Document:

exv10w32

 

EXHIBIT 10.32

	 	 	CONFIDENTIAL TREATMENT REQUESTED

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

BUSINESS TRANSITION SERVICES AGREEMENT

          BUSINESS
TRANSITION SERVICES AGREEMENT (this “Agreement”), dated
as of July 15, 2003, by and among Intelsat (Bermuda), Ltd., a Bermuda
company (“Purchaser”), Loral Space & Communications Corporation, a
Delaware corporation and as debtor and debtor-in-possession (“Loral
Space”), and Loral SpaceCom Corporation, a Delaware corporation and as
debtor and debtor-in-possession (“SpaceCom” and collectively with Loral
Space, the “Sellers”). Each of Purchaser and each of the Sellers is
referred to herein as a “Party.”

          WHEREAS, the Sellers, Loral Satellite, Inc., a Delaware corporation
and as debtor and debtor-in-possession (“Loral Satellite”), Intelsat,
Ltd., a Bermuda company, and Purchaser have entered into an Asset Purchase
Agreement of even date herewith (the “Asset Purchase Agreement”),
providing, among other things, for the sale by the Sellers and Loral
Satellite, and the purchase by Purchaser, of all of the right, title and
interest of the Sellers and Loral Satellite in and to the Purchased Assets
(as defined in the Asset Purchase Agreement), which include certain
geostationary earth orbit satellites referred to as Telstar 4, Telstar 5,
Telstar 6 and Telstar 7, as well as the satellites referred to as Telstar
8 and Telstar 13, which are currently under construction (collectively,
the “Satellites”);

          WHEREAS, in connection with the transactions contemplated under the
Asset Purchase Agreement, Purchaser intends to operate the Transferred
Business (as defined in the Asset Purchase Agreement) as an ongoing
enterprise, and Purchaser has requested that SpaceCom provide certain
services in support thereof prior to and following the closing of the
transactions under the Asset Purchase Agreement (the “Closing”) as set
forth in this Agreement;

          WHEREAS, the Asset Purchase Agreement contemplates that the Parties
hereto shall have entered into this Agreement as of the date of the Asset
Purchase Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants and
undertakings contained herein, and subject to and on the terms and
conditions herein set forth, the Parties hereto agree as follows:

     1. Definitions.

          Except as otherwise defined in this Agreement, all capitalized terms
used in this Agreement (including the Schedules hereto) shall have the
meanings assigned to them in the Asset Purchase Agreement.

     2. Provision of Services.

          (a) Subject to and on the terms and conditions herein set forth,
from and after the date contemplated by Section 2(b) and for the duration
of the Transition Period (defined below), SpaceCom shall (i) provide to
Purchaser the services described on Schedule A prior to the Closing and the
services described on Schedule B following the Closing (each a “Service”
and, collectively, the “Services”), and (ii) make reasonably available to
Purchaser sufficient personnel who are employed or contracted by SpaceCom
in order to provide such Services during the respective Service Periods
(“Personnel”) subject to Section 3 and the parameters set
forth in Schedules A and B.

 

 

          (b) SpaceCom shall commence providing the pre-Closing Services described
on Schedule A following at least five Business Days’ prior written notice
from Purchaser, which
shall not be given until the later of (i) the expiration of any applicable
waiting period under the
HSR Act relating to the transactions contemplated by the Asset Purchase
Agreement and (ii) the
date that the Sale Order shall have been entered by the Bankruptcy Court.
Such notice shall
provide, without prejudice to any of Purchaser’s rights under the Asset
Purchase Agreement, that
it is not aware of any fact or circumstance that would prevent Closing
from taking place;
provided, however, that Purchaser shall not be estopped from asserting at
any time in the future
that a condition to Closing has not been satisfied based on facts or
circumstances existing on the
date of such certification. SpaceCom shall, to the extent required by this
Agreement, continue to
provide the pre-Closing Services until the date on which the Closing
occurs. Nothing contained
in this Agreement shall be construed to require any performance
inconsistent with any
requirements of law, including, without limitation, the FCC’s rules and
the Communications Act
and applicable export control laws.

          (c) SpaceCom shall provide each of the post-Closing Services described on
Schedule B during an initial ***** term following the Closing, which
Purchaser may extend
for an additional ***** term and thereafter for successive 1-month terms
up to but not
exceeding a total of ***** for all such periods combined, by written
notice given at least
thirty (30) days in advance of the applicable renewal term (each, a
“Service Period”). Notwithstanding anything in this Agreement to the contrary, Purchaser may
terminate any
Service sooner than the termination date of the relevant Service Period
for that Service upon 30
days’ prior written notice to SpaceCom.

          (d) The term during which any Service is required to be provided in
accordance with the foregoing is hereafter referred to as the “Transition
Period.” The Transition
Period and this Agreement shall terminate when SpaceCom’s obligation to
provide Services
pursuant to the terms of this Agreement shall have terminated.

          (e) SpaceCom shall perform the Services for Purchaser in a professional
and
workmanlike manner with the same degree of care, skill and prudence
customarily exercised by
it for its own operations and in its provision of similar services to
itself and its subsidiaries, and
in compliance with applicable law, provided, however, that in no event
shall SpaceCom perform
the Services for Purchaser with less than a reasonable degree of care,
skill, and prudence or in a
manner not consistent with good industry practice.

          (f) Following the Closing, Purchaser will make available to SpaceCom
such of the Purchased Assets as SpaceCom shall reasonably request and that are
necessary for the performance of the Services.

     3. Personnel.

          (a) If the employment of any Personnel performing Services for
Purchaser is terminated by SpaceCom for any reason other than their
commencement of employment with Purchaser, then SpaceCom shall, at Purchaser’s
request, use its Best Reasonable Efforts to hire or reassign such personnel as
SpaceCom deems necessary to provide the Services in accordance with the terms
hereof. SpaceCom reserves the right to withdraw any Personnel who are engaged

2

 

in providing Services to Purchaser provided it gives prior notification to
Purchaser of such withdrawal and uses its Best Reasonable Efforts to hire or
reassign such personnel as SpaceCom deems necessary to provide the Services in
accordance with the terms hereof.

          (b) As soon as reasonably practicable after (i) SpaceCom receives
formal notice that any Personnel intends to terminate his/her employment with
SpaceCom or (ii) any Personnel has received formal notice of termination of
his/her employment from SpaceCom, SpaceCom will provide notice thereof to
Purchaser.

     4. Limitations on Scope of Services.

          (a) In providing the Services, SpaceCom shall not be obligated to:
(i) maintain the employment of any specific employee; (ii) purchase, lease or
license any additional equipment or software; (iii) pay or incur any costs
related to the transfer or conversion of data to Purchaser or the utilization
or engagement of any third party vendor or supplier, except to the extent
reimbursed by Purchaser; or (iv) incur any material unreimbursed out-of-pocket
expense in connection with its performance of the Services. Services shall be
provided solely during normal business hours, except as otherwise provided in
or required by the Schedules.

          (b) In assisting the Purchaser in the transfer of responsibility for the
Services,
SpaceCom shall not be responsible for the procurement of any and all
hardware, software,
computer systems, support, housing, data and other information technology
systems necessary or
desirable for Purchaser’s facilities to operate the Satellites, including
but not limited to the
procurement of all third party licenses (except those required to be
obtained by SpaceCom
pursuant to Section 9(a)) and vendor agreements.

          (c) If SpaceCom is unable to provide any of the Services because of a
failure
by Purchaser to supply information or materials necessary for SpaceCom to
provide the Services,
then the performance of such Services shall be suspended until SpaceCom
and Purchaser have
mutually agreed on an alternative approach.

     5. Access. Purchaser shall make available on a timely basis to
SpaceCom all
information and materials reasonably requested by SpaceCom to enable
it to provide the
Services. SpaceCom shall not be liable for any errors or omissions
resulting from incorrect
information provided by Purchaser.

     6. Payment.

          (a) It is understood and agreed that Purchaser has been granted a
credit (the “Credit”) of ***** that shall be applied to offset the first
***** of SpaceCom charges for pre-Closing services that would otherwise be
payable under this Agreement and the TT&C Transition Services Agreement
being entered into among the parties as of the date hereof (the “TT&C TSA”).
SpaceCom shall invoice Purchaser for fees for the Services rendered hereunder
on a monthly basis (i) in the case of pre-Closing Services, taking into account
the Credit, and in accordance with Section 6(b), and (ii) in the case of
Services provided following the Closing, in accordance with the fees specified
on Schedule B, and in each case Purchaser shall pay the amount of such invoice,
which invoice shall include reasonably detailed documentation of the Services
invoiced, in immediately available funds within 30 days of Purchaser’s receipt
thereof.

3

 

All payments pursuant to this Agreement shall be made in U.S. dollars without
any deduction or withholding for or on account of any set-off or tax unless
such deduction or withholding is required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, then in effect.

          (b) Fees for pre-Closing Services will be charged on an hourly basis,
based on
the actual hours of work performed by Personnel supplying such Services
determined at a
blended rate of ***** for such Services. Promptly following the
execution of this
Agreement, SpaceCom and Purchaser will work together to develop a
pre-Closing Services
implementation plan (including pre-Closing Services set forth in the TT&C
TSA), designed to
meet the pre-Closing training needs of Purchaser in an effective,
efficient and cost-effective
manner, which plan shall include cost estimates for the Services
identified to be performed by
SpaceCom over the pre-Closing period.

          (c) Promptly following the date hereof, SpaceCom and Purchaser will work
together to prepare a breakdown of fees for Services set forth on Schedule
B (“Breakdown”) to
be mutually agreed between Purchaser and SpaceCom, consistent with the per
month charges
and sub-allocation set forth on Schedule B. In the event that Purchaser
terminates any post-Closing Service, the fees payable to SpaceCom shall thereafter be reduced
in accordance with
the Breakdown and the scope of SpaceCom’s responsibilities will be
correspondingly reduced.

     7. Force Majeure. SpaceCom’s obligations to perform the Services shall be
suspended during the period and to the extent that SpaceCom is prevented
or hindered from
complying therewith by any cause beyond the reasonable control of
SpaceCom, including,
without limitation, acts of God, strikes, acts of terrorism, fire, flood,
power failures or surges,
epidemics, riots, theft, lock outs and other labor disputes, civil
disturbances, injunctions and
other government orders or legal requirements (whether under the export
control laws or
otherwise), accidents, acts of war or conditions arising out of or
attributable to war (whether
declared or undeclared). In such event, SpaceCom shall as soon as
reasonably practicable give
Purchaser notice of suspension, stating the Services to be suspended and
the cause thereof, and
SpaceCom shall resume the performance of such Services as soon as
reasonably practicable after
the cause of the suspension and the effects thereof that prevented or
hindered SpaceCom from
performing the Services shall cease to exist and shall so notify
Purchaser. Should a force
majeure event occur, at Purchaser’s request and at Purchaser’s sole cost
and expense, SpaceCom
shall, as promptly as reasonably practicable, migrate the Services that
have been suspended due
to the force majeure event to alternative facilities or another service
provider as directed by
Purchaser. Upon cessation of the force majeure event and the effects
thereof that prevented or
hindered SpaceCom from performing the Services, all obligations under this
Agreement shall
resume. SpaceCom shall not be liable for any damages, liability,
interruption of Service or delay
or failure to perform under this Agreement to the extent that such
damages, liability, interruption,
delay or failure results from a force majeure event as described in this
Section 7.

     8. Access to Facilities: Rights in Data.

          (a) Purchaser may co-locate up to fifteen (15) full-time equivalent
employees (who shall be U.S. citizens or lawful permanent U.S. residents) at
SpaceCom’s Hawley and/or Bedminster facilities with access to facilities and
key staff. SpaceCom shall provide office

4

 

facilities for Purchaser’s employees, consisting of a reasonable amount of
office space, office furniture, office supplies, desk-top computers (with
e-mail and internet access capabilities) equipped with operating system
software and necessary business software applications, regular parking
facilities, local, long distance and international telephone service and access
to copy and facsimile machines. Purchaser shall use its Best Reasonable Efforts
to ensure that all of its personnel located at SpaceCom’s premises as
contemplated by the Schedules hereto adhere to applicable security and
corporate rules and regulations. It is understood and agreed that such
personnel will be assigned to designated areas of SpaceCom’s premises, and may
require SpaceCom escorts when the scope of their work requires them to enter
other parts of the premises.

          (b) Purchaser acknowledges that, other than as provided in the Asset
Purchase
Agreement or any of the Ancillary Agreements, it is not entitled to any
intellectual property
rights (including any and all patent, trademark, service mark, copyright,
trade secrets, design
rights, know-how, confidential information and all other intellectual or
industrial property rights
whether or not registered or capable of registration) which subsist in any
and all data, text,
drawings, know-how, graphics, code or other information in electronic or
tangible form supplied
to Purchaser by SpaceCom or accessed by Purchaser in the course of the
provision of the
Services, whether created in the course of performing its obligations to
Purchaser or not,
provided, however, SpaceCom hereby grants Purchaser a perpetual,
non-exclusive, world-wide,
royalty-free, irrevocable and assignable license to use such data or other
information to the
extent left in Purchaser’s possession. Purchaser agrees not to contest the
validity, ownership or
enforceability of SpaceCom’s rights in and to any such data or other
information.

