Document:

Supply Agreement

 Exhibit 10.8 
  
 SUPPLY AGREEMENT 
  
 THIS SUPPLY AGREEMENT made at Bangalore this the 1st day of December 2000 by and between: 
  
 BPL LIMITED, a
Company incorporated under the Companies Act, 1956 having its Registered Office at, BPL Works, Palakkad-678007, Kerala and marketing office at 13, Kasturba Road, Bangalore 560001 (hereinafter referred to as ‘BPL’ which expression
shall unless repugnant to the context or meaning thereof include its successors and assigns) 
  
 AND 
  
 WORLDSPACE INTERNATIONAL NETWORK
INC., a Company registered under the laws of British Virgin Islands and having its Principal Office at Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands (hereinafter referred to as ‘WorldSpace’ which
expression shall unless repugnant to the context or meaning thereof include its successors). 
  
 WHEREAS, BPL desires to manufacture and market WorldSpace Receivers and the Product as defined hereunder is one of the components required for the manufacture of WorldSpace Receivers. 
  
 AND WHEREAS, WorldSpace has agreed to supply the Product to BPL on certain terms and
conditions as set forth hereunder. 
  
 NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

  

	1.	DEFINITIONS 

  
 For the purpose of this Agreement the following terms shall have the following respective meanings 
  

	1.1	“Agreement” means the subject Agreement or any amendment which has been agreed to in writing by the Parties hereto. 

  

	1.2	“Effective Date” shall mean the date on which this Agreement is executed by the duly authorised representatives of each party. 

  

	1.3	“Product” shall mean the STARMAN Chipsets manufactured under license from WorldSpace with characteristics set forth in Annexure to this Agreement. A list of
manufacturers qualified and licensed to manufacture STARMAN Chipsets as of the Effective Date is set forth in the said Annexure as periodically updated. 

  

	1.4	“Purchase Order” shall mean written order for supply of the Product duly signed on behalf of BPL and placed on WorldSpace during the period of this Agreement.

	2.	SCOPE OF THE AGREEMENT 

  
 WorldSpace and BPL agree that the WorldSpace Receivers require for their manufacture specially designed Product manufactured by WorldSpace licensees and,
therefore, WorldSpace shall supply the Product to BPL and BPL shall purchase the Product only from WorldSpace under the terms and conditions of this Agreement. 
  

	3.	SUPPLY OF THE PRODUCT 

  

	3.1.1	BPL will place Purchase Orders from time to time in respect of its requirements of the Product. The terms and conditions of this Agreement shall be incorporated in any Purchase
Order, regardless of whether any specific reference is made to this Agreement in such purchase order. In the event of a conflict between the terms and conditions of this Agreement and those of the Purchase order, the provisions of the Agreement
shall prevail. Unless otherwise agreed in writing, no additional pre-printed terms or conditions contained in Purchase order/orders confirmation or invoice shall apply. 

  

	3.1.2	The Purchase Order shall be deemed to have become binding upon the Parties hereto upon WorldSpace’s acceptance of the same, which shall be not later than ten (10) days of
WorldSpace’s receipt of the Purchase Order from BPL. 

  

	3.1.3	The lead-time for delivery of the Product is sixteen (16) weeks from the date of WorldSpace’s acceptance of the Purchase Order. The delivery for this purpose is deemed to be
complete on the date of delivery by WorldSpace at the site specified by BPL. The time for delivery can be extended by such further period as mutually agreed upon on case to case basis. 

  

	3.2	PACKING AND DELIVERY 

  

	3.2.1	The Product shall be delivered by WorldSpace at the site specified by BPL. BPL shall bear the freight and insurance charges for delivery at site. WorldSpace shall ensure that all
Product are adequately packed and secured in such a manner as to withstand damage or loss due to rough handling or pilferage during transportation under conditions which may involve multiple handling and transport whether by air, ship, rail and/or
road. In addition, all contractual Product shall be protected from dust, moisture, salt, climatic or other environmental factors. 

  

	3.2.2	BPL shall be responsible for obtaining any and all licenses, permits or similar authorizations necessary for the importation of the Product into India. 

  

	3.3	TITLE TO THE PRODUCT 

  
 Title to the Product under each Purchase Order shall pass to BPL on delivery of the Product at the site specified by BPL. 
  

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	3.4	BILLING AND PAYMENT 

  
 The supply price shall be paid by BPL to WorldSpace by means of an irrevocable letter of credit accompanying each Purchase Order. Payment shall be made on
delivery of the Product at site. 
  

	3.5	INSPECTION 

  

	3.5.1	BPL shall carry out inspection of the Product within fourteen (14) days after delivery pursuant to the agreed delivery term. BPL shall report any discrepancy in the contents and
quantity of each consignment to WorldSpace within the said fourteen (14) days period. The discrepancy shall be rectified by WorldSpace within thirty (30) days of the receipt of the report subject to availability of the Product. The scope of
inspection shall be as follows: 

  

	 	a)	Quantity as listed in packing list. 

  

	 	b)	Product type and model. 

  

	 	c)	Packaging is in original condition. 

  

	3.5.2	WorldSpace undertakes to replace Product damaged in course of transit to the site specified by BPL without any cost or expenditure to BPL. 

  

	4.	WARRANTY 

  
 WorldSpace warrants that the Product to be supplied to BPL under this Agreement shall be free from defects in material and workmanship and shall conform
to the characteristics provided in the Annexure to this agreement. In the event of any defect in the Product, BPL shall give written notice of the defects and satisfactory proof thereof within fourteen (14) days of the receipt of the Product.
However if more than five percent (5%) of the Product received in a particular consignment are found to be defective, then WorldSpace shall take back the entire consignment and replace the same at its own cost on written intimation from BPL within
thirty (30) days of the receipt of the Product at the delivery site by BPL, subject to availability of the Product. 
  

	5.	PATENT INDEMNITY 

  
 As of the effective date, WorldSpace represents and warrants that it is unaware of any third party patent or other intellectual property right that would
be infringed by use of the Product. If BPL is charged with infringement of a third party’s patent, trademark, copyright or other intellectual property rights as a result of the use of the Product, in the WORLDSPACE Receiver within the
WORLDSPACE Service Area, and if such alleged infringement arises from an aspect or function of the Product that was required pursuant to the Technical Specifications, WORLDSPACE will, at no expense to BPL, do one or more of the following: (i) defend
BPL against such charge or claim; (ii) procure for BPL the right to continue the use of the Product; or (iii) modify the design of the Product so that it no longer infringes, provided that such modification can be done without substantially
impairing its functionality or performance. BPL will promptly notify WORLDSPACE in writing of any claim of infringement and will provide 
  

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 WORLDSPACE with the authority, information and assistance necessary to defend or settle such claim;
provided, however, that BPL will have the right to participate in such defense and to approve any proposed settlement in advance. BPL will have the right to take over from WORLDSPACE the defense of a claim at any time, provided that BPL releases
WORLDSPACE in writing from any further obligation of defense or indemnification in connection with such claim. WORLDSPACE shall bear all costs and all consequences of defending such a claim and of any final judgement imposed; provided, however, that
WORLDSPACE’s financial obligation under this Article shall be limited to the total amount paid by BPL to WORLDSPACE for purchase of the Product. 
  

	6.	CONFIDENTIALITY AND PUBLICITY 

  
 Both Parties shall keep confidential and shall not without the prior consent in writing of the other Party disclose to any third party the contents of any
documents or information (whether of a commercial, financial, technical nature) acquired or received from the other Party in connection with the negotiations of this Agreement, during the term of this Agreement or in connection with the Product.

  
 The aforesaid obligation shall not apply to any
information/document which 
  

	 	i)	are necessarily disclosed by their use in the Product. 

  

	 	ii)	has previously been made public by either of the Parties. 

  

	 	iii)	Is established to be in the public domain otherwise than as a consequence of a breach of the obligation herein undertaken. 

  
 Neither Party shall publicize the nature or contents of this Agreement
except on mutual approval and in such manner as mutually agreed. 
  

	7.	DURATION 

  
 The term of this Agreement shall run contemporaneous with the Term of the STANDARD WORLDSPACE RECEIVER DEVELOPMENT, PRODUCTION, MARKETING AND LICENSE
AGREEMENT between WorldSpace India Private Limited and BPL Limited. 
  
 This Agreement may be renewed for further periods on mutually agreed terms and conditions. 
  

	8.	TERMINATION 

  

	8.1	In the event either party hereto should breach any terms and conditions, or fail to perform any obligations or undertakings hereunder, the other party hereto may notify the
defaulting party of such default, and if the situation is not rectified with sixty (60) days after the receipt of such notice, the party giving notice may, at its option, terminate this Agreement forthwith. 

  

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	8.2	In the event either Party hereto should become insolvent or bankrupt, or make an assignment to or for the benefit of creditors, or in the event either Party hereto should enter into
liquidation or receivership, or in the event direct or indirect change in ownership, management or effective control of either Party hereto is made, then the other Party, at its option, may at any time thereafter immediately terminate this Agreement
by giving a written notice thereof. 

  

	8.3	Termination of this Agreement does not affect a party’s accrued rights and obligations at the date of termination. 

  

	9.	FORCE MAJEURE 

  

	9.1	Any delay or failure in performance hereunder by either Party hereto shall be excused if and to the extent caused by occurrences beyond such Party’s control, including but not
limited to, decrees or restraints of Government, act of God, strikes or other labor disturbances, war, riot, civil commotion, sabotage, or any cause or causes, whether similar or dissimilar to those already specified, which cannot be controlled by
such Party. 

  

	9.2	Either party hereto shall have the option to terminate this, Agreement, should the parties have not been able to find solution within sixty (60) days after the occurrence of such
event. 

  

	10.	ARBITRATION 

  
 In the event any disputes, differences or controversies should arise between the Parties hereto, out of or in relation to or in connection with the
provisions of this Agreement, or any action taken hereunder, the Parties hereto shall thoroughly explore all possibilities for an amicable settlement. In case amicable settlement could not be reached, such disputes, differences or controversies
shall be referred to arbitration by three Arbitrators - one to be appointed by each party and the third Arbitrator (who shall act as the presiding Arbitrator) to be appointed by the two Arbitrators. The place of Arbitration shall be Bangalore. The
arbitration will be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 applicable in India and any statutory modifications or re-enactment thereof. 
  

	11.	GOVERNING LAW 

  
 This Agreement shall be governed and construed in accordance with the laws of India. 
  

	12.	ASSIGNMENT 

  
 Neither party may assign or transfer its obligations under this Agreement without the other’s prior written consent. 
  

	13.	MISCELLANEOUS 

  

	13.1	Nothing in this Agreement is intended or shall be construed to authorise either Party to create or assume any liability or indebtedness of any kind in the name of, or on behalf of
the other Party or to act for or be responsible for the performance of the other Party in any manner. 

  

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	13.2	If any provision of this Agreement shall be determined to be void or unenforceable under any applicable law, such provision shall be deemed amended or deleted insofar as reasonably
consistent with the purposes of this Agreement and to the extent necessary to conform to the applicable law and the remaining provisions of this Agreement shall remain valid and enforceable in accordance with their terms. 

 

	13.3	All notices, requests and other communications which shall be or may be given under this Agreement shall be sent by registered mail, personal delivery, facsimile, telex or telegram
(if followed immediately by a confirmation letter sent by mail) or the equivalent thereof and shall be addressed to the Parties hereto at their respective offices set forth in the premises of this Agreement. 

  

	13.4	Such notices, requests and other communications shall be deemed to be received and made effective when duly arrived at the other Party hereto. 

  

	13.5	Any alteration or change in the addresses of each of the Parties hereto shall be notified in writing to the other Party hereto without undue delay. 

  

	13.6	No amendment or change hereof or addition hereto shall be effective or binding upon any of the Parties hereto unless reduced in writing and executed by the respective duly
authorized representatives of both the Parties hereto. 

  

	13.7	The title or headings to Articles of this Agreement are to facilitate reference only, and do not form a part of this Agreement, and shall not in any way affect the interpretation
hereof. 

  
 IN WITNESS WHEREOF, the Parties hereto
have caused this Agreement to be executed in duplicate, each of which shall be considered as an original, by their respective duly authorized representatives as of the date first above written. 
  

													
	for BPL LIMITED	 	 	 	 	 	 for WORLDSPACE INTERNATIONAL 
             NETWORK INC.
	 	 
							
	By:	 	 /s/ Shashi Nambiar

	 	 	 	 	 	By:	 	 /s/ James R. Laramie

	 	 
	 	 	Shashi Nambiar	 	 	 	 	 	 	 	James R. Laramie	 	 
	 	 	Director	 	 	 	 	 	 	 	Director	 	 
						
	 •      Date: 1/12/2000
	 	 	 	 	 	 	 	Date 1 December 2000	 	 

  

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 Annexure 
  

STARMANTM Chipset 
  
 “STARMAN Chipset” means a chipset comprising one or more integrated circuits that was manufactured under license from WORLDSPACE, is capable of processing information or data according to the WORLDSPACE
Format, and: - 
  

	•	 	Selects any one of a multiplicity of L-band carriers modulated by a TDM digital stream carrying 96 prime rate channels at 16 Kbps each; 

  

	•	 	Demodulates and decodes the selected TDM stream to recover the prime rate channels 

  

	•	 	Combines prime rate channels to recover the channel of each broadcaster; 

  

	•	 	Delivers each broadcaster’s channel to a digital output for further processing; 

  

	•	 	Delivers time slot control channels and service header channels to a digital output for further processing; 

  

	•	 	Decodes MPEG 1/2 Audio Layer 3 and MPEG 2.5 Layer 3 broadcaster channels to recover the audio program content; and 

  

	•	 	Provides other outputs needed to support the features mutually agreed to with licensed WORLDSPACE Receiver manufacturers. 

  
 One single STARMAN Chipset is a complete set of integrated circuits or a single integrated
circuit necessary for the implementation of the WORLDSPACE Format in a single WORLDSPACE Receiver. 
  
 Licensed STARMANTM Chipset Manufacturers 
  

	1.	Micronas GmbH 

  

	2.	STMicroelectronics Srl 

  

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 Exhibit 10.8 
  
 STANDARD WORLDSPACE RECEIVER 
 DEVELOPMENT, PRODUCTION, MARKETING 
 AND LICENSE AGREEMENT 
  
 This Standard WorldSpace Receiver Development, Production, Marketing and
License Agreement (this “Agreement”) is made this 1st day of December, 2000 (the “Effective
Date”), by and between: 
  
 WorldSpace India Private Limited,
a corporation organized under the laws of India, having its principal office at Shankarnarayana Towers, 9th Floor,
25/2 M. G. Road, Bangalore – 560 001, India (“WORLDSPACE”); and 
  
 BPL Limited, a Company incorporated under the Companies Act, 1956 having its Registered Office at BPL Works, Palakkad—678007, Kerala and marketing office at BPL Towers, 13 Kasturba Road, Bangalore—560 001,
India (“BPL”) (each, a “Party” and collectively, the “Parties”). 
  
 RECITALS 
  
 WHEREAS, WORLDSPACE is a digital broadcaster of audio and multimedia programs directly from satellites and the decoding of the WORLDSPACE satellite digital signals requires specially designed satellite receivers that WORLDSPACE refers to
using its trademark “WORLDSPACE” (“WORLDSPACE Receivers”) which incorporate specially designed chipsets that WORLDSPACE refers to using its trademark “STARMAN” (“STARMAN Chipsets”); and 
  
 WHEREAS, BPL is a developer, manufacturer and distributor of certain consumer
electronics products; and 
  
 WHEREAS, WORLDSPACE has selected BPL
to produce, market, distribute and sell its WORLDSPACE Receivers pursuant to a license under certain intellectual property rights owned by WORLDSPACE and pursuant to a sublicense under certain intellectual property rights owned by Fraunhofer
Gesellschaft zur Förderung der Angewandten Forschung e.V. (“FhG”) and granted to WORLDSPACE either directly or pursuant to an agreement between Thomson Consumer Electronics Sales GmbH (“TCE”) and WORLDSPACE; and 

 
 WHEREAS, BPL is interested in producing, marketing, distributing and
selling WORLDSPACE Receivers and desires to obtain, and WORLDSPACE is willing to grant, a non-exclusive license and sublicense that will allow BPL to manufacture a consumer grade satellite receiver utilizing WORLDSPACE’s intellectual property
and to market the same under BPL’s brand names and WORLDSPACE’s trademarks and logo. 
  
