Document:

exv10w36

 

EXHIBIT 10.36

	 	 	CONFIDENTIAL TREATMENT REQUESTED

The asterisked (“*****”) portions of this document have been omitted and filed separately with the Securities
and Exchange Commission pursuant to a request for confidential treatment.

Intelsat Americas 8 Amended
and Restated Contract

AMENDED AND RESTATED CONTRACT

(NO. LS117A)

between

Intelsat LLC

and

SPACE SYSTEMS/LORAL, INC.

for

Intelsat Americas 8 (formerly Telstar 8)

SATELLITE PROGRAM

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1- DEFINITIONS
	 	 	2	 
	ARTICLE 2 - SCOPE OF WORK
	 	 	3	 
	ARTICLE 3 - DELIVERABLE ITEMS AND DELIVERY SCHEDULE
	 	 	4	 
	ARTICLE 4 - FIRM FIXED PRICE
	 	 	5	 
	ARTICLE 5 - PAYMENTS
	 	 	5	 
	ARTICLE 6 - PURCHASER FURNISHED ITEMS
	 	 	7	 
	ARTICLE 7 - LAUNCH SERVICES
	 	 	8	 
	ARTICLE 8 - ACCESS TO WORK IN PROGRESS
	 	 	9	 
	ARTICLE 9 - PRE-SHIPMENT INSPECTION
	 	 	11	 
	ARTICLE 10 - SATELLITE ACCEPTANCE
	 	 	12	 
	ARTICLE 11 - ACCEPTANCE INSPECTION FOR DELIVERABLE ITEMS OTHER THAN SATELLITES
	 	 	12	 
	ARTICLE 12 - SHIPMENT, DELIVERY, TITLE RISK OF LOSS AND CIP
	 	 	13	 
	ARTICLE 13 - RESERVED
	 	 	14	 
	ARTICLE 14 - TERMINATED IGNITION
	 	 	14	 
	ARTICLE 15 - WARRANTY
	 	 	15	 
	ARTICLE 16 - EFFECTIVITY
	 	 	17	 
	ARTICLE 17 - FORCE MAJEURE
	 	 	17	 
	ARTICLE 18 - PURCHASER DELAY OF WORK
	 	 	18	 
	ARTICLE 19 - PATENT INDEMNITY
	 	 	18	 
	ARTICLE 20 - INDEMNITY
	 	 	19	 
	ARTICLE 21 - TERMINATION FOR CONVENIENCE
	 	 	20	 
	ARTICLE 22 - DELIVERY DAMAGES
	 	 	22	 
	ARTICLE 23 - DEFAULT
	 	 	22	 
	ARTICLE 24 - RESERVED
	 	 	23	 
	ARTICLE 25 - ARBITRATION
	 	 	23	 
	ARTICLE 26 - INTER-PARTY WAIVER OF THIRD PARTY LIABILITY
	 	 	23	 
	ARTICLE 27 - CORRECTIVE MEASURES IN UNLAUNCHED SATELLITES
	 	 	24	 
	ARTICLE 28 - RESERVED
	 	 	24	 
	ARTICLE 29 - RESERVED
	 	 	24	 
	ARTICLE 30 - COMMUNICATIONS SIMULATOR WARRANTY
	 	 	24	 
	ARTICLE 31 - RESERVED
	 	 	24	 
	ARTICLE 32 - RESERVED
	 	 	24	 
	ARTICLE 33 - GROUND STORAGE OPTION
	 	 	24	 
	ARTICLE 34 - RESERVED
	 	 	26	 
	ARTICLE 35 - CONFIDENTIAL INFORMATION
	 	 	26	 
	ARTICLE 36 - RIGHTS IN DATA
	 	 	27	 
	ARTICLE 37 - PUBLIC RELEASE OF INFORMATION
	 	 	27	 
	ARTICLE 38 - NOTICES
	 	 	28	 
	ARTICLE 39 - INSURANCE
	 	 	29	 
	ARTICLE 40 - ORDER OF PRECEDENCE
	 	 	31	 
	ARTICLE 41 - GENERAL
	 	 	31	 
	ARTICLE 42 - ISO 9000 Certification
	 	 	34	 
	ARTICLE 43 - CFC PACKAGING
	 	 	34	 
	ARTICLE 44 - OZONE DEPLETING SUBSTANCES LABELING
	 	 	34	 
	ARTICLE 45 - HEAVY METALS IN PACKAGING
	 	 	35	 
	ARTICLE 46 - RESERVED
	 	 	35	 
	ARTICLE 47 - FCC REGISTRATION
	 	 	35	 
	ARTICLE 48 - HARMONY
	 	 	35	 
	ARTICLE 49 - NONEXCLUSIVE RIGHTS
	 	 	35	 
	ARTICLE 50 - QUALITY SYSTEM AUDIT
	 	 	35	 
	ARTICLE 51 - AUDIT
	 	 	36	 
	ARTICLE 52 - RELEASES VOID
	 	 	36	 

 

 

	 	 	 	 	 
	ARTICLE 53 - TRAINING
	 	 	36	 
	ARTICLE 54 - WORK HEREUNDER
	 	 	36	 
	ARTICLE 55 - DURATION
	 	 	37	 
	ARTICLE 56 - CHANGES IN SCOPE
	 	 	37	 
	ARTICLE 57 - MATERIAL TESTING
	 	 	37	 
	ARTICLE 58 - REPAIR PROCEDURES
	 	 	38	 
	ARTICLE 59 - SUPERVISION
	 	 	38	 
	ARTICLE 60 - MARKING
	 	 	38	 
	ARTICLE 61 - LABOR RELATIONS
	 	 	38	 
	ARTICLE 62 - SUSPENSION OF WORK
	 	 	39	 
	ARTICLE 63 - TRANSFER OF SOFTWARE AND LICENSE BY PURCHASER
	 	 	39	 
	ARTICLE 64 - RESERVED
	 	 	39	 
	ARTICLE 65 - RIGHT OF ENTRY AND PLANT RULES
	 	 	39	 
	ARTICLE 66 - WORK DONE BY OTHERS
	 	 	40	 
	ARTICLE 67 - PROGRAM MANAGEMENT AND PROGRAM MASTER SCHEDULE
	 	 	40	 
	ARTICLE 68 - MEETINGS, PRESENTATIONS, SCHEDULE UPDATES AND REPORTS
	 	 	40	 
	ARTICLE 69 - COMPATIBILITY WITH THE LAUNCH VEHICLES
	 	 	41	 
	ARTICLE 70 - DOCUMENTATION
	 	 	41	 
	ARTICLE 71 -
REPAIR/REPLACEMENT PARTS - CONTINUING AVAILABILITY
	 	 	42	 
	ARTICLE 72 - TECHNICAL SUPPORT
	 	 	42	 
	ARTICLE 73 - LICENSE OF SOFTWARE AND LICENSE TERM
	 	 	43	 
	ARTICLE 74 - SOFTWARE MAINTENANCE AND MODIFICATIONS
	 	 	43	 
	ARTICLE 75 - SOFTWARE WARRANTY
	 	 	43	 
	ARTICLE 76 - EXPORT CONTROL
	 	 	44	 
	ARTICLE 77 - RESERVED
	 	 	45	 
	ARTICLE 78 - REGISTRATION OF PURCHASER SATELLITE
	 	 	45	 
	ARTICLE 79 - UTILIZATION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES
	 	 	45	 
	ARTICLE 80 - ATTACHMENTS
	 	 	45	 
	ARTICLE 81 - ENTIRE AGREEMENT
	 	 	46	 

 

 

Page 1 of 52

AMENDED AND RESTATED CONTRACT

FOR

INTELSAT AMERICAS 8 (formerly Telstar 8) SATELLITE PROGRAM

PREAMBLE

This Amended and Restated Contract is entered into effective upon the Closing
(as defined below), by and between Intelsat LLC, a Delaware limited liability
company, having an office and place of business at North Tower,
2nd Floor, 90
Pitts Bay Road, Pembroke HM 08, Bermuda (hereinafter referred to as
“Purchaser”) and Space Systems/Loral, Inc., a corporation organized and
existing under the laws of the State of Delaware, having an office and place of
business at 3825 Fabian Way, Palo Alto, California 94303 (hereinafter referred
to as “Contractor”).

WITNESSETH

WHEREAS, Contractor and Loral SpaceCom Corporation (doing business as Loral
Skynet) were originally parties to this Contract effective as of June 24,
1998, as amended, to procure one Communications Satellite Delivered In-orbit,
with associated Launch Risk Management Insurance, one Dynamic Simulator, one
Communications Simulator, a Telemetry Archive and Presentation System (TAPS)
and upgrades to existing Satellite Control Facilities (SCF) at Hawley and
Three Peaks, access to the Spacecraft Trending, Analysis and Reporting System
(STAR) test data distribution system, and certain support and training
services; and

WHEREAS, Intelsat, Ltd., a Bermuda corporation, Intelsat (Bermuda), Ltd., a
Bermuda corporation (“Buyers”), and Loral Space & Communications Corporation,
a Delaware corporation (“Loral Space”), Loral SpaceCom Corporation, a Delaware
corporation (“Loral SpaceCom”), and Loral Satellite, Inc., a Delaware
corporation (together with Loral Space and Loral SpaceCom, the “Sellers”) have
entered into the Asset Purchase Agreement (hereinafter “Asset Purchase
Agreement” or “APA”) pursuant to which the Sellers have agreed to sell and the
Buyer has agreed to purchase certain assets; and

WHEREAS, in connection with the APA transaction, Loral SpaceCom and Intelsat
LLC agree that, upon the Closing (as defined below), Intelsat LLC will become,
and assume the rights and obligations of, the purchaser under the Contract for
the Telstar 8 Satellite and certain associated deliverables, subject to
modifications to such Contract in accordance with Annex H of the APA, and that
Intelsat LLC will purchase Orbital Performance Incentives (as defined below)
for the Telstar 8 Satellite, without recourse to Contractor for repayment; and

WHEREAS, Contractor is willing to furnish such Satellite, access to the
Spacecraft Trending, Analysis and Reporting System (STAR) test data
distribution system and certain support and training services as stated herein
to Intelsat LLC as Purchaser hereunder, in consideration of the price, and in
accordance with the Exhibits and other terms and conditions of this Amended
and Restated Contract; and

WHEREAS, Purchaser has decided to change the name of the Telstar 8 Satellite
Program to the Intelsat Americas 8 (IA8) Satellite Program, and to change the
name of the Satellite to the Intelsat Americas 8 Satellite, and the Parties
agree to change the names in all future Contract documentation accordingly.

 

 

Page 2 of 52

NOW, THEREFORE, the Parties hereto agree as follows:

ARTICLE 1 - DEFINITIONS

The following terms shall have the meanings assigned to them in this Amended
and Restated Contract:

	 	 	 
	1.1

	 	“Acceptance” with respect to any Deliverable Item other than the
Satellite shall be as defined in Article 11 hereof. “Acceptance” with
respect to the Satellite shall be as defined in Article 10 hereof.
	 
	 	 
	1.2

	 	“Asset Purchase Agreement” or “APA” shall have the meaning set forth in the Preamble.
	 
	 	 
	1.3

	 	“CIP” shall have the meaning set forth in Article 12.3 hereof.
	 
	 	 
	1.4

	 	“Closing” shall refer to the date of the closing of the purchase and
sales transaction provided for in the Asset Purchase Agreement.
	 
	 	 
	1.5

	 	“Contract” means this executed Amended and Restated Contract, its
Exhibits and its Attachments, plus any amendments thereto, to which the
Parties agree in writing.
	 
	 	 
	1.6

	 	“Contractor” means Space Systems/Loral, Inc.
	 
	 	 
	1.7

	 	“Day or Days”- Unless otherwise stated herein all references made to the
word “day” or “days” shall mean “calendar day or calendar days”.
	 
	 	 
	1.8

	 	“Deliverable Data” shall have the meaning set forth in Exhibit A hereto.
	 
	 	 
	1.9

	 	“Deliverable Items” shall have the meaning set forth in Article 3.1 hereof.
	 
	 	 
	1.10

	 	“Delivery” for the Satellite shall be as defined in Article 12.1 hereof.
	 
	 	 
	1.11

	 	“Delivery” for Deliverable Items other than the Satellite shall occur
upon Acceptance as confirmed in writing by Purchaser as described in
Article 12.2 hereof.
	 
	 	 
	1.12

	 	“Effective Date of Contract” or “EDC” means June 24, 1998.
	 
	 	 
	1.13

	 	“FCC” means the Federal Communications Commission or any successor agency
or governmental authority.
	 
	 	 
	1.14

	 	“Firm Fixed Price” shall have the meaning set forth in Article 4.1.
	 
	 	 
	1.15

	 	“Force Majeure” shall have the meaning set forth in Article 17 hereof.
	 
	 	 
	1.16

	 	“Ground Storage” of the Satellite means a condition where the Satellite
or its component parts are secured in a controlled environment for
preservation on the ground.
	 
	 	 
	1.17

	 	“In-Orbit Testing” or
“IOT” means the testing of the Satellite after
Launch as more fully described in the Program Test Plan.
	 
	 	 
	1.18

	 	“Intentional Ignition” means the time in the ignition process for the
purpose of the Launch when the command signal intended to commence flow of
the fuel and/or oxidizer to the first stage engines is sent from the
launch control console and is received by the Launch Vehicle.
	 
	 	 
	1.19

	 	“ISPO-PA” means the Purchaser’s program management office.
	 
	 	 
	1.20

	 	“Item” means a unit of the deliverable hardware.
	 
	 	 
	1.21

	 	“Launch” of the Satellite means the Intentional Ignition of the first
stage engines of a Zenit 3SL Launch Vehicle that has been integrated with
the Satellite followed by Lift-Off or destruction of the Launch Vehicle
(where Lift-Off means release of the hold-down constraints following
Intentional Ignition).
	 
	 	 
	1.22

	 	“Launch Agency” means the expendable launch vehicle provider responsible
for conducting the Launch of the Satellite as defined in the applicable
Launch Services Agreement.

 

 

Page 3 of 52

	 	 	 
	1.23

	 	“Launch Risk Management Insurance” shall mean the Launch risk
management insurance obtained pursuant to Article 39.1 hereof.
	 
	 	 
	1.24

	 	“Launch Services” means those services, in support of a Launch provided
by a Launch Agency.
	 
	 	 
	1.25

	 	“Launch Services Agreement” means the agreement between Contractor and
a Launch Agency which provides for Launch of the Satellite.
	 
	 	 
	1.26

	 	“Launch Site” means the location which will be used by a Launch Agency
for purposes of launching the Satellite.
	 
	 	 
	1.27

	 	“Launch Support” or “Launch Support Services” means those services
provided by Contractor, pursuant to Exhibit A, the Statement of Work
hereto, in support of a Launch by a Launch Agency.
	 
	 	 
	1.28

	 	“Launch Vehicle” means an expendable launch vehicle or such other
launch vehicle used for the
Launch of the Satellite as set forth in Article 2.2.2.
	 
	 	 
	1.29

	 	“Mission Operations Support Services” means the services performed by Contractor
including orbit raising of the Satellite and In-Orbit
Testing of the Satellite.
	 
	 	 
	1.30

	 	“NPV” means Net Present Value.
	 
	 	 
	1.31

	 	“NSP” means not separately priced.
	 
	 	 
	1.32

	 	“Party” or “Parties” means Purchaser and/or Contractor who are the
principals to this Contract.
	 
	 	 
	1.33

	 	“Payment Plan” means, within the context of the Article using the term,
the applicable payment plan attached hereto as Attachment A.
	 
	 	 
	1.34

	 	“Performance Specification” means the System Performance Specification
attached hereto as Exhibit B.
	 
	 	 
	1.35

	 	“Program Test Plan” means
the Satellite program test plan attached hereto
as Exhibit D.
	 
	 	 
	1.36

	 	“Purchaser” means Intelsat LLC.
	 
	 	 
	1.37

	 	“Satellite” means the communications Satellite which is manufactured by
Contractor and Delivered to Purchaser pursuant to this Contract.
	 
	 	 
	1.38

	 	“Satellite Anomaly” shall have the meaning set forth in Article 6.2 hereof.
	 
	 	 
	1.39

	 	“Satellite Operations Training” shall have the meaning set forth in Exhibit A.
	 
	 	 
	1.40

	 	“Service Life” means the in-orbit useful life of the Satellite.
	 
	 	 
	1.41

	 	“Statement of Work” or “SOW” means the statement of work attached hereto as Exhibit A.
	 
	 	 
	1.42

	 	“Terminated Ignition” shall be as defined in Article 14 hereof.

ARTICLE 2 - SCOPE OF WORK

	2.1	 	Provision of Services and Materials
	 
	 	 	Contractor shall provide the necessary personnel, material, services,
and facilities to: manufacture, integrate, test, and if applicable
launch, and deliver to Purchaser one (1) Satellite, one (1)
Communications Simulator, one (1) Dynamic Simulator, a Telemetry Archive
and Presentation System (TAPS), access to the Spacecraft Trending,
Analysis and Reporting System (STAR) test data distribution system and
certain support and training services in accordance with the following
Exhibits, which are attached hereto and made a part hereof:

	 	2.1.1	 	Exhibit A, Statement of Work, Revision 1, dated 8 March 2004;
	 
	 	2.1.2	 	Exhibit B, System Performance Specification, Revision 3, dated 8 January 2004;
	 
	 	2.1.3	 	Exhibit C, Product Quality Assurance Plan, dated 10 December 1999;
	 
	 	2.1.4	 	Exhibit D, Spacecraft Test Plan, dated 30 January 2002;
	 
	 	2.1.5	 	Exhibit E, Communications Simulator Specification, Rev. 2, dated 22 February 2002

 

 

Page 4 of 52

	 	2.1.6	 	Exhibit F, Dynamic Simulator Specification, Rev 1, dated 2 November 2000;
	 
	 	2.1.7	 	Exhibit G, TAPS, dated 30 March 2000

	2.2	 	Launch Risk Management and Launch Vehicle

The Firm Fixed Price specified in Article 4.1 hereof contemplates the
Launch of the Satellite on a Sea Launch Launch Vehicle.

	 	2.2.1	 	Launch Risk Management

This Contract requires that Contractor procure a Launch Risk
Management Insurance Policy, in accordance with Article 39 hereof.
The Launch Risk Management Insurance Policy is included within the
Firm Fixed Price set forth in Article 4.1 hereof.
	 
	 	2.2.2	 	Change of Launch Vehicle
	 
	 	 	 	The price for the Launch Services includes the service
of one (1) Sea Launch Launch Vehicle. Any change to this
designated Launch Vehicle service shall be mutually agreed to by
the Parties. If such change is requested by Contractor, there
shall be no impact to Contract terms and conditions, including
price and schedule. If Purchaser requests a change in the
designated Launch Vehicle service, Purchaser shall be
responsible to compensate Contractor for any associated impact
to the terms and conditions of this Contract, including the
price and schedule.

ARTICLE 3 - DELIVERABLE ITEMS AND DELIVERY SCHEDULE

	3.1	 	Deliverable Items

The items to be delivered and the corresponding Delivery schedule under
this Contract are as follows (collectively, the “Deliverable Items”):

	 	 	 	 	 	 	 
	Item
	 	Description
	 	Delivery Schedule
	 	Location

	1.

	 	Satellite
	 	July 1, 2004
	 	Launch Site
	 	 	 	 	 	 	 
	2.

	 	Technical Data and

Documentation
	 	Per Exhibit A*
	 	ISPO-PA / Washington DC
	 	 	 	 	 	 	 
	3.

	 	Ground Storage Option
	 	Per Article 33
	 	Palo Alto
	 	 	 	 	 	 	 
	4.

	 	One (1) Communications

Simulator
	 	Delivered
	 	Hawley PA
	 	 	 	 	 	 	 
	5.

	 	One (1) Dynamic Simulator
	 	Delivered**
	 	Hawley PA
	 	 	 	 	 	 	 
	6.

	 	TAPS
	 	Per Exhibit G

(Delivered to Loral

Skynet Pre-Closing)**
	 	Hawley PA

 

 

Page 5 of 52

	 	 	 	 	 	 	 
	7.

	 	Data Feed for STAR’S Data
	 	 	 	Palo Alto CA

	 	 	 
	Note:

	 	* Copy of all previously issued Deliverable Data which
is not provided by Loral Skynet within 30 days of Closing, to be
provided to ISPO-PA within 15 days thereof.
	 
	

	 	** Previously Delivered to and Accepted by Skynet.

ARTICLE 4 - FIRM FIXED PRICE

	4.1	 	Firm Fixed Price

Upon the full, satisfactory and timely completion and Delivery, as
required by this Article and Article 3 of this Contract, entitled
Deliverable Items and Delivery Schedule, of the Deliverable Items
specified below and Acceptance by Purchaser thereof, all in accordance
with the requirements of this Contract, the Contractor shall be entitled
to payment by Purchaser of the remaining balance of the firm fixed price
(“Firm Fixed Price”) as specified below.
	 
	 	 	The Firm Fixed Price includes all taxes, duties, transportation,
insurance as specified herein and all other such costs and charges
associated with the performance of all work. The Contractor shall be
responsible for payment of all taxes and duties which may be required
under any present or future laws and which become due by reason of
performance of the work, and shall comply with all requirements of said
laws, including making of payment of any interest or penalties related
to or arising from such taxes and duties.
	 
	 	 	The Firm Fixed Price includes all design, manufacturing, integration,
tests, documentation, training, Launch and placement into assigned
orbital location, Launch Services, Launch Support Services, Mission
Operation Support Services including In-Orbit Testing, cost of shipment
and transportation, all as specified herein.
	 
