Document:

Unassociated Document

    
       

      Exhibit
10.3

      

      CONFIDENTIAL
TREATMENT

      

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

       

      
        	
                Globalstar, Inc.

              	
                

              

      

      

      Ericsson
Federal Inc.

      Amendment

      No.
2

      to

      Core
Network Contract

      GINC-C-08-0400

      

      Support
of Hughes Network Systems, LLC

      for
RAN Testing

      
        
          
            
              
                
                  
                    
                       

                    

                  

                

              

            

          

        

      

      
        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      Amendment
No. 2

       

      This
Amendment No.2 to Contract Number # GINC-C-08-0400 (the “Contract” or the “Core
Network Contract”) effective as of March 30, 2010 (“Amendment No. 2 Effective
Date”) is entered into by and between Ericsson Federal Inc., a Delaware
corporation (“Ericsson”) with a place of business at 1895 Preston White Dr.,
Suite 300, Reston, VA 20191 and Globalstar, Inc., a Delaware corporation
(“Globalstar”) with its principal place of business at 461 South Milpitas
Boulevard, Milpitas, California  95035 (each a “party” and
collectively the “parties”).

       

      WHEREAS,
the parties entered into the Contract for the delivery of Products and Services
with respect to Globalstar’s Second Generation Gateway Core Network Development
dated October 1, 2008;

       

      WHEREAS,
the parties amended the Contract effective December 1, 2009 to include schedule
changes to the original work under contract and to add Lawful Intercept, Session
Border Gateway (SBG) Node, Signaling Compression (SigComp), Emergency Services
Location (ESL) for Europe and High Penetration Alert (HPA) features as well as
Support of Hughes Network Systems, LLC (“Hughes”) Testing (“Amendment No.
1”);  and

       

      WHEREAS,
the parties desire to amend the Contract to make laboratory equipment available
and provide associated support services for the Hughes RAN Testing
effort;

       

      NOW,
THEREFORE, the following changes and/or additions to the Contract are hereby
agreed to by the parties:

       

      With
respect to Article 5, Statement of Work of the Contract, the Work that Ericsson
shall deliver under the Contract is amended to include equipment that Ericsson
shall make available as set forth below.  Further, Section 5.5,
Support of Hughes Network Systems for RAN/CN Integration & Test in Exhibit
D-1 of the Contract is augmented to include the following:

       

      
        	
                a.  

              	
                Ericsson
      shall make the equipment in Ericsson’s laboratory and listed on Exhibit 1
      (“Equipment”) hereto available for use by Globalstar and Hughes for a
      period of [*] months, beginning on [*] and ending on
  [*];

              

      

       

      
        	
                b.  

              	
                Such
      use shall be by remote connection and it shall be Globalstar’s
      responsibility to provide such connectivity to the Equipment in the
      Ericsson laboratory;

              

      

       

      
        	
                c.  

              	
                Ericsson
      shall provide the following associated support services (“Services”)
      during the [*] months that Globalstar and Hughes uses the
      Equipment:

              

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                            

                          

                        

                      

                    

                  

                

              

            

          

        

        
          

          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

      

       

      [*] weeks
of Engineering Support to be provided on request based on availability
throughout the [*] months of laboratory use;

       

      
        	
                d.  

              	
                Globalstar
      and Hughes shall have the right to use the Equipment for a total of [*]
      months in [*] week minimum increments during the [*] months that the
      Equipment is available.  If Globalstar and Hughes suspends use
      of the Equipment, Globalstar shall provide Ericsson with a minimum of [*]
      weeks prior written notice before restarting use of the Equipment and the
      associated Services; and

              

      

       

      
        	
                e.  

              	
                Ericsson
      shall invoice Globalstar for the total amount of [*] at the completion of
      the [*] months of use of the Equipment, but in no event later than
      [*].

              

      

       

      
        	
                2.  

              	
                With
      respect to Article 10, Prices and Fees of the Contract, the Total Purchase
      Price is amended to be a firm-fixed price of Twenty Seven Million Eight
      Hundred Eighty Five Thousand Four Hundred Eighty Four United States
      Dollars (US$27,885,484).

