Document:

Exhibit 10.9

 

THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS
THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is dated as of March 3,
2008, by and between BRAM GOLDSMITH (“Goldsmith”), on the one hand, and CITY
NATIONAL CORPORATION, a Delaware corporation (“CNC”) and CITY NATIONAL BANK, a
national banking association (“CNB”), on the other hand.

 

WHEREAS,
the parties have entered into that certain Employment Agreement, dated as of May 15,
2003, as amended (as amended, the “Agreement”);

 

WHEREAS,
the initial term of the Agreement was two years from May 15, 2003 to May 15,
2005, as amended to extend the term for an additional two years to May 14,
2007, and further amended to extend the term for an additional year to May 14,
2008;

 

WHEREAS,
the parties wish to amend the Agreement to further extend the term for an
additional one year until May 14, 2009, and the Board of Directors of CNB
and CNC have approved the extension of the term of the Agreement for an
additional one year on the same terms and conditions as in effect currently;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1.             All capitalized terms used herein
and not otherwise defined herein shall have the meanings set forth in the
Agreement.

 

2.             Section 3 of the Agreement is
hereby amended by substituting for the words “commence on May 15, 2003 and
terminate five (5) years thereafter” the words “commence on May 15,
2003 and terminate six (6) years thereafter.”

 

3.             The Agreement provided for various
policies of life insurance. The parties, Elaine Goldsmith and The Goldsmith
1980 Insurance Trust have entered into that certain Memorandum of Agreement,
dated July 31, 2007, incorporated herein by reference, pursuant to which,
among other matters, such agreements regarding life insurance were
extinguished.

 

4.             Except as amended hereby, the
Agreement shall remain in full force and effect.

 

5.             This Amendment shall be governed
by, and construed in accordance with, the laws of the State of California.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment to Employment
Agreement as of the date first written above.

 

	
  /s/Bram Goldsmith

  	
   

  
	
  Bram
  Goldsmith

  

 

	
  CITY
  NATIONAL CORPORATION

  	
   

  	
    CITY
  NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
  By:

  	
             /s/
  Christopher J. Carey

  	
   

  	
  By:

  	
       /s/ Christopher J.
  Carey

  
	
  Name: 

  	
  Christopher
  J. Carey

  	
   

  	
      Name: 

  	
  Christopher
  J. Carey

  
	
  Title:
  

  	
  EVP &
  CFO

  	
   

  	
      Title: 

  	
  EVP &
  CFOEXHIBIT 10.3

 

Summary of Executive Salary and Bonus Arrangements

 

The table below summarizes
the current annual salary and bonus arrangements we have with each of our
current executive officers. All of the compensation arrangements we have with
our executive officers, including with respect to annual salaries and bonuses,
are reviewed and may be modified from time to time by the Compensation
Committee of our Board of Directors. The Compensation Committee approved the
annual salary and bonus arrangements noted in the table below.

 

We have written employment
arrangements with each of our executive officers, and a copy of each such
employment arrangement has been filed as an exhibit to the accompanying
Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for
the year ended December 31, 2007 filed with the SEC on March 17,
2008, as applicable. The non-salary and bonus components of our compensation
arrangements with our executive officers, including with respect to severance,
option grants and other benefits, are described in those respective agreements.
We generally pay bonuses, if any, to our executive officers on a quarterly
basis. Mr. Hayek is paid bonus annually, if any. Certain of our executive
officers participate in the executive bonus plan that was adopted by the
Compensation Committee on February 9, 2005, a description of which is
filed as Exhibit 10.33 to our Annual Report on Form 10-K for the year
ended December 31, 2007 filed with the SEC on March 17, 2008. In
addition to the bonus arrangements noted in the table below, all of our
executive officers are eligible for discretionary bonuses as determined from
time to time by the Compensation Committee.

 

	
  Executive Officer

  	
   

  	
   

  	
  Annual

  Base Salary

  	
   

  	
   

  	
   

  	
  Bonus

  	
   

  	
   

  
	
  Frank F. Khulusi 

  Chairman, President and Chief Executive Officer

  	
   

  	
  $

  	
  800,000

  	
   

  	
  (1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brandon H. LaVerne 

  Interim Chief Financial Officer, Treasurer and Chief Accounting Officer

  	
   

  	
  $

  	
  206,748

  	
   

  	
  (2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kristin M. Rogers 

  Executive Vice President—Sales and Marketing

  	
   

  	
  $

  	
  335,000

  	
   

  	
  (1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Daniel J. DeVries 

  Executive Vice President—Consumer

  	
   

  	
  $

  	
  275,000

  	
   

  	
  (1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joseph B. Hayek 

  Executive Vice President—Corporate Development and Investor Relations

  	
   

  	
  $

  	
  225,000

  	
   

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert I. Newton 

  General Counsel and Secretary

  	
   

  	
  $

  	
  300,000

  	
   

  	
  (4)

  	
   

  
											

 

(1)  Mr. Khulusi, Ms. Rogers and Mr. DeVries are eligible to
participate in our executive bonus plan referenced above.

 

(2)  Mr. LaVerne is eligible to receive an annual bonus of up to
$56,000, paid in quarterly installments, as well as discretionary bonuses as
determined from time to time by the Compensation Committee.

 

(3)  Mr. Hayek is eligible to receive an annual discretionary bonus in
the initial targeted annual amount of $50,000, which will be paid annually in
accordance with a to be established bonus plan or program.

 

(4)  Mr. Newton is eligible to receive an annual bonus of up to
$120,000, paid in quarterly installments, as well as discretionary bonuses as
determined from time to time by the Compensation Committee.Exhibit 10.3

 

CONFIDENTIAL TREATMENT

 

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

 

SPECTRUM MANAGER

 

LEASE AGREEMENT

 

    
This Spectrum Manager Lease Agreement (“Lease Agreement”) is entered
into as of this 31st day of October, 2007, between Globalstar
Licensee LLC, a Delaware limited liability company and a wholly-owned
subsidiary of Globalstar, Inc. with its principal place of business
located at 461 South Milpitas Blvd., Building 5, Milpitas, CA 95035 (“Lessor”),
and Open Range Communications, Inc., a Delaware corporation with its
principal place of business located at 6465
South Greenwood Plaza Blvd., Suite 820 Centennial, CO 80111 (“Lessee”)
(collectively the “Parties” or, individually, a “Party”).

 

W I T N E S S E T H

 

     WHEREAS,
Lessor holds the licenses issued by the Federal Communications Commission (“FCC”)
identified on Part 1 of Exhibit A hereto (each an “FCC License” and
collectively the “FCC Licenses”); and

 

     WHEREAS,
Lessor and Lessee desire to enter into this Lease Agreement in order: (i) to
grant Lessee the right to use up to 20 MHz of spectrum covered by the FCC
Licenses that is authorized today or in the future for Ancillary Terrestrial
Component (“ATC”) service, as more specifically set forth on Part 2 of Exhibit A
hereto (collectively, the “GSAT Spectrum”) to provide the ORC Services (as
defined below) in certain named geographic markets within the United States, as
set forth herein (collectively, the “Leased Territories”); (ii) to
establish the terms under which Lessee may construct and operate terrestrial
wireless facilities in the Leased Territories utilizing the GSAT Spectrum (the “System”);
and (iii) to memorialize the respective rights and responsibilities of
Lessor and Lessee with respect to the operations of the System consistent with
the Communications Act of 1934, as amended, and the rules, regulations and
policies of the FCC (collectively, the “Communications Laws”) and the terms and
conditions set forth herein;

 

     NOW
THEREFORE, in consideration of the mutual promises contained herein,
the Parties hereby agree as follows:

 

1.                                    Agreement to Lease.

 

(a)                                  Spectrum
Usage Rights. Subject to the terms and conditions set forth herein
(including, without limitation, the condition precedent of FCC approval as 

 

 

set forth in Section 9
below), Lessor hereby grants to Lessee the right to use the GSAT Spectrum (the “Leased
Spectrum”), beginning on the Lease Commencement Date (as defined below) and
until the expiration or termination of this Lease Agreement (the “Spectrum Usage
Rights”) to provide the ORC Services within the geographic boundaries set forth
on Exhibit B hereto (the “Initial Markets”), and within the Deferred Pop
Markets (as defined below) and all other geographic boundaries that are granted
to Lessee pursuant to the Options (as defined below) when such grants are
effective hereunder.  The Parties
acknowledge that the Initial Markets include 6,000,000 Pops, with “Pops” being
defined as the population of a “Place,” as used for the reporting of decennial
census data, including census designated places, consolidated cities and
incorporated places, based on 2000 Census Data and extrapolated to 2006 using
county growth rate demographic information as provided by Claritas and included
in Exhibit C hereto.  At any time prior
to the beginning of its build-out in a particular Initial Market, Lessee may
with prior notice to Lessor substitute, in place of such Initial Market, one or
more alternative geographic markets within the United States and outside the [*]
containing an equivalent number of Pops to the Initial Market so replaced (“Substituted
Markets”), and upon such notice Exhibit B shall be deemed amended to
replace such Initial Market with the Substituted Markets; provided, however,
that in no case will the Initial Markets include in excess of [*] Pops.

 

(b)                                Permitted
Use. Lessee may use the Leased Spectrum to offer wireless broadband
internet access services utilizing data rates of [*] Mbps downlink and [*] Kbps
uplink over the System (the “ORC Services”), but only if and to the extent that
such use and ORC Services (i) comply with all terms and conditions of the
FCC Licenses and the Communications Laws, as currently in effect or as they may
be modified in the future, including without limitation those Communications Laws
related to ATC service, and (ii) do not interfere with the full operation
of the mobile satellite service (“MSS”) system operated by Lessor and its
affiliates (including all gateway earth stations, mobile earth stations, and
other facilities and equipment related thereto), their full use of the FCC
Licenses outside the Leased Spectrum (subject to Section 10(g) hereof),
and their provision of communications services outside the Leased Territories,
and so long as the System and Lessee’s customer premises equipment is capable
of communicating with such MSS system in accordance with Lessor’s technical
specifications.

 

(c)                                Scope
of Spectrum Usage Rights. Subject at all times to the review,
supervision and ultimate control of Lessor, the Spectrum Usage Rights granted
hereunder convey to Lessee the right and obligation to use the Leased Spectrum
to purchase, construct and operate the System to provide the ORC Services
within the Leased Territories. The Spectrum Usage Rights granted to Lessee
include, among other things, the right and obligation to the extent consistent
with the Communications Laws:

 

(i)                                   design
and construct the System, including determining the number and location of
radio facilities to be constructed;

 

2

 

(ii)                                identify,
obtain and maintain, in its own name, full legal right to all real property
necessary to deploy the System;

 

(iii)                             obtain
and maintain, in its own name, appropriate zoning approval for the System;

 

(iv)                            purchase,
in its own name, all equipment as may be necessary or appropriate for the
construction and testing of the System;

 

(v)                               provide
administrative, legal, accounting, billing, credit, collection, insurance,
purchasing, clerical and such other general services as may be necessary or
appropriate for the construction, testing, maintenance and operation of the
System;

 

(vi)                            provide
operational, engineering, maintenance, repair and such other technical services
as may be necessary for the construction, testing, maintenance and operation of
the System;

 

(vii)                         control
access to and from the System facilities; provided, however, that in no event
shall Lessor be restricted from unfettered access to the System facilities in
accordance with Section 5(b) below;

 

(viii)                      conduct and
manage the affairs of the System, including the making of all ordinary business
decisions in furtherance of the day-to-day operation of the System;

 

(ix)                              determine
and carry out all policy decisions relating to the facilities of the System,
subject to such oversight by Lessor as is reasonably necessary to ensure
compliance with the Communications Laws;

 

(x)                                 hire,
supervise, and dismiss all personnel employed in the operation of the System
(other than employees hired by Lessor for the purpose of carrying out Lessor’s
duties with respect to the FCC Licenses and the Leased Spectrum);

 

(xi)                              undertake
all financial obligations, including payment of expenses arising out of the
operation of the System, and securing all financing for the construction and
operation of the System;

 

(xii)                           receive
all monies and profits from the operation of the System, subject to Lessee’s
payment obligations under this Lease Agreement;

 

(xiii)                        make
determinations as to the scope, marketing, and other terms and conditions of
the ORC Services to be provided to Lessee’s customers on the System; and

 

3

 

(xiv)                       take all
other actions that Lessee deems necessary or desirable to construct, test,
maintain, and operate the System or otherwise carry out any of the foregoing
items.

