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COOPERATION AGREEMENT
dated as of December 20, 2007
by and among
MOBILE SATELLITE VENTURES LP,
MOBILE SATELLITE VENTURES (CANADA) INC.,
SKYTERRA COMMUNICATIONS, INC.
and
INMARSAT GLOBAL LIMITED
TABLE OF CONTENTS
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Page
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ARTICLE
1 - RULES OF CONSTRUCTION
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1
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Section
1.1
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Defined
Terms
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1
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Section
1.2
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General
Rules of Interpretation
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1
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Section
1.3
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Headings
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2
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Section
1.4
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Timing
of Obligations
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2
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ARTICLE
2 - COMMERCIAL TRIALS
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2
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Section
2.1
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Description
of Trials
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2
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Section
2.2
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Selection
of Areas for Trials; Operational Parameters
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2
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Section
2.3
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Involvement
of Inmarsat in Trials
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2
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Section
2.4
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Costs
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3
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Section
2.5
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Spectrum
for the Trials
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3
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Section
2.6
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Mutual
Support for the Trials and Phase 1 Implementation
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3
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ARTICLE
3 - COORDINATION OF L-BAND SPECTRUM
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4
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Section
3.1
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Commitments
Regarding Coordination
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4
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(a)
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General
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4
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(b)
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Full
Benefits of the Trials, the Plans, and the
Arbitrations
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4
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(c)
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Multi-lateral
Coordination
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5
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(d)
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Overall
Purposes of Coordination
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6
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Section
3.2
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Spectrum
Plans; Usage of L-band Spectrum by the Parties
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6
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(a)
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The
Phase 0 Spectrum Plan
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6
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(b)
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The
Phase 1 and Phase 1A Spectrum Plans
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9
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(c)
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The
Phase 1 Alternative Spectrum Plans
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12
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(d)
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The
Phase 2 Spectrum Plan
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13
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(e)
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Default
Spectrum Plans
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14
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(f)
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[This
paragraph intentionally omitted.]
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15
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(g)
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Transitions
to Different Spectrum Plans
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15
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(h)
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Additional
Transition Actions
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16
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(i)
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Transition
Costs
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16
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Section
3.3
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Spectrum
Sharing
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16
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(a)
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Scope
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16
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(b)
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Term
and Termination
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17
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(c)
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Process
for Implementing the L-band Coordination Plan
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17
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Section
3.4
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Access
to Additional L-Band Spectrum
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18
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Section
3.5
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ATC
Operations
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20
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ARTICLE
4 - PAYMENTS TO INMARSAT
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20
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Section
4.1
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Payment
on Effective Date
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20
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Section
4.2
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Payment
on Giving the Phase 1 Notice
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21
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Section
4.3
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Payment
of the Phase 1 Compensation
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21
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(a)
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Transition
Acceleration
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21
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(b)
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Transition
Payment
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22
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Section
4.4
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Payment
on Completion of Implementation of Phase 1
Transition
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22
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Section
4.5
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Phase
2 Annual Payments
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23
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(a)
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Size
of the Phase 2 Annual Payments
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23
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(b)
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Early
Termination and Notice
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23
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(c)
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Payment
Default
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25
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Section
4.6
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Fair
Market Value
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25
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Section
4.7
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Taxes
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26
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Section
4.8
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Interest
on Late Payments
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26
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ARTICLE
5 - REGULATORY FILINGS AND SIMILAR MATTERS
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27
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Section
5.1
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Withdrawal
of Pending Filings
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27
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Section
5.2
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New
Filings
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27
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Section
5.3
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Meetings
with Administrations
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28
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Section
5.4
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Further
Communications from and with Administrations, Other Regulatory
Agencies, or the ITU
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28
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(a)
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Communications
from Administrations, Other Regulatory Agencies or the
ITU
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28
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(b)
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Communications
with Administrations, Other Regulatory Agencies or the
ITU
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28
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Section
5.5
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Implementation
of the L-band Coordination Plan
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29
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ARTICLE
6 - REPRESENTATIONS AND WARRANTIES; COVENANTS
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31
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Section
6.1
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Representations
of Inmarsat
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31
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Section
6.2
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Representations
of the MSV Parties
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31
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Section
6.3
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Limitation
on Representations and Warranties
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32
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Section
6.4
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Contingent
Reciprocal License Grant
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32
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Section
6.5
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Export
Control Regulations
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32
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Section
6.6
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Compliance
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32
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Section
6.7
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Actions
by Affiliates and Other Third Parties
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33
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Section
6.8
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Public
Announcements and Disclosures
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33
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Section
6.9
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Further
Assurances
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33
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ARTICLE
7 - TERM AND TERMINATION
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34
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Section
7.1
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Term
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34
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Section
7.2
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Termination
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34
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Section
7.3
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Regulatory
Change
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35
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Section
7.4
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Force
Majeure
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35
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Section
7.5
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Survival
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36
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ARTICLE
8 - INDEMNIFICATION
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36
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Section
8.1
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Indemnification
by the Parties; Limitation of Liability
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37
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Section
8.2
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Indemnification
Procedure
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38
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Section
8.3
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Protection
of Proprietary Technology
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38
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ARTICLE
9 - MISCELLANEOUS
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39
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Section
9.1
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Confidentiality
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39
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Section
9.2
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Notices
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39
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Section
9.3
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Binding
Effect, Successors and Assigns
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40
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Section
9.4
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Amendments
and Waivers
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41
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Section
9.5
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Allocation
Between MSVLP, MSV Canada and SkyTerra
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41
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Section
9.6
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Governing
Law
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41
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Section
9.7
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Disputes;
Exclusive Jurisdiction; Waiver of Jury Trial
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41
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Section
9.8
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Time
of the Essence; Remedies; Specific Performance
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42
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Section
9.9
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No
Implied Waivers
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42
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Section
9.10
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Relationship
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42
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Section
9.11
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Severability
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43
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Section
9.12
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Interpretation
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43
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Section
9.13
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Expenses
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43
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Section
9.14
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Compliance
with Law
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43
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Section
9.15
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No
Recourse
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43
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Section
9.16
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No
Reliance
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43
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Section
9.17
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Entire
Agreement
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43
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Section
9.18
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Counterparts
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44
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INDEX OF EXHIBITS
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Exhibit
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Subject
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A
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Definitions
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B
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Possible
Trial Markets
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B1
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Form
of Subscription Agreement
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B2
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Form
of Registration Rights Agreement
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B3
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Phase
0 Block Loan Agreement (and Form to be Conformed for
Commercial Trial Loans)
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Technical
and Coordination Matters in Exhibits C-V
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COOPERATION AGREEMENT
This
Cooperation Agreement (the
“
Agreement ”),
dated as of December 20, 2007, is by and between Mobile Satellite
Ventures LP, a Delaware limited partnership (“
MSVLP ”),
Mobile Satellite Ventures (Canada) Inc., an Ontario corporation
(“
MSV Canada ”),
and SkyTerra Communications, Inc., a Delaware corporation
(“
SkyTerra, ”
and, together with MSVLP and MSV Canada, the “
MSV Parties ”
and each an “
MSV Party ”),
on the one hand, and Inmarsat Global Limited, a company
incorporated under the laws of England and Wales (“
Inmarsat ”
and, together with the MSV Parties, collectively the “
Parties ”
and each individually a “
Party ”),
on the other hand.
