Document:

Exhibit 10.3

 

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.

 

Amendment N°8

TO

CONTRACT N° GINC-C-06-0300

 

By and Between

 

GLOBALSTAR, INC.

 

and

 

THALES ALENIA SPACE

FRANCE

 

 

This Amendment N°8 to the Contract referenced GINC-C-06-0300 is made
between Thales Alenia Space France,
a Company organised and existing under the laws of France, having its registered office
at 26 avenue Jean François Champollion 31100 Toulouse – FRANCE (“Contractor”) and Globalstar, Inc., a Delaware corporation with offices at 461 South
Milpitas Blvd., Milpitas, California 95035, U.S.A. (“Purchaser”).

 

The Purchaser and the Contractor being hereinafter
individually referred to as a “Party” or collectively as the “Parties”.

 

RECITALS

 

Whereas, the Parties recognize the continuing
progress made by Purchaser towards completion of an Export Credit Facility for the purpose of financing a portion of this
Contract, which loan will be backed by COFACE ; and

 

Whereas, the Parties acknowledge that certain actions
were not completed by the Purchaser in meeting certain conditions set forth in
Amendment 7 dated March 5th 2009 ; and

 

Whereas, while the conditions precedent to the
coming into force of Step 2 as stipulated in Amendment 7 has not been
fulfilled, the Parties agree to consider Step 2 has entered into force on March 13th,
2009 ; and

 

Whereas, as a result, the
Parties wish to modify certain conditions of Amendment 7 ; and

 

NOW THEREFORE, in consideration of
the mutual covenants and agreements herein contained, and intending to be
legally bound hereby, the Parties hereby modify the Contract as set forth
herein:

 

1 - The Parties
agree that the conditions set forth in Section C of Amendment 6 have not
been met, and the Parties agree to extend the Change Notice implementing a
production schedule adjustment to include re-prioritization and re-schedule of
the Work until June 5th 2009.

 

2 - As a result of the
implementation of the production schedule adjustment set forth in Clause
1 above,
the following shall apply :

 

(a)     Section B(ii) and Section D
of Amendment 6 as modified by Amendment 7 are replaced by the following :

 

“The Purchaser shall
pay to the Contractor an additional amount of TWO MILLION US Dollars
($2,000,000) to be made as follows:

 

(i)         FIVE HUNDRED THOUSAND US
Dollars ($500,000) on April 30th, 2009 ; and

 

(ii)        FIVE HUNDRED THOUSAND US
Dollars ($500,000) on May 25th, 2009 ,

 

1

 

(iii)       ONE MILLION US Dollars
($1,000,000) on the earliest of June 5th, 2009 or the date on which the Closing of the
Export Credit Facility backed by COFACE for the financing of Phase 1 and Phase
2 (including Long Lead Items for SIX (6) Spacecraft from Phase 3) has
occurred and all conditions precedent have been fulfilled for the financing to
be operative as confirmed by BNP Paribas bank.

 

In case the Purchaser fails to pay to the Contractor
any of the above amounts (i), (ii) and (iii) on the date
referred to above (“the Due Date”), then the following shall apply :

 

·                  the Contractor shall have the right to Stop
Work according to the provisions of Article 22(B) of the Contract on
the Day following the Due Date (“the Contractor Stop
Work Date”) ; and

 

·                  if the payment failure has
not been cured by the Purchaser THIRTY (30) Days after the Contractor Stop Work
Date, then the Contractor shall be entitled to immediately terminate the
Contract according to the conditions referred to in Article 22(B)(iv) of
the Contract. In such case, the TWO MILLION US Dollars ($2,000,000) shall be due and payable
in accordance with the termination costs referred to in Article 22(B)(iv) of
the Contract, less any amount paid to the Contractor under (i), (ii) and (iii) above.”

 

(b)     Section B(i) of Amendment 6 as
amended by Amendment 7 is replaced by the following:

 

“Schedule impacts of
this change notice shall be as follows:

 

·                  The Contractual Required Delivery Dates of Spacecraft
from Phase 1 and 2 shall be postponed by [*] Days plus ONE (1) additional
Days for each Day starting from April 2nd,
2009 until the date of return to nominal performance of the Work.