 

(d)                                Non-Interference.
Except as permitted by Sections 1(c)(vii) and 3(a), and so long as Lessee
performs its obligations hereunder, Lessor will not interfere with or disturb
Lessee’s rights under this Lease Agreement, including, without limitation, its
rights to exclusive possession, use and quiet enjoyment of the Spectrum Usage
Rights, to the extent permitted under the Communications Laws.

 

2.                                    Obligations of
Lessee.

 

(a)                                General
Obligations. Subject to the review,
supervision and ultimate control of Lessor, Lessee shall:

 

(i)                                   cooperate
with and aid Lessor with whatever actions Lessor is required to take, if any,
in order to make any required notifications, or to obtain the approvals or
consents of any governmental body necessary for the Lessee to construct and
operate the System;

 

(ii)                                operate
the System consistent with the Communications Laws or any other applicable
Federal, State or local law, including but not limited to, all Federal Aviation
Administration (“FAA”) and FCC Tower Registration filing requirements for all
structures under FCC Rule Part 17; NEPA regulations (FCC Rule Part 1.1307-11);
this Lease Agreement; and the terms and conditions of the FCC Licenses
(including, but not limited to, eligibility, basic and character qualifications
requirements, foreign ownership and use restrictions, and technical
requirements);

 

(iii)                             satisfy
all of the requirements that may be imposed on Lessee under the Communications
Laws, including, but not limited to, Section 1.9020 and any similar
sections of the FCC’s Rules governing spectrum manager leasing
arrangements;

 

(iv)                            expressly
satisfy the FCC’s E-911 requirements set forth in 47 C.F.R. Part 9 to the
extent that they are applicable to the Lessee’s provision of ORC Services on
the Leased Spectrum, as though Lessee were solely responsible for such
compliance; and

 

(v)                               take
whatever actions are reasonably necessary to resolve any interference-related
matters arising from operation of any system it may construct and operate on
the Leased Spectrum, including any conflicts between Lessee and any other
licensed spectrum user.

 

(b)                                Equipment.
Lessee shall install and maintain all equipment, including but not limited to,
towers, transmission lines, antennas, microwave facilities, transmitters and related
equipment that is necessary for the operation of the System consistent with the
FCC Licenses and the Spectrum Usage Rights (“System Equipment”). Lessee may
pledge the System Equipment as security or otherwise create 

 

4

 

encumbrances on the System
Equipment as Lessee deems appropriate. Upon the termination of this Lease
Agreement, Lessee shall promptly cease operating the System Equipment on the
Leased Spectrum.

 

(c)                                FCC
Compliance.  At all times during
the term of this Lease Agreement, Lessor shall retain the primary
responsibility for ensuring that the FCC Licenses and the Leased Spectrum are
utilized in full compliance with the Communications Laws, including, but not
limited to, the responsibility for all interactions with the FCC related to the
FCC Licenses and the Leased Spectrum. Lessee acknowledges that Lessee will
remain independently responsible to Lessor and, to the extent required under
the Communications Laws, to the FCC for complying with the foregoing, and
agrees that Lessee will not construct or operate any facility utilizing the
Leased Spectrum in a manner inconsistent with, contrary to, or in violation of,
the Communications Laws. Lessee will use commercially reasonable efforts to
cooperate with Lessor in meeting Lessor’s FCC compliance obligations with
respect to the Leased Spectrum.

 

(d)                                Notification
of Violations or Material Changes; Cooperation. Lessee shall promptly
notify Lessor of any occurrence of any contractual dispute, violation,
litigation, investigation, proceeding or inquiry that may arise generally or
between Lessee and any person, entity, or governmental body which, if adversely
determined, could reasonably be expected to have a materially adverse impact on
the FCC Licenses or Lessee’s Spectrum Usage Rights. If the FCC or any other
governmental body initiates an investigation or inquiry concerning Lessor or
Lessee in connection with this Lease Agreement or Lessee’s performance of any
of its obligations hereunder, Lessee shall cooperate with Lessor, the FCC, or
other governmental body in an effort to resolve such investigation or inquiry;
provided, however, that this sentence shall not require Lessee to waive any
legal rights or privileges with respect to such investigation or inquiry.

 

3.                                    Obligations of
Lessor.

 

(a)                                Oversight
of Lessee’s Operations on the Leased Spectrum. Throughout the term of
this Lease Agreement, Lessor will have the unconditional right to take all
actions necessary or desirable to ensure that Lessee’s exercise of its Spectrum
Usage Rights in the Leased Spectrum and its operation of the System comply with
the Communications Laws, this Lease Agreement, and the terms and conditions of
the FCC Licenses (including, but not limited to, conformity with applicable license
eligibility, basic qualifications, character qualifications and technical
requirements, and use and foreign ownership restrictions). As such, and without
limitation, throughout the term of this Lease Agreement, Lessor retains the
unconditional right to do any of the following:

 

(i)                                   monitor
and oversee Lessee’s use of the Spectrum Usage Rights, as necessary, to ensure
that Lessee operates the System in conformance with technical and use rules applicable
to the FCC Licenses;

 

5

 

(ii)                                take
all actions that are reasonably necessary to ensure that Lessee’s operation of
the System complies with the Communications Laws intended to prevent harmful
interference to any other licensed spectrum user;

 

(iii)                             take
whatever actions are reasonably necessary to resolve any interference-related
matters arising from operation of the System, including any conflicts between
Lessee and any other licensed spectrum user;

 

(iv)                            make
determinations as to whether particular circumstances give rise to the
requirement of filing an application or notification with the FCC or any other
governmental authority, and if such, with Lessee’s cooperation, make such
filing or notification; and

 

(v)                               communicate
with the FCC on matters related to the FCC Licenses.

 

(b)                                Maintenance
of the FCC Licenses.  Lessor will take
all actions within its control to maintain the FCC Licenses and Leasee’s rights
hereunder to use the Leased Spectrum in full force and effect. Lessor shall
secure and maintain all required FCC
authorizations, including but not limited to a blanket license or other
appropriate authorization, for all MSS ATC customer premises equipment,
terminals, and other communications devices used by Open Range customers (the “Blanket
License”).  The Blanket License shall be
considered to be one of the FCC Licenses for the purposes of this Lease
Agreement.

 

(c)                                FCC Interactions. Lessor will be the sole interface with the FCC on
all matters directly relating to the FCC Licenses or the Spectrum Usage Rights
granted under this Lease Agreement; provided, however, that nothing contained
herein shall restrict Lessee from communicating with the FCC (i) on policy matters not solely
relating to Lessee’s use of the Leased Spectrum or on matters imposed under the
Communications Laws on Lessee as a result of its provision of services to its
customers on the System, or (ii) subject to the requirements of Section 2(d) above,
on inquiries specifically directed to Lessee (rather than Lessor or the System)
by the FCC, so long as Lessee provides prompt prior notice of such
communicating to Lessor. Upon reasonable advance request, Lessor may request
Lessee to attend any meetings with the FCC which involve or relate to Lessee’s
use of the Leased Spectrum.

 

(d)                                Notifications of Violations or Material Changes;
Cooperation. Lessor will notify
Lessee promptly of the occurrence of any event or the initiation of any
litigation, investigation, proceeding or inquiry by the FCC or any governmental
body that could reasonably be expected to have a material impact or result in a
material change to the ownership or operation of the FCC Licenses or Lessee’s
Spectrum Usage Rights under this Lease Agreement. If the FCC or any other
governmental body initiates an investigation or inquiry concerning Lessor or
Lessee in connection with this Lease Agreement or Lessor’s performance of any
of its obligations hereunder, Lessor shall cooperate with Lessee, the FCC, or
other governmental body in an effort to
resolve such investigation or inquiry; provided, however, that this sentence
shall not require 

 

6

 

Lessor to
waive any legal rights or privileges with respect to such investigation or
inquiry.

 

4.                                    Control of FCC License and Leased Spectrum.

 

 Notwithstanding any other provision, and at
all times during the term of this Lease Agreement, Lessor shall retain de jure
and de facto control of the Leased Spectrum as required under the
Communications Laws. This Lease Agreement (i) does not and will not vest in
Lessee, or constitute, create or have the effect of constituting or creating,
direct or indirect de facto or de jure control over Lessor or the Leased
Spectrum, which ownership or control will remain exclusively and at all times
in Lessor and its affiliates, and (ii) does not and will not constitute
the transfer, assignment, or disposition in any manner, voluntary or
involuntary, directly or indirectly, of the Leased Spectrum or the transfer of
control of Lessor within the meaning of Section 310(d) of the
Communications Act. Lessee will not take any action inconsistent with or
contrary to the Lessor’s de jure and de facto control, as those terms are
construed by the FCC, over the Leased Spectrum. Lessee will not hold itself out
to the public as the owner of the FCC Licenses or the Leased Spectrum.

 

5.                                    Coordination; Oversight; Reports.

 

(a)                                Coordination. Lessee and Lessor will meet periodically, at such times as Lessor
reasonably requests by notice to Lessee, to enable Lessor to ensure that Lessee’s
activities using the Leased Spectrum and the operation of the System comply
with the Communications Laws. At these meetings, the Parties will discuss
matters reasonably related to Lessee’s construction and operation of the System
to the extent required to ensure compliance with the Communications Laws.
Lessee will keep or cause to be kept complete books and records with respect to
construction and operation of the System, showing (i) technical and
operational information related to the System, and (ii) other records
reasonably necessary, convenient or incidental to construction, maintenance or
operation of the System. Upon Lessor’s request, Lessee will provide Lessor with
reasonable access to such books and records.

 

(b)                                Right of Access. Lessor may, upon at least twenty-four (24) hours advance notice, inspect
any facility comprising the System during normal business hours and take any
action it deems reasonably necessary to fulfill its obligations under this
Lease Agreement or the Communications Laws. Lessee may require that an escort
selected by Lessee accompany Lessor on any on-site visit to Lessee’s
facilities. Notwithstanding the foregoing, Lessor may access any facility that
is part of the System upon such shorter advance notice as is possible under the
circumstances in the event of an emergency at such facility involving Lessee’s
use of the Leased Spectrum, including but not limited to any instance of
objectionable interference to any other user of the Leased Spectrum which is
authorized to use the Leased Spectrum to provide services outside the Leased
Territories. Lessor will notify Lessee as soon as practicable of Lessor’s
access during such emergency.

 

7

 

(c)                                Reporting. Upon Lessor’s request, Lessee shall provide information updating Lessor
about Lessee’s activities with respect to the Leased Spectrum, including
information regarding (i) technical and operational details about Lessee’s
transmission facilities; and (ii) any safety, interference or compliance
related problems which have arisen as a result of Lessee’s operation of the
System or use of the Leased Spectrum. Upon Lessor’s request, Lessee shall
confirm in writing that, to the best of Lessee’s knowledge, (i) Lessee is
not aware of any interference related problems on the System; (ii) Lessee
is not aware of any RF safety related problems with respect to its operations
on the System; (iii) Lessee remains qualified to be a lessee of the Leased
Spectrum; and (iv) Lessee’s operations on the System comply with the
provisions of this Lease Agreement and the Communications Laws.

 

6.                                    Applications/Notifications.

 

(a)                                Initial Lease Agreement Application. Within ten (10) business days following the
date of execution of this Lease Agreement, to the extent required by the
Communications Laws, Lessor will prepare and file with the FCC such documents
as are required by the Communications Laws (which may include a summary of this
Lease Agreement) (the “Lease Filing”) requesting the FCC’s approval of this
Lease Agreement and the lease of the Leased Spectrum provided for herein.   As soon as practicable following the
publishing of a Notice of Proposed Rulemaking which, if formally adopted
as an FCC rule, would allow Lessor’s use of GSAT Spectrum for ATC service and
that, together with applicable rules and policies, would not be reasonably
expected to impair the ability of Lessee to use Lessor’s ATC spectrum as
contemplated herein, Lessor will prepare and
file with the FCC the documents necessary to request any waivers of the Communications
Laws necessary to permit the lease of Leased Spectrum and any other waivers or
filings necessary to effectuate fully the intent of this Lease Agreement (the “Waiver
Filings” and, collectively with the Lease Filing, the “FCC Filing”).  Lessor will develop a list of the Waiver
Filings that it currently believes are necessary  and will deliver such list to Lessee within
ten (10) business days following the date of execution of this Lease
Agreement.  Lessor will work to identify
as promptly as practicable any additional Waiver Filings that may be necessary
or appropriate.  Each Party (i) will
fully cooperate with the other, and do all things reasonably necessary to
timely submit the FCC Filing to the FCC, (ii) will promptly file or
provide the other Party with all other information which is required to be
provided to the FCC in furtherance of the transactions contemplated hereby; and
(iii) will use reasonable commercial efforts to obtain the approvals
and/or waivers from the FCC necessary to give effect to this Lease Agreement.   In addition, the Parties will fully
cooperate with each other and use commercially reasonable efforts to seek
waivers and/or approvals from the FCC as necessary to permit Lessee to use “TDD”
transmission in connection with its provision of ORC Services.

