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LAUNCH SERVICES AGREEMENT

Consulting Services Agreement

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VIASAT INC

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Title: LAUNCH SERVICES AGREEMENT
Governing Law: New York     Date: 2/11/2009
Industry: Communications Equipment     Sector: Technology

LAUNCH SERVICES AGREEMENT, Parties: viasat inc
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EXHIBIT 10.1

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

LAUNCH SERVICES AGREEMENT

FOR THE LAUNCHING INTO

GEOSTATIONARY TRANSFER ORBIT

OF THE VIASAT-1 SATELLITE

BY AN ARIANE 5 LAUNCH VEHICLE

 

ARIANESPACE Proprietary — Commercial in Confidence


 

 

Page 2

LAUNCH SERVICES AGREEMENT

This Launch Services Agreement is entered into

BY AND BETWEEN

VIASAT Inc. , hereinafter referred to as “CUSTOMER”, a company duly organized and validly existing under the laws of the State of Delaware, with principal offices located at 6155 El Camino Real, Carlsbad, California 92009-1045, USA

On the one hand

AND

ARIANESPACE , a company organized under the laws of France with principal offices located at Boulevard de l’Europe, B.P. 177 — 91006 EVRY Cedex, France, hereinafter referred to as “ARIANESPACE”,

On the other hand

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 3

CONTENTS

PART I
TERMS AND CONDITIONS

 

 

 

 

 

 

 

 

Pages

 

RECITALS

 

 

6

 

 

ARTICLE 1 — DEFINITIONS

 

 

7

 

 

ARTICLE 2 — SUBJECT OF THE AGREEMENT

 

 

13

 

 

ARTICLE 3 — CONTRACTUAL DOCUMENTS

 

 

14

 

 

ARTICLE 4 — ARIANESPACE’S SERVICES

 

 

15

 

 

ARTICLE 5 — CUSTOMER’S TECHNICAL COMMITMENTS

 

 

19

 

 

ARTICLE 6 — LAUNCH SCHEDULE

 

 

20

 

 

ARTICLE 7 — COORDINATION BETWEEN ARIANESPACE AND CUSTOMER

 

 

22

 

 

ARTICLE 8 — REMUNERATION

 

 

23

 

 

ARTICLE 9 — LAUNCH VEHICLE QUALIFICATION

 

 

25

 

 

ARTICLE 10 — PAYMENT FOR SERVICES

 

 

26

 

 

ARTICLE 11 — LAUNCH POSTPONEMENTS

 

 

31

 

 

ARTICLE 12 — RIGHT OF OWNERSHIP AND CUSTODY

 

 

35

 

 

ARTICLE 13 — REPLACEMENT LAUNCH

 

 

36

 

 

ARTICLE 14 — ALLOCATION OF POTENTIAL LIABILITIES AND RISKS

 

 

38

 

 

ARTICLE 15 — INSURANCE

 

 

43

 

 

ARTICLE 16 — OWNERSHIP OF DOCUMENTS AND WRITTEN INFORMATION CONFIDENTIALITY/PUBLIC STATEMENTS

 

 

45

 

 

ARTICLE 17 — PERMITS AND AUTHORIZATIONS

 

 

47

 

 

ARTICLE 18 — TERMINATION BY CUSTOMER

 

 

48

 

 

ARTICLE 19 — TERMINATION BY ARIANESPACE

 

 

51

 

 

ARTICLE 20 — MISCELLANEOUS

 

 

52

 

 

ARTICLE 21 — APPLICABLE LAW

 

 

55

 

 

ARTICLE 22 — ARBITRATION

 

 

56

 

 

ARTICLE 23 — EFFECTIVE DATE

 

 

57

 

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 4

PART II

ANNEXES

 

 

 

ANNEX 1

 

STATEMENT OF WORK

 

Part 1

 

LAUNCH SPECIFICATIONS

 

 

 

Part 2       ARIANESPACE TECHNICAL COMMITMENTS

 

 

 

Part 3      CUSTOMER’S TECHNICAL COMMITMENTS

 

 

 

Part 4      DOCUMENTATION AND REVIEWS

 

 

 

Part 5      GENERAL RANGE SUPPORT (GRS) AND OPTIONAL SERVICES

ANNEX 2 MODEL OF IRREVOCABLE STANDBY LETTER OF CREDIT

ANNEX 3 LAUNCH CERTIFICATE

ANNEX 4 ESA — ARIANESPACE CONVENTION (EXTRACT)

ANNEX 5 GUARANTY AGREEMENT

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

PART I

TERMS AND CONDITIONS

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 6

RECITALS

WHEREAS

 

CUSTOMER has approached ARIANESPACE with a view to launching the ViaSat-1 Satellite and two optional Satellites using an ARIANE Launch Vehicle, and

WHEREAS

 

ARIANESPACE has proposed to CUSTOMER either a Dedicated Launch or a Double Launch, and

 

WHEREAS

 

CUSTOMER has selected a Double Launch, being aware of the particular constraints involved in such a Launch, and

WHEREAS

 

CUSTOMER and ARIANESPACE, aware of the constraints and risks involved in any Launch operation and of the complex nature of the technologies involved, have reached an agreement in accordance with the terms and conditions set forth herein,

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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ARTICLE 1 — DEFINITIONS

In this Agreement capitalized terms shall have the meanings set forth in this Article :

Affiliate means any other entity that, directly or indirectly, Controls, is Controlled by or under common Control of CUSTOMER.

