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                                                                    EXHIBIT 10.1

                            THE AMENDED AND RESTATED
                         1996 EQUITY PARTICIPATION PLAN
                                       OF
                                  VIASAT, INC.

        ViaSat, Inc., a Delaware corporation, has adopted The 1996 Equity
Participation Plan of ViaSat, Inc. (the "Plan"), effective October 24, 1996, for
the benefit of its eligible employees, consultants and directors. The Plan
consists of two plans, one for the benefit of key Employees (as such term is
defined below) and consultants and one for the benefit of Independent Directors
(as such term is defined below).

        The purposes of this Plan are as follows:

                (1) To provide an additional incentive for directors, key
        Employees and consultants to further the growth, development and
        financial success of the Company by personally benefiting through the
        ownership of Company stock and/or rights which recognize such growth,
        development and financial success.

                (2) To enable the Company to obtain and retain the services of
        directors, key Employees and consultants considered essential to the
        long range success of the Company by offering them an opportunity to own
        stock in the Company and/or rights which will reflect the growth,
        development and financial success of the Company.

                                    ARTICLE I

                                   DEFINITIONS

        1.1 General. Wherever the following terms are used in this Plan they
shall have the meanings specified below, unless the context clearly indicates
otherwise.

        1.2 Award Limit. "Award Limit" shall mean Five Hundred Thousand
(500,000) shares of Common Stock.

        1.3 Board. "Board" shall mean the Board of Directors of the Company.

        1.4 Change in Control. "Change in Control" shall mean a change in
ownership or control of the Company effected through either of the following
transactions:

                (a) any person or related group of persons (other than the
        Company or a person that directly or indirectly controls, is controlled
        by, or is under common control with, the Company) directly or indirectly
        acquires beneficial ownership (within the meaning of Rule 13d-3 under
        the Exchange Act) of securities possessing more than fifty percent (50%)
        of the total combined voting power of the Company's outstanding
        securities pursuant to a tender or exchange offer made directly to the
        Company's stockholders which the Board does not recommend such
        stockholders to accept; or

                (b) there is a change in the composition of the Board over a
        period of thirty-six (36) consecutive months (or less) such that a
        majority of the Board members (rounded up to the nearest whole number)
        ceases, by reason of one or more proxy contests for the election of
        Board members, to be comprised of individuals who either (i) have been
        Board members continuously since the beginning of such period or (ii)
        have been elected or nominated for election as Board members during such
        period by at least a

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        majority of the Board members described in clause (i) who were still in
        office at the time such election or nomination was approved by the
        Board.

        1.5 Code. "Code" shall mean the Internal Revenue Code of 1986, as
amended.

        1.6 Committee. "Committee" shall mean the Compensation Committee of the
Board, or another committee of the Board, appointed as provided in Section 9.1.

        1.7 Common Stock. "Common Stock" shall mean the common stock of the
Company, par value $0.0001 per share, and any equity security of the Company
issued or authorized to be issued in the future, but excluding any preferred
stock and any warrants, options or other rights to purchase Common Stock. Debt
securities of the Company convertible into Common Stock shall be deemed equity
securities of the Company.

        1.8 Company. "Company" shall mean ViaSat, Inc., a Delaware corporation.

        1.9 Corporate Transaction. "Corporate Transaction" shall mean any of the
following stockholder-approved transactions to which the Company is a party:

                (a) a merger or consolidation in which the Company is not the
        surviving entity, except for a transaction the principal purpose of
        which is to change the State in which the Company is incorporated, form
        a holding company or effect a similar reorganization as to form
        whereupon this Plan and all Options are assumed by the successor entity;

                (b) the sale, transfer, exchange or other disposition of all or
        substantially all of the assets of the Company, in complete liquidation
        or dissolution of the Company in a transaction not covered by the
        exceptions to clause (a), above; or

                (c) any reverse merger in which the Company is the surviving
        entity but in which securities possessing more than fifty percent (50%)
        of the total combined voting power of the Company's outstanding
        securities are transferred or issued to a person or persons different
        from those who held such securities immediately prior to such merger.

        1.10 Deferred Stock. "Deferred Stock" shall mean Common Stock awarded
under Article VII of this Plan.

        1.11 Director. "Director" shall mean a member of the Board.

        1.12 Dividend Equivalent. "Dividend Equivalent" shall mean a right to
receive the equivalent value (in cash or Common Stock) of dividends paid on
Common Stock, awarded under Article VII of this Plan.

        1.13 Employee. "Employee" shall mean any officer or other employee (as
defined in accordance with Section 3401(c) of the Code) of the Company, or of
any corporation which is a Subsidiary.

        1.14 Exchange Act. "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended.

        1.15 Fair Market Value. "Fair Market Value" of a share of Common Stock
as of a given date shall be (i) the closing price of a share of Common Stock on
the principal exchange on which shares of Common Stock are then trading, if any
(or as reported on any composite index which includes such principal exchange),
on the trading day previous to such date, or if shares were not traded on the
trading day previous to such date, then on the next preceding date on which a
trade occurred, or (ii) if Common Stock

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is not traded on an exchange but is quoted on NASDAQ or a successor quotation
system, the mean between the closing representative bid and asked prices for the
Common Stock on the trading day previous to such date as reported by NASDAQ or
such successor quotation system; or (iii) if Common Stock is not publicly traded
on an exchange and not quoted on NASDAQ or a successor quotation system, the
Fair Market Value of a share of Common Stock as established by the Committee (or
the Board, in the case of Options granted to Independent Directors) acting in
good faith.

        1.16 Grantee. "Grantee" shall mean an Employee or consultant granted a
Performance Award, Dividend Equivalent, Stock Payment or Stock Appreciation
Right, or an award of Deferred Stock, under this Plan.

        1.17 Incentive Stock Option. "Incentive Stock Option" shall mean an
option which conforms to the applicable provisions of Section 422 of the Code
and which is designated as an Incentive Stock Option by the Committee.

        1.18 Independent Director. "Independent Director" shall mean a member of
the Board who is not an Employee of the Company.

        1.19 Non-Qualified Stock Option. "Non-Qualified Stock Option" shall mean
an Option which is not designated as an Incentive Stock Option by the Committee.

        1.20 Option. "Option" shall mean a stock option granted under Article
III of this Plan. An Option granted under this Plan shall, as determined by the
Committee, be either a Non-Qualified Stock Option or an Incentive Stock Option;
provided, however, that Options granted to Independent Directors and consultants
shall be Non-Qualified Stock Options.

        1.21 Optionee. "Optionee" shall mean an Employee, consultant or
Independent Director granted an Option under this Plan.

        1.22 Performance Award. "Performance Award" shall mean a cash bonus,
stock bonus or other performance or incentive award that is paid in cash, Common
Stock or a combination of both, awarded under Article VII of this Plan.

        1.23 Plan. "Plan" shall mean The 1996 Equity Participation Plan of
ViaSat, Inc.

        1.24 QDRO. "QDRO" shall mean a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended, or the rules thereunder.

        1.25 Restricted Stock. "Restricted Stock" shall mean Common Stock
awarded under Article VI of this Plan.

        1.26 Restricted Stockholder. "Restricted Stockholder" shall mean an
Employee or consultant granted an award of Restricted Stock under Article VI of
this Plan.

        1.27 Rule 16b-3. "Rule 16b-3" shall mean that certain Rule 16b-3 under
the Exchange Act, as such Rule may be amended from time to time.

        1.28 Stock Appreciation Right. "Stock Appreciation Right" shall mean a
stock appreciation right granted under Article VIII of this Plan.

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        1.29 Stock Payment. "Stock Payment" shall mean (i) a payment in the form
of shares of Common Stock, or (ii) an option or other right to purchase shares
of Common Stock, as part of a deferred compensation arrangement, made in lieu of
all or any portion of the compensation, including without limitation, salary,
bonuses and commissions, that would otherwise become payable to a key Employee
or consultant in cash, awarded under Article VII of this Plan.

        1.30 Subsidiary. "Subsidiary" shall mean any corporation in an unbroken
chain of corporations beginning with the Company if each of the corporations
other than the last corporation in the unbroken chain then owns stock possessing
50 percent or more of the total combined voting power of all classes of stock in
one of the other corporations in such chain.

        1.31 Termination of Consultancy. "Termination of Consultancy" shall mean
the time when the engagement of an Optionee, Grantee or Restricted Stockholder
as a consultant to the Company or a Subsidiary is terminated for any reason,
with or without cause, including, but not by way of limitation, by resignation,
discharge, death or retirement; but excluding terminations where there is a
simultaneous commencement of employment with the Company or any Subsidiary. The
Committee, in its absolute discretion, shall determine the effect of all matters
and questions relating to Termination of Consultancy, including, but not by way
of limitation, the question of whether a Termination of Consultancy resulted
from a discharge for good cause, and all questions of whether particular leaves
of absence constitute Terminations of Consultancy. Notwithstanding any other
provision of this Plan, the Company or any Subsidiary has an absolute and
unrestricted right to terminate a consultant's service at any time for any
reason whatsoever, with or without cause, except to the extent expressly
provided otherwise in writing.

        1.32 Termination of Directorship. "Termination of Directorship" shall
mean the time when an Optionee who is an Independent Director ceases to be a
Director for any reason, including, but not by way of limitation, a termination
by resignation, failure to be elected, death or retirement. The Board, in its
sole and absolute discretion, shall determine the effect of all matters and
questions relating to Termination of Directorship with respect to Independent
Directors.

        1.33 Termination of Employment. "Termination of Employment" shall mean
the time when the employee-employer relationship between an Optionee, Grantee or
Restricted Stockholder and the Company or any Subsidiary is terminated for any
reason, with or without cause, including, but not by way of limitation, a
termination by resignation, discharge, death, disability or retirement; but
excluding (i) terminations where there is a simultaneous reemployment or
continuing employment of an Optionee, Grantee or Restricted Stockholder by the
Company or any Subsidiary, (ii) at the discretion of the Committee, terminations
which result in a temporary severance of the employee-employer relationship, and
(iii) at the discretion of the Committee, terminations which are followed by the
simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former employee. The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to Termination
of Employment, including, but not by way of limitation, the question of whether
a Termination of Employment resulted from a discharge for good cause, and all
questions of whether particular leaves of absence constitute Terminations of
Employment; provided, however, that, unless otherwise determined by the
Committee in its discretion, a leave of absence, change in status from an
employee to an independent contractor or other change in the employee-employer
relationship shall constitute a Termination of Employment if, and to the extent
that, such leave of absence, change in status or other change interrupts
employment for the purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section. Notwithstanding
any other provision of this Plan, the Company or any Subsidiary has an absolute
and unrestricted right to terminate an Employee's employment at any time for any
reason whatsoever, with or without cause, except to the extent expressly
provided otherwise in writing.

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                                   ARTICLE II

                             SHARES SUBJECT TO PLAN

        2.1 Shares Subject to Plan.

        (a) The shares of stock subject to Options, awards of Restricted Stock,
Performance Awards, Dividend Equivalents, awards of Deferred Stock, Stock
Payments or Stock Appreciation Rights shall be Common Stock, initially shares of
the Company's Common Stock, par value $0.0001 per share. The aggregate number of
such shares which may be issued upon exercise of such options or rights or upon
any such awards under the Plan shall not exceed six-million one hundred thousand
(6,100,000). The shares of Common Stock issuable upon exercise of such options
or rights or upon any such awards may be either previously authorized but
unissued shares or treasury shares.

        (b) The maximum number of shares which may be subject to Options or
Stock Appreciation Rights granted under the Plan to any individual in any fiscal
year shall not exceed the Award Limit. To the extent required by Section 162(m)
of the Code, shares subject to Options which are canceled continue to be counted
against the Award Limit and if, after grant of an Option, the price of shares
subject to such Option is reduced, the transaction is treated as a cancellation
of the Option and a grant of a new Option and both the Option deemed to be
canceled and the Option deemed to be granted are counted against the Award
Limit. Furthermore, to the extent required by Section 162(m) of the Code, if,
after grant of a Stock Appreciation Right, the base amount on which stock
appreciation is calculated is reduced to reflect a reduction in the Fair Market
Value of the Company's Common Stock, the transaction is treated as a
cancellation of the Stock Appreciation Right and a grant of a new Stock
Appreciation Right and both the Stock Appreciation Right deemed to be canceled
and the Stock Appreciation Right deemed to be granted are counted against the
Award Limit.

        2.2 Add-back of Options and Other Rights. If any Option, or other right
to acquire shares of Common Stock under any other award under this Plan, expires
or is canceled without having been fully exercised, or is exercised in whole or
in part for cash as permitted by this Plan, the number of shares subject to such
Option or other right but as to which such Option or other right was not
exercised prior to its expiration, cancellation or exercise may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Furthermore, any shares subject to Options or other awards which are
adjusted pursuant to Section 10.3 and become exercisable with respect to shares
of stock of another corporation shall be considered canceled and may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Shares of Common Stock which are delivered by the Optionee or Grantee or
withheld by the Company upon the exercise of any Option or other award under
this Plan, in payment of the exercise price thereof, may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. If any
share of Restricted Stock is forfeited by the Grantee or repurchased by the
Company pursuant to Section 6.6 hereof, such share may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1.
Notwithstanding the provisions of this Section 2.2, no shares of Common Stock
may again be optioned, granted or awarded if such action would cause an
Incentive Stock Option to fail to qualify as an incentive stock option under
Section 422 of the Code.

                                   ARTICLE III

                               GRANTING OF OPTIONS

        3.1 Eligibility. Any Employee or consultant selected by the Committee
pursuant to Section 3.4(a)(i) shall be eligible to be granted an Option. Each
Independent Director of the Company shall be eligible to be granted Options at
the times and in the manner set forth in Section 3.4(d).

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        3.2 Disqualification for Stock Ownership. No person may be granted an
Incentive Stock Option under this Plan if such person, at the time the Incentive
Stock Option is granted, owns stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any
then existing Subsidiary or parent corporation (within the meaning of Section
422 of the Code) unless such Incentive Stock Option conforms to the applicable
provisions of Section 422 of the Code.

        3.3 Qualification of Incentive Stock Options. No Incentive Stock Option
shall be granted to any person who is not an Employee.

        3.4 Granting of Options

        (a) The Committee shall from time to time, in its absolute discretion,
and subject to applicable limitations of this Plan:

                (i) Determine which Employees are key Employees and select from
        among the key Employees or consultants (including Employees or
        consultants who have previously received Options or other awards under
        this Plan) such of them as in its opinion should be granted Options;

                (ii) Subject to the Award Limit, determine the number of shares
        to be subject to such Options granted to the selected key Employees or
        consultants;

                (iii) Subject to Section 3.3, determine whether such Options are
        to be Incentive Stock Options or Non-Qualified Stock Options and whether
        such Options are to qualify as performance-based compensation as
        described in Section 162(m)(4)(C) of the Code; and

                (iv) Determine the terms and conditions of such Options,
        consistent with this Plan; provided, however, that the terms and
        conditions of Options intended to qualify as performance-based
        compensation as described in Section 162(m)(4)(C) of the Code shall
        include, but not be limited to, such terms and conditions as may be
        necessary to meet the applicable provisions of Section 162(m) of the
        Code.

        (b) Upon the selection of a key Employee or consultant to be granted an
Option, the Committee shall instruct the Secretary of the Company to issue the
Option and may impose such conditions on the grant of the Option as it deems
appropriate. Without limiting the generality of the preceding sentence, the
Committee may, in its discretion and on such terms as it deems appropriate,
require as a condition on the grant of an Option to an Employee or consultant
that the Employee or consultant surrender for cancellation some or all of the
unexercised Options, awards of Restricted Stock or Deferred Stock, Performance
Awards, Stock Appreciation Rights, Dividend Equivalents or Stock Payments or
other rights which have been previously granted to him under this Plan or
otherwise. An Option, the grant of which is conditioned upon such surrender, may
have an option price lower (or higher) than the exercise price of such
surrendered Option or other award, may cover the same (or a lesser or greater)
number of shares as such surrendered Option or other award, may contain such
other terms as the Committee deems appropriate, and shall be exercisable in
accordance with its terms, without regard to the number of shares, price,
exercise period or any other term or condition of such surrendered Option or
other award.

        (c) Any Incentive Stock Option granted under this Plan may be modified
by the Committee to disqualify such option from treatment as an "incentive stock
option" under Section 422 of the Code.

        (d) During the term of the Plan, each person who is an Independent
Director as of the date of the consummation of the initial public offering of
Common Stock automatically shall be granted (i) an Option

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to purchase Fifteen Thousand (15,000) shares of Common Stock (subject to
adjustment as provided in Section 10.3) on the date of such initial public
offering and (ii) an Option to purchase Eight Thousand (8,000) shares of Common
Stock (subject to adjustment as provided in Section 10.3) on the date of each
annual meeting of stockholders after such initial public offering at which
directors are elected to the Board. During the term of the Plan, a person who is
initially elected to the Board after the consummation of the initial public
offering of Common Stock and who is an Independent Director at the time of such
initial election automatically shall be granted (i) an Option to purchase
Fifteen Thousand (15,000) shares of Common Stock (subject to adjustment as
provided in Section 10.3) on the date of such initial election and (ii) an
Option to purchase Eight Thousand (8,000) shares of Common Stock (subject to
adjustment as provided in Section 10.3) on the date of each annual meeting of
stockholders after such initial election at which directors are elected to the
Board. Members of the Board who are employees of the Company who subsequently
retire from the Company and remain on the Board will not receive an initial
Option grant pursuant to clause (i) of the preceding sentence, but to the extent
that they are otherwise eligible, will receive, after retirement from employment
with the Company, Options as described in clause (ii) of the preceding sentence.
All of the foregoing Option grants authorized by this Section 3.4(d) are subject
to stockholder approval of the Plan.

                                   ARTICLE IV

                                TERMS OF OPTIONS

        4.1 Option Agreement. Each Option shall be evidenced by a written Stock
Option Agreement, which shall be executed by the Optionee and an authorized
officer of the Company and which shall contain such terms and conditions as the
Committee (or the Board, in the case of Options granted to Independent
Directors) shall determine, consistent with this Plan. Stock Option Agreements
evidencing Options intended to qualify as performance-based compensation as
described in Section 162(m)(4)(C) of the Code shall contain such terms and
conditions as may be necessary to meet the applicable provisions of Section
162(m) of the Code. Stock Option Agreements evidencing Incentive Stock Options
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 422 of the Code.

        4.2 Option Price. The price per share of the shares subject to each
Option shall be set by the Committee; provided, however, that such price shall
be no less than the par value of a share of Common Stock, unless otherwise
permitted by applicable state law, and (i) in the case of Incentive Stock
Options and Options intended to qualify as performance-based compensation as
described in Section 162(m)(4)(C) of the Code, such price shall not be less than
100% of the Fair Market Value of a share of Common Stock on the date the Option
is granted; (ii) in the case of Incentive Stock Options granted to an individual
then owning (within the meaning of Section 424(d) of the Code) more than 10% of
the total combined voting power of all classes of stock of the Company or any
Subsidiary or parent corporation thereof (within the meaning of Section 422 of
the Code) such price shall not be less than 110% of the Fair Market Value of a
share of Common Stock on the date the Option is granted; and (iii) in the case
of Options granted to Independent Directors, such price shall equal 100% of the
Fair Market Value of a share of Common Stock on the date the Option is granted;
provided, however, that the price of each share subject to each Option granted
to Independent Directors on the date of the initial public offering of Common
Stock shall equal the initial public offering price (net of underwriting
discounts and commissions) per share of Common Stock.

        4.3 Option Term. The term of an Option shall be set by the Committee in
its discretion; provided, however, that, (i) in the case of Options granted to
Independent Directors, the term shall be ten (10) years from the date the Option
is granted, without variation or acceleration hereunder, but subject to Section
5.6, and (ii) in the case of Incentive Stock Options, the term shall not be more
than ten (10) years from the date the Incentive Stock Option is granted, or five
(5) years from such date if the Incentive Stock Option

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is granted to an individual then owning (within the meaning of Section 424(d) of
the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or any Subsidiary or parent corporation thereof (within the
meaning of Section 422 of the Code). Except as limited by requirements of
Section 422 of the Code and regulations and rulings thereunder applicable to
Incentive Stock Options, the Committee may extend the term of any outstanding
Option in connection with any Termination of Employment or Termination of
Consultancy of the Optionee, or amend any other term or condition of such Option
relating to such a termination.

        4.4 Option Vesting

        (a) The period during which the right to exercise an Option in whole or
in part vests in the Optionee shall be set by the Committee and the Committee
may determine that an Option may not be exercised in whole or in part for a
specified period after it is granted; provided, however, that, unless the
Committee otherwise provides in the terms of the Option or otherwise, no Option
shall be exercisable by any Optionee who is then subject to Section 16 of the
Exchange Act within the period ending six months and one day after the date the
Option is granted; and provided, further, that Options granted to Independent
Directors shall become exercisable in cumulative annual installments of 33 1/3%
on each of the first, second and third anniversaries of the date of Option
grant, without variation or acceleration hereunder except as provided in Section
10.3(b). At any time after grant of an Option, the Committee may, in its sole
and absolute discretion and subject to whatever terms and conditions it selects,
accelerate the period during which an Option (except an Option granted to an
Independent Director) vests.

        (b) No portion of an Option which is unexercisable at Termination of
Employment, Termination of Directorship or Termination of Consultancy, as
applicable, shall thereafter become exercisable, except as may be otherwise
provided by the Committee in the case of Options granted to Employees or
consultants either in the Stock Option Agreement or by action of the Committee
following the grant of the Option.

        (c) To the extent that the aggregate Fair Market Value of stock with
respect to which "incentive stock options" (within the meaning of Section 422 of
the Code, but without regard to Section 422(d) of the Code) are exercisable for
the first time by an Optionee during any calendar year (under the Plan and all
other incentive stock option plans of the Company and any Subsidiary) exceeds
$100,000, such Options shall be treated as Non-Qualified Options to the extent
required by Section 422 of the Code. The rule set forth in the preceding
sentence shall be applied by taking Options into account in the order in which
they were granted. For purposes of this Section 4.4(c), the Fair Market Value of
stock shall be determined as of the time the Option with respect to such stock
is granted.

        4.5 Consideration. In consideration of the granting of an Option, the
Optionee shall agree, in the written Stock Option Agreement, to remain in the
employ of (or to consult for or to serve as an Independent Director of, as
applicable) the Company or any Subsidiary for a period of at least one year (or
such shorter period as may be fixed in the Stock Option Agreement or by action
of the Committee following grant of the Option) after the Option is granted (or,
in the case of an Independent Director, until the next annual meeting of
stockholders of the Company). Nothing in this Plan or in any Stock Option
Agreement hereunder shall confer upon any Optionee any right to continue in the
employ of, or as a consultant for, the Company or any Subsidiary, or as a
director of the Company, or shall interfere with or restrict in any way the
rights of the Company and any Subsidiary, which are hereby expressly reserved,
to discharge any Optionee at any time for any reason whatsoever, with or without
good cause.

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                                    ARTICLE V

                               EXERCISE OF OPTIONS

        5.1 Partial Exercise. An exercisable Option may be exercised in whole or
in part. However, an Option shall not be exercisable with respect to fractional
shares and the Committee (or the Board, in the case of Options granted to
Independent Directors) may require that, by the terms of the Option, a partial
exercise be with respect to a minimum number of shares.

        5.2 Manner of Exercise. All or a portion of an exercisable Option shall
be deemed exercised upon delivery of all of the following to the Secretary of
the Company or his office:

                (a) A written notice complying with the applicable rules
        established by the Committee (or the Board, in the case of Options
        granted to Independent Directors) stating that the Option, or a portion
        thereof, is exercised. The notice shall be signed by the Optionee or
        other person then entitled to exercise the Option or such portion;

                (b) Such representations and documents as the Committee (or the
        Board, in the case of Options granted to Independent Directors), in its
        absolute discretion, deems necessary or advisable to effect compliance
        with all applicable provisions of the Securities Act of 1933, as
        amended, and any other federal or state securities laws or regulations.
        The Committee or Board may, in its absolute discretion, also take
        whatever additional actions it deems appropriate to effect such
        compliance including, without limitation, placing legends on share
        certificates and issuing stop-transfer notices to agents and registrars;

                (c) In the event that the Option shall be exercised pursuant to
        Section 10.1 by any person or persons other than the Optionee,
        appropriate proof of the right of such person or persons to exercise the
        Option; and

                (d) Full cash payment to the Secretary of the Company for the
        shares with respect to which the Option, or portion thereof, is
        exercised. However, the Committee (or the Board, in the case of Options
        granted to Independent Directors), may in its discretion (i) allow a
        delay in payment up to thirty (30) days from the date the Option, or
        portion thereof, is exercised; (ii) allow payment, in whole or in part,
        through the delivery of shares of Common Stock owned by the Optionee,
        duly endorsed for transfer to the Company with a Fair Market Value on
        the date of delivery equal to the aggregate exercise price of the Option
        or exercised portion thereof; (iii) allow payment, in whole or in part,
        through the surrender of shares of Common Stock then issuable upon
        exercise of the Option having a Fair Market Value on the date of Option
        exercise equal to the aggregate exercise price of the Option or
        exercised portion thereof; (iv) allow payment, in whole or in part,
        through the delivery of property of any kind which constitutes good and
        valuable consideration; (v) allow payment, in whole or in part, through
        the delivery of a full recourse promissory note bearing interest (at no
        less than such rate as shall then preclude the imputation of interest
        under the Code) and payable upon such terms as may be prescribed by the
        Committee or the Board; (vi) allow payment, in whole or in part, through
        the delivery of a notice that the Optionee has placed a market sell
        order with a broker with respect to shares of Common Stock then issuable
        upon exercise of the Option, and that the broker has been directed to
        pay a sufficient portion of the net proceeds of the sale to the Company
        in satisfaction of the Option exercise price; or (vii) allow payment
        through any combination of the consideration provided in the foregoing
        subparagraphs (ii), (iii), (iv), (v) and (vi). In the case of a
        promissory note, the Committee (or the Board, in the case of Options
        granted to Independent Directors) may also prescribe the form of such
        note and the security to be given for such note. The Option may not be
        exercised, however, by

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        delivery of a promissory note or by a loan from the Company when or
        where such loan or other extension of credit is prohibited by law.

        5.3 Conditions to Issuance of Stock Certificates. The Company shall not
be required to issue or deliver any certificate or certificates for shares of
stock purchased upon the exercise of any Option or portion thereof prior to
fulfillment of all of the following conditions:

                (a) The admission of such shares to listing on all stock
        exchanges on which such class of stock is then listed;

                (b) The completion of any registration or other qualification of
        such shares under any state or federal law, or under the rulings or
        regulations of the Securities and Exchange Commission or any other
        governmental regulatory body which the Committee or Board shall, in its
        absolute discretion, deem necessary or advisable;

                (c) The obtaining of any approval or other clearance from any
        state or federal governmental agency which the Committee (or Board, in
        the case of Options granted to Independent Directors) shall, in its
        absolute discretion, determine to be necessary or advisable;

                (d) The lapse of such reasonable period of time following the
        exercise of the Option as the Committee (or Board, in the case of
        Options granted to Independent Directors) may establish from time to
        time for reasons of administrative convenience; and

                (e) The receipt by the Company of full payment for such shares,
        including payment of any applicable withholding tax.

        5.4 Rights as Stockholders. The holders of Options shall not be, nor
have any of the rights or privileges of, stockholders of the Company in respect
of any shares purchasable upon the exercise of any part of an Option unless and
until certificates representing such shares have been issued by the Company to
such holders.

        5.5 Ownership and Transfer Restrictions. The Committee (or Board, in the
case of Options granted to Independent Directors), in its absolute discretion,
may impose such restrictions on the ownership and transferability of the shares
purchasable upon the exercise of an Option as it deems appropriate. Any such
restriction shall be set forth in the respective Stock Option Agreement and may
be referred to on the certificates evidencing such shares. The Committee may
require the Employee to give the Company prompt notice of any disposition of
shares of Common Stock acquired by exercise of an Incentive Stock Option within
(i) two years from the date of granting such Option to such Employee or (ii) one
year after the transfer of such shares to such Employee. The Committee may
direct that the certificates evidencing shares acquired by exercise of an Option
refer to such requirement to give prompt notice of disposition.

        5.6 Limitations on Exercise of Options Granted to Independent Directors.
No Option granted to an Independent Director may be exercised to any extent by
anyone after the first to occur of the following events:

                (a) The expiration of twelve (12) months from the date of the
        Optionee's death;

                (b) the expiration of twelve (12) months from the date of the
        Optionee's Termination of Directorship by reason of his permanent and
        total disability (within the meaning of Section 22(e)(3) of the Code);

                                       10
<PAGE>   11

                (c) the expiration of three (3) months from the date of the
        Optionee's Termination of Directorship for any reason other than such
        Optionee's death or his permanent and total disability, unless the
        Optionee dies within said three-month period; or

                (d) The expiration of ten (10) years from the date the Option
        was granted.

                                   ARTICLE VI

                            AWARD OF RESTRICTED STOCK

        6.1 Award of Restricted Stock

        (a) The Committee may from time to time, in its absolute discretion:

                (i) Select from among the key Employees or consultants
        (including Employees or consultants who have previously received other
        awards under this Plan) such of them as in its opinion should be awarded
        Restricted Stock; and

                (ii) Determine the purchase price, if any, and other terms and
        conditions applicable to such Restricted Stock, consistent with this
        Plan.

        (b) The Committee shall establish the purchase price, if any, and form
of payment for Restricted Stock; provided, however, that such purchase price
shall be no less than the par value of the Common Stock to be purchased, unless
otherwise permitted by applicable state law. In all cases, legal consideration
shall be required for each issuance of Restricted Stock.

        (c) Upon the selection of a key Employee or consultant to be awarded
Restricted Stock, the Committee shall instruct the Secretary of the Company to
issue such Restricted Stock and may impose such conditions on the issuance of
such Restricted Stock as it deems appropriate.

        6.2 Restricted Stock Agreement. Restricted Stock shall be issued only
pursuant to a written Restricted Stock Agreement, which shall be executed by the
selected key Employee or consultant and an authorized officer of the Company and
which shall contain such terms and conditions as the Committee shall determine,
consistent with this Plan.

        6.3 Consideration. As consideration for the issuance of Restricted
Stock, in addition to payment of any purchase price, the Restricted Stockholder
shall agree, in the written Restricted Stock Agreement, to remain in the employ
of, or to consult for, the Company or any Subsidiary for a period of at least
one year after the Restricted Stock is issued (or such shorter period as may be
fixed in the Restricted Stock Agreement or by action of the Committee following
grant of the Restricted Stock). Nothing in this Plan or in any Restricted Stock
Agreement hereunder shall confer on any Restricted Stockholder any right to
continue in the employ of, or as a consultant for, the Company or any Subsidiary
or shall interfere with or restrict in any way the rights of the Company and any
Subsidiary, which are hereby expressly reserved, to discharge any Restricted
Stockholder at any time for any reason whatsoever, with or without good cause.

        6.4 Rights as Stockholders. Upon delivery of the shares of Restricted
Stock to the escrow holder pursuant to Section 6.7, the Restricted Stockholder
shall have, unless otherwise provided by the Committee, all the rights of a
stockholder with respect to said shares, subject to the restrictions in his
Restricted Stock Agreement, including the right to receive all dividends and
other distributions paid or made with respect to the shares; provided, however,
that in the discretion of the Committee, any

                                       11
<PAGE>   12

extraordinary distributions with respect to the Common Stock shall be subject to
the restrictions set forth in Section 6.5.

        6.5 Restriction. All shares of Restricted Stock issued under this Plan
(including any shares received by holders thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization) shall, in the terms of each individual Restricted Stock
Agreement, be subject to such restrictions as the Committee shall provide, which
restrictions may include, without limitation, restrictions concerning voting
rights and transferability and restrictions based on duration of employment with
the Company, Company performance and individual performance; provided, however,
that, unless the Committee otherwise provides in the terms of the Restricted
Stock Agreement or otherwise, no share of Restricted Stock granted to a person
subject to Section 16 of the Exchange Act shall be sold, assigned or otherwise
transferred until at least six months and one day have elapsed from the date on
which the Restricted Stock was issued, and provided, further, that by action
taken after the Restricted Stock is issued, the Committee may, on such terms and
conditions as it may determine to be appropriate, remove any or all of the
restrictions imposed by the terms of the Restricted Stock Agreement. Restricted
Stock may not be sold or encumbered until all restrictions are terminated or
expire. Unless provided otherwise by the Committee, if no consideration was paid
by the Restricted Stockholder upon issuance, a Restricted Stockholder's rights
in unvested Restricted Stock shall lapse upon Termination of Employment or, if
applicable, upon Termination of Consultancy with the Company.

        6.6 Repurchase of Restricted Stock. The Committee shall provide in the
terms of each individual Restricted Stock Agreement that the Company shall have
the right to repurchase from the Restricted Stockholder the Restricted Stock
then subject to restrictions under the Restricted Stock Agreement immediately
upon a Termination of Employment or, if applicable, upon a Termination of
Consultancy between the Restricted Stockholder and the Company, at a cash price
per share equal to the price paid by the Restricted Stockholder for such
Restricted Stock; provided, however, that provision may be made that no such
right of repurchase shall exist in the event of a Termination of Employment or
Termination of Consultancy without cause, or following a change in control of
the Company or because of the Restricted Stockholder's retirement, death or
disability, or otherwise.

        6.7 Escrow. The Secretary of the Company or such other escrow holder as
the Committee may appoint shall retain physical custody of each certificate
representing Restricted Stock until all of the restrictions imposed under the
Restricted Stock Agreement with respect to the shares evidenced by such
certificate expire or shall have been removed.

        6.8 Legend. In order to enforce the restrictions imposed upon shares of
Restricted Stock hereunder, the Committee shall cause a legend or legends to be
placed on certificates representing all shares of Restricted Stock that are
still subject to restrictions under Restricted Stock Agreements, which legend or
legends shall make appropriate reference to the conditions imposed thereby.

                                   ARTICLE VII

                    PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS,
                         DEFERRED STOCK, STOCK PAYMENTS

        7.1 Performance Awards. Any key Employee or consultant selected by the
Committee may be granted one or more Performance Awards. The value of such
Performance Awards may be linked to the market value, book value, net profits or
other measure of the value of Common Stock or other specific performance
criteria determined appropriate by the Committee, in each case on a specified
date or dates or over any period or periods determined by the Committee, or may
be based upon the appreciation in the market value, book value, net profits or
other measure of the value of a specified number of shares of

                                       12
<PAGE>   13

Common Stock over a fixed period or periods determined by the Committee. In
making such determinations, the Committee shall consider (among such other
factors as it deems relevant in light of the specific type of award) the
contributions, responsibilities and other compensation of the particular key
Employee or consultant.

