at status.rma@qualcomm.com shipment. 

8.    QUALCOMM
will notify Buyer of estimated ship schedule for repaired part(s) via email. 

9.    Buyer
should CONFIRM the receipt of the repaired product(s) and validate the functionality of the part(s) by sending email to status.rma@qualcomm.com. 

10.    Upon
receipt of Buyer's confirmation, QUALCOMM will close the Case and the RMA. If confirmation has not been received in thirty (30) days from date of shipment, QUALCOMM will
close the case and the RMA accordingly. 

This
Procedure may change from time to time in QUALCOMM's sole discretion. Buyer should contact QUALCOMM for questions. 

16

 

  
 

  Attachment 4    
    

 
 

AGREEMENT FOR REPAIR OF OUT-OF-WARRANTY
  GLOBALSTAR HARDWARE
  (CDMA Gateway Equipment, Satellite Phone Products, Satellite Data Modems)
  AGREEMENT
No.                                  

This
Agreement for Repair of Out-of-Warranty Globalstar Hardware ("Agreement") is entered into as of April     , 2004 ("Effective Date")
by and between QUALCOMM Incorporated ("QUALCOMM"), a Delaware U.S.A. corporation having offices at 5775 Morehouse Drive, CA 92121, and a
                        , a
                         ("Customer"), with offices located at and each may be referred to as "party" and collectively as
"parties" to this Agreement. 

1.0    Term.    The
term of this Agreement shall be for one (1) year from the Effective Date. During the term, all QUALCOMM repairs for
out-of-warranty hardware shall be governed by this Agreement. 

2.0    Repairs.    QUALCOMM
will perform reasonable repairs based on the availability of QUALCOMM's personnel and component parts. Customer will be
notified if QUALCOMM deems any part not repairable, and Customer may request to purchase a replacement part at that time (to be sold subject to availability and under a separate agreement). 

3.0    Return
Material Authorization (RMA).    All returns shall be handled in accordance with QUALCOMM's RMA Procedures. For each repair requested
during the term and for Customer's return of any part(s) for repair, Customer shall request an RMA Number. 

Any
unauthorized part received by QUALCOMM will be returned at the Customer's sole expense. If RMA number is issued by QUALCOMM and QUALCOMM fails to receive Customer's defective part within thirty
(30) days of issuance of the RMA number, QUALCOMM reserves the right to cancel the RMA upon written notice to Customer, and retain any monies received by the Customer for said repair. Customer
may cancel an RMA prior to Customer's shipment of part(s) upon written notice to QUALCOMM. Upon receipt of Customer's notice, QUALCOMM will cancel the associated RMA number. Information in the form of
Exhibit A hereto will be required prior to each repair. 

4.0    Price.    QUALCOMM's
repair prices do not include shipping, duties or taxes. For all out-of-warranty repairs, Customer
agrees to pay all shipping, duties and taxes associated with the return of part(s) to QUALCOMM, and associated with the repaired part(s) being returned to Customer. To the extent reasonably possible,
QUALCOMM will publish current repair prices on QUALCOMM's Customer Service website. In certain cases, QUALCOMM will provide an estimated repair price upon Customer's return of the part and QUALCOMM's
evaluation of necessary repair. 

5.0    Payment.    All
payments shall be made in U.S. Dollars. Unless otherwise agreed to by QUALCOMM, Repair Evaluation Fee(s) must be received prior
to QUALCOMM's issuance of an RMA and evaluation of a part. Payment terms for out-of-warranty repairs are twenty five percent (25%) of the estimated repair price due prior to
QUALCOMM's issuance of an RMA number and Customer's shipment of the part(s), and seventy five percent (75%) of the actual repair price due within thirty (30) days after QUALCOMM's delivery to
the FCA Point (i.e., QUALCOMM's dock). QUALCOMM will invoice on a NET 30 basis. Payments shall reference this Agreement number and must be made by credit card based on Customer information below or
via wire transfer to the bank location set forth below, or such other bank location as QUALCOMM may from time to time designate in writing: 

Bank
of America

San Francisco, California

ABA# 121-000-358

Int. S.W.I.F.T. No. [*]

Account [*]. 

17

 

Customer shall pay to QUALCOMM a late charge on any undisputed past due amounts at the rate of one percent (1%) per month or part thereof or the maximum amount permitted by
law, whichever is less. In the event Customer disputes an amount invoiced by QUALCOMM, Customer shall promptly notify QUALCOMM in writing the basis for such dispute, and shall pay the undisputed
portion of such invoice as set for therein. 

6.0    Delivery.    Estimated
lead times for QUALCOMM repairs will be provided to Customer upon request. Delivery terms are FCA, QUALCOMM's dock, San
Diego, California (the "FCA Point"). QUALCOMM will notify Customer in writing when the repaired part(s) is available for pick up (the "Notification Date"). If Customer fails to pick up the repaired
part(s) following thirty (30) days after the Notification Date, QUALCOMM will invoice, and Customer will be responsible, for payment of daily storage fees at QUALCOMM's then-current
rate until such time as the repaired part(s) is picked up by Customer. 

7.0    Warranty.    Customer
has twenty (20) days from Customer's receipt of a repaired part to notify QUALCOMM that the part is
non-working (and in no case can a notification be received later than forty five (45) days from the Notification Date). Otherwise, Customer shall be deemed to have accepted the
part(s) "AS IS, and without warranty of any kind." If a returned part is non-working, Customer will provide QUALCOMM a detailed explanation of the problem, and photographs if available,
when obtaining an RMA number from QUALCOMM. If upon QUALCOMM's reasonable evaluation it is determined that the part remains defective or otherwise non-working as a direct result of
QUALCOMM's actions (or the actions of its suppliers), QUALCOMM will repair the part at QUALCOMM's expense and ship the part back to Customer at QUALCOMM's expense (except for duties and taxes which
will be the responsibility of Customer). THE WARRANTY IN THIS SECTION 7.0 IS IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED, WHETHER ARISING FROM LAW, CUSTOM, OR CONDUCT AND 1S CUSTOMER'S
SOLE REMEDY RELATED TO QUALCOMM'S REPAIR OF A PRODUCT. 

8.0    Termination
for Cause.    Either party may terminate this Agreement for material default by the other party of an obligation, condition or
covenant of this Agreement, which, if curable, is not cured within thirty (30) days of the date after the other party notifies the defaulting party of such default. 

9.0    Agreement/Governing
Law.    Customer's Purchase Order and/or terms and conditions do not apply. This Agreement, and the RMA Procedures, are the
complete agreement between the parties regarding the subject matter and this Agreement shall be construed according to the laws of the State of California without giving effect to the principles of
conflicts of law thereof. 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

	New Operating Globalstar LLC	 	QUALCOMM Incorporated
	

By:	
 	

/s/ William F. Adler
	
 	

By:	
 	

/s/ Scott J. Becker

	Name:	 	William F. Adler	 	Name:	 	Scott J. Becker
	Title:	 	VP Legal and Regulatory	 	Title:	 	Sr. Vice President and General Manager

18

  

 
 

Exhibit A    
    

	

	MCN or Part #
	 	Part Name
	 	Quantity
	 	Serial #
	 	Repair Price (in

US $)*

	

	 	 	 	 	 	 	 	 	$	 
	

	 	 	 	 	 	 	 	 	$	 
	

	 	 	 	 	 	 	 	 	$	 
	

	    	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	TOTAL REPAIR PRICE,

EXCLUDING SHIPPING,

TAXES & DUTIES	 	$	 
	

* Repair price is per QUALCOMM's Website or as quoted in writing by QUALCOMM.

