Document:

Unassociated Document

    Exhibit
10.1

    
      For
Settlement Purposes Only – Subject to FRE Rule 408

       

       

    

    SUPPORT
AGREEMENT

     

    This
SUPPORT AGREEMENT (the “Agreement”) is made
and entered into as of May 14, 2009 by and among the following
parties:

     

    
      	
              (a)  

            	
              DBSD
      North America, Inc., a Delaware corporation (formerly known as ICO North
      America, Inc., “DBSD”);

            

    

     

    
      	
              (b)  

            	
              ICO
      Global Communications (Holdings) Limited, a Delaware corporation (“ICO Global” and
      together with DBSD and the Guarantors (as defined below), the “ICO
      Parties”);

            

    

     

    
      	
              (c)  

            	
              each
      of the guarantors (the “Guarantors”)
      party to the Indenture dated August 15, 2005 (as amended to date, the
      “Indenture”),
      among DBSD, the Guarantors and The Bank of New York (now known as The Bank
      of New York Mellon), as Trustee (the “Trustee”);
      and

            

    

     

    
      	
              (d)  

            	
              each
      of the undersigned holders (together the “Participating
      Holders”, and together with the ICO Parties, the “Parties”),
      which entities are beneficial owners (each, a “Holder”) of the 7.5%
      Convertible Senior Secured Notes due 2009 (the “Notes”), issued
      by DBSD pursuant to the Indenture.

            

    

     

    RECITALS

     

    WHEREAS,
DBSD has determined that a prompt restructuring of its existing working capital
facility and the outstanding Notes would be in the best interests of its
creditors and stockholders;

     

    WHEREAS,
DBSD and the Participating Holders have engaged in good faith negotiations with
the objective of reaching an agreement for a financial restructuring of DBSD,
including the indebtedness outstanding under the Notes;

     

    WHEREAS,
DBSD and certain of the Participating Holders have entered into the Forbearance
Agreement, dated as of April 30, 2009 (the “Forbearance
Agreement”);

     

    WHEREAS,
DBSD, the Guarantors, certain Lenders named therein, Jefferies Finance LLC and
The Bank of New York Mellon have entered into the Second Forbearance Agreement,
dated as of April 30, 2009 (the “Second Forbearance
Agreement” and together with the Forbearance Agreement, the “Forbearance
Agreements”);

     

    WHEREAS,
DBSD, ICO Global and the Participating Holders now desire to implement a
financial restructuring of DBSD (the “Restructuring”) on
the terms and conditions set forth herein and in the term sheet attached hereto
as Exhibit A,
(the “Term
Sheet”);

     

    WHEREAS,
each Party has reviewed, or has had the opportunity to review, the Term Sheet
and this Agreement with the assistance of professional legal advisors of its own
choosing;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    WHEREAS,
the Parties intend to consummate the Restructuring on the terms and conditions
set forth in this Agreement and in the Term Sheet through a chapter 11 plan of
reorganization (the “Pre-Arranged Plan”)
which will be filed on or as soon as practicable after the date that the chapter
11 cases (the “Chapter
11 Cases”) of DBSD and the Guarantors are commenced under chapter 11 of
title 11 of the United States Code, 11 U.S.C. §§ 101–1532 (as amended, the
“Bankruptcy
Code”), and the solicitation for acceptances thereof will commence as
soon as practicable following the commencement of the Chapter 11 Cases;
and

     

    WHEREAS,
to expedite and support the implementation of the Restructuring, each of the
Participating Holders is prepared to commit, on the terms and subject to the
conditions of this Agreement and applicable law, if and when lawfully solicited,
to vote, or cause to be voted, all of its Notes and any additional Notes of
which such Participating Holder (or a client account over which such
Participating Holder has discretion) is or at any time on or prior to the
Outside Date (as defined below) becomes, the record or beneficial holder of
(collectively, the “Held Notes”), to
accept the Pre-Arranged Plan.

     

    NOW
THEREFORE, in consideration of the promises and the mutual covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereby
agree as follows:

     

    
      1.    Term
Sheet.  The
Term Sheet is incorporated by reference herein and is made part of this
Agreement as if fully set forth herein.  The general terms and
conditions of the Restructuring are set forth in the Term Sheet; provided, however, that (i) the
Term Sheet is supplemented by the terms and conditions of this Agreement, (ii)
to the extent there is a conflict between the Term Sheet and this Agreement, the
terms and provisions of this Agreement will govern, and (iii) to the extent
there is a conflict between the Term Sheet or this Agreement and the
Restructuring Documents (as defined below), the terms and provisions of the
Restructuring Documents shall govern.

    

     

    
      2.    Means for Effectuating the
Restructuring.  DBSD
shall effectuate the Restructuring through commencement of the Chapter 11 Cases
and seek confirmation of the Pre-Arranged Plan.  DBSD shall file
petitions for relief under chapter 11 of the Bankruptcy Code (collectively, the
“Petitions”)
for DBSD and the Guarantors (collectively, the “Debtors”) commencing
the Chapter 11 Cases no later than 11:00 a.m. (prevailing New York City Time) on
May 15, 2009 (such date and time, the “Petition
Date”).  The Pre-Arranged Plan and a disclosure statement that
complies with section 1125 of the Bankruptcy Code (the “Disclosure
Statement”) shall be filed as soon as practicable, but in no event later
than fifteen (15) days, after the commencement of the Chapter 11
Cases.  The Debtors shall use their reasonable best efforts to ensure
that (i) approval of the Disclosure Statement will occur within fifty (50) days
of the Petition Date, (ii) confirmation of the Pre-Arranged Plan will occur
within ninety (90) days after the Petition Date, and (iii) the effective
date of the Pre-Arranged Plan will be no later than the earlier of (x) one
hundred and five (105) days after the Petition Date and (y) the thirteenth
(13th) day
following the entry of an order confirming the Pre-Arranged Plan; provided, that if any
FCC Approval is required, the deadline for such effective date shall be extended
to the date that is three (3) business days after receipt of the FCC Approval,
but not later than the Outside Date (as defined below).  For purposes
of this Agreement, (i) the “Outside Date” shall
mean the date that is the four (4) month anniversary of the date of the FCC
Filing (as defined below); provided, however, that such
date may be extended by the Participating Holders if the FCC Filing is still
pending review at the FCC; and (ii) “FCC Approval” shall
mean such regulatory approvals or consents required to be obtained from the
Federal Communications Commission (the “FCC”) or any other
federal regulatory entity, the failure of which to obtain would have a material
adverse effect on DBSD.

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      3.    Preparation of Restructuring
Documents.  Promptly
upon execution of this Agreement, representatives of DBSD, ICO Global and the
Participating Holders, together with their respective counsel, shall negotiate
in good faith to prepare all definitive documentation related to the
Restructuring, including, without limitation, the Registration Rights Agreement,
the Stockholders Agreement, the Charter Documents and the Releases (each as
described in the Term Sheet), all of which shall contain provisions consistent
with the Term Sheet and this Agreement and such other provisions as are mutually
acceptable to DBSD, ICO Global and the Participating Holders (collectively, the
“Restructuring
Documents”).

    

     

    
      4.    DBSD and ICO Global
Undertakings.  DBSD
and ICO Global each hereby agrees to use its reasonable best efforts to, as
applicable, take all actions reasonably necessary to effectuate and consummate
the Restructuring and implement all steps necessary to obtain an order of the
Bankruptcy Court confirming the Pre-Arranged Plan and not take any actions
inconsistent with the Restructuring, in each case, as expeditiously as
practicable; provided, however, that nothing
in this Agreement or the Term Sheet shall obligate ICO Global or its affiliates
(other than DBSD and the Guarantors) to advance cash, working capital or other
assets to DBSD or any Participating Holder.

    

     

    
      5.    Third Party
Approvals.  The
Parties shall use their reasonable best efforts to obtain all regulatory,
governmental, administrative, and third party approvals of the Restructuring,
including, without limitation, if required under applicable law, the approval
from the FCC to the application for consent to the change of control of the FCC
licenses issued to DBSD.

    

     

    
      6.    Participating Holder
Undertaking.  Each
of the Participating Holders agrees that unless and until such time as this
Agreement has expired and subject to the conditions that (a) the terms of any
applicable agreements implementing the Restructuring embody the terms set forth
in the Term Sheet and this Agreement and such other additional provisions, not
inconsistent with the terms hereof and thereof, as are mutually agreed upon by
the Participating Holders, ICO Global and DBSD, (b) all pertinent documents,
including, without limitation, all the Restructuring Documents are in form and
substance reasonably satisfactory to the Participating Holders, (c) no Agreement
Termination Event shall have occurred that has not been waived in writing by
each Participating Holder, and (d) no Company Termination Event shall have
occurred that has not been waived by an ICO Waiver (as defined below), it
shall:  (x) use its reasonable best efforts to, as applicable, take
all actions relating to itself reasonably necessary to effectuate and consummate
the Restructuring and not take any acts inconsistent with the Restructuring, in
each case, as expeditiously as practicable; and (y) when lawfully
solicited, vote, or cause to be voted the Held Notes to accept the Pre-Arranged
Plan.  For the avoidance of doubt, it is noted that any reference
herein to a consent, approval, agreement or any similar action with respect to
or on behalf of the Participating Holders shall mean the consent, approval,
agreement or similar action of each Participating Holder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    
      7.    Expiration of
Agreement.

