Document:

Exhibit
10.18

CONFIDENTIAL
TREATMENT

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

ESCROW
AGREEMENT

between

Globalstar, Inc.

461 South Milpitas Blvd.,
Milpitas, California 95035, U.S.A. (hereinafter referred to as “Globalstar”);

and

Alcatel
Alenia Space France

12, rue de la Baume, 75008 Paris, France (hereinafter referred to as “Alcatel”)

(Globalstar and Alcatel hereinafter referred to as the “Principals”);

and

Société Générale, Société
Anonyme au capital de 576.285.895,00 EUR, identification number 552 120 222 RCS
Paris, having its registered office in PARIS, 29 Boulevard Haussmann (hereinafter
referred to as the “Escrow Agent”).

The Principals and the Escrow
Agent are individually referred to as a “Party” and
together as “Parties”.

WHEREAS, Globalstar and Alcatel entered into an agreement (named
Contract # GINC-C-06-0300) on 30 November 2006 (as amended, restated, and/or
supplemented) pursuant to which Alcatel, as a producer and seller, will
construct and deliver low-earth-orbit satellites to Globalstar, as purchaser,
for its satellite constellation (the “Contract”);

WHEREAS, the Escrow Agent shall not be obliged to have any knowledge of
the content of the Contract, which is not binding on Escrow Agent and does not
have any effect on Escrow Agent (which, in its
turn, does not have any obligation to monitor or verify the accurate fulfilment
by the Principals of any of their respective obligations under the Contract),
but for the terms and conditions being reflected in this escrow agreement
(the “Escrow Agreement”);

WHEREAS, the Contract requires Globalstar, in order to secure its
payment obligations under the Contract, to make an initial deposit into escrow
of forty million (40,000,000) Euros (the “Initial Deposit”)
and, subsequently, to deposit into escrow certain additional amounts in order
to maintain the levels of funding set forth in Exhibit A (each such additional
amount a “Required Payment”) ;

WHEREAS, in such framework the Principals have decided to select Société
Générale as Escrow Agent for the performance of the provisions of this Escrow
Agreement;

WHEREAS, the Escrow Agent is willing to act as an escrow agent pursuant
to the terms and conditions agreed herein;

WHEREAS, the relationship between the Escrow Agent on the one hand and
the Principals on the other hand shall be solely and exclusively governed by
this Escrow Agreement, and none of the Principals may assert any claims
whatsoever against the Escrow Agent under the Contract. This Escrow Agreement
shall remain fully valid even if the Contract or any other agreement does not
become effective or is void or unenforceable for whatever reason; provided,
however, nothing contained in this Escrow Agreement shall be construed or
interpreted as amending or modifying any provisions of the Contract.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

1                                        Establishment of
Escrow — Investment of Escrow Fund

1.1.                              Opening
of the Escrow Account:

Upon signing
of this Escrow Agreement, the Escrow Agent shall open to the Principals a current account in the names
of both of the Principals (the “Escrow
Account”) bearing the designation “Escrow
Globalstar / Alcatel”, under the following references :

Bank code [*]

Branch Code :[*]

Account number :[*]

IBAN : [*]

SWIFT Adress (BIC Code) :[*]

 2
 

This
Escrow Account shall have the legal nature of a collective current account
without active solidarity (Compte
collectif sans solidarité active).

 

1.2.                              Deposit
of the Escrow Fund:

1.2.1.                    All
amounts deposited in the Escrow Account and remaining there or thereafter
invested in an investment account (a “Securities
Account”) as set forth in Article 1.3 (as increased by any amounts
earned as interest thereon or as investment-profit thereof or any additional
contributions and as reduced by any disbursements and/or amounts withdrawn or
deducted as provided for in this Escrow Agreement) are referred to herein
collectively as the “Escrow Fund.”  The Escrow Fund shall consist of the Escrow
Account and the Securities Account.

 

1.2.2.                    Globalstar shall deposit into the Escrow
Account the Initial Deposit within three (3) calendar days after the date of
entry into force of this Agreement.  On
the first Business Day of each calendar quarter (a “Quarter”) set forth on Exhibit
A of this Agreement, Globalstar shall deposit into the Escrow
Account such additional funds, if any, as may be required to cause the
aggregate balance of the Escrow Fund to equal the amount shown on Exhibit A for such Quarter (each such
amount is the “Deposit Requirement”
for such Quarter); such amount is approximately equal to the amount due under
the Contract for the two (2) immediately following Quarters of the Contract.
Exhibit A may be modified from time to time by joint written instruction of the
Principals.

In such case, the Principals
shall together promptly notify in writing the Escrow Agent of the changes
occurred in order to enable it to fulfil its obligations under article 2 below.
Without any such information in a reasonable timely basis, the Escrow Agent
shall be authorised to rely upon the last available Exhibit A.

 3
 

For the purpose of this
Escrow Agreement, “Business Day” shall mean a day on which banks are open for
business in Paris (excluding Saturdays, Sundays and public holidays)

1.2.3.                     Following the Initial Deposit, the amount of the Escrow Fund on any date
shall not fall below the Deposit
Requirement  corresponding
to such date as shown in Exhibit A.  However, the Escrow Agent shall not be
obliged to monitor the Deposit Requirement. 
The Escrow Agent shall only be obliged to report to the Principals the
balance of the Escrow Account and of the Securities Account as of the first
Business Day of each Quarter, the exact reporting date being the first Business
Day of a Quarter (the “Reporting Date”),
beginning on the first Business Day following 1 January 2007.

1.2.4.                   With effect as of each Reporting Date until the
termination of this Agreement and upon specific request by either of the
Principals, the Escrow Agent shall deliver to the Principals bank statements
regarding the Escrow Account and the related Securities Accounts (each an “Escrow Balance Report”), it being understood that such
Escrow Balance Report will be dispatched within five (5) Business Days after
the Reporting Date or the date
of a specific request.

1.2.5.                     If
on any Reporting Date the balance of the Escrow Fund as reported by Escrow
Agent is lower than the Deposit Requirement, Globalstar shall, within ten (10)
calendar days after delivery of the Escrow Balance Report, deposit into the
Escrow Account the amount necessary to increase the Escrow Fund to, but not in
excess of, the Deposit Requirement for such Reporting Date as shown on Exhibit A. If the tenth calendar day after
delivery of the Escrow Balance Report is a day the Escrow Agent is not open for
business, Globalstar shall deposit such amount on the first Business Day
thereafter.

 4
 

1.2.6.                     If following
the payment of a Claim (as such term and the pertinent procedure is further
specified in Section 2.3), other than a Claim with respect to a Termination
Payment (as such term is further specified in Section 2.3), the balance of the
Escrow Fund is lower than the Deposit Requirement, Globalstar shall, within ten
(10) calendar days after notice of such shortfall — with copy made to the
Escrow Agent, deposit into the Escrow Account the amount necessary to increase
the Escrow Fund to, but not in excess of, the Deposit Requirement for such date
as shown on Exhibit A. If the
tenth calendar day after such notice is a day the Escrow Agent is not open for
business, Globalstar shall deposit such amount on the first Business Day
thereafter.

The Principals
acknowledge and agree that the Escrow Agent shall have no duty whatsoever to
take any measures to cause the Principals or either of them to make the Initial
Deposit or any Required Payments, or to transfer amounts in connection with the
Deposit Requirement or the payment of Claims. The Escrow Agent’s only duty with
regard to the payment of funds into the Escrow Account shall be to inform the
Principals of the entry of amounts into the Escrow Account in accordance with
the provisions of the Escrow Agreement (such information duty being duly
fulfilled by delivery of an up-to-date Escrow Balance Report).

1.2.7.                     The right to
make distributions from the Escrow Fund, to give instructions to the Escrow
Agent with respect to the Escrow Fund or to undertake any transactions, etc.
relating to the Escrow Fund shall only be executed collectively by the
Principals, provided that information of purely informative character (such as change
of addresses, etc.) shall be given individually by the party concerned.  In the absence of joint and corresponding
instructions in writing, the Escrow Agent shall follow strictly the terms set
out herein.

1.3.                              Investment
of the Escrow Fund

1.3.1.                     The Escrow Agent shall invest the amount
available on the Escrow Account in Tradable Medium Term Notes (“BMTN”), as
specified in Exhibit E and will
guarantee the liquidity of the notes at any time.