	 	 	FIRM FIXED PRICE *****

(Includes Launch and Launch Risk Management Insurance Policy)
	 
	 	 	With respect to the Firm Fixed Price, Contractor acknowledges that, as of
Closing, all payments under the Contract have been paid, except for the
following which the Purchaser is liable for: (a) the sum of
***** in payment of Contractor’s services related to the provision of Launch Risk
Management Insurance on terms as provided in Article 39.1, and Launch
Services including the service of the Launch Vehicle. As of the Closing,
neither Contractor nor Purchaser has any claim against the other arising
out of or related to the Contract or program.

ARTICLE 5 - PAYMENTS

	5.1	 	Payment Plan
	 
	 	 	Payments by Purchaser to Contractor of the Firm Fixed Price set forth in
Article 4 hereof shall be in accordance with the applicable Payment Plan
set forth in Attachment A hereto. In the event that

 

 

Page 6 of 52

	 	 	Purchaser exercises any of the options under this Contract, Purchaser
shall make payments for such options, unless otherwise specified herein,
in accordance with the applicable Payment Plan(s).
	 
	5.2	 	Payment Conditions

	 	5.2.1	 	Reserved
	 
	 	5.2.2	 	Program Payments

	 	 	Payments due to Contractor with respect to Launch Risk Management
Insurance and Launch Services shall be made as provided in Article 5.4
below.

	5.3	 	Refunds or Late Payment

In the event of any refund, excluding insurance refunds, or late
payment–made pursuant to the terms of this Contract, such refund or late
payment shall include, unless otherwise provided, in addition, interest
thereon at the annual rate of ***** compounded daily over the applicable
period, except that, no interest will accrue for invalid amounts on
invoices or disputed amounts on any such invoices during any period of
bona fide disputes.
	 
	5.4	 	Invoices

At the Closing, Contractor shall submit invoices to Purchaser for payments
that Contractor has made prior to the Closing, less any amount that the
Purchaser has made prior to Closing, in connection with the Launch Risk
Management Insurance and Launch Services, and Purchaser shall pay such
invoices without offset within thirty (30) days of receipt. After the
Closing, Purchaser shall pay, in accordance with Attachment A hereto, all
amounts due in connection with such Launch Risk Management Insurance and
Launch Services, provided however that in the event that Purchaser makes
payment directly to the Launch Agency for Launch Services pursuant to a
separate agreement, such payment shall be considered or deemed as payments
made hereunder. Contractor shall have no liability for the cancellation or
postponement or any other penalties that may occur under the Launch
Services Agreement or for the cancellation or failure to attach of the
Launch Risk Management Insurance due to any failure on the part of
Purchaser to pay any amounts in connection with such Launch Risk Management
Insurance and Launch Services when due thereunder. The aggregate total of
all amounts due in connection with such Launch Risk Management Insurance
and Launch Services shall be *****
	 
	 	 	Payments that may otherwise become due to Contractor shall be effected
by Contractor’s submission of an invoice referencing the Contract number
to Purchaser not less than thirty (30) days in advance of the payment
due date. Invoices (original plus one (1) copy) shall be submitted to
Purchaser at the following address:

	 	 	 
	 

	 	Intelsat LLC
	

	 	c/o Intelsat Global Services Corporation
	

	 	Accounts Payable (Mail Stop 14B)
	

	 	3400 International Drive, N.W.
	

	 	Washington D.C. 20008-3098 USA

 

 

Page 7 of 52

	 	 	or to such other address as Purchaser may specify from time to time in
writing to Contractor.

	5.5	 	Payment Bank
	 
	 	 	All payments to Contractor from Purchaser shall be in U.S. currency and
shall be made by electronic funds transfer (EFT) to the following
account:

*****

	 	 	or other such accounts as Contractor may specify from time to
time in writing to Purchaser.

ARTICLE 6 - PURCHASER FURNISHED ITEMS

	6.1	 	Facilities for In-Orbit Testing
	 
	 	 	For the purposes of In-Orbit Testing (IOT) of the Satellite, Purchaser
shall make available to Contractor reasonable use of designated satellite
control facilities, equipment and support personnel and provide
reasonable access to the communications uplink facility as described in
Exhibit A. Such facilities, equipment, and support personnel are to be
suitable for the IOT and available for Contractor’s use seventy-five (75)
days prior to Launch, and continuing through completion of IOT. Purchaser
and Contractor will conduct an interface meeting approximately ninety
days (90) days prior to Launch to confirm the availability and adequacy
of facilities and support.
	 
	6.2	 	Satellite Reports

Upon a written request from Contractor, Purchaser shall provide to
Contractor within thirty (30) days, no more frequently than semi-annually
during the Service Life of the Satellite, an informal letter report that
describes the general health and operating status of the Satellite and
specifically identifies any defined Satellite Anomalies. For the purpose
of this Article 6, a Satellite Anomaly means any in-orbit occurrence that
has a material impact on the life, health or performance of the Satellite
that was known by Purchaser and was not anticipated in the Satellite
Orbital Operation Handbook delivered to Purchaser pursuant to Exhibit A.
Any such letter report will not cause a waiver of any of Purchaser’s
rights and shall not be warranted to be complete although Purchaser shall
use reasonable efforts to make such report complete.

	 	6.2.1	 	Satellite Anomalies

At Purchaser’s request, Contractor shall investigate any Satellite
Anomaly after completion of IOT and in cooperation with Purchaser
use its best efforts to correct such Satellite Anomaly, provided,
however, Contractor shall have no liability arising from such
assistance, except in the event of Contractor’s willful misconduct
(in which case Contractor’s liability shall be subject to the
limitation set forth in Article 41.1). Purchaser shall provide
and/or give access to any data Contractor may require for
investigation and/or

 

 

Page 8 of 52

	 	 	 	correction of any Satellite Anomaly. Further, Purchaser shall grant
reasonable access to ground stations and the Satellite as
Contractor might require for investigation and/or correction of any
Satellite Anomaly.

	6.3	 	FCC Authorization
	 
	 	 	Purchaser shall be responsible, at its cost and expense, for preparing,
coordinating and filing all applications, registrations and reports with
the Federal Communications Commission (FCC) (or successor agency) to
obtain the authority to construct and Launch the Satellite; provided,
however, that Contractor shall render technical assistance and provide
necessary technical information and documentation at no additional
charge for filing to Purchaser, as may be reasonably requested, in
connection with such filings.
	 
	6.4	 	Radio Frequency Coordination
	 
	 	 	Purchaser is responsible for radio frequencies coordination, or the
preparation of filings for International Telecommunications
Union/International Frequency Registration Board (ITU/IFRB) registration
or any other regulatory requirements; provided, however, Contractor
shall render assistance and provide necessary technical information and
documentation at no additional charge to Purchaser and its designees as
may be reasonably requested in connection with their filings with such
agencies.

ARTICLE 7 - LAUNCH SERVICES

	7.1	 	Contractor shall provide for the Launch of the Satellite pursuant to the
Launch Services Agreement (hereinafter referred to as “LSA”) between
Contractor and Sea Launch Limited Partnership, in accordance with the
terms and conditions contained therein. Purchaser acknowledges and agrees
that the Launch Services, once provided by Sea Launch pursuant to the LSA,
completely discharge all of Contractor’s obligations hereunder with
respect to the provision of Launch Services, including all Contractor
obligations for the establishment of a new Launch date for the Satellite
after the Closing Date as set forth herein (with any changes thereto
governed by and subject to the terms and conditions of such LSA).
	 
	7.2	 	In addition to Contractor’s obligations of obtaining access for
Purchaser’s Representatives in certain Launch Services activities pursuant
to Article 8.2, and subject at all times to Article 76 hereof, Contractor
shall make reasonable efforts to obtain the full access of Purchaser’s
Representatives to all LSA program activities, and shall provide Purchaser
with copies of all material technical and contractual correspondence with
the Launch Agency. All Purchaser access to Launch Services related
activities is to be on an observation only basis, Purchaser’s
Representatives shall have no authority to give direction to or otherwise
interfere with the Launch Agency and the Purchaser’s Representatives shall
at all time be accompanied by a Contractor Representative(s).
	 
	*****	 	 

 

 

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*****

	 
	7.4	 	In the event of any termination of the LSA which results in any refund or
repayment from the Launch Agency, Contractor shall direct the Launch
Agency to make all refund or repayments directly to Purchaser up to all
amounts paid directly by Purchaser to the Launch Agency before making the
balance of any refund or repayments to Contractor. No later than fifteen
(15) days after receiving any refund/repayment amounts from the Launch
Agency, Purchaser shall pay such amounts to Contractor pursuant to Article
5.5 hereof, provided that Purchaser may offset against such payment any
amount then owed by Contractor to Purchaser under the Contract that is not
the subject of a dispute hereunder.
	 
	7.5	 	At any time, by written notice delivered to Contractor, Intelsat has the
right to require Contractor to assign all of Contractor’s rights,
interests and obligations in and under the LSA as it applies to the
Intelsat Americas 8 mission and thereafter, Contractor shall be released
from and have no further obligation hereunder to provide or procure Launch
Services, and this Contract shall be amended to delete all such Contractor
obligations, including deletion of this Article 7 and reduction of the
price by the amount of LSA payments remaining to be paid at the time of
assignment. In the event of such an assignment, Contractor will continue
to provide Launch Support Services for the Intelsat Americas 8 Launch,
including providing support to necessary interface activities with the
Launch Agency as required to accomplish the Launch of the Intelsat
Americas 8 Satellite.

ARTICLE 8 - ACCESS TO WORK
IN PROGRESS

 

 

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	8.1	 	Work in Progress at Contractor’s Plant

For Purchaser’s purpose of observing the quality and progress of
Contractor’ s performance of work, a limited number of Purchaser’s
personnel and consultants shall be allowed to observe work being
performed at the box level and above for the Satellite and other
Deliverable Items at Contractor’s plant, subject to applicable export
control laws and export license provisions and Contractor security
procedures. Such observation shall occur during normal working hours
and during other hours that are reasonable under the circumstances. For
purposes of scheduling meetings and program reviews between Purchaser’s
and Contractor’s personnel, Purchaser shall coordinate with Contractor
reasonably in advance of such meetings or program reviews. Contractor
shall provide Purchaser’s “On-Site” Representatives reasonable notice of
meetings and/or status changes of Non-Conformance Report’s, Material
Review Board’s, Failure Reviews, and Quality Assurance Reviews, if any,
and Configuration Changes to the extent possible, on the Program and
Programs in progress which are the Qualifying Programs for Intelsat
Americas 8 hardware.
	 
	8.2	 	Work in Progress at Subcontractors’ Plants

To the extent permitted by Contractor’s major subcontractors (for the
purpose of this Article 8, subcontractors supplying services or goods
valued in excess of five-million dollars ($5,000,000) in connection with any
Satellite), Contractor shall allow Purchaser’s personnel and consultants
access to work being performed pursuant to this Contract in
subcontractors’ plants for the purpose of observing the quality and
progress of subcontractor’s performance of work, subject to the
right of
Contractor to accompany Purchaser on any visit to a subcontractor’s plant
as well as applicable export control laws and export license provisions
and subcontractor security procedures. Contractor will use its best efforts
in subcontracting to obtain permission for such access to subcontractors’
facilities as described in this Article 8.2. Contractor shall use
reasonable efforts to allow the attendance of Purchaser’s Representatives,
as informed observers, in the launch services activities of the Intelsat
Americas 8 Satellite Program including the following:

	 	 	 	 	 
	 

	 	•
	 	Mission Planning
	 	 	 	 	 
	

	 	•
	 	Interface Definition
	 	 	 	 	 
	

	 	•
	 	Pre-Launch Testing
	 	 	 	 	 
	

	 	•
	 	Satellite / Launch Vehicle Integration
	 	 	 	 	 
	

	 	•
	 	Pre Launch and Launch Activities

	8.3	 	On-Site Facilities for Purchaser’s Personnel
	 
	 	 	For the purpose of monitoring the progress of this Contract, Contractor
shall provide office facilities for ***** Purchaser personnel (or its
duly appointed consultants subject to prior approval of Contractor) during
the course of this Contract. The office facilities to be provided shall
include a reasonable amount of office space, office furniture, office
supplies, desk-top computers (with e-mail and internet access
capabilities) as required, regular parking facilities, local, long
distance and international telephone service, access to copy machines and
access to facsimile machines, such parking facilities, copiers and
facsimile machines to be in reasonable proximity to the office.
	 
	8.4	 	Reserved

 

 

Page 11 of 52

	8.5	 	Interference with Operations
	 	 	 
	 	 	Purchaser shall exercise its rights
        to access work in progress under this Article 8 so that it does
        not unreasonably interfere with Contractor’s normal business operations
        or Contractor’s performance
    of its obligations under this Contract.

      

ARTICLE 9 - PRE-SHIPMENT INSPECTION

	9.1	 	Time, Place and Notice of Inspection
	 
	 	 	With respect to the Satellite, the pre-shipment inspection shall take
place at a date and time mutually agreeable to the Parties. With
respect to all other Deliverable Items, Contractor shall notify
Purchaser in writing at least thirty (30) days prior to the date when
the Deliverable Item covered thereby will become ready for inspection,
and the schedule for inspection times and locations shall be determined
by mutual agreement of the Parties to ascertain whether the Deliverable
Item conforms to the applicable Exhibit.
	 
	9.2	 	Pre-Shipment Review
	 
	 	 	Pre-shipment review results shall be reviewed in accordance with Exhibit
A, Paragraph 2.2.3. The purpose is to review the test data, which
resulted during acceptance testing and analyses, to determine whether the
completed Deliverable Item(s) conform to the standards and requirements of
 Exhibit B and is ready for shipment to the pre-launch preparation
facilities provided by the Launch Agency.
	 
	9.3	 	Pending Waivers

Waivers for deviations from Exhibit B for Deliverable Items shall be
submitted to Purchaser for its review and approval promptly as and when
they occur. Any waivers still pending at the time of pre-shipment review
shall be presented to Purchaser at the commencement of the pre-shipment
review. If a waiver is not approved, Contractor shall remedy the
deviation promptly, but Purchaser shall not unreasonably withhold its
consent to any waiver request. The Parties shall negotiate mutually
agreeable consideration for those waivers prior to any approval of a
waiver from Purchaser. Shipment of the Satellite is contingent upon all
waivers being resolved by the Parties. Exhibit B, Performance
Specification, as modified by any waivers approved by Purchaser, shall
constitute the performance baseline of the Satellite for purposes of
this Contract. Purchaser agrees to accept and not re-open waivers
approved by Loral Skynet prior to Closing and which were disclosed to
Purchaser prior to Closing.
	 
	9.4	 	Reserved
	 
	9.5	 	Review Results

Upon completion of pre-shipment review, Purchaser shall promptly notify
Contractor of the results thereof in writing. In the event Contractor
receives a notice of rejection from Purchaser for any Deliverable Items,
Contractor shall, if it is directed to do so by Purchaser, correct or
repair, at Contractor’s sole cost, the Deliverable Item and submit it
for re-review by Purchaser after having corrected and/or repaired all
defects.
	 
	9.6	 	Review Equipment and Facilities

 

 

Page 12 of 52

	 	 	Contractor shall assist Purchaser or its agents and make available to
Purchaser or its agents such equipment and facilities as Purchaser may
require to conduct any pre-shipment review. All expenses in connection
with such assistance, as well as transportation to and from the
inspection site, any and all losses resulting from any deterioration,
wear and tear, and damage in the process of any pre-shipment review, and
any other expenses and losses incurred due to implementation of such
pre-shipment review shall be borne by Contractor, except to the extent
such expenses and losses are incurred due solely to any willful or
negligent act by Purchaser. All expenses that may be required for
Purchaser to dispatch its personnel for pre-shipment review, including
travel and living expenses, shall be borne by Purchaser.
	 
	9.7	 	Warranty Obligations

In no event shall Contractor be released from any of its warranty
obligations as set forth in Article 15 hereof as a result of any
Deliverable Item having successfully passed the pre-shipment inspection
set forth in this Article 9.
	 
	9.8	 	Repaired or Replaced Items
	 
	 	 	The provisions of this Article 9 shall apply to repaired or replaced
Deliverable Items.

ARTICLE 10 - SATELLITE ACCEPTANCE

	10.1	 	Satellite Launch and Acceptance
	 
	 	 	Following the successful completion, and approval by the Purchaser, of
the Satellite Launch Readiness Review in accordance with Exhibit A,
Contractor shall proceed with the Launch of the Satellite. Thirty (30)
days prior to Launch of the Satellite, Contractor shall notify Purchaser
of the IOT schedule. Purchaser may observe the IOT at Contractor’s site.
Except as provided in Article 14 hereunder, the Satellite shall be deemed
irrevocably accepted by Purchaser upon Intentional Ignition of the Launch
Vehicle for the Launch thereof (“Acceptance” for the Satellite).
	 
	10.2	 	IOT Results
	 
	 	 	When IOT has been completed, Contractor shall submit to Purchaser the IOT
results.

ARTICLE 11 - ACCEPTANCE INSPECTION FOR DELIVERABLE ITEMS OTHER THAN SATELLITES

	11.1	 	Inspection
	 
	 	 	With respect to all Deliverable Items other than the Satellite (to the
extent not previously Delivered and Accepted as of Closing), Purchaser,
within thirty (30) days after delivery of a Deliverable Item to
Purchaser’s facility but no earlier than thirty (30) days after Delivery
of the Satellite, shall perform acceptance inspection in accordance with
the procedures described in Exhibit A, Paragraph 2.2.7. The purpose of
the acceptance inspection is to determine whether the completed and
delivered Deliverable Item(s) meets the requirements of Exhibit B.
	 
	11.2	 	Pending Waivers
	 
	 	 	Waivers for deviation of Deliverable Items (other than the Satellite)
from Exhibit B shall be submitted to Purchaser promptly as and when they
occur. Any waivers still pending at the time of

 

 

Page 13 of 52

	 	 	acceptance inspection shall be presented to Purchaser at commencement of
the acceptance inspection. Purchaser shall not be required to approve any
waivers. If a waiver is not approved, Contractor shall remedy the
deviation promptly, but Purchaser shall not unreasonably withhold its
consent to any waiver request. The Parties shall negotiate mutually
agreeable consideration for those waivers prior to any approval of a
waiver from Purchaser. Acceptance of any Deliverable Items (other than
the Satellite) is contingent upon all waivers being approved by
Purchaser. Purchaser agrees to accept and not re-open waivers approved by
Loral Skynet prior to Closing and which were disclosed to Purchaser prior
to Closing.
	 
	11.3	 	Reserved
	 
	11.4	 	Acceptance Inspection Results

Upon completion of acceptance inspection, Purchaser shall within a
reasonable time period notify Contractor of the results thereof in
writing. In the event Contractor receives a notice of rejection from
Purchaser for any Deliverable Items (other than the Satellite),
Contractor shall, if it is directed to do so by Purchaser in writing,
correct or repair at Contractor’s sole cost the Deliverable item and
submit it for reinspection by Purchaser after having corrected and/or
repaired all defects.
	 
	11.5	 	Acceptance Inspection; Equipment and Facilities

Contractor shall assist Purchaser and make available such equipment and
facilities as Purchaser may require to conduct any acceptance
inspections. All expenses in connection with such assistance, as well as
any and all losses resulting from any deterioration, wear and tear, and
damage in the process of any acceptance inspection, and any other
expenses and losses incurred due to implementation of such acceptance
inspections shall be borne by Contractor, except to the extent such
expenses and losses are incurred due solely to any willful or negligent
act by Purchaser. All expenses that may be required for Purchaser to
dispatch its personnel for acceptance inspections, including travel and
living expenses, shall be borne by Purchaser.
	 
	11.6	 	Warranty Obligations

In no event shall Contractor be released from any of its warranty
obligations as set forth in Article 15 hereof as a result of any
Deliverable Item having successfully passed the acceptance inspection set
forth in this Article 11.

ARTICLE 12 - SHIPMENT, DELIVERY, TITLE RISK OF LOSS AND CIP

	12.1	 	Satellites

Risk of loss and title to the Satellite shall pass from Contractor to
Purchaser upon Delivery. Delivery shall occur upon Acceptance pursuant to
Article 10 hereof, and Contractor shall provide a Certificate of
Spacecraft Final Acceptance and Delivery in form and substance as set
forth in Attachment B hereto, including a warranty of good and marketable
title to the Satellite, free and clear of any third party claims,
security interests, liens and encumbrances. After Intentional Ignition of
the Launch Vehicle, for the Launch of the Satellite, Purchaser’s sole
remedies related to loss, damage or degraded performance of the Satellite
shall be as set forth in Articles 6.2.1, 14,15 and 75 hereof and as may
be paid under the Launch Risk Management Insurance policy (subject

 

 

Page 14 of 52

	 	 	to Contractor’s obligation to provide reasonable support to Purchaser in
connection with filing claims thereunder).
	 
	12.2	 	Deliverable Items Other than Satellites

Risk of loss and title to all Deliverable Items (not including Technical
Data and Documentation for which Purchaser obtains data rights pursuant
to Article 36 hereof) other than the Satellite (except for Deliverable
Items Delivered to Loral Skynet prior to Closing) shall pass from
Contractor to Purchaser upon Acceptance as confirmed in writing by
Purchaser pursuant to Article 11.4. Delivery of all Deliverable Items
other than the Satellite shall occur upon Acceptance and Contractor
shall provide to Purchaser a Certificate (with appropriate
modifications) as set forth in Attachment B hereto, including a warranty
of good and marketable title to such Deliverable Item(s), free and clear
of any third party claims, security interests, liens and encumbrances.
	 