    

     

    (a) This
Agreement shall expire automatically without any further required action or
notice upon the occurrence of any Company Termination Event (but only, in the
case of an event described in clauses (i) or (ii) of the definition of “Company
Termination Event”, with respect to the Participating Holder or Participating
Holders who have breached any material covenant or provision as set forth in
such clause (i) or as to which any representation or warranty is untrue as set
forth in such clause (ii) until such time as this Agreement ceases to remain in
effect with respect to Participating Holders representing less than fifty
percent (50%) of the outstanding principal amount of Held Notes, until which
time it shall apply to the remaining Participating Holders) or any Agreement
Termination Event, unless the occurrence of such Agreement Termination Event is
waived in writing by each Participating Holder or the occurrence of such Company
Termination Event is waived in writing by the ICO Party or ICO Parties, as the
case may be, directly affected by the event (an “ICO
Waiver”).  Upon the expiration of this Agreement (except in
connection with the occurrence of a Company Termination Event) any and all
acceptances in favor of the Pre-Arranged Plan by the Participating Holders prior
to such expiration shall be deemed, for all purposes, to be null and void and
shall not be considered or otherwise used in any manner by DBSD in connection
with this Agreement and the Term Sheet.

     

    (b)    An “Agreement Termination
Event” shall mean any of the following:

     

    (i)    Participating
Holders shall not have entered into this Agreement prior to the Petition Date
representing, or this Agreement ceases to remain in effect at such date with
respect to Participating Holders representing, more than fifty percent (50%) of
the outstanding principal amount of Notes;

     

    (ii)    (A)
Either of the ICO Parties shall have breached any material covenant or provision
of this Agreement, (B) the Participating Holders shall have delivered written
notice to DBSD of any such breach, and (C) such breach remains uncured for a
period of five (5) business days;

     

    (iii)    (A) Any
representation or warranty in this Agreement made by an ICO Party shall have
been untrue in any material respect when made or shall have become untrue in any
material respect, (B) the Participating Holders shall have delivered written
notice to DBSD of any such breach, and (C) such breach remains uncured for a
period of five (5) business days;

     

    (iv)    (A) Any
material term or condition of any of the Restructuring Documents shall be
(whether due to an order of the Bankruptcy Court or otherwise) materially
different and adverse to the Participating Holders than as agreed by the
Participating Holders and the ICO Parties except to the extent such materially
different and adverse term or condition is agreed by each Participating Holder,
(B) the Participating Holders shall have delivered written notice to DBSD of any
such event, and (C) such event remains uncured for a period of five (5) business
days;

     

    (v)    There
shall have been issued or reinstated any suspension order or similar order by a
court or other governmental body of competent jurisdiction that materially
adversely affects the benefits intended to be received by the Participating
Holders hereunder, or prevents DBSD from consummating the transactions
contemplated by this Agreement, and (A) such proceeding or order was issued or
reinstated at the request or with the acquiescence of DBSD or any of its
affiliates or (B) in all other circumstances, such order is not stayed,
reversed, or vacated within fifteen (15) days after such issuance or
reinstatement;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (vi)    There
shall have been issued any order, decree, or ruling by any court or governmental
body having jurisdiction restraining or enjoining the consummation of or
rendering illegal the transactions contemplated by this Agreement and (A) such
proceeding or order was issued at the request or with the acquiescence of DBSD
or its affiliates or (B) in all other circumstances, such order is not stayed,
reversed, or vacated within fifteen (15) days after such issuance;

     

    (vii)    ICO
Global shall have failed to file by 8:00 a.m. (prevailing New York City Time) on
the fourth (4th)
business day after ICO Global’s counsel’s receipt of executed signature pages to
this Agreement from Holders representing, in the aggregate, more than fifty
percent (50%) of the principal amount of Notes outstanding, a Form 8-K with the
Securities and Exchange Commission to which this Agreement (including all
exhibits) (with such redactions as may be reasonably requested by counsel to the
Participating Holders) and the Term Sheet are attached.  The Parties
agree that, in the event that ICO Global fails to file the Form 8-K in
accordance with this provision, one or more of the Participating Holders may
publicly disclose this Agreement and all of its exhibits; provided, however, that such
disclosure shall be limited to disclosing the text of this Agreement and all
exhibits and no such disclosure by the Participating Holders shall cure or waive
such failure of ICO Global to make such filing.  ICO Global hereby (a)
waives any claims against any such Participating Holder and (b) agrees to hold
all such Participating Holders harmless against any claims, in each case, solely
arising as a result of such disclosure by such Participating Holders in
compliance with this Agreement;

     

    (viii)    Unless
DBSD and the Participating Holders agree otherwise:

     

    A. The
Restructuring has not been approved by DBSD’s Board of Directors prior to the
filing of the Petitions;

     

    B. The
Petitions shall not have been filed on or before the Petition Date;

     

    C. An
application to obtain the FCC Approval for the transfer of control to the
Holders (the “FCC
Filing”) shall not have been filed with the FCC within three (3) business
days after the Pre-Arranged Plan has been confirmed; provided, however, that if the
Holders have not provided DBSD all information about the Holders reasonably
requested by DBSD to be included in the FCC Filing at that time, such time
period shall be extended by an additional ten (10) days;

     

    D. The
Pre-Arranged Plan and the Disclosure Statement shall not have been filed within
fifteen (15) days after the Petition Date;

     

    E. The
Disclosure Statement shall not have been approved within fifty (50) days after
the Petition Date;

     

    
      
        
        

      

      
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    F. The
Pre-Arranged Plan shall not have been confirmed within ninety (90) days after
the Petition Date;

     

    G. The
Pre-Arranged Plan and the transactions contemplated therein shall not have been
consummated on or before one hundred and five (105) days after the Petition
Date; provided,
that if any FCC Approval is required, such date shall be extended to the earlier
of three (3) business date following receipt of the FCC Approval and the Outside
Date; and

     

    H. Upon the
written consent of ICO Global, DBSD, and the Participating Holders;

     

    (ix)    The
Bankruptcy Court shall have granted relief that is inconsistent with the
Pre-Arranged Plan and adverse, in any material respect, to the Participating
Holders, including, without limitation, the termination, annulment, or
modification of the automatic stay (as set forth in section 362 of the
Bankruptcy Code) with regard to any material assets of DBSD;

     

    (x)    A trustee
or examiner with enlarged powers shall have been appointed under sections 1104
or 1105 of the Bankruptcy Code for service in the Chapter 11 Cases;
and

     

    (xi)    One or
more of the Chapter 11 Cases shall have been converted to a case under chapter 7
of the Bankruptcy Code or otherwise dismissed.

     

    (c)    A “Company Termination
Event” shall mean any of the following:

     

    (i)    (A) A
Participating Holder shall have breached any material covenant or provision of
this Agreement; (B) DBSD shall have delivered written notice to the
Participating Holders of any such breach; and (C) any such breach remains
uncured for a period of five (5) business days;

     

    (ii)   (A) Any
representation or warranty in this Agreement made by a Participating Holder
shall have been untrue in any material respect when made or shall have become
untrue in any material respect, (B) DBSD shall have delivered written notice to
the Participating Holders of any such breach, and (C) such breach remains
uncured for a period of five (5) business days;

     

    (iii)   (A) Any
material term or condition of any of the Restructuring Documents shall be
(whether due to an order of the Bankruptcy Court or otherwise) materially
different and adverse to ICO Global or DBSD than as agreed by the Participating
Holders, ICO Global and DBSD except to the extent such materially different and
adverse term or condition is agreed by ICO Global and DBSD, (B) DBSD shall have
delivered written notice to the Participating Holder of any such event, and (C)
such event remains uncured for a period of five (5) business days;
and

     

    (iv)   There
shall have been issued any order, decree, or ruling by any court or governmental
body having jurisdiction restraining or enjoining the consummation of or
rendering illegal the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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      8.    Representations and
Warranties.

    

     

    (a)    Each
Party represents and warrants to the other Parties that (a) it is duly
organized, validly existing, and in good standing under the laws of the
jurisdiction of its formation; (b) its execution, delivery, and performance of
this Agreement are within the power and authority of such party and have been
duly authorized by such party and that no other approval or authorization is
required; (c) this Agreement has been duly executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable in accordance
with the terms hereof, subject to bankruptcy, insolvency, fraudulent conveyance,
and similar laws affecting the rights or remedies of creditors generally; and
(d) none of the execution and delivery of this Agreement or compliance with the
terms and provisions hereof will violate, conflict with, or result in a breach
of, its certificate of incorporation or bylaws or other constitutive document,
any applicable law or regulation, any order, writ, injunction, or decree of any
court or governmental authority or agency, or any agreement or instrument to
which it is a party or by which it is bound or to which it is
subject.

     

    (b)    Each of
the Participating Holders further represents and warrants to DBSD, as to itself,
that, as of the date hereof, the amounts set forth next to its name on Schedule 1 attached
hereto constitute the amounts of all Held Notes with respect to such
Participating Holder.

     

    
      9.    Restriction on
Transfer.

    

     

    (a)    The
Participating Holders may sell, transfer, or dispose of any of their Notes as
provided for in the Indenture; provided, however, that the
transferee thereof (each such transferee, a “Transferee”) must, as
an acknowledgment to be bound to the terms hereof and the Term Sheet,
simultaneously with the transfer execute a counterpart signature page to this
Agreement and deliver such counterpart signature to DBSD, in which case it shall
be deemed to be a Participating Holder for all purposes herein from and after
the date on which such counterpart signature page is executed.  Any
transfer of Notes that is not done in compliance with this Section 9(a) shall be
deemed void ab
initio.

     

    (b)    Notwithstanding
anything to the contrary herein, the Participating Holders shall be entitled to
take any action necessary to consummate a transfer of the Held Notes; provided, that it
shall obtain the Transferee’s acknowledgment of the terms hereof, as described
in Section 9(a)
hereof.

