Document:

exv10w1

 

EXHIBIT 10.1

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE

SECURITIES AND EXCHANGE COMMISSION.

CONTRACT

Between

ViaSat, Inc.

And

Space Systems/Loral, Inc.

for the

ViaSat Satellite Program

The attached Contract and information contained therein are confidential and proprietary to ViaSat,
Inc. and Space Systems/Loral, Inc. and shall not be published or disclosed to any third party
except as permitted by the terms and conditions of this Contract.

			
	 	 	 
	
	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE	 	PAGE
	TABLE OF CONTENTS	 	 	i	 
	PREAMBLE	 	 	1	 
	RECITALS	 	 	2	 
	Article 1 -
	 	DEFINITIONS	 	 	3	 
	Article 2 -
	 	SCOPE OF WORK	 	 	16	 
	Article 3 -
	 	DELIVERABLE ITEMS AND DELIVERY SCHEDULE	 	 	26	 
	Article 4 -
	 	PRICE	 	 	28	 
	Article 5 -
	 	PAYMENTS	 	 	33	 
	Article 6 -
	 	PURCHASER-FURNISHED ITEMS	 	 	37	 
	Article 7 -
	 	COMPLIANCE WITH LAWS AND DIRECTIVES	 	 	40	 
	Article 8 -
	 	ACCESS TO WORK-IN-PROGRESS	 	 	43	 
	Article 9 -
	 	SATELLITE PRE-SHIPMENT REVIEW (SPSR) AND DELIVERY	 	 	47	 
	Article 10 -
	 	ACCEPTANCE OF SATELLITE, LAUNCH SUPPORT AND MISSION OPERATIONS SUPPORT
   SERVICES AND IN-ORBIT TEST	 	 	51	 
	Article 11 -
	 	ACCEPTANCE OF DELIVERABLE ITEMS OTHER THAN THE SATELLITE	 	 	53	 
	Article 12 -
	 	TRANSFER OF TITLE AND RISK OF LOSS	 	 	58	 
	Article 13 -
	 	ORBITAL PERFORMANCE INCENTIVES	 	 	60	 
	Article 14 -
	 	CORRECTIVE MEASURES IN THE SATELLITE AND OTHER DELIVERABLE ITEMS	 	 	65	 
	Article 15 -
	 	REPRESENTATIONS AND WARRANTIES	 	 	66	 
	Article 16 -
	 	CHANGES	 	 	73	 
	Article 17 -
	 	FORCE MAJEURE	 	 	75	 
	Article 18 -
	 	PURCHASER DELAY OF WORK	 	 	78	 
	Article 19 -
	 	INTELLECTUAL PROPERTY INDEMNITY	 	 	79	 
	Article 20 -
	 	INDEMNIFICATION	 	 	81	 
	Article 21 -
	 	TERMINATION FOR CONVENIENCE	 	 	84	 
	Article 22 -
	 	LIQUIDATED DAMAGES	 	 	86	 
	Article 23 -
	 	TERMINATION FOR DEFAULT	 	 	94	 
	Article 24 -
	 	RESERVED	 	 	98	 
	Article 25 -
	 	DISPUTE RESOLUTION	 	 	99	 
	Article 26 -
	 	INTER-PARTY WAIVER OF LIABILITY FOR A LAUNCH	 	 	102	 
	Article 27 -
	 	LIMITATION OF LIABILITY	 	 	104	 
	Article 28 -
	 	DISCLOSURE AND HANDLING OF PROPRIETARY INFORMATION	 	 	106	 

			
	 	 	 
	
	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

i 

 

 

	 	 	 	 	 	 	 
	ARTICLE	 	PAGE
	Article 29 -
	 	CONTRACT TECHNOLOGY ESCROW	 	 	109	 
	Article 30 -
	 	PUBLIC RELEASE OF INFORMATION	 	 	111	 
	Article 31 -
	 	NOTICES	 	 	112	 
	Article 32 -
	 	RISK MANAGEMENT SERVICES	 	 	114	 
	Article 33 -
	 	ORDER OF PRECEDENCE	 	 	118	 
	Article 34 -
	 	GENERAL	 	 	119	 
	Article 35 -
	 	GROUND STORAGE	 	 	124	 
	Article 36 -
	 	ORBIT MANEUVER [***] AND LAUNCH VEHICLE [***]	 	 	126	 
	Article 37 -
	 	CONTRACTOR PERSONNEL	 	 	128	 
	Article 38 -
	 	SUBCONTRACTS	 	 	130	 
	Article 39 -
	 	INTELLECTUAL PROPERTY	 	 	132	 
	Article 40 -
	 	LENDER REQUIREMENTS	 	 	134	 
	Article 41 -
	 	SECURITY INTEREST	 	 	135	 

 

			
	***	 	Certain information on this page has been omitted and filed separately with the Commission.
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	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

ii 

 

 

PREAMBLE

This Contract is entered into effective as of the 7th day of January, 2008 (the “Effective Date of
Contract” or “EDC”), by and between ViaSat, Inc. (“ViaSat”), a corporation organized and existing
under the laws of the state of Delaware having an office and place of business at 6155 El Camino
Real, Carlsbad, CA 92009-1699 (hereinafter referred to as “Purchaser”), and Space Systems/Loral,
Inc., a corporation organized and existing under the laws of the state of Delaware, having an
office and place of business at 3825 Fabian Way, Palo Alto, CA 94303-4604 (hereafter referred to as
“Contractor”, and Purchaser and Contractor are hereafter referred to collectively as the “Parties”
or individually as a “Party”), regarding the ViaSat Satellite program.

			
	 	 	 
	
	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

1

 

RECITALS

WHEREAS, Purchaser desires to procure a communications Satellite, a Dynamic Satellite Simulator,
Launch Support Services, Mission Operations Support Services, Training services and other items and
services to the extent and subject to the terms and conditions set forth herein, and

WHEREAS, Purchaser has entered into a CondoSat Agreement with Loral Space & Communications, Inc., a
Delaware company, whereby the parties thereto intend that Purchaser will take title to the
Satellite, except for the Loral Space Payload portion (to which CondoSat Associate will take title)
at Intentional Ignition; however, except for certain limited rights to be identified in a separate
agreement between CondoSat Associate and Contractor, Purchaser shall have the exclusive rights
(including the exclusive rights of exercise) associated with the Satellite and other Deliverable
Items as further set forth herein; and

WHEREAS, Contractor is willing to furnish such Satellite (including the transfer of title to the
Loral Space Payload directly to CondoSat Associate per separate agreement), a Dynamic Satellite
Simulator, Launch Support Services, Mission Operations Support Services, Training services and
other items and services to the extent of and subject to the terms and conditions set forth herein,
in consideration of the price and other valid consideration.

NOW, THEREFORE, in consideration of the price and other valid consideration and the mutual
covenants and agreements contained herein and intending to be legally bound, the Parties agree as
follows:

			
	 	 	 
	
	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

2

 

ARTICLE 1 — DEFINITIONS

Capitalized terms used and not otherwise defined herein shall have the following meanings:

	 	1.1	 	“Acceptance” (i) with respect to the Satellite shall be as provided in Article 10,
and (ii) with respect to any Deliverable Item other than the Satellite shall be as
provided in Article 11.
	 
	 	1.2	 	“[***]” has the meaning set forth in Article 22.2.1.
	 
	 	1.3	 	“Actual Costs” shall mean Contractor’s direct and actual costs as determined in
accordance with Contractor’s standard accounting practices uniformly applied, including
any indirect costs, but excluding any profit, margin, mark-up, or other fees.
	 
	 	1.4	 	“Additional Beams” has the meaning set forth in Article 2.1(B).
	 
	 	1.5	 	“Affiliate” means, with respect to an entity, any other entity, directly or
indirectly, Controlling or Controlled by or under common Control with such first named
entity.
	 
	 	1.6	 	“Anomaly” means, with respect to a Satellite in-orbit, a known condition or
occurrence that has or reasonably can be predicted to have an adverse impact on the
Stated Life or performance of the Satellite, and includes those items listed in paragraph
2.5.8.2(f) of the SOW.
	 
	 	1.7	 	“Article” means an article of this Contract.
	 
	 	1.8	 	“Attachment(s)” means any and all attachment(s) that are attached hereto or to any
Exhibit and incorporated herein or therein, as may be amended from time to time in
accordance with the terms hereof.
	 
	 	1.9	 	“[***]” has the meaning set forth in Article 4.6.
	 
	 	1.10	 	“Business Day” means any day other than a Saturday, Sunday or any other day on
which national banks are authorized to be closed in New York City, New York.
	 
	 	1.11	 	“Canadian Beams” has the meaning set forth in Article 2.1(B).
	 
	 	1.12	 	“Candidate Launch Vehicles” has the meaning set forth in Article 3.3.
	 
	 	1.13	 	“[***]” has the meaning set forth in Article 2.1(B).
	 
	 	1.14	 	“[***]” has the meaning set forth in Article 4.6.

 

			
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	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

3

 

	 	1.15	 	“Certification” has the meaning set forth in Article 9.1.6.
	 
	 	1.16	 	“Collateral” has the meaning set forth in Article 41.1.1.
	 
	 	1.17	 	“Competitor” means the following entities or any successors or assigns thereof that
are in direct competition with Contractor for the manufacture and sale of commercial
satellites: Orbital Sciences Corporation; Lockheed Martin Commercial Space Systems;
Boeing Satellite Systems; Thales Alenia Space; EADS Astrium; General Dynamics Spectrum
Astro Space Systems; Mitsubishi Electric Corp. (MELCO); and Northrop Grumman Space
Technology.
	 
	 	1.18	 	“Component” means any unit, system, subsystem, or piece of equipment or hardware or
software to be employed on a Satellite.
	 
	 	1.19	 	“CondoSat Agreement” means the agreement between ViaSat, Inc. and Loral Space &
Communications, Inc., dated of even date hereof.
	 
	 	1.20	 	“CondoSat Associate” means Loral Space & Communications, Inc., and any permitted
assigns or successors in interest thereto under the CondoSat Agreement.
	 
	 	1.21	 	“CondoSat Associate Portion” has the meaning set forth in Article 4.1.
	 
	 	1.22	 	“Configuration Period” has the meaning set forth in Article 2.1(B).
	 
	 	1.23	 	“Configuration Process” has the meaning set forth in Article 2.1(B).
	 
	 	1.24	 	“Contract” means the terms and conditions (Preamble, Recitals and Articles) of this
executed contract, its Exhibits and its Attachment(s) as set forth in Articles 2.1 and
33, as may be amended from time to time in accordance with the terms hereof.
	 
	 	1.25	 	“Contractor” has the meaning set forth in the Preamble and any successor or
assignee permitted hereunder.
	 
	 	1.26	 	“Contractor Intellectual Property” shall mean such Intellectual Property owned by
Contractor and provided to Purchaser related to this Contract (before or after EDC) and
all Intellectual Property Rights related thereto. Contractor Intellectual Property
shall also include any derivatives, improvements, or modifications made by Purchaser or
Contractor thereto, except for derivatives, improvements, or modifications that can be
used by Purchaser without infringing or violating the pre-existing Intellectual Property
Rights of Contractor.

			
	 	 	 
	
	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

4

 

	 	1.27	 	“Contract Technology” means all: (a) Software (in object code and source code
format unless otherwise specified); and (b) data and documentation required for the
performance, maintenance, or operation of any Deliverable Item.
	 
	 	1.28	 	“Control” and its derivatives mean, with respect to an entity, (i) the legal,
beneficial, or equitable ownership, directly or indirectly, of fifty percent (50%) or
more of the capital stock (or other ownership interest if not a corporation) of such
entity ordinarily having voting rights, or (ii) the power to direct, directly or
indirectly, the management policies of such entity, whether through the ownership of
voting stock, by contract, or otherwise.
	 
	 	1.29	 	“Cure Letter” has the meaning set forth in Article 9.1.6.
	 
	 	1.30	 	“Daily Rate” has the meaning set forth in Article 13.
	 
	 	1.31	 	“Defect” means (a) with respect to the Satellite, the DSS, the Satellite Control
Facility Equipment (if the options therefor are exercised), and the Spares, any failure
to meet the applicable specifications of this Contract, including failures due to
non-compliant materials or workmanship, or (b) with respect to any Deliverable Data,
Software, or Deliverable Services, any failure to meet the applicable requirements of
this Contract.
	 
	 	1.32	 	“Deliverable Data” means the data and documentation required to be delivered to
Purchaser as specified in Article 3.1.
	 
	 	1.33	 	“Deliverable Item” means any of the items or services listed in Article 3.1, as may
be amended from time to time in accordance with the terms hereof and, collectively, the
“Deliverable Items.”
	 
	 	1.34	 	“Deliverable Services” means those services listed in Article 3.1, as may be
amended from time to time in accordance with the terms hereof.
	 
	 	1.35	 	“Delivery” has the meaning set forth in Article 3.2.
	 
	 	1.36	 	“Dispute” has the meaning set forth in Article 25.
	 
	 	1.37	 	“Dynamic Satellite Simulator” or “DSS” means the dynamic satellite simulator that
is to be delivered to Purchaser pursuant to this Contract.
	 
	 	1.38	 	“Effective Date of Contract” or “EDC” has the meaning set forth in the Preamble.
	 
	 	1.39	 	“Escrow Agreement” has the meaning set forth in Article 29.1.

			
	 	 	 
	
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ViaSat Contract

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5

 

	 	1.40	 	“Eutelsat” has the meaning set forth in Article 4.2.
	 
	 	1.41	 	“Exhibit(s)” means the exhibit(s) identified in Article 2.1 and attached hereto and
incorporated herein, as may be amended from time to time in accordance with the terms
hereof.
	 
	 	1.42	 	“Exploit” means with regard to Contractor Intellectual Property to use such
Intellectual Property (1) to launch, use, operate and maintain the Satellite, and to
sell, offer for sale, lease, market and rent capacity on, market and provide services
with respect to, and otherwise obtain the benefits of, the Satellite, and, (2) to use,
operate, reproduce, and maintain, as applicable, Deliverable Items in carrying out
Purchaser’s business related to the Satellite.
	 
	 	1.43	 	“FCC” means the Federal Communications Commission or any successor agency or
governmental authority.
	 
	 	1.44	 	“Final Configuration” has the meaning set forth in Article 2.1(B).
	 
	 	1.45	 	“Final Orbit Location” has the meaning set forth in Article 2.1(B).
	 
	 	1.46	 	“Final Statement” has the meaning set forth in Article 21.1.3.
	 
	 	1.47	 	“Financing Entity” means any entity (other than Contractor or parties related to
Contractor or a Competitor of Contractor), which has been specifically identified in a
written notification to Contractor providing money to Purchaser to fund any portion of
the Satellite or the Work.
	 
	 	1.48	 	“Firm Fixed Price” has the meaning set forth in Article 4.1.
	 
	 	1.49	 	“Force Majeure” has the meaning set forth in Article 17.
	 
	 	1.50	 	“[***]” has the meaning set forth in Article 35.2.
	 
	 	1.51	 	“Ground Insurance” has the meaning set forth in Article 32.5.
	 
	 	1.52	 	“Ground Storage” means that period where the Satellite is held on the ground for an
extended period prior to Launch.
	 
	 	1.53	 	“In-Orbit Testing” or “IOT” means the testing of the Satellite in-orbit in
accordance with Exhibit D, Satellite Program Test Plan.
	 
	 	1.54	 	“IOT Complete Date” has the meaning set forth in Article 10.3.

 

			
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	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

6

 

	 	1.55	 	“Integration Activities” has the meaning set forth in Article 3.3.
	 
	 	1.56	 	“Intellectual Property” means all designs, techniques, analyses, methods, concepts,
formulae, layouts, software, inventions (whether or not patented or patentable),
discoveries, improvements, processes, ideas, technical data and documentation, technical
information, engineering, manufacturing and other drawings, specifications and similar
matter in which an Intellectual Property Right subsists, regardless of whether any of the
foregoing has been reduced to writing or practice.
	 
	 	1.57	 	“Intellectual Property Claim” has the meaning set forth in Article 19.
	 
	 	1.58	 	“Intellectual Property Right(s)” means all common law and statutory proprietary
rights with respect to Intellectual Property, including patent, patent application,
copyright, trademark, service mark, trade secret, mask work rights, data rights, moral
rights, and similar rights existing from time to time under the intellectual property
laws of the United States, any state or foreign jurisdiction, or international treaty
regime, regardless of whether such rights exist as of the date hereof or arise or are
required at any time in the future.
	 
	 	1.59	 	“Intentional Ignition” means, with respect to the Satellite, the start of the
ignition process of the Launch Vehicle for the purpose of Launch, which is the time at
which the command signal is sent to the Launch Vehicle. This definition shall be
modified to reflect the definition of “intentional ignition” in the Launch Services
Agreement applicable to Launch of the Satellite.
	 
	 	1.60	 	“Intermittent Failure” means a Transponder Failure for a period in excess of [***]
continuous minutes or [***] cumulative minutes in any day during the Orbital Performance
Incentive Period.
	 
	 	1.61	 	“Junior Lien” has the meaning specified in Article 41.1.4.
	 
	 	1.62	 	“ITAR” means 22 C.F.R. Sections 120 through 130, International Traffic in Arms
Regulations, as amended.
	 
	 	1.63	 	“Key Milestone Date(s)”has the meaning set forth in Article 22.1.

 

			
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	 	SS/L-TP20701

ViaSat Contract

Use or disclosure of the data and information contained on this sheet is subject to the restriction
on the title page.

7

 

	 	1.64	 	“Key Personnel” has the meaning set forth in Article 37.2.
	 
	 	1.65	 	“Launch” means, with respect to the Satellite, Intentional Ignition followed by
lift-off. This definition shall be modified to incorporate the definition of “launch”
from the Launch Services Agreement applicable to the Launch of the Satellite.
	 
	 	1.66	 	“Launch and In-Orbit Insurance Policy” has the meaning set forth in Article 32.2.
	 
	 	1.67	 	“Launch Agency” means the provider of Launch Services responsible for the Launch of
the Satellite.
	 
	 	1.68	 	“Launch Services” means those services provided by the Launch Agency for the Launch
of the Satellite pursuant to the Launch Services Agreement.
	 
	 	1.69	 	“Launch Services Agreement” means the contract between the Purchaser and the Launch
Agency that provides Launch Services for the Satellite.
	 
	 	1.70	 	“Launch Site” means the location that will be used by the Launch Agency for
purposes of launching the Satellite, except in the case of Sea Launch it shall mean the
home port located in Long Beach, CA.
	 
	 	1.71	 	“Launch Support” or “Launch Support Services” means those services specified in
Exhibit A, Statement of Work to be provided by Contractor in support of Launch Services.
	 
	 	1.72	 	“Launch Vehicle” means the launch vehicle used to provide Launch Services for the
Satellite.
	 
	 	1.73	 	“Loral Space Payload” means that portion of the Satellite payload consisting of
nine (9) Canadian Beams.
	 
	 	1.74	 	“Loral Space Payload Contract” means the contract between Contractor and CondoSat
Associate for provision of the Loral Space Payload, dated of even date hereof.
	 
	 	1.75	 	“Losses” has the meaning set forth in Article 20.1.
	 
	 	1.76	 	“Major Subcontract” has the meaning set forth in Article 38.1.
	 
	 	1.77	 	“Major Subcontractor” means a Subcontractor who is a party to a Major Subcontract.
	 
	 	1.78	 	“Milestone” means a portion of the Work upon completion of which a payment is to be
made in accordance with Exhibit E, Payment Plan and Termination Liability

			
	 	 	 
	
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ViaSat Contract

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8

 

Schedule. Milestone completion criteria and processes are as set forth in Exhibit A,
Statement of Work and/or Exhibit E, Payment Plan and Termination Liability Schedule, as
applicable. Orbital Performance Incentives shall not constitute a Milestone.

	 	1.79	 	“Mission Assurance Plan” means the mission assurance plan attached as Exhibit C, as
may be amended from time to time in accordance with the terms hereof.
	 
	 	1.80	 	“Mission Operations Support Services” means the orbit-raising, IOT and related
services specified in Exhibit A, Statement of Work, to be performed by Contractor for the
Satellite.
	 
	 	1.81	 	“Notice of Non-Conformance” has the meaning set forth in Article 9.1.6.
	 
	 	1.82	 	“NSP” means “not separately priced” and included in the Firm Fixed Price.
	 
	 	1.83	 	“OML Payment” has the meaning set forth in Article 36.
	 
	 	1.84	 	“Option Satellite” has the meaning set forth in Article 2.2.
	 
	 	1.85	 	“Option Satellite Exercise Period” has the meaning set forth in Article 2.2.
	 
	 	1.86	 	“Orbital Performance Incentive Period” means, with respect to the Satellite, the
period commencing at (and including) 12:01 a.m. Greenwich Mean Time on the first day
following the IOT Complete Date for such Satellite and ending on the last day of the
Stated Life.
	 
	 	1.87	 	“Orbital Performance Incentives” means the amount set forth in Article 13.2, which
may be earned by Contractor based on in-orbit performance of such Satellite as set forth
in Article 13.
	 
	 	1.88	 	“Orbital Storage” means, with respect to the Satellite, any period of time of
intentional non-use by Purchaser of such Satellite after the IOT Complete Date, provided
that such Satellite has been placed into orbit and is capable of performing in accordance
with Exhibit B, Satellite Performance Specification.
	 
	 	1.89	 	“Paragraph” means a paragraph under any Article hereof or section in an Exhibit or
Attachment.
	 
	 	1.90	 	“Partial Loss” means, with respect to the Satellite on or after Intentional
Ignition, that Transponder Failures have occurred, but the Satellite is not a Total Loss.
	 
	 	1.91	 	“Party” or “Parties” means Purchaser, Contractor or both, as the context requires.

			
	 	 	 
	
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ViaSat Contract

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	 	1.92	 	“Payment Plan and Termination Liability Schedule” means the payment plan for the
applicable Deliverable Item, and termination liability schedule for this Contract, as set
forth in Exhibit E, Payment Plan and Termination Liability Schedule, as may be amended
from time to time in accordance with the terms hereof.
	 
	 	1.93	 	“Performance Specification” means the applicable performance specification for the
Satellite or other Deliverable Item, as appropriate, in the context of the applicable
clause, as such specification may be amended from time to time in accordance with the
terms hereof.
	 
	 	1.94	 	“Permitted Debt” has the meaning specified in Article 41.1.4.
	 
	 	1.95	 	“Preamble” means the preamble section of this Contract.
	 
	 	1.96	 	“Proceeds” has, for purposes of Article 41, the meaning ascribed to such term by
the UCC.
	 
	 	1.97	 	“Proposal” has the meaning set forth in Article 16.
	 
	 	1.98	 	“Proprietary Information” has the meaning set forth in Article 28.
	 
	 	1.99	 	“Purchaser” has the meaning set forth in the Preamble and any successor or assignee
permitted hereunder.
	 
	 	1.100	 	“Purchaser Delay” has the meaning set forth in Article 18.
	 
	 	1.101	 	“Purchaser Intellectual Property” shall mean such Intellectual Property owned by
Purchaser and provided to Contractor related to this Contract (before or after EDC) and
all Intellectual Property Rights related thereto. Purchaser Intellectual Property shall
also include any derivatives, improvements, or modifications made by Purchaser or
Contractor thereto, except for derivatives, improvements, or modifications that can be
used by Contractor without infringing or violating the pre-existing Intellectual Property
Rights of Purchaser.
	 
	 	1.102	 	“Reasonable Efforts” means standards, practices, methods, and procedures
conforming to applicable law and that degree of effort, skill, diligence, prudence, and
foresight that would reasonably and ordinarily be expected from a skilled and experienced
commercial satellite contractor or commercial satellite owner, as the case may be.
	 
	 	1.103	 	“Recitals” means the recitals section of this Contract.

			
	 	 	 
	
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	 	1.104	 	“Remaining OML” has the meaning set forth in Article 36.
	 
	 	1.105	 	“Replacement Satellite” has the meaning set forth in Article 2.3.
	 
	 	1.106	 	“Replacement Satellite Exercise Period” has the meaning set forth in Article 2.3.
	 
	 	1.107	 	“Satellite” means the communications satellite that is to be manufactured by
Contractor and to be delivered to Purchaser pursuant to this Contract, and includes the
Loral Space Payload. The Satellite is also referred to as the “Primary Satellite.”
	 
	 	1.108	 	“Satellite Beams” has the meaning set forth in Article 2.1(B).
	 
	 	1.109	 	“SCF” means the Satellite Control Facility, which includes the Spares, as defined
in Exhibit F.
	 
	 	1.110	 	“Satellite Control Facility Equipment” or “SCF Equipment” means those items listed
in section 3.1 of Exhibit F, Satellite Control Facility Requirement Specification.
	 
	 	1.111	 	“Satellite Payload Specifications” means the payload portion of the Satellite
Performance Specifications set forth in Section 3 of Exhibit B hereto.
	 
	 	1.112	 	“Satellite Performance Specification” means the Satellite performance specification
attached as Exhibit B, as may be amended from time to time in accordance with the terms
hereof.
	 
	 	1.113	 	“Satellite Pre-Shipment Review” or “SPSR” has the meaning set forth in Article 9.
	 
	 	1.114	 	“Satellite Program Test Plan” means the Satellite program test plan attached as
Exhibit D, as may be amended from time to time in accordance with the terms hereof.
	 
	 	1.115	 	“Secured Obligations” means, collectively, all present and future obligations of
the Contractor to or for the benefit of Purchaser under this Contract, as well as all
damages to which Purchaser may be entitled as a result of any breach of this Contract.
All such obligations are “Secured Obligations”.
	 
	 	1.116	 	“Security Interest” has the meaning set forth in Article 41.1.1.
	 
	 	1.117	 	“Selection Criteria” has the meaning set forth in Article 2.1(B).
	 
	 	1.118	 	“Software” means the machine readable computer programs (including firmware,
files, databases, interfaces, documentation and other materials related thereto, and any
third party Software sublicensed by Contractor hereunder), as such Software is

			
	 	 	 
	
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revised, upgraded, updated, corrected, modified, and enhanced from time-to-time and
provided to Purchaser pursuant to this Contract.

	 	1.119	 	“Spare” means any spare part to be delivered with the Satellite Control Facility
Equipment.
	 
	 	1.120	 	“Stated Life” means, with respect to the Satellite, the contracted for life of
fifteen (15) years for such Satellite, commencing upon the IOT Complete Date for such
Satellite.
	 
	 	1.121	 	“Statement of Work” or “SOW” means the statement of work attached as Exhibit A, as
may be amended from time to time in accordance with the terms hereof.
	 
	 	1.122	 	“Storage Costs” has the meaning set forth in Article 35.2.
	 
	 	1.123	 	“Subcontract” means a contract or purchase order awarded by Contractor to a
Subcontractor or a contract or purchase order awarded by a Subcontractor at any tier for
performance of any of the Work.
	 
	 	1.124	 	“Subcontractor” means any person or business entity that has been awarded a
Subcontract.
	 
	 	1.125	 	“Substantially Similar Satellite” means a satellite that is identical to the
Satellite (but does not include the nine (9) Canadian Beams of the Loral Space Payload
and, further, CondoSat Associate will have no right, title or interest in such
Substantially Similar Satellite) in the following parameters:

	 	•	 	number of user beams;
	 
	 	•	 	number of gateway beams;
	 
	 	•	 	antenna assembly quantity, aperture size and optics;
	 
	 	•	 	antenna feed design types;
	 
	 	•	 	antenna allowable interface to the rest of the Satellite bus (except for RF
pathway connection to/from repeater);
	 
	 	•	 	repeater (same TWTA quantity and types, same LNA quantity, etc.);
	 
	 	•	 	frequency plan (same frequency converter and filter quantity and types); and
	 
	 	•	 	bus (solar array, battery, thermal, propulsion, autotrack, etc).

The following parameters may be different:

	 	•	 	CONUS orbital slot;
	 
	 	•	 	CONUS user beam locations; and

			
	 	 	 
	
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	 	•	 	CONUS gateway beam locations.

For the Substantially Similar Satellite, Contractor will optimize EIRP, G/T and C/I
performance with the same types of repeater and antenna Component design corresponding
to the new orbital slot, new coverage and new beam plan, which may result in performance
difference from the Satellite.

	 	1.126	 	“[***] Coverage” has the meaning set forth in Article 2.1(B).
	 
	 	1.127	 	“TCC” has the meaning set forth in Article 38.3.
	 
	 	1.128	 	“Technical Assistance Agreement” has the meaning set forth in section §120.22 of
the U.S. International Traffic in Arms Regulations, 22 CFR §120 — 130.
	 
	 	1.129	 	“Terminated Ignition” means that, following the time when the electronic signal is
sent to command the opening of any first stage propellant valves, the first stage engines
of the Launch Vehicle shut down for any reason before the hold down mechanism is released
and the Launch pad is declared safe by the Launch Agency. This definition shall be
modified to incorporate the definition of “terminated ignition” (or other similar term)
from the Launch Service Agreement applicable to the Launch of the Satellite.
	 
	 	1.130	 	“Total Combined Price” has the meaning set forth in Article 4.1.
	 
	 	1.131	 	“Total Loss” means with respect to the Satellite on or after Intentional Ignition
(i) the complete loss, destruction or failure of such Satellite, or (ii) as defined in
Purchaser’s Launch and In-Orbit Insurance Policy if defined differently therein.
	 
	 	1.132	 	“Training” means the training to be provided by Contractor in accordance with
Exhibit A, Statement of Work.
	 
	 	1.133	 	“Transponder” means any one of the primary designated Ka-Band transponders
specified in Exhibit B, Satellite Performance Specification, including both forward and
return transponders. A forward transponder receives signals from a single gateway
location and radiates those signals to a single user beam. A return transponder receives
signals from a single user beam and radiates those signals to a single gateway location.

 

			
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\

	 	1.134	 	“Transponder Failure” means, with respect to a forward Transponder, the failure
(including permanent or Intermittent Failures) to meet: (a) the G/T value for the
applicable gateway location, as set forth in Table 2 of Exhibit B, Satellite Performance
Specification; or (b) the EIRP value for the applicable beam, as set forth in Table 3 of
Exhibit B, Satellite Performance Specification. With respect to a return Transponder,
“Transponder Failure” means the failure (including permanent or Intermittent
Failures) to meet: (a) the EIRP value for the applicable gateway location, as set forth
in Table 2 of Exhibit B, Satellite Performance Specification; or (b) the G/T value for
the applicable beam, as set forth in Table 3 of Exhibit B, Satellite Performance
Specification. When a Transponder is operating with redundant and/or spare components
and meets the EIRP and G/T values set forth above, it shall not be considered to be
experiencing a Transponder Failure.
	 
	 	1.135	 	“TWTs” has the meaning set forth in Article 38.3.
	 
	 	1.136	 	“UCC” means the Uniform Commercial Code as in effect in the State of New York, as
it may be amended from time to time.
	 
	 	1.137	 	“U.S. Beams” has the meaning set forth in Article 2.1(B).
	 
	 	1.138	 	“Work” means all design, development, construction, manufacturing, labor, and
services, including tests to be performed, and any and all Deliverable Items, including
the Satellite, the DSS, Deliverable Data, Mission Operations Support Services, Launch
Support Services, Training, and equipment, materials, articles, matters, services, and
things to be furnished to Purchaser under this Contract.
	 
	 	1.139	 	“Work-in-Process” means the following goods, services, and rights to be provided
to Purchaser by Contractor under this Contract but in the case of goods only such goods
as have been designated for use under this Contract under Contractor’s internal material
resource planning system and have been installed: (a) the Satellite, (b) the DSS, (c) the
Satellite Components, (d) all other Deliverable Items, including items purchased pursuant
to exercised options set forth herein, (e) all parts, materials, inventories, and
associated warranties, and (f) the rights in Intellectual Property as set forth in
Article 39, and Proprietary Information as set forth in Article 28. The foregoing shall
constitute Work-in-Process as the same shall be in the process of performance,
manufacture, testing, integration, delivery or completion at any given point in time.

			
	 	 	 
	
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ARTICLE 2 — SCOPE OF WORK

	2.1	 	Provision of Services and Materials

	A.	 	General
	 
	 	 	Contractor shall provide Purchaser with the Deliverable Items completed in all
respects in accordance with the provisions of this Contract. Without limiting the
generality of the foregoing, the Contractor shall provide the necessary personnel,
material, services, and facilities to design, manufacture, test and ship the
Satellite, together with all other Deliverable Items referred to in Article 3.1.
Contractor shall furnish and perform the Work in accordance with the provisions of
this Contract, including the following Exhibits, which are attached hereto and made a
part hereof:

	 	2.1.1	 	Exhibit A, Statement of Work, dated January 7, 2008
	 
	 	2.1.2	 	Exhibit B, Satellite Performance Specification, dated January 7,
2008, including all Annexes thereto
	 
	 	2.1.3	 	Exhibit C, Mission Assurance Plan, dated September 22, 2006
	 
	 	2.1.4	 	Exhibit D, Satellite Program Test Plan, dated January 7, 2008
	 
	 	2.1.5	 	Exhibit E, Payment Plan and Termination Liability Schedule, dated
January 7, 2008
	 
	 	2.1.6	 	Exhibit F, Satellite Control Facility Requirements Document, dated
January 7, 2008
	 
	 	2.1.7	 	Exhibit G, Escrow Agreement
	 
	 	2.1.8	 	Exhibit H, Dynamic Satellite Simulator Statement of Work and
Functional Requirements Document dated January 7, 2008
	 
	 	2.1.9	 	Exhibit I, Guaranty Agreement
	 
	 	2.1.10	 	Exhibit J, [***] Escrow Agreement
	 
	 	2.1.11	 	Exhibit K, Default Configuration

 

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	B.	 	Finalization of the Satellite Configuration
	 
	 	 	As of EDC, the Satellite configuration has not been finally defined, but the Parties
agree it will consist of nine (9) Canadian service beams with three 2 GHz fixed
gateway locations (provided that in the event Purchaser and CondoSat Assocaite share
a gateway under section 2.8 of the CondoSat Agreement, then there shall only be two
2 Ghz gateways) (“Canadian Beams”), sixty (60) U.S. service beams with thirteen 2
Ghz fixed gateway locations and three 1.5 Ghz fixed gateway locations (“U.S. Beams”)
(all of the foregoing as set forth in Exhibit K, Default Configuration) plus,
potentially, three (3) additional service beams and one (1) associated gateway
(“Additional Beams”), the location of such Additional Beams to be established as set
forth below. Through February 3, 2008 (the “Configuration Period”), the Parties
will work together to complete an optimal Satellite configuration for Purchaser (the
“Configuration Process”), consisting of the following:

	 	(i)	 	The Parties shall use reasonable best efforts during the
Configuration Period to develop an optimal configuration of the U.S. Beams, the
Canadian Beams and Additional Beams (together, the “Satellite Beams”) for
Purchaser. The objectives in developing the optimal Satellite configuration
for Purchaser shall, among other things, include: (1) calculated [***] (as
calculated using the [***] defined in Article 4.6) equal to or higher than
[***] (not including the Canadian Beams); (2) user beams located in coverage
areas which are, in Purchaser’s reasonable opinion, desirable for its intended
services; (3) gateway locations with reasonable economical access to sufficient
existing fiber backhaul; (4) limited overlap between the user beams; (5)
complete inter-beam coverage for user beams (no “[***] Coverage” as exemplified
in Attachment A hererto, unless otherwise approved by Purchaser); and (6)
optimal number of gateways for Purchaser’s business plan, but not less than the
number of gateways reflected in Exhibit K, Default Configuration (items (1)
through (6) immediately above the “Selection Criteria”). The Parties shall at
a minimum complete the following actions in an effort to develop a final
Satellite configuration for Purchaser:

 

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	 	a.	 	On or before 4, January 2008, Contractor will
submit to Purchaser the antenna performance files, beam laydown
(including coverage map, antenna-beam mapping, and frequencies assigned
to each beam) and gateway location information (“[***]”) defined in Annex
B to Exhibit B, Satellite Performance Specification, separately for; (i)
the Canadian Beams; (ii) the U.S. Beams; and (iii) multiple
configurations of the Additional Beams (consistent with the criteria
below). In the event Contractor proposes a Satellite configuration to
Purchaser that leads to any [***] (“[***] Coverage”), Purchaser will
notify Contractor (and provide Contractor with reasonable guidance on
rectifying such [***] Coverage), and Contractor will adjust the proposed
Satellite configuration in order to [***] as part of the process
described below (even if removing such [***] reduces Satellite [***]).
	 
	 	b.	 	On or before 8 January 2008, Purchaser will provide
Contractor with initial comments and feedback on Contractor’s proposed
configuration for the Satellite Beams (including alternative candidate
locations in the US and/or Mexico for the Additional Beams).
	 
	 	c.	 	On or before 11 January 2008, Purchaser shall
identify up to three (3) alternative Satellite configurations for the
Additional Beams to be considered by Purchaser and Contractor for the
final Satellite configuration.

	 	•	 	The locations to be considered by the Purchaser for location of
the user beams for the Additional Beams are, in order of priority:

	 	°	 	Major metropolitan areas of the
central U.S. not covered by the U.S. Beams, including locations
in Denver, Colorado, Salt Lake City, UT, and Phoenix/Tucson AZ;
	 
	 	°	 	Mexico; and
	 
	 	°	 	overlay on three (3) of the sixty (60) U.S. service beams.

	 	d.	 	On or before 18 January 2008, Contractor shall
provide [***] for two (2) of the three (3) alternative configurations
identified by Purchaser

 

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	 	 	 	for the Additional Beams and within seven (7) days thereafter shall
provide [***] for the final alternative configuration identified by
Purchaser for the Additional Beams as provided above, for assessment of
[***] (using the [***]).

	 	e.	 	On or before 25 January 2008, Purchaser and
Contractor will determine if any further improvements to the proposed
Satellite configurations should be considered, and, provided that
Contractor is reasonably able to provide updated [***] on such
improvements by 31 January 2007, Contractor will update the [***]
accordingly.
	 
	 	f.	 	On 3 February 2008, Purchaser shall select the final
Satellite configuration (“Final Configuration”) from among the above
proposed Satellite configurations (including Exhibit K, Default
Configuration) in accordance with the following principles:

	 	•	 	In the event Purchaser selects a Satellite configuration
consisting of only the U.S. Beams and the Canadian Beams, Purchaser
shall select the Satellite configuration based on the Selection
Criteria and, which in Purchaser’s reasonable judgment optimizes its
business prospects, while also considering in good faith the
configuration that maximizes the calculated [***] (as calculated
using the [***] defined in Article 4.6). In the event that
Purchaser chooses a configuration that does not provide the maximum
calculated [***] as provided above, Purchaser shall provide
Contractor with the rationale therefor, which rationale shall be
consistent with the optimization of Purchaser’s business prospects
and the Selection Criteria. For the purpose of clarification, in
the event that Purchaser reasonably determines that the benefits
associated with the Additional Beams does not exceed the costs
associated with the Additional Beams, Purchaser may elect to reject
the Additional Beams and select the Satellite configuration in
accordance with the terms of this paragraph, and shall provide
Contractor with the rationale therefor.