        7.2 Equivalents. Any key Employee or consultant selected by the
Committee may be granted Dividend Equivalents based on the dividends declared on
Common Stock, to be credited as of dividend payment dates, during the period
between the date an Option, Stock Appreciation Right, Deferred Stock or
Performance Award is granted, and the date such Option, Stock Appreciation
Right, Deferred Stock or Performance Award is exercised, vests or expires, as
determined by the Committee. Such Dividend Equivalents shall be converted to
cash or additional shares of Common Stock by such formula and at such time and
subject to such limitations as may be determined by the Committee. With respect
to Dividend Equivalents granted with respect to Options intended to be qualified
performance-based compensation for purposes of Section 162(m) of the Code, such
Dividend Equivalents shall be payable regardless of whether such Option is
exercised.

        7.3 Stock Payments. Any key Employee or consultant selected by the
Committee may receive Stock Payments in the manner determined from time to time
by the Committee. The number of shares shall be determined by the Committee and
may be based upon the Fair Market Value, book value, net profits or other
measure of the value of Common Stock or other specific performance criteria
determined appropriate by the Committee, determined on the date such Stock
Payment is made or on any date thereafter.

        7.4 Deferred Stock. Any key Employee or consultant selected by the
Committee may be granted an award of Deferred Stock in the manner determined
from time to time by the Committee. The number of shares of Deferred Stock shall
be determined by the Committee and may be linked to the market value, book
value, net profits or other measure of the value of Common Stock or other
specific performance criteria determined to be appropriate by the Committee, in
each case on a specified date or dates or over any period or periods determined
by the Committee. Common Stock underlying a Deferred Stock award will not be
issued until the Deferred Stock award has vested, pursuant to a vesting schedule
or performance criteria set by the Committee. Unless otherwise provided by the
Committee, a Grantee of Deferred Stock shall have no rights as a Company
stockholder with respect to such Deferred Stock until such time as the award has
vested and the Common Stock underlying the award has been issued.

        7.5 Performance Award Agreement, Dividend Equivalent Agreement, Deferred
Stock Agreement, Stock Payment Agreement. Each Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment shall be evidenced by a
written agreement, which shall be executed by the Grantee and an authorized
Officer of the Company and which shall contain such terms and conditions as the
Committee shall determine, consistent with this Plan.

        7.6 Term. The term of a Performance Award, Dividend Equivalent, award of
Deferred Stock and/or Stock Payment shall be set by the Committee in its
discretion.

        7.7 Exercise Upon Termination of Employment. A Performance Award,
Dividend Equivalent, award of Deferred Stock and/or Stock Payment is exercisable
or payable only while the Grantee is an Employee or consultant; provided that
the Committee may determine that the Performance Award, Dividend Equivalent,
award of Deferred Stock and/or Stock Payment may be exercised or paid subsequent
to Termination of Employment or Termination of Consultancy without cause, or
following a change in control of the Company, or because of the Grantee's
retirement, death or disability, or otherwise.

                                       13
<PAGE>   14

        7.8 Payment on Exercise. Payment of the amount determined under Section
7.1 or 7.2 above shall be in cash, in Common Stock or a combination of both, as
determined by the Committee. To the extent any payment under this Article VII is
effected in Common Stock, it shall be made subject to satisfaction of all
provisions of Section 5.3.

        7.9 Consideration. In consideration of the granting of a Performance
Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment, the
Grantee shall agree, in a written agreement, to remain in the employ of, or to
consult for, the Company or any Subsidiary for a period of at least one year
after such Performance Award, Dividend Equivalent, award of Deferred Stock
and/or Stock Payment is granted (or such shorter period as may be fixed in such
agreement or by action of the Committee following such grant). Nothing in this
Plan or in any agreement hereunder shall confer on any Grantee any right to
continue in the employ of, or as a consultant for, the Company or any Subsidiary
or shall interfere with or restrict in any way the rights of the Company and any
Subsidiary, which are hereby expressly reserved, to discharge any Grantee at any
time for any reason whatsoever, with or without good cause.

                                  ARTICLE VIII

                            STOCK APPRECIATION RIGHTS

        8.1 Grant of Stock Appreciation Rights. A Stock Appreciation Right may
be granted to any key Employee or consultant selected by the Committee. A Stock
Appreciation Right may be granted (i) in connection and simultaneously with the
grant of an Option, (ii) with respect to a previously granted Option, or (iii)
independent of an Option. A Stock Appreciation Right shall be subject to such
terms and conditions not inconsistent with this Plan as the Committee shall
impose and shall be evidenced by a written Stock Appreciation Right Agreement,
which shall be executed by the Grantee and an authorized officer of the Company.
The Committee, in its discretion, may determine whether a Stock Appreciation
Right is to qualify as performance-based compensation as described in Section
162(m)(4)(C) of the Code and Stock Appreciation Right Agreements evidencing
Stock Appreciation Rights intended to so qualify shall contain such terms and
conditions as may be necessary to meet the applicable provisions of Section
162(m) of the Code. Without limiting the generality of the foregoing, the
Committee may, in its discretion and on such terms as it deems appropriate,
require as a condition of the grant of a Stock Appreciation Right to an Employee
or consultant that the Employee or consultant surrender for cancellation some or
all of the unexercised Options, awards of Restricted Stock or Deferred Stock,
Performance Awards, Stock Appreciation Rights, Dividend Equivalents or Stock
Payments, or other rights which have been previously granted to him under this
Plan or otherwise. A Stock Appreciation Right, the grant of which is conditioned
upon such surrender, may have an exercise price lower (or higher) than the
exercise price of the surrendered Option or other award, may cover the same (or
a lesser or greater) number of shares as such surrendered Option or other award,
may contain such other terms as the Committee deems appropriate, and shall be
exercisable in accordance with its terms, without regard to the number of
shares, price, exercise period or any other term or condition of such
surrendered Option or other award.

        8.2 Coupled Stock Appreciation Rights

        (a) A Coupled Stock Appreciation Right ("CSAR") shall be related to a
particular Option and shall be exercisable only when and to the extent the
related Option is exercisable.

        (b) A CSAR may be granted to the Grantee for no more than the number of
shares subject to the simultaneously or previously granted Option to which it is
coupled.

                                       14
<PAGE>   15

        (c) A CSAR shall entitle the Grantee (or other person entitled to
exercise the Option pursuant to this Plan) to surrender to the Company
unexercised a portion of the Option to which the CSAR relates (to the extent
then exercisable pursuant to its terms) and to receive from the Company in
exchange therefor an amount determined by multiplying the difference obtained by
subtracting the Option exercise price from the Fair Market Value of a share of
Common Stock on the date of exercise of the CSAR by the number of shares of
Common Stock with respect to which the CSAR shall have been exercised, subject
to any limitations the Committee may impose.

        8.3 Independent Stock Appreciation Rights

        (a) An Independent Stock Appreciation Right ("ISAR") shall be unrelated
to any Option and shall have a term set by the Committee. An ISAR shall be
exercisable in such installments as the Committee may determine. An ISAR shall
cover such number of shares of Common Stock as the Committee may determine;
provided, however, that unless the Committee otherwise provides in the terms of
the ISAR or otherwise, no ISAR granted to a person subject to Section 16 of the
Exchange Act shall be exercisable until at least six months have elapsed from
(but excluding) the date on which the Option was granted. The exercise price per
share of Common Stock subject to each ISAR shall be set by the Committee. An
ISAR is exercisable only while the Grantee is an Employee or consultant;
provided that the Committee may determine that the ISAR may be exercised
subsequent to Termination of Employment or Termination of Consultancy without
cause, or following a change in control of the Company, or because of the
Grantee's retirement, death or disability, or otherwise.

        (b) An ISAR shall entitle the Grantee (or other person entitled to
exercise the ISAR pursuant to this Plan) to exercise all or a specified portion
of the ISAR (to the extent then exercisable pursuant to its terms) and to
receive from the Company an amount determined by multiplying the difference
obtained by subtracting the exercise price per share of the ISAR from the Fair
Market Value of a share of Common Stock on the date of exercise of the ISAR by
the number of shares of Common Stock with respect to which the ISAR shall have
been exercised, subject to any limitations the Committee may impose.

        8.4 Payment and Limitations on Exercise

        (a) Payment of the amount determined under Section 8.2(c) and 8.3(b)
above shall be in cash, in Common Stock (based on its Fair Market Value as of
the date the Stock Appreciation Right is exercised) or a combination of both, as
determined by the Committee. To the extent such payment is effected in Common
Stock it shall be made subject to satisfaction of all provisions of Section 5.3
above pertaining to Options.

        (b) Grantees of Stock Appreciation Rights may be required to comply with
any timing or other restrictions with respect to the settlement or exercise of a
Stock Appreciation Right, including a window-period limitation, as may be
imposed in the discretion of the Board or Committee.

        8.5 Consideration. In consideration of the granting of a Stock
Appreciation Right, the Grantee shall agree, in the written Stock Appreciation
Right Agreement, to remain in the employ of, or to consult for, the Company or
any Subsidiary for a period of at least one year after the Stock Appreciation
Right is granted (or such shorter period as may be fixed in the Stock
Appreciation Right Agreement or by action of the Committee following grant of
the Restricted Stock). Nothing in this Plan or in any Stock Appreciation Right
Agreement hereunder shall confer on any Grantee any right to continue in the
employ of, or as a consultant for, the Company or any Subsidiary or shall
interfere with or restrict in any way the rights of the Company and any
Subsidiary, which are hereby expressly reserved, to discharge any Grantee at any
time for any reason whatsoever, with or without good cause.

                                       15
<PAGE>   16

                                   ARTICLE IX

                                 ADMINISTRATION

        9.1 Compensation Committee. Prior to the Company's initial registration
of Common Stock under Section 12 of the Exchange Act, the Compensation Committee
shall consist of the entire Board. Following such registration, the Compensation
Committee (or another committee or a subcommittee of the Board assuming the
functions of the Committee under this Plan) shall consist solely of two or more
Independent Directors appointed by and holding office at the pleasure of the
Board, each of whom is both a "non-employee director" as defined by Rule 16b-3
and an "outside director" for purposes of Section 162(m) of the Code.
Appointment of Committee members shall be effective upon acceptance of
appointment. Committee members may resign at any time by delivering written
notice to the Board. Vacancies in the Committee may be filled by the Board.

        9.2 Duties and Powers of Committee. It shall be the duty of the
Committee to conduct the general administration of this Plan in accordance with
its provisions. The Committee shall have the power to interpret this Plan and
the agreements pursuant to which Options, awards of Restricted Stock or Deferred
Stock, Performance Awards, Stock Appreciation Rights, Dividend Equivalents or
Stock Payments are granted or awarded, and to adopt such rules for the
administration, interpretation, and application of this Plan as are consistent
therewith and to interpret, amend or revoke any such rules. Notwithstanding the
foregoing, the full Board, acting by a majority of its members in office, shall
conduct the general administration of the Plan with respect to Options granted
to Independent Directors. Any such grant or award under this Plan need not be
the same with respect to each Optionee, Grantee or Restricted Stockholder. Any
such interpretations and rules with respect to Incentive Stock Options shall be
consistent with the provisions of Section 422 of the Code. In its absolute
discretion, the Board may at any time and from time to time exercise any and all
rights and duties of the Committee under this Plan except with respect to
matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations
or rules issued thereunder, are required to be determined in the sole discretion
of the Committee.

        9.3 Majority Rule; Unanimous Written Consent. The Committee shall act by
a majority of its members in attendance at a meeting at which a quorum is
present or by a memorandum or other written instrument signed by all members of
the Committee.

        9.4 Compensation; Professional Assistance; Good Faith Actions. Members
of the Committee shall receive such compensation for their services as members
as may be determined by the Board. All expenses and liabilities which members of
the Committee incur in connection with the administration of this Plan shall be
borne by the Company. The Committee may, with the approval of the Board, employ
attorneys, consultants, accountants, appraisers, brokers, or other persons. The
Committee, the Company and the Company's officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Committee or the Board in good faith shall be final and binding upon all
Optionees, Grantees, Restricted Stockholders, the Company and all other
interested persons. No members of the Committee or Board shall be personally
liable for any action, determination or interpretation made in good faith with
respect to this Plan, Options, awards of Restricted Stock or Deferred Stock,
Performance Awards, Stock Appreciation Rights, Dividend Equivalents or Stock
Payments, and all members of the Committee and the Board shall be fully
protected by the Company in respect of any such action, determination or
interpretation.

                                       16
<PAGE>   17

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

        10.1 Not Transferable. Options, Restricted Stock awards, Deferred Stock
awards, Performance Awards, Stock Appreciation Rights, Dividend Equivalents or
Stock Payments under this Plan may not be sold, pledged, assigned, or
transferred in any manner other than by will or the laws of descent and
distribution or pursuant to a QDRO, unless and until such rights or awards have
been exercised, or the shares underlying such rights or awards have been issued,
and all restrictions applicable to such shares have lapsed. No Option,
Restricted Stock award, Deferred Stock award, Performance Award, Stock
Appreciation Right, Dividend Equivalent or Stock Payment or interest or right
therein shall be liable for the debts, contracts or engagements of the Optionee,
Grantee or Restricted Stockholder or his successors in interest or shall be
subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect, except to
the extent that such disposition is permitted by the preceding sentence.

        During the lifetime of the Optionee or Grantee, only he may exercise an
Option or other right or award (or any portion thereof) granted to him under the
Plan, unless it has been disposed of pursuant to a QDRO. After the death of the
Optionee or Grantee, any exercisable portion of an Option or other right or
award may, prior to the time when such portion becomes unexercisable under the
Plan or the applicable Stock Option Agreement or other agreement, be exercised
by his personal representative or by any person empowered to do so under the
deceased Optionee's or Grantee's will or under the then applicable laws of
descent and distribution.

        10.2 Amendment, Suspension or Termination of this Plan. Except as
otherwise provided in this Section 10.2, this Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Board or the Committee. However, without approval of the
Company's stockholders given within twelve months before or after the action by
the Board or the Committee, no action of the Board or the Committee may, except
as provided in Section 10.3, increase the limits imposed in Section 2.1 on the
maximum number of shares which may be issued under this Plan or modify the Award
Limit, and no action of the Board or the Committee may be taken that would
otherwise require stockholder approval as a matter of applicable law, regulation
or rule. No amendment, suspension or termination of this Plan shall, without the
consent of the holder of Options, Restricted Stock awards, Deferred Stock
awards, Performance Awards, Stock Appreciation Rights, Dividend Equivalents or
Stock Payments, alter or impair any rights or obligations under any Options,
Restricted Stock awards, Deferred Stock awards, Performance Awards, Stock
Appreciation Rights, Dividend Equivalents or Stock Payments theretofore granted
or awarded, unless the award itself otherwise expressly so provides. No Options,
Restricted Stock, Deferred Stock, Performance Awards, Stock Appreciation Rights,
Dividend Equivalents or Stock Payments may be granted or awarded during any
period of suspension or after termination of this Plan, and in no event may any
Incentive Stock Option be granted under this Plan after the first to occur of
the following events:

                (a) The expiration of ten years from the date the Plan is
        adopted by the Board; or

                (b) The expiration of ten years from the date the Plan is
        approved by the Company's stockholders under Section 10.4.

                                       17
<PAGE>   18

        10.3 Changes in Common Stock or Assets of the Company, Acquisition or
Liquidation of the Company and Other Corporate Events.

        (a) Subject to Section 10.3(d), in the event that the Committee (or the
Board, in the case of Options granted to Independent Directors) determines that
any dividend or other distribution (whether in the form of cash, Common Stock,
other securities, or other property), recapitalization, reclassification, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer,
exchange or other disposition of all or substantially all of the assets of the
Company (including, but not limited to, a Corporate Transaction), or exchange of
Common Stock or other securities of the Company, issuance of warrants or other
rights to purchase Common Stock or other securities of the Company, or other
similar corporate transaction or event, in the Committee's sole discretion (or
in the case of Options granted to Independent Directors, the Board's sole
discretion), affects the Common Stock such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan
or with respect to an Option, Restricted Stock award, Performance Award, Stock
Appreciation Right, Dividend Equivalent, Deferred Stock award or Stock Payment,
then the Committee (or the Board, in the case of Options granted to Independent
Directors) shall, in such manner as it may deem equitable, adjust any or all of

                (i) the number and kind of shares of Common Stock (or other
        securities or property) with respect to which Options, Performance
        Awards, Stock Appreciation Rights, Dividend Equivalents or Stock
        Payments may be granted under the Plan, or which may be granted as
        Restricted Stock or Deferred Stock (including, but not limited to,
        adjustments of the limitations in Section 2.1 on the maximum number and
        kind of shares which may be issued and adjustments of the Award Limit),

                (ii) the number and kind of shares of Common Stock (or other
        securities or property) subject to outstanding Options, Performance
        Awards, Stock Appreciation Rights, Dividend Equivalents, or Stock
        Payments, and in the number and kind of shares of outstanding Restricted
        Stock or Deferred Stock, and

                (iii) the grant or exercise price with respect to any Option,
        Performance Award, Stock Appreciation Right, Dividend Equivalent or
        Stock Payment.

        (b) Subject to Sections 10.3(b)(vii) and 10.3(d), in the event of any
Corporate Transaction or other transaction or event described in Section 10.3(a)
or any unusual or nonrecurring transactions or events affecting the Company, any
affiliate of the Company, or the financial statements of the Company or any
affiliate, or of changes in applicable laws, regulations, or accounting
principles, the Committee (or the Board, in the case of Options granted to
Independent Directors) in its discretion is hereby authorized to take any one or
more of the following actions whenever the Committee (or the Board, in the case
of Options granted to Independent Directors) determines that such action is
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or with respect
to any option, right or other award under this Plan, to facilitate such
transactions or events or to give effect to such changes in laws, regulations or
principles:

                (i) In its sole and absolute discretion, and on such terms and
        conditions as it deems appropriate, the Committee (or the Board, in the
        case of Options granted to Independent Directors) may provide, either by
        the terms of the agreement or by action taken prior to the occurrence of
        such transaction or event and either automatically or upon the
        optionee's request, for either the purchase of any such Option,
        Performance Award, Stock Appreciation Right, Dividend Equivalent, or
        Stock Payment, or any Restricted Stock or Deferred Stock for an amount
        of cash equal to the amount that could have been attained upon the
        exercise of such option, right or award or realization of the optionee's
        rights had such

                                       18
<PAGE>   19

        option, right or award been currently exercisable or payable or fully
        vested or the replacement of such option, right or award with other
        rights or property selected by the Committee (or the Board, in the case
        of Options granted to Independent Directors) in its sole discretion;

                (ii) In its sole and absolute discretion, the Committee (or the
        Board, in the case of Options granted to Independent Directors) may
        provide, either by the terms of such Option, Performance Award, Stock
        Appreciation Right, Dividend Equivalent, or Stock Payment, or Restricted
        Stock or Deferred Stock or by action taken prior to the occurrence of
        such transaction or event that it cannot be exercised after such event;

                (iii) In its sole and absolute discretion, and on such terms and
        conditions as it deems appropriate, the Committee (or the Board, in the
        case of Options granted to Independent Directors) may provide, either by
        the terms of such Option, Performance Award, Stock Appreciation Right,
        Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred
        Stock or by action taken prior to the occurrence of such transaction or
        event, that for a specified period of time prior to such transaction or
        event, such option, right or award shall be exercisable as to all shares
        covered thereby, notwithstanding anything to the contrary in (i) Section
        4.4 or (ii) the provisions of such Option, Performance Award, Stock
        Appreciation Right, Dividend Equivalent, or Stock Payment, or Restricted
        Stock or Deferred Stock;

                (iv) In its sole and absolute discretion, and on such terms and
        conditions as it deems appropriate, the Committee (or the Board, in the
        case of Options granted to Independent Directors) may provide, either by
        the terms of such Option, Performance Award, Stock Appreciation Right,
        Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred
        Stock or by action taken prior to the occurrence of such transaction or
        event, that upon such event, such option, right or award be assumed by
        the successor or survivor corporation, or a parent or subsidiary
        thereof, or shall be substituted for by similar options, rights or
        awards covering the stock of the successor or survivor corporation, or a
        parent or subsidiary thereof, with appropriate adjustments as to the
        number and kind of shares and prices;

                (v) In its sole and absolute discretion, and on such terms and
        conditions as it deems appropriate, the Committee (or the Board, in the
        case of Options granted to Independent Directors) may make adjustments
        in the number and type of shares of Common Stock (or other securities or
        property) subject to outstanding Options, Performance Awards, Stock
        Appreciation Rights, Dividend Equivalents, or Stock Payments, and in the
        number and kind of outstanding Restricted Stock or Deferred Stock and/or
        in the terms and conditions of (including the grant or exercise price),
        and the criteria included in, outstanding options, rights and awards and
        options, rights and awards which may be granted in the future;

                (vi) In its sole and absolute discretion, and on such terms and
        conditions as it deems appropriate, the Committee may provide either by
        the terms of a Restricted Stock award or Deferred Stock award or by
        action taken prior to the occurrence of such event that, for a specified
        period of time prior to such event, the restrictions imposed under a
        Restricted Stock Agreement or a Deferred Stock Agreement upon some or
        all shares of Restricted Stock or Deferred Stock may be terminated, and,
        in the case of Restricted Stock, some or all shares of such Restricted
        Stock may cease to be subject to repurchase under Section 6.6 or
        forfeiture under Section 6.5 after such event; and

                (vii) None of the foregoing discretionary actions taken under
        this Section 10.3(b) shall be permitted with respect to Options granted
        under Section 3.4(d) to Independent Directors to the extent that such
        discretion would be inconsistent with the applicable exemptive
        conditions of Rule 16b-3. In the event of a Change in Control or a
        Corporate Transaction, to the extent that the Board does not have the

                                       19
<PAGE>   20

        ability under Rule 16b-3 to take or to refrain from taking the
        discretionary actions set forth in Section 10.3(b)(iii) above, each
        Option granted to an Independent Director shall be exercisable as to all
        shares covered thereby upon such Change in Control or during the five
        days immediately preceding the consummation of such Corporate
        Transaction and subject to such consummation, notwithstanding anything
        to the contrary in Section 4.4 or the vesting schedule of such Options.
        In the event of a Corporate Transaction, to the extent that the Board
        does not have the ability under Rule 16b-3 to take or to refrain from
        taking the discretionary actions set forth in Section 10.3(b)(ii) above,
        no Option granted to an Independent Director may be exercised following
        such Corporate Transaction unless such Option is, in connection with
        such Corporate Transaction, either assumed by the successor or survivor
        corporation (or parent or subsidiary thereof) or replaced with a
        comparable right with respect to shares of the capital stock of the
        successor or survivor corporation (or parent or subsidiary thereof).

        (c) Subject to Section 10.3(d) and 10.8, the Committee (or the Board, in
the case of Options granted to Independent Directors) may, in its discretion,
include such further provisions and limitations in any Option, Performance
Award, Stock Appreciation Right, Dividend Equivalent, or Stock Payment, or
Restricted Stock or Deferred Stock agreement or certificate, as it may deem
equitable and in the best interests of the Company.

        (d) With respect to Incentive Stock Options and Options and Stock
Appreciation Rights intended to qualify as performance-based compensation under
Section 162(m), no adjustment or action described in this Section 10.3 or in any
other provision of the Plan shall be authorized to the extent that such
adjustment or action would cause the Plan to violate Section 422(b)(1) of the
Code or would cause such option or stock appreciation right to fail to so
qualify under Section 162(m), as the case may be, or any successor provisions
thereto. Furthermore, no such adjustment or action shall be authorized to the
extent such adjustment or action would result in short-swing profits liability
under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the
Committee (or the Board, in the case of Options granted to Independent
Directors) determines that the option or other award is not to comply with such
exemptive conditions. The number of shares of Common Stock subject to any
option, right or award shall always be rounded to the next whole number.

        10.4 Approval of Plan by Stockholders. This Plan will be submitted for
the approval of the Company's stockholders within twelve months after the date
of the Board's initial adoption of this Plan. Options, Performance Awards, Stock
Appreciation Rights, Dividend Equivalents or Stock Payments may be granted and
Restricted Stock or Deferred Stock may be awarded prior to such stockholder
approval, provided that such Options, Performance Awards, Stock Appreciation
Rights, Dividend Equivalents or Stock Payments shall not be exercisable and such
Restricted Stock or Deferred Stock shall not vest prior to the time when this
Plan is approved by the stockholders, and provided further that if such approval
has not been obtained at the end of said twelve-month period, all Options,
Performance Awards, Stock Appreciation Rights, Dividend Equivalents or Stock
Payments previously granted and all Restricted Stock or Deferred Stock
previously awarded under this Plan shall thereupon be canceled and become null
and void.

        10.5 Tax Withholding. The Company shall be entitled to require payment
in cash or deduction from other compensation payable to each Optionee, Grantee
or Restricted Stockholder of any sums required by federal, state or local tax
law to be withheld with respect to the issuance, vesting or exercise of any
Option, Restricted Stock, Deferred Stock, Performance Award, Stock Appreciation
Right, Dividend Equivalent or Stock Payment. The Committee (or the Board, in the
case of Options granted to Independent Directors) may in its discretion and in
satisfaction of the foregoing requirement allow such Optionee, Grantee or
Restricted Stockholder to elect to have the Company withhold shares of Common
Stock otherwise issuable under such Option or other award (or allow the return
of shares of Common Stock) having a Fair Market Value equal to the sums required
to be withheld.

                                       20
<PAGE>   21

        10.6 Loans. The Committee may, in its discretion, extend one or more
loans to key Employees in connection with the exercise or receipt of an Option,
Performance Award, Stock Appreciation Right, Dividend Equivalent or Stock
Payment granted under this Plan, or the issuance of Restricted Stock or Deferred
Stock awarded under this Plan. The terms and conditions of any such loan shall
be set by the Committee.

        10.7 Forfeiture Provisions. Pursuant to its general authority to
determine the terms and conditions applicable to awards under the Plan, the
Committee (or the Board, in the case of Options granted to Independent
Directors) shall have the right (to the extent consistent with the applicable
exemptive conditions of Rule 16b-3) to provide, in the terms of Options or other
awards made under the Plan, or to require the recipient to agree by separate
written instrument, that (i) any proceeds, gains or other economic benefit
actually or constructively received by the recipient upon any receipt or
exercise of the award, or upon the receipt or resale of any Common Stock
underlying such award, must be paid to the Company, and (ii) the award shall
terminate and any unexercised portion of such award (whether or not vested)
shall be forfeited, if (a) a Termination of Employment, Termination of
Consultancy or Termination of Directorship occurs prior to a specified date, or
within a specified time period following receipt or exercise of the award, or
(b) the recipient at any time, or during a specified time period, engages in any
activity in competition with the Company, or which is inimical, contrary or
harmful to the interests of the Company, as further defined by the Committee (or
the Board, as applicable).

        10.8 Limitations Applicable to Section 16 Persons and Performance-Based
Compensation. Notwithstanding any other provision of this Plan, this Plan, and
any Option, Performance Award, Stock Appreciation Right, Dividend Equivalent or
Stock Payment granted, or Restricted Stock or Deferred Stock awarded, to any
individual who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan, Options, Performance
Awards, Stock Appreciation Rights, Dividend Equivalents, Stock Payments,
Restricted Stock and Deferred Stock granted or awarded hereunder shall be deemed
amended to the extent necessary to conform to such applicable exemptive rule.
Furthermore, notwithstanding any other provision of this Plan, any Option or
Stock Appreciation Right intended to qualify as performance-based compensation
as described in Section 162(m)(4)(C) of the Code shall be subject to any
additional limitations set forth in Section 162(m) of the Code (including any
amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as performance-based
compensation as described in Section 162(m)(4)(C) of the Code, and this Plan
shall be deemed amended to the extent necessary to conform to such requirements.

        10.9 Effect of Plan Upon Options and Compensation Plans. The adoption of
this Plan shall not affect any other compensation or incentive plans in effect
for the Company or any Subsidiary. Nothing in this Plan shall be construed to
limit the right of the Company (i) to establish any other forms of incentives or
compensation for Employees, Directors or Consultants of the Company or any
Subsidiary or (ii) to grant or assume options or other rights otherwise than
under this Plan in connection with any proper corporate purpose including but
not by way of limitation, the grant or assumption of options in connection with
the acquisition by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, partnership, limited liability
company, firm or association.

        10.10 Compliance with Laws. This Plan, the granting and vesting of
Options, Restricted Stock awards, Deferred Stock awards, Performance Awards,
Stock Appreciation Rights, Dividend Equivalents or Stock Payments under this
Plan and the issuance and delivery of shares of Common Stock and the payment of
money under this Plan or under Options, Performance Awards, Stock Appreciation
Rights,

                                       21
<PAGE>   22

Dividend Equivalents or Stock Payments granted or Restricted Stock or Deferred
Stock awarded hereunder are subject to compliance with all applicable federal
and state laws, rules and regulations (including but not limited to state and
federal securities law and federal margin requirements) and to such approvals by
any listing, regulatory or governmental authority as may, in the opinion of
counsel for the Company, be necessary or advisable in connection therewith. Any
securities delivered under this Plan shall be subject to such restrictions, and
the person acquiring such securities shall, if requested by the Company, provide
such assurances and representations to the Company as the Company may deem
necessary or desirable to assure compliance with all applicable legal
requirements. To the extent permitted by applicable law, the Plan, Options,
Restricted Stock awards, Deferred Stock awards, Performance Awards, Stock
Appreciation Rights, Dividend Equivalents or Stock Payments granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations.

        10.11 Titles. Titles are provided herein for convenience only and are
not to serve as a basis for interpretation or construction of this Plan.

        10.12 Governing Law. This Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
California without regard to conflicts of laws thereof.

                                       22<PAGE>   1
                                                                    EXHIBIT 10.2

             TERMINAL DEVELOPMENT, PRODUCTION AND PURCHASE AGREEMENT

                                 BY AND BETWEEN

                           ASTROLINK INTERNATIONAL LLC

                                       AND

                                  VIASAT, INC.

