Document:

Exhibit 10.8

 

August 7, 2013

 

Mr. James Monroe III

Chief Executive Officer

Globalstar, Inc.

300 Holiday Square Blvd.

Covington, Louisiana 70433

 

	Ref:	Contract Number GINC-C-08-0390 (“Contract”) between Globalstar, Inc. (“Globalstar”) and Hughes Network Systems, LLC (“Hughes”), as amended; 
	 	Letter Agreement, dated March 21, 2011, as amended (the “March 2011 Letter Agreement”)

 

Dear Jay:

 

Reference is made to the above-referenced Contract and March
2011 Letter Agreement.

 

In consideration of the mutual promises and covenants contained
in this letter (“Letter Agreement”), Globalstar and Hughes (each a “Party” and collectively, the “Parties”)
agree as follows:

 

1.            As
of the date of this Letter Agreement, the Parties agree that the amount currently due and owing from Globalstar to Hughes (excluding
accrued interest, which is addressed in Section 3) is $15,831,729 (the “Specified Amount”), which includes the remaining
$6,554,486 of the April 2011 milestone payment and the full amount of the July 2011 milestone payment.

 

2.            Globalstar
shall pay Hughes the Specified Amount in three installments as follows:

 

		i)	$5,831,729
on or before August 15, 2013 (“Installment #1”);

		ii)	$5,000,000 on or before October 15, 2013 (“Installment
#2”); and

		iii)	$5,000,000 on or before December 15, 2013 (“Installment
#3”).

 

When paid by Globalstar, Installment
#1 and a portion of Installment #2 shall be credited first against the April 2011 milestone payment and the remainder of Installment
#2 and all of Installment #3 shall be credited against the July 2011 milestone payment. Upon receipt of each such payment, the
Specified Amount shall be reduced by the amount paid.

 

3.            Interest
on the unpaid balance of the Specified Amount has been accruing at the rate of 10% per annum, calculated from February 2, 2011
and will continue to accrue at the rate of 10% per annum until the date on which the Specified Amount and accrued interest has
been paid in full. The amount of interest accrued on the Specified Amount as of July 31, 2013 is $4,851,695. All interest, including
interest that has accrued to date, shall be paid on or before January 15, 2014. 

 

    	 

    	 

    

 

4.          Upon
timely payment to Hughes of all installment payments under Section 2 and the interest payment under Section 3, the Parties shall
promptly agree on revised program and payment milestones for commencing and completing the remaining work under the Contract, taking
into account the delays in the program to date, and shall modify the Contract accordingly. In addition, prior to January 15, 2014,
if Globalstar has paid Installment #1 and Installment #2 in full when due and is in compliance with all other terms and conditions
of this Letter Agreement and the Contract, then upon payment to Hughes of $4,277,243, representing an advance payment of the amount
payable in respect of Payment Milestone #13a (as defined in Exhibit C, Rev. H, to the Contract), Hughes
shall proceed with Program Milestone #4a (as defined in Exhibit A, Rev. F, to the Contract).

 

5.          In
the event that Globalstar fails to make payment to Hughes of any installment under Section 2, or make the payment of interest under
Section 3, on or before the date any such payment is due (in each case, a “Default”), and without prejudice to any
other rights and remedies available to Hughes (all of which are hereby expressly reserved), interest at the rate of 15%
per annum shall accrue on all amounts then outstanding (including any unpaid portion of the Specified
Amount, and any accrued interest whether before or after the date hereof), from the date of the Default until such amounts,
together with interest thereon, shall have been paid to Hughes in full. If Globalstar shall not have
paid Hughes any sum called for under Section 2 or Section 3 above when due, Globalstar may terminate the Contract for convenience
by making a final payment of $20 Million less any payments made under Section 2 reducing the Specified Amount (“Final Payment”)
to Hughes within thirty (30) days of the occurrence of such Default. Such Final Payment shall extinguish all rights and obligations
of the Parties under the Contract.