 

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	 	•	 	In the event Purchaser selects a Satellite configuration
consisting of the U.S. Beams, the Canadian Beams and Additional
Beams, Purchaser shall select the Satellite configuration which, in
its reasonable judgment, optimizes its business prospects, while
also considering in good faith the configuration that maximizes the
calculated [***] (as calculated using the [***] defined in Article
4.6).
	 
	 	•	 	In the case of the Canadian Beams, Purchaser shall elect the
coverage locations which, in its reasonable judgment, optimizes the
Canadian capacity/coverage area.

	 	(ii)	 	In the event, for any reason, Contractor has not provided the
[***] to Purchaser on or prior to the dates set forth above, except for delays
excused due to Force Majeure events or Purchaser-caused delays, then Purchaser
shall be entitled to select the Exhibit K Default Configuration consisting of
only the U.S. Beams and the Canadian Beams (i.e., without the Additional
Beams).
	 
	 	(iii)	 	Contractor acknowledges that, as part of Purchaser’s
finalization of the Satellite configuration, Purchaser will need to offset the
station-keeping box from the 115.0 WL position (between 114.7 and 115.3 WL)
(the “Final Orbit Location”) so that it will not overlap the station-keeping
box of any other satellite in accordance with FCC regulations. No later than
twenty-one (21) days after EDC, Purchaser will provide the Final Orbit
Location. For purposes of clarification, the [***] of the Final Configuration
will be calculated pursuant to Article 4.6 assuming use of the 115.0 WL
position, and the [***] calculated pursuant to Article 22.2.1 assuming use of
the Final Orbit Location.
	 
	 	(iv)	 	Upon Purchaser selection of the Final Configuration: (1) the
[***] of the Final Configuration will be calculated (using the [***]) and the
Firm Fixed Price shall be subject to adjustment, up or down, pursuant to
Article 4.6; and (2) Exhibit B, Satellite Performance Specification, will be updated
accordingly, including the following:

 

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(A) Section 3.3, Coverage Area, will be updated with the resulting
polygon area, gateway locations, and beam locations associated with
the selected configuration;

(B) Table 2 and Table 3, Gateway Locations and User Beam Locations,
will be updated based upon the data files provided during the
Configuration Process for the Final Configuration selected by
Purchaser. The values incorporated into the tables shall be the
values set forth in the data files, taking into account pointing
error consistent with Section 3.6.1 of Exhibit B, Satellite
Performance Specification, minus 0.5 dB; and

(C) Tx and Rx performance (specifically, the EIRP, G/T, and C/I
values specified in Tables 4, 5, 8, 9, 10, 11, 12, 13, 16, and 17)
will be updated based upon the data files provided during the
Configuration Process for the Final Configuration selected by
Purchaser. The [***], which provides distributions on all relevant
parameters, will be used to generate the cumulative distributions on
the metrics set forth in sections 3.6.3, Forward Uplink (from
Gateway), 3.6.4, Forward Downlink (to User), 3.6.5, Return Uplink
(from User), and 3.6.6, Return Downlink (to Gateway).

	2.2	 	Option Satellite 

Contractor hereby grants to Purchaser an option to purchase one (1) additional Substantially
Similar Satellite (including a DSS, updates to Deliverable Data, as required, Launch
Support Services and Mission Operations Support Services) (the “Option Satellite”) at the
optional pricing set forth in the table below (to be established following the process
defined in Article 2.1 above, and to reflect the adjustments necessary to convert from the
Primary Satellite configuration to a sixty (60) U.S. beam only configuration, with such
pricing to be provided no later than March 2, 2008). Delivery for the Option Satellite
shall be no later than the later to occur of: (i) thirty six (36) months after execution of the second contract or Contract amendment identified below;
and (ii) four (4) months after Delivery of the Primary Satellite. Commencing upon

 

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the date of execution of such second contract or Contract amendment, Contractor shall
immediately proceed with all Work necessary to build such Option Satellite.

The option shall remain valid from EDC until two (2) years from EDC (the “Option Satellite
Exercise Period”), provided that Purchaser may require Contractor to extend the validity of
the option and/or change the design and/or specifications of the Option Satellite under a
change order pursuant to Article 16. If Purchaser wishes to exercise such option, it may do
so by providing notice to Contractor at any time prior to the expiration of the Option
Satellite Exercise Period. In such event, the Parties shall document Purchaser’s agreement
to purchase the Option Satellite and Contractor’s agreement to build and deliver such
satellite by entering into either, at Purchaser’s option, an amendment to this Contract or a
second contract that has terms and conditions identical in all relevant material respects to
this Contract except for such differences as are reasonably necessary or appropriate to
indicate that the second contract applies to the Option Satellite. Only upon execution of
such second contract or Contract amendment shall Purchaser be financially obligated to
Contractor with respect to the Option Satellite and shall Contractor be obligated to perform
with respect thereto.

	 	 	 
	 	 	Firm Fixed Price of Option
	Satellite Option Exercised	 	Satellite(i)
	Within EDC + 6 months

	 	TBD
	 
	 	 
	Between EDC + 6 months and EDC + 12
months

	 	TBD
	 
	 	 
	Between EDC + 12 months and EDC + 18
months

	 	TBD
	 
	 	 
	Between EDC + 18 months and EDC + 24
months

	 	TBD

 

			
	 	 	 
	
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	(i)	 	[***]% of the Firm Fixed Price of Option Satellite constitutes the maximum
Orbital Performance Incentives earnable for the Option Satellite. Firm Fixed Price
of Option Satellite includes Deliverable Data, Training, Launch Support Services (as
they may be adjusted pursuant to Article 4.3), Mission Operations Support Services,
and a DSS.

	2.3	 	Replacement Satellite

Contractor hereby grants to Purchaser an option to purchase one (1) replacement satellite
identical to the Primary Satellite provided hereunder (including a DSS, updates to
Deliverable Data, as required, Launch Support Services and Mission Operations Support
Services) (the “Replacement Satellite”). The price for such Replacement Satellite shall be
[***] U.S. dollars ($[***]) as adjusted pursuant to Article 4.6 ([***] percent ([***]%) of
which constitutes the maximum Orbital Performance Incentives Contractor may earn with
respect to the Replacement Satellite) and apportioned as follows: (i) [***] U.S. dollars
(U.S.$ [***] is the portion of the Replacement Satellite price to be paid by Purchaser
hereunder; and [***] U.S. dollars (U.S.$[***]) is the portion of the Replacement Satellite
to be paid by [***]. Delivery for the Replacement Satellite shall be no later than the
later to occur of: (i) thirty-four (34) months after execution of the second contract or
Contract amendment identified below and (ii) four (4) months after Delivery of the
Satellite). Commencing upon the date of execution of such second contract or Contract
amendment, Contractor shall immediately proceed with all Work necessary to build such
Replacement Satellite. The option shall remain valid until one (1) year from Delivery of
the Satellite (the “Replacement Satellite Exercise Period”), provided that Purchaser may
require Contractor to extend the validity of the option and/or change the design and/or
specifications of the Replacement Satellite under a change order pursuant to Article 16. If
Purchaser wishes to exercise such option, it may do so by providing notice to Contractor at
any time prior to the expiration of the Replacement Satellite Exercise Period. In such
event, the Parties shall document Purchaser’s agreement to purchase the Replacement
Satellite and Contractor’s agreement to build and deliver such satellite by entering into
either, at Purchaser’s option, an amendment to this Contract or a second contract that has
terms and conditions identical in all relevant material respects to this Contract except for
such differences as are reasonably necessary or appropriate to indicate that the second
contract applies to the Replacement Satellite. Only upon execution of such second contract
or Contract amendment shall Purchaser be financially obligated to Contractor

 

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with respect to the Replacement Satellite and shall Contractor be obligated to perform with
respect thereto.

	2.4	 	SCF Equipment

Contractor hereby grants to Purchaser an option to purchase the SCF Equipment (including the
Spares) listed in Exhibit F, Satellite Control Facility Requirement Specification. The
Parties acknowledge that, as of EDC, the Parties are updating Exhibit F, Satellite Control
Facility Requirements Document, to be consistent with SCF requirements agreed-to between the
Parties, and which updates are within the agreed scope of Work hereunder so as not to
constitute a change hereunder; the Parties will continue to work in good faith to complete
the revisions to Exhibit F, Satellite Control Facility Requirements Document no later than
EDC plus thirty (30) days. The price for such SCF Equipment shall be [***] U.S. dollars
($[***]). This option shall remain valid until 6 months from EDC (the “SCF Equipment
Exercise Period”), provided that Purchaser may require Contractor to extend the validity of
the option and/or change the design and/or specifications of the SCF Equipment under a
change order pursuant to Article 16. If Purchaser wishes to exercise such option, it may do
so by providing notice to Contractor at any time prior to the expiration of the SCF
Equipment Exercise Period. Delivery for the SCF Equipment shall be no later than August 1,
2010. Payment for the SCF Equipment shall be due upon Acceptance of the SCF Equipment.

	2.5.	 	Cooperation with Launch Agency

Contractor shall provide all reasonably necessary assistance to, and shall fully communicate
and cooperate with, the Launch Agency so as to ensure successful, on-time completion of the
Work and integration of the Satellite with the Launch Vehicle in accordance with the terms
of this Contract and the Launch Services Agreement. Purchaser shall provide all reasonably
necessary assistance to Contractor so as to ensure Contractor and any affected
Subcontractors have the necessary access and information from the Launch Agency to perform
as specified. All communications of Contractor and its Subcontractors with the Launch
Agency are subject to any required export authorizations.

 

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	2.6	 	Relationship to Loral Space Payload Contract

Except as to certain rights related to refunds, termination, access and title transfer
associated with the Loral Space Payload that are set forth in the Loral Space Payload
Contract, Purchaser shall have the exclusive rights (including all exclusive rights of
exercise) associated with the Satellite and other Deliverable Items to be provided
hereunder. CondoSat Associate shall have no right or authority to give Contractor direction
as to the Satellite, including as to the Loral Space Payload, and the Loral Space Payload
Contract shall reflect that CondoSat Associate agrees to, and shall be bound by, all acts
and decisions of the Purchaser under this Contract as regards the Satellite, including the
Loral Space Payload. Purchaser agrees that any action related to the Satellite, including
the Loral Space Payload portion thereof, other than as regards payment and refunds, shall be
the responsibility of Purchaser and Purchaser shall act on behalf of Purchaser and CondoSat
Associate, with no direct right of action or enforcement against Contractor by CondoSat
Associate. Purchaser retains all rights associated with Deliverable Items 2 through 6 set
forth in Article 3.1, except that CondoSat Associate shall be entitled to copies of the
Deliverable Data for information purposes only, and subject to restrictions on use and
disclosure substantially similar to those contained herein. Contractor agrees to place the
Loral Space Payload Contract on terms reflecting the foregoing.

			
	 	 	 
	
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ARTICLE 3 — DELIVERABLE ITEMS AND DELIVERY SCHEDULE

	 	3.1	 	Deliverable Items

Subject to the other terms and conditions of this Contract, the items to be delivered under
this Contract are specified below (each a “Deliverable Item”). Contractor shall deliver
such Items on or before the corresponding Delivery dates and at locations specified as
follows:

	 	 	 	 	 	 	 
	Item	 	Description	 	Delivery Date	 	Delivery Location
	1.

	 	Satellite
	 	Delivery to the

Launch Site on EDC

+ 36 months
	 	Per Article 3.2
	 
	 	 	 	 	 	 
	2.

	 	Deliverable Data
	 	Per SOW, Exhibit A
	 	Per SOW, Exhibit A
	 
	 	 	 	 	 	 
	3.

	 	Training
	 	Per SOW, Exhibit A
	 	Per SOW, Exhibit A
	 
	 	 	 	 	 	 
	4.

	 	Launch Support Services
	 	Per SOW, Exhibit A
	 	Per SOW, Exhibit A
	 
	 	 	 	 	 	 
	5.

	 	Mission Operations

Support Services
	 	Per SOW, Exhibit A
	 	Per SOW, Exhibit A
	 
	 	 	 	 	 	 
	6.

	 	DSS
	 	Per Exhibit H
	 	Purchaser’s SCF

	 	3.2	 	Delivery

Delivery of each Deliverable Item shall occur upon arrival of such Deliverable Item at the
location required by this Article 3, after having successfully completed any required
reviews and testing. In the case of the Satellite, Delivery shall occur upon delivery of
the Satellite to the Launch Site or upon placement in Ground Storage.

	 	3.3	 	Selection of Launch Vehicle

Purchaser shall be responsible for providing the Launch Services for Launch of the
Satellite(s). Contractor shall provide, at no additional cost to Purchaser, engineering,
Launch Vehicle integration activities, and other customary services to maintain
compatibility of the Satellite for Launch (including but not limited to environmental
analysis, mission planning, and Launch Vehicle electrical and mechanical interfaces)
(collectively, “Integration Activities”) with the list of candidate Launch Vehicles set
forth in Paragraph 2.4 of Exhibit B, Satellite Performance Specification (the “Candidate
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Vehicles”) up to eighteen (18) months prior to the scheduled Delivery date of the Satellite
set forth in Article 3.1. On or before eighteen (18) months prior to the then-currently
scheduled Delivery date of the Satellite set forth in Article 3.1, Purchaser shall provide a
written notification to Contractor of two (2) Launch Vehicles that may be used for such
Satellite. Provided that Purchaser has entered into the necessary agreements with the
potential Launch Agencies to reasonably support Contractor’s Integration Activities,
Contractor shall perform dual Integration Activities up through twelve (12) months prior to
the start of SPSR, at which time Purchaser shall designate its final Launch Vehicle
selection. Failure to notify Contractor of its Launch Vehicle selection(s) by the date(s)
set forth in this Paragraph shall be a Purchaser delay of Work subject to Article 18, and
any change to the Launch Vehicle selection thereafter shall be subject to Article 16.

	3.4	 	Avoidance and Mitigation of Delays

Contractor shall notify Purchaser promptly by telephone and confirm in writing any event,
circumstance or development that will likely result in a material non-conformance of the
Work or any part thereof with the requirements of this Contract or the Delivery dates
established therefor. Contractor shall use Reasonable Efforts to avoid and/or mitigate the
effect of such event, circumstance, or development. Within ten (10) Business Days of any
notification hereunder, Contractor shall provide written notice to Purchaser of any affected
Work, as well as a proposed work-around. The work-around plan shall: (a) set forth
Contractor’s Reasonable Efforts to mitigate the effect of any such event, circumstance, or
development and include a schedule for such mitigation; and (b) contain sufficient detail
for Purchaser to be able to evaluate such plan. If appropriate, such work-around plan shall
use work-around schedules, payment of expedited fees, twenty four (24) hour operations, and
the use of alternate Subcontractors (to be approved by Purchaser if required under this
Contract).

	3.5.	 	Packing and Shipping

Packing and shipping shall be in accordance with all applicable laws, rules, and
regulations, and standard commercial practices in the aerospace industry.

			
	 	 	 
	
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ARTICLE 4 — PRICE

	 	4.1	 	Firm Fixed Price

The total price to be paid by Purchaser and CondoSat Associate to Contractor for the Work,
including but not limited to Deliverable Items 1 through 6 set forth in Article 3.1 hereof,
as detailed in Exhibit A, Statement of Work, shall be a total firm fixed price of two
hundred and forty-six million U.S. dollars (U.S. $246,000,000) (the “Total Combined Price”)
which is apportioned as follows: (i) two hundred and nine million, one hundred thousand
U.S. dollars (U.S.$209,100,000) is the portion of the Total Combined Price to be paid by
Purchaser hereunder (the “Firm Fixed Price”); and thirty-six million, nine hundred thousand
U.S. dollars (U.S.$36,900,000) is the portion of the Total Combined Price for which CondoSat
Associate is responsible pursuant to the Loral Space Payload Contract (the “CondoSat
Associate Portion”). Both the Total Combined Price and the Firm Fixed Price are subject to
the [***] adjustment set forth in Article 4.6, below (however, the price of the Loral Space
Payload Contract is not subject to adjustment pursuant to Article 4.6 below). Purchaser
does not guarantee payment of the CondoSat Associate Portion, and Contractor agrees to look
solely and exclusively to CondoSat Associate for payment of the CondoSat Associate Portion.
Failure of CondoSat Associate to make any payment of the CondoSat Associate Portion when due
shall not be considered a breach or default of this Contract and Contractor shall
nonetheless remain obligated to perform its obligations and duties under this Contract.
Contractor acknowledges and agrees that Purchaser shall have no liability to Contractor
whatsoever in the event that CondoSat Associate fails to make timely payment of the CondoSat
Associate Portion, and that Contractor shall have no recourse whatsoever against Purchaser
in such case.

Except as otherwise expressly provided in Articles 2.2 and 2.3 (only if Purchaser elects to
effectuate its purchase of the Option Satellite or the Replacement Satellite by means of an
amendment to this Contract rather than by means of another contract), and Articles 2.4, 4.2,
4.3, 4.6, 6.2, 6.3, 6.5, 12.1(B), 15.4, 16, 18, 35, and any options set forth in this
Contract, the Firm Fixed Price is not subject to any escalation or to any adjustment or
revision. The price for those items subject to an option under this Contract, if any, are
described in the particular Articles that set forth such options.

 

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The itemization of the Firm Fixed Price is as follows:

	 	 	 	 	 
	Item	 	Description	 	Amount
	1.

	 	Satellite (excludes the Loral
Space Payload price and Orbital
Performance Incentives)
	 	[***] percent ([***]%) of the
Firm Fixed Price (as of EDC,
this amount is U.S. $ [***])
	 
	1(a).

	 	Maximum Orbital Performance

Incentives
	 	[***] percent ([***]%) of the
Firm Fixed Price (as of EDC,
this amount is U.S. $[***])
	 
	2.

	 	Deliverable Data
	 	NSP
	 
	3.

	 	Training
	 	NSP
	 
	4.

	 	Launch Support Services
	 	NSP(i)
	 
	5.

	 	Mission Operations Support Services
	 	NSP
	 
	7.

	 	DSS
	 	NSP
	 
	 	 	 	 
	 

	 	Total Firm Fixed Price
	 	U.S. $209,100,000 (ii)

(i) The price for the Launch Support Services shall be modified by the amount set
forth for such services in Article 4.3, based upon Purchaser’s selection of Launch
Vehicle for the Launch of the Satellite.

(ii) Not including the price for any incremental Launch Support Services per Article
4.3, or long-term Ground Storage per Article 35. Firm Fixed Price includes SPT
thrusters, but does not include the Caribou command link (TT&C) encryption or
Ferrite switches. Purchaser may elect to include the Caribou command link (TT&C)
encryption at the price of $[***], so long as Purchaser provides written notice of
its election no later than February 3, 2008, and Purchaser may also elect to include
Ferrite switches at the price of $[***], so long as Purchaser provides written
notice of its election no later than February 3, 2008. If Purchaser elects to
include the Caribou command link (TT&C), then all unpaid Milestone payments
associated with the Satellite shall automatically be increased by a pro rata amount
such that the applicable increase is applied across all remaining, unpaid Milestone
payments on the Satellite.

 

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	4.2	 	Discount for Purchase of a Eutelsat Satellite

In the event Eutelsat or any of its Affiliates (Eutelsat and its Affiliates shall
collectively be referred to as “Eutelsat”) (or a joint venture consisting of Purchaser and
Eutelsat) enters into a contract with Contractor for the purchase of a Ka-band spot beam
satellite on or before 1 March 2008, (“Eutelsat Satellite”), the Firm Fixed Price for the
Primary Satellite set forth above shall be reduced by [***] U.S. dollars (USD$[***]). If
Purchaser is entitled to such reduction, then all unpaid Milestone payments associated with
the Satellite shall automatically be reduced by a pro rata amount such that the applicable
discount is applied across all remaining, unpaid Milestone payments on the Satellite.

	4.3	 	Launch Support Services 

Upon Purchaser’s selection of the Launch Vehicle for the Launch of the Satellite as provided
in Article 3.3 above, the Firm Fixed Price of the Contract shall be increased or decreased
in the following applicable amount to reflect the Launch Support Services associated with
the selected Launch Vehicle. Such increase or decrease shall be applied on a pro-rata basis
to those Milestone payments specified in Exhibit E, Payment Plan and Termination Liability
Schedule remaining to be paid as of the date of Purchaser’s selection.

 

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	 	 	Adjustment to Firm Fixed
	Selected Launch Vehicle	 	Price
	Atlas

	 	(U.S. $[***]([***])
	 
	 	 
	Proton

	 	U.S. $[***]([***])
	 
	 	 
	Sea Launch

	 	(U.S. $[***]) ([***])
	 
	 	 
	Ariane

	 	U.S. $[***]([***])

	4.4	 	Fees and Other Expenses

The Firm Fixed Price stated above includes all fees, charges, expenses, costs, and other
amounts payable by Purchaser for any portion of the Work, including but not limited to the
design, manufacturing, tests, the Satellite, the DSS, Deliverable Data, Training, Orbital
Performance Incentives, Mission Operations Support Services, Launch Support Services, risk
management services as required by Article 32, packing and transport of the Satellite to the
Launch Site, transit insurance and such other insurance as is required by Article 32, but
does not include such amounts payable for Launch Services, or the Launch and In-Orbit
Insurance Policy (the responsibility for which shall reside exclusively with Purchaser).
Under no circumstances will Purchaser be obligated to pay any fees, charges, expenses, costs
or other amounts in connection with any portion of the Work other than the amounts set forth
in this Paragraph, as adjusted in accordance with those Articles set forth in Article 4.1.

 

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	4.5	 	Taxes 

The Firm Fixed Price includes, and Contractor shall remit when due, all applicable federal,
state, local and foreign taxes duties, assessments, and similar liabilities (including
interest, fines, penalties, or additions attributable to, or imposed on, or with respect to,
any such taxes, duties and similar liabilities) imposed by any federal, state, local, or
foreign government in connection with the Work, including those related to the export or
import of any Satellite from or into any jurisdiction for Launch, all imposts, and all
sales, use, excise, value added, import and export taxes levied in connection with
Contractor’s performance of the Work, wherever the Work is being carried out under this
Contract.

	4.6	 	[***] Adjustment

Promptly upon finalization of the Satellite configuration pursuant to Article 2.1(B),
Purchaser shall calculate, and Contractor shall have the opportunity to verify (pursuant to
the licenses and limitations set forth in Article 22.2), the [***] of the U.S. Beams and the
Additional Beams, if any, (but not including the Canadian Beams) (and the resulting
calculated [***] shall be the “[***]”) using the version of Purchaser’s proprietary software
program in existence as of EDC (operating in the mode that [***]) (the “[***]”); provided,
however, that in the event that Purchaser elects to include Mexico coverage for any of the
Additional Beams in the Final Configuration, then [***] contributed by such beam(s) will be
considered in determining the [***], unless all necessary landing rights and any other
rights necessary for Purchaser to offer its intended service in Mexico have been obtained.
Contractor acknowledges that the Satellite Final Configuration [***] for the U.S. Beams and
the Additional Beams will be measured assuming the use of the [***] frequencies and such
[***] calculation shall not assume the use of the [***] frequencies. Based on that
calculation, the [***] as follows (with such amounts to be pro-rated): [***]
For example, if the [***]. By way of further example, if the [***]. All Milestones shall
be updated on a pro-rata basis to account for [***].

 

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ARTICLE 5 — PAYMENTS

	 	5.1	 	Payment Plan

Payments by Purchaser to Contractor of the Firm Fixed Price set forth in Article 4 and of
the amounts for options, if any, exercised by Purchaser pursuant to this Contract shall be
in accordance with Exhibit E, Payment Plan and Termination Liability Schedule, as applicable
thereto.

	 	5.2	 	Payment Conditions

	 	5.2.1	 	Time Payments. The “Effective Date of Contract” time payment due from
Purchaser shall be paid no later than the due date specified in Exhibit E, Payment Plan
and Termination Liability Schedule. Contractor shall submit to Purchaser an invoice in
accordance with the requirements of this Contract with respect to such payment prior to
such payment being due.
	 
	 	5.2.2	 	Milestone Payments. Each Milestone payment specified in Exhibit E,
Payment Plan and Termination Liability Schedule shall in each case become payable upon
Contractor’s completion of each Milestone in accordance with the Contract and
satisfaction of the Conditions for Milestone Completion and Payment set forth in
Exhibit E, after which Contractor shall submit an invoice for payment, provided
however, that Contractor shall not invoice any amount which when cumulated with other
Milestone payments previously made hereunder, exceeds the cumulative Milestone payment
amounts due as of such date as reflected in such Exhibit E. A Milestone shall not be
deemed completed until all Work relevant to the Milestone has been completed and
documented in accordance with Exhibit A, Statement of Work and/or Exhibit E, Payment
Plan and Termination Liability Schedule, as applicable.
	 
	 	 	 	Purchaser shall only be responsible for paying those amounts set forth in the “Firm
Fixed Price (paid by ViaSat)” column of Exhibit E, Payment Plan and Termination
Liability Schedule. All payments due from Purchaser upon the completion of a
Milestone described in Exhibit E, Payment Plan and Termination Liability Schedule,
shall be paid no later than thirty (30) days after the receipt by Purchaser of an
invoice and certification in the form attached hereto as Attachment A that the
Milestone has been completed in accordance with the

			
	 	 	 
	
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	 	 	 	requirements of this Contract, together with the necessary or appropriate supporting
data and documentation as required hereunder, if any, or as Purchaser may reasonably
request within ten (10) Business Days of receipt of invoice. Notwithstanding the
foregoing, and without prejudice to Purchaser’s rights under Article 5.6, Purchaser,
in its sole discretion, may agree to make a partial payment to Contractor for
partial completion of a Milestone or for completion of a Milestone prior to the
applicable Milestone Date.
	 
	 	 	 	Purchaser shall pay in full all undisputed amounts payable hereunder within thirty
(30) days after receipt of an invoice therefor completed in accordance with this
Article 5.2.

	 	5.2.3	 	Orbital Performance Incentives. The Orbital Performance Incentives
payments due from Purchaser pursuant to Article 13 shall be due and payable no later
than thirty (30) days after receipt of an invoice completed in accordance with Article
5.4.
	 
	 	5.2.4	 	Non-Warranty and Other Payments. Subject to Article 5.6, and without
prejudice to Purchaser’s audit rights set forth in Article 5.8, below, all amounts
payable to Contractor with respect to non-warranty work performed pursuant to Article
15.4 or for any other payments to be made pursuant to this Contract and not otherwise
subject to Article 5.2.1 through 5.2.3 above shall be paid no later than thirty (30)
days after receipt of Contractor’s invoice completed in accordance with Article 5
therefor.

	 	5.3	 	Late Payment

	 	5.3.1	 	Interest. Except in the case of a payment disputed pursuant to
Article 5.6, below, in the event that any payment due under this Contract is not made
when due hereunder, without prejudice to the other rights and remedies of the Party
entitled to such payment, such Party shall also be entitled to interest at the rate of
[***] percent ([***]%) per annum, compounded monthly, on the unpaid balance thereof
from ten (10) days after the date that the non-paying Party receives written notice to
cure a delinquent payment until such payment is made.

 

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	 	5.4	 	Invoices

Invoices required to be delivered by Contractor hereunder shall be submitted by facsimile
and air mail to Purchaser (original plus one (1) copy) at the following address:

	 	 	 	 	 	 	 
	 

	 	 	 	ViaSat, Inc.	 	 
	 	 	 	 	 
	 

	 	Attn.:
	 	David Abrahamian	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	6155 El Camino Real	 	 
	 

	 	 	 	Carlsbad, California 92009	 	 
	 

	 	 	 	 	 	 
	 

	 	Fax:
	 	760-795-1045	 	 
	 

	 	 	 	 	 	 

or to such other address as Purchaser may specify in writing to Contractor.

	 	5.5	 	Payment Bank

All payments made to Contractor hereunder shall be in U.S. currency and shall be made by
electronic funds transfer to the following account:

SPACE SYSTEMS/LORAL, INC.

ACCOUNT NO. [***]

or such other account or accounts as Contractor may specify in writing to Purchaser.

	 	5.6	 	Disputed Amounts

If the event covered by a Milestone payment has not been completed in accordance with the
requirements of this Contract, Purchaser shall so notify Contractor in writing within
fifteen (15) days of receipt of the applicable invoice and may withhold some or all of the
applicable payment in good faith. Such notification shall state in reasonable detail the
Contract requirements associated with the applicable Milestone event that have not been met.
Upon correction of the noted discrepancy(ies) and completion of the Milestone in accordance
with Contract requirements, the Milestone invoice shall be reinstated for payment. Failure
to pay any amount subject to a reasonable good faith dispute shall not constitute a material
breach under this Contract until resolved by the Parties. 

	 	5.7	 	Right of Offset

In the event that one Party has not paid the second Party any amount that is due and payable
to the second Party under this Contract, without prejudice to other rights and

 

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remedies, such second Party shall have the right to set off such amount against any
payment(s) due and payable or to become due and payable to the first Party under this
Contract, provided, however, any amount being disputed under Article 5.6 hereof shall not be
considered due and payable until the dispute is finally resolved.

In addition, Purchaser shall be entitled to offset against Milestone payments due to
Contractor under this Contract, all undisputed amounts due from CondoSat Associate to
Purchaser pursuant to the CondoSat Agreement for (1) Launch Services and (2) the Initial
Insurance (as defined in the CondoSat Agreement), but only to the extent such amounts remain
unpaid and in default after expiration of all time periods allowed for payment thereunder,
including time periods to cure such default. As a condition to exercising any rights of
offset under this provision, Purchaser shall assign to Contractor, including by way of
subrogation, its rights against CondoSat Associate to such payments and all associated
remedies.

	5.8	 	Audit Rights and Procedures

Contractor shall keep complete, true and accurate books of account and records pursuant to
its standard accounting system for the purpose of showing the derivation of all Actual Costs
where any payments to be made by Purchaser are based on Actual Costs. Contractor will keep
such books and records at Contractor’s principal place of business for at least five (5)
years following the end of the calendar quarter to which they pertain and make them
available at all reasonable times for audit by an independent auditor reasonably acceptable
to Purchaser and Contractor. Purchaser may direct an audit of any Actual Costs claimed by
Contractor pursuant to this Contract to be performed by an industry recogized independent
certified public accounting firm reasonably acceptable to Contractor. Any such audits will
be at the expense of Purchaser unless the audit shows that Contractor has overcharged
amounts due hereunder during the audited period by more than five percent (5%). In such
case, the expense of the audit will be paid by Contractor. Contractor will promptly pay
Purchaser the full amount of any overpayment, together with interest at the annual rate of
[***] percent ([***]%), compounded monthly, from the date such payment was to have been
made. The independent auditor will be directed to report reasons for its findings, and the
independent auditor’s findings will be binding upon Purchaser and Contractor, provided

 

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that Contractor shall have the right to redact any detailed rate information from any report
or finding provided by the independent auditor to Purchaser.

ARTICLE 6 — PURCHASER-FURNISHED ITEMS

	 	6.1	 	Purchaser-Furnished Support

To enable Contractor to perform Launch Support and Mission Operations Support Services,
Purchaser shall be responsible for timely making available to Contractor the
Purchaser-furnished equipment, facilities and services described in Paragraph 2.6 of Exhibit
A, Statement of Work. Such equipment, facilities and services shall be in good working
condition and adequate for the required purposes and, for the Launch of the Satellite
hereunder, shall be made available free of charge for Contractor’s use during the period
commencing on the date established therefore at the technical interchange meetings described
in Paragraph 2.6.1 of Exhibit A, Statement of Work and continuing through the IOT Complete
Date for the Satellite. Purchaser and Contractor will conduct an interface meeting on the
date established therefor at the technical interchange meeting described in Paragraph 2.6.1
of Exhibit A, Statement of Work to confirm the availability and adequacy of such
Purchaser-furnished equipment, facilities and services.

	 	6.2	 	Communications Authorizations

Purchaser shall be responsible, at its cost and expense, for preparing, coordinating and
filing all applications, registrations, reports, licenses, permits and authorizations with
the FCC if required to do so and with any other national governmental agencies having
jurisdiction over Purchaser, for the construction, Launch and operation of the Satellite.
Contractor shall, at no additional cost to Purchaser, provide all cooperation reasonably
necessary in support of Purchaser’s preparation, coordination and filing of such
applications, registrations, reports, licenses, permits and authorizations, and upon
Purchaser’s request, Contractor shall actively provide reasonable support to Purchaser’s
efforts to obtain any licenses, permits, and aurthorizations required by any cognizant
regulatory agency. Nothing in this Article 6.2 shall be used to interpret or prejudice any
of the rights under the CondoSat Agreement.

			
	 	 	 
	
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	 	6.3	 	Radio Frequency Coordination

Purchaser shall be responsible for the timely preparation and submission of all filings
required by the International Telecommunication Union (or any successor agency thereto) and
all relevant domestic communications regulatory authorities regarding radio frequency and
orbital position coordination. Such filings shall be made in accordance with the Radio
Regulations of the International Telecommunication Union (or any successor agency) and the
laws and regulations of all domestic communications regulatory authorities having
jurisdiction over Purchaser. Contractor shall, at no additional cost to Purchaser provide
all cooperation reasonably necessary in support of Purchaser’s efforts in the preparation
and submission of such filings, and upon Purchaser’s request, Contractor shall actively
provide reasonable support to Purchaser’s efforts to obtain any licenses, permits, and
aurthorizations required by any cognizant regulatory agency. Nothing in this Article 6.3
shall be used to interpret or prejudice any of the rights under the CondoSat Agreement.

	 	6.4	 	 Satellite Performance Data

Commencing with the first full calendar month following the IOT Complete Date, Purchaser
shall provide a report to Contractor describing the general health and operating status of
the Satellite. Such report shall be provided to Contractor on a monthly basis thereafter,
delivered to Contractor promptly after the end of each month during the Satellite Stated
Life. In the event of a Satellite Anomaly that occurs during the Satellite Stated Life,
Purchaser shall timely provide Contractor with or give Contractor access to any of
Purchaser’s data Contractor may reasonably require to investigate and correct (per Article
15.3 hereof) such Satellite Anomaly and/or support Purchaser in making and perfecting claims
for insurance recovery relating to such Satellite Anomaly as set forth in Article 32.

	 	6.5	 	Late Delivery of Purchaser-Furnished Items or Services

Exhibit A, Statement of Work, paragraph 2.6 sets forth a complete listing of all
Purchaser-furnished items or services and the delivery date for such items and services.
The late delivery of Purchaser-furnished items or services, individually or combined, shall
be considered an event beyond the reasonable control of Contractor, and Contractor shall be
entitled to adjustments in the Firm Fixed Price and schedule and other materially affected
terms of the Contract, in accordance with Article 18, provided

			
	 	 	 
	
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that: (a) such late delivery of Purchaser-furnished items or services was substantially due
to no fault of Contractor; (b) Contractor promptly notifies Purchaser in writing of any
applicable late delivery of Purchaser-furnished items or services and the expected impacts
therefor; and (c) Contractor uses Reasonable Efforts to avoid and/or mitigate the effect of
the late delivery of Purchaser-furnished items or services.

			
	 	 	 
	
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ARTICLE 7 — COMPLIANCE WITH LAWS AND DIRECTIVES

	 	7.1	 	General

Each Party shall, at its expense, perform its obligations hereunder in accordance with all
applicable laws, regulations, and policies of the any federal, state, local, or foreign
government and the conditions of all applicable federal, state, local, or foreign government
approvals, permits, or licenses.

	 	7.2	 	Compliance with U.S. Export Control Laws

Any obligation of a Party hereunder to provide hardware, software, Deliverable Data, other
technical information, technical services, Training, or any access to facilities of the
other Party and its personnel and/or its representatives shall be subject to applicable U.S.
Government export control and security laws, regulations, policies and license conditions.
The Parties shall work cooperatively and in good faith to implement this Contract in
compliance with such laws, regulations, policies and license conditions. If and to the
extent required by U.S. law, the Parties and their personnel and/or representatives shall
enter into U.S. Government-approved agreement(s), including a Technical Assistance
Agreement(s), separate from this Contract, governing the provision of hardware, software,
Deliverable Data, other technical information, technical services, Training, or access to
facilities in connection with this Contract.

	 	7.3	 	Licenses and Other Approvals

Contractor shall use Reasonable Efforts to obtain and shall maintain all applicable
approvals, permits, and licenses as may be required by any government, foreign or domestic,
for the performance of the Work, including but not limited to all authorizations required
for the import or export of any Deliverable Item, or any part thereof, as well as any
agreements and other approvals of the U.S. Government that are required for Purchaser and
“foreign person” personnel and/or representatives of Purchaser (including, but not limited
to, Eutelsat, foreign subsidiaries and related entities of Purchaser involved with the
procurement) as well as Purchaser’s insurance providers, to have access to Contractor
facilities, hardware, software, Deliverable Data, Training, other technical information or
technical services in connection with the performance of this Contract. In addition,
Contractor shall provide reasonable support to Purchaser in obtaining any necessary
approvals, permits, and licenses for the performance of Purchaser’s obligations hereunder.
A “foreign person” shall be as defined in the U.S.