 5
 

The BMTN shall
be registered on the Securities Account opened in the names of both Principals. This
account shall have the legal nature of a collective securities account without
active solidarity (compte titre collectif
sans solidarité active ). As the Escrow Fund, the BMTN shall be
kept in escrow by the Escrow Agent.

The interest earned on the
BMTN investment will be the EONIA rate (Euro Overnight Index Average, as
calculated by European Central Bank).

Alternatively to the BMTN and subject to feasibility
criteria for the Escrow Agent (from a commercial and technical stand point)
using its reasonable commercial best efforts, both Principals agree to allow
for the possibility to work together in good faith to cause the Escrow Agent
also to invest the Escrow Fund in corporate or government interest-bearing
investment grade securities (not including common stock) denominated in Euro.
The Parties agree to amend in good faith the Escrow Agreement at a later stage
as necessary, bearing in mind that the Principals had been made aware by the
Escrow Agent that such investment may entail risk of liquidity as well as a
risk of loss of the Escrow Fund invested as such, for which the Escrow Agent
shall not be held as liable.

1.3.2.                     Investments of Escrow Fund shall be
automatically made by the Escrow Agent promptly after receipt of (i) the
Initial Deposit from Globalstar, and (ii) a Required Payment from Globalstar.
The investment shall be made up to and within the limit of the BMTN’s nominal
value.

1.3.3.                     Neither the Escrow Account nor the Securities
Account shall bear any interest.

1.3.4.                     Except as otherwise provided in the Escrow
Agreement, any Request (as defined below), notification or other instruction
received by the Escrow Agent from an authorised Principal under article 2 below
shall implicitly include the right for the Escrow Agent to sell a relevant
portion of the BMTN investments in the Securities Account in order to comply
with the relevant Request, notification or other instruction made pursuant to
article 2.

2                                        Disbursement of
the Escrow Fund

The Escrow Agent will under no circumstances be obliged to pay out
according to this Escrow Agreement any amount exceeding the Escrow Fund
remaining at the moment of such a payment.

 6
 

The Escrow Agent shall distribute the Escrow Fund in
Euros as follows:

2.1                                If on any
Reporting Date the balance of the Escrow Fund is greater than the Deposit
Requirement (based on Exhibit A as then in effect) for the current Quarter (of
which such Reporting Date is the first Business Day), the Escrow Agent shall disburse, not earlier than on the third Business Day following the
delivery to the Escrow Agent of written  request
from Globalstar (the “Request”)
specifying the exact amount of funds to be paid, being not more than the
difference between the balance of the Escrow Fund as shown in the most recent Escrow
Balance Report and the Deposit Requirement for the then-current Quarter (and
then only to the extent that such payment does not exceed the amount then due
and payable to Alcatel pursuant to the Contract, provided that the Escrow Agent
shall have no duty to verify that), such amount to Alcatel’s account as defined
in Exhibit D hereto or as Alcatel may
expressly specify otherwise (the “Alcatel Account”).

The
Request shall be sent simultaneously by Globalstar by email to Alcatel and to
the Escrow Agent, provided that Alcatel’s consent to the Request shall be
deemed given if Alcatel has not notified the Escrow Agent in writing to the
contrary  within two (2) Business Days after the date of
the Request.  The Principals acknowledge
that the Escrow Agent shall have no duty to monitor whether or not the Request
had been sent to (or received by) Alcatel.

Alcatel shall treat each
payment received pursuant to a Request as one of payment of Globalstar’s
obligations under the Contract.

2.2.                              If on any
Reporting Date the balance of the Escrow Fund is lower than the Deposit
Requirement for such Reporting Date, the Escrow Agent shall make no payment
from the Escrow Account.

 7
 

2.3                                 If the Escrow
Agent receives, at any time, a notification from Alcatel in the
form of Exhibit B1 hereto (such notification to
be sent simultaneously by Alcatel to Globalstar and to the Escrow Agent by
email) certifying that Globalstar has failed to pay to Alcatel amounts then due
and payable under the Contract which have not yet been paid (a “Claim”) and specifying (i) the amounts to be paid to the
Alcatel Account and (ii) the provision of the Contract under which such amounts
are to be paid, including whether such amounts are due with respect to a
Required Payment or a payment for termination charges pursuant to Article 21 or
Article 22 of the Contract (“Termination
Payment”), the Escrow Agent shall, on the date to be specified in
such notification but not earlier than on the second Business Day following the
receipt by the Escrow Agent of such notification (provided that the
notification is received before 10 a.m. on its delivery date) by the Escrow
Agent, pay from the Escrow Fund the amount to be specified in such Claim to the
Alcatel Account.

The Principals acknowledge and agree that the Escrow Agent shall have no duty to verify
the content of any Claim or notification, nor to verify that Globalstar had
been made aware of the delivery of such notification to the Escrow Agent, and
further agree that disputes which may arise between the Principals
regarding the validity of any such Claim shall be resolved as a dispute or
disagreement under the Contract, pursuant to the provisions of Article 23 of
the Contract.

The Escrow Agent shall provide
a written notice to the Principals within two (2) Business Days after the
execution of any such payment to Alcatel, attaching a copy of such notification and an Escrow Balance Report reflecting
such payment. Alcatel shall treat each payment received pursuant to a Claim as
one of payment of Globalstar’s obligations under the Contract.

 8
 

2.4                                 If the Escrow
Agent receives, at any time, a notification from Alcatel in the form of Exhibit B2 hereto (such notification to be sent
simultaneously by Alcatel to Globalstar and to the Escrow Agent by email)
certifying that the Escrow Fund is sufficient, based upon the most recent
Escrow Balance Report, to make the final payment or payments to Alcatel in the
amount or amounts set forth in the notification and specifying (i) the amounts
to be paid to the Alcatel Account and (ii) that Alcatel has elected to be paid
all or part of its remaining payments by disbursement from the Escrow Fund, the
Escrow Agent, on the date or dates to be specified in such notification but not
earlier than  the second Business Day
following receipt by the Escrow Agent of such notification (provided that the
notification had been received before 10 a.m. on its delivery date)  by the Escrow Agent, shall disburse to
Alcatel by payment or payments to the Alcatel Account cash from the Escrow Fund
in the amounts to be specified in such notification (the “Final
Alcatel Payment”); upon receipt of the Final Alcatel Payment,
Alcatel shall have no further interest in the Escrow Fund.  The Principals acknowledge and agree that the
Escrow Agent shall have no duty to verify the content of such notification
electing to be paid the Final Alcatel Payment and / or to verify that  Globalstar had been made aware of the
delivery of such notification to the Escrow Agent. The Principals further agree
that disputes which may arise between them regarding the validity of such Final
Alcatel Payment shall be resolved as a dispute or disagreement under the
Contract, pursuant to the provisions of Article 23 of the Contract.

The Escrow Agent shall provide
a written notice to the Principals within two (2) Business Days after the
execution of any such payment to Alcatel, attaching a copy of such notification
and an Escrow Balance Report reflecting such payment. Alcatel shall treat each
payment received as a Final Alcatel Payment as one of payment of Globalstar’s
obligations under the Contract.

2.5                                 If at any time
after a Final Alcatel Payment has been made to Alcatel as provided for in
Section 2.4 the Escrow Agent receives a
notification from Globalstar certifying that Globalstar is in
agreement with the making and amount of the Final Alcatel Payment and that
Alcatel has received a copy of such
notification, Escrow Agent shall on the date to be specified on
such notification but not earlier than on the
second Business Day after receipt of such
notification, disburse to Globalstar the balance of the Escrow Fund by
payment to the account described in Exhibit C
hereto.

 9
 

The
Principals acknowledge and agree that the Escrow Agent shall have no duty to
verify the content of any notification, nor to verify that  Alcatel had been made aware of the delivery
of such notification to the Escrow Agent, and further agree that disputes which
may arise between them regarding the validity of any such notification shall be
resolved as a dispute or disagreement under the Contract, pursuant to the
provisions of Article 23 of the Contract.