Agreement means this Agreement as defined in ARTICLE 3 hereof.

Associated Services means those supplementary launch services specified in Sub-paragraphs 4.1.2 and 4.1.3 hereof.

Associates means any individual or legal entity, whether organized under public or private law, who or which shall act, directly or indirectly, on behalf of or at the direction of either Party to this Agreement or on behalf of the Third Party Customer(s) of ARIANESPACE, to fulfill the obligation undertaken by such Party pursuant to this Agreement or by the Third Party Customer(s) of ARIANESPACE including without limitation, any employee, officer, agent of either Party, and of the Third Party Customer(s) of ARIANESPACE, and their respective contractors, subcontractors and suppliers at any tier.

For the purpose of the definition of Third Party and ARTICLE 14 :

a)

 

any individual or legal entity governed by private or public law that has directed ARIANESPACE to proceed with the Launch or has any interest in the Launch, including without limitation, a legal interest in the Launch Vehicle shall be deemed to be an Associate of ARIANESPACE

 

b)

 

any individual or legal entity governed by private or public law that has directed CUSTOMER to proceed with the Launch, or has any interest in the Satellite to be launched, including without limitation, insurers, any person or entity to whom CUSTOMER has sold or leased , directly or indirectly, or otherwise agreed to provide any portion of the Satellite or Satellite service shall be deemed to be an Associate of CUSTOMER;

 

c)

 

any individual or legal entity governed by private or public law, that has directed the Third Party Customer(s) of ARIANESPACE to proceed with the launch, or has any interest in the satellite of the Third Party Customer(s) to be launched, including without limitation, insurers, any person or entity to whom the Third Party Customer(s) has sold or leased , directly or indirectly, or otherwise agreed to provide any portion of the satellite or satellite service shall be deemed to be an Associate of Third Party Customer(s) of ARIANESPACE.

Auxiliary Payload(s) means (a) micro (mass<[***] kg) or mini (mass<[***] kg) satellite(s) belonging to (a) Third Party(ies) Customer(s) of ARIANESPACE, that is compatible with the Launch Vehicle used for the Launching of the Satellite, the Launch Mission and the Satellite Mission, which will be integrated on the Launch Vehicle subject to CUSTOMER prior written approval, which may be given or withheld in CUSTOMER’s sole discretion. This term shall also apply in the event that the Auxiliary Payload is not ready for the Launch and is replaced by a Dummy Payload, as necessary. For the avoidance of doubt, in connection with the Launch Mission, an Auxiliary Payload shall not be considered to be a main satellite.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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Base Rate means the Chase Manhattan Bank (N.Y.) prime rate plus [***] for any amount expressed in U.S. dollars, or the three (3) month EURIBOR plus [***] for any amount expressed in Euros.

Commercial Insurance Market means the providers of insurance or reinsurance for first party space-related risks on a regular basis that are not affiliated with or controlled directly or indirectly by CUSTOMER.

Control and its derivatives mean, with respect to an entity, (i) the legal, beneficial, or equitable ownership, directly or indirectly, of more than fifty percent (50%) of the capital stock (or other ownership interest if not a corporation) of such entity ordinarily having voting rights, or (ii) the power to direct, directly or indirectly, the management policies of such entity, whether through the ownership of voting stock, by contract, or otherwise.

Dedicated Launch means a Launch the only payload of which is CUSTOMER’s Satellite.

Deviation means non-compliance with the specifications included in the D.C.I. (Document de Contrôle des Interfaces / Interface Control Document, including its reference documents, applicable documents and annexes) with respect to :

a)

 

the performance of the various systems of the Launch Vehicle; and/or the environmental conditions to which the Satellite was subjected during the period from the instant when the Launch occurred until the instant when the activation of either the propulsion and/or orientation systems of the Satellite should have occurred; and/or

 

b)

 

the behaviour of the satellite of a Third Party Customer(s) of ARIANESPACE from the instant when the Launch occurred until the earlier of the following :

 

 

the instant when the propulsion and/or orientation systems of the satellite of the Third Party Customer(s) of ARIANESPACE are activated, or

 

 

 

the instant when the activation of either the propulsion and/or orientation systems of the Satellite should have occurred.