          (c) On the date SpaceCom begins providing the pre-Closing Services,
SpaceCom shall (i) be deemed to have granted a limited, terminable at
Closing, non-exclusive,
non-transferable development license to run one copy of the software
application code for the
TMS, VECS, Contracts Database, Billing System and LMS in a
Purchaser-provided and
Purchaser-managed test environment for Purchaser’s internal test purposes
only (the
“Development License”) and for the term of this Agreement (ii) promptly
provide to Purchaser
sample data (which, in SpaceCom’s discretion and subject to applicable law
may include dummy
data or actual data) that will be delivered by SpaceCom at Closing as
reasonably requested by
Purchaser. All software application code, material and data provided
pursuant to this provision
is proprietary and confidential to SpaceCom and shall be treated as
Information pursuant to
Section 13 of this Agreement. Purchaser shall not transfer, distribute,
sublicense, create
derivative works or provide third party access to any of the development
copies of the software
or test data. The Development License, application code software provided
pursuant thereto, as
well as all test data, will be provided on an “AS IS” basis and SpaceCom
will not and does not
make any representation or warranty whatsoever with respect to
functionality, performance,
suitability for particular purpose, non-infringement, or on any other
basis, direct or implied.
Purchaser assumes all liabilities and risks associated with its receipt
and use of the development
software and test data and SpaceCom is not liable for any loss, damage,
expense or cost of that
may arise from delivery or use including any fault or failure in the
operation of such software
and test data. Purchaser is responsible for providing the necessary
resources for using the
development copy of the TMS, VECS, Contracts Database, Billing System and
LMS software
and test data, including, computer hardware, computer systems (ie. UNIX,
and commercially
available databases such as C-ISAM and Oracle), test facilities, computer
programmers and

5

 

operators to load, configure, operate and test the software. SpaceCom shall
have no responsibilities or obligations to Purchaser with respect to the
matters contemplated by this Section 8(c) other than to provide the development
copies of the software and the test data. Acceptance by Purchaser of such
Development License or test data shall not be deemed a waiver by Purchaser of
any of Purchaser’s representations, warranties or rights under the Purchase
Agreement or any Ancillary Agreement (other than this Agreement). Grant by
SpaceCom of such Development License and delivery by SpaceCom of such test data
shall not be deemed a waiver by SpaceCom of any of SpaceCom’s representations,
warranties or rights under the Purchase Agreement or any Ancillary Agreement
(other than this Agreement).

     9. Warranties. Except as provided for herein, SpaceCom makes no warranties
of
any kind, whether express or implied, for the provision of Services.
SpaceCom specifically
disclaims any express, implied and statutory warranties, including,
without limitation, warranties
of merchantability or fitness for any particular purpose and
non-infringement of proprietary
rights, all of which are expressly disclaimed to the fullest extent
permitted by law. SpaceCom
hereby represents and warrants to, and covenants with, Purchaser that:

          (a) SpaceCom will comply in all material respects with all laws and
regulations applicable to SpaceCom in connection with its provision of the
Services hereunder,
and will maintain all permits, licenses, and other authorizations required
to so comply with such
laws and regulations.

          (b) The Services shall be performed in accordance with Section 2(e)
hereof.

          (c) SpaceCom shall keep all its equipment, software, and facilities that
are
necessary to, or useful in, the performance of the Services for Purchaser
in good working
condition and repair, subject to Section 2(e) hereof.

          (d) SpaceCom shall include in any proposed plan of reorganization the
assumption, reinstatement and ongoing performance by SpaceCom of this
Agreement.

          Loral Space hereby represents and warrants to, and covenants with,
Purchaser that Loral Space shall include in any proposed plan of reorganization
the assumption, reinstatement and ongoing performance by Loral Space of this
Agreement.

     10. Limitation of Liability. In no event shall any Party be liable for any
indirect,
special, punitive, consequential, or incidental damages, including, but
not limited to, lost profits,
income, or revenue, arising out of the performance of this Agreement, even
if such Party is
advised of such damages. SpaceCom disclaims all liabilities associated
with (i) the delivery or
transmission of any virus, worm, Trojan horse, logic bomb or other
disruptive device, provided
that SpaceCom has utilized reasonable commercially available security
measures in connection
therewith, or (ii) any delays, non-deliveries, downtime, cessation or
interruption of, or any defect
in all or any component part of any of the equipment, electronics,
programs, networks, data,
applications, software or systems of Purchaser, including but not limited
to those located at
Purchaser’s facilities or any part or component thereof. In no event shall
SpaceCom be liable for
any failures by Purchaser or its agents (which does not include any
Personnel or the Sellers or

6

 

their respective agents or employees) in the testing and/or implementation
of Purchaser’s systems to operate the Satellites, whether before, during
or after the Transition Period.

     11. Indemnification. Each party (the “Indemnifying Party”) hereby agrees
to defend,
indemnify, and hold harmless the other Parties and their agents,
employees, officers, and
directors from and against any damages, costs (including reasonable
attorneys’ fees), losses, or
other liabilities (hereinafter, collectively, a “Loss”), which any of the
foregoing may incur with
respect to any claim, demand, or action involving personal injury or loss
of tangible personal
property, to the extent that such Loss arises out of or relates to the
Indemnifying Party’s breach
of this Agreement. This Section 11 shall survive the termination of this
Agreement.

     12. Termination.

          (a) Unless otherwise provided herein, this Agreement shall terminate
as set forth in Section 2(c) hereof. If any Party (the “Defaulting Party”)
shall fail to perform or default in the performance of any material obligation
under this Agreement, the Party suffering such default (the “Non-Defaulting
Party”) may give written notice to the Defaulting Party specifying the nature
of such failure or default and stating that the Non-Defaulting Party intends to
terminate this Agreement if such failure or default is not cured within thirty
(30) days of such written notice (or within ten (10) days, in the event of a
default in the payment of money). If any such failure or default is not cured
within the applicable cure period, the Non-Defaulting Party may immediately
elect to terminate this Agreement. In the event that Purchaser terminates this
Agreement due to SpaceCom’s material breach, SpaceCom shall be liable to
Purchaser for any and all direct, out-of-pocket additional costs and expenses
incurred by Purchaser in using its Best Reasonable Efforts to perform the
Services directly, or have such Services performed for Purchaser, for the
duration of the Transition Period over and above the amounts that would have
been payable to SpaceCom for such Services hereunder, and SpaceCom shall have
no other liability with respect to such costs and expenses.

     13. Confidentiality. Each of Purchaser and SpaceCom hereby acknowledges
that
certain confidential information (the “Information,” which term shall
include all information in
respect of the business of Purchaser or SpaceCom, including, without
limitation, any ideas,
business methods, finances, prices, business, financial, marketing,
development or manpower
plans, customer lists or details, computer systems and software, know-how
or other matters
connected with the products or services marketed, provided or obtained by
Purchaser or
SpaceCom and information concerning their respective relationships with
actual or potential
customers and the needs and requirements of such persons may be disclosed
to the other Parties
and the other Parties’ employees, agents and subcontractors as a result of
the performance of the
Services subject to the provisions of Section 13(a). Notwithstanding
anything to the contrary
herein, this Section 13 shall not restrict in any way Purchaser’s use
following the Closing of any
Information necessary or desirable in connection with the continuing
operation of the
Transferred Business.

          (a) Each Party agrees with the other
Parties in respect of all Information:

               (i) to keep the Information in strict confidence and secrecy;

7

 

               (ii) not to use the Information save for enjoying its rights and
complying with its obligations under this Agreement;

               (iii) not to disclose the Information to any third party;

               (iv) to restrict the disclosure of any Information to (A) only such of
its employees, agents, subcontractors and other persons who require such
Information in the performance of their duties pursuant to this Agreement and
(B) only such portions of the Information as the employees, agents,
subcontractors and other persons referred to in this clause actually require
for the performance of such duties and, in such circumstances, to ensure that
such employees, agents, subcontractors and other persons are made aware of the
confidential nature of the Information and that they are required not to
disclose the Information except as permitted in this Section 13; and

               (v) Each Party shall return to the relevant Party any
portion of
Information in whatever form it may be and all copies thereof at such time as
such portion of Information is no longer required in connection with the
provision of Services under this Agreement, and all Information in whatever
form it may be and all copies thereof shall be returned to the relevant Party
and each Party shall confirm that no Information has been retained in its
possession or under its control on termination of this Agreement.

          (b) Section 13(a) shall not prevent the disclosure of Information
which:

               (i) the disclosing Party (or one of its officers, directors,
employees, agents or other representatives) is legally obligated to make;

               (ii) is made for a proper purpose to (1) a public authority, (2) a
court of law or otherwise in any legal proceeding or arbitration, or (3) the
auditors of, or any lawyer or professional person acting for, a Party; or

               (iii) is in the public domain other than by reason of a breach of any
obligation owed pursuant to this Agreement, provided that a confidential filing
with a Governmental Authority shall not be considered as being in the public
domain.

          (c) This obligation of confidentiality shall survive any termination
of this
Agreement.

     14. Relationship of Parties. Each Party in performing its obligations and
duties
hereunder shall be conclusively deemed to be an independent contractor and
not under the
control or supervision of the other Parties hereto and nothing in this
Agreement shall be read to
create any agency, partnership or joint venture of Purchaser and Loral
Space or SpaceCom or to
create any trust or other fiduciary relationship between them.

     15. Entire Agreement. This Agreement, together with the applicable
provisions of the
Asset Purchase Agreement, constitutes the entire agreement of the Parties
hereto with respect to
the subject matter hereof and supersedes all prior agreements and
undertakings, both written and
oral, with respect to the subject matter hereof.

8

 

     16. Assignment. Neither Loral Space nor SpaceCom may assign its rights or
obligations under this Agreement without the prior written consent of
Purchaser, and Purchaser
may not assign its rights or obligations under this Agreement without the
prior written consent of
SpaceCom, in each case which consent shall not be unreasonably withheld;
provided, however,
that Purchaser may (i) assign its rights or obligations hereunder without
such consent to an
Affiliate and (ii) assign, pledge and grant a security interest in its
right, title and interest, in, to
and under this Agreement and its rights hereunder as collateral security
for any present or future
indebtedness of Purchaser, Parent or any of its Affiliates.

     17. Amendment. This Agreement may not be amended or modified except by an
instrument in writing signed by each of the Parties hereto.

     18. Waiver. Failure or delay by any Party to this Agreement in exercising
any right
or remedy of that Party under this Agreement shall not operate as a waiver
of such right or
remedy, nor shall any single or partial exercise of any right or remedy
preclude any other or
future exercise of such right or remedy or the exercise of any other right
or remedy. Any waiver
of a breach of, or a default under, any of the terms of this Agreement
shall not be deemed a
waiver of any subsequent breach or default, and shall in no way affect the
other terms of this
Agreement.

     19. GOVERNING LAW; SUBMISSION TO JURISDICTION;
SELECTION OF FORUM. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. EACH PARTY HERETO AGREES THAT IT SHALL BRING ANY ACTION
OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTAINED IN OR
CONTEMPLATED BY THIS AGREEMENT, WHETHER IN TORT OR CONTRACT
OR AT LAW OR IN EQUITY, EXCLUSIVELY (A) IN THE BANKRUPTCY COURT
TO THE EXTENT THAT THE BANKRUPTCY COURT HAS JURISDICTION OVER
SUCH ACTION OR PROCEEDING, AND (B) IN ALL OTHER CASES IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK (THE
“CHOSEN COURTS”) AND (I) IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE CHOSEN COURTS, (II) WAIVES ANY OBJECTION TO
LAYING VENUE IN ANY SUCH ACTION OR PROCEEDING IN THE CHOSEN
COURTS, (III) WAIVES ANY OBJECTION THAT THE CHOSEN COURTS ARE AN
INCONVENIENT FORUM OR DO NOT HAVE JURISDICTION OVER ANY PARTY
HERETO, (IV) AGREES THAT SERVICE OF PROCESS UPON SUCH PARTY IN ANY
SUCH ACTION OR PROCEEDING SHALL BE EFFECTIVE IF NOTICE IS GIVEN IN
ACCORDANCE WITH SECTION 22 OF THIS AGREEMENT AND (V)
ACKNOWLEDGES THAT THE OTHER PARTIES WOULD BE IRREPARABLY
DAMAGED IF ANY OF THE PROVISIONS OF THIS AGREEMENT ARE NOT
PERFORMED IN ACCORDANCE WITH THEIR SPECIFIC TERMS AND THAT ANY
BREACH OF THIS AGREEMENT COULD NOT BE ADEQUATELY COMPENSATED
IN ALL CASES BY MONETARY DAMAGES ALONE AND THAT, IN ADDITION TO
ANY OTHER RIGHT OR REMEDY TO WHICH A PARTY MAY BE ENTITLED, AT
LAW OR IN EQUITY, IT SHALL BE ENTITLED TO ENFORCE ANY PROVISION OF
THIS AGREEMENT BY A DECREE OF SPECIFIC PERFORMANCE AND TO

9

 

TEMPORARY, PRELIMINARY AND PERMANENT INJUCTIVE RELIEF TO PREVENT BREACHES OR
THREATENED BREACHES OF ANY OF THE PROVISIONS OF THIS AGREEMENT, WITHOUT POSTING
ANY BOND OR OTHER UNDERTAKING.

     20. Severability. If any term, provision, covenant or condition of this
Agreement, or
the application thereof to any party or circumstance, shall be held to be
invalid or unenforceable
(in whole or in part) for any reason, the remaining terms, provisions,
covenants, and conditions
hereof shall continue in full force and effect as if this Agreement had
been executed with the
invalid or unenforceable portion eliminated, so long as this Agreement as
so modified continues
to express, without material change, the original intentions of the
Parties as to the subject matter
of this Agreement and the deletion of such portion of this Agreement will
not substantially
impair the respective benefits or expectations of the Parties to this
Agreement.