WHEREAS, each
of the MSV Parties and Inmarsat, directly and/or through their
subsidiaries and affiliates, have different satellite platforms,
regulatory authorizations, L-band licenses, technologies,
proprietary intellectual property, and capabilities for deploying
mobile satellite services (“
MSS ”)
with or without integrated ancillary terrestrial component
(“
ATC ”)
technology and with respect to current and future mobile satellite
services;
WHEREAS, each
of the MSV Parties and Inmarsat desire to increase and make more
efficient use of the L-band spectrum resource and the accompanying
orbital resources to provide competitive and innovative,
cost-effective communications solutions to end users in North
America, including to rural and remote users, emergency responders
and the homeland security community; and
WHEREAS, the
Parties wish to provide for greater certainty with respect to
satellite coordination of the L-band for North American operations,
future assignments and use of the L-band spectrum, and certain
technical and operational issues.
NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants
and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto, intending to be legally bound, do
hereby agree as follows:
ARTICLE 1 - RULES OF CONSTRUCTION
Section 1.1 Defined Terms
. The terms set forth in Exhibit A or any other Exhibit
hereto, as used in this Agreement, have the meanings ascribed
thereto at Exhibit A or such other Exhibit.
Section 1.2
General Rules of Interpretation
.
Whenever the context requires, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words
“or” and “any” are not exclusive and the
words “include,” “includes” and
“including” shall be deemed to be followed by the
phrase “without limitation.” Except as specifically
otherwise provided in this Agreement, a reference to an Article,
Section or Exhibit is a reference to an Article or Section of this
Agreement or an Exhibit hereto, and the terms “hereof,”
“herein,” and other like terms refer to this Agreement
as a whole, including the Exhibits hereto. The terms “
Dollars ”
and “
$ ”
shall mean United States Dollars.
Section 1.3
Headings .
The division of this Agreement into Articles and Sections and the
insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this
Agreement.
Section 1.4
Timing of Obligations .
As described below, various obligations of the Parties are
effective upon the signing of this Agreement by all the Parties
(the “
Signing Date ”)
or at a specific time that is tied to the Signing Date and other
obligations of the Parties are effective upon the Effective Date or
thereafter.
ARTICLE 2 - COMMERCIAL TRIALS
Section 2.1 Description of
Trials . Commencing on the Effective Date, the MSV
Parties shall be entitled to conduct a program of limited trials
and demonstrations, with partners of their choosing, to test
broadband and other applications utilizing the spectrum blocks
identified in Section 2.5 below coordinated for use by the MSV
Parties and Inmarsat, in a single land-locked area in the United
States or Canada in accordance with the provisions of Section 2.2
below (the “ Trials ”) . The
Trials may be conducted by the MSV Parties, at their sole
discretion, until the later of September 1, 2011 and, if the MSV
Parties deliver a Phase 1 Notice in accordance with Section
3.2(b)(i) below, the Phase 1 Completion Date (such later date, the
“ Trials End Date ”) provided always,
that the MSV Parties at their election may terminate the Trials at
any earlier time and the date of such voluntary termination shall
then (except for purposes of Section 2.6 below) be the Trials End
Date. For the avoidance of doubt, notwithstanding the foregoing,
the MSV Parties may in their absolute discretion commence in any
part of North America any trial deployed using L-band spectrum
designated for their use in the Spectrum Plan then in effect
hereunder, provided always, that in any such case
the MSV Parties comply in full with the provisions
of this Agreement relating to such Spectrum Plans, including the
inter-system interference parameters set out at Section 3.5 below
(and in the Exhibits referred to therein, including Exhibit
N or N Prime , as applicable).
Section 2.2
Selection of Areas for Trials; Operational
Parameters .
The MSV Parties shall select in their absolute discretion one of
the Possible Trial Markets listed in
Exhibit B as
the market in which to conduct the Trials. If the MSV Parties wish
to conduct the Trials in a market other than one of the Possible
Trial Markets listed in
Exhibit B ,
the MSV Parties shall not be permitted to conduct a Trial in such
market unless Inmarsat agrees in writing in advance. The MSV
Parties shall conduct the Trials in accordance with the technical
and operating parameters set forth in
Exhibit N Prime and
with a view to minimizing potential interference to MSS terminals.
Inmarsat agrees that, to the extent any of the end users of its MSS
(“
End Users ”)
receive harmful interference as a result of Trials which have been
operated in a Possible Trial Market listed in
Exhibit B (or
other agreed market) exclusively within the technical and operating
parameters set forth in
Exhibit N Prime ,
Inmarsat will be responsible for working with those customers to
provide suitable alternatives and will not request (in a regulatory
forum or otherwise) any action by the MSV Parties that may restrict
such Trials.
Section 2.3
Involvement of Inmarsat in Trials
.
The MSV Parties shall provide Inmarsat with full and unrestricted
access to the Trials conducted in accordance with the above
provisions, including access to all technical, operating and
customer data that is generated by the Trials, provided that all
such information will be deemed proprietary to the MSV Parties and
subject to the confidentiality provisions of Section
9.1 hereof.
The MSV Parties shall consult with Inmarsat at least on a quarterly
basis regarding the establishment, development, progress and
relative success of the Trials and will have due regard to the
reasonable views and recommendations of Inmarsat regarding such
matters.
Section 2.4
Costs .
Implementation of the Trials shall be exclusively the
responsibility and at the cost of the MSV Parties, and Inmarsat
shall have no obligation to itself incur any costs or to reimburse
any of the MSV Parties for any costs that the MSV Parties may
incur, in relation to the same. Any and all costs incurred by any
of the Parties relating to the Trials contemplated by this Article
2, and their related filings, will be exclusively for the account
of the MSV Parties provided that (a) those costs incurred by
Inmarsat in connection with providing suitable alternatives to its
customers, as described in Section
2.2 above,
and (b) those additional costs incurred by and at the
discretion of Inmarsat for its benefit (e.g., additional
consultants and Inmarsat travel attendance) shall be exclusively
for the account of Inmarsat.
Section 2.5
Spectrum for the Trials .
The Trials shall be conducted in the frequencies
1545-1557/1646.5-1658.5 MHz (the “
Trial Frequencies ”)
and for such purpose Inmarsat shall make available free of charge
to the MSV Parties, in the geographic area of the Trials only, any
spectrum currently utilized by Inmarsat (or made available to
Inmarsat under the Phase 0 Spectrum Plan) and forming part of the
Trial Frequencies, by way of a grant of temporary use, for the
purposes of the Trials only, which shall terminate automatically on
the Trials End Date. In the event that the Trials cannot be
conducted within the Trial Frequencies because of government or
other unrelated unilateral third party actions or inactions, the
Parties agree that they will respectively use their commercially
reasonable efforts to (a) remedy the situation, including
through consideration of alternative geographic area locations
(which the MSV Parties may propose) as Possible Trial Markets with
reasonably acceptable characteristics, in order to make fully
available the Trial Frequencies for the Trials, failing achievement
of which (b) make available alternative spectrum for the Trials to
ensure that each Party obtains the full benefit of the Trials (in
accordance with the provisions of Section
3.1(b) below).
