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Exhibit 10.4    
    

 
 

Globalstar, Inc.    
    
    2006 Equity Incentive Plan    
    

   Globalstar, Inc.

2006 Equity Incentive Plan  

        1.    ESTABLISHMENT, PURPOSE AND TERM OF PLAN.    

        1.1    Establishment.    The Globalstar, Inc. 2006 Equity
Incentive Plan (the "Plan") is hereby established effective as of July 12, 2006, the date of its
approval by the stockholders of the Company (the "Effective Date"). 

        1.2    Purpose.    The purpose of the Plan is to advance the interests
of the Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such
persons to contribute to the growth and profitability of the Participating Company Group. The Plan seeks to achieve this purpose by providing for Awards in the form of Options, Stock Appreciation
Rights, Restricted Stock Purchase Rights, Restricted Stock Bonuses, Restricted Stock Units, Performance Shares and Performance Units. 

        1.3    Term of Plan.    The Plan shall continue in effect until its termination by the
Committee; provided, however, that all Awards shall be granted, if at all, within ten (10) years from the Effective Date. 

        2.    DEFINITIONS AND CONSTRUCTION.    

        2.1    Definitions.    Whenever used herein, the following terms shall have their respective
meanings set forth below: 

        (a)   "Affiliate" means (i) an entity, other than a Parent Corporation,
that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) an entity, other than a Subsidiary Corporation, that is controlled by the Company directly
or indirectly through one or more intermediary entities. For this purpose, the term "control" (including the term "controlled by") means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the relevant entity, whether through the ownership of voting securities, by contract or
otherwise; or shall have such other meaning assigned such term for the purposes of registration on Form S-8 under the Securities Act. 

        (b)   "Award" means any Option, Stock Appreciation Right, Restricted Stock
Purchase Right, Restricted Stock Bonus, Restricted Stock Unit, Performance Share and Performance Unit granted under the Plan. 

        (c)   "Award Agreement" means a written or electronic agreement between the
Company and a Participant setting forth the terms, conditions and restrictions of the Award granted to the Participant. 

        (d)   "Board" means the Board of Directors of the Company. 

        (e)   "Cause" means, unless such term or an equivalent term is otherwise
defined with respect to an Award by the Participant's Award Agreement or by a written contract of employment or service, any of the following: (i) the Participant's theft, dishonesty, willful
misconduct, breach of fiduciary duty for personal profit, or falsification of any Participating Company documents or records; (ii) the Participant's material failure to abide by a Participating
Company's code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); (iii) the Participant's unauthorized use,
misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of a Participating Company (including, without limitation, the Participant's improper use or
disclosure of a Participating Company's confidential or proprietary information); (iv) any intentional act by the Participant which has a material 

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detrimental
effect on a Participating Company's reputation or business; (v) the Participant's repeated failure or inability to perform any reasonable assigned duties after written notice from a
Participating Company of, and a reasonable opportunity to cure, such failure or inability; (vi) any material breach by the Participant of any employment, service, non-disclosure,
non-competition, non-solicitation or other similar agreement between the Participant and a Participating Company, which breach is not cured pursuant to the terms of such
agreement; or (vii) the Participant's conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which
impairs the Participant's ability to perform his or her duties with a Participating Company. 

        (f)    "Change in Control" means, unless such term or an equivalent term is
otherwise defined with respect to an Award by the Participant's Award Agreement or by a written contract of employment or service, the occurrence of any of the following: 

          (i)  any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power of the Company's
then-outstanding securities entitled to vote generally in the election of Directors; provided, however, that the following acquisitions shall not constitute a Change in Control:
(1) an acquisition by any such person who on the Effective Date is the beneficial owner of more than fifty percent (50%) of such voting power, (2) any acquisition directly from the
Company, including, without limitation, a public offering of securities, (3) any acquisition by the Company, (4) any acquisition by a trustee or other fiduciary under an employee benefit
plan of a Participating Company or (5) any acquisition by an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of
the voting securities of the Company; or 

         (ii)  an
Ownership Change Event or series of related Ownership Change Events (collectively, a  "Transaction") in which the stockholders of the Company
immediately before the Transaction do not retain
immediately after the Transaction direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally
in the election of Directors or, in the case of an Ownership Change Event described in Section 2.1(z)(iii), the entity to which the assets of the Company were transferred (the  "Transferee"), as the case may be; provided, however, that a Change in Control shall be deemed not to
include a transaction described in subsections (i) or (ii) of this Section 2.1(f) in which a majority of the members of the board of directors of the continuing, surviving or
successor entity, or parent thereof, immediately after such transaction is comprised of Incumbent Directors. 

For
purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or
other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Committee shall have
the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and
conclusive. 

Notwithstanding
the foregoing, to the extent that any amount constituting Section 409A "deferred compensation" would become payable under this Plan by reason of a Change in Control, such amount
shall become payable only if the event constituting a Change in Control would also constitute a change in ownership or effective control of the Company or a change 

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in
the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A. 

        (g)   "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations or administrative guidelines promulgated thereunder. 

        (h)   "Committee" means the Compensation Committee and such other committee or
subcommittee of the Board, if any, duly appointed to administer the Plan and having such powers in each instance as shall be specified by the Board. If, at any time, there is no committee of the Board
then authorized or properly constituted to administer the Plan, the Board shall exercise all of the powers of the Committee granted herein, and, in any event, the Board may in its discretion exercise
any or all of such powers. 

        (i)    "Company" means Globalstar, Inc., a Delaware corporation, or any
successor corporation thereto. 

        (j)    "Consultant" means a person engaged to provide consulting or advisory
services (other than as an Employee or a member of the Board) to a Participating Company, provided that the identity of such person, the nature of such services or the entity to which such services
are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on registration on a Form S-8 Registration Statement
under the Securities Act. 

        (k)   "Covered Employee" means, at any time the Plan is subject to 162(m), any Employee who is or may
become a "covered employee" as defined in Section 162(m), or any successor statute, and who is designated, either as an individual Employee or a member of a class of Employees, by the Committee
no later than (i) the date ninety (90) days after the beginning of the Performance Period, or (ii) the date on which twenty-five percent (25%) of the Performance
Period has elapsed, as a "Covered Employee" under this Plan for such applicable Performance Period. 

        (l)    "Director" means a member of the Board. 

        (m)  "Disability" means the permanent and total disability of the Participant,
within the meaning of Section 22(e)(3) of the Code. 

        (n)   "Dividend Equivalent" means a credit, made at the discretion of the
Committee or as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one share of Stock for each share of Stock represented by an Award held
by such Participant. 

        (o)   "Employee" means any person treated as an employee (including an Officer
or a member of the Board who is also treated as an employee) in the records of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for
purposes of Section 422 of the Code; provided, however, that neither service as a member of the Board nor payment of a director's fee shall be sufficient to constitute employment for purposes
of the Plan. The Company shall determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee and the effective date of such
individual's employment or termination of
employment, as the case may be. For purposes of an individual's rights, if any, under the terms of the Plan as of the time of the Company's determination of whether or not the individual is an
Employee, all such determinations by the Company shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court of law or governmental agency
subsequently makes a contrary determination as to such individual's status as an Employee. 

        (p)   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

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        (q)   "Fair Market Value" means, as of any date, the value of a share of Stock
or other property as determined by the Committee, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following: 

          (i)  Except
as otherwise determined by the Committee, if, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq
National Market, The Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in  The Wall Street Journal
or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on
such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other
appropriate day as shall be determined by the Committee, in its discretion. 

         (ii)  Notwithstanding
the foregoing, the Committee may, in its discretion, determine the Fair Market Value on the basis of the opening, closing, or average of the high and
low sale prices of a share of Stock on such date or the preceding trading day, the actual sale price of a share of Stock received by a Participant, any other reasonable basis using actual transactions
in the Stock as reported on a national or regional securities exchange or market system and consistently applied, or on any other basis consistent with the requirements of Section 409A. The
Committee may also determine the Fair Market Value upon the average selling price of the Stock during a specified period that is within thirty (30) days before or thirty (30) days after
such date, provided that, with respect to the grant of an Option or SAR, the commitment to grant such Award based on such valuation method must be irrevocable before the beginning of the specified
period and such valuation method must be used consistently for grants of Options and SARs under the same and substantially similar programs. The Committee may vary its method of determination of the
Fair Market Value as provided in this Section for different purposes under the Plan to the extent consistent with the requirements of Section 409A. 

        (iii)  If,
on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be as
determined by the Committee in good
faith without regard to any restriction other than a restriction which, by its terms, will never lapse, and in a manner consistent with the requirements of Section 409A. 

        (r)   "Incentive Stock Option" means an Option intended to be (as set forth in
the Award Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code. 

        (s)   "Incumbent Director" means a director who either (i) is a member
of the Board as of the Effective Date or (ii) is elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of
such election or nomination, but who was not elected or nominated in connection with an actual or threatened proxy contest relating to the election of directors of the Company. 

        (t)    "Insider" means an Officer, Director or any other person whose
transactions in Stock are subject to Section 16 of the Exchange Act. 

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        (u)   "Insider Trading Policy" means the written policy of the Company
pertaining to the purchase, sale, transfer or other disposition of the Company's equity securities by Directors, Officers, Employees or other service providers who may possess material, nonpublic
information regarding the Company or its securities. 

        (v)   "Net-Exercise" means a procedure by which the Participant will be issued a number of shares of Stock
determined in accordance with the following formula: 

	N
	=
X(A-B)/A, where

"N" = the number of shares of Stock to be issued to the Participant upon exercise of the Option;

"X" = the total number of shares with respect to which the Participant has elected to exercise the

           Option;

"A" = the Fair Market Value of one (1) share of Stock determined on the exercise date; and

"B" = the exercise price per share (as defined in the Participant's Award Agreement) 

        (w)  "Nonstatutory Stock Option" means an Option not intended to be (as set
forth in the Award Agreement) an incentive stock option within the meaning of Section 422(b) of the Code. 

        (x)   "Officer" means any person designated by the Board as an officer of the
Company. 

        (y)   "Option" means an Incentive Stock Option or a Nonstatutory Stock Option
granted pursuant to Section 6. 

        (z)   "Ownership Change Event" means the occurrence of any of the following
with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the
voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the
Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company). 

        (aa) "Parent Corporation" means any present or future "parent corporation" of
the Company, as defined in Section 424(e) of the Code. 

        (bb) "Participant" means any eligible person who has been granted one or more
Awards. 

        (cc) "Participating Company" means the Company or any Parent Corporation,
Subsidiary Corporation or Affiliate. 

        (dd) "Participating Company Group" means, at any point in time, all entities
collectively which are then Participating Companies. 

        (ee) "Performance Award" means an Award of Performance Shares or Performance
Units. 