	Complete Description of Problem:	    

	

    

	

    

	

    

	
CUSTOMER CREDIT CARD INFORMATION AND AUTHORIZATION:	

 
	

Credit Card Type:	

    
	

 

	Number:	    
	 

	Expiration Date:	    
	 

	Name on Credit Card:	    
	 

	Customer's Signature:	    
	 

For
credit card payments, Customer will include pertinent information above. Customer's signature is authorization for QUALCOMM to charge the prices stated on this Agreement to Customer's credit card. 

19

 

	SHIP TO ADDRESS FOR REPAIRED PART(S):	 
	

    
	

 
	

    
	

 
	

    
	

 
	

SHIPPING INFORMATION (if Customer requests QUALCOMM's shipment of repaired part(s) in lieu of Customer pickup):
	

Freight Forwarder:	

    
	

 

	Freight Account #	    
	 

	Ship Method:	    
	 

20

 

 
 

Attachment 5    
    

 
 

QUALCOMM Commercial Rates    
    

QUALCOMM's
Labor Rates are as follows: 

	

	Labor Category
	 	Hourly Rate (in U.S. $)

	

	Sr. Principal Engineer	 	$490
	

	Principal Engineer	 	$350
	

	Project Manager	 	$246
	

	Systems/Sr. Engineer	 	$215
	

	Hardware/Software Engineer	 	$215
	

	Administration	 	$168
	

	Associate Engineer/Sr. Field Engineer	 	$167
	

	Sr. Technician/Sr. Field Technician	 	$158
	

	Field Engineer	 	$158
	

	Field Technician/Technician	 	$115
	

	Admin Support	 	$99
	

Travel
costs and materials are not included in the above Labor Rates. As needed, they will be separately quoted by QUALCOMM. 

QUALCOMM
Labor Rates are established at a corporate level and adjusted annually. Current Labor Rates above are effective through December 31, 2004. 

21

  

 
 

EXHIBIT B    
    

 
  ACCESSORIES    

QUALCOMM's
prices are current as of the Effective Date and subject to change upon notice to Buyer. Limited to quantities in Inventory; current estimates below. (Additional quantities of some items not
in retail packaging may also be available for purchase). 

	

	Item
	 	Product Line
	 	Product

Number
	 	Price
	 	Inv
	 	Model

Number
	 	MCN Description

	

	1.	 	Cigarette Lighter Adapter, Kit	 	CLA-1600	 	 	 	0	 	CXCLA0511	 	KIT, GS PORTABLE UT, CLA, PROD, RETAIL
	
	 	 	 	

	2.	 	Data Cable, Kit	 	GDC-1100	 	 	 	0	 	XCDTA0512	 	KIT, TR-MODE DATA, GS, MDL CXDTA0512
	
	 	 	 	

	3.	 	Data Cable, Tri Mode	 	GDC-1200	 	 	 	2042	 	CXDTA055	 	CABLE ASSY, DATA, PRODUCTION
	
	 	 	 	

	4.	 	UT Diagnostic Monitor UTDM	 	GDM-2000	 	[*]	 	16	 	CXMST005	 	KIT, COMMERCIAL, UTDM
	
	 	 	 	

	5.	 	Protective Case, Kit	 	GPC-1000	 	 	 	9	 	CXLCC0511	 	KIT,GS PORTABLE UT,PROTECTIVE CASE,PROD,RETAIL
	
	 	 	 	

	6.	 	Leather Pouch, Kit	 	GPC-1100	 	 	 	0	 	CXLCC0521	 	LEATHER POUCH KIT
	
	 	 	 	

	7.	 	Leather Case, Russia	 	GPC-1200	 	 	 	200	 	CXLCC051	 	CASE, LEATHER, PHONE, GLOBALSTAR PORTABLE (RUSSIA)
	
	 	 	 	

	8.	 	Universal Travel Charger, Kit	 	GSP-1210	 	 	 	1786	 	CXTVL0511	 	KIT, GS PORTABLE UT, UNIVERSAL TRAVEL CHARGER,PROD
	
	 	 	 	

	9.	 	Argentina Travel Charger, Kit	 	GSP-1211	 	 	 	36	 	CXTVL0521	 	KIT, UTC, ARGENTINE, GS PORT UT, CXTVL0521
	
	 	 	 	

	10.	 	China Travel Charger, Kit	 	GSP-1212	 	 	 	0	 	CXTVL0531	 	KIT, UTC, CHINA, GS PORTABLE UT, CXTVL0531
	
	 	 	 	

	11.	 	North American Wall Charger, Kit	 	GSP-1220	 	 	 	671	 	CXDTC0511	 	KIT,GS PORT UT,STD CHARGER, N. AMERICAN, PROD RETAIL
	
	 	 	 	

	12.	 	EURO Wall Charger, Kit	 	GSP-1225	 	 	 	0	 	CXDTC0521	 	KIT, GS PORT UT, STD CHARGER, EURO VERSION, PROD
	
	 	 	 	

	13.	 	Argentina Wall Charger, Kit	 	GSP-1230	 	 	 	0	 	CXDTC0531	 	KIT, STD CHARGER, ARGENTINE, CXDTC0531
	
	 	 	 	

	14.	 	China AC Wall Charger	 	GSP-1231	 	 	 	10,000	 	CXDTC054	 	AC WALL CHARGER, PORTABLE UT,CHINA, GLOBALSTAR
	
	 	 	 	

	15.	 	Antenna Replacement Kit	 	GSP-1650	 	 	 	333	 	CMANT0521	 	KIT, GS ANTENNA, FULL REPLACEMENT
	
	 	 	 	

	16.	 	UT Program Support Tool	 	GST-1900	 	 	 	3	 	CSPST005	 	KIT,GS WWT,USER TERMINAL PROGRAM SUPPORT TOOL
	
	 	 	 	

	17.	 	PST Cable Kit	 	GST-1910	 	 	 	7	 	CXHDW005	 	KIT, CABLE, PST, GS
	

	Car Kit Accessories
	

	18.	 	Carkit Handset, Kit	 	GCK-0008	 	 	 	233	 	CXCKT0521	 	KIT, HANDSET, CARKIT, GS
	
	 	 	 	

	19.	 	Carkit ODU RF Cable	 	CV90-82105-C91	 	 	 	1535	 	 	 	CABLE ASSY, ODU TX RX
	
	 	 	 	

	20.	 	Carkit Headset	 	GCK-0016	 	[*]	 	1,262	 	CXCKT064	 	HEATSET,SOAP ON ROPE STYLE EARPHONE-MIC
	
	 	 	 	

	21.	 	Carkit Headset Adapter	 	GCK-0017	 	 	 	1,209	 	CXCKT056	 	ADAPTER, HEADSET, GS CARKIT
	
	 	 	 	

	22.	 	Carkit Headset, Kit	 	GCK-0018	 	 	 	16	 	CXCKT0531	 	KIT, HEADSET, CARKIT, GS
	

	Fixed Accessories
	

	22.	 	Fixed Battery Kit	 	GBB-1000	 	 	 	147	 	CXBAT0541	 	KIT, BATTERY, FIXED UT, GS
	
	 	 	 	

	23.	 	Fixed UT Power Supply Kit	 	GPO-1000	 	[*]	 	0	 	CXPRS0511	 	KIT, POWER SUPPLY, FIXED UT, GS
	

22

 
 
 

EXHIBIT C    
    

 
  PRODUCT PRICING    

Price
list and Quantities are valid for Product(s) ordered within twelve (12) months of the Effective Date for delivery within twenty-four (24) months of the Effective Date. 

Price
list and minimum/maximum quantities for orders placed in months thirteen (13) through twenty-four (24) is TBD. 