			
	 	 	 
	
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International Traffic in Arms Regulations, 22 C.F.R. §120.16. As early as practicable, and
in no event later than ninety (90) days after EDC, Purchaser shall provide Contractor with a
list of countries (if other than the U.S.) of which “foreign person” personnel and/or
representatives of Purchaser (including, but not limited to foreign subsidiaries and related
entities of Purchaser involved with the procurement) as well as Purchaser’s insurance
providers, if such personnel, representatives, insurance providers will or may have access
to U.S. export-controlled items or services under this Contract. Purchaser shall provide
such reasonable cooperation and support as necessary for Contractor to apply for and
maintain such required U.S. export licenses, agreements and other approvals, and shall
promptly notify Contractor of any occurrence or change in circumstances of which it becomes
aware that is relevant to or affects such export licenses, agreements and approvals.
Contractor shall review with Purchaser any application Contractor makes to any government
department, agency or entity for any permit, license, agreement or approval that will be
signed by Purchaser as may be required for performance of the Work, prior to submission of
such application. Contractor shall provide Purchaser a minimum of five (5) Business Days to
review such application prior to submission to such governmental entity, and Contractor
shall in good faith consider any comments and proposed revisions made by Purchaser for
incorporation into such application. At Purchaser’s request, Contractor shall include
Purchaser (and related entities involved with the procurement) as a named party in any
application for approval of such U.S. export licenses, agreements and other approvals so as
to permit Purchaser to be present during any discussion with or meetings where Purchaser’s
foreign subsidiaries/related entities, or insurance providers, may receive from, or discuss,
with Contractor any U.S. export-controlled items and/or services. Contractor shall provide
the parties to such U.S. export licenses and agreements copies of the export licenses and
agreements, including any U.S. Government provisos related to same

NOTWITHSTANDING ANY PROVISION IN THIS CONTRACT, IN NO EVENT SHALL EITHER PARTY BE OBLIGATED
UNDER THIS CONTRACT TO PROVIDE ACCESS TO THE OTHER PARTY’S FACILITIES OR SUBCONTRACTOR
FACILITIES, PROVIDE ACCESS TO OR FURNISH HARDWARE, SOFTWARE, DELIVERABLE DATA OR OTHER
TECHNICAL INFORMATION, OR PROVIDE TECHNICAL/DEFENSE SERVICES OR TRAINING, TO ANY PERSON
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APPLICABLE U.S. EXPORT CONTROL LAWS, REGULATIONS, POLICIES AND LICENSE CONDITIONS.

	 	7.4	 	No Unauthorized Exports or Retransfers

NEITHER PARTY SHALL RE-EXPORT OR RE-TRANSFER TO ANY THIRD PARTY ANY HARDWARE, SOFTWARE,
DELIVERABLE DATA, OTHER TECHNICAL INFORMATION, TECHNICAL SERVICES, OR OTHER ITEMS FURNISHED
HEREUNDER, EXCEPT AS EXPRESSLY AUTHORIZED BY THE U.S. GOVERNMENT IN ACCORDANCE WITH THE
EXPORT LICENSES, AGREEMENTS AND OTHER APPROVALS REFERENCED IN THIS ARTICLE 7 OR AS OTHERWISE
EXPRESSLY AUTHORIZED UNDER U.S. EXPORT CONTROL LAWS.

			
	 	 	 
	
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ARTICLE 8 — ACCESS TO WORK-IN-PROGRESS

	 	8.1	 	Work in Progress at Contractor’s or Major Subcontractor’s Facility
	 
	 	 	 	Subject to Article 7, compliance with Contractor’s normal and customary safety and security
regulations and practices (or, if applicable, those of a Major Subcontractor), which shall
be provided in writing to Purchaser upon Purchaser’s request prior to any facility visit,
and the protection of third party proprietary information, Purchaser personnel (such term to
include Eutelsat and Purchaser’s duly appointed consultants and agents) shall be allowed
access to all Work being performed at Contractor’s or any Major Subcontractor’s facility for
the Satellite and other Deliverable Items, for the purpose of observing the progress of such
Work; provided, however, access by Purchaser personnel to any Major Subcontractor facility
shall require such Major Subcontractor’s prior written consent, which Contractor shall
employ Reasonable Efforts to obtain, and Contractor shall be entitled to accompany any
Purchaser personnel to the facility. Such access shall be upon reasonable prior written
notice to Contractor and shall occur during normal working hours or at such other hours as
Contractor may agree. Subject to Article 7, compliance with Contractor’s normal and
customary safety and security regulations and practices (or, if applicable, those of a Major
Subcontractor), which shall be provided in writing to Purchaser upon Purchaser’s request
prior to any facility visit, and the protection of third party proprietary information,
Purchaser personnel will have reasonable access for evaluation, inspection, and use in
connection with the planned operation of the Satellite to (i) Deliverable Data; (ii)
work-in-progress and technical and schedule data and documentation relevant to the Work;
(iii) drawings, circuit diagrams/schematics, specifications, standards or process
descriptions applicable to the Work; and (iv) data and documentation provided to Contractor
by its Subcontractors applicable to the Work. Contractor shall provide Purchaser access
to a program web site (from which Purchaser will be permitted to download, print, and save
documents) to serve as a repository for such information and Contractor shall provide a
typical site map or index to the contents of that web site. All Purchaser personnel (and
Purchaser’s duly appointed consultants and agents) who are “U.S. persons” under the ITAR and
otherwise meet the requirements for access set forth in this Article shall be provided
non-escort badges to agreed work areas while the Work is being performed, though such access
may be restricted to relevant buildings and areas where the subject Work in Progress
resides. Contractor will use Reasonable Efforts to obtain similar access to

			
	 	 	 
	
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	 	 	 	Work that is being performed at the facilities of Contractor’s Major Subcontractors subject
to the conditions set forth in the first sentence of this Paragraph. For the avoidance of
doubt, any communications between Purchaser personnel and any foreign Subcontractor shall be
conducted through Contractor.
	 
	 	8.2	 	Electronically-Generated Information
	 
	 	 	 	With regard to electronically generated information, Contractor will provide Purchaser with
an electronic copy thereof and/or electronic access (via the internet or Purchaser e-mail)
to information regarding program performance and documentation that will advise Purchaser,
on a current basis, of program specific issues, decisions and problems. Contractor shall
establish data links between its and Purchaser’s facilities such that Purchaser has remote
electronic access to those project-related documents identified in Exhibit A, Satellite
Statement of Work. Contractor will also provide Purchaser personnel with “real time” access
to all measured data, when feasible, for the Work on a non-interference, no-cost basis.
	 
	 	8.3	 	On-Site Facilities for Purchaser’s Personnel
	 
	 	 	 	For the purpose of monitoring the progress of the Work being performed by Contractor
hereunder, Contractor shall provide office facilities at Contractor’s plant for resident
Purchaser personnel (and/or Purchaser’s duly appointed consultants and agents) through the
IOT Complete Date. The office facilities to be provided shall include a reasonable amount
of office space, office furniture, local telephone service, reasonable long-distance
telephone usage, access to copy machines, facsimile machines, internet account and access,
reasonable clerical support, and meeting rooms to the extent necessary to enable Purchaser
personnel to monitor the progress of Work under this Contract. Contractor will use
Reasonable Efforts to obtain similar office facilities at the plants of Contractor’s Major
Subcontractors for visits and meetings of Purchaser and Contractor to such plants.
	 
	 	8.4	 	Purchaser Personnel as Competitors/Foreign Persons
	 
	 	 	 	Purchaser shall use Reasonable Efforts to verify that Purchaser’s consultants and agents
used in connection with this Contract are not currently employed by companies or entities
that are Competitors of Contractor. Purchaser shall notify Contractor in writing of the
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	 	 	 	under U.S. export laws and such other information as may be reasonably requested by
Contractor, with respect to each of its intended consultants and agents, and cause each such
consultant and agent (except for attorneys and other professionals who are already bound by
obligations of confidentiality) to: (i) execute a confidentiality agreement directly with
Contractor in form and substance reasonably satisfactory to Contractor and containing terms
substantially the same as those set forth in Article 28; and, (ii) pursuant to Article 7,
execute a Technical Assistance Agreement or other agreement to ensure compliance with
applicable U.S. export control laws and regulations to the extent required by applicable U.S
export laws or regulations. Without prejudice to Contractor’s rights and obligations under
Article 7, Contractor may in its reasonable discretion deny any consultant or agent of
Purchaser access to Contractor or a Subcontractor’s facilities, products or information if
such consultant or agent is currently employed by a Competitor, or if such consultant or
agent fails to execute any of the agreements identified in (i) and (ii) above, where
necessary. Notwithstanding the foregoing, Purchaser consultants or agents who are also
employed or engaged by Contractor Competitors shall not be denied access to Contractor or a
Subcontractor’s facilities, products or information if Purchaser notifies Contractor of the
identity of such consultants or agents, identifies the Competitor(s) that such consultant(s)
or agent(s) are employed by, and Purchaser implements appropriate protective measures
(firewalls) to safeguard the confidentiality of Contractor’s data, documentation and
information as required by this Contract.
	 
	 	8.5	 	Meetings and Presentations
	 
	 	 	 	Purchaser shall be entitled to reasonable notice of and to attend: (a) all formal program-
specific meetings; and (b) reviews required in Exhibit A, Statement of Work. Purchaser
shall have the right to participate in and to make recommendations in all such meetings and
reviews at the system, subsystem and unit level. In addition, Contractor and Purchaser
shall mutually agree on which informal program-specific meetings to which Purchaser will be
invited to attend.
	 
	 	 	 	Copies of presentations or other documents utilized during these meetings shall be furnished
or made available to Purchaser and Purchaser’s consultants. Purchaser’s management
personnel, as may be deemed appropriate by Purchaser, shall be invited to the Quarterly
Summary Executive Reviews. Contractor shall be represented by its

			
	 	 	 
	
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	 	 	 	Program Manager and such other personnel as are required to support the particular
presentation.
	 
	 	8.6	 	Interference with Operations
	 
	 	 	 	Purchaser shall exercise its rights under this Article 8 in a manner that does not
unreasonably interfere with Contractor’s or its Subcontractors’ normal business operations
or Contractor’s performance of its obligations under this Contract or any agreement between
Contractor and its Subcontractors.
	 
	 	8.7	 	Purchaser Inspection Not Acceptance
	 
	 	 	 	The inspection, examination, or observation by Purchaser with regard to any portion of Work
produced under this Contract shall not constitute any Acceptance thereof, nor shall it
relieve Contractor from fulfilling its contractual obligations hereunder.
	 
	 	8.8	 	CondoSat Associate
	 
	 	 	 	Purchaser agrees that Contractor may provide the same access to the Work as provided to
Purchaser hereunder to CondoSat Associate personnel and representatives on the same terms
and with the same restrictions as set forth herein. In the event that Purchaser desires
that any CondoSat Associate personnel and/or representatives be denied such access,
Purchaser shall so notify Contractor in writing, including the name of CondoSat Associate
personnel and/or representative, and thereafter Contractor shall notify CondoSat Associate
of the restriction and deny access to such persons.

			
	 	 	 
	
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     ARTICLE 9 —  SATELLITE PRE-SHIPMENT REVIEW (SPSR) AND DELIVERY

	 	9.1	 	Satellite Pre-Shipment Review (SPSR)

	 	9.1.1	 	Contractor to Conduct a Review of the Satellite Prior to Shipment.
Contractor shall conduct a detailed and comprehensive review of the Satellite prior to
Contractor’s shipment of the Satellite to the Launch Site or its entering into storage.
This review shall be conducted in accordance with the terms of this Article 9 and
Paragraph 2.4.5 of Exhibit A, Statement of Work (a “Satellite Pre-Shipment Review” or
“SPSR”).
	 
	 	9.1.2	 	Time, Place and Notice of SPSR. The SPSR shall take place at
Contractor’s facility. Contractor shall notify Purchaser in writing on or before
thirty (30) days prior to the date that the Satellite will be available for the SPSR,
which shall be the scheduled date for commencement of such SPSR. If Purchaser cannot
attend the SPSR on such initially scheduled date, Contractor shall make Reasonable
Efforts to accommodate Purchaser’s scheduling requirements. Purchaser agrees that
CondoSat Associate personnel and/or representatives shall be allowed to attend the
SPSR, but that Purchaser shall have final approval of the list of non-Contractor
attendees.
	 
	 	9.1.3	 	Conduct and Purpose of SPSR. The SPSR shall be conducted in
accordance with the terms of this Article 9 and Paragraph 2.4.5 of Exhibit A, Statement
of Work. The purpose of the SPSR shall be to: (i) review test data and analyses for
the Satellite; (ii) demonstrate testing has been completed in accordance with the
applicable portions of Exhibit D, Satellite Program Test Plan: and, (iii) determine
whether the Satellite meets applicable Exhibit B, Satellite Performance Specification
requirements (except those that have been waived pursuant to Article 9.1.4 below) and
is therefore ready for shipment to the Launch Site.
	 
	 	9.1.4	 	Waivers and Deviations. Contractor shall submit to Purchaser any
request for a waiver of, or deviation from, provisions(s) of the Performance
Specification applicable to the Satellite or other Deliverable Item. Purchaser shall
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	 	 	 	standard practices. A request for waiver or deviation shall be deemed granted only
if it has been approved in writing by a duly authorized representative of Purchaser
(as defined in Article 31.3). Each such waiver or deviation approved by Purchaser
shall be deemed an amendment to the Performance Specification for such Satellite or
Deliverable Item, permitting such waiver thereof, or deviation therefrom, effective
on or after the date of such approval for such Satellite or Deliverable Item. In
the event that Purchaser approves any waiver or deviation under this paragraph,
Purchaser shall be entitled to an equitable reduction in the Firm Fixed Price and
Contractor shall be entitled to an equivalent reduction in the [***], if applicable.
	 
	 	9.1.5	 	Purchaser’s Inspection Agents. Purchaser may, subject to prior
written notice to Contractor, cause any Purchaser personnel, consultant or agent
designated by Purchaser to observe the SPSR pursuant to this Article 9; provided,
however, that the provisions of Article 7 and Article 8.4 shall apply to any such
agent.
	 
	 	9.1.6	 	SPSR Results. In the event that the SPSR demonstrates that: (i)
testing has been performed in accordance with Section 5.2 of Exhibit D, Satellite
Program Test Plan, and (ii) such Satellite conforms to the applicable requirements of
Exhibit B, Satellite Performance Specification (including any waivers or deviations
approved by Purchaser pursuant to Article 9.1.4), Purchaser shall provide written
certification (a “Certification”) to Contractor (within 72 hours after Purchaser
receives written notice of completion of the SPSR from Contractor) of its concurrence
with the results of the SPSR (including any waiver of its right to compel correction of
those non-conformances to the requirements of Exhibit B, Satellite Performance
Specification, specified by Purchaser in such notice), and the Satellite shall be
deemed ready for shipment to the Launch Site.
	 
	 	 	 	In the event that such SPSR discloses (i) any failure to conduct testing in
accordance with Section 5.2 of Exhibit D, Satellite Program Test Plan, or (ii) any
non-conformance of such Satellite to the requirements of Exhibit B, Satellite
Performance Specification, either of which is not the subject of any waivers or
deviations approved by Purchaser pursuant to Article 9.1.4, Purchaser shall

 

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	 	 	 	provide written notification thereof (a “Notice of Non-Conformance”) to
Contractor within 72 hours after Purchaser receives written notice of completion of
the SPSR from Contractor, which written notification shall state each such
non-conformance Purchaser requires to be corrected or repaired (with reference to
the specific provision of Exhibit D, Satellite Program Test Plan, or Exhibit B,
Satellite Performance Specification, deemed not met). Contractor shall correct or
repair each non-conformance with all deliberate speed and thereafter conduct
additional testing and/or a “delta” SPSR, in accordance with the provisions of this
Article 9, to the extent necessary to demonstrate that the Satellite conforms to the
requirements of Exhibit B, Satellite Performance Specification, after which
Purchaser shall provide a Certification or Notice of Non-Conformance within the
applicable time frame specified above. Contractor shall be required to repeat the
process described in this Paragraph until Purchaser provides Contractor with a
Certification pursuant to the requirements of this Article 9.
	 
	 	 	 	If Purchaser fails to provide a written Certification or Notice of Non-Conformance
as required by either of the preceding Paragraphs of this Article 9.1.6 within the
time specified, and Contractor has provided written notice advising Purchaser of
such (a “Cure Letter”), the SPSR shall be deemed to have been successfully completed
if Purchaser has still not submitted a written Certification or Notice of
Non-Conformance within one (1) Business Day of Purchaser’s receipt of the Cure
Letter and the Satellite shall be deemed ready for shipment to the Launch Site.
	 
	 	 	 	Upon receipt of Purchaser’s Certification in accordance with this Article 9,
Contractor shall thereafter transport such Satellite in accordance with Contractor’s
standard commercial practices to the Launch Site (and shall be deemed Delivered when
received at the Launch Site), and proceed to prepare the Satellite for Launch.
Contractor shall not ship the Satellite to the Launch Site until all
non-conformances are corrected, repaired or have a Purchaser-approved waiver or
deviation.
	 
	 	9.1.7	 	Inspection Costs Borne by Purchaser. All costs and expenses incurred
by Purchaser and its agents in the exercise of its inspection rights under this Article
9, including travel and living expenses, shall be borne solely by Purchaser.

			
	 	 	 
	
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	 	9.1.8	 	Correction of Deficiencies after SPSR. If at any time following
completion of SPSR of the Satellite and prior to Intentional Ignition (or in the event
of a Terminated Ignition, prior to any subsequent Intentional Ignition), it is
discovered that such Satellite has a Defect or fails to meet the requirements of
Exhibit B, Satellite Performance Specification, as they may be modified as of such time
pursuant to Article 9.1.4, Contractor shall promptly correct such deficiencies prior to
Intentional Ignition (or in the case of a Terminated Ignition, prior to any subsequent
Intentional Ignition) in accordance with the applicable terms of this Contract,
including price and/or schedule adjustments for which Contractor may be entitled
pursuant to Article 12.1(B). Contractor shall use Reasonable Efforts to avoid and
minimize delays associated with any such Defects as further described in Article 3.4.
In the event of a Terminated Ignition, Contractor and Purchaser shall proceed in
accordance with Article 12.1(B) for those actions necessary to prepare the Satellite
for relaunch.

			
	 	 	 
	
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ARTICLE 10 — ACCEPTANCE OF SATELLITE, LAUNCH SUPPORT AND MISSION

OPERATIONS SUPPORT SERVICES AND IN-ORBIT TEST

	 	10.1	 	Satellite Acceptance
	 
	 	 	 	Acceptance of the Satellite by Purchaser (including the Loral Space Payload on behalf of
CondoSat Associate) shall occur finally and irrevocably for all purposes hereunder upon the
earlier to occur of: (i) the IOT Complete Date (as defined in Article 10.3. below); or (ii)
the instant immediately prior to an event on or after Intentional Ignition resulting in the
Total Loss of the Satellite (or the Satellite being reasonably determined to be a Total
Loss).
	 
	 	10.2	 	Launch Support and Mission Operations Support Services
	 
	 	 	 	Upon arrival of the Satellite at the Launch Site, Contractor shall proceed with the
provision of Launch Support Services in accordance with Exhibit A, Statement of Work. After
Launch of the Satellite by the Launch Agency, Contractor shall proceed with the provision of
Mission Operations Support Services in accordance with Exhibit A, Statement of Work.
	 
	 	10.3	 	In-Orbit Testing (IOT)
	 
	 	 	 	Thirty (30) days prior to the scheduled Launch of the Satellite, Contractor shall notify
Purchaser in writing of the IOT schedule with respect to such Satellite. Purchaser
personnel, including but not limited to its contractors and agents may, at Purchaser’s
election and subject to Article 7 and Article 8.4, observe such IOT at either Purchaser’s or
Contractor’s facilities. CondoSat Associate personnel and/or representatives shall also be
allowed to observe such IOT at Contractor’s facilities, if so authorized by Purchaser.
	 
	 	 	 	After the Satellite has been placed in its orbital slot, Contractor shall perform IOT in
accordance with Exhibit D, Satellite Program Test Plan, and conduct an IOT review with
Purchaser and CondoSat Associate within three (3) days of completing IOT (with a summary IOT
report being submitted at least 24 hours prior to conducting the IOT review), all in
accordance with the applicable provisions of Exhibit A, Statement of Work, and Exhibit D,
Satellite Program Test Plan. Upon the completion of the IOT review, Purchaser shall be
deemed to have accepted the IOT results (the “IOT Complete Date”).

			
	 	 	 
	
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	 	10.4	 	Orbital Performance Incentives
	 
	 	 	 	From and after the IOT Complete Date, Contractor shall have the right to earn Orbital
Performance Incentives in accordance with Article 13.

			
	 	 	 
	
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ARTICLE 11 —  ACCEPTANCE OF DELIVERABLE ITEMS OTHER THAN THE SATELLITE

	 	11.1	 	DSS

	 	11.1.1	 	With respect to the DSS (including Software integrated into the DSS), Contractor
shall conduct an inspection and test the DSS in accordance with Exhibit H, Dynamic
Satellite Simulator Statement of Work and Functional Requirements Document, in
coordination with Purchaser or Purchaser’s representative. If the tests establish that
the DSS meets the requirements of Exhibit H, Contractor shall deliver the test results
and provide a certification to Purchaser that the DSS meets the requirements of this
Contract. Based upon this Contractor’s certification and the inspection and test
results, and the results of any additional inspection or testing that Purchaser may
reasonably conduct in coordination with Contractor, Purchaser shall either Accept the
same in writing (“Acceptance” with respect to the DSS) or notify Contractor in writing
of those particulars in which the DSS is unacceptable. Should Purchaser fail to notify
Contractor in writing of those particulars in which the DSS is unacceptable within ten
(10) Business Days of certification, the DSS shall be deemed Accepted by Purchaser.
Upon receipt of a notice that the DSS is unacceptable to Purchaser, which notice shall
state the particulars relating to such unacceptability, Contractor shall remedy the
non-conformances, conduct additional testing as appropriate, and schedule another test
of the DSS as appropriate in the presence of Purchaser or Purchaser’s representative.
When such particulars have been remedied to conform to all applicable requirements of
Exhibit H, the DSS shall be promptly Accepted by Purchaser in writing. Contractor
shall be required to repeat the process described in this Paragraph until the DSS shall
have been Accepted by the Purchaser in writing pursuant to the criteria of this
Paragraph. Contractor shall take all appropriate measures to ensure that Acceptance of
the DSS is achieved prior to Acceptance of the Satellite. In the event that Acceptance
of the Satellite occurs prior to Acceptance of the DSS, Contractor shall, at
Contractor’s sole cost and expense, and at Purchaser’s option, (i) continue to operate
such Satellite for Purchaser until the time of Acceptance of such DSS and (ii)
expeditiously complete the tasks necessary to facilitate Acceptance of the DSS.

			
	 	 	 
	
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	 	11.2	 	Deliverable Data
	 
	 	 	 	For any Deliverable Data (including Deliverable Items of Software but excluding Software
integrated into the DSS and Satellite, which are subject to Article 11.1 and Article 10.1,
respectively) that requires Purchaser approval pursuant to Exhibit A, Statement of Work,
Purchaser shall, within ten (10) Business Days of Delivery, notify Contractor in writing
that such Deliverable Data has either been: (i) Accepted, or (ii) that such Deliverable Data
does not comply with the requirements of Exhibit A, Statement of Work, identifying each such
non-conformance. If Purchaser notifies Contractor of any non-conformance pursuant to the
foregoing, Contractor shall promptly correct any non-compliant aspect of such Deliverable
Data identified in such notice from Purchaser, and re-submit the Deliverable Data to
Purchaser for a subsequent inspection to verify that Contractor has corrected the
previously-identified non-compliance and that the Deliverable Data complies with the
requirements of Exhibit A, Statement of Work. If Purchaser fails to provide notice within
the time specified above, Acceptance shall be deemed to have occurred with respect to such
Deliverable Data. Contractor shall be required to repeat the process described in this
Paragraph until such time as the relevant Deliverable Data has either been Accepted by
Purchaser in writing, or has been deemed Accepted, in accordance with this Paragraph. For
Deliverable Data that does not require Purchaser approval pursuant to Exhibit A, Statement
of Work, Acceptance of such Deliverable Data shall be deemed to have occurred upon Delivery,
provided that such Deliverable Data complies with the requirements of Exhibit A, Statement
of Work and further provided that in the event of any non-compliance, Purchaser shall have
the remedies set forth in Article 15.2.4.
	 
	 	11.3	 	Training
	 
	 	 	 	Acceptance of Training, or any part thereof, required by Exhibit A, Statement of Work shall
occur in accordance with this Article 11.3. Training, or any part thereof, furnished to
Purchaser shall be accompanied by written notice from Contractor specifying that portion of
the Training being furnished. Acceptance of Training, or any part thereof, shall be deemed
to occur ten (10) Business Days after completion of such Training or part thereof unless
within such time Purchaser provides a written notice to Contractor that the Training, or
part thereof, does not meet Purchaser’s reasonable satisfaction with reference to the
requirements of Exhibit A, Statement of Work, identifying each non-conformance. In the
event that Purchaser does not Accept Training, or any part thereof,

			
	 	 	 
	
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	 	 	 	as set forth in this Paragraph, Contractor shall repeat the Training, or relevant part
thereof.
	 
	 	11.4	 	Deliverable Services
	 
	 	 	 	Acceptance of Deliverable Services, or any part thereof, shall occur in accordance with this
Article 11.4. To the extent feasible, Deliverable Services furnished to Purchaser shall be
accompanied by written notice from Contractor specifying that portion of the Deliverable
Services being furnished. Acceptance of Deliverable Services, or any part thereof, shall be
deemed to occur: (a) in a case where re-performance of the Deliverable Services is not
practical (for example, Launch Support Services are performed real-time), upon completion of
such Deliverable Services or part thereof; or (b) in a case where re-performance of the
Deliverable Services is practicable, ten (10) Business Days after completion of such
Deliverable Services or part thereof, unless within such time Purchaser provides a written
notice to Contractor that the Deliverable Services, or part thereof, do not meet the
requirements of Exhibit A, Statement of Work, identifying each non-conformance.
	 
	 	11.5	 	Reserved 
	 
	 	11.6	 	Satellite Control Facility Equipment
	 
	 	 	 	If Purchaser exercises its option set forth in Article 2.4, upon completion of the
installation of the Satellite Control Facility equipment (not including the DSS, which is
subject to Article 11.1), Contractor shall conduct an inspection and test the Satellite
Control Facility equipment in accordance with Exhibit F, Satellite Control Facility
Requirements Document, in coordination with Purchaser or Purchaser’s representative. If
such inspection and tests, and data resulting from such inspection and tests, establish that
the Satellite Control Facility equipment meets the requirements of Exhibit F, Satellite
Control Facility Requirements Document, Contractor shall deliver the inspection and test
results and associated data and provide a certification to Purchaser that the Satellite
Control Facility equipment meets the requirements of this Contract, together with a
notification of the period in which Purchaser may provide Acceptance or notice of
non-conformance for the equipment. Based upon such Contractor certification and the
inspection and test results, and any inspection or testing that Purchaser may reasonably
conduct in coordination with Contractor, Purchaser shall either Accept the same in writing
or notify Contractor in writing of those particulars in which the Satellite Control

			
	 	 	 
	
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	 	 	 	Facility equipment is unacceptable. Should Purchaser fail to notify Contractor in writing
of those particulars in which the Satellite Control Facility Equipment is unacceptable
within ten (10) Business Days of certification, and Contractor has provided written notice
advising Purchaser of such, the Satellite Control Facility equipment shall be deemed
Accepted by Purchaser. Upon receipt of a notice that the Satellite Control Facility
equipment is unacceptable to Purchaser, which notice shall state the particulars relating to
such unacceptability, Contractor shall remedy the non-conformances, conduct additional
testing as appropriate, and schedule another test of the Satellite Control Facility
equipment as appropriate in the presence of Purchaser or Purchaser’s representative. Upon
remedy of such particulars to conform to all applicable requirements of Exhibit F, Satellite
Control Facility Requirements Document, the Satellite Control Facility Equipment shall be
Accepted by Purchaser in writing. Contractor shall be required to repeat the process
described in this Paragraph until the Satellite Control Facility equipment shall have been
Accepted by the Purchaser in writing as set forth in this Paragraph. Contractor shall take
all appropriate measures to ensure that Acceptance of the Satellite Control Facility
Equipment is achieved prior to Acceptance of the Satellite. In the event that Acceptance of
the Satellite occurs prior to Acceptance of the Satellite Control Facility Equipment,
Contractor shall, at Contractor’s sole cost and expense, and at Purchaser’s option, (i)
continue to operate such Satellite for Purchaser until the time of Acceptance of such
Satellite Control Facility Equipment and (ii) expeditiously complete the tasks necessary to
facilitate Acceptance of the Satellite Control Facility Equipment.
	 
	 	11.7	 	Purchaser’s Inspection Agents
	 
	 	 	 	Purchaser may, upon giving prior written notice to Contractor, cause any Purchaser
consultant or agent designated by Purchaser to observe or conduct the acceptance inspection
pursuant to this Article 11 in whole or in part; provided, however, that the provisions of
Article 7 and Article 8.4 shall apply to any such consultant or agent and such consultant or
agent shall comply with Contractor’s normal and customary safety and security regulations
provided to Purchaser in writing in advance of such inspection.
	 
	 	11.8	 	Waivers and Deviations
	 
	 	 	 	Waivers of or deviations from the Performance Specification applicable to any Deliverable
Item subject to acceptance inspection pursuant to this Article 11 shall be addressed as set
forth in Article 9.1.4.

			
	 	 	 
	
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	 	11.9	 	Inspection Costs Borne by Purchaser
	 
	 	 	 	All costs and expenses incurred by Purchaser or its consultants or agents in the performance
of its inspection rights under this Article 11, including travel and living expenses, shall
be borne solely by Purchaser.
	 
	 	11.10	 	Warranty Obligations
	 
	 	 	 	In no event shall Contractor be released from any of its warranty obligations applicable to
any Deliverable Item as a result of such Deliverable Item having been Accepted as set forth
in this Article 11.

			
	 	 	 
	
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ARTICLE 12 —  TRANSFER OF TITLE AND RISK OF LOSS

	 	12.1	 	Satellite

(A) Title to and risk of loss or damage for the Satellite, except for the Loral Space
Payload, shall pass from Contractor to Purchaser (and title to the Loral Space Payload
portion will pass to CondoSat Associate simultaneously, pursuant to the Loral Space Payload
Contract) at the time of Intentional Ignition. In the event of a Terminated Ignition not
resulting in Total Loss, title to and risk of loss or damage for the Satellite (including
the Loral Space Payload portions of the Satellite) shall revert to Contractor upon such
Terminated Ignition. If Contractor re-acquires title and risk of loss or damage as set
forth in the immediately preceding sentence, title to and risk of loss or damage for the
Satellite, except for the Loral Space Payload, shall again pass to Purchaser (title to the
Loral Space Payload portion of the Satellite will again pass to CondoSat Associate
simultaneously, pursuant to the Loral Space Payload Contract) upon the subsequent
Intentional Ignition. Prior to Intentional Ignition, the Parties shall agree to appropriate
revisions to certain definitions (i.e., Intentional Ignition, Launch, Terminated Ignition,
and other related provisions) as required to ensure that risk of loss transfers from
Contractor to Purchaser in a manner that does not result in a lack (or gap in time) of
insurance coverage for the Satellite at any time between the time period covered by the
Ground Insurance to be provided by Contractor pursuant to Article 32.5 and the applicable
coverage start date for any Launch and In-Orbit Insurance Policy.

(B) In the event of a Terminated Ignition, once the launch pad has been declared safe and
the Launch Agency authorizes the start of the demating operations, Contractor shall, at
Purchaser’s request, immediately take all necessary actions to prepare the Satellite for a
relaunch, including: (a) supporting the Launch Agency in demating the Satellite from the
Launch Vehicle and conducting defueling operations; (b) directly performing inspection and
testing, refurbishment, storage, repair and replacement of damaged Component(s), and
transportation of the Satellite to and from the Launch Site; and (c) providing additional
Launch support services for the subsequent Launch of the Satellite. Such actions shall be
handled as a change pursuant to Article 16.1, and for the avoidance of doubt is not
considered to be performance of Work pursuant to the terms of the warranty set forth in
Article 15.2.1. Promptly after a Terminated Ignition, the Parties shall establish a new due
date for the repaired/refurbished Satellite. In the event of a

			
	 	 	 
	
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Terminated Ignition that results in the Total Loss of the Satellite, title to and risk of
loss or damage for the Satellite shall remain with Purchaser.

(C) EXCEPT WITH RESPECT TO WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, UPON AND AFTER
INTENTIONAL IGNITION, UNLESS AND TO THE EXTENT OF A TERMINATED IGNITION WHERE CONTRACTOR
RE-ACQUIRES TITLE TO AND RISK OF LOSS OR DAMAGE FOR THE SATELLITE AS PROVIDED IN ARTICLE
12.1, CONTRACTOR’S SOLE OBLIGATION, LIABILITY OR FINANCIAL RISK, AND THE SOLE AND EXCLUSIVE
REMEDIES OF PURCHASER OR ANY PARTY ASSOCIATED WITH PURCHASER, WITH RESPECT TO THE
SATELLITE’S DESIGN, WORKMANSHIP, CONFORMITY TO SPECIFICATION, USE OR PERFORMANCE OF SUCH
SATELLITE, INCLUDING ANY ASSISTANCE OR ADVICE (ACTUAL OR ATTEMPTED) PROVIDED OR OMITTED AS
CONTEMPLATED BY ARTICLES 15.3 AND 32 HEREOF (INCLUDING WITH RESPECT TO ANY ACTUAL OR CLAIMED
DEFECT CAUSED OR ALLEGED TO BE CAUSED AT ANY TIME, WHETHER BEFORE OR AFTER INTENTIONAL
IGNITION, BY CONTRACTOR’S OR ANY OF ITS SUBCONTRACTORS’ NEGLIGENCE) SHALL BE AS SET FORTH IN
ARTICLES 5.2.2 (WITH RESPECT POST-LAUNCH MILESTONE PAYMENTS), 13, 15.3, 19, AND 32, IN ALL
CASES SUBJECT TO THE LIMITATION OF LIABILITY SET FORTH IN ARTICLE 27. THE FOREGOING SHALL
NOT PREJUDICE OR LIMIT EITHER PARTY’S RIGHTS AND REMEDIES WITH RESPECT TO ARTICLE 28,
DISCLOSURE AND HANDLING OF PROPRIETARY INFORMATION AND ARTICLE 39, INTELLECTUAL PROPERTY.

	 	12.2	 	Deliverable Items Other Than the Satellite
	 
	 	 	 	Title to and risk of loss or damage for the DSS and the Satellite Control Facility Equipment
(including the Spares), shall pass from Contractor to Purchaser upon Acceptance thereof
pursuant to Article 11.1 and Article 11.6, respectively. Purchaser’s rights in and to
Deliverable Data (including, without exception, Deliverable Items of Software and Software
integrated into hardware) are as set forth in Article 39, Intellectual Property.

			
	 	 	 
	
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ARTICLE 13 —  ORBITAL PERFORMANCE INCENTIVES

	 	13.1	 	General
	 
	 	 	 	Contractor may earn, and Purchaser shall pay, if earned, Orbital Performance Incentives with
respect to the Satellite in the amounts set forth in Article 13.2. Contractor may earn and
accrue the Orbital Performance Incentives over the Orbital Performance Incentive Period with
respect thereto. All measurements, computations and analyses made pursuant to this Article
13 shall be made in accordance with good engineering practice applying standards generally
applicable in the aerospace industry.
	 
	 	13.2	 	Daily Rate of Orbital Performance Incentives 
	 
	 	 	 	Contractor shall be entitled to earn Orbital Performance Incentives in the cumulative amount
of [***] percent ([***]%) of the Firm Fixed Price (after all Firm Fixed Price adjustments
made to this Contract) over the Orbital Performance Incentive Period at a daily rate
calculated by dividing the total amount of Orbital Performance Incentives by 5,479 (as of
EDC, the daily rate is $[***]/ 5,479 = $[***]) for each day that there is no Transponder
Failure (the “Daily Rate”).
	 
	 	 	 	For each day (or any portion thereof) during the Orbital Performance Incentive Period that
there are one or more Transponder Failures, the Daily Rate shall be adjusted in accordance
with the following formula:

ADR = D x (T/N)

Where:

ADR = Adjusted Daily Rate;

D = Daily Rate;

N = Number of Transponders (which shall be two times the number of the U.S. Beams
and Additional Beams set forth in Exhibit B, Satellite Performance Specification);
and

T = number of Transponders that have not experienced a Transponder Failure

 

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during the day. For the purposes of determining “T”, the term “Transponder”
and “Transponder Failure” shall not include transponders allocated to the Loral
Space Payload.

	 	 	 	For example, assuming N=126, for each Transponder Failure that occurs in any day during the
Orbital Performance Incentive Period, the Daily Rate for that day is reduced by U.S.
$[***](U.S. $[***]).
	 
	 	13.3	 	On-Board Redundancy; Spares
	 
	 	 	 	On-board redundancy and/or spare Components shall be taken into consideration to maintain
service on a Satellite, and such use shall be deemed normal operating procedure for purposes
of this Article 13 so long as the applicable criteria of Exhibit B are met by such
Satellite, as the case may be.
	 
	 	13.4	 	Orbital Storage 
	 
	 	 	 	If Purchaser places the Satellite in Orbital Storage (other than due to the inability to
operate the Satellite for unexcused causes attributable to Contractor), Contractor shall
continue to earn Orbital Performance Incentives at the same Daily Rate as Contractor would
be earning such incentives if the Satellite were in service.
	 
	 	13.5	 	Total Loss of the Satellite During Orbital Performance Incentive Period 
	 
	 	 	 	In the event that the Satellite becomes a Total Loss during the Orbital Performance
Incentive Period, and such Total Loss is not attributable to Purchaser or Purchaser’s
representatives, consultants or subcontractors as set forth in Article 13.10, Contractor
shall not be entitled to earn any further Orbital Performance Incentives with respect to
such Satellite and shall have no further claim against Purchaser regarding such Orbital
Performance Incentives. Contractor shall not lose any Orbital Performance Incentives earned
prior to time that the Satellite becomes a Total Loss as provided above.
	 