 NOW, THEREFORE, the Parties have agreed as follows: 
  
 1. DEFINITIONS 
  
 For
purposes of this Agreement, the following capitalized terms will have the following meanings: 
  
 1.1 “WORLDSPACE System” means a satellite-based digital audio, visual imaging and/or data broadcasting system using time division multiplex (“TDM”) downlink and 

  

 
PSK modulation, comprising 3 satellites with 3 beams per satellite, 2 TDM carriers with opposite circular polarization per beam, 96 primary rate channels
with 16 Kbps per carrier, equivalent to a maximum of 1728 broadcast channels, which uses ISO MPEG 1/2 Audio Layer 3 (IS 11172-3, IS 13818-3) and MPEG 2.5 Layer 3 as the source coding scheme and as specified in the WORLDSPACE Format. 
  
 1.2 “WORLDSPACE Format” means the TDM bitstream structure as
defined in WORLDSPACE DAVB Digital Format Requirements document WST-PMO-DDS-002-000000 Edition 08 Revision B dated March 26, 1998. 
  
 1.3 “WORLDSPACE Receiver” means a satellite receiver containing a STARMAN Chipset and designed to receive broadcasts from AfriStar,
AsiaStar and/or AmeriStar in accordance with the WORLDSPACE Format and which meets or exceeds the Technical Specifications attached as Appendix 2. 
  
 1.4 “STARMAN Chipset” means a chipset, manufactured under license from WORLDSPACE and having the characteristics set forth in
Appendix 3, that can process data according to the WORLDSPACE Format. A list of manufacturers qualified and licensed to manufacture STARMAN Chipsets as of the Effective Date is set forth in Appendix 4, as periodically updated. 
  
 1.5 “FhG Patent Rights” means the patents and patent
applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to ISO MPEG 1/2 Audio
Layer 3 and MPEG 2.5 Layer 3 technology used in the WORLDSPACE Format that FhG owns or will own during the Term. FhG Patent Rights as of the Effective Date are set forth in Appendix 5, as periodically updated. 
  
 1.6 “WORLDSPACE Patent Rights” means the patents and patent
applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to the WORLDSPACE System
and to the WORLDSPACE Receiver technology that WORLDSPACE owns or will own during the Term. WORLDSPACE Patent Rights as of the Effective Date are set forth in Appendix 6, as periodically updated. 
  
 1.7 “WORLDSPACE Information” means all information and
knowledge relating to the WORLDSPACE System, the WORLDSPACE Format, the WORLDSPACE Receiver, the STARMAN Chipset, the WORLDSPACE Patent Rights and the FhG Patent Rights that is not generally known, including, and whether or not patentable, all trade
secrets, know-how, data, designs, specifications, material lists, drawings, algorithms, formulas, patterns, compilations, programs, samples, devices, protocols, methods, techniques, processes, procedures and results of experimentation and testing.

  
 1.8 “Development Patent Rights” means the
patents and patent applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to the
design and development by BPL of the WORLDSPACE Receiver under Article 2.1.1, excluding FhG Patent Rights, WORLDSPACE Patent Rights, and any patents, patent applications or similar rights possessed or obtained by BPL prior to the execution of this
Agreement. 
  

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 1.9 “Development Information” means all information and knowledge relating to the design
and development by BPL of the WORLDSPACE Receiver under Article 2.1.1 that is not generally known, including, and whether or not patentable, all trade secrets, know-how, data, designs, specifications, material lists, drawings, algorithms, formulas,
patterns, compilations, programs, samples, devices, protocols, methods, techniques, processes, procedures and results of experimentation and testing, excluding the WORLDSPACE Information and any similar information and knowledge possessed or
obtained by BPL prior to the execution of this Agreement. 
  
 1.10
“WORLDSPACE Marks” means WORLDSPACE’s logo and trademarks as set forth in Appendix 7. 
  
 1.11 “BPL Marks” means BPL’s logo and trademarks as set forth in Appendix 10. 
  
 1.12 “AfriStar” means the WORLDSPACE satellite launched on
October 28, 1998 that provides service within the AfriStar Service Area. A contour map indicating generally the geographic reach of the AfriStar broadcast beams is attached to Appendix 1. 
  
 1.13 “AsiaStar” means the WORLDSPACE satellite launched on
March 21, 2000 that provides service within the AsiaStar Service Area. A contour map indicating generally the geographic reach of the AsiaStar broadcast beams is attached to Appendix 1. 
  
 1.14 “AmeriStar” means the WORLDSPACE satellite currently scheduled for launch in 2001 that will provide
service within the AmeriStar Service Area. A contour map indicating generally the geographic reach of the AmeriStar broadcast beams is attached to Appendix 1. 
  

1.15 “AfriStar Service Area” means the geographic regions within the WORLDSPACE Service Area where reception of the signal from
AfriStar may be achieved using a WORLDSPACE Receiver. 
  
 1.16 “AsiaStar Service Area” means the geographic regions within the WORLDSPACE Service Area where reception of the signal from AsiaStar may be achieved using a WORLDSPACE Receiver. 
  
 1.17 “AmeriStar Service Area” means the geographic regions
within the WORLDSPACE Service Area where reception of the signal from AmeriStar may be achieved using a WORLDSPACE Receiver. 
  
 1.18 “WORLDSPACE Service Area” means the geographic regions where reception of the signal from AfriStar, AsiaStar and/or AmeriStar may be
achieved using a WORLDSPACE Receiver. 
  
 1.19
“Work” means the whole of BPL’s performance under this Agreement, including the development, production, marketing and sales of the WORLDSPACE Receivers. Where the context so permits or requires, “Work” includes any
part or parts of the Work. 
  
 1.20 “Affiliate”
means a corporation, partnership or other entity controlled by, controlling or under common ownership or control with a Party. 
  
 1.21 “Term” means the term of this Agreement as set forth in Article 9.1. 
  

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 1.22 Forms of the word “include” mean “including, without limitation;” references to
Articles and Appendices refer to Articles and Appendices of this Agreement; and references to “hereunder,” “herein,” “hereof,” and the like, refer to this Agreement, including all Appendices hereof. 
  
 2. RECEIVER DEVELOPMENT AND PRODUCTION 
  
 2.1 Development of WORLDSPACE Receivers. 
  
 2.1.1 Performance and Timing. BPL will develop and
deliver the WORLDSPACE Receivers in accordance with the Work Schedule set forth in Appendix 8. Time is of the essence with respect to the delivery of the WORLDSPACE Receivers.  
  
 2.1.2 Subcontracts. BPL and its Affiliates may subcontract the performance of all or part of the
Work. Any failure by a subcontractor to meet its obligations will not relieve BPL of any of its obligations hereunder. 
  
 2.1.3 Access to Work. WORLDSPACE will have reasonable access to the Work. BPL will, at WORLDSPACE’s request, deliver to
WORLDSPACE by confidential means copies of designs and data generated in the course of performing the Work. The Parties will schedule regular meetings to review the progress of the Work. 
  
 2.2 Transfer of WORLDSPACE Information and Technical Assistance. 
  
 2.2.1 WORLDSPACE Information Transfer. WORLDSPACE
will furnish BPL, at BPL’s request, with such complete WORLDSPACE Information as is necessary for the production and marketing of WORLDSPACE Receivers by BPL. 
  
 2.2.2 Technical Assistance. WORLDSPACE will provide BPL, at its cost, such technical assistance as
BPL may reasonably request regarding the development and production of WORLDSPACE Receivers, including the dispatch of engineers and other support staff. All technical assistance will be conducted at such times and at such locations as may be
mutually convenient to WORLDSPACE and BPL. 
  
 2.3 Production
of WORLDSPACE Receivers. 
  
 2.3.1 Mass
Production. BPL shall mass produce WORLDSPACE Receivers in a quantity of no less than 100,000 units during the 12-month period following commencement of production by BPL. BPL shall use its best efforts to produce WORLDSPACE Receivers that are
of high quality and fulfill the customers’ needs. Both Parties shall work to reduce the ex factory price of BPL-manufactured WORLDSPACE Receivers to an amount not to exceed the Indian Rupee equivalent of Fifty U.S. Dollars (US$50). WORLDSPACE
shall cooperate with BPL in BPL’s production of WORLDSPACE Receivers. Prior to September 30 of each year beginning in 2002, the Parties shall meet and mutually agree upon the quantities of WORLDSPACE Receivers to be mass produced by BPL during
the following year. If, during the following year, BPL fails to produce the quantities of WORLDSPACE Receivers agreed upon, then WORLDSPACE shall have the right, upon written 

  

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notice to BPL, to terminate this Agreement pursuant to Article 9.2 below without any further obligation or liability to WORLDSPACE. 
  
 2.4 Approval of WORLDSPACE Receivers. 
  
 2.4.1 Type Approval. Prior to commencing commercial
mass production of any WORLDSPACE Receivers, BPL will submit to WORLDSPACE for its inspection: (i) a prototype of each receiver that BPL proposes to manufacture, so that WORLDSPACE may confirm that such prototype receiver performs in accordance with
the WORLDSPACE Format and the Technical Specifications; and (ii) the preliminary design specifications for such receivers, including all circuit diagrams, blueprints (or equivalents thereof), component specifications (if WORLDSPACE requests) and
overall specifications of such prototype receiver. If such prototype receiver successfully passes WORLDSPACE’s test, it will be deemed a “WORLDSPACE Receiver” under this Agreement. After a receiver has been qualified as a WORLDSPACE
Receiver, no changes may be made to the WORLDSPACE Receiver except for those which are cosmetic in nature or which do not materially affect the function or quality of the WORLDSPACE Receiver unless the receiver is resubmitted to WORLDSPACE for
testing and WORLDSPACE confirms that this modified receiver continues to qualify as a WORLDSPACE Receiver. All testing will be performed at WORLDSPACE’s then current testing rates. As of the Effective Date, WORLDSPACE’s standard rates are
as set forth in Appendix 9, but WORLDSPACE reserves the right to make reasonable changes to its rates with prior notification to BPL. 
  
 2.4.2 Requests for Testing. All requests for testing will be accompanied by payment in full of WORLDSPACE’s testing fee, a
prototype of the applicable receiver and all test data and schematics pertaining thereto. WORLDSPACE will endeavor in good faith to test, or have its authorized agent test, all prototype receivers submitted for testing within thirty (30) days from
the date WORLDSPACE or such authorized agent has received such prototype and all test data and schematics pertaining thereto. Delays in testing will not entitle BPL to cancel a testing order or to claim damages, provided that WORLDSPACE immediately
notifies BPL of such delays and presents a plan to complete such testing as soon as possible. 
  
 3. RECEIVER MARKETING 
  
 3.1 Marketing the WORLDSPACE Receivers. 
  
 3.1.1 Marketing. BPL agrees to use its best efforts to market, distribute and sell WORLDSPACE Receivers within the WORLDSPACE Service Area in quantities sufficient to meet the minimum quantities specified in
Article 2.3.1. BPL and WORLDSPACE shall meet on a monthly basis to review the marketing and distribution activities of BPL. If, in the reasonable judgment of WORLDSPACE, BPL does not effectively market, distribute and sell the WORLDSPACE Receivers,
WORLDSPACE will so notify BPL in writing. BPL shall have 30 days to demonstrate to WORLDSPACE’s reasonable satisfaction that BPL shall perform its obligations pursuant to this Agreement. If BPL fails to market, distribute and sell the
WORLDSPACE Receivers so as to satisfy this Agreement, WORLDSPACE shall have the right, upon written notice to BPL, to terminate this Agreement pursuant to Article 9.2 below without any further obligation or liability to WORLDSPACE. 
  

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 3.1.2 Marketing Strategy. BPL will market, advertise and promote the WORLDSPACE
Receivers and the WORLDSPACE Marks throughout the WORLDSPACE Service Area in order to effectively create consumer demand for BPL-manufactured WORLDSPACE Receivers. WORLDSPACE will advertise and promote the WORLDSPACE Service and the WORLDSPACE Marks
throughout the WORLDSPACE Service Area. BPL will develop an effective marketing and distribution strategy for BPL-manufactured WORLDSPACE Receivers in cooperation with WORLDSPACE. 
  
 4. INTELLECTUAL PROPERTY LICENSES 
  
 4.1 WORLDSPACE Information License, FhG Patent Rights Sublicense, WORLDSPACE Patent Rights License and WORLDSPACE Marks
License.  
  
 4.1.1 License and Sublicense
Grant. WORLDSPACE hereby grants to BPL and its Affiliates a non-exclusive, non-transferable, revocable, indivisible license under the WORLDSPACE Information, the WORLDSPACE Patent Rights and the WORLDSPACE Marks and a non-exclusive,
non-transferable, revocable, indivisible sublicense under the FhG Patent Rights, to perform, and have performed, the Work. BPL will have no right to sublicense to any third party without WORLDSPACE’s prior approval. 
  
 4.1.2 Licensed and Sublicensed Territory. Pursuant to
Article 4.1.1, BPL and its Affiliates may design, develop and/or manufacture, and have designed, developed, and/or manufactured, WORLDSPACE Receivers anywhere in the world for sale only in the WORLDSPACE Service Area except for China; provided that
BPL will not use or authorize any public use, direct or indirect, of the WORLDSPACE Marks outside the WORLDSPACE Service Area and will not knowingly sell any products covered by this Agreement to persons who intend or are likely to resell them
outside the WORLDSPACE Service Area. 
  
 4.1.3
Royalty. In consideration of the licenses and sublicense granted by WORLDSPACE under Article 4.1.1, BPL will pay to WORLDSPACE within sixty (60) days after June 30 and December 31 of each calendar year of the Term a royalty of Three and One
Half U.S. Dollars (U.S. $3.50) net (except for any required tax withholdings), payable in its equivalent in Indian Rupees at the exchange rate on such due date as established by the Reserve Bank of India, for each single WORLDSPACE Receiver that BPL
sells during the previous two calendar quarters. If BPL sells a WORLDSPACE Receiver, directly or indirectly, to itself or to any Affiliate, the royalty will be calculated and due as though such product had been sold to a third party. 
  
 4.2 Development Rights. 
  
 WORLDSPACE and BPL will share equally in the ownership and
the benefits of all Development Information and Development Patent Rights. To that end, all right, title and interest in and to such Development Information and Development Patent Rights will be obtained in the names of and on behalf of both
WORLDSPACE and BPL. Each Party will have the right to use Development Information and Development Patent Rights for its own benefit; however, any license of such 

  

 13 

 
Development Information and Development Patent Rights to third parties will be subject to the prior written approval of the other Party, which approval will
not be unreasonably withheld. Any such license to a third party will be granted on the basis of reasonable compensation therefor and pursuant to other reasonable terms and conditions; provided, however, that the Parties may agree to impose
restrictions or prohibitions regarding the granting of such rights to specific third parties. Any royalties, revenue or other consideration received as compensation from such third party will be shared equally by WORLDSPACE and BPL. If either Party
sells or otherwise disposes of products or services that use or incorporate the Development Information and Development Patent Rights, then such Party will compensate the other Party in an amount to be mutually agreed upon. The Parties will
cooperate in and equally share the costs of securing, maintaining and enforcing the Development Patent Rights. 
  
 4.3 Use of the Marks. 
  
 4.3.1 Proper Use. BPL will mark all WORLDSPACE Receivers with the BPL Marks and the WORLDSPACE Marks and will use the BPL
Marks and the WORLDSPACE Marks in all packaging, instruction manuals, catalogs and printed advertising concerning the WORLDSPACE Receivers. The WORLDSPACE Marks will be affixed to the WORLDSPACE Receivers, and will be used in any packaging,
instruction manuals, catalogs, advertising and promotional material, and may be used in such other media as the Parties agree upon, in such a manner as to allow a person with normal vision to recognize the WORLDSPACE Marks, and as a general
guideline will be at least as prominent in location and size as any other logo or mark of similarly licensed technology in similar products or similar advertising. BPL will cause notice of WORLDSPACE’s ownership of the WORLDSPACE Marks to be
used on each WORLDSPACE Receiver and used in any instruction manuals, catalogs, advertising and promotional material, and such other media as the Parties agree upon, and as a general guideline such use will be in such a manner and at least as
frequently as BPL uses said proprietary notice or equivalent with respect to any other logo or mark of similarly licensed technology in similar products or similar advertising. The following notice (or such other notice as WORLDSPACE may hereafter
reasonably require) is an example of an appropriate notice: 
  
 WORLDSPACE is a trademark of WorldSpace International Network Inc. 
  