                        EFFECTIVE AS OF OCTOBER 20, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                             <C>
1.   BACKGROUND AND OBJECTIVES..............................................................      1

   1.1  Background..........................................................................      1

   1.2  Objectives..........................................................................      1

   1.3  Construction and Interpretation.....................................................      2

2.   DEFINITIONS............................................................................      3

   2.1  Certain Definitions.................................................................      3

   2.2  Other Terms.........................................................................      8

3.   SCOPE AND STRUCTURE....................................................................     10

   3.1  General Scope.......................................................................     10

   3.2  Unique Requirements.................................................................     10

   3.3  Coordination with AIL Project Teams.................................................     10

   3.4  Co-Exclusivity......................................................................     10

   3.5  Replacement of Co-Exclusive Vendor..................................................     11

   3.6  Non-Exclusivity.....................................................................     11

   3.7  Strategic Relationship..............................................................     12

4.   TERM...................................................................................     13

5.   TERMINAL DEVELOPMENT...................................................................     13

   5.1  AIL Responsibilities................................................................     13

   5.2  Contractor Responsibilities.........................................................     13

   5.3  Milestone and Payment Schedule......................................................     13

   5.4  Failure to Achieve Milestones.......................................................     13

   5.5  * * *...............................................................................     14

   5.6  Permits.............................................................................     14

   5.7  Cost-Reduction Developments.........................................................     14

   5.8  Sale of Reduced-Cost Modules........................................................     14

6.   ACCEPTANCE AND PRODUCTION..............................................................     15

   6.1  Contractor Responsibilities.........................................................     15

   6.2  Acceptance Testing..................................................................     15

   6.3  Acceptance Testing Failures, Cure Periods and Remedies..............................     16

   6.4  Quality Assurance...................................................................     16

   6.5  Certification.......................................................................     17

   6.6  Type Approval.......................................................................     17
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                                             <C>
   6.7  Production Commitments; Manufacturing Capacity......................................     18

   6.8  * * *...............................................................................     18

   6.9  Optimal In-Country Manufacture and Assembly.........................................     19

   6.10   Spare Parts.......................................................................     19

7.   MARKETING AND BRANDING.................................................................     19

   7.1  Marketing Programs..................................................................     19

   7.2  AIL Marks...........................................................................     19

   7.3  Contractor Marks....................................................................     20

8.   ORDERING...............................................................................     20

   8.1  Orders Generally....................................................................     20

   8.2  Orders from Service Providers.......................................................     20

   8.3  Seed Order..........................................................................     21

   8.4  Minimum Quantity Purchase Commitment (MQPC).........................................     21

   8.5  MQPC Shortfall Liability............................................................     21

   8.6  Forecasts and Reporting.............................................................     21

   8.7  Delivery Dates......................................................................     22

   8.8  Cancellation and Rescheduling of AIL Orders.........................................     22

   8.9  Termination of Orders...............................................................     23

   8.10   Terminal Financing Program........................................................     23

9.   DISTRIBUTION, SHIPPING AND INSTALLATION................................................     24

   9.1  Distribution........................................................................     24

   9.2  Packing.............................................................................     24

   9.3  Shipping............................................................................     24

   9.4  Risk of Loss........................................................................     24

   9.5  Title...............................................................................     25

10.  LICENSES, PROPRIETARY RIGHTS AND ESCROW................................................     25

   10.1   Grants of Licenses to Contractor..................................................     25

   10.2   Grants of Licenses to AIL.........................................................     25

   10.3   Software Licenses and Rights......................................................     26

   10.4   Proprietary Rights................................................................     27

   10.5   Documentation.....................................................................     28

   10.6   Technical Materials Escrow........................................................     29

11.  TRAINING; MAINTENANCE..................................................................     30

   11.1   Training..........................................................................     30

   11.2   Maintenance.......................................................................     31
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
<S>                                                                                             <C>
12.  CHANGE PROCEDURES AND CONTRACT MANAGEMENT..............................................     31

   12.1   Development Phase Change Procedures...............................................     31

   12.2   Production Phase Change Procedures................................................     31

   12.3   Contractor-Proposed Changes.......................................................     32

   12.4   Contract Management...............................................................     33

   12.5   Contractor Personnel..............................................................     34

   12.6   Replacement, Qualifications, and Retention of Contractor Personnel................     34

   12.7   AIL Third Party Services and Products.............................................     35

   12.8   Prime Contractor..................................................................     35

   12.9   Contractor's Use of Subcontractors................................................     35

   12.10  On-Site Representatives...........................................................     36

13.  SERVICE STANDARDS......................................................................     36

   13.1   General...........................................................................     36

   13.2   Contractor's Failure to Perform...................................................     37

   13.3   Periodic Reviews..................................................................     37

   13.4   Measurement and Monitoring Tools..................................................     37

   13.5   AIL's Failure to Perform..........................................................     37

   13.6   AIL's Suspension of Work..........................................................     37

   13.7   General Performance Award.........................................................     38

14.  TERMINAL PRICES........................................................................     38

   14.1   General...........................................................................     38

   14.2   Determination of Wholesale Prices; Adjustments....................................     39

   14.3   Most Favored Customer and Benchmarking............................................     39

   14.4   Taxes.............................................................................     40

15.  AIL PAYMENTS TO CONTRACTOR AND INVOICING...............................................     41

   15.1   Initial Payment...................................................................     41

   15.2   Payments..........................................................................     41

   15.3   Invoicing.........................................................................     42

   15.4   Payment Due.......................................................................     43

   15.5   Accountability....................................................................     43

   15.6   Proration.........................................................................     43

   15.7   Set Off...........................................................................     43

   15.8   Disputed Charges..................................................................     43

   15.9   Encumbrances......................................................................     44

16.  INFORMATION; CONFIDENTIALITY...........................................................     44
</TABLE>

                                       iii
<PAGE>   5

<TABLE>
<S>                                                                                             <C>
   16.1   Contractor Information............................................................     44

   16.2   AIL Information...................................................................     44

   16.3   Confidentiality...................................................................     45

17.  EXAMINATION AND AUDIT OF INFORMATION; RECORDKEEPING....................................     47

   17.1   Examination and Audit Rights......................................................     47

   17.2   Recordkeeping Obligations.........................................................     47

18.  REPRESENTATIONS AND WARRANTIES.........................................................     47

   18.1   Pass-Through Warranties...........................................................     47

   18.2   Work Standards....................................................................     47

   18.3   Terminal and Services Warranties..................................................     48

   18.4   Documentation.....................................................................     51

   18.5   Efficiency and Cost Effectiveness.................................................     51

   18.6   Inducements.......................................................................     52

   18.7   Ownership or Use..................................................................     52

   18.8   Authorization.....................................................................     52

   18.9   Viruses...........................................................................     52

   18.10  Disabling Code....................................................................     52

   18.11  Year 2000.........................................................................     53

   18.12  Disclaimer........................................................................     53

19.  INSURANCE..............................................................................     53

20.  INDEMNITIES............................................................................     53

   20.1   Indemnity by Contractor...........................................................     53

   20.2   Indemnity by AIL..................................................................     54

   20.3   Infringement......................................................................     55

   20.4   Indemnification Procedures........................................................     55

   20.5   Subrogation.......................................................................     56

21.  LIABILITY..............................................................................     56

   21.1   General Intent....................................................................     56

   21.2   Liability Restrictions............................................................     56

   21.3   Force Majeure.....................................................................     57

   21.4   Excusable Delay...................................................................     58

22.  DISPUTE RESOLUTION.....................................................................     58

   22.1   Informal Dispute Resolution.......................................................     58

   22.2   Arbitration.......................................................................     59

   22.3   Injunctive Relief.................................................................     59
</TABLE>

                                       iv
<PAGE>   6

<TABLE>
<S>                                                                                             <C>
   22.4   Continued Performance.............................................................     59

   22.5   Venue and Jurisdiction............................................................     60

23.  TERMINATION............................................................................     60

   23.1   Termination for Cause.............................................................     60

   23.2   Termination for Convenience.......................................................     61

   23.3   Effect of Termination for Cause...................................................     62

   23.4   Termination/Expiration Assistance.................................................     62

   23.5   Appropriate Remedies..............................................................     63

24.  GENERAL................................................................................     64

   24.1   Binding Nature and Assignment.....................................................     64

   24.2   Conditional Assignment of Subcontracts............................................     64

   24.3   Entire Agreement..................................................................     64

   24.4   Compliance with Laws and Standards................................................     64

   24.5   Notices...........................................................................     65

   24.6   Counterparts......................................................................     65

   24.7   Relationship of Parties...........................................................     65

   24.8   Severability......................................................................     66

   24.9   Consents and Approval.............................................................     66

   24.10  Waiver of Default; Cumulative Remedies............................................     66

   24.11  Survival..........................................................................     66

   24.12  Public Disclosures................................................................     66

   24.13  Third Party Beneficiaries.........................................................     67

   24.14  Amendment.........................................................................     67

   24.15  Incorporation by Reference and Order of Precedence................................     67

   24.16  Covenant Against Pledging.........................................................     67

   24.17  Security Interest.................................................................     68

   24.18  Governing Law.....................................................................     68

   24.19  Covenant of Good Faith............................................................     68

   24.20  Lender Assurances.................................................................     68
</TABLE>

                                       v
<PAGE>   7

----------------------
*** Certain confidential information has been omitted and filed with the
Securities and Exchange Commission pursuant to a Request for Confidential
Treatment.

                                LIST OF SCHEDULES

   1.     Target Countries
   2.     Milestone and Payment Schedule
   3.     Statement of Work
   4.     Wholesale Prices for Terminals
   5.     Development Termination Liability
   6.     Installed Terminal Quantity
   7.     Marketing Obligations
   8.     Form of Service Provider Agreement
   9.     Countries that contain Contractor and Subcontractor Facilities
   10.    Escrow Agreement
   11.    Key Contractor Personnel
   12.    List of Approved Subcontractors
   13.    Service Standards
   14.    Contractor Rates
   15.    Extended Warranty Option
   16.    Warranty Procedures
   17.    Post-Warranty Support and Repair Obligations
   18.    Seed Order Delivery Requirements

                                       vi
<PAGE>   8

             TERMINAL DEVELOPMENT, PRODUCTION AND PURCHASE AGREEMENT

                                 BY AND BETWEEN

                           ASTROLINK INTERNATIONAL LLC

                                       AND

                                  VIASAT, INC.

        This Terminal Development Production and Purchase Agreement (including
those Schedules and Attachments attached hereto, the "Agreement"), effective as
of the Effective Date, is entered into by and between Astrolink International
LLC, a Delaware corporation with offices located at 6701 Democracy Boulevard,
Suite 1000, Bethesda, MD 20817 ("AIL"), and ViaSat, Inc., a Delaware corporation
with offices located at 6155 El Camino Real, Carlsbad, California 92009
("Contractor"). As used in this Agreement, "Party" means either AIL or
Contractor, as appropriate, and "Parties" means AIL and Contractor. The Parties
agree that the following terms and conditions shall apply to the products and
services to be provided by Contractor under this Agreement in consideration of
certain payments to be made by AIL.

        The Parties, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, agree as follows:

1.      BACKGROUND AND OBJECTIVES

1.1     BACKGROUND.

        This Agreement is being made and entered into with reference to the
        following:

        (a)     AIL has determined to implement a Ka-band, switched-processor
                payload, digital, multichannel, satellite switched networking
                system that includes various classes of ground Terminals (as
                defined below) satisfying the Acceptance Criteria (as defined
                below), and other terms and conditions of this Agreement to
                provide satellite telecommunications network services in various
                markets.

        (b)     Contractor is an established and well-known global electrical
                engineering, manufacturing and systems integration company
                (together with its Subcontractors), has particular expertise in
                telecommunications and terminal technology and desires to
                develop, produce and provide AIL with the Terminals for the AIL
                System (as defined below) and related services as specified in
                this Agreement.

1.2     OBJECTIVES.

        AIL and Contractor have agreed upon certain goals and objectives for
        this Agreement, including the following:

        (a)     Designing, developing, manufacturing and distributing the * * *
                Terminals in accordance with the terms hereof;

                                       1
<PAGE>   9

        (b)     Bringing the Terminals, which incorporate and meet the
                requirements of the SOW and the Acceptance Criteria, quickly and
                reliably to market;

        (c)     Establishing AIL and its Service Providers (as defined below) as
                recognized providers of services utilizing the AIL System and
                the Terminals;

        (d)     Ensuring that Contractor and Contractor's Subcontractors have in
                place all the research, development, manufacturing,
                technological and management skills necessary to design,
                develop, fabricate, assemble, install, integrate, support and
                maintain the Terminals;

        (e)     Creating a contractual relationship that is flexible and highly
                responsive to the needs of the Parties and provides a
                competitive solution in light of changes in the business
                environment, and advances in technology and methods of using
                technology;

        (f)     Aligning the capabilities and performance of the Terminals with
                the AIL System specifications, AIL's business requirements and
                Contractor's (including its Subcontractors') capabilities; and

        (g)     Establishing Contractor as a supplier of Terminals for use with
                the AIL System.

1.3     CONSTRUCTION AND INTERPRETATION.

        (a)     The provisions of Sections 1.1 and 1.2 are intended to be a
                general introduction to this Agreement and are not intended to
                expand the scope of the Parties' obligations under this
                Agreement or to alter the plain meaning of the terms and
                conditions of this Agreement and shall be used only as guidance
                to the Parties.

        (b)     Terms other than those defined in this Agreement shall be given
                their plain English meaning, and those terms, acronyms and
                phrases known in the satellite telecommunications technology
                products and services industries shall be interpreted in
                accordance with their generally known meanings.

        (c)     Unless the context otherwise requires, words importing the
                singular include the plural and vice-versa.

        (d)     References to an "Article," "Section" and "Subsection" shall be
                references to an article, Section, or subsection of this
                Agreement, unless otherwise specifically stated.

        (e)     References to this Agreement and the words "herein," "hereof,"
                "hereto," and "hereunder" and other words of similar import
                refer to this Agreement as a whole and not to any particular
                Article, Section or Subsection.

        (f)     The Article, Section and Subsection headings in this Agreement
                are intended to be for reference purposes only and shall in no
                way be construed to modify or restrict any of the terms or
                provisions of this Agreement.

        (g)     The word "including" and words of similar import (such as
                "include" and "includes") mean "including, but not limited to."

        (h)     A reference to "days" means calendar days, unless otherwise
                specifically stated in a reference.

                                       2
<PAGE>   10

2.      DEFINITIONS

2.1     CERTAIN DEFINITIONS.

        As used in this Agreement, the following defined terms shall have the
        meanings set forth below. Other capitalized terms used in this Agreement
        are defined in the context in which they are used and shall have the
        meanings there indicated.

        (a)     "Acceptance" or "Accepted" means, with respect to any Milestone
                or Terminal, written notification (except where AIL approval is
                not required by Section 6.2) from the AIL Contract Manager to
                the Contractor Contract Manager stating that such Milestone or
                Terminal has satisfied the applicable requirements set forth in
                Section 6.2.

        (b)     "Acceptance Criteria" means the criteria used to confirm that
                the Terminals, Documentation and Services meet the requirements
                of the Acceptance Test Plan or the SOW as appropriate.

        (c)     "Acceptance Testing" means the acceptance tests to be conducted
                in accordance with the procedures and timeframes set forth in
                the mutually agreed upon Acceptance Test Plan.

        (d)     "Affiliate" means, with respect to any entity, any other entity
                Controlling, Controlled by or under common Control with such
                entity. "Affiliate" does not include any Competitor.

        (e)     "AIL Background Information" means all Confidential Information
                and Joint Confidential Information of AIL or its licensors, in
                any form, furnished or made available directly or indirectly to
                Contractor by AIL or otherwise obtained by Contractor from AIL,
                including, without limitation, the SOW and AIL's market
                analysis, certification procedures, business model and
                AIL-proprietary algorithms and all Intellectual Property Rights
                related to any of the foregoing, developed prior to the
                Effective Date.

        (f)     "AIL Foreground Information" means all Confidential Information
                of AIL or its licensors, and any Joint Confidential Information,
                in any form, furnished or made available directly or indirectly
                to Contractor by AIL or otherwise obtained by Contractor from
                AIL and Confidential Information jointly owned by AIL and
                Contractor and all Intellectual Property Rights related to any
                of the foregoing, developed or acquired by AIL on or after the
                Effective Date.

        (g)     "AIL System" means the Ka-band satellites to be constructed,
                launched and successfully deployed in orbit together with the
                ground segment required to deliver broadband services, and as
                further described in the Statement of Work.

        (h)     * * *.

        (i)     * * *.

        (j)     * * *.

        (k)     "Comparable Terminal" means any ground-based terminal, both
                outdoor units and indoor units, developed and/or manufactured by
                Contractor or another AIL-authorized manufacturer for use with
                the AIL System that are substantially similar to or derivatives
                of the Terminals, and the associated equipment, software and
                documentation therefor.

                                       3
<PAGE>   11

        (l)     "Competitor" means a provider of a substantially comparable
                geosynchronous Ka-band, switched processor satellite system that
                provides services substantially comparable to those offered over
                the AIL System.

        (m)     "Contract Year" means any calendar year during the Term hereof.

        (n)     "Contractor Background Information" means all Confidential
                Information and Joint Confidential Information of Contractor or
                its licensors (excluding AIL's Confidential Information), in any
                form, furnished or made available directly or indirectly to AIL
                by Contractor or incorporated in or otherwise necessary to use
                or maintain the Terminals and Comparable Terminals, including
                the related Intellectual Property Rights.

        (o)     "Contractor Foreground Information" means the Confidential
                Information (and the Intellectual Property Rights appurtenant
                thereto) developed by Contractor hereunder and any Joint
                Confidential Information acquired by Contractor after the
                Effective Date, which shall not include any AIL Confidential
                Information or any Contractor Background Information.

        (p)     "Contractor Personnel" means employees of Contractor, including
                (1) any temporary-duty personnel and Key Contractor Personnel,
                and (2) Contractor's Subcontractors performing under this
                Agreement.

        (q)     "Control" and its derivatives means (i) with regard to any
                entity the legal or beneficial ownership, directly or
                indirectly, of such entity ordinarily having voting rights or
                (ii) with regard to any entity, the management control over such
                entity.

        (r)     "Dead on Arrival" means where any Terminal or component thereof
                is inoperative or fails to operate in accordance with the SOW at
                the time it is initially installed or fails to so operate during
                the * * * day period immediately following such initial
                installation.

        (s)     "Defect" means any failure of a Terminal, including any
                components thereof, to operate in conformance with the SOW and
                applicable Standards.

        (t)     "Documentation" shall include User Documentation,
                specifications, manuals, programmatic and test plans and
                procedures, reports, minutes and other media and documents
                pertaining to the performance, installation, training, use,
                operation and maintenance of each class of Terminal, all of the
                above as set forth in the Statement of Work.

        (u)     "Effective Date" means the date that this Agreement, as executed
                by the Parties, is approved the Board of Directors of AIL. AIL
                shall use all reasonable efforts to obtain such approval as soon
                as practicable after execution of this Agreement by the Parties,
                and AIL shall provide prompt written notice to Contractor of
                such approval.

        (v)     "Equipment" means the ground-based hardware, cabling, spare or
                replacement parts for Terminals and other non-Software
                components associated with the Terminals that may be purchased
                by AIL from Contractor under this Agreement.

        (w)     "Firmware" means the computer programs that are stored in
                machine executable form within non-volatile memory and operate
                embedded processes within the equipment.

        (x)     "IDU" means the indoor component of Terminal, as described in
                the SOW.

                                       4
<PAGE>   12

        (y)     "Intellectual Property Rights" means any and all rights in and
                with respect to patents, copyrights, Confidential Information,
                know-how, trade secrets, moral rights, contract or licensing
                rights, confidential and proprietary information protected under
                contract or otherwise under law, and other similar rights or
                interests in intellectual or industrial property and all
                registrations and applications for registration therefor.

        (z)     "Joint Confidential Information" means information that has been
                independently developed, licensed or otherwise acquired by each
                Party without breach of this Agreement, and excluding
                Confidential Information of a Party that is provided to the
                other Party or its agents or Subcontractors hereunder, that
                would qualify as Confidential Information of each Party, but for
                the exclusions to Confidential Information set forth in
                Subsections 16.3(c)(3), (4) or (5) below.

        (aa)    "Lien" means any lien (including subcontractor and other
                mechanic liens), imperfection in title, security interest,
                claim, charge, restriction or other encumbrance.

        (bb)    * * *.

        (cc)    "Losses" means all costs, expenses, liabilities and damages
                reasonably incurred and payable under any settlement, litigation
                or final judgment, and all related reasonable costs and
                expenses, including legal fees and disbursements and costs of
                investigation, expert fees, fines, interest and penalties.

        (dd)    "Mark" means any trademark, service mark, trade name, domain
                name, logo or other indicia of source or origin of a product or
                service.

        (ee)    "Material Subcontract" and "Material Subcontractor" have the
                respective meanings given in Section 12.9(b).

        (ff)    "Milestone Payment" means a payment made by AIL to Contractor in
                accordance with Section 15.2 below upon Acceptance by AIL of the
                corresponding Milestone.

        (gg)    "Milestone and Payment Schedule" has the meaning given in
                Section 5.3 and is attached hereto as Schedule 2.

        (hh)    "ODU" means the outdoor component of Terminal, as described in
                the SOW.

        (ii)    "Order" means a purchase order issued to Contractor for the
                purchase of Terminals.

        (jj)    "Prime Rate" means the rate identified as the prime rate offered
                by The Chase Manhattan Bank (or its successor), as published in
                the Wall Street Journal from time to time.

        (kk)    "Principal Subcontractor" means each of * * * and * * *.

        (ll)    "Seed Order" means the first group of production Terminals
                ordered by AIL from Contractor hereunder, as described in
                Section 8.3 below.

        (mm)    "Service Provider" means persons or entities that pursuant to
                written agreement with AIL resell the Terminals and Comparable
                Terminals, and/or services provided by the AIL System, Terminals
                and other related software and equipment to Users thereof.

                                       5
<PAGE>   13

        (nn)    "Services" means (i) the services provided by Contractor
                pursuant to this Agreement, and (ii) services described in any
                Order, and (iii) any services not specifically described in (i)
                or (ii) that are required or appropriate for the proper
                performance and provision of those services described in (i) or
                (ii).

        (oo)    "Software" means the machine readable computer code used to
                instruct a processor to perform a task or series of tasks in
                object code form, including Firmware, files, databases,
                interfaces, documentation and other materials related thereto)
                necessary to make the Terminals achieve applicable requirements
                of the SOW, which computer code shall be supplied and licensed
                by Contractor to AIL for use pursuant to this Agreement
                (including any third party Software sublicensed by Contractor
                hereunder), as such Software is revised, updated, corrected and
                enhanced from time-to-time and provided to AIL pursuant to this
                Agreement.

        (pp)    "Source Code" means the human readable code written in a high
                level language, including source code listings as then
                commented, system and program flowcharts, and such other
                components, programs and documents to fully utilize, modify and
                maintain the Software consistent with standards set forth
                herein, including all necessary support routines, all of which,
                where applicable, shall be on media able to be read and
                processed.

        (qq)    "Specifications" means those functional, performance and other
                requirements and documents set forth or referenced (as
                applicable) in the Statement of Work, as may be amended from
                time to time.

        (rr)    "Standards" shall include:

                (i)     all applicable federal, state, local and foreign laws,
                        regulations, ordinances and codes, including export and
                        foreign controls, the Foreign Corrupt Practices Act, the
                        U.S. Export Administration Act, EPA, OSHA, ETSI, ITU,
                        and foreign import and export laws and regulations, as
                        well as any applicable requirements of the FCC,
                        including the FCC Blanket Licensing Rules (as to * * *
                        Terminals only), and all applicable telecommunications
                        and safety regulations (including RF human exposure
                        emission requirements, harmful interference standards,
                        labeling and suppression of radio frequencies and
                        radiation to specified levels, and ITU Recommendations
                        and Radio Regulations of governing bodies of the
                        countries set forth in Schedule 1), all of which as may
                        be amended from time to time. Outside the U.S., this
                        further includes compliance with applicable ETSI
                        standards and any other applicable domestic or regional
                        regulations.

                (ii)    all applicable industry standards, domestic and foreign,
                        including (A) Underwriters Laboratory, CE, EIA/TIA,
                        ANSI, National Electrical Code and NEBS (1, 2 and 3),
                        all as may be amended from time to time; and (B) other
                        standards as may be set forth in the Statement of Work.

                (iii)   In addition, the * * * Terminals shall comply with the
                        ERC Decisions for blanket licensing.

        (ss)    "Statement of Work" or "SOW" means the documents attached hereto
                as Schedule 3, which shall include by this reference all
                documents, specifications and tables, including without
                limitation the Specifications, contained therein and referenced
                thereby, as may be amended from time to time by mutual agreement
                of the Parties.

                                       6
<PAGE>   14

        (tt)    "Subcontractor" means the Principal Subcontractors and those
                other contractors consultants, suppliers and providers used by
                Contractor under this Agreement.

        (uu)    "Technical Materials" means the technical, engineering and
                design information and specifications of any kind relating to
                the Terminals, whether written or non-written, including Source
                Code, Software, Software specifications, functional
                specifications, interface specifications, hardware and circuit
                diagrams, mask works, schematic diagrams, vellums, third party
                supplier information (including name, address, and parts
                numbers), and associated documentation.

        (vv)    "Terminal" means any ground-based terminal, both the ODU and the
                IDU, designed, developed and/or manufactured in accordance with
                the SOW and applicable Standards, for use with the AIL System
                and the associated Equipment, Software and Documentation, and
                all as updated, revised or improved from time-to-time and
                provided by Contractor to AIL, its Service Providers and/or
                Users.

        (ww)    * * * is any country identified as such in Schedule 1.

        (xx)    * * * is any country identified as such in Schedule 1.

        (yy)    * * * is any country not identified in Schedule 1 as a * * *.

        (zz)    "Type Approval" is the process within a country through which it
                is determined that radio and technical equipment (including the
                Terminals) complies with certain essential technical
                requirements and relevant administrative provisions as defined
                by cognizant governmental and regulatory agencies and can
                therefore be sold on the market of that country. Type Approval
                does not include satellite-specific regulatory requirements such
                as landing rights or authorization to transmit.

        (aaa)   "United States" or "U.S." means the United States of America.

        (bbb)   "User" means a person or entity that purchases or utilizes a
                Terminal or Comparable Terminal for its own purposes and not for
                resale or distribution.

        (ccc)   "User Documentation" means the Documentation provided with each
                Terminal and Comparable Terminal, such as manuals, guides and
                instructions relating to the use, operation and installation of
                the applicable Terminal or Comparable Terminal.

        (ddd)   "Virus" means: (i) program code, programming instruction or set
                of instructions intentionally constructed with the ability to
                damage, interfere with or otherwise adversely affect computer
                programs, data files or operations; or (ii) other code typically
                designated to be a virus (including worms, Trojan horses and
                similar items).

        (eee)   "Warranty" means any of the representations, covenants and
                warranties set forth in this Agreement.

        (fff)   "Wholesale Price" means the maximum price of a Terminal to AIL
                and its Service Providers during the applicable Contract Year,
                FOB Contractor's designated site, as set forth in Schedule 4
                attached hereto.

        (ggg)   "Year 2000 Compliant" means the ability of Terminals, when used
                in accordance with its associated documentation, to be capable
                of correctly and unambiguously processing,

                                       7

<PAGE>   15
                recognizing, providing, recording and receiving date data within
                and between the twentieth and twenty-first centuries, including
                proper identification of the century and leap years, without
                resulting in or causing logical or mathematical inconsistencies,
                processing errors, loss of functionality or performance or other
                failures.

2.2     OTHER TERMS.

        Other terms used in this Agreement are defined in the context in which
        they are used and have the meanings there indicated. A cross-reference
        for such terms is set forth below:

<TABLE>
<CAPTION>
               DEFINED TERM                                    LOCATION
               ------------                                    --------
<S>                                                            <C>
               Acceptance Test Plan                            Section 6.2(a)

               AIL Contract Manager                            Section 12.4(a)

               Annual Forecast Number                          Section 14.2(a)

               Annual Minimum Capacity                         Section 6.7(b)

               Confidential Information                        Section 16.3(a)

               Contractor Contract Manager                     Section 12.4(a)

               Cost-Reduction Development                      Section 5.7

               Development License                             Section 10.1(a)

               * * *                                           Section 5.5

               Development Phase Liability Date                Section 23.2(b)

               Disabling Code                                  Section 18.10

               Early Default                                   Section 5.5

               Escrow Agreement                                Section.6(a)

               Escrowed Material                               Section 10.6(a)

               Evaluating Vendor                               Section 12.3(a)

               Excusable Delay                                 Section 21.4

               Extended Warranty Period                        Section 18.3

               Final Statement                                 Section 23.2(c)

               Force Majeure Event                             Section 21.3(a)
</TABLE>

                                       8
<PAGE>   16

<TABLE>
<S>                                                            <C>
               General Performance Award                       Section 13.7

               Initial Payment                                 Section 15.1

               Initial Term                                    Section 4

               Key Contractor Personnel                        Section 12.5(a)

               Material Subcontract                            Section 12.9(b)

               Material Subcontractor                          Section 12.9(b)

               Milestone                                       Section 5.3

               Milestone Date                                  Section 5.3

               Minimum Quantity Purchase Commitment (MQPC)     Section 8.4

               Notice of Election                              Section 20.4

               NRE Payments                                    Section 15.2

               On-Site Representative                          Section 12.10

               Pattern Defect                                  Section 18.3(c)(x)

               Production Acceptance Test Plan                 Section 6.2

               * * *                                           Section 6.8

               Proposing Vendor                                Section 12.3(a)

               Quality Assurance Program                       Section 6.4

               Reduced-Cost Module                             Section 5.7

               Release Conditions                              Section 10.6(a)

               Service Provider Terms                          Section 8.2

               Service Standard                                Section 13.1

               Term                                            Section 4

               Terminal IP                                     Section 23.3(a)

               Termination Date                                Section 23.2(a)
</TABLE>

                                       9
<PAGE>   17

<TABLE>
<S>                                                            <C>
               Termination/Expiration Assistance               Section 23.4

               Warranty Period                                 Section 18.3
</TABLE>

3.      SCOPE AND STRUCTURE

3.1     GENERAL SCOPE.

        This Agreement (including the SOW and other schedules hereto) provides
        the terms and conditions under which Contractor will design, develop,
        document, test, manufacture, deliver and support the Terminals and
        market, sell, distribute, and deliver such Terminals to AIL and Service
        Providers, and under which AIL and Service Providers may receive
        Terminals and Services from Contractor for use with the AIL System
        including Services associated with the Warranty Period and Extended
        Warranty Period, from Contractor. For Services outside of the U.S.,
        Contractor shall provide Services on a country-by-country basis as
        requested by AIL. AIL shall from time to time provide Contractor with
        its projected schedule of introduction of the AIL Service into the
        countries set forth in Schedule 1.

3.2     UNIQUE REQUIREMENTS.

        The Parties acknowledge and agree that AIL has unique requirements and
        Contractor has solutions regarding the Terminals and Services to be
        provided by Contractor hereunder. In this regard, to the extent not
        already provided for in this Agreement, the Parties agree to negotiate
        in good faith in accordance with the procedures provided in Sections
        12.1 and 12.2 hereof to provide the maximum flexibility in meeting AIL's
        particular Terminal and Service requirements, as proposed by AIL during
        the Term.

3.3     COORDINATION WITH AIL PROJECT TEAMS.

        Contractor agrees, as a part of the work under this Agreement, to
        coordinate with all other members of AIL's Integrated Product Team or
        Teams (e.g., Space Segment, Ground Segment, and Systems Engineering and
        Integration), as the case may be, as described in Section 3.4.4 of the
        SOW to support the development and fielding of a fully functional AIL
        System. Contractor acknowledges that it bears the responsibility to
        design and construct completely integrated and functioning Terminals
        based on information as set forth in the SOW provided by AIL to
        Contractor under this Agreement. If Contractor becomes aware of any
        material information during the Term which differs from such information
        provided to Contractor under this Agreement, Contractor shall promptly
        notify AIL in writing.

3.4     CO-EXCLUSIVITY.

        (a)     For each of the * * * Terminal, AIL shall be entitled to provide
                no more than one additional vendor with a right and license to
                manufacture or have manufactured, such Terminal for use in
                connection with the AIL System. AIL may exercise the right to
                authorize such additional co-exclusive vendor at any time. Such
                restriction on AIL's right to procure and/or license such
                manufacturing rights from additional vendors with respect to the
                Terminals shall expire upon the later to occur of (1) the
                purchase from Contractor and the other co-exclusive vendor by
                and delivery to AIL, its Service

                                       10
<PAGE>   18

                Providers and/or Users of 200,000 Terminals (including the Seed
                Order of * * * Terminals and * * * Terminals or Comparable
                Terminals) or (2) the * * * anniversary of the commencement of
                commercial service of the second AIL satellite.

        (b)     In the event AIL terminates its contractual relationship with
                such other co-exclusive vendor for a particular class of
                Terminals or for all classes of Terminals during the
                Co-Exclusivity Period, AIL shall be permitted to license not
                more than one additional vendor to manufacture such class of
                Terminal or all classes of Terminals, as the case may be, during
                the remainder of the Co-Exclusivity Period.

        (c)     In the event such replacement vendor receives design and/or
                manufacturing data prepared by the terminated vendor, (i) such
                replacement vendor will be required to pay AIL a commercially
                reasonable amount for the AIL Foreground Information and
                Confidential Information, foreground information and background
                information from the terminated vendor required to manufacture
                the Terminals, and/or (ii) AIL shall provide a commercially
                appropriate increase in the amount payable to Contractor so as
                to avoid putting Contractor at a material competitive
                disadvantage with respect to the replacement vendor.

        (d)     The rights and obligations described in this Section 3.4 shall
                be known as the "Co-Exclusivity Right" and the term of
                Contractor's Co-Exclusivity Right shall be known as the
                "Co-Exclusivity Period". AIL may terminate Contractor's
                Co-Exclusivity Right upon the occurrence of certain events as
                provided herein. If AIL elects to terminate Contractor's
                Co-Exclusivity Right in accordance herewith, AIL may terminate
                the Co-Exclusivity Right as to any class or all classes of
                Terminals, in its sole discretion.

3.5     REPLACEMENT OF CO-EXCLUSIVE VENDOR.

        If, prior to the expiration or termination of the Co-Exclusivity Period,
        AIL is released from its exclusivity obligation with the other
        co-exclusive vendor of a class of Terminal, Contractor shall have right
        of first offer to provide the estimated lost volume to meet the
        production needs of AIL, Service Providers and Users in accordance with
        the terms of this Agreement. AIL's obligation to award Contractor such
        estimated lost volume shall be contingent on Contractor demonstrating to
        AIL's reasonable satisfaction that Contractor has production capacity
        and capability sufficient for the timely production of such estimated
        lost volume and Contractor's satisfactory performance of its obligations
        hereunder. If Contractor does not exercise such right of first offer or
        demonstrate such production capacity and capability to AIL's reasonable
        satisfaction or has not satisfactorily performed its obligations
        hereunder, AIL may add a third * * * Terminal manufacturing licensee, as
        the case may be, to replace the terminated co-exclusive vendor.

3.6     NON-EXCLUSIVITY.

        (a)     It is expressly understood and agreed that other than the
                purchase commitments made by AIL in Sections 8.3 and 8.4
                hereunder, this Agreement does not require AIL to purchase or
                order any Terminal, including any components thereof, or
                Services from Contractor and, except as provided in Section 3.4
                and Section 3.5 above, does not grant to Contractor an exclusive
                privilege to sell or otherwise provide to AIL, its Service
                Providers or Users any or all of the Terminals, including any
                components thereof or Services of the type described in this
                Agreement.

                                       11
<PAGE>   19

        (b)     Notwithstanding the foregoing, AIL agrees not to enter into an
                agreement without Contractor's written consent with any vendor
                of CSP gateways that would preclude Contractor from developing
                and/or selling CSP gateways for use with the AIL System;
                provided, however, that Contractor responds to AIL's request for
                proposal or information for such CSP gateways and Contractor's
                response is determined by AIL to be satisfactory and
                competitive.

        (c)     Contractor agrees that purchases by AIL under this Agreement
                shall not require AIL to continue any level of such purchases,
                except as expressly provided herein. AIL assumes no liability
                for Terminals or Services produced, processed, rendered or
                shipped in excess of the amounts specified in an Order submitted
                pursuant to this Agreement. Estimates or forecasts furnished by
                AIL or its Service Providers to Contractor shall not constitute
                commitments.

3.7     STRATEGIC RELATIONSHIP.

        The Parties have agreed to the following:

        (a)     Additional Products and Services. If AIL wishes to procure
                products or services from Contractor during the Term in addition
                to the Terminals and Services hereunder, Contractor shall in
                good faith consider the development and manufacture of new
                products and services, including without limitation, terminals
                for residential use, and give due consideration in the pricing
                thereof to existing and future volumes of business between AIL
                and Contractor.

        (b)     Roof Rights. If requested by AIL, Contractor shall grant to AIL,
                where possible, roof and interior space and conduit rights for
                deployment of Terminals pursuant to industry standard roof right
                lease terms. In addition, Contractor shall assist AIL in
                obtaining such rights. Nothing in this Subsection shall obligate
                Contractor to violate any of its existing real property or roof
                right lease agreements.

        (c)     Executive Involvement. For the first six (6) months after the
                Effective Date, principal senior executives of each Party and of
                each Principal Subcontractor (and thereafter senior management
                (levels and titles to be agreed)) shall meet monthly to discuss
                issues affecting work hereunder, including key issues affecting
                work under this Agreement, such as design, development, testing
                and production of Terminals, development and implementation of
                new technologies and products, proposed regulatory and/or
                industry changes, marketing efforts and such other issues as the
                Parties may desire. Quarterly after the Effective Date and
                during the Term, the Parties shall meet to discuss their plans
                and objectives with respect to enhancing the Terminals and the
                development of new Terminal-related and AIL System-related
                solutions. As part of such discussion (i) AIL shall share with
                Contractor its plans for potential future service offerings,
                potential market demand and anticipated product needs and (ii)
                Contractor shall share with AIL its plans regarding product
                enhancements and evaluations as well as new products under
                development. Contractor agrees that it will give due
                consideration to AIL's requirements in evolving the Terminals
                and other products and will give due consideration to
                reprioritizing scheduled product enhancements to be consistent
                with AIL's business needs.