     21. No Third-Party Beneficiary. The provisions of this Agreement are for
the benefit
solely of the Parties hereto and their permitted assigns, and no third
party may seek to enforce or
benefit from these provisions.

     22. Notices. All notices or other communications hereunder shall be deemed
to have
been duly given and made if in writing and if served by personal delivery
upon the Party for
whom it is intended, if delivered by registered or certified mail, return
receipt requested, or by a
national courier service, or if sent by telecopier, provided that the
telecopy is promptly confirmed
by telephone confirmation thereof, to the person at the address set forth
below, or such other
address as may be designated in writing hereafter, in the same manner, by
such Party:

          To Purchaser:

Intelsat (Bermuda), Ltd.

Dundonald House

14 Dundonald Street West, Suite 201

Hamilton HM 09, Bermuda

Telecopy: +441-292-8300

Attn: President/CEO

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

Intelsat Global Service Corporation

3400 International Drive, NW

Washington, DC 20008-3006

Telecopy: (202) 944-7529

Attn: General Counsel and Senior Vice President for

Regulatory Affairs

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

Sullivan & Cromwell LLP

1701 Pennsylvania Avenue, NW

Washington, D.C. 20006

10

 

Telephone: (202) 956-7500

Telecopy: (202) 293-6330

Attn: Janet T. Geldzahler, Esq.

          To Sellers:

Loral Space & Communications Corporation

600 Third Avenue

New York, NY 10019

Telephone: (212) 697-1105

Telecopy: (212) 338-5320

Attn: General Counsel

          With a copy to:

Willkie Farr & Gallagher

787 Seventh Avenue
New York, NY 10019
Telephone:
(212) 728-8000
Telecopy:
(212) 728-8111
Attn: Bruce
R. Kraus, Esq.

     23. Counterparts. This Agreement may be executed in several counterparts,
each of
which shall be deemed an original, and all such counterparts together
shall constitute but one and
the same instrument.

     24. Guaranty. Loral Space hereby guarantees the prompt and complete
performance
when due of all of SpaceCom’s obligations hereunder. Loral Space agrees
that Purchaser and
SpaceCom may in their sole and absolute discretion, without notice to or
further assent of Loral
Space and without in any way releasing, affecting or impairing the
obligations under the
foregoing guaranty, (i) waive compliance with, or any default under, or
grant any other
indulgences with respect to this Agreement, and (ii) agree to modify,
amend or change any
provisions of this Agreement. The obligations of Loral Space under this
guaranty are continuing,
absolute and unconditional, and shall not be released, discharged or in
any way affected by
assignment or transfer of this Agreement by any Party hereto. Loral Space
and SpaceCom each
waive any requirement that Purchaser seek enforcement of its rights
against SpaceCom prior to
seeking enforcement of its rights against Loral Space under this guaranty.

11

 

          IN WITNESS WHEREOF, SpaceCom, Purchaser and Loral Space have caused this
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

	 	 	 	 	 
	 	 	INTELSAT (BERMUDA), LTD.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ramu Potarazu
	

	 	 	 	

	

	 	Title:
	 	   President
	 
	 	 	 	 
	 	 	LORAL SPACECOM CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric J. Zahler
	

	 	 	 	

	

	 	Title:
	 	   President and
	

	 	 	 	   Chief Operating Officer
	 
	 	 	 	 
	 	 	LORAL SPACE & COMMUNICATIONS
	 	 	CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric J. Zahler
	

	 	 	 	

	

	 	Title:
	 	   President and
	

	 	 	 	   Chief Operating Officer

 

 

Schedule A

Pre-Closing Services

Definitions (applicable to Schedules A and B)

“Reasonable access” as used herein shall include, in addition to meanings
assigned below, access to SpaceCom’s Hawley and/or Bedminster facilities on
weekdays from 8:00 AM to 6:00 PM Eastern time, and extended hours or weekends
upon request of Purchaser, in which case any additional cost of SpaceCom
security will be at Purchaser’s expense.

“Reasonable access” shall include access to such information related to
customers and contracts of SpaceCom that Purchaser is acquiring and shall
not include access to any information related exclusively to customers or
contracts of SpaceCom that are not being acquired by Purchaser.

“Employees of Purchaser” shall mean those who have been approved for the
respective access by SpaceCom security, including any applicable approvals for
ITAR access.

    	 	 	 	 	 	 	 	 	 
	

	Function 	 	Services to be provided by
          SpaceCom to Purchaser 
	

	1.	 	Training	 	a.	 	With regard to each of the business
          functions identified below, the assistance of SpaceCom key personnel
          to train employees of Purchaser in their respective functions will be
          provided. Such training may begin with informal “discovery”
          workshops and inquiry-response activities focused on the capture of
          key information about the SpaceCom business functions, operations, processes,
          procedures, and documentation to acquaint employees of Purchaser with
          SpaceCom operations related to assets to be acquired. Subsequent training
          may include one-on-one and small group sessions, assisted review of
          documentation, or other methods of knowledge transfer appropriate to
          the subject matter. Reasonable access to existing training material
          for both business and technical audiences will be provided to employees
          of Purchaser in each of the functional business areas identified below
          in connection with such training.
	
            

          
	 	 	 	 	b.	 	Over the course of the pre-Closing
          period, SpaceCom will provide training services for up to fifteen (15) full-time
          equivalent (FTE) employees of Purchaser designated by Purchaser
          in accordance with the terms of this Agreement, provided that SpaceCom
          shall not be required to develop new training materials. For the avoidance
          of doubt, copying and provision of documents, documentation and training
          materials under this Agreement will not be considered “training”
          under this Agreement and Purchaser will not be charged for such copying
          and provision.
	
          

        
	 	 	 	 	c.	 	Additional targeted training
          assistance upon request to facilitate satisfactory attainment of Purchaser’s
          training goals in each of the functional business areas identified below.
	

A-1

 

    	 	 	 	 	 	 	 	 	 
	

	Function 	 	Services to be provided by
          SpaceCom to Purchaser 
	

	2.	 	Business

          Systems	 	a.	 	Reasonable access for up to
          five (5) information technology employees of Purchaser for no less
          than fifteen (15) hours per week to (a) key SpaceCom staff
          with in-depth business and technical knowledge of the following Business
          Systems, and (b) existing system documentation, hardware inventory
          lists, and processes utilized by each of the following Business Systems
          for the indicated purposes:
	 
 
	 
	 	 	 	 	 	• 	 	Planning and Assignment Control Management:
          to manage carriers, earth stations, satellite loading and connectivity
          configuration
	 

	 
	 	 	 	 	 	• 	 	Contract Management and Customer Services:
          to manage customer contracts, accounts, contacts, customer contingency
          plans and customer service related functions
	 

	 
	 	 	 	 	 	• 	 	Booking & Carrier Services: to manage
          scheduling, reservations, booking and carrier access transactions and
          booking and carrier activation
	 

	 
	 	 	 	 	 	• 	 	Trouble Ticketing Services: to manage customer
          trouble tickets and problem management
	  
	 
	 	 	 	 	 	• 	 	Financial Services: to manage general ledger,
          procurement, PO tracking, accounts payables, accounts receivables, fixed
          assets, and billing and invoices
	  
	 
	 	 	 	 	 	• 	 	Sales and Forecasting Services: to manage
          sales and forecasting efforts
	 
 
	 	 	 	 	b.	 	System documentation will include
          existing requirements, design documents, interface documents, test plans,
          training materials, and data structure descriptions for such systems
          as the contract management application; Loading Plans Excel; LMS; Oracle
          Financials; SalesLogix application; TMS; VECs; trouble ticketing; and
          GAIN if it is to be acquired. If any new system documentation is created
          in the normal course of SpaceCom’s business, such new system documentation
          will be provided to Purchaser.
	 
          
 

	 	 	 	 	c.	 	SpaceCom will permit Purchaser
          to install and configure the VECS, TMS (and GAIN if it is to be acquired)
          software in a non-operational environment using Purchaser’s computer
          systems, development systems and employees. SpaceCom staff with in depth
          business knowledge of the software and hardware configurations will
          be available to Purchaser for consultation and advice.
	 

	 	 	 	 	d.	 	Copies of all data in the Business
          Systems listed above in a print and/or electronic format to be agreed
          upon by the parties to provide support for transition and/or conversion
          efforts. Purchaser shall perform any such conversion and SpaceCom staff
          with in-depth business knowledge will be available to Purchaser for
          consultation and advice.
	 
 
	3.	 	Sales & Marketing	 	 	 	Reasonable access for up to
          two (2) Sales & Marketing employees of Purchaser for no less
          than ten (10) hours per week to (a) key SpaceCom Sales &
          Marketing staff with in-depth knowledge of the customers and contracts
          that Purchaser is acquiring, and (b) sales management reports,
          customer meeting minutes, customer files, customer contracts and contact
          information, as well as miscellaneous customer information for such
          customers and contracts.
	 
 
	4.	 	Sales Support	 	 	 	Reasonable access for up to
          two (2) sales support employees of Purchaser for no less than ten
          (10) hours per week to (a) key SpaceCom staff with in-depth
          knowledge of the sales engineering function that supports the customers
          and contracts that Purchaser is acquiring; (b) key staff with in-depth
          business and technical knowledge of the following key sales support
          processes: capacity planning, sales engineering, satellite system utilization
          & optimization, link budget calculations and transmission plan
          assessment; and (c) spacecraft health & status reports, communications
          payload information, transmission plans for all operational or planned
          service, technical contact information for all earth station operators
          accessing the space segment and TTC&M sites, and planning and frequency
          management tools.
	

A-2

 

    	 	 	 	 	 	 	 	 	 
	

	Function 	 	Services to be provided by
          SpaceCom to Purchaser 
	

	5.	 	Billing	 	 	 	Reasonable access for one (1) Billing
          employee of Purchaser for no less than ten (10) hours per week
          to (a) key SpaceCom staff with in-depth business and financial
          knowledge of the Billing function that supports the customers and contracts
          that Purchaser is acquiring, and (b) invoicing processes, standard
          operating procedures, rate cards, revenue and billing data, and miscellaneous
          customer billing information related to those customers and contracts.
	 
            

          

	6.	 	Credit & Collections	 	 	 	Reasonable access for one (1) collections
          employee of Purchaser for no less than 10 hours per week to (a) key
          SpaceCom staff with in-depth knowledge of the credit & collections
          function that supports the customers and contracts that Purchaser is
          acquiring, and (b) customer contact history, accounts receivable
          data and history, credit evaluation and scoring, bad debt reserve analysis
          and analysis history
	 
            

          

	7.	 	VOC/IOC	 	 	 	Reasonable access for up to
          five (5) VOC/IOC employees of Purchaser for no less than twenty
          (20) hours per week to (a) key SpaceCom staff with in-depth
          knowledge of the reservations, scheduling, booking & carrier access
          functions; (b) all standard operating procedures, training materials,
          detailed schematics of the video monitoring system, quality and control
          processes, restoration plans, interference mitigation procedures; and
          (c) all support tools, including but not limited to wave form monitor,
          spectrum analyzers, vector scope, and audio analog and digital monitoring
          equipment.
	 
            

          

	8.	 	Facilities	 	 	 	SpaceCom will provide assigned
          workstation areas at its Hawley and Bedminster facilities for up to
          fifteen (15) FTE employees of Purchaser.
	

A-3

 

Schedule B

Post-Closing Services

Pricing (applicable to Schedule B)

	 	 	 	 	 
	 

	 	Per month charges:
	 	*****
	 
	 	 	 	 
	

	 	Sub-allocations:
	 	***** for services provided for Purchaser’s VOC/IOC Function
	 
	 	 	 	 
	

	 	 	 	***** for all other services

    	 	 	 	 	 	 	 	 	 	 	 
	

	Function	 	Services to be provided by
          SpaceCom to Purchaser	 	Service Level Agreements
	

	1.	 	Shadowing

          and

          Monitoring	 	a.	 	Continuation of pre-closing
          Reasonable access for employees of Purchaser to key staff, software,
          hardware, and documentation in all functional business areas identified
          herein for purpose of shadowing (observing) all SpaceCom business
          operations related to the assets, customers, and contracts acquired
          by Purchaser. Shadowing will be facilitated to provide employees of
          Purchaser adequate opportunity to ask questions, gain fuller understanding
          of actual functional performance, and familiarize Purchaser with specific
          customer preferences and requirements.	 	With regard to its performance during the
          Transition Period of business and technical functions and services related
          to the assets, contracts, and customers acquired by Purchaser, SpaceCom
          shall assign an adequate number of personnel to perform the functions
          and services who are properly trained and qualified, and SpaceCom shall
          use best efforts to retain such personnel for the duration of the Transition
          Period.
	 
            

          

	 	 	 	 	b.	 	With regard to the business
          functions associated with technical operations, the assistance of key
          SpaceCom personnel to permit VOC/IOC employees of Purchaser in their
          respective functions at Purchaser’s facilities to shadow their
          analogous SpaceCom employees in the performance of their tasks through
          appropriate bridges and shared systems.	 	 
	 
            

          

	 	 	 	 	c.	 	Shadowing will be facilitated
          to permit Purchaser to monitor quality and timeliness of performance
          and level of service availability during the Transition Period in all
          business functional areas identified herein with regard to assets, customers,
          and contracts acquired by Purchaser.	 	 
	 
            

          

	2.	 	Training	 	 	 	Additional targeted training
          assistance upon request to facilitate satisfactory attainment of Purchaser’s
          training goals in each of the functional business areas identified below,
          provided that such additional targeted training assistance shall not
          require SpaceCom to develop new training materials.	 	 
	