	12.3	 	Carriage and Insurance Paid

 The Carriage and Insurance Paid (“CIP”) for all deliverable hardware
items, excluding the Satellite, specified in Article 3.1 hereof shall be
at the location where title passes. Title shall pass FOB Purchaser’s
facility. All Deliverable Data and documentation specified in Article
3.1 hereof and in Annex 1 of Exhibit A shall be delivered CIP to
Purchaser’s designated delivery sites.
	 
	12.4	 	Transfer to Third Parties

Purchaser may direct Contractor to transfer title of any Deliverable Item
directly to a third party designated by Purchaser (if applicable, such
transfer shall be subject to U.S. export laws); provided, however, that
Purchaser shall arrange for the third party designee to execute a
confidentiality agreement directly with Contractor complying with the
conditions of Article 35 hereof. In no event shall such a designation
release Purchaser from its obligations hereunder (unless otherwise
provided in Article 41.2 hereof).

ARTICLE 13 - RESERVED

ARTICLE 14 - TERMINATED IGNITION

	14.1	 	In the event that the Launch process is terminated on or after
Intentional Ignition and before Launch (“Terminated Ignition”), the Parties shall proceed as follows:

	 	(i)	 	If the Satellite is not a Total Loss or Constructive Total
Loss (as defined in the Launch Risk Management Insurance policy),
then, upon the Launch Agency’s official declaration that the Launch
pad is safe, Contractor shall coordinate with the Launch Agency to
secure and protect the Satellite and prepare for the next scheduled
Launch date by: (1) supporting the Launch Agency in demating the
Satellite from the Launch Vehicle and conducting defueling
operations, (2) performing initial inspection and testing, (3)
recommending to Purchaser a plan for returning the Satellite to a
flightworthy condition, if appropriate, and (4) providing Launch
Support Services for the next scheduled Launch date. Contractor
shall also work with the Launch Agency and Purchaser to establish a
new Launch date.

 

 

Page 15 of 52

	 	(ii)	 	Purchaser shall provide direction to Contractor to
undertake any action regarding the return of the Satellite to a
flightworthy condition, and shall be responsible for any and all
costs incurred by Contractor associated therewith, including the
transportation and storage of the Satellite, repair or replacement
of Satellite component(s) as required due to the Terminated
Ignition, and all such other associated Contractor efforts to
return the Satellite to a flightworthy condition. In addition to
the foregoing, Purchaser shall be responsible for any other loss,
damage or costs (including the costs associated with the Contractor
performing the tasks identified in paragraph (i) above) for which
the Launch Risk Management Insurance policy (or any other
applicable insurance policy of Purchaser) provides coverage.
Contractor shall be responsible for its costs of performing the
tasks identified in paragraph (i) above other than those for which
Purchaser is responsible as described in the immediately preceding
sentences.
	 
	 	(iii)	 	In the event of a Terminated Ignition, title to and risk of
loss for the Satellite shall revert to Contractor upon
re-attachment of risk for the Satellite under Contractor’s
pre-launch insurance policy, and Acceptance upon Intentional
Ignition shall be deemed revoked upon such re-attachment of risk.
If the Satellite is returned to Contractor’s satellite
manufacturing facilities in Palo Alto, CA, and while the Satellite
is at such Contractor facilities, Contractor shall include the
Satellite under its standard insurance policies (the cost of which,
including the re-attachment of risk under the Contractor’s original
pre-launch insurance policy, shall be borne by the Purchaser and
which shall be billed on a pass-thru basis by Contractor without
any additional Contractor mark-up) applicable from the subsequent
shipment of the Satellite from Contractor’s facilities to the next
Intentional Ignition.
	 
	 	(iv)	 	If, from re-attachment of risk up to the next Intentional
Ignition, the Satellite is damaged or otherwise requires corrective
actions due to causes unrelated to the Terminated Ignition,
Contractor shall perform the necessary corrective actions.
Purchaser shall pay all costs incurred by Contractor in performing
and validating such unrelated Terminated Ignition corrective
actions that (i) are not caused by the fault or negligence of the
Contractor; and (ii) are not reimbursed through Contractor’s
insurance policies.
	 
	 	(v)	 	Purchaser shall not be entitled to terminate the Contract for
default, or charge Contractor other costs or penalties as a result
of any delays or other default arising from a Terminated Ignition.
Except as Purchaser may direct under the “Changes” clause, in no
event shall Contractor be responsible for providing more than one
(1) Launch Service for the Satellite as provided in the LSA (i.e.
Contractor shall have no duty to provide a reflight or replacement
launch), or for any increase in the cost/price of the Launch
Services Agreement as a result of the Terminated Ignition or for
any additional premiums under the Launch Risk Management Insurance
policy (or any successor policy) that may be required after
Intentional Ignition for the initial scheduled Launch.

ARTICLE 15 -WARRANTY

 

 

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	15.1	 	Terms and Period of Warranty

Contractor warrants that the Satellite Delivered by Contractor under this
Contract shall be free from any defects in material or workmanship and
shall perform in accordance with Exhibit B (as the Performance
Specification may have been modified pursuant to Article 9.3 hereof), in
every respect, up to Launch, at Launch and after Launch for a period of
one (1) year after Launch. Purchaser’s sole remedies for breach of said
warranties shall be as set forth in this Article 15 and, as to any
Satellite prior to Intentional Ignition of the Launch Vehicle, Article 23
if applicable. Contractor warrants that the Deliverable Items other than
the Satellite shall perform in accordance with the Performance
Specification and other requirements of this Contract, and will be free
from defects in materials and workmanship for a period of two (2) years
after the date of Acceptance. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN
THIS CONTRACT, NO OTHER WARRANTY, EXPRESS OR IMPLIED, INCLUDING A WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, SHALL APPLY TO THE
SATELLITE OR OTHER DELIVERABLE ITEM(S) PROVIDED HEREUNDER. CONTRACTOR
MAKES NO WARRANTY WITH RESPECT TO THE LAUNCH VEHICLE.
	 
	15.2	 	Repair or Replacement.

	 	15.2.1	 	Deliverable Items
	 
	 	 	 	With respect to Deliverable Items (including the Satellite, but
subject to Article 14, only prior to Intentional Ignition of the
Launch Vehicle for the Launch thereof), during the warranty period
specified in 15.1 above, any defect discovered by Purchaser or
Contractor shall be remedied by Contractor at Contractor’s expense
by repair or replacement of the defective component at Contractor’s
election. For the Satellite after Intentional Ignition (of the
Launch Vehicle, subject to Article 14, Purchaser’s sole warranty
remedy shall be as set forth in Article 6.2.1. Contractor shall
determine if repair or replacement is required to be performed at
Contractor’s plant. Purchaser shall ship to Contractor’s designated
facility any defective Deliverable Items (other than the Satellite)
requiring repair and replacement. Contractor shall be responsible
for the cost of shipment (including any taxes, duties) for defective
Deliverable Items (other than the Satellite) shipped to Contractor,
and the cost of shipment for return of repaired or replacement
equipment shipped to Purchaser. Title and risk of loss for
defective Deliverable Items (other than the Satellite) shall
transfer to Contractor upon delivery of such Deliverable Items to
the shipping carrier by Purchaser, and title and risk of loss shall
transfer back to Purchaser for returned repaired or replacement
Deliverable Items upon receipt of such Deliverable Items by
Purchaser. The warranty period for repaired or replaced Deliverable
Items other than the Satellite shall be 180 days or the balance of
the original warranty, whichever is greater, from the date that
Purchaser accepts the repaired or replaced Deliverable Item(s).
Contractor shall not repair or replace any Deliverable Item(s)
without Purchaser’s written approval.
	 
	 	15.2.2	 	Warranty Exclusions
	 
	 	 	 	With respect to Deliverable Items, if the defect is not covered by
the warranty, Contractor shall provide Purchaser with a cost
estimate prior to beginning work and, Purchaser shall pay Contractor
the cost of repairs or replacement not to exceed Contractor’s then
current or most recent selling price to its best customers, and the
transportation charges. Such repair

 

 

Page 17 of 52

	 	 	 	cost shall be invoiced to Purchaser pursuant to the provisions of
Article 5.2 hereof. The warranty under this Article 15 shall not
apply if adjustment, repair, or parts replacement is required
because of Purchaser’s sole negligence, misuse, failure to
maintain the environmental control prescribed in operations and
maintenance manuals, repair or alterations by other than
Contractor, or causes other than ordinary use. Further, the
warranty is contingent upon Contractor being given access, if
required, to delivered equipment at Purchaser’s facility in order
to effect any repair and/or replacement.

ARTICLE 16 - EFFECTIVITY

	 	 	This Amended and Restated Contract shall become effective as of the date
of the Closing.

ARTICLE 17 - FORCE MAJEURE

	17.1	 	Definition and Consequences
	 
	 	 	Contractor shall not be responsible for late delivery, delay of the final
completion date or non-performance of its contractual obligations due to
Force Majeure, except that there shall be no such relief to the extent
insurance is provided hereunder to the extent of such insurance. Force
Majeure shall include any event beyond the reasonable control of
Contractor and its subcontractors and shall include, but not be limited
to, (1) acts of god; (2) acts of a public enemy; (3) acts of the
Government in its sovereign capacity; (4) war and warlike events; (5)
catastrophic weather conditions such as hurricanes, tornadoes, or
typhoons; (6) fire, earthquakes, floods, epidemics, quarantine
restrictions, other industrial disputes, sabotage, riot, embargoes; and
(7) other unforeseen and extraordinary events, which in every case,
(causes (1) through (7)), are beyond the reasonable control and without
fault or negligence of Contractor or its suppliers and subcontractors. For
the purpose of this Article, delays in Delivery of the Satellite due to
Launch delays caused solely or substantially by the Launch Agency shall be
deemed Force Majeure events.
	 
	 	 	If the Force Majeure event cannot be cured within a reasonable time, *****
Purchaser shall have
the option of terminating the Contract and receiving a refund of all
payments plus interest compounded daily up to the point of payment
Notwithstanding the foregoing, Purchaser may not terminate the Contract,
if within 30 calendar days of the Force Majeure event, Contractor
presents a detailed written plan to Purchaser that clearly demonstrates
it can recover from the event and deliver the Satellite on the
contracted delivery date or within a time frame Purchaser deems
reasonably acceptable following such date. If Purchaser has foregone the
immediate right to terminate, Purchaser may exercise such right if it
reasonably appears that Contractor will not be able to deliver the
Satellite as set forth in such plan, or Purchaser may elect not to
terminate in which event Contractor shall be liable for liquidated
damages, if any, as set forth in Article 22 hereof. Accrual of such
liquidated damages shall commence on the date scheduled for delivery of
the Satellite set forth in such plan.
	 
	 	 	Upon termination, the rights, obligations and liabilities of all Parties
with respect to terminated performance hereunder, shall thereupon
terminate, except as specified in Article 41.12 (Survival).
	 
	17.2	 	Notification

 

 

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	 	 	If the performance of this Contract is prevented, restricted or
interfered with by reason of Force Majeure, Contractor shall give prompt
written notice to Purchaser of the onset, and again at the termination of
a Force Majeure event.

ARTICLE 18 - PURCHASER DELAY OF WORK

If the performance of all or any part of the work required by this Contract is
delayed or interrupted by Purchaser’s failure to perform its contractual
obligations within the time specified in this Contract or within a reasonable
time if no time is specified, or an act by Purchaser in the administration of
this Contract that unreasonably interferes with Contractor’s performance of
its obligations under this Contract, and such delay, interruption or failure
is the sole cause of Contractor’s inability to meet the applicable scheduled
delivery date set forth in Article 3 hereof, Contractor shall be entitled to
an extension of the delivery schedule, and the commencement of Contractor’s
liability for damages for delay as set forth in Article 22 hereof will be
delayed day for day, and Purchaser shall in addition be subject to an
additional charge per whole month of delay equal to the Contractor’s direct,
actual and reasonable costs for labor, overhead and G&A and to the extent
Contractor pays its subcontractors for such delay subcontractors direct,
actual and, reasonable costs for labor, such costs for labor, documented to
Purchaser’s reasonable satisfaction based on commercial terms.

ARTICLE 19 - PATENT INDEMNITY

	19.1	 	Indemnification
	 
	 	 	Contractor, at its own expense, shall defend, indemnify, and hold
harmless Purchaser, and its respective officers and directors, or any of
them, from and against any third party claim or suit based on an
allegation that the manufacture of any Deliverable Item or the normal
intended use or the lease or sale of, any Deliverable Item infringes
third party letters patent, copyright, mask work, trademark, service
mark, trade name or other intellectual property rights (collectively,
“Intellectual Property Claim(s)”) and shall pay any royalties and other
liabilities adjudicated to be owing to the claimant (or, in Contractor’s
discretion, provided in settlement of the matter) as well as all other of
Purchaser’s direct losses, damages, liabilities or expenses arising from
any Intellectual Property Claim, including costs incurred in defending
(including court costs and reasonable attorneys fees) such Intellectual
Property Claim; provided that Purchaser promptly notifies Contractor in
writing of any such Intellectual Property Claim and gives Contractor
authority and such assistance and information requested by Contractor as
is available to Purchaser for the defense of such Intellectual Property
Claim.
	 
	19.2	 	Infringing Equipment

If the manufacture of any Deliverable Item or the normal intended use or
the lease or sale of any Deliverable Item under this Contract is enjoined
as a result of an Intellectual Property Claim or is otherwise prohibited,
Contractor may (i) resolve the matter so that the injunction or
prohibition no longer pertains, (ii) procure for Purchaser the right to
use the infringing item or (iii) modify the infringing item so that it
becomes non-infringing while remaining in compliance with Exhibit B, as
amended per Article 9.3, in all respects. If Contractor is unable to
accomplish (i), (ii) or (iii) as stated above, Purchaser shall have right
to terminate this Contract, return the Deliverable Item to Contractor (in
space, with respect to the in-orbit Satellite), and receive a refund of
the price of such

 

 

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	 	 	Deliverable Item (less a reasonable allowance for depreciation) without
loss of any further relief to which it may be entitled under the first
paragraph of this Article 19.

	19.3	 	Combinations and Modifications
	 
	 	 	Contractor shall have no liability under this Article 19 for any
Intellectual Property Claim arising solely from (i) use of Deliverable
Items in combination with other items, unless Contractor sold them as a
combination or (ii) modifications of Deliverable Items after Delivery,
unless expressly permitted by the specifications or Contractor made or
specifically recommended the modification. Unless otherwise stated
herein, the remedies set forth herein shall be Purchaser’s sole and
exclusive remedies for or related to an Intellectual Property Claim.

ARTICLE 20 - INDEMNITY

	20.1	 	Contractor Indemnity
	 
	 	 	All persons furnished by Contractor shall be considered solely Contractor
employees or agents, and Contractor shall be responsible for payment of
all unemployment, social security and other payroll taxes, including
contributions when required by law. Except to the extent due to
Purchaser’s negligent acts or omissions, Contractor agrees to indemnify and
save harmless Purchaser, its affiliates, and its customers and their
officers, directors, employees, successors, and assigns (all hereinafter
referred to in this clause as “Purchaser”) from and against any losses,
damages, claims, demands, suits, liabilities, and expenses (including
reasonable attorneys’ fees) that arise out of or result from: (1) injuries
or death to persons or damage to property, (excluding the Satellite),
including theft, in any way arising out of or occasioned by, caused or
alleged to have been caused by or on account of the performance of this
Contract by Contractor or persons furnished by Contractor,
(2) assertions under Workers’ Compensation or similar acts made by
persons furnished by Contractor or by any subcontractor, or by reason of
any injuries to such persons for which Purchaser would be responsible
under Workers’ Compensation or similar acts if the persons were employed
by Purchaser, (3) any failure on the part of Contractor to satisfy all claims for
labor, equipment, materials, and other similar obligations relating
directly or indirectly to the performance of this Contract; or (4) any
failure by Contractor to perform Contractor obligations under this
Article or Article 39.2 or 39.3. Contractor agrees to defend Purchaser,
at Purchaser’s request, against any such claim, demand, or suit.
Purchaser agrees to notify Contractor within a reasonable time of any
written claims or demands against Purchaser for which Contractor is
responsible under this Article.
	 
	20.2	 	Purchaser Indemnity
	 
	 	 	All persons furnished by Purchaser shall be considered solely Purchaser
employees or agents, and Purchaser shall be responsible for payment of
all unemployment, social security and other payroll taxes, including
contributions when required by law. Except to the extent due to
Contractor’s negligent acts or omissions, Purchaser agrees to indemnify
and save harmless Contractor, its affiliates, and its customers and their
officers, directors, employees, successors, and assigns (all hereinafter
referred to in this clause as “Contractor”) from and against any losses,
damages, claims, demands, suits, liabilities, and expenses (including
reasonable attorneys’ fees) that arise out of or result from: (1)
injuries or death to persons or damage to property, including theft, in
any way arising out of or occasioned by, caused or alleged to have been
caused by or on account of the performance of this Contract by Purchaser
or persons furnished by Purchaser, (2) assertions under Workers’

 

 

Page 20 of 52

	 	 	Compensation or similar acts made by persons furnished by Purchaser or by
any subcontractor, or by reason of any injuries to such persons for which
Contractor would be responsible under Workers’ Compensation or similar
acts if the persons were employed by Contractor, (3) any failure on the
part of Purchaser to satisfy all claims for labor, equipment, materials,
and other similar obligations relating directly or indirectly to the
performance of this Contract; or (4) any failure by Purchaser to perform
Purchaser obligations under this Article. Purchaser agrees to defend
Contractor, at Contractor’s request, against any such claim, demand, or
suit. Contractor agrees to notify Purchaser within a reasonable time of
any written claims or demands against Contractor for which Purchaser is
responsible under this Article.

ARTICLE 21 - TERMINATION FOR CONVENIENCE

	21.1	 	Purchaser’s Right to Terminate
	 
	 	 	The performance of work under this Contract may be terminated by
Purchaser, in whole or in part, whenever Purchaser shall determine that
termination is in its best interests. The termination shall be
effective upon delivery to the Contractor of a notice of termination
specifying the extent to which the performance of work under this
Contract is terminated, and the date upon which the termination is
effective. Purchaser shall have no right to terminate this Contract with
respect to a Satellite after Launch.
	 
	21.2	 	Required Contractor Actions

Upon receipt of a notice of termination, and except as otherwise directed
by Purchaser, the Contractor shall: (1) stop work under this Contract on
the date and to the extent specified in the notice of termination; (2)
take such action as may be necessary for the protection and preservation
of Purchaser’s property; (3) take no further action which will increase
the Contractor’s costs or the price payable by Purchaser under the
terminated portion of this Contract; and (4) complete performance of any
part of the work that has not been terminated by the notice of
termination.
	 
	21.3	 	Termination Claim

Within ninety (90) calendar days after receipt of a notice of
termination, unless otherwise mutually agreed upon, the Contractor
shall submit to Purchaser the Contractor’s termination claim. If the
Contractor fails to submit a termination claim within the time allowed,
Purchaser may determine the amount due, if any, to the Contractor by
reason of the termination and Purchaser’s determination shall be final.
	 
	21.4	 	Amounts Due

The amount due the Contractor by reasons of the termination under this
Article shall be determined as follows:

	 	21.4.1	 	Contractor shall retain all amounts paid and received hereunder
prior to the effective date of termination; plus
	 
	 	21.4.2.	 	Any amounts due and unpaid in connection with the Launch Risk
Management Insurance and Launch Services, the payment for which
Purchaser is liable pursuant to Article 5.4

 

 

Page 21 of 52

	 	 	 	hereof and any additional termination fees charged by the Launch
Agency for termination of the Launch Services Agreement.

	21.5	 	Reductions
	 
	 	 	In arriving at the amount due the Contractor under this Article, the
following shall be deducted from the Contractor’s claim:

	 	21.5.1	 	Any claim that Purchaser may have against the Contractor in
connection with this Contract.
	 
	 	21.5.2	 	The agreed price for, or the proceeds of the sale or salvage of,
any Deliverable Items or associated materials returned to the Contractor by Purchaser.
	 
	 	21.5.3	 	Amount representing the Contractor’s cost of segregable items
of inventory not desired by Purchaser which are usable in the
Contractor’s other operations.

	21.6	 	Launch Agency Settlements
	 
	 	 	The Contractor agrees to advise Purchaser of all proposed settlements
with the Launch Agency in the event of termination, and the Contractor
further agrees not to enter into any binding settlement until Purchaser
has approved the proposed settlement, or ninety (90) calendar days have
elapsed from the date when such advice was furnished to Purchaser’s
Contractual Representative.
	 
	21.7	 	Audit Rights
	 
	 	 	Upon any such termination, Purchaser shall have the right to examine,
photocopy and audit, at all reasonable times, all books, records,
documents, paper and other evidence as may, under recognized accounting
practices, contain information bearing upon the cost of the work already
completed and in process of completion at the time of the Contractor’s
receipt of the notice of termination.
	 
	21.8.	 	Final Settlement
	 
	 	 	Notwithstanding the preceding provisions of this Article, the amount due
the Contractor accruing from and after the date of Closing, as determined
herein shall not exceed the sum of ***** in payment for Contractor services related to the
provision of Launch Risk Management Insurance and Launch Services, as set
forth in this Contract. Unless expressly reserved, payment to the
Contractor of the amount determined herein shall be in full settlement of
any and all claims of the Contractor under this Contract of every
description, including profit.
	 