Double Launch means a Launch with two satellites (other than the Auxiliary Payload) including the Satellite supplied by CUSTOMER.

Dummy Payload means a substitute mass which is compatible with the Launch Vehicle, the Launch Mission and the Satellite Mission, which ARIANESPACE shall procure and supply for integration on the Launch Vehicle in lieu of an Auxiliary Payload, in the event that an Auxiliary Payload is unavailable for the Launch, or is likely to endanger the Launch Vehicle Mission, the Satellite Mission or the mission of the Third Party Customer of ARIANESPACE.

Events of Force Majeure means events such as but not limited to explosions, fires, earthquakes, floods, bad weather and other Acts of God, wars, whether or not declared, social uprisings, governmental or administrative measures, and all other events beyond the reasonable control of a Party or its Associates that impede the execution of the obligations of such Party or its Associates and, including, but without limitation, the accomplishment of the Launch within the Launch Period, Slot, Day, Window or at Launch Time, provided such difficulties may not be overcome using efforts (including work-around plans, alternate sources or other means) which

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 9

may reasonably be expected of the affected Party its affected Associates under the circumstances. For an event to qualify as Force Majeure hereunder: (1) the event must be without fault or negligence of a Party or its subcontractors hereunder; and (2) the Party claiming Force Majeure must provide the other Party with written notice thereof as soon as possible but in no event later than within ten (10) Business Days after such event shall have occurred. Notwithstanding anything to the foregoing, any failure by a subcontractor to meet its obligations to a Party; labor shortages; defective tooling; transportation difficulties; equipment failure or breakdowns; lockouts; and/or inability to obtain raw materials shall not constitute an Event of Force Majeure (except where such circumstance is itself caused by an Event of Force Majeure), and shall not relieve a Party from meeting any of its obligations under this Contract. The Party claiming Force Majeure shall use best efforts to minimize the effect of any Force Majeure event.

Firm Launch means the Launch Services firmly ordered by the CUSTOMER for the Launch of ViaSat-1 Satellite when signing this Agreement, to the exclusion of any Reflight, or Replacement or Optional Launches.

Guarantee Amount means [***] of the Launch Services Price established in accordance with Sub-paragraph 8.1.1 of ARTICLE 8 to this Agreement, converted in Euros at the Euro exchange rate prevailing at the Effective Date of the Agreement.

L means, except otherwise stipulated, the first day of the most recently agreed Launch Period, Launch Slot or Launch Day, as appropriate, of any particular Launch under this Agreement.

Launch or Launching means the order of ignition of solid propellant booster(s) if such event follows the intentional ignition of the Vulcain engine of the Launch Vehicle that has been integrated with the Satellite supplied by CUSTOMER and with another main satellite supplied by (a) Third Party Customer of ARIANESPACE, and if applicable, with (an) Auxiliary Payload(s) supplied by (a) Third Party Customer(s) of ARIANESPACE.

Launch Abort means the launch operations of the Launch Vehicle that has been integrated with the Satellite supplied by CUSTOMER and with another main satellite supplied by a Third Party Customer of ARIANESPACE, and if applicable with (an) Auxiliary Payload(s) supplied by (a) Third Party Customer(s) of ARIANESPACE, with subsequent ignition of the Vulcain engine without the Launch occurring.

Launch Base means the ARIANE launch base in Kourou, French Guiana, including all its facilities and equipment.

Launch Day or Day means a calendar day (established for the Launch pursuant to this Agreement) within the Launch Slot during which the Launch Window is open.

Launch Failure means :

a)

 

a total loss or destruction of the Satellite during the period extending from the instant when the Launch occurred and the instant when the Satellite is separated from the Launch Vehicle, or if such Satellite cannot be separated from the Launch Vehicle; or

 

b)

 

the occurrence due to a Deviation of a reduction, expressed as a percentage, of more than the Launch Failure Factor (“LFF”), as defined below, of the operational capability of the Satellite for CUSTOMER’s intended communication purposes, using reasonable business judgment.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 10

LFF shall be defined as the percentage specified in the insurance policy procured by CUSTOMER on the Commercial Insurance Market to define a constructive total loss providing for the payment of the full amount of insurance with application of the determination mode of the degradation factor as provided for in the second section of the definition of the term “Loss Quantum”.

If Customer does not procure any insurance policy on the Commercial Insurance Market, the constructive total loss percentage shall be [***] PERCENT ([***] %).

Launch Mission or Launch Vehicle Mission means the mission assigned to the ARIANE Launch Vehicle as defined in Part 1 of Annex 1 to this Agreement.