        (ff)  "Performance Award Formula" means, for any Performance Award, a formula
or table established by the Committee pursuant to Section 10.3 which provides the basis for computing the value of a Performance Award at one or more threshold levels of attainment of the
applicable Performance Goal(s) measured as of the end of the applicable Performance Period. 

        (gg) "Performance-Based Compensation" means compensation under an Award that satisfies the requirements of
Section 162(m) for certain performance-based compensation paid to Covered Employees. 

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        (hh) "Performance Goal" means a performance goal established by the Committee
pursuant to Section 10.3. 

        (ii)   "Performance Period" means a period established by the Committee
pursuant to Section 10.3 at the end of which one or more Performance Goals are to be measured. 

        (jj)   "Performance Share" means a bookkeeping entry representing a right
granted to a Participant pursuant to Section 10 to receive a payment equal to the value of a Performance Share, as determined by the Committee, based on performance. 

        (kk) "Performance Unit" means a bookkeeping entry representing a right
granted to a Participant pursuant to Section 10 to receive a payment equal to the value of a Performance Unit, as determined by the Committee, based upon performance. 

        (ll)   "Restricted Stock Award" means an Award of a Restricted Stock Bonus or a
Restricted Stock Purchase Right. 

        (mm) "Restricted Stock Bonus" means Stock granted to a Participant pursuant
to Section 8. 

        (nn) "Restricted Stock Purchase Right" means a right to purchase Stock
granted to a Participant pursuant to Section 8. 

        (oo) "Restricted Stock Unit" or "Stock
Unit" means a right granted to a Participant pursuant to Section 9 to receive a share of Stock on a date determined in accordance with the
provisions of such Section and the Participant's Award Agreement. 

        (pp) "Rule 16b-3" means Rule 16b-3
under the Exchange Act, as amended from time to time, or any successor rule or regulation. 

        (qq) "SAR" or "Stock
Appreciation Right" means a right granted to a Participant pursuant to Section 7 to receive payment, for each share of Stock subject to such SAR,
of an amount equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price. 

        (rr)  "Section 162(m)" means Section 162(m) of the Code. 

        (ss)  "Section 409A" means Section 409A of the Code (including
regulations or administrative guidelines thereunder). 

        (tt)  "Securities Act" means the Securities Act of 1933, as amended. 

        (uu) "Service" means a Participant's employment or service with the
Participating Company Group, whether in the capacity of an Employee, a Director or a Consultant. Unless otherwise provided by the Committee, a Participant's Service shall not be deemed to have
terminated merely because of a change in the capacity in which the Participant renders such Service or a change in the Participating Company for which the Participant renders such Service, provided
that there is no interruption or termination of the Participant's Service. Furthermore, a Participant's Service shall not be deemed to have terminated if the Participant takes any military leave, sick
leave, or other bona fide leave of absence approved by the Company. However, unless otherwise provided by the Committee, if any such leave taken by a Participant exceeds ninety (90) days, then
on the ninety-first (91st) day following the commencement of such leave the Participant's Service shall be deemed to have terminated, unless the Participant's right to return to Service is guaranteed
by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining
vesting under the Participant's Award Agreement. A Participant's Service shall be deemed to have terminated either upon an actual termination of Service or upon the entity for which the 

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Participant
performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant's Service has terminated and the
effective date of such termination. 

        (vv) "Stock" means the Class A common stock of the Company, as
adjusted from time to time in accordance with Section 4.4. 

        (ww) "Subsidiary Corporation" means any present or future "subsidiary
corporation" of the Company, as defined in Section 424(f) of the Code. 

        (xx) "Ten Percent Owner" means a Participant who, at the time an Option is
granted to the Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the
meaning of Section 422(b)(6) of the Code. 

        (yy) "Vesting Conditions" mean those conditions established in accordance
with the Plan prior to the satisfaction of which shares subject to an Award remain subject to forfeiture or a repurchase option in favor of the Company exercisable for the Participant's monetary
purchase price, if any, for such shares upon the Participant's termination of Service. 

        2.2    Construction.    Captions and titles contained herein are for convenience only and
shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise. 

        3.    ADMINISTRATION.    

        3.1    Administration by the Committee.    The Plan shall be administered by the Committee.
All questions of interpretation of the Plan, of any Award Agreement or of any other form of agreement or other document employed by the Company in the administration of the Plan or of any Award shall
be determined by the Committee, and such determinations shall be final, binding and conclusive upon all persons having an interest in the Plan or such Award, unless fraudulent or made in bad faith.
Any and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or Award Agreement or other agreement thereunder (other than
determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest therein. 

        3.2    Authority of Officers.    Any Officer shall have the authority to act on behalf of the
Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority
with respect to such matter, right, obligation, determination or election. The Board or Committee may, in its discretion, delegate to a committee comprised of one or more Officers the authority to
grant one or more Awards, without further approval of the Board or the Committee, to any Employee, other than a person who, at the time of such grant, is an Insider or a Covered Person; provided,
however, that (a) such Awards shall not be granted for shares in excess of the maximum aggregate number of shares of Stock authorized for issuance pursuant to Section 4.1, (b) the
exercise price per share of each such Award which is an Option or Stock Appreciation Right shall be not less than the Fair Market Value per share of the Stock on the effective date of grant (or, if
the Stock has not traded on such date, on the last day preceding the effective date of grant on which the Stock was traded), (c) each such Award shall be subject to the terms and conditions of
the appropriate standard form of Award Agreement approved by the Board or the Committee and shall conform to the provisions of the Plan, and (d) each such Award shall 

7

 

conform
to such limits and guidelines as shall be established from time to time by resolution of the Board or the Committee. 

        3.3    Administration with Respect to Insiders.    With respect to participation by Insiders
in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the
requirements, if any, of Rule 16b-3. 

        3.4    Committee Complying with Section 162(m).    If the Company is a "publicly held
corporation" within the meaning of Section 162(m), the Board may establish a Committee of "outside directors" within the meaning of Section 162(m) to approve the grant of any Award
intended to result in the payment of Performance-Based Compensation. 

        3.5    Powers of the Committee.    In addition to any other powers set
forth in the Plan and subject to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion: 

        (a)   to
determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Stock, units or monetary value to be subject to
each Award; 

        (b)   to
determine the type of Award granted; 

        (c)   to
determine the Fair Market Value of shares of Stock or other property; 

        (d)   to
determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without
limitation, (i) the exercise or purchase price of shares pursuant to any Award, (ii) the method of payment for shares purchased pursuant to any Award, (iii) the method for
satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of shares of Stock, (iv) the timing, terms and conditions of the
exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Measures, Performance Period, Performance Award Formula and Performance Goals applicable to
any Award and the extent to which such Performance Goals have been attained, (vi) the time of the expiration of any Award, (vii) the effect of the Participant's termination of Service on
any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not inconsistent with the terms of the Plan; 

        (e)   to
determine whether an Award will be settled in shares of Stock, cash, or in any combination thereof; 

        (f)    to
approve one or more forms of Award Agreement; 

        (g)   to
amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired pursuant thereto; 

        (h)   to
accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period
following a Participant's termination of Service; 

        (i)    to
prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions of, the
Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws or regulations of or to accommodate the tax policy, accounting principles or custom of,
foreign jurisdictions whose citizens may be granted Awards; and 

8

  

        (j)    to
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other
actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law. 

        3.6    Indemnification.    In addition to such other rights of indemnification as they may
have as members of the Board or the Committee or as officers or employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the Participating
Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys' fees, actually
and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged
in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the
institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 

        4.    SHARES SUBJECT TO PLAN.    

        4.1    Maximum Number of Shares Issuable.    Subject to adjustment as provided in Sections
4.2, 4.3 and 4.4, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be equal to two hundred thousand (200,000) shares, and shall consist of authorized but
unissued or reacquired shares of Stock or any combination thereof. 

        4.2    Annual Increase in Maximum Number of Shares Issuable.    Subject to adjustment as
provided in Section 4.4, the maximum aggregate number of shares of Stock that may be issued under the Plan as set forth in Section 4.1 shall be cumulatively increased on
January 1, 2007 and on each subsequent January 1, through and including January 1, 2016, by a number of shares (the "Annual
Increase") equal to the smaller of (i) two percent (2%) of the number of shares of Stock issued and outstanding on the immediately preceding
December 31 or (ii) an amount determined by the Board. 

        4.3    Share Accounting.    If an outstanding Award for any reason expires or is terminated or
canceled without having been exercised or settled in full, or if shares of Stock acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company for an
amount not greater than the Participant's original purchase price, the shares of Stock allocable to the terminated portion of such Award or such forfeited or repurchased shares of Stock shall again be
available for issuance under the Plan. Shares of Stock shall not be deemed to have been issued pursuant to the Plan (a) with respect to any portion of an Award that is settled in cash or
(b) to the extent such shares are withheld or reacquired by the Company in satisfaction of tax withholding obligations pursuant to Section 14.2. Upon payment in shares of Stock pursuant
to the exercise or settlement of an Award, including an SAR, the number of shares available for issuance under the Plan shall be reduced only by the number of shares actually issued in such payment.
If the exercise price of an Option is paid by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant, or by means of a Net-Exercise, the number
of shares available for issuance under the Plan shall be reduced by the net number of shares for which the Option is exercised. 

        4.4    Adjustments for Changes in Capital Structure.    Subject to any required action by the
stockholders of the Company, in the event of any change in the Stock effected without receipt of 

9

 

consideration
by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split,
split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a
dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock,
appropriate adjustments shall be made in the number and kind of shares subject to the Plan and to any outstanding Awards, in the Annual Increase set forth in Section 4.2, in the ISO Share
Issuance Limit set forth in Section 5.3(a) and in the exercise or purchase price per share under any outstanding Award in order to prevent dilution or enlargement of Participants' rights under
the Plan. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as "effected without receipt of consideration by the Company." If a majority of
the shares which are of the same class as the shares that are subject to outstanding Awards are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change
Event) shares of another corporation (the "New Shares"), the Committee may unilaterally amend the
outstanding Awards to provide that such Awards are for New Shares. In the event of any such amendment, the number of shares subject to, and the exercise or purchase price per share of, the outstanding
Awards shall be adjusted in a fair and equitable manner as determined by the Committee, in its discretion. Any fractional share resulting from an adjustment pursuant to this Section 4.4 shall
be rounded down to the nearest whole number, and in no event may the exercise or purchase price under any Award be decreased to an amount less than the par value, if any, of the stock subject to such
Award. The Committee in its sole discretion, may also make such adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure of the Company or distributions
as it deems appropriate, including modification of Performance Goals, Performance Award Formulas and Performance Periods. The adjustments determined by the Committee pursuant to this Section shall be
final, binding and conclusive. 