     

    
      10.    Public
Disclosures.  Each
ICO Party will submit to counsel for the Participating Holders for prior review
all press releases and public filings regarding, in any way, the Restructuring,
this Agreement, and any amendment to the terms of the Restructuring and/or this
Agreement.  Except as required by law (as determined by outside
counsel to such ICO Party), no ICO Party shall (a) use the name of any
Participating Holder in any public manner without such Participating Holder’s
prior written consent or (b) disclose to any person (including, for the
avoidance of doubt, any other Participating Holder but specifically excluding
legal, accounting and financial advisors to the ICO Parties who have a need to
know such information in order to render their advisory services to the ICO
Parties and who are bound by confidentiality restrictions regarding the
disclosure and use of such information) the principal amount or percentage of
any Notes or any other securities of DBSD or any of their respective
subsidiaries held by any Participating Holder; provided, however, that the ICO
Parties shall be permitted to disclose at any time the aggregate principal
amount of and aggregate percentage of Notes that are Held
Notes.  Notwithstanding anything to the contrary herein, the terms and
conditions set forth in this Section shall survive any termination of this
Agreement.

    

     

    
      
        
        

      

      
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      11.    Impact of Appointment to
Creditors’ Committee.  Notwithstanding
anything herein to the contrary, if any Participating Holder is appointed to and
serves on an official committee of creditors in the Chapter 11 Cases, (a) the
terms of this Agreement shall not be construed so as to limit such Participating
Holder’s exercise (in its sole discretion) of its fiduciary duties to any person
arising from its service on such committee, and any such exercise (in the sole
discretion of such Participating Holder) of such fiduciary duties shall not be
deemed to constitute a breach of the terms of this Agreement, and (b) if such
appointment to the official committee of creditors is on account of the Held
Notes, such holder may at its discretion terminate this Agreement as to itself
by providing written notice to DBSD and counsel to the Participating
Holders.

    

     

    
      12.    Governing Law;
Jurisdiction.

    

     

    (a)    This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to any conflicts of law provision which would
require the application of the law of any other jurisdiction (except for
Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New
York).  By its execution and delivery of this Agreement, each of the
parties hereto hereby irrevocably and unconditionally agrees for itself that any
legal action, suit, or proceeding against it with respect to any matter under or
arising out of or in connection with this Agreement or for recognition or
enforcement of any judgment rendered in any such action, suit or proceeding, may
be brought in any federal or state court of competent jurisdiction in the
District of New York.

     

    (b)    By
execution and delivery of this Agreement, each of the Parties irrevocably
accepts and submits itself to the nonexclusive jurisdiction of such court,
generally and unconditionally, with respect to any such action, suit or
proceeding.  Notwithstanding the foregoing consent to New York
jurisdiction, upon the commencement of the Chapter 11 Cases, each of the Parties
hereby agrees that the Bankruptcy Court shall have exclusive jurisdiction of all
matters arising out of or in connection with this Agreement.

     

    
      13.    Specific
Performance.  It
is understood and agreed by each of the Parties hereto that money damages would
not be a sufficient remedy for any breach of this Agreement by any Party and
each non-breaching Party shall be entitled to specific performance and
injunctive or other equitable relief as a remedy of any such
breach.

    

     

    
      14.    Reservation of
Rights.  This
Agreement and all transactions contemplated herein are part of a proposed
settlement of disputes among the Parties hereto.  Except as expressly
provided in this Agreement, nothing herein is intended to, or does, in any
manner waive, limit, impair, or restrict the ability of each of the
Participating Holders to protect and preserve its rights, remedies and
interests, including, without limitation, its claims against DBSD or its full
participation in the Chapter 11 Cases.  If the transactions
contemplated herein are not consummated, or if this Agreement is terminated, the
Parties fully reserve any and all of their rights.  Pursuant to Rule
408 of the Federal Rules of Evidence and any applicable state rules of evidence,
this Agreement shall not be admitted into evidence in any proceeding other than
a proceeding to enforce its terms.

    

     

    
      
        
        

      

      
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      15.    Fees and
Expenses.  DBSD
shall pay the fees and expenses of the Participating Holders in connection with
the Restructuring, including the advisors to the Participating Holders, who
shall be selected by the Participating Holders.  Upon the commencement
of the Chapter 11 Cases, DBSD shall, in advance of the filing or filings
therefore, pay all accrued and unpaid fees and expenses of UBS Securities LLC
and Milbank, Tweed, Hadley & McCloy LLP through the date immediately
preceding the anticipated filing date, and provide a customary retainer to such
advisors.

    

     

    
      16.    Headings.  The
headings of the sections, paragraphs, and subsections of this Agreement are
inserted for convenience only and shall not affect the interpretation
hereto.

    

     

    
      17.    Successors and
Assigns.  This
Agreement is intended to bind and inure to the benefit of the parties and their
respective successors, assigns, heirs, executors, administrators, and
representatives; provided, however, that nothing
in this Section
17 shall be deemed to permit sales, assignments, or transfers other than
in accordance with Section 9
hereof.  The agreements, representations and obligations of the
Parties are, in all respects, ratable and several and neither joint nor joint
and several.

    

     

    
      18.    Notice.  Notices
given under this agreement shall be to:

    

     

    If to
DBSD:

     

    DBSD
North America, Inc.

    11700
Plaza America Drive, Suite 1010

    Reston,
Virginia 20190

    Attention:    John
L. Flynn, General Counsel

    Telephone:   (703)
964-1400

    Facsimile:      (703)
964-1401

     

    With a
copy (which copy shall not constitute notice) to:

     

    Kirkland
& Ellis LLP

    300 North
LaSalle

    Chicago,
Illinois  60654

    Attention:      James
H.M. Sprayregen

    Marc J.
Carmel

     

    Telephone:   (312)
862-2000

    Facsimile:      (312)
862-2200

     

    
      
        
        

      

      
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    and:

     

    Davis
Wright Tremaine LLP

    1201
Third Avenue

    Seattle,
Washington 98101

    Attention:     
Julie Weston

    Sarah English Tune

    Telephone:    (206)
622-3150

    Facsimile:       (206)
757-7161

     

    If to ICO
Global:

     

    ICO
Global Communications (Holdings) Limited

    11700
Plaza America Drive, Suite 1010

    Reston,
Virginia 20190

    Attention:

    Telephone:   (703)
964-1400

    Facsimile:     
(703) 964-1401

     

    With a
copy (which copy shall not constitute notice) to:

     

    Morrison
& Foerster LLP

    425
Market Street

    San
Francisco, California, 94105

    Attention:     Robert
Townsend

    Telephone:   (415)
268-7080

    Facsimile:      (415)
268-7522

     

    If to Any Participating
Holder:

     

    To the
names and addresses set forth on the signature pages hereto.

     

    With a
copy (which copy shall not constitute notice) to:

     

    Milbank,
Tweed, Hadley & McCloy
llp

    1 Chase
Manhattan Plaza

    New York,
New York  10005

    Attention:     
Thomas C. Janson

    Telephone:     (212)
530-5000

    Facsimile:       
(212) 530-5219

     

    
      19.    Prior
Negotiations.  Except
as set forth in the Forbearance Agreement and those certain Confidentiality
Agreements entered into by DBSD and certain Holders on April 24, 2009, this
Agreement and Exhibit
A supersede all prior negotiations with respect to the subject matter
hereof.

    

     

    
      20.    Consideration.  It
is hereby acknowledged by the Parties that, other than the agreements,
covenants, representations, and warranties set forth herein and in the Term
Sheet and to be included in the Restructuring Documents, no consideration shall
be due or paid to the Holders for their agreement to vote to accept the
Pre-Arranged Plan in accordance with the terms and conditions of this
Agreement.

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    
      21.    Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which shall constitute one and the same
Agreement.

    

     

    
      22.    No Third Party
Beneficiaries.  Unless
expressly stated herein, this Agreement shall be solely for the benefit of the
parties hereto and no other person or entity.

    

     

    
      23.    No Solicitation;
Representation by Counsel.  This
Agreement is not and shall not be deemed to be a solicitation for votes in favor
of the Pre-Arranged Plan in the Chapter 11 Cases.  Each of the
Participating Holders’ votes with respect to the Pre-Arranged Plan will not be
solicited until such Participating Holder has received the Disclosure
Statement.  Each Party acknowledges that it has had an opportunity to
receive information from DBSD, and that it has been represented by counsel in
connection with this Agreement and the transactions contemplated
hereby.  The provisions of this Agreement shall be interpreted in a
reasonable manner to effectuate the intent of the Parties.

    

     

    
      24.    Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.  The
provisions of this Agreement shall be interpreted in a reasonable manner to
effect the intent of the Parties hereto.

    

     

    
      25.    Amendment, Waiver or
Modification.  Except
as otherwise expressly set forth herein, this Agreement (including all of its
exhibits) and each of its terms and conditions may not be amended, waived or
modified in any aspect except in a writing executed by DBSD and the
Participating Holders.

    

     

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    IN WITNESS WHEREOF, each of
the parties hereto has caused this Agreement to be executed and delivered by its
duly authorized officer as of the date first above written.

     

    
      
        
          
            
              
                	 	 	
                        ICO
      GLOBAL COMMUNICATIONS 

                        (HOLDINGS)
      , INC.

                      	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                         

                      	 	By:	
                        /s/
      Michael P. Corkery

                      	 
	
                         

                      	 	Name: 	
                        Michael
      P. Corkery

                      	 
	
                         

                      	 	Title: 	
                        acting
      CEO, EVP & CFO

                      	 

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  	 	 	
                          DBSD
      NORTH AMERICA, INC.