	 	13.6	 	Total Loss or Partial Loss Not Attributable to Contractor 
	 
	 	 	 	If, after Intentional Ignition, the Satellite is determined to be a Total Loss, or if a
Partial Loss has occurred (unless and to the extent of a Terminated Ignition as provided in
Article 12.1) and, in either case, such loss is due to causes not attributable to Contractor

 

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	 	 	 	(for avoidance of doubt, causes attributable to the Launch Agency shall not be
considered causes attributable to Contractor), Contractor shall be deemed to have earned
immediately the corresponding amount of Orbital Performance Incentives that would otherwise
be lost pursuant to this Article 13, provided that Contractor shall only be entitled to the
interest payments set forth in Article 13.9 through the date of payment for the
corresponding amounts of Total Loss or Partial Loss.
	 
	 	13.7	 	Purchaser Operation of the Satellite 
	 
	 	 	 	If, the Satellite operates in a manner that is not in accordance with any requirements of
Exhibit B, Satellite Performance Specification, and to the extent such operation is due to
any act or omission on the part of Purchaser or Purchaser’s representatives, consultants or
subcontractors in the operation of, testing of, or communication with, the Satellite (unless
such act or omission was performed in accordance with directions or instructions provided by
Contractor), Contractor shall continue to earn Orbital Performance Incentives with respect
to such Satellite at the rate that applied prior to the act or omission resulting in
degraded performance (subject to later adjustments pursuant to this Article with respect to
failures to meet the requirements of Exhibit B, Satellite Performance Specification, not
resulting from any such act or omission on the part of Purchaser or Purchaser’s
representatives, consultants or subcontractors).
	 
	 	13.8	 	Contractor Access
	 
	 	 	 	During the Orbital Performance Incentive Period, Contractor shall have reasonable access to
applicable performance data of the Satellite for purposes of evaluating any degradation in
the performance of the Satellite.
	 
	 	13.9	 	Payment
	 
	 	 	 	Payment of amounts earned under this Article 13 plus interest thereon calculated from the
first day of the Orbital Performance Incentive Period until the date of payment, at an
annual rate of [***] percent ([***]%), compounded monthly, shall be paid as follows: (a) the
first payment shall be due no later than the end of the first full month following the month
in which occurred successful completion of In-Orbit Testing, and shall cover the first
partial month of earned Orbital Performance Incentives, if any; and (b) thereafter, all

 

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	 	 	 	subsequent payments shall be due no later than thirty (30) days following the end of each
calendar month for the prior month’s earned Orbital Performance Incentives.
	 
	 	13.10	 	Complete Loss of Unearned Incentives
	 
	 	 	 	Contractor shall no longer be entitled to earn any remaining unearned Orbital Performance
Incentives if: (a) Purchaser permanently withdraws the Satellite from operational service or
is unable to operate the Satellite for the purpose of operating a broadband internet
subscriber service, prior to the end of the Stated Life, due to performance problems
attributable to the Contractor; (b) pointing errors exceed the values set forth in Exhibit
B, Satellite Performance Specification by more than [***] percent ([***]%) and Contractor is
unable to fix such errors using Reasonable Efforts; or (c) Contractor has lost or is
reasonably predicted to lose more than [***] percent ([***]%) of the Orbital Performance
Incentives.
	 
	 	13.11	 	Ground Storage
	 
	 	 	 	If after Satellite Pre-Shipment Review of a Satellite, Purchaser places such Satellite in
Ground Storage for a period of [***] for reasons not primarily due to the fault of
Contractor, Purchaser shall pay Contractor interest on the full amount of the Orbital
Performance Incentives at an annual rate of [***] percent ([***]%), compounded monthly,
commencing on the first day of the seventh month of Ground Storage and ending upon the date
of shipment of the Satellite to the Launch Site.
	 
	 	13.12	 	Insurance on Orbital Performance Incentives
	 
	 	 	 	Contractor agrees that it will not obtain insurance covering the Orbital Performance
Incentives.
	 
	 	13.13	 	Contention with Canadian Beam Transponders
	 
	 	 	 	Purchaser acknowledges that Contractor is entitled to earn additional orbital performance
incentives under the Loral Space Payload Contract based on the performance of the
Transponders allocated to the Loral Space Payload. Nevertheless, in the event that the
overall Satellite experiences any Anomaly which will affect the use of the Satellite or one
(1) or more Transponders, Purchaser has the sole right to

 

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	 	 	 	determine which portion of the Satellite or Transponder(s) shall be affected, which decision
shall be binding hereunder, and Purchaser shall advise Contractor accordingly. Contractor
agrees to reflect Purchaser’s rights contained in this Article 13.13 in the Loral Space
Payload Contract.

			
	 	 	 
	
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ARTICLE 14 — CORRECTIVE MEASURES IN THE SATELLITE AND OTHER DELIVERABLE ITEMS

If the data available from any satellite manufactured by Contractor (whether in-orbit or on the
ground) or other information known to Contractor shows that the unlaunched Satellite to be
delivered under this Contract contains or is predicted to contain a Defect, Contractor shall: (i)
provide Purchaser prompt written notice thereof, provided Contractor shall not be required to
disclose to Purchaser information that is confidential to any third party, and (ii) at Contractor’s
sole cost, correct such Defect or potential Defect notwithstanding that a payment may have been
made in respect thereof, and regardless of prior reviews, inspections, or approvals. Contractor
shall use its Reasonable Efforts to avoid and minimize delays as provided in Article 3.4. If the
data available from any satellite manufactured by Contractor (whether in-orbit or on the ground) or
other information known to Contractor shows that the launched Satellite delivered under this
Contract contains or is predicted to contain a Defect or Anomaly, Contractor shall proceed in
accordance with Article 15.3.

			
	 	 	 
	
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ARTICLE 15 —  REPRESENTATIONS AND WARRANTIES

15.1 Representations

Each Party represents that, as of the EDC:

	 	1.	 	It is a corporation duly organized in the State of Delaware.
	 
	 	2.	 	It has all requisite corporate power and authority to own and operate its
material properties and assets and to carry on its business as now conducted in all
material respects.
	 
	 	3.	 	It is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure to so qualify would have a material adverse effect on
the other Party.
	 
	 	4.	 	It has all requisite corporate power and authority to enter into this Contract
and to carry out the transactions contemplated by this Contract.
	 
	 	5.	 	The execution, delivery and performance of this Contract and the consummation
of the transactions contemplated by this Contract have been duly authorized by the
requisite corporate action and do not conflict with any material agreement or
obligation to which it is a party or which binds its assets.
	 
	 	6.	 	This Contract is a valid and binding obligation, enforceable against each Party
making this representation in accordance with its terms.
	 
	 	7.	 	No suit, claim, action, arbitration, legal, administrative, or other proceeding
is pending, or to the best of each Party’s knowledge, threatened against it that would
likely affect the validity or enforceability of this Contract, or the ability of each
Party making this representation to fulfill its commitments hereunder in any material
respect.

15.2 Terms and Period of Warranty

	 	15.2.1	 	Satellite. Contractor warrants that, from completion of SPSR up to
Intentional Ignition of the Launch Vehicle (unless and to the extent of a Terminated
Ignition where Contractor reacquires title and risk of loss for the Satellite as
provided in Article 12.1 (A), in which case the warranty obligation will reattach but,
as to any damaged Component, only after repair and replacement of such damaged
Component pursuant to Article 12.1 (B) and the warranty period shall continue through
the subsequent Intentional Ignition), the Satellite shall be free of any Defects and
shall be manufactured and will perform in conformity with applicable requirements of
Exhibit B, Satellite Performance

      

			
	
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	 	 	 	Specification (as modified by any waiver and/or deviation pursuant to Article
9.1.4). If the Satellite or any part thereof (including Software integrated into
the Satellite) does not conform to the above warranty, Contractor shall at any time
during the applicable warranty period and irrespective of prior inspections proceed
in accordance with Article 9.1.8 hereof and Contractor’s only liability under the
preceding sentence shall be as and to the extent set forth in such Article 9.1.8.

	 	15.2.2	 	DSS And SCF Equipment

	 	 	(A) DSS. Contractor warrants that the DSS (including the Software integrated into
the DSS) delivered under this Contract shall be manufactured and/or developed in conformity
with the applicable requirements of Exhibit H (as modified by any waiver and/or deviation
pursuant to Article 11.8) and will be free from Defects during the period commencing on the
date of Acceptance of such DSS pursuant to Article 11 and ending on the later of the first
anniversary of: (a) the Launch of the Satellite; or (b) Acceptance of the DSS.
	 
	 	 	During the period specified above, as Purchaser’s sole and exclusive remedy for any
non-conformance or defect in the DSS of which Purchaser notifies Contractor in writing, such
non-conformance or Defect shall be remedied by Contractor at Contractor’s expense by repair
or replacement of the defective Component (at Contractor’s election). For any such
non-conformance or Defect, Contractor shall determine if repair or replacement is required
to be performed at Contractor’s plant. If required, Purchaser shall ship the DSS to
Contractor’s designated facility. Contractor shall be responsible for the cost of shipment
(including transportation, transit insurance, taxes and/or duties), and the cost of return
shipment (including transportation, transit insurance, taxes and duties) to Purchaser at the
location designated in Article 3.1. Risk of loss for the DSS shall transfer to Contractor
upon delivery of the DSS to the shipping carrier by Purchaser, and risk of loss to the DSS
shall transfer again to Purchaser once such DSS is repaired or replaced pursuant to this
Article 15.2.2, upon receipt thereof by Purchaser at the location designated therefor in
Article 3.1. After the expiration of the period specified above and through the Stated
Life, a failure of the software integrated into the DSS to meet the applicable requirements
of Exhibit H, Dynamic Satellite Simulator Statement of Work and Functional Requirements
Document will, if such failure results in

      

			
	
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a Satellite Anomaly, be resolved in the response to the Satellite Anomaly pursuant to
Article 15.3, below.

	 
	 	 	(B) SCF Equipment. If Purchaser exercises its option set forth in Article 2.4,
Contractor warrants that the SCF Equipment (for purposes of this Article 15.2.2, “SCF
Equipment” shall include the Software integrated into the SCF and the Spares) delivered
under this Contract shall be manufactured in conformity with the applicable requirements of
Exhibit F (as modified by any waiver and/or deviation pursuant to Article 11.8) and will be
free from Defects during the period commencing on the date of Acceptance of such SCF
Equipment pursuant to Article 11 and ending on the later of the first anniversary of: (a)
the Launch of the Satellite; or (b) Acceptance of the SCF Equipment.
	 
	 	 	During the period specified above, as Purchaser’s sole and exclusive remedy for any
non-conformance or defect in such SCF Equipment of which Purchaser notifies Contractor in
writing, such non-conformance or Defect shall be remedied by Contractor at Contractor’s
expense by repair or replacement of the defective Component (at Contractor’s election). For
any such non-conformance or Defect, Contractor shall determine if repair or replacement is
required to be performed at Contractor’s plant. If required, Purchaser shall ship the SCF
Equipment to Contractor’s designated facility. Contractor shall be responsible for the cost
of shipment (including transportation, transit insurance, taxes and/or duties), and the cost
of return shipment (including transportation, transit insurance, taxes and duties) to
Purchaser at the location designated in Article 3.1. Risk of loss for the SCF Equipment
shall transfer to Contractor upon delivery of the SCF Equipment to the shipping carrier by
Purchaser, and risk of loss to the SCF Equipment shall transfer again to Purchaser once
such SCF Equipment is repaired or replaced pursuant to this Article 15.2.2, upon receipt
thereof by Purchaser at the location designated therefor in Article 3.1. After the
expiration of the period specified above and through the Stated Life, a failure of the
software integrated into the SCF and the Spares to meet the applicable requirements of
Exhibit F, Satellite Control Facility Requirement Specification will, if such failure
results in a Satellite Anomaly, be resolved in the response to the Satellite Anomaly
pursuant to Article 15.3, below.

	 	15.2.3	 	Training, Mission Operations Support Services and Launch Support Services.
Contractor warrants that the Training, Mission Operations Support Services and Launch
Support Services Purchaser accepts pursuant to this Contract will, upon Acceptance,
conform to the highest professional standards for

      

			
	
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	 	 	 	the commercial satellite communications industry for work similar in type, scope,
and complexity to the Work at the time such Work is provided. In the event
Contractor breaches this warranty and is so notified by Purchaser within twenty (20)
Business Days of Acceptance or as soon as possible where time is of the essence, as
Purchaser’s sole and exclusive remedy, Contractor shall correct the deficiencies in
the provision of such Training, Launch Support Services and Mission Operations
Support Services where it is possible to do so (e.g., Contractor cannot correct
deficiencies in, or re-perform, Launch Support Services from and after Launch).
	 
	 	15.2.4	 	Deliverable Data. Upon Acceptance, each item of Deliverable Data shall be
complete, up-to-date, and shall otherwise conform with the requirements of this
Contract. In the event the Contractor breaches this warranty and is so notified by
Purchaser, as Purchaser’s sole and exclusive remedy, Contractor shall correct the
deficiencies in the Deliverable Data and resubmit such Deliverable Data to Purchaser.
	 
	 	15.2.5	 	Software. In addition to the warranties set forth in Articles 15.2.2 (A)
and (B), Contractor further represents and warrants that, through the Stated Life of
the Satellite, Contractor shall: (i)  demonstrate that all PC based-Software delivered
hereunder is free of viruses or similar items by testing such Software using
commercially reasonable anti-viral software; (ii) not introduce into any delivered
Software, without Purchaser’s prior written approval, any code that would have the
effect of disabling or otherwise shutting down all or any portion of the delivered
Software (an exception to the foregoing is licensed software that will be included in
some delivered Software; such license software will prevent any unlicensed copies of
delivered Software from running); and (iii)  not seek to gain access to the Work
through any special programming devices or methods, including trapdoors or backdoors,
to bypass, without Purchaser’s prior written approval, any Purchaser security measures
protecting the Work. Although the Parties contemplate that all necessary software
support will be provided pursuant to Article 15.3, below, Purchaser shall have the
option to purchase additional maintenance and support of the Software at commercially
reasonable terms and prices.

      

			
	
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	 	15.2.6.	 	Title. Contractor represents and warrants that it shall provide good and
marketable title to all Deliverable Items for which title shall pass in accordance with
Article 12 free and clear of any liens and encumbrances of any kind (except those, if
any, of Purchaser), at the time title passes to Purchaser.
	 
	 	15.2.7.	 	Reserved 
	 
	 	15.2.8	 	Disclaimer. EXCEPT AND TO THE EXTENT EXPRESSLY PROVIDED IN THIS ARTICLE 15,
CONTRACTOR HAS NOT MADE NOR DOES IT HEREBY MAKE ANY REPRESENTATION OR WARRANTY, WHETHER
WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF
DESIGN, OPERATION, CONDITION, QUALITY, SUITABILITY OR MERCHANTABILITY OR FITNESS FOR
USE OR FOR A PARTICULAR PURPOSE, ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT
DISCOVERABLE, WITH REGARD TO THE SATELLITE, ANY OTHER DELIVERABLE ITEM OR ANY OTHER
WORK. CONTRACTOR MAKES NO WARRANTY WITH RESPECT TO LAUNCH SERVICES OR THE CONDITION,
USE OR PERFORMANCE OF ANY LAUNCH VEHICLE.

15.3 Satellite Anomalies

In addition to Purchaser’s warranty remedy set forth in Article 15.2.1 hereof, Contractor
shall investigate any Satellite Anomaly or Defect occurring on the Satellite after Launch
and during the Stated Life of such Satellite and known to it or as notified in writing by
Purchaser, and shall use Reasonable Efforts to correct such Anomaly or Defect as promptly as
possible in accordance with the Satellite Anomaly resolution support services set forth in
Paragraph 2.5.8.2 of Exhibit A, Statement of Work. Such Reasonable Efforts shall be
conducted at Contractor’s expense to resolve Defects or Anomalies by on-ground means,
including software patches or updates, or transmission by Contractor of commands to the
Satellite to eliminate or mitigate any adverse impact resulting from any such Anomalies, to
establish work-around solutions, or to otherwise resolve such Defects or Anomalies.
Contractor shall coordinate and consult with Purchaser concerning such on-ground resolution
of Defects or Anomalies in the launched Satellite. If for any reason any such Satellite
Defect or Anomaly cannot be or is not corrected as set forth above, and as a result thereof,
such Satellite suffers any loss, including loss of Transponders or becomes a Total Loss,
Purchaser shall look

      

			
	
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solely to its Launch and In-Orbit Insurance Policy and any subsequent insurance policy for
the Satellite procured by Purchaser to compensate it for its loss and any consequences
therefrom, and Contractor shall have no liability or obligation to Purchaser or any other
person in respect of such loss, except as set forth in Article 13 and to provide the
services set forth in 32, subject to the conditions and limitations of such Articles and in
all cases subject to the limitation of liability stated in Article 27. In the event and to
the extent that the occurrence of a Satellite Defect or Anomaly is due to causes
attributable to Purchaser, or Purchaser’s agents, contractors and subcontractors (not
including Contractor), Purchaser shall pay Contractor the Actual Costs reasonably incurred
of all services provided by Contractor associated with such Satellite Anomaly services, plus
a markup of [***] percent ([***]%) of such costs, which costs and markup shall be invoiced
and paid pursuant to the provisions of Article 5.

15.4 Use Conditions Not Covered by Warranty

With respect to the DSS and SCF Equipment (including the Software integrated into the SCF
Equipment and the DSS, and Spares), the warranty under this Article 15 shall not apply to
the extent that any adjustment, repair or parts replacement is required as a result,
directly or indirectly, of accident not attributable to Contractor, unusual physical or
electrical stress beyond the item’s design tolerances, Purchaser or third party negligence
or misuse, failure of environmental control prescribed in operations and maintenance
manuals, or repair or alterations by any party other than Contractor without Contractor’s
advance written consent, or by causes other than normal and ordinary use. The warranty
provided pursuant to this Article 15 is conditioned upon Contractor being given reasonable
access, if required, to Deliverable Items delivered at Purchaser’s facility or as otherwise
directed by Purchaser in order to effect any repair or replacement thereof. If the Defect
repaired or remedied by Contractor is not covered by the warranty provided pursuant to this
Article 15, Purchaser shall pay Contractor the Actual Costs reasonably incurred of such
repair or replacement plus a markup of [***] percent ([***]%) of such costs, which costs and
markup shall be invoiced and paid pursuant to the provisions of Article 5.

 

			
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	15.5	 	Subcontractor Warranties
	 
	 	 	Contractor shall pass on or assign to Purchaser all applicable warranties on goods or
services given by Subcontractors to the extent to which Contractor is permitted by the terms
of its purchase contracts with such suppliers or manufacturers, and further to the extent
that is such assignment does not interfere with Contractor’s performance if its obligations
hereunder.

      

			
	
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ARTICLE 16 — CHANGES

16.1 Change Orders

Purchaser may, at any time between the EDC and the completion of this Contract, direct a
change within the general scope of this Contract (which includes the Loral Space Payload) in
drawings, designs, specifications, method of shipment or packing, quantities of items to be
furnished, place of Delivery, postpone Delivery under a stop-work order (but not more than,
in the cumulative, eighteen (18) months), require additional Work, or direct the omission of
Work. In the event Purchaser directs a change, Contractor shall: (a) immediately proceed
with the Work as changed; and (b) within thirty (30) days of Purchaser’s direction, submit
to Purchaser a written proposal of the effect of such a change on the Firm Fixed Price,
specification, payment plan, time required for performance and/or other affected terms and
conditions, including any effect to the [***] (the “Proposal”).

Prior to directing such change, Purchaser may issue a request to Contractor for a Proposal.
Within thirty (30) days of receipt of such request for the Proposal, Contractor shall
provide Purchaser with the Proposal.

If any change directed by Purchaser causes an increase or decrease in costs of, or the time
required for, the performance of this Contract, and/or other terms and conditions, an
equitable adjustment shall be made in the Firm Fixed Price, Delivery schedule, and/or other
terms and conditions, this Contract shall be modified in writing accordingly. Firm Fixed
Price adjustments shall account only for the net impact on the Actual Costs incurred by
Contractor as a result of the change including a reasonable profit thereon not to exceed
[***] percent ([***]%). Such Actual Costs shall be determined in accordance with
Contractor’s standard accounting practices, and, if requested by Purchaser, Contractor will
provide reasonably detailed back-up data to support its claim for equitable adjustment. If
the cost of supplies or materials made obsolete or excess as a result of a change is
included in Contractor’s claim for adjustment, Purchaser shall have the right to prescribe
the manner of disposition of such supplies or materials. If Purchaser directs the omission
of Work and, as a result, it causes an increase in the cost of the remaining Work to be
performed hereunder, such increase in cost shall constitute an allowable element of
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Upon receipt of Contractor’s Proposal, the Parties shall commence good faith negotiations
concerning the appropriate equitable adjustment to the Contract. In the event that the
Parties have not reached agreement on the amount and manner of Contractor’s compensation
within sixty (60) days of Purchaser’s direction for change, Purchaser shall pay to
Contractor the agreed-upon portions of the proposed changes to the Firm Fixed Price and the
Payment Plan and Termination Liability Schedule, and, pending agreement or other resolution,
deposit the balance of the amount set forth in the Proposal with a recognized escrow agent
selected by Purchaser on standard terms. The Parties shall exert all good faith efforts to
reach resolution of the appropriate equitable adjustment within (30) days after Purchaser
makes such deposit into escrow.

This Article shall not apply to [***] set forth in Article [***].

 

			
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ARTICLE 17 —  FORCE MAJEURE

17.1 Force Majeure Defined

Contractor shall not be responsible for late Delivery or delay of the final completion date
or nonperformance of its contractual obligations due to Force Majeure. Force Majeure shall
be any event beyond the reasonable control of Contractor or its suppliers and subcontractors
and shall include but not be limited to: (1) acts of God; (2) acts of a public enemy; (3)
acts of a government in its sovereign capacity or subject to the DPAS regulations
(including any action or inaction affecting the import or export of items); (4) war and
warlike events; (5) catastrophic weather conditions such as hurricanes, tornadoes and
typhoons; (6) fire, earthquakes, floods, epidemics, quarantine restrictions; (7) actions
taken in response to GIDEP direction concerning technical problems generally affecting the
telecommunications industry; and (8) sabotage, riot and embargoes. (“Force Majeure”). For
an event to qualify for Force Majeure relief hereunder: (1) the event must be beyond the
control and without fault or negligence of a Party or its subcontractors hereunder; (2) the
resulting delay cannot be circumvented by Reasonable Efforts to establish work-around plans,
payment of expedited fees, alternate sources, or other means; and (3) Contractor must
provide Purchaser with written notice thereof as soon as possible but in no event later than
within ten (10) Business Days after Contractor’s performance hereunder is impacted by such
an event. Notwithstanding anything to the foregoing, any failure by a Subcontractor to meet
its obligations to Contractor, or any delay due to labor shortages, defective tooling,
transportation difficulties, equipment failure or breakdowns, lockouts, or inability to
obtain materials shall not constitute a Force Majeure event (except where such circumstance
is itself caused by a Force Majeure event), and shall not relieve Contractor from meeting
any of its obligations under this Contract. Contractor shall use Reasonable Efforts to
minimize the effect of any Force Majeure event. In the event Contractor claims a Force
Majeure event, Contractor’s written notice called for above shall include a detailed
description of the portion of the Work known to be affected by such delay, as well as a
proposed work-around plan reasonably satisfactory to Purchaser. The work-around plan shall:
(1) set forth Contractor’s Reasonable Efforts to mitigate the effect of any such Force
Majeure event and include a schedule for such mitigation; and (2) contain sufficient detail
for Purchaser to be able to evaluate such plan. If appropriate, such work-around plan shall
use work-around schedules, payment of expedited fees, twenty four (24) hour

      

			
	
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operations, and the use of alternate Subcontractors (to be approved by Purchaser if required
under this Contract). In the event of a Force Majeure event, the Delivery requirement shall
be extended for such period as is supported by the evidence provided; provided, however, the
occurrence of a Force Majeure event shall in no event entitle Contractor to an increase in
the price for the Work. Any adjustment of time appropriate under this Article shall be
formalized promptly by the execution of a mutually acceptable amendment to this Contract.

	17.2	 	Termination for Force Majeure
	 
	 	 	Purchaser may, upon written notice to Contractor, terminate this Contract immediately in
whole or in part if and when the cumulative aggregate of Force Majeure events exceeds twelve
(12) months. In the event of such a termination, Contractor shall submit a final invoice
to Purchaser within sixty (60) days after the termination date, which shall specify the
amount due to Contractor from Purchaser pursuant to this Article 17.2. Purchaser shall pay
such invoice, to the extent undisputed by Purchaser, within sixty (60) days after receipt.
Notwithstanding the foregoing, Purchaser may dispute the amount of such invoice by giving
Contractor notice of such dispute within sixty (60) days after receipt of the invoice.
Contractor’s invoice shall be in an amount equal to the sum of: (i) for each Milestone
accepted, the respective Milestone payment; and (ii) for each Milestone not accepted, a
percentage of the Milestone payment, where such percentage equals the percentage of the
Milestone completed, both less the sum of all amounts received by Contractor under this
Contract. Concurrently with such payment, Contractor shall promptly deliver in the manner
and to the extent directed by Purchaser all completed Work and work-in-progress to Purchaser
or Purchaser’s designee (including all applicable licenses and warranties). Alternatively,
Purchaser may request Contractor to purchase any such Work or work-in-progress that
Contractor believes can be re-used or use Reasonable Efforts to sell any such items, in
which case Contractor shall remit any sales proceeds to Purchaser, less, where Contractor
sells such items on behalf of Purchaser, a deduction for the Actual Costs of disposition
(without mark-up, margin or administrative charges) reasonably incurred by Contractor for
such efforts. Payment of the amount payable by Purchaser under this Article shall
constitute a total discharge of Purchaser’s liabilities to Contractor under this Contract.
If this Contract is terminated as provided in this Article, Contractor shall protect and
preserve property in the possession

      

			
	
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of Contractor in which Purchaser has an interest. Nothing in this paragraph shall limit
Purchaser’s rights to terminate this contract for convenience pursuant to Article 21.

      

			
	
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ARTICLE 18 — PURCHASER DELAY OF WORK

If the performance of all or any part of the Work required of Contractor under this Contract is
materially delayed or interrupted by Purchaser’s failure to perform its contractual obligations set
forth in paragraph 2.6 of the SOW within the time specified in this Contract or within a reasonable
time if no time is specified, or by an act or failure to act of Purchaser or its agents,
consultants or subcontractors (including, without limitation, the Launch Agency) that unreasonably
interferes with and/or materially delays Contractor’s performance of its obligations under this
Contract (each a “Purchaser Delay”), Purchaser shall be responsible for any additional Actual Costs
incurred by Contractor as a result thereof, and the Firm Fixed Price shall be modified accordingly.
In addition, Contractor shall be entitled to an equitable adjustment in performance requirements,
Delivery schedules, and any other terms of this Contract affected by such Purchaser Delay. The
Parties will formalize all such adjustments by executing an appropriate amendment to this Contract.
To qualify as a Purchaser Delay hereunder, (a) Contractor must notify Purchaser in writing of
any applicable Purchaser Delay no later than five (5) Business Days after Contractor becomes aware
of a possible impact due to the Purchaser Delay; and (b) Contractor must use Reasonable Efforts to
avoid and/or mitigate the effect of such Purchaser Delay.

      

			
	
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ARTICLE 19 —  INTELLECTUAL PROPERTY INDEMNITY

19.1 Indemnification

Contractor, at its own expense, hereby agrees to defend or, at Contractor’s sole option, to
settle, and to indemnify and hold harmless Purchaser, and its respective shareholders,
officers, directors and employees from and against any claim or suit based on an allegation
that Contractor’s performance of the Work hereunder or the manufacture of any Deliverable
Item or any part thereof or the normal intended use, lease or sale of any Deliverable Item
or any part thereof infringes any third party‘s Intellectual Property Right (“Intellectual
Property Claim”), and shall pay any royalties and other liabilities adjudicated (or provided
in settlement of the matter) to be owing to the third party claimant as well as costs and
expenses incurred in defending or settling such Intellectual Property Claim. Contractor’s
obligations under this Article 19.1 shall be subject to the conditions to indemnification
set forth in Article 20.3.

19.2 Infringing Equipment

If Contractor’s performance of the Work or the manufacture of any Deliverable Item or any
part thereof or the normal intended use, manufacture, lease sale, or other disposition of
any Deliverable Item or any part thereof under this Contract is enjoined or otherwise
prohibited as a result of an Intellectual Property Claim, Contractor shall, at its option
and expense (i) resolve the matter so that the injunction or prohibition no longer pertains,
(ii) procure for Purchaser the right to use the infringing item, and/or (iii) modify the
infringing item so that it becomes non-infringing while remaining in compliance with the
Performance Specification (as such may be modified or waived pursuant to Article 9.1.4 or
Article 11.8, as applicable). Purchaser shall reasonably cooperate with Contractor to
mitigate or remove any infringement. If Contractor is unable to accomplish (i), (ii) or
(iii) as stated above, Purchaser shall have the right to terminate this Contract, in whole
or in part, and receive [***].

19.3 Combinations and Modifications

Contractor shall have no liability under this Article 19 for any Intellectual Property Claim
to the extent arising from (i) use of any Deliverable Item in combination with other items
not provided, recommended, or approved by Contractor, or (ii) modifications of any

 

			
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Deliverable Item after Delivery by a person or entity other than Contractor unless
authorized by written directive or instructions furnished by Contractor to Purchaser under
this Contract or (iii) the manufacture, delivery or use of any Deliverable Item in
compliance with the design, specification or instructions of Purchaser.

19.4 Sole Remedies

The remedies set forth in this Article 19 are Purchaser’s sole and exclusive remedies for,
or related to, any Intellectual Property Claim.

      

			
	
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ARTICLE 20 —  INDEMNIFICATION

20.1 Contractor’s Indemnities

	 	a.	 	Contractor, at its own expense, shall defend, indemnify and hold harmless
Purchaser and its respective shareholders, directors, officers and employees, from and
against any losses, damages, and other liabilities adjudicated (or provided for in
settlement of the matter) to be owing to a third party claimant as well as costs and
expenses, including court costs and reasonable attorneys’ fees (collectively, “Losses”)
incurred in connection with any third party claim or suit alleging personal injury,
death, or damage to the property of a third party, but only if such Losses were caused
by, or resulted from, a negligent act or omission or willful misconduct of Contractor
or its employees or representatives. For the avoidance of doubt, the Satellite in any
stage of manufacture or operation shall not be considered as property subject to
coverage under this Article 20.1, and the CondoSat Associate is not considered a third
party subject to coverage under this Article 20.1.
	 
	 	b.	 	Contractor, at its own expense, shall defend, indemnify and hold harmless
Purchaser and its respective shareholders, directors, officers and employees, from and
against all range support and de-stacking charges to the extent not otherwise covered
under a Purchaser policy of insurance, if any (including without limitation charges
assessed to de-erect, place and maintain in storage, re-erect and re-process the Launch
Vehicle and Satellite and to re-integrate the Satellite), levied against Purchaser by
the Launch Agency for the Satellite due to Launch delays caused by Contractor and/or
its Subcontractors, agents or representatives at any tier, or any of them, up to a
cumulative maximum of [***] U.S. dollars (U.S. $[***]). Purchaser shall use Reasonable
Efforts to cause the Launch Agency not to incur range support costs or de-stack a
Launch Vehicle after Purchaser has been notified by Contractor that such a delay may
occur.
	 
	 	c.	 	Contractor, at its own expense, shall defend, indemnify and hold harmless
Purchaser and its respective shareholders, directors, officers and employees, from and
against all Losses in connection with claims arising out of, or relating to,
Contractor’s breaches of its obligations in Article 4.5.

 

			
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20.2 Purchaser’s Indemnity

Purchaser, at its own expense, shall defend, indemnify and hold harmless Contractor, and its
respective directors, officers and employees from and against any Losses incurred in
connection with any third party claim or suit alleging personal injury, death, or damage to
the property of a third party claimant, but only if such Losses were caused by, or resulted
from, negligent acts or omissions or willful misconduct of Purchaser or its employees or
representatives.

20.3 Conditions to Indemnification

The right to any indemnity specified in Article 19, Article 20.1 and Article 20.2 shall be
subject to the following conditions:

A. The Party seeking indemnification shall promptly advise the other Party in writing of
the filing of any suit or of any written claim upon receipt thereof and shall provide the
other Party, at its request and at the indemnifying Party’s expense, with copies of all
documentation and reasonable assistance relevant to such suit or claim. Notwithstanding
anything to the foregoing, a delay in providing written notice of a suit or written claim
shall not relieve a Party from its indemnity obligations unless such delay materially
prejudices a Party’s ability to defend the suit or claim.

B. The Party seeking indemnification shall not reach a compromise or settlement without the
prior written approval of the other Party, which approval shall not be unreasonably
withheld or delayed, provided that the indemnifying Party has agreed in writing and without
limitation to defend the applicable claim.

C. The indemnifying Party shall assume the defense of any claim or suit thereof and shall
satisfy any judgments rendered by a court of competent jurisdiction in such suits and shall
make all settlement payments. The Party seeking indemnification may participate in any
defense at its own expense, using counsel reasonably acceptable to the indemnifying Party.

      

			
	
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20.4 Waiver of Subrogation

Each Party shall use Reasonable Efforts to obtain a waiver of subrogation and release of any
right of recovery against the other Party and its Affiliates, contractors and subcontractors
at any tier (including suppliers of any kind) and their respective directors, officers,
employees, shareholders and agents, that are involved in the performance of this Contract
and from any insurer providing coverage for the risks subject to indemnification by the
insured Party under this Article 20.

      

			
	
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ARTICLE 21 — TERMINATION FOR CONVENIENCE

21.1 Reimbursement of Contractor

	 	21.1.1	 	Right to Terminate. Purchaser may terminate this Contract without cause, in
whole or in part, upon giving Contractor written notice; provided, however, Purchaser
may not terminate this Contract after Delivery of the Satellite in accordance with
Article 3.2. Upon receipt of Purchaser’s notice of termination for convenience,
Contractor shall: (i) stop the terminated Work under this Contract; (ii) place no
further orders or subcontracts for materials, services or facilities to the extent that
they relate to the performance of the terminated Work; (iii) terminate orders and
subcontracts to the extent that they relate to the performance of the terminated Work;
and (iv) settle all outstanding liabilities and all claims arising out of such
termination of orders and subcontracts.
	 
	 	21.1.2	 	Termination Liability. If Purchaser terminates Work pursuant to this Article
21, Contractor shall be entitled to the Actual Costs reasonably incurred by Contractor
with respect to: (a) terminated Work performed hereunder, plus a reasonable profit not
to exceed [***] percent on such Actual Costs; and (b) Actual Costs of termination and
settlement with all vendors and subcontractors (provided that Contractor shall
undertake Reasonable Efforts to minimize any such costs). In the event of termination
by the Purchaser of any of the Work, it is agreed that the termination charges shall be
negotiated pursuant to Article 21.1.3 below, but shall not exceed the lesser of: (i)
the Firm Fixed Price; or (ii) the termination liability amount (in the “ViaSat TL”
column) corresponding to the amount of the most recently completed Milestone on Exhibit
E, Payment Plan and Termination Liability Schedule, and in the case of both (i) and
(ii) less the amount of any payments made by Purchaser to Contractor pursuant to this
Contract. Notwithstanding the above, in the event of a termination in part as provided
above, if such termination causes an increase in the Actual Costs of performing the
remaining non-terminated Work, Contractor shall be entitled to a corresponding increase
(including a [***] percent profit) in the price of the non-terminated Work.
	 
	 	21.1.3.	 	Determination of Termination Liability. Contractor shall submit a proposal
to

 

			
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	 	 	Purchaser within sixty (60) days after the effectiveness of the termination, which proposal
shall specify the amount due to Contractor from Purchaser pursuant to this Article (the
“Final Statement”). The Final Statement shall be a complete statement of all amounts that
are due to Contractor hereunder as of the termination date for the terminated Work. In the
event that Purchaser is not in agreement with the Final Statement, the Parties shall
negotiate an agreed upon Final Statement. After agreeing on the Final Statement, Contractor
shall invoice Purchaser and Purchaser shall pay such invoice within thirty (30) days after
Purchaser’s receipt of the invoice.

	21.2	 	Disposition of Work
	 
	 	 	At the time of payment by Purchaser to Contractor of the termination liability amounts due
under this Article, subject to applicable U.S. Government export laws and license
conditions, Purchaser may direct Contractor to transfer to Purchaser, in the manner and to
the extent directed by Purchaser, title to and risk of loss and possession of any items
comprising the Work terminated (including all Work-in-progress, parts and materials, all
inventories, licenses, and associated warranties but not including any portion of the Work
to which Contractor would not have otherwise been obligated to transfer title hereunder had
the Contract been completed). Contractor shall, upon direction of Purchaser, protect and
preserve property at Purchaser’s expense in the possession of Contractor or its
Subcontractors in which Purchaser has an interest and shall facilitate access to and
possession by Purchaser of items comprising all or part of the Work terminated.
Alternatively, Purchaser may request Contractor to make Reasonable Efforts to re-use or sell
such items and, in the case of Work Contractor can re-use, Contractor shall remit the
mutually agreed cost of all such items to Purchaser, and, in the case of sold items, remit
any sales proceeds to Purchaser less a deduction for Actual Costs of disposition reasonably
incurred.

21.3 Sole Remedy

The remedy set forth in this Article shall be the sole remedy to which Contractor is
entitled for termination of Work under this Article. In the event of a termination for
convenience of the entire Contract, Payment of the amount payable by Purchaser to Contractor
pursuant to this Article shall constitute a total discharge of Purchaser’s liabilities to
Contractor under this Contract, except for those liabilities and/or obligations that survive
pursuant to Article 34.13.

      

			
	
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ARTICLE 22 — LIQUIDATED DAMAGES

	22.1	 	Liquidated Damages – Schedule/Delivery
	 
	 	 	The Parties acknowledge and agree that failure to complete the Milestones listed below in
this Article by the corresponding indicated dates may cause substantial financial loss to
Purchaser (the “Key Milestone Dates”). The Parties further acknowledge and agree that the
following liquidated damages represent a genuine and reasonable estimate of all losses that
would be suffered by Purchaser by reason of any such delay (which losses would be difficult
or impossible to calculate with certainty) in meeting the Key Milestone Dates.
	 