                                       12
<PAGE>   20

4.      TERM

        The term of this Agreement shall begin upon the Effective Date and shall
        expire upon the * * * anniversary of in-orbit acceptance of the fourth
        satellite of the AIL System or * * *, whichever is sooner, (the "Initial
        Term"), unless earlier terminated or extended in accordance with this
        Agreement. Prior to the expiration of the Initial Term, the Parties may
        agree to extend the term of this Agreement, upon mutually agreeable
        terms, in * * * renewal periods. The Initial Term, as earlier terminated
        or extended, shall be known as the "Term".

5.      TERMINAL DEVELOPMENT

5.1     AIL RESPONSIBILITIES.

        In the SOW, AIL has provided Contractor with SOW describing the * * *
        Terminals, including interface specifications for the AIL System. AIL
        agrees to provide such other AIL Background Information and AIL
        Foreground Information to Contractor, as set forth in Section 10.1, as
        may be reasonably required for Contractor to perform its obligations
        hereunder.

5.2     CONTRACTOR RESPONSIBILITIES.

        Contractor shall be responsible for the performance of the work
        described in the SOW, and shall perform such work in accordance with the
        SOW, for the design and development of Terminals, including services,
        responsibilities, equipment and other products and materials not
        specifically described in the SOW that are incidental to and reasonably
        required for the proper provision of such work, all in accordance with
        this Agreement. Based on the information contained in the SOW and
        elsewhere in this Agreement, Contractor shall produce detailed design
        documents for the Terminals, and such design documents shall fully
        describe the Terminals. Contractor also shall develop, publish and
        provide to AIL, and as applicable its Service Providers and Users,
        appropriate, accurate and complete Documentation as set forth in Section
        10.5 herein. In addition, Contractor shall provide copies of all
        Documentation to AIL in electronic form.

5.3     MILESTONE AND PAYMENT SCHEDULE.

        The Parties have agreed upon a detailed critical milestone schedule and
        payment plan (the "Milestone and Payment Schedule") based on the SOW.
        Contractor will meet all milestones set forth in the Milestone and
        Payment Schedule, including meeting the milestones (each, a "Milestone")
        within the corresponding dates set forth therein (each, a "Milestone
        Date").

5.4     FAILURE TO ACHIEVE MILESTONES.

        If (i) Contractor fails to achieve, or (ii) AIL has a reasonable basis
        to believe Contractor will be unable to achieve, a Milestone by the
        corresponding Milestone Date, (1) Contractor will be required to develop
        a correction plan demonstrating Contractor can recover from Contractor's
        failure to achieve such Milestone and present said plan to AIL within
        ten (10) business days after AIL's request for such a correction plan;
        (2) the Parties will work in good faith to devise a plan of action to
        achieve the Milestone by the specified Milestone Date or arrive at a
        mutually acceptable revised schedule within ten (10) business days after
        AIL's receipt of Contractor's plan; and (3) Contractor's performance
        will be measured against the schedule in such plan of action. If the
        Parties fail to arrive at a mutually acceptable revised schedule within
        ten (10) business days after AIL's receipt of Contractor's correction
        plan or if Contractor fails to make adequate progress towards the agreed
        revised schedule, AIL may at its sole discretion

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<PAGE>   21

        (x) terminate the Co-Exclusivity Right described in Section 3.4 above
        following notice to Contractor and a thirty (30) day cure period or (y)
        terminate this Agreement in accordance with Section 23.1(a) hereof.

5.5     * * *

        Contractor acknowledges that time is of the essence with respect to the
        Milestone Dates and timely delivery and implementation of the Seed Order
        Terminals. If Contractor fails to meet the Milestone Date for Milestone
        Event 10 (* * *), except in the case of Excusable Delay, AIL will incur
        substantial damages which are and will be difficult to determine. Any
        such failure with respect to Milestone Event 10 is referred to herein as
        an "Early Default". Therefore, in addition to the termination rights
        reflected in Article 23.1(a), upon AIL's written demand, Contractor will
        * * *.

5.6     PERMITS.

        Contractor shall identify, procure and maintain throughout the Term all
        applicable federal, state, county, local and foreign licenses,
        approvals, inspections, permits and certificates necessary to perform
        its obligations under this Agreement, including all export and import
        licenses and permits. AIL will provide Contractor with reasonable
        assistance in procuring and maintaining such permits. Notwithstanding
        the foregoing, AIL shall be responsible for procuring and maintaining
        those export licenses and other applicable licenses and permits required
        for the export of technical data and other information related to AIL's
        satellites and the provision of the services offered through the AIL
        System. Contractor will provide AIL reasonable assistance in procuring
        and maintaining such licenses.

5.7     COST-REDUCTION DEVELOPMENTS.

        The Parties acknowledge and agree that the retail price of the Terminals
        is fundamental to market acceptance thereof and key to the Parties'
        mutual profitability hereunder. To that end, Contractor will identify,
        develop and produce specific Terminal cost reduction techniques,
        technologies and methods that may be used across * * * Terminals to
        reduce the wholesale cost of the Terminals (each such technique,
        technology or method, a "Cost-Reduction Development"). As set forth in
        Section 15.2 below, AIL will pay to Contractor NRE Payments upon
        Contractor's achievement of various Milestones, including delivery of
        the Cost-Reduction Developments identified in the Milestone and Payment
        Schedule. AIL shall have full visibility and approval rights over
        payments made in respect of Cost-Reduction Developments. The modules
        that shall be the subject of the Cost-Reduction Developments are the * *
        * and the * * * (each, a "Reduced-Cost Module").

5.8     SALE OF REDUCED-COST MODULES.

        Contractor agrees to offer for sale to AIL Reduced-Cost Modules at a
        wholesale price per module that is commensurate with the then-current
        wholesale price to AIL of such Terminal. AIL may purchase such
        Reduced-Cost Modules * * *. AIL's ability to purchase Reduced-Cost
        Modules shall survive the termination or expiration of this Agreement
        for any reason, for so long as Contractor continues to manufacture the
        Reduced-Cost Modules. If Contractor elects to discontinue manufacturing
        any Reduced-Cost Module, Contractor agrees to license to AIL or AIL's
        designated manufacturer, all Intellectual Property Rights reasonably
        necessary or appropriate to manufacture such Reduced-Cost Modules. In
        addition, Contractor agrees to

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<PAGE>   22

        provide any and all such Confidential Information of Contractor and its
        licensors as may be reasonably required or appropriate to manufacture
        such Reduced-Cost Modules.

6.      ACCEPTANCE AND PRODUCTION

6.1     CONTRACTOR RESPONSIBILITIES.

        Contractor shall be responsible for performing and shall perform the
        Production Work in accordance herewith. The "Production Work" is the
        Work described in the SOW and herein, as the case may be, for the
        manufacturing and delivery of Terminals, including production setup;
        production cycle; interface with Service Providers; obtaining Type
        Approval as set forth in Section 6.6; low rate and high rate production
        runs; software support; drawings and documentation; quality program
        (including product assurance program; parts, materials and processes
        management; and test and material discrepancy reviews), and logistics,
        training, manuals and operations support.

6.2     ACCEPTANCE TESTING.

        (a)     Acceptance of Development Deliverables. Acceptance of
                deliverable items required by the SOW shall be in accordance
                with the following.

                (i)     For brassboard, prototype and preproduction Terminals,
                        Contractor shall provide an Acceptance Test Plan to AIL
                        for approval at least sixty (60) days prior to scheduled
                        commencement of testing. Contractor shall be obligated
                        to conduct acceptance tests in accordance with the
                        approved Acceptance Test Plan which demonstrate that the
                        deliverable item meets the SOW and the Acceptance
                        Criteria, and applicable Standards. Each such Acceptance
                        Test Plan shall include the scope, schedule, test
                        equipment, Acceptance Criteria, the parameters to be
                        tested, and the definition of successfully achieving the
                        test and failing the test, as well as other mutually
                        agreed-upon parameters. Testing results must be based on
                        objective criteria. The Acceptance Test Plan for each
                        class of Terminal shall include the items specified in
                        Section 3.3 of the SOW and shall demonstrate full
                        compliance with the applicable provisions of the SOW.

                (ii)    For deliverable items which are not equipment or
                        software, such as Documentation, and design reviews, AIL
                        will base Acceptance upon content of the deliverable
                        meeting the applicable requirements delineated in the
                        SOW.

        (b)     Acceptance of Production Terminals.

                (i)     First Production Run Acceptance Testing. At least 90
                        days prior to scheduled completion of the First
                        Production Run, Contractor shall provide a First
                        Production Run Acceptance Test Plan to AIL for approval.
                        Contractor shall be obligated to conduct acceptance
                        tests which demonstrate that the first production run
                        units meet the SOW and the Acceptance Criteria and
                        applicable Standards. The Acceptance Test Plan shall
                        include the scope, schedule, test equipment, Acceptance
                        Criteria, the parameters to be tested, and the
                        definition of successfully achieving the test and
                        failing the test, as well as other mutually agreed-upon
                        parameters. Testing results must be based on objective
                        criteria. The Acceptance Test Plan for each class of
                        Terminal shall demonstrate full compliance with the
                        applicable provisions of the SOW.

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<PAGE>   23

                (ii)    Production Acceptance Testing. At the Production
                        Readiness Review, Contractor shall present, for AIL
                        approval, the proposed Acceptance Tests Plan for
                        Production Terminals (the "Production Acceptance Test
                        Plan"). Contractor shall be obligated to conduct
                        acceptance tests which demonstrate that each production
                        unit meets the SOW and the Acceptance Criteria and
                        applicable Standards. The Production Acceptance Test
                        Plan shall include the scope, schedule, test equipment,
                        Acceptance Criteria, the parameters to be tested, and
                        the definition of successfully achieving the test and
                        failing the test, as well as other mutually agreed-upon
                        parameters. Testing results must be based on objective
                        criteria. The Production Acceptance Test Plan for each
                        class of Terminal shall demonstrate compliance with the
                        applicable provisions of the SOW.

6.3     ACCEPTANCE TESTING FAILURES, CURE PERIODS AND REMEDIES.

        (a)     For Development Deliverables. Problems and Acceptance Test
                Failures of Development Items are to be resolved in accordance
                with the SOW, Section 3.5.

        (b)     For Production Terminals. Terminals that fail testing in
                accordance with the Production Acceptance Test Plan will be
                rejected by AIL. Contractor shall not ship such Terminals and
                Contractor will not be entitled to receive payment for such
                Terminals until Contractor corrects all items which failed and
                successfully completes a repeat Production Acceptance Test.

        (c)     AIL System Deficiencies. In the event that Acceptance Testing
                demonstrates that the AIL System does not provide the
                functionality and performance required by AIL in the SOW,
                notwithstanding that such deficiency is not the result of a
                defect in the Terminals, the applicable provisions of the SOW or
                the Terminal design documentation, Contractor shall cooperate
                with AIL to implement, on an accelerated basis, adjustments and
                modifications to the design and production of the Terminals to
                achieve the required functionality and performance. Such actions
                may include retrofits, accelerated second-generation design and
                production and such other means as may be required to produce
                the required functionality and performance in the most
                expeditious and cost-effective manner. The Parties will agree to
                a reasonable basis for compensating Contractor for performance
                of such activities.

6.4     QUALITY ASSURANCE.

        Prior to the start of production of Terminals, the Parties shall develop
        and agree upon a written quality assurance program and procedures (the
        "Quality Assurance Program"), and Contractor shall implement such
        Quality Assurance Program to produce Terminals, such that the Terminals
        perform and associated Services are consistently performed in accordance
        with the terms of this Agreement and at a level consistent with
        generally accepted best industry standards and practices. Contractor
        shall maintain compliance with the ISO 9001 series approach to quality
        in the performance of its obligations under this Agreement. If
        Contractor fails to implement or follow the Quality Assurance Program,
        Contractor agrees that AIL may require Contractor to cease production of
        Terminals or Comparable Terminals until Contractor meets the
        requirements of the Quality Assurance Program. If AIL reasonably
        believes that the quality of the Terminals has diminished or that the
        Terminals do not comply with the applicable provisions of the SOW or
        applicable Standards, AIL will provide written notification to
        Contractor reasonably describing the problem and Contractor will
        investigate the problem and report its findings and

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<PAGE>   24

        conclusions to AIL in writing. If the Parties determine that a problem
        exists, Contractor agrees to develop and implement a corrective action
        plan to resolve the problem. If the Terminals do not comply with the
        applicable Standards solely due to constraints of the AIL System, the
        Parties will work together to determine if the Terminals can be modified
        to meet the applicable Standards, in accordance with Section 12.3(b)
        below. If the Terminals cannot be modified to comply with the applicable
        Standards, or if the Parties elect not to modify the Terminals to meet
        such Standards, Contractor shall not be responsible for meeting the
        Standards to the extent that the AIL System causes the non-compliance.

6.5     CERTIFICATION.

        Upon Contractor's satisfactory completion of the First Production Run
        Acceptance Tests, including a written statement provided by Contractor
        to AIL certifying the compliance of the Terminals with the SOW, AIL
        shall certify Contractor as an AIL-certified supplier of Terminals. In
        addition, AIL must certify that all Software, Software Updates and other
        Terminal upgrades and updates produced by Contractor or any
        Subcontractor for use in or with the Terminals or Comparable Terminals
        meets the SOW without adverse effect to the Terminals or the AIL System.
        At least 30 days prior to introduction of enhancements, including
        hardware, software, or changes to recommended operating and installation
        practices, Contractor shall provide AIL a request for an updated
        certification detailing the requested change and defining any testing
        required to ensure compatibility. If the Contractor asserts that no
        testing is required due to the nature of the change, AIL may request
        testing if it has a reasonable doubt as to the assertion, and Contractor
        will perform testing as required to reasonably satisfy AIL's concerns.
        If the Contractor has defined test requirements, the change request will
        include a test report on tests which Contractor has conducted to ensure
        that the Terminal product will interwork with the existing installed
        base of Terminals, will not harm AIL's system, and will not contain
        defects which adversely affect performance for users. At AIL's request,
        Contractor shall provide AIL such proposed software or a limited
        quantity of sample hardware for AIL's own use in testing.

6.6     TYPE APPROVAL.

        Contractor shall be responsible for, and responsible for all costs and
        expenses related to, obtaining Type Approval for each * * * Terminal in
        each * * * Country, and for * * * Countries as mutually agreed by the
        Parties. The priority of countries in which Type Approval is to be
        obtained shall be determined by AIL after consultation with Contractor,
        to ensure that Terminals will be available in a manner consistent with
        AIL's plans for the introduction into such countries of the AIL Service.
        For each * * * Country, Contractor shall obtain Type Approval prior to
        the scheduled launch of the applicable satellite (with timing subject to
        applicable Standards and subject to AIL System constraints that cannot
        be ameliorated by modifications in the Terminals to meet the applicable
        Standards), with priority of the countries as mutually agreed by the
        Parties. For each * * * Country, Contractor shall obtain Type Approval
        no later than * * * following the * * * (subject to AIL System
        constraints that cannot be ameliorated by modifications in the Terminals
        to meet the applicable Standards), with priority of the countries as
        mutually agreed by the Parties. For each * * * Country, Contractor shall
        obtain Type Approval * * * or more following the * * *, with priority of
        the countries as determined by AIL after review of the Parties' analyses
        of economic, market and other factors for selected countries. AIL shall
        report to Contractor the status of obtaining landing rights and
        regulatory approvals, and Contractor shall report to AIL the progress of
        obtaining Type Approvals, all on a monthly basis commencing in * * * or
        such other date as may be mutually agreed by the Parties. The costs and
        expenses associated with obtaining Type Approval in a given country will
        be considered in the decision to offer service for * * * Countries.

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<PAGE>   25

6.7     PRODUCTION COMMITMENTS; MANUFACTURING CAPACITY.

        (a)     Contractor agrees to manufacture and deliver the Terminals,
                following Acceptance, in accordance with this Agreement.

        (b)     Contractor's initial minimum terminal capability and capacity
                for Terminal production (including for the Seed Order) shall be
                the greater of (i) * * * Terminals for the Contract Year * * *
                (ii) or one-half of the Annual Forecast Number of Terminals as
                provided to Contractor in accordance with Section 14.2 below
                (the "Annual Minimum Capacity"). For each Contract Year,
                Contractor shall establish and maintain the capability and
                capacity (including production facilities and Contractor
                Personnel) required to manufacture and ship, in each Contract
                Year, at least the Annual Minimum Capacity.

        (c)     The Parties agree to renegotiate Contractor's manufacturing
                capacity commitment for the following year if AIL and its
                Service Providers and Users, collectively, do not purchase from
                all vendors of Terminals and Comparable Terminals at least * * *
                of the number of Terminals and Comparable Terminals set forth in
                Schedule 6 for the applicable Contract Year. In such event,
                Contractor's required capacity commitment for the following year
                will not exceed the lesser of (i) the amount set forth on
                Schedule 6 for such year or (ii) * * * the amount actually
                purchased in the current year.

        (d)     If AIL, Service Providers and Users purchase in any Contract
                Year more than the number of Terminals set forth in Schedule 6
                for that Contract Year, Contractor agrees to increase its Annual
                Minimum Capacity to a mutually agreed level to maintain capacity
                and capability commensurate with the actual number of Terminals
                purchased and the number of Terminals forecasted by AIL, Service
                Providers and Users, in the aggregate, to be purchased in the
                next Contract Year.

6.8     * * *

        If AIL, Service Providers and Users order Terminals scheduled for
        delivery in a given Contract Year (by mutual agreement of Contractor and
        the ordering party) up to the Annual Forecast Number of Terminals and
        Comparable Terminals as provided to Contractor in accordance with
        Section 14.2 below for such Contract Year, and Contractor fails to
        manufacture and deliver the ordered number of Terminals or Comparable
        Terminals as scheduled because of Contractor's failure to maintain the
        Annual Minimum Capacity for that Contract Year (unless such failure is
        the result of an Excusable Delay), Contractor shall, upon AIL's request,
        * * * , if Contractor fails to deliver Terminals to AIL, Service
        Providers or Users in accordance with the Annual Minimum Capacity
        requirement for a period of * * * during the Co-Exclusivity Period, AIL
        may terminate the Co-Exclusivity Right upon written notice to Contractor
        thirty days after Contractor's receipt of a cure notice. After the
        Co-Exclusivity Period * * *, if Contractor commits a material breach of
        Section 6.7, AIL may terminate this Agreement in accordance with Section
        23.1(a) and cancel its outstanding Orders in accordance with Section
        8.8. If AIL so terminates this Agreement for Contractor's material
        breach of Section 6.7, (i) AIL shall be entitled to have the work
        completed by another party or parties, and (ii) Contractor shall not be
        liable to AIL for damages pursuant to Section 23.3(b) below or
        otherwise, provided that Contractor reasonably fulfills its obligations
        under Sections 23.3(a) and 23.4 and reasonably performs its other
        post-termination obligations hereunder. Notwithstanding the foregoing,
        AIL may not terminate this Agreement for Cause as provided above if AIL,
        at the time of termination, has two or more active vendors of Terminals
        (excluding Contractor). The foregoing remedies shall be AIL's sole
        remedies for breach of Section 6.7 above.

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<PAGE>   26

6.9     OPTIMAL IN-COUNTRY MANUFACTURE AND ASSEMBLY.

        Contractor shall use its reasonable commercial efforts to minimize
        customs, duties, transportation costs and potential barriers to trade so
        that Terminals are available in the markets set forth on Schedule 1 at
        competitive prices. Periodically, Contractor will report to AIL on its
        progress to achieve the goal of optimal in-country manufacture and
        assembly. When production volumes justify foreign manufacture of the
        Terminals, to minimize customs duties, transportation costs and
        potential barriers to trade, production will be localized to the extent
        commercially reasonable taking into account applicable markets
        including, but not limited to, within the European Union, the NAFTA, and
        Mercosur to serve those markets. If local production will be
        supplemented with imported components, Contractor will use commercially
        reasonable efforts to determine that the finished product complies with
        the applicable rules of origin, so that preferential treatment will be
        afforded to products originating within each of the applicable trading
        blocks (e.g., equipment manufactured in the United States complies with
        the NAFTA's rules of origin, so that it will be entitled to preferential
        NAFTA treatment when imported into Mexico). Contractor will use
        commercially reasonable efforts to identify the production locations
        from which Contractor will serve the major Asian markets (such as Japan,
        Taiwan, South Korea, and Australia) and the Middle East, and if use of
        such production locations is commercially reasonable, Contractor shall
        begin to produce Terminals in such locations, as Contractor deems
        appropriate. With regard to Israel, Contractor will use commercially
        reasonable efforts to confirm that it will be able to serve that market
        from a country with which Israel has a free trade agreement.

6.10    SPARE PARTS.

        Contractor will maintain or have maintained an inventory of spare parts
        for the Terminals for the life of the AIL System or the Term whichever
        is sooner, adequate to maintain all such Terminals sold and, following
        expiration of warranty, will sell such parts to AIL, its Service
        Providers, Users and third party maintenance providers on commercially
        reasonable terms and at prices comparable to those at which Contractor
        sells similar parts to other purchasers on similar terms for similar
        quantities.

7.      MARKETING AND BRANDING

7.1     MARKETING PROGRAMS.

        Contractor agrees to provide, at its sole expense, marketing, sales and
        distribution support as set forth in Schedule 7 attached hereto. In
        addition, Contractor and its Subcontractors shall mutually agree with
        AIL on additional marketing and advertising support of AIL's system,
        including the Terminals, including, without limitation, lead generation
        and management. Contractor and its Subcontractors shall undertake
        reasonable efforts to (1) introduce AIL to potential AIL customers from
        their existing and future customer set, (2) market AIL's services to
        potential AIL customers from their existing and future customer set, and
        (3) maintain and provide AIL with periodic information on market needs
        for the Terminals and related services.

7.2     AIL MARKS.

        The Marks under which the AIL System and the AIL service are offered
        shall be in AIL's sole and absolute discretion, provided such Marks do
        not conflict with any of Contractor's Marks. Contractor shall affix to
        each Terminal (on both the indoor and outdoor components of the
        Terminal) the AIL Mark, as designated by AIL, in a form and location to
        be mutually agreed

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<PAGE>   27

        upon. AIL shall designate a space on the Terminals in which its Mark is
        to be affixed. The Parties agree to enter into appropriate royalty-free,
        Mark licensing agreements in furtherance of the foregoing.

7.3     CONTRACTOR MARKS.

        Unless otherwise mutually agreed, the Terminals shall be "co-branded"
        with the respective Marks of AIL, Contractor, and its Subcontractors
        subject to reasonable written approval of each Party as to how its brand
        is used. "Co-branding" means the Terminals will be marketed, promoted,
        advertised and sold with such Marks in ways that maintain the identity
        of the Marks of AIL, Contractor, and its Subcontractors, respectively.
        The Marks of Contractor, and its Subcontractors may be used by AIL on a
        royalty-free basis; provided, however, that the party owning the Mark
        shall have prior written approval for each form of use of its Mark(s)
        and the Marks may be used only in connection with the AIL System
        services and the Terminals.

8.      ORDERING

8.1     ORDERS GENERALLY.

        (a)     During the Term of this Agreement and in accordance with Section
                3.1, purchases of Terminals by AIL or its Service Providers
                shall be made by means of an Order in the English language
                issued to Contractor as provided in this Agreement or, as to
                Service Providers and Users, pursuant to separate agreement with
                Contractor. Orders may be issued by mail, fax or, upon mutual
                agreement of the Parties, electronic data interchange. All
                Orders issued by AIL hereunder shall reference this Agreement
                and will be deemed to incorporate and be governed by the terms
                and conditions of this Agreement as applicable to the purchase
                of Terminals. Any term or condition set forth in an Order or
                other document submitted by either Party that is inconsistent
                with or in addition to this Agreement will be of no force or
                effect, unless mutually and expressly agreed by the Parties in
                writing. Neither AIL nor any Service Provider will be liable to
                Contractor for any charges, additional or otherwise, for
                Terminals or Services provided by Contractor unless set forth in
                an Order, or otherwise mutually agreed upon by the contracting
                parties in writing. Each Order shall be deemed to be accepted by
                Contractor upon receipt of the Order, unless Contractor notifies
                AIL or the ordering party, if not AIL, of its objection to any
                Order within five (5) business days of Contractor's receipt of
                such Order.

        (b)     Each Order shall specify the following: ship to address,
                purchase order number, shipping instructions, part and model
                number, quantity, price, statement that the Order is being
                placed under this Agreement and requested delivery dates which
                must be within * * * days of acceptance of an Order, but in no
                event may a delivery date be requested beyond * * * from the end
                of the Term. Requested delivery dates are subject to
                Contractor's lead times (as provided in Section 8.7(a) below)
                and approval of credit. Contractor will use commercially
                reasonable efforts to meet agreed upon delivery dates within a
                permissible delivery window of * * * prior to the scheduled
                delivery date and * * * following the scheduled delivery date,
                unless otherwise agreed by the contracting parties. Delivery
                shall occur upon delivery to the carrier at Contractor's
                shipping point. Delivery schedule changes must be mutually
                agreed to in writing.

8.2     ORDERS FROM SERVICE PROVIDERS.

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<PAGE>   28

        Within sixty (60) days from the Effective Date, the Parties will
        negotiate and agree to a form of contract that Contractor will offer to
        Service Providers ordering Terminals. Such form of contract will be
        attached hereto as Schedule 8 and will include certain agreements
        reached by the Parties herein, such as pricing, taxes, passage of title
        and risk of loss, warranties, Service Standards, indemnifications and
        other provisions that expressly apply to Service Providers herein (the
        "Service Provider Terms"). Notwithstanding the foregoing, Contractor and
        any Service Provider may enter into an agreement to purchase Terminals
        upon terms that differ from the Service Provider Terms. Acceptance by
        Contractor of any Service Provider Order shall depend on the Service
        Provider (1) ordering the Terminals a pre-agreed number of days in
        advance; (2) ordering certain pre-agreed volumes; and (3) meeting
        pre-agreed financial requirements (such as satisfactory assurance of
        payment or adequate vendor financing, or a combination of the foregoing
        or otherwise).

8.3     SEED ORDER.

        AIL hereby purchases from Contractor * * *. The delivery of the Seed
        Order shall be in accordance with Schedule 18.

8.4     MINIMUM QUANTITY PURCHASE COMMITMENT (MQPC).

        AIL hereby commits to Contractor that prior to * * *, as such date may
        be extended pursuant to the terms of this Agreement, that AIL, Service
        Providers and Users shall have purchased and taken delivery from
        Contractor and all other suppliers of Terminals and Comparable Terminals
        no less than * * * Terminals and Comparable Terminals (which amount
        includes the number of Terminals and Comparable Terminals purchased
        under the Seed Order) (the "Minimum Quantity Purchase Commitment" or
        "MQPC"). If the MQPC is not achieved by * * *, AIL shall pay Contractor
        the MQPC termination liability payment described in Section 8.5 below.

8.5     MQPC SHORTFALL LIABILITY.

        (a)     If AIL, its Service Providers and Users do not purchase at least
                * * * Terminals or Comparable Terminals (including the Seed
                Order quantities) as specified in the MQPC, AIL agrees to pay
                Contractor a termination liability payment equal to * * * per
                Terminal or Comparable Terminal multiplied by one-half of the
                positive difference between * * * and the number of Terminals or
                Comparable Terminals actually sold by Contractor and all other
                suppliers of Terminals and Comparable Terminals (including the
                Seed Order quantities) as of * * *. In no event, however, shall
                AIL's maximum liability under this Section 8.5 exceed * * * in
                the aggregate. The remedy provided in this Subsection 8.5(a)
                shall be Contractor's sole remedy for AIL's breach of Sections
                8.3 and 8.4.

        (b)     If Contractor fails to sell Terminals and Comparable Terminals
                due to Contractor's inability to manufacture or distribute
                Terminals and/or Comparable Terminals or due to Contractor's
                failure to comply with Sections 6.7 and 14.3(c), the foregoing
                Subsection 8.5(a) shall not apply.

8.6     FORECASTS AND REPORTING.

        Prior to the beginning of Contract Year * * * and for each Contract Year
        thereafter, AIL shall provide Contractor with the Annual Forecast Number
        (as defined in Section 14.2(a) below). In addition, AIL shall provide
        Contractor with an annual forecast of the number of Terminals and
        Comparable Terminals that AIL expects to order from Contractor in the
        subject Contract Year

                                       21
<PAGE>   29

        (the "AIL Order Forecast"). AIL shall provide updates to the AIL Order
        Forecast to Contractor on a quarterly basis or as otherwise agreed by
        the Parties. Contractor shall provide AIL with a report of the number of
        Terminals and Comparable Terminals ordered and shipped for each calendar
        month during the Term, within fifteen (15) days of the end of such
        calendar month.

8.7     DELIVERY DATES.

        (a)     Unless otherwise agreed by Contractor and the ordering party as
                set forth in an Order or other writing, Contractor shall deliver
                Terminals to AIL and Service Providers within * * * of
                Contractor's receipt of an Order from AIL or such Service
                Provider, to the extent practicable and subject to Excusable
                Delay and further subject to Contractor's receipt of reasonably
                accurate order forecasts from AIL and Service Providers. Agreed
                delivery dates shall be firm. Time is of the essence for the
                Seed Order deliveries and for any Orders scheduled for delivery
                four (4) months prior to the scheduled date of introduction of
                AIL System service in any country and for eight (8) months
                thereafter and for Orders placed from time to time that state in
                bold type (or other manner reasonably intended to call
                Contractor's attention to such statement) that late delivery
                will materially impact AIL's business or the business of its
                Service Providers. Early deliveries (except as provided in
                Section 8.1(b) above or authorized in writing by the ordering
                party) may be refused due to space or security considerations
                and returned or stored at Contractor's expense and risk of loss.

        (b)     AIL shall be responsible for site availability for Terminals
                shipped to AIL and will advise Contractor within a reasonable
                time if there is going to be a delay involving site availability
                that would impact Contractor's delivery. In the case of Services
                ordered by AIL, Contractor shall provide AIL with reasonable
                prior written notice of its need to access any AIL site, and AIL
                shall be responsible for providing access to such site as
                reasonably necessary for Contractor to perform such Services
                including extending access beyond normal business hours, if
                required.

        (c)     If Contractor discovers any potential delay that threatens the
                timely or full delivery of an Order as scheduled or the
                performance of Services, Contractor shall immediately notify AIL
                of such delay. If requested by AIL, Contractor shall provide a
                written plan for correction of such delay.

        (d)     If an Order prohibits partial shipments of any scheduled
                delivery of Terminals and Contractor is unable to ship the full
                quantity of Terminals for such delivery date per the agreed-upon
                schedule, Contractor shall inform the ordering party of its
                ability (if any) to make a partial shipment of Terminals against
                the scheduled quantity. The ordering party may then elect, by
                providing written notice to Contractor, (i) to terminate the
                entire Order and return to Contractor for a full refund all
                unused Terminals already shipped under such Order, or (ii) to
                accept such partial shipment(s) per Contractor's revised
                delivery schedule.

8.8     CANCELLATION AND RESCHEDULING OF AIL ORDERS.

        (a)     For Orders excluding the Seed Order, AIL can cancel an Order in
                whole or in part by providing written notice to Contractor,
                without reducing AIL's liability for the MQPC Shortfall
                Liability as set forth in Section 8.5 above, subject to the
                following restrictions and charges:

<TABLE>
<CAPTION>
                    CANCELLATION NOTICE RECEIVED PRIOR TO             CHARGE AS A % OF
<S>                                                                   <C>
</TABLE>

                                       22
<PAGE>   30

<TABLE>
<CAPTION>
                      ORIGINAL SCHEDULED DELIVERY DATE                 WHOLESALE PRICE
                      --------------------------------                 ---------------
<S>                                                                    <C>
                              More than 90 days                               ***
                              60-89 days                                      ***
                              30-59 days                                      ***
</TABLE>

        (b)     AIL may change the "ship to" destination of any Order by
                submitting notice to Contractor in writing at least five (5)
                business days prior to shipment. If such change is requested by
                AIL with less than five (5) business days of notice prior to
                shipment, Contractor will use all reasonable efforts to
                implement such change. Contractor has the right at its cost and
                expense to adjust the previously scheduled delivery date by up
                to ten (10) days in the event AIL changes the "ship to"
                destination within the five (5) business days; provided,
                however, Contractor shall use all commercially reasonable
                efforts to limit such delay. Otherwise, the original delivery
                date shall remain in effect.

        (c)     Subject to Section 8.3 and Section 8.7(a), AIL may reschedule
                any scheduled delivery contained in an Order at no cost, expense
                or liability at least ten (10) business days prior to the
                scheduled delivery date, up to two (2) times per scheduled
                delivery; provided, however that the rescheduled delivery date
                may not be more than ninety (90) days following the originally
                scheduled delivery date. If the new delivery date is within
                thirty (30) days of the scheduled delivery date, then Contractor
                shall arrange and pay for all additional storage costs and
                expenses for the Order. If the new delivery date is more than
                thirty (30) days after the scheduled delivery date, then such
                reasonable additional transportation and storage costs and
                expenses incurred by Contractor shall be payable by AIL. Payment
                for Terminals delivered pursuant to a rescheduled delivery date
                shall be paid in accordance with Article 15 as of the revised
                delivery date; provided, however that payment for scheduled
                delivery of Terminals shall be due no later than ninety (90)
                days following the originally scheduled delivery date.

8.9     TERMINATION OF ORDERS.

        In the event that Contractor:

        (a)     Fails to correct Terminal deficiencies or failures as set forth
                in 18.3(c)(x) hereof; or

        (b)     Fails to make delivery in a timely fashion as set forth in
                Section 8.7;

        then AIL may, by giving written notice to Contractor as provided in this
        Agreement terminate the corresponding Order, in whole or in part, for
        cause as of a date specified in the notice of termination. In such
        event, AIL may return any deficient Terminals and uninstalled
        non-deficient Terminals and associated Equipment, Software or
        Documentation to Contractor, in which case Contractor shall promptly
        refund to AIL all charges paid by AIL to Contractor for such items, and
        AIL shall have no further payment obligations to Contractor with respect
        to such items. Such returned Terminals shall count as "delivered"
        Terminals with respect to the Seed Order and MQPC.