                        	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                           

                        	 	By:	
                          /s/
      Michael P. Corkery

                        	 
	
                           

                        	 	Name: 	
                          Michael
      P. Corkery

                        	 
	
                           

                        	 	Title: 	
                          Acting
      Chief Executive Officer, Executive

                          Vice
      President & Chief Financial Officer

                        	 

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    	 	 	
                            
                              DBSD
      SATELLITE MANAGEMENT LLC

                               

                              By:
      DBSD North America, Inc., its sole member

                            

                          	 
	 	 	 	
                             

                          	 
	 	 	 	 	 
	 	 	 	 	 
	
                             

                          	 	By:	
                            /s/
      Michael P. Corkery

                          	 
	
                             

                          	 	Name: 	
                            Michael
      P. Corkery

                          	 
	
                             

                          	 	Title: 	
                            Acting
      Chief Executive Officer, Executive

                            Vice
      President & Chief Financial Officer

                          	 

                  

                

              

            

          

        

         

        
          
            
              
                
                  
                    
                      	 	 	
                              DBSD
      SATELLITE NORTH AMERICA 

                              LIMITED

                            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                               

                            	 	By:	
                              /s/
      Stephen M. De Wees

                            	 
	
                               

                            	 	Name: 	
                              Stephen
      M. De Wees

                            	 
	
                               

                            	 	Title: 	
                              Director

                            	 

                    

                  

                

              

            

          

           

        

      

    

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

      
         

        
          
            
              
                
                  
                    
                      	 	 	
                              DBSD
      SATELLITE SERVICES G.P.

                               

                              By: DBSD Services Limited, a general
    partner

                            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                               

                            	 	By:	
                              /s/
      Stephen M. De Wees

                            	 
	
                               

                            	 	Name: 	
                              Stephen
      M. De Wees

                            	 
	
                               

                            	 	Title: 	
                              Director

                            	 

                    

                     

                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	 	
                                            
                                              NEW
      DBSD SATELLITE SERVICES G.P.

                                               

                                              By:
      DBSD Satellite Services G.P., a general partner

                                              By:
      DBSD Services Limited, a general partner

                                            

                                          	 
	 	 	
                                             

                                          	 	 
	 	 	
                                             

                                          	 	 
	 	 	 	 	 
	
                                             

                                          	 	By:	
                                            /s/
      Stephen M. De Wees

                                          	 
	
                                             

                                          	 	Name: 	
                                            Stephen
      M. De Wees

                                          	 
	
                                             

                                          	 	Title: 	
                                            Director

                                          	 

                                  

                                   

                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 	 	
                                                          DBSD
      SERVICES LIMITED

                                                        	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                                           

                                                        	 	By:	
                                                          /s/
      Stephen M. De Wees

                                                        	 
	
                                                           

                                                        	 	Name: 	
                                                          Stephen
      M. De Wees

                                                        	 
	
                                                           

                                                        	 	Title: 	
                                                          Director

                                                        	 

                                                

                                                 

                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                	 	 	
                                                                        DBSD
      SATELLITE SERVICES LIMITED

                                                                      	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                                                         

                                                                      	 	By:	
                                                                        /s/
      Stephen M. De Wees

                                                                      	 
	
                                                                         

                                                                      	 	Name: 	
                                                                        Stephen
      M. De Wees

                                                                      	 
	
                                                                         

                                                                      	 	Title: 	
                                                                        Director

                                                                      	 

                                                              

                                                               

                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              	 	 	
                                                                                      SSG
      UK LIMITED

                                                                                    	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                                                                       

                                                                                    	 	By:	
                                                                                      /s/
      Stephen M. De Wees

                                                                                    	 
	
                                                                                       

                                                                                    	 	Name: 	
                                                                                      Stephen
      M. De Wees

                                                                                    	 
	
                                                                                       

                                                                                    	 	Title: 	
                                                                                      Director

                                                                                    	 

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      	 	 	
                              3421554
      CANADA INC.

                            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                               

                            	 	By:	
                              /s/
      Stephen M. De Wees

                            	 
	
                               

                            	 	Name: 	
                              Stephen
      M. De Wees

                            	 
	
                               

                            	 	Title: 	
                              Director

                            	 

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 	GOLDENTREE
      ASSET MANAGEMENT, LP, as investment manager on behalf of its managed
      funds	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                   

                                	 	By:	
                                  /s/
      Adam Tuckman

                                	 
	
                                   

                                	 	Name: 	
                                  Adam
      Tuckman

                                	 
	
                                   

                                	 	Title: 	
                                  Partner

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

       

    

     

    Address
for Notice for the Above Holder:

     

    GoldenTree
Asset Management LP

     

    310 Park
Avenue, 21st
Floor

     

    New York,
NY 10022

     

    Attn:  Adam
Tuckman

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        	 	 	
                                GOLDMAN,
      SACHS & CO.

                              	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                 

                              	 	By:	
                                /s/
      Buckley Ratchford

                              	 
	
                                 

                              	 	Name: 	
                                Buckley
      Ratchford

                              	 
	
                                 

                              	 	Title: 	
                                Managing
      Director

                              	 

                      

                    

                  

                

              

            

          

        

      

    

     

    Address
for Notice for the Above Holder:

     

    Goldman
Sachs & Co.

     

    85 Broad
Street

     

    New York,
NY  10004

     

    Attn:  David
J. Goldburg

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

     

    
      
         

        
          
            
              
                
                  
                    
                      
                        
                          	 	 	
                                  
                                    HIGHLAND
      CREDIT OPPORTUNITIES CDO LTD.     

                                  

                                	 
	 	 	 	 
	 	 	By:	Highland
      Capital Management, L.P.	 
	 	 	 	 	 
	 	 	By:	Strand
      Advisors, Inc., its general partner	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                   

                                	 	By:	
                                  /s/
      Michael Pusateri

                                	 
	
                                   

                                	 	Name: 	
                                  Michael
      Pusateri

                                	 
	
                                   

                                	 	Title: 	
                                  Chief
      Operating Officer

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 	 	
                                    HIGHLAND
      CRUSADER OFFSHORE PARTNERS, L.P.

                                  	 
	 	 	 	 
	 	 	By: 	Highland
      Crusader Fund GP, L.P., its general partner	 
	 	 	 	 	 
	 	 	By: 	Highland
      Crusader GP, LLC., its general partner	 
	 	 	 	 	 
	 	 	By: 	Highland
      Capital Management, L.P., its sole member	 
	 	 	 	 	 
	 	 	By: 	Strand
      Advisors, Inc., its general partner	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                     

                                  	 	By:	
                                    /s/
      Michael Pusateri

                                  	 
	
                                     

                                  	 	Name: 	
                                    Michael
      Pusateri

                                  	 
	
                                     

                                  	 	Title: 	
                                    Chief
      Operating Officer

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	 	
                                      HIGHLAND
      CREDIT STRATEGIES HOLDING CORPORATION

                                    	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                       

                                    	 	By:	
                                      /s/
      Michael Pusateri

                                    	 
	
                                       

                                    	 	Name: 	
                                      Michael
      Pusateri

                                    	 
	
                                       

                                    	 	Title: 	
                                      Chief
      Operating Officer

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

           

        

      

    

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 	 	
                                    
                                      HIGHLAND
      RESTORATION CAPITAL PARTNERS, L.P.

                                    

                                  	 
	 	 	 	 	 
	 	 	By:	Highland
      Restoration Capital Partners GP, LLC, its general partner	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                     

                                  	 	By:	
                                    /s/
      Michael Pusateri

                                  	 
	
                                     

                                  	 	Name: 	
                                    Michael
      Pusateri

                                  	 
	
                                     

                                  	 	Title: 	
                                    Chief
      Operating Officer

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

         

      

    

    Address
for Notice for Each of the Above Holders:

     

    Highland
Capital Management, L.P.

     

    13455
Noel Road, Suite 800

     

    Dallas,
TX 75240

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	 	
                                      
                                        GORDEL
      HOLDINGS LIMITED

                                      

                                    	 
	 	 	 	 	 
	 	 	By:	
                                      OZ
      Management LP, its Investment Manager

                                    	 
	 	 	 	 	 
	 	 	By:	Och-Ziff
      Holding Corporation, its General Partner	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                       

                                    	 	By:	
                                      /s/
      Joel Frank

                                    	 
	
                                       

                                    	 	Name: 	
                                      Joel
      Frank

                                    	 
	
                                       

                                    	 	Title: 	
                                      
                                        Chief
      Financial Officer

                                      

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	 	
                                            
                                              GOLDMAN
      SACHS & CO. PROFIT SHARING MASTER TRUST

                                            

                                          	 
	 	 	 	 	 
	 	 	By:	
                                            OZ
      Management LP, its Investment Manager

                                          	 
	 	 	 	 	 
	 	 	By:	
                                            Och-Ziff
      Holding Corporation, its General Partner

                                          	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                             

                                          	 	By:	
                                            /s/
      Joel Frank

                                          	 
	
                                             

                                          	 	Name: 	
                                            Joel
      Frank

                                          	 
	
                                             

                                          	 	Title: 	
                                            Chief
      Financial Officer

                                          	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

                 

                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	 	 	
                                                  
                                                    OZ
      MASTER FUND, LTD.

                                                  

                                                	 
	 	 	 	 	 
	 	 	By:	
                                                  OZ
      Management LP, its Investment Manager

                                                	 
	 	 	 	 	 
	 	 	By:	
                                                  Och-Ziff
      Holding Corporation, its General Partner

                                                	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                                   

                                                	 	By:	
                                                  /s/
      Joel Frank

                                                	 
	
                                                   

                                                	 	Name: 	
                                                  Joel
      Frank

                                                	 
	
                                                   

                                                	 	Title: 	
                                                  
                                                    Chief
      Financial Officer

                                                  

                                                	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                       

                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	 	 	
                                                        
                                                          OZ GLOBAL SPECIAL INVESTMENTS MASTER FUND,
    L.P.