	21.9	 	Title Transfer
	 
	 	 	Contractor shall transfer title at Contractor’s or subcontractor’s plant
to Purchaser for all Deliverable Items included in Article 21.1-21.8, and all other
partially completed or incomplete Deliverable Items for which Contractor is entitled to payment
under Articles 21.1-21.8 at the time of the termination settlement. Notwithstanding the above,
 Purchaser may direct Contractor to dispose of the residual property as a result of
a termination under Articles 21.1-21.8 for the

 

 

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	 	 	purpose of best efforts basis, attempt to sell the residual property and
provide a refund to Purchaser or an offset against Contractor’s
termination claim, less any reasonable selling expenses.

ARTICLE 22 - DELIVERY DAMAGES

	22.1	 	Notwithstanding anything to the contrary in Article 23 hereof, for the
Satellite ordered hereunder which is not delivered pursuant to the
Delivery Schedule (DS) specified in Article 3, unless the Satellite is
put into Ground Storage at Purchaser’s request in accordance with
Article 33, and excluding delays due to Terminated Ignition, applicable
Force Majeure events or because of an act or omission solely or
substantially caused by Purchaser, then Contractor shall pay liquidated
damages to Purchaser commencing on the *****
calendar day of delay for the Satellite ***** according to
the following schedules;

	 	 	 	 	 	 	 	 	 
	 	 	No. of 	 	 	 	Per	 	 
	 Period
	 	Days
	 	Daily
	 	Period
	 	Cumulative

	*****

	 	*****	 	*****	 	*****	 	*****

	 	 	Contractor’s liquidated damages for delay are capped at ***** for
the Satellite. Furthermore, after day ***** of the delay (but not prior to
such day *****) for the Satellite, Purchaser has the option of terminating
Contract for default, or continuing with no ability to get further
damages for delay. Notwithstanding the foregoing, Purchaser cannot
terminate the Contract for failure to deliver the Satellite pursuant to
the Delivery schedule specified in Article 3 hereof, or otherwise with
respect to a Satellite, following Intentional Ignition of the Launch
Vehicle for such Satellite. Liquidated damages will be paid to Purchaser
every thirty (30) days.

ARTICLE 23 - DEFAULT

	23.1	 	Failure to Perform by Contractor
	 
	 	 	If Contractor (i) fails to deliver the Deliverable Items or perform the
work under this Contract within the time frames specified herein (or any
extension thereof approved in writing by Purchaser), subject to the
limitation on Purchaser’s right to terminate set forth in Article 22
above, or (ii) fails to prosecute the work hereunder thereby endangering
performance of this Contract, or (iii) fails to perform any of the other
material provisions of this Contract, and in each case does not cure such
failure within thirty (30) days (or such longer period as authorized in
writing by Purchaser) after receipt from Purchaser of written notice of
such failure, Purchaser may terminate this Contract in whole or in part
by written notice of default.
	 
	23.2	 	Termination Liability

In the event of any termination pursuant to Article 23.1 Contractor shall
be liable as follows:

 

 

Page 23 of 52

	a)	 	In the event that Purchaser covers its damages hereunder by
reprocuring Deliverable Items including the Satellite for either in-orbit or ground delivery, from an
alternate supplier, Contractor’s liability shall be limited to Purchaser’s proven damages
equal to cost of cover in an arms length transaction with substantially similar requirements and terms
within a reasonable time frame following such termination and at reasonable then applicable market
prices; or
	 
	b)	 	In the event Purchaser chooses, at its sole option, not to cover its
damages as provided in Article 23.2(a), then Contractor shall refund to Purchaser, as its sole
liability, the Firm Fixed Price, less any amounts not yet paid by Purchaser for the Deliverable Items that are
the subject of the termination.
	 
	 	 	Furthermore, and notwithstanding anything herein to the contrary,
Contractor’s liability set forth in this Article 23 shall be cumulative
with, and not instead of, any other damages, however designated,
expressly provided for elsewhere in this Contract.
	 
	23.3	 	Invalid Default Termination

If, after termination, it is finally determined by arbitration pursuant to
Article 25 hereof that Contractor was not in default, or that the default
was excusable, the rights and obligations of the Parties shall be the
same as if the termination had occurred under Article 21, Termination for
Convenience.

ARTICLE 24  - RESERVED

ARTICLE 25 -ARBITRATION

Any disputes which may arise between the Parties with respect to performance
of obligations or interpretation of this Contract, which cannot be settled by
negotiation between the Parties themselves within a period of ninety (90)
days, shall be submitted for settlement by arbitration to the American
Arbitration Association (“AAA”) in New York, New York, in accordance with the
rules of conciliation and arbitration of the AAA using three arbitrators,
whose decision shall be final and binding on the Parties, and the judgment may
be enforced in any court having jurisdiction . In resolving any dispute, the
arbitrators shall apply the laws of the State of New York, New York without
reference to its conflict of laws rules, with respect to all matters,
including the interpretation of the terms and conditions of this Contract.
Proceedings and documents provided and generated in connection therewith shall
be in the English language.

The cost of arbitration, including fees and expenses of the arbitrators, will
be shared equally by the Parties, unless the arbitral award otherwise
provides. Each Party shall bear the cost of preparing and presenting its own
case.

ARTICLE 26 - INTER-PARTY WAIVER OF THIRD PARTY LIABILITY

Purchaser, on behalf of itself and its officers, employees, affiliates,
agents, insurers, owners and customers, agrees to accept the inter-party
waiver and related indemnity provisions required by the applicable Launch
Services Agreement for a Launch modified so as to apply to Purchaser and
Launch

 

 

Page 24 of 52

Services provider. Copies of these provisions will be furnished to Purchaser
for review upon Purchaser’s request. Contractor likewise, on behalf of itself
and its officers, employees, affiliates, agents, insurers, owners and
customers, agrees to accept the inter-party waiver and related indemnity
provisions required by the applicable Launch Services Agreement for a Launch
modified so as to apply to Contractor and Launch Services provider. In no
event shall such inter-party waiver and related indemnity provisions have any
affect on the rights, obligations and liabilities of and between Purchaser and
Contractor under this Contract:

ARTICLE 27  - CORRECTIVE MEASURES IN UNLAUNCHED SATELLITES

If the data available from a launched or unlaunched satellite including
those of other customers of Contractor or any Satellite test shows that
Satellite performance departs from that specified in Exhibit B, as may be
modified pursuant to Article 9.3, Contractor shall, at its sole cost, take
appropriate corrective measures in the Satellite prior to Intentional
Ignition, subject to Article 14 hereunder, so as to eliminate there from the
deficiencies noted in the launched or unlaunched satellite or any Satellite
test. Contractor will promptly notify Purchaser of such data. The Contract
delivery schedule will be extended as reasonably required to accommodate any
required corrective measures.

Notwithstanding the foregoing, payment by Contractor of delivery damages,
under Article 22 herein, will not be affected by any such delay.

ARTICLE 28 - RESERVED

ARTICLE 29 - RESERVED

ARTICLE 30 - COMMUNICATIONS SIMULATOR WARRANTY

In connection with the Communications Simulator described in Exhibit E and
after completion of Contractor’s warranty obligations pursuant to Article 15
hereof, Contractor shall repair the Communications Simulator for a period up
to fifteen (15) years at cost. Such repair costs will be invoiced to Purchaser
for payment pursuant to the provisions of Article 5.2 hereof. Subsequent to
the two (2) year warranty period, Purchaser shall pay the transportation costs
for return of the Communications Simulator to Contractor as well as its return
to Purchaser after repair.

ARTICLE 31 - RESERVED

ARTICLE 32 -  RESERVED

ARTICLE 33 - GROUND STORAGE OPTION

	33.1	 	Notification.
	 
	 	 	Prior to the shipment of the Satellite to the Sea Launch Launch
processing facility, Purchaser, at its option to be exercised no later
than three (3) months prior to the projected shipment date of a
Satellite, may direct Contractor to store the Satellite for a period of
up to eighteen (18) months.

 

 

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	33.2	 	Storage Location.
	 
	 	 	Ground Storage shall be performed at a Contractor controlled facility
and shall be conducted in accordance with the Satellite Storage Plan
delivered to Purchaser pursuant to Annex 1 of Exhibit A.
	 
	33.3	 	Storage Prices
	 
	 	 	Subject to the note below, the Firm Fixed Price for ground storage of the
Satellite shall be ***** per month storage
cost while the Satellite is in Ground Storage PLUS ***** for the Satellite verification tests, as
described in the SOW 2.3.14, to be conducted upon removal of the Satellite
from Ground Storage. For less than one month periods, Ground Storage shall
be calculated on a pro rata basis using a thirty (30) day month as a basis
for such calculations. In addition, Purchaser shall pay directly or
reimburse Contractor for any additional costs, plus a ***** , including, but not limited to, additional Satellite tests
to be conducted upon removal of the Satellite from Ground Storage, which
Contractor would not have incurred if Purchaser had not elected Ground
Storage of the Satellite (e.g. taxes, tariffs, duties, transportation,
insurance, and Launch related expenses). All remaining milestone payments
through shipment, in accordance with the Milestone Payment Schedule, due
Contractor at the time of Storage Option exercise shall be paid by
Purchaser.
	 
	 	 	*****
	 
	33.4	 	Payments.
	 
	 	 	If the Ground Storage option is exercised, the payment schedule shall be
as follows: the first monthly payment for Ground Storage costs shall be
due thirty (30) days after the date the Satellite is stored and shall
continue monthly until Purchaser directs Contractor to remove the
Satellite from Ground Storage, conduct the verification tests, and ship
the Satellite to the Launch Site. Payment for the verification testing
shall be due thirty (30) days after Purchaser’s receipt of Contractor’s
invoice for such testing. Payments under this Article 33 shall be made
by wire transfer as set forth in Article 5 hereof.
	 
	33.5	 	Title and Risk of Loss.
	 
	 	 	Title and risk of loss to the Satellite delivered for Ground Storage
shall remain with Contractor at the storage site and notwithstanding the
provisions of Article 15 hereof, Contractor shall assume full
responsibility for any loss or damage to the Satellite during Ground
Storage.
	 
	33.6	 	Notification of Intention to Launch a Previously Stored Satellite.
	 
	 	 	Purchaser shall notify Contractor in writing that the Satellite in
Ground Storage should be removed from Ground Storage. Within six (6)
months of such notification by Purchase to remove a completed Satellite
from Ground Storage, Contractor shall have the Satellite ready for
shipment. Upon such notification, Contractor thereupon will use best
efforts to schedule a Launch at a time requested by Purchaser, subject
to Purchaser’s obligation to pay Contractor its additional costs

 

 

Page 26 of 52

	 	 	***** arising from delay or cancellation of the scheduled
Launch and for making arrangements for another Launch at a later
date. Evidence of such additional costs will be provided to Purchaser
by Contractor.
	 
	33.7	 	Storage Period.
	 
	 	 	If the Satellite is stored for more than eighteen (18) months,
Contractor shall have no further responsibility for the Satellite
(except as provided in Section 33 hereof) and Purchaser shall provide
Contractor with directions for delivery and disposition of the
Satellite.
	 
	33.8	 	Stored Satellite Refurbishment.
	 
	 	 	For the Satellite stored for ***** Purchaser may notify
Contractor of its desire to have the Satellite refurbished or to
continue ground storage at the cost specified above in paragraph 33.3.
Within sixty (60) days after receipt of Purchaser’s notice electing
refurbishment or continued ground storage, Contractor shall provide
Purchaser with (i) a plan for refurbishment and a retest plan to
recertify the Satellite as launch worthy or (ii) a plan for continued
ground storage, in either case together with reasonably necessary
adjustments to the applicable provisions of this Contract.
	 
	33.9	 	Terms and Conditions.
	 
	 	 	In the event that the option provided for under this Article 33 is
exercised by Purchaser, the Parties will reestablish a reasonable new
Delivery Schedule and cost/fees estimate according to available Launch
Services. Other affected terms will be modified if required. Except for
the foregoing, the terms and conditions of this Contract shall be
applicable to the services purchased pursuant to these options.

ARTICLE 34 -  RESERVED

ARTICLE 35 - CONFIDENTIAL INFORMATION

	 	 	As used herein, “Confidential Information” means any computer programs,
technical or business information, concepts, data or other intangible
information furnished under this Contract by either one of the parties
(the “furnishing party”) to the other party (the “receiving party”) by
way of documents, tapes, or other tangible media of expression marked
“Confidential” or “Proprietary” or the equivalent. The receiving party
shall not acquire title hereunder to any Confidential Information
furnished to it and shall for a period of three (3) years from the date
of termination of this Contract (a) treat such information with the same
degree of care to protect it against unauthorized disclosure as it treats
its own confidential information of like character and, in no event, with
less than a reasonable degree of care, (b) not undertake to disclose such
Confidential Information to anyone other than its affiliates and its or
their employees, representatives, agents, consultants and subcontractors
who are reasonably deemed to have a need to be provided with it, (c) not
undertake to use such Confidential Information except for furthering the
purposes of its being furnished under this Contract, (d) take reasonable
precautions to assure that every authorized recipient of such
Confidential Information is advised of the restrictions imposed hereby on
its disclosure and use, (e) if the Confidential Information is software
in object code form, not modify, decompile, disassemble, translate or
reverse engineer the software in whole or in part. The

 

 

Page 27 of 52

	 	 	foregoing provisions of this Article relating to Confidential Information
shall not apply to any information acquired by the receiving party or an
affiliate and which, whether or not it is, or is the same in content as,
Confidential Information, (f) was previously known to such party or
affiliate free of obligation to keep it confidential, (g) is or becomes
generally available to the public through no improper means imputable to
such party or affiliate, (h) was independently developed by such party or
affiliate, (i) was lawfully acquired by such party or affiliate from a
third party without known restriction on disclosure, or (j) is the same
as information disclosed by the furnishing party to others without taking
reasonable precautions to preserve the confidentiality of such
information, or (k) the receiving party is finally required to disclose
by a court or other tribunal of competent jurisdiction, provided that the
receiving party shall give the furnishing party timely notice of, and
cooperate with it, if requested, in opposing, any such requirement.
Neither party shall regard as confidential or proprietary any information
disclosed by it to the other which is not Confidential Information as
such is defined in this Article.

ARTICLE 36 - RIGHTS IN DATA

	36.1	 	Deliverable Data
	 
	 	 	Contractor shall retain all rights, title and interest in any intangible
Contractor data utilized or developed by Contractor during the
performance of this Contract. Purchaser’s officers, directors, agents,
affiliates, employees, consultants and representatives shall have the
nonexclusive right to use the Deliverable Data for purposes related to
the Satellite ordered hereunder and for no other purpose. Purchaser’s
officers, directors, agents, affiliates, employees, consultants, and
representatives shall treat as specified in Article 35 hereof all
Deliverable Data which is Confidential Information as that term is
defined in Article 35.
	 
	36.2	 	Other Data
	 
	 	 	All other intangible data marked confidential to which Purchaser may
have access to in the course of Contractor’s performance of this
Contract shall, if it qualifies as Confidential Information, remain the
property of Contractor or its subcontractors and shall be treated as
specified in Article 35 hereof and shall be used solely by Purchaser for
purposes related to the Satellite ordered hereunder.
	 
	36.3	 	No Additional Obligation
	 
	 	 	Nothing contained in this Article shall require Contractor to provide
any data beyond that set forth in Exhibit A unless required to fulfill
the obligations of this Contract.

ARTICLE 37 - PUBLIC RELEASE OF INFORMATION

Within a reasonable time prior to the issuance of news releases, articles,
brochures, advertisements, prepared speeches and other information releases
concerning the work performed hereunder by Contractor, a subcontractor or any
employee or a consultant of either, Contractor shall seek to obtain the
written approval of Purchaser concerning the content and timing of such
releases. Without such written approval, which Purchaser is under no
obligation to provide, there shall be no such release of information.

 

 

Page 28 of 52

Contractor shall make no use of any identification of Purchaser or its
affiliated companies in its advertising or promotional efforts in reference to
activities undertaken by Contractor under this agreement without Purchaser’s
prior written consent. The term “identification” includes any trade name,
trademark, service mark, insignia, symbol, or any simulation thereof, and any
code, drawing, specification, or evidence of Purchaser’s inspection. This
Article does not modify Article 35 of this Contract.

ARTICLE 38 - NOTICES

	38.1	 	Written Notification
	 
	 	 	Any notice(s) or correspondence required or permitted to be given or made
hereunder shall be in writing (except where oral notice is specifically
authorized). Wherever one Party is required or permitted to give written
notice to the other pursuant to this Contract, such notice(s) shall be
deemed to be duly given on the earliest of (i) actual receipt,
irrespective of whether sent by post, cable, facsimile transmission,
overnight courier or other method, or (ii) on the seventh (7th) day
after the mailing by registered or certified mail, return receipt
requested, postage prepaid and addressed as follows.
	 
	 	 	All notices, reports and invoices to be provided to the Purchaser under
this Contract shall be delivered to the appropriate Intelsat entities as
follows:

    	 	 	 
	

	 Applicable Notices, Reports & Invoices
          
	 	Receiving Purchaser Entity and Address
          

	Original
            Contract Notices 
	 	Intelsat LLC
	 
	 	c/o Intelsat (Bermuda), Ltd.
	 
	 	Attn: *****
	 
	 	Director of Contracts
	 
	 	North Tower, 2nd Floor
	 
	 	90 Pitts Bay Road
	 
	 	Pembroke, HM 08
	 
	 	Bermuda
	 
	 	 
	 
	 	Telephone: *****
	 
	 	Facsimile: *****
	 
            

          

	Copies
            of Contract Notices 
	 	Intelsat Global Service Corporation
	Copy of
            Invoices 
	 	Attn: *****
	All Contract
            Correspondence 
	 	Major Programs Department (Mail Stop 25)
	 
	 	3400 International Drive, N.W.
	 
	 	Washington D.C. 20008-3098
	 
	 	U.S.A.
	 
	 	 
	 
	 	Telephone: *****
	 
	 	Facsimile: *****
	 
            

          

	Copies
            of Contract Notices 
	 	Intelsat Spacecraft Program Office (ISPO)
	Deliverable
            Data* 
	 	Attn: *****
	 
	 	3825 Fabian Way

 

 

Page 29 of 52

    	 	 	 
	

	 
	 	Palo Alto, California 94303
	 
	 	U.S.A.
	 
            

          

	Deliverable
            Data* 
	 	Intelsat Global Service Corporation
	 
	 	Export Compliance Dept (Mail Stop 33A)
	 
	 	3400 International Drive, N.W.
	 
	 	Washington D.C. 20008-3098
	 
	 	U.S.A.
	 

	 
	 	Telephone: (202) 944-3256
	

	 	*	 	The Contractor shall provide to Intelsat Global Service Corporation
and ISPO-PA the requisite number of copies of Deliverable Data as
specified in Exhibit A.

	 	 	 
	In the case of Contractor:
	 	 
	

	 	Space Systems/Loral, Inc.
	

	 	3825 Fabian Way
	

	 	Palo Alto, CA 94303-4697
	

	 	Attn: *****
	

	 	Mail Station
	

	 	Telephone No.: *****
	

	 	Facsimile No.: *****
	With a separately delivered copy to:
	 	 
	

	 	*****

Telephone No.: *****

Facsimile No.: *****

	38.2	 	Change of Address
	 
	 	 	Either Party from time to time may change its notice address and/or the
Parties to be notified by giving the other Party written notice (as
provided above) of the new address and/or Parties and the date upon
which the change shall become effective.

ARTICLE 39 - INSURANCE

	39.1	 	Risk Insurance Aspects.
	 
	 	 	Contractor shall obtain Launch Risk Management Insurance coverage for the
Satellite. The sum insured under such Launch Risk Management Insurance
shall be equal to the lesser of (i) ***** or (ii) Purchaser’s
actual, declared insurable interest in the Satellite. Such insurance
commitment shall provide coverage for Launch, commissioning and in-orbit
operation through 180 days after Intentional Ignition of the Launch Vehicle
to cover both partial and total losses. Purchaser (or a designated
Affiliate) shall be the named insured and loss payee on the policy, which
shall include the following terms:

	 	•	 	Intentional Ignition plus 180-days coverage period.
	 
	 	•	 	*****

 

 

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	 	•	 	*****
	 	•	 	*****
	 	•	 	*****

	 	 	If Contractor fails to furnish on or prior to the Closing the insurance
commitment as set forth in Section 2.5(c) of the APA, as Purchaser’s sole
remedy for such failure, Purchaser’s obligation to pay ***** for Launch Services and Launch Risk
Management Insurance, as set forth in Article 4.1 hereof, shall be reduced
by an amount equal to Purchaser’s out of pocket costs incurred in obtaining
its own policy on such terms, if and to the extent such costs exceed
***** and Contractor shall have no further obligation to provide Launch
Risk Management Insurance under the Contract.
	 
	 	 	Subject to Purchaser’s fulfillment of its payment obligation as set
forth in Article 4.1 and Article 5 hereof, Contractor shall obtain the
Launch Risk Management Insurance policy with Purchaser as the named
insured and loss payee under the policy effective as of Intentional
Ignition of the Launch Vehicle.
	 
	 	 	After Intentional Ignition of the Launch Vehicle for the Satellite,
Contractor’s sole obligation with respect to Launch Risk Management
Insurance shall be to provide reasonable support to Purchaser in
connection with claims, if any, under the applicable insurance policy.
	 