	

	PRODUCT
	 	UNIT PRICE (in

U.S. $)
	 	Minimum Quantity
	 	Maximum Quantity

	

	Tri-Mode Portable Phone	 	[*]	 	10,000	 	40,000
	
	 	 	 	

	Fixed Phone (Enhanced)	 	 	 	7000*	 	7000*
	
	 	 	 	

	Fixed Phone (Base)	 	 	 	7000*	 	7000*
	
	 	 	 	

	Car Kit	 	 	 	5000	 	20,000
	

	Satellite Data Modems	 	[*] with DRA Antenna/

[*] without DRA Antenna	 	10,000	 	25,000
	

* Minimum/Maximum
is Fixed Enhanced and Base Combined. 

Unit
price and maximum quantities are subject to component end of life issues. 

Orders
below the Minimum Quantity are subject to unit price adjustment. 

23

 
 
 

EXHIBIT D    
    

 
 

MODIFICATIONS    

The
following Categories of Modifications to the QUALCOMM Globalstar Satellite Data Modem, GSP-1620 require Buyer to sign QUALCOMM's Product Supply Agreement or Integration Agreement, as
indicated below. Modifications indicating "Not Approved" are not authorized by QUALCOMM. 

	
	 
	 
	 	Modification Category
	 	Supply

Agreement
	 	Integration

Agreement
	 	Not Approved
	 
	
	 
	1	 	Add Enclosure and Mounting	 	 	 	X	 	 	 
	
	 
	2	 	Power Source Hook Up (DB-25)	 	X	 	 	 	 	 
	
	 
	3	 	Surge Protection Implementation (e.g., fusing)	 	X	 	 	 	 	 
	
	 
	4	 	Change Cable and Cable Lengths	 	 	 	X	*	 	 
	
	 
	5	 	RF Modification (excluding RF Module)	 	 	 	X	*	 	 
	
	 
	6	 	Use in Proximity of GPS Installation	 	X	*	 	 	 	 
	
	 
	7	 	Antenna Change (i.e., other than DRA)	 	 	 	X	*	 	 
	
	 
	8	 	Hook Up to Interface (user serial standard RS232)	 	X	 	 	 	 	 
	
	 
	9	 	Software Change (including interface Operation System Source Code)	 	 	 	 	 	X	 
	
	 
	10	 	Hardware Modification	 	 	 	 	 	X	 
	
	 
	11	 	Develop Maritime Application	 	 	 	X	*	 	 
	
	 
	12	 	Develop Explosive Environment Application	 	 	 	 	 	X	 
	
	 
	13	 	Develop Aviation Application	 	 	 	X	*	 	 
	
	 
	14	 	Develop ATC Application	 	 	 	X	*	 	 
	
	 
	15	 	Grounding	 	X	 	 	 	 	 
	
	 
	16	 	Tandem Connection (i.e., ganging)	 	X	*	 	 	 	 
	
	 
	17	 	Use of DB-9 UTDM SW to Access SDM's Port (e.g., use of commands)	 	 	 	 	 	X	*
	
	 
	18	 	Any other Modification, Category or Application not listed above to be reviewed by QUALCOMM on a case-by-case basis	 	 	 	 	 	 	 
	
	 

* Requires
QUALCOMM Engineering Consultation. 

24

  

 
 

EXHIBIT E    
    

 
 

Integration Agreement    
    

 
 

Agreement No.                                  

This
QUALCOMM Integration Agreement ("Agreement") is entered into as of                         ,
200     ("Effective Date") by and between  QUALCOMM Incorporated, a Delaware corporation, ("QUALCOMM") with offices located at 5775 Morehouse Drive, San Diego, CA 92121,
and
                        , a
                        , ("Integrator"), with offices located at
                        , with respect to the
following facts: 

RECITALS  

A.    Integrator
has purchased Satellite Data Modems (the "Product(s)") from QUALCOMM pursuant to the terms of QUALCOMM's Supply Agreement and Supply Terms, or from Globalstar. 

B.    Integrator
possesses expertise in the design, development, manufacture and certification of wireless telecommunications products. 

C.    Integrator
wishes to incorporate the Product(s) into an Integrated Product for use in an Application (all as defined below) for resale to Customers and bona fide end users. 

D.    Integrator
understands that, the Product(s) were not developed by QUALCOMM for incorporation into the Integrated Product and/or intended for use in the Application, and therefore, as a
requirement for developing, designing, manufacturing, marketing, selling, distributing or using any Product(s) for any Application, Integrator is required to execute this Agreement. 

E.    The
Product(s) may be modified only as set forth in this Agreement, including Attachment 3, subject to the restrictions set forth
therein. 

AGREEMENT  

NOW,
THEREFORE, the parties, in consideration of the mutual promises set forth herein, agree as follows: 

1.    DEFINITIONS.    The following capitalized terms shall have the meanings set forth below: 

"Application" shall mean Integrator's commercial application(s) using the Globalstar System, as specified in  Attachment 2 hereto. 

"Aviation" shall mean any vehicle/container that leaves direct contact with the earth or an associated ground structure, is propelled or carried through
the air, and which may be subject to regulation by the "in country" aviation authority(ies). 

"Commercial Rates" shall mean the rates charged by QUALCOMM for development, installation and other types of services, a current listing of which is
attached hereto as Attachment 1, and shall be adjusted annually upon written notice to Integrator. 

"Integrator Documentation" shall mean the documentation provided by QUALCOMM for Integrator's use in the design and development of the Integrated
Product. Documentation includes but is not limited to the following: Integrator's Manual (#80-99208-1), Satellite Data Modem Product Specification
(#80-99240-1) and the Satellite Data Modem User's Manual. 

"Globalstar" shall mean Globalstar L.P., a Delaware limited partnership. 

25

 

"Globalstar System" shall mean the system developed by Globalstar LP to provide low earth orbit satellite based wireless telecommunication services
worldwide. 

"Integrated Product" means Integrator's product that incorporates Product(s) into various modes of data communications equipment utilizing the
Product(s) as the core communications component for use in the Application ("Integrated Product"). The Integrated Product is described in  Attachment 2 hereto. 

"Integrator" shall mean the third party identified above. 

"Product(s)" shall mean the QUALCOMM Globalstar Satellite Data Modem, GSP-1620. 

"Reserved Service(s)" shall mean (i) mobile-data messaging and position location services utilizing data only terminals that are
based on QUALCOMM technology for in-cab driver communications related to the maintenance and/or monitoring of commercial trucking fleets, trailers, rail cars and /or vessels used on inland
waterways and (ii) mobile data messaging and position location services utilizing data only terminals that are based on QUALCOMM technology for the maintenance and/or monitoring of
off-highway heavy construction vehicles and equipment. Each of the foregoing restrictions shall apply for three (3) years from the Effective Date (i) only in the geographic
regions of the United States, Canada, Mexico, Brazil, and Europe including Russia and (ii) only until the expiration of three years after April 13, 2004. Reserved Service shall not
include any such services used by the United States Department of Defense or any other United States or foreign governmental agency or entity. 

"RMA Procedures" shall mean the set of procedures found on QUALCOMM's official website which describes the process and documentation required for the
return by Integrator of any Product(s) to
QUALCOMM. Copies of the RMA Procedures and the Out-of-Warranty Repair Agreement are attached hereto as Attachments 5 and
6, respectively. 

"Term" shall commence on the Effective Date and continue for one (1) year, unless earlier terminated as provided herein. The Term may be extended
based on the mutual written agreement of the parties. 