Launch Opportunity means the availability of an adequate time period, during which ARIANESPACE, in its reasonable judgment, may provide the Launch Service to CUSTOMER on a Launch Vehicle on which the other allocated satellite(s) have a launch mission and a satellite mission compatible with that of CUSTOMER’s Satellite in accordance with Part 1 of Annex 1 to this Agreement. Such availability is linked to the time required to complete the mission analysis studies and to select the Launch Vehicle/Satellite configuration

Launch Period or Period means a period of THREE (3) consecutive calendar months, except for the initial Launch Period identified in Sub-paragraph 6.1.1 of Article 6 herein.

Launch Services Price means the price for a Launch Service, as stated in Sub-paragraph 8.1.1 a) or b) of ARTICLE 8 herein as applicable and as may be adjusted in accordance with Sub-paragraph 8.1.3 of ARTICLE 8 herein, which may be increased by the Launch Risk Guarantee fee provided in Sub-paragraph 8.1.2 of ARTICLE 8 if the Refund or Reflight Option is exercised.

Launch Rank means the chronological position of the Satellite in the order of all satellite(s) to be launched by ARIANESPACE, based on the Launch Period or Launch Slot allocated to the CUSTOMER’ Satellite provided for herein (as the same may from time to time be postponed pursuant to this Agreement) and by reference to the Launch Period or Launch Slot allocated to other customers of ARIANESPACE (as the same may from time to time be postponed pursuant to the agreements between ARIANESPACE and its other customers).

Launch Risk Guarantee (LRG) means the guarantee available to CUSTOMER under Paragraph 4.3 of ARTICLE 4 of this Agreement if CUSTOMER exercises the Refund or Reflight Option.

Launch Services means the services to be provided by ARIANESPACE as specified in (i) Part 2 and Sub-paragraph 1.1 of Part 4 of Annex 1 to this Agreement and (ii) Paragraph 4.3 hereof if the Reflight Option or the Refund Option is exercised.

Launch Slot or Slot means a period of ONE (1) calendar month within a Launch Period with daily Launch Window possibilities.

Launch Time means the instant, within the Launch Window, that the ignition of the first stage engine(s) is scheduled to take place, as defined in hours, minutes and seconds (GMT Universal Time). The initial Launch Time shall commence immediately upon the opening of the Launch Window.

Launch Vehicle means the vehicle belonging to the ARIANE 5 family chosen by ARIANESPACE to perform the Launch, subject to the requirements of Article 9 of this Agreement.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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Launch Window means a time period as defined in Sub-paragraph 2.3 of Part 1 of Annex 1 to this Agreement.

Loss Quantum means the degradation factor of the Satellite resulting from the application of determination mode as mutually agreed in good faith by the Parties on or prior to L minus (-)[***] months based on a CUSTOMER’s written proposal;

provided, that, if CUSTOMER has taken out, either in insurance or in reinsurance, on the Commercial Insurance Market for at least [***] PER CENT ([***]%) of the amount insured, one or more policy(ies) of launch insurance, the determination mode of the loss quantum provided for in the insurance policy with the higher cover, as delivered by CUSTOMER to ARIANESPACE on or prior to L (-) minus [***] months, shall apply. If a different determination mode is further agreed with the Commercial Insurance Market, for that policy with higher cover, this new determination mode shall consequently apply; it being understood that CUSTOMER shall promptly inform ARIANESPACE, and in any event before the Launch has occurred of any change.

Optional Launch(es) means Launch Services ordered by CUSTOMER from ARIANESPACE in the event of activation of the said option(s) in accordance with Paragraph 4.4 of ARTICLE 4 of this Agreement.

Partial Failure means the occurrence due to a Deviation of a reduction of more than a percentage defined as Partial Failure Factor (“PFF”), as defined below, but not more than LFF of the operational capability of the Satellite for CUSTOMER’s intended communication purposes, using reasonable business judgment.

Where PFF is [***] PERCENT ([***]%), unless CUSTOMER procures on the Commercial Insurance Market a policy of launch insurance with consequent application of the determination mode of the degradation factor as provided for in the definition of the term “Loss Quantum”, in which case PFF shall mean the percentage specified in that insurance policy to define a partial loss. Said reduction of the operational capability shall be determined by using the Loss Quantum.

Party or Parties means CUSTOMER or ARIANESPACE or both according to the context in which the term is used.

Postlaunch Services means (i) the reports and range services as specified in Parts 2, 4 and 5 of Annex 1 to this Agreement that are to be provided to CUSTOMER by ARIANESPACE after the Launch, and (ii) the services provided for in Paragraph 4.3 hereof if the Reflight or Refund Option is exercised.

Reflight means a Replacement Launch under Paragraph 4.3.1.1 of ARTICLE 4 of this Agreement.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 12

Reflight Option means the option available to CUSTOMER for (i) a Reflight if the Launch Mission results in a Launch Failure, or (ii) a payment if the Launch Mission results in a Partial Failure, as determined under Sub-paragraph 4.3.1.1 of ARTICLE 4 to this Agreement subject to the conditions specified therein.