 

(b)                                Facility Filings. If Lessee desires to construct any new System
facility, or to modify any existing System facility, and such construction or
modification would require an application, notification, or other filing with
the FCC, another governmental body or a non-governmental third party (a “Facility
Filing”), then Lessee will notify Lessor of such requirement, and Lessor will
have the final authority to 

 

8

 

determine
whether a Facility Filing is necessary. Lessor may independently determine that
a Facility Filing is required as to any facility of which Lessor, in exercising
its oversight hereunder, becomes aware. Such determination by either Party
shall include whether the proposed new facility or proposed modification to an
existing facility will require (i) frequency coordination; (ii) submission
of an environmental assessment; (iii) international or Interdepartment
Radio Advisory Committee (IRAC) coordination; (iv) radio quiet zone
reporting; (v) notification to the FAA, or (vi) any waivers of the
Communications Laws. If a Facility Filing is necessary, Lessee shall promptly
prepare and provide to Lessor all necessary application forms, exhibits, filing
fees and other materials necessary for Lessor to make such submission in its
own name. Lessor shall make such filings. If Lessor believes that such filing
is incomplete, then Lessor may instead return such filing to Lessee with a
reasonable explanation of those matters that require further preparation and
Lessee shall promptly revise such filing to the reasonable satisfaction of
Lessor.

 

(c)                                Compliance Applications. Lessor will make all ongoing compliance filings and
reports required by the FCC or any other governmental body as a result of its
ownership of the FCC Licenses, subject to Lessee’s compliance with its
obligations under this Lease Agreement (including without limitation the
following sentence). Lessee shall timely notify Lessor if Lessee believes that
a compliance filing is required or if it has taken or proposes to take any
action which could result in Lessor having to make a compliance filing. Upon
such notification, Lessor shall have the exclusive right to decide whether any
such compliance filing is required and, if required, the substance of such
filing.

 

7.                                    Term.

 

(a)                                Initial Term.  The grant of Spectrum Usage Rights pursuant
to Section 1 of this Lease Agreement with respect to the Initial Markets
will become effective on the first day (the “Lease Commencement Date”) after
all of the conditions set forth in Section 9 have been satisfied or
waived, and the grant of Spectrum Usage Rights for the Deferred Pop Markets and
Option Markets shall become effective as set forth in Section 10 hereof.
The term of this Lease Agreement will continue in full force and effect, unless
earlier terminated in accordance with the provisions set forth herein, for the
duration of Lessor’s FCC Licenses, including any renewals thereof, or for 30
years from the Lease Commencement Date, whichever is shorter, subject at all
times to compliance with the Communications Laws, provided that, should the
duration of Lessor’s FCC Licenses be less than thirty (30) years then Lessor
agrees to renew this Lease Agreement under the same terms and conditions for
such additional period or periods which taken together will equal thirty (30)
years from the Commencement date  (the “Initial
Term”).

 

(b)                                Renewal.  If Lessee is
in compliance with the terms of this Lease Agreement at such time, Lessee may
elect to extend the term of this Lease Agreement for an additional ten years
following the end of the Initial Term (the “Renewal Term”) by delivering
written notice of its intent to exercise its option to renew to Lessor not less
than 36 months prior to the expiration of the Initial Term.  Payment terms for the 

 

9

 

Renewal Term
shall be as set forth in Section 8 and Exhibit D hereof (except with
respect to the Option Markets, the payment terms for which are covered by Section 10(b)(ii)).

 

(c)                                Additional Lease Extension.  Beginning 37 months prior to the end
of the Renewal Term, if the Lease is renewed pursuant to Section 7(b) above,
the Parties will negotiate in good faith in an attempt to agree on a further
extension of the term of this Lease Agreement. 
If the Parties have not agreed on such an extension on or before the
15th month prior to the end of the Renewal Term, then either Party shall be
entitled to require that the unresolved terms in the lease extension be submitted
to a panel of three independent industry experts for determination of
commercially reasonable terms based on market comparables (“Determination”) in
accordance with the following process. 
The Party desiring such Determination shall give written notice to that
effect to the other Party, specifying in such notice the name, address and
professional qualifications of its appointed expert.  Within 15 days after receipt of such notice,
the other Party shall give written notice to the Party desiring such Determination,
specifying the name, address and professional qualifications of its appointed
expert.  The two appointed experts shall
within 15 days thereafter appoint a third expert by mutual consent.  All experts appointed hereunder shall have
professional qualifications and experience appropriate to address that matters
at issue, and shall be in all respects impartial and disinterested.  The panel of experts shall prepare and
deliver a written decision fixing the unresolved terms for the lease extension
within 30 days following the appointment of the final expert.  Such written decision shall be final and
binding on the Parties.  Any lease
extension determined pursuant to a Determination under this Section 7(c) shall
be for a [*]-year term and shall be on the same general terms and conditions
(other than pricing) as are set forth in this Lease Agreement.

 

8.                                    Payments.

 

(a)                                Ongoing Lease Agreement Payments for Initial Markets
and Deferred Pop Markets.
Beginning on the Lease Commencement Date and continuing on the same day of each
month thereafter until the expiration or termination of the term of this Lease
Agreement, Lessee will pay to Lessor monthly lease payments as follows:

 

(i)                                   Fixed monthly payments (“Fixed Lease Payments”) and
down payments (“Down Payments”) as set forth on Exhibit D hereto.  The Fixed Lease Payments for the Initial
Markets shall begin, and the Down Payment for the Initial Markets shall be
payable, on the Lease Commencement Date. 
The Fixed Lease Payments for the Deferred Pop Markets shall begin, and
the Down Payment for the Deferred Pop Markets shall be payable, on the
earlier of (A) the date on which Lessee begins offering any ORC Services
in such market pursuant to Section 10(a) hereof and (b) the
first day of the [*] month following the Lease Commencement Date.  If Lessee is not able to use a portion of the
GSAT Spectrum due to a regulatory restriction imposed by the FCC, the Down
Payment and all Fixed Lease Payments shall be adjusted so that they apply
proportionately based on the portion (determined by number of MHz) of GSAT
Spectrum actually available for use by Lessee, as more specifically set forth
on Exhibit D hereto.

 

10

 

(ii)                                Variable
monthly payments (“Variable Lease Payments”) equal to $[*] per subscriber per
month on the System.  A “subscriber” is
defined as a unit of customer premises equipment, or a group of units of
customer premises equipment employed by the same user that share a single
wireless access card or specific customer identifier and no two of which may be
used simultaneously.  Within five days
following each month-end during the term of this Lease Agreement, Lessee shall
deliver to Lessor a written certification of the number of subscribers on the
System during such month.  The Variable
Lease Payments shall increase [*]% on the first day of the 25th
month following the Lease Commencement Date (the “Escalation Date”), and the
Variable Lease Payments then in effect shall increase [*]% on each anniversary
of the Escalation Date thereafter, all as set forth on Exhibit D.

 

(iii)                             For avoidance of doubt, this subsection (a) shall
not be applicable to any Leased Spectrum leased pursuant to the Options as
described in Section 10(b) hereof.

 

(b)                                            Regulatory Fees. Lessee shall pay its own FCC
regulatory fees, if any, accruing by reason of Lessee’s operation of the system
on the Leased Spectrum.

 

(c)                                            Sales and Use Taxes. Lessee shall bill, collect, report, and remit any and
all sales or use taxes directly related to Lessee’s use of the Leased Spectrum
and the services provided thereon in all jurisdictions where such taxes apply.

 

(d)                                            Inspection Rights.  Lessor and its affiliates, agents,
accountants and other advisors may inspect Lessee’s books and records from time
to time, upon reasonable notice and in a manner not to unreasonably interfere
with Lessee’s business operations, in order for Lessor to confirm Lessee’s
compliance with its obligations under this Lease Agreement.  Such inspection shall be at Lessor’s expense,
unless such inspection reveals a material underpayment by Lessee, in which case
Lessee shall reimburse Lessor for its costs and expenses associated with such
inspection.  In addition, upon Lessor’s
request Lessee will provide evidence of payment of regulatory fees and sales
and use taxes as required by subsections (b) and (c) above.

 

9.                                    Conditions to Lease Commencement Date. 
The grant of Spectrum Usage Rights pursuant to Section 1 of this
Lease Agreement and the obligations under Section 8 hereof shall be
subject to the satisfaction of the following conditions:

 

(a)                                Lessor shall have obtained
approval from the FCC to provide Ancillary Terrestrial Services using at least [*] MHz in S-band spectrum of the GSAT Spectrum.

 

(b)                                The FCC shall have approved this
Lease Agreement and granted any other approvals and waivers necessary, in each
Party’s reasonable determination, to give effect to this Lease Agreement and
the transactions contemplated hereby.

 

(c)                                No order of any governmental authority preventing or
adversely affecting the consummation of the transactions contemplated by this
Lease Agreement shall be in effect, and no applicable law, rule or
regulation (including, without limitation, 

 

11

 

the
Communications Laws) prohibiting or adversely affecting the consummation of the
transactions contemplated by this Lease Agreement shall be in effect, and there
shall not have been  instituted (or if
instituted, shall not have been withdrawn or terminated) by or before any
governmental authority any action, claim, hearing, investigation or other
proceeding seeking to enjoin, prohibit or adversely affect the consummation of
the transactions contemplated by this Lease Agreement.

 

(d)                                Lessee shall have obtained debt
and equity financing in excess of $[*], which financing shall be available to be drawn upon by Lessee to
construct the System and carry out Lessee’s obligations under this Lease
Agreement, and Lessee shall have provided to Lessor evidence of such financing
to Lessor’s reasonable satisfaction.

 

(e)                                Each of Lessee’s representations
and warranties set forth in this Lease Agreement shall be true and complete in
all material respects at and as of the Lease Commencement Date with the same
effect as though such representations and warranties had been made or given at
and as of the Lease Commencement Date, and Lessee shall have performed and complied in all material respects with all of its
covenants and obligations under this Lease Agreement to be performed or
complied with by such party on or prior to the Lease Commencement Date, and
Lessee shall have delivered to Lessor a certificate executed by a senior
officer of Lessee certifying as to Lessee’s compliance with the foregoing.

 

(f)                                  Each of Lessor’s representations
and warranties set forth in this Lease Agreement shall be true and complete in
all material respects at and as of the Lease Commencement Date with the same
effect as though such representations and warranties had been made or given at
and as of the Lease Commencement Date, and Lessor shall have performed and complied in all material respects with all of its
covenants and obligations under this Lease Agreement to be performed or
complied with by such party on or prior to the Lease Commencement Date, and
Lessor shall have delivered to Lessee a certificate executed by a senior
officer of Lessor certifying as to Lessor’s compliance with the foregoing.

 

(g)                               [*]

 

The condition set forth in subsections (d) and
(e) above may be waived by Lessor, and subsection (f) above may be
waived by Lessee.

 

10.                             Other Agreements.

 

(a)                                Deferred Pop Markets.

 

(i)                                   Subject
to the limitations below, Lessee shall select additional geographic markets
within the United States that include a total of [*] 

 

12

 

Pops (the “Deferred Pop Markets”)
within which the Spectrum Usage Rights will be granted hereunder at a time or
times of Lessee’s choosing (as evidenced by written notice to Lessor) on or after
the Lease Commencement Date and prior to or during the [*] month following the
Lease Commencement Date.  The term of the
grant of Spectrum Usage Rights hereunder for the Deferred Pop Markets shall run
from the date of such grant until the end of the Initial Term, and the renewal
provisions of Section 7(b) and the Additional Lease Extension
provision of Section 7(c) shall apply to the Deferred Pop Markets as
well as the Initial Markets.

 

(ii)                                Lessee will use its reasonable best efforts to
identify in writing the Deferred Pop Markets to Lessor within one year of the
Lease Commencement Date.  Once the
Deferred Pop Markets have been so identified in writing by Lessee to Lessor,
Lessor may not lease, or enter into any discussions regarding the lease of, the
use of any GSAT Spectrum within such Deferred Pop Markets to any person or
entity other than Lessee during the term of this Lease Agreement, provided that
Lessee complies in a timely fashion with its obligations set forth in Section 10(a)(i) above.