8.10    TERMINAL FINANCING PROGRAM.

        Contractor agrees to provide, or assist in arranging financing for, AIL,
        Service Providers and Users on competitive commercial terms at least as
        favorable as the terms customarily provided by Contractor to its other
        customers in the geographic regions in which AIL, the Service Providers
        or Users are located, as such terms may evolve during the term of the
        Agreement

                                       23
<PAGE>   31

        based upon specific credit worthiness of AIL or such Service Provider or
        User and appropriate security provisions. Indicative terms for such
        financing program are as follows:

                Direct Financing

                -       * * * year financing term

                -       Amounts of * * * to * * *

                -       Interest rate at * * * based on credit review of
                        end-user customer

                -       Monthly or quarterly payments

                -       Facility to be secured by equipment, non-recourse to AIL
                        for Service Provider and User financing

                -       Extension of credit subject to standard credit and
                        financial review of end-user customer

9.      DISTRIBUTION, SHIPPING AND INSTALLATION

9.1     DISTRIBUTION.

        Contractor shall provide worldwide distribution of Terminals, initially
        to the countries listed on Schedule 1, which shall be expanded from
        time-to-time as agreed to by the Parties, provided Contractor will agree
        to expand distribution into countries where it has existing distribution
        capability, subject to commercial viability. AIL will obtain landing
        rights to provide its service in a * * * before Contractor is required
        to distribute Terminals in such country. AIL will obtain landing rights
        to provide its service in a * * * before Contractor is required to
        distribute Terminals in such country. Contractor agrees to use
        commercially reasonable efforts to establish its distribution network
        and begin distributing Terminals in a country in less than the
        applicable time period after landing rights are secured if required by
        AIL. Absent a written agreement of the Parties to the contrary,
        Contractor shall not be obligated to begin distribution of Terminals in
        any country prior to AIL obtaining landing rights in such country. A
        list of countries in which Contractor and the Principal Subcontractors
        have existing facilities or distribution capability is set forth in
        Schedule 9.

9.2     PACKING.

        All deliveries to AIL pursuant to this Agreement shall be preserved,
        packaged and packed to ensure safe delivery to their destinations
        without damage. All Terminal packages shipped to AIL, Service Providers
        and Users shall contain the items required in Section 1.7 of the SOW,
        plus any optional items if ordered.

9.3     SHIPPING.

        Unless otherwise specified in an Order accepted by Contractor, all
        shipments hereunder shall be FOB Contractor's designated site.

9.4     RISK OF LOSS.

        Risk of loss to any Terminal, Equipment or Software shipped to AIL or
        Service Provider shall vest in AIL, or such Service Provider, as the
        case may be, upon acceptance of delivery of such Terminal by the
        authorized agent or carrier of the purchasing party if designated by
        such party in the corresponding Order and if not so designated, upon
        delivery to the carrier at Contractor's

                                       24
<PAGE>   32

        shipping point, unless otherwise mutually agreed in writing by
        Contractor and the purchasing party. If Contractor obtains insurance on
        behalf of or for the benefit of AIL, AIL shall be responsible for
        filing, processing and pursuing all claims under such insurance policy.

9.5     TITLE.

        Title, free and clear of all Liens, to any Terminal or Equipment shipped
        to AIL or Service Providers shall vest in such recipient upon acceptance
        of delivery of such Terminals by the authorized agent or carrier of the
        purchasing party as designated by such party in the corresponding Order,
        and if not so designated, upon delivery of the carrier at the
        Contractor's shipping point, unless otherwise mutually agreed in writing
        by Contractor and the purchasing party. Notwithstanding the foregoing,
        if title must be maintained by Contractor in order to perfect a purchase
        money security interest as described in Section 24.17 below, then title
        may not pass until the security interest has been released.

10.     LICENSES, PROPRIETARY RIGHTS AND ESCROW

10.1    GRANTS OF LICENSES TO CONTRACTOR.

        (a)     Development License to use AIL Confidential Information. AIL
                hereby grants Contractor a worldwide, royalty-free, limited,
                non-exclusive, non-transferable (except in accordance with
                Section 24.1 hereof) development license to use and reproduce
                the AIL Background Information and AIL Foreground Information
                (including AIL's System and Terminal background Intellectual
                Property related thereto) provided by AIL and required by
                Contractor or its Subcontractors for the sole purpose of
                designing and developing the Terminals (the "Development
                License"). The term of the Development License will be
                coterminous with the Term (as defined in Article 4 above).

        (b)     Production License. During the Term, AIL grants to Contractor a
                worldwide, royalty-free, limited, non-exclusive,
                non-transferable (except in accordance with Section 24.1 hereof)
                production license to use the AIL Background Information and AIL
                Foreground Information to manufacture and support the Terminals
                and Comparable Terminals and to reproduce, market, sell (except
                in the case of the Software), license (in the case of Software)
                and distribute the AIL Background Information and AIL Foreground
                Information solely as contained in the Terminals and Comparable
                Terminals (the "Production License"). Following the Initial
                Term, the Parties mutually may agree to extend the Production
                License on commercially reasonable terms. In any case, the
                Production License shall be coterminous with the Term.

        (c)     Term of Licenses. Notwithstanding anything to the contrary in
                Subsections 10.1(a) and 10.1(b), the term of the foregoing
                Development and Production Licenses shall continue in effect as
                long as and to the extent required by Contractor to fulfill its
                obligations hereunder, including those for support, maintenance
                and provision of parts.

10.2    GRANTS OF LICENSES TO AIL.

        Subject to Section 10.3, Contractor hereby grants to AIL, its Service
        Providers and Users a worldwide, perpetual, fully-paid-up, royalty-free,
        limited, non-exclusive, non-transferable (subject to Section 24.1
        hereof) right and license to use, operate, display, demonstrate, market,
        distribute, lease and sell, and authorize others to perform the
        foregoing, the Contractor

                                       25
<PAGE>   33

        Background Information and Contractor Foreground Information as
        incorporated with and into the Terminals.

10.3    SOFTWARE LICENSES AND RIGHTS.

        Commencing upon delivery of Software, Contractor grants to AIL, Service
        Providers and Users a perpetual, nontransferable (except as permitted
        pursuant to Subsection (g)), nonexclusive, fully-paid, royalty-free,
        irrevocable, and a world-wide right and license (or sublicense for third
        party software) to use, copy, access, display, operate and process the
        Software in connection with AIL's intended use of the Terminals and the
        intended use by the Service Providers and Users to which AIL supplies
        Terminals.

        (a)     AIL and each Service Provider and User to which AIL supplies
                Terminals may make only one (1) copy per Terminal (or as
                otherwise required by applicable law) of the Software for
                back-up purposes and for operation of the Terminals. Any such
                reproduction shall include any copyright or similar proprietary
                notices contained in the Software being reproduced.

        (b)     Neither AIL nor any Service Provider or User to which AIL
                supplies Terminals shall attempt to decompile or reverse
                assemble all or any portion of the Software in an effort to
                obtain the Source Code for the Software, nor shall it authorize
                others to do so, nor rent, lease, grant a security interest in,
                or otherwise transfer rights to the Software except as set forth
                herein.

        (c)     Neither AIL nor any Service Provider or User to which AIL
                supplies Terminals shall, except as provided in Section 10.6,
                create a derivative work of the Software or modify the code to
                the Software; provided, however, the foregoing shall not in any
                manner whatsoever limit AIL's, its Service Providers and User's
                rights to use the Software in accordance with the Documentation
                or Contractor's instructions or otherwise limit AIL's rights to
                use any tools provided with the Software.

        (d)     AIL shall require by written agreement with the Service
                Providers and Users to which AIL supplies Terminals that such
                Service Providers and Users agree to comply with the provisions
                of Subsections (a) through (c) above, subject to the
                requirements of applicable law.

        (e)     In connection with AIL's maintenance and support of the Software
                following a release from escrow as provided in Section 10.6, AIL
                may add to, delete from, or modify and create derivative works
                of the Software as provided in Section 10.6; provided, however,
                that no changes, however extensive, shall alter Contractor's or
                its suppliers' title to the original Software. Title to any such
                additions or enhancements to the Software shall vest in
                Contractor or the supplier of the Software and AIL shall have
                the same license to such modifications as it had in the original
                Software, except in case where Contractor fails to provide
                support, in which case, title to the enhancements lies with AIL.
                Both Parties agree not to assert their respective Intellectual
                Property Rights in such enhancements against the other.
                Contractor shall not have any support or maintenance obligations
                with respect to such additions or enhancements made by AIL to
                the Software.

        (f)     AIL shall have the right to permit its officers, employees,
                agents, advisors, third party consultants, Users and Service
                Providers to use the Software on behalf of AIL or its

                                       26
<PAGE>   34

                Service Providers or Users, as the case may be, to the same
                extent AIL is permitted hereunder, subject to the restrictions
                hereof.

        (g)     AIL shall have the right to transfer any of the licenses granted
                to AIL herein in the event AIL sells a Terminal or component
                thereof or in the event of an assignment or change in Control in
                accordance with Section 24.1.

        (h)     During the Warranty Period and the Extended Warranty Period (if
                any), AIL, Service Providers and Users shall be entitled to
                receive from Contractor, at no additional charge, all Software
                error corrections, bug fixes, patches and mandatory updates
                (collectively, "Software Corrections"). Following the Warranty
                Period and any Extended Warranty Period, Contractor agrees to
                provide Software Corrections to AIL, Service Providers and Users
                for commercially reasonable fees. In addition, Contractor may
                make available to AIL, Service Providers and Users from time to
                time during the Warranty Period and Extended Warranty Period, if
                applicable, at prices determined by Contractor, certain updates,
                upgrades, enhancements and releases (collectively, "Software
                Updates"). Such Software Corrections and Software Updates shall
                be considered to be Software hereunder. Ownership of the
                Software Corrections and Software Updates as between AIL and
                Contractor shall be determined in accordance with Section 10.4
                hereof. Software Corrections and Software Updates shall be
                tested as provided in Section 6.5 prior to release.

10.4    PROPRIETARY RIGHTS.

        (a)     Assignment of Rights.

                (i)     Prior to permitting any Contractor Personnel to perform
                        work hereunder, Contractor and its Subcontractors will
                        enter into appropriate agreements with their respective
                        employees, contractors and consultants that properly
                        assign Intellectual Property Rights developed by such
                        employees, contractors and consultants so that the
                        provisions of this Agreement may be validly implemented
                        without infringement.

                (ii)    Prior to permitting any employee, contractor or
                        consultant to perform work hereunder, AIL will enter
                        into appropriate agreements with such persons and
                        entities that properly assign Intellectual Property
                        Rights developed by such employees, contractors and
                        consultants so that the provisions of this Agreement may
                        be validly implemented without infringement.

        (b)     Jointly-Developed Works of Authorship. Copyrights and other
                rights of authorship in any written materials or other works of
                authorship (including maskworks, schematics, diagrams and
                flowcharts) produced by a joint collaboration of AIL and
                Contractor, will be jointly owned except for a Party's
                Confidential Information contained therein (which shall remain
                the sole property of that Party or its licensors) without any
                appropriate right or obligation of accounting to the other Party
                for profits from exploitation of the rights.

        (c)     Contractor Foreground Information. Subject to Subsection (a)
                above, any Contractor Foreground Information produced by
                Contractor and its Subcontractors under this Agreement, except
                for any AIL Confidential Information (which shall remain the
                sole property of AIL or its licensors) and Joint Confidential
                Information contained therein,

                                       27
<PAGE>   35

                shall be the sole property of Contractor, the Subcontractors or
                their respective licensors. Contractor agrees that it will
                negotiate in good faith to license the Intellectual Property
                Rights contained in such Contractor Foreground Information to
                AIL's authorized second source(s) on commercially reasonable
                terms and fees acceptable to Contractor, to the extent such
                second source is in need of such Intellectual Property Rights
                related to the Contractor Foreground Information to fulfill its
                obligations to AIL related to the AIL System.

        (d)     Patent Rights. Patent rights and rights in inventions first
                created or reduced to practice in the course of performance
                under this Agreement will be owned as follows:

                (i)     Solely by Contractor if created solely by Contractor
                        Personnel and to the extent they do not incorporate any
                        AIL Confidential Information (Intellectual Property
                        Rights related to such patent rights and rights of
                        invention also shall constitute Contractor Foreground
                        Information);

                (ii)    Solely by AIL if created solely by AIL personnel and to
                        the extent they do not incorporate any Contractor
                        Confidential Information; and

                (iii)   Jointly without any appropriate right or obligation of
                        accounting to the other Party for profits from
                        exploitation of the rights, if created jointly by
                        Contractor Personnel and AIL personnel to the extent
                        they do not incorporate Confidential Information of
                        either Contractor or AIL. With respect to jointly owned
                        patent rights and rights in inventions, the Parties will
                        provide reasonable cooperation and assistance to one
                        another in the preparation, filing and prosecution of
                        any patent applications, and the execution of all
                        associated applications, assignments and other
                        instruments. The Parties will divide any costs and
                        expenses incurred by the Parties in preparing, filing
                        and prosecuting any such patent applications. However,
                        if a Party does not wish to the pay costs and expenses
                        associated with preparing, filing and prosecuting a
                        particular patent application, it may notify the other
                        Party in writing. In such case, the notified Party may
                        either abandon the patent application in question or may
                        proceed with the application, in which event the other
                        Party will not be a joint owner of any resulting patent.

        (e)     Remedies for Violation of Contractor Rights. * * * In such case,
                Contractor shall be entitled at its election to royalties on
                commercially reasonable terms pursuant to a license agreed to by
                the Parties or by an arbitrator in the event the Parties are
                unable to agree upon the terms of such license, in addition to
                all other damages and remedies available to Contractor at law,
                in equity or otherwise, subject to Contractor's * * * as
                provided in this Subsection.

10.5    DOCUMENTATION.

        (a)     In accordance with the SOW, Contractor agrees to furnish and
                convey to AIL (and Service Providers and Users in the case of
                User Documentation), at no additional charge, such Documentation
                in the English language covering the Terminals delivered under
                this Agreement. Contractor shall develop, publish and provide to
                AIL, Service Providers and Users as appropriate, accurate and
                complete Documentation, written in a manner reasonably
                understood by AIL, Service Providers and Users, for each such
                Terminal produced hereunder. Contractor shall make available to
                AIL, on an as-ordered basis, additional copies of such
                Documentation at commercially reasonable prices. Unless

                                       28
<PAGE>   36

                otherwise specified in an Order therefor and agreed to by
                Contractor, all Documentation shall be in the English language
                and Contractor agrees to have such Documentation translated as
                necessary to support AIL's international sites subject to
                agreement on the cost responsibility thereof.

        (b)     In addition to the rights set forth in Subsection (a),
                Contractor hereby grants AIL the right to reproduce, modify,
                distribute and enhance the Documentation. AIL also has the right
                to make copies of such modifications and enhancements and
                distribute the same. In the event AIL modifies the Documentation
                in a manner not directed or approved by Contractor, Contractor
                will not be responsible for AIL's use of such Documentation to
                the extent it is modified by AIL. Contractor may review and
                approve AIL's proposed modifications and enhancements to the
                Documentation.

10.6    TECHNICAL MATERIALS ESCROW.

        (a)     Within thirty (30) days following the Effective Date,
                Contractor, AIL and Fort Knox Escrow Services, Inc. will enter
                into a written escrow agreement substantially in the form
                attached hereto in Schedule 10 (the "Escrow Agreement") pursuant
                to which Contractor will deposit with the escrow agent
                applicable Technical Materials available at that time related to
                such Terminals (the "Escrowed Materials"). Contractor shall
                update the Escrowed Materials following the conclusion of Alpha
                and Beta testing, upon delivery of the Seed Order and at the end
                of each calendar quarter thereafter. The Parties shall share the
                fees payable to Fort Knox Escrow Services, Inc. equally.
                Contractor represents and warrants that the Escrowed Materials
                shall, at all times, be sufficient for an individual reasonably
                experienced in satellite telecommunications technology to
                understand and utilize such materials to manufacture and support
                the Terminals as contemplated herein. During the Term,
                Contractor will maintain such Escrow Materials current with
                respect to the Terminals then utilized by AIL. Subject to the
                restrictions set forth in the Escrow Agreement, the escrow agent
                will make the Escrow Materials available to AIL upon AIL's
                notice to the Contractor and the escrow agent that one of the
                following has occurred if Contractor does not, within ten (10)
                days thereafter, notify AIL and the escrow agent that it objects
                to the release of the Escrow Material:

                (i)     the institution by Contractor of insolvency,
                        receivership or bankruptcy proceedings;

                (ii)    a general assignment by Contractor for the benefit of
                        creditors,

                (iii)   the appointment of a receiver for Contractor,

                (iv)    the filing by creditors of Contractor of a petition in
                        bankruptcy against Contractor which is not stayed or
                        dismissed within sixty (60) days;

                (v)     Contractor ceasing to manufacture or to deal in the
                        Terminals;

                (vi)    Contractor's failure to reasonably correct or cure any
                        material Defects in the Terminals in accordance with
                        this Agreement following Contractor's receipt of a
                        written notice thereof from AIL; or

                (vii)   AIL's termination of this Agreement for Cause in
                        accordance with Section 23.1

                                       29
<PAGE>   37

                        (items (i) through (vii) hereinafter referred to as the
                        "Release Conditions").

        (b)     In accordance with the Escrow Agreement, the escrow agent will
                give written notice to Contractor contemporaneously with the
                delivery of the Escrow Materials to AIL. In the event it is
                determined that a Release Condition did not occur or is cured to
                AIL's reasonable satisfaction, AIL will be required to promptly
                return the Escrow Materials to the escrow agent.

        (c)     AIL shall be entitled to use the Escrow Materials as necessary
                to support and maintain its purchased Terminals as well as to
                manufacture, or have manufactured, Terminals only to fulfill
                Contractor's obligations hereunder, including obligations that
                may arise in the future or at Contractor's election in
                accordance with the terms hereof. Notwithstanding the foregoing,
                in the case of Subsection 10.6(a)(vi) above, AIL may use the
                Escrow Materials only to cure or resolve such Defect. Such use
                shall include the right to copy, disclose, modify, enhance,
                upgrade, revise, and create derivative works of such Escrow
                Materials. AIL shall be entitled to permit its officers,
                employees, agents, advisors, third party consultants and Service
                Providers to use the Escrow Materials on behalf of AIL. With
                respect to AIL disclosures to third parties, AIL agrees to only
                disclose the Escrow Materials to third parties that are working
                for AIL under a confidentiality arrangement. AIL will
                immediately return the Escrow Materials, including all copies
                thereof, to the Escrow Agent when AIL no longer requires the
                Escrow Materials for the purposes permitted hereunder.

11.     TRAINING; MAINTENANCE

11.1    TRAINING.

        Contractor will provide AIL and its Service Providers training in
        accordance with the following:

        (a)     During a twelve month period, as mutually agreed by the Parties,
                Contractor shall provide training on agreed-upon terms and
                prices on a worldwide regional basis to AIL, Service Providers,
                and their designated third party maintenance providers on
                Terminal installation procedures, including software loading,
                antenna polarization, antenna mounting, terminal initialization,
                antenna pointing, satellite acquisition, software use and
                maintenance, special installation procedures for harsh
                environment and high-rise buildings, and any other subjects
                necessary to provide first level maintenance and to install the
                Terminals. These courses will be available at
                Contractor-designated facilities or at AIL-designated facilities
                when mutually agreed. This training will consist of formal and
                informal classroom instruction and actual hands-on training in
                laboratory environments. Contractor also reserves the right to
                subcontract the training to designated third party vendor.
                Contractor will have the option to enroll AIL or Service
                Provider students into training classes held at either third
                party or Contractor's training facilities.

        (b)     Contractor shall provide AIL (or its Service Providers at AIL's
                sole discretion), * * * , two training courses (with content
                consistent with the content and topics described in Subsection
                (a) above) for attendance by up to twenty-five (25) AIL
                designated individuals per course. Additional training desired
                by AIL or its Service Providers will be mutually agreed upon.

        (c)     Contractor shall develop and furnish all training materials.

                                       30
<PAGE>   38

        (d)     Contractor shall, at commercially reasonable prices and terms,
                provide all remedial training and training on any changes,
                updates and enhancements to the Terminals or as otherwise
                necessary for AIL and its Service Providers to be capable of
                performing all necessary services, including installation,
                operation, maintenance, provisioning, monitoring and control of
                the Terminals.

11.2    MAINTENANCE.

        Contractor will have the ability to service or will have an agreement
        with others to service Terminals in each country where Terminals are
        distributed. Contractor shall create service manuals and maintenance
        documents, in the English language, for all versions and generations of
        the Terminals, which shall be provided to AIL and Service Providers for
        use by them and their designated third party maintenance providers.
        During the Warranty Period and Extended Warranty Period, Contractor
        shall provide second-tier customer support to the help desk of
        designated maintenance providers of AIL, its Service Providers or Users
        on a 24 x 7 x 365 basis to answer such maintenance providers'
        maintenance-related questions with respect to the Terminals. The Parties
        agree to develop and agree to appropriate standards for promptness of
        help desk support (responsiveness, resolution and escalation), which
        shall constitute part of the Service Standards as described in Section
        13.1 below. At AIL's request, Contractor shall provide to AIL the costs
        and fees associated with translating and providing non-English language
        service manuals and maintenance documents.

12.     CHANGE PROCEDURES AND CONTRACT MANAGEMENT

12.1    DEVELOPMENT PHASE CHANGE PROCEDURES.

        During the Term, AIL may require changes in this Agreement, including
        the applicable provisions of the SOW. Within fifteen (15) days of AIL's
        requested change, Contractor shall provide AIL with a summary of the
        effect of such changes on the price (recurring and non-recurring) and
        time required for performance, and AIL shall elect whether to pursue
        such change. Should any such change increase or decrease the price of or
        time required for performance of Contractor's or its Subcontractors'
        obligations hereunder, Contractor shall be entitled to a reasonable
        adjustment in the Milestone Payments, Wholesale Price or delivery
        schedule, as applicable. Price adjustments shall account only for the
        net cost impact incurred by Contractor as a result of the change plus a
        reasonable profit thereon not to exceed * * *. Contractor will provide
        reasonably detailed back-up cost data to support its claim for
        adjustment. All AIL-proposed Changes developed under this Section shall
        be warranted and supported by Contractor as if part of the Terminal when
        first deployed.

12.2    PRODUCTION PHASE CHANGE PROCEDURES.

        (a)     Contractor shall also develop and provide for sale to AIL
                Terminal modifications and enhancements and new commercially
                available products in accordance with the following:

                (i)     From time to time during the Term, AIL may provide to
                        Contractor a proposed change in or addition to the
                        Terminals or a written idea for a new product (an
                        "AIL-proposed Change"). All such AIL-proposed Changes
                        shall be considered AIL Background Information for
                        purposes hereof; provided, however, that this will not
                        restrict the Parties making the AIL-proposed Change
                        subject of the proposal an agreed upon commercial
                        product as provided herein.

                                       31
<PAGE>   39

                (ii)    Within thirty (30) days of receipt of an AIL-proposed
                        Change, Contractor shall propose a price for the
                        AIL-proposed Change and applicable delivery schedule. In
                        determining such price, if the AIL-proposed Change
                        includes a request for Contractor to correspondingly
                        reduce or eliminate any components of the Terminals it
                        is then providing, such components shall be considered
                        "Replacements." In that event, the Parties shall
                        determine the costs and expenses required to provide the
                        Replacements and the reduction in the costs and expenses
                        related to the components being replaced, and there
                        shall be an appropriate adjustment in the applicable
                        price for such costs and expense being replaced.

                (iii)   If AIL in its sole discretion accepts such price with
                        respect to items and delivery schedule (A) Contractor,
                        at its sole cost and expense, shall design, develop
                        and/or manufacture or have manufactured such
                        AIL-proposed Change in accordance with the proposed
                        delivery schedule and (B) AIL shall grant Contractor
                        (including its Subcontractors, if necessary) all rights
                        it has as necessary to permit Contractor (including its
                        Subcontractors, if necessary) to design, develop and/or
                        manufacture such AIL-proposed changes.

                (iv)    All AIL-proposed Changes developed under this Subsection
                        (a) shall be warranted and supported by Contractor as if
                        part of the Terminal when first deployed.

                (v)     To the extent that any AIL-proposed Change effects a
                        delivery schedule hereunder, the Parties will
                        appropriately adjust Contractor's delivery obligations
                        hereunder.

        (b)     No changes in or additions to any Terminal, Equipment, Software
                or new products provided herein, or additional charges
                therefore, shall be made unless approved in writing by the AIL
                Contract Manager. Notwithstanding anything to the contrary
                herein, Contractor is authorized, without AIL's prior approval,
                to make changes that do not affect a Terminal's compliance with
                applicable Standards and the applicable provisions of the SOW,
                including applicable interface specifications, in a manner
                consistent with Section 6.5 above.

12.3    CONTRACTOR-PROPOSED CHANGES.

        (a)     All Contractor-proposed changes to the SOW shall be submitted to
                AIL in a written proposal that describes in reasonable detail
                the proposed change and the technical, performance and economic
                effects on the Terminals and the AIL System of such change. To
                maintain the viability of AIL-approved sources of each class of
                Terminals, all changes to the SOW proposed by Contractor or
                co-exclusive vendor (either, the "Proposing Vendor") for any
                Terminal shall be evaluated by AIL, and may be evaluated at
                AIL's discretion by the other co-exclusive vendor (the
                "Evaluating Vendor") for such Terminal to determine that such
                change will not have a substantial negative effect on the
                Evaluating Vendor's continued ability to produce such Terminal
                competitively. If AIL determines that such change will have a
                substantial negative effect, AIL may decline to change the SOW,
                or AIL may direct the Proposing Vendor to license to the
                Evaluating Vendor such Intellectual Property Rights of the
                Proposing Vendor as may be required to reasonably enable the
                Evaluating Vendor to be able to manufacture Terminals to meet
                the revised SOW, all at a commercially reasonable terms and
                royalty or license fee. The

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                foregoing provision shall not be enforceable against Contractor
                unless AIL's other co-exclusive terminal vendor is bound by a
                substantially similar provision.

        (b)     If changes to any Standard from time to time after the Effective
                Date require material changes to be made to the Terminals (or
                any configuration of Terminals being shipped to a particular
                country) that would result in a material impact on either the
                applicable Wholesale Prices, non-recurring costs and expenses or
                delivery schedule of such Terminals, the Parties agree to
                negotiate in good faith and to reasonably adjust Contractor's
                applicable Wholesale Price, non-recurring payments and delivery
                schedules to accommodate such Standards change. Each Party will
                advise the other Party at such time as it becomes aware of any
                such changes or proposed changes to any Standard.

12.4    CONTRACT MANAGEMENT.

        (a)     As of the Effective Date, each Party shall appoint an executive
                to act as contract manager having the primary responsibility for
                performance of its company's obligations hereunder and for
                managing the relationship between the Parties (the "Contractor
                Contract Manager" or the "AIL Contract Manager", as the case may
                be). Each Contract Manager shall devote the necessary time and
                efforts to managing its company's responsibilities under this
                Agreement, and have authority to escalate all unresolved
                problems to its senior management. Each Party also shall
                identify a primary contact who shall serve as the point of
                contact for all day-to-day and operational issues.

        (b)     Beginning on the Effective Date and pursuant to the SOW,
                Contractor shall provide monthly reports (the format and content
                of which shall be mutually agreed by the Parties and which shall
                include new issues, resolutions of previously identified issues,
                status, management, performance to SOW and to applicable
                Standards, schedules, change control, Terminal failures,
                shipment reports, purchase order reports, remediation and
                repair, quality assurance, technology reports and project
                schedule charts) and such other information as AIL may
                reasonably request and shall meet with AIL as necessary to
                inform AIL on the status of the Terminals and Services.

        (c)     Beginning with the quarter-ending after the first production
                Terminal shipments, Contractor shall provide, in accordance with
                the SOW, quarterly - reports as required by the SOW (the format
                and content of which shall be mutually agreed by the Parties)
                and regarding (1) orders and shipment, including a detailed
                itemized description of Terminals ordered and/or shipped during
                the reporting period, the ship-to location and date of delivery,
                and aggregate dollar value of Terminals shipped during the
                reporting period; (2) Terminal failure rate and causes/pattern
                of such failures, and Terminal repairs and replacements; (3)
                status of Type Approvals; and (4) such other information as AIL
                may reasonably request.

        (d)     Contractor agrees to maintain open and collaborative dialogue
                with AIL and offer full disclosure with respect to:

                (i)     the Milestone and Payment Schedule milestones and
                        decisions made by Contractor on an on-going basis
                        throughout the design process and the remainder of the
                        term;

                (ii)    the status of delivery of Terminals and Services
                        provided hereunder;

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<PAGE>   41

                (iii)   the state of affairs regarding any aspect of the
                        Terminals;

                (iv)    all pertinent limitations and problems with the
                        Terminals; and

                (v)     its known limitations of its work or the Terminals.

12.5    CONTRACTOR PERSONNEL.

        (a)     "Key Contractor Personnel" shall be the Contractor and
                Subcontractor personnel filling the positions identified in
                Schedule 11 hereto.

        (b)     The Key Contractor Personnel shall be located at the site(s)
                that the Parties believe will permit the most effective
                performance of Contractor's obligations hereunder.

        (c)     Before assigning an individual to any position described in
                Schedule 11, whether as an initial assignment or a subsequent
                assignment, Contractor shall notify AIL of the proposed
                assignment, shall introduce the individual to appropriate AIL
                representatives, and shall provide AIL with a biography and
                other information about the individual as reasonably requested
                by AIL. If AIL in good faith objects to the proposed assignment,
                the Parties shall attempt to resolve AIL's concerns on a
                mutually agreeable basis. If the Parties have not been able to
                resolve AIL's concerns within five (5) business days, Contractor
                shall not assign the individual to that position and shall
                propose to AIL the assignment of another individual of suitable
                ability and qualifications. The Key Contractor Personnel that
                have been approved as of the Effective Date are listed in
                Schedule 11. Key Contractor Personnel may not be transferred or
                re-assigned, except in the case of termination of employment,
                until a suitable replacement has been approved by AIL, such
                approval not to be unreasonably withheld. In no event shall any
                Key Contractor Personnel be transferred or re-assigned by
                Contractor to perform work for a Competitor of AIL deploying
                satellite switched networking technology for a period of * * *
                following the date such individual terminates work related to
                this Agreement. Contractor shall conduct an exit interview with
                all Key Contractor Personnel who terminate their employment with
                Contractor to review their confidentiality and non-disclosure
                obligations as provided herein.

12.6    REPLACEMENT, QUALIFICATIONS, AND RETENTION OF CONTRACTOR PERSONNEL.

        (a)     In the event that AIL determines in good faith that the
                continued assignment to work performed hereunder of a Contractor
                employee is not in the best interest of AIL, then AIL shall give
                Contractor written notice to that effect requesting that the
                employee be replaced. Promptly after Contractor's receipt of
                such a request by AIL, Contractor shall investigate the matters
                stated in the request and discuss its findings with AIL. If AIL
                still in good faith requests replacement of the employee, the
                Parties shall negotiate in good faith the resolution of this
                matter.

        (b)     The personnel Contractor assigns to perform its obligations
                hereunder shall be properly educated, trained and qualified for
                the services they are to perform.

        (c)     AIL and Contractor both agree that it is in their best interests
                to keep the turnover rate of the Contractor Personnel performing
                its obligations hereunder to a reasonably low level.
                Accordingly, if AIL determines that turnover rate of the
                Contractor Personnel is excessive and so notifies Contractor,
                Contractor shall meet with AIL to discuss the

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<PAGE>   42

                general reasons for the turnover rate. If appropriate,
                Contractor shall submit to AIL its proposals for reducing the
                turnover rate, and the Parties shall mutually agree on a program
                to bring the turnover rate down to an acceptable level. In any
                event, notwithstanding transfer or turnover of Contractor
                Personnel, Contractor remains obligated to perform its
                obligations hereunder without degradation.

12.7    AIL THIRD PARTY SERVICES AND PRODUCTS.

        (a)     Contractor agrees to provide all reasonable cooperation with the
                agents, consultants, subcontractors and third party suppliers of
                AIL as requested by AIL to achieve functional compatibility of
                the Terminals with the AIL System.

        (b)     Third parties retained by AIL shall comply with Contractor's
                reasonable security and confidentiality requirements, and shall,
                to the extent performing work on Contractor-owned, licensed or
                leased Software, Terminals or Equipment, comply with
                Contractor's reasonable work standards, methodologies and
                procedures. Contractor shall immediately notify AIL if an act or
                omission of such a third party may cause a problem or delay in
                providing the Terminals or Services and shall work with AIL to
                prevent or circumvent such problem or delay.

12.8    PRIME CONTRACTOR.

        Contractor acknowledges and agrees that it is the prime contractor under
        this Agreement and as such, assumes full responsibility and liability
        for the performance of all Contractor Personnel and third parties used
        by Contractor hereunder to the same extent as if such obligations were
        performed by Contractor. Without limiting the generality of the
        foregoing, Contractor shall be responsible for discharging any Liens
        placed on any Terminals, Equipment or Software purchased by AIL, its
        Service Providers or Users hereunder, except for purchase money security
        interests as described in Section 24.17 below. Contractor shall be AIL's
        sole point of contact regarding the work performed hereunder, including
        with respect to payment.

12.9    CONTRACTOR'S USE OF SUBCONTRACTORS.

        (a)     As of the Effective Date, AIL hereby approves the following
                Subcontractors: the Principal Subcontractors and those entities
                set forth in Schedule 12. All Subcontractors to which Contractor
                discloses AIL Confidential Information must agree in writing to
                be bound to the non-disclosure, confidentiality and invention
                assignment provisions contained herein.

        (b)     Except as provided in Subsection (a) of this Section and to the
                extent AIL may agree otherwise in writing, Contractor shall not
                subcontract any of its obligations under this Agreement, which
                shall include the replacement of any previously approved
                Subcontractor, if the value of the subcontract is * * * or more
                (such subcontract or replacement subcontract, the "Material
                Subcontract" and the subcontractor proposed to perform same, the
                "Material Subcontractor"), except as follows:

                (i)     Prior to entering into a Material Subcontract,
                        Contractor shall give AIL not less than thirty (30)
                        days' prior written notice specifying the Services
                        affected, a description of the scope and material terms
                        (other than price) of such Material Subcontract, and the
                        identity and qualifications of the proposed Material

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                        Subcontractor. If AIL reasonably objects to the use of a
                        proposed Material Subcontractor, the parties shall
                        discuss AIL's concerns and Contractor will either use a
                        different Material Subcontractor or provide AIL a
                        detailed rationale in writing as to why it will use the
                        proposed Material Subcontractor.

                (ii)    Contractor shall disclose to the Subcontractor all the
                        terms and conditions of the Agreement that may impact
                        the Subcontractor, and the Subcontractor will be
                        required to comply with the obligations imposed by those
                        terms and conditions.