 

6.         On any date
specified in Section 2, Section 3, or Section 4 on which Globalstar is required or has the option to make a payment, Hughes shall
have the option, but not the obligation, to elect to receive equity consideration in the form of Globalstar voting common stock
(OTCBQ: GSAT, the “GSAT Stock”) in lieu of cash. Hughes may exercise this option by providing written notice of such
election (an “Equity Notice”) to Globalstar no later than fifteen (15) days in advance of one or more of the payment
dates specified in Section 2, Section 3 or Section 4. Hughes may take all or any portion of Section 2, Section 3 or Section 4 payments
in GSAT Stock. Any written notice should specify the amount for which Hughes is electing to receive stock in lieu of cash. For
purposes of the payment to Hughes following any such election, the GSAT Stock shall be priced at the greater of (a) $0.32 per share,
and (b) a price per share equal to a 7% discount to the 20-day trailing volume weighted average price for the period ending one
business day prior to the date Globalstar receives the applicable Equity Notice (such discounted price, the “Base Price”).
The GSAT Stock shall be delivered to Hughes on the applicable payment date specified in Section 2, Section 3 or Section 4. The
GSAT Stock delivered to Hughes shall be freely tradable, free and clear of any liens, encumbrances or other restrictions. Within
ten (10) days of receipt of the first Equity Notice from Hughes, Globalstar shall file a registration statement (the “Registration
Statement”) covering, at a minimum, all of the shares of GSAT Stock potentially issuable under this Letter Agreement (based
on a reasonable estimate by Globalstar, with some cushion) to support such free tradability, and use reasonable best efforts to
have such Registration Statement declared effective as promptly as practicable. Once such Registration Statement is effective,
Globalstar shall maintain the effectiveness of such Registration Statement until all amounts (including accrued interest) under
this Letter Agreement have been repaid and all GSAT Stock acquired under this Letter Agreement have been sold by Hughes.

 

    	 

    	 

    

 

7.          In
the event Globalstar fails to have the Registration Statement declared effective within 75 days after Globalstar receives the first
Equity Notice from Hughes, or fails to maintain the effectiveness of such Registration Statement, then for each 30-day period in
which Globalstar fails to have or maintain the Registration Statement effective in violation of this Letter Agreement (“Violation
Periods”), Globalstar shall issue to Hughes GSAT Stock in an amount valued at 1.25% of the value of the outstanding Specified
Amount and all accrued interest (using the 5-day trailing volume weighted average price as of the end of such Violation Period).
In addition, upon the occurrence of two consecutive Violation Periods, Hughes shall have the right to require Globalstar to repurchase
the GSAT Stock acquired under this Letter Agreement and still held by Hughes at the higher of (i) the 5-day trailing volume weighted
average price for the period ending one business day before the date of this Letter Agreement, and (ii) the highest closing market
price occurring during the period between the date of this Letter Agreement and the date on which Globalstar effects the repurchase
of such GSAT Stock.

 

8.          In
the event Hughes exercises the option under Section 6, Globalstar will provide Hughes downside protection through January
1, 2014 covering GSAT Stock that Hughes has elected to receive, and has not sold, as of January 1, 2014
(collectively, the “Subject Shares”). If, on January 1, 2014, the 5-day trailing
volume weighted average price for GSAT Stock for the period ending one business day prior to
January 1, 2014 is less than the weighted average Base Price of the Subject Shares still held by Hughes (such weighted average
determined based on the number of shares issued to Hughes at the each applicable Base Price), then Globalstar will make up such
deficit in equity value (the “Shortfall”) by issuing to Hughes additional shares of GSAT Stock (which additional shares
shall be freely tradable, free and clear of any liens, encumbrances or other restrictions) with
a value equal to the Shortfall (“Shortfall Issuance”). For purposes of this paragraph, such
additional shares of GSAT Stock shall be priced at the 5-day trailing volume weighted average price for the period ending one business
day prior to January 1, 2014. Additionally, in the event that the Registration Statement is not
effective prior to January 1, 2014, Globalstar will make a second Shortfall Issuance on the date that is 5 business days after
the date of effectiveness of the Registration Statement if the 5-day trailing volume weighted average price for GSAT Stock
for the period ending one business day prior to the date of the effectiveness of the Registration
Statement is less than the weighted average Base Price of the Subject Shares still held by Hughes
(such weighted average determined based on the number of shares issued to Hughes at the each applicable Base Price).

 

    	 

    	 

    

 