Without prejudice of the
above, the Escrow Agent may distribute the whole or part of the Escrow Fund at
any time in accordance with the joint and corresponding written instructions by
the Principals or, in case of dispute between
the Principals (to the extent permitted by applicable law and/or any
binding agreement on them, including inter alia the Contract, it being
understood that the Escrow Agent shall have no obligation to monitor or to
participate in the relevant dispute), and in such
case, failing any relevant joint written instructions by the Principals,
pursuant to a final judgment (decision
judiciaire passée en force de chose jugée).

3             Indemnity

Globalstar and Alcatel
undertake to indemnify jointly and hold harmless the Escrow Agent for all and
any losses, costs, expenses, liabilities, claims, actions or demands including
legal costs which it may incur or which may be made against it as a result of
or in connection with this Escrow Agreement (as duly documented by the Escrow
Agent), including any legal costs incurred by the
Escrow Agent in order to enforce any of its rights arising out of this Escrow
Agreement, other than any loss, cost, expense, liability, claim, action
or demand which arises from the gross negligence or wilful misconduct of the
Escrow Agent.

For
the purpose of this article 3 only, it is agreed by all the Parties that
Globalstar shall be the first to be claimed against in writing by the Escrow
Agent.  If, within eight (8) calendar
days of the date of such written request, the Escrow Agent states that it
remains (in whole or in part) unsatisfied of its claim by Globalstar, then,
without being required to take any more steps against Globalstar, the Escrow
Agent shall have also the right to claim indemnity from Alcatel, it being
understood that such procedure shall not be, in any manner, construed as a
waiver by the Escrow Agent of the benefit of the joint undertaking of the
Principals.

 10

4             Limitations

4.1           The Escrow Agent shall be protected in acting upon any
written notice, request, demand, waiver, consent, receipt or other paper or
document furnished to it, not only as to its due execution and the validity and
effectiveness of its provisions but also as to the truth and acceptability of
any information therein contained, which it in good faith believes to be
genuine and what it purports to be.

4.2           The Escrow Agent shall be under no obligation to
institute, appear in or defend any action, suit or legal or arbitration
proceeding in connection with this Escrow Agreement or to take any other action
likely to involve it in liability, cost or expense, unless first indemnified to
its reasonable satisfaction.

5             Notices

Any and all notices or other
instruments or papers to be sent to the Escrow Agent by any other party hereto
pursuant to this Escrow Agreement shall be in writing and delivered personally
or sent by a courier service (costs prepaid) or by registered mail or facsimile
or email. In order to timely reach the Escrow Agent, they must be received by
the Escrow Agent on or before the dates as set out under this Escrow Agreement.

The Principals acknowledge the
risks they may incur by using fax systems and are therefore liable for all
possible damages resulting from erroneous fax transmissions or from failure to
detect inadequate proof of identity or counterfeits provided there has been no
gross negligence on the part of the Escrow Agent.  In addition, the Principals are aware that
banking secrecy is not guaranteed with telefax use.

If the Escrow Agent receives
such notices or other instruments or papers in a different way, it shall be
free to regard them as received or not and will not be liable towards any other
party for his decision.

Any
communication to be made between the Escrow Agent and a Principal under or in
connection with the Escrow Agreement may be made by electronic mail or other
electronic means, if the Escrow Agent and the relevant Principal: (i) agree
that, unless and until notified to the contrary, this is to be an accepted form
of communication; (ii) notify each other in writing of their electronic mail
address and/or any other information required to enable the sending and receipt
of information by that means; and (iii) notify each other of any change to
their address or any other such information supplied by them.

 11
 

Any
electronic communication made between the Escrow Agent and a Principal will be
effective only when actually received in readable form and in the case of any
electronic communication made by a Principal to the Escrow Agent only if it is
addressed as further detailed in this Escrow Agreement.

Anything to be sent to any
party hereto has to be sent to the following addresses:

if to the Globalstar to:                  Globalstar, Inc.

461
South Milpitas Blvd.

Milpitas, CA 95035, USA

Telephone:              [*]

Facsimile:                      [*]

Attention:                   [*]

E-mail:                                       [*]

 

with a mandatory copies to:

 

Taft, Stettinius &
Hollister LLP

425 Walnut Street

Suite 1800

Cincinnati, OH 45202,  USA

Telephone:              [*]

Facsimile:                      [*]

Attention:                   [*]

E-mail:                                       [*]

 

and

 

Kennedy
Covington Lobdell & Hickman, LLP

214
North Tryon St., 47th Floor

Charlotte,
NC  28202, USA

Telephone:              [*]

Facsimile:                      [*]

Attention:                   [*]

E-mail:                                       [*]

 

 12
 

 

	
  

  	
  if to Alcatel
  to:

  	
  Alcatel Alenia Space
  France

  100, Boulevard du midi - B.P 99

  06156 Cannes la Bocca Cedex — France

  Telephone:                       [*]

  Facsimile:                               [*]

  Attention:                            [*]

  E-mail:                                              [*]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a mandatory copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Alcatel Alenia Space
  France

  26, avenue Jean François Champollion

  31037 Toulouse Cedex — France

  Telephone:                       [*]

  Facsimile:                               [*]

  Attention:                            [*]

  E-mail:                                              [*]

  
	
   

  	
   

  	
   

  
	
   

  	
  if to the Escrow
  Agent to:

  	
  Société Générale

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  76 Rue Saint Jean, BP
  13196

  31131 BALMA Cedex - FRANCE

  Telephone:                       [*]

  Fax:                                                              [*]

  Attention:                            [*]

  E-Mail :                                        [*]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a mandatory copy to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Société Générale

  Rue Galilée, BP 500

  31316 Labège Cedex - FRANCE

  Telephone                        [*]

  Fax :                                                         [*]

  Attention :                          [*]

  E-Mail :                            [*]

                                             [*]

  

 

 13
 

6             Signatures

Any and all notices or other
instructions or papers to be sent to the Escrow Agent by any other party to
this Escrow Agreement shall be signed by the person(s) mentioned in the
respective form named “Authorized Signatories” (Exhibits D1
and D2).

7             Severability

Should any provision of this
Escrow Agreement be prohibited or ineffective or otherwise unenforceable in
whole or in part for whatever reason, such provision shall cease to have effect
without prejudicing the validity of the other provisions hereunder. The Parties
or the court having or taking jurisdiction hereupon will replace such provision
by another provision so that, to the extent possible, the economic balance of
this Escrow Agreement will be preserved.

8             Assignment and Amendment

This Escrow Agreement shall be
binding upon and enure to the benefit of the respective successors and assigns
of the Parties. It is agreed, however, that no party may assign any of its
rights or obligations hereunder without the written consent of the other
parties.

This Escrow Agreement may not
be amended except by a document in writing duly executed by the Parties. This
undertaking itself may only be amended by an agreement in writing. The Parties
agree that they jointly negotiated and prepared this Escrow Agreement and that
it shall not be construed against any Party on the grounds that such Party
prepared or drafted the same.

9             Entry into Force

This Escrow Agreement shall
enter into force upon the date of signature by all Parties and the fulfilment by the Principals of the relevant following
conditions precedent, satisfactory to the Escrow Agent, it being understood that no deposit
related to this Escrow Agreement shall be made by or on behalf of the
Principals until the Escrow Agent notifies the Principals that it has been
satisfied as to the form and substance of all of the relevant conditions
precedent.

 14
 

Conditions precedent to be provided to the Escrow Agent at
signing :

Each
Participant shall provide the Escrow agent with :

·                  A certified copy of the constitutional documents of each Principal (i.e extrait Kbis, - or its equivalent in the
relevant jurisdiction of incorporation of Globalstar — statuts - by laws),

·                  Evidence of the powers and authority of each Principal’s signatories and
of each person authorised to act as signatory of each relevant Principal
attorney under the Escrow Agreement (or any document derived from the Escrow
Agreement, including inter alia any notification) (if relevant) a copy of any
relevant corporate authorisation (resolution of the board of directors for
instance) approving the terms and the execution of the Escrow Agreement by the
relevant Principal,

·                  Specimen of signatures of each person authorised to act on behalf of
each Principals under the Escrow Agreement (as described in Exhibit D1 and D2).