To the extent any of the spectrum used for the Trials is currently,
or becomes, utilized by Inmarsat hereunder, the MSV Parties will
enter into a spectrum loan agreement with respect to such Inmarsat
spectrum for the term of the Trials in the form of the Phase 0
Block Loan Agreement (
Exhibit B3 ),
mutatis mutandis with changes to reflect the spectrum to be used,
the term of the use by the MSV Parties and otherwise consistent
with the provisions of this Section
2.5 .
Section 2.6
Mutual Support for the Trials and Phase 1
Implementation
. The
Parties agree that the Trials are intended to be a precursor to
enable the MSV Parties to secure a commercial partner and to move
ahead with one or more partners in a full-scale implementation of a
hybrid MSS/ATC service supporting a UMB, Wimax, LTE or other
communications service to the North American mass consumer market
and based on adoption of either the Phase 1 Spectrum Plan or the
Phase 1A Spectrum Plan leading through a commercial scale-up to
adoption of the Phase 2 Spectrum Plan within the time frames
stipulated for adoption of those Spectrum Plans (the “
Purpose ”).
The Parties agree to use their respective best commercial efforts
expeditiously to advance the Purpose and to do no act or thing
which would or would be likely to detract from the Purpose, from
the Signing Date (i) until December 31, 2009 and, (ii) in the event
that the Effective Date has occurred, until the Trials End Date
(the “
Minimum Period ”).
In order to facilitate such purpose, during the Minimum Period,
Inmarsat shall cooperate with and affirmatively support the MSV
Parties’ efforts in respect of the Trials implemented in
accordance with this Agreement, including supporting the MSV
Parties’ requests for necessary regulatory approvals. In
addition to the foregoing, the MSV Parties agree to use their
respective best efforts to procure the expeditious completion of
the Triggering Investment in order to cause the Effective Date to
occur.
ARTICLE 3 - COORDINATION OF L-BAND SPECTRUM
Section 3.1
Commitments Regarding Coordination
.
(a)
General .
The Parties’ coordination of the operation of their
respective L-band systems includes: (i) the use of spectrum by
the MSV Parties and Inmarsat with respect to their North American
operations as set forth in the Phase 0 Spectrum Plan (as defined
in Section
3.2(a) hereof),
the Phase 1 Spectrum Plan (as defined in Section
3.2(b) hereof),
the Phase 1A Spectrum Plan (as defined in Section
3.2(b) hereof),
the Phase 1 Alternative Spectrum Plans (as defined in
Section
3.2(c) hereof),
the Phase 2 Spectrum Plan (as defined in Section
3.2(d) hereof)
and the Primary Default Spectrum Plan (as defined in Section 3.2(e)
hereof, and, collectively with the Phase 0 Spectrum Plan, the Phase
1 Spectrum Plan, the Phase 1A Spectrum Plan, the Phase 1
Alternative Spectrum Plans and the Phase 2 Spectrum Plan, the
“
Spectrum Plans ”);
(ii) ongoing agreement and coordination between the Parties
relating to the development and maintenance of spectrum
coordination, loan, re-use, assignment and/or other mechanisms to
make available third party L-band spectrum or space segment
capacity in ITU Region 2 as detailed in Section
3.4 below
and in Exhibit M (the “
Third Party Spectrum Plans ”),
which support and are integrated in the Spectrum Plans;
(iii) agreement on a comprehensive L-band Coordination Plan
(as set out in Section 3.3 and
Exhibit L )
that incorporates the Spectrum Plans and the Third Party Spectrum
Plans and specific parameters to which the Parties have already
agreed; and (iv) agreement on the terms for operation of ATC in ITU
Region 2 (as set out in Section
3.5 and
Exhibits N ,
N Prime, T, U and V )
and as set out in Exhibit M with regard to each of the provisions
(i)-(iv) above as applicable. The Spectrum Plans, the Third Party
Spectrum Plans, the L-band Coordination Plan, and the terms for
operation of ATC are collectively referred to herein as the
“
Plans .”
(b)
Full Benefits of the Trials, the Plans
, and the Arbitration
s .
The Parties agree to use their respective best commercial efforts
to take all actions (or omit to take actions) necessary or
desirable in order to ensure that each Party obtains the full
benefit of the Trials in accordance with Article 2 above, the Plans
in accordance with the provisions of this Article 3, the results of
any Disputed Spectrum arbitration in accordance with
Section
3.2 ,
L-band Coordination Plan arbitration in accordance with
Section
3.3 ,
or ATC arbitration in accordance with Section 3.5 (together the
“
Arbitrations ”)
or other benefits of the Parties described hereunder. The Parties
shall provide for satellite and spectrum coordination and use that
is consistent with the Plans (including, in the event of any
default, any modification to a previously operative, or adoption of
an agreed, Spectrum Plan), in each Party’s future commercial
relationships and operators’ agreements (including any
renewals or extensions of existing commercial relationships and
operators’ agreements) and in its correspondence and actions
with or before the ITU, all relevant Administrations and third
party coordination agreements. Without limiting the generality of
the foregoing, the Parties agree that if, at any time, any
particular Trial, Plan, Arbitration or other benefit hereunder
cannot readily be made available to the Parties or any of them
hereunder in accordance with the terms of this Agreement because
the Administrations or other third parties indicate disapproval of
any of the same, then, subject to compliance with applicable
regulatory and legal requirements, the Parties shall use their
respective best commercial efforts (except as otherwise specified
in relation to any rights hereunder) to take all actions
(a) to remedy the situation, to make fully available the full
benefit of the Trials in accordance with Article 2 above, the Plans
in accordance with the provisions of this Article 3 (including, in
the event of any default, or any modification to a previously
operative, or adoption of an agreed, Spectrum Plan), the
Arbitrations in accordance with Sections 3.2, 3.3 and 3.5, and/or
all other benefits of the Parties as described hereunder, failing
achievement of which (b) to enter into alternative commercial
contractual arrangements (including, for example, capacity lease or
similar agreements) to the extent necessary to ensure that the
Parties realize operational and commercial benefits that mirror, as
closely as possible, the operational and commercial benefits
intended to be derived from the Trials, the Plans, the
Arbitrations, and/or other benefits hereunder as aforesaid, without
net incremental cost or benefit to each other for access to the
full benefit of the Trials, Plans, Arbitrations, and/or other
benefits hereunder.
(c)
Multi-lateral Coordination .
The Parties agree that the 1999 SSA adopted pursuant to the Mexico
City MOU, the underlying technical parameters of those
arrangements, and subsequent bilateral arrangements, as modified by
the provisions of this Agreement and by the Plans to be implemented
pursuant to this Agreement, comprise a multilateral international
spectrum coordination arrangement among the Parties under the
Mexico City MOU. The Parties will use their best commercial efforts
to implement this Agreement and the Plans (as modified from time to
time under this Agreement),
inter alia ,
through bilateral and/or multilateral temporary loans as provided
in the Mexico City MOU, and also, to the extent provided in Article
3 hereof and
Exhibit M ,
by seeking to implement certain Spectrum Plans through changes to
their respective frequency assignments under the Mexico City MOU or
other mutually agreed means. Such changes to the Parties’
respective frequency assignments may be sought, as appropriate, by
seeking superseding spectrum sharing agreement(s) thereunder (each
an “
SSA ”),
modifying the Mexico City MOU, and/or replacing the annual SSAs
with more long-term agreements.