9.          Prior
to payment of the entire Specified Amount (including accrued interest) being made to Hughes, Globalstar shall not pay (or permit
any subsidiary to pay) any capital expenditures in cash, directly or indirectly, or pay (or permit any subsidiary to pay), directly
or indirectly, cash for any amount in respect of expenses related to any capital projects, other than expenses contractually required
pursuant to the following binding agreements with Globalstar, each as in effect on October 14, 2011: (i) the project for the manufacture
and launch, together with related insurance, of the satellites (the “Satellites”) manufactured by or ordered from Thales
on or before October 14, 2011, pursuant to the Amended and Restated Contract between Globalstar, Inc. and Thales Alenia Space France
dated June 3, 2009 and (ii) projects for the development and supply ground network infrastructure to be used with the Satellites
under orders placed prior to October 14, 2011 or under orders valued at no more than $1.5 million, in each case, without the consent
of Hughes, such consent not to be unreasonably withheld. Globalstar hereby confirms that since October 14, 2011, neither Globalstar
nor any subsidiary of Globalstar has made any such payment other than as described in clauses (i) and (ii) of the immediately preceding
sentence. Globalstar notes that it discloses its capital expenditures commitments as of each balance sheet date in its quarterly
and annual financial reports, and Globalstar hereby represents that such capital expenditure commitment information contained in
its 10-Q filed on May 9, 2013, was accurate when filed and there exist no material changes as of the date of this Letter Agreement.
In the event of any breach of this Section, Hughes shall have the rights and remedies relating thereto specified in Section 5.

 

10.        This
Letter Agreement replaces and supersedes the March 2011 Letter Agreement in its entirety. Except as amended herein, all terms and
conditions of the Contract shall remain in full force and effect. In the event of a discrepancy between the terms and conditions
contained in this Letter Agreement, as amended, and those contained in the Contract, the terms and conditions contained in this
Letter Agreement shall prevail.

 

We would appreciate the acknowledgement of Globalstar’s
agreement to this letter by having a duly authorized representative of Globalstar sign in the signature block below.

 

	 	Sincerely, 
	 	 
	 	/s/ Sean P. Fleming
	 	 
	 	Sean P. Fleming
	 	Senior Counsel

 

	AGREED AND ACCEPTED BY:	 
	 	 
	GLOBALSTAR, INC.	 
	 	 
	/s/ James Monroe III	 
	Signature	 
	 	 
	James Monroe III	 
	Name	 
	 	 
	Chief Executive Officer	 
	Title	 
	 	 
	August 7, 2013	 
	DateExhibit 10.9

 

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

 

AMENDMENT NO. 10

 

TO

 

CONTRACT NUMBER GINC-C-08-0390

 

BETWEEN

 

GLOBALSTAR CANADA SATELLITE CO.

 

AND

 

HUGHES NETWORK SYSTEMS, LLC

 

FOR

 

RADIO ACCESS NETWORK (RAN)

AND USER TERMINAL SUBSYSTEM 

 

    	 

    	 

    

 

This Amendment No. 10 (“Amendment”) is entered into
effective as of August 7, 2013 (“Effective Date”), by and between Hughes Network Systems, LLC, a limited liability
company organized under the laws of Delaware (hereinafter referred to as the “Contractor”) with its principal place
of business at 11717 Exploration Lane Germantown, Maryland 20876 USA, and Globalstar Canada Satellite Co., a company incorporated
under the laws of Canada with its principal place of business at 115 Matheson Boulevard West, Suite 100, Mississauga, Ontario,
L5R 3L1, Canada (hereinafter referred to as “Globalstar Canada”), and Globalstar, Inc., a company incorporated under
the laws of Delaware with its principal place of business at 300 Holiday Square Blvd., Covington, Louisiana 70433 (hereinafter
referred to as “Globalstar, Inc.” or “Customer”). As used herein, Contractor, Globalstar, Inc. and Globalstar
Canada may be referred to individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, Contractor and Globalstar, Inc. entered into Contract
No. GINC-C-08-0390 for the delivery of the Radio Access Network (“RAN”) and the User Terminal Subsystem (“UTS”)
(“Contract”) effective May 1, 2008;

 

WHEREAS, Contractor and Globalstar, Inc. entered into a Letter
Agreement, dated September 22, 2008, for the deferral of payment of certain Payment Milestones (“Deferred Payments”)
under the Contract, subject to interest;

 

WHEREAS, Contractor and Globalstar, Inc. entered into Amendment
No. 1, dated June 16, 2009, for the payment of the Deferred Payments with interest, the PDR Payment Milestone and advance payments;

 

WHEREAS, Contractor and Globalstar, Inc. entered into Amendment
No. 2, dated August 28, 2009, to extend the schedule of the RAN and UTS program and to revise certain payment milestones and program
milestones to reflect the revised program timeline;

 

WHEREAS, Contractor and Globalstar, Inc. entered into Amendment
No. 3, dated September 21, 2009, to incorporate the revised the program management schedule;

 

WHEREAS, Contractor and Globalstar, Inc. entered into Amendment
No. 4, dated March 24, 2010, to implement certain Contract Change Notices;

 