	39.2	 	Third Party Indemnity Insurance
	 
	 	 	Notwithstanding Article 20.1, Indemnity, with respect to third party
indemnity liability insurance for claims arising out of the Launch of the
Satellite, Contractor shall insure Purchaser against third party claims
to the same extent as Contractor is insured but in no event less than
***** or whatever amount is
required at the time of Launch, per Launch. Such insurance proceeds shall
be Purchaser’s sole compensation for third party claims arising out of
the Launch of the Satellite.
	 
	39.3	 	Other Indemnity Aspects
	 
	 	 	Contractor shall maintain and cause Contractor’s subcontractors to
maintain during the term of this Contract: (1) Workers compensation
insurance as prescribed by the law of the state or nation in which the
work is performed, (2) employer’s liability insurance with limits of at
least five hundred thousand dollars ($500,000) for each occurrence; (3)
comprehensive automobile liability insurance if the use of motor vehicles
is required, with limits of at least one million dollars ($1,000,000)
combined single limit for bodily injury and property damage for each
occurrence, (4) umbrella/excess liability insurance in the amount of
twenty million dollars ($20,000,000) (5) Comprehensive General Liability
(“CGL”) insurance, including Blanket Contractual Liability and Broad Form
Property damage, with limits of at least one occurrence; (6) if the
furnishing to Purchaser (by sale or otherwise) of products or material is
involved, CGL insurance endorsed to include products liability and
completed operations coverage in the amount of one million dollars
($1,000,000) for each occurrence; (7) aircraft product liability,
including coverage of Satellites, in the amount of two hundred fifty
million dollars ($250,000,000) and (8) General earthquake insurance
coverage in the amount of twenty five million dollars ($25,000,000). All
CGL insurance, earthquake insurance, aircraft product liability insurance
and umbrella coverage shall designate Purchaser.

 

 

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	 	 	Contractor and Contractor’s subcontractors shall furnish, upon request,
certificates or adequate proof of the foregoing insurance as specified in
this Article 39 within thirty (30) days after execution of this Contract,
including, if specifically requested by Purchaser, copies of the
endorsements and insurance policies as well as the undertaking to refund
directly to Purchaser any amounts paid in connection with any Satellite
or its Launch in the event a refund is payable by Contractor due to a
Force Majeure event, including the destruction of a Satellite in an
earthquake. Purchaser shall be notified in writing at least thirty (30)
days prior to cancellation of or any change in the policy.
	 
	 	 	Contractor agrees to use reasonable efforts such that Contractor,
Contractor’s insurer(s), and anyone claiming by, through, under or in
Contractor’s behalf shall have no claim, right of action, or right of
subrogation against Purchaser and its customers based on any loss or
liability insured under the foregoing insurance.
	 
	39.4	 	Financial Resources
	 
	 	 	Contractor shall provide its annual audited financial statements, and
quarterly financial statements certified by Contractor’s Vice President
and CFO as such are provided to Contractor’s banks to Purchaser as they
become available. Audited financial statements shall be certified by a
major independent accounting firm.

ARTICLE 40 - ORDER OF PRECEDENCE

In the event of conflict between this Contract and the Exhibits hereto, the
following order of decreasing precedence shall apply:

	 	 	 
	 

	 	Contract Terms and Conditions
	 
	

	 	Exhibit A - Statement of Work
	

	 	Exhibit B - System Performance Specification
	

	 	Exhibit C - Product Quality Assurance Plan
	

	 	Exhibit D - Spacecraft Test Plan
	

	 	Exhibit E - Communications Simulator Specification (option)
	

	 	Exhibit F - Dynamic Simulator Specification (option)

ARTICLE 41 - GENERAL

	41.1	 	Limitation of Liability
	 
	 	 	EXCEPT AS PROVIDED FOR IN ARTICLES 19 AND 20 OF THIS CONTRACT AND EXCEPT
IN THE-CASE OF WILLFUL MIS-CONDUCT, CONTRACTOR SHALL NOT BE LIABLE
DIRECTLY OR INDIRECTLY TO PURCHASER OR TO PERMITTED ASSIGNEES OR
SUCCESSORS FOR ANY AMOUNTS (INCLUDING ANY SUCH AMOUNTS CLAIMED BY THIRD
PARTIES) REPRESENTING LOSS OF PROFITS, LOSS OF BUSINESS, OR INDIRECT,
SPECIAL EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING FROM THE
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT OR ANY ACTS OR OMISSIONS
ASSOCIATED THEREWITH OR RELATED TO THE USE OF ANY ITEMS OR SERVICES
FURNISHED HEREUNDER, WHETHER THE BASIS OF THE LIABILITY IS BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE AND

 

 

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	 	 	STRICT LIABILITY), STATUTES OR ANY OTHER LEGAL THEORY. CONTRACTOR’S
CUMULATIVE LIABILITY FOR ALL CAUSES WILL NOT EXCEED THE CONTRACT VALUE,
AS MAY BE AMENDED FROM TIME TO TIME.
	 
	41.2	 	Severability
	 
	 	 	If any provision of this Contract is declared or found to be illegal,
unenforceable or void, the Parties shall negotiate in good faith to
agree upon a substitute provision that is legal and enforceable and is
as nearly as possible consistent with the intentions underlying the
original provision. If the remainder of this Contract is not materially
affected by such declaration or finding and is capable of substantial
performance, then the remainder shall be enforced to the extent
permitted by law.
	 
	41.3	 	Waiver
	 
	 	 	No delay or omission by either Party to exercise any right or power shall
impair any such right or power or be construed to be a waiver thereof. No
payment of money by any person or entity shall be construed as a waiver
of any right or power under this Contract. A waiver by any Party of any
of the covenants, conditions or contracts 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, condition or contract
herein contained. No change, waiver or discharge hereof shall be valid
unless in writing and signed by an authorized representative of the Party
against which such change, waiver or discharge is sought to be enforced.
	 
	41.4	 	Gender: Captions
	 
	 	 	As used herein, the singular shall include the plural and the plural may
refer to only the singular. The use of any gender shall be applicable to
all genders. The captions contained herein are for purposes of
convenience only and are not a part of this Contract.
	 
	41.5	 	Relationships of the Parties
	 
	 	 	It is expressly understood that Contractor, on the one hand, and
Purchaser, on the other hand, intend by this Contract to establish the
relationship of independent contractors, and do not intend to undertake
the relationship of principal and agent or to create a joint venture or
partnership between them or their respective successors in interests.
Neither Contractor, on the one hand, nor Purchaser, on the other hand,
shall have any authority to create or assume, in the name or on behalf of
the other Party, any obligation, expressed or implied, nor to act or
purport to act as the agent or the legally empowered representative of
the other Party hereto for any purpose whatsoever.
	 
	41.6	 	Reserved
	 
	41.7	 	Compliance With Laws
	 
	 	 	Contractor and all persons furnished by Contractor shall comply at their
own expense with all applicable federal, state, local and foreign laws,
ordinances, regulations and codes, including those relating to the use of
chlorofluorocarbons, and including the identification and procurement of
required permits, certificates, licenses, insurance, approvals and
inspections in performance under this Contract. Contractor agrees to
indemnify, defend (at Purchaser’s request) and save harmless Purchaser, its
affiliates, and each of their officers, directors and employees from and
against any

 

 

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	 	 	losses, damages, claims, demands, suits, liabilities, fines, penalties
and expenses (including reasonable attorney’s fees) that arise out of or
result from any failure to do so.
	 
	41.8	 	Review of Applications
	 
	 	 	The Contractor shall review with Purchaser any application the Contractor
makes to any government, department, agency, or entity for any approval,
permit, license, or agreement, as may be required for export of the
Services or products, prior to submission of such application. The
Contractor shall provide Purchaser a minimum of five (5) business days to
review such application prior to submission to such governmental entity,
and the Contractor shall in good faith
consider any comments and
proposed revisions made by Intelsat for incorporation into such
application. Purchaser shall reasonably cooperate with the Contractor in
the Contractor’s efforts to procure all such approvals, permits, licenses,
and agreements.
	 
	41.8	 	Construction
	 
	 	 	This Contract, the Exhibits and the Attachment(s) hereto have been
drafted jointly by the Parties and in the event of any ambiguities in
the language hereof, there shall be no inference drawn in favor or
against either Party.
	 
	41.9	 	“Including”
	 
	 	 	Whenever the terms “including” or “include” are used in this Contract in
connection with a list of items within a particular classification
(whether or not the term is followed by the phrase “but not limited to”
or words of similar effect), that list shall be interpreted to be
illustrative only, and shall not be interpreted as a limitation on, or an
exclusive list of, the items within that classification.
	 
	41.10	 	Counterparts
	 
	 	 	This Contract may be signed in any number of counterparts with the same
effect as if the signature(s) on each counterpart were upon the same
instrument.
	 
	41.11	 	Applicable Law
	 
	 	 	This Contract shall be interpreted, construed and governed, and
the rights of the Parties shall be determined, in all respects,
according to the laws of the State of New York without regard to its
conflicts of laws rules or the UN Convention for International Sales
of Goods.
	 
	41.12	 	Survival
	 
	 	 	Termination or expiration of this Contract for any reason shall not
release either Party from any liabilities or obligations set forth in
this Contract which (i) the Parties have expressly agreed shall survive
any such termination or expiration, including the obligations in
Articles 15,19, 20, 26, 27, 35 and 36 or (ii) remain to be performed or
by their nature would be intended to be applicable following any such
termination or expiration.
	 
	41.13	 	Assignment
	 
	 	 	This Contract shall be binding on and inure to the benefit of the
Parties and their respective successors and assigns.

 

 

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	 	 	Except as otherwise provided herein, this Contract may not be assigned,
either in whole or in part, by either Party without the express written
approval of the other Party; provided that such approval shall not be
unreasonably withheld and provided further that this Article 41.13 does
not restrict Contractor from utilizing subsidiaries, its other divisions
or stockholder companies to manufacture subsystems or components of the
Satellites or other hardware, nor does it restrict Purchaser from
assigning this Contract to an entity that, directly or indirectly,
controls, is controlled by or is under common control with Purchaser.
Either Party may assign security interests in their respective rights
hereunder to lenders that provide financing for the performance by such
Party under this Contract.

	 	 	Notwithstanding the foregoing, it shall be unreasonable for Contractor to
withhold its approval of any assignment to a third party with a triple B
or better financial rating, provided that such assignee reasonably
demonstrates its ability to operate and maintain, itself or through a
third party, the Satellite ordered hereunder and, if applicable, such
assignment shall be in accordance with applicable U.S. export laws.

ARTICLE 42 - ISO 9000 Certification

Purchaser recognizes that Contractor is an ISO 9000 registered supplier of
goods and services. Therefore, under this Contract, Contractor shall have the
portion of Contractor’s quality system that applies to the material and
services covered under this Agreement registered to the then current and
applicable ISO 9000 series. Such registration must be made by a third party
registrar(s) accredited in any one the following countries: The United States
of America; and the countries the European Community. Contractor shall, at
Purchaser’s request, provide Purchaser’s representative indicated below a copy
of the appropriate certificate(s) of registration issued by such third party
accredited registrar(s). Contractor shall also maintain such certificate(s) of
registration through appropriate assessments by such third party accredited
registrar(s) and provide to Purchaser’s representative any applicable updated
certificate(s) or notifications of failure to pass a surveillance or full
registration audit. Notwithstanding any other provision of this Contract, if
Contractor fails, for any reason, to obtain or maintain or provide to
Purchaser such certificate(s) of registration as set forth above, Purchaser
shall have the right, and without any cost to or liability or obligation of
Purchaser, to terminate this Contract. Purchaser’s representative for ISO 9000
purposes is:.

ARTICLE 43 - CFC PACKAGING

Contractor warrants that all packaging materials furnished under this Contract
and all packaging associated with material furnished under this Contract were
not manufactured using and do not contain chlorofluorocarbons. “Packaging”
means all bags, wrappings, boxes, cartons and any other packing materials used
for packaging. Contractor shall indemnify and hold Purchaser harmless for any
liability, fine or penalty incurred by Purchaser to any third party or
governmental agency arising out of Purchaser’s good faith reliance upon said
warranty.

ARTICLE 44 - OZONE DEPLETING SUBSTANCES LABELING

Contractor warrants and certifies that all products, including packaging and
packaging components, provided to Purchaser under this Contract have been
accurately labeled, in accordance with the requirements of 40

 

 

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CFR Part 82 entitled “Protection of Stratospheric Ozone, Subpart E - The
Labeling of Products Using Ozone Depleting Substances.” Contractor agrees to
indemnify, defend and save harmless Purchaser, its officers, directors and
employees from and against any losses, damages, claims, demands, suits,
liabilities, fines, penalties, and expenses (including reasonable attorneys’
fees) that may be sustained by reason of Contractor’s non-compliance with such
applicable law or the terms of this warranty and certification.

ARTICLE 45 - HEAVY METALS IN PACKAGING

Contractor warrants to Purchaser that no lead, cadmium, mercury or hexavalent
chromium have been intentionally added to any packaging or packaging component (as defined under
applicable laws) to be provided to Purchaser under this Contract. Contractor further warrants to
Purchaser that the sum of the concentration levels of lead, cadmium, mercury and hexavalent chromium in
the package or packaging component provided to Purchaser under this Contract does not exceed 100
parts per million. Upon request, Contractor shall provide to Purchaser Certificates of Compliance certifying
that the packaging and/or packaging components provided under this Contract are in compliance with the
requirements set forth above in this clause. Contractor shall indemnify and hold Purchaser harmless for any
liability, fine or penalty incurred by Purchaser to any third party or governmental agency arising out of
Purchaser’s good faith reliance upon said warranties or any Certificates of Compliance.

ARTICLE 46 - RESERVED

ARTICLE 47 - FCC REGISTRATION

When Deliverable Items furnished under this Contract are subject to Part 68 of
the Federal Communications Commission’s Rules and Regulations, as amended from
time to time, Contractor warrants that such Deliverable Items furnished
hereunder are registered under and comply with Part 68 of the Federal
Communications Commission’s Rules and Regulations, including, but not limited
to, all labeling and customer instruction requirements.

ARTICLE 48 - HARMONY

Contractor shall be responsible for the harmonious relations of its employees
and agents with other contractors or consultants working for Purchaser.

ARTICLE 49 - NONEXCLUSIVE RIGHTS

This Contract does not grant Contractor an exclusive privilege to provide all
the goods and services which Purchaser may require, and Purchaser may contract
with other contractors for the procurement of the same or comparable goods and
services.

ARTICLE 50 - QUALITY SYSTEM AUDIT

Contractor agrees to permit Purchaser or its agent to conduct an initial and
any subsequently required on-site Quality System Audits not to exceed one (1)
per calendar year of the Contractor’s Quality System and

 

 

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to the extent possible certain subcontractors of Contractor in accordance with
Exhibit C. Such evaluation shall assess the conformance to and documentation
of the various elements that comprise a functioning quality system. Such
elements are defined in Exhibit C. Contractor agrees to respond to any
documented deficiencies within twenty (20) business days, after receipt of
documented deficiencies, with a written corrective action plan detailing
Contractor’s efforts to correct such deficiencies. In addition, Contractor
will also allow Purchaser to review Contractor’s records of Quality System
Audits it has or may perform on its own behalf on its subcontractors.

ARTICLE 51-AUDIT

With the exception of prices fixed by this Agreement, Supplier shall maintain
accurate and complete records including a physical inventory, if applicable, of all costs incurred
under this Agreement which may affect:

	A.	 	verification, redetermination, or revision of prices under this Agreement
	 
	B.	 	termination charges payable by Purchaser under this Agreement
	 
	C.	 	all costs incurred for tooling under this Agreement
	 
	D.	 	all hours of direct labor employees engaged in work for which payment
under this Agreement or as
specified in a “price schedule” is to be computed on the basis of actual
hours worked, at a fixed
rate per hour or other unit of time under this Agreement.
	 
	E.	 	other direct costs payable by Purchaser under this Agreement

These records shall be maintained in accordance with recognized commercial
accounting practices so they may be readily audited and shall be held until
costs have been finally determined under this Agreement and payment or final
adjustment of payment, as the case may be, has been made. Contractor shall
permit an accounting firm, mutually agreed upon between Contractor and
Purchaser, to examine and audit these records and all supporting records at
all reasonable times. Audits shall be made not later than three calendar year
after the final delivery date of all Deliverables hereunder and payment of the
final invoice for completion of IOT.

ARTICLE 52 - RELEASES VOID

Neither party shall require (i) waivers or releases of any personal rights or
(ii) execution of documents which conflict with the terms of this Contract,
from employees, representatives or customers of the other in connection with
visits to its premises and both parties agree that no such releases, waivers
or documents shall be pleaded by them or third persons in any action or
proceeding.

ARTICLE 53 -TRAINING

Contractor shall provide instructors and the necessary instructional material
in Contractor’s standard format to train Purchaser’s personnel, and Purchaser
shall provide personnel in accordance with Exhibit A, Statement of Work
attached hereto.

ARTICLE 54 - WORK HEREUNDER

 

 

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It is understood that visits by Contractor’s representatives or Contractor’s
contractors’ representatives for inspection, adjustment or other similar
purposes in connection with Deliverable Items purchased hereunder shall for
all purposes be deemed “work hereunder” and shall be at no charge to Purchaser
unless otherwise agreed in writing by Purchaser.

ARTICLE 55 - DURATION

All work under this Contract shall continue, as specified elsewhere herein,
for fifteen (15) years after Acceptance of the Satellite ordered hereunder.

ARTICLE 56 - CHANGES IN SCOPE

Purchaser may, at any time, by written notice of its Contract Manager,
advise Contractor of Purchaser’s intent to make changes in, additions to, or
deductions from, the general scope of the work hereunder. If such intended
changes cause an increase or decrease in the amount or character of the
purchases under this Contract, or in the time required for its performance,
Contractor shall within twenty (20) business days of Purchaser’s written
change notice, submit a proposal to Purchaser, specifying the impact of such
change on the price of Deliverable Items or the time required for performance.
Purchaser shall within twenty (20) business days of receipt of proposal,
either (a) accept the proposal, in which event Purchaser shall issue a written
change order directing the Contractor to make the changes or (b) advise
Contractor not to perform the change in which event Contractor shall proceed
with the original work. Notwithstanding the foregoing, Purchaser shall not pay
for any changes required in order for the Contractor to meet the performance
specifications and requirements of this Contract, unless the Contractor’s
inability to meet such performance specifications and requirements without a
change solely is attributable to Purchaser.

ARTICLE 57 - MATERIAL TESTING

In addition to tests requested by Purchaser as set forth in Exhibit D, the
Contractor is responsible for the performance of standard factory production
tests as described in the Contractor’s quality assurance documentation. Such
tests shall be performed in accordance with the Contractor’s normal testing
and quality control procedures, which shall be subject to the review by
Purchaser’s Quality Assurance Representative, for Deliverable Items of the
type purchased hereunder in order to insure that the Deliverable Items
provided hereunder meet all applicable specifications. The Contractor shall
furnish a copy of its test plans and quality control procedures to Purchaser
prior to initiating any such testing and Purchaser may witness any of the
testing by giving prior notice to the Contractor. The Contractor also agrees
to maintain detailed records of all such tests and to provide Purchaser, if
requested, with written results of these tests.

It is agreed that this Contract does not grant the Contractor any exclusive
privilege to repair any or all of the ground Deliverable Items purchased
hereunder. Purchaser may contract with others for these services.

All transportation costs and risk of in-transit loss or damage for ground
Deliverable Items returned to the Contractor for repair under this Article,
and all transportation costs associated with the return of such repaired and
replacement ground Deliverable Items to Purchaser will be borne by
Contractor. The title and risk of in-transit loss and damage for shipment
shall transfer to Contractor upon delivery of such

 

 

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Deliverable Items to the shipping carrier by Purchaser, and title and risk of
in-transit loss and damage shall transfer back to Purchaser for returned,
repaired or replacement ground Deliverable Items upon receipt of such
Deliverable Items by Purchaser.

ARTICLE 58 - REPAIR PROCEDURES

Purchaser shall furnish the following information with ground Deliverable
Items returned to the Contractor for repair: (a) complete address of Purchaser
location returning the ground Deliverable Items, (b) the name(s) and telephone
number(s) of Purchaser employee(s) to contract in case of questions about the
ground Deliverable Items to be repaired, (c) “ship to” address for return of
repaired ground Deliverable Items if different from that in (a) above, (d) a
complete list of ground Deliverable Items returned, (e) the nature of the
defect or failure, if known, and (f) whether or not returned ground
Deliverable Items is under warranty.

ARTICLE 59 - SUPERVISION

During the entire acceptance testing period of ground Deliverable Items, the
Contractor shall maintain at the Satellite Control Facilities, a competent
Systems Engineer, at a minimum, experienced in all aspects of ground control
hardware and software provided by the Contractor.

ARTICLE 60 - MARKING

	A.	 	All ground Deliverable Items furnished hereunder shall be marked for
identification purposes as follows:

	 	(1)	 	Contractor Name
	 
	 	(2)	 	Contractor Model/Serial Number;
	 
	 	(3)	 	Month and Year of Manufacture
	 
	 	(4)	 	Any Other Identification Which Might be Requested by Purchaser.

	B.	 	The items comprising the Satellite shall be marked in accordance with the
identification traceability system the Contractor customarily uses in connection with the
sale of the Satellite. In addition, for information only, Contractor shall provide Purchaser with a
copy of Contractor’s identification traceability system.

ARTICLE 61 - LABOR RELATIONS

Contractor shall be responsible for its own labor relations with any trade or
union represented among its employees and shall negotiate and be responsible
for adjusting all disputes between itself and its employees or any union
representing such employees. The provisions of this Article shall be extended
by Contractor to all subcontractors hereunder. Contractor shall immediately
notify Purchaser if Contractor has knowledge of any actual or potential labor
dispute which is delaying or could delay the timely

 

 

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performance of this Contract. If any dispute, work stoppage or strike should
occur, the Contractor agrees to make all efforts and take all action necessary
to immediately settle the matter.