 4.3.2 Benefit of Use. BPL’s use of the WORLDSPACE Marks will inure to the benefit of WORLDSPACE and BPL will not at any time
acquire any rights in such WORLDSPACE Marks or any trademarks or trade dress similar thereto by virtue of any use it may make of any such WORLDSPACE Marks. Similarly, the use of BPL marks on the Receivers does not confer any rights in WORLDSPACE.

  
 4.3.3 Good Will. All of the good will
now or to be associated with the WORLDSPACE Marks belongs exclusively to WORLDSPACE and all good will associated with the WORLDSPACE Marks pursuant to BPL’s use thereof will inure exclusively to WORLDSPACE’s benefit. All of the good will
now or to be associated with the BPL Marks belongs exclusively to BPL and all good will associated with the BPL Marks pursuant to WORLDSPACE’s use thereof will inure exclusively to BPL’s benefit. 
  
 4.3.4 Non-Use of Similar Trademarks. BPL will not
adopt or use any name or trademark confusingly similar to any of the WORLDSPACE Marks. WORLDSPACE 

  

 14 

 
will not adopt or use any name or trademark confusingly similar to any of the BPL Marks. 
  
 4.4 Quality of WORLDSPACE Receivers. 
  
 4.4.1 Quality Control. BPL agrees that the overall quality of the WORLDSPACE Receivers is essential
to BPL’s performance hereunder. WORLDSPACE will have the right to exercise reasonable quality control procedures and to approve the quality of the WORLDSPACE Receivers that BPL markets under the WORLDSPACE Marks to ensure the protection of the
WORLDSPACE Marks and the good will pertaining thereto. Such quality approvals will be based on WORLDSPACE’s confirmation that the BPL-manufactured WORLDSPACE Receivers are in conformity with the WORLDSPACE Format and Technical Specifications,
and with the appearance and design specifications determined under Article 4.3. 
  
 4.4.2 Design Review. BPL agrees prior to finalization of the overall design for each WORLDSPACE Receiver model that it shall
furnish to WORLDSPACE, free of cost, for WORLDSPACE’s prior written approval and comment as to quality and appearance for purposes of Article 4.4.1, with the following: (i) testing procedures to be undertaken for the WORLDSPACE Receiver and all
applicable performance standards and quality review procedures to be applied and (ii) sketches, drawings, mock-ups, photographs, or equivalents thereof of the exterior of the WORLDSPACE Receiver showing detail including but not limited to the
placement of all WORLDSPACE Marks and other trademarks, text, notices, symbols, designs and markings. 
  
 4.4.3 Evaluation Sample Review. Prior to manufacture, BPL will furnish WORLDSPACE, free of cost, for its comment as to quality and
appearance for purposes of Article 4.4.1, an evaluation sample of the final production prototype (milestone 4) of each WORLDSPACE Receiver model and the final performance and test results with respect thereto, and no WORLDSPACE Receiver will be
distributed by BPL without WORLDSPACE’s prior written approval. 
  
 4.4.4 Review of Materials. Prior to BPL’s distribution, shipment or publication, whichever is applicable, of any packaging, instruction manuals, catalogs or printed advertising that BPL intends to use in
connection with the WORLDSPACE Receivers or the WORLDSPACE Marks, the Parties will meet to establish mutually acceptable guidelines for proper use of the WORLDSPACE Marks on such materials. Such guidelines will include the right of WORLDSPACE to
receive from BPL, upon reasonable request and free of cost, samples of such materials for examination and comment as to quality and appearance. 
  
 4.4.5 Initial Production Samples. After drawings, plans, diagrams, sketches, components, methods of testing or assembly,
specifications and samples have been approved pursuant to Articles 4.4.2 and 4.4.3 of this Agreement, BPL will not depart therefrom in any material respect without WORLDSPACE’s prior written consent. BPL will also furnish to WORLDSPACE, free of
cost, two (2) samples of each WORLDSPACE Receiver from the initial production run. 
  
 4.4.6 Representative Production Samples. After BPL has commenced shipment, distribution or sale of the WORLDSPACE Receivers, upon
WORLDSPACE’s written request, BPL will provide annually to WORLDSPACE, free of cost, one (1) additional representative random production sample of each WORLDSPACE Receiver 

  

 15 

 
then available and being offered for sale or distribution by BPL, together with all packaging material and literature used in connection therewith.

  
 4.4.7 Reports. After BPL has commenced
shipment, distribution or sale of the WORLDSPACE Receivers, upon WORLDSPACE’s reasonable written request, BPL also agrees to provide WORLDSPACE, free of cost, a report of all returns of, repairs made or authorized, and comments or complaints
made by others regarding the WORLDSPACE Receivers and known to BPL, to the extent BPL is able to acquire such information through its normal business practices. 
  
 4.4.8 No Use Upon Termination. Upon the termination or expiration of this Agreement for any reason,
BPL will discontinue, except as otherwise provided in Article 10 below, the use of the WORLDSPACE Marks, and will not use or register any mark confusingly similar to the WORLDSPACE Marks. 
  
 5. ROYALTY STATEMENTS AND PAYMENTS 
  
 5.1 Royalty Statements. BPL will submit to WORLDSPACE within sixty (60) days after June 30 and December 31 of each
calendar year of the Term in which BPL sells WORLDSPACE Receivers, a royalty statement in writing, certified by BPL to be accurate, setting forth all WORLDSPACE Receivers that BPL has sold and/or distributed during the preceding two calendar
quarters. Such statements will include: 
  
 (i) the identity of
BPL’s purchasers for such WORLDSPACE Receivers; 
  
 (ii) the
quantity and description (including model name or other product identification) of such WORLDSPACE Receivers, after deducting the number of returns, if any; 
  
 (iii) the total quantity and description of all such WORLDSPACE Receivers, both in total and by individual country; 
  
 (iv) the amount of royalty due WORLDSPACE for the two preceding calendar
quarters. 
  
 Such statements will be furnished to WORLDSPACE whether or not any
WORLDSPACE Receivers have been sold or distributed during the two calendar quarters for which such a statement is due, and whether or not royalties for that period have been waived. At the request of WORLDSPACE, BPL will provide such further
information reasonably requested by WORLDSPACE to enable it to verify royalties that may be owing. 
  
 5.2 Royalty Payments. The royalty statement submitted pursuant to Article 5.1 will be accompanied with the royalty payments due to WORLDSPACE
pursuant to Article 4.1.3. All royalties under this Agreement will be paid in Indian Rupees payable to WORLDSPACE by certified check or wire transfer in immediately available funds, and free of any bank charges imposed on BPL, however subject to any
applicable deductions for withholding taxes. Overdue payments will bear interest at the rate of five percent (5%).  
  
 5.3 Statement Errors. Upon submission of proper documentation of an error in a previous royalty statement prior to a request by WORLDSPACE for an
audit pursuant to Article 5.4, BPL may adjust the royalty statements in either Party’s favor when a reason for any such adjustment becomes known to BPL, but not later than three (3) years from the date of the royalty statement in question. BPL
will deduct/add any overpayment/underpayment of royalty for the preceding two calendar quarters from/to the royalty due for the subsequent two calendar quarters. 
  
 5.4 Auditing of Royalty Statements and Payments. For five (5) years from the date each royalty payment comes due
hereunder, BPL will keep accurate and reasonably 

  

 16 

 
detailed records of the WORLDSPACE Receivers that BPL has sold hereunder, and, for three (3) years after the end of the two calendar quarters for which the
record was made, allow an independent certified public accountant that WORLDSPACE selects and that is reasonably acceptable to BPL to examine and copy such records and related materials for the sole purpose of verifying royalties hereunder;
provided, however, that such auditor will have agreed in advance in writing to maintain in confidence and not to disclose to WORLDSPACE or any third party any proprietary information obtained during the course of such audit. No more than one such
audit will be performed per calendar year, unless BPL has underpaid royalties due as provided in the following sentence. If an independent public accountant determines that at any time BPL has underpaid more than three percent (3%) of the owed
hereunder, BPL, in addition to any other remedy provided to WORLDSPACE by law or by this Agreement, will reimburse WORLDSPACE’s full costs and expenses associated with such audit, and pay WORLDSPACE an amount equal to the underreported
royalties, with interest thereon calculated pursuant to Article 5.2 from the date each royalty accrued to the date of payment. If an error of three percent (3%) or less is revealed, WORLDSPACE will bear the costs and expenses associated with
such audit. If the result of such audit is that an error is detected, the amount overpaid or underpaid, as the case may be, will be credited against or paid together with the next payment of royalties pursuant to Article 5.2. 
  
 6. CONFIDENTIALITY AND NONDISCLOSURE 
 OF PROPRIETARY INFORMATION 
  
 6.1 Non-Disclosure and Non-Use. During the performance of this Agreement, one Party (“the Disclosing Party”) may exchange information
which may be of a proprietary or confidential nature to the other Party (“the Receiving Party”), such as information concerning inventions, techniques, processes, devices, discoveries and improvements, or regarding administrative,
marketing, financial or manufacturing activities, and in the case of WORLDSPACE, such as WORLDSPACE Information (collectively, “Information”). All such Information, in any form, including without limitation, oral, written graphic,
demonstrative, machine recognizable or sample form, will be considered proprietary and confidential Information of the Disclosing Party will be retained in confidence and will not be disclosed or caused or permitted to be disclosed directly or
indirectly to any third party without the prior written approval of the Disclosing Party, and will not be used by the Receiving Party for any reason other than the performance of its duties under this Agreement. The Receiving Party further agrees
that any material or data generated by the Receiving Party, based in whole or in part on Information disclosed by the Disclosing Party, will also be retained in confidence. 
  
 6.2 Exceptions. The obligation of the Receiving Party to retain Information in confidence will not apply to:

  
 (i) Information which is now in or hereafter enters the
public domain beyond the control of the Receiving Party and without its violation of this Agreement; 
  
 (ii) Information rightfully known to the Receiving Party prior to the time of disclosure by the Disclosing Party, or independently developed by the
Receiving Party personnel without access to Information disclosed by the Disclosing Party; 
  
 (iii) Information disclosed in good faith to the Receiving Party by a third party legally entitled to disclose the same; or 
  

 17 

 (iv) Information which the Receiving Party discloses under operation of law, rule or legal process;

  
 provided, however, that the burden will be on the Receiving
Party to prove the applicability of one or more of the foregoing exceptions by documentary evidence should the Disclosing Party question the applicability of such exceptions; as to exception (iv), the Receiving Party will provide the Disclosing
Party with prompt written notice of any request or legal proceeding through which the Receiving Party may be required to disclose such Information under operation of law, rule or legal process. 
  
 6.3 Labeling of Information. Information in tangible form is now and
will at all times be labeled by the Disclosing Party as “Confidential” or “Proprietary.” If Information is disclosed orally or by demonstration, it must be specifically designated by the Disclosing Party as confidential
information at the time of such initial disclosure and contained in an itemized written listing to be sent to the Receiving Party by the Disclosing Party within thirty (30) days following such initial disclosure. 
  
 6.4 Disclosure on Need to Know Basis. The Receiving Party agrees to
transmit the Information, and/or material or data generated by the Receiving Party based in whole or in part on such Information, only to those directors, officers, employees, agents or other representatives who need access to the Information and/or
material or data generated by the Receiving Party based in whole or in part on such Information, for the purpose of performing their duties pursuant to this Agreement, and who are informed by the Receiving Party of the confidential nature of the
Information and/or material or data generated by the Receiving Party based in whole or in part on such Information, and who agree to be bound by the terms of this Agreement. The Receiving Party further agrees to be responsible for any breach of this
Agreement by the Receiving Party or any director, officer, employee or other representative of the Receiving Party. 
  
 6.5 Property of Disclosing Party. The Receiving Party agrees that all Information disclosed to the Receiving Party hereunder will be and remains
the property of the Disclosing Party. Any tangible form of Information including, but not limited to, documents, papers, computer diskettes and electronically transmitted Information will be destroyed by the Receiving Party or returned, together
with all copies thereof, to the Disclosing Party promptly upon the Disclosing Party’s request. If such tangible form of Information is destroyed, a certification of such destruction executed by a duly authorized officer of the Receiving Party
will be delivered to the Disclosing Party. 
  
 6.6
Non-Competition. The Receiving Party agrees not to use the Information provided by the Disclosing Party to engage, represent in any way or be connected with, as officer, director, partner, employee, sales representative, proprietor,
stockholder or otherwise of any business or activity that would compete with the business of the Disclosing Party. 
  
 6.7 Survival Upon Termination. The Receiving Party’s obligations under this Agreement will survive the termination of its business
relationship, if any, with the Disclosing Party regardless of the manner of such termination, and will be binding upon its successors and assigns. The obligation of the Receiving Party under this Agreement will terminate three (3) years from the
date of termination of this Agreement unless such obligation is sooner terminated by written notice given by the Disclosing Party to the Receiving Party. 
  
 6.8 Remedies for Breach. The Receiving Party acknowledges that the Information provided and all documentation thereto are commercially valuable,
and reflect the effort of skilled development experts and the investment of considerable time and 

  

 18 

 
money. The Receiving Party accordingly agrees to protect the confidence of the Information and prevent its unauthorized dissemination and use, using the same
degree of care that the Receiving Party uses to protect its own like information. The Receiving Party agrees that money damages would not be sufficient remedy for any breach of this Agreement by the Receiving Party or any director, officer,
employee, agent or other representative of the Receiving Party, and that in addition to any other rights or remedies which it may have, the Disclosing Party will be entitled to equitable relief, including injunction and specific performance, as a
remedy for such breach, and the Receiving Party further agrees to use its best efforts to cause any director, officer, employee, agent or other representative of the Receiving Party to waive any requirement for the securing or posting of any bond in
connection with such remedy. 
  
 6.9 Copies. Either Party
will be entitled to make copies of any documents containing Information under the terms and conditions set forth in this Article 6. 
  
 6.10 Confidentiality of Agreement. Neither Party will disclose the contents of this Agreement without the prior written consent of the other Party.

  
 7. REPRESENTATIONS AND WARRANTIES 
  
 7.1 Authority. Each Party represents and warrants that it has the
necessary corporate authority, and has taken the necessary steps, to enter into and fulfill its obligations under this Agreement. 
  
 7.2 WORLDSPACE Rights. WORLDSPACE represents and warrants that it owns and will own all right, title and interest in and to WORLDSPACE Information,
WORLDSPACE Patent Rights and WORLDSPACE Marks, and has a license to the FhG Patent Rights; it has the right to grant the rights granted under this Agreement; the granting of such rights does not require the consent of any third party; and there are
and will be no agreements inconsistent with the provisions of this Agreement. 
  
 7.3 No Knowledge of Infringement. As of the Effective Date, WORLDSPACE represents and warrants that it is unaware of any third party patent or other intellectual property right that would be infringed by the
use of the WORLDSPACE Information, the WORLDSPACE Patent Rights and WORLDSPACE Marks, or the FhG Patent Rights, as contemplated by this Agreement. If BPL is charged with infringement of a third party’s patent, trademark, copyright or other
intellectual property rights as a result of the development, manufacture and/or marketing of the WORLDSPACE Receiver within the WORLDSPACE Service Area, and if such alleged infringement arises from an aspect or function of the WORLDSPACE Receiver
that was required pursuant to the Technical Specifications, WORLDSPACE will, at no expense to BPL, do one or more of the following: (i) defend BPL against such charge or claim; (ii) procure for BPL the right to continue such development, manufacture
and/or marketing; or (iii) modify the design of the WORLDSPACE Receiver so that it no longer infringes, provided that such modification can be done without substantially impairing its functionality or performance. BPL will promptly notify WORLDSPACE
in writing of any claim of infringement and will provide WORLDSPACE with the authority, information and assistance necessary to defend or settle such claim; provided, however, that BPL will have the right to participate in such defense and to
approve any proposed settlement in advance. BPL will have the right to take over from WORLDSPACE the defense of a claim at any time, provided that BPL releases WORLDSPACE in writing from any further obligation of defense or indemnification in
connection with such claim. WORLDSPACE shall bear all costs and all consequences of defending such a claim and of 

  

 19 

 
any final judgement imposed; provided, however, that WORLDSPACE’s financial obligation under this Article 7.3 shall be limited to the total amount of
royalties paid by BPL to WORLDSPACE under Article 4.1.3. 
  