B-1

 

    	 	 	 	 	 	 	 	 	 	 	 
	

	Function	 	Services to be provided by
          SpaceCom to Purchaser	 	Service Level Agreements
	3.	 	Business

          Systems	 	a.	 	Continued support of existing
          business systems or COTS software, working with the Purchaser transition
          team in each of the following functional areas:	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          business operations; no degradation of pre-Closing level of service
          quality and availability
	 
            

          

	 
	 	 	 	 	 	• 	 	Planning and Assignment Control Management	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Contract Management and Customer Services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Booking and Carrier Services (existing business
          systems to include TMS, VEC, and GAIN)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Trouble Ticketing System	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Financial Services (to include software
          used for general ledger, procurement, PO tracking, accounts payables,
          accounts receivables, fixed assets, billing and invoices)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Sales and Forecasting Services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	In each case, the system solutions
          shall ensure segregation of business information between the Purchaser
          and SpaceCom networks, and maintain separate records for acquired contracts	 	 
	 
            

          

	 	 	 	 	b.	 	Full data exports pertaining
          to assets acquired by Purchaser from the following systems once for
          unit testing, once for system testing and once for the final data delivery:
          contract management application; Loading Plans Excel; LMS; Oracle Financials;
          SalesLogix application; TMS; VECS; trouble ticketing; and GAIN (if it
          is acquired). If this Agreement is extended for an additional Service
          Period, Loral Space will provide an additional full data export of such
          systems for each such Service Period.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	c.	 	Transfer to Purchaser of the
          toll free telephone numbers (appropriate bridges) used by customers
          acquired by Purchaser, which will be retained after expiration of Transition
          Period.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	d.	 	Maintenance of the following:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	continued user access to LAN and telephony
          services at SpaceCom’s Hawley/Bedminster facilities, including
          support and connectivity at any necessary PBX, switch, or router	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	continued user support and help desk services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	continued access to SpaceCom email to specified
          Purchaser employees	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	continued storage of archived business and
          customer files in off-site back-up	 	 
	 
            

          

	4.	 	Sales and

          Marketing	 	 	 	Mutually agreed-upon and facilitated
          customer introductions and hand-offs by SpaceCom to Purchaser	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of business
          operations; no degradation of pre-Closing level of service quality and
          availability
	

B-2

 

    	 	 	 	 	 	 	 	 	 	 	 
	

	Function	 	Services to be provided by
          SpaceCom to Purchaser	 	Service Level Agreements
	

	5.	 	Sales

          Support	 	a.	 	Continued management of sales
          support functions to include, without limitation, capacity planning
          and customer support during carrier activations. Notify Purchaser immediately
          on all matters in which service solutions are not available, and coordinate
          with Purchaser to address such situations to customer’s satisfaction.	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          business operations; no degradation of pre-Closing level of service
          quality and availability
	 
            

          

	 	 	 	 	b.	 	Continued preparation of communications
          payload information, transmission plans for all operational or planned
          service, technical contact information for all Earth Station Operators
          accessing the space segment, and planning and frequency management tools.	 	 
	 
            

          

	 	 	 	 	c.	 	Furnish monthly written report
          on Quality Assurance Metrics, which reports will be of the same scope
          and level of quality and detail as is produced by SpaceCom on the date
          hereof. Furnish biweekly written report of operational errors.	 	 
	 
            

          

	 	 	 	 	d.	 	SpaceCom shall cause to be provided
          communications payload information and IOT results in the form of printed
          reports and electronic data.	 	 
	 
            

          

	6.	 	Billing	 	a.	 	Continued management of all
          Billing functions performed pre-Closing, including monthly invoicing.	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          business operations; no degradation of pre-Closing level of service
          quality and availability
	 
            

          

	 	 	 	 	b.	 	Include statement on all bills/invoices
          that such bill/invoice is generated by SpaceCom on behalf of Intelsat.	 	 
	 
            

          

	 	 	 	 	c.	 	Furnish monthly written report
          on Quality Assurance Metrics, which reports will be of the same scope
          and level of quality and detail as is produced by SpaceCom on the date
          hereof.	 	 
	 
            

          

	7.	 	Credit and

          Collections	 	a.	 	Continued management of all
          Credit and Collection functions performed pre-Closing, in coordination
          with Purchaser transition team and subject to Purchaser approval with
          regard to any new accounts and extensions or other adjustments to existing
          accounts.	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          business operations; no degradation of pre-Closing level of service
          quality and availability
	 
            

          

	 	 	 	 	b.	 	Furnish monthly written report
          on Quality Assurance Metrics, which reports will be of the same scope
          and level of quality and detail as is produced by SpaceCom on the date
          hereof.	 	 
	

B-3

 

    	 	 	 	 	 	 	 	 	 	 	 
	

	Function	 	Services to be provided by
          SpaceCom to Purchaser	 	Service Level Agreements
	

	8.	 	VOC/IOC	 	a.	 	Continued management of reservations,
          scheduling, booking and carrier activation functions for all customers
          and contracts acquired by Purchaser, including, without limitation,
          the following responsibilities:	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          business operations; no degradation of pre-Closing level of service
          quality and availability. 
	 
            

          

	 
	 	 	 	 	 	• 	 	Respond to customer requests to activate
          services, to expand or reduce existing services, to start a new service,
          to modify service parameters (bandwidth, power, length of service, etc.)	 	In case of adverse events that may or do
          impact service or revenue, SpaceCom must include a representative of
          Purchaser in its escalation procedure
	 
            

          

	 
	 	 	 	 	 	• 	 	Manage all carrier activations/deactivations	 	 
	 

	 
	 	 	 	 	 	• 	 	Manage all carrier adjustments for all applicable
          services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Update and maintain a customer database
          for operational services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Manage customer inquiries pertaining to
          existing services	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Coordinate customer schedules and capacity
          utilizations	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Manage customer problems and fault resolution	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	• 	 	Maintain the LMS system	 	 
	 
            

          

	 	 	 	 	b.	 	Furnish monthly written reports
          to Purchaser on carrier activations, deactivations, and adjustments
          to service; coordination of customer schedules and capacity utilizations;
          and customer problems and fault resolution. Such reports will be of
          the same scope and level of quality and detail as is produced by SpaceCom
          on the date hereof.	 	 
	 
            

          

	 	 	 	 	c.	 	Facilitate Purchaser’s
          monitoring and quality assessments of services performed during the
          transition period through real-time telephone audit functions, site
          visits, and roll-over call capabilities, etc.	 	 
	 
            

          

	 	 	 	 	d.	 	Furnish SpaceCom engineering
          support, as necessary, to enable Purchaser to replicate video hardware
          (L-Band Matrix) at Intelsat facilities.	 	 
	 
            

          

	 	 	 	 	e.	 	Maintain viability of Disaster
          Recovery Plan	 	 
	 
            

          

	9.	 	Facilities	 	a.	 	Continued provision of assigned
          workstation area at SpaceCom’s Hawley and Bedminster facilities
          for up to fifteen (15) FTE employees of Purchaser, as in pre-Closing
          period.	 	 
	 
            

          

	 	 	 	 	b.	 	Reasonable access to SpaceCom
          facilities for purpose of dismantling, packing, relocating, and moving
          transferred equipment, files, and other property acquired by Purchaser	 	 
	

B-4exv10w33

 

EXHIBIT 10.33

	 	 	CONFIDENTIAL TREATMENT REQUESTED

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

TT&C TRANSITION SERVICES AGREEMENT

     TT&C TRANSITION SERVICES AGREEMENT (this “Agreement”), dated as of
July
15, 2003, by and among Intelsat (Bermuda), Ltd., a Bermuda company
(“Purchaser”), Loral Space & Communications Corporation, a Delaware corporation
and as debtor and debtor-in-possession (“Loral Space”), and Loral SpaceCom
Corporation, a Delaware corporation and as debtor and debtor-in-possession
(“SpaceCom” and collectively with Loral Space, the “Sellers”). Each of
Purchaser and each of the Sellers is referred to herein as a “Party”.

     WHEREAS, the Sellers, Loral Satellite, Inc., a Delaware corporation and as
debtor and debtor-in-possession (“Loral Satellite”), Intelsat, Ltd., a Bermuda
company, and Purchaser have entered into an Asset Purchase Agreement of even
date herewith (the “Asset Purchase Agreement”), providing, among other things,
for the sale by the Sellers and Loral Satellite, and the purchase by Purchaser,
of all of the right, title and interest of the Sellers and Loral Satellite in
and to the Purchased Assets (as defined in the Asset Purchase Agreement), which
include certain geostationary earth orbit satellites referred to as Telstar 4,
Telstar 5, Telstar 6 and Telstar 7, as well as the satellites known as Telstar
8 and Telstar 13, which are currently under construction (collectively, the
“Satellites”);

     WHEREAS, the Parties desire to provide for the orderly transition to
Purchaser of the telemetry, tracking and control functions with respect to the
Satellites, and Purchaser desires SpaceCom to provide certain satellite
operation and other services as set forth in the Schedules attached hereto
prior to and following the closing of the transactions under the Asset Purchase
Agreement (the “Closing”) as set forth in this Agreement;

     WHEREAS, the Asset Purchase Agreement contemplates that the Parties hereto
shall have entered into this Agreement as of the date of the Asset Purchase
Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and
undertakings contained herein, and subject to and on the terms and
conditions herein set forth, the Parties hereto agree as follows:

     1. Definitions.

     Except as otherwise defined in this Agreement, all capitalized terms used
in this Agreement (including the Schedules hereto) shall have the meanings
assigned to them in the Asset Purchase Agreement.

     2. Provision of Services.

          (a) Subject to and on the terms and conditions herein set forth, from
and after the date contemplated by Section 2(b) and for the duration of the
Transition Period (defined below), SpaceCom shall (i) provide to Purchaser the
services described on Schedule A prior to the Closing and the services
described on Schedules B and C following the Closing (each a “Service” and,
collectively, the “Services”), and (ii) make reasonably available to Purchaser
sufficient personnel who are employed or contracted by SpaceCom in order to
provide such Services during the respective Service Periods (“Personnel”)
subject to Section 4 and the parameters set forth in Schedules A, B and C.

 

 

          (b) SpaceCom shall commence providing the pre-Closing Services described
on Schedule A following at least five Business Days’ prior written notice
from Purchaser, which
shall not be given until the later of (i) the expiration of any applicable
waiting period under the
HSR Act relating to the transactions contemplated by the Asset Purchase
Agreement and (ii) the
date that the Sale Order shall have been entered by the Bankruptcy Court.
Such notice shall
provide, without prejudice to any of Purchaser’s rights under the Asset
Purchase Agreement, that
it is not aware of any fact or circumstance that would prevent Closing
from taking place;
provided, however, that Purchaser shall not be estopped from asserting at
any time in the future
that a condition to Closing has not been satisfied based on facts or
circumstances existing on the
date of such certification. SpaceCom shall, to the extent required by this
Agreement, continue to
provide the pre-Closing Services until the date on which the Closing
occurs. Nothing contained
in this Agreement shall be construed to require any performance
inconsistent with any
requirements of law, including, without limitation, the FCC’s rules and
the Communications Act
and applicable export control laws.

          (c) SpaceCom shall provide each of the post-Closing Services described on
Schedules B and C during an initial ***** term following the Closing,
which Purchaser may
extend for ***** by written notice given at least
three months in
advance of each such additional term (each, a “Service Period”).

          (d) The term during which any Service is required to be provided in
accordance with the foregoing is hereafter referred to as the “Transition
Period.” The Transition
Period and this Agreement shall terminate when SpaceCom’s obligation to
provide Services
pursuant to the terms of this Agreement shall have terminated.

          (e) SpaceCom shall perform the Services for Purchaser in a professional
and
workmanlike manner with the same degree of care, skill and prudence
customarily exercised by
it for its own operations and in its provision of similar services to
itself and its subsidiaries, and
in compliance with applicable law, provided, however, that in no event
shall SpaceCom perform
the Services for Purchaser with less than a reasonable degree of care,
skill, and prudence or in a
manner not consistent with good industry practice.

          (f) Following the Closing, Purchaser will make available to SpaceCom such
of the Purchased Assets as SpaceCom shall reasonably request and that are
necessary for the
performance of the Services.

     3. Service Fees.

          (a) It is understood and agreed that Purchaser has been granted a
credit (the
“Credit”) of ***** that shall be applied to offset the first *****
of SpaceCom charges for
pre-Closing Services that would otherwise be payable under this Agreement
and the Business
Transition Services Agreement being entered into among the parties as of
the date hereof (the
“Business TSA”). SpaceCom shall invoice Purchaser for fees for the
Services rendered
hereunder on a monthly basis (i) in the case of pre-Closing Services, taking
into account the Credit, and in accordance with Section 3(b), and (ii) in
the case of Services provided following the Closing, in accordance with the
fees specified on Schedule B based on the number of satellites for which
Services are being provided during the applicable month, and in each case

2

 

Purchaser shall pay the amount of such invoice, which invoice shall include
reasonably detailed documentation of the Services invoiced, in immediately
available funds within 30 days of Purchaser’s receipt thereof. All payments
pursuant to this Agreement shall be made in U.S. dollars without any deduction
or withholding for or on account of any set-off or tax unless such deduction or
withholding is required by any applicable law, as modified by the practice of
any relevant governmental revenue authority, then in effect.