Refund Option means the option provided to CUSTOMER to receive a payment from ARIANESPACE subject to the conditions specified in Sub-paragraph 4.3.1.2 of ARTICLE 4 herein.

Replacement Launch means a Launch subject to ARTICLE 13 hereof, subsequent to a previous Launch that, for any reason whatsoever, has not accomplished the Launch Vehicle Mission or the Satellite Mission.

Satellite (referred to as Spacecraft in Annex 1 to this Agreement) means the spacecraft supplied by CUSTOMER for the Firm Launch (currently known as “ViaSat-1”), and for the two Optional Launches, that are compatible with the Launch Vehicle and the Launch Vehicle Mission, and that meet the specifications set forth in Part 1 of Annex 1 to this Agreement. For the avoidance of doubt, the CUSTOMER’s Satellite shall be considered as a main satellite and shall not be considered to be an Auxiliary Payload(s), for the purposes of this Agreement.

Satellite Mission means the mission assigned to the Satellite by CUSTOMER after separation from the Launch Vehicle.

Services means any and all services to be provided by ARIANESPACE under this Agreement.

Third Party means any individual or legal entity other than the Parties, Third Party Customer(s) of ARIANESPACE and the Associates of each of the foregoing.

Third Party Customer(s) of ARIANESPACE means other customer(s) of ARIANESPACE that use(s) ARIANESPACE’s launch services for the same Launch as CUSTOMER for the launch of a satellite and Auxiliary Payload(s), if applicable.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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ARTICLE 2 — SUBJECT OF THE AGREEMENT

The subject of this Agreement is the Launch of the ViaSat-1 Satellite (Firm Launch), plus two (2) additional Satellites (Optional Launches) if the related option(s) is/are activated by CUSTOMER, supplied by CUSTOMER at the Launch Base for the purpose of accomplishing the Launch Mission(s) in accordance with the terms and conditions of this Agreement.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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ARTICLE 3 — CONTRACTUAL DOCUMENTS

3.1

 

This Agreement consists of the following documents, which are contractually binding between the Parties:

 

1)

 

Terms and Conditions

 

 

2)

 

Launch Specifications (Part 1 of Annex 1)

 

 

3)

 

ARIANESPACE Technical Commitments (Part 2 of Annex 1)

 

 

4)

 

CUSTOMER’s Technical Commitments (Part 3 of Annex 1)

 

 

5)

 

Documentation and reviews (Part 4 of Annex 1)

 

 

6)

 

General Range Support (GRS) and Optional Services (Part 5 of Annex 1)

 

 

7)

 

ESA-ARIANESPACE Convention (Extract) (Annex 2)

 

3.2

 

All of the Agreement documents shall be read so as to be consistent to the extent practicable. In the event of any inconsistency between the terms and conditions and the Annexes, the Terms and Conditions shall prevail over the Annexes. There is no order of precedence among the documents 2 through 7 above inclusive.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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ARTICLE 4 — ARIANESPACE’S SERVICES

4.1

 

ARIANESPACE shall, for the Firm Launch and for the Optional Launches if the related option(s) has/have been activated by CUSTOMER, perform the Services under this Agreement including:

 

4.1.1

 

Launch Services.

 

 

4.1.2

 

Services ordered by CUSTOMER as set forth in this Agreement, and as defined in Paragraph 1 (“General Range Support”) and Paragraph 2 (“Options Ordered by the CUSTOMER”) of Part 5 of Annex 1 to this Agreement, in accordance with the conditions as specified therein.

 

 

4.1.3

 

Subject to any additional orders of CUSTOMER, one or more of the services as set forth in (i) Paragraph 3 (“Additional Options Available to the CUSTOMER”) of Part 5 of Annex 1 to this Agreement, (ii) the Ariane 5 User’s Manual (M.U.A.), Issue 5, Revision 0, dated July 2008 (except for the shock spectrum which shall be as defined in Paragraph 4 of Part 1 of Annex 1 to this Agreement), in accordance with the then applicable conditions and any other services ordered by CUSTOMER and accepted by ARIANESPACE.

 

4.2

 

Launch Services, except for Postlaunch Services, shall be deemed to be completed by ARIANESPACE when the Launch has taken place. In the event that, for any reason whatsoever, a Launch Abort occurs, ARIANESPACE shall postpone the Launch in accordance with the conditions set forth in ARTICLE 11 of this Agreement.

 

4.3

 

Launch Risk Guarantee

 

4.3.1

 

CUSTOMER shall have the right to exercise the Launch Risk Guarantee by electing either the Refund Option or the Reflight Option by written request received by ARIANESPACE (i) no later than [***] for the Firm Launch, and (ii) within [***] months following the activation date of each respective Optional Launch.