                                                        

                                                      	 
	 	 	 	 	 
	 	 	By:	OZ
      Advisors II LP, its General Partner	 
	 	 	 	 	 
	 	 	By:	
                                                        Och-Ziff
      Holding LLC, its General Partner

                                                      	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                                         

                                                      	 	By:	
                                                        /s/
      Joel Frank

                                                      	 
	
                                                         

                                                      	 	Name: 	
                                                        Joel
      Frank

                                                      	 
	
                                                         

                                                      	 	Title: 	
                                                        Chief
      Financial Officer

                                                      	 

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Address
for Notice for Each of the Above Holders:

     

    Och-Ziff
Capital Management Group LLC

     

    9 West
57th
Street, 13th
Floor

     

    New York,
NY 10019

     

    Attn:  Joel
Frank, Chief Financial Officer

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 	 	
                                        
                                          PLAINFIELD SPECIAL SITUATIONS MASTER FUND
    LIMITED

                                        

                                      	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                         

                                      	 	By:	
                                        /s/
      Rayan Joshi

                                      	 
	
                                         

                                      	 	Name: 	
                                        Rayan
      Joshi

                                      	 
	
                                         

                                      	 	Title: 	
                                        Authorized
      Individual

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

    

    Address
for Notice for the Above Holder:

     

    c/o
Plainfield Asset Management LLC

     

    55
Railroad Avenue

     

    Greenwich,
CT  06830

     

    
      
        
        

      

      
        
          [Support
Agreement]

        

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 	 	
                                        
                                          THE RAPTOR GLOBAL PORTFOLIO LTD.

                                        

                                      	 
	 	 	 	 	 
	 	 	By:	Raptor
      Capital Management LP	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                         

                                      	 	By:	
                                        /s/
      Brian Daly

                                      	 
	
                                         

                                      	 	Name: 	
                                        Brian
      Daly

                                      	 
	
                                         

                                      	 	Title: 	
                                        General
      Counsel

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	 	
                                            
                                              THE ALTAR ROCK FUND L.P.

                                            

                                          	 
	 	 	 	 	 
	 	 	By:	Raptor
      Management GP LLC	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                                             

                                          	 	By:	
                                            /s/
      Brian Daly

                                          	 
	
                                             

                                          	 	Name: 	
                                            Brian
      Daly

                                          	 
	
                                             

                                          	 	Title: 	
                                            General
      Counsel

                                          	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

        

      

    

    Address
for Notice for Each of the Above Holders:

     

    c/o
Raptor Capital Management LP

     

    50 Rowes
Wharf, 6th
Floor

     

    Boston,
MA 02110

     

    Attn:  General
Counsel

     

    
      
        
        

      

      
        
          [Support
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      For
Settlement Purposes Only – Subject to FRE Rule 408

       

    

    Exhibit
A

     

    

     

    [See
Attached Term Sheet]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      For Settlement Purposes Only –
Subject to FRE Rule 408

       

    

    THIS
TERM SHEET IS FOR DISCUSSION PURPOSES ONLY AND IS NOT A SOLICITATION OF
ACCEPTANCES OR REJECTIONS WITH RESPECT TO ANY RESTRUCTURING OR PLAN OF
REORGANIZATION OR AN OFFER OR SOLICITATION FOR THE SALE OF SECURITIES OF ANY
KIND.

     

    PRELIMINARY
INDICATION OF TERMS

    FOR
PROPOSED RESTRUCTURING OF DBSD NORTH AMERICA, INC.

     

    May 14,
2009

     

    This term
sheet (“Term
Sheet”) describes certain of the principal terms of a proposed
restructuring (the “Restructuring”) for
DBSD North America, Inc. (formerly known as ICO North America, Inc., “DBSD”).  DBSD
is currently a 99.84% owned subsidiary of ICO Global Communications (Holdings)
Limited (“ICO
Global” or the “Existing
Stockholder”).  As described in greater detail herein, the
Restructuring shall be consummated through a “Pre-Arranged” chapter 11 Plan of
Reorganization (the “Pre-Arranged Plan”)
pursuant to voluntary chapter 11 petitions for relief to be filed with the
United States Bankruptcy Court of the Southern District of New York (the “Bankruptcy
Court”).  This Term Sheet has been produced for discussion and
settlement purposes only.  It is subject to the parties’ agreement
that it shall not be used as evidence in any litigation and is subject to the
provisions of Rule 408 of the Federal Rules of Evidence and other similar
applicable rules under federal and state law.

     

    This Term
Sheet and the proposals contained herein are subject to, among other conditions,
the completion of appropriate legal, financial and other due
diligence by the Principal Holders (as defined below) and their legal and
financial advisors.  As used herein, the term “Holders” refers to
holders of DBSD’s outstanding 7.5% Convertible Senior Secured Notes due 2009
(the “Notes”),
and the term “Principal Holders”
refers to those Holders set forth on Attachment 1, who
have engaged in discussions with DBSD and ICO Global with respect to the
Restructuring over time, which discussions are reflected in this Term
Sheet.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    For Settlement Purposes Only –
Subject to FRE Rule 408

     

    
      
        
          
            
              
                
                  	
                          The
      Restructuring

                           

                        	
                          The
      Restructuring set forth in this Term Sheet is intended to be effected
      through the Pre-Arranged Plan, pursuant to which the Holders, as a class,
      shall receive shares of common stock of the restructured DBSD (the “Common Stock”)
      representing, in the aggregate, 94.9919% of the Common Stock to be
      outstanding immediately following the Restructuring, subject only to
      dilution by the issuance of the Warrants (as defined
    below).

                        
	 	 
	
                          Implementation
      of the Restructuring

                        	
                          DBSD,
      ICO Global and the Principal Holders shall mutually agree upon the
      definitive documentation required for the Restructuring (the “Definitive
      Restructuring Documents”), which shall reflect the terms and
      conditions set forth herein and such other terms and conditions as shall
      be acceptable to the Principal Holders, ICO Global and DBSD.

                           

                          DBSD
      shall solicit acceptances of a Plan of Reorganization on the terms set
      forth herein and such other terms as are mutually acceptable to the
      Principal Holders, ICO Global and DBSD.  Such Pre-Arranged Plan
      shall be approved pursuant to section 1129 of the Bankruptcy Code with
      respect to all classes of claims and interests.

                        
	 	 
	
                          Other
      Equity Interests in DBSD

                        	
                          All
      options, warrants, and other agreements or rights to acquire DBSD equity
      interests (including any arising under or in connection with any
      employment agreement or any incentive plan or any benefit plan or the
      like) existing prior to the consummation of the Restructuring, shall be
      cancelled upon the consummation of the Restructuring without any further
      action or the payment of any consideration.

                           

                          In
      connection with the Restructuring, the Existing Stockholder shall receive
      (i) shares of Common Stock equal to 5.0% of the shares of Common Stock in
      DBSD to be outstanding immediately following the Restructuring, and (ii)
      warrants (the “Warrants”) to
      acquire 10.00% of the Common Stock (after taking into account the Common
      Stock outstanding immediately following the Restructuring).  The
      other shareholders in DBSD shall hold shares of Common Stock following the
      Restructuring equal to 0.0081% of the Common Stock.

                           

                          The
      Warrants shall have an exercise price of $0.01 per share, and shall be
      exercisable only upon a Valuation Event.  The Warrants shall be
      issued in three tranches and shall be identical except as set forth
      below:

                           

                          (i)    Warrants
      representing 5.00% of the Common Stock shall be exercisable if the
      aggregate Equity Valuation upon a Valuation Event is equal to or greater
      than $1.0 billion; plus

                        

                   

                  
                    
                      
                      

                    

                    
                      2

                      
                        

                      

                    

                    
                      
                      

                    

                     

                  

                  For Settlement Purposes Only –
Subject to FRE Rule 408

                   

                  	 	
                          (ii)   Warrants
      representing 2.50% of the Common Stock shall be exercisable if the
      aggregate Equity Valuation upon a Valuation Event is equal to or greater
      than $1.5 billion; plus

                           

                          (iii)     Warrants representing
      2.50% of the Common Stock shall be exercisable if the aggregate Equity
      Valuation upon a Valuation Event is equal to or greater than $2.0
      billion.

                           

                          In
      the event that the Warrants are extended as described below so that they
      are exercisable after the second anniversary of the consummation of the
      Restructuring, the relevant valuation thresholds set forth above shall be
      increased at the rate of 30% per annum (or portion thereof) beginning on
      the second anniversary of the consummation of the
      Restructuring.

                           

                          The
      Warrants shall expire on the second anniversary of the consummation of the
      Restructuring (the “Warrant Term”);
      provided,
      that:

                           

                          (i)    if DBSD
      enters into binding definitive documents (which have been approved by the
      new board) for the consummation of a Valuation Event prior to the second
      anniversary of the consummation of the Restructuring, then the Warrant
      Term shall be extended until the earlier of (a) the closing of such
      Valuation Event and (b) the termination or abandonment of such Valuation
      Event (but only with respect to such Valuation Event);

                           

                          (ii)    if DBSD
      shall have entered into a binding definitive agreement for the
      consummation of a business combination (which has been approved by the new
      board of DBSD) with the company that has been identified to the Principal
      Holders in writing on the date hereof (the “Identified
      Company”) within twelve months of the consummation of the
      Restructuring, then the Warrant Term shall be extended until the later of
      (a) the third anniversary of the consummation of the Restructuring, (b)
      the closing of the transaction with the Identified Company, and (c) the
      termination or abandonment of the transaction with the Identified Company
      (but only with respect to such transaction if the event in clauses (b) or
      (c) is after such third anniversary);

                           

                          (iii)   if the
      Warrant Term has been extended until the third anniversary of the
      consummation of the Restructuring and DBSD enters into binding definitive
      documents with respect to a Valuation Event during such time, then the
      Warrant Term shall be extended until the earlier of (a) the closing of
      such Valuation Event and (b) the termination or abandonment of such
      Valuation Event (but only with respect to such Valuation
      Event).