          (b) Fees for pre-Closing Services will be charged on an hourly basis,
based on
the actual hours of work performed by Personnel supplying such Services
determined at a
blended rate of ***** for such Services. Promptly following the
execution of this
Agreement, SpaceCom and Purchaser will work together to develop a
pre-Closing Services
implementation plan (including pre-Closing Services set forth in the
Business TSA), designed to
meet the pre-Closing training needs of Purchaser in an effective,
efficient and cost-effective
manner, which plan shall include cost estimates for the Services
identified to be performed by
SpaceCom over the pre-Closing period.

          (c) Promptly following the date hereof, SpaceCom and Purchaser will work
together to prepare a breakdown of fees for Services set forth on Schedule
B (“Breakdown”) to
be mutually agreed between Purchaser and SpaceCom, consistent with the per
month charges
and sub-allocation set forth on Schedule B. In the event that Purchaser
terminates any post-Closing Service, the fees payable to SpaceCom shall thereafter be reduced
in accordance with
the Breakdown and the scope of SpaceCom’s responsibilities will be
correspondingly reduced.

          (d) No Party shall be liable for any indirect, special, punitive,
incidental or
consequential damages, losses or expenses arising out of or under this
Agreement whether under
contract, warranty or tort, including loss of revenue or lost profits,
regardless of the
foreseeability of such damages, losses or expenses. Sellers shall have no
liability whatsoever for
loss of or damage to, any of the Satellites, except to the extent caused
by their willful
misconduct. Sellers shall have no liability whatsoever in the event that
any of their customers
asserts against Purchaser a claim or right relating to or in any way
arising out of the availability
use or operation of the Services or the facilities used to provide the
Services, or otherwise out of
this Agreement. Notwithstanding the foregoing, in the event that any party
other than a customer
of Sellers asserts against Purchaser a claim or right relating to or in
any way arising out of the
availability, use or operation of the Services or the facilities used to
provide the Services, or
otherwise out of this Agreement, SpaceCom shall indemnify and hold
Purchaser harmless
against any and all claims, demands, liabilities, costs, and expenses of
whatsoever nature,
including attorneys fees, relating to or in any way arising out of the
asserted claim or right, up to
a maximum amount of *****. This Section 3(b) shall survive the
termination of this
Agreement.

     4. Personnel.

          (a) If the employment of any Personnel performing Services for
Purchaser is terminated by SpaceCom for any reason other than their
commencement of employment with Purchaser, then SpaceCom shall, at Purchaser’s
request, use its Best Reasonable Efforts to hire or reassign such personnel as
SpaceCom deems necessary to provide the Services in accordance with the terms
hereof. SpaceCom reserves the right to withdraw any Personnel who are engaged

3

 

in providing Services to Purchaser provided it gives prior notification to
Purchaser of any such withdrawal that is outside of its ordinary course
rotation of Personnel among the satellites SpaceCom is operating at the time,
in which case SpaceCom will use its Best Reasonable Efforts to hire or reassign
such personnel as SpaceCom deems necessary to provide the Services in
accordance with the terms hereof.

          (b) Purchaser shall use its Best Reasonable Efforts to ensure that all of
its
personnel located at SpaceCom’s premises as contemplated by the Schedules
hereto adhere to
applicable security and corporate rules and regulations. It is understood
and agreed that such
personnel will be assigned to designated areas of SpaceCom’s premises, and
may require
SpaceCom escorts when the scope of their work requires them to enter other
parts of the
premises.

          (c) As soon as reasonably practicable after (i) SpaceCom receives formal
notice that any Personnel intends to terminate his/her employment with
SpaceCom or (ii) any
Personnel has received formal notice of termination of his/her employment
from SpaceCom,
SpaceCom will provide notice thereof to Purchaser.

     5. Limitations on Scope of Services.

          (a) In providing the Services, SpaceCom shall not be obligated to: (i)
maintain the employment of any specific employee; (ii) purchase, lease or
license any additional
equipment or software; (iii) pay or incur any costs related to the
transfer or conversion of data to
Purchaser or the utilization or engagement of any third party vendor or
supplier, except to the
extent reimbursed by Purchaser; or (iv) incur any material unreimbursed
out-of-pocket expense
in connection with its performance of the Services.

          (b) In assisting the Purchaser in the transfer of responsibility for the
Services,
SpaceCom shall not be responsible for the procurement of any and all
hardware, software,
computer systems, support, housing, data and other information technology
systems necessary or
desirable for Purchaser’s facilities to operate the Satellites, including
but not limited to the
procurement of all third party licenses (except those required to be
obtained by SpaceCom
pursuant to Section 8(a)) and vendor agreements.

     6. Termination.

          (a) Purchaser may terminate this Agreement for its convenience as to all
or any portion of the Services provided by SpaceCom hereunder upon thirty
(30) days’ prior written
notice to SpaceCom; provided that if Purchaser is terminating all Services
hereunder with respect
to a particular satellite in connection with a transition of control of
such satellite to Purchaser as
contemplated by Section 4.4.1.1 of Schedule C, Purchaser shall give the
notice set forth in that
Section.

          (b) Purchaser may terminate this Agreement if any other Party has
materially
breached any of its obligations under this Agreement, and SpaceCom may
terminate this
Agreement if Purchaser has materially breached any of its obligations
under this Agreement, in
each case if the breaching Party has failed to cure such breach within
thirty (30) days after

4

 

receipt of notice of such breach from the non-breaching party (or within ten
(10) days, in the event of a default in the payment of money).

          (c) Notwithstanding
any other provisions of this Agreement, this
Agreement shall terminate by its own terms ***** after the
Closing, unless otherwise extended by Purchaser in accordance with Section 2(c)
above.

     7. Force Majeure. SpaceCom’s obligations to perform the Services shall be
suspended during the period and to the extent that SpaceCom is prevented
or hindered from
complying therewith by any cause beyond the reasonable control of
SpaceCom, including,
without limitation, acts of God, strikes, acts of terrorism, fire, flood,
power failures or surges,
epidemics, riots, theft, lock outs and other labor disputes, civil
disturbances, injunctions and
other government orders or legal requirements (whether under the export
control laws or
otherwise), accidents, acts of war or conditions arising out of or
attributable to war (whether
declared or undeclared). In such event, SpaceCom shall as soon as
reasonably practicable give
Purchaser notice of suspension, stating the Services to be suspended and
the cause thereof, and
SpaceCom shall resume the performance of such Services as soon as
reasonably practicable after
the cause of the suspension and the effects thereof that prevented or
hindered SpaceCom from
performing the Services shall cease to exist and shall so notify
Purchaser. Should a force
majeure event occur, at Purchaser’s request and at Purchaser’s sole cost
and expense, SpaceCom
shall, as promptly as practicable, migrate the Services that have been
suspended due to the force
majeure event to alternative facilities or another service provider as
directed by Purchaser. Upon
cessation of the force majeure event and the effects thereof that
prevented or hindered SpaceCom
from performing the Services, all obligations under this Agreement shall
resume. SpaceCom
shall not be liable for any damages, liability, interruption of Service or
delay or failure to
perform under this Agreement to the extent that such damages, liability,
interruption, delay or
failure results from a force majeure event, as described in this
Section 7.

     8. Warranties. Except as provided for herein, SpaceCom makes no warranties
of
any kind, whether express or implied, for the provision of Services.
SpaceCom specifically
disclaims any express, implied and statutory warranties, including,
without limitation, warranties
of merchantability or fitness for any particular purpose and
non-infringement of proprietary
rights, all of which are expressly disclaimed to the fullest extent
permitted by law. SpaceCom
hereby represents and warrants to, and covenants with, Purchaser that:

          (a) SpaceCom will comply in all material respects with all laws and
regulations applicable to SpaceCom in connection with its provision of the
Services hereunder,
and will maintain all permits, licenses, and other authorizations required
to so comply with such
laws and regulations.

          (b) The Services shall be performed in accordance with Section 2(e)
hereof.

          (c) SpaceCom shall keep all its equipment, software, and facilities that
are
necessary to, or useful in, the performance of the Services for Purchaser
in good working
condition and repair, subject to Section 2(e) hereof.

5

 

          (d) SpaceCom shall include in any proposed plan of
reorganization the assumption, reinstatement and ongoing performance by
SpaceCom of this Agreement.

     Loral Space hereby represents and warrants to, and covenants with,
Purchaser that Loral Space shall include in any proposed plan of reorganization
the assumption, reinstatement and ongoing performance by Loral Space of this
Agreement.

     9. Access to Facilities; Rights in Data.

          (a) Purchaser may co-locate up to five (5) full-time equivalent employees
(who shall be U.S. citizens or lawful permanent U.S. residents) at
SpaceCom’s Hawley and/or
Three Peaks facilities with access to facilities and key staff. SpaceCom
shall provide office
facilities for Purchaser’s employees, consisting of a reasonable amount of
office space, office
furniture, office supplies, desk-top computers (with e-mail and internet
access capabilities),
regular parking facilities, local, long distance and international
telephone service and access to
copy and facsimile machines. Purchaser shall use its Best Reasonable
Efforts to ensure that all
of its personnel located at SpaceCom’s premises as contemplated by the
Schedules hereto adhere
to applicable security and corporate rules and regulations. It is
understood and agreed that such
personnel will be assigned to designated areas, and may require SpaceCom
escorts when the
scope of their work requires them to enter other parts of the premises.

          (b) Purchaser acknowledges that, other than as provided in the Asset
Purchase
Agreement or any of the Ancillary Agreements, it is not entitled to any
intellectual property
rights (including any and all patent, trademark, service mark, copyright,
trade secrets, design
rights, know-how, confidential information and all other intellectual or
industrial property rights
whether or not registered or capable of registration) which subsist in any
and all data, text,
drawings, know-how, graphics, code or other information in electronic or
tangible form supplied
to Purchaser by SpaceCom or accessed by Purchaser in the course of the
provision of the
Services, whether created in the course of performing its obligations to
Purchaser or not,
provided, however, SpaceCom hereby grants Purchaser a perpetual,
non-exclusive, world-wide,
royalty-free, irrevocable and assignable license to use such data or other
information to the
extent left in Purchaser’s possession. Purchaser agrees not to contest the
validity, ownership or
enforceability of SpaceCom’s rights in and to any such data or other
information.

     10. Confidentiality. Each of Purchaser and SpaceCom hereby acknowledges
that
certain confidential information (the “Information,” which term shall
include all information in
respect of the business of Purchaser or SpaceCom, including, without
limitation, any ideas,
business methods, finances, prices, business, financial, marketing,
development or manpower
plans, customer lists or details, computer systems and software, know-how
or other matters
connected with the products or services marketed, provided or obtained by
Purchaser or
SpaceCom and information concerning their respective relationships with
actual or potential
customers and the needs and requirements of such persons may be disclosed
to the other Parties
and the other Parties’ employees, agents and subcontractors as a result of
the performance of the
Services subject to the provisions of Section 10(a). Notwithstanding
anything to the contrary
contained herein, this Section 10 shall not restrict in any way
Purchaser’s use following the
Closing of any Information necessary or desirable in connection with the
continuing operation of
the Transferred Business.

6

 

          (a) Each Party agrees with the other Parties in
respect of all Information:

               (i) to keep the Information in strict confidence
and secrecy;

               (ii) not to use the Information save for enjoying its rights and
complying with its obligations under this Agreement;

               (iii) not to disclose the Information to any third party;

               (iv) to restrict the disclosure of any Information to (A) only such of
its employees, agents, subcontractors and other persons who require such
Information in the performance of their duties pursuant to this Agreement and
(B) only such portions of the Information as the employees, agents,
subcontractors and other persons referred to in this clause actually require
for the performance of such duties and, in such circumstances, to ensure that
such employees, agents, subcontractors and other persons are made aware of the
confidential nature of the Information and that they are required not to
disclose the Information except as permitted in this Section 10; and

               (v) Each Party shall return to the relevant Party any
portion of
Information in whatever form it may be and all copies thereof at such time as
such portion of Information is no longer required in connection with the
provision of Services under this Agreement, and all Information in whatever
form it may be and all copies thereof shall be returned to the relevant Party
and each Party shall confirm that no Information has been retained in its
possession or under its control on termination of this Agreement.

          (b) Section 10(a) shall not prevent the disclosure of Information
which:

               (i) the disclosing Party (or one of its officers, directors,
employees, agents or other representatives) is legally obligated to make;

               (ii) is made for a proper purpose to (1) a public authority, (2) a
court of law or otherwise in any legal proceeding or arbitration, or (3) the
auditors of, or any lawyer or professional person acting for, a Party; or

               (iii) is in the public domain other than by reason of a breach of any
obligation owed pursuant to this Agreement, provided that a confidential filing
with a Governmental Authority shall not be considered as being in the public
domain.

          (c) This obligation of confidentiality shall survive any termination
of this
Agreement.

     11. Relationship of Parties. Each Party in performing its obligations
and duties hereunder shall be conclusively deemed to be an independent
contractor and not under the control or supervision of the other Parties hereto
and nothing in this Agreement shall be read to create any agency, partnership
or joint venture of Purchaser and Loral Space or SpaceCom or to create any
trust or other fiduciary relationship between them.

7

 

     12. Entire Agreement. This Agreement, together with the applicable
provisions of the
Asset Purchase Agreement, constitutes the entire agreement of the Parties
hereto with respect to
the subject matter hereof and supersedes all prior agreements and
undertakings, both written and
oral, with respect to the subject matter hereof.

     13. Assignment. Neither Loral Space nor SpaceCom may assign its rights or
obligations under this Agreement without the prior written consent of
Purchaser, and Purchaser
may not assign its rights or obligations under this Agreement without the
prior written consent of
SpaceCom, in each case which consent shall not be unreasonably withheld;
provided, however,
that Purchaser may (i) assign its rights or obligations hereunder without
such consent to an
Affiliate and (ii) assign, pledge and grant a security interest in its
right, title and interest, in, to
and under this Agreement and its rights hereunder as collateral security
for any present or future
indebtedness of Purchaser, Parent or any of their Affiliates.