WHEREAS, Contractor and Globalstar, Inc. entered into a Letter
Agreement, dated March 21, 2011, for the deferral of payment of certain amounts due under the Contract, subject to interest, as
further amended on October 14, 2011, December 30, 2011, March 30, 2012, June 26, 2012, December 20, 2012, March 26, 2013, June
28, 2013, July 8, 2013, July 11, 2013, July 16, 2013, July 19, 2013, July 25, 2013, July 29, 2013, July 31, 2013 and August 2,
2013 (“Current Deferral Letter”);

 

WHEREAS, Contractor, Globalstar Canada and Globalstar, Inc.
entered into Amendment No. 5, dated April 5, 2011, to substitute Globalstar Canada for Globalstar, Inc. under the Contract and
with certain exceptions, for all of Globalstar, Inc.’s rights and obligations under the Contract to be assigned to and assumed
by Globalstar Canada;

 

WHEREAS, Contractor and Globalstar Canada entered into Amendment
No. 6, dated November 4, 2011, to extend the schedule of the RAN and UTS program and revise the remaining payment milestones and
program milestones to reflect the revised program timeline;

 

WHEREAS, Contractor and Globalstar Canada entered into Amendment
No. 7, dated February 1, 2012, to extend the schedule of the RAN and UTS program and revise the remaining payment milestones and
program milestones to reflect the revised program timeline;

 

    	 

    	 

    

 

WHEREAS, Contractor and Globalstar Canada entered into Amendment
No. 8, dated September 6, 2012, to extend the schedule of the RAN and UTS program and revise the remaining payment milestones and
program milestones to reflect the revised program timeline;

 

WHEREAS, Contractor and Globalstar Canada entered into Amendment
No. 9, dated January 18, 2013, to further extend the schedule of the RAN and UTS program and revise the remaining payment milestones
and program milestones to reflect the revised program timeline;

 

WHEREAS, on July 9, 2013, Globalstar Canada exercised its right
pursuant to Amendment No. 5, dated April 5, 2011, to unilaterally terminate Amendment No. 5 and reassign the Contract to Globalstar,
Inc. (the “July 9 Assignment”) on the basis that Globalstar Canada was “unable to obtain financing for the payments
due under the Contract from [*] and notified Contractor that “As there is no consent required per Amendment No.5, please
consider the Contract reassigned as of the date of this notice”; and

 

WHEREAS, following up on the July 9 Assignment, the Parties
wish to confirm in a formal amendment to the Contract the effective assignment of the Contract from Globalstar Canada to Globalstar,
Inc. as of July 9, 2013, confirm that the assignment effected the substitution of Globalstar, Inc. for Globalstar Canada under
the Contract, as amended to date, and confirm that all of Globalstar Canada’s rights and obligations under the Contract as
so amended have been assigned to and assumed by Globalstar, Inc.

 

NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, and intending to be legally bound hereby, the Parties agree to amend the Contract as follows:

 

1.         From and after July 9, 2013, Globalstar, Inc. shall be
the Customer under the Contract, as amended to date, and all rights and obligations of Globalstar Canada under prior versions of
the Contract or amendments thereto, including without limitation rights and obligations with respect to actions previously taken
under the Contract or periods expiring prior to the date of this Amendment, shall hereafter be rights and obligations of Globalstar,
Inc. Globalstar Canada hereby assigns and Globalstar, Inc. hereby assumes all rights and obligations of Globalstar Canada existing
under the Contract at the time of such assignment.

 

2.         This Amendment shall be governed by and interpreted according
to the laws of the State of New York.

 

3.         This Amendment may be signed in counterparts and each
original counterpart shall be deemed binding on each Party collectively and individually.

 

4.         Except as amended herein, all terms and conditions of
the Contract shall remain in full force and effect.

 

(signature page follows on next page)

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Parties hereto have signed this
Amendment.

 

	GLOBALSTAR, INC.	HUGHES NETWORK SYSTEMS, LLC
	 	 
	BY:	/s/ James Monroe III	 	BY:	/s/ Sean P. Fleming
	 	 
	Name: James Monroe III	Name:  Sean P. Fleming
	 	 
	Title:  Chief Executive Officer	Title:  Senior Counsel
	 	 
	Date:  August 7, 2013	Date:  August 7, 2013
	 	 
	GLOBALSTAR CANADA SATELLITE CO.	 
	 	 
	BY: 	/s/ L. Barbee Ponder IV	 	 
	 	 
	Name:  L. Barbee Ponder IV	 
	 	 
	Title:  Assistant Secretary	 
	 	 
	Date:  August 7, 2013

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