 

·                  The PSR ED2 Objective Dates of Spacecraft from Phase 1
and 2 shall be postponed by [*] Days plus ONE (1) additional Days for each
Day starting from April 2nd, 2009 until the date of
return to nominal performance of the Work.

 

·                  The Launch ED2 Objective Dates of Spacecraft from
Phase 1 and 2 shall be postponed by [*] Days, plus ONE (1) additional Days
for each Day starting from April 2nd,
2009 until the date of return to nominal performance of the Work.

 

For clarification, the “Contractual Required
Delivery Dates”, “PSR ED2 Objective Dates” and “Launch ED2 Objective Dates”
refers to the dates in the table as set forth in Amendment 5 to the Contract.

 

3 - If, on or before June 5th, 2009,

 

(i) the Contractor
has received on its bank account the total amount of TWO MILLION US Dollars
($2,000,000) referred to in Clause 2(a) above ; and

 

(ii) the
Closing of the Export Credit Facility backed by COFACE for the financing of
Phase 1 and Phase 2 (including Long Lead Items for six (6) Spacecraft from
Phase 3) has occurred and all conditions precedent have been fulfilled for the
financing to be operative as confirmed by BNP Paribas bank,

 

2

 

then the Contractor shall return to nominal
performance of the Work within SEVEN (7) Days from the date on which the
conditions (i) and (ii) above have been fulfilled, subject to the
provisions of Clause 6 hereafter.

 

4                               If
on June 5th, 2009,

 

(i) the Contractor
has not received the total amount of TWO MILLION US Dollars ($2,000,000)
referred to in Clause 2(a) above ; or

 

(ii) the
Closing of the Export Credit Facility backed by COFACE for the financing of
Phase 1 and Phase 2 (including Long Lead Items for six (6) Spacecraft from
Phase 3) has not occurred ; or

 

(iii) the
Closing of the Export Credit Facility backed by COFACE for the financing of
Phase 1 and Phase 2 (including Long Lead Items for six (6) Spacecraft from
Phase 3) has occurred but all conditions precedent have not been fulfilled for
the financing to be operative as confirmed by BNP Paribas bank,

 

then
the following shall apply, in addition to the provisions of Clause 6 hereafter
:

 

·                  the Contractor
shall not return to nominal performance of the Work ; and

·                  the Contractor shall have the right to Stop
Work according to the provisions of Article 22(B) of the Contract on June 5th, 2009 ;
and

·                  if the conditions referred
to in Clause 3(i) and (ii) above have not been fulfilled on July 5th,
2009, then the Contractor shall be entitled to immediately terminate the
Contract according to the conditions referred to in Article 22(B)(iv) of
the Contract. In such case, the Two Million US Dollars ($2,000,000) shall be due and
payable in accordance with the termination costs referred to in Article 22(B)(iv) of
the Contract, less any amount paid to the Contractor under Clause 2 (i), (ii) and (iii) above.”; and

·                  Further, the Parties mutually recognize the Contractor
has the right to terminate its Subcontracts under the Contract as early as June 6th, 2009.

 

5 - Article E of Amendment
6 as modified by Amendment 7 is replaced by the following :

 

“The conditions referred
to in Document Ref G-000000813 dated January 20th,
2009 (Annex 1 to Amendment 6), are open for acceptance by the Purchaser within
ONE (1) month after the date of return to nominal performance of the Work
and subject to an immediate initial down payment by Purchaser of TWO HUNDRED
FIFTY THOUSAND Euros (€250,000). Prior to the issuance of an ATP, the Parties
agree to review and optimize the schedule of activities in order to target the
earliest possible launch date(s).”

 

6 - Upon signature of this
Amendment 8, Purchaser and Contractor agree that Contractor shall be entitled
to immediately draw-down from the Escrow Account an amount of [*] as partial payment of
Invoice N° 1001102144 corresponding to Milestone Event N°9c, while leaving the
minimum balance (to Be Confirmed) required to keep the Escrow Account open.

 

3

 

The remaining delta amount of [*] corresponding
to Milestone Event N°9c shall be paid as a portion of initial down payment of
the revised Payment Plan to be issued upon signature of the restated contract
within the frame of the Closing of the Export Credit Facility (“Restated
Contract”).