In addition, Globalstar
shall provide the Escrow agent with:

·                  A legal opinion from the external advisers of Globalstar, confirming
inter alia the power and authority of the signatories of Globalstar, the
enforceability of the terms of the Escrow Agreement to Globalstar, the choice
of law and jurisdiction, and that all corporate authorisations in order to
execute and to enforce the Escrow Agreement have been obtained

·                  Payment to the Escrow Agent of all the fees due and payable for the
first year as set forth in article 11 below.

In
each case, in form and substance satisfactory to the Escrow Agent.

10           Termination

This Escrow Agreement shall
automatically terminate once the Escrow Fund is completely disbursed in
accordance with Section 2.5 and 2.6 above.

 15
 

In the event that any balance
should remain in the Escrow Fund on 31 December 2014, the Escrow Agent shall
have the right to withdraw from this Escrow Agreement at any time, observing a 60-calendar day notice period.  During this period, the Principals shall
jointly designate a new depository and Escrow Agent.  Should no such designation take place within
this period, the Escrow Agent shall keep the remaining balance until both
Principals give it a single instruction in order to move all the remaining
funds outside the Escrow Agent’s books.

11           Fees

Any and all fees of the Escrow
Agent shall be borne by Globalstar.

The fees shall consist of the
following :

Twenty-five thousand (25.000)
Euros (V.A.T. excluded) per year, payable to the Escrow Agent for the first
time at the date of signing of the Escrow Agreement, and subsequently on the
first Business Day of each anniversary of such date of signing, until
termination as set forth in article 10 above.

It is
understood between the Parties that, if Globalstar failed to pay such fees to
the Escrow Agent within ten (10) Business Days from the due date, then the
Principals hereby authorise the Escrow Agent to debit the corresponding amount
of unpaid fees against the Escrow Account at the end of that ten (10) Business
Days period.

12           Applicable Law and Place of
Jurisdiction

All legal relationship between
the Principals and the Escrow Agent in connection with this Escrow Agreement
shall be exclusively governed by and construed in accordance with French law.

The exclusive place of
jurisdiction for any disputes under the Escrow Agreement shall be Paris.

The Escrow Agent reserves the
right, however, to take legal action against either Principals or both before
the authority of their/his domicile or before any other competent authority, in
which event exclusively French law shall remain applicable.

13           Originals

The Escrow Agreement shall be
established and signed in three (3) originals.

 16
 

IN WITNESS
WHEREOF, this Escrow Agreement has been duly executed by the parties hereto or
their respective duly authorized officers or representatives in the place and
as of the date written below.

 

	
  Place / Date: Milpitas,
  California, USA, on 21 December 2006

  
	
   

  
	
  Globalstar,
  Inc.

  
	
   

  
	
   

  
	
   

  
	
  /s/ Fuad Ahmad

  	
   

  	
   

  
	
  Fuad Ahmad

  
	
  Vice President
  and Chief Financial Officer

  

 

 17
 

IN
WITNESS WHEREOF, this Escrow Agreement has been duly executed by the parties
hereto or their respective duly authorized officers or representatives in the
place and as of the date written below.

 

	
  Place / Date: Toulouse, on
  21 December 2006

  
	
   

  
	
  Alcatel
  Alenia Space France

  
	
   

  
	
   

  
	
   

  
	
  /s/ Jean-Marc
  Alias

  	
   

  	
   

  
	
  Name : Jean-Marc
  Alias

  
	
  Title : Chief
  Financial Officer

  

 

 18
 

IN
WITNESS WHEREOF, this Escrow Agreement has been duly executed by the parties
hereto or their respective duly authorized officers or representatives in the
place and as of the date written below.

 

	
  Place / Date: Toulouse, on
  21 December 2006

  
	
   

  
	
  Société Générale

  
	
   

  
	
   

  
	
   

  
	
  /s/ Ph. Dairien

  	
   

  	
   

  
	
  Name : Ph. Dairien

  
	
  Title :
  Corporate Manager

  

 

 19

Exhibit A

Deposit
Requirements

	
  NUMBER OF

  PERIOD

  	
   

  	
  DEPOSIT

  REQUIREMENT

  (IN EURO)

  	
   

  	
  DATES OF AVAILABILITY OF DEPOSIT

  REQUIREMENT IN ACCOUNT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1(Initial
  Deposit)

  	
   

  	
  40
  000 000

  	
   

  	
  Date
  Hereof to 31 Dec 2006

  	
   

  
	
  2

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jan 2007 to 31 Mar 2007

  	
   

  
	
  3

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Apr 2007 to 30 Jun 2007

  	
   

  
	
  4

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jul 2007 to 30 Sep 2007

  	
   

  
	
  5

  	
   

  	
  59
  000 000

  	
   

  	
  1
  Oct 2007 to 31 Dec 2007

  	
   

  
	
  6

  	
   

  	
  79
  000 000

  	
   

  	
  1
  Jan 2008 to 31 Mar 2008

  	
   

  
	
  7

  	
   

  	
  64
  000 000

  	
   

  	
  1
  Apr 2008 to 30 Jun 2008

  	
   

  
	
  8

  	
   

  	
  69
  000 000

  	
   

  	
  1
  Jul 2008 to 30 Sep 2008

  	
   

  
	
  9

  	
   

  	
  80
  000 000

  	
   

  	
  1
  Oct 2008 to 31 Dec 2008

  	
   

  
	
  10

  	
   

  	
  68
  000 000

  	
   

  	
  1
  Jan 2009 to 31 Mar 2009

  	
   

  
	
  11

  	
   

  	
  51
  000 000

  	
   

  	
  1
  Apr 2009 to 30 Jun 2009

  	
   

  
	
  12

  	
   

  	
  26
  000 000

  	
   

  	
  1
  Jul 2009 to 30 Sep 2009

  	
   

  
	
  13

  	
   

  	
  20
  000 000

  	
   

  	
  1
  Oct 2009 to 31 Dec 2009

  	
   

  
	
  14

  	
   

  	
  41
  000 000

  	
   

  	
  1
  Jan 2010 to 31 Mar 2010

  	
   

  
	
  15

  	
   

  	
  57
  000 000

  	
   

  	
  1
  Apr 2010 to 30 Jun 2010

  	
   

  
	
  16

  	
   

  	
  51
  000 000

  	
   

  	
  1
  Jul 2010 to 30 Sep 2010

  	
   

  
	
  17

  	
   

  	
  44
  000 000

  	
   

  	
  1
  Oct 2010 to 31 Dec 2010

  	
   

  
	
  18

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jan 2011 to 31 Mar 2011

  	
   

  
	
  19

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Apr 2011 to 30 Jun 2011

  	
   

  
	
  20

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jul 2011 to 30 Sep 2011

  	
   

  
	
  21

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Oct 2011 to 31 Dec 2011

  	
   

  
	
  22

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jan 2012 to 31 Mar 2012

  	
   

  
	
  23

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Apr 2012 to 30 Jun 2012

  	
   

  
	
  24

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jul 2012 to 30 Sep 2012

  	
   

  
	
  25

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Oct 2012 to 31 Dec 2012

  	
   

  
	
  26

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Jan 2013 to 31 Mar 2013

  	
   

  
	
  27

  	
   

  	
  40
  000 000

  	
   

  	
  1
  Apr 2013 to 30 Jun 2013

  	
   

  
	
  28

  	
   

  	
  26
  000 000

  	
   

  	
  1
  Jul 2013 to 30 Sep 2013

  	
   

  
	
  29

  	
   

  	
  6 000 000

  	
   

  	
  1 Oct 2013 to 31 Dec
  2013

  	
   

  

 

Required
Payments

	
  NUMBER OF PERIOD
 (see above)

  	
   

  	
  AMOUNT OF REQUIRED

  PAYMENT

  (IN EURO)

  	
   

  	
  DATES OF

  REQUIRED PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  19
  000 000

  	
   

  	
  1
  Oct 2007

  	
   

  
	
  6

  	
   

  	
  20
  000 000

  	
   

  	
  1
  Jan 2008

  	
   

  
	
  8

  	
   

  	
  5
  000 000

  	
   

  	
  1
  Jul 2008

  	
   

  
	
  9

  	
   

  	
  11
  000 000

  	
   

  	
  1
  Oct 2008

  	
   

  
	
  14

  	
   

  	
  21
  000 000

  	
   

  	
  1
  Jan 2010

  	
   

  
	
  15

  	
   

  	
  16 000 000

  	
   

  	
  1 Apr 2010

  	
   

  

 

 20

Exhibit B1

Form of Notification

 

I,
_____________________, depose, represent and warrant as follows:

1. I
am the duly elected _________________ of Alcatel Alenia Space France, a French
company having its registered office at 12, rue de la Baume 75008 Paris, France
(“Alcatel”), and I have the legal capacity and all other necessary power and
authority to execute this
Notification on behalf of the Alcatel. I have done the necessary investigation
and have the knowledge to be able to make the statements set forth herein on
behalf of the Alcatel.