2.    PRODUCT MODIFICATION RESTRICTIONS.    Satellite Data Modems may be modified pursuant to this Agreement only as set forth in  Attachment 3, columns marked "Supply Agreement" and/or "Integration Agreement." Other modifications, including without limitation those marked
"Not Approved" in Attachment 3 are prohibited. Consultation with QUALCOMM's engineering staff is required as noted thereon. Such consultation
shall be provided at QUALCOMM's San Diego, CA facility, subject to staff availability and Commercial Rates. 

3.    PRODUCT USES AND RESTRICTIONS.

3.1    Restriction
on Use of Products.    The Product shall not be marketed or sold for any Reserved Service, nor may any Product be incorporated into
any Integrated Product which is developed, marketed, produced, sold or permitted to be used for or in any Reserved Service. Integrator shall not directly or indirectly market, provide, sell or
distribute the Product(s) for Reserved Services or for any application other than as stated herein. 

3.2    Sale
only as Incorporated in Integrated Product.    It is acknowledged and agreed that Product(s) must be incorporated into the Integrated
Product(s) and may not be resold or used for any other purpose by Integrator other than as a part of and included within the Integrated Product solely for use in the Application and in accordance with
the provisions of this Agreement. 

Integrator
shall not directly or indirectly, (i) market, provide, sell or distribute, or cause to be marketed, provided, sold or distributed, any or all of the Integrated Products other than
for the Application and/or (ii) market, resell or distribute the Product(s) except as incorporated in the 

26

 

Integrated
Products as permitted hereunder or as may be otherwise authorized in writing by QUALCOMM. Integrator shall be responsible to arrange for airtime and rates therefor on the appropriate
Gateway. 

3.3    Environmental
Protection.    Integrator acknowledges that the Product(s) require environmental protection. These environmental elements include,
but are not limited to, temperature variation,
humidity, condensation, lightning strikes, electromagnetic radiation, corrosive agents, ESD, particulates, direct impacts, mechanical shocks and vibrations, and as such, requires Integrator to be
responsible for the environmental protection for the Product. QUALCOMM shall have no liability for Integrator's failure to design or to develop the Integrated Product in such a manner that fails to
provide it an adequate enclosure or other sufficient environmental protection capabilities for the Product. 

3.4    Conformance
with Specifications.    Integrator agrees to assure that its incorporation of the Product(s) into the Integrated Product will not
cause the Product(s) to deviate from the Radio Frequency (RF) performance specifications thereof. This would include, but is not limited to, changing or modifying the antenna, antenna cable as
specified in the product documentation, antenna connectors, or any hardware or software components of the Product as provided by QUALCOMM. QUALCOMM reserves the right to test the Integrated Product
before operation, if deemed necessary, in QUALCOMM's laboratory or other designated laboratory, to ensure that the Integrated Product conforms to the performance specifications of the Product(s) and
continues to meet Globalstar System certification. 

3.5    Product
Documentation.    Integrator agrees that all Integrated Products sold by Integrator, or Integrator's resellers, distributors or agents
(hereafter "Customers") to a bona fide end user will include adequate instructions for operation and use and safety information, including, without limitation such instructions and/or safety
information as are required by law or regulation. For the purposes hereof, "bona fide end user" means any person who is purchasing the Integrated Product without the intent to resell such Integrated
Product. 

4.    LICENSES AND PERMITS.    The Product is certified by the FCC for its intended use. Integrator shall be solely responsible for
obtaining all permits, certifications, and approvals required by law or regulation, including permits, certifications and approvals, or any other governmental approval that may be required to
distribute, market, sell, operate and use the Integrated Product to include, without limitation, FCC and FAA certifications as applicable. QUALCOMM will reasonably assist Integrator, subject to
availability of QUALCOMM's staff and at QUALCOMM's then-current Commercial Rates, in certification efforts. 

5.    RESTRICTED EXPORT.    Integrator acknowledges that all Product(s) and all proprietary data, know-how, software or
other data or information ("Information") obtained from QUALCOMM are subject to United States (US) Government export control laws and accordingly their use, export and reexport, may be restricted or
prohibited. Integrator, therefore, agrees not to directly or indirectly export, re-export, or cause to be exported or re-exported, any such Product(s), Information, or any
direct product thereof, to any destination or entity prohibited or restricted under US law, unless it shall have first obtained prior written consent of the US Department of Commerce (or other
applicable agency of the US Government, either in writing or as provided by applicable regulation, as the same may be amended from time to time), a copy of such consent to be provided to QUALCOMM
prior to export by Integrator. Integrator agrees that no Product(s) or Information received from QUALCOMM will be directly employed in missile technology, sensitive nuclear, or chemical biological
weapons end uses or in any manner transferred to any party for any such end use. This requirement shall survive any termination or expiration of this Agreement. 

27

 

6.    WARRANTIES.

6.1    No
Product Warranty.    NO WARRANTY is provided with the Product(s) as they are being used by Integrator for purposes for which they are not
intended. Subject to the availability of QUALCOMM staff, QUALCOMM will use reasonable commercial efforts to test and repair Products at QUALCOMM's then-current repair prices. Integrator
will be responsible for all shipping costs associated with the return of the Products to QUALCOMM, and back to Integrator, to include without limitation, insurance, taxes and duties. Integrator must
follow the RMA Procedures for all such returns. 

6.2    Service
Warranty.    QUALCOMM hereby warrants that services performed hereunder will be performed in a workmanlike manner consistent with
industry standards for such service. 

Integrator
hereby acknowledges and agrees that it has not relied on any representations or warranties other than those expressly set forth herein. QUALCOMM MAKES NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, WITH RESPECT TO THE PRODUCTS, SOFTWARE, OR SERVICES, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILTTY OR FITNESS FOR A PARTICULAR PURPOSE OR AGAINST INFRINGEMENT, OR ANY EXPRESS
OR IMPLIED WARRANTY ARISING OUT OF TRADE USAGE OR OUT OF A COURSE OF DEALING OR COURSE OF PERFORMANCE. 

7.    NO TRANSFER OF INTELLECTUAL PROPERTY RIGHTS IMPLIED.    There is no conveyance to Integrator of any intellectual property
rights in such Products or any software contained therein, including but not limited to any rights under any patent, trademark, copyright, or trade secret other than as set forth in Section 8.
No provision of this Agreement including, without limitation, the license
of any software, shall be construed to grant to Integrator, either expressly, by implication or by way of estoppel, any license under any patents or other intellectual property rights of QUALCOMM or
its licensors covering or relating to any other product or invention or any combination of Products or software with any other product. 

8.    SOFTWARE LICENSE.    Products may contain or be accompanied by software in executable code form ("Software") and, except as
otherwise expressly provided herein, all references to "Product(s)" herein shall be deemed to include the accompanying Software, provided that nothing herein shall be construed as the sale of, or
passage of title in, any Software or any other intellectual property embedded in the Product to Integrator. QUALCOMM hereby grants to Integrator a non-exclusive license to use the Software
(in object form only) solely as included and intended to be used in the Products and for use only in the manner which QUALCOMM intends the Software to be used, for the duration of the useful life of
such Products and subject to the terms and conditions herein. Integrator shall not, and shall not authorize any third party to, without the prior written consent of QUALCOMM: (i) alter, modify,
translate, or adapt any Software or create any derivative works based thereon; (ii) copy any Software; (iii) assign, sublicense or otherwise transfer the Software in whole or in part,
except as permitted herein; (iv) use the Software except as specifically contemplated herein; or (v) disclose the Software to any third party. The entire right, title and interest in the
Software shall remain with QUALCOMM, and Integrator shall not remove any copyright notices or other legends from the Software or any accompanying documentation. Integrator may reproduce and distribute
any user documentation provided by QUALCOMM for the Product, in whole or in part, for purposes related to the operation, maintenance, marketing or sale of Integrated Products; provided that QUALCOMM
shall have the right to review and approve such documentation in writing prior to Integrator's use. 