(d)
Overall Purposes of Coordination
.
As further provided in this Agreement, the Parties agree to use
their respective best commercial efforts (i) to implement the
Spectrum Plans contemplated by this Agreement by establishing
spectrum usage rights with the Administrations, with any other
appropriate regulatory authorities and with any and all affected
satellite system operators and (ii) to enjoy the benefits
thereof on an ongoing basis including, as applicable, pursuant to
commercial agreements, bilateral or multilateral
operator-to-operator agreements, ITU coordination agreements,
and/or through regulatory action of the ITU, FCC, Industry Canada,
Ofcom, and/or any other relevant regulatory body. The Parties shall
take all actions in support of (and none against) the utilization
of the L-band in ITU Region 2 as may be required pursuant to the
terms of this Agreement or as may reasonably be requested by any
Party in order to implement such terms. The Parties shall not seek
to amend, delay or accelerate the Plans or other arrangements
contemplated by this Article 3, or act in any way contrary to such
Plans and arrangements, except by prior written
agreement.
Section 3.2
Spectrum Plans; Usage of L-band Spectrum by the
Parties
.
(a)
The Phase 0 Spectrum Plan .
Except as described to the contrary herein, the Phase 0 Spectrum
Plan, as described in
Exhibit D ,
shall take effect on the Signing Date and remain in effect until
the Parties transition to (i) either the Phase 1 Spectrum Plan
or the Phase 1A Spectrum Plan in accordance with
Section 3.2(b) hereof,
or (ii) any of the Phase 1 Alternative Spectrum Plans in
accordance with Section
3.2(c) hereof,
in which event the provisions of such subsequent applicable
Spectrum Plan will supersede and replace the arrangements in
this Section
3.2(a) .
(i)
Disputed Spectrum
. In
order to resolve existing disputes amongst MSVLP, MSV Canada,
Inmarsat, and their Related Parties, as defined herein, regarding
access to certain L-band frequencies addressed in the 1999 SSA and
subsequent arrangements, which frequencies are identified in
Exhibit C (such
frequencies, the “
Disputed Spectrum ”),
the Parties agree that:
(A)
The
Parties will effect mutual loans and right of use swaps in
accordance with the Phase 0 Spectrum Plan to ensure that
Inmarsat shall continue to have use of spectrum equivalent in
amount to the Disputed Spectrum (the “
Tolled Spectrum ”)
from the Signing Date until the earlier of (1) the sixth
anniversary of the Signing Date (the “
Sixth Anniversary ”)
and (2) the date on which the Phase 1 Condition is satisfied (the
“
Tolling Period ”).
Such
Tolled Spectrum includes portions of the band segments that
comprise the Disputed Spectrum and is identified more specifically
in
Exhibit D .
(B)
To
preserve the Parties’ respective legal claims and rights
with respect to the Disputed Spectrum and the Tolled Spectrum,
each Party agrees that the Tolling Period shall be excluded
when determining whether any civil or administrative claim is
time-barred by statute of limitations, laches or any other
time-related defenses. Each Party further agrees that it will
not assert or argue in any civil or regulatory forum that the
other Party has failed to act in a timely fashion and will not
plead any statute of limitations, laches or other similar
defense to any civil or regulatory action. Each Party agrees
that the continued use of any portions of the Tolled Spectrum
by the other Parties during the Tolling Period, as
contemplated by the Phase 0 Spectrum Plan, shall not be
asserted or claimed by any Party to be a waiver or estoppel of
the other Party’s rights or claims regarding the
Disputed Spectrum or the Tolled Spectrum, nor shall such
continued use be asserted as any similar defense or counter
claim. This provision shall not apply to toll any applicable
limitations period for any claim or cause of action based on a
new, distinct or different transaction or occurrence unrelated
to the Disputed Spectrum or the Tolled Spectrum.
(C)
In
the event that either (1) the Phase 1 Condition has been
satisfied or (2) the MSV Parties have elected under Section
3.2(c)(ii) to implement the Phase 1 Alternative Spectrum
Plan – Without Intended Spectrum, then the MSV
Parties shall forthwith be deemed to have unconditionally and
irrevocably withdrawn their dispute against Inmarsat in
relation to the Disputed Spectrum and shall in full and final
settlement of such dispute be deemed to have provided Inmarsat
with full rights of use to all of the Tolled Spectrum.
(D)
From
September 1, 2011, in the event that (1) the Phase 1 Condition
has not been satisfied and (2) the MSV Parties have not
elected under Section 3.2(c)(ii) to implement the Phase 1
Alternative Spectrum Plan – Without Intended
Spectrum, the Parties agree to submit to binding arbitration
for resolution of their respective rights with respect to the
Disputed Spectrum, which may be initiated by the MSV Parties
in their absolute discretion at any time thereafter and prior
to the Sixth Anniversary in accordance with sub-paragraph (E)
below. The Parties agree that the arbitral decision shall
solely determine rights of use to the Disputed Spectrum and no
damages shall be the subject matter of determination by the
arbitrator. Costs with respect to the arbitration process to
be incurred by the Parties shall be shared equally, it being
understood that each Party’s respective expenses for
participation in the arbitration, preparation for the
arbitration and defense of their respective positions shall be
borne solely by each respective Party. The Parties agree in
the context of the arbitration, that if any Disputed Spectrum
is awarded to the MSV Parties by the arbitrator, Inmarsat
shall transition the use of a like amount of the Tolled
Spectrum to the MSV Parties on or before the later of (a) the
Sixth Anniversary and (b) the date falling twelve months
following the arbitral award, and such transfer shall be in
full satisfaction of the arbitral award and the dispute
between the Parties relating to the Disputed Spectrum. Other
than as provided above, neither Party shall bring any claim or
pursue any legal or other remedies in any court or other venue
with respect to such Party’s claims regarding the
Disputed Spectrum, except if necessary to enforce provisions
of this Agreement implementing the arbitrator’s award.
Without limiting the generality of the foregoing, each Party
hereby waives any claims or defenses of forum non conveniens,
subject matter jurisdiction, waiver, estoppel, laches, or
other similar claims or defenses to the bringing or pursuit of
any such claims regarding the Disputed Spectrum. Each Party
further agrees (i) that arbitration with respect to the
Disputed Spectrum as set forth above shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law, and (ii) to fully
cooperate in seeking to implement such arbitral determination
of their respective rights to the Disputed Spectrum with the
Administrations, other regulatory authorities and governmental
bodies, and under the Mexico City MOU. The Parties further
agree that, if such arbitrator finds in favor of the MSV
Parties, in whole or in part, the MSV Parties shall be
assigned the use of frequencies from the Tolled Spectrum as
described above (the “
New MSV Frequencies ”)
in such a manner as to provide the MSV Parties with as much
additional contiguity as possible while reducing Inmarsat’s
contiguity as little as possible, provided however, that such
additional spectrum shall be made available for the use of the MSV
Parties only during such time as the Phase 0 Spectrum Plan is
operative. Inmarsat agrees to take whatever actions are necessary
to cease its operations using the New MSV Frequencies, so as to
permit the MSV Parties to begin operations on all such frequencies
by the later of (a) the Sixth Anniversary and (b) the date falling
twelve (12) months following the arbitral award.