 

(iii)                             Notwithstanding anything to the contrary herein, except
with respect to the nine markets designated with an asterisk on Exhibit E
hereto, no Deferred Pop Market may fall within the Cellular Market Areas set
forth on Exhibit E hereto [*], and no market within the [*] shall be
included as a Deferred Pop Market, unless
Lessor consents in writing to the inclusion of such market (which
consent Lessor may withhold in its sole discretion), and the Parties reach agreement on pricing therefor. Lessor will respond
within ten business days of receipt to any Lessee request to include a [*] market in the Deferred Pop Markets.  “Cellular Market Area” as used herein has the
meaning commonly used by the FCC and in the mobile wireless industry.

 

(iv)                            Lessor and Lessee will work together to prepare and
file any necessary applications or notifications to the FCC that may be
required in connection with the extension of the Spectrum Usage Rights to any
Deferred Pop Markets.  The Initial Markets
together with the Deferred Pop Markets are collectively referred to as the “Lessee
Markets.”

 

(v)                               For avoidance of doubt, the fact that a market has
been identified by Lessee as a Deferred Pop Market will not, by itself, cause
Lessee to be liable for payment for the Pops within such market under this
Lease Agreement.  The payment obligations
for such Deferred Pop Market under Section 8 and Exhibit D hereof
will begin on the earlier of i) the beginning of the [*] month following the Lease Commencement Date and ii)
the date on which Lessee begins offering any ORC Services in such market.  If Lessee has not identified in
writing to Lessor the Deferred Pop Markets in accordance with this Section by
the end of the [*] month following the Lease Commencement Date, Lessee shall be
liable for payment for all [*] Deferred Pops under this Lease Agreement,
whether or not it is providing service in any Deferred Pop Markets at such
time. 
Once payment obligations begin for the Deferred 

 

13

 

Pop Markets,
all other terms of this Lease Agreement (except as specifically otherwise noted
herein) shall apply to the Deferred Pop Markets.

 

(b)                                Options and Rights of First Refusal on Additional
Pops.

 

(i)                                   Lessee will have three successive options (the “Options”)
to lease GSAT Spectrum to provide ORC Services outside the Lessee Markets,
subject to the limitations herein, in geographic markets within the United
States including up to a maximum of [*]
Pops (the “Option Markets”).  The first
Option will be for markets including [*] Pops.  The second option will be for
markets including [*] Pops.  The third Option will be for markets
including [*] Pops.  Each Option shall be exercisable beginning on
the Lease Commencement Date.  Lessee may
exercise the first Option prior to the third anniversary of the Lease
Commencement Date, may exercise the second Option prior to the fourth
anniversary of the Lease Commencement Date, and may exercise the third Option
prior to the fifth anniversary of the Lease Commencement Date. Each Option must
be exercised by Lessee delivering to Lessor written notice of its exercise of
such Option (including the specific geographic markets Lessee intends such
Option to apply to) within the applicable exercise period.  Options may be exercised partially
over time, subject to the limitations set forth herein.  If any Option
exercise period expires without Lessee fully exercising the applicable Option,
then all remaining unexercised Options shall terminate, unless Lessor elects
otherwise by written notice to Lessee.  The
term of the grant of Spectrum Usage Rights hereunder for any Option Market
shall run from the date of Lessee’s exercise of the applicable Option until the
end of the Initial Term, and the renewal provisions of Section 7(b) and
the Additional Lease Extension provision of Section 7(c) shall apply
to the Option Markets as well as the Initial Markets and the Deferred Pop
Markets.

 

(ii)                                Unless otherwise agreed by Lessee and Lessor with
respect to any Option Market, Lessee will pay to Lessor for such Option Market,
beginning on the date the Option is exercised and on the first day of each
month thereafter until the expiration or termination of this Lease Agreement, a
monthly lease payment (“Option Lease Payments”) based upon a net present value,
determined assuming a [*]% per annum discount rate and a zero future value (“NPV”),
assuming a 30-year lease term, of the product of (A) $[*] multiplied by (B) the
number of MHz of Leased Spectrum (which, for avoidance of doubt, shall be all
of the GSAT Spectrum in such Option Market) multiplied by (C) the Pops
included in such Option Market.  Lessee
shall also be responsible for all payments and obligations under Sections 8(b),
8(c) and 8(d) with respect to the Option Markets.  The Parties acknowledge that they will remain
flexible on the payment timing and structure that effectuates the pricing
described in the previous sentence, in order to accommodate the needs of third
parties to which Lessee may choose to sublease Option Markets under an
affiliate program.  Notwithstanding
anything to the contrary herein, except with respect to the nine markets
designated with an asterisk on Exhibit E hereto, the Options shall not apply to markets within the [*], and no market within the [*] may be included as an Option Market unless Lessor
consents thereto in writing (which consent Lessor may withhold in its sole
discretion) and the Parties reach agreement on pricing therefor.  Other than with 

 

14

 

respect to
pricing, which is addressed by this subsection (ii), once any Option is
exercised for any Option Market, all terms of this Lease Agreement (except as
specifically otherwise noted herein) shall apply to such Option Market.

 

(iii)                             For
the period beginning on the Lease Commencement Date and ending on the earlier
of (A) the date on which the final Option is exercised and (B) the
expiration of any Option pursuant to subsection (i) above prior to it
being exercised in full by Lessee (the “Pops ROFR Period”), Lessee shall have
the following right of first refusal to lease GSAT Spectrum in geographic
markets outside the [*] that include up to [*] Pops in the aggregate (the “Pops
ROFR”).  The Pops ROFR shall operate as
follows and shall be subject to the following limitations.  If Lessor receives a bona fide offer to lease
GSAT Spectrum (an “Offer”) in any geographic market or markets outside the [*],
it shall notify Lessee of the markets covered by the Offer that are outside the
[*] (the “ROFR Markets”) within 10 business days of receipt of such offer.  If Lessee wishes to exercise the Pops ROFR
with respect to the ROFR Markets, it must so notify Lessor in writing within 30
days of the date of Lessor’s delivery of notice of the Offer.  If Lessee does not notify Lessor within the
30-day period, Lessor may lease the GSAT Spectrum that was subject to the Offer
to a third party on terms no less favorable to Lessor than the terms of the
Offer.  If Lessee exercises the Pops ROFR
with respect to the ROFR Markets, each such ROFR Market immediately shall be
deemed to be either a Deferred Pop Market or an Option Market pursuant to this
Lease Agreement (as determined by Lessee at the time of exercise), but only if
the Pops within the ROFR Market together with all other geographic markets in
which Lessee has Spectrum Usage Rights at such time or which Lessee has
previously identified to Lessor pursuant to Section 10(a)(ii) (collectively,
“Covered Markets”) are equal to or less than [*]; otherwise to the extent that
the Pops within the ROFR Market together with the Pops within all Covered
Markets at such time are greater than [*], the portion of the ROFR Market
exceeding [*] Pops shall be immediately deemed to be an Option Market pursuant
to this Lease Agreement.  Notwithstanding
the foregoing, however, payment obligations under this Lease Agreement shall
begin immediately for any Option Markets acquired pursuant to the Pops ROFR,
and to the extent that a ROFR Market is deemed to be an Option Market, Lessee
shall deliver to Lessor, within 90 days of its exercise of the Pops ROFR, a
down payment of [*]% of the total lease payments applicable to such market
(such total lease payments to be calculated consistent with the NPV set forth
in subsection (ii) above).  The Pops
ROFR will expire on a pro rata Pop basis consistent with the selection of the
Deferred Pop Markets and the exercise of the Options, and will expire
completely at the end of the Pops ROFR Period.

 

(iv)                            Subject to the following limitations, the Pops ROFR
will apply to an Offer that includes markets within the [*], but only so long as more than [*]% of the Pops covered by the Offer fall outside the [*].  If the Pops
ROFR applies to an Offer, the Pops ROFR will apply only to those markets
covered by the Offer that fall outside the [*], except that the Pops
ROFR will apply to the nine markets designated with an asterisk on Exhibit E
hereto. 
For example, if Lessor receives an Offer to lease GSAT Spectrum both
inside and outside a [*], and more than [*]% of the Pops covered by the Offer fall outside the [*],

 

15

 

the Pops ROFR
will apply only to the geographic markets outside the [*] that are the subject of the Offer, and Lessee shall
not have the right to nor shall it be obligated to exercise the Pops ROFR with
respect to the geographic markets within the [*],except, in each case,
to the extent the Offer applies to any of the nine markets designated with an
asterisk on Exhibit E hereto.  During the Pops ROFR Period, so long as
Lessee exercises the Deferred Pops and Options
in compliance with Sections 10(a) and 10(b) hereof, Lessor must reserve for Lessee, and may not lease to any third party,
GSAT Spectrum in markets outside the [*] that include at least 44,000,000 Pops in the aggregate.

 

(c)                                Lessor’s Referral Obligation.

 

(i)                                   Lessor will refer to Lessee opportunities from other
rural operators of telecommunications services in the United States whose
proposed service offering (as measured in Pops) is  more than [*]% outside the [*] (“Rural Operators”);
provided, however, that beginning on the 90th day after such
referral, Lessor will be free to negotiate and enter into agreements with any
such Rural Operator that does not reach agreement in principle for the sublease
of GSAT Spectrum from Lessee by such time, and beginning on the 120th
day after such referral, Lessor will be free to negotiate and enter into
agreements with any Rural Operator notified to Lessee in accordance with this
subsection that has not entered into a definitive, binding agreement with Lessee
for the sublease of GSAT Spectrum by such time.

 

(ii)                                If
Lessee so elects by written notice to Lessor, any lease of GSAT Spectrum in
geographic markets outside the [*], whether by Lessor or Lessee (by sublease of
rights hereunder), to the Covered Operators (defined below) will be treated as
either Deferred Pop Markets or Option Markets, as determined by Lessee at the
time of election (if the Pops within such markets together with all Covered
Markets at such time are equal to or less than [*]), or otherwise as Option
Markets, for purposes of determining (A) the number of Pops available
within the Deferred Pops Markets or the Option Markets and (B) Lessee’s
satisfaction of its obligations under Section 10(a) or Lessee’s
exercise of Options within the time periods required under Section 10(b).  If, during the period in which any Options
remain unexercised and unexpired, Lessor leases any GSAT Spectrum outside the [*]
to any Covered Operator (a “Covered Operator Lease”) for a total price, the NPV
of which (determined pursuant to Section 10(b) above) exceeds the NPV
of the payments for Deferred Pop Markets pursuant to Section 8(a) hereof
(if selected by Lessee in accordance with the previous sentence) or the Option
Lease Payments, as the case may be, on a per-MHz-Pop basis, as determined by
Lessor in its good faith judgment, then (X) any such excess will be for
the account of Lessee, and Lessor will pay the amount of such excess to Lessee
upon its receipt thereof, as calculated by Lessor in its good faith judgment,
and (Y) the markets leased pursuant to the Covered Operator Lease will be
treated as Deferred Pop Markets or Option Markets, as the case may be, for
purposes of determining the number of Pops available within the Deferred Pop
Markets and Option Markets and Lessee’s exercise of Options within the time
periods required under Section 10(b); provided, however, that the
foregoing clause (X) shall apply only until the end of the Initial Term or
the earlier termination of this Lease 

 

16

 

Agreement, and shall only apply
to the extent that the number of Pops covered by the Covered Operator Lease,
together with the total Pops covered by all other Covered Operator Leases,
Initial Markets, Deferred Pop Markets and Option Markets, does not exceed [*].  In addition, if Lessee reaches agreement with
any third party regarding a sublease of GSAT Spectrum outside the [*] (“Subleased
Spectrum”), but (i) the sublease is not permitted by law or (ii) the
third party requires, as a condition to the effectiveness of the sublease, that
it lease the Subleased Spectrum directly from Lessor, then the preceding two
sentences will apply to any lease of the Subleased Spectrum by Lessor to such
third party.  “Covered Operators” means
the following entities and their affiliates: Embarq, Citizens Communications,
CenturyTel, Qwest, Clearwire and Sprint.

 

(iii)                             If
Lessee disagrees with any of Lessor’s good faith pricing determinations under
subsection (c)(ii) above, Lessee may object to such determination only by
delivering written notice of such objection to Lessor within 10 business days
following Lessor’s delivery of notice of such determination to Lessee.  The Parties will thereafter negotiate in good
faith in an attempt to resolve such disagreement.  If the Parties cannot reach agreement within
30 days after Lessee’s objection notice, the matter will be resolved by a panel
of three independent industry experts pursuant to the process set forth in Section 7(c) hereof.