                           

                          The
      Warrants shall provide for appropriate adjustments in the event of stock
      splits, stock recombination, conversion of the Common Stock into other
      securities or other similar events.  The Warrants shall be
      non-transferable and shall contain terms and conditions acceptable to the
      Principal Holders, ICO Global and DBSD.

                           

                          “Valuation
      Event” means a Sale Event, a Public Merger Event, a Qualified
      Offering, a Liquidation Event or an Asset Sale Event.

                           

                          “Sale Event”
      means the cash acquisition by any person of a controlling interest in
      DBSD.

                           

                          “Public Merger
      Event” means any merger, business combination or acquisition
      involving DBSD, or all or substantially all of the assets of DBSD, where
      the surviving company or acquiror is a public reporting company and the
      consideration paid to the stockholders of DBSD consists of equity
      securities that are listed on a United States national securities
      exchange.

                           

                          “Qualified
      Offering” means a bona fide underwritten public offering by a
      nationally recognized investment banking firm registered under the
      Securities Act (i) that results in gross proceeds to DBSD of not less than
      $150 million; and (ii) following which the Common Stock is listed on a
      United States national securities exchange.

                          “Liquidation
      Event” means the dissolution or liquidation of DBSD.

                           

                          “Asset Sale Event” means the sale, for cash,
      of all or substantially all of the assets of DBSD and its subsidiaries, on
      a consolidated basis.

                           

                          “Equity
      Valuation” means the aggregate value for the number of shares of
      Common Stock outstanding immediately following the Restructuring
      (appropriately adjusted for stock splits, recombinations and similar
      events) (the “Original
      Shares”) based on (i) in the case of a Sale Event, the actual value
      per share received in respect of the Original Shares as a result of the
      Sale Event; (ii) in the case of a Public Merger Event, the per share VWAP
      of the equity securities received in such transaction in respect of the
      Original Shares during any Reference Period following such Public Merger
      Event and ending prior to the expiration date of the Warrants; (iii) in
      the case of a Qualified Offering, the per share VWAP of the Original
      Shares during any Reference Period following the Qualified Offering and
      ending prior to the expiration date of the Warrants; (iv) in the case of
      an Asset Sale Event, the per share value of the Original Shares, after
      reduction for all liabilities (including contingent liabilities) of DBSD,
      of the consideration received by DBSD as a result of the sale; and (v) in
      the case of a Liquidation Event, the per share value of the consideration
      received by DBSD Stockholders in respect of the Original Shares as a
      result of the Liquidation Event; in each case increased by the aggregate
      value of any dividends or distributions made to DBSD stockholders from the
      date of the consummation of the Restructuring until the Valuation
      Event.

                        

                

              

               

              
                
                  
                  

                

                
                  3

                  
                    

                  

                

                
                  
                  

                

              

              For Settlement Purposes Only –
Subject to FRE Rule 408

               

              
                
                  
                    
                      
                        
                          	 	
                                  “Reference
      Period” means, any period of 40 consecutive trading days during
      which (a) the equity securities in question during each such day have a
      daily trading volume not less than $13 million, (b) no Holder is subject
      to any lock-up or similar agreement which has not fully expired or been
      terminated, (c) no holder is subject to any “black out” or other trading
      restriction imposed by the issuer (including as a result of being
      affiliated with any director or having received any information from DBSD)
      and (d) the issuer has maintained the effectiveness of a shelf
      registration enabling all of the Holders to freely transfer shares of
      Common Stock under the Securities Act of 1933, as amended (the “Securities
      Act”).

                                
	 	 
	
                                  Treatment
      of Other Classes of Claims

                                	
                                  The
      obligations owed to other creditors of DBSD not specifically addressed
      herein (“Other
      Creditors”) will remain outstanding under their current terms;
      provided, that DBSD and the Principal
      Holders shall mutually agree upon the treatment for the Other
      Creditors.

                                
	 	 
	
                                  Treatment
      of Auction Rate Securities

                                	
                                  DBSD
      shall not sell, transfer, liquidate or otherwise monetize (collectively, a
      “Sale”)
      any Auction Rate Security (as defined in the Forbearance Agreement)
      without the prior consent of the Principal Holders unless such Sale
      results in gross proceeds to DBSD of not less than the par or stated value
      of such Auction Rate Security, provided, however, that
      DBSD may pledge any Auction Rate Security issued by UBS as collateral to
      UBS pursuant to the terms of the UBS Facility (as defined in the
      Forbearance Agreement), and the Principal Holders agree to take such other
      action reasonably necessary to effect their consent to the action set
      forth in the foregoing
proviso.

                                

                        

                      

                    

                     

                    
                      
                        
                        

                      

                      
                        4

                        
                          

                        

                      

                      
                        
                        

                      

                       

                    

                    For Settlement Purposes Only –
Subject to FRE Rule 408

                     

                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            Working
      Capital

                                                          	
                                                            DBSD’s
      working capital needs are to be met based on best market option/capital
      raising options.  The existing working capital facility may be
      refinanced in whole or in part by an affiliate of ICO Global, but (i) the
      terms and conditions of any such refinancing must be acceptable to the
      Principal Holders and (ii) all Holders must be offered a pro rata right to
      participate in any such refinanced working capital
    facility.

                                                          
	 	 
	
                                                            Board
      of Directors of Restructured DBSD

                                                          	
                                                            The
      Board of Directors of DBSD shall be comprised of five to ten members, with
      one member being designated by the Existing Stockholder, and the remaining
      members being designated by the Holders in their sole discretion on terms
      to be negotiated among the Holders.

                                                            Each
      new Board member shall be entitled to execute a D&O Indemnification
      Agreement in form reasonably acceptable to such member and DBSD upon his
      or her appointment.

                                                          
	 	 
	
                                                            Transition
      Services

                                                          	
                                                            The
      provision of transition
      services by DBSD to ICO Global and vice versa to be formalized in a
      transition services agreement.  The agreement shall provide for
      appropriate transition periods and that all third party services shall be
      passed through at cost.

                                                          
	 	 
	
                                                            Registration
      Rights Agreement

                                                          	
                                                            DBSD
      shall execute a registration rights agreement in form and substance
      mutually acceptable to the Principal Holders and the Existing Stockholder
      upon consummation of the Restructuring.

                                                          
	 	 
	
                                                            Stockholders’
      Agreement

                                                          	
                                                            A
      Stockholders’ Agreement in form and substance mutually acceptable to the
      Principal Holders and the Existing Stockholder shall have been executed by
      DBSD, the Holders and the Existing Stockholder on or prior to the
      consummation of the Restructuring.  The Stockholder Agreement
      will provide that the Holders will agree to vote their respective shares
      against any proposed reverse stock split, merger or recapitalization that
      results in a “squeeze out” or cancellation of any Warrants or Common Stock
      held by the Existing Stockholder unless such transaction provides for the
      receipt of consideration of the same type and amount, on a per share
      basis, by all outstanding shares of Common Stock of DBSD (it being
      understood that any such transaction may provide for per share
      consideration below any of the valuation thresholds for the exercise for
      the Warrants, in which case the holders of the Warrants would not be
      entitled to exercise the Warrants in connection with any such
      transaction).

                                                          

                                                  

                                                   

                                                  
                                                    
                                                      
                                                      

                                                    

                                                    
                                                      5

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                     

                                                  

                                                  For Settlement Purposes Only –
Subject to FRE Rule 408

                                                   

                                                  	
                                                          Agreements
      with “Insiders”

                                                        	
                                                          Any
      and all agreements with any insider, except for those specifically agreed
      to in writing by the Principal Holders, shall be terminated on or before
      the consummation of the Restructuring and all accrued but unpaid amounts
      owing to them (except for unpaid salary and amounts owing pursuant to any
      then existing employment agreements) shall be waived upon consummation of
      the Restructuring.

                                                        
	 	 
	
                                                          Drag/Tag
      Rights/Preemptive 

                                                          Rights
      in the Stockholders Agreement

                                                        	
                                                          The
      Existing Stockholder will have customary tag-along rights with respect to
      certain sales by the Holders.  The Holders will have customary
      drag-along right to cause the Existing Stockholder to participate in
      certain sales by the Holders.

                                                           

                                                          The
      Holders and the Existing Stockholder will have preemptive rights with
      respect to the issuance of new equity securities of DBSD (subject to
      customary carve-outs).

                                                        
	 	 
	
                                                          Charter
      Documents

                                                        	
                                                          All
      charter documents for DBSD to be satisfactory to DBSD, ICO Global and the
      Principal Holders.

                                                        
	 	 
	
                                                          Mechanics

                                                        	
                                                          The
      parties shall agree upon the precise mechanics for implementing each of
      the transactions contemplated by the Restructuring and the Pre-Arranged
      Plan.

                                                        
	 	 
	
                                                          Documentation

                                                        	
                                                          All
      documentation prepared in connection with the Restructuring, including
      without limitation, the Definitive Restructuring Documents, and any
      documents, motions, pleadings, orders or the like prepared or filed in
      connection with the chapter 11 cases shall be in form and substance
      satisfactory to the Principal Holders, ICO Global and
  DBSD.

                                                        
	 	 
	
                                                          Releases

                                                        	
                                                          The
      Holders shall provide a release to the Existing Stockholder and existing
      directors and officers and their respective affiliates and
      advisors.  DBSD and its affiliates, including ICO Global, shall
      execute a release of any claims they may have against the Holders, their
      respective officers and directors and their respective affiliates and
      advisors.

                                                        
	 	 
	
                                                          Tax
      Issues

                                                        	
                                                          Parties
      to discuss methods to preserve value of available NOLs and other tax
      considerations.

                                                        
	 	 
	
                                                          Fees
      & Expenses

                                                        	
                                                          DBSD
      shall pay the fees and expenses of the Holders in connection with the
      Restructuring, including the advisors to the Holders, who shall be
      selected by the Principal Holders.  DBSD shall, in advance of
      any chapter 11 filings, pay all invoiced accrued and unpaid fees and
      expenses of UBS and Milbank Tweed through the date immediately preceding
      the anticipated filing date, and provide a customary retainer to such
      advisors.