              

      

       

      Except as
amended herein, all terms and conditions of the Contract as may have been
previously amended shall remain unchanged and in full force and
effect.

       

      IN
WITNESS WHEREOF, the parties to this Amendment No. 2 have caused their
authorized representatives to execute this Amendment No. 2 as of the Amendment
No. 2 Effective Date.

       

      
        
          
            
              
                
                  
                    
                      	
                              ERICSSON
      FEDERAL INC.

                            	 
      	
                              GLOBALSTAR,
      INC.

                            
	 
      	 
      	 
      	 
      	 
      
	
                              By:

                            	
                              /s/
      David Thompson

                            	 
      	
                              By:

                            	
                              /s/
      Paul Rosati

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Name:

                            	
                              David
      Thompson

                            	 
      	
                              Name:

                            	
                              Paul
      Rosati

                            
	 
      	 
      	 
      	 
      	 
      
	
                              Title:

                            	
                              CFO

                            	 
      	
                              Title:

                            	
                              Contracts
      Manager

                            

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                          

                        

                      

                    

                  

                

              

            

          

        

        
          

        
          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

         

      

      Exhibit
1

       

      Equipment

       

      [*]Exhibit
10.4

    

    CONFIDENTIAL
TREATMENT

    

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

    

    Amendment
No. 8

    To

    QUALCOMM
Globalstar Satellite Products Supply Agreement

    Agreement
No. 04-QC/NOG-PRODSUP-001

    (NOG-C-04-0137)

    

    This
Amendment No. 8 (“Amendment”) is effective as of  August
12,  2009 (“Amendment Effective Date”) by and between QUALCOMM Incorporated, a
Delaware corporation (“Qualcomm”) and Globalstar, Inc., a Delaware
corporation (“Buyer”), and Globalstar Canada Satellite
Company (“GCSC”) a Nova Scotia Corporation and wholly owned subsidiary of
Buyer, with respect to the below stated facts.

     

    This
Amendment must be signed by  August 18, 2009; otherwise,
this Amendment offer is no longer valid.

     

    RECITALS

     

    A.       Qualcomm
and Buyer executed the Qualcomm Globalstar Satellite Products Supply Agreement
No. 04-QC/NOG-PRODSUP-001 dated April 13, 2004, as amended (the “Agreement”),
pursuant to which Qualcomm agreed to sell to Buyer, and Buyer agreed to
purchase, Globalstar products from time to time for resale to customers under
such Supply Terms and Conditions.

     

    B. 
 Qualcomm and Buyer executed Amendment No. 1 dated May 25, 2005 to the
Agreement, pursuant to which Qualcomm agreed to modify the Globalstar GSP-1600
Tri-Mode Satellite Phone to replace the LCD (“GSP-1600”) and make available a
limited quantity of GSP-1600s and other Globalstar products to Globalstar for
resale to its customers.

     

    C.  
Qualcomm and Buyer executed Amendment No. 2 dated May 25, 2005 to the Agreement,
pursuant to which QUALCOMM agreed to manufacture, sell and deliver New Products
to Globalstar for resale to its customers.

     

    D.  
 Qualcomm and Buyer executed Amendment No. 3 dated September 30, 2005 to
the Agreement pursuant to which Qualcomm agreed to sell to Buyer additional
GSP-1600s and other Globalstar products for resale to its
customers.

     

    E.      Qualcomm
and Buyer executed Amendment No. 4 dated August 15, 2006 pursuant to which Buyer
agreed to undertake to performance of the final packaging of the GCK-1700 Car
Kit and SDVM, including procurement of such packaging materials and antenna(s),
and accordingly, (i) Buyer will no longer be required to deliver production
GCK-1700 Car Kit and/or SDVM Antennas and applicable documentation to Qualcomm
as set forth in Section 27 of the Agreement, and (ii) QUALCOMM will deliver
GCK-1700 Car Kits and SDVMs, without antennas, as provided for in Section 26 of
the Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    F.   
Qualcomm, Buyer and GCSC executed the Assignment and Performance Guarantee
Agreement No. 06-QC/Globalstar-AA-001 GINC-C-06-0306 dated October 11, 2006 by
which Globalstar assigned its rights, title and interests in and to Amendment 2
to the Agreement, including all rights and obligations arising under Purchase
Orders issued pursuant to Amendment 2 to GCSC.