 

(iv)                            Subject
to the limitations set forth therein, subsection (c)(ii) above will apply
to a lease or sublease of GSAT Spectrum that includes markets within the [*].  In such case, subsection (c)(ii) will
only apply to that portion of the lease or sublease that covers markets outside
the [*]; provided, however, that in connection with its election described in
the first sentence of subsection (c)(ii) above, Lessee may also elect to
have any geographic markets within the [*] covered by such Covered Operator
Lease treated as Option Markets for purposes of determining (A) the number
of Pops available within the Option Markets and (B) Lessee’s exercise of
Options within the time periods required under Section 10(b), but for no
other purpose.  If Lessor and another
operator sign a letter of intent or other similar preliminary agreement that
contemplates the lease of GSAT Spectrum by Lessor to such operator, and any of
the Pops to be covered by the proposed lease fall outside the [*], then Lessor
will notify lessee of such preliminary agreement  within seven days and use reasonable best
efforts to allow Lessee the opportunity to discuss with such operator the
potential for Lessee to provide such operator with product and service
solutions for its proposed service offering outside the [*]; provided, however,
that this sentence shall not limit or preclude Lessor’s ability to enter into a
definitive lease of GSAT Spectrum with any such operator, subject to Lessor’s
compliance with Section 10(b)(iii) (to the extent applicable).

 

(v)                               For avoidance of doubt, any GSAT Spectrum leased by
Lessor to a third party not in violation with the terms of this Lease Agreement
shall not be available to Lessee for lease pursuant to this Lease Agreement
(including without limitation Sections 10(a) and 10(b) hereof).

 

17

 

(d)                                [*]

 

 

(e)                                Other Commercial Arrangements.  Lessor and Lessee shall grant each
other roaming agreements on their respective terrestrial systems and networks,
consistent with the charges to other third parties utilizing comparable
volumes, if and to the extent that Lessor deploys a terrestrial system and it
is compatible with the System Lessee plans to develop.  Lessor and Lessee shall each have access to the
other Party’s system and network under reasonable commercial terms including “most
favored nations” pricing for comparable volumes.  The agreement granting such mutual access
shall include a commitment of Lessor to provide, following the date of launch
of Lessor’s second-generation satellites and ground infrastructure and the
commencement of services over such satellites and ground infrastructure (the “Second
Generation Start Date”), a promotional rate to Lessee’s customers within the
Leased Territories at such time consisting of free satellite airtime on Lessor’s
MSS system for a period of 90 days from the Second Generation Start Date.  In addition, Lessor agrees to offer to Lessee
“most favored nations” pricing for comparable volumes of Lessor’s products and
services for use over Lessor’s MSS system pursuant to Lessor’s standard
commercial agreements.  Lessee shall be
responsible for the costs of development of the equipment necessary to comply
with the FCC’s “safe harbor” rule for ATC services.  Lessee shall be responsible for type
certification for such equipment, and Lessor shall cooperate reasonably with
Lessee in support of Lessee’s completion of such type 

 

18

 

certification.  For so long as Lessor remains in
compliance with Section 10(k)(i) hereof, Lessee hereby grants to
Lessor a royalty-free worldwide license to use all designs, methods and
other intellectual property rights associated with the equipment developed by
Lessee in connection with its service offering.  Such grant of license shall
survive any termination of this Lease Agreement, notwithstanding anything to
the contrary set forth in Section 14 hereof, and shall remain in force so
long as Lessor remains in compliance with Section 10(k)(i) hereof.

 

(i)                                   Spectrum Pricing.  Lessor will not enter into any Covered
Spectrum Lease (defined as follows) at a price that is, as determined by Lessor
in its good faith judgment, more favorable than the price afforded to Lessee
for the Initial Markets in this Lease Agreement, taking into account all
aspects of this Lease Agreement and the Covered Spectrum Lease, including (as
applicable) fixed prices for upfront purchases or deposits, fixed lease
payments, variable lease payments, discount rates, CPI adjustments, and other
relevant factors.  “Covered Spectrum
Lease” means a lease of GSAT Spectrum for use in providing services in markets
outside the [*].  If Lessee disagrees
with any of Lessor’s good faith determinations under this subsection, Lessee
may object to such determination only by delivering written notice of such
objection to Lessor within 10 business days following Lessor’s delivery of
notice of such determination to Lessee. 
The Parties will thereafter negotiate in good faith in an attempt to
resolve such disagreement.  If the
Parties cannot reach agreement within 30 days after Lessee’s objection notice,
the matter will be resolved by a panel of three independent industry experts
pursuant to the process set forth in Section 7(c) hereof.

 

(f)                                  Beta Test.  As soon as
practicable after Lessee selects the fundamental communications technology that
it intends to use for the System, Lessee shall conduct a test (the “Beta Test”)
of such communications technology in rural Colorado, in a specific geographic
area jointly approved by the Parties (the “Beta Test Market”), to validate the
technology in accordance with Lessor’s technical specifications.  The Beta Test will include no less than five
base station transmitters, and will be designed so that upon its successful
completion, the System will be ready for operational service for live
customers.  Lessor shall provide Lessee
with access to GSAT Spectrum in the Beta Test Market, subject to the
requirements and limitations of the Communications Laws and Lessor’s and its
affiliates’ obligations to their existing mobile satellite service subscribers,
and Lessor shall use commercially reasonable efforts to obtain all required
approvals and/or waivers from the FCC and any other necessary governmental
bodies in order for Lessee to commence the Beta Test.  Based on findings from the Beta Test, the
Parties will work together to develop the processes and procedures to be used
for build out of the System within the Lessee Markets.  Lessee will be responsible for all costs incurred
in connection with the Beta Test, except that Lessor will pay for the costs of
its own employees and contractors (including their travel costs) that are
needed to facilitate the Beta Test. 
Lessee will use its best efforts to cause the technology tested in the
Beta Test to function for its intended purpose and comply with all of Lessor’s
technical specifications and all Communications Laws.

 

(g)                               Buffer Zones.  Recognizing the limits of technology, Lessor
acknowledges that Lessee’s System within the Leased Territories may in certain 

 

19

 

circumstances
extend service up to a [*]-mile
radius beyond the boundaries of the Leased Territories (the “Buffer Zones”).   Lessee will not be liable for payment for
such Buffer Zones under this Lease Agreement except as specifically set forth
herein.  Lessee will be responsible for
coordinating service, negotiating interoperability agreements and avoiding
interference with, any providers operating a system in areas adjacent to the
Leased Territories, and under those circumstances, will be responsible for
operating within the Leased Territory geographic boundaries.  Notwithstanding
the foregoing, however, Lessee will use its best efforts to identify
subscribers that reside beyond the boundaries of the Leased Territories but
nonetheless use the System, and Lessee shall notify Lessor of these subscribers
and Lessee shall be responsible for payment for such subscribers under this
Lease Agreement (including, for avoidance of doubt, both Fixed Lease Payments
and Variable Lease Payments) to the extent that the number of such
subscribers exceeds either (i) [*]%) of the total number of subscribers
then served by Lessee or (ii) with respect to any “place” (as defined in Section 1(a) hereof)
[*]%) of the number of subscribers in any such Place within the Leased Territories.

 

(h)                               Build Out Milestones.  Lessee shall use its best efforts to cause
the System to be completed and made operational for live customers in all
Initial Markets within the time periods and in accordance with the milestones
set forth on Exhibit G hereof (the “Build Out Milestones”) which Build Out
Milestones shall be the same as those specified by the RUS as amended from time
to time.  If Lessee fails to comply with
the Build Out Milestones, and does not cure this failure within 90 days after
Lessor provides written notice of such failure to Lessee, (or within such
longer period to the extent required to effectuate a cure if promptly commenced
and diligently pursued, but not longer than 180 days), then, if Lessor so elects, Lessee shall forfeit its
Spectrum Usage Rights in the geographic markets which have not been completed
and made operational in accordance with the Build Out Milestones (the “Forfeited
Markets”).  Once forfeited, the GSAT
Spectrum in a Forfeited Market may be used and/or leased by Lessor free of
restriction under this Lease Agreement. In the event of any forfeiture of
Spectrum Usage Rights under this Section, all unexercised Options shall
immediately expire, and Sections 10(b)(iii), 10(c), 10(d)(i) and 10(e)(i) shall
immediately terminate in their entirety on the effective date of such
forfeiture.

 

(i)                                  Satisfaction of Conditions.  The Parties will cooperate with each other in
good faith and exercise reasonable commercial efforts to satisfy the conditions
to the Lease Commencement Date set forth in Section 9 hereof.

 

(j)                                  Additional Rights to Leased Spectrum.  If at any
point during the term of this Lease Agreement, the Communications Laws permit
the disaggregation of of the GSAT Spectrum such that use of the portion of the
GSAT Spectrum applicable to the Leased Territories for the ORC Services could
be transferred to a third person separately from the rest of the GSAT Spectrum,
then the Parties shall promptly thereafter meet, negotiate in good faith, and
exercise all commercially reasonable efforts in an attempt to provide Lessee
with additional rights to the Leased Spectrum in the event of Lessor’s
bankruptcy or insolvency (such potential additional rights to include, without
limitation, a right to purchase such spectrum and/or a security interest 

 

20

 

in such spectrum or the proceeds of such spectrum or other related
assets); provided, however, that this Section 10(j) shall not require
Lessor to take any action that would be in conflict with any then existing loan
agreement or other third person agreement, and there can be no assurance that
the Parties will reach agreement on the grant of any additional rights to
Lessee.

 

(k)                              Additional Rights of Lessee.

 

(i) Lessor shall not sell
or otherwise transfer any portion of the Leased Spectrum applicable to the
Lessee Markets (the “Transferred Spectrum”) without Lessee’s consent, except to
a transferee who assumes Lessor’s obligations under and agrees to be bound by
the terms of this Lease Agreement.

 

(ii) At any time following Lessor’s bankruptcy or insolvency,
Lessee shall have the right, upon written notice to Lessor, to have the lease
payments under this Lease Agreement adjusted on a prospective basis so that
such lease payments are consistent with the fair market value of similar
spectrum leases and of the underlying spectrum. 
Following Lessor’s receipt of such notice, the Parties will negotiate in
good faith in an attempt to agree on the appropriate lease payment adjustment
consistent with the previous sentence. 
If the Parties cannot reach agreement within 30 days after Lessee’s
notice, the matter will be resolved by a panel of three independent industry
experts pursuant to the process set forth in Section 7(c) hereof.

 

(iii) Lessee’s rights set forth in this Section shall not
limit any other rights or remedies that it may have in the event of a breach of
this Lease Agreement by Lessor.

 

11.                             Express Covenants and Agreements Relating to FCC
Matters.

 

    
Notwithstanding anything contained herein to the contrary, the Parties
agree that the following provisions will apply:

 

(a)                                Lessee must comply at all times in all material
respects with applicable rules set forth in the Communications Laws and
any other requirement of law. This Lease Agreement may be revoked, cancelled or
terminated by Lessor if Lessee fails to comply in all material respects with
the applicable requirements and Lessee does not cure this failure within
30 days after Lessor provides written notice of such failure to Lessee;

 

(b)                                If any FCC License is revoked, cancelled, terminated
or otherwise ceases to be in effect, Lessee has no continuing authority or
right to use the Leased Spectrum covered by that FCC License unless otherwise
authorized by the FCC, and Lessor shall have no liability to Lessee therefor;

 

(c)                                This Lease Agreement is not an assignment, sale or
transfer of any FCC License itself;

 

21

 

(d)                                This Lease Agreement will not be assigned to any
entity that is ineligible or unqualified to enter into a spectrum leasing
arrangement under the Communications Laws; and

 

(e)                                In addition to the other requirements set forth
herein, Lessor will not consent to an assignment of this Lease Agreement unless
such assignment complies with applicable Communications Laws.

 

12.                               Representations, Warranties and Covenants.

 

(a)                                Each of the Parties hereto represents, warrants and
covenants, as applicable, to the other that:

 

(i)                                   it is duly organized and in good standing under the
laws of the jurisdiction of its organization;

 

(ii)                                it has full power and authority to carry out all of
the transactions contemplated hereby;

 

(iii)                             it shall comply with all applicable laws, including
the Communications Laws and local, state, and federal rules and
regulations, governing the business, ownership, management and operations under
this Lease Agreement; and

 

(iv)                            all requisite resolutions and other corporate
authorizations necessary for its execution, delivery, performance and
satisfaction of this Lease Agreement have been duly adopted and complied with;
and

 

(v)                               this Lease Agreement is a valid and binding
agreement, enforceable against it in accordance with the terms of this Lease
Agreement.