	 	 	For the purposes of this Article only, the Satellite will not be deemed “Delivered” if the
Satellite is placed into Ground Storage for reasons primarily due to the fault of
Contractor. In such case, the time period of such Ground Storage will be included for
purposes of calculation of liquidated damages for delay under this Article 22; provided that
Contractor shall not be liable for, or assessed any liquidated damages for, any period of
such Ground Storage associated with any failure by Purchaser to schedule with the Launch
Agency the next available Launch opportunity that is reasonably satisfactory to Purchaser
and which is consistent with the Satellite’s availability for Launch. If, as of the
Satellite Delivery dates specified in Article 3.1 (as such date may be extended as provided
in this Contract), the Launch Vehicle is unavailable for reasons that are not attributable
to Contractor, or if the Satellite is delivered for purposes of Ground Storage for reasons
that are not primarily due to the fault of Contractor, such that Purchaser is not materially
harmed or prejudiced by a delay in Satellite Delivery, then the assessment of liquidated
damages for failure to meet Key Milestone 4 (Satellite Delivery) shall be suspended/forgiven
on a day-to day basis commensurate with the period of unavailability of the Launch Vehicle
or storage after the Satellite Delivery date set forth in Article 3.1, as the case may be,
and no payment by Contractor will be required for such period.
	 
	 	 	In the event Contractor fails to meet the Key Milestones Dates set forth below, as such
Dates may be adjusted in accordance with this Contract, Contractor shall pay Purchaser, as
liquidated damages and not as a penalty, up to a cumulative maximum of [***] U.S. dollars
(U.S. $[***]), the following incremental amounts with the damages period

 

			
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	 	 	beginning on the day after the applicable Key Milestone Date (as such Date(s) may be
adjusted in accordance with this Contract):

	 	1.	 	Key Milestone 1: [***]

	 	 	 	 	 	 	 
	 	 	Daily Amount of	 	 	 	 
	Days Late	 	Liquidated Damages	 	Period Total	 	Cumulative Total
	1-30

	 	[***]
	 	[***]
	 	[***]
	31-60

	 	[***]
	 	[***]
	 	[***]
	61-90

	 	[***]
	 	[***]
	 	[***]

	 	2.	 	Key Milestone 2: [***]

	 	 	 	 	 	 	 
	 	 	Daily Amount of	 	 	 	 
	Days Late	 	Liquidated Damages	 	Period Total	 	Cumulative Total
	1-30

	 	[***]
	 	[***]
	 	[***]
	31-60

	 	[***]
	 	[***]
	 	[***]
	61-90

	 	[***]
	 	[***]
	 	[***]

	 	3.	 	Key Milestone 3: [***]

	 	 	 	 	 	 	 
	 	 	Daily Amount of	 	 	 	 
	Days Late	 	Liquidated Damages	 	Period Total	 	Cumulative Total
	1-30

	 	[***]
	 	[***]
	 	[***]
	31-60

	 	[***]
	 	[***]
	 	[***]
	61-90

	 	[***]
	 	[***]
	 	[***]

	 	4.	 	Key Milestone 4: [***]

	 	 	 	 	 	 	 
	 	 	Daily Amount of	 	 	 	 
	Days Late	 	Liquidated Damages	 	Period Total	 	Cumulative Total
	1-30

	 	[***]
	 	[***]
	 	[***]
	31-60

	 	[***]
	 	[***]
	 	[***]
	61-90

	 	[***]
	 	[***]
	 	[***]
	91-120

	 	[***]
	 	[***]
	 	[***]
	121-180

	 	[***]
	 	[***]
	 	[***]

	 	 	Any amounts due in accordance with this Article 22 shall be, at Purchaser’s election, either
(i) credited to Purchaser against any outstanding or future invoices hereunder or (ii) paid
by Contractor to Purchaser within thirty (30) days of issuance of an invoice from Purchaser.
Purchaser’s failure to invoice or offset shall not constitute a waiver by Purchaser with
respect to any amount of liquidated damages due and owing hereunder.

 

			
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	 	 	Notwithstanding the foregoing, in the event that liquidated damages are assessed against
Contractor pursuant to the foregoing for delays in meeting Key Milestone Date 1 ([***])
and/or Key Milestone Date 2 ([***]) and/or Key Milestone Date 3 ([***]), but nevertheless
Contractor Delivers the Satellite on or before the date set forth in Article 3.1 (as such
date may be adjusted in accordance with this Contract), [***] percent ([***]%) of the
liquidated damages assessed and paid pursuant to the foregoing shall be waived and forgiven,
and Purchaser shall reimburse Contractor for any such liquidated damages actually paid.
	 
	22.2	 	Liquidated Damages/Incentives Based Upon [***]

	 	22.2.1	 	[***]. Upon the earlier to occur of: (a) thirty-six (36) months
after EDC, or (b) the conclusion of SPSR, the [***] of the U.S. Beams plus the
Additional Beams (but not including the Canadian Beams) on the Satellite shall
again be calculated using the data from SPSR and [***] (and the resulting
calculated [***] being the “[***]”) that has been placed in the escrow
described in Article 22.2.2, and Contractor shall be entitled to an incentive
payment or shall incur liquidated damamages as provided in the [***] table set
forth below. In the event that the [***] is measured at thirty-six (36) months
rather than at the conclusion of SPSR, the calculation shall be done based upon
all available data and an engineering anaylsis performed in accordance with
good engineering practices applying standards generally applicable in the
aerospace industry. In determining [***], if Mexico service beams are included
as any of the Additional Beams, then [***] contributed by such beam(s) will be
considered in determining the [***]; provided that upon Purchaser obtaining all
necessary landing rights and any other rights necessary for Purchaser to offer
its intended service in Mexico, the [***] shall be recalculated and Contractor
shall receive payment for the remaining [***] of the Mexican [***] within
thirty (30) days of Purchaser’s receipt of an invoice therefor. Purchaser
shall have a good faith obligation to exert Reasonable Efforts to obtain such
landing and other rights to provide its intended service in Mexico.

 

			
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	 	 	 	Contractor acknowledges that the Satellite [***], not including the
Canadian Beams, will be calculated assuming the use of the [***]
frequencies and such [***] calculation shall not assume the use of the
[***] frequencies. If the [***] is different than the then-current [***]
Contractor shall be subject to liquidated damages or incentive payments as
follows (with such amounts to be pro-rated):

	 	 	 
	 	 	Liquidated Damages or Incentive
	[***]	 	Payment
	Greater than [***], and greater than
[***]

	 	Incentive payment of [***]
dollars (U.S. $[***]) for each
[***] (or portion thereof)
greater than [***] (up to
[***]), adjusted as follows: (i)
 [***] then the incentive
payment shall be decreased by
the amount of  [***]; or
(ii) [***] then the incentive
payment shall be increased by
the amount of [***]
	 
	 	 
	Greater than [***], but less than [***]

	 	Liquidated damages of [***] U.S.
dollars (U.S.$[***]) for each
[***] (or portion thereof)
difference between the [***] and
the [***]
	 
	 	 
	Greater than [***], and the same as [***]

	 	No incentive payments and no
liquidated damages

 

			
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	Less than [***], but greater than [***]

	 	Incentive payment of [***]
dollars (U.S. $[***]) for each
[***] (or portion thereof)
difference between the [***] and
[***]
	 
	 	 
	Less than [***], and less than [***]

	 	Liquidated damages of [***]
dollars (U.S. $[***]) for each
[***] (or portion thereof) less
than [***], adjusted as follows:
	 

	 	(i)  [***] then the liquidated
damages shall be increased by
the amount of  [***]; or
(ii) [***] then the liquidated
damages shall be reduced by the
amount of [***]
	 
	 	 
	Less than [***], and the same as [***]

	 	No liquidated damages and no
incentive payments

 

			
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	Less than [***] but greater than [***],
but [***] is greater than [***] or less
than [***]

	 	(i)[***] then the liquidated
damages shall be assessed in the
amount of [***] or
(ii) [***] then an incentive
payment shall be made in the
amount of  [***]

	 	 	For example, if [***] is [***] and [***] is [***], Contractor would be obligated to pay
Purchaser [***]. For another example, if [***] is [***] and [***] is [***], Purchaser would
be obligated to pay Contractor [***]. For another example,
if [***] is [***] and [***] is [***],
Contractor would be obligated to pay Purchaser liquidated damages equal to [***]. For
another example if [***] is [***] and [***] is [***], Purchaser would be obligated to pay
Contractor an incentive payment equal to [***]. For another example [***] is [***] and [***]
is [***], Contractor would be obligated to pay Purchaser liquidated damages equal to [***].
	 
	 	 	In the event that Contractor owes liquidated damages to Purchaser pursuant to the operation
of this Article 22.2.1, at Purchaser’s election, such liquidated damages shall either be (i)
credited to Purchaser against any outstanding or future invoices hereunder or (ii) paid by
Contractor to Purchaser within thirty (30) days of issuance of an invoice from Purchaser. In
the event that Purchaser owes Contractor an incentive payment pursuant to operation of this
Article 22.2.1, Purchaser shall make such payment to Contractor within thirty (30) days of
issuance of an invoice from Contractor.

	 	22.2.2	 	Escrow of [***]. For the purpose of ensuring that all [***] made hereunder
are done with the version of the [***] utilized to establish the [***], Purchaser
shall, no later than fifteen (15) days after establishing the [***] pursuant to Article
4.6,

 

			
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	 	 	 	place the [***] used to establish the [***] into escrow pursuant to the escrow
agreement attached hereto as Exhibit J. The version of the [***] placed into
escrow shall not be updated, unless otherwise agreed by the Parties. The Parties
shall share equally all costs associated with establishing and maintaining the
escrow.

	 	22.2.3.	 	Contractor’s Access to [***] and License. Subject to the terms of the
license set forth below, Contractor shall have reasonable access to Purchaser’s [***]
until the determination of [***] as provided in Article 22.2.2 above (at which time the
license described in this Paragraph shall also automatically terminate). Purchaser
hereby grants to Contractor a non-exclusive, non-transferable, non-assignable,
non-sublicensable, revocable, limited license to possess and use a single copy of the
[***] during the time period described above solely for purposes of Contractor’s
measurement of the [***] of the Satellite to be provided under this Contract.
Contractor agrees that, upon termination of the license, Contractor will either destroy
(or permanently erase) all copies of the [***], or return the original [***] to
Purchaser. Purchaser makes no warranties, express or implied, with respect to the
[***].
	 
	 	22.2.4.	 	Limitations on Use. Contractor acknowledges that Purchaser retains
exclusive ownership of all Intellectual Property Rights in Purchaser’s [***].
Contractor is not granted any rights in Purchaser’s [***] other than the license rights
expressly set forth above. Contractor agrees that it will not modify, adapt, create a
derivative work of, merge, translate, decompile, disassemble, or otherwise reverse
engineer Purchaser’s [***].

	22.3	 	Remedy
	 
	 	 	Contractor and Purchaser agree that the actual damages that Purchaser would suffer as a
result of the late Delivery of the Satellite [***] are, in the nature of this transaction,
difficult and impracticable to fix, that the liquidated damages set forth herein are
reasonable amounts to compensate Purchaser for such failures and delays, and that the
payment of liquidated damages is in lieu of payment of actual damages for such failures and
delays. Such liquidated damages shall be Purchaser’s sole and exclusive remedy and
compensation for Contractor delays with respect to late Delivery of Deliverable

 

			
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	 	 	 	Items [***], provided that the [***] does not drop below [***]; and further provided,
however, Purchaser retains all rights and remedies under Article 17.2 regarding termination
for Force Majeure, Article 21 regarding termination for convenience and Article 23 regarding
termination for default. Contractor hereby waives, to the extent permitted by applicable
law, any defense as to the validity of any liquidated damages in this Contract on the
grounds that such liquidated damages are void as penalties.
	 
	 	22.4	 	Incentives for Early Delivery 
	 
	 	 	 	If Delivery of a Satellite occurs before the date specified in Article 3.1 (as such date may
be extended as provided in this Contract), then Purchaser shall pay Contractor, within
thirty (30) days of receipt of invoice, an amount not to exceed [***] U.S. dollars (U.S.
$[***]), as specified below, as an early delivery incentive for Contractor’s early Delivery:

	 	 	 	 	 	 	 
	 	 	Daily Amount of	 	 	 	 
	Days Early	 	Incentives	 	Period Total	 	Cumulative Total
	1-30

	 	[***]
	 	[***]
	 	[***]
	31-60

	 	[***]
	 	[***]
	 	[***]
	61-90

	 	[***]
	 	[***]
	 	[***]
	91-120

	 	[***]
	 	[***]
	 	[***]
	121-180

	 	[***]
	 	[***]
	 	[***]

 

			
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ARTICLE 23 —  TERMINATION FOR DEFAULT

	23.1	 	Purchaser Rights of Termination

	 	23.1.1	 	Right to Terminate. Subject to Article 17, Article 18 and Article 23.1.4
below, Purchaser may terminate this Contract in whole or in part by written notice to
Contractor if: (i) Contractor fails to Deliver the Satellite within the time specified
therefor in Article 3.1 (as such date may be extended in accordance with the terms of
this Contract) plus [***] days (or such longer time as may be agreed to in writing by
Purchaser); (ii) Contractor fails to make progress (including due to failure to meet
specification requirements) so as to endanger performance of this Contract that it is
reasonably likely Contractor will fail to Deliver the Satellite within the time period
set forth in subclause (i) immediately above, and fails, within [***] days (or such
longer period as may be agreed to in writing by Purchaser) after receipt from Purchaser
of written notice thereof, to cure such breach or correct such failure; or (iii) except
for failures covered by items (i) and (ii) above, Contractor fails to perform any
material provision of this Contract and does not correct such failure within a period
of [***] days (or such longer period as Purchaser may authorize in writing) after
receipt of notice from Purchaser specifying such failure.
	 
	 	23.1.2	 	Termination Liability. In the event of termination pursuant to this Article
23.1, Purchaser shall be entitled to: (i) a refund by Contractor of all payments made
by Purchaser to Contractor for the terminated Work plus interest thereon at the
interest rate stipulated in Article 5.3.1 hereof from the date payment was received by
Contractor to the date the refund is made to Purchaser; and/or (ii) to retain and/or
obtain Work as set forth in Article 23.1.3, provided that Purchaser shall remain liable
for payment of all amounts for such Work as set forth in Article 23.1.3. In addition,
Purchaser shall be entitled to any liquidated damages for delay accrued pursuant to
Article 22 prior to the effective date of termination. In addition, Purchaser shall be
entitled to [***]. Contractor shall pay the foregoing amounts no later than thirty
(30) days after Contractor’s receipt of Purchaser’s written notice requesting such
amounts pursuant to subclause (i) above.

 

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	 	 	 	Payment of such amounts, or transfer of Work as set forth in Article 23.1.3, shall
be Purchaser’s sole and exclusive remedy in the event of a termination for default.

	 	23.1.3	 	Contractor’s Reimbursement for Terminated Work. In the event Purchaser
terminates the Contract pursuant to this Article 23.1, Purchaser shall have the option
to obtain title to the Deliverable Items provided for under this Contract or associated
Work-in-progress (but not including Deliverable Data) or any other portion of the Work
to which Contractor would not have otherwise been obligated to transfer title hereunder
had the Contract been completed, including, if requested by Purchaser in writing (and
subject to any approvals required by the associated Subcontractors and receipt by
Contractor of associated reasonable releases and indemnifications in favor of
Contractor), assignment of Subcontracts, subject to payment: (i) at the price set forth
in this Contract for delivered items for which an itemized price is set forth herein
and (ii) at the Actual Costs incurred by Contractor for (a) such items for which no
itemized price is set forth herein and (b) partially completed items or services and
Work-in-progress. This sum shall be offset by amounts paid by Purchaser and received
by Contractor for Deliverable Items and Work-in-progress retained by Purchaser, and
Contractor shall protect and preserve property in the possession of Contractor in which
Purchaser has an interest. Purchaser shall pay amounts due hereunder no later than
sixty (60) days after issuance of its written notice pursuant to Article 23.1.2. Upon
settlement and payment of amounts due hereunder, Contractor, subject to applicable U.S.
Government export control laws, shall promptly, at Contractor’s or Subcontractor’s
plant, transfer title and risk of loss to Purchaser for the applicable Deliverable
Items and Work-in-progress.
	 
	 	23.1.4	 	Special Provision Limiting Purchaser’s Remedies. Purchaser’s sole and
exclusive remedy with respect to delays in Delivery shall be as specified in Article 22
and this Article 23.1. Purchaser shall have no right to terminate this Contract
pursuant to this Article 23.1 above on or after Intentional Ignition (unless and to the
extent of a Terminated Ignition pursuant to Article 12.1).
	 
	 	23.1.5	 	Disposition of the Work. Except for items obtained by Purchaser as set forth
in Article 23.1.3, Contractor shall retain title to any and all Work, Work-in-progress,

			
	 	 	 
	
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	 	 	 	parts or other material, inventories, and any associated warranties, and any
subcontracted items Contractor has specifically produced, acquired, or subcontracted
for in accordance with this Contract.

	 	23.1.6	 	Invalid Default Termination. If, after termination pursuant to this Article
23.1, it is finally determined pursuant to Article 25 or written agreement of Purchaser
that Contractor was not in default under Article 23.1.1, or that the default was
excusable under the Contract, the rights and obligations of the Parties shall be the
same as if the termination had occurred under Article 21.

	23.2	 	Contractor Rights of Termination

	 	23.2.1	 	Right to Terminate. Contractor may terminate this Contract upon written
notice to Purchaser if Purchaser fails to make any payment required under this
Contract, and Purchaser shall fail to cure such failure within thirty (30) days after
receiving written notice thereof from Contractor (or such longer period as may be
agreed to in writing by Contractor). For purposes of clarification, Contractor shall
not be entitled to terminate this Contract for Purchaser’s failure to make payment
hereunder to the extent Purchaser has disputed such payment in good faith pursuant to
Article 5.6.
	 
	 	23.2.2	 	Termination Liability. In the event of termination pursuant to this Article
23.2, Contractor shall be paid as if such termination were for convenience pursuant to
Article 21. Further, if Purchaser’s failure to perform is a failure to pay Contractor
invoiced amounts when due, Contractor shall be entitled to late payment interest
pursuant to Article 5.3. Payment of the total amounts payable by Purchaser pursuant to
this Article 23.2.2 shall constitute a total discharge of Purchaser’s liabilities to
Contractor for termination pursuant to this Article 23.2.
	 
	 	23.2.3	 	Disposition of the Work. Upon completion of all payments to Contractor in
accordance with this Article 23.2, Purchaser may, subject to Article 7 hereof, require
Contractor to transfer to Purchaser in the manner and to the extent directed by
Purchaser, title to and possession of any items comprising all or any part of the Work
terminated (including all Work-in-progress, but not including any
Deliverable Data or any other portion of the Work
to which Contractor would not have otherwise been obligated to transfer title hereunder
had the Contract been completed) not used or disposed of by Contractor pursuant to the
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	 	 	 	sentence. Contractor shall, upon direction of Purchaser, protect and preserve such
items at Purchaser’s expense in the possession of Contractor or its Subcontractors
and shall facilitate access to and possession by Purchaser of items comprising all
or part of the Work terminated. Alternatively, Purchaser may request Contractor to
undertake Reasonable Efforts to re-use or sell such items and, in the case of Work
Contractor can re-use, remit the agreed-upon cost of such items to Purchaser, and,
in the case of sold items, remit any sales proceeds to Purchaser less a deduction
for Actual Costs of disposition reasonably incurred by Contractor for such efforts.
Contractor shall, if requested by Purchaser in writing, assign to Purchaser or its
designee such Subcontracts as requested by Purchaser (subject to any approvals
required by the associated Subcontractors and receipt by Contractor of associated
reasonable releases and indemnifications in favor of Contractor).
	 
	 	23.2.4	 	Invalid Default Termination. If, after termination pursuant to this Article
23.2, it is finally determined pursuant to Article 25 or written agreement of
Contractor that Purchaser was not in default under Article 23.2.1, Contractor shall be
liable to Purchaser for direct damages resulting from such termination of this Contract
(in no event exceeding amounts payable to Purchaser pursuant to Article 23.1, and
subject to the limitation of liability set forth in Article 27).

			
	 	 	 
	
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ARTICLE 24 — RESERVED

[THIS SPACE INTENTIONALLY LEFT BLANK]

			
	 	 	 
	
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ARTICLE 25 — DISPUTE RESOLUTION

Any dispute, claim, or controversy between the Parties arising out of or relating to this Contract
(“Dispute”), including any Dispute with respect to the interpretation, performance, termination, or
breach of this Contract or any provision thereof shall be resolved as provided in this Article 25.

	25.1	 	Informal Dispute Resolution

	 	 	 	Prior to the initiation of formal dispute resolution procedures, the Parties shall first
attempt to resolve their Dispute informally, in a timely and cost-effective manner, as
follows:

	 	A.	 	If, during the course of the Work, a Party believes it has a Dispute with
the other Party, the disputing Party shall give written notice thereof, which notice
will describe the Dispute and may recommend corrective action to be taken by the
other Party. Contractor’s program manager shall promptly consult with Purchaser’s
contract manager in an effort to reach an agreement to resolve the Dispute.
	 
	 	B	 	In the event that agreement cannot be reached within ten (10) days of receipt
of written notice, either Party may request that the Dispute be escalated, and the
respective positions of the Parties shall be forwarded to an executive level higher
than that under Paragraph A above for resolution of the Dispute.
	 
	 	C.	 	In the event agreement cannot be reached within twenty (20) days of receipt of
written notice, either Party may request that the Dispute be escalated, and the
respective positions of the Parties shall be forwarded to the Chief Executive Officer
(CEO) or equivalent of each Party for resolution of the Dispute.
	 
	 	D.	 	In the event agreement cannot be reached as provided in Paragraphs A, B, or C
above within a total of sixty (60) days after receipt of the written notice described
in Paragraph A above either Party may proceed in accordance with Article 25.2.

	 	 	 	Each phase of the dispute resolution process shall require the Parties to meet in person at
least one time.

			
	 	 	 
	
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	25.2	 	Litigation

	 	 	 	If any Dispute arising between the Parties cannot be settled pursuant to Article 25.1 (or,
if a Party makes a good faith determination that (i) a breach by the other Party is such
that a temporary restraining order or other preliminary injunctive relief to enforce its
rights or the other Party’s obligations under the provisions of this Contract is necessary
or (ii) litigation is appropriate to avoid the expiration of an applicable limitations
period or to preserve a superior position with respect to creditors), either Party shall
have the right to bring suit.
	 
	 	 	 	Any suit brought shall be brought in any court of competent jurisdiction in the state of
California, and the Parties hereby waive any objection to that venue and that court’s
exercise of personal jurisdiction over the case. The Parties hereby irrevocably consent to
the exercise of personal jurisdiction by the state and federal courts in the State of
California concerning any Dispute between the Parties. If, for any reason, neither the
state nor federal courts in California will exercise jurisdiction over the Dispute, then
litigation as permitted herein may be brought in any court of competent jurisdiction in the
United States of America.
	 
	 	 	 	If a dispute arises as to whether or not a Party has committed or acted with gross
negligence or willful misconduct, that issue alone shall be resolved by the court without a
jury, and the court shall resolve such issue by applying the laws of the State of New York
without regard to its conflict of law rules. THE PARTIES EXPRESSLY WAIVE THEIR RIGHT TO A
JURY IN CONNECTION WITH SUCH DISPUTE.
	 
	 	 	 	Nothing in this Contract precludes a Party that prevails on any claim from initiating
litigation in any appropriate forum to enter or enforce a judgment based on the court’s
award on that claim.
	 
	 	 	 	Pending final resolution of any dispute (including the informal dispute resolution process
and litigation), Contractor shall, unless otherwise directed by Purchaser in writing,
perform all its obligations under this Contract, provided that Purchaser continues to make
undisputed payments as they come due. For purposes of clarification, Contractor shall not
be entitled to stop work under this Contract for Purchaser’s failure to make payment
hereunder to the extent Purchaser has disputed such payments in good faith pursuant to
Article 5.6. Without prejudice to Purchaser’s other rights and remedies set

			
	 	 	 
	
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	 	 	 	forth in this Contract, in the event that Contractor stops work (unless otherwise permitted
under this Contract) which results in delays in Delivery, [***].

 

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ARTICLE 26 — INTER-PARTY WAIVER OF LIABILITY FOR A LAUNCH

	26.1	 	Launch Services Agreement Inter-Party Waiver of Liability

	 	26.1.1	 	Inter-Party Waiver. Each Party hereby agrees to be bound by the no-fault,
no-subrogation inter-party waiver of liability and related indemnity provisions
required by the Launch Services Agreement with respect to the Launch and to cause their
respective contractors and Subcontractors at any tier (including suppliers of any kind)
that are involved in the performance of this Contract and any other person having an
interest in the Satellite or any Transponder thereon (including customers of Purchaser)
to accede to such waiver and indemnity, which in every case shall include claims
against the Launch Agency, either Party and their respective contractors and
subcontractors at any tier (including suppliers of any kind) that are involved in the
performance of this Contract. The Parties shall execute and deliver any instrument
that may be reasonably required by the Launch Agency to evidence their respective
agreements to be bound by such waivers.
	 
	 	26.1.2	 	Waiver of Subrogation. The Parties also shall use Reasonable Efforts to
obtain from their respective insurers, and shall require their respective contractors
and subcontractors at any tier (including suppliers of any kind) that are involved in
the performance of this Contract and any other person having an interest in the
Satellite or any Transponder thereon (including non-consumer customers of Purchaser),
to use Reasonable Efforts to obtain from their respective insurers, an express waiver
of such insurers’ rights of subrogation with respect to any and all claims that have
been waived pursuant to this Article 26.

	26.2	 	Indemnity Related to the Inter-Party Waiver of Liability

	 	 	 	Each Party shall indemnify against and hold harmless the other Party and/or its contractors
and Subcontractors at any tier (including suppliers of any kind) that are involved in the
performance of this Contract, from and against any claim made by the indemnifying Party
and/or any of its contractors and Subcontractors (including suppliers of any kind) that are
involved in the performance of the Contract, or by any person having an interest in the
Satellite or Transponder thereon (including customers of Purchaser), or by insurer(s)
identified in Article 26.1, resulting from the failure of the

			
	 	 	 
	
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	 	 	 	indemnifying Party to waive any liability against, or to cause any other person the
indemnifying Party is obligated to cause to waive any liability against, the Launch Agency,
the other Party or either of their contractors and subcontractors at any tier (including
suppliers of any kind) involved in the performance of this Contract. The Parties shall
execute and deliver any instrument that may be reasonably required by the Launch Agency to
evidence their respective agreements to be bound by such indemnifications.

	26.3	 	Survival of Obligations
	 
	 	 	The waiver, indemnification and hold harmless obligations provided in this Article 26 shall
survive and remain in full force and effect, notwithstanding the expiration or termination
of this Contract.
	 
	26.4	 	Third Party Claims Coverage
	 
	 	 	With respect to third party liability for death or bodily injury of for the loss or damage
to property that may be sustained, and any consequences thereof, resulting from, or arising
in connection with the performance of the Launch Services for the Satellite, Purchaser shall
use Reasonable Efforts to require the Launch Agency to include Contractor (and any other
party or entity as Contractor may request) as an additional named insured under all policies
of third party claims coverage (or any other program of third party claims coverage,
including coverage provided by agencies of any government) that are provided or required to
be provided by or through the Launch Agency.

			
	 	 	 
	
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ARTICLE 27 — LIMITATION OF LIABILITY

	27.1	 	 Limitation
	 
	 	 	EXCEPT AS PROVIDED OTHERWISE IN ARTICLES 27.3 AND 27.4, NEITHER PARTY SHALL BE LIABLE
DIRECTLY OR INDIRECTLY TO THE OTHER PARTY, TO ITS OFFICERS, DIRECTORS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS AT ANY TIER (INCLUDING SUPPLIERS OF ANY KIND), AGENTS OR
CUSTOMERS, TO ITS PERMITTED ASSIGNEES OR SUCCESSOR OWNERS OF ANY SATELLITE OR OTHER
DELIVERABLE ITEM OR TO ANY OTHER PERSON CLAIMING BY OR THROUGH SUCH OTHER PARTY, FOR ANY
AMOUNTS REPRESENTING LOSS OF PROFITS, LOSS OF BUSINESS, OR INDIRECT, SPECIAL, INCIDENTAL,
EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOST PROFITS,
LOST REVENUES OR COSTS OF RECOVERING A SATELLITE POST-LAUNCH, ARISING FROM OR RELATING TO
THE PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT OR ANY ACTS OR OMISSIONS ASSOCIATED
THEREWITH OR RELATED TO THE USE OF ANY ITEMS DELIVERED OR SERVICES FURNISHED HEREUNDER,
WHETHER THE BASIS OF SUCH LIABILITY IS BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE OF ANY
TYPE (EXCEPT AS PROVIDED IN ARTICLE 27.3 BELOW) AND STRICT LIABILITY), STATUTE OR OTHER
LEGAL OR EQUITABLE THEORY.
	 
	27.2	 	Liability
	 
	 	 	EXCEPT AS PROVIDED OTHERWISE IN ARTICLES 27.3 AND 27.4, IN NO EVENT WILL CONTRACTOR’S TOTAL
LIABILITY ARISING OUT OF OR RELATED TO THIS CONTRACT EXCEED THE SUM OF: (i) ALL PAYMENTS
PREVIOUSLY MADE TO CONTRACTOR UNDER THIS CONTRACT; AND (ii) ANY LIQUIDATED DAMAGES ACTUALLY
INCURRED PURSUANT TO ARTICLE 22.1; AND (iii) [***]. EXCEPT AS PROVIDED OTHERWISE IN ARTICLE
27.3, IN NO EVENT WILL PURCHASER’S TOTAL LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS
CONTRACT EXCEED [***].

 

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	27.3	 	Gross Negligence and Willful Misconduct
	 
	 	 	ARTICLE 27.1 SHALL NOT APPLY IN THE EVENT OF A PARTY’S GROSS NEGLIGENCE AND/OR WILLFUL
MISCONDUCT IN WHICH CASE SUCH PARTY MAY BE LIABLE AND RESPONSIBLE FOR AMOUNTS REPRESENTING
LOST PROFITS, LOSS OF BUSINESS AND THE OTHER DAMAGES DESCRIBED IN ARTICLE 27.1 UP TO AN
AMOUNT NOT TO EXCEED IN THE CUMULATIVE MAXIMUM, [***] UNITED STATES DOLLARS (US$[***]). THE
FOREGOING AMOUNT SHALL BE IN EXCESS OF ANY LIABILITIES SUBJECT TO ARTICLE 27.2.
	 
	27.4	 	Indemnities
	 
	 	 	ARTICLES 27.1 AND 27.2 SHALL NOT APPLY TO LIABILITY ARISING UNDER ARTICLES 19 (INTELLECTUAL
PROPERTY INDEMNITY), 20 (INDEMNIFICATION) (AND IN BOTH CASES ONLY AS TO LIABILITIES
ADJUDICATED (OR PROVIDED IN SETTLEMENT OF THE MATTER) TO BE OWING TO THE THIRD PARTY
CLAIMANT AS WELL AS COSTS AND EXPENSES INCURRED IN DEFENDING OR SETTLING SUCH CLAIMS), AND
26.2 (INDEMNITY RELATED TO THE INTER-PARTY WAIVER OF LIABILITY). NOTHING IN THIS ARTICLE 27
SHALL BE DEEMED AS A WAIVER OF ANY RIGHTS OF EITHER PARTY UNDER THE NONDISCLOSURE AGREEMENT
DATED MARCH 8, 2006 (AS AMENDED ON APRIL 27, 2007).
	 
	27.5	 	Survival
	 
	 	 	THIS ARTICLE 27 SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT FOR WHATEVER
CAUSE.

 

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ARTICLE 28 — DISCLOSURE AND HANDLING OF PROPRIETARY INFORMATION

	28.1	 	Definition of Proprietary Information
	 
	 	 	For the purpose of this Contract, “Proprietary Information” means all confidential and
proprietary information (other than Deliverable Data, which is subject to the provisions of
Article 39) in whatever form transmitted, that is disclosed or made available directly or
indirectly by such Party (hereinafter referred to as the “disclosing party”) to the other
Party hereto (hereinafter referred to as the “receiving party”) and: (i) is identified as
proprietary by means of a written legend thereon or (ii) if disclosed orally, is identified
as proprietary at the time of initial disclosure and then summarized in a written document,
with the Proprietary Information specifically identified, that is supplied to the receiving
party within ten (10) days of initial disclosure. Notes and memoranda prepared by the
receiving party (but not the receiving party’s attorneys) that include the disclosing
party’s Proprietary Information shall be considered the disclosing party’s Proprietary
Information for all purposes of this Article. Proprietary Information shall not include any
information disclosed by a Party that (i) is already known to the receiving party at the
time of its disclosure, as evidenced by written records of the receiving party, without an
obligation of confidentiality at the time of disclosure; (ii) is or becomes publicly known
through no wrongful act of the receiving party; (iii) is independently developed by the
receiving party as evidenced by written records of the receiving party; or (iv) is
rightfully obtained by the receiving party from any third party without restriction and
without breach of any confidentiality obligation by such third party.
	 
	28.2	 	Terms for Handling and Use of Proprietary Information
	 
	 	 	Subject to Article 28.1, for a period of ten (10) years after receipt of any Proprietary
Information, the receiving party shall not disclose Proprietary Information that it obtains
from the disclosing party to any person or entity except its employees, Affiliates (who are
not direct competitors of the disclosing party), attorneys, agents, Financing Entities,
potential and actual joint venture partners, and consultants (who, in all cases, are not
direct competitors of the disclosing party) who have a need to know, who have been informed
of and have agreed in writing (or are otherwise subject to confidentiality obligations
consistent with the obligations set forth herein) to abide by the receiving party’s
obligations under this Article 28, and who are authorized pursuant to applicable U.S. export
control laws and licenses or other approvals to receive such information. The receiving
party shall use not less than the same degree of care to avoid disclosure

			
	 	 	 
	
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	 	 	 	of such Proprietary Information as it uses for its own Proprietary Information of like
importance; but in no event less than a reasonable degree of care. Proprietary Information
shall be used only for the purpose of performing the obligations under this Contract, or as
the disclosing party otherwise authorizes in writing.

	28.3	 	Legally Required Disclosures
	 
	 	 	Notwithstanding the foregoing, in the event that the receiving party becomes legally
compelled to disclose Proprietary Information of the disclosing party (including disclosures
necessary or in good faith determined to be reasonably necessary under the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as amended), the receiving party
shall, to the extent practicable under the circumstances, provide the disclosing party with
written notice thereof so that the disclosing party may seek a protective order or other
appropriate remedy, or to allow the disclosing party to redact such portions of the
Proprietary Information as the disclosing party deems appropriate. In any such event, the
receiving party will disclose only such information as is legally required, and will
cooperate with the disclosing party (at the disclosing party’s expense) to obtain
proprietary treatment for any Proprietary Information being disclosed.
	 
	28.4	 	Return of Confidential Information
	 
	 	 	Upon the request of the Party having proprietary rights to Proprietary Information, the
other Party in possession of such Proprietary Information shall promptly return such
Proprietary Information (and any copies, extracts, and summaries thereof) to the requesting
Party, or, with the requesting Party’s written consent, shall promptly destroy such
materials (and any copies, extracts, and summaries thereof), except for one (1) copy which
may be retained for legal archive purposes, and shall further provide the requesting Party
with written confirmation of same; provided, however, where both Parties have proprietary
rights in the same Proprietary Information, a Party shall not be required to return such
information to the other Party. Nothing in this Article 28.4 shall require a Party to
return or destroy computer files or records containing Proprietary Information but only if
and to the extent such files or records were created in the ordinary course of business
pursuant to such Party’s automatic archiving and back-up procedures for computerized or
word-processed records. The rights and obligations of the Parties under this Article shall
survive any return or destruction of Proprietary Information.

			
	 	 	 
	
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	28.5	 	No License 
	 
	 	 	Except as expressly provided in this Contract, nothing in this Contract shall be construed
as granting the receiving party whether by implication, estoppel, or otherwise, any license
or any right to use any Proprietary Information received from the disclosing party, or use
any patent, trademark, or copyright now or hereafter owned or controlled by the disclosing
party.
	 
	28.6	 	Injunctive Relief
	 
	 	 	The Parties agree that, in addition to any other rights and remedies that exist under this
Contract, in the event of a breach or threatened breach of this Article, the disclosing
party shall be entitled to seek an injunction prohibiting any such breach. The Parties
acknowledge that Proprietary Information is valuable and unique and that disclosure in
breach of this Article may result in irreparable injury to the disclosing party.

			
	 	 	 
	
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ARTICLE 29 — CONTRACT TECHNOLOGY ESCROW

	29.1	 	Segregation of Contract Technology/Escrow.

	 	29.1.1.	 	No later than 30 days after completion of PDR, the Parties shall enter into an
escrow agreement (the “Escrow Agreement”) in the form attached hereto as Exhibit G.
Pursuant to the terms of the Escrow Agreement, Contractor shall deliver to the escrow
agent copies of all Contract Technology, and shall diligently keep such escrow updated,
no less frequently than on a quarterly basis. Purchaser shall pay all costs associated
with establishing and maintaining the Escrow Agreement, and Contractor, at no charge to
Purchaser, shall be responsible for gathering and depositing the Contract Technology
into the escrow. Purchaser shall be responsible for all escrow agent fees incurred in
connection with the withdrawal of Contract Technology under the Escrow Agreement, once
established.
	 