 

7 - This
Amendment 8 shall enter into force with a retroactive effect as of April 1st, 2009 when the following
conditions have been fulfilled (i) signature of this Amendment 8 by the
Parties and (ii) receipt by the Contractor on its bank account of the
amount of [*]
drawn down from the Escrow Account according to Clause 6 above.

 

8 - All of the
terms, covenants and conditions of the Contract as may already have been
amended shall remain in full force and effect except to the extent the same
have been expressly amended or modified by the terms of this Amendment N°8.

 

9 - All
capitalized terms not otherwise defined in this Amendment N°8 shall have the
meanings for such terms as set forth in the Contract.

 

4

 

EXECUTION

 

In witness whereof, the Parties have duly executed this
Contract Amendment.

 

	
  Globalstar, Inc.

  	
   

  	
  Thales
  Alenia Space France

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Anthony J. Navarra

  	
   

  	
  By: 

  	
  /s/ Blaise Jaeger

  
	
   

  	
   

  	
   

  
	
  Name: 

  	
   Anthony J. Navarra

  	
   

  	
  Name:  

  	
  Blaise Jaeger

  
	
  Title:  

  	
  President

  	
   

  	
  Title:  

  	
  EVP & General
  Manager, Telecom

  
	
  Date:

  	
  9
  April 2009

  	
   

  	
  Date:

  	
  April 9,
  2009

  

 

5Exhibit 10.1

 

AGREEMENT GOVERNING EXTENSIONS OF CREDIT

 

This Agreement, dated April 22,
2009, is between Investors Community Bank (the “Bank”) and R. B. A. Inc. (the “Borrower”).

 

RECITALS

 

A.            Bank and Borrower are parties to certain
extensions of credit, which extensions of credit are evidenced by loan documentation
existing on the date hereof and may be evidenced by additional loan documentation
executed by one or both parties from time to time; and

 

B.            Bank and Borrower desire to enter into
this Agreement relating to all such loan documentation.

 

AGREEMENT

 

1.             Collateral.

 

  i.              Debt Documents; Obligations. Bank and Borrower
have executed and anticipate that from time to time they may execute loan
agreements, notes, guaranties and other documentation evidencing a debt or
obligation of Borrower to Bank from time to time. All documents at any time
executed by Borrower and evidencing a debt or obligation of Borrower to Bank
are referred to herein as “Debt Documents.” All obligations of Borrower to Bank
under Debt Documents and all other obligations of Borrower to Bank from time to
time are referred to herein as “Obligations.” Obligations include but are not
limited to obligations to repay loans, debts occurring by reason of overdrafts
of checking accounts, obligations to take action such as purchasing insurance
or maintaining property, and all other obligations of Borrower to Bank, including
those obligations that exist on the date hereof and those obligations that may
be incurred on or after the date hereof.

The
following existing documents are Debt Documents:

Four  (4)  Commercial  Promissory  Notes  and  Commercial  Loan  Agreements  dated  4/7/08,  Guaranty  pledged  by  Broadwind  Energy,  Inc.  dated  4/7/08,  Guaranty  pledged  by  Tower  Tech  Systems  Inc.  dated  4/7/08.

 

 ii.              Security Documents; Collateral. Borrower has granted to Bank
certain collateral, and Bank and Borrower anticipate that Borrower may grant to
Bank additional collateral from time to time. All documents at any time
granting to Bank a lien or security interest in any property are referred to
herein as “Security Documents.” A document may be both a Debt Document and a
Security Document. All of Borrower’s property in which Bank has a lien or
security interest on the date hereof, and all property in which Bank may have a
lien or security interest in the future, including but not limited to real
estate and personal property, is referred to herein as “Collateral.”

The
following existing documents are Security Documents:

Mortgage dated 3/21/08
and Commercial Security Agreement dated 10/4/07.

 

iii.              Cross Collateralization. All Collateral shall at all times be security for
all Obligations. If Borrower grants Bank a lien or security interest at any
time, such lien or security interest shall continue, and the Borrower’s property
shall continue to be collateral for all Obligations, until all Obligations are
paid in full and Bank and Borrower enter into a termination or release of the
applicable Security Document.

 

2.             Cross Default. Any time there is a default under any Debt Document,
any Security Document or this Agreement, such default shall be a default under
all Debt Documents, all Security Documents and this Agreement.