Integrator
may, and may allow Customers to, sublicense to bona fide end user customers the right to use the Software only as incorporated in the Integrated Product, subject to written terms at least
as protective of QUALCOMM's rights therein as the provisions of this Agreement and such right shall survive termination of this Agreement and last for the duration of the useful life of the Integrated
Product. If Integrator, and Customers, do not take reasonable steps to enforce its/their rights under 

28

 

such
software sublicense agreements, Integrator and Customers shall take all reasonable steps necessary to ensure that the right to enforce such software sublicense agreements is transferred and
assigned to QUALCOMM. 

Integrator
shall use the Products and Software contained therein or furnished by QUALCOMM solely in accordance with and for the purposes specifically contemplated in the terms of this Agreement.
Integrator shall not, directly or indirectly, alter, modify, translate, or adapt any Product or Software contained therein or create any derivative works based thereon, disassemble, decompose, reverse
engineer, or analyze the physical construction of, any of the Products or Software or any component thereof for any purpose. 

9.    NO USE OF TRADEMARKS AND LOGOS.    In order that each party may protect its trademarks, trade names, corporate slogans,
corporate logo, goodwill and product designations, no party, without the express written consent of the other, shall have the right to use any such marks, names, slogans or designations of the other
party, in the sales, lease or advertising of any products or on any product container, component part, business forms, sales, advertising and promotional materials or other business supplies or
material, whether in writing, orally or otherwise, except as agreed to in writing by the parties. 

10.    INDEMNIFICATION AND INSURANCE.

10.1    Misuse.    Integrator
shall indemnify, defend and hold harmless QUALCOMM, its affiliates, and their directors, officers, agents and employees
against any and all losses, claims, demands, damages and expenses (including attorneys' fees) arising out of or related to Integrator's (including its affiliates and their employees, agents,
independent contractors or customers) misuse and/or modification of the Product, or use of any Product in combination with any other items, whether or not furnished by QUALCOMM, even if such use is
the necessary, inherent and/or intended use of the Product. 

10.2    Tort
and/or Product Liability Claims.    Integrator shall indemnify, defend and hold harmless QUALCOMM, its affiliates, and their directors,
officers, agents and employees against any all losses, claims, demands, damages and expenses (including attorneys' fees) arising out of or related to any incident of personal injury or property damage
in which the Product, or Integrated Product, or any combination thereof, is alleged to have caused, in whole or in part, such damage or injury. 

10.3    Infringement.    Integrator
shall indemnify, defend, and hold harmless QUALCOMM, its affiliates, and their directors, officers, agents and
employees, from and against all suits and claims for infringements or violations of any patent, trademark, copyright, trade secret or other intellectual property rights of any third party
(i) caused directly by Integrator's (or by an affiliate's or agent's if done on behalf of or at the direction of Integrator) modification, use or maintenance of any Product, (ii) arising
from the incorporation of the Product(s) into the Integrated Product, or (iii) arising from any markings, logos or features used or specifically requested by Integrator in writing. Integrator
agrees that it will pay all sums, including, without limitation, attorneys' fees, damages, losses, liabilities, expenses and other costs, which, by final judgment or decree, or in settlement of any
suit or claim to which Integrator agrees, may be assessed against QUALCOMM, its affiliates, directors, officers, agents, employees, on account of the foregoing, provided that: 

        (a)    Integrator
will be given written notification, promptly after QUALCOMM becomes aware of such claim, of any such infringement or violation and of any suits or claims
brought or threatened against QUALCOMM or Integrator of which QUALCOMM has actual knowledge; 

        (b)    Integrator
is given full authority to assume control of the defense (including appeals) thereof through its own counsel at its sole expense and will have the right to
settle any suits or claims without the consent of QUALCOMM; provided that Integrator shall have no right to agree to injunctive relief against QUALCOMM or to any relief involving QUALCOMM's rights to
sell Products and provided 

29

 

further,
that Integrator will notify QUALCOMM of any proposed settlement prior to Integrator's acceptance of such settlement; and 

        (c)    QUALCOMM
will cooperate with Integrator in the defense of such suit or claims and provide Integrator, at Integrator's expense, such assistance as Integrator may
reasonably require in connection therewith. 

10.4    Insurance.    Integrator
and Integrator's Customers shall at all times, at their own cost and expense, carry and maintain the insurance
coverage required by law and commercially standard in the jurisdiction(s) and industry(ies) where the Integrated Product may be sold, and shall provide certificates of insurance to QUALCOMM upon
request and shall require its insurers to advise QUALCOMM in writing within sixty (60) days prior to any changes or cancellation being made to such policies. 

11.    LIMITATION OF LIABILITY.    IN NO EVENT SHALL QUALCOMM BE LIABLE TO INTEGRATOR, OR INTEGRATOR'S CUSTOMERS, FOR ANY
INCIDENTAL, INDIRECT, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING BUT NOT LIMITED TO ANY LOST PROFITS, LOST SAVINGS, OR OTHER INCIDENTAL DAMAGES, ARISING OUT OF THE USE OR INABILITY TO USE, OR THE
DELIVERY OR FAILURE TO DELIVER, ANY OF THE PRODUCTS OR ANY SOFTWARE, EVEN IF QUALCOMM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATION OF LIABILITY SHALL REMAIN IN FULL
FORCE AND EFFECT REGARDLESS OF WHETHER BUYER'S REMEDIES HEREUNDER ARE DETERMINED TO HAVE FAILED OF THEIR ESSENTIAL PURPOSE. FURTHER, THE ENTIRE LIABILITY OF QUALCOMM, AND THE SOLE AND EXCLUSIVE REMEDY
OF INTEGRATOR OR ANY THIRD PARTY, FOR ANY CLAIM OR CAUSE OF ACTION ARISING HEREUNDER (WHETHER IN CONTRACT, TORT, OR OTHERWISE) SHALL NOT EXCEED FIVE THOUSAND DOLLARS U.S. ($5000.00). 

12.    RESTRICTIONS ON DISCLOSURE AND USE.    The terms of the Mutual Non-Disclosure Agreement, the form of which is
attached hereto as Attachment 4 and which shall be executed by Integrator and QUALCOMM, shall govern the exchange of all confidential and/or proprietary information between the parties under this
Agreement. 

13.    COMPLIANCE WITH LAWS.    Each party shall comply with all applicable required U.S. laws, regulations and codes, including the
procurement of permits and licenses when needed, in the performance of this Agreement. Nothing contained in this Addendum shall require or permit Integrator
or QUALCOMM to do any act inconsistent with the requirements of: (a) the regulations of the United States Department of Commerce; or (b) the foreign assets controls or foreign
transactions controls regulations of the United States Treasury Department; or (c) of any similar United States law, regulation or executive order; or (d) any applicable law or
regulation, as the same may be in effect from time to time. Integrator will comply with all laws and regulations of the United States of America applicable to its activities under this Addendum,
including but not limited to U.S. Export Administration Regulations. Further, Integrator shall comply with the laws of all countries in which Buyer imports any Products in the importation, marketing,
sale, distribution, warranty and use thereof. Each party shall indemnify the other party and its officers, directors, employees and permitted assigns and successors against any losses, damages,
claims, demands, suits, liabilities, penalties and expenses, (including reasonable attorneys' fees) that may be sustained by reason of such party's failure to comply with such laws, regulations and
codes. 