 7.4 Statutory Clearances and Approvals. WORLDSPACE warrants that it shall obtain or has obtained the requisite statutory licenses, clearance and approvals in respect of its ensuring uninterrupted broadcast through the Receivers and
shall continue to keep in force its right to provide service. 
  
 7.5 BPL Efforts. BPL will use its best efforts to perform the Work hereunder in a timely and professional manner by qualified personnel of BPL, BPL’s Affiliates, subcontractors or agents. 
  
 7.6 Nonreliance. BPL will not rely solely upon technical information
provided by WORLDSPACE, but will independently test, analyze and evaluate WORLDSPACE Receivers before manufacturing and marketing them. 
  
 7.7 Limitations. 
  
 7.7.1 Except as expressly provided for herein, WORLDSPACE makes no representations, extends no warranties or indemnifications of any kind,
expressed or implied, nor assumes any responsibilities whatsoever with respect to the manufacture, use, sale or other disposition by BPL of products incorporating or made by the use of intellectual property licensed under this Agreement. 

 
 7.7.2 WORLDSPACE makes no representations or warranties
as to the commercial utility of any WORLDSPACE Information, FhG Patent Rights or WORLDSPACE Patent Rights. 
  
 7.7.3 THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 7 ARE EXCLUSIVE OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS
OR IMPLIED, INCLUDING ANY WARRANTY RESPECTING THE RESULTS TO BE OBTAINED FROM USE OF THE FhG PATENT RIGHTS, WORLDSPACE INFORMATION, WORLDSPACE PATENT RIGHTS OR THE WORLDSPACE SYSTEM. NEITHER PARTY WILL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL
OR CONSEQUENTIAL DAMAGES OF ANY NATURE, WHETHER BASED IN CONTRACT, IN TORT OR OTHERWISE, THAT MAY ARISE IN CONNECTION WITH THIS AGREEMENT. 
  
 8. INDEMNIFICATION 
  
 BPL will defend, indemnify and hold harmless WORLDSPACE, TCE and/or FhG from and against any and all suits, actions, claims, judgments, debts, obligations
or rights of action of any nature or description arising from product liability laws applicable in India, namely, Monopolies and Restrictive Trade Practices Act, 1969 and Consumer Protection Act, 1986 with respect to BPL-manufactured WORLDSPACE
Receivers, and all reasonable costs, including attorneys’ fees, incurred by WORLDSPACE with respect thereto. Further, it is agreed by and between BPL and WORLDSPACE that the aforesaid indemnity shall not under any circumstances include or
extend to the inability of WORLDSPACE to broadcast through the Receivers for any reason whatsoever. This indemnity provision will impose no obligation upon BPL to the extent that the risk indemnified against hereunder arises solely from the
negligent acts or omissions of WORLDSPACE or is otherwise attributable to 

  

 20 

 
WORLDSPACE under product liability laws, in which event WORLDSPACE will defend, indemnify and hold harmless BPL from and against any and all suits, actions,
claims, judgments, debts, obligations or rights of action of any nature or description arising from product liability laws with respect to BPL-manufactured WORLDSPACE Receivers, and all reasonable costs, including attorneys’ fees, incurred by
BPL with respect thereto.  
  
 9. TERM AND TERMINATION

  
 9.1 Term. This Agreement will be effective as of
the Effective Date and, unless terminated sooner pursuant to this Article 9, will continue in effect for an initial term of five (5) years, and will automatically be renewed for successive one-year terms unless ninety (90) days’ prior written
notice is given by either Party to the other Party. 
  
 9.2
Termination for Cause. If a Party substantially fails to comply with any of its obligations under this Agreement, and does not remedy the failure of performance within sixty (60) days after it has been notified thereof, the other Party may
terminate this Agreement at the end of such period, without prejudice to any damages or additional remedies that may be available at law or in equity. Any such termination will not affect any payments that have previously come due hereunder, or the
furnishing of royalty statements as provided in Article 5.1. The failure of BPL to comply with Article 2.3.1 shall constitute cause under this Article 9.2 for WORLDSPACE to terminate this Agreement. 
  
 9.3 Insolvency. Should either Party become insolvent or be subjected
to bankruptcy or winding up proceedings, the other Party may terminate this Agreement immediately by notifying the other. 
  
 9.4 Revocation or Nullity Action. If BPL files any action against any of the FhG Patent Rights or against any of the WORLDSPACE Patent Rights, or
any action challenging the validity of the WORLDSPACE Information, or otherwise disputes the validity of any of the foregoing, including the filing of a revocation or nullity action, WORLDSPACE may terminate this Agreement. 
  
 9.5 Termination of Sublicense. WORLDSPACE shall keep in force and
effect the Patent License Agreement between TCE and WORLDSPACE for the term of this Agreement and the sublicense granted hereunder shall not be terminated unless WORLDSPACE obtains a license agreement in favor of BPL for the reminder of the term
under this Agreement. 
  
 9.6 Assignment. Either Party may
terminate this Agreement if the other attempts to assign it in violation of Article 11. 
  
 9.7 Force Majeure. Either Party may terminate this Agreement for Force Majeure in accordance with Article 13.9. 
  
 9.8 Availability of Service. Notwithstanding the termination of this Agreement, WORLDSPACE shall provide the WORLDSPACE Service for a minimum
period of twelve (12) years from the Effective Date. 
  

 21 

 10. POST-TERMINATION 
  
 10.1 Cessation of Use. Following any expiration or termination of this Agreement, BPL will (i) stop using the
WORLDSPACE Marks, (ii) stop using any of the WORLDSPACE Information, and (iii) immediately provide WORLDSPACE with all documents (including copies) in BPL’s possession containing any WORLDSPACE Information; provided that BPL may continue to
exercise its rights hereunder to the extent reasonably necessary to fulfill any binding commitments existing as of the date of expiration or termination, or to otherwise liquidate BPL’s inventory of WORLDSPACE Receivers on hand as of the date
of expiration or termination, subject in all cases to BPL’s obligation to abide by the quality standards imposed by this Agreement, and to pay royalties as provided herein. 
  
 10.2 Accrued Liability. Following any expiration or termination of this Agreement, neither Party will have any
further rights or obligations hereunder except that: (i) such expiration or termination will not relieve either Party of any liability accrued prior to such expiration or termination; and (ii) such expiration or termination will not affect the
continued operation or enforcement of any provision of this Agreement which by its express terms or by reasonable implication is to survive any expiration or termination. 
  
 11. ASSIGNMENT 
  
 Neither Party will assign this Agreement without the other Party’s prior consent, which will not be unreasonably withheld, except that either Party
may freely assign this Agreement to any of its Affiliates. 
  
 12. SETTLEMENT OF DISPUTES 
  
 12.1 Amicable
Resolution. The Parties will endeavor to resolve amicably any dispute arising out of this Agreement within thirty (30) days of receipt of notice of such dispute. If the Parties are unable to resolve such dispute within thirty (30) days, then
they may refer the dispute to an independent third party who will, within a further thirty (30) days, review the dispute and recommend a resolution thereto. If the Parties cannot agree on such third party, or either Party disagrees with such third
party’s recommendation, then Article 12.2 will apply. 
  
 12.2 Formal Arbitration. 
  
 12.2.1 All disputes arising in connection with this Agreement not resolved pursuant to Article 12.1 will be finally settled under the Arbitration and Conciliation Act of 1996 by one or more arbitrators appointed in accordance with such Act.
If there is any conflict between the Act and this Agreement, the provisions of this Agreement will govern. 
  
 12.2.2 The arbitration proceedings will take place in Bangalore and will be in English. 
  
 12.2.3 Nothing in this Article 12 will preclude either Party
from seeking equitable relief from a court for the other Party’s breach of its obligations set forth in Article 6. 
  
 12.2.4 Pending a decision by the arbitrators as referred to in this Article 12, each Party will, unless the other otherwise directs,
fulfill all of its obligations hereunder, including, to the extent reasonably practical, the obligation to take steps 

  

 22 

 
necessary during the arbitration proceedings to ensure that the Work will be delivered within the time stipulated or within such extended time as may be
allowed. 
  
 13. GENERAL PROVISIONS 
  
 13.1 Required Permits and Licenses. BPL will obtain and pay for any
permits and the like relating to the sale of the WORLDSPACE Receivers; provided that WORLDSPACE will cooperate as necessary in such efforts. The Parties will comply with all applicable export compliance laws. 
  
 13.2 Notices. All communications hereunder will be given in English by
letter, facsimile or E-mail directed, 
  
 in respect of WORLDSPACE
to: 
  
 WorldSpace India Private Limited

 Shankarnarayana Towers, 9th Floor 
 25/2, M. G. Road 
 Bangalore – 560 001 
 India 
  

			
	 Attention:
	  	D. Venugopal – Vice President, Operations
	 Telephone:
	  	+91-80-532 1955-59
	 Facsimile:
	  	+91-80-509 5457/559 5182
	 E-mail:
	  	dvenugopal@worldspace.com

  
 and in respect of BPL
to: 
  
 BPL Limited 
 BPL Towers 
 13, Kasturba Road 
 Bangalore – 560 001 
 India 
  

			
	 Attention:
	  	L.H. Bhatia – Director, Sales
	 Telephone:
	  	+91-80-227 0071
	 Facsimile:
	  	+91-80-221 3929
	 E-mail:
	  	lh.bhatia@bplmail.com

  
 or such other addresses as either
Party may have previously specified in the manner set forth above. 
  
 13.3 Amendment. Except as otherwise specifically provided herein, this Agreement may be modified only by the Parties’ duly authorized representatives in a writing stating that the modification is an “Amendment to the
Standard WorldSpace Receiver Development, Production, Marketing and License Agreement.” 
  
 13.4 Non-Waiver. If at any time a Party elects not to assert its rights under any provision of this Agreement, it will not be construed as a waiver of any of its rights hereunder. 
  

 23 

 13.5 Governing Law. This Agreement will be governed by the laws of India, without giving effect to
its conflicts of law provisions. 
  
 13.6 Governmental
Approvals. This Agreement will not be effective until it has received any necessary governmental or other administrative approvals. If any such necessary approval has not been obtained within ninety (90) days following the Effective Date, this
Agreement will be void, as if it had never been signed. 
  
 13.7
Severability. Should any part of this Agreement be held unenforceable in any jurisdiction, the validity of the remaining parts will not be affected. 
  
 13.8 Entire Agreement. This Agreement embodies the Parties’ entire understanding related to the subject matter hereof and supersedes any prior
agreements or understandings between the Parties relating hereto, except that information that has been disclosed pursuant to the Confidentiality Agreement that the Parties previously entered into will henceforth be treated as though disclosed under
this Agreement. 
  
 13.9 Force Majeure. 
  
 13.9.1 Neither Party will be liable to the other for any
failure of, or delay in, its performance hereunder due to causes beyond its reasonable control, including acts of God, war, labor disputes, government intervention and catastrophic phenomena such as fire, flood, and earthquake. 
  
 13.9.2 For a Party to claim Force Majeure hereunder, it must
notify the other Party within five (5) days of the commencement of the Force Majeure, detailing the cause of the Force Majeure, the date the Force Majeure began, and the anticipated length of the Force Majeure. If: (i) the notice provides that the
Force Majeure will last for more than sixty (60) days; and (ii) the Force Majeure in fact lasts for more than sixty (60) days, the Party not claiming the Force Majeure may terminate this Agreement by written notice to the other Party. 
  
 13.10 Attorney’s Fees. If a dispute arises regarding this
Agreement, the prevailing Party will be entitled to reasonable attorney’s fees and costs incurred. 
  
 13.11 Captions. The captions contained in this Agreement are inserted for convenience of reference only and will not in any way affect the
interpretation of the provisions captioned. 
  
 13.12 Governing
Language. The official language of this Agreement is the English language and all notices, reports, orders, instructions, literature, records and other written materials pertaining to this Agreement will be maintained and delivered in the
English language.  
  
 13.13 Execution. This
Agreement may be executed in two signed counterparts, each of which will constitute an original. 
  
 13.14 Press Releases. Neither Party will issue a press release or make any statement to the press related to the subject matter hereof without the
other Party’s prior consent. 
  

 24 

 THE PARTIES, INTENDING TO BE LEGALLY BOUND, have executed this Agreement as of the date first written
above. 
  

									
	WORLDSPACE INDIA PRIVATE LIMITED	 	 	 	BPL LIMITED
					
	By:	 	 /s/    MATHEWKUTTY SEBASTIAN
	 	 	 	By:	 	 /s/    SHASHI NAMBIAR

	 	 	 Mathewkutty Sebastian
	 	 	 	 	 	 Shashi Nambiar

	 	 	 Director
	 	 	 	 	 	 Director

	 	 	 	 	 	 	 	 	 
	 Date:  
	 	December 1, 2000	 	 	 	 Date:  
	 	1/12/2000

  

 25 

 Appendix 1 
  

WorldSpace Coverage Area 

 WorldSpace AfriStar Coverage Area 
 [Map showing footprint of each of the three beams of AfriStar, 
 which beams are shown
covering all of Africa and parts of Europe and Asia] 

 WorldSpace AsiaStar Coverage Area 
 [Map showing footprint of each of the three beams of AsiaStar, 
 which beams are shown
covering all of Asia and small parts of Africa and Australia] 

 WorldSpace AmeriStar Coverage Area 
  
 [Map showing footprint of each of the three beams of AmeriStar, which beams 
 are shown covering all of South America and part of Central America] 

 Appendix 2 
  

Technical Specifications 

 WorldSpace Low Cost Receiver 
  
 Feature Description 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 1.
	 	 Overview
	  	1
	 1.1
	 	 Introduction
	  	1
	 1.2
	 	 Delivery Content
	  	1
			
	 2.
	 	 Physical Requirements
	  	1
	 2.1
	 	 Size (Recommended)
	  	1
	 2.2
	 	 Input Connectors
	  	1
	 2.3
	 	 Output Connectors
	  	1
	 2.4
	 	 Audio out
	  	1
	 2.5
	 	 Battery (Optional)
	  	1
	 2.6
	 	 Display
	  	1
	 2.7
	 	 Buttons and Switches
	  	2
	 2.8
	 	 System Architecture
	  	2
			
	 3.
	 	 Environment and EMI Requirements
	  	2
	 3.1
	 	 Operating Environment
	  	2
	 3.2
	 	 EMI Certification
	  	2
			
	 4.
	 	 Functional Requirements
	  	2
	 4.1
	 	 WorldSpace Signal Reception
	  	2
	 4.2
	 	 Audio support
	  	2
	 4.3
	 	 User Interface
	  	2
	 4.3.1
	 	 Learn Mode
	  	2
	 4.3.2
	 	 BC Manual Scan Mode
	  	3
	 4.3.3
	 	 SC Manual Scan Mode
	  	3
	 4.3.4
	 	 Station Keys
	  	3
	 4.3.5
	 	 Audio Modes
	  	3
	 4.3.6
	 	 Last Station Memory
	  	3
	 4.3.7
	 	 Service Label
	  	3
	 4.3.8
	 	 BCIO Interface
	  	3

	1.	Overview 

  

	1.1	Introduction 

  
 This document describes the requirements of a low cost WorldSpace Receiver. 
  