	 	29.1.2	 	The Escrow Agreement will not permit Purchaser’s access to the Contract Technology
except if:

	 	(i)	 	Contractor becomes insolvent;
	 
	 	(ii)	 	Contractor makes a general assignment for the benefit of
creditors;
	 
	 	(iii)	 	Contractor files a voluntary petition in bankruptcy or an
involuntary petition in bankruptcy is filed against Contractor, which petition
is not dismissed within 30 days;
	 
	 	(iv)	 	Contractor suffers or permits the appointment of a receiver for
its business;
	 
	 	(v)	 	Contractor becomes subject to any proceeding under any
bankruptcy or insolvency law;
	 
	 	(vi)	 	Contractor has liquidated its business;
	 
	 	(vii)	 	Contractor ceases doing business without providing for a
successor; or
	 
	 	(viii)	 	Contractor is unwilling or unable to continue to perform its obligations
under this Contract.

	 	 	 	In the cases of items (i) through (v), Purchaser shall only be able to access the Contract
Technology if Contractor is unwilling or unable to continue to perform its obligations under
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	 	29.1.3	 	Contractor represents and warrants that the Contract Technology kept at Contractor’s
facilities and delivered into escrow under the Escrow Agreement:

	 	(i)	 	will comprise all of the Contract Technology
(including the source code language statement for any and all
applicable Software) to the extent its retention is consistent with
Contractor’s normal retention policies;
	 
	 	(i)	 	will be kept current, including all updates
needed to maintain compliance with the terms of this Contract; and
	 
	 	(ii)	 	will be in a form suitable for reproduction by
Purchaser.

			
	 	 	 
	
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ARTICLE 30 — PUBLIC RELEASE OF INFORMATION

	30.1	 	Generally
	 
	 	 	Either Party intending to disclose publicly, whether through the issuance of news releases,
articles, brochures, advertisements, prepared speeches or other information releases,
information concerning the financial details of this Contract or Proprietary Information of
the other Party regarding the Work must obtain the prior written approval of the other Party
with respect to the content and timing of such issuance, which approval shall not be
unreasonably denied, delayed or withheld.
	 
	30.2	 	Exceptions 
	 
	 	 	The obligations set forth in Article 30.1 shall not apply to the following:

	 	30.2.1	 	information that is publicly available from any governmental agency or that is or
otherwise becomes publicly available without breach of this Contract;
	 
	 	30.2.2	 	internal publications or releases which are clearly marked or otherwise identifiable
as not intended for the public at large; and
	 
	 	30.2.3	 	disclosure required by applicable law or regulation, including without limitation,
disclosure required by the Securities and Exchange Commission or the Nasdaq Stock
Market or any other securities exchange on which the securities of a Party or its
Affiliate is then trading.

			
	 	 	 
	
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ARTICLE 31 —  NOTICES

	31.1	 	Written Notification

Each contractual or legal notice or correspondence required or permitted to be given or made
hereunder shall be in writing (except where oral notice is specifically authorized) to the
respective addresses, facsimile and telephone numbers and to the attention of the individuals set
forth below, and any such notice or correspondence shall be deemed given on the earlier to occur of
(i) actual receipt, irrespective of whether sent by post, facsimile transmission, overnight courier
or other method, and (ii) seven (7) days after mailing by registered or certified mail, return
receipt requested, postage prepaid.

	 	 	 	 	 
	 	 	In the case of Purchaser:
	 

	 	 	 	ViaSat, Inc.
	 

	 	 	 	6155 El Camino Real
	 

	 	 	 	Carlsbad, California 92009
	 

	 	 	 	Attn: David Abrahamian
	 

	 	 	 	Telephone No.: 760-476-3053
	 

	 	 	 	Facsimile No.: 760-795-1045
	 
	 	 	 	 
	 

	 	 	 	With a separately delivered copy to:
	 

	 	 	 	ViaSat, Inc.
	 

	 	 	 	6155 El Camino Real
	 

	 	 	 	Carlsbad, California 92009
	 

	 	 	 	Attn: Jared Flinn
	 

	 	 	 	Telphone No.: 760-476-2672
	 

	 	 	 	Facsimile No.: 760-476-4830
	 
	 	 	 	 
	 	 	In the case of Contractor:
	 
	 	 	 	 
	 

	 	 	 	Space Systems/Loral, Inc.
	 

	 	 	 	3825 Fabian Way M/S G-44
	 

	 	 	 	Palo Alto, CA 94303-4697
	 

	 	 	 	Attn.: Contract Manager, Nick Pound
	 

	 	 	 	Telephone No.: 650-852-6606
	 

	 	 	 	Facsimile No.: 650-852-4631
	 
	 	 	 	 
	 	 	With a separately delivered copy to:
	 

	 	 	 	Space Systems/Loral, Inc.
	 

	 	 	 	3825 Fabian Way M/S G-56
	 

	 	 	 	Palo Alto, CA 94303-4697

			
	 	 	 
	
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	 	 	 	Attn.: Program Manager, Greg Harms
	 

	 	 	 	Telephone No.: 650-852-5575
	 

	 	 	 	Facsimile No.: 650-852-6392

	31.2	 	Change of Address
	 
	 	 	Either Party may from time to time change its notice address or the persons to be notified
by giving the other Party written notice (as provided above) of such new information and the
date upon which such change shall become effective.
	 
	31.3	 	Authorized Representatives
	 
	 	 	The only representatives of Purchaser and Contractor authorized to sign contractual
documents and to direct Work under this Contract are:
	 
	 	 	PURCHASER

Name: David Abrahamian

Title: Contracts Manager

Name: Jared Flinn

Title: Associate General Counsel

Or others as may be authorized in writing by an executive officer of Purchaser from time to time.

	 	 	 	CONTRACTOR:

Name: Ronald Haley

Title: Senior Vice President, Finance and Contracts

Or others authorized by written delegation by Contractor.

			
	 	 	 
	
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ARTICLE 32 — RISK MANAGEMENT SERVICES

	32.1	 	Purchaser Responsibility
	 
	 	 	Purchaser shall be responsible for procuring any Launch and In-Orbit Insurance Policy
(defined below) covering the risks of loss or damage to the Satellite from and after
Intentional Ignition.
	 
	 	 	IN NO EVENT SHALL PURCHASER DISCLOSE OR TRANSFER CONTRACTOR-PROVIDED TECHNICAL INFORMATION
OR PROVIDE TECHNICAL/DEFENSE SERVICES BASED ON CONTRACTOR-FURNISHED TECHNICAL INFORMATION TO
NON-U.S. PERSONS INCLUDING INSURANCE BROKERS OR UNDERWRITERS OR OTHER NON-U.S. PERSONS OR
ENTITIES (AS DEFINED IN 22 CFR SECTION 120.15 AND SECTION 120.16) WITHOUT CONTRACTOR’S PRIOR
WRITTEN APPROVAL (NOT TO BE UNREASONABLY WITHHELD OR DELAYED) AND, WHERE REQUIRED, PRIOR
APPROVAL OF THE U.S. GOVERNMENT.
	 
	32.2	 	Contractor Support
	 
	 	 	At Purchaser’s request, Contractor shall, at its own expense, use its Reasonable Efforts to
obtain quotes for launch and/or in-orbit insurance to cover the risk of loss or damage to
the Satellite from Intentional Ignition and continuing up to one year after Launch (provided
that such coverage period is then commercially available) on such commercial terms and
conditions as are then commercially available, with a maximum sum insured equal to the sum
of prices for the Satellite, Launch Services and insured insurance premium, such amount to
be confirmed by Purchaser (or, if such coverage is not then available, at the maximum amount
commercially available) (the “Launch and In-Orbit Insurance Policy”). Within twenty (20)
Business Days of receiving such quotes from Contractor, Purchaser, in its sole discretion,
shall either: (i) directly procure such insurance by and on its own behalf; or (ii) notify
Contractor in writing that Purchaser rejects such proposal for Launch and In-Orbit Insurance
Policy. Failure of Purchaser to provide such written notice within the twenty (20) Business
Day period shall be deemed to be a rejection of such proposal for the Policy. In either
event, Contractor shall have no further obligation with regard to the procurement of Launch
and In-Orbit Insurance Policy or Purchaser’s acquisition or non-acquisition thereof, except
as provided in the immediately succeeding Paragraph and Article 32.3.

			
	 	 	 
	
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	 	 	At Purchaser’s request, Contractor shall, regardless of whether Purchaser shall have
accepted or rejected Contractor’s proposal for the Launch and In-Orbit Insurance Policy,
perform the various activities described in this Article 32. Subject to Article 7 and
Article 28, Contractor, at no additional charge to Purchaser, shall furnish Purchaser with
such information regarding the Satellite as is requested by the insurers and as is customary
and normal to support and assist Purchaser in obtaining and maintaining a Launch and
In-Orbit Insurance Policy including but not limited to: (i) providing a comprehensive
presentation package on the Satellite, suitable for presentation to the space insurance
brokers and underwriters; (ii) supporting Purchaser with all necessary presentations (oral,
written or otherwise), including attendance and participation in such presentations where
requested by Purchaser; (iii) providing on a timely basis all reasonable and appropriate
technical information, data and documentation; (iv) providing documentation and answers to
insurer and underwriter inquiries; and (v) obtaining any agreements and other approvals that
are required (e.g., those agreements and approvals required pursuant to Article 7.3) for
Purchaser’s potential insurance providers to have access to all information required by such
potential providers. Notwithstanding Article 28, Disclosure and Handling of Proprietary
Information and Article 30, Public Release of Information, but subject to Article 7,
Purchaser may disclose this Contract to its insurers, provided that Purchaser has entered
into binding agreements with such insurers that limits the disclosure and use of such
Contract on terms comparable to those contained herein and further provided that Contractor
shall be allowed to make redactions reasonable to both Parties to Article 19 (Intellectual
Property Indemnity), Article 22 (Liquidated Damages for Late Delivery), Article 23
(Termination for Default), Article 27 (Limitation of Liability), Article 29 (Contract
Technology Escrow), Article 35 (Ground Storage), Article 36 (Orbit Maneuver Life Payment and
Launch Vehicle Guarantee), Article 39 (Intellectual Property), Article 40 (Lender
Requirements) (and definitions applicable to the foregoing), interest percentages, and this
sentence.
	 
	32.3	 	Insurance Amounts
	 
	 	 	Purchaser shall be responsible for procuring directly and on its own behalf any Launch and
In-Orbit Insurance Policy. Notwithstanding the foregoing, in the event that any loss is
paid to Contractor under the Launch and In-Orbit Insurance Policy, then Contractor agrees to
hold such amounts in trust for Purchaser and to pay such amounts to Purchaser within three
(3) Business Days after Contractor receives the corresponding

			
	 	 	 
	
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	 	 	payment from the insurers, except for any amount(s) due to Contractor including earned
Orbital Performance Incentives as provided under Article 13, and, for the avoidance of
doubt, Contractor shall be obligated to make payment to Purchaser under this Article 32 only
to the extent that Contractor receives payment from the insurers. Notwithstanding the
foregoing, Contractor shall reasonably cooperate with Purchaser in recovering all amounts
due from the insurers under the Launch and In-Orbit Insurance Policy.
	 
	32.4	 	Claims Support
	 
	 	 	Subject to Article 7 and Article 28, Contractor shall cooperate with and provide reasonable
and customary support to Purchaser in making and perfecting claims for insurance recovery
and as to any legal proceeding as may be brought by Purchaser associated with any claim for
insurance recovery. Contractor shall furnish Purchaser with any information that may be
reasonably required to prepare and present any insurance claim.
	 
	32.5	 	Contractor Insurance Requirements
	 
	 	 	During the period from EDC until Intentional Ignition (and in the event of a Terminated
Ignition, until the subsequent Intentional Ignition where Contractor re-acquires title and
risk of loss to the Satellite as provided in Article 12.1) Contractor shall obtain and
maintain, at its own expense, Ground Insurance coverage against all risks of loss, including
earthquake and other natural disasters, and damage to the Satellite and its Components in an
amount sufficient to cover the greater of: (i) the Contractor’s full replacement value of
the Satellite; and (ii) the amounts paid by Purchaser with respect to the Satellite. Such
insurance shall provide: (w) coverage for removal of debris, and insuring the structures,
machines, equipment, facilities, fixtures and other properties constituting part of the
project, (x) transit coverage, including ocean marine coverage (unless insured by the
supplier), (y) off-site coverage for any key equipment, and (z) off-site coverage covering
any property or equipment not stored on the construction site. The deductible for such
insurance shall not exceed [***] Dollars U.S. dollars (U.S. $[***]). Contractor shall have
Purchaser and/or its designees named as an additional named insured on such insurance
policy(ies) to the extent of their interest. Prior to commencing the Work, and whenever
requested by Purchaser, Contractor agrees to furnish to

 

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	 	 	 	Purchaser certificates of insurance evidencing that insurance required under this Article is
in full force and effect. Contractor agrees to notify Purchaser in advance of any change to
any material terms and conditions of said policies of insurance which are relevant to this
Contract, and, if any such change is made without Purchaser’s consent (not to be
unreasonably withheld), Contractor shall be obligated to procure supplemental insurance
coverage, subject to availability, to comply with the insurance obligations set forth above.
Contractor shall provide certificates of insurance which shall contain an endorsement
setting forth that the insurer cannot terminate or materially amend the provisions of the
insurance without prior written notification to Purchaser at least thirty (30) days before
such termination or amendment. If, after being requested in writing by Purchaser to do so,
Contractor fails to produce evidence of compliance with Contractor’s insurance obligations
hereunder within fourteen (14) days, Purchaser may effect and maintain the insurance and pay
the premiums, and Contractor, at no charge, shall provide reasonable cooperation as
requested by Purchaser. The amount paid shall be a debt due and payable from Contractor to
Purchaser, or Purchaser, at its option, may elect to offset payments due Contractor.

			
	 	 	 
	
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ARTICLE 33 — ORDER OF PRECEDENCE

In the event of conflict among the terms of this Contract (Preamble, Recitals, and Articles 1 to
41) and the Exhibits, the following order of decreasing precedence shall apply:

	 	 	 
	o Contract terms and conditions

	 	(Preamble, Recitals and Articles 1 through 41)
	o Exhibit A

	 	Statement of Work
	o Exhibit E

	 	Payment Plan and Termination Liability Schedule
	o Exhibit K

	 	Default Configuration
	o Exhibit B

	 	Satellite Performance Specification
	o Exhibit C

	 	Mission Assurance Plan
	o Exhibit D

	 	Satellite Program Test Plan
	o Exhibit F

	 	Satellite Control Facility Requirements Document
	o Exhibit H

	 	Dynamic Satellite Simulator Statement of Work and Functional
Requirements Document
	o Exhibit G

	 	Escrow Agreement
	o Exhibit I

	 	Guaranty Agreement
	o Exhibit J

	 	[***] Escrow Agreement

 

			
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ARTICLE 34 — GENERAL

	 	34.1	 	Assignment

	 	34.1.1	 	General. This Contract may not be assigned, either in whole or in part, by
either Party without the express written approval of the other Party, not to be
unreasonably withheld or delayed.
	 
	 	34.1.2	 	By Purchaser. Notwithstanding the foregoing, Purchaser may assign or
transfer this Contract or all its rights, duties, or obligations hereunder without
Contractor’s approval (i) to an Affiliate, provided that such Affiliate has sufficient
financial resources or funding to fulfill Purchaser’s obligations under this Contract;
(ii) in connection with obtaining financing for the Satellite under any financing
agreement; (iii) to any entity which, by way of merger, consolidation, or any similar
transaction involving the acquisition of substantially all the stock or the entire
business assets of Purchaser relating to the subject matter of this Contract succeeds
to the interests of Purchaser, provided in each case the assignee, transferee, or
successor to Purchaser has expressly assumed all the obligations of Purchaser and all
terms and conditions applicable to Purchaser under this Contract; or (iv) to any
subsidiary or joint venture associate of Purchaser not meeting the requirements of item
(i) above, provided that Purchaser executes the Guaranty Agreement attached hereto as
Exhibit I.
	 
	 	34.1.3	 	By Contractor. Notwithstanding the foregoing, Contractor may assign or
transfer this Contract or all of its rights, duties, or obligations hereunder to: (i)
any Affiliate of Contractor that has equivalent or greater financial resources as
Contractor; or (ii) any person in connection with the sale, transfer, merger,
assignment or other reorganization affecting Contractor or all (or substantially all)
of Contractor’s assets or capital stock, whether by way of merger, consolidation, or
otherwise, provided in each case the assignee, transferee, or successor to Contractor
has expressly assumed all the obligations of Contractor and all terms and conditions
applicable to Contractor under this Contract.
	 
	 	34.1.4	 	Security Interests. Either Party, upon prior written notice to the other
Party, may grant security interests in its rights hereunder to lenders that provide
financing for the performance by such Party of its obligations under this Contract or
for the subject matter hereof. In the event that either Party is sold to or merged
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	 	 	 	another entity, its responsibilities under this Contract shall not be altered and
the successor organization shall be liable for performance of such Party’s
obligations under this Contract.

	 	34.2	 	Binding Effect
	 
	 	 	 	This Contract shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns. Assignment of this Contract shall not relieve
the assigning Party of any of its obligations nor confer upon the assigning Party any rights
except as provided in this Contract.
	 
	 	34.3	 	Severability
	 
	 	 	 	If any provision of this Contract is declared or found to be illegal, unenforceable or void,
the Parties shall negotiate in good faith to agree upon a substitute provision that is legal
and enforceable and is as nearly as possible consistent with the intentions underlying the
original provision. If the remainder of this Contract is not materially affected by such
declaration or finding and is capable of substantial performance, then the remainder shall
be enforced to the extent permitted by law.
	 
	 	34.4	 	Waiver of Breach of Contract
	 
	 	 	 	A waiver of any provision or any breach of a provision of this Contract shall not be binding
upon either Party unless the waiver is in writing, signed by a duly authorized
representative of the Party to be bound, as applicable, and such waiver shall not affect the
rights of the Party not in breach with respect to any other or future breach. No course of
conduct by a Party shall constitute a waiver of any provision or any breach of a provision
of this Contract unless a written waiver is executed in accordance with the provisions of
this Article 34.4.
	 
	 	34.5	 	Amendments
	 
	 	 	 	This Contract, including any and all its Exhibits, may not be modified except by written
instrument of subsequent date signed by an officer of Contractor, or another person
designated in writing by any such officer to sign such an instrument, and an authorized
officer of Purchaser, or another person designated in writing by any such authorized officer
of Purchaser to sign such an instrument.

	 	 	 
	

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	 	34.6	 	Captions
	 
	 	 	 	The captions contained herein are for purposes of convenience only and shall not affect the
construction of this Contract.
	 
	 	34.7	 	Relationships of the Parties
	 
	 	 	 	It is expressly understood that Contractor and Purchaser intend by this Contract to
establish the relationship of independent contractors only, and do not intend to undertake
the relationship of principal and agent or to create a joint venture or partnership or any
other relationship, other than that of independent contractors, between them or their
respective successors in interests. Neither Contractor nor Purchaser shall have any
authority to create or assume, in the name or on behalf of the other Party, any obligation,
expressed or implied, or to act or purport to act as the agent or the legally empowered
representative of the other Party, for any purpose whatsoever.
	 
	 	34.8	 	Entire Agreement
	 
	 	 	 	This Contract, including all its Exhibits, represents the entire understanding and agreement
between the Parties hereto with respect to the subject matter hereof, and supersedes all
prior negotiations and agreements with respect to the subject matter hereof, which cease to
have any further force or effect.
	 
	 	34.9	 	Standard of Conduct
	 
	 	 	 	Both Parties agree that all their actions in carrying out the provisions of this Contract
shall be in compliance with applicable laws and regulations and neither Party will pay or
accept bribes, kickbacks or other illegal payments, or engage in unlawful conduct.
	 
	 	34.10	 	Construction
	 
	 	 	 	This Contract, including all its Exhibits, has been drafted jointly by the Parties and in
the event of any ambiguities in the language hereof, there shall be no inference drawn in
favor of or against either Party.
	 
	 	34.11	 	Counterparts
	 
	 	 	 	This Contract may be signed in any number of counterparts with the same effect as if the
signature(s) on each counterpart were upon the same instrument.

	 	 	 
	

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	 	34.12	 	Applicable Law
	 
	 	 	 	This Contract shall be interpreted, construed and governed, and the rights of the Parties
shall be determined, in all respects, according to the laws of the State of New York without
reference to its conflicts of laws rules.
	 
	 	34.13	 	Survival
	 
	 	 	 	Termination or expiration of this Contract for any reason shall not release either Party
from any liabilities or obligations set forth in this Contract remain to be performed or by
their nature would be intended to be applicable following any such termination or
expiration, including the following: Article 2.2 (Option Satellite) (only if the option is
still valid as of the termination or expiration of this Contract); Article 4.4 (Fees and
Other Expenses); Article 4.5 (Taxes); Article 7.4 (Compliance with U.S. Laws and
Directives); Article 12.1(C) (Satellite), Article 15.2.8 (Disclaimer); Article 19
(Intellectual Property Indemnity); Article 20 (Indemnification); Article 21 (Termination for
Convenience); Article 22 (Liquidated Damages); Article 23 (Termination for Default); Article
25 (Dispute Resolution); Article 26 (Inter-Party Waiver of Liability for a Launch); Article
27 (Limitation of Liability); Article 28 (Disclosure and Handling of Proprietary
Information); Article 29 (Contract Technology Escrow); Article 30 (Public Release of
Information); Article 31 (Notices); Article 33 (Order of Precedence); Article 34 (General);
Article 36 (Orbital Maneuver Life Payment and Launch Vehicle Guarantee) and Article 39
(Intellectual Property).
	 
	 	34.14	 	U.N. Convention on the International Sales of Goods
	 
	 	 	 	The U.N. Convention on the International Sales of Goods shall not apply or otherwise have
any legal effect with respect to this Contract.
	 
	 	34.15	 	No Third-Party Beneficiaries
	 
	 	 	 	This Contract is entered into solely between, and may be enforced only by, Purchaser and
Contractor and their permitted assigns, and this Contract shall not be deemed to create any
rights in third parties, including suppliers, customers, the CondoSat Associate, and owners
of a Party, or to create any obligations of a Party to any such third parties.

	 	 	 
	

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	 	34.16	 	Business Ethics
	 
	 	 	 	In the event that Contractor has cause to believe that Purchaser has acted improperly or
unethically during the term of this Contract, Contractor is requested to report such conduct
to Purchaser’s ethics hotline at 1-888-475-8376. Copies of Purchaser’s Guide to Business
Conduct are available at www.viasat.com under “Investors-Corporate Governance.” Any
failure by Contractor to act under this clause will not constitute a breach of this
Contract.
	 
	 	34.17	 	Remedies
	 
	 	 	 	Where a specific remedy is set forth in this Contract, such remedy shall be the sole and
exclusive remedy available to the Party entitled to claim it and shall be in substitution
for all other remedies arising at law or in equity in relation to the specific matter that
the remedy responds to. Purchaser’s right to terminate this Contract for default pursuant
to Article 23.1.1(iii) shall not constitute a “specific remedy” hereunder, provided that,
where Purchaser elects to proceed pursuant to Article 23.1.1(iii), such election shall be
the sole remedy to which Purchaser is entitled. For the avoidance of doubt, in the event of
a material breach by either Party where multiple specific remedies are set forth herein and
are available, the non-breaching Party shall have right to elect the specific remedy to
enforce, provided that, in no event shall the non-breaching Party be entitled to multiple
recoveries or remedies unless expressly provided otherwise in this Contract.

	 	 	 
	

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ARTICLE 35 —  GROUND STORAGE

	 	35.1	 	Ground Storage
	 
	 	 	 	Purchaser may direct Contractor, in writing, to store the Satellite after completion of
SPSR. If so directed, Contractor shall store the Satellite and related equipment at
Contractor’s own facilities for up to [***] years (“Ground Storage”). Such storage shall be
conducted in accordance with Contractor’s standard Shipping, Handling and Storage Plan (the
“Satellite Storage Plan”).
	 
	 	35.2	 	Costs of Ground Storage
	 
	 	 	 	[***] Purchaser shall pay Contractor for Ground Storage at the rate of $[***] per month,
and any post-storage re-verification testing excess of the testing that would have been
required if the Satellite were only placed in Ground Storage for six (6) months will be
considered a change under Article 16, Changes. The foregoing shall be Purchaser’s sole
liability for Storage Costs.
	 
	 	35.3	 	Equitable Allocation of Storage Costs
	 
	 	 	 	Notwithstanding the foregoing, in the event that Ground Storage is required primarily due to
the fault of Contractor, all Storage Costs shall be borne by Contractor, provided that
Purchaser schedules with the Launch Agency the next available Launch opportunity that is
reasonably satisfactory to Purchaser and which is consistent with the Satellite’s
availability for Launch.
	 
	 	 	 	In the event the Satellite is initially placed in Ground Storage due to the fault of
Contractor, but Purchaser does not schedule with the Launch Agency the next available Launch
opportunity reasonably satisfactory to Purchaser and which is consistent with the
Satellite’s availability for Launch: (A) Contractor shall be responsible for all Storage
costs for the period of time up to the next available Launch opportunity reasonably
satisfactory to Purchaser and which is consistent with the Satellite’s availability for
Launch, [***]; and (B) Purchaser shall be responsible for payment of those amounts set forth
in paragraph 35.2(b), above, for the period of Ground Storage [***].

 

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	 	35.4	 	Payments of Storage Costs 
	 
	 	 	 	Payments of Storage Costs required to be made under this Article 35
shall be made on the thirtieth (30th) day of each month
for the prior month’s storage, provided an invoice is received at
least thirty (30) days prior to the payment date.
	 
	 	35.5	 	Title and Risk of Loss
	 
	 	 	 	

Title and risk of loss to the Satellite delivered for Ground Storage
shall remain with Contractor at the storage site.
	 
	 	35.6	 	 Notification of Intention to Launch a Previously Stored
Satellite
	 
	 	 	 	

In the event a Satellite is placed in Ground Storage, Purchaser shall notify Contractor in
writing when the Satellite should be removed from Ground Storage and delivered to the Launch
Site. This notification must be received by Contractor not less than three (3) months prior
to the scheduled date for Launch of the Satellite.

	 	 	 
	

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ARTICLE 36 —  ORBIT MANEUVER [***] AND LAUNCH VEHICLE [***]

	 	36.1	 	Orbital Maneuver [***]
	 
	 	 	 	On the IOT Complete Date, assuming a nominal Launch (as such term is used in the launch
industry), the remaining orbital maneuver life (the “Remaining OML”) of the Satellite shall
be calculated by taking the fuel loaded at Launch, subtracting the fuel consumed to date,
and projecting the consumption of the available fuel. Fuel consumed to date shall be
calculated by taking the average of: [***]. Projected consumption shall be based on
sufficient fuel for the station keeping operations projected by Purchaser (based upon
procedures provided by Contractor pursuant to this Contract), assuming full north/south and
east/west station keeping, altitude control, momentum management, and a reasonable reserve
for retirement maneuvers. For purposes of this calculation, any fuel consumed associated
with the Satellite temporarily occupying an orbit location other than the final orbit
location, 115oW, pursuant to a “fly-by”, or with drifting the Satellite to its final orbit
location of 115oW due to the Satellite being tested in an orbit location other than the
final orbit location of 115oW, shall not be subtracted for calculation of the Remaining OML.
	 
	 	 	 	If, at the time of the IOT Complete Date, the Remaining OML of the Satellite is less than
one hundred eighty (180) months due to the fault of Contractor, Contractor shall pay to
Purchaser an amount calculated as [***] dollars ($[***]) per each month by which such
Remaining OML is less than one hundred eighty (180) months (with such amount to be pro-rated
for any period of less than one (1) month) (the “OML Payment”). For example, if the
Remaining OML were 178 months and 10 days (for a total of 5,428 total days in the remaining
Orbital Performance Period), the Contractor would be obligated to pay Purchaser [***].
	 
	 	 	 	In the event Contractor is required to pay the OML Payment, the Orbital Performance
Incentive Period shall be shortened to end on the last day of the Remaining OML period,

 

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	 	 	 	and the Daily Rate shall be adjusted to account for such shortened period. In the above
example, the Orbital Performance Incentive Period would be 5,428 days and the new Daily Rate
for purposes of Article 13 would be the Orbital Performance Incentive amount divided by
5,428.
	 
	 	 	 	Any amounts due in accordance with this Article shall, at Purchaser’s election either be (i)
credited to Purchaser against any outstanding or future invoices hereunder or (ii) paid by
Contractor to Purchaser within thirty (30) days of issuance of an invoice from Purchaser.
	 
	 	36.2	 	Launch Vehicle [***]
	 
	 	 	 	Contractor shall [***], based upon pre-launch estimates and analysis, [***]. If, as of the
completion of the critical design review, [***], following a Launch [***], would be [***],
then Contractor shall be [***].  Contractor will perform all necessary Integration
Activities [***]. In the event that the Satellite has to be placed in Ground Storage at the
conclusion of SPSR as a result of a change of Launch Vehicle due to Contractor failing to
meet the [***] as provided above, the liquidated damages provisions of Article 22.1 shall
apply during the term of such Ground Storage.

 

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ARTICLE 37 —  CONTRACTOR PERSONNEL

	 	37.1	 	Contractor Personnel
	 
	 	 	 	The Contractor will assign only properly qualified and experienced personnel to the Work
contemplated under the Contract, and Contractor shall use Reasonable Efforts to retain such
personnel on the Work for its duration. At the reasonable request of Purchaser, Contractor
shall not use, and shall not permit any Subcontractor to use, in the performance of the Work
any personnel deemed by Purchaser to be abusive, disorderly, incompetent, careless,
unqualified to perform the Work assigned, or otherwise unsatisfactory to Purchaser. Without
limiting the generality of the foregoing, Contractor shall, within ten (10) Business Days
after receiving notice from Purchaser, remove from the performance of the Work, and, as soon
as is reasonably practicable, replace, any personnel of Contractor or any Subcontractor who
is performing any portion of the Work, if Purchaser reasonably believes that such personnel
is creating a risk to the timely or safe completion of the Work in accordance with this
Contract.
	 
	 	37.2	 	Key Personnel as of EDC
	 
	 	 	 	Personnel assigned to the following positions shall be considered “Key Personnel,” and, as
of the date of EDC, shall be filled by the following Contractor employees:

	 	a)	 	the Contractor’s Program Manager: Greg Harms
	 
	 	b)	 	the Contractor’s Contracts Manager: Nick Pound
	 
	 	c)	 	the Contractor’s Systems Engineering Manager: Michel Baylocq
	 
	 	d)	 	the Contractor’s Payload Manager: Melles Tsighe

	 	 	 	Purchaser may from time to time change the positions designated as Key Personnel under this
Contract on sixty (60) days notice to Contractor and with mutual agreement of the
Contractor, not to be unreasonably withheld or delayed.
	 
	 	37.3	 	Assignment of Key Personnel
	 
	 	 	 	Contractor shall assign individuals only from within Contractor’s organization to fill the
Key Personnel positions. All Key Personnel shall have significant relevant experience and
expertise. Before assigning an individual to any Key Personnel position, whether as an
initial assignment or a subsequent assignment, Contractor shall notify Purchaser of

	 	 	 
	

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	 	 	 	the proposed assignment, shall introduce the individual to Purchaser (and, upon request of
Purchaser, provide Purchaser with the opportunity to interview the individual) and shall
provide Purchaser with a resume and other information reasonably requested by Purchaser. If
Purchaser in good faith objects to the proposed assignment within fifteen (15) Business Days
after being notified thereof, Contractor shall not assign the individual to that position
and shall propose to Purchaser the assignment of another individual of suitable
qualifications and experience, the criteria of which are to be mutually agreed by Purchaser
and Contractor acting reasonably. Should the individuals filling the positions of Key
Personnel leave such positions for whatever reason, Contractor shall follow the procedure
set forth in this Article to assign replacement personnel. Key Personnel shall not be
assigned to other duties without the Purchaser giving prior written consent.

	 	 	 
	

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ARTICLE 38 —  SUBCONTRACTS

	 	38.1	 	Major Subcontracts
	 
	 	 	 	Contractor shall select Major Subcontractors subject to Purchaser’s prior written approval,
and Purchaser shall be provided with complete copies of all Major Subcontracts promptly upon
execution thereof. For purposes of this Contract, a “Major Subcontract” shall be any
Subcontract that has a contract value of at least five million dollars ($5,000,000.00), or,
in the event Contractor issues Subcontracts therefor, for those items set forth below. In
the event Contractor or any Subcontractor desires to terminate any Major Subcontractor or to
substitute Subcontractors on any Major Subcontract, Contractor shall first notify Purchaser
in writing.
	 
	 	 	 	To the extent that the Contractor elects to procure the following items from subcontractors,
those subcontractors shall be Major Subcontractors: TWTAs, LNAs, and downconverters.
	 
	 	38.2	 	No Privity of Contract
	 
	 	 	 	Subject to the provisions of this Article, Contractor shall have the right to use such
Subcontractors as may be necessary to perform the Work under this Contract. Nothing in this
Contract shall be construed as creating any contractual relationship between Purchaser and
any Subcontractor. Contractor is fully responsible to Purchaser for the acts or omissions
of Subcontractors and of any other parties used by Contractor or a Subcontractor in
connection with the performance of the Work. Any failure by a Subcontractor to meet its
obligations to Contractor shall not constitute a basis for Force Majeure (except where such
failure is itself a Force Majeure event), and shall not relieve Contractor from meeting any
of its obligations under this Contract. Notwithstanding anything to the contrary herein,
Purchaser’s acknowledgment or approval of any Major Subcontractor or Subcontractor shall not
relieve Contractor from any of its obligations or responsibilities under this Contract.
	 
	 	38.3	 	Thales Agreement
	 
	 	 	 	Purchaser has previously entered into an agreement with Thales Components Corporation
(“TCC”) to reserve production capacity for forty (40) high-powered traveling wave tubes
(“TWTs”), as well as mission unique long lead parts for use on the Satellite. Promptly upon
execution of this Contract, but in no event later than January 30, 2008, Purchaser agrees to
assign and relinquish to Contractor all its rights under its contract

	 	 	 
	

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	 	 	 	with TCC for the reservation of the necessary TWTs and associated mission unique long lead
parts in favor of Contractor. In the event that the terms of Purchaser’s contract with TCC
prejudices or adversely affects Contractor’s rights and ability to negotiate terms and
conditions with TCC for the TWT’s that would otherwise be available to Contractor, such
differing terms shall be considered as changes subject to the provisions of Article 16.

	 	 	 
	

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ARTICLE 39 —  INTELLECTUAL PROPERTY

	39.1	 	 Ownership

	 	A.	 	Reserved.
	 
	 	B.	 	Subject to the licenses granted to Purchaser in this Article 39 of this
Contract, Contractor shall own all Intellectual Property Rights, title and interest in
and to all Contractor Intellectual Property. For avoidance of doubt, Contractor shall
retain title to all Deliverable Data (including Software in Deliverable Items of
hardware and Deliverable Items of Software) developed by or on behalf of Contractor and
the Intellectual Property Rights contained therein, excluding Purchaser Intellectual
Property.
	 
	 	C.	 	Contractor agrees that the obligations set forth in Article 28.2, subject to
the terms and exceptions to confidentiality obligations set forth in Article 28, shall
apply to Contractor with respect to the handling and use of Purchaser-unique
information contained in the Satellite Payload Specifications; provided that to the
extent such Purchaser-unique information constitutes a trade secret under applicable
law, such Purchaser-unique information shall be held in confidence by Contractor in
accordance with Article 28 for as long as such information remains a trade secret under
applicable law

	39.2	 	Licenses and Restrictions

	 	A.	 	Contractor grants to Purchaser a nonexclusive, perpetual, irrevocable,
royalty-free, license, with the right to sublicense, except to Competitors, subject to
the same limitations applicable to Purchaser (including but not limited to the
provisions of Articles 7.2, 7.4, 15.1, 15.2.8, 17.1, 26.2, 27, 28, 30 and 39.1), to
Exploit Contractor Intellectual Property. Any sublicense granted under this Article
39.2(A) shall be in writing and Contractor shall be provided with complete copies of
any such sublicense promptly upon grant thereof. Purchaser shall be liable for the
acts of its sublicensees to the same extent as if such acts of sublicensees had been
committed by Purchaser.
	 
	 	B.	 	Subject to the terms of this Contract, Purchaser grants to Contractor a
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	 	 	 	Contract, with no right to sublicense (except to Subcontractors), under Purchaser
Intellectual Property only to the extent necessary to provide the Work under this
Contract. Any sublicense granted under this Article 39.2(C) shall be in writing.
Contractor shall be liable for the acts of its sublicensees to the same extent as if
such acts of sublicensees had been committed by Contractor.
	 
	 	C.	 	Neither Party shall have a license to use the trademarks or service marks of
the other Party without such other Party’s express written consent.
	 
	 	D.	 	There are no implied licenses under this Contract, and any rights not expressly
granted by a Party to the other Party hereunder shall be reserved by such Party. Each
Party agrees not to reverse engineer the Intellectual Property of the other Party
provided to such Party in connection herewith (whether provided prior to or after EDC).
Each Party agrees not to file for patents covering the Intellectual Property Rights
owned by the other Party hereto.
	 
	 	E.	 	Contractor shall make Reasonable Efforts to secure for Purchaser from each
Major Subcontractor entering into a Subcontract on or after EDC at least the same
rights with respect to such Subcontractor’s Intellectual Property as are provided to
Purchaser in this Article 39 with respect to Contractor Intellectual Property (such
Reasonable Efforts not to include payment of additional amounts for such rights).

	 	 	 
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ARTICLE 40 — LENDER REQUIREMENTS

The Parties recognize this Contract may be financed through external sources.
Notwithstanding anything to the contrary in this Contract, except for restrictions and
conditions set forth in Article 7 and Article 28, Contractor shall provide to any Financing
Entity any information (including, without limitation, this Contract) that such Financing
Entity reasonably requires. Contractor agrees to negotiate in good faith and issue such
documents as may be reasonably required by any Financing Entity to implement such financing,
including a contingent assignment of this Contract to such Financing Entity, under terms
reasonably acceptable to Contractor, but in no event shall Contractor be obligated to agree
to anything (including agreement to make modifications to this Contract) that would impair,
create a risk to, or otherwise prejudice its rights and benefits hereunder or increase its
liabilities or obligations hereunder.