2. This Notification is directed to
_______________, a ________________ organized under the laws of France, as
escrow agent (the “Escrow Agent”) under the Escrow Agreement dated _______,
2006 among Globalstar, Inc. (“Globalstar”), Alcatel and Escrow Agent (the “Escrow
Agreement”). Capitalized terms not defined herein have the meanings set forth
in the Escrow Agreement.

3. Globalstar has failed to pay funds due and payable to Alcatel as
required by the terms and conditions of the Contract (or, in a situation where
Alcatel is required to submit invoices or provide notices in order for such
funds to be due, Globalstar has failed to pay such funds that would have been
required by the terms and conditions of the Contract if Alcatel had been
permitted by law to submit all required invoices and provide all such notices)
in the amount of _______________________ Million Euros (____,000,000 €), which
amount is due and payable to Alcatel.

4.
Such funds are due with respect to [a Quarterly Payment, or other calendar
payment or payment for a Milestone Event (as defined in the Contract) under
Article 7 of the Contract] [payment for termination charges under Articles 21
and/or 22 of the Contract].

5.
Escrow Agent is to pay the funds to Alcatel on [date] or on the first Business
Day after the repayment date of the investments effected according to Section
1.2 of the Escrow Agreement, (which date is at least two (2) Business Days
after delivery of this Notification), by payment to the [Alcatel Account]
[describe other account],

6.
Alcatel agrees that signatures transmitted by facsimile will be binding on
Alcatel as if originally executed.

7.
This Notification shall
be governed by French law.  The exclusive
place of jurisdiction for any disputes arising out of it shall be Paris

Executed this
_____ day of __________.

	
  

  	
  Alcatel Alenia Space France

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 21
 

Exhibit B2

Form of Notification

 

I,
_____________________, depose, represent and warrant as follows:

1. I
am the duly elected _________________ of Alcatel Alenia Space France, a French
company having its registered office at 12, rue de la Baume 75008 Paris, France
(“Alcatel”), and I have the legal capacity and all other necessary power and
authority to execute this Notification on behalf of the Alcatel. I have done
the necessary investigation and have the knowledge to be able to make the
statements set forth herein on behalf of the Alcatel.

2.
This Notification is directed to ________________, a __________________
organized under the laws of France, as escrow agent (the “Escrow Agent”) under
the Escrow Agreement dated _________, 2006 among Globalstar, Inc. (“Globalstar”),
Alcatel and Escrow Agent (the “Escrow Agreement”). Capitalized terms not
defined herein have the meanings set forth in the Escrow Agreement.

3.
The amount in the Escrow Fund is sufficient, based upon the most recent Escrow
Balance Report, to make the final payment or payments to Alcatel under the
Contract in the amount [or amounts] of _______________________ Million Euros
(____,000,000 €), which amount is due and payable to Alcatel.

4.
Alcatel has elected to be paid its remaining payments by disbursement from the
Escrow Fund under Article __ of the Contract.

5.
Escrow Agent is to pay the funds to Alcatel on [date] or on the first Business
Day after the repayment date of the investments effected according to Section
1.2 of the Escrow Agreement, (which date is at least two (2) Business Days
after delivery of this Notification), by payment to the [Alcatel Account]
[describe other account].

6.
Alcatel agrees that signatures transmitted by facsimile will be binding on the
Alcatel as if originally executed.

7.
This Notification shall be governed
by French law.  The exclusive place of
jurisdiction for any disputes arising out of it shall be Paris.

Executed this
_____ day of __________.

	
  

  	
  Alcatel Alenia Space France

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 22

 

Exhibit C

Account Payment Instructions

 

 

if in
favour of Alcatel

 

Alcatel Alenia Space France

Société Générale Toulouse

Address : Innopole Voie 8 - BP 500 — 31316
Labège Cedex, France

Swift Code :                            [*]

Account n°                              [*]

 

 

 

 

if in favour of Globalstar

Union Bank of
California

350 California
Street, 10th Floor

San Francisco,
CA  94104

 

SWIFT CODE:        [*]

Account Name:  Globalstar, Inc.

Account
Number:                                          [*]

ABA Routing:       [*]

 

 23

 

Exhibit D1

Signatures Card

We hereby advise you of
the following persons with unlimited authority to sign (without right of
substitution), to carry out any legal acts and to enter other obligations
vis-à-vis Société Générale acting as Escrow Agent in connection and exclusively
in accordance with the terms and conditions of the Escrow Agreement.

 

	
  Globalstar, Inc

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   Last name/first name

  	
   

  	
  Nationality / date of birth

  	
   

  	
  Signature

  	
   

  	
   Authority to sign:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

  signature

  or

  “ by joint

  signature of 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

  signature

  or

  “ by joint

  signature of 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

   signature

  or

  “ by joint

  signature of 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “
  by sole

  signature

  or

  “
  by joint

  signature of 2

  
													

 

The power of attorney of the authorized signatories shall be applicable
without restriction until the Escrow Agent receives an explicit revocation in
writing. The power of attorney, therefore, shall remain in effect irrespective
of any other or missing entries in a public register (e.g. the commercial register)”

Place/Date: _______________ / _______________

Globalstar,
Inc.

_______________________

Name/Function:

 24
 

 

Exhibit
D2

 

Signatures
Card

 

We hereby advise you of
the following persons with unlimited authority to sign (without right of
substitution), to carry out any legal acts and to enter other obligations
vis-à-vis Société Générale acting as Escrow Agent in connection and exclusively
in accordance with the terms and conditions of the Escrow Agreement.

 

	
  Alcatel Alenia Space France

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   Last name/first name

  	
   

  	
  Nationality / date of birth

  	
   

  	
  Signature

  	
   

  	
   Authority to sign:

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

  signature

  or

  “ by joint

  signature of 2

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

  signature

  or

  “ by joint

  signature of 2

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “ by sole

   signature

  or

  “ by joint

  signature of 2

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  “
  by sole

  signature

  or

  “
  by joint

  signature of 2

  	 

															

 

The power of attorney of the authorized signatories shall be
applicable without restriction until the Escrow Agent receives an explicit
revocation in writing. The power of attorney, therefore, shall remain in effect
irrespective of any other or missing entries in a public register (e.g. the
commercial register)”

Place/Date: _______________ / _______________

Alcatel
Alenia Space France

_______________________

Name/Function:

 25

 

Exhibit
E

 

	
  

  	
   

  SURPLUS
  MANAGEMENT

   

  	
   

  

 

 

SOCIETE GENERALE, through its subsidiary SG EURO C.T.
offers investors the possibility to place their surplus cash in tradeable
medium-term notes (BMTN).

·      HOW IS A
TRADEABLE MEDIUM-TERM NOTE PURCHASED ?

 

SG EURO C.T., which is
100% owned by the SOCIETE GENERALE Group, sells an investor one or more money
market notes issued by SOCIETE GENERALE, the unit amount of which is EUR
152,500 .

SG EURO C.T. guarantees the liquidity of the notes,
meaning that it redeems them at any time.

·      HOW IS THE
YIELD DETERMINED ?

 

The investor determines
the yield on his investment beforehand with his SOCIETE GENERALE branch by
taking a fixed-rate or a variable-rate reference (from one day to several
months, starting on the day’s value or a deferred value).

 

- Fixed-rate  yield :

The benchmark is the SOCIETE GENERALE borrower rate.
Naturally, in the case where the fixed rate is chosen, the yield is less if the
note is redeemed before maturity.

- Variable-rate yield :

The benchmark is the EONIA (Euro OverNight Index
Average). The EONIA rate is calculated by the European Central Bank and is
distributed by the European Banking Federation.

·      ADVANTAGES
OF THE INVESTMENT

 

- Security
: Legally, the investor owns one or more tradeable medium-term notes issued by
SOCIETE GENERALE and, therefore, runs a risk on SOCIETE GENERALE.