14.    TERMINATION FOR CAUSE.    In addition to the other termination rights set forth herein, the occurrence of any of the
following shall constitute a material default and breach of this Agreement and shall allow the non-defaulting party-to terminate this Agreement after the expiration of the
applicable period of cure, if any; 

30

 

(a)    Any
unauthorized disclosure of either party's confidential information as set forth in Section 12 shall allow the non-defaulting party to terminate immediately; 

(b)    Any
unauthorized use, sale or distribution of the Product(s) other than as set forth herein, misuse of QUALCOMM's marks, or the performance by Integrator of unauthorized modifications
to the Product(s) shall permit QUALCOMM to terminate immediately; 

(c)    The
dissolution, liquidation or discontinuance of business operations of either party or the attempted assignment of this Agreement other than as provided herein, shall permit the
other party to terminate immediately; 

(d)    Any
material default by either party of an obligation, condition or covenant of this Agreement which, if curable, is not cured within thirty (30) days of the date after the
other party notifies the defaulting party of such default. 

QUALCOMM
shall also have the right to terminate this Agreement if any other agreement between QUALCOMM and Integrator is terminated by QUALCOMM due to Integrator's breach thereof. 

If
termination is by QUALCOMM, Integrator shall pay QUALCOMM all amounts due up to the termination date; QUALCOMM will invoice on a NET 30 basis. Use of all Confidential Information of the other party
shall immediately cease and shall, within twenty (20) days of the termination date, be returned to the owning party. As of the date of termination, Integrator shall have no right to develop,
manufacture, market and/or distribute the Product(s) as part of the Integrated Product. 

15.    ASSIGNMENT.    Except as specified in this Section 15, neither this Agreement nor any rights, duties or interest
herein, shall be assigned, transferred, pledged or hypothecated or otherwise conveyed by Integrator without QUALCOMM's prior written consent which shall not be unreasonably delayed or withheld. For
purposes of this Section, "assignment" shall be deemed to include any transaction or series of transactions which results in an aggregate change in ownership or control of more than fifty percent
(50%) of Integrator. Any attempted assignment or delegation in contravention hereof shall be void. 

16.    APPLICABLE LAW; JURISDICTION.    This Agreement shall be construed and the rights of the parties shall be determined, in all
respects, according to the laws of the State of California (USA), without giving effect to the principles of conflicts of law thereof. This Agreement shall not be governed by the provisions of the
1980 United Nations Conventions on Contracts for the International Sale of Goods. The parties hereto expressly consent and submit to the exclusive jurisdiction of the courts of California for the
adjudication or disposition of any claim, action or dispute arising out of this Agreement. The prevailing party will be entitled to recover its expenses including, without limitation, reasonable
attorney's fees. 

17.    DISPUTE RESOLUTION.

17.1    Good Faith Negotiations.    The parties shall attempt to resolve by good faith and diligent
negotiation any dispute, controversy or claim between them arising out of or relating to this Agreement, or the breach, termination or invalidity thereof. If such negotiations are not initiated within
thirty (30) days of one party's request to the other for negotiations and/or concluded within forty-five (45) days after initiation, either party may seek legal remedies. 

17.2    Admissibility.    ALL DISCUSSIONS AND DOCUMENTS PREPARED PURSUANT TO ANY ATTEMPT TO RESOLVE A
DISPUTE UNDER THIS PROVISION ARE CONFIDENTIAL AND FOR SETTLEMENT PURPOSES ONLY AND SHALL NOT BE ADMITTED IN ANY COURT OR OTHER FORUM AS AN ADMISSION OR OTHERWISE AGAINST A PARTY FOR ANY PURPOSE. 

31

 

18.    NOTICES.    All notices, requests, demands, consents, agreements and other communications required or permitted to be given
under this Agreement shall be in writing and shall be mailed to the party to whom notice is to be given, by first class mail, postage prepaid or sent by facsimile and electronically confirmed, or via
delivery service, properly addressed as set forth below. Notice shall be deemed received upon the earlier of actual receipt or: (i) one (1) business day after facsimile or delivery; or
(ii) five (5) business days after deposit into the mail. 

	For QUALCOMM:	 	For Integrator:
	

QUALCOMM Incorporated

Wireless Systems Division

5775 Morehouse Drive

San Diego, CA 92121-1714

Facsimile No.: (858) 651-6045

Attn.: Sr. Director, Contracts	
 	

    
    
    
    
    
    

	Copy: QWS Division Counsel

Facsimile No.: (858) 658-1558	 	 

Addresses,
facsimile numbers and telephone numbers can be changed by providing notice to the other party in accordance with this Section. 

19.    PARTY RELATIONSHIP.    It is expressly understood that the parties intend by this Agreement to establish the relationship of
independent contractors. No party shall have any authority to create or assume in the name of or on behalf of the other party any obligation, express or implied, to act or to purport to act as the
agent or legally empowered representative of the other party hereto for any purpose whatsoever. 

20.    ENTIRE AGREEMENT.    This Agreement, including Exhibits attached hereto, constitutes the complete agreement between the
parties relating to the subject matter hereof, and supersedes any prior or contemporaneous agreements or representations affecting such subject matter. 

21.    MISCELLANEOUS PROVISIONS.    This Agreement is a nonexclusive agreement. No addition to or modification of this Agreement
shall be effective unless made in writing and signed by the respective representatives of QUALCOMM and Integrator. Any delay or failure to enforce at any time any provision of this Agreement shall not
constitute a waiver of the right thereafter to enforce each and every provision thereof. If any of the provisions of this Agreement is determined to be invalid, illegal, or otherwise unenforceable,
the remaining provisions shall remain in full force and effect. The parties' rights and obligations which by their sense and context are intended to survive any termination or expiration of this
Agreement shall so survive. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. 

	QUALCOMM Incorporated	 	    

	

By:	

    
	
 	

By:	

    

	

Name:	

    
	
 	

Name:	

    

	

Title:	

    
	
 	

Title:	

    

32

  

 
 

Attachment 1    

 
 

QUALCOMM COMMERCIAL RATES    
    

QUALCOMM's
Labor Rates are as follows: 

	

	Labor Category
	 	Hourly Rate (in U.S. $)

	

	Sr. Principal Engineer	 	$490
	

	Principal Engineer	 	$350
	

	Project Manager	 	$246
	

	Systems/Sr. Engineer	 	$215
	

	Hardware/Software Engineer	 	$215
	

	Administration	 	$168
	

	Associate Engineer/Sr. Field Engineer	 	$167
	

	Sr. Technician/Sr. Field Technician	 	$158
	

	Field Engineer	 	$158
	

	Field Technician/Technician	 	$115
	

	Admin Support	 	$99
	

Travel
costs and materials are not included in the above Labor Rates. As needed, they will be separately quoted by QUALCOMM. 

QUALCOMM
Labor Rates are established at a corporate level and adjusted annually. Current Labor Rates above are effective through December 31, 2004. 

33

 

 
 

Attachment 2    

 
 

INTEGRATOR'S APPLICATION AND INTEGRATED PRODUCT    
    

	1.  Integrator's Application is:
	

    

	    
	(to be completed by Integrator prior to Agreement signing).
	

2.  Integrator's Integrated Product is:
	

    

	    
	(to be completed by Integrator prior to Agreement signing).
	

3.  Modifications that will be made to the Product for the Integrated Product are:
	

    

	    
	(to be completed by Integrator prior to Agreement signing).

This
Attachment may only be amended by written agreement of QUALCOMM. 