        The
Committee may, without affecting the number of shares of Stock reserved or available hereunder, authorize the issuance or assumption of benefits under this Plan in connection with
any merger,
consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate, subject to compliance with Sections 409A and 422 and any other applicable
provisions of the Code and any related guidance issued by the U.S. Treasury Department. 

5.    ELIGIBILITY, PARTICIPATION AND AWARD LIMITATIONS.    

        5.1    Persons Eligible for Awards.    Awards may be granted only to Employees, Directors and
Consultants. 

        5.2    Participation in the Plan.    Awards are granted solely at the discretion of the
Committee. Eligible persons may be granted more than one Award. However, eligibility in accordance with this Section shall not entitle any person to be granted an Award, or, having been granted an
Award, to be granted an additional Award. 

        5.3    Incentive Stock Option Limitations.    

        (a)    Maximum Number of Shares Issuable Pursuant to Incentive Stock Options.    Subject to
adjustment as provided in Section 4.4, the maximum aggregate number of shares of Stock that may be issued under the Plan pursuant to the exercise of Incentive Stock Options shall not exceed two
hundred thousand (200,000) shares, cumulatively increased on January 1, 2007 and on each subsequent January 1, through and including January 1, 2016 by a number of shares equal to
the Annual Increase as determined under Section 4.2. The maximum aggregate number of shares of Stock that may be issued under the Plan pursuant to all 

10

 

Awards
other than Incentive Stock Options shall be the number of shares determined in accordance with Section 4.1, subject to adjustment as provided in Sections 4.2, 4.3 and 4.4. 

        (b)    Persons Eligible.    An Incentive Stock Option may be granted only to a person who, on
the effective date of grant, is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an "ISO-Qualifying
Corporation"). Any person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such
person may be granted only a Nonstatutory Stock Option. An Incentive Stock Option granted to a prospective Employee upon the condition that such person become an Employee of an
ISO-Qualifying Corporation shall be deemed granted effective on the date such person commences Service with an ISO-Qualifying Corporation, with an exercise price determined as
of such date in accordance with Section 6.1. 

        (c)    Fair Market Value Limitation.    To the extent that Options designated as Incentive
Stock Options (granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any calendar year for stock
having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such Options which exceeds such amount shall be treated as Nonstatutory Stock Options. For purposes of
this Section, Options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time
the Option with respect to such stock is granted. If the Code is amended to provide for a limitation different from that set forth in this Section, such different limitation shall be deemed
incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option in part and
as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is exercising. In the absence
of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Upon exercise, shares issued pursuant to each such portion shall be
separately identified. 

6.    STOCK OPTIONS.    

        Options
shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Committee shall from time to time establish. No Option or
purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Options may incorporate all or any of the
terms of the Plan by reference, including the provisions of Section 16 with respect to Section 409A if applicable, and shall comply with and be subject to the following terms and
conditions: 

        6.1    Exercise Price.    The exercise price for each Option shall be established in the
discretion of the Committee; provided, however, that (a) the exercise price per share shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the
Option and (b) no Incentive Stock Option granted to a Ten Percent Owner shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of
Stock on the effective date of grant of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price
lower than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of
Section 424(a) of the Code. 

        6.2    Exercisability and Term of Options.    Options shall be exercisable at such time or
times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement 

11

 

evidencing
such Option; provided, however, that (a) no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option and
(b) no Incentive Stock Option granted to a Ten Percent Owner shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option. Subject to the
foregoing, unless otherwise specified by the Committee in the grant of an Option, each Option shall terminate ten (10) years after the effective date of grant of the Option, unless earlier
terminated in accordance with its provisions. 

        6.3    Payment of Exercise Price.    

        (a)    Forms of Consideration Authorized.    Except as otherwise provided below, payment of
the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash or by check or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of shares of Stock owned by the Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice of
exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon
the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the
Federal Reserve System) (a "Cashless Exercise"), (iv) by delivery of a properly executed notice
electing a Net-Exercise, (v) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (vi) by any
combination thereof. The Committee may at any time or from time to time grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or
which otherwise restrict one or more forms of consideration. 

        (b)    Limitations on Forms of Consideration.    

        (i)    Tender of Stock.    Notwithstanding the foregoing, an Option may not be exercised by
tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement
restricting the redemption of the Company's stock. Unless otherwise provided by the Committee, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of
Stock unless such shares either have been owned by the Participant for more than six (6) months (or such other period, if any, as the Committee may permit) and not used for another Option
exercise by attestation during such period, or were not acquired, directly or indirectly, from the Company. 

        (ii)    Cashless Exercise.    The Company reserves, at any and all times, the right, in the
Company's sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise, including with respect to
one or more Participants specified by the Company notwithstanding that such program or procedures may be available to other Participants. 

        6.4    Effect of Termination of Service.    

        (a)    Option Exercisability.    Subject to earlier termination of the Option as otherwise
provided herein and unless otherwise provided by the Committee in the grant of an Option and set forth in the Award Agreement, an Option shall terminate immediately upon the Participant's termination
of Service to the extent that it is then unvested and shall be exercisable after the Participant's termination of Service to the extent it is then vested only 

12

 

during
the applicable time period determined in accordance with this Section and thereafter shall terminate: 

        (i)    Disability.    If the Participant's Service terminates because of the Disability of the
Participant, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant's Service terminated, may be exercised by the Participant (or the
Participant's guardian or legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Participant's Service terminated, but in any event no later
than the date of expiration of the Option's term as set forth in the Award Agreement evidencing such Option (the "Option Expiration
Date"). 

        (ii)    Death.    If the Participant's Service terminates because of the death of the
Participant, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant's Service terminated, may be exercised by the Participant's legal
representative or other person who acquired the right to exercise the Option by reason of the Participant's death at any time prior to the expiration of twelve (12) months after the date on
which the Participant's Service terminated, but in any event no later than the Option Expiration Date. The Participant's Service shall be deemed to have terminated on account of death if the
Participant dies within three (3) months after the Participant's termination of Service for any reason other than Cause. 

        (iii)    Termination for Cause.    Notwithstanding any other provision of the Plan to the
contrary, if the Participant's Service is terminated for Cause or if, following the Participant's termination of Service and during any period in which the Option otherwise would remain exercisable,
the Participant engages in any act that would constitute Cause, the Option shall terminate in its entirety and cease to be exercisable immediately upon such termination of Service or act. 

        (iv)    Other Termination of Service.    If the Participant's Service terminates for any
reason, except Disability, death or Cause the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant's Service terminated, may be exercised by the
Participant at any time prior to the expiration of three (3) months after the date on which the Participant's Service terminated, but in any event no later than the Option Expiration Date. 

        (b)    Extension if Exercise Prevented by Law.    Notwithstanding the foregoing, other than
termination of Service for Cause, if the exercise of an Option within the applicable time periods set forth in Section 6.4(a) is prevented by the provisions of Section 13 below, the
Option shall remain exercisable until three (3) months (or such longer period of time as determined by the Committee, in its discretion) after the date the Participant is notified by the
Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 

        (c)    Extension if Participant Subject to Section 16(b).    Notwithstanding the
foregoing, other than termination of Service for Cause, if a sale within the applicable time periods set forth in Section 6.4(a) of shares acquired upon the exercise of the Option would subject
the Participant to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a
sale of such shares by the Participant would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Participant's termination of Service, or
(iii) the Option Expiration Date. 

        6.5    Transferability of Options.    During the lifetime of the Participant, an Option shall
be exercisable only by the Participant or the Participant's guardian or legal representative. An Option 

13

 

shall
not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant's
beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in the Award
Agreement evidencing such Option, a Nonstatutory Stock Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to
Form S-8 Registration Statement under the Securities Act. 

7.    STOCK APPRECIATION RIGHTS.    

        Stock
Appreciation Rights shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the Committee shall from time to time
establish. No SAR or purported SAR shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing SARs may incorporate all or
any of the
terms of the Plan by reference, including provisions of Section 16 with respect to Section 409A if applicable, and shall comply with and be subject to the following terms and conditions: 

        7.1    Types of SARs Authorized.    SARs may be granted in tandem with all or any portion of a
related Option (a "Tandem SAR") or may be granted independently of any Option (a  "Freestanding SAR"). A Tandem SAR may only be granted concurrently with the grant of the related Option.
 

        7.2    Exercise Price.    The exercise price for each SAR shall be established in the
discretion of the Committee; provided, however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related Option and (b) the
exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the SAR. 

        7.3    Exercisability and Term of SARs.    

        (a)    Tandem SARs.    Tandem SARs shall be exercisable only at the time and to the extent,
and only to the extent, that the related Option is exercisable, subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect to less than the full number of
shares of Stock subject to the related Option. The Committee may, in its discretion, provide in any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance
approval of the Company and, if such approval is not given, then the Option shall nevertheless remain exercisable in accordance with its terms. A Tandem SAR shall terminate and cease to be exercisable
no later than the date on which the related Option expires or is terminated or canceled. Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR, the related
Option shall be canceled automatically as to the number of shares with respect to which the Tandem SAR was exercised. Upon the exercise of an Option related to a Tandem SAR as to some or all of the
shares subject to such Option, the related Tandem SAR shall be canceled automatically as to the number of shares with respect to which the related Option was exercised. 

        (b)    Freestanding SARs.    Freestanding SARs shall be exercisable at such time or times, or
upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such
SAR; provided, however, that no Freestanding SAR shall be exercisable after the expiration of ten (10) years after the effective date of grant of such SAR. 

        7.4    Exercise of SARs.    Upon the exercise (or deemed exercise pursuant to
Section 7.5) of an SAR, the Participant (or the Participant's legal representative or other person who acquired the right to exercise the SAR by reason of the Participant's death) shall be
entitled to receive payment of an amount for each share with respect to which the SAR is exercised equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of
the SAR over the exercise 

14

 

price.
Payment of such amount shall be made (a) in the case of a Tandem SAR, solely in shares of Stock in a lump sum as soon as practicable following the date of exercise of the SAR and
(b) in the case of a Freestanding SAR, in cash, shares of Stock, or any combination thereof as determined by the Committee in compliance with Section 409A. Unless otherwise provided in
the Award Agreement evidencing a Freestanding SAR, payment shall be made in a lump sum as soon as practicable following the date of exercise of the SAR. The Award Agreement evidencing any Freestanding
SAR may provide for deferred payment in a lump sum or in installments in compliance with Section 409A. When payment is to be made in shares of Stock, the number of shares to be issued shall be
determined on the basis of the Fair Market Value of a share of Stock on the date of exercise of the SAR. For purposes of Section 7, an SAR shall be deemed exercised on the date on which the
Company receives notice of exercise from the Participant or as otherwise provided in Section 7.5. 