	1.2	Delivery Content 

  

	 	•	 	Low Cost Receiver 

  

	 	•	 	Antenna 

  

	 	•	 	Instructions for Use 

  

	 	•	 	Packaging 

  

	2.	Physical Requirements 

  

	2.1	Size (Recommended) 

  

			
	Set:	  	approx. 210 x 142 x 60 mm (length x height x depth)
	Antenna:	  	approx. 270 x 122 x 12 mm (height x width x depth, open incl. foot)

  

	2.2	Input Connectors 

  
 The unit provides one input F-Type connector for a WorldSpace antenna input. The antenna shall be a linear Yagi-Type. The antenna supply voltage is
non-switchable .3,0 V. 
  
 The unit provides a DC-input connector
for an external power supply. 
  

	2.3	Output Connectors 

  
 It is recommended that the unit provide a 1/8” stereo headphone jack. 
  
 The unit provides a RJ6 (or RJ11) connector for BC output. Pins BCC, BCD, GND and Vcc of the BCI/O-Interface are used.

  

	2.4	Audio out 

  
 It is recommended that the unit have a mono speaker with good sound performance. 
  

	2.5	Battery (Optional) 

  
 To be powered by 3 “baby cells”. Battery Type Code is R14. (External supply optional). Battery Voltage is displayed. 
  

	2.6	Display 

  
 LC-Display with max. 10 digits (14 segments each) and icons for battery voltage, stereo, encryption, Service Components and receiving quality. First two
digits are used to display the preset station number, following 8 digits are used to display TDM number, BC number, SC Number or Service Label. No back light. Display size approx. 10 cm2. 
  

 1 

	2.7	Buttons and Switches 

  
 1 Slide Switch for power on/off. 
 7 Buttons
for BC up / down, SC up /down, Volume up / down, Station presets. 
  

	2.8	System Architecture 

  
 It is recommended that there be a single PCB-Design containing all interfaces for connectors, LCD, switches and buttons. 
  

	3.	Environment and EMI Requirements 

  

	3.1	Operating Environment 

  

			
	Temperature:	  	0 to 55” C
		
	Humidity:	  	20% to 80% relative humidity, non condensing

  

	3.2	EMI Certification 

  
 It is recommended that the unit have CE-Approval. 
  

	4.	Functional Requirements 

  

	4.1	WorldSpace Signal Reception 

  
 The unit is capable of receiving the WorldSpace-L-band signal. 
  

	4.2	Audio support 

  
 The unit is capable of performing MPEG decoding. Data other than Audio can only be accessed via the BC output connector. The decoded Audio Data is routed
to the built in speaker and the 1/8” stereo headset output. 
  

	4.3	User Interface 

  
 Referred to the following features are supported: 
  

	4.3.1	Learn Mode 

  
 Start Learn Mode by pressing both BC up and SC up for more than 2 sec. 
  

 2 

	4.3.2	BC Manual Scan Mode 

  
 Use buttons BC up and BC down. If the last BC of a TDM is selected and BC up is pressed, the first BC of the next TDM is tuned. 
  

	4.3.3	SC Manual Scan Mode 

  
 Use buttons SC up and SC down. If there is more than I SC available it is displayed to the. user. When tuned to the last SC of a BC, pressing SC up will
tune to the 1st SC of the same BC. 
  

	4.3.4	Station Keys 

  
 10 presets can be stored. Operation to be defined. 
  

	4.3.5	Audio Modes 

  
 The set supports stereo mode on the headset output. 
  

	4.3.6	Last Station Memory 

  
 If the stored station is no longer available, the first available audio SC will be tuned. 
  

	4.3.7	Service Label 

  
 Supported. 
  

	4.3.8	BCIO Interface 

  
 Only BC is output. SC is not forwarded. 
  

 3 

 Appendix 3 
  

STARMANTM Chipset 
  
 “STARMAN Chipset” means a chipset comprising one or more integrated circuits that was manufactured under license from WORLDSPACE, is capable of processing information or data•according to the WORLDSPACE
Format, and: 
  

	 	•	 	Selects any one of a multiplicity of L-band carriers modulated by a TDM digital stream carrying 96 prime rate channels at 16 Kbps each; 

  

	 	•	 	Demodulates and decodes the selected TDM stream to recover the prime rate channels; 

  

	 	•	 	Combines prime rate channels to recover the channel of each broadcaster, 

  

	 	•	 	Delivers each broadcaster’s channel to a digital output for further processing; 

  

	 	•	 	Delivers time slot control channels and service header channels to a digital output for further processing; 

  

	 	•	 	Decodes MPEG 1/2 Audio Layer 3 and MPEG 2.5 Layer 3 broadcaster channels to recover the audio program content; and 

  

	 	•	 	Provides other outputs needed to support the features mutually agreed to with licensed WORLDS PACE Receiver manufacturers. 

  
 One single STARMAN Chipset is a complete set of integrated circuits or a
single integrated circuit necessary for the implementation of the WORLDSPACE Format in a single WORLDSPACE Receiver. 

 Appendix 4 
  

Licensed STARMANTM Chipset Manufacturers 
  

	1.	Micronas GmbH 

  

	2.	STMicroelectronics Sri 

 Appendix 5 
  

FhG Patent Rights 

 Appendix 5 
 FhG Patent Rights 
 1 of 5 
  

													
	 Internal
 Ref.

	  	Priority

	  	 Country

	  	 Application No.

	  	Application Date
DD.MM.YY

	  	Patent No.

	  	Date of Grant
DD.MM,YY

	83/16338	  	 	  	 DE
	  	 33 10 480
	  	23.03.83	  	33 10 480	  	18.09.85
	86/20036	  	 	  	 DE
	  	 36 29 434
	  	29.08.86	  	36 29 434	  	28.07.94
	 	  	36 29 434	  	 AT, BE, CH, DE, DK, FR,
 GB, IT, LU, NL, SE
	  	 87 905 587
	  	29.08.87	  	0 287 578	  	09.08.95
	 	  	36 29 434	  	 US
	  	 071640,550
	  	29.08.87	  	 	  	 
	 	  	36 29 434	  	 JP
	  	 62-505113
	  	29.08.87	  	 	  	 
	 	  	36 29 434	  	 KR
	  	 700459/88
	  	29.08.87	  	 	  	 
	87/21326	  	 	  	 DE
	  	 37 33 772
	  	06.10.87	  	37 33 772	  	30.09.93
	 	  	37 33 772	  	 AT, BE, CH/LI, DE, DK, ES,
 FR, GB, GR, IT, LU, MC, NL, SE
	  	 EP 89 901 959
	  	06.10.88	  	340 301	  	16.06.93
	 	  	37 33 772	  	 US
	  	 347,806
	  	06.10.88	  	 	  	 
	 	  	37 33 772	  	 JP
	  	 63-507841
	  	06.10.88	  	 	  	 
	 	  	37 33 772	  	 KR
	  	 701020/89
	  	 	  	 	  	 
	further Prio
No.	  	37 33 786	  	 DE
	  	 37 33 786
	  	06.10.87	  	37 33 786	  	15.03.90
	87/20959	  	 	  	 DE
	  	 37 33 786
	  	06.10.88	  	37 33 786	  	 
	88/21718	  	38 05 946	  	 DE
	  	 39 901 51
	  	25.02.89	  	 	  	 
	 	  	38 05 946	  	 AT, BE, CHILI, DE, DK, ES,
 FR, GB, GR, IT, LU, MC,NL, SE
	  	 89 902 498
	  	25.02.89	  	362 315	  	23.12.92
	 	  	38 05 946	  	 US
	  	 439,394
	  	25.02.89	  	5,014,318	  	07.05.91
	 	  	38 05 946	  	 JP
	  	 01-502316
	  	25.02.89	  	 	  	 
	 	  	38 05 946	  	 KR
	  	 701960/89
	  	25.02.89	  	 	  	 
	88/21759	  	 	  	DE	  	38 06 416	  	29.02.88	  	38 06 416	  	18.07.89

  
  

 Appendix 5 
 FhG Patent Rights 
 2 of 5 
  

													
	 Internal
 Ref.

	  	Priority

	  	 Country

	  	 Application No.

	  	Application Date
DD.MM.YY

	  	Patent No.

	  	Date of Grant
DD.MM,YY

	89/22936	  	 	  	DE	  	39 12 605	  	17.04.89	  	 	  	 
	 	  	39 12 605	  	 AT, BE, CH/LI, DE, DK,
 ES, FR, GB, GR, IT, LU, NL, SE
	  	90 107 082	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	US	  	07/786/239	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	JP	  	02-505932	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	NO	  	913931	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	FI	  	914886	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	KR	  	701385/91	  	12.04.90	  	 	  	 
	 	  	39 12 605	  	RU	  	5010281/24	  	12.04.90	  	 	  	 
	89/30749	  	36 12 605	  	 AT, BE, CH/LI, DE, DK,
 ES, FR, GB, GR, IT, LU, NL, SE
	  	 94 106 503.9
 division from
 90 107 082
	  	12.04.90	  	 	  	 
	90/24281	  	40 34 017	  	DE, BE, FR, GB, NL	  	91 918 111.5	  	25.10.91	  	0 544 290	  	01.02.95
	 	  	40 34 017	  	US	  	08,039,478	  	25.10.91	  	5,455,833	  	03.10.95
	91/24947	  	 	  	DE	  	41 34 420	  	17.10.91	  	41 34 420	  	03.12.92
	 	  	41 34 420	  	AU	  	9226725	  	06.10.92	  	660052	  	08.06.95
	 	  	41 34 420	  	CA	  	2,118,915	  	06.10.92	  	 	  	 
	 	  	41 34 420	  	 AT, BE, CH/LI, DE, DK,
 ES, FR, GB, GR, IT, NL, SE
	  	92 920 812.2-2211	  	06.10.92	  	0 608 281	  	21.06.95
	 	  	41 34 420	  	JP	  	5-507340	  	06.10.92	  	 	  	 
	 	  	41 34 420	  	KR	  	700973/1994	  	06.10.92	  	 	  	 
	 	  	41 34 420	  	NO	  	940767	  	06.10.92	  	 	  	 
	 	  	41 34 420	  	RU	  	94019963.00	  	06.10.92	  	 	  	 
	 	  	41 34 420	  	US	  	08/211,547	  	13.10.92	  	 	  	 

  
  

 Appendix 5 
 FhG Patent Rights 
 3 of 5 
  

													
	 Internal
 Ref.

	  	Priority

	  	 Country

	  	 Application No.

	  	Application Date
DD.MM.YY

	  	Patent No.

	  	Date of Grant
DD.MM,YY

	 91/24967
	  	 	  	DE	  	41 36 825	  	08.11.91	  	41 36 825	  	18.03.93
	 	  	41 36 825	  	AU	  	9227599	  	13.10.92	  	659228	  	11.05.95
	 	  	41 36 825	  	CA	  	2,118,916	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	 AT, BE, CH/LI, DE, DK,
 ES, FR, GB, GR, IT, NL, SE
	  	92 921 326.2	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	JP	  	5-508077	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	KR	  	700973/1994	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	NO	  	940935	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	RU	  	94020727.00	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	US	  	08/211,547	  	13.10.92	  	 	  	 
	 	  	41 36 825	  	UA	  	pending	  	13.10.92	  	 	  	 
	 92/30022
	  	 	  	DE	  	42 09 382	  	23.03.92	  	42 09 382	  	20.10.92
	 	  	42 09 382	  	AU	  	36254/93	  	25.02.93	  	670068	  	17.05.96
	 	  	42 09 382	  	CA	  	2,131,806	  	25.02.93	  	 	  	 
	 	  	42 09 382	  	EP	  	93 905 148	  	25.02.93	  	 	  	 
	 	  	42 09 382	  	JP	  	5-516 152	  	25.02.93	  	 	  	 
	 	  	42 09 382	  	KR	  	703290/1994	  	25.02.93	  	 	  	 
	 	  	42 09 382	  	NO	  	P 943520	  	25.02.93	  	 	  	 
	 	  	42 09 382	  	US	  	08 307 664	  	25.02.93	  	 	  	 
	 92/30084
	  	 	  	DE	  	42 21 125	  	26.06.92	  	42 21 125	  	13.06.96
	 92/30090
	  	 	  	DE	  	42 17 276	  	25.05.92	  	42 17 276	  	08.04.93
	 	  	42 17 276.4	  	AU	  	40593/93	  	18.05.93	  	 	  	 
	 	  	42 17 276.4	  	CA	  	2,118,402	  	18.05.93	  	 	  	 
	 	  	42 17 276.4	  	JP	  	6-5000080	  	18.05.93	  	 	  	 
	 	  	42 17 276.4	  	KR	  	704089/1994	  	18.05.96	  	 	  	 

 Appendix 5 
 FhG Patent Rights 
 4 of 5 
  

													
	 Internal Ref.

	  	 Priority

	  	 Country

	  	 Application No.

	  	 Application Date
DD.MM.YY

	  	 Patent No.

	  	 Date of Grant
DD.MM,YY

	 	  	42 17 276.4	  	NO	  	944285	  	18.05.93	  	 	  	 
	 	  	42 17 276.4	  	RU	  	9227599	  	13.10.92	  	659228	  	11.05.95
	 	  	42 17 276.4	  	UA	  	2,118,916	  	13.10.92	  	 	  	 
	 	  	42 17 276.4	  	AT, BE, CH/LI, DE, FR, GB, NL	  	93 909 786/1	  	18.05.93	  	0 642 719	  	11.09.96
	 92/30102
	  	 	  	DE	  	42 24 786	  	27.07.92	  	 	  	 
	 	  	42 24 786	  	AU, CA, EP, JP, KR, NO, RU, UA, US	  	PCT/DE93/00611	  	06.07.93	  	 	  	 
	 92/30/124
	  	 	  	DE	  	42 22 150	  	06.07.92	  	42 22 150	  	09.06.94
	 92/30253
	  	 	  	DE	  	42 36 989	  	02.11.02	  	42 36 989	  	17.11.94
	 	  	42 36 989	  	US	  	08/428/235	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	AU	  	5332/94	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	CA	  	2,148,447	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	JP	  	06-510567	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	KR	  	701732/95	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	NO	  	951549	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	RU	  	95 112 670	  	02.11.93	  	 	  	 
	 	  	42 36 989	  	EP	  	42 44 888	  	02.11.93	  	 	  	 
	 92/31346
 (92/30253)
	  	 	  	DE	  	 42 22 888
 division from
 42 36989.4
	  	02.11.94	  	 	  	 
	 93/30386
	  	 	  	DE	  	43 16 297	  	14.05.93	  	43 16 297	  	07.04.94
	 	  	43 16 297	  	DE, FR, GB, NL, DK, PT	  	94 107 229.0	  	09.05.94	  	 	  	 
	 	  	43 16 297	  	US	  	98/241,851	  	12.05.94	  	 	  	 
	 93/30536
	  	 	  	DE	  	43 31 376	  	15.09.93	  	43 31 376	  	10.11.94

 Appendix 5 
 FhG Patent Rights 
 5 of 5 
  

													
	 Internal Ref.

	  	 Priority

	  	 Country

	  	 Application No.

	  	 Application Date
DD.MM.YY

	  	 Patent No.