 

3.             Covenants and Agreements. In addition to all agreements contained
in the Debt Documents and Security Documents, Borrower agrees to comply with
all of the following:

 

  i.            Minimum Debt service coverage ratio of 1.25:1 tested
quarterly using trailing 12 month financials, commencing as of 3/31/2009 (superseding
any such coverage ratio set forth in any other document previously executed by
Bank and Borrower).

The coverage ratio is
defined as:

 

Net Profit Before
Taxes + Depreciation +Amortization + Impairment of Goodwill + Interest

Principal Payments and
Interest Payments

 

 ii.            Minimum Tangible Net Worth (excluding goodwill and
other intangible assets) covenant to be tested quarterly as follows:

 

iii.

 

	
  3/31/2009

  	
   

  	
  $

  	
  1.4
  million

  
	
  6/30/2009

  	
   

  	
  $

  	
  1.6
  million

  
	
  9/30/2009

  	
   

  	
  $

  	
  1.8
  million

  
	
  12/31/2009

  	
   

  	
  $

  	
  2.0
  million

  

 

 iv.        Primary Depository account(s) to be maintained at
Investors Community Bank.

  v.        Existing monthly borrowing base agreement to remain
the same.

 vi.        No additional loans or leases to be entered into
without Investors Community Bank’s prior approval.

vii.        Audited financial statements by Grant
Thornton to be provided to Investors Community Bank by 3/31/2009. Financial
performance of Broadwind Energy, Inc. and the two subsidiaries we finance
(Tower Tech Systems, Inc., and R. B.
A., Inc.) must be “materially close” (minimum fye 2008 profitability for
Tower Tech Systems, Inc. of $3,600,000: minimum fye 2008 profitability for
R. B. A., Inc. of $150,000:
(excluding the one-time impairment charge) and a maximum fye 2008 loss for
Broadwind Energy, Inc. of $27,000,000). These profitability numbers are
based on 80% of the profitability / (loss) as reflected in the consolidated
financial statements provided Investors Community Bank. The covenant violation
applies if any, or all, of the above performance measurements are not attained.

 

1

 

Annually,
Borrower will provide to Lender Borrower’s financial statements, tax returns, or
those prepared by independent accountants within 90 days after the close of
each fiscal year. Any annual financial statements that Borrower provides will
be:

 

q audited statements. q reviewed statements. q
compiled statements.

 

x Borrower will provide Lender with
interim financial reports on a quarterly basis, and within 45 days after the
close of this business period. Interim financial statements will be:

q audited q reviewed
x compiled statements.

 

4.               This Agreement to Control. The Bank and Borrower intend for this
Agreement to apply to all transactions between them, and this Agreement shall
continue in effect until the Borrower and Bank enter into a termination
agreement. Even if a particular Security Document ever describes certain
Obligations without describing all Obligations, that Security Document shall
secure all Obligations.

 

5.               Effect of Agreement. This Agreement applies to all
extensions of credit between Bank and Borrower. This Agreement is not an agreement to extend credit. Bank
shall not be obligated under this Agreement to loan money to Borrower or
otherwise extend credit to Borrower.

 

6.               Participants; Assigns; Guarantors; Disclosure.
The Borrower agrees that the Bank may, at its option, sell to one or more other
financial institutions or other parties interests in the Obligations. Bank may,
at Bank’s sole option, disclose to the purchaser of any such interest and to
any guarantor of all or any part of the Obligations financial and other
information concerning the Borrower.

 

7.               Amendment. This Agreement may be amended only by a writing
signed by the party to be bound thereby.

 

8.               Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Wisconsin without giving effect to applicable principles
of conflict of laws to the extent that the application of the laws of another
jurisdiction would be required thereby.

 

9.               Counterparts. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument.

 

10.             Severability. In case any provision in this Agreement
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.

 

BORROWER:

R. B. A. Inc.

 

a Corporation

 

	
  By:

  	
  /s/ Jeffrey G. Jandry

  	
   

  
	
  Jeffrey G. Jandry

  
	
  Title: Treasurer and
  Controller

  

 

 

BANK:

INVESTORS COMMUNITY BANK

 

 

	
  By:

  	
  /s/ Robert Boerger

  	
   

  
	
  Robert Boerger

  
	
  Title: Sr. Commercial
  Lender

  

 

2

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