 

 

4.3.1.1

 

In the event CUSTOMER has elected the Reflight Option and the Launch Mission results in a:

 

 

 

 

4.3.1.1.1  Launch Failure, ARIANESPACE shall perform a Reflight, in accordance with the provisions of this Agreement, provided that no further payment by CUSTOMER to ARIANESPACE shall be due for the provision of (i) Launch Services for the Launch of a replacement Satellite on condition that the maximum mass of such Satellite is substantially similar to or less than the mass of the initial Satellite and (ii) such Associated Services as are retained by CUSTOMER as of the date of execution of this Agreement, except as provided for in Paragraph 8.2 of Article 8 of this Agreement, in case of postponement.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 16

 

 

 

4.3.1.1.2  Partial Failure, ARIANESPACE shall pay to CUSTOMER an amount as obtained by multiplying the Guarantee Amount by the Loss Quantum if the Launch Mission has resulted in a Partial Failure. The resulting amount will be subject to a deductible equal to PFF of the Guarantee Amount provided for the launching, in accordance with the following formula :

(Guarantee Amount x Loss Quantum) minus deductible.

 

 

 

Notwithstanding the foregoing, if the insurance policy taken out by CUSTOMER (i) provides for a deductible higher or lower than PFF, such deductible as provided for in the said insurance policy shall apply, or (ii) does not provide for a deductible, no deductible shall apply.

 

 

4.3.1.2

 

In the event CUSTOMER has elected the Refund Option and the Launch Mission results in a:

 

 

 

 

4.3.1.2.1  Launch Failure, ARIANESPACE shall pay to CUSTOMER an amount equal to the Launch Services Price amount, or

 

 

 

 

4.3.1.2.2  Partial Failure, ARIANESPACE shall pay to CUSTOMER an amount as determined pursuant to Sub-paragraph 4.3.1.1.2 above where Guarantee Amount reads Launch Services Price.

 

4.3.2

 

Any amount due by ARIANESPACE to CUSTOMER under Sub-paragraphs 4.3.1.1 or 4.3.1.2 above shall be paid as soon as practicable, but in any event within (a) a SIXTY (60) day period following the date when the Parties have agreed on the occurrence of the Launch Failure or the Partial Failure and the corresponding Loss Quantum, provided CUSTOMER has paid all amounts due and payable by it under this Agreement. ARIANESPACE shall pay the CUSTOMER interest on any late or delayed payment of the foregoing sum at the Base Rate from and including the date due to but excluding the date made. The computation of interest for late payments shall be based on a year of 360 days

 

 

4.3.3

 

The implementation of Sub-paragraphs 4.3.1.1 or 4.3.1.2 above shall not imply any transfer of title to the Satellite to ARIANESPACE. In case of Launch Failure or Partial Failure, the rights of ARIANESPACE shall be the same of those of any entity(ies) who could cover risks related to the launch of the Satellite. Specially and not limitatively, in circumstances where salvage can be performed, ARIANESPACE will be entitled to a share in any salvage value remaining in any portion of the Satellite for which a Reflight has been performed or a cash payment has been due and paid by ARIANESPACE to CUSTOMER, and the Parties will negotiate the disposition of the Satellite if, in connection with a Launch Failure, transfer of title has been requested.

 

 

4.3.4

 

In the event that, after application of Sub-paragraphs 4.3.1.1 or 4.3.1.2 above due to a Launch Failure, the Satellite is placed into commercial operation and/or is sold, leased or otherwise transferred, ARIANESPACE shall be entitled to a share of any resulting revenues and/or payments, as shall be negotiated and agreed upon promptly, taking into account the specific details and circumstances of such

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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commercial operation, but in no case shall any shared amount exceed the Guarantee Amount in the event of exercise of the Reflight Option or Launch Services Price in the event of exercise of the Refund Option, as applicable.

 

4.3.5

 

There shall not be any cover for Launch Failure or Partial Failure and consequently the provisions of Sub-paragraphs 4.3.1.1 or 4.3.1.2 above shall not apply, in any of the following cases :

 

4.3.5.1

 

If CUSTOMER does not notify in writing ARIANESPACE of any event that would entitle CUSTOMER to any right under Sub-paragraph 4.3.2 above before the first to occur of any of the THREE (3) following events;

 

 

(i)

 

the day the Satellite is put into commercial operation,

 

 

(ii)

 

the SIXTIETH (60th) day following the date of station acquisition of the Satellite,

 

 

(iii)

 

the NINETIETH (90th) day at zero hour following the date of the Launch.

Notwithstanding the foregoing, an extension of the periods might be obtained upon request from CUSTOMER, and ARIANESPACE agrees to reasonably assist and support CUSTOMER with such proceedings, if both of the following conditions occur :

 

(a)

 

the launching does not conform to the specifications of the D.C.I. and the Satellite reached its final positioning such that it cannot be determined that a Launch Failure or Partial Failure has occurred and;

 

 

(b)

 

CUSTOMER’s request for extension is received before the first of the THREE (3) events specified above.