	  	 Date of Grant
DD.MM,YY

	 	  	43 31 376	  	AU, CA, EP, JP, KR, NO	  	PCT/EP94/02250	  	08.07.94	  	 	  	 
	 	  	43 45 171.3	  	RU, UA, US	  	 	  	 	  	 	  	 
	 93/30744
	  	42 17 276.4	  	DE	  	43 45 171	  	15.09.93	  	43 43 171	  	01.02.96
	 94/30668
	  	 	  	DE	  	44 05 659	  	22.02.94	  	 	  	 
	 	  	P 44 05 659.1	  	AU, CA, EP, JP, US	  	PCT/EP94/03478	  	21.10.94	  	 	  	 
	 94/30698
	  	 	  	DE	  	44 09 368	  	18.10.94	  	 	  	 
	 	  	P 44 09 368.3	  	 AU, CA, EP, JP, KR,
 NO, RU, UA, US
	  	PCT/EP95/0378	  	02.02.95	  	 	  	 
	 94/30841
	  	 	  	DE	  	44 37 287	  	18.10.94	  	 	  	 
	 	  	P 44 37 287.6	  	EP, AU, CN, JP,KR, US	  	PCT/EP95/04008	  	11.10.95	  	 	  	 
	 94/31004
	  	 	  	DE	  	195 05 435	  	17.02.95	  	 	  	 
	 	  	195 05 435.0	  	EP, JP, KR, US	  	PCT/EP96/00550	  	09.02.96	  	 	  	 
	 96/32104
	  	 	  	DE	  	196 13 643.1	  	04.04.96	  	 	  	 

 Appendix 6 
  

WORLDSPACE Patent Rights 

 Appendix 6 
  

WORLDSPACE Patent Rights 
  

															
	 COUNTRY

	 	REFERENCE#

	  	TYPE

	  	FILED

	  	SERIALS

	  	ISSUED

	  	PATENT#

	  	STATUS

	 SATELLITE DIRECT RADIO BROADCAST SYSTEM

	 UNITED ARAB EMR
	 	34147	  	CEQ	  	12/08/1996	  	191196	  	 	  	 	  	PENDING
	 UNITED ARAB EMR
	 	37275	  	CEQ	  	11/12/1998	  	275/98	  	 	  	 	  	PENDING
	 ARIPO
	 	35937	  	DCA	  	12/06/1996	  	AP/P/98/01256	  	12131/1999	  	AP792	  	ISSUED
	 ARIPO
	 	40107	  	DCA	  	11/06/1998	  	AP/P/00/01806	  	 	  	 	  	PENDING
	 ARGENTINA
	 	34124	  	CEQ	  	12/09/1996	  	96 01 05566	  	 	  	 	  	PUBLISHED
	 ARGENTINA
	 	37247	  	CEQ	  	11/12/1998	  	980105718	  	 	  	 	  	PENDING
	 AUSTRALIA
	 	35938	  	DCA	  	12/06/1996	  	1143497	  	03/02/2000	  	713024	  	ISSUED
	 AUSTRALIA
	 	40108	  	DCA	  	11/06/1998	  	13832199	  	 	  	 	  	PENDING
	 BANGLADESH
	 	34152	  	CEQ	  	12/07/1996	  	146/96	  	12108/1995	  	1002849	  	ISSUED
	 BANGLADESH
	 	34152A	  	DIV	  	06/16/1998	  	93/98	  	12/08/1995	  	1002850	  	ISSUED
	 BOLIVIA
	 	34140	  	CEQ	  	12/06/1996	  	TEMP	  	 	  	 	  	PENDING
	 BOLIVIA
	 	37323	  	CEQ	  	11/11/1998	  	15195	  	 	  	 	  	PENDING
	 BRAZIL
	 	35939	  	DCA	  	12/06/1996	  	P19611882-2	  	 	  	 	  	PENDING
	 BRAZIL
	 	40109	  	DCA	  	11/06/1998	  	PCT/US98/23595	  	 	  	 	  	PENDING
	 CANADA
	 	35940	  	DCA	  	12/06/1996	  	2,238,641	  	 	  	 	  	PENDING
	 CANADA
	 	40110	  	DCA	  	11/06/1998	  	2,309,683	  	 	  	 	  	PENDING
	 DEM REP OF CONGO
	 	34153	  	CEQ	  	12/06/1996	  	NP/23/EXT/96	  	05/16/1997	  	9613479	  	ISSUED
	 CHILE
	 	34125	  	CEQ	  	12/06/1996	  	2171-96	  	 	  	 	  	PENDING
	 CHILE
	 	37324	  	CEQ	  	11/11/1998	  	2736-98	  	 	  	 	  	PUBLISHED
	 CHINA
	 	35941	  	DCA	  	12/06/1996	  	96198900.9	  	 	  	 	  	PUBLISHED
	 CHINA
	 	40111	  	DCA	  	11/06/1998	  	PCT/US98/23595	  	 	  	 	  	PENDING
	 COLOMBIA
	 	34126	  	CEQ	  	12/27/1996	  	96067943	  	 	  	 	  	PUBLISHED
	 COLOMBIA
	 	37258	  	CEQ	  	11/05/1998	  	98065215	  	 	  	 	  	PENDING
	 COSTA RICA
	 	34141	  	CEQ	  	12/09/1996	  	TEMP	  	 	  	 	  	PENDING
	 CUBA
	 	35962	  	DCA	  	12/06/1996	  	70198	  	 	  	 	  	PENDING
	 CZECH REPUBLIC
	 	35942	  	DCA	  	12/06/1996	  	PV 1705-98	  	 	  	 	  	PUBLISHED
	 CZECH REPUBLIC
	 	40112	  	DCA	  	11/06/1998	  	PV 2000-1724	  	 	  	 	  	PENDING
	 DOMINICAN REPUBLIC
	 	34142	  	CEQ	  	12/06/1996	  	5358	  	1022/1997	  	5358	  	ISSUED
	 ALGERIA
	 	34154	  	CEQ	  	12/08/1996	  	960,184	  	12/07/1996	  	960184	  	ISSUED
	 ALGERIA
	 	37256	  	CEQ	  	11/11/1998	  	980260	  	 	  	 	  	PENDING
	 EURASIAN PATENT
	 	34943	  	DCA	  	12/06/1996	  	199800431	  	 	  	 	  	PUBLISHED
	 EURASIAN PATENT
	 	40113	  	DCA	  	11/06/1998	  	200000518	  	 	  	 	  	PENDING
	 ECUADOR
	 	34139	  	CEQ	  	12/09/1996	  	SP-96-1964	  	12/12/1998	  	PI-98-1470	  	ISSUED
	 EGYPT
	 	34128	  	CEQ	  	12/08/1996	  	1092/96	  	 	  	 	  	PENDING
	 EGYPT
	 	37260	  	CEQ	  	11/14/1998	  	1408/1998	  	 	  	 	  	PENDING
	 EUROPEAN PATENT
	 	35944	  	DCA	  	12/06/1996	  	96942841.6	  	 	  	 	  	PENDING
	 EUROPEAN PATENT
	 	40114	  	DCA	  	11/06/1998	  	98 957612.9	  	 	  	 	  	PUBLISHED
	 ETHIOPIA
	 	34129	  	CEQ	  	 	  	 	  	 	  	 	  	MAILED
	 ETHIOPIA
	 	37259	  	CEQ	  	11/13/1998	  	99100017	  	 	  	 	  	PENDING
	 HONG KONG
	 	35941HK	  	CEQ	  	07/05/1999	  	99102834.8	  	 	  	 	  	PENDING
	 HUNGARY
	 	35945	  	DCA	  	12/06/1996	  	P9903668	  	 	  	 	  	PENDING
	 INDONESIA
	 	34134	  	CEQ	  	12/09/1996	  	P-963652	  	 	  	 	  	PUBLISHED
	 INDONESIA
	 	40115	  	DCA	  	11/06/1998	  	W-20000899	  	 	  	 	  	PENDING
	 ISRAEL
	 	35946	  	DCA	  	12/06/1996	  	124715	  	 	  	 	  	PENDING
	 ISRAEL
	 	40116	  	DCA	  	11/06/1998	  	136095	  	 	  	 	  	PENDING
	 INDIA
	 	34109	  	CEQ	  	12/04/1996	  	2094/CALJ96	  	 	  	 	  	PENDING
	 INDIA
	 	37261	  	CEQ	  	11/12/1998	  	2003CAL98	  	 	  	 	  	PENDING
	 IRAN
	 	34145	  	CEQ	  	03/18/1997	  	37512021	  	07/16/1997	  	25648	  	ISSUED
	 JORDAN
	 	34148	  	CEQ	  	12/07/1996	  	1942	  	03/1011998	  	1942	  	ISSUED
	 JORDAN
	 	37325	  	CEQ	  	11/12/1998	  	2048	  	07/24/1999	  	2048	  	ISSUED
	 JAPAN
	 	35947	  	OCA	  	12/06/1996	  	09-522075	  	 	  	 	  	PENDING
	 JAPAN
	 	40117	  	DCA	  	11/06/1998	  	PCT/US98/23595	  	 	  	 	  	PENDING
	 SOUTH KOREA
	 	35954	  	DCA	  	12/06/1996	  	704368/1998	  	 	  	 	  	PENDING
	 SOUTH KOREA
	 	40118	  	DCA	  	11/06/1998	  	2000-7005256	  	 	  	 	  	PENDING
	 MOROCCO
	 	34130	  	CEQ	  	12/06/1996	  	24.421	  	04/01/1998	  	24244	  	ISSUED
	 MOROCCO
	 	37263	  	CEQ	  	11/13/1998	  	25.344	  	07/01/1999	  	24.698	  	ISSUED
	 MONGOLIA
	 	35949	  	DCA	  	12/06/1995	  	2319	  	 	  	1564	  	ISSUED
	 MEXICO
	 	35948	  	DCA	  	12/06/1996	  	984,474	  	 	  	 	  	PENDING
	 MEXICO
	 	40119	  	DCA	  	11/06/1998	  	004593	  	 	  	 	  	PENDING
	 MALAYSIA
	 	34150	  	CEQ	  	12/06/1996	  	P19605136	  	 	  	 	  	PENDING

 Appendix 7 
  

Licensed WORLDSPACE Marks 

 [Logo] 
  
 WORLDSPACE® 
  
 [Logo] 
  
 WORLDSPACE® 

 [Logo] 
  
 WORLDSPACE 

 III. CORPORATE IDENTITY 
  

A. WorldSpace Corporate Colors 
  

	 	•	 	Color is the foundation of the WorldSpace corporate, regional and brand identity systems; 

  

	 	•	 	Exact color matching is required of all vendors; 

  

	 	•	 	HQ will send you perforated color swatches that are accurate representations of the corporate colors printed on both coated and uncoated paper stocks. Attach a swatch to every piece
of camera-ready artwork or with electronic files sent to a printer. All printers must be capable of and required to match these swatches; 

  

	 	•	 	Never match colors by using previously printed pieces. Protect these swatches from exposure to sunlight; 

  

	 	•	 	When printing four-color material always use the four-color separated signature (logo); 

  
 B. Pantone Matching System (PMS) 
  
 The Pantone Matching System® is a standard in the printing industry. There are no exact color matches for WorldSpace colors in any other printing ink system. 
  

			
	 •      WorldSpace Blue
	 	 Coated: PMS 301 Uncoated: PMS 301

		
	 •      WorldSpace Purple 2602
	 	 Coated: PMS 2593 Uncoated: PMS

		
	 •      WorldSpace Yellow
	 	 Coated: PMS 142 Uncoated: PMS 129

		
	 •      WorldSpace Metallic Silver
	 	 Coated and Uncoated: PMS 877

  
 C. Four Color Process

  

			
	 •      WorldSpace Blue
	 	 100c, 43m, Oy, 18k

		
	 •      WorldSpace Purple
	 	 79c, 100m, Oy, Ok

		
	 •      WorldSpace Yellow
	 	 Oc, 24m, 76y, Ok

		
	 •      WorldSpace Metallic Silver
	 	 There is no process equivalent.

		
	 	 	 Converting to grayscale for four color process is unacceptable.

  
 D. Greyscale Usage 

 
 In rare instances, the WorldSpace logo will be printed in greyscale.
Examples include newspapers, one-color programs and similar publications. 
  
 Never use the greyscale WorldSpace signature on a dark or black background. If it must set on a dark field, place within a white bounding box. WorldSpace Signature (Logo) 

 E. WorldSpace Signature (Logo) 
  
 General outline and description: 
  

	 	•	 	The embodiment of our structure, goals, and ideals; 

  

	 	•	 	Balance: three points define the most stable structure; 

  

	 	•	 	Harmony: between our humanitarian ideals and our fiscal responsibilities. 

  
 The WorldSpace Signature (Logo) consists of: 
  

	 	•	 	The WorldSpace Icon (three orbits and a central hub); 

  

	 	•	 	The WorldSpace Logotype set in Frutiger Condensed, the official WorldSpace typeface. 

  
 F. Alterations 
  
 There shall be NO alterations to any file to change color,. size or placement. Only the following versions have been officially approved. When scaling the
logo for layout it must be done proportionally and the “Icon” must not be reduced to less than ONE INCH. 
  
 G. File Format 
  
 Please keep the logoart in the same file format it was created in. The WorldSpace logo is an Adobe Illustrator EPS file. There is no reason to convert
this file into any other format for printing purposes (NO Photothop bitmap or tiff). Illustrator EPS files are vector based, meaning that they can be scaled to any size without losing their resolution. There is also no need for a clipping path -
the. logo and type will be automatically silhouetted. 
  
 H. WorldSpace Icon

  
 The immediately identifiable WorldSpace Icon: 

 

	 	•	 	Three interlocking “orbits” clearly represent the three WorldSpace satellites and coverage areas, with a central hub representing both Earth and our listeners;

  

	 	•	 	The icon never appears alone upon first viewing, but may be used alone after the full WorldSpace Signature has been established (i.e., second page letterhead; presentation screens,
etc.); 

  

	 	•	 	The icon must appear in its entirety; 

  

	 	•	 	Do not show the arcs or hub alone; 

  

	 	•	 	Do not bleed the icon off of a page or screen; 

  

	 	•	 	Do not rotate the icon. 

  
 I. Color 
  
 The center
sphere, or “hub,” is always blue - the same blue as the blue arc. The colors of the arcs cannot be switched or altered. 
  

 2 

 J. WorldSpace Logotype 
  

The Logotype of our organization is WorldSpace. “WorldSpace” is always spelled with a capital “W” and a capital “S.” This
word should always appear as Frutiger Bold Condensed. 
  
 The
word WorldSpace as it appears in our logo is a Logotype’ that is set with specific letter spacing and baseline adjustments. DO NOT alter or recreate the WorldSpace Logotype. 
  
 The Logotype shall always print black or in reversed color “white”-on dark backgrounds. 
  
 Usage as a company name in copy 
  

	 	•	 	Never use “WorIdSpace” as a possessive 

  

	 	•	 	Correct: The WorldSpace coverage area; 

  

	 	•	 	Incorrect: WorldSpace’s coverage area. 

  
 K. Position of Registration Mark 
  
 Size: The ® mark shall be one-half the size of the “hub” diameter. Placement: On lower right side of the Logotype. The top of the “R” should rest on the baseline of the text and
be spaced one-half the hub diameter from the “E” in the Logotype. The WorldSpace registration mark shall always print black. 
  
 L. 2D vs. 3D. No 3D Usage Accepted in Part or in Whole. 
  
 The WorldSpace 3D logo shall NOT BE USED in any way shape or form. In the early development of WorldSpace, a 3D version of the logo had been developed. If
you or someone you know has a copy, please remove it from you computer. 
  
 M.
Area of Isolation 
  
 In order to maintain the integrity of
the logo, WorldSpace requires that an area of isolation be maintained. Copy, other than the positioning line and division names, may fall no closer than 2 hubs from all points of the logo. 
  
 N. WorldSpace Typefaces 
  
 The “Frutiger” family 
  

	 	•	 	A Sans Serif face used...logo, headlines, and body-copy; 

  
 The “Minion” family 
  

	 	•	 	A Serif face used spec’d and approved for headlines and body-copy only. 

  

 

 3 

 O. Background Color Usage 
  
 The WorldSpace logo is most effective against a white, black, PMS 877 silver background or any of the colors in the
complementary palette. Avoid high contrast ring backgrounds; they interfere with legibility. Avoid any solid color with a value too close to any of the three logo colors. 
  
 P. Reversed Color Usage 
  
 Rules for using the WorldSpace Signature on a dark background: 
  

	 	•	 	Icon: all colors of the icon remain the same; 

  

	 	•	 	Logotype (logotype); 

  
 The word “WorldSpace” becomes white ONLY. 
  

 4 

 Appendix 8 
  

Work Schedule 
  

			
	 MILESTONE:

	 	 COMPLETION DATE

	 1.      Completion of product concept sketch
	 	December 2000
		
	 2.      Completion of engineering sample (mock-up and working boards)
	 	 Mock-up – December 2000
 Tool Design – January
2001
 Tool Manufacture – Feb. 2001
 Prototype – March
2001

		
	 3.      Completion of working model with final styling (design review)
	 	March 31, 2001
		
	 4.      Submission of final production prototype (evaluation sample) and WORLDSPACE approval (type
approval)
	 	April 30, 2001

 Appendix 9 
  

Standard Testing Rates 
  

			
	 1.      Test fee for first WORLDSPACE Receiver of a particular type submitted by BPL pursuant to Article 2.6.1
of this Agreement:
	  	$5,000
		
	 2.      Test fee for each additional WORLDSPACE Receiver of that type submitted by BPL pursuant to Article 2.6.1
of this Agreement:
	  	$1,250

 Appendix 10 
  
 BPL Marks 
  
 All trade marks and logos with the combination of the letters BPL registered and pending registration before the Trade Mark Registry. 