        7.5    Deemed Exercise of SARs.    If, on the date on which an SAR would otherwise terminate
or expire, the SAR by its terms remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such SAR, then any portion of
such SAR which has not previously been exercised shall automatically be deemed to be exercised as of such date with respect to such portion. 

        7.6    Effect of Termination of Service.    Subject to earlier termination of the SAR as
otherwise provided herein and unless otherwise provided by the Committee in the grant of an SAR and set forth in the Award Agreement, an SAR shall be exercisable after a Participant's termination of
Service only to the extent and during the applicable time period determined in accordance with Section 6.4 (treating the SAR as if it were an Option) and thereafter shall terminate. 

        7.7    Transferability of SARs.    During the lifetime of the Participant, an SAR shall be
exercisable only by the Participant or the Participant's guardian or legal representative. An SAR shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant or the Participant's beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing,
to the extent permitted by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Award, a Tandem SAR related to a Nonstatutory Stock Option or a Freestanding SAR shall
be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 Registration Statement under the Securities Act. 

8.    RESTRICTED STOCK AWARDS.    

        Restricted
Stock Awards shall be evidenced by Award Agreements specifying whether the Award is a Restricted Stock Bonus or a Restricted Stock Purchase Right and the number of shares of
Stock subject to the Award, in such form as the Committee shall from time to time establish. No Restricted Stock Award or purported Restricted Stock Award shall be a valid and binding obligation of
the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Restricted Stock Awards may incorporate all or any of the terms of the Plan by reference and shall comply
with and be subject to the following terms and conditions: 

        8.1    Types of Restricted Stock Awards Authorized.    Restricted Stock Awards may be granted
in the form of either a Restricted Stock Bonus or a Restricted Stock Purchase Right. Restricted Stock Awards may be granted upon such conditions as the Committee shall determine, including, without
limitation, upon the attainment of one or more Performance Goals described in Section 10.4. If either the grant of or satisfaction of Vesting Conditions applicable to a Restricted Stock Award
is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth in Sections 10.3 through 10.5(a). 

15

 

        8.2    Purchase Price.    The purchase price for shares of Stock issuable under each
Restricted Stock Purchase Right shall be established by the Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving
shares of Stock pursuant to a Restricted Stock Bonus, the consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, if
required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not
less than the par value of the shares of Stock subject to a Restricted Stock Award. 

        8.3    Purchase Period.    A Restricted Stock Purchase Right shall be exercisable within a
period established by the Committee, which shall in no event exceed thirty (30) days from the effective date of the grant of the Restricted Stock Purchase Right. 

        8.4    Payment of Purchase Price.    Except as otherwise provided below, payment of the
purchase price for the number of shares of Stock being purchased pursuant to any Restricted Stock Purchase Right shall be made (a) in cash or by check or cash equivalent, (b) by such
other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (c) by any combination thereof. The Committee may at any time or from
time to time grant Restricted Stock Purchase Rights which do not permit all of the foregoing forms of consideration to be used in payment of the purchase price or which otherwise restrict one or more
forms of consideration. 

        8.5    Vesting and Restrictions on Transfer.    Shares issued pursuant to any Restricted Stock
Award may (but need not) be made subject to Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without
limitation, Performance Goals as described in Section 10.4, as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. During any period in which
shares acquired pursuant to a Restricted Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than
pursuant to an Ownership Change Event or as provided in Section 8.8. The Committee, in its discretion, may provide in any Award Agreement evidencing a Restricted Stock Award that, if the
satisfaction of Vesting Conditions with respect to any shares subject to such Restricted Stock Award would otherwise occur on a day on which the sale of such shares would violate the Company's Insider
Trading Policy, then the satisfaction of the Vesting Conditions automatically shall be deemed to occur on the next day on which the sale of such shares would not violate the Insider Trading Policy.
Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the
Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 

        8.6    Voting Rights; Dividends and Distributions.    Except as provided in this Section,
Section 8.5 and any Award Agreement, during any period in which shares acquired pursuant to a Restricted Stock Award remain subject to Vesting Conditions, the Participant shall have all of the
rights of a stockholder of the Company holding shares of Stock, including the right to vote such shares and to receive all dividends and other distributions paid with respect to such shares. However,
in the event of a dividend or distribution paid in shares of Stock or other property or any other adjustment made upon a change in the capital structure of the Company as described in
Section 4.4, any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant is entitled by reason of the Participant's
Restricted Stock Award shall be immediately subject to the same Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which such dividends or distributions were paid
or adjustments were made. 

16

 

        8.7    Effect of Termination of Service.    Unless otherwise provided by the Committee in the
Award Agreement evidencing a Restricted Stock Award, if a Participant's Service terminates for any reason, whether voluntary or involuntary (including the Participant's death or Disability), then
(a) the Company shall have the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Restricted Stock Purchase Right which
remain subject to Vesting Conditions as of the date of the Participant's termination of Service and (b) the Participant shall forfeit to the Company any shares acquired by the Participant
pursuant to a Restricted Stock Bonus which remain subject to Vesting Conditions as of the date of the Participant's termination of Service. The Company shall have the right to assign at any time any
repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. 

        8.8    Nontransferability of Restricted Stock Award Rights.    Rights to acquire shares of
Stock pursuant to a Restricted Stock Award shall not be subject in any manner to anticipation, alienation, sale, exchange,
transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant's beneficiary, except transfer by will or the laws of descent and distribution. All rights
with respect to a Restricted Stock Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant's guardian or legal
representative. 

9.    RESTRICTED STOCK UNIT AWARDS.    

        Restricted
Stock Unit Awards shall be evidenced by Award Agreements specifying the number of Restricted Stock Units subject to the Award, in such form as the Committee shall from time to
time establish. No Restricted Stock Unit Award or purported Restricted Stock Unit Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.
Award Agreements evidencing Restricted Stock Units may incorporate all or any of the terms of the Plan by reference, including the provisions of Section 16 with respect to Section 409A,
if applicable, and shall comply with and be subject to the following terms and conditions: 

        9.1    Grant of Restricted Stock Unit Awards.    Restricted Stock Unit Awards may be granted
upon such conditions as the Committee shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 10.4. If either the grant of a
Restricted Stock Unit Award or the Vesting Conditions with respect to such Award is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow procedures
substantially equivalent to those set forth in Sections 10.3 through 10.5(a). 

        9.2    Purchase Price.    No monetary payment (other than applicable tax withholding, if any)
shall be required as a condition of receiving a Restricted Stock Unit Award, the consideration for which shall be services actually rendered to a Participating Company or for its benefit.
Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or
for its benefit having a value not less than the par value of the shares of Stock issued upon settlement of the Restricted Stock Unit Award. 

        9.3    Vesting.    Restricted Stock Unit Awards may (but need not) be made subject to Vesting
Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in
Section 10.4, as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. 

17

  

        9.4    Voting Rights, Dividend Equivalent Rights and Distributions.    Participants shall have
no voting rights with respect to shares of Stock represented by Restricted Stock Units until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company). However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Restricted Stock Unit Award that the Participant
shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock during the period beginning on the date such Award is granted and ending, with respect to the
particular shares subject to the Award, on the earlier of the date the Award is settled or the date on which it is terminated. Such Dividend Equivalents, if any, shall be paid by crediting the
Participant with additional whole Restricted Stock Units as of the date of payment of such cash dividends on Stock. The number of additional Restricted Stock Units (rounded down to the nearest whole
number) to be so credited shall be determined by dividing (a) the amount of cash dividends paid on such date with respect to the number of shares of Stock represented by the Restricted Stock
Units previously credited to the Participant by (b) the Fair Market Value per share of Stock on such date. Such additional Restricted Stock Units shall be subject to the same terms and
conditions and shall be settled in the same manner and at the same time (or as soon thereafter as practicable) as the Restricted Stock Units originally subject to the Restricted Stock Unit Award. In
the event of a dividend or distribution paid in shares of Stock or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.4,
appropriate adjustments shall be made in the Participant's Restricted Stock Unit Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities
or other property (other than normal cash dividends) to which the Participant would be entitled by reason of the shares of Stock issuable upon settlement of the Award, and all such new, substituted or
additional securities or other property shall be immediately subject to the same Vesting Conditions as are applicable to the Award. 

        9.5    Effect of Termination of Service.    Unless otherwise provided by the Committee and set
forth in the Award Agreement evidencing a Restricted Stock Unit Award, if a Participant's Service terminates for any reason, whether voluntary or involuntary (including the Participant's death or
Disability), then the Participant shall forfeit to the Company any Restricted Stock Units pursuant to the Award which remain subject to Vesting Conditions as of the date of the Participant's
termination of Service. 

        9.6    Settlement of Restricted Stock Unit Awards.    The Company shall issue to a Participant
on the date on which Restricted Stock Units subject to the Participant's Restricted Stock Unit Award vest or on such other date determined by the Committee, in its discretion, and set forth in the
Award Agreement one (1) share of Stock (and/or any other new, substituted or additional securities or other property pursuant to an adjustment described in Section 9.4) for each
Restricted Stock Unit then becoming vested or otherwise to be settled on such date, subject to the withholding of applicable taxes, if any. If permitted by the Committee, subject to the provisions of
Section 16 with respect to Section 409A, the Participant may elect in accordance with terms specified in the Award Agreement to defer receipt of all or any portion of the shares of Stock
or other property otherwise issuable to the Participant pursuant to this Section, and such deferred issuance date(s) and amount(s)elected by the Participant shall be set forth in the Award Agreement.
Notwithstanding the foregoing, the Committee, in its discretion, may provide for settlement of any Restricted Stock Unit Award by payment to the Participant in cash of an amount equal to the Fair
Market Value on the payment date of the shares of Stock or other property otherwise issuable to the Participant pursuant to this Section. The Committee, in its discretion, may provide in any Award
Agreement evidencing a Restricted Stock Unit Award that, if the settlement of the Award with respect to any shares would otherwise occur on a day on which the sale of such shares would violate the
Company's Insider Trading Policy, then the settlement with respect to such shares shall occur on the next day on which the sale of such shares would not 

18

 

violate
the Insider Trading Policy, but in any event on or before the later of the last day of the calendar year of, or the 15th day of the third calendar month following, the original
settlement date. 

        9.7    Nontransferability of Restricted Stock Unit Awards.    The right to receive shares
pursuant to a Restricted Stock Unit Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant's beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to a Restricted Stock Unit Award granted to a Participant
hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant's guardian or legal representative. 