 

- Flexibility : A fixed or undetermined period can be chosen
for each investment.

- Choice of
the yield : there are no entry or withdrawal costs. Depending on
expectations, the investor can choose a fixed yield, a variable yield or a
mixture of both.

 

 26Exhibit 10.22

GLOBALSTAR, INC.

NOTICE OF GRANT OF RESTRICTED STOCK

The
Participant  has been granted an award
(the “Award”)
pursuant to the Globalstar, Inc. 2006 Equity Incentive Plan (the “Plan”) of certain shares of Stock (the “Shares”),
as follows:

 

	
  Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vested Shares: 
  Except as provided in the Restricted Stock Agreement
  and provided that the Participant’s Service has not terminated prior to the
  relevant date, the number of Vested Shares shall cumulatively increase on
  each respective date set forth below by the number of shares set forth
  opposite such date, as follows:

  
	
   

  
	
   

  	
  

  Vesting Date

  	
  

  No. Shares Vesting

  	
  Cumulative

  No.
  Vested Shares

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

By their signatures below or by electronic acceptance or authentication
in a form authorized by the Company, the Company and the Participant agree that
the Award is governed by this Grant Notice and by the provisions of the Plan
and the Restricted Stock Agreement, both of which are made part of this
document.  The Participant acknowledges
that copies of the Plan, Restricted Stock Agreement and the prospectus for the
Plan are attached hereto.  The
Participant represents that the Participant has read and is familiar with the
provisions of the Plan and the Restricted Stock Agreement, and hereby accepts
the Award subject to all of their terms and conditions.

	
  GLOBALSTAR, INC.

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

ATTACHMENTS:                                             2006
Equity Incentive Plan, as amended to the Date of Grant; Restricted Stock
Agreement; Joint Escrow Instructions; Assignment Separate from Certificate and
Plan Prospectus

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED
the undersigned does hereby sell, assign and transfer unto 

___________________________________________________________________________

___________________________________________________
(_________________) shares of the Capital Stock of GLOBALSTAR, INC. standing in
the undersigned’s name on the books of said corporation represented by
Certificate No. __________________ herewith and does hereby irrevocably
constitute and appoint ________________________________ Attorney to transfer
the said stock on the books of said corporation with full power of substitution
in the premises.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  

 

Instructions:  Please do not fill in any blanks other than
the signature line.  The purpose of this
assignment is to enable the Company to exercise its Company Reacquisition Right
set forth in the Restricted Stock Agreement without requiring additional
signatures on the part of the Participant.

 2

GLOBALSTAR, INC.

RESTRICTED STOCK AGREEMENT

Globalstar,
Inc. has granted to the Participant named in the Notice of
Grant of Restricted Stock (the “Grant Notice”)
to which this Restricted Stock Agreement (the “Agreement”) is attached an Award consisting of Shares
subject to the terms and conditions set forth in the Grant Notice and this
Agreement.  The Award has been granted
pursuant to the Globalstar, Inc. 2006 Equity Incentive Plan (the “Plan”), as amended to the
Date of Grant, the provisions of which are incorporated herein by
reference.  By signing the Grant Notice,
the Participant: (a) acknowledges receipt of and represents that the
Participant has read and is familiar with the Grant Notice, this Agreement, the
Plan and a prospectus for the Plan in the form
most recently registered with the Securities and Exchange Commission (the “Plan Prospectus”),
(b) accepts the Award subject to all of the terms and conditions of the
Grant Notice, this Agreement and the Plan and (c) agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any questions arising under the Grant Notice, this Agreement or the Plan.

1.             Definitions and
Construction.

1.1                 Definitions.  Unless otherwise defined herein, capitalized
terms shall have the meanings assigned to such terms in the Grant Notice or the
Plan.

1.2                 Construction.  Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of this Agreement.  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.

2.             Administration.

All questions of interpretation
concerning the Grant Notice and this Agreement shall be determined by the
Committee.  All determinations by the
Committee shall be final and binding upon all persons having an interest in the
Award.  Any Officer of a Participating
Company shall have the authority to act on behalf of the Company with respect
to any matter, right, obligation, 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, or election.

3.             The Award.

3.1                 Grant and Issuance
of Shares.  On the Date of
Grant, the Participant shall acquire and the Company shall issue, subject to
the provisions of this Agreement, a number of Shares equal to the Total Number
of Shares set forth in the Grant Notice. 
As a condition to the issuance of the Shares, the Participant shall
execute and deliver to the Company along with the Grant Notice the Assignment
Separate from Certificate duly endorsed (with date and number of shares blank)
in the form attached to the Grant Notice.

   
 

3.2                 No Monetary Payment
Required.  The Participant is
not required to make any monetary payment (other than applicable tax
withholding, if any) as a condition to receiving the Shares, the consideration for
which shall be past services actually rendered and/or future services to be
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 Award.

3.3                 Beneficial
Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the
Company, in its sole discretion, to deposit the Shares with the Company’s
transfer agent, including any successor transfer agent, to be held in book
entry form during the term of the Escrow pursuant to Section 6.  Furthermore, the Participant hereby
authorizes the Company, in its sole discretion, to deposit, following the term
of such Escrow, for the benefit of the Participant with any broker with which
the Participant has an account relationship of which the Company has notice any
or all Shares which are no longer subject to such Escrow.  Except as provided by the foregoing, a
certificate for the Shares shall be registered in the name of the Participant,
or, if applicable, in the names of the heirs of the Participant.

3.4                 Issuance of Shares
in Compliance with Law.  The issuance of the Shares shall be subject
to compliance with all applicable requirements of federal, state or foreign law
with respect to such securities.  No
Shares shall be issued hereunder if their issuance would constitute a violation
of any applicable federal, state or foreign securities laws or other law or
regulations or the requirements of any stock exchange or market system upon
which the Stock may then be listed.  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 of any Shares shall relieve the Company of any liability in
respect of the failure to issue such Shares as to which such requisite
authority shall not have been obtained. 
As a condition to the issuance of the Shares, 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.

4.             Vesting of Shares.

4.1                 Normal Vesting.  Except as provided in Section 4.2, the
Shares shall vest and become Vested Shares as provided in the Grant Notice;
provided however, that Shares that would otherwise become Vested Shares on a
date on which a sale of such Shares by the Participant would violate the
Insider Trading Policy of the Company shall, not withstanding the vesting
schedule set forth in the Grant Notice, become Vested Shares on the next day on
which such sale would not violate the Insider Trading Policy.  For purposes of this Section, “Insider Trading Policy” means the written policy of the Company pertaining to the
sale, transfer or other disposition of the Company’s equity securities by
members of the Board, Officers or other employees who may possess material,
non-public information regarding the Company, as in effect at the time of a
disposition of any Shares.  No additional
Shares will become Vested Shares following the Participant’s termination of
Service for any reason.

 2
 

4.2                 Acceleration of
Vesting Upon a Change in Control. 
In the event of a Change in Control, the vesting of the Shares shall be
accelerated in full and the Total Number of Shares shall be deemed Vested
Shares effective as of the date of the Change in Control, provided that the
Participant’s Service has not terminated prior to such date.

4.3                 Federal Excise Tax
Under Section 4999 of the Code.

(a)           Excess Parachute Payment.  In the event that any acceleration of vesting
pursuant to this Agreement and any other payment or benefit received or to be
received by the Participant would subject the Participant to any excise tax
pursuant to Section 4999 of the Code due to the characterization of such
acceleration of vesting, payment or benefit as an excess parachute payment
under Section 280G of the Code, the Participant may elect, in his or her
sole discretion, to reduce the amount of any acceleration of vesting called for
under this Agreement in order to avoid such characterization.

(b)           Determination by Independent Accountants.  To aid the Participant in making any election
called for under Section 4.3(a), upon the occurrence of any event that
might reasonably be anticipated to give rise to the acceleration of vesting
under Section 4.2 (an “Event”), the Company shall
promptly request a determination in writing by independent public accountants
selected by the Company (the “Accountants”).  Unless the Company and the Participant
otherwise agree in writing, the Accountants shall determine and report to the
Company and the Participant within twenty (20) days of the date of the Event
the amount of such acceleration of vesting, payments and benefits which would produce
the greatest after-tax benefit to the Participant.  For the purposes of such determination, the
Accountants may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code.  The Company and the Participant shall furnish
to the Accountants such information and documents as the Accountants may
reasonably request in order to make their required determination.  The Company shall bear all fees and expenses
the Accountants may reasonably charge in connection with their services
contemplated by this Section.