     

    G.
Qualcomm, Buyer and GCSC executed Amendment No. 5, pursuant to which the parties
agreed to further extend the Term and revise the Delivery Schedule and pricing
terms for New Products and other terms and set forth therein.

     

    H.
Qualcomm, Buyer and GCSC executed Amendment No. 6 pursuant to which the parties
agreed to amend the Agreement to provide for indemnification for Qualcomm as it
relates to the use of any non-conforming battery with the GSP-1700
handset.

     

    I.
Qualcomm, Buyer and GCSC executed Amendment No. 7 pursuant to which the parties
revised the delivery schedule of New Products to reflect a suspension in
deliveries for a period of eighteen (18) months with deliveries scheduled to
resume in April, 2010.

     

    J. Buyer
has requested, and Qualcomm has agreed subject to certain terms and conditions
set forth herein, to extend the term and to revise the delivery schedule of New
Products to reflect an extension of the suspension in deliveries for an additional six (6) months with
deliveries scheduled to resume in October 2010 as set forth in
the Fourth Revised Delivery Schedule, attached hereto as Exhibit A. Buyer and
Qualcomm have further agreed that the provisions concering resumption of the New
Products Delivery Schedule and associated pricing conditions for resumption are
also modified accordingly as set forth herein.

     

    Finally,
this Amendment 8 modifies the Tier 3 Hotline Support pricing and establishes a
final shut down date of September 30, 2009 as set
forth in the Master Ordering Agreement (For Services) For the Globalstar Program
#04-QC/NOG-MOA-001 (Revised Task Order #1).

     

    By this
Amendment, Qualcomm, Buyer and GCSC agree to further amend the Agreement as set
forth below.

     

    AGREEMENT

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, and intending to be legally bound hereby, the parties hereby modify
the Agreement as set forth herein.

     

    
      	
               
      

            	
              1.

            	
              Section
      30, Term Extension, is hereby modified as
  follows:

            

    

    

    “30. Term
Extension.     The Term of the Agreement is
hereby extended five  (5) additional months from September 30, 2011
to
February 28, 2012, unless otherwise terminated as provided for in this
Amendment No. 8 and the Agreement.”

    

    2.           Section
32. Special
Provisions for Suspended New Products Delivery Schedule is hereby
modified as follows:

    

    “32.1
Suspended
New Products Delivery Schedule. As of the Amendment Effective Date, the
delivery schedule as set forth in Attachment 1(a) to Amendment No. 2, as amended
in Amendments No. 5 and No. 7, is further amended to reflect a suspension of
deliveries of an additional
six (6) months, for a total of a twenty four (24) month suspension for
delivery for New Products as reflected in the Exhibit A hereto (“Fourth
Revised Delivery Schedule”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    32.2
Resumption
of New Products Delivery Schedule. As a condition of further suspending
deliveries as set forth herein, Buyer must now provide written notification to
Qualcomm no later
than January 29, 2010 (in lieu now of August 15, 2009) of either (i) its desire to
resume taking deliveries of and making payment for the New Products as set forth
in the Fourth
Revised Delivery Schedule or (ii) provide notice of discontinuation as
set forth in Section 32.3 below.   All units of the remaining New
Products must be included in Buyer’s selection of (i).

    

     32.3    Fourth
Revised Delivery Schedule Pricing.  Both parties acknowledge
and agree that due to the delivery suspension, the pricing of the New Products
may increase due to parts obsolescence, supplier issues and other manufacturing
costs associated with re-start-up costs. If Qualcomm determines that the costs
to re-start and manufacture the New Products will increase, Buyer agrees to pay
an increase in the current GSP-1700 price of no more than [*] per GSP-1700 for
the remaining delivery quantity.