10.    PERFORMANCE AWARDS.    

        Performance
Awards shall be evidenced by Award Agreements in such form as the Committee shall from time to time establish. No Performance Award or purported Performance Award shall be a
valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Performance Awards may incorporate all or any of the terms of the Plan by
reference, including the provisions of Section 16 with respect to Section 409A, if applicable, and shall comply with and be subject to the following terms and conditions: 

        10.1    Types of Performance Awards Authorized.    Performance Awards may be granted in the
form of either Performance Shares or Performance Units. Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance Units subject thereto, the
Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and the other terms, conditions and restrictions of the Award. 

        10.2    Initial Value of Performance Shares and Performance Units.    Unless otherwise
provided by the Committee in granting a Performance Award, each Performance Share shall have an initial monetary value equal to the Fair Market Value of one (1) share of Stock, subject to
adjustment as provided in Section 4.4, on the effective date of grant of the Performance Share, and each Performance Unit shall have an initial monetary value established by the Committee at
the time of grant. The final value payable to the Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will depend on the extent to
which Performance Goals established by the Committee are attained within the applicable Performance Period established by the Committee. 

        10.3    Establishment of Performance Period, Performance Goals and Performance Award
Formula.    In granting each Performance Award, the Committee shall establish in writing the applicable Performance Period, Performance Award Formula and one or more
Performance Goals which, when measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula the final value of the Performance Award to be paid to the
Participant. Unless otherwise permitted in compliance with the requirements under Section 162(m) with respect to each Performance Award intended to result in the payment of Performance-Based
Compensation, the Committee shall establish the Performance Goal(s) and Performance Award Formula applicable to each Performance Award no later than the earlier of (a) the date ninety
(90) days after the commencement of the applicable Performance Period or (b) the date on which 25% of the Performance Period has elapsed, and, in any event, at a time when the outcome of
the Performance Goals remains substantially uncertain. Once established, the Performance Goals and Performance Award Formula applicable to a Covered Employee shall not be changed during the
Performance Period. The Company shall notify each Participant granted a Performance Award of the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award
Formula. 

19

 

        10.4    Measurement of Performance Goals.    Performance Goals shall be established by the
Committee on the basis of targets to be attained ("Performance Targets") with respect to one or more
measures of business or financial performance (each, a "Performance Measure"), subject to the following: 

        (a)    Performance Measures.    Performance Measures shall have the same meanings as used in
the Company's financial statements, or, if such terms are not used in the Company's financial statements, they shall have the meaning applied pursuant to generally accepted accounting principles, or
as used generally in the Company's industry. Performance Measures shall be calculated with respect to the Company and each Subsidiary Corporation consolidated therewith for financial reporting
purposes or such division or other business unit as may be selected by the Committee. For purposes of the Plan, the Performance Measures applicable to a Performance Award shall be calculated in
accordance with generally accepted accounting principles, but prior to the accrual or payment of any Performance
Award for the same Performance Period and excluding the effect (whether positive or negative) of any change in accounting standards or any extraordinary, unusual or nonrecurring item, as determined by
the Committee, occurring after the establishment of the Performance Goals applicable to the Performance Award. Each such adjustment, if any, shall be made solely for the purpose of providing a
consistent basis from period to period for the calculation of Performance Measures in order to prevent the dilution or enlargement of the Participant's rights with respect to a Performance Award.
Performance Measures may be one or more of the following, as determined by the Committee: 

          (i)  revenue; 

         (ii)  sales; 

        (iii)  expenses;

        (iv)  operating
income; 

         (v)  gross
margin; 

        (vi)  operating
margin; 

       (vii)  earnings
before any one or more of: stock-based compensation expense, interest, taxes, depreciation and amortization; 

      (viii)  pre-tax
profit; 

        (ix)  net
operating income; 

         (x)  net
income; 

        (xi)  economic
value added; 

       (xii)  free
cash flow; 

      (xiii)  operating
cash flow; 

      (xiv)  stock
price; 

       (xv)  earnings
per share; 

      (xvi)  return
on stockholder equity; 

     (xvii)  return
on capital; 

    (xviii)  return
on assets; 

      (xix)  return
on investment; 

20

 

       (xx)  employee
satisfaction; 

      (xxi)  employee
retention; 

     (xxii)  balance
of cash, cash equivalents and marketable securities; 

    (xxiii)  market
share; 

    (xxiv)  customer
satisfaction; 

      (xxv)  product
development; 

    (xxvi)  research
and development expenses; 

   (xxvii)  completion
of an identified special project; and 

  (xxviii)  completion
of a joint venture or other corporate transaction. 

        (b)    Performance Targets.    Performance Targets may include a minimum, maximum, target
level and intermediate levels of performance, with the final value of a Performance Award determined under the applicable Performance Award Formula by the level attained during the applicable
Performance Period. A Performance Target may be stated as an absolute value or as a value determined relative to an index, budget or other standard selected by the Committee. 

        10.5    Settlement of Performance Awards.    

        (a)    Determination of Final Value.    As soon as practicable following the completion of the
Performance Period applicable to a Performance Award, the Committee shall certify in writing the extent to which the applicable Performance Goals have been attained and the resulting final value of
the Award earned by the Participant and to be paid upon its settlement in accordance with the applicable Performance Award Formula. 

        (b)    Discretionary Adjustment of Award Formula.    In its discretion, the Committee may,
either at the time it grants a Performance Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to a Performance Award granted
to any Participant who is not a Covered Employee to reflect such Participant's individual performance in his or her position with the Company or such other factors as the Committee may determine. If
permitted under a Covered Employee's Award Agreement, the Committee shall have the discretion, on the basis of such criteria as may be established by the Committee, to reduce some or all of the value
of the Performance Award that would otherwise be paid to the Covered Employee upon its settlement notwithstanding the attainment of any Performance Goal and the resulting value of the Performance
Award determined in accordance with the Performance Award Formula. No such reduction may result in an increase in the amount payable upon settlement of another Participant's Performance Award that is
intended to result in Performance-Based Compensation. 

        (c)    Effect of Leaves of Absence.    Unless otherwise required by law or a Participant's
Award Agreement, payment of the final value, if any, of a Performance Award held by a Participant who has taken in excess of thirty (30) days in leaves of absence during a Performance Period
shall be prorated on the basis of the number of days of the Participant's Service during the Performance Period during which the Participant was not on a leave of absence. 

        (d)    Notice to Participants.    As soon as practicable following the Committee's
determination and certification in accordance with Sections 10.5(a) and (b), the Company shall notify each Participant of the determination of the Committee. 

21

 

        (e)    Payment in Settlement of Performance Awards.    Subject to the provisions of
Section 16 with respect to Section 409A, as soon as practicable following the Committee's determination and certification in accordance with Sections 10.5(a) and (b), but in any event
within the Short-Term Deferral Period described in Section 16.1 (except as otherwise provided below or consistent with the requirements of Section 409A) payment shall be made
to each eligible Participant (or such Participant's legal representative or other person who acquired the right to receive such payment by reason of the Participant's death) of the final value of the
Participant's Performance Award. Payment of such amount shall be made in cash, shares of Stock, or a combination thereof as determined by the Committee. Unless otherwise provided in the Award
Agreement evidencing a Performance Award, payment shall be made in a lump sum. If permitted by the Committee, and consistent with the requirements of Section 409A, the Participant may elect to
defer receipt of all or any portion of the payment to be made to the Participant pursuant to this Section, and such deferred payment date(s) elected by the Participant shall be set forth in the Award
Agreement. If any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide for the payment during the deferral period of Dividend Equivalents or interest. 

        (f)    Provisions Applicable to Payment in Shares.    If payment is to be made in shares of
Stock, the number of such shares shall be determined by dividing the final value of the Performance Award by the Fair Market Value of a share of Stock determined by the method specified in the Award
Agreement. Shares of Stock issued in payment of any Performance Award may be fully vested and freely transferable shares or may be shares of Stock subject to Vesting Conditions as provided in
Section 8.5. Any shares subject to Vesting Conditions shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 8.5 through 8.8 above. 

        10.6    Voting Rights; Dividend Equivalent Rights and Distributions.    Participants shall
have no voting rights with respect to shares of Stock represented by Performance Share Awards until the date of the issuance of such shares, if any (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company). However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Performance Share Award that the
Participant shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock during the period beginning on the date the Award is granted and ending, with
respect to the particular shares subject to the Award, on the earlier of the date on which the Performance Shares are settled or the date on which they are forfeited. Such Dividend Equivalents, if
any, shall be credited to the Participant in the form of additional whole Performance Shares as of the date of payment of such cash dividends on Stock. The number of additional Performance Shares
(rounded down to the nearest whole number) to be so credited shall be determined by dividing (a) the amount of cash dividends paid on the dividend payment date with respect to the number of
shares of Stock represented by the Performance Shares previously credited to the Participant by (b) the Fair Market Value per share of Stock on such date. Dividend Equivalents may be paid
currently or may be accumulated and paid to the extent that Performance Shares become nonforfeitable, as determined by the Committee. Settlement of Dividend Equivalents may be made in cash, shares of
Stock, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of the related Performance Share as provided in Section 10.5. Dividend
Equivalents shall not be paid with respect to Performance Units. In the event of a dividend or distribution paid in shares of Stock or other property or any other adjustment made upon a change in the
capital structure of the Company as described in Section 4.4, appropriate adjustments shall be made in the Participant's Performance Share Award so that it represents the right to receive upon
settlement any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant would entitled by reason of the shares of Stock issuable
upon settlement of 

22

 

the
Performance Share Award, and all such new, substituted or additional securities or other property shall be immediately subject to the same Performance Goals as are applicable to the Award. 

        10.7    Effect of Termination of Service.    Unless otherwise provided by the Committee and
set forth in the Award Agreement evidencing a Performance Award, the effect of a Participant's termination of Service on the Performance Award shall be as follows: 

        (a)    Death or Disability.    If the Participant's Service terminates because of the death or
Disability of the Participant before the completion of the Performance Period applicable to the Performance Award, the final value of the Participant's Performance Award shall be determined by the
extent to which the applicable Performance Goals have been attained with respect to the entire Performance Period and shall be prorated based on the number of months of the Participant's Service
during the Performance Period. Payment shall be made following the end of the Performance Period in any manner permitted by Section 10.5. 

        (b)    Other Termination of Service.    If the Participant's Service terminates for any reason
except death or Disability before the completion of the Performance Period applicable to the Performance Award, such Award shall be forfeited in its entirety; provided, however, that in the event of
an involuntary
termination of the Participant's Service, the Committee, in its sole discretion, may waive the automatic forfeiture of all or any portion of any such Award and provide for payment of such Award. 

        10.8    Nontransferability of Performance Awards.    Prior to settlement in accordance with
the provisions of the Plan, no Performance Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of
the Participant or the Participant's beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to a Performance Award granted to a Participant hereunder
shall be exercisable during his or her lifetime only by such Participant or the Participant's guardian or legal representative. 