															
	 COUNTRY

	 	 REFERENCE#

	  	 TYPE

	  	 FILED

	  	 SERIALS

	  	 ISSUED

	  	 PATENT#

	 	 STATUS

	 ISRAEL
	 	38542	  	DCA	  	10/31/1997	  	129638	  	 	  	 	 	PENDING
	 INDIA
	 	35299	  	CEQ	  	10/23/1997	  	1999CAL97	  	 	  	 	 	PENDING
	 IRAN
	 	35300	  	CEQ	  	01/29/1998	  	37610011-16	  	04/21/1998	  	25851	 	ISSUED
	 JAPAN
	 	38543	  	DCA	  	10/31/1997	  	10-521536	  	 	  	 	 	PENDING
	 SOUTH KOREA
	 	38547	  	DCA	  	10/31/1997	  	1999-7004036	  	 	  	 	 	PENDING
	 MOROCCO
	 	35302	  	CEQ	  	11/03/1997	  	24854	  	07/01/1998	  	24.392	 	ISSUED
	 MEXICO
	 	38544	  	DCA	  	10/31/1997	  	994159	  	 	  	 	 	PENDING
	 MALAYSIA
	 	35301	  	CEQ	  	10/22/1997	  	PI9704983	  	 	  	 	 	PENDING
	 NIGERIA
	 	35303	  	CEQ	  	11/04/1997	  	331/97	  	 	  	 	 	PENDING
	 AFRICAN UNION
	 	38538	  	DCA	  	10/31/1997	  	PV9900094	  	 	  	 	 	PENDING
	 PANAMA
	 	35305	  	CEQ	  	11/05/1997	  	PVPA97/084412	  	 	  	 	 	PUBUSHED
	 PERU
	 	35306	  	CEQ	  	11/03/1997	  	982197	  	 	  	 	 	PENDING
	 PHILIPPINES
	 	35307	  	CEQ	  	11/04/1997	  	I-58397	  	 	  	 	 	PENDING
	 PAKISTAN
	 	35304	  	CEQ	  	10/24/1997	  	841/97	  	—  	  	136114	 	ISSUED
	 PAKISTAN
	 	35304A	  	DIV	  	07/17/1997	  	615/99	  	07/2000	  	136125	 	ISSUED
	 POLAND
	 	38545	  	DCA	  	10/31/1997	  	P333799	  	 	  	 	 	PENDING
	 SAUDI ARABIA
	 	35308	  	CEQ	  	11/18/1998	  	98 19 0783	  	 	  	 	 	PENDING
	 SINGAPORE
	 	38546	  	DCA	  	10/31/1997	  	9902517-8	  	 	  	 	 	PENDING
	 TANGIERS
	 	35302TA	  	CEQ	  	11/03/1997	  	1504	  	 	  	 	 	PENDING
	 THAILAND
	 	35311	  	CEQ	  	10/24/1997	  	040324	  	 	  	 	 	PUBUSHED
	 TURKEY
	 	38549	  	DCA	  	10/31/1997	  	1999/01741	  	 	  	 	 	PENDING
	 TURKEY
	 	38549A	  	DIV	  	10/31/1997	  	2000/00847	  	 	  	 	 	PENDING
	 TURKEY
	 	385498	  	DIV	  	10/31/1997	  	2000/00846	  	 	  	 	 	PENDING
	 TRINIDAD & TOBAGO
	 	38548	  	DCA	  	10/31/1997	  	PCT/U97/19631	  	 	  	 	 	PENDING
	 TAIWAN
	 	35310	  	CEQ	  	11/11/1997	  	86116897	  	 	  	110701	 	ISSUED
	 UNITED STATES
	 	33877A	  	NEW	  	11/05/1996	  	08/746,019	  	02/02/1999	  	5,867,490	 	ISSUED
	 VENEZUELA
	 	35313	  	CEQ	  	11/04/1997	  	2214-97	  	 	  	 	 	PENDING
	 WIPO
	 	35319	  	CEQ	  	10/31/1997	  	PCT/US97/19631	  	 	  	 	 	NAT PHASE
	 SOUTH AFRICA
	 	35309	  	CEQ	  	10/27/1997	  	97/9606	  	07/28/1999	  	97/9606	 	ISSUED
	
	SATELLITE DIRECT RADIO BROADCAST RECEIVER FOR EXTRACTING A ‘BROADCAST CHANNEL AND SERVICE CONTROL HEADER FROM TIME DIVISION MULTIPLEXED TRANSMISSIONS (AS
AMENDED)
	 UNITED STATES
	 	33877B	  	NEW	  	11/05/1996	  	08/746,067	  	02/09/1999	  	5,870,390	 	ISSUED
	
	SYSTEM FOR FORMATTING BROADCAST DATA FOR SATELLITE TRANSMISSION AND RADIO RECEPTION
	 UNITED STATES
	 	33877C	  	NEW	  	11/05/1996	  	08/746,020	  	5,864,546	  	5,864,546	 	ISSUED
	
	SYSTEM FOR MANAGING SPACE SEGMENT USAGE AMONG BROADCAST SERVICE PROVIDERS
	 UNITED STATES
	 	33877D	  	NEW	  	11/05/1996	  	08/746,069	  	 	  	 	 	PENDING
	
	SATELLITE PAYLOAD PROCESSING SYSTEM FOR SWITCHING UPLINK SIGNALS TO TIME DIVISION MULTIPLEXED DOWNLINKED SIGNAL
	 UNITED STATES
	 	33877E	  	NEW	  	11/05/1996	  	08/146,070	  	 	  	 	 	ABANDONED
	 UNITED STATES
	 	37717	  	CON	  	02/16/1999	  	09/250,263	  	 	  	 	 	PENDING
	
	SATELLITE PAYLOAD PROCESSING SYSTEM USING POLYPHASE DEMULTIPLEXING AND QUADRATURE PHASE SHIFT KEYING DEMODULATION
	 UNITED STATES
	 	338T7F	  	NEW	  	11/05/1996	  	08/746,071	  	 	  	 	 	ABANDONED
	 UNITED STATES
	 	38157	  	CON	  	03/09/1999	  	09/265,537	  	 	  	 	 	PENDING
	
	SATELLITE PAYLOAD PROCESSING SYSTEM PROVIDING ON-BOARD RATE ALIGNMENT
	 UNITED STATES
	 	33877G	  	NEW	  	11/05/1996	  	08/746,072	  	082212000	  	6,108,319	 	ISSUED
	
	 A YAGI ANTENNA COUPLED WITH A LOW NOISE AMPLIFIER ON THE SAME PRINTED CIRCUIT BOARD

	 UNITED STATES
	 	40465	  	NEW	  	06/29/2000	  	TEMP	  	 	  	 	 	PENDING

															
	 COUNTRY

	  	 REFERENCE#

	  	 TYPE

	  	 FILED

	  	 SERIALS

	  	 ISSUED

	  	 PATENT#

	 	 STATUS

	 MALAYSIA
	  	37262	  	CEQ	  	10/29/1998	  	PI 9804944	  	 	  	 	 	PENDING
	 NIGERIA
	  	34131	  	CEQ	  	12/06/1996	  	289196	  	03/20/1997	  	RP 12,604	 	ISSUED
	 NIGERIA
	  	37265	  	CEQ	  	 	  	 	  	 	  	 	 	MAILED
	 NEW ZEALAND
	  	35950	  	DCA	  	12/06/1996	  	324,563	  	12/16/1998	  	324,563	 	ISSUED
	 AFRICAN UNION
	  	35951	  	DCA	  	12/06/1996	  	PV98100073	  	 	  	10793	 	ISSUED
	 AFRICAN UNION
	  	40120	  	DCA	  	11/06/1998	  	1200000135	  	 	  	 	 	PENDING
	 PANAMA
	  	34138	  	CEQ	  	12/10/1996	  	PUPA96164234	  	 	  	 	 	PUBLISHED
	 PANAMA
	  	37257	  	CEQ	  	11/13/1998	  	PUPA98184633	  	 	  	 	 	PENDING
	 PERU
	  	34137	  	CEQ	  	12/19/1996	  	34137	  	 	  	 	 	PENDING
	 PERU
	  	37269	  	CEQ	  	11/10/1998	  	1082.98 O1T	  	 	  	 	 	PENDING
	 PHILIPPINES
	  	34135	  	CEQ	  	12/06/1996	  	54,973	  	 	  	 	 	PENDING
	 PHILIPPINES
	  	37270	  	CEQ	  	11/13/1998	  	1-1998-02988	  	 	  	 	 	PENDING
	 PAKISTAN
	  	34151	  	CEQ	  	12/07/1996	  	745196	  	 	  	 	 	PENDING
	 PAKISTAN
	  	37266	  	CEQ	  	10/28/1998	  	1103198	  	 	  	 	 	PENDING
	 POLAND
	  	35952	  	DCA	  	12/06/1996	  	P 327068Q	  	 	  	 	 	PENDING
	 POLAND
	  	40121	  	DCA	  	11/06/1998	  	P-340492	  	 	  	 	 	PENDING
	 PARAGUAY
	  	34143	  	CEQ	  	12/06/1996	  	112	  	06/26/2000	  	3.949	 	ISSUED
	 SAUDI ARABIA
	  	34146	  	CEQ	  	02/24/1997	  	97170647	  	 	  	 	 	PENDING
	 SAUDI ARABIA
	  	37271	  	CEQ	  	05/04/1999	  	99 20 0067	  	 	  	 	 	PENDING
	 SINGAPORE
	  	35953	  	DCA	  	12/06/1996	  	9803224	  	 	  	 	 	PENDING
	 SINGAPORE
	  	40122	  	DCA	  	11/06/1998	  	200002591-6	  	 	  	 	 	PENDING
	 SYRIA
	  	34149	  	CEQ	  	12/08/1996	  	18242411	  	 	  	 	 	ABANDONED
	 TANGIERS
	  	34130TA	  	CEQ	  	12/06/1996	  	1422	  	 	  	 	 	PENDING
	 TANGIERS
	  	37264	  	CEQ	  	11/13/1998	  	1670	  	 	  	 	 	PENDING
	 THAILAND
	  	34133	  	CEQ	  	12/06/1996	  	034630	  	 	  	 	 	PUBLISHED
	 THAILAND
	  	37274	  	CEQ	  	10/16/1998	  	046639	  	 	  	 	 	PUBLISHED
	 TURKEY
	  	35956	  	DCA	  	12/06/1996	  	98100997	  	03/22/1999	  	TR19980099	 	ISSUED
	 TURKEY
	  	40124	  	DCA	  	11/06/1998	  	2000/01351	  	 	  	 	 	PENDING
	 TRINIDAD & TOBAGO
	  	35955	  	DCA	  	12/06/1996	  	302,834	  	 	  	 	 	PENDING
	 TRINIDAD & TOBAGO
	  	40123	  	DCA	  	11/06/1998	  	Temp	  	 	  	 	 	PENDING
	 TAIWAN
	  	34107	  	CEQ	  	12/06/1996	  	85115072	  	 	  	 	 	PENDING
	 TAIWAN
	  	37273	  	CEQ	  	11/11/1998	  	87008736	  	 	  	 	 	PENDING
	 UNITED STATES
	  	33877	  	NEW	  	12/08/1995	  	081569,346	  	11/10/1998	  	5,835,487	 	ISSUED
	 UNITED STATES
	  	35248	  	CIP	  	11/14/1997	  	081971,049	  	 	  	 	 	ABANDONED
	 UNITED STATES
	  	35922	  	CON	  	04/07/1998	  	09/055,935	  	 	  	 	 	PENDING
	 UNITED STATES
	  	35248A	  	CIP	  	07/09/1998	  	09/112,349	  	 	  	 	 	PENDING
	 UNITED STATES
	  	36593	  	CON	  	07/30/1998	  	09/124,997	  	 	  	 	 	PENDING
	 URUGUAY
	  	34144	  	CEQ	  	12/09/1996	  	24.393	  	 	  	 	 	PUBLISHED
	 VENEZUELA
	  	34127	  	CEQ	  	12/06/1996	  	96-2105	  	 	  	 	 	PUBLISHED
	 VENEZUELA
	  	37276	  	CEQ	  	11/13/1998	  	98-2566	  	 	  	 	 	PENDING
	 VIETNAM
	  	35957	  	DCA	  	12/06/1998	  	S19980570	  	 	  	 	 	PUBLISHED
	 WIPO
	  	34110	  	CEQ	  	12/06/1996	  	PCTIUS96119148	  	 	  	 	 	NAT PHASE
	 WIPO
	  	37268	  	CEQ	  	11/06/1998	  	PCT/US9823595	  	 	  	 	 	NAT PHASE
	 WIPO
	  	38432	  	CEQ	  	04/06/1999	  	PCT/US99107682	  	 	  	 	 	ABANDONED
	 SOUTH AFRICA
	  	34132	  	CEQ	  	12/06/1996	  	96/10298	  	09/23/1997	  	96110298	 	ISSUED
	 SOUTH AFRICA
	  	37272	  	CEQ	  	11/11/1998	  	98110314	  	04/26/2000	  	98/10314	 	ISSUED
	
	SATELLITE DIRECT RADIO BROADCAST SYSTEM WITH FORMATTING OF BROADCAST DATA, PROCESSING . THEREOF BY SATELLITE PAYLOAD AND RECEPTION BY REMOTE RADIO RECEIVERS
	 UNITED ARAB EMR
	  	35312	  	CEQ	  	11/05/1997	  	227197	  	PENDING	  	 	 	 
	 ARIPO
	  	38532	  	DCA	  	10/31/1997	  	APIP/99/01521	  	PENDING	  	 	 	 
	 ARGENTINA
	  	35292	  	CEQ	  	10/31/1997	  	970105089	  	PUBLISHED	  	 	 	 
	 AUSTRALIA
	  	38533	  	DCA	  	10/31/1997	  	70036198	  	PENDING	  	 	 	 
	 BOLIVIA
	  	35293	  	CEQ	  	11/05/1997	  	temp	  	PENDING	  	 	 	 
	 BRAZIL
	  	38534	  	DCA	  	10/31/1997	  	P19712872	  	PENDING	  	 	 	 
	 CANADA
	  	38535	  	DCA	  	10/31/1997	  	2,270,134	  	PENDING	  	 	 	 
	 CHILE
	  	35294	  	CEQ	  	11/05/1997	  	2384-97	  	PUBLISHED	  	 	 	 
	 CHINA
	  	38536	  	DCA	  	10/31/1997	  	97180321.8	  	PUBLISHED	  	 	 	 
	 COLOMBIA
	  	35295	  	CEQ	  	11/05/1997	  	97064785	  	PENDING	  	 	 	 
	 COSTA RICA
	  	35296	  	CEQ	  	11/05/1997	  	TEMP	  	PENDING	  	 	 	 
	 CZECH REPUBLIC
	  	38537	  	DCA	  	10/31/1997	  	PV 1541-99	  	PENDING	  	 	 	 
	 ALGERIA
	  	35291	  	CEQ	  	12/22/1997	  	970234	  	PENDING	  	 	 	 
	 EURASIAN PATENT
	  	38539	  	DCA	  	10/31/1997	  	199900445	  	PENDING	  	 	 	 
	 EGYPT
	  	35297	  	CEQ	  	11/05/1997	  	1171/97	  	PENDING	  	 	 	 
	 EUROPEAN PATENT
	  	38540	  	DCA	  	10/31/1997	  	97949350.9	  	PENDING	  	 	 	 
	 ETHIOPIA
	  	35298	  	CEQ	  	11/04/1997	  	TEMP	  	PENDING	  	 	 	 
	 HONG KONG
	  	40224	  	CEQ	  	 	  	00103692.5	  	PENDING	  	 	 	 
	 INDONESIA
	  	37799	  	DCA	  	10/31/1997	  	W990293	  	PENDINGForm of Performance Vested Non-Qualified Option Award Agreement

 Exhibit 10.1 
  
 2005 Stock Incentive Plan 
 Performance Vested Non-Qualified Option Award Agreement 
  
 This Agreement is made as of                          , 2005 (the “Grant
Date”), by and between Syntroleum Corporation (the “Company”) and
                             (the “Participant”). 
  