                (iii)   AIL also shall have the right during the Term to revoke
                        its prior approval of a Material Subcontractor and
                        direct Contractor to replace such Subcontractor or take
                        such other action as may be mutually agreed by the
                        Parties, if the Subcontractor's performance results in
                        an uncured material breach of this Agreement.
                        Notwithstanding the foregoing, AIL does not have the
                        unilateral right to revoke Contractor's use of any
                        Principal Subcontractor as a Subcontractor hereunder.

                (iv)    Without limiting the generality of Contractor
                        obligations set forth in Section 12.6, Contractor shall
                        remain responsible for obligations performed by
                        Subcontractors to the same extent as if such obligations
                        were performed by Contractor employees. Contractor shall
                        be AIL's sole point of contact regarding the Terminals
                        and Services, including with respect to payment
                        Contractor shall not disclose Confidential Information
                        of AIL or Joint Confidential Information to a
                        Subcontractor unless and until such Subcontractor has
                        agreed in writing to protect the confidentiality of such
                        information in a manner substantially equivalent to that
                        required of Contractor under this Agreement, and in all
                        respects, only on a "need-to-know" basis.

12.10   ON-SITE REPRESENTATIVES.

        Contractor agrees to provide reasonable office space and telephone and
        data line access at Contractor's primary design and manufacturing
        site(s) to AIL employees and designated representatives from time to
        time (each, an "On-Site Representative"). Each On-Site Representative
        shall have access to the work being performed by Contractor hereunder on
        a non-interference basis, including:

        (a)     the ability to move without escort within designated
                unrestricted areas within appropriate facilities;

        (b)     visibility into development and production of Terminals;

        (c)     right to attend regularly scheduled meetings, reviews and tests;
                and

        (d)     electronic access to Terminal-related documents and a right to
                copy same.

13.     SERVICE STANDARDS

13.1    GENERAL.

        By no later than sixty (60) days after the Effective Date, the Parties
        will develop and agree upon meaningful quantitative and qualitative
        standards of service governing Contractor's provision of the Terminals
        to AIL, Service Providers and Users, including the components thereof,
        and

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        performance of the Services, in which shall be attached hereto as
        Schedule 13 (collectively, the "Service Standards"). Contractor agrees
        to perform its applicable obligations hereunder in accordance with the
        Service Standards.

13.2    CONTRACTOR'S FAILURE TO PERFORM.

                Contractor shall, on each occasion on which it fails to meet any
                Service Standard:

                (i)     Promptly investigate and report on the root causes of
                        the problem;

                (ii)    Correct the problem and begin meeting the Service
                        Standard as soon as possible;

                (iii)   * * *; and

                (iv)    Advise AIL of the status of remedial efforts being
                        undertaken with respect to such failure.

13.3    PERIODIC REVIEWS.

        Upon six (6) months after the date of Acceptance of the Terminals, and
        at least annually thereafter, AIL and Contractor shall review the
        Service Standards and shall make adjustments to them as appropriate to
        reflect improved performance capabilities associated with advances in
        the technology and methods used to provide the Terminals, including the
        components thereof, and Services.

13.4    MEASUREMENT AND MONITORING TOOLS.

        Contractor shall utilize the necessary measurement and monitoring tools
        and procedures required to measure and report Contractor's provision of
        the Terminals, and Services against the applicable Service Standards.
        Such measurement and monitoring shall permit reporting at a level of
        detail sufficient to verify compliance with the Service Standards, and
        shall be subject to review, examine and/or audit by AIL. Contractor
        shall provide AIL with information and access to such tools and
        procedures upon request, for purposes of verification.

13.5    AIL'S FAILURE TO PERFORM.

        AIL's failure to perform any of its responsibilities set forth in this
        Agreement (other than AIL's obligations to pay undisputed amounts under
        Section 15.4) shall not be grounds for termination by Contractor. The
        foregoing sentence shall not limit Contractor's right to claim that
        AIL's failure to perform is a material breach for any other purpose
        under this Agreement. Contractor's nonperformance of its obligations
        under this Agreement shall be excused if and to the extent (i) such
        Contractor nonperformance results from AIL's failure to perform its
        responsibilities, (ii) Contractor provides AIL with reasonable notice of
        such nonperformance, and (iii) Contractor uses commercially reasonable
        efforts to perform its obligations notwithstanding AIL's failure to
        perform.

13.6    AIL'S SUSPENSION OF WORK.

        Notwithstanding the foregoing Section 13.5, AIL, by written notice, may
        at any time suspend work (including suspension of production work,
        delivery of Terminals and payment therefor, excluding suspensions due to
        catastrophic failures of satellites) for a period not to exceed * * *,
        and for further periods agreed to by the Parties. The Parties will agree
        to appropriate

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        adjustments to the Terminal Wholesale Price, delivery schedule and
        Milestones, but only to the extent that Contractor demonstrates that
        such suspension results in an increase in the cost to Contractor and a
        delay in performance hereunder. Such suspension of work shall not be
        considered a failure to perform or breach of this Agreement.
        Notwithstanding the foregoing, if AIL suspends work more than * * *
        period of the Term (excluding suspensions due to catastrophic failures
        of satellites), Contractor, at Contractor's election, may require upon
        written notice to AIL that AIL terminated this Agreement for its
        convenience and in accordance with Section 23.2. The Parties shall work
        together to minimize the impact of such suspension on pricing, delivery
        schedule and Contractor's performance (and AIL's liability in the event
        of termination). Any such suspension does not excuse AIL from paying
        undisputed amounts.

13.7    GENERAL PERFORMANCE AWARD.

        When Contractor provides exceptional performance (including, without
        limitation, meeting delivery requirements of AIL, Service Providers
        and/or Users), AIL, in its sole discretion, may pay Contractor a
        monetary award under this Agreement (the "General Performance Award").
        Such General Performance Award may be in an annual amount to be
        determined by AIL within sixty (60) days after the Effective Date.
        Contractor has no "right" to receive a Performance Award in a given
        year. AIL may at its sole discretion pay the General Performance Award
        to Contractor.

14.     TERMINAL PRICES

14.1    GENERAL.

        Contractor agrees to offer Terminals for sale to AIL's Service Providers
        at the prices per Terminal no greater than those Wholesale Prices
        offered to AIL hereunder. Accordingly, AIL and it Service Providers may
        purchase Terminals, Equipment, Services and Documentation (in addition
        to the Terminals covered in the Seed Order and MQPC) at prices that do
        not exceed the Wholesale Prices. The Wholesale Price of each Terminal
        shall include such Terminal and the items set forth in Section 1.7 of
        the SOW. If Contractor fails to offer the Terminals for sale at prices
        no greater than the Wholesale Prices specified herein (notwithstanding
        the fact that Contractor and the purchasing party (either AIL or a
        Service Provider) mutually agree upon a different purchase price), AIL
        shall be entitled to terminate the Co-Exclusivity Right, as its sole
        remedy during the Co-Exclusivity Period, as to such class of Terminal or
        all classes of Terminals after thirty (30) days written notice, unless
        in which time Contractor cures the pricing breach. Following the
        Co-Exclusivity Period, if Contractor materially fails (after the
        applicable cure period) to offer the Terminals for sale at prices no
        greater than the Wholesale Prices, as specified herein or determined in
        accordance with Section 14.2 (unless otherwise mutually agreed by
        Contractor and AIL or a Service Provider, as the case may be), AIL shall
        be entitled to terminate this Agreement in accordance with Section
        23.1(a) and cancel its outstanding Orders in accordance with Section
        8.8. If AIL so terminates this Agreement for Contractor's uncured
        material breach of this Section, (i) AIL shall be entitled to have
        Contractor's obligations hereunder completed by another party or
        parties, and (ii) Contractor shall not be liable to AIL for damages
        pursuant to Section 23.3(b) below or otherwise, provided that Contractor
        reasonably fulfills its obligations under Sections 23.3(a) and 23.4 and
        reasonably performs its other post-termination obligations hereunder.
        Notwithstanding the foregoing, AIL may not terminate this Agreement for
        Cause as provided above if AIL, at the time of termination, has two or
        more active vendors of Terminals (excluding Contractor). The foregoing
        remedies shall be AIL's sole remedies for breach of this Section.

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14.2    DETERMINATION OF WHOLESALE PRICES; ADJUSTMENTS.

        (a)     The applicable Wholesale Prices for Terminals shall be mutually
                agreed by the Parties prior to the beginning of Contract Year *
                * * and each subsequent Contract Year as follows. AIL and
                Contractor shall meet at least three (3) months prior to the
                start of the Contract Year and mutually agree upon a forecast
                for that Contract Year (on both quarterly and annual bases) of
                the approximate number of Terminals and Comparable Terminals
                that AIL expects to be sold and delivered into all markets by
                all vendors of Terminals and Comparable Terminals (the "Annual
                Forecast Number") and establish the Wholesale Price for such
                Contract Year in accordance with Schedule 4, as may be amended
                by the Parties to provide for additional Terminal configurations
                and Contract Years through the end of the Term. This Annual
                Forecast Number shall be updated on a quarterly basis against
                the actual quantities sold by all Terminal vendors in all
                markets and any other factors as agreed by the Parties, and the
                Wholesale Price applicable to the remainder of the Contract Year
                shall be adjusted up or down in accordance with Schedule 4 based
                on the revised Annual Forecast Number. The initial Annual
                Forecast Number is set forth in Schedule 6, or such increased
                number as the Parties may agree. The Wholesale Price offered to
                AIL and Service Providers for that particular Contract Year
                shall not exceed the Wholesale Price set forth on Schedule 4
                corresponding to the Annual Forecast Number. The Parties shall
                mutually agree upon Wholesale Prices for Contract Years * * *
                and beyond. If the Terminals (or costs to produce such Terminals
                resulting from factors beyond Contractor's reasonable control)
                have not substantially changed from Contract Year * * * to
                Contract Year * * * and beyond, the Wholesale Prices for
                Terminals delivered in Contract Year * * * and beyond shall not
                exceed the Wholesale Prices for Contract Year * * *. Wholesale
                Prices set forth in Schedule 4 (as of the Effective Date), are
                for Terminals complying, without any modifications which would
                result in a material impact on Terminal non-recurring
                engineering expense, Wholesale Price or delivery schedule, with
                relevant FCC, ETSI and EU standards (as in effect as of the
                Effective Date), including Type Approval and blanket licensing
                requirements (when appropriate), for all * * * Countries. It is
                the intent of the Parties that such Terminals are suitable for
                similar authorizations including Type Approval and blanket
                licensing (if applicable). In the event a * * * Country is
                identified which would require a material Terminal modification
                that would materially impact Terminal non-recurring engineering
                expense, Wholesale Price or delivery schedule, Contractor will
                provide AIL a proposal pursuant to Section 12.3(b). The Parties
                may amend Schedule 4 from time to time as needed to include
                Wholesale Prices for additional Terminal configurations
                supporting Standards for * * * Countries or for other Terminal
                modifications and enhancements in accordance with Section
                12.3(b), on a reasonable price basis.

        (b)     By no later than January 31 of the year following the subject
                Contract Year (unless otherwise agreed by the Parties), AIL
                shall report to Contractor the aggregate number of Terminals and
                Comparable Terminals actually sold and delivered by Contractor
                and all other vendors of Terminals and Comparable Terminals. In
                addition, within thirty (30) days of the end of each calendar
                quarter, AIL shall update such forecast to Contractor as
                described above.

14.3    MOST FAVORED CUSTOMER AND BENCHMARKING.

        (a)     Most Favored Customer. If Contractor provides Terminals,
                Comparable Terminals or terminals that are substantially
                functionally similar to Terminals, to a Service Provider

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                or User of AIL or to a Competitor of AIL and the prices charged
                to such User or Competitor for such terminals are lower than the
                prices charged to AIL for similar business terms, quantities and
                delivery dates, on a regional basis, the prices charged to AIL
                shall be appropriately adjusted to provide to AIL the benefit of
                such lower prices. Such adjustment shall be retroactive to the
                first date on which the lower charges to such User or Competitor
                became effective. Within thirty (30) days after the Effective
                Date of this Agreement and each anniversary of the Effective
                Date during the Term (as it may be extended), Contractor's chief
                financial officer shall certify in writing to AIL that
                Contractor is in compliance with Contractor's Most Favored
                Customer Status obligations herein and shall provide the
                information reasonably requested by AIL to verify such
                compliance. AIL shall retain the right to review, examine and/or
                audit Contractor using third party independent auditors if (1)
                the above certification is not so provided by Contractor or (2)
                AIL has reason to believe that information provided by
                Contractor is inaccurate.

        (b)     Benchmarking. If AIL presents Contractor with credible evidence
                that terminals for comparable and competitive systems (i.e.,
                Competitors of AIL) or for the AIL System are available in a
                given country at Prices more than * * * lower ("Substantially
                Lower Prices") than those offered by Contractor for comparable
                quantities under normalized payment terms (to account for net
                present value of the respective payment plans) under similar
                terms, conditions and specifications, AIL shall provide
                Contractor with the opportunity to match said lower prices. If
                Contractor elects not to match said lower prices, AIL shall be
                entitled to terminate the Co-Exclusivity Right with Contractor
                with respect to that country. This provision shall not apply to
                Wholesale Prices offered by AIL's other co-exclusive vendors
                during the Co-Exclusivity Period.

        (c)     Pricing Cooperation. Both Parties shall cooperate to assure that
                the price AIL charges for its services and the price Contractor
                charges for its Terminals are competitive in each country in
                which such services and Terminals are offered for sale by AIL
                and Contractor, respectively. Both Parties agree to work
                diligently throughout the Term to lower the pricing of the
                Terminals to become and remain competitive in the User markets
                served by AIL.

14.4    TAXES.

        Unless otherwise agreed to by the Parties in an Order, the Parties'
        respective responsibilities for taxes arising under or in connection
        with this Agreement shall be as follows:

        (a)     Each Party shall be responsible for any personal property taxes
                on property it owns or leases, for franchise and privilege taxes
                on its business, and for taxes based on its net income or gross
                receipts.

        (b)     Contractor shall be responsible for any sales, use, excise,
                value-added, services, consumption, and other taxes, customs and
                duties assessed or otherwise payable by Contractor on any goods
                or services that are used or consumed by Contractor in providing
                the Terminals and Services where the tax is imposed on
                Contractor's acquisition or use of such goods or services and
                the amount of tax is measured by Contractor's costs in acquiring
                such goods or services.

        (c)     AIL shall be responsible for any sales, use, excise,
                value-added, services, consumption, or other tax, customs and
                duties assessed on any particular Terminal or Service

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                purchased by AIL and delivered by Contractor to AIL or designee
                hereunder. Such taxes are in addition to the prices set forth
                herein and shall be identified separately on invoices. AIL shall
                also be responsible for taxes on goods and services for those
                items AIL has agreed to reimburse Contractor in this Agreement.

        (d)     The Parties agree to cooperate with each other to enable each to
                more accurately determine its own tax liability and to minimize
                such liability to the extent legally permissible. Contractor's
                invoices shall separately state the amounts of any taxes
                Contractor is collecting from AIL. Each Party shall provide and
                make available to the other any resale certificates, information
                regarding out-of-state or out-of-country sales or use of
                equipment, materials or services, and other exemption
                certificates or information reasonably requested by either
                Party.

        (e)     Contractor shall promptly notify AIL of, and coordinate with AIL
                the response to and settlement of, any claim for taxes asserted
                by applicable taxing authorities for which AIL is responsible
                hereunder, it being understood that with respect to any claim
                arising out of a form or return signed by a Party to this
                Agreement, such Party shall have the right to elect to control
                the response to and settlement of the claim, but the other Party
                shall have all rights to participate in the responses and
                settlements that are appropriate to its potential
                responsibilities or liabilities. If AIL requests Contractor to
                challenge the imposition of any tax, and Contractor agrees to do
                so, AIL shall reimburse Contractor for the reasonable legal fees
                and expenses it incurs. AIL shall be entitled to any tax refunds
                or rebates granted to the extent such refunds or rebates are for
                taxes that were paid by AIL.

15.     AIL PAYMENTS TO CONTRACTOR AND INVOICING

15.1    INITIAL PAYMENT.

        Within ten (10) days after AIL's receipt of an invoice therefor by
        Contractor, AIL will pay to Contractor the sum of * * * (the "Initial
        Payment") by electronic funds transfer in accordance with Contractor's
        wire instructions provided to AIL prior to the Effective Date. The
        Initial Payment shall constitute an NRE Payment (for Milestone No. 1) as
        described in Section 15.2 below.

15.2    PAYMENTS.

        (a)     In accordance with the Milestone and Payment Schedule, AIL will
                pay Contractor nonrecurring engineering payments in the
                aggregate of * * * (the "NRE Payments"). NRE Payments shall be
                conditioned on the achievement by Contractor of certain
                Milestones, as described in Section 15.3 below. If within sixty
                (60) days of the Effective Date, AIL notifies Contractor in
                writing that it does not desire Contractor to develop and
                produce * * * capability of the Terminal, then AIL's aggregate
                NRE Payment obligation hereunder shall be reduced to * * * , and
                the Milestone Payment for Milestone 8 shall be reduced by * * *.
                The NRE Payments shall cover services provided by Contractor
                including, without limitation, Terminal design and development
                obligations; the development, integration and production of the
                adaptive equalizer capability of the Terminals (as set forth in
                the SOW); Terminal prototypes; pre-production Terminals;
                Acceptance testing; Support Services (of up to * * *
                staff-hours, with the allocation of such hours as approved by
                AIL), as defined in Section 3 of the SOW, and Contractor shall
                be responsible for such other obligations as are set forth in
                the SOW. If AIL

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<PAGE>   49

                requests Contractor support hours in excess of * * *
                staff-hours, Contractor shall provide such services at rates not
                to exceed Contractor's time and materials rates set forth in
                Schedule 14. AIL will reimburse Contractor for its reasonable
                travel and related expenses required in performing Support
                Services, in accordance with Schedule 14. All Milestone Payments
                shall be paid in accordance with Section 15.3 and 15.4 below.
                The NRE Payment hereunder shall satisfy all AIL's unpaid
                financial obligations to Contractor pursuant to that certain
                Contract for Engineering Services Agreement dated March 29, 2000
                (the "Services Agreement").

        (b)     Following Contractor's successful completion of Production
                Readiness Review as set forth in the SOW and AIL's Acceptance of
                same, Contractor shall invoice AIL for an amount equal to * * *
                of the Seed Order value. AIL shall pay such invoiced amount at
                least one hundred eighty days (180) prior to the initial
                scheduled date of delivery of the Seed Order Terminals pursuant
                to Schedule 18, provided that (i) Contractor timely invoices
                AIL, (ii) Contractor has successfully completed and AIL has
                approved Contractor's readiness to deliver the Seed Order in
                accordance with Section 3.2.4 of the SOW and (iii) Contractor
                certifies to AIL in writing that Contractor continues to meet
                the requirements of the Production Readiness Review. The
                remaining balance of * * * per Terminal shall be due upon
                delivery of each Terminal in accordance with Sections 15.3 and
                15.4 below.

15.3    INVOICING.

        (a)     Following (i) Contractor's successful completion of each
                Milestone in accordance with the applicable Milestone Acceptance
                Criteria and all other applicable requirements of this Agreement
                and (2) Acceptance by AIL that the Milestone is complete,
                Contractor may invoice AIL for the applicable Milestone Payment.
                Each invoice shall be accompanied by Contractor's written
                certification that each Milestone to which the invoice relates
                has been fully and successfully completed in accordance with the
                Milestone Acceptance Criteria.

        (b)     Upon shipment of Terminals pursuant to an Order (including the
                Seed Order), Contractor will invoice AIL or the applicable
                Service Provider for amounts due pursuant to this Agreement for
                such Terminals. Such invoice shall include invoice date, Order
                number, Terminal part numbers and descriptions, quantities, unit
                prices and total amount due.

        (c)     For deliverables or services provided by Contractor (as mutually
                agreed by the Parties and other than those required hereunder or
                under the SOW), Contractor will invoice AIL upon delivery or at
                such time as otherwise mutually agreed. For Services (other than
                those required hereunder or under the SOW), Contractor will
                invoice AIL upon completion of the performance of such Services
                or at such times as mutually agreed. For annual Extended
                Warranty Services, Contractor will invoice AIL quarterly in
                advance. For fees and expenses incurred under Section 15.2 (for
                travel expenses related to the Support Services) and under
                Schedule 14, Contractor will invoice AIL monthly in arrears. All
                such invoices shall include invoice date, Order number,
                description, quantities, unit prices and total amount due. For
                invoices where the prices are not set forth in the Agreement,
                Contractor shall provide upon request, the calculations utilized
                to establish any charges and supporting details and information
                as to charges; provided, however that to the extent that a firm
                pricing quotation previously delivered to AIL by Contractor
                expressly provides such calculations, details and information,
                Contractor may

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<PAGE>   50

                cross-reference such quotation in the applicable invoice in lieu
                of Contractor including such calculations, details or
                information, as applicable.

        (d)     Invoices shall separately state the amounts of any taxes as set
                forth in Section 14.4(c) that Contractor is collecting from AIL.

15.4    PAYMENT DUE.

        (a)     Subject to Sections 15.8 and 21.3, and the other provisions of
                this Article 15, invoices provided for under Section 15.3 and
                properly submitted to AIL pursuant to this Agreement shall be
                due and payable by AIL within thirty (30) days after receipt by
                AIL. Milestone Payments will be considered due and payable when
                the corresponding Milestone is deemed Accepted.

        (b)     All amounts due and payable to Contractor under this Article 15
                shall be paid, at AIL's option, either (i) by check payable to
                the order of Contractor or (ii) by electronic funds transfer to
                Contractor from account(s) designated by AIL.

        (c)     Invoices for payment of * * * hereunder and any other undisputed
                amounts owed by Contractor to AIL shall be due and payable by
                Contractor within thirty (30) days after receipt of an invoice
                by Contractor.

        (d)     All undisputed payments made after the due date hereunder will
                be subject to an interest charge at an annual interest rate
                equal to * * *, for each calendar day the payment is overdue
                until the date payment is made.

15.5    ACCOUNTABILITY.

        Contractor shall maintain complete and accurate records of and
        supporting documentation for the amounts billable to and payments made
        by AIL hereunder, in accordance with Article 17 and with generally
        accepted accounting principles applied on a consistent basis. Contractor
        agrees to provide AIL with documentation and other information with
        respect to each invoice as may be reasonably requested by AIL to verify
        accuracy of the invoices and compliance with the provisions of this
        Agreement.

15.6    PRORATION.

        Periodic charges under this Agreement are to be computed on a calendar
        month basis, and shall be prorated for any partial month.

15.7    SET OFF.

        With respect to any amount to be paid by a Party hereunder, under this
        Agreement or any other agreement between the Parties, the Party may set
        off against such amount any amount that the other Party is obligated to
        pay such Party hereunder or thereunder.

15.8    DISPUTED CHARGES.

        Subject to Section 15.7, AIL shall pay undisputed charges when such
        payments are due under this Article 15. AIL may withhold payment of
        particular charges that AIL disputes in good faith. AIL will notify
        Contractor in the event it disputes any charges hereunder within ten
        (10) days of receipt of the invoice for such disputed charges and will
        set forth its reasons in reasonable detail

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<PAGE>   51

        for such dispute in such notification. All disputes under this Section
        shall be resolved in accordance with Article 22 below. If AIL is found
        liable to make the disputed payment, AIL will pay late payment charges
        in accordance with Section 15.4(d).

15.9    ENCUMBRANCES.

        Contractor shall not perfect any Lien upon any Terminal, Equipment or
        Software provided pursuant to this Agreement except as otherwise
        expressly permitted by this Agreement. All Terminals provided to AIL,
        its Service Providers and Users shall be free and clear of all Liens in
        accordance with Section 18.7, subject to Section 24.17.

16.     INFORMATION; CONFIDENTIALITY

16.1    CONTRACTOR INFORMATION.

        (a)     Contractor Background Information and Contractor Foreground
                Information shall be and remain the property of Contractor or
                its licensors, as the case may be and, subject to Subsection
                16.3(c), shall constitute Confidential Information of
                Contractor. AIL shall not possess or assert any Lien against or
                to Contractor Background Information or Contractor Foreground
                Information. No Contractor Background Information or Contractor
                Foreground Information, or any part thereof (excluding Joint
                Confidential Information), shall be sold, assigned, leased, or
                otherwise disposed of to third parties by AIL or commercially
                exploited by or on behalf of AIL, its employees, vendors,
                contractors or agents, except as expressly provided herein.

16.2    AIL INFORMATION.

        (a)     AIL Background Information and AIL Foreground Information shall
                be and remain the property of AIL or its licensors, as the case
                may be and, subject to Subsection 16.3(c), shall constitute
                Confidential Information of AIL. Contractor shall not possess or
                assert any Lien against or to any AIL Background Information or
                AIL Foreground Information. No AIL Background Information or AIL
                Foreground Information, or any part thereof (excluding Joint
                Confidential Information), shall be sold, assigned, leased, or
                otherwise disposed of to third parties by Contractor or
                commercially exploited by or on behalf of Contractor, its
                employees, vendors, contractors or agents, except as expressly
                provided herein.

        (b)     Upon AIL's request, but subject to any continuing need of
                Contractor to fulfill its obligations hereunder, the termination
                or expiration of this Agreement (in whole or in part) for any
                reason (including termination for cause) or, with respect to any
                particular data, on such earlier date that the same shall be no
                longer required by Contractor in order to render the Services
                hereunder, such AIL Confidential Information (including copies
                thereof) shall be promptly returned to AIL by Contractor in a
                form reasonably requested by AIL or, if AIL so elects, shall be
                destroyed. Contractor shall certify to AIL in writing that
                Contractor has fully complied with the letter and the spirit of
                this Subsection.

        (c)     AIL Confidential Information shall not be utilized by Contractor
                for any purpose other than that of performing its obligations
                hereunder.

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<PAGE>   52

16.3    CONFIDENTIALITY.

        (a)     Confidential Information. Contractor and AIL each acknowledge
                that they may be furnished with, receive, or otherwise have
                access to information of or concerning the other Party which
                such Party considers to be confidential, proprietary, a trade
                secret or otherwise restricted. As used in this Agreement and
                subject to Subsection (c)(i) of this Section, "Confidential
                Information" means all information, in any form, furnished or
                made available directly or indirectly by one Party to the other,
                including such information developed by either Party hereunder
                and used in or with the Terminals, which is marked confidential,
                restricted, proprietary, or with a similar designation,
                including all AIL Background Information, AIL Foreground
                Information, Contractor Background Information and Contractor
                Foreground Information. Confidential Information also shall
                include, whether or not designated "Confidential Information",
                (i) all specifications, designs, documents, correspondence,
                software, documentation, Source Code, Escrowed Materials, data
                and other materials and work products produced by either
                Contractor or its Subcontractors in the course of performance of
                this Agreement, (ii) all information concerning the operations,
                affairs and businesses of a Party, the financial affairs of a
                Party, and the relations of a Party with its customers,
                employees and service providers (including customer lists,
                customer information, account information and consumer markets),
                (iii) software provided to a Party by or through the other
                Party; and (iv) other information, systems designs and
                architecture, and data stored on magnetic media or otherwise or
                communicated orally by either Party, which a reasonable person
                would assume to be confidential, and obtained, received,
                transmitted, processed, stored, archived, or maintained by the
                other Party under this Agreement.

        (b)     Obligations.

                (i)     Each Party's Confidential Information shall remain the
                        property of that Party or its licensors except as
                        expressly provided otherwise by the other provisions of
                        this Agreement. AIL and Contractor shall each use at
                        least the same degree of care, but in any event no less
                        than a reasonable degree of care, to prevent disclosing
                        to third parties the Confidential Information of the
                        other as it employs to avoid unauthorized disclosure,
                        publication or dissemination of its own information of a
                        similar nature; provided that the Parties may disclose
                        such Confidential Information to entities performing
                        services required hereunder including subcontractors,
                        suppliers or agents where (i) use of such entity is
                        permitted to be used under this Agreement, (ii) such
                        disclosure is necessary or otherwise naturally occurs in
                        that entity's scope of responsibility, and (iii) the
                        entity agrees in writing to assume the obligations
                        described in this Section 16.3.

                (ii)    As requested by AIL during the Term and upon expiration
                        or any termination of this Agreement (in whole or in
                        part) and completion of Contractor's obligations under
                        this Agreement subject to Contractor's continuing need
                        to fulfill its obligations hereunder, Contractor shall
                        return or destroy, as AIL may direct in writing, all
                        material in any medium that contains, refers to, or
                        relates to AIL Confidential Information, and retain no
                        copies. Contractor shall certify to AIL in writing that
                        it has compiled with the spirit and the letter of this
                        Subsection.

                (iii)   Each Party shall take reasonable steps to ensure that
                        its employees comply with this Section 16.3.

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<PAGE>   53

                (iv)    In the event of any disclosure or loss of, or inability
                        to account for, any Confidential Information of the
                        furnishing Party, the receiving Party shall notify the
                        furnishing Party promptly upon becoming aware thereof.

        (c)     Exclusions.

                (i)     "Confidential Information" shall exclude any particular
                        information which Contractor or AIL can demonstrate (1)
                        was, at the time of disclosure to it, in the public
                        domain; (2) after disclosure to it, is published or
                        otherwise becomes part of the public domain through no
                        fault of the receiving Party; (3) was in the possession
                        of the receiving Party at the time of disclosure to it;
                        (4) was received after disclosure to it from a third
                        party who had a lawful right to disclose such
                        information to it without any obligation to restrict its
                        further use or disclosure; or (5) was independently
                        developed by the receiving Party without reference to
                        Confidential Information of the furnishing Party. In
                        addition, a Party shall not be considered to have
                        breached its obligations by disclosing Confidential
                        Information of the other Party as required to satisfy
                        any legal requirement or regulations of a competent
                        government body provided that, immediately upon
                        receiving any such request and to the extent that it may
                        legally do so, such Party advises the other Party
                        promptly and prior to making such disclosure in order
                        that the other Party may interpose an objection to such
                        disclosure, take action to assure confidential handling
                        of the Confidential Information, or take such other
                        action as it deems appropriate to protect the
                        Confidential Information.

                (ii)    Either Party may disclose the terms and conditions of
                        this Agreement to third parties that (1) have expressed
                        a bona fide interest in consummating a significant
                        financing, merger or acquisition transaction between
                        such third parties and the disclosing Party, (2) have a
                        reasonable ability (financial and otherwise) to
                        consummate such transaction, and (3) have executed a
                        nondisclosure agreement that includes within its scope
                        the terms and conditions of this Agreement. Each Party
                        shall endeavor to delay the disclosure of the terms and
                        conditions of this Agreement until the status of
                        discussions concerning such transaction warrants such
                        disclosure. In addition, either Party may disclose the
                        terms and conditions of this Agreement to its
                        subcontractors, suppliers and agents under
                        confidentiality obligations having a need to know.

        (d)     Loss of Confidential Information. In the event of any disclosure
                or loss of, or inability to account for, any Confidential
                Information of the furnishing Party, the receiving Party shall
                promptly, at its own expense: (i) notify the furnishing Party in
                writing; (ii) take such actions as may be necessary or
                reasonably requested by the furnishing Party to minimize the
                violation; and (iii) cooperate in all reasonable respects with
                the furnishing Party to minimize the violation and any damage
                resulting therefrom.

        (e)     No Implied Rights. Nothing contained in this Section shall be
                construed as obligating a Party to disclose its Confidential
                Information to the other Party, or as granting to or conferring
                on a Party, expressly or impliedly, any rights or license to the
                Confidential Information of the other Party.

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<PAGE>   54

17.     EXAMINATION AND AUDIT OF INFORMATION; RECORDKEEPING

17.1    EXAMINATION AND AUDIT RIGHTS.

        Contractor grants AIL the right to review, examine and/or audit
        Contractor's and Subcontractors' business and financial information
        relating to this Agreement as necessary to verify Contractor's
        performance hereunder, including manufacturing operations, quality
        control, production capacity and capability, failure rates, repairs and
        replacements, and responsiveness and/or costs and expenses of
        termination or changes hereunder, and AIL may employ, at AIL's expense,
        a mutually agreed-upon major accounting firm to conduct any review,
        examination or audit of costs and expenses. If a review, examination or
        audit of financial information reveals overcharges in excess of * * *,
        Contractor shall pay the costs and expenses of the review, examination
        or audit.

17.2    RECORDKEEPING OBLIGATIONS.

        Contractor shall maintain complete and accurate records of and
        supporting documentation for all invoices submitted by Contractor under
        this Agreement, for out-of-pocket expenses or if AIL has agreed to pay
        Contractor and for hours expended for services billable on a rated basis
        to AIL, in accordance with generally accepted accounting principles
        applied on a consistent basis. Except for costs associated with expenses
        AIL has agreed to reimburse Contractor on an out-of-pocket expense
        basis, AIL will not be entitled to audit Contractor's cost information
        concerning the cost to produce the Terminals and Services provided under
        this Agreement. Contractor agrees to provide AIL with documentation and
        other information with respect to each such invoice as may be reasonably
        requested by AIL to verify accuracy and compliance with the provisions
        of this Agreement. Upon AIL's reasonable request, AIL and its authorized
        agents and representatives shall have access to such business and
        financial records for purposes of review, examination and/or audit
        during normal business hours during the Term and for a period of three
        (3) years after termination of this Agreement. In the event any
        overpayment is made by AIL under this Agreement, either discovered
        during a review, examination, audit or otherwise, Contractor shall
        promptly pay AIL the amount of such overcharge, along with interest at
        Prime Rate from the date such payments were originally made.

18.     REPRESENTATIONS AND WARRANTIES

18.1    PASS-THROUGH WARRANTIES.

        Contractor will from time to time provide certain Terminal components,
        Equipment, Software and other items for which Contractor is entitled to
        warranties from the manufacturers, lessors or licensors of such items.
        Contractor shall pass through to AIL, its Service Providers and Users
        that purchase Terminals, Equipment or Software the benefits of such
        warranties to the extent that Contractor is able pursuant to any
        agreements between Contractor and such manufacturers, lessors or
        licensors.

18.2    WORK STANDARDS.

        Contractor warrants that the Services shall be rendered with promptness
        and diligence and shall be executed in a workmanlike manner, in
        accordance with the practices and high professional standards used in
        well-managed operations performing services similar to the Services.
        Contractor also warrants that it shall use adequate numbers of qualified
        individuals with suitable training, education, experience, and skill to
        perform the Services.