ARTICLE 62 - SUSPENSION OF WORK

	A.	 	Purchaser may suspend, delay or interrupt all or any portion of the work
at any time for a period of time determined by Purchaser to be appropriate for the convenience of
Purchaser. If the performance of all or any part of the work is, for an unreasonable amount
of time, suspended, delayed, or interrupted by an act of Purchaser in the administration of
this Contract, or by its failure to act within the time specified in this Contract (or if no time
is specified, within a reasonable time), an adjustment shall be made to the Delivery Schedules
specified herein and, subject to the Contractor providing documentation of additional costs to
the reasonable satisfaction of Purchaser, for any increase in the cost of performance of this Contract
(including fee) necessarily caused solely by such unreasonable suspension, delay, or
interruption and the Contract shall be modified in writing accordingly.
	 
	B.	 	However, no adjustment shall be made under this Article for any
suspension, delay, or interruption (1) if performance would have been so suspended, delayed or interrupted by
any other cause, including the fault or negligence of the Contractor or (2) for which an
equitable adjustment is provided or excluded under any other provision of this Contract.
	 
	C.	 	Any claim for adjustment under this Article must be asserted in writing
within thirty (30) calendar days after the termination of such suspension, delay or interruption.

ARTICLE 63 - TRANSFER OF SOFTWARE AND LICENSE BY PURCHASER

Purchaser, subject to U.S. Export Laws if applicable, may transfer to a
transferee Deliverable Items delivered by Contractor under this Contract,
Software delivered with such Deliverable Items and Purchaser’s license for
such Software provided such transfer is permitted by the licensor if other
than Contractor, and such transferee executes a written license contract with
Contractor. Contractor shall not unreasonably withhold its consent to such
transfer. Contractor shall use its best efforts to obtain a third party
licensor’s consent to a transfer.

ARTICLE 64 - RESERVED

ARTICLE 65 - RIGHT OF ENTRY AND PLANT RULES

Each Party shall have the right to enter the premises of the other Party
during normal business hours with respect to the performance of this Contract,
subject to all plant rules and regulations, security regulations and
procedures and U.S. Government clearance and export requirements if
applicable. Contractor shall become acquainted with conditions governing the
delivery, receipt and storage of materials at the site of the work so that
Contractor will not interfere with Purchaser’s operations. Storage space will
not necessarily be provided adjacent to the site of the work. Therefore,
Contractor shall be expected to select, uncrate, remove and transport
materials from the storage areas provided. Purchaser is not responsible for
the safekeeping of Contractor’s property on Purchaser’s premises. Contractor
shall not stop, delay or interfere with Purchaser’s

 

 

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work schedule without the prior approval of Purchaser’s representative.
Contractor shall provide and maintain sufficient covering and take any other
precautions necessary to protect Purchaser’s stock, equipment and other
property from damage due to Contractor’s performance of the work.

ARTICLE 66 - WORK DONE BY OTHERS

If any part of the work connected with the Deliverable Items ordered
hereunder, is dependent upon work done by others, Contractor shall inspect
and promptly report to Purchaser’s representative any defect that renders
such other work unsuitable for Contractor’s proper performance.

ARTICLE 67 - PROGRAM MANAGEMENT AND PROGRAM MASTER SCHEDULE

	A.	 	The Contractor shall establish a Program Organization Chart which shall
designate personnel to staff the Program Management Office. The Program
Organization Chart shall be submitted to Purchaser within ten (10)
business days of the signing of this Contract. Revisions to this Chart
shall be furnished to Purchaser within ten (10) business days after such
revisions have been officially authorized by Contractor.
	 
	B.	 	A Program Master Schedule shall be used as the basis for program control
and reporting during the performance of this Contract. A copy of this
Master Schedule shall be submitted to Purchaser within ten (10) business
days of the signing date of this Contract and any subsequent revisions to
the Program Master Schedule, as authorized by the Contractor’s Program
Manager, shall also be submitted to Purchaser within twenty (20) business
days of such revision.

ARTICLE 68 - MEETINGS, PRESENTATIONS, SCHEDULE UPDATES AND REPORTS

	A.	 	Meetings and Presentations - In addition to any other meetings called for
under the provisions of this Contract, Contractor shall provide the personnel, facilities,
materials and support required to conduct the following periodic meetings and presentations:

	 	1.	 	Informal Project Manager meetings.
	 
	 	2.	 	Informal Technical/Schedule Review meetings with Purchaser’s representatives
(approximately weekly)
	 
	 	3.	 	Quarterly Program Level, Summary, and Executive Reviews.

	 	 	The format and content and attendees of all meetings specified in this
Contract, including all of the Exhibits hereto, shall be mutually agreed
between Purchaser and Contractor. Copies of documents used during these
meetings shall be furnished to Purchaser concurrently therewith.
	 
	 	 	Meetings shall be conducted for Purchaser’s management personnel as may be
deemed appropriate by Purchaser. The Contractor shall be represented by
its Program Manager and such other personnel as are specifically required
to support the particular presentation. All periodic meetings shall be
held at a site to be mutually agreed upon between the two parties.
	 
	B.	 	Reports - The Contractor shall prepare and deliver to the site(s)
designated by Purchaser a minimum of ten copies of the Quarterly Progress and Status Reports. The
Quarterly Progress and

 

 

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	 	 	Status Reports shall summarize the progress of the work to date, give
present status of items to be delivered and plans for completing the
work remaining to be performed. To the extent the Contractor’s
subcontractors are required to submit progress letters and status
reports to the Contractor, the Contractor shall summarize such reports
including significant information therein in the next report whether it
be monthly or quarterly.
	 
	C.	 	Schedule Updates - The Contractor shall deliver monthly progress
reports and schedule updates covering all program events and/or
activities completed, rescheduled, or deleted or added and a forecast of
even completion to the end of this Contract on a monthly basis. These
updates shall be substantially illustrated in Exhibit A.

ARTICLE 69 - COMPATIBILITY WITH THE LAUNCH VEHICLES

The Contractor shall closely monitor the development of the applicable Launch
Vehicle as necessary to assure that the Satellite ordered hereunder and
associated support equipment are fully compatible with the specifications for
such Launch Vehicle. In the event that any changes are made to such Launch
Vehicle that affect this compatibility, Contractor shall promptly identify
the impact of such changes and propose to Purchaser any necessary changes in
the Satellite, and associated support equipment.

ARTICLE 70 - DOCUMENTATION

Contractor agrees to furnish all documentation applicable to Deliverable
Items furnished hereunder, to timely update documentation to reflect changes
to Deliverable Items. Purchaser may reproduce such documentation for use with
Deliverable Items furnished hereunder. At a minimum, the Contractor shall
furnish the type and quantity of documentation described in Exhibit A,
attached hereto and made a part hereof, at the times therein required.
Whether or not specifically required by Exhibit A, the Contractor shall, with
each shipment by Contractor to Purchaser, include all manuals covering the
installation, operation and maintenance of the Deliverable Items shipped.

	 	70.1	 	Marking ITAR Controlled Data. The following process shall apply
only to deliverable data and information provided hereunder which has not
been previously provided under this Contract (documentation and
information first generated after the Closing date).
	 
	 	70.1.1	 	Contractor agrees to mark all ITAR controlled data and
documentation appropriately before providing it to Purchaser. Purchase shall not be relieved of its
obligations under the ITAR regarding the retransfer of data and documentation provided by Contractor
regardless of any Contractor markings (or lack thereof).
	 
	 	70.1.2	 	Subject to paragraph 70.1.3 below, Contractor shall provide ITAR
controlled technical data (as that term is defined in the ITAR) to the Program Manager, Intelsat
Satellite Program Office, and to the Director, Office of Import/Export Controls, Washington, D.C;
and shall mark the data as follows:

	 	 	 	“This document contains technical data (22 CFR 120.10) and is
subject to the control of the International Traffic in Arms
Regulations 22 CFR 120-130.”

 

 

Page 42 of 52

	 	70.1.3	 	To the extent that Contractor provides any ITAR controlled data
that is “detailed design and manufacturing know-how data” as defined in
Intelsat Global Service Corporation’s Technical Assistance Agreement TA
1377-01 the Contractor shall only provide such controlled data to:

	 	 	 	 	 
	

	 	 	 	Jean Paul Berges
	

	 	 	 	Director, Intelsat Satellite Program Office
	

	 	 	 	Palo Alto, California
	 

	 	and	 	 
	

	 	 	 	Patrick Donovan
	

	 	 	 	Director, Office of Import/Export Controls
	

	 	 	 	Intelsat Global Service Corporation
	

	 	 	 	Washington, D.C. 20008

	 	 	 	Such controlled data shall be marked as follows:

	 	 	 	“This document contains Technical Data (22 CFR 120.10) that may
only be released to U.S. persons as defined in 22 CFR 120.15.”

ARTICLE 71 - REPAIR/REPLACEMENT PARTS - CONTINUING AVAILABILITY

Contractor agrees to offer parts for maintenance, replacement, and repair of
the ground Deliverable Items for sale to Purchaser, for the term of this
Contract as set forth in Article 55 - Duration, after the applicable warranty
period, which parts will be compatible with and functionally equivalent to
those provided under this Contract. In the event Contractor is unable to
obtain another source of supply for Purchaser, Contractor will use its best
efforts to provide Purchaser without obligation or charge to Purchaser, with
the technical information and any other rights required so that Purchaser can
manufacture, have manufactured or obtain such parts from other sources.

The technical information shall include for example, (a) manufacturing drawings
and specifications of raw materials and components comprising such parts, (b)
manufacturing drawings and specifications covering special tooling and the
operation thereof, (c) a detailed list of all commercially available parts and
components purchased by Contractor on the open market disclosing the part
number, name and location of the contractor and price lists for the purchase
thereof, and (d) one complete copy of the then current source code used in the
preparation of any software licensed or otherwise acquired by Purchaser from
Contractor hereunder.

ARTICLE 72 - TECHNICAL SUPPORT

Purchaser shall be entitled to ongoing technical support, including field
service and assistance if and when required by Purchaser for a period of ninety (90) calendar days from the date
of final acceptance, for the ground Deliverable Items installed by Contractor at the Satellite Control
Facilities, provided however, that the availability or performance of this technical support service shall not be
construed as altering or

 

 

Page 43 of 52

affecting the Contractor’s obligations as set forth in Article 15 - Warranty
or as elsewhere provided in this Contract.

ARTICLE 73 - LICENSE OF SOFTWARE AND LICENSE TERM

Contractor hereby grants to Purchaser a nonexclusive license to use the
Software, including all media on which it may be recorded or stored. The term
“Software” means any computer software programs, firmware and related
documentation specified as a Deliverable Item under the Contract. Throughout
this Contract, “use” shall mean use by any individual having authorized access
to any computer on which the Software is operated and shall include employees
of Purchaser, its agents, representatives or contractors (subject to U.S.
export restrictions, if applicable). Purchaser shall not be required to obtain
any agreement for use of any program or software derived from Software;
provided, however, Contractor shall use its
best efforts to obtain any third party licensor’s agreement to grant this right
to Purchaser.

The term shall be effective from the date of Purchaser’s acceptance of the
Software and shall remain in effect until the use of the Software, as it may
have been updated or enhanced by Contractor from time to time, is permanently
discontinued by Purchaser under the terms of the Contract.

ARTICLE 74 - SOFTWARE MAINTENANCE AND MODIFICATIONS

Contractor shall promptly furnish to Purchaser during the term of the
Contract, at Contractor’s then current charge, if any, all Software
enhancements, new releases, product improvements, system modifications and
updates (“Enhancements”) made available by Contractor to any of its customers.
All such Enhancements shall be considered Software subject to the terms and
conditions of the Contract. Purchaser may incorporate the Enhancements into
the Software or continue using previous versions of the Software, at
Purchaser’s option. Purchaser may, at any time and at its discretion,
discontinue maintenance of the Software. Purchaser shall have the right to
modify the Software. Purchaser shall have all right, title and interest in and
to any such modifications. Should Purchaser not maintain the Software or use
the currant version thereof, or should Purchaser modify the Software
unilaterally, Contractor shall have no warranty or other liability for any
errors or failures resulting directly therefrom.

ARTICLE 75 - SOFTWARE WARRANTY

Contractor warrants to Purchaser that the Software will be free from errors,
will conform to and perform in accordance with the specifications, and will
function properly during the term of the Contract. Contractor also warrants
that there are no copy protection or similar mechanisms within the Software
which will interfere with the grants made in this Contract. Contractor also
warrants that the media containing the Software will be free from defects in
material and workmanship and that the services will be performed in a first
class, workmanlike manner. Contractor further warrants that Purchaser shall
have quiet enjoyment of the Software during the term of the Contract and that
as to Software to which Contractor does not have title, Contractor has a
license interest in the Software sufficient to permit the license of the
Software to Purchaser and has full right, power and authority to license the
Software to Purchaser as provided in the Contract. Contractor also warrants
that the Software will be compatible with and may be used in conjunction with
other Software as required by Exhibit A. Contractor also warrants that if the
Contract states that the Software

 

 

Page 44 of 52

is to be used in conjunction with certain data processing equipment, the
Software shall be compatible with said equipment.

Contractor also warrants that the Software will not, contain any malicious
code, program, or other internal component (e.g., software virus, software
worm, software time bomb, or similar component), which could damage, destroy,
or alter Software, Software media, or hardware or which could, in any manner,
reveal, damage, destroy, or alter any data or other information accessed
through or processed by the Software in any manner or which could adversely
affect the operation of a computer or its memory. Contractor shall immediately
advise Purchaser, in writing, upon reasonable suspicion or actual knowledge
that the Software provided under this Contract may result in the harm
described above.

As Purchaser’s sole and exclusive remedies with respect to any breach of
the foregoing warranties, if the Software, or any portion thereof is or
becomes unusable, totally or in any respect, Contractor will (including, if at
all possible for a Satellite) correct errors, defects and nonconformities and
restore the Software to error-free conforming condition without additional
charge to Purchaser. All warranties shall survive inspection, Acceptance and
payment as provided herein.

As to ground system Software, this warranty shall extend for two (2) years
from Satellite Acceptance. As to Software embedded in a Launched Satellite,
the warranty shall extend for one (1) year from Launch.

Year 2000 Compliance

Contractor represents and warrants that any and all software provided under
this Contract, whether integrated into other products or not, is designed to
be used prior to, during, and after the calendar year 2000 A. D., and that the
software will operate during each such time period without error relating to
date data, specifically including any error relating to, or the product of,
date data which represents or references different centuries of more than one
century. Such software shall be Year 2000 Compliant, meaning that the data
outside of the range of dates 1900-1999 will be correctly processed in any
level of computer hardware of software including, but not limited to,
microcode, firmware, application programs, files and databases.

Any software delivered or made available to Purchaser will be Year 2000
Compliant. Contractor warrants and represents that such software is Year 2000
Compliant whether such software is a delivered item to Purchaser hereunder and
will continue to be for a period of one year after final delivery to
Purchaser. Any such software that is not Year 2000 Compliant is considered a
defective software. Contractor shall immediately, and at no charge to
Purchaser, repair or replace any defective software with compliant software or
any product in which such defective software has been integrated into with a
compliant product through the end of the warranty period. This warranty
provision takes precedence over all other provisions of this Contract with
respect to year 2000 Compliance. Nothing in the warranty provision shall be
construed to limit any other rights at law or in equity that Purchaser may
have with respect to year 2000 Compliance.

ARTICLE 76 - EXPORT CONTROL

Neither Party will use, distribute, transfer or transmit any products,
software or technical information (even if incorporated into other products)
provided under this Contract except in compliance with U.S. export laws and
regulations (the “Export Laws”). Neither Party will, directly or indirectly,
export or reexport the following items to any country which is in the then
current list of prohibited countries specified in the applicable Export Laws
(a) software or technical data disclosed or provided hereunder; or

 

 

Page 45 of 52

(b) the direct product of such software or technical data. Each Party agrees
to promptly inform the other Party in writing of any written authorization
issued by the U.S. Department of State office of export licensing to export or
reexport any such items referenced in (a) or (b). Neither Party will, export
or reexport, directly or indirectly, any technical data or software furnished
hereunder except in compliance with U.S. export laws and regulations (the
“Export Laws”). The obligations stated above in this clause will survive the
expiration, cancellation or termination of this Contract or any other related
agreement.

ARTICLE 77 — RESERVED

ARTICLE 78 — REGISTRATION OF PURCHASER SATELLITE

In accordance with the Convention on Registration of Objects Launched
into Outer Space of the United Nations Organization (UNO), purchaser shall
obtain registration of the Satellite through the state which has
jurisdiction over the Satellite.

ARTICLE 79 — UTILIZATION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES

It is the policy of Purchaser that Minority and Women-Owned Business
Enterprises (MWBEs) shall have the maximum practicable opportunity to
participate in the performance of contracts. Contractor agrees to use its
best efforts to carry out this policy in the award of subcontracts to the
fullest extent consistent with the efficient performance of this Contract.

Contractor agrees to conduct a program which will enable MWBEs to be
considered fairly as subcontractors and suppliers under this Contract.

Contractor shall submit to Purchaser semi-annually reports of subcontracting
with known MWBEs in the form Purchaser’s Contract Administrator may
prescribe. Such periodic reports shall state separately for Minority and for
Women-Owned Businesses, the total payments Contractor made to such MWBEs
during that period for subcontracted work which is attributable to this
Contract.

Contractor further agrees to insert in any Subcontract entered into under this
Contract after the Closing which may exceed five million dollars ($5,000,000),
provisions which shall conform substantially to this Article UTILIZATION OF
MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES. Nothing in this Article shall
affect or diminish the Contractor’s obligations as set forth in the Assignment
Article or any other Article of this Contract.

ARTICLE 80 — ATTACHMENTS

The following Attachments are incorporated in this Contract:

	 	 	 	 	 	 	 
	 

	 	Attachment
	 	A
	 	Payment Plan
	

	 	Attachment
	 	B
	 	Certificate of Spacecraft Final Acceptance and Delivery

 

 

Page 46 of 52

ARTICLE 81 — ENTIRE AGREEMENT

This Contract, including all Exhibits and Attachments hereto, represents the
entire understanding and agreement between the Parties hereto with respect to
the subject matter hereof, supersedes all prior negotiations and agreements
with respect to the subject matter hereof, and can be modified, amended,
supplemented or changed only by an contract in writing which makes specific
reference to this Contract and which is signed by both Contractor and
Purchaser.

 

 

IN WITNESS THEREOF, the Parties have executed this Contract effective as of the Closing date.

	 	 	 	 	 	 	 
	

	 	Space Systems/Loral, Inc.
	 	 	 	Intelsat LLC
	

	 	(“Contractor”)
	 	 	 	(“Intelsat”)
	 
	 	 	 	 	 	 
	By:

	 	/s/ Janet T. Yeung

(Signed)
	 	By:
	 	/s/ Ramu Potarazu

(Signed)
	

	 	 	 	 	 	 
	

	 	Janet T.
Yeung

	 	 	 	Ramu Potarazu

	

	 	(Typed)
	 	 	 	(Typed)
	

	 	 	 	 	 	 
	Title:

	 	Vice President

	 	Title:
	 	President,

	

	 	
	 	 	 	
Intelsat LLC

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

Intelsat Americas 8 Amended and Restated Contract

 

 

Attachment A —
Payment Plan

Launch Services Payment
Plan

	 	 	 	 	 	 	 
	Payment	 	 	 	 	 	 
	Number
	 	Date of Payment
	 	Amount Due
	 	Cumulative Amount

	*****
	 	*****
	 	*****
	 	*****

(Where “L” is the
first day of the July 2004 Launch Month for the Intelsat Americas 8
satellite).

* Payment maybe made directly
by Purchaser to the Launch Agency pursuant to the Three Way Agreement
between Contractor, Purchaser and the Launch Agency dated 5 March
2004.

 

 

Page 49 of 52

Attachment B — Certificate
  of Spacecraft Final Acceptance and Delivery 

	 	 	 
	CERTIFICATE

OF

SPACECRAFT FINAL ACCEPTANCE AND DELIVERY
    	 	CERTIFICATION NO:

    

	 	CONTRACT:

      
      

	 	DATE:

      
      

	 	FLIGHT NO.:

      
      

	 	LAUNCH LOCATION:
 

   

  

In accordance with the contract, this
  document, when signed by the
appropriate parties, reflects Intelsat’s and SS/L’s certification that
the Delivery and Final Acceptance of the Spacecraft identified herein
has occurred and that the Spacecraft conforms to all of the terms andconditions
of the Contract except as may be provided hereinbelow under acceptance conditions.

Delivery and Final Acceptance Conditions:

The Intelsat Americas 8 Spacecraft has been Delivered and Final Acceptance
is complete with the understanding that the
following actions items require closing:

All action items are closed.

There are no open Requests for Waiver affecting the spacecraft.

The dry mass was officially
determined by measurement on the calibrated load ring in [location] bulding on [date].

Spacecraft Final Dry Mass:

	

	SS/L

Inspected by:

	 	Date:
	 	Intelsat

Inspected by:
	 	Date:
	
      

    

	SS/L CERTIFICATION:

	 	 	 	Intelsat APPROVALS:	 	 
	
      

    

	Executive Program Director:

	 	 	 	Program Director:	 	 
	
      

    

	Date:

	 	 	 	Date:	 	 
	
      

    

	Contract Manager:

	 	 	 	Contract Manager:	 	 
	
      

    

	Date:

	 	 	 	Date:	 	 
	
      

    

	Intelsat (Bermuda) Ltd.