                                                        
	 	 

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                   

                                                  
                                                    
                                                      
                                                      

                                                    

                                                    
                                                      6

                                                      
                                                        

                                                      

                                                    

                                                    
                                                      
                                                      

                                                    

                                                     

                                                  

                                                  For Settlement Purposes Only –
Subject to FRE Rule 408

                                                   

                                                  	
                                                          Strategic
      Discussions

                                                        	
                                                          To
      the extent that DBSD or ICO Global have discussions with any third party
      concerning any business combination or other strategic transaction
      involving DBSD or any significant portion of its assets (a “Strategic
      Transaction”), the Principal Holders’ advisors, specifically UBS
      and Milbank Tweed, shall be entitled to participate in any such
      discussions, subject to required confidentiality arrangements (which shall
      provide that the advisors may receive information and participate in such
      discussions if they enter into a customary confidentiality
      arrangement).  Neither DBSD nor ICO Global shall enter into any
      binding agreement or commitment with respect to any Strategic Transaction,
      including any agreement or commitment obligating DBSD to pay or reimburse
      expenses, break-up fees or other fees without the prior consent of the
      Principal Holders.

                                                        
	 	 
	
                                                          No
      Waiver

                                                        	
                                                          Nothing
      herein shall affect in any way, nor be deemed a waiver of, any of the
      rights of DBSD or any Holder under the indenture for the Notes or any
      other document or under applicable law.  Nothing herein is
      intended to waive, limit, or restrict the ability of any of the foregoing
      parties, in whatever capacity, to protect and preserve their rights,
      remedies and interests against DBSD or any third party, whether under the
      indenture for the Notes, any other document or applicable
    law.

                                                        
	 	 

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

            
              
                
                

              

              
                7

                
                  

                

              

              
                
                

              

               

            

            
              Attachment
1

               

            

          

        

      

    

    Principal
Holders

     

    GOLDENTREE

     

    GOLDMAN
SACHS & CO

     

    OCH-ZIFF
CAPITAL MANAGEMENT GROUP

     

    PLAINFIELD
ASSET MANAGEMENT

     

    RAPTOR
GROUP

     

    HIGHLAND
CAPITAL MANAGEMENTCertain
portions of this agreement have been redacted pursuant to a request for
confidential treatment submitted to the Securities and Exchange Commission
(“SEC”).  The redacted portions are identified by a bracketed asterisk
as follows: [*].  The redacted portions of the agreement have been
filed separately wit the SEC pursuant to Zevotek’s application for confidential
treatment

    

    DISTRIBUTION
AGREEMENT

    

    This
Exclusive Distribution Agreement is made by and between Zevotek Inc, a Delaware
corporation (the “Company”) located at 134 Cedar Street, Nutley, New Jersey and
Media Shop located at Schliessa 3 FL- 9495 Triesen (LIECHTENSTEIN) (the
“Distributor”) with an effective date of April 28, 2009.

    

    Whereas
the Company desires to engage a distributor to exclusively market and distribute
the Company’s Ionic Bulb product (the “Product”) within the Territory (as
defined below).  For purposes of this Agreement, the “Territory” shall
mean: Germany, Austria, Switzerland, Liechtenstein, Czech Republic, Slovakia,
Hungary, Romania and Poland.

    

    NOW
THEREFORE in consideration of the mutual promises contained herein, the
sufficiency of which is hereby acknowledged, the Company and the Distributor
hereby agree as follows

    

    
      	
              
              

            	
              1.1.

            	
              Exclusive
      Marketing and Distribution Rights. Company hereby grants to Distributor
      the exclusive (subject to Section 4.1 below) rights to advertise, promote,
      market, and sell and otherwise distribute the product through all channels
      of distribution (including but not limited to print, radio, television,
      satellite cable and television; catalog; internet direct mail; and retail)
      within the Territory. Company acknowledges and agrees that in reliance on
      the foregoing grant of rights, Distributor is entitled to represent
      (subject to Section 4.1 below) that it is the sole Distributor for the
      Company’s Product in the Territory. Distributor agrees that it and its
      affiliates shall only purchase the Product through the Company during the
      term of this agreement. Distributor represents, warrants, covenants and
      agrees for itself and its affiliates that during the term of this
      agreement and for one year thereafter, it will not (and will cause its
      affiliates not to) market, promote distribute or sell any other product
      similar to or competitive with the Product, in design and function through
      its company or its affiliates.

            

    

    

    
      	
              
              

            	
              1.2.

            	
              License.
      Company hereby grants to Distributor a exclusive license (subject to
      Section 4.1 below) to use the Company ́s 2 minute short form commercial
      (“infomercial”) for the Product, its marketing materials, trademarks,
      trade names, copyright, to the Product (collectively the “Materials”) in
      all channels of distribution in the Territory. Distributor shall also have
      the right to use the 15 minute extended commercial throughout the
      Territory.

            

    

    

    
      	
              
              

            	
              1.3.

            	
              Supplemental
      Materials. Company shall supply Distributor with promotional material and
      information, if available as requested by Distributor including but not
      limited to master tapes of the infomercial, instructional material and
      packaging etc. (collectively “Supplemental material”) Distributor may,
      with prior written consent of the Company, modify the infomercial or
      redesign the supplemental material by the Distributor.  In
      addition, the Company must approve the final version of any modified
      version of the infomercial or any supplemental material prior to use by
      the Distributor.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              Manufacture,
      Product, and Insurance: Company shall manufacture all the goods and shall
      use an independent agency to inspect the goods for quality control, for
      goods purchased by the distributor.

            

    

    

    
      	
              3.

            	
              Purchase
      terms: The price per unit is $[*] for the 15W Product and $[*] per for the
      23W Product (each a “Unit Fee”) FOB Company’s applicable warehouse or
      place of production.  Full Payment is required before shipment
      is released to Distributor. No goods will be released before payment has
      been received in full by Company. All payments shall be made by wire
      Transfer or irrevocable L/Cs (“ILC”).  In the event that
      Distributor elects to pay be ILC, Distributor agrees such ILC shall be
      issued by a United States bank acceptable to the Company (The “Bank”),
      payable in US dollars in an amount equal to the total price of the order
      placed by Distributor.  The ILC shall be in a form acceptable to
      the Company. Company warrants that other than the purchase price, the
      distributor shall have no obligation to pay any royalties or other monies
      in order to market the Product as contemplated herein; provided, however,
      Distributor agrees to pay all charges, including without limitation,
      transportation charges and insurance premiums, and shall be responsible
      for all taxes, duties and other governmental assessments. If the price per
      unit changes due to increase in the cost of raw material, the Distributor
      will be given advance notice of one month, prior to price
      change.

            

    

    

    
      	
              
              

            	
              3.1.

            	
              The
      Product includes: Each unit consists of one CFL Ionic Bulb in a blister
      package in 15W or 23W (US Patent US2006/00778460; International Patent
      PCT/KR2005/02997 and Korea Patent KR
  10-2004-74598).

            

    

    

    
      	
              4.

            	
              Term:
      Subject to the terms and conditions of this agreement, the “Term” of this
      agreement shall be one (1) year from the effective date, and will
      automatically renew for one year successive term provided, the minimum
      quantities are met by Distributor as outlined in Paragraph 4.1
      hereunder.

            

    

    

    
      	
              
              

            	
              4.1.

            	
              Minimum
      Quantity requirement: The Distributor agrees that it will purchase the
      following quantities per year to maintain its exclusive rights during the
      term of this agreement: 5,000 units per month for the whole
      Territory.  In the event that Distributor fails to purchase
      5,000 units in any one month, the rights under Sections 1.1 and 1.2 above
      shall become non-exclusive.  However, if Distributor purchases
      60,000 units of the Product in the first 12 months after execution of this
      Agreement, the term will continue for another year as set forth in Section
      4 above.  [*]. Distributor will start running the TV commercials
      and introduce the Product to Retailers. If sales of the initial 5,000 Unit
      order (the “Initial Order”) are satisfactory Distributor will place a new
      purchase order for 5,000 units of the Product as per the Terms of this
      Agreement.  [*].

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
              
              

            	
              4.2.

            	
              Wind
      Down Period: Upon the expiration of the term of this agreement, all rights
      and obligations of the distributor shall continue for a period of 3 months
      following such a date of expiration including the right to sell off all
      product for which orders have been placed prior to expiration, and to
      process and fulfill orders for product resulting from commitments for
      advertisements or other promotions of the
  product.

            

    

    

    
      	
              5.

            	
              Distributor
      Warrants and Covenants:  Distributor represents, warrants, and
      agrees as follows:

            

    

     

    
      	
              
              

            	
              5.1.

            	
              it
      is an entity duly organized, validly existing and in good standing under
      the laws of jurisdiction of organization and (ii) it has full power
      authority, without the consent approval of any other person, to execute
      and deliver this agreement and to consummate the transactions contemplated
      by this agreement;

            

    

     

    
      	
              
              

            	
              5.2.

            	
              to
      provide the Company with monthly nonbinding good-faith forecasts of its
      anticipated requirements and shipping dates for the three (3) month period
      following each forecast (or, if shorter, the remaining term of this
      Agreement);

            

    

     

    
      	
              
              

            	
              5.3.

            	
              not
      to (i) disassemble, decompile, or otherwise reverse engineer the Products
      or otherwise attempt to learn the structure, inventions, or ideas
      underlying the Products, except to the extent this clause (i) is expressly
      prohibited by applicable law, (ii) rent, lease, or otherwise provide
      temporary access to a Product, (iii) copy of modify the Product, or (iv)
      allow others to do any of the
foregoing;

            

    

     

    
      	
              
              

            	
              5.4.