(E)
Binding
arbitration in accordance with sub-paragraph (D) above shall
be administered by the American Arbitration Association
(“AAA”) in accordance with its most expedited
commercial arbitration rules, consistent with the intent of
the Parties to resolve the dispute with a final arbitration
decision within six (6) months of initiating the process.
Unless the Parties can otherwise agree on an arbitrator within
ten (10) days of initiation of the arbitration process, the
AAA will provide a list of arbitrators. In such case, each
Party will be permitted to strike one name from a list of
arbitrators provided by the AAA and the AAA will then choose
the arbitrator(s) from the remaining names. Any award, order
or judgment pursuant to the arbitration is final and may be
entered and enforced in any court of competent jurisdiction.
The arbitration shall be held in New York, New York and the
arbitrator(s) shall apply New York law.
(ii)
Phase 0 Block Loan.
The
MSV Parties shall loan and thereby make available for no
consideration further L-band spectrum designated in the Phase 0
Spectrum Plan as “
Phase 0 Block ”
to Inmarsat until the earlier of (1) the Phase 1 Completion
Date and (2) the Sixth Anniversary;
provided always, that
in the event that Phase 1 Transition is still being implemented at
the Sixth Anniversary, the term of the loan will be extended to the
Phase 1 Completion Date, though later and provided further, for the
avoidance of doubt, that in the event that either the Primary
Default Spectrum Plan or the Alternative Default Spectrum Plan is
brought into effect under this Agreement, the Phase 0 Block Loan
shall be superseded by such Spectrum Plan. The terms governing the
loan of the Phase 0 Block, and Inmarsat’s use of such
spectrum, shall be as set forth in a definitive loan agreement
substantially in the form attached as
Exhibit B3 (the
“
Phase 0 Block Loan Agreement ”)
.
(iii)
Access to North America.
The
Parties shall use their respective best commercial efforts to
ensure that frequencies made available to each of the Parties under
the Phase 0 Spectrum Plan (including for the avoidance of doubt,
with respect to Inmarsat, the Tolled Spectrum and the Phase 0
Block) shall for the duration of the Phase 0 Spectrum Plan be
available for use by such Party or Parties and its Related Parties
for their activities in North America without restriction (except
as set out in this Agreement and the provisions of the Phase 0
Block Loan Agreement).
(iv)
Phase 0 Implementation. Promptly
following the Signing Date, the Parties agree to take all actions
necessary to complete the transition of their respective agreed
spectrum usage to the spectrum designations shown in the Phase 0
Spectrum Plan, so that the L-band spectrum in ITU Region 2 will be
made available for the Parties’ respective use in accordance
with the Phase 0 Spectrum Plan (the “
Phase 0 Transition ”).
The Phase 0 Transition shall occur as soon as practicable after the
Signing Date (consistent with the orderly transition of all the
Parties’ respective affected customers and affected
services), and in any event shall be completed no later than six
(6) months following the Signing Date, provided however that
MSVLP shall have twelve (12) months following the Signing Date to
migrate customers receiving services pursuant to the Private
Network Satellite Services Agreement executed by and between MSVLP
and Geologic Solutions, Inc., as amended on August 1, 2007 (the
“
Geologic Migration ”).
On and from the Signing Date, Inmarsat may operate on spectrum
designated for use to Inmarsat in the Phase 0 Spectrum Plan and not
currently utilized by it to the extent that Inmarsat can reasonably
do so without causing harmful interference to the MSV
Parties’ operations not yet transitioned from that spectrum
and provided further that by doing so Inmarsat does not prejudice
or delay the expeditious completion of the Phase 0 Transition in
accordance with the above provisions. Moreover, a reasonable delay
of up to three (3) months may be permitted for the Parties to
complete the Phase 0 Transition (other than the Geologic
Migration), provided that the obligated Party promptly provides
notice of any potential delay to the other Parties as soon as such
Party becomes aware of the possibility of the same. For such
purposes, “reasonable delay” shall mean any delay
caused either by (1) required regulatory approvals that are not
obtained despite the obligated Party’s best commercial
efforts undertaking to obtain such approvals on a timely basis to
avoid such delay; and/or (2) regulatory compliance or requirements
that cause delay despite the obligated Party’s best
commercial efforts undertaking to expedite such compliance and the
performance of such requirements; and/or (3) inability to avoid
delay because of third party hardware or software component
obsolescence, shortages, or development, distribution, change-out
or installation delays or similar events that were beyond the
reasonable control of the obligated Party,
provided, however ,
that in any event falling under items (1) to (3) above the timely
obligations under this Agreement (including with respect to Phase 0
Transition activities) are not conditioned or qualified in any way
by (a) the rights of the MSV Parties or their distribution partners
and their service providers (provided that it is understood that
delays caused by end customers shall fall potentially within the
criteria of item (3) above provided the same was beyond the
reasonable control of the obligated Party using best commercial
efforts undertaken to expedite timely transition), (b) the costs to
be incurred by the MSV Parties, or the liability that the MSV
Parties may incur to any of its Related Parties in effecting the
Phase 0 Transition, or (c) the costs that would have been incurred
by any of the MSV Parties to compensate hardware or software
manufacturers or developers to implement a timely Phase 0
Transition within the period scheduled for transition under
this Section
3.2(a)(iv) .
(b)
The Phase 1 and Phase 1A Spectrum Plan
s .