     14. Amendment. This Agreement may not be amended or modified except by an
instrument in writing signed by each of the Parties hereto.

     15. Waiver. Failure or delay by any Party to this Agreement in exercising
any right
or remedy of that Party under this Agreement shall not operate as a waiver
of such right or
remedy, nor shall any single or partial exercise of any right or remedy
preclude any other or
future exercise of such right or remedy or the exercise of any other right
or remedy. Any waiver
of a breach of, or a default under, any of the terms of this Agreement
shall not be deemed a
waiver of any subsequent breach or default, and shall in no way affect the
other terms of this
Agreement.

     16. GOVERNING LAW; SUBMISSION TO JURISDICTION;
SELECTION OF FORUM. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. EACH PARTY HERETO AGREES THAT IT SHALL BRING ANY ACTION
OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTAINED IN OR
CONTEMPLATED BY THIS AGREEMENT, WHETHER IN TORT OR CONTRACT
OR AT LAW OR IN EQUITY, EXCLUSIVELY (A) IN THE BANKRUPTCY COURT
TO THE EXTENT THAT THE BANKRUPTCY COURT HAS JURISDICTION OVER
SUCH ACTION OR PROCEEDING, AND (B) IN ALL OTHER CASES IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK (THE
“CHOSEN COURTS”) AND (I) IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE CHOSEN COURTS, (II) WAIVES ANY OBJECTION TO
LAYING VENUE IN ANY SUCH ACTION OR PROCEEDING IN THE CHOSEN
COURTS, (III) WAIVES ANY OBJECTION THAT THE CHOSEN COURTS ARE AN
INCONVENIENT FORUM OR DO NOT HAVE JURISDICTION OVER ANY PARTY
HERETO, (IV) AGREES THAT SERVICE OF PROCESS UPON SUCH PARTY IN ANY
SUCH ACTION OR PROCEEDING SHALL BE EFFECTIVE IF NOTICE IS GIVEN IN
ACCORDANCE WITH SECTION 19 OF THIS AGREEMENT AND (V)
ACKNOWLEDGES THAT THE OTHER PARTIES WOULD BE IRREPARABLY
DAMAGED IF ANY OF THE PROVISIONS OF THIS AGREEMENT ARE NOT
PERFORMED IN ACCORDANCE WITH THEIR SPECIFIC TERMS AND THAT ANY

8

 

BREACH OF THIS AGREEMENT COULD NOT BE ADEQUATELY COMPENSATED IN ALL CASES BY
MONETARY DAMAGES ALONE AND THAT, IN ADDITION TO ANY OTHER RIGHT OR REMEDY TO
WHICH A PARTY MAY BE ENTITLED, AT LAW OR IN EQUITY, IT SHALL BE ENTITLED TO
ENFORCE ANY PROVISION OF THIS AGREEMENT BY A DECREE OF SPECIFIC PERFORMANCE AND
TO TEMPORARY, PRELIMINARY AND PERMANENT INJUNCTIVE RELIEF TO PREVENT BREACHES
OR THREATENED BREACHES OF ANY OF THE PROVISIONS OF THIS AGREEMENT, WITHOUT
POSTING ANY BOND OR OTHER UNDERTAKING.

     17. Severability. If any term, provision, covenant or condition of this
Agreement, or
the application thereof to any party or circumstance, shall be held to be
invalid or unenforceable
(in whole or in part) for any reason, the remaining terms, provisions,
covenants, and conditions
hereof shall continue in full force and effect as if this Agreement had
been executed with the
invalid or unenforceable portion eliminated, so long as this Agreement as
so modified continues
to express, without material change, the original intentions of the
Parties as to the subject matter
of this Agreement and the deletion of such portion of this Agreement will
not substantially
impair the respective benefits or expectations of the Parties to this
Agreement.

     18. No Third-Party Beneficiary. The provisions of this Agreement are for
the benefit
solely of the Parties hereto and their permitted assigns, and no third
party may seek to enforce or
benefit from these provisions.

     19. Notices. All notices or other communications hereunder shall be deemed
to have
been duly given and made if in writing and if served by personal delivery
upon the Party for
whom it is intended, if delivered by registered or certified mail, return
receipt requested, or by a
national courier service, or if sent by telecopier, provided that the
telecopy is promptly confirmed
by telephone confirmation thereof, to the person at the address set forth
below, or such other
address as may be designated in writing hereafter, in the same manner, by
such Party:

9

 

	 	 	To Purchaser:

	 	 	Intelsat (Bermuda), Ltd.
Dundonald House

14 Dundonald Street West, Suite 201 
Hamilton HM 09, Bermuda

Telecopy: +441-292-8300 
Attn:
President/CEO

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

	 	 	Intelsat Global Service Corporation

3400 International Drive, NW

Washington, DC 20008-3006

Telecopy: (202) 944-7529

Attn: General Counsel and Senior Vice President for

Regulatory Affairs

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

	 	 	Sullivan & Cromwell LLP

1701 Pennsylvania Avenue, NW

Washington, D.C. 20006

Telephone: (202) 956-7500

Telecopy: (202) 293-6330

Attn: Janet T. Geldzahler,
Esq.

	 	 	To Sellers:

	 	 	Loral Space & Communications Corporation

600 Third Avenue

New York, NY 10019

Telephone: (212) 697-1105

Telecopy: (212) 338-5320

Attn: General Counsel

	 	 	With a copy to:

	 	 	Willkie Farr & Gallagher

787 Seventh Avenue

New York, NY 10019

Telephone: (212) 728-8000

Telecopy: (212) 728-8111

Attn: Bruce R. Kraus, Esq.

     20. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, and all such
counterparts together shall constitute but one and the same instrument.

10

 

     21. Guaranty. Loral Space hereby guarantees the prompt and complete
performance when due of all of SpaceCom’s obligations hereunder. Loral Space
agrees that Purchaser and SpaceCom may in their sole and absolute discretion,
without notice to or further assent of Loral Space and without in any way
releasing, affecting or impairing the obligations under the foregoing guaranty,
(i) waive compliance with, or any default under, or grant any other indulgences
with respect to this Agreement, and (ii) agree to modify, amend or change any
provisions of this Agreement. The obligations of Loral Space under this
guaranty are continuing, absolute and unconditional, and shall not be released,
discharged or in any way affected by assignment or transfer of this Agreement
by any Party hereto. Loral Space and SpaceCom each waive any requirement that
Purchaser seek enforcement of its rights against SpaceCom prior to seeking
enforcement of its rights against Loral Space under this guaranty.

11

 

     IN WITNESS WHEREOF, SpaceCom, Purchaser and Loral Space have caused this
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

	 	 	 	 	 
	 	INTELSAT (BERMUDA), LTD.

 	 
	 	By:  	/s/ Ramu Potarazu
 	 
	 	 	 	 
	 	Title:  	 

President 	 
	 

	 	 	 	 	 
	 	LORAL SPACECOM CORPORATION

 	 
	 	By:  	/s/ Eric J. Zahler
 	 
	 	 	 	 
	 	Title:  	President and
Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	LORAL SPACE & COMMUNICATIONS

CORPORATION

 	 
	 	By:  	/s/ Eric J. Zahler
 	 
	 	 	 	 
	 	Title:  	
President and
Chief Operating Officer 

 

 

	 	 	 	 	 

Schedule A

Pre-Closing Services

Definitions (applicable to Schedules A and B)

“Reasonable access” as used herein shall include, in addition to meanings
assigned below, access to SpaceCom’s Hawley and/or Three Peaks facilities on
weekdays from 8:00 AM to 6:00 PM local time, and extended hours or weekends
upon request of Purchaser, in which case any additional cost of SpaceCom
security will be at Purchaser’s expense.

“Reasonable access” shall include access to such information related to
customers and contracts of SpaceCom that Purchaser is acquiring and shall not
include access to any information related exclusively to customers or
contracts of SpaceCom that are not being acquired by Purchaser.

“Employees of Purchaser” shall mean those who have been approved for the
respective access by SpaceCom security, including any applicable approvals for
ITAR access.

    	 	 	 	 	 
	

	Function	 	Services to be provided by SpaceCom to
          Purchaser
	

	1.
            Training 
	 	a. 	 	With regard to each of the business functions
          identified below, the assistance of SpaceCom key personnel to train
          employees of Purchaser in their respective functions will be provided.
          Such training may begin with informal “discovery” workshops
          and inquiry-response activities focused on the capture of key information
          about the SpaceCom satellites, satellite operations, and engineering
          functions, operations, processes, procedures, and documentation to acquaint
          employees of Purchaser with SpaceCom operations related to assets to
          be acquired. Subsequent training may include one-on-one and small group
          sessions, assisted review of documentation, or other methods of knowledge
          transfer appropriate to the subject matter. Reasonable access to existing
          satellite and satellite operations training material for both operations
          and engineering audiences will be provided to employees of Purchaser.
	 
            

          

	 
	 	b. 	 	Over the course of the pre-Closing period,
          SpaceCom will provide training services for up to five (5) full-time
          equivalent (FTE) employees of Purchaser designated by Purchaser
          in accordance with the terms of this Agreement, provided that SpaceCom
          shall not be required to develop new training materials. For the avoidance
          of doubt, copying and provision of documents, documentation and training
          materials under this Agreement will not be considered “training”
          under this Agreement and Purchaser will not be charged for such copying
          and provision.
	 
            

          

	 
	 	c. 	 	Additional targeted training assistance
          upon request to facilitate satisfactory attainment of Purchaser’s
          training goals in each of the functional business areas identified below.
	 
            

          

	2.
            Satellite Operations 
	 	a. 	 	Reasonable access for up to five (5) FTE
          employees of Purchaser from its Satellite Engineering, Satellite Control
          Center (SCC), IT or Ground Information departments for no less than
          fifteen (15) hours per week to (a) key SpaceCom staff with
          in-depth knowledge of satellite operations and engineering practices
          (as defined in the Statement of Work (SOW) at Schedule C herein),
          including those listed below, and (b) existing satellite documentation
          and processes and databases utilized by each of the following Satellite
          Operations Systems for the indicated purposes:

  	•	 	Satellite Management: to operate satellites, earth stations, satellite
        loading and connectivity configuration, established standard operations
        procedures, anomaly reports, as well as miscellaneous customer information,
        e.g. satellite health & status reports, communications payload information,
        and manufacturers documentation. (Commencing on the date that pre-Closing
        Services commence in accordance with Section 2(b).)
	

A-1

 

  	

	•	 	Ground System Management: to manage satellites, ground command and control
        systems, scheduling systems and earth stations. (Commencing on the date
        that pre-Closing Services commence in accordance with Section 2(b).)

    	

	
          
	 	b. 	 	Copies of all satellite and
          TT&C databases an electronic format to the extent available, otherwise
          in a printed format to be agreed upon by the parties to provide support
          for transition and/or conversion efforts. (Commencing on the date that
          pre-Closing Services commence in accordance with Section 2(b).)
          Purchaser shall perform any such conversion and SpaceCom staff with
          in-depth business knowledge will be available to Purchaser for consultation
          and advice.
	 
            

          

	 
	 	c.	 	Reasonable access to key SpaceCom staff
          with in-depth technical knowledge of key satellite operations and engineering
          practices (as defined in the SOW) in the following areas: satellite
          maintenance, payload reconfiguration, satellite relocation; satellite
          decommissioning.
 

          Satellite engineering, operations and TTC&M and information including
          the following:
	 
	 	  	 	current operational policy and procedures
          and preparation of operations transition test plans; standard operations
          procedures, anomaly reports, as well as miscellaneous customer information,
          e.g. contingency plans.
	 
            

          

	3.
            Facilities 
	 	a. 	 	SpaceCom will provide assigned workstation
          areas at its Hawley and Three Peaks facilities for up to five (5) FTE
          employees of Purchaser.
	

A-2

 

Schedule B

Post-Closing Services

     Pricing (applicable to services in Schedules B and C)

	 	 	 
	Per Month charges:

	 	*****
	 
	 	 
	Sub-allocations:

	 	***** (assuming 6 satellites, including T8 and T13)

    	 	 	 	 	 	 	 
	

	Function	 	Service to be provided by SpaceCom to
          Purchaser	 	Service Level Agreements
	

	1.
            Shadowing

                and

                Monitoring 
	 	a. 	 	Continuation of pre-Closing Reasonable access
          for employees of Purchaser to key staff, software, hardware, and documentation
          in all functional business areas identified herein for purpose of shadowing
          (observing) all SpaceCom satellite operations related to the assets,
          customers, and contracts acquired by Purchaser. Shadowing will be facilitated
          to provide employees of Purchaser adequate opportunity to ask questions
          and to gain a fuller understanding of actual functional performance
          of all satellite operations. 	 	With regard to its performance during the
          Transition Period of satellite operations and satellite engineering
          functions and services related to the assets, contracts, and customers
          acquired by Purchaser, SpaceCom shall assign an adequate number of personnel
          to perform the functions and services who are properly trained and qualified,
          and SpaceCom shall use best efforts to retain such personnel for the
          duration of the Transition Period.
	 
            

          

	 
	 	b. 	 	With regard to all satellite operations
          functions, the assistance of key SpaceCom personnel to permit Satellite
          Operations employees of Purchaser in their respective functions at Purchaser’s
          facilities to shadow their analogous SpaceCom employees in the performance
          of their tasks through appropriate bridges and shared systems.	 	 
	 