            	
              to
      use its best efforts to successfully market (including, without
      limitation, production and broadcasting of infomercials relating to the
      Product), distribute, and support the Product on a continuing basis and to
      comply with good business practices and all laws and regulations relevant
      to this Agreement or the subject matter hereof.  In its
      distribution efforts, Distributor will use the then-current names used by
      the Company for the Product (but will not represent or imply that it is
      the Company or is a part of the Company); provided that all advertisements
      and promotional materials shall be subject to prior written approval of
      the Company, which approval shall not be unreasonably withheld, and,
      provided further, that no other right to use any name or designation is
      granted by this Agreement; and

            

    

     

    
      	
              
              

            	
              5.5.

            	
              to
      keep the Company informed as to any problems encountered with the Product
      and any resolutions arrived at for those problems, and to communicate
      promptly to Company any and all modifications, design changes, or
      improvements of the Products suggested by any customer, employee, or
      agent.  Distributor further agrees that Company shall have and
      is hereby assigned any and all right, title, and interest in and to any
      such suggested modifications, design changes, or improvements of the
      Product, without the payment of any additional consideration therefor
      either to Distributor, or its employees, agents or
      customers.  Distributor will also promptly notify Company of any
      infringement of any trademarks or other proprietary rights relating to the
      Product.

            

    

     

    
      	
              6.

            	
              Company
      Warrants and Covenants.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      	
              
              

            	
              6.1.

            	
              The
      Company represents and warrants that (i) it is an entity duly organized,
      validly existing and in good standing under the laws of jurisdiction of
      organization and (ii) it has full power authority, without the consent
      approval of any other person, to execute and deliver this agreement and to
      consummate the transactions contemplated by this agreement;
      and

            

    

    

    
      	
              
              

            	
              6.2.

            	
              The
      Company makes no warranties with respect to the Product and disclaims all
      warranties, including warranties of merchantability and fitness for a
      particular purpose.  Distributor is fully responsible for
      satisfaction of its customers and will be responsible for all claims,
      damages, settlements, expenses and attorneys’ fees incurred by Company
      with respect to Distributor’s customers or their
  claims.

            

    

     

    
      	
              7.

            	
              Confidentiality:
      Each of the parties agree not to disclose (i) confidential information
      regarding the products construction, technical information, designs,
      drawings, concept ideas, sketches, wordings, media or marketing
      strategies, or composition (ii) confidential information regarding the
      other party, or such other party ́s companies, products, operations, or any
      other information which may be deemed a trade secret, or is sensitive in
      nature and not otherwise known to public including the contents of this
      agreement (“information”) without the prior written consent of other
      party.

            

    

    

    
      	
              8.

            	
              Indemnification:
      Distributor agrees to indemnify and hold the company, its succesors,
      assigns, licensees, agent`s associates, affiliates, directors, and
      employees harmless from and all claims, damages, costs, and expenses,
      attorney ́s fees, recoveries and settlements resulting from the breach of
      any of its Guarantees or warranties under this
  agreement.

            

    

    

    
      	
              9.

            	
              Insurance:
      Distributor shall carry comprehensive general and product liability
      insurance written by a company authorized to write insurance in the type
      as may be necessary to protect its interests and fulfill its obligations
      under this Agreement in an amount of at least One Million and 00/100
      Dollars (US $1,000,000) per occurrence during the term of this Agreement
      and any extension or renewal thereof and for a period of three (3) years
      after the expiration or termination of this Agreement and any extension or
      renewal thereof and the Company shall be named as addtional insured under
      such policy.  Upon request, each party shall provide the other
      party with a certificate of insurance evidencing the minimum coverage
      required by this Section 9.  Notwithstanding the foregoing, this
      Section 9 shall not limit the liability of either party pursuant to this
      Agreement.

            

    

     

    
      	
              10.

            	
              Independent
      and separate companies: Company and Distributor enter into this agreement
      as separate and independent entities. Company and Distributor will each be
      responsible for the payment of the respective compensation, wages, taxes,
      dues, employment benefits and operating expenses in connection with the
      separate operations of their respective business, corporations and
      companies. This agreement does not create a partnership, agency or joint
      venture relationship between Company and
  Distributor.

            

    

    

    
      	
              11.

            	
              Packaging
      and Trademarks.  The Company and Distributor shall mutually
      agree upon any packaging artwork, labeling artwork, packaging and labeling
      specifications for the Product.  Distributor shall procure all
      required labeling and shall be responsible for complying with all
      governmental labeling standards, if any.  All trademarks used
      with the Product shall be the property of the Company, and all goodwill
      resulting from use of the trademarks shall inure wholly to the benefit of
      the Company.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              12.

            	
              Entire
      Agreement: This agreement contains the entire understanding between
      Company and Distributor and supersedes any prior agreements, written or
      Oral, respecting the subject matter of this
  agreement.

            

    

    

    
      	
              13.

            	
              Termination

            

    

    

    
      	
              
              

            	
              13.1.

            	
                     
      If any party is in material breach of any obligation under this Agreement,
      the party contending there is a breach (the charging party) may give
      written notice to the accused party of the nature of the breach and shall
      provide thirty (30) days (10 days in the case of a failure to pay) after
      the giving of such notice for the breach to be cured to the reasonable
      satisfaction of the charging party.  If the breach is not cured
      to the reasonable satisfaction of the charging party, the charging party
      by notice to the accused party shall have the right to immediately
      terminate this Agreement;

            

    

    

    
      	
              
              

            	
              13.2.

            	
                     
      Each party understands that the rights of termination hereunder are
      absolute and that it has no rights to a continued relationship with the
      other after termination except as expressly stated
      herein.  Neither party shall incur any liability whatsoever for
      any damage, loss, or expenses of any kind suffered or incurred by the
      other (or for any compensation to the other) arising from or incident to
      any termination of this Agreement by such party that complies with the
      terms of the Agreement whether or not such party is aware of any such
      damage, loss, or expenses;

            

    

    

    
      	
              
              

            	
              13.3.

            	
                     
      In the event of any termination, Company may elect to continue or
      terminate any order then pending;
and

            

    

    

    
      	
              
              

            	
              13.4.

            	
                     
      Termination is not the sole remedy under this Agreement and, whether or
      not termination is effectuated, all other remedies will remain
      available.

            

    

    

    
      	
              14.

            	
                Remedies
      upon Termination  In the event that Distributor breaches the
      terms and conditions of this agreement, Company shall be entitled
      to

            

    

    

    
      	
              
              

            	
              14.1.

            	
                     
      Injunctive and equitable relief against Distributor to prevent continuance
      of the breach of the provision of this Agreement or to prevent Distributor
      from performing services or granting rights to others in violation of this
      agreement.  Distributor agrees that the Company shall be
      immediately and irreparably harmed by Distributor’s violation of any of
      the provisions of this Agreement and that damages the Company will suffer
      may be difficult or impossible to measure. Therefore, upon any threatened,
      actual or impending violation of this Agreement, the Company shall be
      entitled to the issuance of a restraining order, preliminary and permanent
      injunction, without bond, restraining or enjoining such violation by
      Distributor or Distributor’s agent’s or representatives or any other
      person in receipt of information disclosed in violation of this Agreement.
      Such remedy to the Company shall be in addition to and not in limitation
      of any other remedy which may otherwise be available at law or in equity
      in the event of any breach of the provisions of this
      Agreement;

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              
              

            	
              14.2.

            	
                     
      Payment of Company’s attorney`s
fees;

            

    

    

    
      	
              
              

            	
              14.3.

            	
                     
      Any award of liquidated damages herein will not preclude payment of
      product due or payable to company under this agreement. The parties agree
      that it is impossible to determine with any reasonable accuracy the amount
      of prospective damages to company upon breach by Distributor of this
      agreement, and that the liquidated damages set forth above are reasonable,
      and not a penalty, based upon the circumstances oft the parties at the
      time of entering into this Agreement and with due regard to future
      expectations; and

            

    

    

    
      	
              
              

            	
              14.4.

            	
                     
      No failure or delay by the Company in exercising any right, power, or
      privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise thereof preclude any other or future exercise
      thereof of any right, power, or privilege
  hereunder.

            

    

    

    
      	
              15.

            	
              The
      laws of the state of New Jersey will govern the interpretation of this
      agreement and the rights and obligations of the parties to it. Distributor
      hereby consents to the exclusive jurisdiction of the state and federal
      courts sitting in Bergin County, New Jersey in any such
      action.

            

    

    

    
      	
              16.

            	
              Notices:
      Any notice given under this agreement shall be in writing and shall only
      deemed proper notice if served personally or by registered or certified
      first class mail with return receipt requested and addressed to the party
      to whom the notice is intended at the following
  address.

            

    

    

    Company:            Zevotek,
Inc

    134 Cedar Street

    Nutley, New Jersey

    Attn: President

    Facsimile:

    

    Distributor:          Media
Shop

    Schliessa 3

    FL- Triesen

    LIECHTENSTEIN

    Facsimile:

    

    
      	
              17.

            	
              Facsimile
      signatures shall be deemed as original signatures for purposes of this
      agreement, with such facsimile signatures having the same legal effect as
      original signatures.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
WITNESS OF HEREOF, the parties hereto have executed this agreement is of the
effective date herein.

     

    
      
        	
                “Company”

              	
                “Distributor”

              
	
                Zevotek
      Inc

              	
                Media
      Shop AG

              
	 
      	 
      
	
                By
      _______________________________

              	
                By
      _______________________________

              
	
                Name
      _____________________________ 

              	
                Name
      _____________________________

              
	
                Title
      ______________________________

              	
                Title
      ______________________________

              
	
                Date
      ______________________________

              	
                Date
      ______________________________

              

      

    

     

    
      
        
        

      

      
        7

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