In no event shall such extension extend beyond the ONE HUNDRED AND EIGHTIETH (180th) day following the date of the Launch.

and/or

 

4.3.5.2

 

if the Launch Failure or the Partial Failure is caused by, or results from one or more of the following events

 

A

 

War, hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack by (a) any government or sovereign power (de jure or de facto), or (b) any authority maintaining or using a military, naval or air force, or (c) a military, naval or air force, or (d) any agent of any such government, power, authority or force;

 

 

B

 

any anti-satellite device, or device employing atomic or nuclear fission and/or fusion, or device employing laser or directed energy beams;

 

 

C

 

insurrection, strikes, riots, civil commotion, rebellion, revolution, civil war, usurpation or action taken by a government authority in hindering, combating or defending against such an occurrence whether there be a declaration of war or not;

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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D

 

confiscation by order of any government or governmental authority or agent (whether secret or otherwise), or public authority;

 

 

E

 

nuclear reaction, nuclear radiation, or radioactive contamination of any nature, whether such loss or damage be direct or indirect, except for radiation naturally occurring in the space environment;

 

 

F

 

willful or intentional acts of CUSTOMER designed to cause loss or failure of the Satellite;

 

 

G

 

electromagnetic or radio frequency interference, except for (i) physical damage to the Satellite resulting from such interference, or (ii) interference naturally occurring in the space environment.

 

 

H

 

any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

 

 

I

 

any unlawful seizure or wrongful exercise of control of the Satellite made by any person or persons acting for political or terrorist purposes whether the loss or damage resulting therefrom is accidental or intentional.

4.4

 

Optional Launch(es)

 

 

4.4.1

 

Options Activation: CUSTOMER shall have the possibility to activate each of the two Optional Launches by written notice to ARIANESPACE.

 

 

4.4.2

 

Either or both of the Optional Launches may be assigned by CUSTOMER to Affiliates of CUSTOMER, in accordance with Paragraph 20.5 of this Agreement.

 

 

4.4.3

 

For purpose of clarity it is hereby agreed that any termination by CUSTOMER of the Optional Launches after activation of the related option, shall be subject to the terms of Paragraph 18.2 to this Agreement.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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     ARTICLE 5 — CUSTOMER’S TECHNICAL COMMITMENTS

5.1

 

CUSTOMER shall fulfill the Technical Commitments set forth in Parts 1 and 3 of Annex 1 to this Agreement including, without limitation, delivery of the Satellite to the Launch Base within the time limits consistent with the launch schedule set forth herein.

 

5.2

 

CUSTOMER shall promptly notify ARIANESPACE in writing of any event that may cause a delay in the Launch schedule.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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     ARTICLE 6 — LAUNCH SCHEDULE

6.1

 

The Launch of the Satellite(s) shall take place during the following Launch Period(s):

 

6.1.1

 

Firm Launch:

The Launch of the Firm Launch shall take place during the following Launch Period:

From [***] 2011 through [***] 2011

 

6.1.2

 

Optional Launches

The Launch Periods for Optional Launch #1 and Optional Launch #2, shall be determined by CUSTOMER and identified in each of CUSTOMER’s option(s) activation notice to ARIANESPACE, provided that:

 

(i)

 

the first day of the requested Launch Period for Optional Launch #1 shall not be prior to [***] months following the activation date of Optional Launch #1, and being further agreed that the last day of the said Launch Period shall not be later than [***];

 

 

 

 

and

 

 

(ii)

 

the first day of the requested Launch Period for Optional Launch #2 shall not be prior to [***] months following the activation date of Optional Launch #2, and being further agreed that the last day of the said Launch Period shall not be later than [***].

Notwithstanding the above, ARIANESPACE shall consider any CUSTOMER request for an acceleration of the Launch Period(s) for the above Optional Launches, and subject to the availability of Launch Opportunities, shall offer CUSTOMER the first available Launch Period(s) closest to CUSTOMER’s desired Launch Period(s).

6.2

 

Taking into account available Launch Opportunity(ies), the Launch Slot(s) within the Launch Period(es) shall be determined by mutual agreement of the Parties no later than [***] months prior to the first day of the applicable Launch Period.

 

6.3

 

Based on a proposal made by ARIANESPACE, by mutual agreement of the Parties, the Launch Day within the Launch Slot shall be determined, no later than [***] months prior to the first day of the applicable Launch Slot.

 

6.4

 

Based on a proposal made by ARIANESPACE, by mutual agreement of the Parties, the Launch Window set forth in Sub-paragraph 2.3 of Part 1 to Annex 1 to this Agreement shall be determined no later than the applicable Final Mission Analysis Review.