11.    STANDARD FORMS OF AWARD AGREEMENT.    

        11.1    Award Agreements.    Each Award shall comply with and be subject to the terms and
conditions set forth in the appropriate form of Award Agreement approved by the Committee and as amended from time to time. Any Award Agreement may consist of an appropriate form of Notice of Grant
and a form of Agreement incorporated therein by reference, or such other form or forms, including electronic media, as the Committee may approve from time to time. 

        11.2    Authority to Vary Terms.    The Committee shall have the authority from time to time
to vary the terms of any standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or
forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan. 

12.    EFFECT OF CHANGE IN CONTROL ON AWARDS.    Subject to the requirements and limitations of
Section 409A if applicable, the Committee may provide for any one or more of the following: 

        12.1    Accelerated Vesting.    The Committee may, in its discretion, provide in any Award
Agreement or, in the event of a Change in Control, may take such actions as it deems appropriate to provide for the acceleration of the exercisability, vesting and/or settlement in connection with
such Change in Control of each or any outstanding Award or portion thereof and shares acquired pursuant thereto upon such conditions, including termination of the Participant's Service prior to, upon,
or following such Change in Control, to such extent as the Committee shall determine. 

23

 

        12.2    Assumption, Continuation or Substitution.    In the event of a Change in Control, the
surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the  "Acquiror"),
may, without the consent of any Participant, either assume or continue the Company's rights
and obligations under each or any Award or portion thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award or portion thereof a
substantially equivalent award with respect to the Acquiror's stock, as applicable. For purposes of this Section, if so determined by the Committee, in its discretion, an Award denominated in shares
of Stock shall be deemed assumed if, following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the Plan and the applicable Award Agreement, for
each share of Stock subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of
a share of Stock on the effective date of the Change in Control was entitled; provided, however, that if such consideration is not solely common stock of the Acquiror, the Committee may, with the
consent of the Acquiror, provide for the consideration to be received upon the exercise or settlement of the Award, for each share of Stock subject to the Award, to consist solely of common stock of
the Acquiror equal in Fair Market Value to the per share consideration received by holders of Stock pursuant to the Change in Control. Any Award or portion thereof which is neither assumed or
continued by the Acquiror in connection with the Change in Control nor exercised or settled as of the time of consummation of the Change in Control shall terminate and cease to be outstanding
effective as of the time of consummation of the Change in Control. 

        12.3    Cash-Out of Outstanding Stock-Based Awards.    The Committee may, in its
discretion and without the consent of any Participant, determine that, upon the occurrence of a Change in Control, each or any Award denominated in shares of Stock or portion thereof outstanding
immediately prior to the Change in Control and not previously exercised or settled shall be canceled in exchange for a payment with respect to each vested share (and each unvested share, if so
determined by the Committee) of Stock subject to such canceled Award in (i) cash, (ii) stock of the Company or of a corporation or other business entity a party to the Change in Control,
or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per share of Stock in the Change
in Control, reduced by the exercise or purchase price per share, if any, under such Award. In the event such determination is made by the Committee, the amount of such payment (reduced by applicable
withholding taxes, if any) shall be paid to Participants in respect of the vested portions of their canceled Awards as soon as practicable following the date of the Change in Control and in respect of
the unvested portions of their canceled Awards in accordance with the vesting schedules applicable to such Awards. 

13.    COMPLIANCE WITH SECURITIES LAW.    

        The
grant of Awards and the issuance of shares of Stock pursuant to any Award shall be subject to compliance with all applicable requirements of federal, state and foreign law with
respect to such securities and the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, no Award may be exercised or shares issued pursuant to an
Award unless (a) a registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable pursuant to the Award or
(b) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be necessary to
the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not
have been obtained. As a condition to issuance of any Stock, 

24

 

the
Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation
or warranty with respect thereto as may be requested by the Company. 

14.    TAX WITHHOLDING.    

        14.1    Tax Withholding in General.    The Company shall have the right to deduct from any and
all payments made under the Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, to make adequate provision for, the federal, state, local and foreign taxes, if
any, required by law to be withheld by the Participating Company Group with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to deliver shares of
Stock, to release shares of Stock from an escrow established pursuant to an Award Agreement, or to make any payment in cash under the Plan until the Participating Company Group's tax withholding
obligations have been satisfied by the Participant. 

        14.2    Withholding in Shares.    The Company shall have the right, but not the obligation, to
deduct from the shares of Stock issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares of Stock having a Fair
Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of the Participating Company Group. The Fair Market Value of any shares of Stock withheld or
tendered to satisfy any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates. 

15.    AMENDMENT OR TERMINATION OF PLAN.    

        The
Committee may amend, suspend or terminate the Plan at any time. However, without the approval of the Company's stockholders, there shall be (a) no increase in the maximum
aggregate number of
shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.4), (b) no change in the class of persons eligible to receive Incentive Stock
Options, and (c) no other amendment of the Plan that would require approval of the Company's stockholders under any applicable law, regulation or rule, including the rules of any stock exchange
or market system upon which the Stock may then be listed. No amendment, suspension or termination of the Plan shall affect any then outstanding Award unless expressly provided by the Committee. Except
as provided by the next sentence, no amendment, suspension or termination of the Plan may adversely affect any then outstanding Award without the consent of the Participant. Notwithstanding any other
provision of the Plan to the contrary, the Committee may, in its sole and absolute discretion and without the consent of any Participant, amend the Plan or any Award Agreement, to take effect
retroactively or otherwise, as it deems necessary or advisable for the purpose of conforming the Plan or such Award Agreement to any present or future law, regulation or rule applicable to the Plan,
including, but not limited to, Section 409A. 

16.    COMPLIANCE WITH SECTION 409A.    

        16.1    Awards Subject to Section 409A.    The provisions of this Section 16
shall apply to any Award or portion thereof that is or becomes subject to Section 409A, notwithstanding any provision to the contrary contained in the Plan or the Award Agreement applicable to
such Award. Awards subject to Section 409A include, without limitation: 

        (a)   Any
Nonstatutory Stock Option that permits the deferral of compensation other than the deferral of recognition of income until the exercise of the Award. 

        (b)   Any
Restricted Stock Unit Award or Performance Award that either (i) the Award provides by its terms for settlement of all or any portion of the Award on one or
more dates following the Short-Term Deferral Period (as defined below) or (ii) the Committee permits or requires the Participant to elect one or more dates on which the Award will
be settled. 

25

 

        Subject
to any applicable U.S. Treasury Regulations promulgated pursuant to Section 409A or other applicable guidance, the term "Short-Term
Deferral Period" means the period ending on the later of (i) the 15th day of the third month following the end of the Company's
fiscal year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture or (ii) the 15th day of the third month following the end of the
Participant's taxable year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture. For this purpose, the term "substantial risk of forfeiture" shall have
the meaning set forth in any applicable U.S. Treasury Regulations promulgated pursuant to Section 409A or other applicable guidance. 

        16.2    Deferral and/or Distribution Elections.    Except as otherwise permitted or required
by Section 409A or any applicable U.S. Treasury Regulations promulgated pursuant to Section 409A or other applicable guidance, the following rules shall apply to any deferral and/or
distribution elections (each, an "Election") that may be permitted or required by the Committee pursuant to an Award subject to Section 409A: 

        (a)   All
Elections must be in writing and specify the amount of the distribution in settlement of an Award being deferred, as well as the time and form of distribution as
permitted by this Plan. 

        (b)   All
Elections shall be made by the end of the Participant's taxable year prior to the year in which services commence for which an Award may be granted to such
Participant; provided, however, that if the Award qualifies as "performance-based compensation" for purposes of Section 409A and is based on services performed over a period of at least twelve
(12) months, then the Election may be made no later than six (6) months prior to the end of such period. 

        (c)   Elections
shall continue in effect until a written election to revoke or change such Election is received by the Company, except that a written election to revoke or
change such Election must be made prior to the last day for making an Election determined in accordance with paragraph (b) above or as permitted by Section 16.3. 

        16.3    Subsequent Elections.    Except as otherwise permitted or required by
Section 409A or any applicable U.S. Treasury Regulations promulgated pursuant to Section 409A or other applicable guidance, any Award subject to Section 409A which permits a
subsequent Election to delay the distribution or change the form of distribution in settlement of such Award shall comply with the following requirements: 

        (a)   No
subsequent Election may take effect until at least twelve (12) months after the date on which the subsequent Election is made; 

        (b)   Each
subsequent Election related to a distribution in settlement of an Award not described in Section 16.3(b), 16.4(b), or 16.4(f) must result in a delay of the
distribution for a period of not less than five (5) years from the date such distribution would otherwise have been made; and 

        (c)   No
subsequent Election related to a distribution pursuant to Section 16.4(d) shall be made less than twelve (12) months prior to the date of the first
scheduled payment under such distribution. 

26

  

        16.4    Distributions Pursuant to Deferral Elections.    Except as otherwise permitted or
required by Section 409A or any applicable U.S. Treasury Regulations promulgated pursuant to Section 409A or other applicable guidance, no distribution in settlement of an Award subject
to Section 409A may commence earlier than: 

        (a)   Separation
from service (as determined by the Secretary of the United States Treasury); 

        (b)   The
date the Participant becomes Disabled (as defined below); 

        (c)   Death;

        (d)   A
specified time (or pursuant to a fixed schedule) that is either (i) specified by the Committee upon the grant of an Award and set forth in the Award Agreement
evidencing such Award or (ii) specified by the Participant in an Election complying with the requirements of Section 16.2 and/or 16.3, as applicable; 

        (e)   To
the extent provided by the Secretary of the U.S. Treasury, a change in the ownership or effective control or the Company or in the ownership of a substantial portion
of the assets of the Company; or 

        (f)    The
occurrence of an Unforeseeable Emergency (as defined by applicable U. S. Treasury Regulations promulgated pursuant to Section 409A). 

        Notwithstanding
anything else herein to the contrary, to the extent that a Participant is a "Specified Employee" (as defined in Section 409A(a)(2)(B)(i)) of the Code) of the
Company, no distribution pursuant to Section 16.4(a) in settlement of an Award subject to Section 409A may be made before the date which is six (6) months after such Participant's
date of separation from service, or, if earlier, the date of the Participant's death. 

        16.5    Unforeseeable Emergency.    The Committee shall have the authority to provide in the
Award Agreement evidencing any Award subject to Section 409A for distribution in settlement of all or a
portion of such Award in the event that a Participant establishes, to the satisfaction of the Committee, the occurrence of an Unforeseeable Emergency. In such event, the amount(s) distributed with
respect to such Unforeseeable Emergency cannot exceed the amounts necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such
distribution(s), after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or cessation of deferrals under the Award. All distributions with respect to an
Unforeseeable Emergency shall be made in a lump sum as soon as practicable following the Committee's determination that an Unforeseeable Emergency has occurred. 