34

 

 
 

Attachment 3    

 
 

MODIFICATIONS    
    

The
following Categories of Modifications to the QUALCOMM Globalstar Satellite Data Modem, GSP1620 require Buyer to sign QUALCOMM's Product Supply and/or Integration Agreement, as indicated below.
Modifications indicating "Not Approved" are not authorized by QUALCOMM. No other modifications are permitted. 

	

	 
	 	Modification Category
	 	Supply

Agreement
	 	Integration

Agreement
	 	Not Approved

	

	1	 	Add Enclosure and Mounting	 	 	 	X	 	 
	

	2	 	Power Source Hook Up (DB-15)	 	X	 	 	 	 
	

	3	 	Surge Protection Implementation (e.g., fusing)	 	X	 	 	 	 
	

	4	 	Change Cable and Cable Lengths	 	 	 	X	*	 
	

	5	 	RF Modification (excluding RF Module)	 	 	 	X	*	 
	

	6	 	Use in Proximity of GPS Installation	 	X	*	 	 	 
	

	7	 	Antenna Change (i.e., other than DRA)	 	 	 	X	*	 
	

	8	 	Hook Up to Interface (user serial standard RS232)	 	X	 	 	 	 
	

	9	 	Software Change (including interface Operation System Source Code)	 	 	 	 	 	X
	

	10	 	Hardware Modification	 	 	 	 	 	X
	

	11	 	Develop Maritime Application	 	 	 	X	*	 
	

	12	 	Develop Explosive Environment Application	 	 	 	 	 	X
	

	13	 	Develop Aviation Application	 	 	 	X	*	 
	

	14	 	Develop ATC Application	 	 	 	X	*	 
	

	15	 	Grounding	 	X	 	 	 	 
	

	16	 	Tandem Connection (i.e., ganging)	 	X	*	 	 	 
	

	17	 	Use of DB-9 UTDM SW to Access SDM's Port (e.g., use of commands)	 	 	 	X	*	 
	

	18	 	Any other Modification, Category or Application not listed above to be reviewed by QUALCOMM on a case-by-case basis	 	 	 	 	 	 
	

* Requires
QUALCOMM Engineering Consultation. 

35

 

 
 

Attachment 4    

 
 

MUTUAL NON-DISCLOSURE AGREEMENT    

 
 

OMITTED    

36

  

 
 

Attachment 5    

 
 

RMA (Return Material Authorization) Procedures
  for QUALCOMM Globalstar Products    
    

Prior to Requesting an RMA 

        1.     Buyer
personnel must be registered with QUALCOMM Customer Service to submit a request for RMA. To obtain registration status, Buyer must email QUALCOMM Customer Service
at gstechsupport@qualcomm.com. (A list of authorized personnel that can obtain RMAs from QUALCOMM should be provided in advance, if possible, by Buyer). 

        2.     Buyer
personnel will receive an email confirmation that they have been authorized to submit RMAs. 

RMA Procedure 

        1.     Buyer
should REQUEST an RMA from QUALCOMM using one of the following methods: 

	•
	EMAIL
QUALCOMM Customer Service at gstechsupport@qualcomm.com. Be sure to include "RMA Request" in the subject field. 

Or

	•
	Request
a hardcopy RMA form comm-sa@qualcomm.com. 

COMPLETE
the hardcopy RMA form and FAX the form to QUALCOMM Customer Service (US) +1 858-651-QFAX (7329) or send it as an attachment in an email to
gstechsupport@qualcomm.com. Be sure to include the original Purchase Order Number or Contract Name/Number on this Form. 

        2.     The
QUALCOMM Customer Service Representative will log the information into QUALCOMM's call tracking software system, which automatically assigns a case number for the RMA
request. Please note, this is not the RMA number. The RMA number will be assigned if all warranty criteria have been met. Please include a description of the problem and the RMA documentation with the
part(s) to be repaired. 

        3.     Buyer
will RECEIVE a confirmation and case number for the RMA request from QUALCOMM Customer Service via email. 

        4.     Buyer
will RECEIVE an RMA number, shipping instructions, and RMA confirmation documents from QUALCOMM Customer Service via email or fax. 

        5.     Buyer
must package the RMA part(s) for shipment for safe arrival at QUALCOMM, including the following: 

	a)
	Package
part(s) in accordance with professional packing standards. Part(s) must be packaged in original box or equivalent container. If applicable, external box should be suitable for
international shipment or Freight Forwarder equivalent.

	b)
	Enclose
the RMA form, the description of the failure, and a copy of the RMA documentation received from QUALCOMM in each shipping container. If applicable, enclose any exportation
documentation for customs purposes.

	c)
	Write
the RMA number(s) on the outside of each container. If reusing shipping containers, remove previous stickers and labeling.

	d)
	Verify
the "Ship TO" address is visible on the outside of each container. 

37

 

        6.     Buyer
must SHIP the RMA part(s) per QUALCOMM shipping instructions indicated on the RMA documentation. 

Please
refer to the applicable contract agreement with QUALCOMM to determine the responsible party and schedule for payment of associated shipping costs (i.e., customs clearance, freight costs, and
associated duties and taxes) required for transport or parts(s) to and from QUALCOMM; and for Repair Evaluation Fees and Repair Fees. 

        7.     For
tracking purposes, Buyer must OBTAIN the Airway Bill (AWB) number from the freight forwarder and email both the AWB number and the associated RMA number to QUALCOMM
Customer Service at status.rma@qualcomm.com shipment. 

        8.     QUALCOMM
will notify Buyer of estimated ship schedule for repaired part(s) via email. 

        9.     Buyer
should CONFIRM the receipt of the repaired product(s) and validate the functionality of the part (i) by sending email to
status.rma@qualcomm.com. 

        10.   Upon
receipt of Buyer's confirmation, QUALCOMM will close the Case and the RMA. If confirmation has not been received in thirty (30) days from date of shipment,
QUALCOMM will close the case and the RMA accordingly. 

This
Procedure may change from time to time in QUALCOMM's sole discretion. Buyer should contact QUALCOMM for questions. 

38

 

  
 

  Attachment 6    
    

AGREEMENT FOR REPAIR OF OUT-OF-WARRANTY

GLOBALSTAR HARDWARE

(CDMA Gateway Equipment, Satellite Phone Products, Satellite Data Modems)

AGREEMENT No.                                

This
Agreement for Repair of Out-of-Warranty Globalstar Hardware ("Agreement") is entered into as of                         ,
2004 ("Effective Date") by
and between QUALCOMM Incorporated ("QUALCOMM"), a Delaware U.S.A. corporation having offices at 5775 Morehouse Drive, CA 92121, and
                        , a
                         ("Customer"), with offices located at
                        , and each may be referred to as "party" and collectively as "parties" to
this Agreement. 

1.0    Term.    The
term of this Agreement shall be for one (1) year from the Effective Date. During the term, all QUALCOMM repairs for
out-of-warranty hardware shall be governed by this Agreement. 

2.0    Repairs.    QUALCOMM
will perform reasonable repairs based on the availability of QUALCOMM's personnel and component parts. Customer will be
notified if QUALCOMM deems any part not repairable, and Customer may request to purchase a replacement part at that time (to be sold subject to availability and under a separate agreement). 

3.0    Return
Material Authorization (RMA).    All returns shall be handled in accordance with QUALCOMM's RMA Procedures. For each repair requested
during the term and for Customer's return of any part(s) for repair, Customer shall request an RMA Number. 

Any
unauthorized part received by QUALCOMM will be returned at the Customer's sole expense. If RMA number is issued by QUALCOMM and QUALCOMM fails to receive Customer's defective part within thirty
(30) days of issuance of the RMA number, QUALCOMM reserves the right to cancel the RMA upon written notice to Customer, and retain any monies received by the Customer for said repair. Customer
may cancel an RMA prior to Customer's shipment of part(s) upon written notice to QUALCOMM. Upon receipt of Customer's notice, QUALCOMM will cancel the associated RMA number. Information in the form of
Exhibit A hereto will be required prior to each repair. 