(i)
Phase 1 Notice. At
any time from the Effective Date until September 1, 2011 (such
period, the “
Phase 1 Notice Period ”),
the MSV Parties may, subject to satisfaction of the Phase 1
Condition set out at Section
3.4(c) below,
deliver to Inmarsat a notice (the “
Phase 1 Notice ”),
which notice shall be in writing and delivered in accordance with
the notice provisions in Section
9.2 of
this Agreement, stating that the MSV Parties elect (subject to
compliance with sub-paragraph (ii) below) to commence the process
for transitioning from the Phase 0 Spectrum Plan
either:
(A)
to
the spectrum plan set forth in
Exhibit E1 (the
“
Phase 1 Spectrum Plan ”)
(a “
Phase 1 Election ”);
or
(B)
to
the spectrum plan set forth in
Exhibit E2 (the
“
Phase 1A Spectrum Plan ”)
(a “
Phase 1A Election ”);
provided
that in the event that the MSV Parties shall deliver an
Acceleration Notice to Inmarsat pursuant to the provisions
in Section
3.2(b)(ii) below,
a Phase 1 Notice may not be delivered to Inmarsat within one
year following the delivery of the Acceleration Notice, and
the MSV Parties may only then make a Phase 1 Election under
sub-paragraph 3.2(b)(i)(A) above. If the MSV Parties fail to
deliver the Phase 1 Notice by September 1, 2011 or the Phase 1
Notice shall otherwise become incapable of being given (for
example if the conditions to the Effective Date are not
satisfied), the notice opportunity shall lapse on such date
(or on the date on which the Phase 1 Notice becomes incapable
of being given, as applicable) and Inmarsat shall thereafter
have no further obligations to implement either the Phase 1
Spectrum Plan, or the Phase 1A Spectrum Plan, or the Phase 2
Spectrum Plan. The date on which the Phase 1 Notice is given,
or alternatively the notice opportunity lapses, shall for the
purposes of this Agreement be the “
Phase 1 Notice Date. ”
(ii)
Phase 1 Implementation. Promptly
following the later of (1) valid delivery of the Phase 1
Notice in accordance with Section
3.2(b)(i) above,
(2) the delivery of payment in full to Inmarsat of the Effective
Date Shares and the Trigger Shares in accordance with Sections 4.1
and 4.2 below and the First Installment in accordance with
Section
4.3(b) below,
and (3) satisfaction or fulfillment of all required legal and
regulatory conditions and requirements (if any) for the
implementation of (A) the Phase 1 Spectrum Plan (in the event a
Phase 1 Election has been made) or (B) the Phase 1A Spectrum Plan
(in the event a Phase 1A Election has been made), as determined in
the reasonable discretion of the MSV Parties based on the advice of
counsel (satisfaction or fulfillment of which will be certified to
Inmarsat by MSVLP and its counsel) (the “
Phase 1 Final Regulatory Approval ”)
(the “
Trigger Date ”),
and subject to the making of the remaining Phase 1 Compensation
installments as provided in Section
4.3 ,
the Parties agree to take all actions necessary to commence the
transition of their respective spectrum use rights provided in (A)
the Phase 1 Spectrum Plan (in the event a Phase 1 Election has been
made) or (B) the Phase 1A Spectrum Plan (in the event a Phase 1A
Election has been made), so that the L-band spectrum in ITU Region
2 will be available for the Parties’ respective use in
accordance with (A) the Phase 1 Spectrum Plan (in the event a Phase
1 Election has been made) or (B) the Phase 1A Spectrum Plan (in the
event a Phase 1A Election has been made) (the “
Phase 1 Transition ”).
Phase 1 Transition shall be completed as soon as practicable after
the Trigger Date (consistent with the orderly transition of all the
Parties’ respective affected customers and affected
services), and in any event shall be completed no later
than:
(A)
thirty
(30) months following the Trigger Date (in the event a
Phase 1 Election has been made) provided that the MSV Parties,
conditioned upon prior payment in full to Inmarsat of the
Acceleration Payment in accordance with Section
4.3(a) below,
may elect in their absolute discretion by notice in writing to
Inmarsat on or after the Effective Date (an “
Acceleration Notice ”)
to accelerate the foregoing transition period so that the
transition to the Phase 1 Spectrum Plan shall be completed no later
than eighteen (18) months following the Trigger Date, provided that
issuance of the Acceleration Notice shall not obligate the MSV
Parties to issue the Phase 1 Notice, or
(B)
eighteen
(18) months following the Trigger Date (in the event a Phase
1A Election has been made)
(in
either case, the transition completion date is referred to
herein as the “
Phase 1 Completion Date ”).
Beginning twelve (12) months following the Trigger Date, the
MSV Parties may operate on spectrum provided for use to the MSV
Parties in the Phase 1 Spectrum Plan (in the event a Phase 1
Election has been made) or in the Phase 1A Spectrum Plan (in the
event a Phase 1A Election has been made) and not currently utilized
by the MSV Parties to the extent that the MSV Parties can
reasonably do so without causing harmful interference to Inmarsat
operations not yet transitioned from that spectrum and provided
further that by doing so the MSV Parties do not prejudice or delay
the expeditious completion of the Phase 1 Transition in accordance
with the above provisions. Moreover,
a reasonable delay of up to nine (9) months may be permitted
for the Parties to complete the Phase 1 Transition, provided that
the obligated Party promptly provides notice of any potential delay
to the other Parties as soon as such Party becomes aware of the
possibility of the same. For such purposes, “reasonable
delay” shall mean any delay caused either by (1) required
regulatory approvals that are not obtained despite the obligated
Party’s best commercial efforts undertaking to obtain such
approvals on a timely basis to avoid such delay; and/or (2)
regulatory compliance or requirements that cause delay despite the
obligated Party’s best commercial efforts undertaking to
expedite such compliance and the performance of such requirements;
and/or (3) inability to avoid delay because of third party hardware
or software component obsolescence, shortages, or development,
distribution, change-out or installation delays or similar events
that were beyond the reasonable control of the obligated
Party,
provided, however ,
that in any event falling under items (1) to (3) above the timely
obligations under this Agreement (including with respect to Phase 1
Transition activities) are not conditioned or qualified in any way
by (a) the rights of Inmarsat or its distribution partners and
their service providers (provided that it is understood that delays
caused by end customers shall fall potentially within the criteria
of item (3) above provided the same was beyond the reasonable
control of the obligated Party using best commercial efforts
undertaken to expedite timely transition), (b) the costs to be
incurred by Inmarsat, or the liability that Inmarsat may incur to
any of its Related Parties in effecting the Phase 1 Transition, or
(c) the costs that would have been incurred by Inmarsat to
compensate hardware or software manufacturers or developers to
implement a timely Phase 1 Transition within the period scheduled
for transition under this Section
3.2(b)(ii) .
Following
the making of all payments up to and upon the Phase 1 Completion
Date in accordance with the requirements of Section
4.2 to
Section
4.4 below,
each of the Parties shall maintain its respective rights of use to
spectrum in ITU Region 2 in accordance with the Phase 1 Spectrum
Plan (in the event a Phase 1 Election has been made) or the Phase
1A Spectrum Plan (in the event a Phase 1A Election has been made)
for so long as such Party (or its successor in interest) is an
L-band MSS operator in ITU Region 2, except as provided in
Section
3.2(e) .
(iii)
In
the event that there shall be a MSV Payment Default (as such
term is defined by Section
4.5(c) )
and Inmarsat shall make an election under Section 3.2(e)(i),
then the Parties agree that the Phase 1 Spectrum Plan (in the
event a Phase 1 Election has been made) or the Phase 1A
Spectrum Plan (in the event a Phase 1A Election has been made)
shall not be implemented, Phase 1 Transition shall be
discontinued (without prejudice to MSV’s payment
obligations under Section
4.2 to
Section
4.4 ),
the Phase 2 Spectrum Plan shall become inoperable and the
Parties shall either (A) revert to spectrum usage under the
Phase 0 Spectrum Plan (as adjusted pursuant to the provisions
of Section
3.2(e) )
until the Sixth Anniversary, whereupon the Alternative Default
Spectrum Plan will come into effect in accordance with
Section
3.2(c)(iv) below
or (B) the Primary Default Spectrum Plan will come into effect
in accordance with Section 3.2(e)(i) below, in each case in
accordance with the Inmarsat election made under such Section
3.2(e)(i).
(c)
The Phase 1 Alternative Spectrum Plans
.