	 	 	 
	
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ARTICLE 41 —  SECURITY INTEREST

	41.1	 	 Security Interest

	 	41.1.1	 	Collateral. As collateral security for payment and performance by Contractor of
the Secured Obligations, whether now existing or hereafter arising, Contractor hereby
grants to Purchaser a first priority security interest (the “Security Interest”) in all of
Contractor’s right, title and interest in, to and under the following property, whether
owned on EDC or thereafter acquired by Contractor and whether existing on EDC or thereafter
coming into existence (collectively, the “Collateral”):

	 	a.	 	all [***]; and
	 
	 	b.	 	all [***] of and to any of the foregoing.

	 	41.1.2	 	Contractor Actions in Support of Grant of Security Interest. In furtherance of
the grant of the Security Interest, Contractor, as of EDC:

	 	a.	 	shall give, execute, deliver, file, record, obtain, and
authorize all financing statements, intellectual property security
agreements, and any other notices, instruments, agreements and documents,
and Contractor shall take such other actions, as reasonably requested by
Purchaser to (1) create, perfect, validate and preserve the Security
Interest and the priority thereof or (2) to enable Purchaser to exercise
and enforce its rights hereunder with respect to such pledge, grant and
Security Interest, and, in the event the Protocol of Space Assets to the
Cape Town Convention on Mobile Goods is ratified by the United States and
becomes effective, Contractor shall take all action required thereunder
to protect and preserve the security interest of Purchaser hereunder;
	 
	 	b.	 	shall indicate in its corporate records the Security
Interest that Purchaser has in the Collateral; and
	 
	 	c.	 	authorizes Purchaser to file UCC-1 financing statements with
respect to the Security Interest and the Collateral.

 

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	 	41.1.3	 	Contractor Representations and Warranties in Support of Grant of Security
Interest. Contractor represents and warrants that as of EDC the Security Interest
granted to Purchaser shall constitute a legal, valid and enforceable security interest
therein and upon the filing of UCC-1 financing statements in the office of the Secretary of
State of Delaware will be a first priority perfected security interest in those items that
can be perfected by filing under the UCC subject to no other liens or security interests
other than Junior Liens (as defined below) [***]. Contractor further represents and
warrants that it is duly organized as a corporation solely under the laws of the State of
Delaware, and that its full legal name is set forth is as set forth on the signature pages
hereof. Contractor further represents and warrants that no authorization, approval, or
other action by, and no notice to or filing with, any U.S. governmental authority or
regulatory body is required for either (i) the pledge or grant created in favor of
Purchaser hereunder, or (ii) the exercise by Purchaser of any rights or remedies in respect
of any Collateral (whether specifically granted or created hereunder or provided for by
applicable law), except for the UCC-1 financing statement in the State of Delaware, any
filings under federal statutes in respect of Intellectual Property Rights, any filings to
perfect security interests under laws outside the United States, any filings to perfect
security interests under provisions other than the UCC, and any actions in connection with
enforcement rights required under applicable export restrictions and security regulations.
	 
	 	41.1.4	 	Junior Liens. On and after EDC, Contractor shall not sell, lend, rent, lease,
transfer or otherwise dispose of any portion of the Collateral or any right, title or
interest therein except to Purchaser pursuant to the Contract and Contractor shall keep
such Collateral free from any security interest, lien, encumbrance or claim.
Notwithstanding the foregoing, Contractor shall be permitted to grant [***] (“Junior
Liens”) on the Collateral to secure indebtedness of Contractor and its Affiliates from time
to time, including reimbursement obligations in respect of letters of credit (collectively,
“Permitted Debt”), provided that the terms of such Junior Liens shall be expressly
subordinated to the Security Interest and otherwise acceptable to

 
 

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	 	 	 	Purchaser. Prior to granting any Junior Lien on the Collateral, Contractor shall
provide written notice to Purchaser describing the circumstances of such Junior Lien
(including the identity of the proposed holder of such Junior Lien and the nature of
the Permitted Debt). Within ten (10) Business Days after receipt of such notice,
Purchaser shall notify Contractor whether such proposed Junior Lien is acceptable to
Purchaser in its reasonable discretion and, if acceptable, provide the terms for such
Junior Lien and the subordination thereof that would be reasonably acceptable to
Purchaser. Contractor agrees and acknowledges that such terms may prohibit the holder
of such Junior Lien from seizing, foreclosing on, selling or otherwise disposing of
the Collateral so long as the Security Interest in favor of Purchaser in regard to
such Collateral remains in effect.
	 
	 	41.1.5	 	Periodic Inventory. Upon the reasonable request of Purchaser (not to occur more
often than [***] absent a default under Article 23.1.1, and in the event of a default under
Article 23.1.1 on a [***] basis) following EDC, Contractor shall provide Purchaser a
written inventory describing the [***] as of the time of such request.
	 
	 	41.1.6	 	Exercise of Rights. On and after EDC, Purchaser shall have and be entitled to
exercise all the rights and remedies with respect to the Collateral of a secured party
under the UCC (whether or not the UCC is in effect in the jurisdiction where Purchaser
asserts the rights and remedies), such additional rights and remedies as provided in this
Contract, and such additional rights and remedies to which a secured party is entitled
under the laws in effect in any jurisdiction where Purchaser may assert its rights and
remedies. Effective at the moment at which Purchaser exercises its right to terminate the
Contract pursuant to Article 23.1.1, Purchaser shall have the right, subject to applicable
export control restrictions and security regulations, to take possession of the Collateral
or any part thereof upon ten (10) days notice to Contractor, and Contractor shall assemble
the Collateral in the location or locations specified by Purchaser and give Purchaser
access to Contractor’s premises for purposes of inspecting and/or removing any or all of
the Collateral. Notwithstanding any provision of this Contract to the contrary,

 

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	 	 	 	Purchaser shall not be permitted to exercise its remedies as a secured party in
respect of the Security Interests pursuant to this Article 41.1.6 unless Purchaser has
the right to terminate the Contract as to the Work pursuant to Article 23.1.1 hereof,
and Purchaser exercises such rights of termination.
	 
	 	41.1.7	 	Sale of Collateral. If the Proceeds of sale, collection or other realization
of or upon the Collateral are insufficient to cover the Secured Obligatins, Contractor
shall remain liable for any deficiency. Purchaser shall not incur any liability as a
result of the sale of the Collateral, or any part thereof, at any private sale
conducted in a commercially reasonable manner and otherwise in compliance with the UCC
and applicable export control restrictions. Contractor hereby waives any claims
against Purchaser arising by reason of the fact that the price at which the Collateral
may have been sold at such a private sale was less than the price that might have been
obtained at a public sale or was less than the aggregate amount of the Secured
Obligations, even if Purchaser accepts the first offer received and does not offer the
Collateral to more than one offeree, so long as the sale was conducted in a
commercially reasonable manner. Purchaser may be the purchaser of any or all of the
Collateral at any public or private sale (to the extent any portion of the Collateral
being privately sold is of a kind that is customarily sold on a recognized market or
subject of widely distributed standard price quotations) in accordance with the UCC,
at a price as determined in accordance with Article 23.1.3, and Purchaser shall be
entitled, for the purpose of bidding and making settlement or payment of the purchase
price for all or any part of the Collateral sold at any such sale made in accordance
with the UCC, to use and apply any of the Secured Obligations as a credit on account
of the purchase price for any Collateral payable by Purchaser at such sale. Purchaser
may sell the Collateral without giving any warranties as to the Collateral. Purchaser
may specifically disclaim or modify any warranties of title or the like. This
procedure will not be considered to adversely affect the commercial reasonableness of
any sale of the Collateral. Notwithstanding any Junior Liens, Purchaser shall have no
obligation to marshal any of the Collateral.
	 
	 	41.1.8	 	Application of Proceeds. Except as otherwise herein expressly provided and
except as provided below in this Article 41.1.8, the Proceeds of any collection, sale or
other realization of all or any part of the Collateral pursuant hereto: (i) first, to the

	 	 	 
	
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	 	 	 	payment of the costs and expenses of such collection, sale or other realization;
(ii) second, to the payment in full of the amounts due to Purchaser as set forth in
Article 23.1.2, (iii) third, to satisfy any other Secured Obligations, (iv) fourth,
to the payment of any Junior Liens secured by such Collateral, and (v) fifth, to the
payment to the Contractor, or its respective successors or assigns, or as a court of
competent jurisdiction may direct, of any surplus then remaining. Notwithstanding
anything to the contrary in this Contract, the Proceeds from the sale, disposition
or other realization of the Collateral may be applied to the payment of Secured
Obligations only to the extent expressly set forth in this Article 41.1.8.
	 
	 	41.1.9	 	Appointment as Attorney in Fact. On and after EDC, without limiting any rights
or powers granted by Article 41 to Purchaser while the Contract has not been terminated in
whole for Contractor’s default in accordance with Article 23.1.1, upon the occurrence and
during the continuance of any termination of the Contract for Contractor’s default pursuant
to Article 23.1.1, Purchaser is hereby appointed the attorney in fact of the Contractor for
the purpose of carrying out the provisions of the Security Interests and taking any action
and executing any instruments that Purchaser may deem necessary or advisable to accomplish
the purposes hereof, which appointment as attorney in fact is irrevocable and coupled with
an interest.
	 
	 	41.1.10	 	Reasonable Supporting Actions. Contractor agrees that, from time to time upon
the written request of Purchaser on and after EDC, Contractor will execute and deliver such
further documents and do such other acts and things as Purchaser may reasonably request in
order to fully effectuate the purposes of this Article 41. Contractor shall not change its
name, address, or jurisdiction of incorporation unless it shall have given Purchaser thirty
(30) day’s prior written notice thereof and shall have taken all action reasonably
requested by Purchaser to preserve the validity, perfection and priority of the security
interests hereunder.
	 
	 	41.1.11	 	Termination of Security Interest. After a valid termination of this Contract
pursuant to Article 21 or Article 23.2, or in the event of a termination of this Contract
pursuant to Article 23.1.1, each of the foregoing in accordance with the respective terms
of such provisions, and subject to receiving Purchaser’s consent, which will not be
unreasonably withheld, conditioned or delayed, Contractor may, on behalf of

	 	 	 
	
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	 	 	 	Purchaser, file any documents (including UCC termination statements) to effect a
termination of the Security Interests and any document filed or recorded to perfect
such Security Interests. Purchaser shall execute and deliver and, if appropriate,
file with the applicable filing offices, such documents and instruments as may be
necessary or desirable to effect such termination.

	 	 	 
	
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IN WITNESS WHEREOF, the Parties have executed this Contract by their duly authorized officers as of
the date set forth in the Preamble.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Space Systems/Loral, Inc.	 	 	 	ViaSat, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ RON O. HALEY
	 	 	 	By:
	 	/s/ KEVEN LIPPERT	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Ron Haley
	 	 	 	Name:
	 	 Keven Lippert	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO
	 	 	 	Title:	 	General Counselexv10w2

 

 Exhibit
10.2

BEAM SHARING AGREEMENT

     THIS BEAM SHARING AGREEMENT is dated as of the 11th day of January, 2008 by and
between ViaSat, Inc., a corporation organized and existing under the laws of the State of Delaware
(“ViaSat”) and Loral Space & Communications, Inc., a corporation organized and existing
under the laws of the State of Delaware (“Loral”).

     WHEREAS, ViaSat and Space Systems/Loral, Inc., a Delaware corporation and an indirect,
wholly-owned subsidiary of Loral (“SS/L”) have entered into a Contract, dated as of January 7,
2008, for the construction, testing and purchase of the ViaSat-1 satellite (such contract, as may
be amended, modified or supplemented from time to time, the “Satellite Contract”), and
Loral and SS/L have entered into a Loral Payload Agreement, of even date herewith (such agreement,
as may be amended, modified or supplemented from time to time, the “Loral Payload
Agreement”), with respect to the Loral Payload, as hereinafter defined.

     WHEREAS, the Parties desire to create an arrangement between ViaSat and Loral for such
ViaSat-1 satellite (the “Satellite”);

     WHEREAS, SS/L has consented to the arrangement contemplated hereby, and the Satellite Contract
and the Loral Payload Agreement contemplate the simultaneous transfer of title to and risk of loss
of the Satellite to ViaSat and Loral, as their respective interests therein shall appear;

     WHEREAS, Loral and Telesat Canada, a Canadian corporation (“Telesat”) are entering
into a separate agreement, dated today’s date (such agreement, as may be amended, modified or
supplemented from time to time, the “Option Agreement”), pursuant to which Telesat will
have the option to assume and succeed to the rights and obligations of Loral hereunder, and for and
in consideration of which Telesat is entering into the TT&C Agreement, dated today, with ViaSat

 

 

and Loral pursuant to which Telesat will provide TT&C services with respect to the Satellite
and payments will be made to Loral, and the Cooperation Agreement, dated today, with ViaSat and
Loral pursuant to which Telesat will make the orbital location at 115 degrees W.L. available to the
Satellite and its replacement satellites.

     WHEREAS, SS/L and ViaSat will allow Loral and its assignees reasonable access to the Satellite
during the construction and testing thereof; and

     WHEREAS, ViaSat and Loral desire to set forth in this Agreement the detailed terms and
conditions of their agreement with regard to the arrangement for the Loral Payload and such other
matters as set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual representations,
warranties, covenants and agreements hereinafter contained, the Parties hereby agree as follows:

ARTICLE 1

INTERPRETATION

1.1. Words and expressions used in this Agreement shall have the meanings set out in Schedule 1,
unless the context requires otherwise.

1.2. The Schedules and Annexes to this Agreement shall form part of this Agreement.

ARTICLE 2

OWNERSHIP OF THE SATELLITE

2.1. Ownership, Title, and Operation. Loral shall exclusively own and operate the Canadian
Satellite payload (defined in Section 2.1B of the Satellite Contract as the “Canadian
Beams”) which will have, as a  minimum, a capacity equal to 15% of the satellite’s Baseline
Capacity (excluding Additional Beams) (subject to ViaSat’s right to complete the design and
configuration of the Satellite in accordance with Section 2.1(B) of the Satellite Contract and
Section 2.2.1

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below), and described in the Loral Payload Agreement (the “Loral Payload”) and ViaSat shall
exclusively own and operate the remainder of the Satellite payload (defined as the US Beams and
Additional Beams, if any, in Section 2.1B of the Satellite Contract) (the “ViaSat Payload”)
and all the elements of the Satellite that are common to and/or shared by the ViaSat Payload and
the Loral Payload (the “Common Elements”). Loral shall maintain a license to the
Deliverable Items related to the Loral Payload in accordance with the Loral Payload Agreement.
ViaSat shall maintain a license to the Deliverable Items related to the ViaSat Payload and Common
Elements in accordance with the Satellite Contract; provided, that, ViaSat hereby grants to Loral a
sublicense (and will provide a copy to Loral) with respect to the Deliverable Items related to the
Common Elements in accordance with its rights to provide sublicenses under the Satellite Contract
(provided that this sublicense shall not be considered a license to Loral to Purchaser Intellectual
Property as such term is defined in the Satellite Contract). Subject to Sections 2.2, 2.3.3 and
2.3.4, ViaSat will make all operational decisions affecting the Common Elements in a fair and
evenhanded manner, having due regard to its interests and the interests of Loral in the health and
functionality of the Satellite and with prior notice to and consultation with Loral in the event of
any such decision that is likely to affect the Loral Payload. Each Party may grant security
interests in and otherwise encumber its portion of the Satellite and the Deliverable Items only in
accordance with Section 13.1. As ViaSat is the owner of the Common Elements, in order to provide
Loral with access to, and use of, the Loral Payload in the event ViaSat or any permitted successor
fails to operate or contract for the operation of the Satellite bus, ViaSat grants to Loral with
effect only upon such failure a non-exclusive license to access and operate the Satellite bus.  
Upon the written request of Loral, ViaSat will acknowledge in favour of a third party the existence
and terms of such non-exclusive license.

- 3 -

 

2.2. Satellite Oversight

     2.2.1 ViaSat may make changes in the design of the Common Elements (subject to this Section
2.2.1 and Section 2.2.2 below) and either Party may at any time and from time to time make changes
in the design of its payload, provided that in each case such changes do not negatively impact: (i)
the scheduled launch date for the Satellite, (ii) the performance of the other Party’s payload,
(iii) the designed operational life of the other Party’s payload or the designed orbital maneuver
life of the Satellite below 15 years, (iv) the designed operation margins available for the Common
Elements or the other Party’s payload or (v) the designed reliability of the Common Elements or the
other Party’s payload in a material manner; provided, that Loral acknowledges and agrees that the
Satellite configuration and design is not complete as of the date hereof and that ViaSat shall
complete the design and configuration of the Satellite in accordance with Section 2.1(B) of the
Satellite Contract in a fair and evenhanded manner, having due regard to its interests and the
interests of Loral in the operation, capacity and functionality of the Satellite. For purposes of
clarification Loral shall not have any authority under the prior sentence to make changes (directly
or indirectly) to any of the Common Elements of the Satellite without ViaSat’s consent, which
consent shall not be unreasonably withheld or delayed (for purposes of clarification only, it shall
be reasonable for ViaSat to withhold consent from Loral making a change to a Common Element of the
Satellite if in ViaSat’s good faith opinion such proposed change would adversely affect the ViaSat
Payload or the Common Elements). All other design changes (including all changes to the Common
Elements) shall be made only in accordance with Section 2.2.2. The Party making a design change to
its payload shall be solely responsible for paying any increases to the Firm Fixed Price (defined
in the Satellite Contract) that result from such change (including changes to the Common Elements
necessitated by the

- 4 -

 

design change made to such Party’s payload). Similarly, the Party making a design change to
its payload(s) shall receive the full benefit of any reductions in the Firm Fixed Price (as defined
in the Satellite Contract) resulting from such change to its payload.

     2.2.2 Each Party shall have final decision-making authority with respect to all matters
regarding the construction and operation of the Satellite that solely and exclusively impact its
respective payload, provided that the Parties shall nonetheless keep one another reasonably
informed about such actual and contemplated decisions and provided further that ViaSat shall give
the directions to SS/L under the Satellite Contract contemplated by this Agreement in its capacity
as Purchaser under the Satellite Contract. The Parties shall consult with one another with respect
to all matters regarding the launch of the Satellite and all matters regarding the construction and
operation of the Satellite that involve the Common Elements or otherwise impact the payloads of
both Parties, provided that in the event the Parties fail to reach agreement, ViaSat shall
make the final decision in a fair and evenhanded manner, having due regard to its interests and the
interests of Loral in the health and functionality of the Satellite and a timely launch of the
Satellite. Neither Party shall be liable to the other as a result of delays in the construction of
its respective payload(s) or the Common Elements that occur without breach of this Agreement.

     2.2.3 ViaSat agrees to permit SS/L to provide Loral and its designees with the same level of
access to the Work (as defined in the Satellite Contract) as provided to ViaSat under the Satellite
Contract as consistent with the conditions and restrictions as set forth herein; provided, that
ViaSat shall have the right to deny access to any Loral designee who is not a bona fide employee of
Loral, Telesat or one of their subsidiaries to the extent ViaSat has a reasonable, good faith
competitive concern with respect to such designee; provided, further that, prior to any

- 5 -

 

assumption by Telesat of Loral’s rights and obligations hereunder and under the Loral Payload
Agreement, ViaSat shall have the right to remove employees or designees of Telesat or any of its
subsidiaries from meetings or portions of meetings in the event ViaSat has a reasonable, good faith
competitive concern with respect to such employee or designee with respect to such meetings or
portions of meetings. ViaSat will support Loral’s operation of the Loral Payload by periodically
providing (or providing Loral with access to) such technical information concerning transponder
performance, interference considerations and operation, including, without limitation, expected End
of Life, as Loral may reasonably require, including without limitation (i) real-time processed
telemetry for the Loral Payload, (ii) trend and performance analysis for the Loral Payload, (iii)
quarterly health and status reports for the Loral Payload and all Common Elements of the Satellite,
(iv) information which is customarily contained in health reports provided to insurance
underwriters and (v) reasonable responses to questions posed by insurance underwriters should Loral
procure its own insurance on the Loral Payload. Each Party shall be responsible to the extent of
its operational control over the Satellite for ensuring that its payload is operated in accordance
with all applicable governmental (including licensing) requirements.

2.3.  Responsibilities.

     2.3.1 (a) RESERVED.

     (b) In the event of a termination of the Satellite Contract by ViaSat for convenience, or by
SS/L for ViaSat’s default, (i) Loral shall have the right to terminate this Agreement, and (ii)
ViaSat shall promptly reimburse Loral for all amounts Loral has theretofore paid hereunder and the
Loral Payload Agreement (under the terms of such contract as of the date hereof and not
incorporating any liabilities from future amendments), less any such amounts theretofore refunded
to Loral, whereupon ViaSat shall be subrogated to any rights Loral may have to receive

- 6 -

 

such refunds in the future, and ViaSat shall be responsible for all termination costs arising
under the Satellite Contract and the Loral Payload Agreement (under the terms of such contract as
of the date hereof and not incorporating any liabilities from future amendments).

     (c) In the event ViaSat terminates the Satellite Contract for cause, (i) ViaSat shall have the
right to terminate this Agreement, and (ii) Loral shall be entitled to only such reimbursement as
may be provided under the Loral Payload Agreement and its pro rata share (based on payments it has
theretofore made in respect thereof compared with the total payments made by ViaSat and Loral) of
any amounts actually refunded by the launch services provider and insurance broker or carrier or
any other third party in connection with any termination of Satellite launch and associated
services and Initial Insurance.

     2.3.2 ViaSat shall obtain launch and in-orbit operations insurance for the Satellite through
the first anniversary of the launch date (the “Initial Insurance”), and in orbit operations
insurance (at its discretion) for the Satellite after the Initial Insurance and through the End Of
Life (together with the Initial Insurance, “Satellite Insurance”). Loral’s interest in the
Initial Insurance shall be in an amount equal to the Loral Price for the Loral Payload as defined
in Article 3.1; provided that in the event ViaSat is not able to obtain insurance for the entire
Loral Price for the Loral Payload then Loral shall be entitled to obtain supplemental insurance,
and further provided that, in the event that there is not sufficient insurance capacity available
to obtain such supplemental insurance on commercially reasonable terms and conditions, Loral shall
be entitled to participate in any insurance obtained by ViaSat in such proportion so that the
relative insurance for the Loral Payload shall be 15 percent of the amount of the Initial Insurance
and the relative insurance for the ViaSat Payload shall be 85 percent of the amount of the Initial
Insurance. ViaSat shall use commercially reasonable efforts to obtain the Initial Insurance for

- 7 -

 

the Satellite (including, launch and associated services and insurance premium) on
commercially reasonable terms and conditions, and providing for coverage customary in the satellite
insurance market, provided that the Initial Insurance shall be placed with insurance
companies that are in ViaSat’s good faith opinion financially sound and responsible at the time the
relevant coverage is placed or renewed, and attach at launch and continue in effect until no sooner
than one year after launch, shall be for partial loss, constructive total loss and total loss,
including customary exclusions and shall, with respect to the Loral Payload, include Loral (or its
assignee) and its designee (including any lender and/or collateral agent, with waivers of
subrogation therefor if commercially reasonably available) as named insured and additional insured
(and/or loss payee, if required), respectively, and provided further, that for
periods following the first anniversary of the launch of the Satellite, in the event that ViaSat
decides, in its sole discretion, to procure in-orbit insurance for the Satellite, ViaSat shall
offer to obtain in-orbit insurance on the Loral Payload and timely disclose the available terms and
conditions thereof to Loral, but shall obtain such insurance only if so requested by Loral, and be
in an amount confirmed by Loral, in which event Loral will pay Loral’s proportionate share of the
cost thereof. ViaSat agrees to consult with Loral during the procurement process for the Satellite
Insurance. In the event ViaSat decides not to procure in-orbit insurance on the Satellite or Loral
declines ViaSat’s offer to obtain in-orbit insurance on the Loral Payload, Loral may purchase
independent in-orbit insurance for the Loral Payload; provided, that Loral will remain
liable for its applicable portion of the Initial Insurance, and any portion of the in-orbit
insurance purchased for the Loral Payload at Loral’s request and provided further that
Loral shall, in all events, but not prior to the earlier of (i) forty-five (45) days prior to the
expiration of Loral’s existing insurance for the Loral Payload and (ii) the date on which ViaSat
shall have received firm commitments (using reasonable efforts

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to do so in a timely manner) from insurers for the Satellite Insurance it shall have procured
and so long as ViaSat is complying with its obligations under this Section 2.3.2, be entitled to
approach the insurance market and purchase, at its own sole cost and expense, supplemental
insurance on the Loral Payload, in addition to any insurance procured (or to be procured) by
ViaSat. In the event Loral purchases independent or supplemental insurance hereunder, ViaSat shall
provide all commercially reasonable assistance and support to Loral with respect to such insurance
procurement. In the event the Satellite suffers a total loss during the period starting at
Intentional Ignition and ending at End of Life and Loral has elected to participate in such
insurance, then ViaSat shall provide to Loral 15% of the net proceeds actually received from the
Satellite Insurance, which shall represent ViaSat’s sole obligation to Loral for such total loss.
In the event the Satellite suffers a partial loss, ViaSat shall provide to Loral its proportionate
share of the net insurance proceeds actually received from the Initial Insurance and any in-orbit
insurance associated with such partial loss, if Loral shall have elected to participate in such
insurance, calculated in accordance with the terms of the insurance as follows: (1) the Parties
will share with respect to any loss that does not disproportionately affect either the Loral
Payload or the ViaSat Payload in the ratio of 15 percent Loral/85 percent ViaSat; and (2) for
losses that disproportionately affect one Party’s payload, the proceeds shall be adjusted to
reflect such disproportionate impact; this shall represent ViaSat’s sole obligation to Loral for
such partial loss, other than the obligations set forth in Sections 2.3.3 and 2.3.4. Loral shall
cooperate in good faith with ViaSat in connection with the procurement by ViaSat of the Satellite
Insurance, including providing any necessary technical or operational information regarding the
Loral Payload. If there shall be a dispute with insurers regarding the Initial Insurance, or any
Satellite in-orbit insurance in which Loral participates as contemplated by this Section 2.3.2,
ViaSat shall

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not settle any such dispute without first obtaining Loral’s prior written consent, which
consent will not be unreasonably withheld or delayed. For avoidance of doubt, Loral shall be
deemed to have elected to participate in the Initial Insurance.

     2.3.3 The following procedure shall be adhered to by ViaSat in the event of a loss of primary
power that impacts the payloads of both Parties:

     (i) First, components of the Satellite will be powered down as necessary to protect the
overall health of the Satellite;

     (ii) Second, bus components of the Satellite will be powered down to the extent
possible without affecting either Party’s payload or the overall health of the Satellite;

     (iii) Third, the Parties will enter into good faith discussions to determine the
required changes to the Satellite’s operation or configuration; and

     (iv) In the event that the Parties are unable to mutually agree upon such changes
within forty-eight (48) hours after the relevant loss of primary power, then the residual
amount of primary power required to be shed will be allocated between the payloads of ViaSat
and Loral based on the ratio of the nominal full-power operation of the Parties’ respective
payloads. Such allocation will initially be computed based on the final design specification
for each Parties’ respective payload(s), and shall be subject to adjustment when actual
saturated power and efficiency data is determined during IOT (as defined in the Satellite
Contract). Each Party will determine in its sole judgment the appropriate actions to be
taken with respect to its payload(s) to shed the power allocated to it pursuant to this
Subsection (iv).

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     2.3.4 The following procedure shall be adhered to by ViaSat in the event of a failure of a
component part on the Satellite for which the redundant spare components are drawn from a pool that
could serve either the Loral or ViaSat payloads: 

     (i) First, redundant or spare components of the Satellite will be used taking into
consideration the protection of the overall health of the Satellite;

     (ii) Second, subject to clause (iii) below, restoration of a failed component part on
the Satellite by a redundant or spare component on the Satellite shall be done on a first
failed, first restored basis on condition that the redundant or spare component is
technically capable of restoring the failed component and is not already deployed to restore
a failure, provided that, in the event of failures occurring simultaneously or within 24
hours of each other, the redundant or spare component shall first be used to restore the
component on the Satellite which restores the highest amount of the Satellite’s Designed
Payload Capacity; and

     (iii) Third, to the extent all redundant or spare components that are technically
capable of restoring a failed component have already been deployed to restore previous
failures, then the redundant and spare components that have been previously assigned shall
be redeployed on terms as shall be agreed by ViaSat and Loral (using their commercially
reasonable efforts within 120 days after the Effective Date); provided that in the event the
Parties are unable to reach agreement on such terms then ViaSat shall redeploy such spare
and redundant components in a fair and evenhanded manner, having due regard to the interests
of ViaSat and of Loral in the health and functionality of the Satellite.

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2.4. Ownership of the Common Elements. The Common Elements of the Satellite shall be owned
exclusively by ViaSat.

2.5. Cooperation. Each Party shall cooperate with and assist the other Party from time to
time as required to evidence such Party’s title to its applicable portion of the Satellite,
including executing a certificate of ownership or other documents as may be reasonably requested by
such Party to evidence the title and rights to the Satellite set forth herein.

2.6. Satellite Construction and Operational Decisions. ViaSat shall also be entitled to,
with the consent of Loral, which consent shall not be unreasonably withheld or delayed,
decommission the Satellite without further liability to Loral in the event of the destruction,
total loss or constructive total loss of the Satellite or when the on-board fuel on the Satellite
reaches a level, or any circumstance develops, which in ViaSat’s good faith opinion requires that
the Satellite be de-orbited to safely remove it from geostationary orbit in accordance with
applicable law or prudent and customary industry practice.

2.7. Satellite Resources for Loral Payload. Subject to the terms set forth in this
Section 2, ViaSat shall provide for those satellite resources and functions used for the operation
of both the ViaSat Payload and Loral Payload in a fair and evenhanded manner, having due regard to
the interests of Loral and ViaSat, to permit the Loral Payload to be operated on the Satellite in
accordance with the payload technical specifications for the Loral Payload as provided in the
Satellite Contract from time to time. Loral will have the right to instruct the TT&C provider
directly with respect to the command of the Loral Payload, provided such directions do not affect
the Common Elements or the ViaSat Payload.

2.8. Gateway Sharing. If a ViaSat gateway is configured with excess capacity based on the
Final Configuration (as defined in the Satellite Contract) (“Extra Gateway”), then ViaSat shall

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provide written notice to Loral prior to the procurement of Extra Gateway and thereby Loral shall
have the option for a period of 90 days to elect to participate in a sharing arrangement with
ViaSat as described herein for the Extra Gateway (“Gateway Share”). In the event Loral
elects to Gateway Share in accordance with the terms of this paragraph above, then Loral shall have
the right to utilize the excess capacity in the Extra Gateway, upon (i) payment of its pro rata
share (based on the ratio of the capacity to be allocated to Loral to the total capacity of the
Extra Gateway) of the aggregate cost of constructing and testing the Extra Gateway and placing it
in service (including reasonable labor costs and other reasonable expenses of ViaSat in
provisioning such Extra Gateway) and (ii) its written binding commitment to pay its pro rata share,
based on such ratio, of future capital costs of the Extra Gateway and operating and maintenance
expenses of the Extra Gateway from such time forth. In the event Loral elects to Gateway Share in
accordance with the terms above, then ViaSat will operate the Extra Gateway in a fair and
evenhanded manner, having due regard for its and its customers’ interests and the interests of
Loral and its customers. Loral shall maintain reasonable audit rights with respect to the costs
and expenses paid by Loral to ViaSat under this paragraph.

2.9. Branding. For the avoidance of doubt, Loral will not be required to market capacity
on the Loral Payload under the ViaSat name and shall have the right to market such capacity under a
trade name of its own choosing, which need not mention or include the names “ViaSat” or “Leapfrog”.

2.10. Restrictions on Competition. During the term of this Agreement, neither ViaSat nor
any of its affiliates shall market satellite services provided by the Satellite or any Replacement
Satellite (“Competitive Services”) or intentionally use the Satellite or any Replacement
Satellite to provide Competitive Services to user terminals located in Canada; and  none of Loral,
Telesat

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or any of their respective affiliates shall market Competitive Services or intentionally use the
Satellite or any Replacement Satellite to provide Competitive Services to user terminals located
outside of Canada. The parties acknowledge and agree that the agreements and covenants contained
in this Agreement are reasonable and valid in geographical and temporal scope and in all other
respects, and essential to protect the value each party’s interest in the Satellite and any
Replacement Satellite. Nothing in this Section 2.10 shall constrain either Party from using any
other satellite at any other orbital location to provide satellite services that are competitive
with the Competitive Services.

ARTICLE 3

PAYMENT PLAN

3.1. Loral Price for Loral Payload. Based on a total estimated cost of $400 million for
manufacturing, launching, procuring Initial Insurance, and operating the Satellite for 15 years,
Loral would pay an aggregate price of $60 million, as described in more detail below.

     3.1.1 Loral shall pay to SS/L $36.9 million for the Loral Payload portion of the Satellite
(such payment, together with Loral’s share of expenses payable pursuant to Section 3.1.2, the
“Loral Price”) in accordance with the payment plan set forth in the Loral Payload
Agreement.

     3.1.2 The Loral Price is based on the following estimated costs: (i) $246 million for the
Satellite (“Satellite Costs”); (ii) $41 million for the Initial Insurance; (iii) $97
million for Satellite launch and associated services (“Launch Costs”) and (iv) $14.7
million for Satellite telemetry, tracking and command services for 15 years (“TT&C Costs”).
Loral shall pay 15% of the actual Launch Costs directly to ViaSat and 15% of the actual costs for
the Initial Insurance directly to ViaSat. ViaSat will be responsible for 85% of the TT&C Costs
provided under the TT&C Agreement, and Loral will be responsible for the remainder.

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     3.1.3 There shall be no adjustment to the Loral Price hereunder for a price adjustment under
the Satellite Contract due to any capacity adjustment for the ViaSat Payload pursuant to Articles
4.6 and 22.1 of the Satellite Contract. Cost changes under the Satellite Contract resulting from
changes requested by a Party or a Party’s actions or omissions shall be paid as contemplated by
Section 2.2.1. In the event ViaSat makes a change to a Common Element which in its reasonable
opinion is necessary or advisable and such change benefits the Loral Payload proportionately, Loral
will be responsible for fifteen percent (15%) of any increase in the Satellite Cost owed to SS/L
associated with such change to the Common Element(s). Such adjustment will be reflected in an
amendment to this Agreement, and the Payment Plan under the Loral Payload Agreement will be
correspondingly amended.

     3.1.4 The Loral Price above does not include in-orbit insurance costs for the Satellite during
the period after the Initial Insurance. In the event ViaSat decides to procure in-orbit insurance
for the Satellite following expiration of the Initial Insurance and Loral elects to cause the Loral
Payload to be included in that coverage, Loral shall pay to ViaSat 15% of the in-orbit insurance
costs for the Satellite for the period ending after the Initial Insurance and continuing with any
subsequent renewals by ViaSat of in-orbit insurance for the Satellite through the End Of Life.

     3.1.5 Loral shall also pay 15% of any other actual, reasonable and necessary costs,
liabilities or other payments made by ViaSat associated with constructing, transporting, launching,
operating or maintaining the Satellite to the extent not included in the estimated costs described
above, including in orbit insurance renewals costs (but only if Loral elects to include the Loral
Payload in such insurance coverage) (“Other Costs”), provided that such Other Costs
benefit the Loral Payload proportionately with the ViaSat Payload. ViaSat agrees to advise and

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consult with Loral prior to incurring any Other Costs in excess of $1,000,000 in the
aggregate, to provide Loral with a copy of an invoice or other documentation related to the Other
Costs prior to or at the time ViaSat invoices Loral for such costs. For the avoidance of doubt,
examples of Other Costs include, without limitation, storage costs for Satellite in the event of a
launch delay and attorney’s fees required to collect on Satellite Insurance, etc. Examples of
expenses that will not constitute Other Costs include attorney’s fees in connection with the
negotiation of this transaction and advice related hereto, general corporate overhead and executive
management of the Satellite, on site supervision of the manufacture of the Satellite and Satellite
monitoring activities at and following launch.

     3.1.6 The Parties will invoice one another for any amounts under this Section 3. ViaSat shall
submit Loral such invoice no earlier than 30 days prior to ViaSat incurring such cost. Loral shall
pay ViaSat in full all such amounts within 30 days of receipt of such invoice. Late payments by
one Party to the other Party shall be subject to the provisions of Section 20.1 below.

ARTICLE 4

REVENUE FROM BEAMS

4.1. Revenues from Beams. Except as set forth in Section 4.2 below, Loral shall be
entitled to all revenues generated from the Loral Payload and ViaSat shall be entitled to all
revenues generated from the ViaSat Payload.

4.2. Revenue Share Transactions.

     4.2.1 In the event Loral has not on or before October 31, 2009 assigned this Agreement to
Telesat or a third party or otherwise sold or leased the Loral Payload to Telesat or a third party,
then ViaSat agrees, if so requested by Loral, to contribute to Loral for each of its service
gateway facilities the requisite next-generation hub equipment (SMTS equipment) in

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consideration for the list price thereof (the “SMTS Cost”), and thereafter (until the
End of Life of the Satellite) ViaSat shall be entitled to a percentage of the revenues earned by
Loral (or any affiliate of Loral that owns the Loral Payload) from the sale or lease of capacity on
the Loral Payload equal to a fraction, the numerator of which is the SMTS Cost, and the denominator
of which is the sum of (i) the SMTS Cost, (ii) the Loral Price and (iii) the sum of all other
capital expenditures made by Loral and its affiliates in connection with the business in question.
In that event, the parties will enter into appropriate, separate agreements to implement the
foregoing. ViaSat shall maintain reasonable audit rights with respect to the revenue share
transaction described above.