4.0    Price.    QUALCOMM's
repair prices do not include shipping, duties or taxes. For all out-of-warranty repairs, Customer
agrees to pay all shipping, duties and taxes associated with the return of part(s) to QUALCOMM, and associated with the repaired part(s) being returned to Customer. To the extent reasonably possible,
QUALCOMM will publish current repair prices on QUALCOMM's Customer Service website. In certain cases, QUALCOMM will provide an estimated repair price upon Customer's return of the part and QUALCOMM's
evaluation of necessary repair. 

5.0    Payment.    All
payments shall be made in U.S. Dollars. Unless otherwise agreed to by QUALCOMM, Repair Evaluation Fee(s) must be received prior
to QUALCOMM's issuance of an RMA and evaluation of a part. Payment terms for out-of-warranty repairs are twenty five percent (25%) of the estimated repair price due prior to
QUALCOMM's issuance of an RMA number and Customer's shipment of the part(s), and seventy five percent (75%) of the actual repair price due within thirty (30) days after QUALCOMM's delivery to
the FCA Point (i.e., QUALCOMM's dock). QUALCOMM will invoice on a NET 30 basis. Payments shall reference this Agreement number and must be made by credit card based on Customer information below or
via wire transfer to the bank location set forth below, or such other bank location as QUALCOMM may from time to time designate in writing: 

Bank
of America

San Francisco, California

ABA# 121-000-358

Int: S.W.I.F.T. No. [*]

Account [*] 

39

 

Customer shall pay to QUALCOMM a late charge on any undisputed past due amounts at the rate of one percent (1%) per month or part thereof or the maximum amount permitted by
law, whichever is less. In the event Customer disputes an amount invoiced by QUALCOMM, Customer shall promptly notify QUALCOMM in writing the basis for such dispute, and shall pay the undisputed
portion of such invoice as set for therein. 

6.0    Delivery.    Estimated
lead times for QUALCOMM repairs will be provided to Customer upon request. Delivery terms are FCA, QUALCOMM's dock, San
Diego, California (the "FCA Point"). QUALCOMM will notify Customer in writing when the repaired part(s) is available for pick up (the "Notification Date"). If Customer fails to pick up the repaired
part(s) following thirty (30) days after the Notification Date, QUALCOMM will invoice, and Customer will be responsible, for payment of daily storage fees at QUALCOMM's then-current
rate until such time as the repaired part(s) is picked up by Customer. 

7.0    Warranty.    Customer
has twenty (20) days from Customer's receipt of a repaired part to notify QUALCOMM that the part is
non-working (and in no case can a notification be received later than forty five (45) days from the Notification Date. Otherwise, Customer shall be deemed to have accepted the
part(s) "AS IS, and without warranty of any kind." If a returned part is non-working, Customer will provide QUALCOMM a detailed explanation of the problem, and photographs if available,
when obtaining an RMA number from QUALCOMM. If upon QUALCOMM's reasonable evaluation it is determined that the part remains defective or otherwise non-working as a direct result of
QUALCOMM's actions (or the actions of its suppliers), QUALCOMM will repair the part at QUALCOMM's expense and ship the part back to Customer at QUALCOMM's expense (except for duties and taxes which
will be the responsibility of Customer). THE WARRANTY IN THIS SECTION 6.0 IS IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED, WHETHER ARISING FROM LAW, CUSTOM, OR CONDUCT AND IS CUSTOMER'S
SOLE REMEDY RELATED TO QUALCOMM'S REPAIR OF A PRODUCT. 

8.0    Termination
for Cause.    Either party may terminate this Agreement for material default by the other party of an obligation, condition or
covenant of this Agreement, which, if curable, is not cured within thirty (30) days of the date after the other party notifies the defaulting party of such default. 

9.0    Agreement/Governing
Law.    Customer's Purchase Order and/or terms and conditions do not apply. This Agreement, and the RMA Procedures, are the
complete agreement between the parties regarding the subject matter and this Agreement shall be construed according to the laws of the State of California without giving effect to the principles of
conflicts of law thereof. 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

	    
	 	QUALCOMM Incorporated
	

By:	

    
	
 	

By:	

    

	

Name:	

    
	
 	

Name:	

    

	

Title:	

    
	
 	

Title:	

    

40

 

 
 

Exhibit A    
    

	

	MCN or Part #
	 	Part Name
	 	Quantity
	 	Serial #
	 	Repair Price (in

US $)*

	

	 	 	 	 	 	 	 	 	$	 
	

	 	 	 	 	 	 	 	 	$	 
	

	 	 	 	 	 	 	 	 	$	 
	

	    	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	TOTAL REPAIR PRICE,

EXCLUDING SHIPPING,

TAXES & DUTIES	 	$	 
	

* Repair
price is per QUALCOMM's Website or as quoted in writing by QUALCOMM. 

	Complete Description of Problem:	    

	

    

	

    

	

    

	
CUSTOMER CREDIT CARD INFORMATION AND AUTHORIZATION:	

 
	

Credit Card Type:	

    
	

 

	Number:	    
	 

	Expiration Date:	    
	 

	Name on Credit Card:	    
	 

	Customer's Signature:	    
	 

For
credit card payments, Customer will include pertinent information above. Customer's signature is authorization for QUALCOMM to charge the prices stated on this Agreement to Customer's credit card. 

41

 

	SHIP TO ADDRESS FOR REPAIRED PART(S):	 
	

    
	

 
	

    
	

 
	

    
	

 
	

SHIPPING INFORMATION (if Customer requests QUALCOMM's shipment of repaired part(s) in lieu of Customer pickup):
	

Freight Forwarder:	

    
	

 

	Freight Account #	    
	 

	Ship Method:	    
	 

42

QuickLinks

Exhibit 10.6

CONFIDENTIAL TREATMENT

QUALCOMM Incorporated QUALCOMM Globalstar Satellite Products Supply Agreement Agreement No. 04-QC/NOG-PRODSUP-001

AGREEMENT

EXHIBIT A

QUALCOMM Supply Terms & Conditions December 2, 2003

Attachment 1

MUTUAL NON-DISCLOSURE AGREEMENT

OMITTED

Attachment 2

QUALCOMM INCORPORATED OUT-OF-WARRANTY HARDWARE REPAIR PRICING GLOBALSTAR PRODUCTS (Prices Effective Through December 31, 2004)

Attachment 3

RMA (Return Material Authorization) Procedures for QUALCOMM Globalstar Products

Attachment 4

AGREEMENT FOR REPAIR OF OUT-OF-WARRANTY GLOBALSTAR HARDWARE (CDMA Gateway Equipment, Satellite Phone Products, Satellite Data Modems) AGREEMENT No.

Exhibit A

Attachment 5

QUALCOMM Commercial Rates

EXHIBIT B

ACCESSORIES

EXHIBIT C

PRODUCT PRICING

EXHIBIT D

MODIFICATIONS

EXHIBIT E

Integration Agreement

Agreement No.

Attachment 1

QUALCOMM COMMERCIAL RATES

Attachment 2

INTEGRATOR'S APPLICATION AND INTEGRATED PRODUCT

Attachment 3

MODIFICATIONS

Attachment 4

MUTUAL NON-DISCLOSURE AGREEMENT

OMITTED

Attachment 5

RMA (Return Material Authorization) Procedures for QUALCOMM Globalstar Products

Attachment 6

Exhibit A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]