	 	 	 	 	 	Date:
	

 

 

Intelsat Americas 8 Satellite Program

EXHIBIT A — STATEMENT OF WORK (SOW)

8 March, 2004

Revision 1

This document contains data and information proprietary to Space Systems/Loral.
This data shall not be disclosed, disseminated, or reproduced, in whole or in
part, without the express prior written consent of Space Systems/Loral.

 

 

**************************************

29 pages of Exhibit A to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

Intelsat Americas 8 Satellite Program

EXHIBIT B — Performance Specification

Revision 3

8 January 2004

Prepared for:

Intelsat LLC

Prepared by:

SPACE SYSTEMS/LORAL

3825 Fabian Way

Palo Alto, CA 94303-4604

This document contains data and information proprietary to Space Systems/Loral.
This data shall not be disclosed, disseminated, or reproduced, in whole or in
part, without the express prior written consent of Space Systems/Loral.

 

 

**************************************

84 pages of Exhibit B to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

Telstar 8 Satellite Program

EXHIBIT C — PRODUCT QUALITY ASSURANCE
PLAN

10 December 1999

Prepared by:

Loral Skynet

500 Hills Drive

Bedminster, NJ 07921

Prepared by:

S PA

3825 Fabian Way

Palo Alto, CA 94303-4604

This document contains data and information proprietary to Space Systems/Loral.
This data shall not be disclosed, disseminated, or reproduced, in whole or in
part, without the express prior written consent of Space Systems/Loral.

 

 

**************************************

89 pages of Exhibit C to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

Telstar 8 Satellite Program

EXHIBIT D — Spacecraft Test Plan

30 January 2002

Prepared for:

Loral Skynet

500 Hills Drive

Bedminster, NJ 07921

Prepared by:

S PA

3825 Fabian Way

Palo Alto, CA 94303-4604

This document contains data and information proprietary to Space Systems/Loral.
This data shall not be disclosed, disseminated, or reproduced, in whole or in
part, without the express prior written consent of Space Systems/Loral.

 

 

**************************************

145 pages of Exhibit D to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

	 	 	 
	spa

	 	E208603 Rev 2

	 	 	 
	SPACE SYSTEMS/LORAL

	DOC CODE SE	 
	 	 	 
	3825 Fabian Way

	Specification No. E208603 Rev 2	 
	Palo Alto, California 94303-4697
	 	 
	CAGE ODJH2
	 	 

Performance Specification

For

TELSTAR8

Communication Simulator Unit

Loral Proprietary Information

	 	 	 
	This data is being furnished pursuant to the provisions of the TELSTAR Purchase
Contract. SKYNET shall have the right to duplicate, use or disclose the data to
the extent specified in the Purchase Contract.

	 
	PROGRAM

	 	PRIME CONTRACT NUMBER
	TELSTAR8

	 	J858
	 
	 	 
	 
	Project Engineer

	 	SYSTEMS ENGINEERING MANAGER
	Jack Cooper

	 	Ron Pon
	 
	 
	 	 
	GROUND SYSTEM ENG. Supervisor

	 	PRODUCT ASSURANCE
	Kam Wong

	 	George Mirabella
	 
	 
	 	 
	PROGRAM OFFICE

	 	 
	Dom Damodharan
	 	 
	 
	 
	 	 
	PAYLOAD ENGINEER

	 	RELEASE
	Anson Lai

	 	DATE          
       Page 1 of 29

	 	 
	 	Confidential Treatment

	 	Requested by Intelsat, Ltd.

1

 

***********************************

	 	 	 
	28 pages of Exhibit E to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

	 	 	 
	

	 	DOC CODE MD
	S

	 	Document No. E208303
	

	 	Revision 1

3825 Fabian Way

Palo Alto, California 94303-4697

CAGE 0DJH2

TELSTAR 8

DYNAMIC SPACECRAFT SIMULATOR

SYSTEM REQUIREMENTS

SPECIFICATION

	 
	“Information included herein is controlled under the International Traffic in
Arms Regulations (ITAR) by the U.S. Department of State. Export or transfer of
this information to a Foreign Person or foreign entity requires an export
license issued by the U.S. Department of State or an ITAR exemption prior to
the export, transfer or re-export.”

	 	 	 
	PROGRAM

          TELSTAR 8

	 	PRIME CONTRACT NUMBER
	 
	 	 
	   

TELSTAR 8 PMO EXECUTIVE DIRECTOR       
   DATE

	 	   

SYSTEM SIMULATION SELECTION SUPERVISOR
    
 DATE
	 
	 	 
	   

SOFTWARE ASSURANCE          
     
                  
  DATE

	 	   

PROJECT LEAD SYSTEM SIMULATION SECTION     DATE
	 
	 	 
	   

	 	RELEASE

	

	 	DATE          
                  
               
            
              
Page 1 of 34

This document contains proprietary information which, except for the written permission of Space

Systems/Loral, shall neither be published, nor disclosed to others, nor used for any purpose other than the

evaluation of this document; nor shall the document itself be duplicated in whole or in part.

	 	 
	 	Confidential Treatment

	 	Requested by Intelsat, Ltd.

1

 

***********************************

	 	 	 
	33 pages of Exhibit F to Exhibit 10.36 have been omitted and filed separately
with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

 

 

	 	 	 
	

	 	
Document Code: MD
	3825 Fabian Way
	 	 
	
DOCUMENT:
	 	 
	
Palo Alto, California 94303-4697
	 	 
	
Revision 1
	 	 

Skynet

Telemetry Archive and Presentation System

Exhibit G

This system contains data and information proprietary to Space Systems/Loral. The data shall not be disclosed, disseminated, or
reproduced, in whole or in part, without the express prior written consent of Space Systems/Loral.

	 	 	 
	 
	 	 
	

	 
	PROGRAM: SKYNET TAPS

	 	PRIME CONTRACT NUMBER:
	

	 
	 	 
	

	 
	 	 
	

	 
	 	 
	

	 
	 	 
	

	 
	 	 
	

	 	RELEASE:
	

	 	DATE:   30 March 2000
	

Confidential Treatment
Requested by Intelsat, Ltd.

 

*************************************************

6 pages of Exhibit G to Exhibit 10.36 have been omitted and
filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.exv10w37

 

Exhibit 10.37

	 	 	 	CONFIDENTIAL TREATMENT REQUESTED

The asterisked (“*****”) portions of this document

have been omitted and filed separately with the Securities

and Exchange Commission pursuant to a request for

confidential treatment.

ECHOSTAR 9 AGREEMENT – Amended and Restated

This Amended and Restated Agreement is made and effective as of 16 November
2001 by and between Loral Skynet and Space Systems/Loral, regarding the
EchoStar 9 Satellite Program and amends and restates that certain Agreement
(“Agreement”) entered into as of February 22, 2000 (the “Effective Date of
Contract” or “EDC”) by and between Space Systems/Loral, Inc., a corporation
organized and existing under the laws of the State of Delaware, having a place
of business at 3825 Fabian Way, Palo Alto, California 94303 (hereinafter
referred to as “SS/L”) and Loral Skynet, a division of Loral SpaceCom
Corporation, a corporation organized and existing under the laws of the State
of Delaware, and having a place of business at 500 Hills Drive, Bedminster, New
Jersey 07921 (hereinafter referred to as “Skynet”).

RECITALS

     Whereas, on February 22, 2000 SS/L entered into a contract with EchoStar
Orbital Corporation (“EchoStar”), pursuant to which SS/L agreed to
manufacture one (1) communications satellite, known as EchoStar 9 (the
“Satellite”), to be delivered on-orbit, risk management therefor, and certain
ground equipment and support and training services (the “Satellite
Contract”);

     Whereas, the EchoStar 9 Satellite will include three payloads,
including: a Ku-band payload, a Ka-band payload, and a C-band payload;

     Whereas, on February 22, 2000 Skynet entered into a contract with
EchoStar (the “Condominium Contract”), pursuant to which, among other things,
Skynet agreed to pay ***** of the ***** total purchase price of the Satellite
Contract directly to SS/L in exchange for ownership of the C-Band payload and
an undivided ownership interest in the common elements of the Satellite bus
(collectively, the “Skynet Payload”);

     Whereas, SS/L and Skynet have conducted negotiations regarding SS/L’s
construction of the Skynet Payload to Skynet’s design specifications, and
have

	 	 	 	 	 
	 
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	1
	
	 	AMENDMENT #2	 	 

 

 

agreed that Skynet’s purchase price therefor shall be changed to ***** and

     Whereas, SS/L and Skynet desire to amend the Agreement to recognize the
price increase of ***** for incorporating changes to the C-band antenna
pattern, as described in Exhibit B, Echo IX Performance Specification, dated
October 18, 2000, and as agreed to in Amendment No. 1, dated 3 August 2001.

     Whereas, SS/L and Skynet desire to purchase three (3) Command Encryption
Units in accordance with SS/L letter: 2001-ECHO-0322LZ, dated 21 August 2001
for a purchase price of *****. Skynet’s total purchase price is hereby changed
to *****.

     Whereas, SS/L and Skynet now desire to enter into this Agreement in order
to memorialize this change and to define their respective rights and
obligations vis-a-vis each other with respect to the Satellite.

AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are acknowledged, SS/L and Skynet hereby agree as
follows:

	1.	 	Definitions and Exhibits.
	 
	 	 	A.   Except as otherwise set forth herein, all defined terms used or
referenced, either directly or indirectly, in this Agreement shall have
the same meaning as in the Satellite Contract; provided, however, that
wherever applicable and appropriate, Satellite Contract definitions
limited in their scope to the Ka-band and/or Ku-band payload shall instead be
based on the C-band payload.

	 	B.	 	As of the date this Agreement is executed, the parties
acknowledge
that certain exhibits to the Satellite Contract (Performance
Specification, Statement of Work, Product Assurance Plan and Test
Plan) have not been finalized and agreed upon between SS/L and
EchoStar. When such exhibits are finalized and agreed upon by

	 	 	 	 	 
	 
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	2
	
	 	AMENDMENT #2	 	 

 

 

	 	 	 	SS/L and EchoStar, such exhibits shall also, unless this
Agreement expressly provides to the contrary, govern the
respective obligations of SS/L and Skynet under this Agreement.
Such exhibits shall not be agreed upon and finalized by SS/L
without the prior written consent of Skynet, which consent shall
not be unreasonably withheld. SS/L and Skynet shall use
reasonable best efforts to finalize all such exhibits within
thirty (30) days after this Agreement is executed.

	2.	 	Payment Obligation Of Skynet.

	 	A.	 	Skynet’s share of the price to be paid to SS/L for
Deliverable Items 1 through 4 set forth in Article 3.1 of the Satellite
Contract, including three (3) Command Encryption Units, shall be a firm fixed price of
***** (the “Firm Fixed Price”).
	 
	 	B.	 	The Firm Fixed Price is subject to an equitable adjustment
as a result of any Skynet-requested changes, submitted
through EchoStar to SS/L, in the scope of the design and/or construction
of: (i) the C-Band payload and/or (ii) the elements of the satellite
common to Skynet and EchoStar. The baseline design on which
the Firm Fixed Price was established, and against which any
modifications will be evaluated in order to determine whether an
equitable adjustment, to the Firm Fixed Price should
be made pursuant to this Section 2(B) is the Baseline
Performance Specification attached hereto as Attachment A
and by this reference incorporated herein. Any such
adjustment will be reflected in an amendment to this
Agreement, and the Payment Plan will be correspondingly
amended.
	 
	 	C.	 	The Firm Fixed Price shall be paid by Skynet to SS/L in
accordance with the payment terms set forth in Article 5 of the
Satellite Contract, with the following modifications:

	 	 	 	 	 
	 
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	3
	
	 	AMENDMENT #2	 	 

 

 

	 	i.	 	The phrase Contractor shall refer to
SS/L and the phrase Purchaser shall refer to Skynet; and
	 
	 	ii.	 	The Payment Plan attached hereto as
Attachment B shall replace the Payment Plan attached to the
Satellite Contract.

	 	D.	 	Skynet’s payment obligation hereunder is subject to the
terms and conditions of this Agreement and the Satellite
Contract, which shall for these purposes be interpreted as if
Skynet were a party thereto.

	3.	 	Liquidated Damages.

SS/L hereby agrees that for each day that liquidated damages are owed by SS/L
to EchoStar under Article 22 of the Satellite Contract, SS/L shall under the
same terms and conditions, pay corresponding liquidated damages to Skynet (in
an amount not to exceed ***** as specified below:

    	 	 	 	 	 	 	 	 	 
	

	Number of Days 
	 	Per Day 
	 	Maximum 

	*****
	 	 	*	****	 	 	*	****
	

	4.	 	Total Loss and Partial Loss; Risk Management Insurance.

	 	A.	 	With limited exceptions, pursuant to Articles 10.3 and
10.4 of the Satellite Contract, if the Satellite, focusing
solely on the Ku-band and Ka-band payloads, suffers a Partial Loss
or Total Loss during the period starting at Intentional Ignition
and ending one (1) year after Launch, then SS/L has the obligation
to reimburse certain monies to EchoStar or provide a Replacement
Satellite. In addition, unless EchoStar exercises the option set
forth in Article 29.2 of the Satellite Contract, SS/L is
required, pursuant to Articles 39 or 29.3, to purchase risk
insurance for the purpose of satisfying SS/L’s obligations in the
event of a Total Loss or Partial Loss (the “Policy”).

	 	 	 	 	 
	

	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	4
	 
	 	AMENDMENT #2	 	 

 

 

	 	B.	 	SS/L hereby agrees that if, during the period starting at
Intentional Ignition and ending one year after Launch, the C-band payload on
the Satellite suffers a Partial Loss or Total Loss (as such terms,
as well as the terms Available Communications Capacity and Stated
Communications Capacity, are herein modified for the purpose of
this Agreement to focus solely on the C-band payload, and not the
Ku-band or Ka-band payloads) then SS/L shall make payment to
Skynet or provide a Replacement Satellite, in a manner that is
identical (except as to payload and amounts to be reimbursed) to
the obligations, if any, that SS/L owes to EchoStar under Article
10 of the Satellite Contract. Skynet agrees and understands that if
EchoStar elects to directly purchase risk insurance instead of
such insurance being purchased by SS/L, then SS/L’s obligation under
this Article 4(B) will terminate. Skynet also agrees and understands
that a replacement Satellite will not be provided unless: (i) the
entire Satellite, and not just the C band payload, is determined to
be a Total Loss, and (ii) both Skynet and EchoStar direct SS/L to
provide a Replacement Satellite.
	 
	 	C.	 	For the purpose of satisfying SS/L’s obligation in Article 4(B) above,
and unless EchoStar elects to directly purchase risk insurance,
SS/L shall insure the C-band payload in the same manner and for
proportionate amounts as SS/L insures EchoStar’s Ku-band and
Ka-band payloads.

	5.	 	In Orbit Incentives.
	 
	 	 	A. The ***** Firm Fixed Price set forth in Section 2 above includes
***** of In Orbit Incentives. Skynet hereby agrees to pay to Contractor
the In Orbit Incentives, plus ***** per annum accruing from the
completion of the Satellite Acceptance Review, for the in-orbit
performance of the C-band Payload on the Satellite, and in accordance
with Article 13.2 of the Satellite Contract.

	 	 	 	 	 
	
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	5
	 
	 	AMENDMENT #2	 	 

 

 

	 	 	B.   The terms set forth in Article 13 of the Satellite Contract shall
govern the respective rights and obligations of the parties to this
Agreement with respect to the payment of In Orbit Incentives, with the
following changes: (i) In Orbit Incentives shall be payable as set forth
herein and in Attachment A attached hereto (ii) the term ‘Contractor’
shall refer to SS/L and the term ‘Purchaser’ shall refer to Skynet;
(iii) ***** shall replace ***** throughout; (iv) SS/L shall earn the In
Orbit Incentives solely on the basis of the performance of the C-band
payload (i.e. the performance of the Ka-band and Ku-band payloads shall
be irrelevant); and (v) the Criteria to determine the In Orbit
Incentives will be the same Criteria used to measure the in orbit
incentives for the Ku-band and Ka-band payloads.
	 
	6.	 	Skynet/EchoStar Agreement.

If the overall Satellite experiences an anomaly which will affect the use of
one or more Ku/Ka-band Transponders and/or C-band Transponders, but not both,
and a decision must be made as to which Transponder(s) shall be affected, then
Skynet and EchoStar shall jointly make such decision in accordance with the
terms and conditions of the Condominium Contract. If this situation arises,
SS/L shall have no obligation to make payment under Section 4 of this
Agreement, or to make a reduction in the In-Orbit Incentives, until such
decision is jointly communicated to SS/L by Skynet and EchoStar. Skynet agrees
and acknowledges that it may only claim a right to payment (or a reduction in
the In Orbit Incentives) from SS/L for this type of an anomaly to the extent
that the joint Skynet/EchoStar decision impacts Skynet’s C-Band payload.

	7.	 	Termination.
	 
	 	 	A. In the event that EchoStar rightfully terminates the Satellite
Contract at any time prior to Acceptance of the Satellite and, in the
event such termination is based on SS/L’s default, if SS/L does not
cure such default within the time frame prescribed in the Satellite
Contract, then Skynet shall, at its option, elect either: (i) to
terminate this Agreement by written notice to SS/L, in which event SS/L
shall promptly refund to Skynet

	 	 	 	 	 
	 
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	6
	
	 	AMENDMENT #2	 	 

 

 

	 	 	the total amount paid by Skynet to SS/L to date, and Skynet shall have no
further liability to SS/L, including but not limited to any obligation to
make any further payments to SS/L hereunder, or (ii) if EchoStar does not,
pursuant to Article 23.3 of the Satellite Contract, request that SS/L
deliver the partially completed Satellite to EchoStar, to procure the entire
Ka/Ku/C-Band Satellite from SS/L pursuant to the same terms and conditions,
mutatis mutandis, as in the terminated Satellite Contract, including but not
limited to price.
	 
	 	 	B.   In the event that SS/L rightfully terminates the Satellite Contract
due to EchoStar’s default at any time prior to Acceptance of the
Satellite, then Skynet shall, at its option, by written notice to SS/L elect
either; (i) to terminate this Agreement, in which event Skynet shall be
responsible to pay SS/L for the total non-refundable costs that SS/L has
incurred to date for the Skynet portion of the program, including reasonable
termination costs actually paid to SS/L’s vendors, but no amount that will
result in SS/L making a profit from Skynet under this Agreement, minus the
fair market value of any deliverable items or contract work-in-progress
retained by SS/L relating to the Skynet Payload, and Skynet shall have no
further liability to SS/L, including but not limited to any obligation to
make any further payments to SS/L hereunder; SS/L shall promptly refund any
amount(s) paid by Skynet to SS/L in excess of such amount, or (ii) to direct
SS/L to complete and deliver to Skynet, on orbit, the entire Satellite
(Ka/Ku/C-Band) pursuant to the same terms and conditions, mutatis mutandis,
as in the terminated Satellite Contract, including but not limited to price;
provided however, that such price shall be reduced by an amount equal to any
termination fees paid by EchoStar to SS/L as a result of SS/L’s termination
of the Satellite Contract.
	 
	 	 	C.   Skynet understands that SS/L must build the Satellite for EchoStar
irrespective of Skynet’s performance hereunder. Therefore, upon this
Agreement being executed, Skynet shall be fully obligated to proceed with the
provisions of this Agreement except as provided in Sections 7(A) and 7(B)
above.

	 	 	 	 	 
	
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	7
	 
	 	AMENDMENT #2	 	 

 

 

	8.	 	Cause of Action/Defense.

Under this Agreement, Skynet may assert any cause(s) of action or defense(s)
against SS/L based on Skynet’s C-Band payload and its proportionate share of
the common elements of the Satellite as if Skynet were a party to the
Satellite Contract and as if the relevant terms and conditions in the
Satellite Contract specifically mentioned Skynet and/or the C-band payload;
Skynet may assert such cause(s) of action and/or defense(s) independently,
without regard to any action or inaction taken by EchoStar with respect to any
similar cause(s) of action and/or defense(s) it may have against SS/L.

	9.	 	Proprietary Information.

SS/L and Skynet agree to treat the Proprietary Information of the other party
pursuant to the terms and conditions set forth in Article 35 of the Satellite
Contract.

	10.	 	Arbitration.

Contractor and Skynet agree that any dispute arising between them hereunder
will be settled pursuant to the terms and conditions of Article 25 of the
Satellite Contract.

	11.	 	Limitation of Liability

Each party’s liability to the other under this Agreement shall be governed by
the limitations provided in Article 34 of the Satellite Contract, with the
following changes: (i) the term ‘Contractor’ shall refer to SS/L and the term
‘Purchaser” shall refer to Skynet, and (ii) notwithstanding anything to the
contrary in such Article 34, the total liability of either party shall be
limited to an amount equal to the Firm Fixed Price of this Agreement.

	12.	 	Notice.

Any notice or communication required or permitted under this Agreement shall
be in writing and sent to the address set forth for each party in the Preamble
hereto in compliance with Article 38 of the Satellite Contract.