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<PAGE>   55

        18.3   TERMINAL AND SERVICES WARRANTIES.

                "Warranty Period" means * * * from the earlier to occur of (i)
                the date of acceptance of delivery of any production Terminal by
                AIL or its Service Providers or (ii) * * * from the date of
                shipment to any User. AIL, Service Providers or Users may extend
                the Warranty Period one or more times in their respective sole
                discretion, for additional consecutive one-year periods each
                without lapse, upon payment of the Extended Warranty fee set
                forth in Schedule 15 (the aggregate of such extensions the
                "Extended Warranty Period"). In addition, Contractor shall offer
                an Extended Warranty to Users that have allowed a prior Warranty
                Period or Extended Warranty Period to lapse, upon payment by
                such User of a commercially reasonable fee. Contractor's
                procedures for obtaining Warranty services are set forth in
                Schedule 16 attached hereto. Contractor warrants to AIL as
                follows and AIL may incorporate such warranties into its
                agreements with Service Providers and Users to which AIL
                supplies Terminals, with AIL as the warranting party. Contractor
                will include with each Terminal shipped to AIL appropriate
                documentation that sets forth Contractor's warranty policy to
                Users.

        (a)     Contractor warrants that Terminals provided under this Agreement
                shall be free from defects in material and workmanship, and
                shall operate in accordance with the SOW, Documentation and
                applicable Standards (in effect for that Terminal configuration
                at the time of delivery) upon delivery and during the Warranty
                Period and any Extended Warranty Period. Contractor further
                warrants that Terminals provided hereunder shall be free of any
                defect in design that results in non-conformance of a Terminal
                to the SOW and applicable Standards in effect for that Terminal
                configuration at the time of delivery. Contractor further
                warrants that the Terminals are built in accordance with the
                applicable requirements set forth in the SOW.

        (b)     Contractor represents, warrants and covenants that all Terminal
                components provided hereunder shall be new, not refurbished or
                re-manufactured. Notwithstanding the foregoing, Contractor may
                use refurbished or re-manufactured parts for warranty repair or
                replacement actions.

        (c)     Contractor warrants that it shall maintain the Terminals such
                that the Terminals conform to the SOW during the Warranty Period
                and Extended Warranty Period. Such maintenance shall include:

                (i)     in accordance with the procedures set forth in Schedule
                        16, perform repairs on Terminals, including any repairs
                        required by third party manufacturers and any repairs
                        recommended by third party manufacturers and required
                        for the intended operation of the Terminals;

                (ii)    providing any modification or enhancements that are
                        necessary to maintain the Terminals in compliance with
                        applicable Standards, as well as Documentation related
                        to such enhancements;

                (iii)   providing any release, update, alteration, modification,
                        enhancement or improvement that is generally available
                        to Contractor's other customers under warranty or
                        extended warranty;

                (iv)    providing code corrections or maintenance patches
                        (including, all bug fixes, error correction, revisions,
                        modifications, and maintenance recommended by third
                        party vendors) will be supplied to correct a Defect in
                        order to bring the

                                       48
<PAGE>   56

                        Software into conformance with the SOW. Contractor shall
                        also replace the Software if the media is destroyed or
                        damaged unless and to the extent the damage is on
                        account of AIL's or its Service Providers' or Users'
                        improper use (which shall not be improper use if used in
                        accordance with the documentation or as instructed by
                        Contractor's) and as a result such Software are unusable
                        or fail to operate in accordance with the SOW;

                (v)     providing all improvements, enhancements, extensions,
                        upgrades and other changes to the Software that are
                        released by the Contractor. Contractor shall
                        concurrently provide updated Documentation reflecting
                        such changes. Contractor shall also supply, when
                        necessary, updated Software required to cause the
                        Software to operate with upgraded Terminals (including
                        engineering changes) or under new versions or releases
                        of the operating system or other system software
                        designed for the Software;

                (vi)    providing telephone support to AIL and its Service
                        Providers and Users, at no charge during the Warranty
                        Period and Extended Warranty Period, in order to assist
                        such parties to locate and correct functional or
                        operational problems with the Terminals. Such support
                        shall be provided on a 24 hour, 7 days per week, 365
                        days per year basis via Contractor help desk.
                        Contractor's technical engineering support is available
                        8:00 a.m. to 8:00 p.m. EST during normal business days
                        at the rates set forth in Schedule 14. In addition,
                        Contractor's technical engineering support is available
                        on a 24 hour, 7 days per week, 365 days per year basis
                        for major problems as determined by AIL at the rates set
                        forth in Schedule 14. Contractor shall provide a single
                        contact number for AIL, its Service Providers and Users
                        to report problems;

                (vii)   in the event of problems that cannot be corrected with
                        telephone support or on a remote basis within the
                        applicable Performance Standards, Contractor shall
                        provide on-site assistance at its then-current
                        commercial rates. However, if the problem is due to
                        AIL's acts or omissions and on-site assistance is
                        required, Contractor's personnel rates set forth in
                        Schedule 14 will apply;

                (viii)  during the Warranty Period or any Extended Warranty
                        Period, if Contractor is required under the Agreement to
                        repair a particular ODU or IDU more than * * * times in
                        any rolling * * * period, Contractor shall replace such
                        ODU or IDU, as the case may be, in its entirety at no
                        charge; provided, however, if any Service Provider or
                        User would require more than * * * repairs in the
                        aggregate on a particular Terminal (IDU and ODU) in any
                        rolling * * * period, Contractor shall replace the
                        entire Terminal at no charge;

                (ix)    in the event AIL, a Service Provider or User receives a
                        Terminal that is Dead on Arrival, promptly replace such
                        Terminal; and

                (x)     in the event that any ODU or IDU is determined to have a
                        "Pattern Defect" during the Warranty Period, Contractor
                        will promptly modify the design, material and/or
                        manufacturing process such that the Pattern Defect is
                        eliminated, and Contractor shall deliver, at its
                        expense, replacements for all affected ODU or IDU, as
                        the case may be, or parts thereof to eliminate such
                        Pattern Defect. A "Pattern Defect" will be determined to
                        exist in any ODU or IDU when * * * or more of the total
                        number of Terminals (IDUs and ODUs) (for any Terminal

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<PAGE>   57

                        configuration or in the aggregate) shipped during any
                        rolling * * * period fails, due to the same defect in
                        design, material and/or manufacturing process carried
                        out by Contractor or its Subcontractors. This warranty
                        shall be effective for the Term (as it may be extended
                        or renewed), starting at first shipment and ending upon
                        the later of the end of the Warranty Period or Extended
                        Warranty Period (if any) for each Terminal delivered.

        (d)     Contractor represents and warrants that it shall offer to AIL,
                Service Providers and Users the post-warranty support and repair
                services set forth in Schedule 17 attached hereto and maintain
                the availability of Terminal parts and sub-parts, consistent
                with the Terminal redundancy design, for a period of the later
                of (i) expiration of all applicable Extended Warranty Periods
                plus five years and (ii) seven years following the last delivery
                of Terminals under this Agreement. Subject to the foregoing
                support periods, Contractor shall provide to AIL written
                notification at least six (6) months prior to the
                discontinuation of manufacture of any Terminal components
                associated with this Agreement to permit AIL a last time
                purchase opportunity; provided, however, during the Term, as
                long as Contractor continues to manufacture Terminals,
                Contractor shall not discontinue any Terminal component if no
                replacement exists that will permit the Terminals to continue to
                meet or exceed the SOW. Contractor acknowledges and agrees that
                it shall not utilize this "discontinuation" provision as a means
                to cease supplying Terminals during the Term.

        (e)     For a period of * * * years following delivery of the initial
                production unit of the * * * Terminal, Contractor warrants that
                it shall stock spare Terminal and Equipment parts in accordance
                with the SOW's Product Support Plan. Periodically, the Parties
                will meet to review Contractor's spare parts inventory levels.

        (f)     Contractor warrants that all Terminals, including all updates,
                upgrades and revisions to Terminals and/or Software, shall be
                backward compatible to existing production Terminals or prior
                releases so that all applications and other items that can be
                used in connection with a Terminal at any time can be used in
                connection with future Terminals in materially the same manner
                and with materially equivalent performance. In addition, all
                updates, upgrades and revisions to Terminals and/or Software,
                shall be fully integrated, compatible and operational with the
                AIL System, and shall be built in accordance with the applicable
                Standards. In no event shall AIL be required to upgrade its
                Software if such upgrade requires a corresponding Terminal
                upgrade. In such event, Contractor shall continue to support the
                release of the Software that did not require a corresponding
                Terminal upgrade as set forth in this Agreement. Terminal
                upgrades to implement Software enhancements or improvements that
                AIL desires to implement shall be provided to AIL at mutually
                agreed upon rates.

        (g)     Contractor warrants, to its actual knowledge, that the
                Terminals, the Services and the other deliverables provided by
                Contractor to AIL hereunder do not and shall not infringe upon
                any third party Intellectual Property Rights.

        (h)     Contractor shall provide access to appropriate technical
                resources to AIL's appropriate personnel in order to resolve any
                problem that AIL cannot resolve through lower level support,
                including help desk support and field service support for errors
                that cannot be remotely diagnosed and cured in accordance with
                Section 18.3(c)(vi) or, following the applicable Warranty Period
                or Extended Warranty Period, if any, in accordance with Schedule
                17.

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        (i)     In the event of a breach of the foregoing representations,
                warranties and covenants during the Warranty Period or an
                Extended Warranty Period, and upon written notice from AIL
                describing the breach, Contractor shall at no charge to AIL: (i)
                in the case of Terminals, repair or replace, at Contractor's
                discretion, such Terminals so that they are compliant with the
                warranty within the time period specified as part of the
                Performance Standards, and (ii) in the case of Services,
                immediately re-perform the Services. In the event Contractor
                fails to repair or replace such Terminals or to perform such
                Services, AIL reasonably may do so at Contractor's expense.

        (j)     The foregoing representations and warranties will not apply if
                and to the extent, and so long as not caused by Contractor or
                its Subcontractors or agents where:

                (i)     defects in Terminals delivered hereunder or infringement
                        of any third party Intellectual Property Right are
                        caused by alteration, modification, or repair by any
                        person other than Contractor or its Subcontractors or
                        agents or due to an act of God; provided, however, the
                        foregoing exclusion shall not apply with respect to AIL
                        or AIL's subcontractors' making of minor changes or if
                        an alteration, modification or repair is authorized by
                        the Documentation and performed in accordance with such
                        Documentation or otherwise by Contractor or its
                        Subcontractors or agents in writing;

                (ii)    defects are caused by AIL or AIL's suppliers or
                        subcontractors mishandling or abuse, excluding
                        specifically Contractor, its Affiliates and their
                        suppliers and Subcontractors;

                (iii)   defects are caused from improper operation,
                        interconnection or installation by any person other than
                        Contractor or its Subcontractors; or

                (iv)    infringement of any third party Intellectual Property
                        Right is caused by the combination of a Terminal or the
                        Software and technology or software of any other party,
                        other than software or technology provided or required
                        by Contractor for use of the Terminals and the AIL
                        System, where no infringement would have occurred
                        without such combination, unless (i) AIL did not have
                        actual knowledge of such infringement, (ii) Contractor
                        had actual knowledge of such infringement and (iii)
                        Contractor failed to disclose the infringement to AIL.

18.4    DOCUMENTATION.

        Contractor warrants that all Documentation provided by Contractor shall
        be accurate, complete and written in a manner specified in the SOW.

18.5    EFFICIENCY AND COST EFFECTIVENESS.

        Contractor warrants that it shall use its reasonable efforts to use
        efficiently the resources or services necessary to provide the Terminals
        and the Services. Contractor warrants that it shall use its reasonable
        efforts to perform the Services and develop, manufacture and deliver the
        Terminals in the most cost-effective manner consistent with the required
        level of quality and performance.

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<PAGE>   59

18.6    INDUCEMENTS.

        Neither Party has offered or provided, nor will it offer or provide, any
        inducements in violation of law, including the Foreign Corrupt Practices
        Act or other corrupt practices laws, or of any written AIL policy
        provided to Contractor in connection with this Agreement.

18.7    OWNERSHIP OR USE.

        (a)     Contractor represents, warrants and covenants that it is either
                the owner of, or authorized to distribute, sublicense and use,
                the Contractor Confidential Information as provided herein.

        (b)     Contractor represents, warrants and covenants that AIL shall
                receive marketable title to all Terminals provided pursuant to
                this Agreement and shall be entitled to the rights of possession
                and quiet enjoyment thereto, free of any Liens, except to the
                extent otherwise expressly provided by this Agreement.

18.8    AUTHORIZATION.

        Each Party represents and warrants to the other that:

        (a)     it has the requisite corporate power and authority to enter into
                this Agreement and to carry out the transactions contemplated by
                this Agreement;

        (b)     the execution, delivery and performance of this Agreement and
                the consummation of the transactions contemplated by this
                Agreement have been duly authorized by the requisite corporate
                action on the part of such Party; and

        (c)     is not subject to any contractual or other obligation that would
                prevent it from entering into this Agreement.

18.9    VIRUSES.

        Contractor warrants that no Viruses are coded or introduced into any
        Terminal. If a Virus is found in a Terminal, Contractor, at no
        additional charge to AIL, any Service Provider or User, shall remove
        such Virus and use its best efforts to assist AIL in reducing the
        effects of the Virus and, if the Virus causes a loss of operational
        efficiency or loss of data, to assist AIL to the same extent to mitigate
        and restore such losses.

18.10   DISABLING CODE.

        Contractor warrants that no code, device or routine (including, without
        limitation, time bombs, back doors or drop dead devices) that would have
        the effect of disabling or otherwise shutting down all or any portion of
        a Terminal are coded or introduced into any Terminal at the time the
        Terminal is delivered by Contractor ("Disabling Code"), unless AIL
        authorizes Contractor to include any such code. If any such unauthorized
        Disabling Code is found in a Terminal, Contractor, at no additional
        charge to AIL, any Service Provider or User, shall remove such Disabling
        Code and use its best efforts to assist AIL in reducing the effects of
        the Disabling Code and, if the Disabling Code causes a loss of
        operational efficiency or loss of data, to assist AIL to the same extent
        to mitigate and restore such losses. Contractor shall not invoke any
        Disabling Code at any time, including upon expiration or termination of
        this Agreement (in whole or in part) for any reason, without AIL's prior
        written consent.

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<PAGE>   60

18.11   YEAR 2000.

        Contractor represents and warrants that the Terminals are Year 2000
        Compliant.

18.12   DISCLAIMER.

        EXCEPT AS SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER
        WARRANTIES EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY
        OR FITNESS FOR ANY PARTICULAR PURPOSE.

19.     INSURANCE

        Contractor shall during the Term have and maintain in force the
        following insurance coverages:

        (a)     Worker's compensation insurance (including occupational illness
                or disease coverage, or other similar social insurance in
                accordance with the law of the state exercising jurisdiction
                over the employee), and employer's liability insurance with a
                minimum limit of the higher of (i) * * * per occurrence, and
                (ii) any amount required by law.

        (b)     Automotive Liability Insurance covering use of all owned,
                non-owned, and hired automobiles with a minimum combined single
                limit of * * * per occurrence for bodily injury and property
                damage liability. This policy shall be endorsed to name AIL as
                additional insured.

        (c)     Commercial general liability insurance, including products,
                completed operations liability and personal injury, contractual
                liability and broad form property damage liability coverage for
                damages to any property with a minimum combined single limit of
                * * * per occurrence.

        (d)     All Risk Property Insurance (with AIL as loss payee as its
                interests appear) on equipment, data, media and valuable papers,
                including extra expense coverage, with a minimum limit adequate
                to cover such risks on a replacement cost basis.

        (e)     Umbrella Liability Insurance with a minimum limit of * * * in
                excess of the insurance under policies indicated in Subsections
                (a), (b) and (c).

        (f)     Professional liability, errors and omissions insurance.

        The foregoing insurance coverages shall be primary and non-contributing
        with respect to any other insurance or self insurance which may be
        maintained by AIL, and shall be endorsed to AIL as an additional insured
        with the exception of Subsection 19(f) above and Workers Compensation.
        Contractor shall cause its insurers to issue certificates of insurance
        evidencing that the coverages and policy endorsements required under
        this Agreement are maintained in force and that not less than thirty
        (30) days written notice shall be given to AIL prior to any
        modification, cancellation or non-renewal of the policies. The insurers
        selected by Contractor shall have an A.M. Best rating of A-XII or better
        or, if such ratings are no longer available, with a comparable rating
        from a recognized insurance rating agency.

20.     INDEMNITIES

20.1    INDEMNITY BY CONTRACTOR.

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        Contractor shall indemnify, defend and hold harmless AIL and its
        affiliates and their respective officers, directors, employees, agents,
        successors, and assigns from any and all Losses arising out of any of
        the following:

        (a)     third party claims arising out of Contractor's performance
                hereunder, including breach of this Agreement;

        (b)     third party claims arising out of Contractor's failure to
                observe or perform any duties or obligations to third parties,
                including its Subcontractors;

        (c)     third party claims arising out of the manufacture, distribution,
                or intended use of Terminals, due to Contractor's negligence or
                willful misconduct;

        (d)     third party claims (including claims by any employee, agent,
                customer, business invitee or business visitor or other person)
                for death or personal injury caused by the tortious conduct of
                Contractor or its Affiliates;

        (e)     claims for damage to real or tangible property caused by the
                tortious conduct of Contractor or its Affiliates;

        (f)     Contractor's breach of its obligations with respect to AIL
                Confidential Information;

        (g)     third party claims for infringement of Contractor's Intellectual
                Property Rights;

        (h)     governmental claims arising out of Contractor's failure to
                comply with applicable law or to obtain those permits it is
                required to obtain under the Contract;

        (i)     any claim, demand, charge, action, cause of action, or other
                proceeding asserted against the indemnitee but resulting from an
                act or omission of the indemnitor in its capacity as an employer
                of a person.

20.2    INDEMNITY BY AIL.

        AIL agrees to indemnify, defend and hold harmless Contractor and its
        Affiliates and their respective officers, directors, employees, agents,
        successors, and assigns, from any and all Losses from claims arising
        from, in connection with, or based on allegations of any of the
        following:

        (a)     third party claims arising out of AIL's performance hereunder,
                including breach of this Agreement;

        (b)     third party claims arising out of AIL's failure to observe or
                perform any duties or obligations to third parties;

        (c)     third party claims arising out of AIL's breach of its
                obligations with respect to Contractor Confidential Information;

        (d)     third party claims (including claims by any employee, agent,
                customer, business invitee or business visitor or other person)
                for death or personal injury caused by the tortious conduct of
                AIL or its Affiliates;

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<PAGE>   62

        (e)     claims for damage, loss or destruction of any real or tangible
                personal property caused by tortious conduct of AIL or its
                Affiliates;

        (f)     third party claims for infringement of AIL's Intellectual
                Property Rights;

        (g)     any claim, demand, charge, action, cause of action, or other
                proceeding asserted against the indemnitee but resulting from an
                act or omission of the indemnitor in its capacity as an employer
                of a person; and

        (h)     claims of infringement of third party Intellectual Property
                Rights, alleged to have occurred because of AIL-furnished
                equipment or components, if any, or other resources provided by
                AIL directly to Contractor for incorporation into the Terminals.

20.3    INFRINGEMENT.

        If any item used by Contractor to provide the Terminals or Services
        becomes, or in Contractor's reasonable opinion is likely to become, the
        subject of an infringement or misappropriation claim or proceeding, in
        addition to indemnifying AIL as provided in this Article 20 and to the
        other rights AIL may have under this Agreement, Contractor shall,
        promptly at Contractor's expense:

        (a)     secure the right to continue using the item; or

        (b)     if the action described in Subsection (a) cannot be accomplished
                by Contractor, replace or modify the item to make it
                non-infringing, provided that any such replacement or
                modification will not degrade the performance or quality of the
                affected Terminals or Services; or

        (c)     if the action described in Subsection (b) of this Section cannot
                be accomplished by Contractor, and only in such event, provide
                AIL with a refund equal to the lesser of (A) AIL's cover costs
                and expenses to replace the affected Terminals or Services and
                (B) the total amounts paid hereunder for the affected Services
                and Terminals, less reasonable depreciation. With respect to
                Terminals, such payment shall be made contemporaneously with
                AIL's return of the affected Terminals or, if otherwise directed
                by court order, removal from AIL's network.

20.4    INDEMNIFICATION PROCEDURES.

        With respect to third party claims, the following procedures shall
        apply:

        (a)     Notice. Promptly after receipt by any entity entitled to
                indemnification under Sections 20.1 through 20.3 of notice of
                the commencement or threatened commencement of any civil,
                criminal, administrative, or investigative action or proceeding
                involving a claim in respect of which the indemnitee will seek
                indemnification pursuant to any such Section, the indemnitee
                shall notify the indemnitor of such claim in writing. No failure
                to so notify an indemnitor shall relieve it of its obligations
                under this Agreement except to the extent that it can
                demonstrate damages attributable to such failure. Within fifteen
                (15) days following receipt of written notice from the
                indemnitee relating to any claim, but no later than ten (10)
                days before the date on which any response to a complaint or
                summons is due, the indemnitor shall notify the indemnitee in
                writing if the indemnitor elects to assume control of the
                defense and settlement of that claim (a "Notice of Election").

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<PAGE>   63

        (b)     Procedure Following Notice of Election. If the indemnitor
                delivers a Notice of Election relating to any claim within the
                required notice period, the indemnitor shall be entitled to have
                sole control over the defense and settlement of such claim;
                provided that (i) the indemnitee shall be entitled to
                participate in the defense of such claim and to employ counsel
                at its own expense to assist in the handling of such claim, and
                (ii) the indemnitor shall obtain the prior written approval of
                the indemnitee before entering into any settlement of such claim
                or ceasing to defend against such claim. After the indemnitor
                has delivered a Notice of Election relating to any claim in
                accordance with the preceding paragraph, the indemnitor shall
                not be liable to the indemnitee for any legal expenses incurred
                by the indemnitee in connection with the defense of that claim.
                In addition, the indemnitor shall not be required to indemnify
                the indemnitee for any amount paid or payable by the indemnitee
                in the settlement of any claim for which the indemnitor has
                delivered a timely Notice of Election if such amount was agreed
                to without the written consent of the indemnitor.

        (c)     Procedure Where No Notice of Election Is Delivered. If the
                indemnitor does not deliver a Notice of Election relating to any
                claim within the required notice period, the indemnitee shall
                have the right to defend and/or settle the claim in such manner
                as it may deem appropriate, at the cost and expense of the
                indemnitor. The indemnitor shall promptly reimburse the
                indemnitee for all such Losses.

20.5    SUBROGATION.

        In the event that an indemnitor shall be obligated to indemnify an
        indemnitee pursuant to Sections 20.1 through 20.3, the indemnitor shall,
        upon payment of such indemnity in full, be subrogated to all rights of
        the indemnitee with respect to the claims to which such indemnification
        relates.

21.     LIABILITY

21.1    GENERAL INTENT.

        Subject to the specific provisions of this Article 21, it is the intent
        of the Parties that each Party shall be liable to the other Party for
        any actual damages incurred by the non-breaching Party as a result of
        the breaching Party's failure to perform its obligations in the manner
        required by this Agreement.

21.2    LIABILITY RESTRICTIONS.

        (a)     SUBJECT TO SUBSECTIONS (b), (c) AND (d) OF THIS SECTION, IN NO
                EVENT, WHETHER IN CONTRACT OR IN TORT (INCLUDING BREACH OF
                WARRANTY, AND STRICT LIABILITY IN TORT), SHALL A PARTY BE LIABLE
                FOR INDIRECT OR CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, PUNITIVE
                OR SPECIAL DAMAGES, INCLUDING LOST PROFITS OR REVENUES, EVEN IF
                SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES
                IN ADVANCE.

        (b)     The limitations set forth in:

                (i)     Subsection (a) of this Section shall not apply with
                        respect to claims and damages occasioned by improper or
                        wrongful termination of this Agreement by

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<PAGE>   64

                        Contractor or improper or wrongful abandonment of the
                        work by Contractor under this Agreement; and

                (ii)    Subsection (a) of this Section shall not apply with
                        respect to claims and damages with respect to (1) claims
                        that are the subject of indemnification pursuant to
                        Article 20, (2) willful misconduct, or (3) any breach of
                        Article 16 hereof.

        (c)     IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY
                HEREUNDER, UNDER ANY THEORY OF LIABILITY EXCEPT WILLFUL
                MISCONDUCT, FOR LOSSES, CLAIMS, DAMAGES, COSTS AND EXPENSES IN
                THE AGGREGATE THAT EXCEED (i) IN THE CASE OF CONTRACTOR'S
                LIABILITY, THE AGGREGATE AMOUNTS PAID BY AIL TO CONTRACTOR
                HEREUNDER, AND (ii) IN THE CASE OF AIL'S LIABILITY, THE
                AGGREGATE AMOUNTS PAID BY AIL, AND UNPAID AMOUNTS WHICH ARE DUE
                AND OWING FROM AIL, TO CONTRACTOR HEREUNDER.

        (d)     Each Party shall have a duty to use commercially reasonable
                efforts to mitigate damages for which the other Party is
                responsible.

21.3    FORCE MAJEURE.

        (a)     No Party shall be liable for any failure or delay in the
                performance of its obligations under this Agreement if and to
                the extent it is caused by fire, flood, lightning, earthquake,
                elements of nature or acts of God, riots, civil disorders,
                rebellions or revolutions in any country, or any other cause
                beyond the reasonable control of such Party, including
                import/export issues; provided, however, that the non-performing
                Party is without fault in causing such default or delay, and
                such default or delay could not have been prevented by
                reasonable precautions and cannot reasonably be circumvented by
                the non-performing Party through the use of alternate sources,
                workaround plans or other means (any of the foregoing, a "Force
                Majeure Event").

        (b)     In such event the non-performing Party shall be excused from
                further performance or observance of the obligation(s) so
                affected for as long as such circumstances prevail and such
                Party continues to use its commercially reasonable efforts to
                recommence performance or observance whenever and to whatever
                extent possible without delay. Any Party so delayed in its
                performance shall immediately notify the Party to whom
                performance is due by telephone (to be confirmed in writing
                within two (2) business days of the inception of such delay) and
                describe at a reasonable level of detail the circumstances
                causing such delay.

        (c)     If any Force Majeure Event substantially prevents, hinders, or
                delays Contractor's performance for more than sixty (60)
                consecutive days, then at AIL's option, AIL may terminate or
                modify any affected portion of any Order, or terminate any
                affected portion of this Agreement, and the charges payable
                hereunder shall be appropriately adjusted to reflect such
                termination. Further, if any Force Majeure Event substantially
                prevents, hinders, or delays Contractor's performance for more
                than one hundred fifty (150) consecutive days, then at AIL's
                option, AIL may terminate this Agreement without liability to
                AIL or Contractor as of a date specified by AIL in a written
                notice of termination to Contractor. Neither Party shall have
                the right to any additional payments from the other Party for
                costs or expenses incurred by the other Party as a result of any
                Force Majeure Event.

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        (d)     Notwithstanding the foregoing Subsections in this Section 21.3,
                if the U.S. Federal Communications Commission or other U.S. or
                foreign regulatory or governing body rescinds or otherwise
                invalidates AIL's communications license or fails to issue such
                license in due course, which substantially impairs the economic
                viability of AIL (any of the foregoing, a "Regulatory Force
                Majeure Event"), the Parties agree to renegotiate this Agreement
                on commercially reasonable and mutually acceptable terms in
                light of the effects arising from the Regulatory Force Majeure
                Event, to the extent such Regulatory Force Majeure is not caused
                by the gross negligence or willful misconduct of AIL.

21.4    EXCUSABLE DELAY.

        Either (i) the occurrence of a Force Majeure Event that prevents
        Contractor from performing its obligations hereunder, or (ii) the
        material adverse effect to Contractor's ability to timely perform its
        obligations hereunder caused by AIL's failure to timely meet its
        obligations hereunder following the applicable cure period after written
        notice is received by AIL describing AIL's failure, shall constitute
        "Excusable Delay" hereunder. In the event of Excusable Delay, Contractor
        may stop work until Contractor can resume performance following the
        Force Majeure Event in accordance with Section 21.3 hereof or AIL
        resumes or cures performance, as the case may be. In addition,
        Contractor shall be entitled to an appropriate adjustment in the
        Milestone Dates or applicable production schedule for any Excusable
        Delay and, in the event of an Excusable Delay caused by AIL's failure to
        perform its obligations hereunder, an appropriate price adjustment as
        mutually agreed by the Parties. Price adjustments shall account only for
        the net non-recurring, production and other related cost impact incurred
        by Contractor as a result of the change plus a reasonable profit thereon
        not to exceed * * *. Contractor will provide reasonably detailed back-up
        price data to support its claim for such adjustment.

22.     DISPUTE RESOLUTION

        Any dispute between the Parties arising out of or relating to this
        Agreement, including with respect to the interpretation of any provision
        of this Agreement and with respect to the performance by Contractor or
        AIL, shall be resolved as provided in this Article 22. Notwithstanding
        any other provision of this Agreement, Contractor shall not be entitled
        to, and hereby waives, the right to enjoin AIL's use of IP on the AIL
        System, even if Contractor believes AIL is using Contractor's IP in
        violation of the terms of this Agreement. In such case, Contractor, at
        its election, shall be entitled to royalties on commercially reasonable
        terms pursuant to a license agreed to by the parties on by an arbitrator
        in the event the parties are unable to agree upon the terms of such
        license in addition to all damages and remedies available to Contractor
        at law, equity or otherwise, subject to Contractor's waiver of its right
        to seek an injunction as provided herein.

22.1    INFORMAL DISPUTE RESOLUTION.

        Subject to Subsection 22.3, prior to the initiation of formal dispute
        resolution procedures, the Parties shall first attempt to resolve their
        dispute informally pursuant to this Section 22.1. Upon the written
        request of a Party, each Party shall appoint a designated representative
        who does not devote substantially all of his or her time to performance
        under this Agreement, whose task it will be to meet for the purpose of
        endeavoring to resolve such dispute.

        (a)     The designated representatives shall meet as often as the
                Parties reasonably deem necessary in order to gather and furnish
                to the other all information with respect to the matter in issue
                which the Parties believe to be appropriate and germane in
                connection

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                with its resolution. The representatives shall discuss the
                problem and attempt to resolve the dispute without the necessity
                of any formal proceeding.

        (b)     During the course of discussion, all reasonable requests made by
                one Party to another for nonprivileged information, reasonably
                related to this Agreement, shall be honored in order that each
                of the Parties may be fully advised of the other's position.

        (c)     The specific format for the discussions shall be left to the
                discretion of the designated representatives.

        (d)     If the designated representatives fail to resolve the dispute,
                the Parties agree to escalate the dispute resolution process to
                a higher executive level, and then to the CEO level. Each level
                of informal dispute resolution will be allowed no more than
                fifteen (15) days, unless otherwise mutually agreed by the
                Parties.

22.2    ARBITRATION.

        Subject to Subsection 22.3, if the Parties fail to resolve a dispute
        pursuant to Section 22.1 above, the Parties agree to pursue binding
        arbitration as the sole remedy of any dispute hereunder. Each Party
        shall designate one arbitrator, provided that the arbitrator(s) selected
        shall be knowledgeable in the telecommunications field. The two
        designated arbitrators shall then choose a third arbitrator, who shall
        be the head of the panel of arbitrators, and the panel of three
        arbitrators shall hear and resolve the dispute. The rules and
        regulations to be followed shall be those of the Center for Public
        Resources, or its successor, in effect on the date of delivery of the
        demand for arbitration. The Parties expressly agree that the arbitrators
        shall have the authority to issue appropriate relief; provided, however,
        that the arbitrators shall not have the power to issue punitive or other
        special or exemplary damages. The decision of the arbitrators shall be
        final and binding on both Parties and their respective successors and
        permitted assigns, and such decision may be enforced by any court having
        jurisdiction over the Party against whom the award is rendered. Each
        Party shall pay the fees of its own attorneys, experts and the expenses
        of its witnesses. All other costs and expenses of the arbitration,
        including the costs and expenses of recording the transcripts thereof,
        if any, administration fees and all other fees, costs and expenses,
        shall be borne equally by the Parties. All arbitration proceedings will
        be conducted in Washington, D.C. Contractor agrees to be joined in any
        other arbitration or proceeding involving another entity under contract
        to AIL or Contractor relating to the AIL System where performance of
        Contractor under this Agreement or of the Terminals is at issue so as to
        resolve any disputes efficiently. If joined in any such arbitration or
        proceeding, Contractor hereby agrees to be subject to the decisions of
        the arbitrator(s) already chosen by the original parties to such
        arbitration or proceeding, and Contractor hereby waives its right to
        choose an arbitrator as provided herein.

22.3    INJUNCTIVE RELIEF.

        Notwithstanding Subsections 22.1 or 22.2, AIL may obtain preliminary or
        temporary injunctive relief, including specific performance, or relief
        in and of arbitration at any time from a court of competent jurisdiction
        where immediate irreparable harm to the AIL System or AIL's business is
        threatened by Contractor's acts or omissions, but requests for permanent
        injunctive relief shall be arbitrated pursuant to Section 22.2.

22.4    CONTINUED PERFORMANCE.

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        Each Party agrees to continue performing its obligations under this
        Agreement while any dispute is being resolved except to the extent the
        issue in dispute precludes performance (dispute over payment shall not
        be deemed to preclude performance but a failure to pay undisputed
        amounts after notice and an opportunity to cure as provided in
        Subsection 23.1(b) shall permit discontinuance of Contractor's
        performance obligations solely with respect to the payment failure).

22.5    VENUE AND JURISDICTION.

        Each Party consents to the personal jurisdiction and venue of the
        Montgomery County Circuit Court, Montgomery County, Maryland, or the
        United States District Court for the District of Maryland, Greenbelt
        Division, in the event of any dispute between the Parties arising out of
        or relating to this Agreement that is permitted under this Article 22 to
        be resolved by litigation or in the enforcement of any award granted
        pursuant to this Article 22, and each Party agrees that it shall file
        any suit against the other Party only in such courts.