        The
occurrence of an Unforeseeable Emergency shall be judged and determined by the Committee. The Committee's decision with respect to whether an Unforeseeable Emergency has occurred and
the manner in which, if at all, the distribution in settlement of an Award shall be altered or modified, shall be final, conclusive, and not subject to approval or appeal. 

        16.6    Disabled.    The Committee shall have the authority to provide in any Award subject to
Section 409A for distribution in settlement of such Award in the event that the Participant becomes Disabled. A Participant shall be considered "Disabled" if either: 

        (a)   the
Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than twelve (12) months, or 

27

 

        (b)   the
Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering
employees of the Participant's employer. 

        All
distributions payable by reason of a Participant becoming Disabled shall be paid in a lump sum or in periodic installments as established by the Participant's Election, commencing as
soon as practicable following the date the Participant becomes Disabled. If the Participant has made no Election with respect to distributions upon becoming Disabled, all such distributions shall be
paid in a lump sum as soon as practicable following the date the Participant becomes Disabled. 

        16.7    Death.    If a Participant dies before complete distribution of amounts payable upon
settlement of an Award subject to Section 409A, such undistributed amounts shall be distributed to his or her beneficiary
under the distribution method for death established by the Participant's Election as soon as administratively possible following receipt by the Committee of satisfactory notice and confirmation of the
Participant's death. If the Participant has made no Election with respect to distributions upon death, all such distributions shall be paid in a lump sum as soon as practicable following the date of
the Participant's death. 

        16.8    No Acceleration of Distributions.    Notwithstanding anything to the contrary herein,
this Plan does not permit the acceleration of the time or schedule of any distribution under an Award subject to Section 409A, except as provided by Section 409A and/or the Secretary of
the U.S. Treasury. 

        17.    MISCELLANEOUS PROVISIONS.    

        17.1    Repurchase Rights.    Shares issued under the Plan may be subject to one or more
repurchase options, or other conditions and restrictions as determined by the Committee in its discretion at the time the Award is granted. The Company shall have the right to assign at any time any
repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Participant shall execute any
agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock
acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 

        17.2    Forfeiture Events.    The Committee may specify in an Award Agreement that the
Participant's rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any
otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of Service for Cause or any act by a Participant, whether before
or after termination of Service, that would constitute Cause for termination of Service. 

        17.3    Provision of Information.    Each Participant shall be given access to information
concerning the Company equivalent to that information generally made available to the Company's common stockholders. 

        17.4    Rights as Employee, Consultant or Director.    No person, even though eligible
pursuant to Section 5, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the
Plan shall confer on any Participant a right to remain an Employee, Consultant or Director or interfere with or limit in any way any right of a Participating Company to terminate the Participant's
Service at any time. To the extent that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award shall in no event be understood or interpreted to 

28

 

mean
that the Company is the Employee's employer or that the Employee has an employment relationship with the Company. 

        17.5    Rights as a Stockholder.    A Participant shall have no rights as a stockholder with
respect to any shares of Stock covered by an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in
Section 4.4 or another provision of the Plan. 

        17.6    Delivery of Title to Shares.    Subject to any governing rules or regulations, the
Company shall issue or cause to be issued the shares of Stock acquired pursuant to an Award and shall deliver such shares to or for the benefit of the Participant by means of one or more of the
following: (a) by delivering to the Participant evidence of book entry shares of Stock credited to the account of the Participant, (b) by depositing such shares of Stock for the benefit
of the Participant with any broker with which the Participant has an account relationship, or (c) by delivering such shares of Stock to the Participant in certificate form. 

        17.7    Fractional Shares.    The Company shall not be required to issue fractional shares of
Stock upon the exercise or settlement of any Award. 

        17.8    Retirement and Welfare Plans.    Neither Awards made under this Plan nor shares of
Stock or cash paid pursuant to such Awards may be included as "compensation" for purposes of computing the benefits payable to any Participant under any Participating Company's retirement plans (both
qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant's benefit. 

        17.9    Beneficiary Designation.    Subject to local laws and procedures, each Participant may
file with the Company a written designation of a beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant's death before he or she
receives any or all of such benefit. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by
the Participant in writing with
the Company during the Participant's lifetime. If a married Participant designates a beneficiary other than the Participant's spouse, the effectiveness of such designation may be subject to the
consent of the Participant's spouse. If a Participant dies without an effective designation of a beneficiary who is living at the time of the Participant's death, the Company will pay any remaining
unpaid benefits to the Participant's legal representative. 

        17.10    Severability.    If any one or more of the provisions (or any part thereof) of this
Plan shall be held invalid, illegal or unenforceable in any respect, such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and enforceability of
the remaining provisions (or any part thereof) of the Plan shall not in any way be affected or impaired thereby. 

        17.11    No Constraint on Corporate Action.    Nothing in this Plan shall be construed to:
(a) limit, impair, or otherwise affect the Company's or another Participating Company's right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or
business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or another
Participating Company to take any action which such entity deems to be necessary or appropriate. 

        17.12    Unfunded Obligation.    Participants shall have the status of general unsecured
creditors of the Company. Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee
Retirement Income Security Act of 1974. No Participating Company shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with 

29

 

respect
to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations
hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any
Participating Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant's creditors in any assets of any Participating Company. The
Participants shall have no claim against any Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan. 

        17.13    Choice of Law.    Except to the extent governed by applicable federal law, the
validity, interpretation, construction and performance of the Plan and each Award Agreement shall be governed by the laws of the State of California, without regard to its conflict of law rules. 

        IN
WITNESS WHEREOF, the undersigned Secretary of the Company certifies that the foregoing sets forth the Globalstar, Inc. 2006 Equity Incentive Plan as duly adopted by the Board
on July 12, 2006. 

	

 	

/s/  RICHARD S. ROBERTS      
Secretary

30

QuickLinks

Exhibit 10.4

Globalstar, Inc. 2006 Equity Incentive PlanQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.5    
    

 
 

CONFIDENTIAL TREATMENT    
    

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

 
 

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

   DISTRIBUTION LIST  

	COMPANY
 
	 	Name
	 	Direction—Department

	STARSEM	 	 	 	DE
	 	 	 	 	DT
	

 	
 	

 	
 	

DC
	

 	
 	

 	
 	

DF
	GLOBALSTAR	 	 	 	 

CHANGES  

	Issue
 
	 	Date
	 	Changes description

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

2

 
SIGNATURES FOR APPROVAL  

	GLOBALSTAR Signature

	Name: P. ROSATI

Position: Contracts Manager

Date: 21 September 2005

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

Position: Senior Vice-President Strategic

               Initiatives and Space Operations

Date: 21 September 2005

Signature: /s/  MEGAN FITZGERALD      

   

	STARSEM

	Written by:
	 	Verified by:

	Name: C. TRASSY

Position: Legal Counsel

Date: 15 September 2005

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

Position: Vice President—Missions

Date: 15 September 2005

Signature: /s/  M. GROSHEITSCH      
	
Quality:
	
 	

Approved by:

	Name: J-Y MOALIC

Position: Quality Manager

Date: 15 September 2005

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

Position: Deputy Vice-President

Sales and Marketing

Date: 15 September 2005

Signature: /s/  CARL D. RISING      

3

 
LAUNCH SERVICES AGREEMENT  

This
Launch Services Agreement is entered into 

BY
AND BETWEEN 

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

ON
THE ONE HAND, 

AND

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

ON
THE OTHER HAND, 

4

   CONTENTS  

SECTION A

TERMS AND CONDITIONS  

	 
	 
	 	Pages

	ARTICLE 1	DEFINITIONS	 	7
	

ARTICLE 2	

SUBJECT OF THE AGREEMENT	
 	

10
	

ARTICLE 3	

CONTRACTUAL DOCUMENTS	
 	

10
	

ARTICLE 4	

STARSEM SERVICES	
 	

11
	

ARTICLE 5	

GLLC'S TECHNICAL COMMITMENTS	
 	

11
	

ARTICLE 6	

LAUNCH SCHEDULE	
 	

12
	

ARTICLE 7	

COORDINATION BETWEEN STARSEM AND GLLC	
 	

12
	

ARTICLE 8	

REMUNERATION	
 	

13
	

ARTICLE 9	

PRICE ESCALATION FORMULA	
 	

14
	

ARTICLE 10	

PAYMENT FOR SERVICES	
 	

14
	

ARTICLE 11	

LAUNCH SCHEDULE ADJUSTMENT	
 	

16
	

ARTICLE 12	

RIGHT OF OWNERSHIP AND CUSTODY	
 	

18
	

ARTICLE 13	

LAUNCH RISK GUARANTEE	
 	

19
	

ARTICLE 14	

ALLOCATION OF POTENTIAL LIABILITIES AND RISKS	
 	

20
	

ARTICLE 15	

INSURANCE	
 	

23
	

ARTICLE 16	

OWNERSHIP OF DOCUMENTS AND WRITTEN INFORMATION/ CONFIDENTIALITY / PUBLIC STATEMENTS	
 	

23
	

ARTICLE 17	

PERMITS AND AUTHORIZATIONS	
 	

25
	

ARTICLE 18	

TERMINATION BY GLLC	
 	

25
	

ARTICLE 19	

TERMINATION BY STARSEM	
 	

26
	

ARTICLE 20	

MISCELLANEOUS	
 	

27
	

ARTICLE 21	

APPLICABLE LAW	
 	

28
	

ARTICLE 22	

ARBITRATION	
 	

28
	

ARTICLE 23	

EFFECTIVE DATE	
 	

28

SECTION B

APPENDICES  

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

APPENDIX 2	

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

5

   SECTION A  

 TERMS AND CONDITIONS  

6

 

ARTICLE 1    DEFINITIONS  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7

 

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

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

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

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

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

        L means the actual Launch Day. 

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

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

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

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

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

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

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

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

8

 

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

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

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

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

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

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

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

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

        OL means the actual Launch Day of the Optional Launch 

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

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

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

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

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

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

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

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

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

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

        STARSEM property means any property STARSEM uses to perform the Launch Mission(s) and interface tests, or any property placed at GLLC's
and/or its Associate's disposal, including without limitation the Launch Vehicle(s) and any movable or immovable property at the Launch Site and at the STARSEM Payload Preparation and Launch
Facilities (SPPLF). 

9

 

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

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

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

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

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

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

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

ARTICLE 2    SUBJECT OF THE AGREEMENT  

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

ARTICLE 3    CONTRACTUAL DOCUMENTS  

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

	•
	Terms
and Conditions.