	 	 	 	 	 
	
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	8
	 
	 	AMENDMENT #2	 	 

 

 

	13.	 	Entire Agreement.

This Agreement: (a) is the complete agreement of the parties concerning the
subject matter hereof and supersedes any prior such agreements; (b) may not be
amended or in any manner modified except in writing signed by the parties; and
(c) shall be governed by and construed in accordance with the laws of the
State of New York without regard to its choice of law provisions. If any
provision of this Agreement is found to be unenforceable, the remainder shall
be enforced as fully as possible and the unenforceable provision shall be
deemed modified to the limited extent required to permit its enforcement in a
manner most closely approximating the intention of the parties as expressed herein.

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date
set forth above.

	 	 	 	 	 	 	 
	Space Systems/Loral, Inc.
	 	Loral Skynet, a division of

Loral SpaceCom Corporation
	 
	 	 	 	 	 	 
	By:

	 	/s/ R.A. Haley
	 	By:
	 	/s/ CT Brown
	

	 	
	 	 	 	

	

	 	R.A. Haley	 	 	 	CT Brown
	 
	 	 	 	 	 	 
	Its:

	 	Senior Vice President and

Chief Financial Officer
	 	Its:
	 	Senior Contract Manager
	 	 	 	 	 	 	 

[Attachment A: Baseline Performance Specification; Attachment B: Payment Plan
(including orbital information), Amendment #2 ]

	 	 	 	 	 
	 
	 	Loral Skynet Proprietary	 	 
	
	 	Space Systems / Loral Proprietary
	 	9
	
	 	AMENDMENT #2	 	 

 

 

	 	 	 	 	 
	
	 	SKYNET PAYMENT PLAN
	 	Amendment No. 2
	 
	 	ATTACHMENT A	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PAYMENT	 	 	 	 
	DUE DATE
	 	NUMBER
	 	MILESTONE
	 	AMOUNT DUE

	 	*	****	 	 	1	 	 	EDC and
delivery of Equipment Categorization List
	 	 	*	****
	 	*	****	 	 	2	 	 	Sign Launch Vehicle Contract
	 	 	*	****
	 	*	****	 	 	3	 	 	Deliver Program Management Plan and Place Subcontract order for TWTA’S
	 	 	*	****
	 	*	****	 	 	4	 	 	Conduct PDR
	 	 	*	****
	 	*	****	 	 	5	 	 	Complete Initial Thermal Design
	 	 	*	****
	 	*	****	 	 	6	 	 	Time Payment (Scheduled launch minus 18 months)
	 	 	*	****
	 	*	****	 	 	7	 	 	Conduct CDR
	 	 	*	****
	 	*	****	 	 	8	 	 	Complete Payload Panel Layout Design
	 	 	*	****
	 	*	****	 	 	9	 	 	Complete Antenna Analyses
	 	 	*	****
	 	*	****	 	 	10	 	 	Start Antenna Reflector Fabrication
	 	 	*	****
	 	*	****	 	 	11	 	 	Start Comm Panel RF Tests
	 	 	*	****
	 	*	****	 	 	12	 	 	Time Payment (Scheduled launch minus 9 months)
	 	 	*	****
	 	*	****	 	 	12A	 	 	Modify C-Band Antenna Pattern (Amend #1 to Agreement)
	 	 	*	****
	 	*	****	 	 	13	 	 	Start Antenna Tower Fabrication
	 	 	*	****
	 	*	****	 	 	14	 	 	Start Integration of Tower Antennas
	 	 	*	****
	 	*	****	 	 	14A	 	 	Command Encryption Units ATP (Amend #2 to Agreement)
	 	 	*	****
	 	*	****	 	 	15	 	 	Start Thermal Vacuum Testing
	 	 	*	****
	 	*	****	 	 	16	 	 	Complete CATR
	 	 	*	****
	 	*	****	 	 	17	 	 	Complete Satellite Pre-Ship Review (SPSR)
	 	 	*	****
	 	*	****	 	 	17A	 	 	Ship Command Encryption Units (qty 2) (Amend #2 to Agreement)
	 	 	*	****
	 	*	****	 	 	18	 	 	Ship Satellite to Launch Site
	 	 	*	****
	 	 	 	 	 	 	 	 	     SUB-TOTAL
	 	$	*	****
	 	 	 	 	 	 	 	 	In-Orbit Incentives (Paid over ***** @ ***** per annum)
	 	$	*	****
	 	 	 	 	 	 	 	 	Total Insurance Payments (to be paid in installments thirty (30) days after Purchaser
receives the relevant invoice from the Contractor (which invoice shall be issued by
Contractor no earlier than Contractor receives the corresponding invoice from the insurer)
or three business days prior to the relevant due date for payment of the insurer,
whichever occurs later).
	 	$	*	****
	 	 	 	 	 	 	 	 	GRAND TOTAL PRICE
	 	$	*	****

 

 

Execution Copy

AMENDMENT NUMBER 1

TO

ECHOSTAR 9/TELSTAR 13 AMENDED AND RESTATED AGREEMENT

This
Amendment Number 1 (the “Amendment”) to the Amended and Restated
Agreement (the “Agreement”), effective as of 7 July 2003, is made by and
between Loral Skynet, a division of Loral SpaceCom Corporation, a corporation
organized and existing under the laws of the State of Delaware and having a
place of business at 500 Hills Drive, Bedminster, New Jersey 07921
(hereinafter referred to as “Skynet”) and Space Systems/Loral, Inc. a
corporation organized and existing under the laws of the State of Delaware and
having a place of business at 3825 Fabian Way, Palo Alto, California 94303
(hereinafter referred to as “SS/L”) regarding the EchoStar 9/Telstar 13
Satellite Program and amends that certain Amended and Restated Agreement
entered into between SS/L and Skynet as of 16 November 2001, which amended and
restated that certain Agreement (“Original Agreement”) entered into between
SS/L and Skynet as of February 22, 2000 (the “Effective Date of Contract” or
“EDC”).

RECITALS

WHEREAS,
on February 22, 2000, SS/L and EchoStar Orbital Corporation entered
into a contract pursuant to which SS/L agreed to manufacture one (1)
communications satellite, known as EchoStar 9 (the “Satellite’’), to be
delivered on-orbit, risk management therefor, and certain ground equipment and
support and training services (the “Original Satellite Contract”).

WHEREAS,
on February 22, 2000, Skynet and EchoStar Orbital Corporation entered
into an agreement (the “Original Condosat Agreement”), pursuant to which,
among other things, Skynet agreed to pay a portion of the total purchase price
of the Original Satellite Contract directly to SS/L in exchange for ownership
of the C-Band payload and an undivided ownership interest in the common
elements of the Satellite bus (collectively, the “Skynet Payload”);

WHEREAS, on February 22, 2000, SS/L and Skynet entered into the Original
Agreement setting forth the respective rights and obligations between SS/L and
Skynet as contemplated by the Original Condosat Agreement:

WHEREAS, on 1 July 2003, SS/L and EchoStar Orbital Corporation II (successor
to EchoStar Orbital Corporation, and hereinafter referred to as “EchoStar”)
entered into an Amended and Restated Contract (the “Satellite Contract”),
amending and restating the Original Satellite Contract to modify the Satellite
delivery, price, and other terms and conditions of the Original Satellite
Contract, including converting to an on ground Satellite delivery obligation,
with risk of total or partial loss or damage of the satellite transferred to
EchoStar and Skynet, as appropriate, at Launch (except for certain orbital
performance incentive obligations), with any and all Launch and post launch
insurance to be provided by SS/L as an option on a pass thru basis;

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WHEREAS, on July 7, 2003, Skynet and EchoStar entered into an Amended and
Restated Agreement (the “Condosat Agreement”) amending and restating the
Original Condosat Agreement to reflect the modifications made to the Original
Satellite Contract by the Satellite Contract:

WHEREAS, SS/L and Skynet now desire to enter into this Amendment Number 1 in
order to amend the Agreement so as to conform and reflect the necessary and
appropriate modifications based on the changes effected by the Satellite
Contract and the CondoSat Agreement;

AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are acknowledged, SS/L and Skynet hereby agree as
follows:

	1.	 	Definitions and Exhibits

Except as otherwise set forth herein, all defined terms used or referenced,
either directly or indirectly, in this Agreement shall have the same meaning
as in the Satellite Contract; provided, however, that whenever applicable and
appropriate, Satellite Contract definitions limited in their scope to the
Ka-band and/or Ku-band payload shall instead include the C-band payload.

	2.	 	Payment Obligation of Skynet
	 
	 	 	A.   Skynet’s share of the price to be paid to SS/L for Deliverable Items 1
through 5 set forth in Article 3.1 of the Satellite Contract, including
without limitation three (3) Command Encryption Units and SS/L providing Skynet
with access to SS/L’s Spacecraft Trending Analysis and Reporting (STAAR)
payload data, shall be ***** is exclusive of the insurance premium in the amount of
***** for launch and in-orbit insurance procured by SS/L as Deliverable
Item 6 of Article 3.1 of the Satellite Contract, (the “Insurance Policy
Premium”), which Insurance Policy Premium shall be passed through to
Skynet as incurred by SS/L in accordance with Article 4 hereof.
	 
	 	 	B.   The Firm Fixed Price is subject to future equitable adjustment as a
result of any Skynet requested changes, submitted through EchoStar to SS/L, in
the scope of the design and/or construction of: (i) the C-Band payload and/or
(ii) the elements of the Satellite common to Skynet and EchoStar. The Firm Fixed
Price is based on the Performance Specification attached as Exhibit B to the
Satellite Contract. Any equitable adjustment hereto based on the foregoing shall
be reflected in an amendment to this Agreement, and the Payment Plan will be
amended accordingly.

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	 	 	C.   The Firm Fixed Price shall be paid by Skynet to SS/L in accordance
with the payment terms set forth in Article 5 of the Satellite Contract, with
the following modifications:

	 	i.	 	The phrase, “Contractor” shall refer
to SS/L and the phrase “Purchaser” shall refer to Skynet.
	 
	 	ii.	 	The Payment Plan attached hereto as
Attachment A shall replace the Payment Plan attached to the
Satellite Contract.

	 	 	D.   Skynet’s payment obligation hereunder is subject to the terms and
conditions of this Agreement and the Satellite Contract, which shall for
these purposes be interpreted as if Skynet were a party hereto.
	 
	3.	 	Liquidated Damages

SS/L hereby agrees that for each day that liquidated damages are owed by SS/L
to EchoStar under Article 22 of the Satellite Contract, SS/L shall, under the
same terms and conditions, pay liquidated damages to Skynet, as its sole remedy
in the event of delays in delivery (in an amount not to exceed ***** as
specified below:

	 	 	 	 	 	 	 	 	 
	

	Number of Days	 	Per Day	 	Maximum
	

	1-120
	 	 	*	****	 	 	*	****
	

	4.	 	Risk Management
	 
	 	 	A.   UPON AND AFTER LAUNCH OF THE LAUNCH VEHICLE FOR THE SATELLITE,
SS/L’S SOLE FINANCIAL RISK, AND THE SOLE AND EXCLUSIVE REMEDIES OF
SKYNET OR ANY PARTY ASSOCIATED WITH SKYNET, WITH RESPECT TO THE
CONDITION, USE OR PERFORMANCE OF SUCH SATELLITE (INCLUDING WITH RESPECT
TO ANY ACTUAL OR CLAIMED DEFECT CAUSED OR ALLEGED TO BE CAUSED AT ANY
TIME BY SS/L OR ANY OF ITS SUBCONTRACTORS), SHALL BE EXCLUSIVELY AS SET
FORTH IN ARTICLE 5 HEREOF. IN ALL CASES CONTRACTOR’S LIABILITY SHALL BE
SUBJECT TO THE LIMITATION OF LIABILITY SET FORTH IN ARTICLE 11 HEREOF.
SS/L MAKES NO WARRANTY AS TO THE PERFORMANCE OF ANY LAUNCH VEHICLE.

3 
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	 	 	B.    SS/L shall have no liability for any partial or total loss occurring to the
Satellite or Skynet’s interest therein from and after Launch of the Satellite
except and to the extent set forth in Article 5 hereof. The parties acknowledge that
SS/L has obtained a quote for launch and/or in-orbit insurance on behalf of Skynet
(the “Insurance Policy”). Skynet has authorized SS/L to procure, on Skynet’s
behalf, such Insurance Policy, including all associated terms, limitations, exclusions
and deductibles set forth therein. The total sum insured in the Insurance Policy is
******. Skynet shall pay to SS/L any and all Insurance Policy Premium amounts at
least five (5) business days prior to the date that the corresponding amount is
due from SS/L under the Insurance Policy. SS/L shall have no obligation to
make any payments under the Insurance Policy prior to the receipt of the
corresponding payments from Skynet. and any failure on the part of Skynet to
make any payment required under this Article 4 (B), that results in the
Insurance Policy failing to attach or to lapse, shall relieve SS/L of any and
all obligation to obtain/maintain such Insurance Policy as required herein.
	 
	 	 	C.   Skynet shall be the named insured and loss payee under the Insurance
Policy. In the event that, notwithstanding the foregoing, any loss is paid to
SS/L under the Insurance Policy, then SS/L agrees to hold such amounts in trust for
Skynet and to pay such amounts to Skynet within three (3) business days after
SS/L receives the corresponding payment from the insurers and, for the
avoidance of doubt, SS/L shall only be obligated to make payment to Skynet under this
Article 4 to the extent that SS/L receives payment from the
insurers. Notwithstanding the foregoing, SS/L shall reasonably cooperate with Skynet in
recovering all amounts due from the insurers under the Insurance Policy, in
which case Skynet shall be entitled to direct and control any litigation and
settlement negotiations arising in connection therewith and Skynet shall (whether incurred
by Skynet or SS/L) pay all costs of litigation and administrative costs and
expenses, including attorney’s fees, incurred in connection with the
prosecution of any such litigation. Skynet shall comply with all material terms and conditions
in the Insurance Policy necessary for the payment of claims, including any terms
and conditions relating to salvage.
	 
	 	 	D.   SS/L shall obtain and at all times maintain insurance coverage against all
risks of loss and damage to a Satellite and its components during the period
from EDC until Launch in an amount equal to the then current amount necessary to pay
all amounts owing to Skynet hereunder in the event of loss or destruction of
the Satellite.
	 
	 	 	E.   SS/L shall cause Skynet to be named as an additional named insured under
any and all applicable insurance policies procured by the Launch Agency with
respect to the Launch of any Satellite.

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	5.	 	In Orbit Incentives
	 
	 	 	A.   The Firm Fixed Price set forth in Section 2 above includes *****.
Skynet hereby agrees to pay to SS/L the in Orbit Incentives, plus compound
interest at ****** accruing from the completion of the Satellite Acceptance
Review, for the in-orbit performance of the C-Band Payload on the
Satellite, and in accordance with article 13.2 of the Satellite
Contract.
	 
	 	 	B.   The terms set forth in Article 13 of the Satellite Contract shall
govern the respective rights and obligations of the parties to this Agreement with
respect to the payment of In Orbit Incentives, with the following changes: (i) In
Orbit Incentives shall be payable as set forth herein and Attachment A hereto;
(ii) the term, “Contractor” shall refer to SS/L and the term, “Purchaser” shall
refer to Skynet; (iii) ***** (iv) SS/L shall earn the In Orbit Incentives solely
on the basis of the performance of the C-Band payload (i.e., the
performance of the Ka-Band and Ku-Band payloads shall be
irrelevant); and (v) the Criteria to determine the In Orbit Incentives
shall be: for each of the 24 Skynet C-Band Transponders that becomes a Transponder
Failure, the In Orbit Incentives will be reduced by an amount equal to: ******. A
failure of any Ka-Band or Ku-Band Transponders would not affect this
formula.
	 
	6.	 	Skynet/EchoStar Agreement

If the overall Satellite experiences an anomaly which will affect the use of
one or more Ku/Ka-Band Transponders and/or C-Band Transponders, but not both,
and a decision must be made as to which Transponder(s) shall be affected, then
Skynet and EchoStar shall jointly make such decision in accordance with the
terms and conditions of the Condominium Contract. If this situation arises,
SS/L shall have no obligation to make payment under Article 5 of this
Agreement, or to make a reduction in the In Orbit Incentives, until such
decision is jointly communicated to SS/L by Skynet and EchoStar. Skynet agrees
and acknowledges that it may only claim a right to payment (or a reduction in
the In Orbit Incentives) from SS/L for this type of anomaly to the extent
that the joint Skynet/EchoStar decision impacts Skynet’s C-Band payload.

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	7.	 	Termination
	 
	 	 	A.   In the event that EchoStar rightfully terminates the Satellite
Contract at
anytime prior to Acceptance of the Satellite and, in the event such
termination is
based on SS/L’s default, if SS/L does not cure such default within the
time frame
prescribed in the Satellite Contract, then Skynet shall, at its option,
elect either: (i)
to terminate this Agreement by written notice to SS/L, in which event
SS/L shall
promptly refund to Skynet the total amount paid by Skynet to SS/L to date
and the
parties shall have no further liability to each other, including but not
limited to
any obligation on the part of Skynet to make any further payments to SS/L
hereunder, or (ii) if EchoStar does not, pursuant to Article 23.3. of
the Satellite
Contract, request that SS/L deliver the partially completed Satellite to
EchoStar,
to procure the entire Ka/Ku/C-Band Satellite from SS/L pursuant to the
same
terms and conditions, mutatis mutandis, as in the terminated Satellite
Contract,
including but not limited to price.
	 
	 	 	B.   In the event that SS/L rightfully terminates the Satellite Contract
due to
EchoStar’s default at any time prior to Acceptance of the Satellite, then
Skynet
shall, at its option, by written notice to SS/L elect either: (i) to
terminate this
Agreement, in which event Skynet shall be responsible to pay SS/L for the
total
non-refundable costs that SS/L has incurred to date for the Skynet
portion of the
program, including reasonable termination costs actually paid to SS/L’s
vendors,
but no amount that will result in SS/L making a profit from Skynet under
this
Agreement, minus the fair market value of any deliverable items or
contract
work-in-progress retained by SS/L relating to the Skynet Payload, and
Skynet
shall have no further liability to SS/L, including by not limited to any
obligation
to make any further payments to SS/L hereunder; SS/L shall promptly
refund any
amount(s) paid by Skynet to SS/L in excess of such amount, or (ii) to
direct SS/L
to complete and deliver to Skynet, on the ground, the entire Satellite
(Ka/Ku/C-
Band) pursuant to the same terms and conditions, mutatis mutandis, as in
the
terminated Satellite contract, including but not limited to price;
provided however,
that such price shall be reduced by an amount equal to any termination
fees paid
by EchoStar to SS/L as a result of SS/L’s termination fees paid by
EchoStar to
SS/L as a result of SS/L’s termination of the Satellite Contract.
	 
	 	 	C.   Skynet understands that SS/L must build the Satellite for
EchoStar
irrespective of Skynet’s performance hereunder. Therefore, upon this
Agreement
being executed. Skynet shall be fully obligated to proceed with the
provisions of
this Agreement except as provided in Sections 7 (A) and 7 (B) above.

6
Proprietary Information

 

 

Execution Copy

	8.	 	Cause of Action/Defense

Under
this Agreement, Skynet may assert any causes(s) of action or defenses(s)
against SS/L based on Skynet’s C-Band Payload and its proportionate share of
the common elements of the Satellite as if Skynet were a party to the
Satellite Contract and as if the relevant terms and conditions in the
Satellite Contract specifically mentioned Skynet and/or the C-Band Payload;
Skynet may assert such causes(s) of action and/or defense(s) independently,
without regard to any action or inaction taken by EchoStar with respect to any
similar cause(s) of action and/or defense(s) it may have against SS/L.

	9.	 	Proprietary Information

SS/L and Skynet agree to treat Proprietary Information of the other party
pursuant to the terms and conditions set forth in Article 35 of the Satellite
Contract.

	10.	 	Arbitration

Contractor and Skynet agree that any dispute arising between them hereunder
will be settled pursuant to the terms and conditions of Article 25 of the
Satellite Contract.

	11.	 	Limitation of Liability

Each party’s liability to the other under this Agreement shall be governed by
the limitations provided in Article 34 of the Satellite Contract, with the
following changes: (i) the term, “Contractor” shall refer to SS/L and the
term “Purchaser” shall refer to Skynet, and (ii) notwithstanding anything to
the contrary in such Article 34, the total liability of either party shall be
limited to an amount equal to the Firm Fixed Price of this Agreement.

	12.	 	Notice

Any notice or communication required or permitted under this Agreement shall
be in writing and sent to the address set forth for each party in the Preamble
hereto in compliance with Article 38 of the Satellite Contract.

	13.	 	Entire Agreement

This Amendment Number 1 to the Agreement: (a) is the complete agreement of
the parties concerning the subject matter hereof and supersedes any prior
such agreements; (b) may not be amended or in any manner modified except in
writing signed by the parties; and (c) shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
choice of laws provisions. If any provisions of this Agreement is found to be
unenforceable, the remainder shall be enforced as fully as possible and the
unenforceable provisions shall be deemed modified to the limited extent
required to permit its enforcement in a manner most closely approximating the
intention of the parties as expressed herein.

7
Proprietary Information

 

 

Execution Copy

IN WITNESS WHEREOF, the parties have entered into this Amendment Number 1 to
the Agreement effective as of the date set forth above.

 

		 	 	 	 	 	 
	Space Systems/Loral, Inc.
	 	Loral Skynet, a division of

Loral SpaceCom Corporation
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ronald A. Haley
      

      

      

	 	By:
	 	/s/ Robert DeMartini
      

	 
	 	 	 	 	 	 
	Its:

	 	Senior Vice President	 	Its:
	 	Director, Global Procurement
	 	 	and Chief Financial Officer	 	 	 	 
		 	 	 	 	 	 

8
Proprietary Information

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