    

    Qualcomm
will provide written notice to Buyer of any increase in price for the GSP-1700
by
January 14, 2010 (in lieu now of August 1, 2009).  If the price
increase is greater than [*] per GSP-1700, Buyer can either (A) accept the
increase in price (“Option A”), or (B) terminate the Agreement for
discontinuance and must (i) purchase all available Finished Goods for all New
Products in inventory at the current price (“Finished Goods” is defined as all
New Products in inventory at the -10 level or above), and (ii) purchase all
components or any other parts on order and purchased by Qualcomm in support of
the current delivery schedule at Qualcomm’s cost; and (iii) negotiate in good
faith a license and license fee and ASIC Supply Agreement from Qualcomm to allow
a third party manufacturer to manufacture the New Products on behalf of Buyer,
all as set forth in Section 32.4.2 (collectively “Option B”).  Buyer
must provide written notice of either Option A or Option B no later
than January 29, 2010 (in lieu now of August 15,
2009) otherwise Qualcomm shall have the right to terminate the Agreement
as set forth in Section 32.4.1 below.

    

    32.4     Additional
Termination Provisions

    

    32.4.1   By
Qualcomm.   In addition to the termination provisions and
rights set forth in the Agreement,  Buyer’s failure to confirm in
writing its agreement to either (i) resume taking all outstanding deliveries of
the New Products as set forth in the Fourth
Revised Delivery Schedule, (ii) timely selection of Option A, or Option
B, or (iii)  Buyer’s failure to comply with the terms of this
Agreement, including (a) failure to make timely payments for all outstanding
invoices, (b) failure to make timely payments for all New Products and parts or
components purchased by Qualcomm in support of the current delivery schedule in
inventory or committed to by Qualcomm with suppliers that cannot be canceled at
the time of termination, or (c), failure to enter into a License Agreement for a
third party manufacturer  within ninety (90) days of Agreement
termination, shall constitute a material default under this Agreement and
Qualcomm shall deliver written notice of its intent to terminate for breach. If
a material default is not cured within thirty (30) calendar days after the date
of notice, or if Qualcomm, in its sole discretion, determines it cannot support
resumption of the delivery schedule due to resource availability, costs or any
other business reason, Qualcomm shall have the right to (1) terminate the
Agreement, and (2) cancel any undelivered portions of the Purchase Order for New
Products, subject to all termination rights set forth in the Agreement,
including but not limited to Termination Charges defined in Section 1, and
Sections 3.3 and 16 of the Supply Terms and other termination fees set forth in
Section 20.1, as amended in Amendment No. 5 and (3) immediately terminate the
Master Ordering Agreement, including all Task Orders for Hotline/Help Desk
Support unless
earlier terminated by the parties, upon written notice to
Buyer.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    32.4.2    Discontinuation
By Buyer.  In the event Qualcomm determines that the price of
the GSP-1700 will increase more than [*] per phone as a result of the cost
analysis by Qualcomm, Buyer may discontinue this Agreement subject to the
following conditions:

    

    1. Buyer
agrees to take delivery within forty five (45) days of termination, and to pay
within ninety (90) days of termination the following:

    
      	
               
      

            	
              ·

            	
              All
      available Finished Goods for all New Products in inventory at the time of
      termination at the New Product current
price.

            

    

    
      	
               
      

            	
              ·

            	
              All
      components and parts purchased by Qualcomm in support of the current
      delivery schedule that are in inventory or committed to with a supplier
      that can not be canceled, at Qualcomm’s cost, plus any cancellation or
      other fees, including restocking fees imposed by suppliers due as a result
      of termination.

            

    

    

    2. Buyer
and Qualcomm will negotiate in good faith a technology license and an ASIC
Supply Agreement to enable a third-party manufacturer to manufacture and sell
phones on behalf of Buyer.  The License must be executed within ninety
(90) days of the date of termination.”

    

    3. Attachment.

    

    
      	
               
      

            	
              A.