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

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

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

10

 

ARTICLE 4    STARSEM SERVICES  

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

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

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

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

	Firm Launch Services

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Firm

Launch
	 	Satellites

to be

Launched

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

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

	*
	As
defined in Appendix 1 and Appendix 2. 

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

	Optional Launch Services

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Optional

Launch
	 	Satellites

to be

Launched

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

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

	*
	As
defined in Appendix 1 and Appendix 2. 

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

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

ARTICLE 5    GLLC'S TECHNICAL COMMITMENTS  

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

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

11

 

ARTICLE 6    LAUNCH SCHEDULE  

        6.1.    Launch
schedule. 

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

	Launch

Number
	 	Anticipated Launch Period
	 	Preliminary

Launch Period

Determined at:
	 	Launch Period

Finalized at:

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

Optional Launch	
 	

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

T0	
 	

TOL

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

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

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

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

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

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

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

ARTICLE 7    COORDINATION BETWEEN STARSEM AND GLLC  

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

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

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

12

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

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

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

ARTICLE 8    REMUNERATION  

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

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

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Firm

Launch
	 	Launch

Services

Price (Euro)

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

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

	*
	As
defined in Appendix 1 and Appendix 2. 

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

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

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

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

	 
	 	Launch Vehicle Configuration(*)
	 	 

	Optional

Launch

Alternative
	 	Launch

Services

Price (Euro)

	 	Soyuz 3-Stage
	 	Fairing
	 	Dispenser

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

	*
	As
defined in Appendix 1 and Appendix 2. 

        8.2    Additional
Services 

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

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

13

 

ARTICLE 9    PRICE ESCALATION FORMULA  

        9.1.    Firm
Launch Services. 

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

        9.2.    Optional
Launch Services. 

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

ARTICLE 10    PAYMENT FOR SERVICES  

        10.1.    Payment
Plan. 

        10.1.1.    Payment
Plan of Firm Launch Services. 

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

	 
	 	 
	 	Preliminary Payments (Euro)

	Due Date of Payment

For

Firm Launch

Services
	 	Launch Services

Payments*

(Euro)
	 	Compatibility /

Feasibility

Study
	 	Long-Lead

Items

Dispenser

[1(a)]

	EDC	 	 	 	 	 	 
	

[*]	
 	

 	
 	

[*]	
 	

 

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

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

        Case 1: [*] 

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

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

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

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

	L
	= The
actual Launch Day. 

14

 

        10.1.2.    Payment
Plan of Optional Launch Services. 

	Due Date of Payment

For Optional

Launch Services
	 	Payments(*)

Launch Services

(Euro)

	Option Exercised
	 	 

	[*]	 	 

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

TOL = Authority
to Proceed with the Optional Launch Services. 

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

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

OL = The
actual Launch Day of the Optional Launch 

        10.2.    Payment
for Additional Services. 

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

        10.3.    Payments
terms 

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

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

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

Globalstar
LLC,

Post Office Box 640670

San Jose, California—95164-0670

Attention: Accounts Payable. 

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

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

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

15

 

        10.4.    Late
Payment. 

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

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

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

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

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

ARTICLE 11    LAUNCH SCHEDULE ADJUSTMENT  

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

        11.2.    Postponements
requested by GLLC. 

        11.2.1.    GLLC
shall have the right [*]. 

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

        11.2.1.2.    If
GLLC's written request relates to a Launch Day postponement, the choice of a new Launch Day shall be made by mutual agreement of the Parties, taking into
account the technical needs and interests of GLLC, the time necessary for the revalidation of the Soyuz Launch Vehicle, the Soyuz Launch Complex (SLC), the Soyuz Payload Preparation and Launch
Facilities (SPPLF), and the Baikonur Space Center (BSC) facilities and services used for launching the Launch Vehicle and the
meteorological forecasts. Should postponement of the Launch Day lead to postponement beyond the Launch Slot, Sub-paragraph 11.2.1.1 of ARTICLE 11 of this Agreement shall apply. 

        11.2.1.3.    GLLC
can stop the final countdown sequence until Launch Time—20 seconds. In the event that GLLC has requested such postponement and that technical
reasons, including, without limitation, those relating to meteorological reasons, prevent STARSEM 

16

 

from
performing the considered Launch on the Launch Day, the postponement shall be considered to be a postponement of the Launch Day, and Sub-paragraph 11.2.1.2 shall apply. 

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

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

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

          (i)  Events
of Force Majeure, and/or 

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

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

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

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

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

        11.3.    Launch
postponement by STARSEM. 

        11.3.1.    STARSEM
shall have the right to postpone a Launch Period, or if already determined, a Launch Slot, a Launch Day or a Launch Time up to a cumulative maximum of
[*]. 

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

        The
Parties shall determine by mutual agreement a new Launch Period and/or a new Launch Slot as near as possible to that postponed in accordance with a Launch Opportunity for the
considered GLLC's Satellite(s). The new Launch Day and the new Launch Time shall be determined by mutual agreement of the Parties according to the technical constraints of STARSEM and/or of its
Associates and the respective interests of the Parties. 

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

17

 

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

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

          (i)  Events
of Force Majeure, and/or 

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

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

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

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

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

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

ARTICLE 12    RIGHT OF OWNERSHIP AND CUSTODY  

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

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

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

18

   ARTICLE 13    LAUNCH RISK GUARANTEE  

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

        13.1.    Reflight.    

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

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

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

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

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

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

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

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

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

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

19

 

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

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

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

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

        And/or 

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

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

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

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

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

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

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

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

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

ARTICLE 14    ALLOCATION OF POTENTIAL LIABILITIES AND RISKS  

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

        14.1.1.    Due
to the particular nature of the Launch Services, the Parties agree that any liability of STARSEM or of GLLC arising from the defective, late or
non-performance of 

20

 

STARSEM's
Services and GLLC's technical obligations under this Agreement is, in all circumstances, including termination of this Agreement in all or in part, strictly limited to the liability
expressly provided for in this Agreement. Except as provided in this Agreement, the Parties hereto expressly waive, renounce, and exclude any and all rights and remedies that may arise at law or in
equity with respect to the Launch Services. 

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

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

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

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

        14.2.    Indemnification.    

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

        14.3.    Liability for damages suffered by Third Parties.    

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

        14.3.2.    In
the event of any proceeding, whether judicial, arbitral, administrative or otherwise, by a Third Party against one of the Parties, or its Associates on account of
loss or damage or bodily injury (including death) caused whether directly or indirectly by the other Party, its Property 

21

 

or
its Associates or its (their) property, the latter Party shall indemnify and hold harmless the former Party and/or the former Party's Associates, as the case may be, and shall advance any funds
necessary to defend their interests. 

        14.4.    Infringement of Industrial property rights of Third Parties.    

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

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

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

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

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

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

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

        14.4.6.    It
is expressly understood that neither Party's execution or performance of this Agreement, grants any rights to or under any of either Party's respective patents,
proprietary 

22

 

information,
and/or data, to the other Party or to any Third Party, unless such grant is expressly recited in a separate written document duly executed by or on behalf of the granting Party. 

ARTICLE 15    INSURANCE  

        15.1.    Third Parties Liability Insurance.    

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

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

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

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

        15.2.    Risk to the Satellite(s).    

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

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

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

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

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

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

        16.5.    Subject
to the provisions of Paragraph 16.4 of ARTICLE 16 of this Agreement, neither Party shall divulge any document, data or written information which
it receives from the other Party or the other Party's Associates, but shall protect all such documents, data and written information which is 

23

 

marked
with an appropriate and valid proprietary legend from unauthorized disclosure except as provided herein, in the same manner as the receiving Party protects its own confidential information,
provided, however, that each Party shall have the right to use and duplicate such documents, data and written information subject to the nondisclosure requirements and use restrictions provided
herein. 

        If
the information disclosed by one Party to the other Party or by or to their respective Associates is deemed confidential by the disclosing Party or Associate and is verbal, not
written, such verbal confidential information shall be identified prior to disclosure as confidential and, after acceptance by and disclosure to the receiving Party, shall be reduced to writing
promptly, labeled confidential, but in no event later than [*] thereafter, and delivered to the receiving Party in accordance with this Paragraph. 

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

	•
	are
insufficiently or improperly designated;

	•
	are
in the public domain or use;

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

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

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

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

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

	•
	are
independently developed by the receiving Party;

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

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

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

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

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

        16.9.    The
present Agreement and each part thereof shall be considered to be confidential by both Parties. Any disclosure of the same by one Party shall require the prior
written approval of the other 

24

 

Party,
except when disclosed to Associates or Clients. Approval shall not be unreasonably withheld or delayed. 

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

ARTICLE 17    PERMITS AND AUTHORIZATIONS  

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

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

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

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

ARTICLE 18    TERMINATION BY GLLC  

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

        18.2.    Termination by GLLC for GLLC's convenience.    

        18.2.1.    GLLC [*].    

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

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

	Effective Date of Termination of

the Firm Launch Services
	 	Percentage of the

Terminated Firm Launch Services

Payments [*]
	 	Percentage of the

Preliminary Payments

[*]

	 	 	[*]	 	 

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

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

	Effective Date of Termination of the

Optional Launch Services
	 	Percentage of the Terminated

Optional Launch Services [*]

	[*]

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

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

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

        18.3.    Termination by GLLC for cause.    

        [*]. 

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

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

ARTICLE 19    TERMINATION BY STARSEM  

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

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

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

26

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

ARTICLE 20    MISCELLANEOUS  

        20.1.    Working
language. 

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

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

        20.2.    Notices.

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

	STARSEM	 	GLLC
	

STARSEM

2 rue François Truffaut

91042 Evry Cedex

France	
 	

GLOBALSTAR LLC

461 South Milpitas Blvd

Milpitas, CA 95035

U.S.A
	

Attention: Cécile TRASSY

Telephone:+33 1 69 87 0122

Fax: +33 1 60 78 31 99	
 	

Attention: Paul ROSATI

Telephone:+1 408 933 4156

Fax: +1408 933 4943

        20.3.    Waiver.

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

        20.4.    Headings.

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

        20.5.    Assignment.

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

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

27

 

        20.6.    Entire
Agreement and Modifications. 

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

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

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

        20.8.    Publicity
/ Communication. 

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

ARTICLE 21    APPLICABLE LAW  

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

ARTICLE 22    ARBITRATION  

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

ARTICLE 23    EFFECTIVE DATE  

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

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

	STARSEM	 	GLOBALSTAR LLC
	

/s/  J-Y LE GALL      	
 	

/s/  K. ROSE      
	

J-Y LE GALL	
 	

K. ROSE
	

Chief Executive Officer	
 	

Director of Contracts

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QuickLinks

Exhibit 10.5

CONFIDENTIAL TREATMENT

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]