 

(b)                                Lessor
further represents and warrants to Lessee as follows, except as set forth on Exhibit H
hereto:

 

(i)                                   Lessor is the exclusive holder of each of the FCC
Licenses, free and clear of all liens, and no other person has any right, title
or interest in or to any of the FCC Licenses. 
The FCC Licenses have been granted to Lessor by Final Order and are in
full force and effect. “Final Order” means action by the FCC or its staff
acting under delegated authority as to which a) no request for stay by the FCC
as applicable, of the action is pending, no such stay is in effect, and if any
deadline for filing any such request is designated by statute or regulation,
such deadline has passed; b) no timely petition for review, rehearing or
reconsideration of the action is pending before the FCC, and the time for
filing such petition has passed; c) the FCC does not have the action under
reconsideration on its own motion and the time for such reconsideration has
passed; and  d) no appeal to a court, or
request for stay by a court, of the FCC’s action, as applicable, is pending or
in effect, and, if any deadline for filing any such appeal or request is
designated by statute or rule, it has passed.

 

22

 

(ii)                                The term of such licenses is set forth in Part 1
of Exhibit A hereto.

 

(iii)                               There is not pending or, to the knowledge of Lessor,
threatened against Lessor or any of the FCC Licenses, nor does Lessor know of
any basis for, any application, action, formal complaint, claim, investigation,
suit, notice of violation, petition, objection or other pleading, or any
proceeding before the FCC or any other governmental body, against Lessor or any
of the FCC Licenses, which questions or contests the validity of, or seeks the
revocation, cancellation, forfeiture, non-renewal or suspension of, any of the
FCC Licenses, or which seeks the imposition of any adverse modification or
amendment thereof, or the payment of a material fine, sanction, penalty,
damages or contribution in connection with its use, provided, however, that,
the FCC has under consideration a proceeding in which Lessor may be required to
share the portion of its spectrum between 1616 and 1618.25 MHz with Iridium.

 

(iv)                            All material documents required to be filed at any
time by Lessor with the FCC or any other governmental body pursuant to FCC rules and
policies with respect to each of the FCC Licenses have been timely filed or the
time period for such filing has not lapsed, except where the failure to timely
file or make such filing would not be material. All of such filings are
complete and correct in all material respects. None of the FCC Licenses is
subject to any conditions other than those appearing on its face and those
imposed by FCC rules and policies. All amounts owed to the FCC in respect
of each of the FCC Licenses have been timely paid and, as of the date hereof,
no further amounts are due to the FCC in respect of any of the FCC Licenses.

 

(v)                               Lessor is in compliance in all material respects with
all laws, rules and regulations applicable to the FCC Licenses, and has
complied in all material respects with the terms and conditions of the FCC
Licenses. Lessor has not received written notice of any complaint or order
filed alleging any material non-compliance with respect to any such laws, rules or
regulations, in each case to the extent applicable to each of the FCC Licenses.

 

(c)                                Lessee further represents and warrants to Lessor that
it possesses all the requisite qualifications (including those relating to
ownership and character) under the Communications Laws to be a lessee as
contemplated in this Lease Agreement.

 

13.                             Indemnification.

 

(a)                                Indemnification by Lessee. If Lessee breaches any of its representations,
warranties, covenants, agreements or obligations contained herein, then Lessee
shall indemnify Lessor and its affiliates and their respective directors,
officers, agents, successors and assigns from and against the entirety of any
loss, cost, obligation, liability, settlement, payment, award, judgment, fine,
penalty, damage, expense, or other charge (collectively, “Losses”) or
reasonable fees or expenses incurred in connection with investigating,
defending or asserting any claim, action, suit 

 

23

 

or proceeding
incident to any matter indemnified against under Section 13(a) hereunder
(including, without limitation, court filing fees, court costs, arbitration
fees or costs, witness fees, and reasonable fees and disbursements of legal
counsel, investigators, expert witnesses, consultants, accountants and other
professionals) (collectively, “Expenses”), any such person may incur prior to,
through and after the date of the claim for indemnification resulting from,
arising out of, relating to, in the nature of, or caused by the breach (or the
alleged breach), or such claim, action, suit or proceeding.

 

(b)                                Indemnification by Lessor. If Lessor breaches any of its representations,
warranties, covenants, agreements or obligations contained herein, then Lessor
shall indemnify Lessee and its affiliates and their respective directors,
officers, agents, successors and assigns from and against the entirety of any
loss, cost, obligation, liability, settlement, payment, award, judgment, fine,
penalty, damage, expense, or other charge (collectively, “Losses”) or
reasonable fees or expenses incurred in connection with investigating,
defending or asserting any claim, action, suit or proceeding incident to any
matter indemnified against under Section 13(b) hereunder (including,
without limitation, court filing fees, court costs, arbitration fees or costs,
witness fees, and reasonable fees and disbursements of legal counsel,
investigators, expert witnesses, consultants, accountants and other
professionals) (collectively, “Expenses”), any such person may incur prior to,
through and after the date of the claim for indemnification resulting from,
arising out of, relating to, in the nature of, or caused by the breach (or the
alleged breach), or such claim, action, suit or proceeding.

 

(c)                                Damages Limitation. No Indemnified Party (as defined below) shall be
entitled to receive any special, punitive, incidental or consequential damages
in connection with any claim pursuant to this Section 13 or this Lease
Agreement generally; provided, however, that the foregoing shall not limit a
Party’s right to reimbursement of any such amounts that such Party is required
to pay to a third party.

 

(d)                                Notice of Claims. Any Party (the “Indemnified Party”) seeking
indemnification under this Section 13 shall give to the Party obligated to
provide indemnification to such Indemnified Party (the “Indemnitor”) a notice
(a “Claim Notice”) describing in reasonable detail the facts giving rise to any
claim for indemnification hereunder and shall include in such Claim Notice (if
then known) the amount or the method of computation of the amount of such
claim, and a reference to the provision of this Lease Agreement or any
agreement, document or instrument executed pursuant hereto or in connection herewith
upon which such claim is based; provided, that a Claim Notice in respect of any
action at law or suit in equity by or against a third person as to which
indemnification will be sought shall be given promptly after the action or suit
is commenced; and provided, further, that failure to give such timely notice
shall not relieve the Indemnitor of its obligations hereunder except to the
extent it shall have been prejudiced by such failure. After the giving of any
Claim Notice pursuant hereto, the amount of indemnification to which an
Indemnified Party shall be entitled under this Section 13 shall be
determined: (i) by the written agreement between the Indemnified Party and
the Indemnitor; or (ii) by a final judgment or decree of any court of
competent jurisdiction. The judgment or decree of a court shall be deemed final
when the time for appeal, if any, shall have expired and no appeal shall have
been taken or when all 

 

24

 

appeals taken
have been finally determined. The Parties shall proceed in the manner and
subject to the limitations in this Section 13 with respect to all matters
covered by Sections 13(a) and 13(b). The Indemnified Party shall have the
burden of proof in establishing the amount of Losses and Expenses suffered by
it.

 

(e)                                Third Person Claims. In any third person claim, action or suit against
any Indemnified Party, then the Indemnitor shall have the right to conduct and
control, through counsel of its choosing, the defense, compromise or settlement
of any such third person claim, action or suit against such Indemnified Party
as to which indemnification will be sought by any Indemnified Party from any
Indemnitor hereunder if the Indemnitor has acknowledged and agreed in writing
that, if the same is adversely determined, the Indemnitor has an obligation to
provide indemnification to the Indemnified Party in respect thereof, and in any
such case the Indemnified Party shall cooperate in connection therewith and
shall furnish such records, information and testimony and attend such
conferences, discovery proceedings, hearings, trials and appeals as may be
reasonably requested by the Indemnitor in connection therewith; provided, that
the Indemnified Party may participate, through counsel chosen by it and at its
own expense, in the defense of any such claim, action or suit as to which the
Indemnitor has so elected to conduct and control the defense thereof.
Notwithstanding the foregoing, the Indemnified Party shall have the right to
pay, settle or compromise any such claim, action or suit, provided that in such
event the Indemnified Party shall waive any right to indemnity therefor
hereunder unless the Indemnified Party shall have sought the consent of the
Indemnitor to such payment, settlement or compromise and such consent was
unreasonably withheld, in which event no claim for indemnity therefor hereunder
shall be waived.  Notwithstanding the
foregoing, Lessor shall be entitled to control the defense of any claim, action
or suit which could result in the suspension or revocation of any FCC License.

 

(f)                                  Exclusive Remedy. The Parties
acknowledge and agree that their sole and exclusive remedy for monetary damages
with respect to any and all claims under this Lease Agreement (other than
claims of, or causes of action arising from, fraud) shall be pursuant to the
indemnification provisions set forth in this Section 13.

 

14.                             Termination.

 

(a)                                Automatic Termination. The term of the lease of GSAT Spectrum pursuant to
this Lease Agreement will automatically terminate:

 

(i)                                   at the expiration of the Initial Term (unless
renewed) or the Renewal Term;

 

(ii)                                on a date mutually agreed to in a writing executed by
Lessor and Lessee;

 

(iii)                             on the effective date set forth in any order by the
FCC (or other governmental body) revoking, canceling or otherwise terminating
or failing to renew any FCC License or this Lease Agreement; or

 

25

 

(iv)                            upon
the filing of any petition by or against Lessee under any present or future
section or chapter of the Bankruptcy Code or under any similar law or statute
of the United States or any state thereof (which, in the case of an involuntary
proceeding, is not permanently discharged, dismissed, stayed, or vacated, as
the case may be, within sixty (60) days of commencement), or if any order for
relief shall be entered against Lessee in any such proceedings.

 

(b)                                If any part of the Leased Spectrum is lawfully
reclaimed or taken, subjected to sharing obligations that are incompatible with
the provision by Lessee of the services contemplated by this Lease Agreement (“Sharing
Obligations”) by the FCC or any other governmental body, then Lessee may
terminate this Lease Agreement, but only with respect to that portion of the
Leased Spectrum that is reclaimed as of the date when title to the Leased
Spectrum vests in the FCC or such governmental body or is subjected to a
sharing obligation (a “Partial Termination”). 
The provisions of this Lease Agreement shall be deemed to be adjusted
automatically in such event to apply only to the Leased Spectrum not so
reclaimed or shared.  In the event of any
such automatic partial termination, any Fixed Lease Payment will be prorated
accordingly based on the actual date of such termination and the MHz of Leased
Spectrum available for use by Lessee, as set forth on Exhibit D.  If any part of the Leased Spectrum is
lawfully reclaimed or taken, subjected to Sharing Obligations by the FCC or any
other governmental body and as a result of such event Lessee is not legally able
to use at least [*] MHz of the S-band
spectrum granted hereby, then Lessor and Lessee shall promptly meet and discuss
whether any actions can be taken that would allow Lessee to continue to provide
the ORC Services in the Leased Territories as contemplated by this Lease
Agreement.  If the Parties have not
agreed on a solution within 30 days following such meeting, Lessee may
terminate its lease of GSAT Spectrum pursuant to this Lease Agreement.

 

(c)                                Termination by Lessor. The term of the lease of GSAT Spectrum pursuant to
this Lease Agreement may be terminated by Lessor:

 

(i)                                   if Lessor provides written notice to Lessee that
Lessee has materially breached its representations, warranties, covenants,
obligations or other agreements contained in this Lease Agreement; provided
that Lessee has failed to cure such breach within thirty (30) days from the
date of its receipt of the notice specified in this subsection (or such longer
period to the extent required to effectuate cure if promptly commenced and
diligently pursued, but not longer than 90 days); and provided further that Lessor (A) specifies in such notice the
representation, warranty, covenant, obligation or other agreement of which it
regards Lessee to be in material breach, and (B) is not itself in material
breach of its representations, warranties, covenants, obligations or agreements
contained herein;

 

(ii)                                immediately
if the Lessee becomes insolvent, makes a transfer in fraud of creditors, or
makes an assignment for the benefit of creditors;

 

(iii)                             if, following the Lease Commencement Date, the FCC
requires alterations to the terms of this Lease Agreement that would materially
alter 

 

26

 

Lessor’s
rights or obligations hereunder and the Parties hereto are unable in good faith
to negotiate substitute terms which provide substantially equivalent rights and
obligations as are provided hereunder ;

 

(iv)                            if Lessor, in the exercise of its sole discretion,
determines that the System or any part thereof is in material non-compliance
with the Communications Laws and that Lessee is unable or unwilling to remedy
such material non-compliance within thirty (30) days after notice thereof;
provided, however, Lessee hereby agrees that, as an alternative to terminating
this Lease Agreement, Lessor may, in its sole discretion, seek to compel Lessee
to take such action as is necessary to remedy any such violations that can be
remedied with commercially reasonable action and at commercially reasonable
expense; or

 

(v)                               if Lessee’s technology fails to function for its
intended purpose as such purpose is reflected in the business plan that Lessee
has submitted to th RUS or fails to comply in all material respects with the
Communications Laws at the conclusion of the Beta Test, or if Lessee is not
legally able to use at least [*] MHz of
Lessor’s S-band spectrum or the System cannot be operated for its  intended purpose due to third party
interference; provided that (A) Lessor has complied its obligations
relating to the Beta Test set forth in Section 10(f), and (B) Lessor
notifies Lessee of its intent to terminate the Lease Agreement within 90 days
after the conclusion of the Beta Test.