5.             Company Reacquisition
Right.

5.1                 Grant of Company
Reacquisition Right.  Except to the extent otherwise provided in an
employment agreement between a Participating Company and the Participant, in
the event that (a) the Participant’s Service terminates for any reason or
no reason, with or without Cause, or (b) the Participant, the Participant’s
legal representative, or other holder of the Shares, attempts to sell,
exchange, transfer, pledge, or otherwise dispose of (other than pursuant to an
Ownership Change Event), including, without limitation, any transfer to a
nominee or agent of the Participant, any Shares which are not Vested Shares (“Unvested Shares”), the Company shall automatically reacquire the Unvested
Shares, and the Participant shall not be entitled to any payment therefor (the “Company Reacquisition Right”).

5.2                 Ownership Change
Event.  Upon the occurrence of an Ownership Change
Event, any and all new, substituted or additional securities or other property
to which the Participant is entitled by reason of the Participant’s ownership
of Unvested Shares shall be immediately subject to the Company Reacquisition
Right and included in the terms “Shares,” “Stock” and “Unvested Shares” for all
purposes of the Company Reacquisition Right with the

 3
 

same force and
effect as the Unvested Shares immediately prior to the Ownership Change
Event.  For purposes of determining the
number of Vested Shares following an Ownership Change Event, credited Service shall
include all Service with any corporation which is a Participating Company at
the time the Service is rendered, whether or not such corporation is a
Participating Company both before and after the Ownership Change Event.

6.             Escrow.

6.1                 Appointment of Agent.  To ensure that Shares subject to the Company
Reacquisition Right will be available for reacquisition, the Participant and
the Company hereby appoint the Secretary of the Company, or any other person
designated by the Company, as their agent and as attorney-in-fact for the
Participant (the “Agent”) to hold any and all Unvested Shares and to
sell, assign and transfer to the Company any such Unvested Shares reacquired by
the Company pursuant to the Company Reacquisition Right.  The Participant understands that appointment
of the Agent is a material inducement to make this Agreement and that such
appointment is coupled with an interest and is irrevocable.  The Agent shall not be personally liable for
any act the Agent may do or omit to do hereunder as escrow agent, agent for the
Company, or attorney in fact for the Participant while acting in good faith and
in the exercise of the Agent’s own good judgment, and any act done or omitted
by the Agent pursuant to the advice of the Agent’s own attorneys shall be
conclusive evidence of such good faith. 
The Agent may rely upon any letter, notice or other document executed by
any signature purporting to be genuine and may resign at any time.

6.2                 Establishment of
Escrow.  The Participant authorizes the Company to deposit
the Unvested Shares with the Company’s transfer agent to be held in book entry
form, as provided in Section 3.3, and the Participant agrees to deliver to
and deposit with the Agent each certificate, if any, evidencing the Shares and
an Assignment Separate from Certificate with respect to such book entry shares
and each such certificate duly endorsed (with date and number of Shares blank)
in the form attached to the Grant Notice, to be held by the Agent under the
terms and conditions of this Section 6 (the “Escrow”).  Upon the occurrence of an Ownership Change
Event or a change, as described in Section 8, in the character or amount
of any outstanding stock of the corporation the stock of which is subject to
the provisions of this Agreement, any and all new, substituted or additional
securities or other property to which the Participant is entitled by reason of
his or her ownership of the Shares that remain, following such Ownership Change
Event or change described in Section 8, subject to the Company Reacquisition
Right shall be immediately subject to the Escrow to the same extent as the
Shares immediately before such event. 
The Company shall bear the expenses of the Escrow.

6.3                 Delivery of Shares
to Participant.  Whenever
the Participant or the Participant’s legal representative proposes to sell,
exchange, transfer, pledge or otherwise dispose of (other than pursuant to an
Ownership Change Event) any shares of Stock subject to the Escrow, the
Participant shall so notify the Company. 
As soon as practicable thereafter, the Company shall determine, in its
sole discretion, whether (a) such proposed disposition would not cause the
Company to automatically reacquire such Shares pursuant to the Company
Reacquisition Right and (b) the Participant has made adequate provision
for the tax withholding obligations, if any, pursuant to Section 7.  If both conditions (a) and (b) set forth in
the preceding sentence are satisfied, the Company shall, as soon as
practicable, so notify the Participant and give to the Agent a

 4
 

written notice directing the Agent to deliver such Shares to the
Participant.  As soon as practicable
after receipt of such notice, the Agent shall deliver to the Participant the
Shares specified in such notice, and the Escrow shall terminate with respect to
such Shares.

7.             Tax Matters.

7.1                 Tax Withholding.

(a)           In General.  At the
time the Grant Notice is executed, or at any time thereafter as requested by a
Participating Company, the Participant hereby authorizes withholding from
payroll and any other amounts payable to the Participant, and otherwise agrees
to make adequate provision for, any sums required to satisfy the federal,
state, local and foreign tax withholding obligations of the Participating
Company, if any, which arise in connection with the Award, including, without
limitation, obligations arising upon (a) the transfer of Shares to the
Participant, (b) the lapsing of any restriction with respect to any
Shares, (c) the filing of an election to recognize tax liability, or (d) the
transfer by the Participant of any Shares. 
The Company shall have no obligation to deliver the Shares or to release
any Shares from the Escrow established pursuant to Section 6 until the tax
withholding obligations of the Participating Company have been satisfied by the
Participant.

(b)           Assignment of Sale Proceeds; Payment of Tax
Withholding by Check.  Subject
to compliance with applicable law and the Company’s Insider Trading Policy, the
Participant shall satisfy the Participating Company’s tax withholding obligations
in accordance with procedures established by the Company providing for delivery
by the Participant to the Company or a broker approved by the Company of
properly executed instructions, in a form approved by the Company, providing
for the assignment to the Company of the proceeds of a sale with respect to
some or all of the shares becoming Vested Shares on a Vesting Date as provided
in the Grant Notice.  Notwithstanding the
foregoing, the Participant may elect to pay by check the amount of the
Participating Company’s tax withholding obligations arising on any Vesting Date
by delivering written notice of such election to the Company on a form
specified by the Company for this purpose at least thirty (30) days (or such
other period established by the Company) prior to such Vesting Date.  By making such election, the Participant
agrees to deliver a check for the full amount of the required tax withholding
to the applicable Participating Company on or before the third business day
following the Vesting Date.  If the
Participant elects to pay the required tax withholding by check but fails to
make such payment as required by the preceding sentence, the Company is hereby
authorized at its discretion, to satisfy the tax withholding obligations
through any other means authorized by this Section 7, including by effecting a
sale of some or all of the shares becoming Vested Shares on the Vesting Date,
or withholding from payroll and any other amounts payable to the Participant

7.2                 Election Under
Section 83(b) of the Code.

(a)           The Participant
understands that Section 83 of the Code taxes as ordinary income the
difference between the amount paid for the Shares, if anything, and the fair
market value of the Shares as of the date on which the Shares are “substantially
vested,” within the meaning of Section 83. 
In this context, “substantially vested” means that the right of the
Company to reacquire the Shares pursuant to the Company Reacquisition Right has
lapsed.  The 

 5
 

Participant
understands that he or she may elect to have his or her taxable income
determined at the time he or she acquires the Shares rather than when and as
the Company Reacquisition Right lapses by filing an election under
Section 83(b) of the Code with the Internal Revenue Service no later than
thirty (30) days after the date of acquisition of the Shares.  The Participant understands that failure to
make a timely filing under Section 83(b) will result in his or her
recognition of ordinary income, as the Company Reacquisition Right lapses, on
the difference between the purchase price, if anything, and the fair market
value of the Shares at the time such restrictions lapse.  The Participant further understands, however,
that if Shares with respect to which an election under Section 83(b) has
been made are forfeited to the Company pursuant to its Company Reacquisition
Right, such forfeiture will be treated as a sale on which there is realized a
loss equal to the excess (if any) of the amount paid (if any) by the
Participant for the forfeited Shares over the amount realized (if any) upon
their forfeiture.  If the Participant has
paid nothing for the forfeited Shares and has received no payment upon their
forfeiture, the Participant understands that he or she will be unable to
recognize any loss on the forfeiture of the Shares even though the Participant
incurred a tax liability by making an election under Section 83(b).