4.3. Exclusivity Provisions. In consideration of ViaSat’s obligations set forth in Section
4.4 below, ViaSat shall through the End of Life of the Satellite remain the sole and exclusive
supplier of end-users broadband terminals (indoor modems and outdoor transceivers, antenna units
and related software) and hub (SMTS) equipment for any two way service operated by a Canadian
Operation (defined below) over the Loral Payload; provided that the terms of this paragraph shall
continue to apply so long as (i) ViaSat remains in the business of the design, manufacture and
distribution of equipment suitable for such applications for Eutelsat or other significant
customers in addition to Loral, (ii) such terminals and equipment are of merchantable quality,
(iii) and such terminals and equipment perform in accordance with final specifications provided to
the Key Distributor (defined below), which shall be generally consistent with the specifications
described on Annex 4.3 attached hereto and ViaSat does not materially breach the contractual
obligations between ViaSat and Loral with respect to such performance specifications (collectively,
the “ViaSat Obligations”). In the event ViaSat is in material breach

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of the ViaSat Obligations, the Canadian Operator shall provide notice to ViaSat of such breach and
provide ViaSat no less than 60 days to cure such breach (and an opportunity to arbitrate the matter
hereunder) prior to the ViaSat Obligations terminating.

4.4. Favored Pricing. ViaSat agrees to provide any Person operating (or selling) a two way
broadband service over the Loral Payload (“Canadian Operator”) with the same price (based
on the then-current total price for terminals (indoor and outdoor units together)) being delivered
to the Key Distributor (defined below) for ViaSat’s next generation Surfbeam equipment
(“Equipment”) that is provided to the Key Distributor; provided, that the Canadian Operator
must purchase the Equipment on the same terms and conditions as the Key Distributor, including
warranty terms, delivery lead times, annual maintenance fees, and support levels (but excluding
terms related to the minimum number of aggregate committed terminals). ViaSat agrees to provide
commercially reasonable pricing for any additional terms or items requested by the Canadian
Operator. For purposes of this Agreement, “Key Distributor” means the distributor (and the
pricing and terms of such distributor) selected by the Canadian Operator among the distributors
purchasing Equipment at the time the Canadian Operator first enters into an agreement to purchase
such Equipment from ViaSat. In the event any distributor is purchasing and taking delivery of user
terminals at a lower total terminal price (indoor and outdoor unit together) than the price
provided to the Canadian Operator (the “Improved Distributor’), ViaSat shall inform the
Canadian Operator of such lower price (and the terms under which the Improved Distributor is
purchasing terminals). The Canadian Operator shall then have the right for a reasonable period of
time (no longer than 60 days) to elect to substitute the pricing and terms of the Key Distributor
(for future orders) for the terminal pricing and terms of the Improved Distributor. Thereafter, in
the event there is a new Improved Distributor, then the Canadian

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Operator shall again maintain the rights to substitute terminal pricing and terms described above.
The terms of this paragraph shall not apply to limited quantities of terminals provided at
discounted (or no cost) pricing that may be sold or loaned to a potential distributor for testing
or demonstration purposes. In the event ViaSat enters into an agreement with a Key Distributor or
Improved Distributor that provides that such Key Distributor or Improved Distributor is to receive
the lowest pricing of any distributor, then the Canadian Operator agrees that ViaSat can charge a
per unit price $1.00 higher to the Canadian Operator than such distributor.

ARTICLE 5

THE SATELLITE

5.1. Satellite Specifications. Subject to Section 2.2, the Satellite shall have the design
and other specifications as are currently set forth in the Satellite Contract. Loral acknowledges
the final specifications of the Satellite will be determined in accordance with Section 2.1B of the
Satellite Contract.

5.2. Modifications of Loral Payload. Subject to ViaSat’s right to designate the Final
Configuration (defined in the Satellite Contract), the location of the beams associated with the
Loral Payload on the Satellite may be modified by SS/L as requested by Loral prior to January 25,
20081 in accordance with the Satellite Contract. Any costs associated with such
modification, if any, shall be borne solely by Loral.

5.3. ViaSat Actions. Subject to Article 2 hereof, Loral acknowledges that it has reviewed
the Satellite Contract (as in effect as of the date hereof) and agrees to all the terms and
conditions contained therein and that it shall be bound by all actions taken by ViaSat with respect
thereto, and with regard to the selection of the launch services provider (or with regard to the
launch

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services contract), selection of the broker for insurance for the Satellite (or with regard to the
insurance broker contract), selection of the insurance for the Satellite (or with regard to the
insurance contracts) and other service providers (and other service provider contracts) associated
with the design, construction, testing, launch and operation of the Satellite. ViaSat will,
nonetheless, consult with Loral concerning such actions and will make its decisions in a fair and
evenhanded manner, having due regard to its interests and the interests of Loral in the health and
functionality of the Satellite and the timely launch of the Satellite.

5.4. Limited Representations. Loral acknowledges that:

     VIASAT HAS NOT MADE, NOR DOES IT MAKE, ANY REPRESENTATION OR WARRANTY, WHETHER WRITTEN OR
ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF DESIGN, OPERATION,
CONDITION, QUALITY, SUITABILITY OR MERCHANTABILITY OR FITNESS FOR USE OR FOR A PARTICULAR PURPOSE,
ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, WITH REGARD TO THE SATELLITE OR
ANY OTHER DELIVERABLE ITEM UNDER THE SATELLITE CONTRACT, AND VIASAT HAS NOT MADE ANY WARRANTY WITH
RESPECT TO THE PERFORMANCE OF ANY LAUNCH VEHICLE.

5.5. No Fault. Loral agrees to be bound by the no-fault, no-subrogation inter-party waiver
of liability and related indemnity provisions provided in the Launch Services Agreement and to
cause its contractors and subcontractors at any tier (including suppliers of any kind) that are
involved in any performance of this Agreement and any other person who through Loral has an
interest in the Satellite or any transponder thereon, as required by the Launch Services Agreement,
to accede to such waiver. Loral shall execute and deliver any instrument that may be

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reasonably required by the Launch Agency to evidence its agreement to be bound by such waiver. In
no event shall such no-fault, no-subrogation inter-party waiver and related indemnity provisions
have any effect on the rights, obligations, and liabilities of and between Loral and ViaSat under
this Agreement or under the other Transaction Documents, and Loral shall cause Telesat or any other
purchaser of the Loral Payload to be bound by the provisions of this Section.

5.6. Indemnity. (a) Loral shall indemnify, defend, and hold harmless ViaSat, its officers,
directors, shareholders, employees, subcontractors and agents (“ViaSat Indemnitees”) from
and against all liability, damages, losses, claims, demands, actions, judgments and costs,
including legal fees arising from (i) damage to any property, and for injury to or death of any
person, including employees or agents of ViaSat and any third parties, resulting from any willful
misconduct of Loral relating to this Agreement; (ii) any claim of interference with or disruption
of communications caused by any person using, accessing, receiving transmissions or communicating
with the Loral Payload; (iii) claims for libel, defamation, passing off, slander, copyright
infringement, other intellectual property right infringement or other claims relating to the
content of programming, video, data, voice or other material transmitted on, to or from the Loral
Payload; (iv) any claims relating to any warranty or representation made by Loral to a third party;
(v) to the extent permitted by law, any fines, penalties and forfeitures arising out of or relating
to any proceeding against or involving ViaSat Indemnitees arising out of any alleged violation of
any law by Loral, its affiliates, agents or customers; (vi) any claims alleging infringement of any
letters, patent, copyright, trademark or other intellectual property rights caused by the Satellite
or the use or operation thereof.

     (b) ViaSat shall indemnify, defend, and hold harmless Loral, its officers, directors,
shareholders, employees, subcontractors and agents (“Loral Indemnitees”) from and against
all

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liability, damages, losses, claims, demands, actions, judgments and costs, including legal
fees arising from (i) damage to any property, and for injury to or death of any person, including
employees or agents of Loral and any third parties, resulting from any willful misconduct of ViaSat
relating to this Agreement; (ii) any claim of interference with or disruption of communications
caused by any person using, accessing, receiving transmissions or communicating with the ViaSat
Payload; (iii) claims for libel, defamation, passing off, slander, copyright infringement, other
intellectual property right infringement or other claims relating to the content of programming,
video, data, voice or other material transmitted on, to or from the ViaSat Payload; (iv) any claims
relating to any warranty or representation made by ViaSat to a third party; (v) to the extent
permitted by law, any fines, penalties and forfeitures arising out of or relating to any proceeding
against or involving Loral Indemnitees arising out of any alleged violation of any law by ViaSat,
its affiliates, agents or customers; (vi) any claims alleging infringement of any letters, patent,
copyright, trademark or other intellectual property rights caused by the Satellite or the use or
operation thereof.

     (c) NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY FOR
INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT.

5.7. Action to Protect Satellite. ViaSat shall have sole and exclusive control of
operation of the Satellite, subject to consultation with Loral, and shall exercise its control in a
fair and evenhanded manner, having due regard to its interests and the interests of Loral in the
health and functionality of the Satellite. Notwithstanding anything to the contrary herein, if
circumstances occur which in ViaSat’s reasonable judgment pose a threat to the stable operation or
health of the

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Satellite, including without limitation any failure of the Satellite to meet its performance
specifications (including but not limited to permanent or recurrent shortage of electric power or a
material breach in the operating or Satellite payload access procedures by Loral or its designees
or customers), ViaSat shall have the right to take any action it reasonably believes necessary to
protect the Satellite, including discontinuance or suspension of operation of the Satellite, any
transponders (including the Loral Payload) without any liability to Loral, its designees or
customers so long as it provides notice to Loral in accordance with the terms of this paragraph
below and proceeds in a fair and evenhanded manner, without discrimination against the Loral
Payload or the customers it serves. ViaSat shall provide Loral as much notice as practical under
the circumstances of any such discontinuance or suspension of operation of the Satellite payload or
the Loral Payload (or portion thereof). Under no circumstances shall ViaSat be responsible for any
loss or damage to Loral, its designees or customers for any action taken by ViaSat in conformity
with this Section 5.7, except to the extent that ViaSat’s actions are not taken in good faith and
result in a disproportionate damage to the Loral Payload or the customers it serves.
Notwithstanding anything to the contrary herein, ViaSat shall operate the Satellite in accordance
with applicable regulations and subject to applicable regulatory authorities.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF THE PARTIES

Each of the Parties, as of the date hereof, hereby represents and warrants to the other, as
follows:

6.1. Organization and Standing. It is a corporation duly organized, validly existing and
in good standing under the laws of the place of its incorporation and has all requisite corporate
power and authority to own, lease and operate its properties and to carry on its businesses as now
being conducted, except where the failure to be so organized, existing and in good standing or to

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have such power and authority would neither have a material adverse effect on its financial
condition, business or results of operation nor materially impair or delay its ability to
consummate the transactions contemplated hereby (a “Material Adverse Effect”).

6.2. Authority Relative to this Agreement. It has all corporate power and authority to
execute and deliver this Agreement and the other Transaction Documents, and to perform all of its
obligations hereunder and thereunder. Its execution and delivery of this Agreement and the other
Transaction Documents to which it is a party and its performance of its obligations hereunder and
thereunder have been duly authorized by all necessary and proper corporate action. This Agreement
and the other Transaction Documents to which it is a party have been duly executed and delivered by
it and constitute the legal, valid and binding obligations, enforceable against it in accordance
with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws relating to or affecting creditors’ rights and subject, as to enforceability, to
general principles of equity (regardless whether enforcement is sought in a proceeding in equity or
at law).

6.3. Noncontravention. Its execution and delivery of this Agreement and the other
Transaction Documents to which it is a party, its performance of its obligations to be performed
hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby
will not (i) contravene or conflict with its charter, by-laws or other organizational documents;
(ii) contravene or conflict with or constitute a violation of any provision of any laws or license
to which it or any of its properties or assets is subject; or (iii) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, cause it to make an offer to
purchase under, create in any Person the right to accelerate, terminate, modify or cancel, require
any notice or give rise to a loss of any benefit under, any contract, lease, lien or other

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arrangement to which it is a party or by which is bound or to which any of its properties or assets
is subject or result in the creation or imposition of any liens on any of its assets, other than
any loss of benefit, lien or any other such event which would not have a Material Adverse Effect.

6.4. Governmental Proceeding; Litigation. There is not in effect any judgment, order,
writ, decree, stipulation or injunction by or with any governmental entity to which it or any of
its Affiliates is party or by which it or any of its Affiliates or any properties or assets of any
of the foregoing is bound, and which relates to or affects this Agreement or the transactions
contemplated hereby, and neither it nor any of its Affiliates is party to, engaged in or, to its
Knowledge, threatened with any Action which relates to or affects this Agreement or the
transactions contemplated hereby, and, to its Knowledge, no event has occurred and no condition
exists which could reasonably be expected to result in any such Action. Neither it nor any of its
Affiliates is in default under or with respect to any judgment, ruling, order, writ, decree,
stipulation or injunction of the type described in this Paragraph.

6.5. Lawful Purposes. Each of ViaSat and Loral agrees, and each will require any lessee or
user of the Satellite, including the Loral Payload, to agree to restrict its use of the Satellite
(including the Loral Payload) transmission capacity only for any lawful purpose and agrees to
comply in all material respects with all applicable laws and government regulations. Each party
shall be solely responsible for obtaining all governmental authorizations, and complying with all
applicable governmental regulations, relating to the construction and operation of its respective
payload. Each party acknowledges that governmental licensing for its payload will need to be
coordinated with the governmental licensing of the other Party’s payload, including potentially
requiring an exchange of letters between the licensing administrations, and each Party hereby
agrees to consult and cooperate with the other Party in all reasonable respects in such regard.

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ARTICLE 7

REPLACEMENT RIGHTS

7.1. End of Life. In the period beginning fifty (50) months and ending forty (40) months
prior the then-expected End of Life of the Satellite, Loral shall send written notice in good faith
(the date of such notice, the “Replacement Satellite Notice Date”) to ViaSat stating
whether or not it desires to enter into a beam sharing agreement (consistent with the terms hereof)
for any ViaSat replacement satellite (“Replacement Satellite”) to be placed in the 115 WL
or a nearby (within one degree) orbital location (any such location, the “Subject Slot”).
In the event that Loral provides such notice to ViaSat by the Replacement Satellite Notice Date and
ViaSat contracts for a Replacement Satellite in the Subject Slot, ViaSat shall, so long as it does
not (after ViaSat using commercially reasonable efforts to design a payload similar to the Loral
Payload onto such Replacement Satellite) substantively adversely affect the Replacement Satellite
(from a technical, reliability, regulatory and risk perspective), offer to Loral the opportunity to
enter into an arrangement consistent with the terms herein with respect to the Replacement
Satellite, providing Loral with substantially similar rights and benefits to those provided by the
arrangement contemplated hereby, including, without limitation, provisions substantially similar to
this Section 7.1 with respect to Loral’s right to an arrangement consistent with the terms herein
with respect to replacement satellites. In the event ViaSat contracts for the Replacement
Satellite (or replaces a replacement satellite) and ViaSat was unable to place a Loral payload on
such Replacement Satellite because it substantively adversely affected the Replacement Satellite,
Loral shall maintain the right co-locate a Satellite in the Subject Slot and coordinate such
satellite in accordance with the Cooperation Agreement. In the event ViaSat

- 26 -

 

contracts for the Replacement Satellite (or replaces a replacement satellite) and Loral has not
expressed its desire to enter into an arrangement with ViaSat for the Replacement Satellite by the
Replacement Satellite Notice Date, then Loral shall not be entitled to place a satellite in the
Subject Slot for the life of such satellite and Loral will (at ViaSat’s expense) cooperate as
ViaSat shall reasonably request, in all necessary or appropriate regulatory actions and proceedings
to effectuate the foregoing, including, without limitation, granting ViaSat a sublicense for the
life of such replacement satellite to Loral’s rights to the Subject Slot, as applicable. ViaSat
shall have the initial right to replace the Satellite with the Replacement Satellite (and any
additional replacement satellites) at the Subject Slot but in the event ViaSat elects not contract
for the Replacement Satellite (or any other replacement satellite) at its End of Life, then Loral
will have the right thereafter to place a satellite of its own2 in the Subject Slot, and
ViaSat will (at Loral’s expense) cooperate as Loral shall reasonably request, in all necessary or
appropriate regulatory actions and proceedings to effectuate the foregoing, including, without
limitation, granting Loral a sublicense for the life of such replacement satellite to ViaSat’s
rights to the Subject Slot, as applicable. For the avoidance of doubt, the Parties agree that the
Parties’ rights with respect to replacement satellites in the Subject Slot are not limited to the
first replacement satellite, but shall apply to all replacement satellites, and that similarly,
Loral’s right to place its own satellite in the Subject Slot shall apply not only to ViaSat’s
election not
to contract for a Replacement Satellite, but to all follow-on replacement satellites
that are thereafter placed in the Subject Slot.

7.2. Replacement Right. If, after reasonable consultation, ViaSat and Loral are unable to
reach agreement concerning the terms and conditions of their joint financial participation in a
satellite to replace the Satellite before the end of its useful life, ViaSat shall have the right
(but

- 27 -

 

not the obligation) to purchase the Loral Payload from Loral (at no cost) and replace the Loral
Payload with an alternative payload on an alternate satellite (“Alternate Satellite”) with
equal or better capacity and coverage as the Loral Payload (“Substitute Payload”) with
reasonably minimal interruption in service or changeover costs to Loral or its customers. ViaSat
shall provide the Substitute Payload for use by Loral through the projected End of Life of the
Satellite (“Original Satellite Life”) at no additional cost to Loral on terms and
conditions that preserve for Loral benefits equivalent to those contemplated by this Agreement,
including without limitation its rights under Section 7.1. ViaSat shall provide Loral with access
to the Substitute Payload for the life of the Alternate Satellite beginning after the Original
Satellite Life (such period referred to herein as the “Follow On Period”) on terms and
pricing consistent with Article 3 above, with appropriate reduction in price to reflect the shorter
duration of the Follow On Period. Loral shall (at ViaSat’s expense) cooperate, as ViaSat shall
reasonably request, in all necessary or appropriate regulatory actions and proceedings to
effectuate the foregoing.

ARTICLE 8

REASONABLE CHANGES

8.1. ViaSat Reasonable Changes. ViaSat agrees to negotiate in good faith and use
reasonable efforts to amend the terms of this Agreement as may be reasonably requested by Loral to
accommodate Loral in its assignment of the terms of this Agreement and/or the sale of the Loral
Payload.

8.2. Loral Reasonable Changes. Loral agrees to negotiate in good faith and use reasonable
efforts to amend the terms of this Agreement as may be reasonably requested by ViaSat to
accommodate ViaSat in obtaining investments for the business operated with the ViaSat Payload.

- 28 -

 

ARTICLE 9

RESERVED

ARTICLE 10

RESERVED

ARTICLE 11

RESERVED

ARTICLE 12

EFFECTIVE DATE OF THIS AGREEMENT

This Agreement shall become effective on the date (the “Effective Date”) set forth on the
signature page hereof.

ARTICLE 13

PLEDGES

13.1. Rights to Pledge. Each Party shall have the right to pledge, mortgage, charge, grant
any security interest in, or otherwise encumber all or part of its interest in its respective
payload (and, in the case of ViaSat, the Common Elements), Deliverables, work-in-process under the
Satellite Contract and such Party’s rights under this Agreement and the agreements contemplated
hereby, provided that:

     (a) such Party shall remain liable for all obligations hereunder;

     (b) the encumbrance shall be subject to any necessary approvals or restrictions of any
relevant governmental authority or telecommunications administration; and

- 29 -

 

     (c) any financing by Loral of the Loral Payload shall be structured so as not to interfere
with or preclude any financing by ViaSat of the other portions of the Satellite and shall include
intercreditor arrangements on terms reasonably satisfactory to ViaSat and its creditors that shall
facilitate such financing by ViaSat, provided that, subject to the foregoing, ViaSat shall work
cooperatively with Loral and Telesat and use reasonable efforts to accommodate their current and
planned financing requirements with respect to the Loral Payload; and

     (d) satisfactory arrangements as agreed between the Parties (including a Party’s lenders)
shall have been made to recognize and protect the rights of the other Party and its lenders under
this Agreement and the Transaction Documents.

Each of the Parties acknowledges and agrees that the other Party, in the course of the negotiation
of this Agreement, used all commercially reasonable efforts to avoid any restriction on its ability
to pledge its assets for any purpose, and that those negotiations resulted in the foregoing
provisions.

ARTICLE 14

RESERVED

ARTICLE 15

RELATIONSHIP OF THE PARTIES

15.1. No Partnership. The rights and obligations of the Parties hereunder shall be
individual, not joint or collective. It is not the intention of the Parties to create, nor shall
this be deemed or construed to create a partnership, joint venture, association or trust, or as
authorizing any Party to act as an agent, servant or employee for any other party for any purpose
except as explicitly set forth herein.

- 30 -

 

ARTICLE 16

TAXES

     ViaSat shall be responsible for the payment of any and all sales, use, gross receipts, excise
and other taxes (collectively “Taxes”) assessed solely and exclusively on the construction,
use and operation or addition of value to its payload on the Satellite, and ViaSat shall indemnify
Loral from any such Taxes. Loral shall be responsible for the payment of any and all Taxes assessed
solely and exclusively on the construction, use and operation or addition of value to the payload
on the Satellite, and Loral shall indemnify ViaSat from any such Taxes. The Parties shall share
responsibility (ViaSat 85% and Loral 15%) for any and all Taxes assessed on the construction, use
and operation or addition of value to any and all Common Elements, and each Party shall indemnify
the other Party from its respective portion of such Taxes.

ARTICLE 17

ENTIRE AGREEMENT, TRANSACTION DOCUMENTS

17.1. Transaction Documents. The Parties agree and acknowledge that the following
agreements are being entered into contemporaneously herewith (such agreements, the “Transaction
Documents”):

     (a) the Satellite Contract

     (b) the Loral Payload Agreement

     (c) the TT&C Agreement

     (d) the Option Agreement

     (e) the Cooperation Agreement

17.2. Entire Agreement. This Agreement and the other Transaction Documents together
constitute the entire agreement and understanding between the Parties in connection with the

- 31 -

 

transactions hereby contemplated. The Transaction Documents supersede all previous agreements,
arrangements and understandings between the Parties with regard to such transaction which shall
cease to have any further force or effect. No Party is entering into any of the Transaction
Documents or any of the arrangements hereby contemplated in reliance upon any representation,
warranty or undertaking which is not expressly set out or referred to in any of the Transaction
Documents.

ARTICLE 18

TERMINATION

18.1. Termination. Unless terminated sooner pursuant to this Section 18, this Agreement
shall continue in full force and effect until the end of life of the last replacement satellite
placed in the Subject Slot pursuant to Section 7.1. This Agreement may be terminated as follows:

     (a) By mutual written agreement of the Parties;

     (b) By either Party by written notice to the other and in accordance with Article 20 hereof in
the event of a default by the other Party provided such default meets the requirements stated in
said Article 20; and

     (c) By either Party by written notice to the other if the other Party becomes insolvent,
enters into a general suspension of payments, bankruptcy, makes a general assignment for the
benefit of creditors, admits in writing its inability to pay debts as they mature, suffers or
permits the appointment of a receiver for substantially all of its business or assets, or avails
itself of or becomes subject to any other judicial or administrative proceeding that relates to
insolvency or protection of creditors’ rights (each an “Insolvency Event”). In the event
Loral has an Insolvency Event, then ViaSat shall have a right of first refusal or option to
purchase the Loral

- 32 -

 

Payload on the same terms and conditions as may be offered to any third party in a sale of
such Party’s assets, including any auction or liquidation
sale.

18.2. Effect of Termination. Termination of this Agreement shall not affect: (i) either
Party’s obligations under any other Transaction Document; or (ii) either Party’s obligations
pursuant to Articles 2, 5.6, 5.7, 13, 15, 16 and 22-25 of this Agreement, which obligations shall
expressly continue for so long as both Parties possess an economic interest in the Satellite, and
Alternate Satellite, or a replacement satellite contemplated by Section 7.1, as the case may be.

ARTICLE 19

FORCE MAJEURE

19.1. Force Majeure. Neither Party shall be liable for nonperformance or delays in
performance when caused by acts or events which are beyond the reasonable control of the delayed
Party, including but not limited to the following: acts of God, acts of the public enemy, acts
government in its sovereign (and not contractual) capacity, strikes or other labor disturbances,
hurricanes, earthquakes, fires, floods, epidemics, embargoes, war, and riots (“Force
Majeure”). In the event of any such delay, the date of delivery or of performance of the
obligation affected by the force majeure event shall be extended for a period equal to the effect
of time lost by reason of the delay.

19.2. Notice. A Party claiming delay in delivery or performance due to an event of Force
Majeure as set forth herein shall as soon as practicable send written notice thereof and a
statement of particulars to the other Party. Upon the cessation of the Force Majeure event, the
Party claiming delay in delivery or performance of its obligations hereunder shall promptly notify
the other Party of such cessation.

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19.3. Affected Party. The Party affected shall take appropriate measures to minimize or
remove the effects of the event of Force Majeure and, within the shortest time possible, shall
attempt to resume performance of the obligations affected by the event of force majeure.

19.4. Mitigation Duty. Each Party shall use its reasonable efforts to minimize the losses
and damages caused and/or to be caused to the other Party by an event of Force Majeure. Both
Parties shall consult as soon as possible to find an appropriate solution.

ARTICLE 20

DEFAULT

20.1. Monetary Default. Should either ViaSat or Loral fail to make timely payment of any
amount required to be paid to the other Party hereunder in accordance with the provisions defined
herein, and such failure to pay shall have continued for a period of 60 days, the Party in breach
shall pay interest to the other Party at the 30-day LIBOR rate plus three percent (3%) per annum in
respect of the amounts in arrears. Such interest shall be calculated on a daily basis from the
date payment was due until the date payment is received by the non-breaching Party. Should the
Party in breach continue to fail to make such payment for a period of nine (9) months in the
aggregate, then in addition to the interest amount due from the breaching Party, the other Party
shall have the right to terminate this Agreement and to claim damages from the Party in breach in
accordance with the provisions of Paragraph 20.3 hereof.

20.2. Non-Monetary Default. Should either ViaSat or Loral fail to cure a material breach
of any provisions of this Agreement (other than provisions regarding payment of monies, which are
provided for in Paragraph 20.1 above) within forty-five (45) days after receipt of written notice
from the other Party outlining such breach, then the other, non-breaching Party shall have the

- 34 -

 

right to terminate this Agreement and to claim damages from the Party in breach in accordance with
the provisions of Paragraph 20.3 hereof.

20.3. Indemnification. If the other Party suffers any cost, liability or loss as a direct
result of a material breach of this Agreement by any Party, and such breach shall not have been
cured by such Party within forty-five (45) days from receipt of notice of breach, the Party in
breach shall indemnify and hold the non-breaching Party harmless in respect of any such cost,
liability or loss; provided always, however, that in no event shall a Party be liable under any
theory of tort, contract, strict liability, or other legal or equitable theory, for any indirect,
special, incidental, or consequential loss or damage (including without limitation, loss of profit
or business opportunity).

ARTICLE 21

CONFIDENTIALITY

21.1. Press Release. No press release, announcement or disclosure to a third party
concerning the transactions contemplated hereby will be made by any Party hereto without the prior
consent of the other Party hereto, except as such release, announcement or disclosure may be: (a)
required by law or the rules of any applicable securities exchange; (b) necessary to be made to a
Party’s lenders for financing purposes provided that such lenders agree to maintain the
confidentiality of any such disclosed information on customary and reasonable terms; or (c) is or
becomes publicly known, otherwise than as a consequence of a breach of this Agreement.

21.2. NDA. The Parties have executed a Confidentiality Agreement dated March 8, 2006 (as
amended on April 27, 2007) covering disclosure of information that may be made in connection with
the Parties’ performance under this Agreement and the Transaction Documents. The rights

- 35 -

 

and obligations thereunder shall apply to all such proprietary information disclosed in the
implementation or performance of this Agreement.

ARTICLE 22

ASSIGNMENT

22.1. General Assignment. This Agreement shall be binding upon and shall inure to the
benefit of the Parties hereto and their respective successors and permitted assigns. Loral may
assign its rights and obligations hereunder in part or whole without the consent of the other Party
so long as the relevant assignee entity expressly assumes all of the assigning Party’s rights and
obligations hereunder; provided, that such assignee shall also agree to be bound and act in
accordance with the terms of the Cooperation Agreement; provided, further that such assignee shall
not be entitled to the benefits and rights set forth in Sections 4.4 or 7 without the prior written
consent of ViaSat (such consent not to be unreasonably withheld). ViaSat hereby provides prior
written consent for Loral to assign this Agreement to Telesat as long as Telesat expressly assumes
all of Loral’s rights and obligations hereunder. Neither Party shall provide any technical
information related to the Satellite to any third party (including Affiliates) unless and until
such third party executes a confidentiality agreement with the other Party with such terms as such
other Party reasonably determines are appropriate for such third party, and the provision of such
technical information complies with ITAR. Neither Party shall transfer its interest in the
Satellite to any party who does not assume such Party’s obligations hereunder. No assignment of
this Agreement shall relieve the assigning Party of its financial obligations hereunder, except
that an assignment of this Agreement by Loral to Telesat or any other entity with a credit rating
on senior debt of B2 or better from Moody’s (or the equivalent) shall so relieve Loral, and an
assignment of this Agreement by ViaSat to a wholly-owned subsidiary of

- 36 -

 

ViaSat or ViaSat majority-owned or controlled joint venture formed to own and operate the Satellite
and conduct its business or any other entity with a credit rating on senior debt of B2 or better
from Moody’s (or the equivalent), in connection with the transfer of ViaSat’s interest in the
Satellite to such entity shall so relieve ViaSat. These provisions shall apply to successive
assignments of this Agreement. References to a Party following an assignment permitted hereunder
shall, following such assignment, refer to such Party’s assignee. In the event that Loral assigns
its rights and obligations pursuant to this Article 22.1 to Telesat or another non-U.S. entity,
ViaSat agrees that it shall use commercially reasonable efforts to obtain all permits, consents,
approvals, or licenses that may be required by the United States Federal Communications Commission,
Department of State Directorate of Defense Trade Controls, or the Department of Commerce Bureau of
Industry and Security, or other relevant United States government or regulatory agency, for the
performance of its obligations hereunder to the assignee, and, in particular, to authorize ViaSat
to provide such technical data or defense services to the assignee concerning the Satellite and its
operations sufficient for ViaSat to satisfy its obligations under this Agreement. It is understood
and agreed that ViaSat shall have the right to assign this Agreement as otherwise permitted by this
Section 22.1 excluding ViaSat’s rights and obligations under Sections 4.2, 4.3 and 4.4,
provided that ViaSat shall remain fully responsible for the obligations so excluded from
assignment; provided further that in the event ViaSat partially assigns this
Agreement in accordance with the foregoing clause, the parties will enter into appropriate,
separate agreements reflecting such partial assignment.

22.2. Security Interests. Either Party may assign its rights under this Agreement without
the consent of the other Party as security and, subject to Section 13.1, otherwise grant security
interests in its rights hereunder to lenders that provide financing to such Party, and the other

- 37 -

 

Party agrees to consent to such assignment in a form reasonably requested by the first Party and
any lenders and/or investors providing financing to ViaSat.

ARTICLE 23

GOVERNING LAW

23.1. Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of California without giving effect to the choice of law principles therein.

ARTICLE 24

DISPUTE RESOLUTION

24.1. Arbitration. The Parties shall use reasonable efforts to settle all disputes by
mutual agreement. Prior to the institution of any arbitration claims, the Parties shall use
reasonable efforts to settle all disputes arising out of or in connection with the interpretation,
performance, or nonperformance by either Party of its obligations under this Agreement. If a
dispute is not settled within thirty (30) days after notification by one Party to the other that a
dispute exists, the dispute shall be referred to and finally resolved by arbitration as provided by
this Section.

- 38 -

 

     The arbitration shall be administered by the American Arbitration Association (the
“AAA”), in accordance with the AAA Arbitration Rules as modified by this Agreement. The
cost of arbitration, including the fees and expenses of the arbitrator or arbitrators, shall be
shared equally by the Parties unless the award otherwise provides. Each Party shall bear its own
attorneys’ fees and costs associated with the arbitration. The arbitration award shall be final
and binding upon the Parties, not subject to appeal to the extent that said waiver may be validly
made, and carried out without delay by them. Judgment on the award may be entered in any court of
competent jurisdiction. The arbitration shall take place in Denver, CO and be conducted in the
English language. The arbitrators shall determine the matters in dispute in accordance with the
laws of California.

     Disputes shall be administered by a panel of three (3) arbitrators, one of whom shall be
selected by each of the Parties and the third of whom shall be selected jointly by the first two
arbitrators. All arbitrators shall: (a) have no relationship to any of the Parties; and (b) be
practicing attorneys or judges with experience in international commercial agreements or
communications matters. The arbitral panel shall permit the Parties to conduct discovery of each
other’s books, records and witnesses, including the taking of depositions and the answering of
interrogatories.

     Notwithstanding the foregoing, a party may obtain preliminary or temporary injunctive relief,
including specific performance, at any time from a court of competent jurisdiction where
irreparable harm to that party is threatened by another party’s acts or omissions; provided,
however, that requests for permanent injunctive relief shall be arbitrated pursuant to the process
set forth above. Pending final resolution of any dispute (including the informal dispute
resolution process and litigation), each party hereunder shall perform all its obligations under
this Agreement.

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ARTICLE 25

NOTICES

25.1. Notices. All notices regarding technical or operational matters requiring immediate
attention will be given by telephone followed within a reasonable period of time by written
notification by facsimile or electronic mail transmission and shall be deemed to be received upon
actual contact with the specified contact person by telephone or upon confirmation of a facsimile
or electronic mail transmission. All other notices and requests will be in writing delivered to
the address(es) set forth below and shall be deemed to be received upon actual delivery by a
recognized courier service or personal delivery or upon confirmation of a facsimile or electronic
mail transmission:

     If to Loral, to:

Avi Katz, General Counsel

600 Third Avenue

New York, New York 10016

If to ViaSat, to:

Keven Lippert

Vice President, General Counsel

6155 El Camino Real

Carlsbad, CA 92009

Either Party may by notice in accordance with this Section change the person or address to which
such notices, requests or other communications are to be given.

- 40 -

 

ARTICLE 26

MISCELLANEOUS

26.1. Headings. The headings in this Agreement and the annexes hereto are inserted for
convenience of reference only and shall not constitute a part hereof.

26.2. Severability. Any provision of this Agreement which is invalid or unenforceable in
any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining provisions hereof, and any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

26.3. Expenses. Except as specifically provided otherwise in this Agreement, the Parties
hereto shall pay all of their own expenses relating to the transactions contemplated by this
Agreement, including, without limitation, the fees and expenses of their respective counsel,
accountants and financial advisors.

26.4. Amendment. No variation or amendment of this Agreement shall be valid unless it is
in writing and signed by or on behalf of both Parties to this Agreement.

26.5. Waivers. No failure or delay by any Party in exercising any right or remedy provided
by law under or pursuant to this Agreement shall impair such right or remedy or be construed as a
waiver or variation of it or preclude its exercise at any subsequent time and no single or partial
exercise of any such right or remedy shall preclude any other or further exercise of it or the
exercise of any other right or remedy.

26.6. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one and the same
document.

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26.7. Survival of Obligations. The obligations of the Parties under this Agreement which
by their nature logically would be expected to survive termination, cancellation, or expiration of
this Agreement shall survive termination, cancellation, or expiration of this Agreement for the
applicable time period specified in such section or, if no time period is specified, for a
reasonable period of time under the circumstances.

- 42 -

 

THIS AGREEMENT HAS BEEN SIGNED THIS 11th DAY OF JANUARY, 2008.

	 	 	 	 	 	 	 
	VIASAT, INC.

	 	 	 	LORAL SPACE & COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Keven K. Lippert

	 	 	 	/s/ Janet T. Yeung	 	 
	 

By: Keven K. Lippert

	 	 	 	 

By: Janet T. Yeung
	 	 
	Title: Vice President and General Counsel

	 	 	 	Title: Vice President and Assistant Secretary	 	 

 

 

SCHEDULE 1

DEFINITIONS

In this Agreement the terms set forth hereinafter shall have the meanings defined in this Article:

     “Action” means any action, suit or proceeding at law or in equity, arbitration,
inquiry, investigation or governmental, administrative, regulatory or other proceeding by or before
any governmental entity.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with such Person. For purposes of the
immediately preceding sentence, the term “control” (including, with correlative meanings, the terms
“controlling”, “controlled by” and “under common control with”), as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such Person, whether through ownership of voting securities, by
contract or otherwise.

     “Agreement” means this agreement (including the Schedules and Annexes hereto), as the
same may be amended, modified or supplemented from time to time in accordance with its terms.

     “Confidentiality Agreement” means the confidentiality agreement entered into by ViaSat
and Loral on March 8, 2006 (as amended on April 27, 2007).

     “Effective Date” shall have the meaning set forth in Article 12 hereof.

     “End of Life” means the earlier of (i) the destruction, total loss or constructive
total loss of the Satellite,, and (ii) the date on which the actual orbital maneuver life of the
Satellite achieves its de-orbit threshold in accordance with applicable law or prudent and
customary industry practice.

     “Knowledge” means actual knowledge after reasonable inquiry and investigation.

 

 

     “Launch Agency” means the provider responsible for conducting the launch services for
the Satellite pursuant to the Launch Services Agreement.

     “Launch
Services Agreement” or “LSA” means the contract entered into by ViaSat
with a Launch Agency, which contract provides for launch services for the Satellite, as such
contract may be amended from time to time in accordance with its terms.

     “LIBOR” means the rate of interest per annum, at any relevant time, at which thirty
(30) day U.S. dollar deposits are offered at such time in the London interbank market.

     “Orbital Slot” means the geostationary orbital slot located at 115oW.L.

     “Party” and “Parties” refers to ViaSat and Loral, and their respective
permitted successors and assigns hereunder.

     “Person” means any individual, partnership, joint venture, trust, corporation, limited
liability entity, unincorporated organization or other entity (including a governmental entity).

     “Satellite” means the SS/L satellite designated as ViaSat-1 and to be built and
delivered by SS/L to ViaSat pursuant to the Satellite Contract.

     “SS/L” shall have the meaning set forth in the preamble to this Agreement.

     “Subsidiary” of a specified Person means any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a majority of the
Board of Directors or other Persons performing similar functions are directly or indirectly owned
by such Person.

     “Term” means the term of this Agreement, beginning as of the Effective Date and
terminating on the Satellite End of Life date or such other date as mutually agreed by the Parties.

     “TT&C” means telemetry, tracking and command.

- 2 -

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