In the event that the MSV Parties shall not issue a Phase 1 Notice
on or before September 1, 2011 or the Triggering Investment is not
completed on or before the date falling two years following the
Signing Date (the earlier such date being the “
Phase 1A Date ”),
or (in the case of sub-paragraph (iv) below) Section 3.2(e) shall
apply, then the Parties agree that:
(i)
except
in the circumstances set forth at sub-paragraph (iv) below, in
the event that the Intended Spectrum is available to the
Parties on the Phase 1A Date, then on and from the Sixth
Anniversary each Party’s spectrum position in ITU Region
2 shall be as set forth in
Exhibit G1 (“
Phase 1 Alternative Spectrum Plan – With Intended
Spectrum ”)
and the Phase 1 Alternative Spectrum Plan - With Intended Spectrum
shall thereafter remain in effect for such time as such Party (or
its successor in interest) shall remain an L-band MSS operator in
ITU Region 2; or
(ii)
in
the event that the Intended Spectrum is not available to the
Parties on the Phase 1A Date, the MSV Parties may, provided
that they have not initiated arbitration proceedings under
Section 3.2(a)(i)(D), elect by notice in writing not less than
one year prior to the Sixth Anniversary to re-band in
accordance with this sub-paragraph (ii), and following the
making of such election on and from the Sixth Anniversary each
Party’s spectrum position in ITU Region 2 shall be as
set forth in
Exhibit G2 (“
Phase 1 Alternative Spectrum Plan – Without Intended
Spectrum ”)
and the Phase 1 Alternative Spectrum Plan – Without
Intended Spectrum shall thereafter remain in effect for such time
as such Party (or its successor in interest) shall remain an L-band
MSS operator in ITU Region 2; or
(iii)
in
the event that the Intended Spectrum is not available to the
Parties on the Phase 1A Date and the MSV Parties do not elect
to re-band in accordance with sub-paragraph (ii) above, then
each Party’s spectrum position in ITU Region 2 shall
continue to be as per the Phase 0 Spectrum Plan (as
appropriately modified by the decision of the arbitrator and
the resultant transfer of Tolled Spectrum by Inmarsat to the
MSV Parties in accordance with Section
3.2(a)(i)(D) ),
which shall remain in effect for such time as such Party (or
its successor in interest) shall remain an L-band MSS operator
in ITU Region 2; or
(iv)
in
the event that Inmarsat shall exercise its option under
Section
3.2(e)(i) (1),
then on and from the Sixth Anniversary each Party’s
spectrum position in ITU Region 2 shall be as set forth
in
Exhibit H2 (the
“
Alternative Default Spectrum Plan ,”
together with the Phase 1 Alternative Spectrum Plan –
With Intended Spectrum and the Phase 1 Alternative Spectrum
Plan – Without Intended Spectrum, the “
Phase 1 Alternative Spectrum Plans ”)
and the Alternative Default Spectrum Plan shall thereafter remain
in effect for such time as such Party (or its successor in
interest) shall remain an L-band MSS operator in ITU Region
2.
(d)
The Phase 2 Spectrum Plan
(i)
Phase 2 Notice .
At
any time from January 1, 2010 until January 1, 2013 (such period,
the “
Phase 2 Notice Period ”),
and provided that (a) the MSV Parties shall have validly
delivered a Phase 1 Notice in accordance with Section
3.2(b)(i) above
and (b) the Phase 2 Condition as set out at
Section 3.4(c) below
shall be fully satisfied and (c) the MSV Parties shall have duly
paid Inmarsat (1) the Phase 1 Shares in accordance with
Section
4.4 and
(2) the First Phase 2 Payment in accordance with
Section 4.5(a) ,
the MSV Parties may deliver to Inmarsat a notice (the
“
Phase 2 Notice ”),
which notice shall be in writing and delivered in accordance with
the notice provisions in Section
9.2 of
this Agreement, stating that the MSV Parties elect to commence the
process for transitioning the Parties’ respective spectrum
usage to the spectrum plan set forth in
Exhibit F (the
“
Phase 2 Spectrum Plan ”).
If the MSV Parties deliver the Phase 1 Notice in accordance
with Section
3.2(b)(i) but
fail to deliver the Phase 2 Notice by January 1, 2013, then the
Phase 2 Notice may be given by Inmarsat, acting in its absolute
discretion, to the MSV Parties on any date between (and including)
January 1, 2013 and January 1, 2015 provided only that the Phase 2
Condition shall be fully satisfied.
(ii)
Phase 2 Implementation
. Promptly
following delivery of the Phase 2 Notice, the Parties agree to take
all actions necessary to commence the transition of their
respective spectrum usage to the spectrum designations shown in the
Phase 2 Spectrum Plan (the “
Phase 2 Transition ”),
so that the L-band spectrum will be available for the
Parties’ respective use in ITU Region 2 in accordance with
the Phase 2 Spectrum Plan as soon as practicable (consistent with
the orderly transition of all the Parties’ respective
affected customers and affected services), and in any event the
Phase 2 Transition shall be completed no later than twenty-four
(24) months following the date of issuance of the Phase 2
Notice (the date that is 24 months following the date of issuance
of the Phase 2 Notice is referred to herein as the “
Phase 2 Completion Date ”).
Moreover, a reasonable delay of up to nine (9) months may be
permitted for the Parties to complete the Phase 2 Transition,
provided that the obligated Party promptly provides notice to the
other Parties of any potential delay as soon as such Party becomes
aware of the possibility of the same. For such purposes,
“reasonable delay” shall mean any delay caused either
by (1) required regulatory approvals that are not obtained despite
the Party’s best commercial efforts undertaking to obtain
such approvals on a timely basis to avoid such delay; and/or (2)
regulatory compliance or requirements that cause delay despite the
Party’s best commercial efforts undertaking to expedite such
compliance and the performance of such requirements; and/or (3)
inability to avoid delay because of third party hardware or
software component obsolescence, shortages, or development,
distribution, change-out or installation delays or similar events
that were beyond the reasonable control of the obligated
Party,
provided, however ,
that in any event falling under items (1) to (3) above the timely
obligations under this Agreement (including with respect to Phase 2
Transition activities) are not conditioned or qualified in any way
by (a) the rights of Inmarsat or its distribution partners and
their service providers (provided that it is understood that delays
caused by end customers shall fall potentially within the criteria
of item (3) above provided the same was beyond the reasonable
control of the obligated Party using best commercial efforts
undertaken to expedite timely transition), (b) the costs to be
incurred by Inmarsat, or the liability that Inmarsat may incur to
any of its Related Parties in effecting the Phase 2 Transition, or
(c) the costs that would have been incurred by Inmarsat to
compensate hardware or software manufacturers or developers to
implement a timely Phase 2 Transition within the period scheduled
for transition under this Section
3.2(d)(ii) .
Following the completion of the implementation of the Phase 2
Spectrum Plan, each Party shall maintain its respective rights of
use to spectrum in ITU Region 2 in accordance with the Phase 2
Spectrum Plan for so long as such Party (or its successor in
interest) is an L-band MSS operator in ITU Region 2, and subject to
the continued making of payments as provided in Section
4.5 ,
except that:
(A)
In
the event that the MSV Parties terminate the Phase 2 Annual
Payments in accordance with Section 4.5(b), then the Parties
will revert to the Phase 1 Spectrum Plan (in the event a Phase
1 Election was made) or the Phase 1A Spectrum Plan (in the
event a Phase 1A Election was made); and
(B)
In
the event that any of Sections 3.2(e)(ii) to (iv) applies,
then the provisions of such Sections will take priority and
the Parties will implement the Primary Default Spectrum Plan
or the Alternative Default Spectrum Plan (as determined in
accordance with Sections 3.2(e)(ii) to (iv), as applicable) in
replacement of the Phase 2 Spectrum Plan.