23.     TERMINATION

23.1    TERMINATION FOR CAUSE.

        (a)     In the event that Contractor:

                (i)     commits a material breach of this Agreement, including:

                        (1)     failure to make any undisputed payment to AIL;

                        (2)     failure to achieve a Milestone after written
                                notice;

                        (3)     failure to complete a Milestone or other
                                agreed-upon material task within the
                                corresponding Milestone Date or agreed-upon
                                timeframe; or

                        (4)     failure to complete any of its material
                                obligations hereunder within pre-agreed
                                timeframes;

                        which breach is not cured within thirty (30) days after
                        written notice of breach from AIL to Contractor, unless
                        such breach is not capable of being cured within thirty
                        (30) days;

                (ii)    commits a material breach of this Agreement which is not
                        capable of being cured within thirty (30) days and fails
                        to (i) proceed promptly and diligently to correct the
                        breach, (ii) develop within thirty (30) days following
                        written notice of breach from AIL a complete plan for
                        curing the breach (which plan and cure period shall be
                        reviewed by AIL and mutually agreed upon by the
                        Parties), and (iii) cure the breach within the
                        applicable cure period set forth in the plan;

                (iii)   commits three breaches of its duties or obligations of
                        the same type, which taken together would constitute a
                        material breach hereof, within any twelve (12) month
                        period for which Contractor has received written notice
                        from AIL and thirty (30) days following receipt of such
                        notice to cure such breaches, and Contractor has failed
                        to cure all such breaches; or

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                (iv)    ceases to carry on its business; a receiver or similar
                        officer is appointed for Contractor and is not
                        discharged within thirty (30) days; admits in writing
                        its inability to pay debts as they mature, is
                        adjudicated bankrupt, or makes an assignment for the
                        benefit or its creditors or another arrangement of
                        similar import; or proceedings under bankruptcy or
                        insolvency laws are commenced by or against Contractor
                        and are not dismissed within sixty (60) days;

                then AIL may, by giving written notice to Contractor, terminate
                this Agreement, in whole or in part, as of a date specified in
                the notice of termination. If AIL chooses to terminate this
                Agreement in part, the charges payable under this Agreement will
                be appropriately adjusted to reflect those services that are
                terminated. Any of the foregoing reasons for which AIL may
                terminate this Agreement shall be referred to as "Cause".

        (b)     In the event that AIL:

                (i)     fails to pay Contractor when due undisputed charges
                        under the Agreement and fails to make such payment
                        within thirty (30) days of written notice from
                        Contractor of the failure to make such payment; or

                (ii)    ceases to carry on its business; a receiver or similar
                        officer is appointed for AIL and is not discharged
                        within thirty (30) days; admits in writing its inability
                        to pay debts as they mature, is adjudicated bankrupt, or
                        makes an assignment for the benefit or its creditors or
                        another arrangement of similar import; or proceedings
                        under bankruptcy or insolvency laws are commenced by or
                        against AIL and are not dismissed within sixty (60)
                        days;

                Contractor may, by giving written notice to AIL, terminate this
                Agreement as of a date specified in such notice of termination
                and any such reason for termination shall be referred to as
                "Cause".

23.2    TERMINATION FOR CONVENIENCE.

        (a)     AIL may terminate this Agreement, in whole or in part, for
                convenience and without cause at any time by giving Contractor
                thirty (30) days prior written notice designating the date of
                termination (the "Termination Date").

        (b)     If AIL elects to terminate this Agreement for convenience in
                accordance with this Section 23.2 prior to the delivery of and
                payment for all Seed Order Terminals as set forth in Schedule 18
                (scheduled as of the Effective Date for * * *) (the "Development
                Phase Liability Date"), AIL agrees to pay Contractor a
                termination liability payment in accordance with Schedule 5 less
                all amounts paid by AIL to Contractor hereunder to up and
                including the Development Phase Liability Date. This Subsection
                (b) shall be of no further effect after the Development Phase
                Liability Date. Notwithstanding anything herein to the contrary,
                AIL's maximum liability and Contractor's sole remedy for
                termination for convenience through the Development Phase
                Liability Date shall be no greater than * * *.

        (c)     If AIL elects to terminate this Agreement for convenience in
                accordance with this Section 23.2 following the Development
                Phase Liability Date, as soon as practicable following the
                Termination Date, Contractor shall provide AIL with a complete
                statement of all unpaid amounts due and owing for work performed
                hereunder and other amounts

                                       61
<PAGE>   69

                that are due to Contractor hereunder as of the Termination Date,
                including all cancellation fees, if any, set forth in Section
                8.5 and 8.8 above (the "Final Statement"). AIL shall review the
                Final Statement within thirty (30) days of receipt thereof and,
                if reasonably satisfactory to AIL, shall pay Contractor within
                thirty (30) days of approval all or part of the Final Statement,
                all undisputed amounts due thereunder. If AIL disputes any
                amounts set forth in the Final Statement, the Parties shall
                resolve such disputes as provided herein, and following
                resolution of such disputes, AIL shall pay Contractor all
                remaining undisputed amounts, if any, within thirty (30) days
                after resolution of such disputes. In the event that a purported
                termination for cause by AIL under Section 23.1 is determined by
                a competent authority not to be properly a termination for
                cause, then such termination shall be deemed to be a termination
                for convenience by AIL under this Section 23.2.

23.3    EFFECT OF TERMINATION FOR CAUSE.

        (a)     If (i) during the Co-Exclusivity Period AIL terminates this
                Agreement for Cause, or (ii) Contractor's Co-Exclusivity Right
                is terminated as provided herein, or (iii) AIL terminates this
                Agreement pursuant to Section 6.8 or Section 14.1 hereof, to the
                extent that AIL reasonably determines that AIL's designated
                replacement vendor for Contractor (the "Replacement Vendor") is
                in need of any of Contractor's Confidential Information,
                Contractor Background Information and/or Contractor Foreground
                Information and the Intellectual Property Rights appurtenant
                thereto required to develop, produce, operate, market,
                demonstrate, distribute and sell the Terminals (collectively,
                the "Terminal IP"), Contractor shall provide such Terminal IP to
                the Replacement Vendor and shall license on commercially
                reasonable terms to AIL or the Replacement Vendor the Terminal
                IP on a non-exclusive, worldwide and irrevocable basis (during
                the sooner to occur of (i) the end of the Initial Term if
                Contractor had not defaulted or (ii) until the Replacement
                Vendor ceases to produce Terminals or Comparable Terminals), for
                use only in the development, production, marketing and sales of
                Terminals for the AIL System and otherwise as necessary or
                appropriate to fulfill Contractor's obligations hereunder as if
                Contractor had not defaulted hereunder; provided however, that
                the Parties' agreement on the terms of such license shall not be
                a condition precedent to, or delay in any way, AIL's right or
                the right of the Replacement Vendor to use the Terminal IP to
                develop, manufacture and produce Terminals. The scope of the
                license granted to the Replacement Vendor shall extend only to
                fulfill Contractor's obligations hereunder as if the Agreement
                had not been terminated. In addition, Contractor agrees to
                provide to AIL or AIL's authorized manufacturer the information
                and rights related to the Reduced-Cost Modules, as set forth in
                Section 5.8 above.

        (b)     If AIL terminates this Agreement under Section 23.1(a) above,
                AIL shall be entitled to have the work completed by another
                party or parties, and Contractor shall be liable to AIL for * *
                *.

23.4    TERMINATION/EXPIRATION ASSISTANCE.

        (a)     Upon termination of this Agreement pursuant to Section 23.1(a),
                Contractor shall, upon payment of all undisputed amounts due and
                payable to Contractor hereunder, turn over to AIL or its
                designee all pending and ongoing work, together with such
                license rights and Intellectual Property Rights relating to the
                work to the extent and in the manner to which AIL would have
                been entitled under this Agreement had there not been a
                termination, subject further to Section 23.3(a).

                                       62
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        (b)     Commencing (6) months prior to expiration of this Agreement or
                on such earlier date as AIL may request, but no earlier than
                twelve (12) months prior to the expiration of this Agreement, or
                commencing upon any notice of termination (in whole or in part)
                or of non-renewal of this Agreement (including notice based upon
                default by AIL), and continuing for a period not to exceed two
                (2) years, Contractor shall provide to AIL, or at AIL's request
                to AIL's designee, reasonable termination/expiration assistance
                requested by AIL (at AIL's expense except if the termination
                results from Contractor's default) to allow the provisioning of
                the Terminals components thereof to continue without
                interruption or adverse effect to AIL's operations and business
                in connection with AIL's System ("Termination/Expiration
                Assistance"). Termination/Expiration Assistance shall include
                the following assistance:

                (i)     Contractor shall, using its good faith efforts, migrate
                        the support obligations hereunder to a qualified third
                        party designated vendor;

                (ii)    Contractor shall to the extent authorized sublicense to
                        AIL all third party products utilized with the Terminals
                        subject to the use rights set forth in Section 10.6;
                        provided, however, with respect to non-commercially
                        available third party products utilized with the
                        Terminals, if any, Contractor shall provide the
                        foregoing sublicense to AIL; and

                (iii)   Contractor shall identify for AIL all third party
                        suppliers Contractor utilized to manufacture the
                        Terminals.

        (c)     This Section 23.4 shall survive termination/expiration of this
                Agreement. For a period of two (2) years following the effective
                date of termination/expiration under other provisions of this
                Agreement, Contractor shall provide, at AIL's request, any or
                all of the Services being performed by Contractor prior to such
                effective date. To the extent Contractor is to perform Services
                under Subsection (a) of this Section 23.4, the provisions of
                this Agreement shall be applicable as such provisions would have
                been applicable to such Services prior to such effective date,
                provided the charge therefore shall at Contractor's then current
                commercial rates. In the event the Agreement is terminated by
                Contractor for AIL's non-payment in accordance with Section
                23.1(b), then Contractor may request that AIL pay for such
                Services in advance based on a reasonable estimate for such
                Services as agreed upon by the Parties. Any overages or
                underages of such pre-payments will be accounted for at the end
                of the month.

23.5    APPROPRIATE REMEDIES.

        Contractor acknowledges that, in the event it breaches (or attempts or
        threatens to breach) its obligation to provide Termination/Expiration
        Assistance as provided in Section 23.4, AIL will be irreparably harmed
        and AIL will not have an adequate remedy at law. In such a circumstance,
        AIL may proceed directly to court. If a court of competent jurisdiction
        should find that Contractor has breached (or attempted or threatened to
        breach) any such obligations, Contractor agrees that without any
        additional findings of irreparable injury, inadequate remedy at law or
        other conditions to injunctive relief, it shall not oppose the entry of
        an appropriate order compelling performance by Contractor and
        restraining it from any further breaches (or attempted or threatened
        breaches).

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24.     GENERAL

24.1    BINDING NATURE AND ASSIGNMENT.

        This Agreement shall be binding on the Parties hereto and their
        respective successors and assigns. Neither Party may, or shall have the
        power to, assign this Agreement or delegate such Party's obligations
        hereunder without the prior written consent of the other, which consent
        shall not be unreasonably withheld or delayed; provided, however, that
        the proposed assignee has the resources (financial, technical,
        personnel, etc.) to perform the assignor's obligations hereunder.
        Notwithstanding the foregoing, AIL may assign its rights and obligations
        under this Agreement with the approval of Contractor (which approval
        shall not be unreasonably withheld or delayed) to an entity which
        acquires all or substantially all of the assets of AIL or to any
        subsidiary or Affiliate or successor in a merger or acquisition of AIL.
        The assigning Party shall remain responsible for its obligations
        hereunder, unless expressly agreed to in writing by the non-assigning
        Party.

24.2    CONDITIONAL ASSIGNMENT OF SUBCONTRACTS.

        Notwithstanding the terms of Section 24.1 above and subject to the
        condition contained in this Section 24.2, Contractor hereby assigns to
        AIL its rights and obligations under Contractor's subcontracts with the
        Principal Subcontractors. Such assignment shall become effective, if at
        all, if this Agreement is terminated in accordance with the terms
        hereof.

24.3    ENTIRE AGREEMENT.

        This Agreement, including any Schedules and Attachments referred to
        herein and attached hereto, constitutes the entire agreement between the
        Parties with respect to the subject matter hereof and supersedes all
        prior agreements, whether written or oral, with respect to the subject
        matter contained in this Agreement. In particular, this Agreement
        supersedes the Services Agreement, and all works of authorship,
        Intellectual Property and other deliverables provided by either Party to
        the other thereunder or developed by either Party thereunder and all
        Services performed by Contractor shall be treated in accordance with the
        terms of this Agreement, notwithstanding any conflicting term or
        condition contained in the Services Agreement and the Services Agreement
        shall be null and void and of no further force or effect.

24.4    COMPLIANCE WITH LAWS AND STANDARDS.

        (a)     Each Party shall perform its obligations in a manner that
                complies with all applicable Standards. If either Party is
                charged with the failure to comply with any of such Standards,
                the Party charged shall promptly notify the other Party of such
                charges in writing.

        (b)     Each Party agrees that its execution, delivery, and performance
                of this Agreement shall not constitute (i) a violation of any
                judgment, order, or decree; (ii) a material default under any
                material contract by which it or any of its material assets are
                bound; or (iii) an event that would, with notice or lapse of
                time, or both, constitute such a default as described in (ii).

        (c)     Each Party shall be responsible for, and shall coordinate and
                oversee compliance with the laws and regulations in respect of
                items exported or imported hereunder by it. The Parties
                acknowledge that certain Intellectual Property Rights, including
                those related to

                                       64
<PAGE>   72

                the Software and technical data to be provided hereunder and
                certain transactions hereunder, may be subject to export
                controls under the laws and regulations of the United States and
                other countries. Neither Party shall export or re-export any
                such items or any direct product thereof or undertake any
                transaction in violation of any such laws or regulations.

24.5    NOTICES.

        All notices, requests, demands, and determinations under this Agreement
        (other than routine operational communications), shall be in writing and
        shall be deemed duly given (i) when delivered by hand, (ii) one (1) day
        after being given for next day delivery to an express, overnight courier
        with a reliable system for tracking delivery, or (iii) five (5) days
        after the day of mailing, when mailed by United States mail, registered
        or certified mail, return receipt requested, postage prepaid, and
        addressed as follows:

              If to AIL:                           If to Contractor:

                  ASTROLINK International LLC         ViaSat, Inc.
                  6701 Democracy Boulevard            6651 El Camino Real
                  Suite 1000                          Carlsbad, CA 92009
                  Bethesda, MD  20817
                  Attn:  General Counsel              Attn: General Counsel
                  Facsimile:  (301) 581-4001          Facsimile: (760) 929-3926

              With a copy to:                      With a copy to:

                  Shaw Pittman                        ViaSat, Inc.
                  2300 N Street, N.W.                 6155 El Camino Real
                  Washington, DC  20037-1128          Carlsbad, CA  92009
                  Attn:  * * *                        Attn: President
                  Facsimile:  * * *                   Facsimile: (760) 929-3926

        A Party may from time to time change its address or designee for
        notification purposes by giving the other prior written notice of the
        new address or designee and the date upon which it will become
        effective.

24.6    COUNTERPARTS.

        This Agreement may be executed in several counterparts, all of which
        taken together shall constitute one single agreement between the Parties
        hereto.

24.7    RELATIONSHIP OF PARTIES.

        Contractor, in furnishing Terminals and Services hereunder, is acting as
        an independent contractor, and Contractor has the sole right and
        obligation to supervise, manage, direct, procure, perform or cause to be
        performed, all work to be performed by Contractor under this Agreement.
        Contractor is not an agent of AIL and has no authority to represent AIL
        as to any matters, except as expressly authorized in this Agreement.

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<PAGE>   73

24.8    SEVERABILITY.

        In the event that any provision of this Agreement conflicts with the law
        under which this Agreement is to be construed or if any such provision
        is held invalid by an arbitrator or a court with jurisdiction over the
        Parties, such provision shall be deemed to be restated to reflect as
        nearly as possible the original intentions of the Parties in accordance
        with applicable law. The remainder of this Agreement shall remain in
        full force and effect.

24.9    CONSENTS AND APPROVAL.

        Except where expressly provided as being in the discretion of a Party,
        where agreement, approval, acceptance, consent, or similar action by
        either Party is required under this Agreement, such action shall not be
        unreasonably delayed or withheld. An approval or consent given by a
        Party under this Agreement shall not relieve the other Party from
        responsibility for complying with the requirements of this Agreement,
        nor shall it be construed as a waiver of any rights under this
        Agreement, except as and to the extent otherwise expressly provided in
        such approval or consent.

24.10   WAIVER OF DEFAULT; CUMULATIVE REMEDIES.

        (a)     No waiver or discharge hereof shall be valid unless in writing
                and signed by an authorized representative of the Party against
                which such amendment, waiver, or discharge is sought to be
                enforced. A delay or omission by either Party hereto to exercise
                any right or power under this Agreement shall not be construed
                to be a waiver thereof. A waiver by either of the Parties hereto
                of any of the covenants to be performed by the other or any
                breach thereof shall not be construed to be a waiver of any
                succeeding breach thereof or of any other covenant herein
                contained.

        (b)     Except as otherwise expressly provided herein and subject to
                Sections 10.4(e) and 21.2 above, all remedies provided for in
                this Agreement shall be cumulative and in addition to and not in
                lieu of any other remedies available to either Party at law, in
                equity or otherwise.

24.11   SURVIVAL.

        Any provision of this Agreement which contemplates performance or
        observance subsequent to any termination or expiration of this Agreement
        (in whole or in part) shall survive any termination or expiration of
        this Agreement (in whole or in part, as applicable) and continue in full
        force and effect, but shall not extend the applicable statute of
        limitations.

24.12   PUBLIC DISCLOSURES.

        Except as may be required by applicable law or in response to an order
        of a court of competent jurisdiction or government agency, neither Party
        nor its subcontractors will issue a press release or other public
        announcement concerning the subject matter of this Agreement without the
        prior approval of the other Party, which approval shall not be
        unreasonably withheld or delayed. Such approval must be provided (or the
        notice that such approval is withheld must be provided) within five (5)
        business days after the request of the other Party. In addition, all
        media releases, public announcements, and public disclosures relating to
        this Agreement or the subject matter of this Agreement, including
        promotional or marketing material, but not including announcements
        intended solely for internal distribution or disclosures to the extent
        required to meet legal or

                                       66
<PAGE>   74

        regulatory requirements beyond the reasonable control of the disclosing
        Party, shall be coordinated with and approved in writing by both Parties
        prior to release. Notwithstanding any provision to the contrary
        contained herein or in the Proprietary Information Agreement by and
        between the Parties dated December 22, 1998, the Parties agree that if
        public disclosure of the terms of this Agreement is required by the U.S.
        Securities and Exchange Commission (the "SEC") to be made, the Party
        required to make such disclosure shall, prior to making any such
        disclosure, (i) notify the other Party of such requirement and (ii)
        request from the SEC confidential treatment of the material provisions
        of this Agreement in accordance with Rule 406 (or any successor rule or
        regulation) promulgated under the Securities Act of 1933, as amended, or
        Rule 24b-2 (or any successor rule or regulation) promulgated under the
        Securities Exchange Act of 1934, as amended, which request shall be
        prepared in consultation with the other Party.

24.13   THIRD PARTY BENEFICIARIES.

        Except as specifically provided in this Agreement, this Agreement is
        entered into solely between, and may be enforced only by, AIL and
        Contractor. This Agreement shall not be deemed to create any rights in
        third parties, including suppliers and customers of a Party, or to
        create any obligations of a Party to any such third parties.

24.14   AMENDMENT.

        This Agreement shall not be modified, amended or in any way altered
        except by an instrument in writing signed by both Parties.

24.15   INCORPORATION BY REFERENCE AND ORDER OF PRECEDENCE

        (a)     The Schedules and Attachments attached hereto are hereby
                incorporated by reference into this Agreement. Subject to
                Section 24.14, any amendments to Schedules and Attachments, and
                any other Schedules and Attachments that are agreed upon by the
                Parties subsequent to the Effective Date, shall likewise be
                incorporated by reference into this Agreement.

        (b)     Any conflict among or between the documents making up this
                Agreement will be resolved in accordance with the following
                order of precedence (in descending order of precedence):

                (i)     Change Orders;

                (ii)    This Agreement;

                (iii)   The Schedules;

                (iv)    The Attachments to the Schedules; and

                (v)     Orders.

24.16   COVENANT AGAINST PLEDGING.

        Contractor agrees that, without the prior written consent of AIL, it
        shall not assign, transfer, pledge, hypothecate or otherwise encumber
        its rights to receive payments from AIL under this Agreement for any
        reason whatsoever, except as otherwise expressly permitted under Section
        24.1.

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<PAGE>   75

24.17   SECURITY INTEREST.

        Contractor reserves a purchase money security interest in each Terminal
        or component thereof delivered under this Agreement in the amount of the
        purchase price and in AIL's proceeds from any sale of such product. This
        security interest will be satisfied by payment in full of the purchase
        price. A copy of the pertinent provisions of this Agreement may be filed
        on Contractor's behalf with appropriate state authorities any time after
        signature by AIL as a financing statement in order to prefect Contractor
        security interest. AIL agrees to sign upon request any document
        necessary to perfect Contractor's security interest and cooperate in the
        filing and protection of same.

24.18   GOVERNING LAW.

        This Agreement and performance under it shall be governed by and
        construed in accordance with the laws of state of New York without
        regard to its choice of law principles. The United Nations Convention
        for Sale of Goods shall not apply to this Agreement or the Orders placed
        hereunder.

24.19   COVENANT OF GOOD FAITH.

        Each Party agrees that, in its respective dealings with the other Party
        under or in connection with this Agreement, it shall act in good faith.

24.20   LENDER ASSURANCES.

        Contractor agrees to work cooperatively with AIL in connection with
        AIL's efforts to obtain financing for the AIL System and the work
        performed hereunder. Contractor agrees to execute such documents as may
        be reasonably required by AIL financing parties.

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<PAGE>   76

        IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the undersigned officers, thereunto, duly authorized, as the Effective Date.

ASTROLINK INTERNATIONAL LLC                VIASAT, INC.

By:                                        By:
   ----------------------------------         ----------------------------------

Printed:                                   Printed:
        -----------------------------              -----------------------------

Title:                                     Title:
      -------------------------------            -------------------------------

Date:                                      Date:
     --------------------------------           --------------------------------

                                       69
<PAGE>   77

                                   SCHEDULE 1

                                TARGET COUNTRIES

                                      * * *

---------------------
* Certain confidential information has been omitted and filed with the
Securities and Exchange Commission pursuant to a Request for Confidential
Treatment

                                      1-1
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                                   SCHEDULE 2

                         MILESTONE AND PAYMENT SCHEDULE

IN ACCORDANCE WITH SECTION 5.3, CONTRACTOR SHALL BE PAID IN ACCORDANCE WITH THE
BELOW MILESTONE AND PAYMENT SCHEDULE FOLLOWING ACCEPTANCE.

                                     * * *

                                      2-1
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                                   SCHEDULE 3

                                STATEMENT OF WORK

                                      * * *

                                      3-1
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                                   SCHEDULE 4

                         WHOLESALE PRICES FOR TERMINALS

                                      * * *

                                      4-1
<PAGE>   81

                                   SCHEDULE 5

                        DEVELOPMENT TERMINATION LIABILITY

                                      * * *

                                      5-1
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                                   SCHEDULE 6

              TOTAL PROJECTED INSTALLED TERMINAL QUANTITY PER YEAR

                                      * * *

                                      6-1
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                                   SCHEDULE 7

    CONTRACTOR SUPPORT TO AIL MARKETING, SALES AND DISTRIBUTION OF TERMINALS

        As a part of this agreement, Contractor will proactively support the
efforts of AIL to market, sell and distribute Terminals and the AIL Service.
Within the guidelines set forth below and as mutually agreed by the Parties,
Contractor will directly support consistent with AIL's general direction, AIL's
marketing and sales initiatives prior to commercial introduction of the AIL
Services ("Pre-Launch Services") and following commercial introduction of AIL
Services ("Post-Launch Services"). The timing of Pre-Launch Services and
Post-Launch Services shall be consistent with introduction of the AIL Service on
a country-by-country basis consistent with the Agreement.

I.      PRE-LAUNCH SERVICES SUPPORT PHASE

        In order to effectuate support prior to the commercial introduction of
the AIL Services Contractor shall:

        -    Perform and provide research services consistent with our
             capabilities;

        -    Analyze marketing and distribution research and forecasting efforts
             including analysis of AIL Terminal materials, such as countries and
             priority forecasts, as well as roll-out, and sharing of relevant
             primary and secondary research obtained by Contractor;

        -    Provide on-site support to AIL marketing efforts at major
             telecommunications shows including mock ups, brochures, personnel,
             and satellite feed for demonstrations, as appropriate;

        -    Develop and distribute sales materials and literature, including
             but not limited to artwork, product photos and data sheets,
             describing the features of the Terminals;

        -    Provide support to demonstrations for major service providers
             and/or major global accounts;

        -    Implement integrated system sales tools and global distribution
             planning targeted to equipping * * * Professional Services for
             incorporation of Astrolink Terminals and AIL services into the
             total network solutions offered by * * * to its customers;

        -    Direct service provider and retail customer contacts with existing
             and potential customers in the market segments and geographic
             regions covered by Contractor and its Principal Subcontractors; and

        -    Implement any other promotional activities as parties may agree
             from time to time.

        These activities will be undertaken as needed to support the level and
phase of marketing activity being performed by AIL.

II.     POST-LAUNCH SERVICES SUPPORT SHALL INCLUDE, BUT NOT BE LIMITED TO THE
        FOLLOWING:

        -    Continued support to major telecommunications shows as outlined
             above;

        -    Direct selling of AIL services through any applicable broadband
             satellite services business operated and/or jointly owned by
             Contractor to the extent allowed by its business charter;

                                      7-1
<PAGE>   84

        -    Provision of product and sales materials on an on-going basis;

        -    Provision of collateral materials for customers;

        -    Hosting customer events in addition to trade shows;

        -    Contractor will profile/educate customers and/or providers on AIL
             products and services at applicable seminars/conferences including
             those sponsored by * * *; and

        -    Contractor will conduct press activities to inform the marketplace
             and industry of the progress and key successes of AIL Terminal
             deployment.

        These activities will be undertaken as needed to support the level of
marketing and sales activities commensurate with the market forecasts
established for each year.

III.    FUNDING

A.      PRE-LAUNCH SERVICES

        Contractor activities (as outlined above) during this phase will not be
required to exceed a level of * * * or an equivalent sales value of * * *
including non-labor expenses. The Parties will meet on a quarterly basis to plan
the activities for the next quarter. The Parties will mutually agree to the
expected amount of Contractor effort to be expended in support of that plan. At
the quarterly meetings, the Contractor will report on the level of activity
actually performed during the preceding quarter. At the first such meeting, the
Parties will develop a high-level plan covering the entire phase for initial
resource planning purposes. Up to the maximum levels above, the Contractor
agrees to support reasonable requests from Astrolink for direct marketing and
sales support as a part of these quarterly plans. * * * is recognized by the
Parties to be an important source of market and distribution research and
planning and a potentially powerful distribution channel for Terminals and
services. Consequently, Contractor expects that approximately * * * of this
support effort will be performed by * * *. The nature of the support requested
over time may increase or decrease that anticipated percentage over the course
of this phase.

B.      POST-LAUNCH SERVICES

During the period after the launch of services, the Parties will continue to
have quarterly meetings to plan upcoming marketing activities. These plans are
expected to be define marketing and sales activities commensurate with the
market forecasts established for each year. The level of support under this
Agreement over the post-service launch support phase is expected to fall in line
with typical industry averages for wholesale marketing of telecommunications
equipment (* * * of actual wholesale terminal sales). At the quarterly meetings,
ViaSat will report on activities accomplished over the previous quarter.

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                                   SCHEDULE 8

                       FORM OF SERVICE PROVIDER AGREEMENT

           [TO BE COMPLETED WITHIN SIXTY (60) DAYS AFTER THE EFFECTIVE
                DATE AND ATTACHED IN ACCORDANCE WITH SECTION 8.2]

                                      8-1
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                                   SCHEDULE 9

             COUNTRIES WITH CONTRACTOR AND SUBCONTRACTOR FACILITIES

 [TO BE PROVIDED BY CONTRACTOR WITHIN THIRTY (30) DAYS AFTER THE EFFECTIVE DATE]

                                       9-1
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                                   SCHEDULE 10

                                ESCROW AGREEMENT

          [TO BE COMPLETED WITHIN THIRTY (30) DAYS AFTER THE EFFECTIVE
               DATE AND ATTACHED IN ACCORDANCE WITH SECTION 10.6]

                                      10-1
<PAGE>   88

                                   SCHEDULE 11

                            KEY CONTRACTOR PERSONNEL

Pursuant to Section 12.5, the following individuals are designated as Key
Contractor Personnel:

<TABLE>
<CAPTION>
POSITION                                          NAME
--------                                          ----
<S>                                               <C>
PROGRAM MANAGER                                   * * *

PROJECT ENGINEER                                  * * *

LEAD SYSTEMS ENGINEER                             * * *

LEAD SOFTWARE ENGINEER                            * * *
</TABLE>

* * * * is ViaSat's Business Area Director for Ka-Band programs. Until such time
as he appoints a Program Manager to report to him on this project, Mr. * * * is
the Acting Program Manager.

                                      11-1
<PAGE>   89

                                   SCHEDULE 12

                        LIST OF APPROVED SUBCONTRACTORS

As of the Effective Date of the Agreement, the Principal Subcontractors are the
only approved Subcontractors. In the event that additional Subcontractors are
desired, Contractor shall propose to AIL the addition of Material Subcontractors
in accordance with Section 12.9.

                                      12-1
<PAGE>   90

                                   SCHEDULE 13

                                SERVICE STANDARDS

Pursuant to Section 13, Service Standards, the Parties will develop and agree
upon meaningful quantitative and qualitative performance standards in accordance
with the following schedule:

        -    At the PDR, Contractor shall present the basic Service Standard
             classes and an overview of the possible metrics for each.

        -    At the PRR, Contractor shall propose the Service Standard and the
             associated metrics. The Parties, upon agreement on the proposed
             Service Standards, shall supersede this Schedule 13 with a revised
             Schedule 13, which incorporates the agreed upon service standards
             and metrics.

                                      13-1
<PAGE>   91

                                   SCHEDULE 14

The rates and guidelines for expenses and travel set forth on this Schedule 14
apply only to those Services identified in the Agreement that refer to Schedule
14.

                                CONTRACTOR RATES

<TABLE>
<CAPTION>
          Grade                  Category              Hourly Rate
          -----                  --------              -----------
<S>                        <C>                         <C>
           E 1                   Executive                  * * *

           E 2                 Sr./Lead Eng.                * * *

           E 3                     Eng.                     * * *

           E 4                   Jr. Eng.                   * * *

           T 1              Field Service Eng.              * * *

            T                      Tech                     * * *

            S                     Support                   * * *
</TABLE>

Notes:

1)      The rates set forth above are in effect through the Contract Year 2001.
        Thereafter, beginning for Contract Year 2002, Contractor may increase
        the labor rates at the end of each Contract Year at a percentage rate
        that does not exceed the percentage change from one Contract Year to
        another of the Bureau of Labor Standards, Table 3. Employment Cost Index
        for total compensation for Private Industry workers for Industry, Goods
        Producing, White Collar.

2)      As set forth in the Agreement and the SOW, Contractor shall also be
        reimbursed in accordance with the above in the event that the
        engineering support ("Support Services") exceeds * * * for support of
        the AIL System.

3)      Contractor shall also be reimbursed for actual unburdened expenses
        related to travel, per diem and other related expenses.

                                      14-1
<PAGE>   92

                                   SCHEDULE 15

                            EXTENDED WARRANTY OPTION

Extended Warranty shall be provided in accordance with the Agreement. Pricing
for this Extended Warranty shall be proposed by Contractor at the CDR.

                                      15-1
<PAGE>   93

                                   SCHEDULE 16

                               WARRANTY PROCEDURES

This Schedule summarizes Contractor's standard warranty procedures of its
commercial VSAT Product, StarWire. As a part of the Product Support Plan set
forth in the SOW, Contractor shall tailor this Schedule to reflect AIL's
business and in compliance with the SOW.

1.0     PURPOSE

        The Product Support and Service procedure defines the policies,
        authority, and responsibility for the support of warranty issues, field
        service, customer observations and responses for improvement of
        Contractor products.

2.0     SCOPE

        All shipped Contractor systems and products governed by the standard
        warranty for those products.

3.0     GENERAL POLICIES

        3.1     The Product Support group is the primary contact for all
                field-related issues.

        3.2     The general warranty policy for Contractor products covers
                defects in materials and workmanship for one year after
                shipment.

        3.3     Return Material Authorizations (RMA) are issued from Product
                Support to process product returns for warranty and
                out-of-warranty repair, upgrade, and exchanges.

        3.4     All authorized returns are shipped pre-paid to Contractor.
                Shipping expenses for products returned to the customer are
                borne by Contractor, unless indicated otherwise by contract.

4.0     GENERAL PROCEDURE

        4.1     The Product Support group receives, logs, and routes customer
                observations and reports of problems. Reports from this process
                are distributed to appropriate product groups for disposition.

        4.2     Product Support and the product group relative to the product
                type and specification investigate customer reports. The results
                of this investigation are documented and communicated to the
                Customer.

        4.3     Where applicable, Product Support and/or Product Engineering
                ensure that corrective action is implemented for the appropriate
                processes, as required, and the results documented and
                communicated to the Customer.

        4.4     As a benefit of continuous improvement, Product Support shall
                periodically inform Customers of upgrade, preventive
                maintenance, and service opportunities for previously shipped
                products.

                                      16-1
<PAGE>   94

        4.5     Customer observations and feedback will be evaluated and the
                results presented to management and department heads in order to
                identify both constructive and deficient areas of performance.

                                      16-2
<PAGE>   95

                                   SCHEDULE 17

                  POST-WARRANTY SUPPORT AND REPAIR OBLIGATIONS

In the event that the Warranty or the Extended Warranty has expired, Contractor
will provide the following services and/or support:

* Spares Support and Pricing proposed by Contractor at CDR and mutually agreed
by the Parties.

* Telephone Support at varying levels up to the limits described in the Warranty
with pricing to be determined for each level on a Contract Year basis. Telephone
support must be subscribed to in at least three (3) month increments.

* Factory repair services. Contractor will accept Terminals returned to factory
for repair on a current repair price basis. Customer assumes the expense and
risk of loss for transportation.

* On-Site Repair and/or Assistance. In accordance with the then current Field
Support Rate plus travel, per diem and other expenses.

A Purchase Order (P.O.) is required from the customer if a Terminal is returned
and is out-of-warranty. The Purchase Order must be received prior to product
receipt or customer product returns are held in Receiving until the P.O. is
processed.

                                      17-3
<PAGE>   96

                                   SCHEDULE 18

                       SEED ORDER DELIVERY REQUIREMENTS

                                      * * *

                                      18-1

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