 WHEREAS, the Committee has, pursuant to the 2005 Stock Incentive Plan (the
“Plan”), made an Award to the Participant and authorized and directed the execution and delivery of this Agreement; 
  
 NOW, THEREFORE, in consideration of the foregoing, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Participant hereby agree as follows: 
  
 1. Award. The Participant is hereby granted a Non-Qualified Stock Option (an “Option”) to purchase from the Company up to a total of
___________ shares of Common Stock at $________ per share (the “Grant Price”). The term of such Option shall be ten years, commencing on the Grant Date (the “Term”). This Option is not intended to qualify as an Incentive Stock
Option. 
  
 2. Exercise. The Option may be exercised only
in accordance with the Plan, as supplemented by this Agreement, and not otherwise. 
  
 a. During its Term and prior to its earlier termination in accordance with Section 3 of this Agreement, the Option shall, to the extent vested in accordance with Section 2(d) of this Agreement, become exercisable as
follows: 
  
 (i) As of the fourth anniversary of the Grant Date,
50% of that portion of the Option that has then vested in accordance with Section 2(d) of this Agreement shall be exercisable, and 
  

 -1- 

 (ii) As of the last day of the Performance Period, 100% of that portion of the Option that has then
vested in accordance with Section 2(d) of this Agreement shall be exercisable. 
  
 b. To the extent then exercisable, the Option may be exercised by the Participant by giving written notice of exercise to the Company in such form as may be provided by the Committee, specifying the number of shares
of Common Stock with respect to which the Option is to be exercised and such other information as the Committee may require. The Option may be exercised for less than the full number of shares of Common Stock for which the Option is then
exercisable, provided that the Option may not be exercised for less than one hundred (100) shares of Common Stock or, if less, the number of remaining shares of Common Stock for which the Option is then exercisable. 
  
 c. Exercise of the Option shall be effective upon receipt by the Company of
such written notice together with the required payment of the Grant Price and any applicable withholding taxes. Such payment may be made by cash, check (subject to collection), or, provided that such shares of Common Stock have been owned by the
Participant for at least six months prior to such payment, by the delivery (or attestation of ownership) of shares of Common Stock having a Fair Market Value equal to the aggregate Grant Price and any applicable withholding taxes. Alternatively, the
Participant may make such payment by authorizing the simultaneous sale of Shares (or a sufficient portion thereof) acquired upon exercise through a brokerage or similar arrangement established by the Participant in accordance with Committee rules.
Subject to the foregoing, the Company will 

  

 -2- 

 
deliver to the Participant within a reasonable period of time thereafter, a certificate or certificates representing the shares of Common Stock so acquired,
registered in the name of the Participant or in accordance with other delivery instructions provided by the Participant and acceptable by the Committee. 
  
 d. Except as provided in Section 3 and Section 4 of this Agreement, no portion of the Option shall vest and become exercisable except to the extent that
it has vested in accordance with the Performance Vesting Schedule with respect to the period commencing on the Grant Date and ending on December 31, 2010 (the “Performance Period”). The Performance Vesting Schedule is attached hereto as
Exhibit A and is a part of this Agreement. In the event of some portion of the Option vesting as provided hereunder, the Company shall notify the Participant when and to what extent the Option has vested. 
  
 3. Termination. 
  
 a. General. No portion of the Option may be exercised after its termination.
Except as otherwise provided in this Section 3, the Option shall terminate upon the first to occur of: 
  
 (i) the end of the Performance Period (except to the extent vested in accordance with Section 2(d) of this Agreement), 
  
 (ii) the expiration of its Term (to the extent vested in accordance with
Section 2(d)), or 
  
 (iii) termination of the Participant’s
employment. 
  
 b. Death or Disability. 
  
 (i) If the Participant’s employment terminates prior to the end of the
Performance Period due to death or Disability, the Option shall, (x) to the extent vested in accordance with Section 2(d) hereof and unexercised as of 

  

 -3- 

 
the date of such termination of employment, remain vested and be and remain exercisable until the expiration of its Term and (y) to the extent not then so
vested, the Option shall be deemed and remain vested and exercisable until the expiration of its Term with respect to that number of shares of Common Stock determined by multiplying the number of shares of Common Stock with respect to which the
Option was not then vested by a fraction (not greater than one), the numerator of which is the number of months (including factional months) in the period commencing on the Grant Date and ending on the date of termination of employment and the
denominator of which is the number of months (including factional months) in the Performance Period. 
  
 (ii) If the Participant’s employment terminates at or after the end of the Performance Period due to death or Disability, the Option shall, to the
extent vested in accordance with Section 2(d) hereof and unexercised as of the date of such termination of employment, remain vested and be and remain exercisable until the expiration of its Term. 
  
 c. Retirement. If the Participant’s employment terminates at or after
the end of the Performance Period due to Retirement, the Option shall, to the extent vested in accordance with Section 2(d) hereof and unexercised as of the date of such termination of employment, remain vested and be and remain exercisable until
the expiration of its Term. 
  
 d. Termination for Cause. If the
Company terminates the Participant’s employment for Cause, the Option shall, (x) to the extent vested in accordance 

  

 -4- 

 
with Section 2(d) hereof and exercisable in accordance with Section 2(a) hereof, but unexercised, as of the date of such termination of employment, remain
vested and be and remain exercisable for sixty (60) days following such termination of employment or, if earlier, until the expiration of its Term and (y) to the extent so vested but not yet exercisable, remain vested and become exercisable in
accordance with Section 2(a) and remain exercisable for sixty (60) days thereafter. 
  
 e. Termination Without Cause. 
  
 (i) If the Company terminates the Participant’s employment without Cause prior to the end of the Performance Period, the Option shall be deemed and shall remain vested (the “Deemed Vested Portion”) with respect to the greater
of (x) the number of shares of Common Stock with respect to which the Option is vested in accordance with Section 2(d) hereof as of the date of such termination of employment, and (y) that number of shares of Common Stock determined by multiplying
the number of shares of Common Stock subject to the Option by a fraction (not greater than one), the numerator of which is the number of months (including fractional months) in the period commencing on the Grant Date and ending on the date of
termination of employment and the denominator of which is the number of months (including fractional months) in the Performance Period. To the extent exercisable in accordance with Section 2(a) hereof as of the date of such termination of
employment, the Option shall be and remain exercisable to that same extent with respect to 

  

 -5- 

 
Deemed Vested Portion for two (2) years following such termination of employment. To the extent not yet so exercisable, the Option shall become exercisable
in accordance with Section 2(a) with respect to Deemed Vested Portion and remain exercisable for two (2) years thereafter. 
  
 (ii) If the Company terminates the Participant’s employment without Cause at or after the end of the Performance Period, the Option shall, to the
extent vested in accordance with Section 2(d) hereof and unexercised as of the date of such termination of employment, remain vested and be and remain exercisable for two (2) years following such termination of employment or, if earlier, until the
expiration of its Term. 
  
 f. Voluntary Termination. If the
Participant’s employment terminates for any other reason, the Option shall, (x) to the extent vested in accordance with Section 2(d) hereof and exercisable in accordance with Section 2(a) hereof, but unexercised, as of the date of such
termination of employment, remain vested and be and remain exercisable for sixty (60) days following such termination of employment or, if earlier, until the expiration of its Term and (y) to the extent so vested but not yet exercisable, remain
vested and become exercisable in accordance with Section 2(a) and remain exercisable for sixty (60) days thereafter. 
  
 4. Change of Control. Anything in this Agreement to the contrary notwithstanding, the following provisions shall apply in the event of a Change of
Control at or before the end of the Performance Period: 
  
 (i)
The provisions of Section 2(d) shall no longer apply. 
  

 -6- 

 (ii) Upon such a Change of Control, the Option shall, provided that the Participant’s employment has
not terminated prior to the date of such Change of Control, be deemed vested and immediately exercisable with respect to the greater of (x) that portion of the Option vested in accordance with Section 2(d) hereof as of the date of such Change of
Control and (y) that portion of the Option determined in the accordance with following schedule based upon the Fair Market Value of a share of Common Stock as of the Change of Control (the “Change of Control Price”): 
  

				
	 Change of Control Price is

	  	The following percent of the Option
shall be
vested:

	 
	 At least $25 but less than $30
	  	25	%
	 $30 but less than $35
	  	50	%
	 $35 but less than $40
	  	75	%
	 $40 or more
	  	100	%

  
 (iii) If, within two
(2) years following such a Change of Control, either the Company terminates the Participant’s employment without Cause or the Participant terminates his employment for Good Reason (as defined in the Participant’s Employment Agreement with
the Company), the Option shall, to the extent not vested and exercisable pursuant to Section 4(ii) hereof, be deemed fully vested and immediately and fully exercisable for two (2) years following such termination of employment or, if earlier, until
the expiration of its Term. 
  

 -7- 

 (iv) In addition to any action required or authorized by the terms of this Agreement, the Committee may,
in its sole discretion, take any of the following actions as a result, or in anticipation, of a Change of Control: 
  

	 	(1)	accelerate time periods for purposes of vesting in or exercising the Option; 

  

	 	(2)	offer to purchase the Option for its equivalent cash value, as determined by the Committee, as of the date of the Change of Control; or 

  

	 	(3)	make such adjustments or modifications to the Option as the Committee deems appropriate to maintain and protect the rights and interests of the Participants following such Change of
Control. 

  
 5. Withholding. The Company
shall withhold all applicable taxes required by law from all amounts paid in respect of the Option. A Participant may satisfy the withholding obligation (i) by paying the amount of any such taxes in cash or check (subject to collection), (ii) by the
delivery (or attestation of ownership) of shares of Common Stock or (iii) with the approval of the Committee, by having shares of Common Stock deducted from the payment. Alternatively, the Participant may satisfy such obligation by authorizing the
simultaneous sale of Shares (or a sufficient portion thereof) acquired upon exercise through a brokerage or similar arrangement established by the Participant in accordance with Committee rules. The amount of the withholding shall be determined by
the Committee. The number of shares of Common Stock to be delivered or deducted, as the case may be, shall be determined by the Committee with reference to the Fair Market Value of the Common Stock when the withholding is required to be 

  

 -8- 

 
made, provided that the number of shares of Common Stock so delivered or withheld shall not exceed the minimum required amount of such withholding.

  
 6. Non-Assignability. Except as otherwise provided in
this Section, the Option is not assignable or transferable other than by will or by the laws of descent and distribution, and during the Participant’s life, may be exercised only by the Participant. The Participant, with the approval of the
Committee, may transfer the Option for no consideration to or for the benefit of the Participant’s Immediate Family (as hereinafter defined), including, without limitation, to a trust for the benefit of the Participant’s Immediate Family,
subject to such limits as the Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option prior to such transfer. The foregoing right to transfer the Option shall apply to the right to
consent to amendments to this Agreement and, in the discretion of the Committee, shall also apply to the right to transfer ancillary rights associated with the Option. For purposes of this Section, the term “Immediate Family” shall mean
the Participant’s spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers and grandchildren (and, for this purpose, shall also include the Participant). 
  
 7. Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any Common Stock
subject to this Award until the date the Participant becomes the holder of record with regard thereto. 
  
 8. No Right to Continued Service. Nothing herein shall obligate the Company or any Subsidiary to continue the Participant’s employment or
other service for any particular period or on any particular basis of compensation. 
  

 -9- 

 9. Burden and Benefit. The terms and provisions of this Agreement shall be binding upon, and shall
inure to the benefit of, the Participant and his or her executors or administrators, heirs, and personal and legal representatives. 
  
 10. Execution. This Option is not enforceable until this Agreement has been signed by the Participant and the Company. By executing this Agreement,
the Participant shall be deemed to have accepted and consented to any action taken under the Plan by the Committee, the Board or their delegates. 
  
 11. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware without regard to the
conflict of laws principles thereof. 
  
 12. Modifications.
No change or modification of this Agreement shall be valid unless it is in writing and signed by the parties hereto. 
  
 13. Entire Agreement. This Agreement, together with the Plan, sets forth all of the promises, agreements, conditions, understandings, warranties
and representations between the parties hereto with respect to the Option, and there are no promises, agreements, conditions, understandings, warranties or representations, oral or written, express or implied, between them with respect to the Option
other than as set forth herein or therein or in any written employment agreement between the Participant and the Company. The terms and conditions of the Plan are incorporated by reference herein, and to the extent that any conflict may exist
between any term or provision of this Agreement and any term or provision of the Plan, the term or provision of the Plan shall control. 
  
 14. Definitions. Any capitalized term to the extent not defined in this Agreement shall have the same meaning as set forth in the Plan. 

 

 -10- 

 15. Construction. The use of any gender herein shall be deemed to include the other gender and the
use of the singular herein shall be deemed to include the plural and vice versa, wherever appropriate. 
  
 16. Notices. Any and all notices required herein shall be addressed: (i) if to the Company, to the principal executive office of the Company; and
(ii) if to the Participant, to his or her address as reflected in the records of the Company. 
  
 17. Invalid or Unenforceable Provisions. The invalidity or unenforceability of any particular provision of this Agreement shall not effect the other provisions hereof, and this Agreement shall be construed in
all respects as if the invalid or unenforceable provisions were omitted. 
  

 -11- 

 18. Compliance with Section 409A. It is the intent of the Company and the Participant that the
provisions of the Plan and this Agreement comply with Section 409A of the Internal Revenue Code and related regulations and Treasury pronouncements (“Section 409A”). If any provision provided herein would result in the imposition of an
excise tax under the provisions of Section 409A, the parties agree that any such provision will be reformed as the Participant and the Company determine are appropriate to avoid imposition of such an excise tax. 
  

 -12- 

 IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the day and year
first above written. 
  

			
	SYNTROLEUM CORPORATION
		
	By:	 	 
	 Name:  
	 	 
	 Title:
	 	 

  

			
	PARTICIPANT
		
	By:	 	 
	 

  

 -13- 

 EXHIBIT A 
  
 PERFORMANCE VESTING SCHEDULE 
  

																
	 	  	Percent of Option Vested

	 
	 Sustained Stock Price
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 $40 or more
	  	100	%	 	100	%	 	100	%	 	!00	%	 	100	%
	 $35 but less than $40
	  	75	%	 	75	%	 	75	%	 	75	%	 	100	%
	 $30 but less than $35
	  	50	%	 	50	%	 	50	%	 	75	%	 	100	%
	 $25 but less than $30
	  	25	%	 	25	%	 	50	%	 	75	%	 	100	%
	 Less than $25
	  	0	%	 	25	%	 	50	%	 	75	%	 	100	%
	 Net Present Value of Future Cash Flows
	  	Less than
$1,375MM	 
 	 	$1,375MM
but less than
$1,650MM	 
 
 	 	$1,650MM
but less than
$1,925MM	 
 
 	 	$1,925MM
but less than
$2,200MM	 
 
 	 	$2,200MM
or more	 
 

  
 This Performance
Vesting Schedule shall be deemed part of the Agreement. For purposes of this Schedule and the Agreement: 
  
 “Performance Period” shall mean the period commencing on the Grant Date and ending on December 31, 2010 during which performance
shall be measured in accordance with this Schedule. 
  
 “Sustained Stock Price” shall mean the average Fair Market Value of a share of Common Stock during any six-month period commencing on or after the first day of the Performance Period and ending on or before the last day of the
Performance Period. 
  
 “Net Present Value
of Future Cash Flows” shall mean the net present value of estimated future cash flows from executed agreements (such as a contract to supply natural gas), proven reserves or any other source of future cash flows with analogous certainty to the
aforementioned sources as estimated on an annual basis by an independent auditor designated by the Board. For this purpose, an annual discount rate of 10% shall be used to calculate net present value. 
  

 -14-

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