(b)           The Participant
understands that he or she should consult with his or her tax advisor regarding
the advisability of filing with the Internal Revenue Service an election under
Section 83(b) of the Code, which must be filed no later than thirty (30)
days after the date of the acquisition of the Shares pursuant to this
Agreement.  Failure to file an election
under Section 83(b), if appropriate, may result in adverse tax
consequences to the Participant.  The
Participant acknowledges that he or she has been advised to consult with a tax
advisor regarding the tax consequences to the Participant of the acquisition of
Shares hereunder.  ANY ELECTION UNDER
SECTION 83(b) THE PARTICIPANT WISHES TO MAKE MUST BE FILED NO LATER THAN
30 DAYS AFTER THE DATE ON WHICH THE PARTICIPANT ACQUIRES THE SHARES.  THIS TIME PERIOD CANNOT BE EXTENDED.  THE PARTICIPANT ACKNOWLEDGES THAT TIMELY
FILING OF A SECTION 83(b) ELECTION IS THE PARTICIPANT’S SOLE
RESPONSIBILITY, EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS
REPRESENTATIVE TO FILE SUCH ELECTION ON HIS OR HER BEHALF.

(c)           The Participant will
notify the Company in writing if the Participant files an election pursuant to
Section 83(b) of the Code.  The
Company intends, in the event it does not receive from the Participant evidence
of such filing, to claim a tax deduction for any amount which would otherwise
be taxable to the Participant in the absence of such an election.

8.             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 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 

 6
 

to the Award, in order to prevent dilution or
enlargement of the Participant’s rights under the Award.  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.”  Any fractional share resulting from an
adjustment pursuant to this Section shall be rounded down to the nearest whole
number.  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 capital structure of the Company or
distributions as it deems appropriate. 
Such adjustments shall be determined by the Committee, and its determination
shall be final, binding and conclusive.

9.             Rights as a Stockholder,
Director, Employee or Consultant.

The Participant shall
have no rights as a stockholder with respect to any Shares subject to the Award
until the date of the issuance of a certificate for 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 certificate is issued, except as
provided in Section 8.  Subject the
provisions of this Agreement, the Participant shall exercise all rights and
privileges of a stockholder of the Company with respect to Shares deposited in
the Escrow pursuant to Section 6. 
If the Participant is an Employee, the Participant understands and
acknowledges that, except as otherwise provided in a separate, written
employment agreement between a Participating Company and the Participant, the
Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon
the Participant any right to continue in the Service of a Participating Company
or interfere in any way with any right of the Participating Company Group to
terminate the Participant’s Service at any time.

10.           Legends.

The Company may at
any time place legends referencing the Company Reacquisition Right and any
applicable federal, state or foreign securities law restrictions on all
certificates representing the Shares. 
The Participant shall, at the request of the Company, promptly present
to the Company any and all certificates representing the Shares in the
possession of the Participant in order to carry out the provisions of this
Section.  Unless otherwise specified by
the Company, legends placed on such certificates may include, but shall not be
limited to, the following:

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS SET
FORTH IN AN AGREEMENT BETWEEN THIS CORPORATION AND THE REGISTERED HOLDER, OR
HIS PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE
OF THIS CORPORATION.”

11.           Transfers in Violation of
Agreement.

No Shares may be sold,
exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed
of, including by operation of law, in any manner which violates any of the
provisions of this Agreement and, except pursuant to an Ownership Change Event,
until the date on which such shares become Vested Shares, and any such
attempted disposition shall be void. 

 7
 

The Company shall not be required (a) to transfer
on its books any Shares which will have been transferred in violation of any of
the provisions set forth in this Agreement or (b) to treat as owner of
such Shares or to accord the right to vote as such owner or to pay dividends to
any transferee to whom such Shares will have been so transferred.  In order
to enforce its rights under this Section, the Company shall be authorized to
give a stop transfer instruction with respect to the Shares to the Company’s
transfer agent.

12.           Miscellaneous Provisions.

12.1         Termination or Amendment.  The Committee may terminate or amend the Plan
or this Agreement at any time; provided, however, that no such termination or
amendment may adversely affect the Participant’s rights under this Agreement
without the consent of the Participant unless such termination or amendment is
necessary to comply with applicable law or government regulation.  No amendment or addition to this Agreement
shall be effective unless in writing.

12.2         Nontransferability of the Award.  The right to acquire Shares pursuant to the
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 the Award shall be
exercisable during the Participant’s lifetime only by the Participant or the
Participant’s guardian or legal representative.

12.3               Further Instruments.  The
parties hereto agree to execute such further instruments and to take such
further action as may reasonably be necessary to carry out the intent of this
Agreement.

12.4               Binding Effect.  This Agreement shall inure to the benefit of
the successors and assigns of the Company and, subject to the restrictions on
transfer set forth herein, be binding upon the Participant and the Participant’s
heirs, executors, administrators, successors and assigns.

12.5               Delivery of Documents and Notices.  Any document relating to participation in the
Plan or any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given (except to the extent that this Agreement
provides for effectiveness only upon actual receipt of such notice) upon
personal delivery, electronic delivery at the e-mail address, if any, provided
for the Participant by a Participating Company, or upon deposit in the U.S.
Post Office or foreign postal service, by registered or certified mail, or with
a nationally recognized overnight courier service, with postage and fees
prepaid, addressed to the other party at the address shown below that party’s
signature to the Grant Notice or at such other address as such party may
designate in writing from time to time to the other party.

(a)           Description of Electronic Delivery.  The Plan documents, which may
include but do not necessarily include: the Plan, the Grant Notice, this
Agreement, the Plan Prospectus, and any reports of the Company provided
generally to the Company’s stockholders, may be delivered to the Participant
electronically.  In addition, the parties
may deliver electronically any notices called for in connection with the Escrow
and the Participant may 

 8
 

deliver electronically the Grant Notice to the Company or to such third
party involved in administering the Plan as the Company may designate from time
to time.  Such means of electronic
delivery may include but do not necessarily include the delivery of a link to a
Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the document via e-mail or such other
means of electronic delivery specified by the Company.

(b)           Consent to Electronic Delivery.  The
Participant acknowledges that the Participant has read Section 12.5(a) of
this Agreement and consents to the electronic delivery of the Plan documents,
the Grant Notice and notices in connection with the Escrow, as described in
Section 12.5(a).  The Participant acknowledges
that he or she may receive from the Company a paper copy of any documents
delivered electronically at no cost to the Participant by contacting the
Company by telephone or in writing.  The
Participant further acknowledges that the Participant will be provided with a
paper copy of any documents if the attempted electronic delivery of such
documents fails.  Similarly, the
Participant understands that the
Participant must provide the Company or any designated third party
administrator with a paper copy of any documents if the attempted electronic delivery
of such documents fails.  The Participant
may revoke his or her consent to the electronic delivery of documents described
in Section 12.5(a) or may change the electronic mail address to which such
documents are to be delivered (if Participant has provided an electronic mail
address) at any time by notifying the Company of such revoked consent or
revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he
or she is not required to consent to electronic delivery of documents described
in Section 12.5(a).

12.6               Integrated Agreement.  The Grant Notice, this Agreement and the Plan
together with any employment, service or other agreement between the
Participant and a Participating Company referring to the Award shall constitute
the entire understanding and agreement of the Participant and the Participating
Company Group with respect to the subject matter contained herein or therein
and supersedes any prior agreements, understandings, restrictions, representations,
or warranties among the Participant and the Participating Company Group with
respect to such subject matter other than those as set forth or provided for
herein or therein.  To the extent
contemplated herein or therein, the provisions of the Grant Notice and the
Agreement shall survive any settlement of the Award and shall remain in full
force and effect.

12.7             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 and this Agreement 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.

 9
 

12.8             Applicable Law.  This Agreement shall be governed by the laws
of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within the State
of California.

12.9               Counterparts.  The Grant Notice may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]