 

(d)                                Termination by Lessee. The term of the lease of GSAT Spectrum pursuant to
this Lease Agreement may be terminated by Lessee:

 

(i)                                   if
Lessee provides written notice to Lessor that Lessor has materially breached
its representations, warranties, covenants, obligations or other agreements
contained in this Lease Agreement; provided that Lessor has failed to cure such
breach within thirty (30) days from the date of its receipt of the notice
specified in this subsection (or such longer period to the extent required to
effectuate cure if promptly commenced and diligently pursued, but not longer
than 90 days); and provided further that Lessee (A) specifies in such
notice the representation, warranty, covenant, obligation or other agreement of
which it regards Lessor to be in material breach, and (B) is not itself in
material breach of its representations, warranties, covenants, obligations

 

(ii)                                if, following the Lease Commencement Date, the FCC
requires alterations to the terms of this Lease Agreement that would materially
alter Lessee’s rights or obligations hereunder and the Parties hereto are
unable in good faith to negotiate substitute terms which provide substantially
equivalent rights and obligations as are provided hereunder;

 

(iii)                             if
Lessee’s technology fails to function for its intended purpose as such purpose
is reflected in the business plan that Lessee has submitted to the RUS or such
technology fails to comply in all material respects with the Communications
Laws at the conclusion of the Beta Test, or if
Lessee is not legally able 

 

27

 

to use at least
[*] MHz of Lessor’s S-band
spectrum or the System cannot be operated for its  intended purpose due to third party
interference; provided that (A) Lessee has used its best efforts to
cause such technology to function for its intended purpose and comply with
Communications Laws, and Lessee has otherwise complied with its obligations
relating to the Beta Test set forth in Section 10(f), and (B) Lessee
notifies Lessor in writing of its intent to terminate the Lease Agreement
within 90 days after the conclusion of the Beta Test; or

 

(iv)                            if a material part of the Leased Spectrum is lawfully
reclaimed or taken or subjected to Sharing Obligations by the FCC or any other
governmental body, and as a result of such event the RUS invokes their
right to cease or suspend funding due to such event under the financing
documents referred to in Section 9 (d) of this Lease Agreement, and
does in fact declare a default and ceases to provide required funding to Lessee
for at least a 30-day period.

 

(e)                                Termination by Either Party if Conditions are not Met.  If the conditions to the Lease Commencement
Date have not been satisfied by [*],
then either Party may elect to terminate the lease of GSAT Spectrum pursuant to
this Lease Agreement by sending written notice to the other Party within five
days after [*] (the “Termination Notice”).  Such termination will take effect [*] days after the date of the Termination Notice, if
the Lease Commencement Date has not occurred, or the FCC has not approved this
Lease, as applicable, by the end of such [*] day period.  The election to
terminate under this subsection (e) shall not be available to any Party
who is in breach of any of its obligations under the Lease Agreement at such
time.

 

(f)                                  Notification of Lease Agreement Termination. Within ten (10) days following the Termination
Date, the Lessor will prepare and submit a notification to the FCC consistent
with the Communications Laws informing the FCC of the termination of this Lease
Agreement.

 

(g)                               Effect of Termination. In the event of termination of the lease of GSAT
Spectrum pursuant to this Lease Agreement, except as otherwise set forth in
this Section, all rights and obligations of the Parties under this Lease
Agreement will terminate without any further liability of any Party to any other
Party (except for any liability of any Party then in willful breach of its
covenants, representations, warranties, obligations or agreements hereunder,
and except for Lessee’s payment obligations pursuant to Section 8 to the
extent that such payment obligations arose prior to the effective date of
termination). Without limiting the generality of the foregoing, if the
termination date occurs as a result of an FCC License being revoked, cancelled,
terminated, or if the FCC License otherwise ceases to be in effect, the Lessee
will have no continuing authority to use the Leased Spectrum covered by that
FCC License, unless otherwise authorized by the FCC. Notwithstanding anything
herein to the 

 

28

 

contrary, the provisions hereof
relating to termination, indemnification, dispute resolution and
confidentiality shall expressly survive the termination of this Lease
Agreement.

 

15.                             Miscellaneous.

 

(a)                                Confidentiality. Except for information (i) required to be disclosed in the Lease
Agreement Application, (ii) required to be disclosed by law or by rule of
a national securities exchange, (iii) disclosed in a press release agreed
to by each Party or (iii) requested by the FCC, no Party will disclose the
terms of this Lease Agreement without the other Party’s written consent to any
other person or entity, other than to each such Party’s affiliates, officers,
directors, attorneys, accountants and employees involved in the transactions
contemplated hereby or in operation of the System, and only then on the
condition that such individuals agree in writing not disclose the information
disclosed to them. Notwithstanding the foregoing, either Party may disclose any
information contained in the FCC Filing once such FCC Filing has been filed
with the FCC. The Parties will implement commercially reasonable measures to
ensure that competitive or sensitive information relating to the separate
business operations of one Party are not inadvertently disclosed to the other
Party. In the event, however, such information is inadvertently received by
either Lessor or Lessee with respect to the other, the receiving Party will
take commercially reasonable and appropriate steps to prohibit the disclosure
or use of any such information that may have been inadvertently obtained as a
result of the provision of services under this Lease Agreement to any employee
or agent of the receiving Party or an Affiliate thereof involved in any manner
with the separate business operations of the receiving Party, or any third
party.  In addition, notwithstanding the
foregoing, Lessee may share this
Agreement with the Rural Utilities Service during its final loan application
review, and with potential investors or other partners and advisors for the
purpose of completing its financing that is required as a condition to the
Lease Commencement Date; provided that (x) any such non-governmental party
must agree in writing in advance not to disclose this Lease Agreement or the
information herein to any other party without Lessor’s prior written consent, (y) the
Parties request confidential treatment from any governmental agency, and (z) Lessee
must provide Lessor with at least 72 hours (not including weekends or holidays)
advance notice of the disclosure and allow Lessor to review and comment on the
disclosure, and Lessee must take any actions reasonably requested by Lessor to
revise the disclosure.  Subject to the
foregoing provisions, each Party expressly agrees to maintain communications
from the other Party pursuant to or in connection with this Lease Agreement in
confidence so that the other Party may rely on the safe harbor provisions of Rule 100(b)(2)(ii) of
Regulation FD with respect to such communications.

 

(b)                                Dispute Resolution. The Parties agree to work together to resolve
disputes that may arise between them regarding this Agreement. To the extent
they are unable to resolve the dispute, they will escalate the issue to the
following designated officers of each Party: the chief executive officer, or
another senior executive officer designated by the chief executive officer, for
the Lessor, and the chief executive officer, or another senior executive
officer designated by the chief executive officer, for the Lessee. If the
Parties still cannot reach agreement, either Party may invoke the arbitration
provisions contained herein. Disputes shall be subject to the 

 

29

 

Commercial
Arbitration Rules of the American Arbitration Association or pursuant to
such other provider of arbitration services or rules as the Parties may
agree. Each arbitration will be conducted by a single arbitrator and will be
held at a location to be agreed upon by the Parties within Santa Clara County,
California. The arbitrator will be selected by the joint written consent of the
Parties.  If the Parties cannot agree on
an arbitrator within thirty (30) days of a demand for arbitration, each Party
shall select one proposed arbitrator, and the arbitrator for the dispute will
be selected by the joint written consent of the two proposed arbitrators
selected by Lessor and Lessee.  The
Parties will request that the arbitration hearing commence within sixty (60)
days of the demand for arbitration. The arbitrator will control the scheduling
so as to process the matter expeditiously. The Parties may submit written
briefs upon a schedule determined by the arbitrator. The Parties will request
that the arbitrator rule on the dispute by issuing a written opinion
within thirty (30) days after the close of hearings. The Federal Arbitration
Act, 9 U.S.C. §§ 1-16, not state law, shall govern the arbitrability of all
disputes. The arbitrator will have no authority to award punitive damages,
exemplary damages, consequential damages, multiple damages, or any other damages
not measured by the prevailing party’s actual damages, and may not, in any
event, make any ruling, finding or award that does not conform to the terms and
conditions of the Agreement. The arbitrator shall be knowledgeable of
telecommunications issues. The times specified in this Section 15(b) may
be extended or shortened upon mutual agreement of the Parties or by the
arbitrator upon a showing of good cause. Each Party will bear its own costs of
these procedures, including attorneys’ fees. The Parties will equally split the
fees of the arbitration and the arbitrator. The arbitrator’s award shall be
final and binding and may be entered in any court having jurisdiction thereof.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction.  The Parties agree
that the arbitration process set forth in this Section 15(b) shall be
the exclusive means of resolving any dispute regarding this Agreement, except
that this Section 15(b) shall not apply to a Determination pursuant
to Section 7(c) hereof, and nothing herein shall limit the right of
either Party to seek injunctive relief from a court of competent jurisdiction
pursuant to Section 15(m) hereof.

 

(c)                                No Public Announcement; Press Releases. No Party will, without the approval of the other,
make any press release or other public announcement (other than as required by
law or the rules of a national securities exchange) concerning the
transactions contemplated by this Lease Agreement.

 

(d)                                Notices. All notices or other communications which are required or permitted
hereunder will be in writing and sufficient if delivered by registered or
certified mail, postage pre-paid, by courier or overnight carrier, or by
facsimile transmission (confirmed in hard copy by registered or certified mail
or courier or overnight carrier) to the person
or entities at the addresses set forth below (or at such other address as may
be provided hereunder), and will be deemed to have been delivered as of the
date so delivered:

 

If to Lessor:

 

Globalstar, Inc.

 

30

 

461 South Milpitas
Blvd., Building 5

Milpitas, CA 95035

Attention: CEO and
General Counsel

Telephone:
408-933-4000

Facsimile:

 

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

 

Taft Stettinius &
Hollister LLP

425 Walnut Street, Suite 1800

Cincinnati, OH 45202

Attention: [*]

Telephone: [*]

Facsimile: [*]

 

If to Lessee:

 

Open Range
Communications, Inc.

6465 South Greenwood
Plaza Blvd., Suite 820

Centennial, CO 80111

Attention: CEO

Telephone:
303-376-2111

Facsimile:

 

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

 

Drinker Biddle &
Reath LLP

1500 K Street, N.W.

Washington, DC
20005-1209

Attention: [*]

Telephone: [*]

Facsimile: [*]

 

or to such
other address or addresses as may hereafter be specified by notice given by any
of the above to the others. Notices given by United States certified mail as
aforesaid will be effective on the third business day following the day on
which they are deposited in the mail. Notices delivered in person or by
overnight courier will be effective upon delivery. Notices given by facsimile
will be effective when transmitted, provided facsimile notice is confirmed by
telephone and is transmitted on a business day during regular business hours.

 

(e)                                Successors and Assigns; Sublease Rights.

 

(i)                                   This
Lease Agreement and the rights and obligations of Lessee hereunder may be
assigned by Lessee only if Lessee is in compliance with all of its obligations
under the Lease Agreement at such time, and only with the prior written 

 

31

 

consent of Lessor, which
consent will not be unreasonably withheld. 
Any merger of Lessee into a third party, or any direct or indirect
change in ownership of Lessee in excess of [*]% of Lessee’s voting or capital
interest (other than in connection with Lessee’s initial financing contemplated
by Section 9(d) hereof), shall be deemed to be an assignment of this
Lease Agreement and shall require Lessor’s consent in compliance with this
subsection; provided, however, that the foregoing [*]% limit shall not apply (but
prompt notice to Lessor shall be required) in the case of an acquisition of
voting and/or capital interests in Lessee by one or more experienced and
reputable financial investors, so long as none of the financial investors owns
more than [*]% of the equity securities of, operates or is directly or
indirectly affiliated with an operator of satellite communications facilities
or any owner of spectrum assets has the potential to use such spectrum assets
to provide ATC service as defined by the current FCC rules.