            

          

	 
	 	c. 	 	Shadowing will be facilitated to permit
          Purchaser to monitor quality and timeliness of performance and level
          of service availability during Transition Period in all satellite operations
          functional areas identified herein with regard to assets, customers,
          and contracts acquired by Purchaser. Purchaser may monitor and perform
          quality assessments of services performed during the transition period
          through real-time telephone audit functions, site visits, and roll-over
          call capabilities, etc.	 	 
	 
            

          

	2.
            Training 
	 	a. 	 	Additional targeted training assistance
          upon request to facilitate satisfactory attainment of Purchaser’s
          training goals in each of the functional business areas identified below,
          provided that such additional targeted training assistance shall not
          require SpaceCom to develop new training materials.	 	 
	 
            

          

B-1

 

    	

	
          
	 	b. 	 	Furnish engineer training by
          experienced SpaceCom staff on: satellite design and operations for all
          subsystems, standard and contingency operating procedures, maneuver
          procedures, and ongoing anomaly investigations.	 	 
	 
            

          

	3.
            Satellite Operations 
	 	a. 	 	Continued satellite engineering and operations
          functions and systems, including, without limitation, all service categories
          set forth at SOW Section 2.2. Upon request of Purchaser, furnish
          full reasonable access to all satellite operations systems to systems
          manager and analyst employees of Purchaser. 	 	Maintain same level of service quality and
          availability as is provided to SpaceCom customers in support of SpaceCom
          satellite operations; no degradation of pre-Closing level of service
          quality and availability
 

          In case of adverse events that may or do impact service or revenue,
          SpaceCom must include a representative of Purchaser in its escalation
          procedure
	 
            

          

	 
	 	b. 	 	Continue operation, support, and maintenance
          of all systems running 24 hours a day, 7 days a week, in a manner
          consistent with current practices of SpaceCom on the date hereof.	 	 
	 
            

          

	 
          
	 	c. 	 	Continued preparation of satellite health
          & status reports. Furnish such reports to Purchaser on a quarterly
          basis and at such other times and in such form as Purchaser may reasonably
          request.	 	 
	 
            

          

	 
	 	d. 	 	Facilitate transfer of command encryption
          keys to the Purchaser Key Custodian and ensure that transfer occurs
          on timely basis.	 	 
	 
            

          

	 
	 	e. 	 	Provide continued access to standard operating
          procedures, emergency procedures and other relevant data.	 	 
	 
            

          

	 
	 	f.	 	Reasonable access for employees of Purchaser
          to the satellites, ground systems and key personnel for all operations
          transition testing including:	 	 
	

	 
	 	  	 	access to satellite telemetry, telemetry
          tests, commanding tests, ranging tests, ranging cross calibration, QoS
          system testing, payload (and/or TC&R) reconfiguration testing.	 	 
	 
            

          

	4.
            Facilities 
	 	a. 	 	SpaceCom will provide assigned workstation
          area at its Hawley/Three Peaks facilities for up to five (5) Purchaser
          employees, who have been approved by SpaceCom Security for access to
          the facilities.	 	 
	 
            

          

	 
	 	b. 	 	Reasonable access to SpaceCom facilities
          for purpose of dismantling, packing, relocating, and moving transferred
          equipment, files, and other property acquired by Purchaser.	 	 
	

B-2

 

Schedule C

Statement of Work

for

Space Segment Services and Operations Transition Services

1.0 INTRODUCTION

This Statement of Work (SOW) defines the work to be performed by SPACECOM to
provide the Space Segment Services and Operations Transition Services defined
herein to PURCHASER.

2.0 SCOPE OF WORK

SPACECOM will provide all personnel and facilities necessary to support
PURCHASER’S space segment operations.

In the provision of these services to PURCHASER, SPACECOM will operate all
systems in accordance with applicable International Telecommunications
Union (ITU) regulations.

2.1 SATELLITES

This scope of work is limited to supporting operations for the satellites
listed in Table 1.

Table 1: Satellites and Station Keeping Limits

    	 	 	 	 	 	 	 
	

	 	 	 	 	Station keeping limits
	 	 	Orbital location	 	(plus/minus degrees) 

	Satellite 
	 	(degrees east) 
	 	N/S 
	 	E/W 

	

	Telstar 4 	 	*89°W 	 	0.05 	 	0.05
	

	Telstar 5 	 	97°W 	 	0.05 	 	0.05
	

	Telstar 6 	 	93°W 	 	0.05 	 	0.05
	

	Telstar 7 	 	129°W 	 	0.05 	 	0.05
	

	Telstar 13 	 	**121°W 	 	0.05 	 	0.05
	

	Telstar 8 	 	**89°W 	 	0.05 	 	0.05
	

* relocating to 77°W upon deployment of Telstar 8
at 89°W.

** satellite is not currently
operational.

The above station keeping limits assume nominal specified performance of all
sub-systems relevant for station keeping and the availability of sufficient
propellant on board the satellite to maintain the station keeping limits.

2.2 SERVICE CATEGORIES

The following categories of services will be provided to PURCHASER.

C-1

 

2.2.1 In-orbit Space Segment Services

Basic Space Segment Services are:

	•	 	Satellite Maintenance (as described in Section 3.1.1)
	 
	•	 	Payload Reconfiguration (as described in Section 3.1.2)
	 
	•	 	Satellite Relocation (as described in Section 3.1.3)
	 
	•	 	Satellite Decommissioning (as described in Section 3.1.4)

Basic Space Segment Services are provided when the satellite is on-station, at
its assigned operational longitude and do not include prior operations or
activities, such as launch, transfer orbit operations, or in-orbit test.
Launch, transfer orbit operations, or in-orbit test are described in Section
3.2.

SPACECOM will operate PURCHASER’S satellites in accordance with SPACECOM’S
established operational practices.

2.2.2 Launch and In Orbit Test Services

Optional Space Segment Services, which may apply in the case of Telstar 8 and
Telstar 13, are:

	•	 	Satellite Launch Mission (as described in Section 3.2.1)

	•	 	In-Orbit Test (as described in Section 3.2.2)

SPACECOM will cause LORAL to provide the Services set forth in this subsection
to PURCHASER

2.2.3 Operations Transition Services

Operations Transitions Services are:

	•	 	Compatibility Testing (as described in Section 3.3.1)
	 
	•	 	Shadow Operation (as described in Section 3.3.2)
	 
	•	 	Training (as described in Section 3.3.3)

3.0 SERVICE DESCRIPTIONS

3.1 IN ORBIT SPACE SEGMENT SERVICES

The satellites shall be operated consistent with the manufacturer’s operating
procedures, as much as possible, or as have been modified by SPACECOM based on
SPACECOM’s operational experience and SPACECOM’s standard operating procedures,
provided that such modified procedures are in accordance with good industry
practice.

3.1.1 Satellite Maintenance Service

Processes that make up this service are as follows:

C-2

 

3.1.1.1 Maintain Satellite Position/Orientation

SPACECOM will perform orbit/attitude determination, as needed, in order to
plan maneuvers, and make predictions for eclipse times, earth station sun
interference, earth station pointing parameters, and/or sun and moon sensor
interference.

SPACECOM will perform satellite maneuvers, as reasonably needed, in order to
meet the momentum management and station keeping requirements. This includes
planning, executing, and evaluating maneuvers (as reasonably needed.).

3.1.1.2 Maintain Satellite Health

SPACECOM will manage the power subsystem, and will perform seasonally and as
needed: battery reconditioning, eclipse battery management, bus power
management, solar array pointing, and power performance evaluation.

SPACECOM will manage the thermal subsystem, and will perform seasonally and as
needed: seasonal thermal configuration, thermal performance evaluation, and
thermal reconfiguration due to payload reconfiguration and/or on-orbit aging.

SPACECOM will manage the attitude determination and control system, and will
perform as needed: sensor management, momentum management, attitude control
management, and performance trend analysis.

SPACECOM will manage the payload subsystem, and will perform as needed: RF
performance evaluation, and miscellaneous other evaluations.

SPACECOM will manage the propulsion subsystem, and will perform as needed:
propulsion performance evaluation and propellant accounting.

SPACECOM will manage the telemetry, commanding, and ranging (TCR)
subsystem, and will perform TCR performance evaluation as needed.

SPACECOM will make quarterly predictions of remaining orbital maneuver life.

SPACECOM will be prepared to recover from an anomaly that represents a threat
to the satellite’s health or safety, or affects the quality of service of
traffic as soon as possible after an anomaly is detected, by placing the
satellite in a safe state. SPACECOM will then investigate, resolve, and
document the anomaly. The investigation, resolution, and documentation
processes will be consistent with SPACECOM’S standard practices.

SPACECOM will monitor the satellite health and will perform the tasks of: limit
checking, and events and alarms monitoring.

C-3

 

3.1.2 Payload Reconfiguration Service

SPACECOM will provide payload reconfiguration services, upon the
written request of PURCHASER.

Processes that make up this service are as follows:

3.1.2.1 Payload Reconfiguration Coordination

SPACECOM will evaluate the effect of the proposed reconfiguration not related
to redundancy switchover on the repeater, thermal, and power subsystems and
will make a recommendation for implementing the reconfiguration.

3.1.2.2 Payload Reconfiguration Implementation

After PURCHASER’S written acceptance of the proposed reconfiguration not
related to redundancy switchover, SPACECOM will implement the reconfiguration.

3.1.3 Satellite Relocation Service

At PURCHASER’S request, SPACECOM will perform the relocation of Telstar 4 to
77°W following the launch and deployment of Telstar 8 at 89° W.

Processes that make up this service are:

3.1.3.1 Planning/Coordination

Based on the nominal deployment plan, SPACECOM will prepare a drift plan,
coordinate the relocation (including the commanding and telemetry/tracking
beacon frequencies) with other satellite operators, and perform a satellite
life and health evaluation, including an estimate of the propellant usage.
SPACECOM will plan relocations to allow a maximum opportunity for seamless
traffic transitions, while also assuring minimum safe physical separation.

3.1.3.2 Execute Relocation

SPACECOM will relocate the satellite using the Maintain Satellite
Position/Orientation process described in Section 3.1.1.1.

3.1.3.3 Frequency Coordination Management

SPACECOM will manage and coordinate command and beacon/telemetry frequencies as
the satellite passes SPACECOM’S, PURCHASER’S, or other operators’ satellites.

C-4

 

3.1.3.4 Payload Reconfiguration

SPACECOM will perform any necessary payload reconfiguration, as described in
Section 3.1.2. PURCHASER will concur with the desired beam coverage,
transponder connectivity, and transponder gain steps for the required payload
reconfiguration.

3.1.3.5 Satellite Transition

SPACECOM will perform the satellite transition following relocation, to
transition its customers from one satellite to another.

SPACECOM will prepare a transition plan in writing, develop a transition
sequence of events, implement the transition, and verify that the
transition was successfully implemented.

3.1.4 Satellite Decommissioning Service

SPACECOM will perform satellite decommissioning if requested by the PURCHASER.

SPACECOM will prepare the satellite and all necessary ground systems for the
orbit raising mission, and perform the orbit raising.

SPACECOM will deplete all propellant, reduce pressure in all pressure
containing vessels to the greatest extent possible and fire all
pyrotechnic devices.

3.2 LAUNCH AND IN ORBIT TEST SERVICES

SPACECOM will cause LORAL to provide to PURCHASER the Services set forth in
this Section 3.2.

3.2.1 Satellite Launch Mission Service

If Telstar 13 has not yet been launched as of the date of this Agreement,
SPACECOM will provide Launch Mission Services to PURCHASER for the deployment
of Telstar 13 at 121°W without additional charge.

SELLER will provide Launch Mission Services for Telstar 8 at 89°.

Up to four PURCHASER representatives would be present during these activities
as observers.

Processes that make up this service are the Mission Preparation and Mission
Execution Processes. Not all processes may be required, depending on the
mission requirements and details of the satellite procurement contract.

C-5

 

3.2.1.1 Launch Mission Preparation

SPACECOM will perform Mission Preparation by preparing the mission team, the
ground network, and the required hardware and software, including computer
software, databases and procedures, for the transfer orbit and in orbit
mission of the satellite.

SPACECOM will prepare a Sequence of Events (SOE) and a Contingency Plan,
and will use best efforts to coordinate the mission with other satellite
operators.

SPACECOM will monitor satellite shipment to the launch complex. Once at the
launch complex, SPACECOM will monitor satellite testing, satellite propellant
loading, satellite to launch vehicle mating, and satellite configuration and
health verification.

3.2.1.2 Launch Mission Execution

SPACECOM will execute the Launch Mission by following the planned SOE and
Contingency Plans, as required.

During the launch mission, SPACECOM will utilize the processes described in
Section 3.1.1 Satellite Maintenance Service.

3.2.2 In Orbit Test Service

SPACECOM will provide In
Orbit Test (IOT) Services to PURCHASER.

SPACECOM will provide, if practical, time for PURCHASER to conduct its own IOT
measurements.

The IOT Service verifies the satellite’s in-orbit performance and
operability prior to placing the satellite into operation.

SPACECOM will perform Bus Performance and Health Evaluation by planning and
performing a test sequence that verifies the satellite’s performance for each
of the subsystems. A Test Report will be generated to report the findings of
the testing.

SPACECOM will perform Payload Performance and Health Evaluation by planning and
performing a test sequence that verifies the satellite payload performance. A
Test Report will be generated to report the findings of the testing.

Throughout the IOT period, SPACECOM will monitor the satellite’s health.

SPACECOM will also coordinate the use of the orbital position for IOT with
other satellite operators, as needed.