            	
              Attachment.  Attachment
      No. 1(a) to Amendment No. 2, Revised Delivery Schedule for New Products as
      amended in Amendments No. 5 and No. 7 is further amended to reflect the
      suspension of all New Product deliveries for
      a total of twenty four (24) months, beginning with the October 2008
      delivery. Deliveries of New Products will resume October
      2010 as provided for in this Exhibit A, Fourth
      Revised Delivery Schedule.

            

    

    

    4.           Exhibit
A, Qualcomm Supply Terms and
Conditions is hereby revised as follows:

    

    Section
9.7, Payment
Offset remains unchanged and is as follows:

    

    “9.7            Payment
Offset.  Any payments made by Buyer and/or GCSC to Qualcomm,
pre-paid or otherwise, may be used by Qualcomm to offset any outstanding amounts
owed by Buyer and/or GCSC to Qualcomm, under this Agreement or any other
agreement. Notwithstanding Qualcomm’s right to offset in this section, Buyer
and/or GCSC must continue to make all payments in a timely manner as required
under this agreement. ”

    

    5.           Hotline Support. Both parties
agree that the Master Ordering Agreement (For Services) For the Globalstar
Program #04-QC/NOG-MOA-001, as amended (“MOA”)and Revised Task Order #1 for Tier
3 Hotline/Help Desk Support Under the Master Ordering Agreement (for Services)
For the Globalstar Program #04-QC/NOG-MOA-001 (Revised Task Order #1) shall be
amended as follows:

    

    The
parties agree that the term of the Hotline/Help Desk Support shall
cease on September 30, 2009.  Further, the fixed price for
Hotline/Help Desk Support for the remainder of the term shall be as
follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                November
      1, 2008 – May 31, 2009

              	
                 [*]
      per month (payments received)

              	 
      
	 
      	
                June
      1, 2009 – July 31, 2009

              	
                [*]
      per month

              	 
      
	 
      	
                August
      1, 2009 - September 30, 2009

              	
                [*]
      per
      month

              	 
      

      

    

    

    6. As a
condition of this Amendment, Buyer and/or GCSC must pay all outstanding amounts
due Qualcomm under this Agreement or any other agreement as of the Amendment
Effective Date no later than five days from the Amendment Effective Date. These
amounts may not be offset by Buyer and/or GCSC against prior payments made to
Qualcomm, prepaid or otherwise.

    

    EFFECTIVENESS. Except
as modified by this Amendment No.8 as of the Amendment Effective Date, the
Agreement shall remain in full force and effect.  No modification,
amendment or other change may be made to this Amendment No. 8 or any part
thereof unless reduced to writing and executed by authorized representatives of
both parties.

    

    IN
WITNESS THEREOF, the parties have executed this Amendment No. 8 as of the
Amendment Effective Date.

    

    
      	
              QUALCOMM
      Incorporated

            	 
      	
              Globalstar,
      Inc.

            
	 
      	 
      	 
      	 
      	 
      
	
              By:
      

            	
              /s/ Scott J. Becker

            	 
      	
              By:

            	
              /s/ William F. Adler

            
	 
      	 
      	 
      	 
      	 
      
	
              Name: 

            	
              Scott J. Becker

            	 
      	
              Name: 

            	
                William F. Adler

            
	 
      	 
      	 
      	 
      	 
      
	
              Title:

            	
              Sr. Vice President, Finance

            	 
      	
              Title:

            	
              VP – Legal &
  Regulatory

            
	 
      	
              Qualcomm Enterprise
Services

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Globalstar
      Canada Satellite Company

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ William F. Adler

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Name:

            	
              William F. Adler

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Title:

            	
              Secretary

            	 
      	 
      	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Fourth
Revised Delivery Schedule for New Products

    October
2008 – January 2012

    

    
      
        
          
            
              
                	
                        Schedule Ship Date

                      	 
      	
                        GSP-1700

                      	 
      	
                        GIK-1700

                        Car Kit

                      	 
      	
                        GSP-1720

                        SDVM

                      	 
      	
                        Car Power

                        Adapter

                      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                        [*]

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