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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6.5

 

In the event that, for any reason whatsoever, the Parties fail to agree upon the Launch Slot within the Launch Period, the Launch Day, or the Launch Window, ARIANESPACE shall reasonably determine said Launch Slot, Launch Day, or Launch Window taking into account the available Launch Opportunity(ies), and the requirements and respective interests of CUSTOMER and any of the Third Party Customer(s) of ARIANESPACE.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

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     ARTICLE 7 — COORDINATION BETWEEN ARIANESPACE AND CUSTOMER

7.1

 

CUSTOMER and ARIANESPACE shall each designate a program director (Program Director) no later than TWO (2) months after the execution of this Agreement.

 

7.2

 

The Program Director shall supervise and coordinate the performance of the Services and the Technical Commitments of the respective Parties within the Launch schedule set forth herein.

 

7.3

 

Each Program Director shall have sufficient powers to be able to settle any technical issues that may arise during the performance of this Agreement, as well as any day-to-day management issues.

 

7.4

 

A Party may replace its Program Director by prior written notice to the other Party, signed by an authorized official, indicating the effective date of designation of the new Program Director.

 

7.5

 

If CUSTOMER is not satisfied with the performance of ARIANESPACE’s Program Director, CUSTOMER may at any time request ARIANESPACE to replace such Program Director and the Parties shall mutually agree on a replacement Program Director.

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     ARTICLE 8 — REMUNERATION

8.1

 

The remuneration of ARIANESPACE for the provision of Launch Services, as defined in Sub-paragraphs 4.1.1 and 4.1.2 of ARTICLE 4, for the Firm Launch and the two (2) Optional Launches is a fixed price, as follows:

 

8.1.1

 

 

 

 

a)

 

For the Firm Launch:

 

 

 

 

For the ViaSat-1 Satellite with a mass of [***]kg (without adaptor), the price shall be ONE HUNDRED SEVEN MILLION SEVEN HUNDRED FIFTY EIGHT THOUSAND United States Dollars (US$107 758 000).

 

 

 

 

Any increase in mass shall be subject to a variation in the firm fixed amount stated above of [***] United States Dollars (US$ [***])for each kilogram that the Satellite mass is increased. Such amount shall escalate in accordance with Article 8.2 of this Agreement.

 

 

b)

 

For Optional Launches:

 

 

 

 

For a Satellite with a mass of [***]kg (without adaptor), the price shall be [***] Euros ( [***]), as may be converted in US dollars at CUSTOMER’s option, upon the exercise of each Optional Launch.

 

 

 

 

For a Satellite with a maximum mass of [***] kg (without adaptor): the price shall be [***] Euros ( [***]), as may be converted in US dollars at CUSTOMER’s option, upon the exercise of each Optional Launch.

 

 

 

 

For a reference Satellite mass between [***] kg and [***] kg, this price will be computed by linear interpolation

 

 

 

 

Any increase in mass shall be subject to a variation in the firm fixed amount stated above of [***] Euros, as may be converted in US dollars at CUSTOMER’s option, for each kilogram that the Satellite mass is increased. Such amount shall escalate in accordance with Article 8.2 of this Agreement.

 

 

 

 

The prices for the Optional Launches shall be fixed for Launches to take place on or prior to [***]. Should the Launch Periods requested by CUSTOMER in accordance with Sub-paragraph 6.1.2 of ARTICLE 6 hereof be beyond [***] (but in no event can the Optional Launch(es) occur later than [***]), then the

 

*

 

Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

VIASAT and ARIANESPACE Proprietary — Commercial in Confidence


 

Page 24

 

 

 

price shall be escalated by [***] percent per quarter from said date up to the first day of the initially requested Launch Period.

 

8.1.2

 

The amount mentioned in the above Sub-paragraph 8.1.1 shall be increased in a firm fixed amount as follows:

 

 

(i)

 

The amount obtained by multiplying the price set forth in the above Sub-paragraph 8.1.1 by [***] PER CENT ([***]%), if CUSTOMER exercises the Reflight Option.

 

 

(ii)

 

The amount obtained by multiplying the price set forth in the above Sub-paragraph 8.1.1 by [***] PER CENT ([***]%), if CUSTOMER exercises the Refund Option.

The above percentages are valid for Launches to occur on or prior to [***].

For Launch(es) to occur on or after [***], the above percentages shall be reviewed and renegotiated.

 

8.1.3

 

Commencing with the effective date of this Agreement, and up to L minus [***] months, CUSTOMER may vary the Satellite mass by a maximum total mass of [***] kg.

 

8.1.3.1

 

Notwithstanding the foregoing, in the event of availability of extra payload capacity of the Launch Vehicle at the time of the Final Mission Analysis is performed, CUSTOMER shall be entitled to a corresponding incr


 
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