 

(ii)                                Subject to subsection (v) below, Lessee shall be
permitted to sublease any Spectrum Usage Rights granted pursuant to the Options
without Lessor’s consent, so long as Lessee provides at least 30 days’ prior
written notice to Lessor of Lessee’s intent to sublease, including the name of
the sublessee and the geographic markets to be covered by the sublease, and so
long as Lessee remains liable for all of its obligations under this Lease
Agreement (including, without limitation, those relating to any Spectrum Usage
Rights subleased).  Except as provided in
the preceding sentence, Lessee shall not sublease any other Spectrum Usage
Rights granted hereunder without Lessor’s prior written consent, which consent
will not be unreasonably withheld.

 

(iii)                             Without limiting the foregoing, Lessor shall not be
required to consent to any proposed assignment or sublease of this Lease
Agreement by Lessee to any party who, as determined in Lessor’s sole
discretion, is either (A) not sufficiently creditworthy to meet the
payment and indemnity obligations under this Lease Agreement, or (B) an
actual or potential competitor of Lessor.

 

(iv)                            To the extent that Lessor consents to any assignment
by Lessee, or Lessee otherwise assigns its rights hereunder as permitted hereby,
such assignee shall execute a written agreement pursuant to which it agrees to
be bound by all of the terms and conditions of this Lease Agreement applicable
to Lessee. In such event, Lessor and the assignee shall timely prepare and file
the appropriate FCC application or notification consistent with applicable
requirements of the Communications Laws, and any such assignment shall not
become effective until any required FCC consents have been obtained or the
applicable waiting periods, if any, have elapsed.

 

(v)                               Anything to the contrary in this Lease Agreement
notwithstanding, in no event shall Lessor be deemed to have consented to an
assignment, and no assignment, sublease, sublicense or other grant of Spectrum
Usage Rights by Lessee shall be permitted if it is (i) not in compliance
with the Communications Laws and any other applicable laws; (ii) made to a
person or entity that is ineligible or unqualified to enter into a spectrum
leasing arrangement under the 

 

32

 

Communications
Laws; or (iii) with respect to an assignment only, made to a person or
entity not in privity with Lessor.

 

(vi)                            During the term of this Lease Agreement, Lessor shall
have the right and ability, without the consent of, but only after notice to,
Lessee, to assign its rights and obligations under this Lease Agreement or,
subject to Lessee’s rights hereunder, sell, transfer, assign, pledge or
otherwise dispose of any FCC License.

 

(f)                                  Entire Agreement; Amendments. This Lease Agreement, and all exhibits and
schedules referred to herein (which are incorporated herein and made a part of
this Lease Agreement by reference) and the documents delivered pursuant hereto,
contain the entire understanding of the Parties hereto with regard to the subject
matter contained herein or therein, and supersede all prior agreements or
understandings among Lessor and Lessee with respect to the rights and
performances contemplated herein (including without limitation, the Preliminary
Agreement between the Parties [*]). This
Lease Agreement will not be amended, modified or supplemented except by a
written instrument signed by authorized representatives of the Lessor and the
Lessee.

 

(g)                               Waivers. No failure by either Party to exercise, and no delay by either Party in
exercising, any right or remedy under this Lease Agreement will constitute a
waiver of such right, remedy or any other right or remedy under this Lease
Agreement. Any waiver by either Party of any right or remedy under this Lease
Agreement will be limited to the specific instance and will not constitute a
waiver of such right or remedy in the future or of any other right or remedy
hereunder.

 

(h)                               Expenses. Except as otherwise set forth herein, each Party hereto will pay all of
its own costs and expenses incident to its negotiation and preparation of this
Lease Agreement and the consummation of the transactions contemplated hereby,
including the fees, expenses and disbursements of its counsel and advisors.
Notwithstanding the above, in the event any Party brings an action in
connection with the performance, breach or interpretation of this Lease
Agreement, the prevailing Party in any such action will be entitled to recover
from the losing Party all reasonable costs and expenses of such action,
including attorneys’ fees.

 

(i)                                  Construction and Interpretation. No Party will be deemed to be the draftsman hereof.
Accordingly, neither this Lease Agreement nor any uncertainty or ambiguity
herein will be conclusively construed or resolved against any Party hereto, whether
under any rule of construction or otherwise. This Lease Agreement has been
reviewed, negotiated and accepted by all Parties. The Parties intend for the
rights and obligations hereunder to be enforced and performed on a
market-specific basis if it is appropriate in context to do so.  Whenever this Lease Agreement refers to “at
least” a specific minimum amount of MHz of spectrum, this minimum amount will
be deemed to have been satisfied if the actual amount of MHz of spectrum
approved or available for use, as applicable, is at least ninety-one and
three-tenths percent of the specific amount expressed.  Any capitalized term used in any schedule or
exhibit hereto but not otherwise defined therein, shall have the meaning
ascribed to such term in this Lease 

 

33

 

Agreement.  Unless the context clearly requires
otherwise, whenever the words “include”, “includes”, “including”, “such as”, or
terms of similar meaning, are used in this Lease Agreement, they shall be
deemed to be followed by the words “without limitation”.  The word “extent” in the phrase “to the
extent” means the degree to which a subject or other thing extends, and such
phrase shall not mean simply “if”.  The
definitions contained in this Lease Agreement are applicable to the singular as
well as the plural forms of such terms.

 

(j)                                  Execution in Counterparts. This Lease Agreement may be executed in one or more
counterparts which may be delivered by facsimile, each of which will be
considered an original instrument, but all of which will be considered one and
the same agreement, and will become binding when one or more counterparts have
been signed by each of the Parties hereto and delivered to each of the other
Parties hereto.

 

(k)                              Governing Law. This Lease Agreement will be governed by, enforced and construed in
accordance with the laws of the State of Delaware without regard to conflicts
of law principles.

 

(l)                                  Reserved.

 

(m)                            Specific Performance. Notwithstanding anything herein to the contrary, if
either Lessor or Lessee fails to perform any of its obligations under this
Lease Agreement, the aggrieved Party shall have the right, in addition to all
other rights or remedies, to seek specific performance of the terms hereof.

 

(n)                               Headings. Subject headings are included for convenience only and will not affect
the interpretation of any provisions of this Lease Agreement.

 

(o)                                Document Inspection. Each Party will retain a duly-executed copy of this
Lease Agreement (including any amendments thereto) in its files, and will,
subject to the confidentiality provisions hereof, provide the FCC or any other
governmental body with a photocopy of those portions of this Lease Agreement to
the extent requested.

 

(p)                                Severability. Should any court or agency determine that this Lease Agreement or any
provision of this Lease Agreement is invalid, or if the FCC amends its rules or
adopts policies that materially affect this Lease Agreement, the Parties agree
to use their commercially reasonable efforts to negotiate modifications to this
Lease Agreement such that the Lease Agreement is valid and effectuates the
intent of the Parties.

 

(q)                                No Partnership. Nothing contained in this Lease Agreement will be deemed to create a
partnership or joint venture between the Parties.

 

(r)                                Interpretation; Reformation. This Lease Agreement and any other documents and
agreements between the Parties referred to herein shall be construed in all
respects to comply with all applicable laws, including without limitation the 

 

34

 

Communications
Laws.  If, notwithstanding the foregoing,
the FCC determines that this Lease Agreement is inconsistent with the terms and
conditions of the FCC Licenses or the Communications Laws, the RUS determines that
this Lease Agreement is inconsistent with or does not meet the rules and
requirements of that agency or if any governmental body alters the
permissibility of this Lease Agreement subsequent to the date of this Lease
Agreement under the requirements of law, then the Parties agree to use
commercially reasonable efforts to modify this Lease Agreement as necessary to
cause this Lease Agreement (as modified) to comply with such new requirements
of law and to preserve to the extent possible the economic arrangements set
forth in this Lease Agreement.

 

(s)                                Further Assurances. Each Party will execute and deliver such further
documents and take such further actions as the other Party may reasonably
request consistent with the provisions hereof in order to effect the intent and
purposes of this Lease Agreement.

 

16.                               Definitions.

 

Following is a list
of certain defined terms used in this Lease Agreement, together with the place
in this Lease Agreement where the definition of each such term can be found:

 

“ATC” – See the recitals to this Lease Agreement.

 

 “Beta Test” – See Section 10(f).

 

“Beta Test Market” – See Section 10(f).

 

“Blanket License” – See Section 3(b).

 

“Buffer Zones” – See Section 10(g).

 

“Build Out Milestones” – See Section 10(h).

 

“Claim Notice” – See Section 13(d).

 

“Communications Laws” – See the recitals to this Lease Agreement.

 

“Covered Markets” – See Section 10(b)(iii).

 

“Covered Operators” – See Section 10(c)(ii).

 

“Covered Operator Lease” – See Section 10(c)(ii).

 

“Covered Spectrum Lease” – See Section 10(e)(i).

 

“Determination” – See Section 7(c).

 

“Down Payments” – See Section 8(a)(i).

 

35

 

“Deferred Pop Markets” – See Section 10(a)(i).

 

“Escalation Date” – See Section 8(a)(ii).

 

“Exclusivity Period” – See Section 10(d)(i).

 

“Expenses” – See Section 13(a).

 

“FAA” – See Section 2(a)(ii).

 

“Facility Filing” – See Section 6(b).

 

“FCC” – See the recitals to this Lease Agreement.

 

“FCC Filing” – See Section 6(a).

 

“FCC License” – See the recitals to this Lease Agreement.

 

“Final Order” – See Section 12(b).

 

“Fixed Lease Payments” – See Section 8(a)(i).

 

“Forfeited Markets” – See Section 10(h).

 

“GSAT Spectrum” – See the recitals to this Lease Agreement.

 

“Indemnified Party” – See Section 13(d).

 

“Indemnitor” – See Section 13(d).

 

“Initial Markets” – See Section 1(a).

 

“Initial Term” – See Section 7(a).

 

“Lease Commencement Date” – See Section 7(a).

 

“Lease Filing” – See Section 6(a).

 

“Leased Spectrum – See Section 1(a).

 

“Leased Territories” – See the recitals to this Lease Agreement.

 

“Lessee” – See the initial paragraph of this Lease Agreement.

 

“Lessee Markets” – See Section 10(a)(iv).

 

“Lessor” – See the initial paragraph of this Lease Agreement.

 

“Losses” – See Section 13(a).

 

36

 

 “NPV” – See Section 10(b)(ii).

 

“Offer” – See Section 10(b)(iii).

 

“Option” – See Section 10(b)(i).

 

“Option Lease Payments” – See Section 10(b)(ii).

 

“Option Market” – See Section 10(b)(i).

 

“ORC Services” – See Section 10(b).

 

“Partial Termination” – See Section 14(b).

 

“Party” – See the initial paragraph of this Lease Agreement.

 

“place” – See Section 1(a).

 

“Pops” – See Section 1(a).

 

“Pops ROFR” – See Section 10(a)(iii).

 

“Pops ROFR Period” – See Section 10(a)(iii).

 

“Renewal Term” – See Section 7(b).

 

“Representatives” – See Section 10(d)(i).

 

“ROFR Markets” – See Section 10(b)(iii).

 

“Rural Operators” – See Section 10(c)(i).

 

“RUS” – See Section 10(d)(i).

 

“Sharing Obligations” – See Section 14(b).

 

“Spectrum Usage Rights” – See Section 1(a).

 

“Subleased Spectrum – See Section 10(c)(ii).

 

“System” – See the recitals to this Lease Agreement.

 

“System Equipment” – See Section 2(b).

 

“Termination Notice” – See Section 14(e).

 

[*]

 

“Variable Lease Payments” – See Section 8(a)(ii).

 

37

 

“Waiver Filings” – See Section 6(a).

 

[remainder of this page intentionally left blank — signature page follows]

 

38

 

     IN
WITNESS WHEREOF, the Parties hereto have caused this Lease Agreement
to be executed on the day and year first above written.

 

LESSOR

 

GLOBALSTAR
LICENSEE LLC

 

	
   By:

  	
      /s/ Fuad Ahmad

  	
   

  
	
   

  	
   

  
	
  Name:

  	
    Fuad Ahmad

  	
   

  
	
   

  	
   

  
	
  Title:

  	
    VP & CFO

  	
   

  
					

 

 

 LESSEE

 

OPEN RANGE
COMMUNICATIONS, INC.

 

	
   By:

  	
   /s/ William S. Beans, Jr.

  	
   

  
	
   

  	
   

  
	
  Name:

  	
     William S. Beans, Jr.

  	
   

  
	
   

  
	
  Title:

  	
     CEO

  	
   

  
					

 

39

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