C-6

 

3.3 OPERATIONS TRANSITION SERVICES

3.3.1 Compatibility Testing

3.3.1.1 Telemetry Compatibility

PURCHASER and SPACECOM will jointly examine telemetry to verify that the
PURCHASER hardware and software is functioning correctly.

3.3.1.2 Command Compatibility

PURCHASER will send commands under the supervision of SPACECOM to verify
that the PURCHASER hardware and software is functioning correctly.

3.3.1.3 Ranging Compatibility

PURCHASER will take range data through the TCR subsystem. SPACECOM will
supply orbit data for comparison.

3.3.2 Shadow Operation

Initially, during PURCHASER shadowing SPACECOM period (as described in Section
4.4.1), PURCHASER will monitor satellite operations from their control center
while SPACECOM operates the satellite. In the second phase, during SPACECOM
shadowing PURCHASER operations (as described in Section 4.4.2), PURCHASER will
assume operational control and SPACECOM will monitor as a backup.

SPACECOM personnel shall carry out all tasks for which SPACECOM is responsible.

3.3.3 Training

SPACECOM will support training requirements for PURCHASER Satellite Control
Engineers.

3.3.3.1 Satellite Engineers Staff Training

Comprehensive training support will be provided as described in the next
section to the Satellite Engineers, to familiarize them with both
procedural and hands-on aspects of operations.

4.0 DELIVERABLES

All deliverable reports are based upon SPACECOM’s existing procedures and
reports. Upon PURCHASER’S request, SPACECOM will provide special reports to
PURCHASER; provided that such requests are reasonable in scope and frequency.
The major deliverables are the services themselves. In addition, SPACECOM will
provide the following:

SPACECOM will deliver the following services contingent upon the satellite
systems and operational parameters readiness of the PURCHASER and based on the
availability of appropriate satellite systems and TTC&M system redundancy
throughout the duration of the applicability of this SOW.

C-7

 

4.1. IN ORBIT SPACE SEGMENT SERVICES

4.1.1 Performance Goals

SPACECOM will maintain the satellites within the station keeping limits
specified in Table 1, during the expected orbital maneuver life.

SPACECOM will strive to restore transponder outages within 30 minutes for at
least 95% of the cases.

SPACECOM will strive to perform payload reconfigurations within one week’s
advance notice from PURCHASER or, for requests designated as exceptional by
PURCHASER, within 6 working hours (on a normal SPACECOM business day), in each
case, upon receipt of PURCHASER’S request for 95% of the cases.

SPACECOM will evaluate and perform satellite relocations as mutually agreed
between SPACECOM and PURCHASER (schedule, drift rate, start and stop location
and method of relocation).

For satellite relocations and traffic transitions, SPACECOM will strive to
sustain proximity operations to a relative separation of between 10 and 25
kilometers, without occultation, for a minimum period of 30 minutes.

SPACECOM will perform satellite decommissioning according to PURCHASER provided
schedule, and will start decommissioning maneuvers within 14 days of
PURCHASER’S notice.

4.1.2 Reports

SPACECOM will provide the following reports to PURCHASER. All reports
will be in SPACECOM’S standard format (except as otherwise provided
below).

	•	 	Weekly report for predicted orbital parameters
	 
	•	 	Weekly maneuver schedule for the upcoming week
	 
	•	 	Seasonal post-eclipse power subsystem and battery reconditioning reports
	 
	•	 	Satellite health and status reports (quarterly and at such
other times and in such form as PURCHASER may reasonably request)
	 
	•	 	Anomaly summary for the satellite (once/year)
	 
	•	 	Report for orbital maneuver life prediction (quarterly)
	 
	•	 	Anomaly notification report/disposition (after every anomaly)
	 
	•	 	Transponder availability report (annually)

4.2 LAUNCH AND IN ORBIT TEST SERVICES

SPACECOM will cause LORAL to provide to PURCHASER the Services set forth in
this Section 4.2.

C-8

 

4.2.1 Satellite Launch Mission

4.2.1.1 Performance Goals

The main performance goal is the successful delivery of the satellite(s) at the
final orbital location. SPACECOM will place the satellite(s) at the PURCHASER
pre-specified Bus IOT, Payload IOT and final operational location(s) according
to PURCHASER’S specified drift rate(s) and schedule(s).

4.2.1.2 Pre-Launch Reports

Prior to the launch of the satellite, SPACECOM will provide to PURCHASER
the following documentation:

All mission parameters relevant to the provision of Launch Mission Support
which PURCHASER may request from time to time including:

	•	 	Schedule (including date and time) of planned satellite launches
	 
	•	 	Schedule of usage of TT&C Stations
	 
	•	 	Schedule of planned Launch Rehearsals
	 
	•	 	Final Mission Sequence of Events
	 
	•	 	Final Mission Contingency Plans
	 
	•	 	Key Events Time Line
	 
	•	 	Frequency Plan
	 
	•	 	Nominal Injection Orbital Elements
	 
	•	 	Predicted Apogee Motor Fire (AMF) orbit elements

4.2.2 In-Orbit Test

4.2.2.1 Reports

SPACECOM will prepare test plans 30 days prior to the start of testing and will
generate and provide test reports within 90 days of the completion of testing.

4.3 COMPATIBILITY TESTING

These activities will verify that the hardware and software being designed
for the PURCHASER control center are compatible with the satellite.

4.3.1 PHASE 1: Telemetry Processing

PURCHASER will compare the telemetry received at the SCC to the data received
here at SPACECOM. This will verify that the new hardware and software are
compatible with the satellite.

C-9

 

4.3.1.1 Compare Raw Telemetry

PURCHASER and SPACECOM shall both print raw telemetry frames in hex. PURCHASER
shall then make a spot check of hex values in several frames. This will assure
that the PURCHASER GNS is receiving the correct data from the telemetry
decommutator.

4.3.1.2 Compare Processed Data

SPACECOM shall read telemetry values in engineering units from the telemetry
display. PURCHASER will read the same parameters from its telemetry displays.
The value shall match to the accuracy displayed. To verify that all processing
routines have been checked for all telemetry types, the tests shall include the
following types:

	•	 	analog values such as battery voltage, bus voltage and current
	 
	•	 	integer and floating point values like the pitch angle
	 
	•	 	status bits such as RF switches
	 
	•	 	temperature sensors
	 
	•	 	command verification data
	 
	•	 	various sub-commutated parameters
	 
	•	 	Derived Parameters such as sun angle
	 
	•	 	Non Telemetry Parameters
	 
	•	 	Enumerated types

4.3.1.3 Compare Dwell Data

SPACECOM will send several queues command procedures to dwell on different
parameters. SPACECOM and PURCHASER shall compare raw and processed data.

4.3.2 PHASE 2: Commanding

PURCHASER will compare the command bits produced by its database to the same
bits produced by the SPACECOM database, and eventually send commands to the
satellite.

PURCHASER will use their ground stations for the RF compatibility tests.

4.3.2.1 Compare Hex Commands

SPACECOM will make up a command procedure containing several different types of
commands (simple on-off, CAMP settings, floating point data loads). SPACECOM
and PURCHASER will both print out the hex value that will go to the modulator,
including the overhead values such as synchronization and satellite address.
SPACECOM and PURCHASER shall compare the printed commands to verify that both
systems produce the same values.

4.3.2.2 RF Compatibility

C-10

 

SPACECOM shall remove its command and ranging carriers. PURCHASER will
activate a command carrier. PURCHASER will monitor the payload downlink
spectrum for interference. PURCHASER is responsible for the power,
polarization, and frequency of the carrier. SPACECOM and PURCHASER shall both
monitor the command receiver AGC and bit lock indicators, if applicable, in
telemetry.

4.3.2.3 Simple Command

PURCHASER will send a no operation (or other unused command). SPACECOM and
PURCHASER shall both monitor the command verification telemetry. PURCHASER will
send a clear command. PURCHASER will then repeat the no operation and follow it
with an execute (or another no operation for SPACECOM 4).

PURCHASER will repeat the load-execute sequence for all combinations of
receivers and decoders.

4.3.2.4 Real Command

PURCHASER will send commands to turn ranging on and off, and set the
ranging configuration relays. These commands are chosen to have no impact
on traffic while providing functional verification. Both parties monitor
the telemetry.

4.3.2.5 Dwell Commands

PURCHASER will send commands to set up dwell with the same command procedure
used in the telemetry test. SPACECOM and PURCHASER shall both monitor the dwell
data.

4.3.2.6 Memory Dump

PURCHASER will send a command procedure, supplied by SPACECOM that will
dump a small section of the processor memory. SPACECOM and PURCHASER shall
compare the hex and processed values received in telemetry.

4.3.3 PHASE 3: Ranging

PURCHASER uses a burst tone ranging. PURCHASER ranging shall take place
immediately after SPACECOM completes 36 hours of ranging after a maneuver. The
timing assures that the data collected by PURCHASER produces the same orbit as
the SPACECOM range data.

4.3.3.1 Data Collection

SPACECOM will take down its ranging carrier. PURCHASER will put up the ranging
carrier and collect data. PURCHASER is responsible for avoiding interference
with the payload. PURCHASER will collect data for 36 hours and compare the
results to SPACECOM’s latest orbit. During that time PURCHASER will have
unlimited access on the ranging frequency while SPACECOM will continue to
command on the other frequency. During this time SPACECOM will not range.

4.3.3.2 Orbit Comparison

C-11

 

SPACECOM will supply the results of the post maneuver orbit determination. The
PURCHASER orbit staff may call the SPACECOM orbit staff directly to discuss any
unexpected results.

4.4 SHADOW OPERATION

This procedure allows PURCHASER to take over operation of the satellite
while SPACECOM remains available as a backup.

Shadow operation is a 30 day period with SPACECOM acting as primary control for
15 days followed by PURCHASER acting as primary control for 15 days. Such
shadow operation may be in effect for one or more satellites at any given time.

There may be informal contact between PURCHASER and SPACECOM subsystem
specialists to clarify the meaning of telemetry, commands, and procedures.

4.4.1 PURCHASER Shadows SPACECOM

In this phase PURCHASER will come up to speed on satellite operations while
SPACECOM retains operational control.

4.4.1.1 Notice To Take Control

PURCHASER will give SPACECOM 30 days notice of their intention to take over
control of the satellite(s), which transfer of control shall take place over a
30 day transition period, beginning at noon (Washington, DC time) on the first
day of such period.

4.4.1.2 PHASE 1 Duration

PURCHASER will shadow all SPACECOM operations for 15 days. Operations
monitoring will take place 24 hours a day with events and alarms in place.

In this phase, PURCHASER will not send any commands to the satellite.

4.4.1.3 Coordination

SPACECOM shall supply maneuver plans, reconditioning plans, and any other
regularly scheduled commands, to PURCHASER 24 hours before they are executed.

SPACECOM shall notify PURCHASER of any unscheduled commands within 1 hour of
being sent. This includes autonomously generated commands such as those from
the TWTA monitors and commands directed by engineering. SPACECOM shall also
notify PURCHASER in the event of failures or other autonomous on board actions.

C-12

 

4.4.2 SPACECOM Shadows PURCHASER

4.4.2.1 Transfer of Control

At the beginning of day 16, at noon (Washington, DC time), SPACECOM shall give
primary control to PURCHASER.

SPACECOM shall continue to monitor the satellite and remain available to
command. Unless otherwise requested by PURCHASER, SPACECOM shall not raise
command or ranging carriers.

4.4.2.2 PHASE 2 Duration

SPACECOM shall operate as a backup to PURCHASER for 15 days starting at the
transfer of control.

PURCHASER will notify SPACECOM 24 hours in advance of any scheduled commanding
and within 24 hours of unscheduled commanding. PURCHASER will notify SPACECOM
directly by telephone or fax.

SPACECOM will continue to run all monitoring software but shall take no action
unless so directed by PURCHASER.

4.4.2.3 Handover

At the end of day 30, SPACECOM will cease monitoring the satellite. All
antennas, receivers, computers and other equipment dedicated to that satellite
will be designated free.

4.5 TRAINING

4.5.1 Engineers Training

Subsystem design and operations training shall include the following areas:

	•	 	ADCS
	 
	•	 	Power
	 
	•	 	Thermal
	 
	•	 	Propulsion
	 
	•	 	Payload
	 
	•	 	Data Handling Systems
	 
	•	 	Mechanisms
	 
	•	 	Flight Dynamics
	 
	•	 	Attitude Recovery Procedures
	 
	•	 	Maneuver Execution Procedures
	 
	•	 	Sensor Management Procedures Concepts

In addition, SpaceCom shall furnish training on standard and contingency
operating procedures, maneuver procedures and ongoing anomaly investigations.

C-13

 

5.0 FACILITIES

SPACECOM intends to use the following facilities and systems, or a reasonable
replacement, to provide services to PURCHASER:

	•	 	Satellite Control Facility (SCF) at Hawley, PA, and/or Three Peaks, CA
	 
	•	 	TTCM network which currently consists of 2 stations;

All facilities shall be
manned on a 24 hours per day, 7 days per week basis.

SPACECOM will perform normal maintenance of its facilities and systems,
including software.

SPACECOM reserves the right to modify or change the composition of its
facilities and systems, so long as it provides the contracted services to
PURCHASER.

SPACECOM will evaluate, on a case-by-case basis, the provision of
additional facilities for PURCHASER. In each case, a separate charge will
be negotiated between SPACECOM and PURCHASER.

6.0 INTERFACES

6.1 COMMUNICATIONS CIRCUITS

PURCHASER will be responsible for establishing communications circuits between
PURCHASER and SPACECOM’S operational headquarters, if necessary.

C-14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]