(e)
Default Spectrum Plan
s .
In
the event that there
shall have occurred a MSV
Payment Default, then
the Parties agree that:
(i)
where
a MSV Payment Default takes place after the Phase 1 Notice
Date but before the Phase 1 Completion Date, then Inmarsat
shall in its absolute discretion elect by notice in writing to
the MSV Parties either (1) to convert the Phase 0 Block Loan
into a permanent assignment in its favor, whereupon the
Parties agree that the Phase 0 Block Loan shall automatically
be converted into such permanent assignment to Inmarsat and
the Alternative Default Spectrum Plan shall come into effect
on the Sixth Anniversary, or (2) to bring into effect the
Primary Default Spectrum Plan (being the spectrum usage plan
set out at
Exhibit H1 )
on
a date (not later than the Sixth Anniversary) to be notified by
Inmarsat to the MSV Parties, without prejudice to Inmarsat’s
remedies available to it as a matter of law in relation to the MSV
Payment Default ;
(ii)
where
a MSV Payment Default takes place on or after the Phase 1
Completion Date but prior to payment of the Five Years Payment
Amount, then (1) in the event that the Phase 1A Spectrum Plan
is then or has previously been in effect, the Alternative
Default Spectrum Plan shall automatically be brought into
effect and (2) in the event that the Phase 1 Spectrum Plan is
then or has previously been in effect, the Primary Default
Spectrum Plan shall automatically be brought into effect, in
each case on
a date (not later than the Sixth Anniversary) to be notified
by Inmarsat to the MSV Parties, without prejudice to
Inmarsat’s remedies available to it as a matter of law
in relation to the MSV Payment Default ;
(iii)
where
a MSV Payment Default takes place after the payment of the
Five Years Payment Amount, Inmarsat shall have the right in
its absolute discretion to elect either to pursue the remedies
available to it as a matter of law, or may in lieu thereof
elect to implement the Primary Default Spectrum Plan, which
Plan shall be brought into effect on a date (not later than
the Sixth Anniversary) to be notified by Inmarsat to the MSV
Parties; and
(iv)
where
in any of the above cases the Primary Default Spectrum Plan is
to be brought into effect, or the Alternative Default Spectrum
Plan is to be brought into operation pursuant to sub-paragraph
(ii) above, the Parties agree to take all actions necessary to
commence the transition of their respective allocated spectrum
usage to the spectrum assignments shown in the Primary Default
Spectrum Plan, or the Alternative Default Spectrum Plan, as
applicable, so that the L-band spectrum will be available for
the Parties’ respective use in accordance with the
Primary Default Spectrum Plan or the Alternative Default
Spectrum Plan, as applicable, as soon as practicable
(consistent with the orderly transition of all the
Parties’ respective affected customers and affected
services), and in any event shall be completed no later than
nine months following the date of the notification by Inmarsat
triggering the implementation of the Primary Default Spectrum
Plan or the Alternative Default Spectrum Plan, as
applicable.
(v)
Following
implementation in accordance with the foregoing, each Party
shall maintain its respective usage of spectrum in ITU Region
2 in accordance with the relevant Spectrum Plan adopted
pursuant to the above provisions for so long as such Party (or
its successor in interest) is an L-band MSS operator in ITU
Region 2.
(f)
[This paragraph intentionally
omitted.]
(g)
Transitions to Different Spectrum Plans
.
In
the case of the Phase 0 Spectrum Plan, upon the Signing Date, in
the case of the Phase 1 Spectrum Plan (in the event a Phase 1
Election is made), upon the Trigger Date, in the case of the Phase
1A Spectrum Plan (in the event a Phase 1A Election is made), upon
the Trigger Date, in the case of the Phase 2 Spectrum Plan, upon
delivery of the Phase 2 Notice, in the case of any of the Phase 1
Alternative Spectrum Plans (other than the Alternative Default
Spectrum Plan), immediately following the Phase 1A Date, in the
case of the Primary Default Spectrum Plan and the Alternative
Default Spectrum Plan, immediately upon the relevant triggering
event set out at Section
3.2(e) ,
and in the case of the Third Party Spectrum Plans, immediately upon
their adoption into or amendment to any other Spectrum Plan in
accordance with the provisions of this Agreement, each Party shall
expedite the development of an implementation plan, which shall be
coordinated with each of the other Parties, that will reflect all
such actions as shall be necessary or advisable to effect the
implementation of the L-band frequency ITU Region 2 use
arrangements set forth in the respective Spectrum Plan, including,
but not limited to (i) replacement or modification of user
terminals, including in the case of the Phase 1 and Phase 2
Spectrum Plans, adding appropriate filters to all terminals
operating on the Inmarsat system that might otherwise receive
interference from or cause interference to the operation of the
systems of the MSV Parties operating in accordance with this
Agreement (or otherwise addressing such interference by other
appropriate means, including at the absolute discretion of Inmarsat
by discontinuance or replacement of any affected service or
terminal), (ii) filings with Administrations and other
regulatory authorities and governmental bodies of the revised
spectrum assignments and revised technical sharing criteria, as
necessary, (iii) interim and/or temporary spectrum sharing
arrangements or assignments so as to minimize disruption to the
Parties’ customers and/or accelerate the process of
transition, and (iv) the transition of any and all of its
customers, resellers, agents or other parties (whether under its
control or otherwise) or with whom it has a contractual or other
business relationship and who are using or may come to use any
spectrum required by this Agreement to be relinquished by such
Party, to ensure the effective implementation of that particular
Spectrum Plan. The Parties agree that such implementation plans
will reflect the following commitments of the Parties:
(x) each Party shall complete the transition of all end users
of its services in a manner consistent with that particular
Spectrum Plan and such Party’s obligations hereunder and
under its implementation plan with respect to that particular
Spectrum Plan, (y) to the extent a Party adds any new end
users after the Signing Date, all such additional users shall (to
the extent that the Party can procure the same) be integrated into
the Party’s implementation plan with respect to that
particular Spectrum Plan, and (z) agreements and arrangements
with a Party’s customers, distributors, resellers and end
users will (to the extent that the Party can procure the same) be
modified, amended and/or extended only in a manner which is
consistent with such Party’s obligations hereunder and under
its implementation plan with respect to that particular Spectrum
Plan.
(h)
Additional Transition Actions
.
The
Parties shall take the following steps which will be deemed part of
the implementation plan with respect to each Spectrum Plan: the
Parties will meet on a quarterly basis to review the transition
plans referred to above and to provide any updates to such plans,
including any material issues that have occurred or may occur, with
a goal of trying to work cooperatively to effect a smooth
transition for their respective services, customers, resellers,
agents and end users, and will provide each other updated
confirmation (in the minutes of the meeting and/or other written
confirmation) that there are no other issues outstanding which
place the continued and timely execution of their respective
implementation plans at risk.
(i)
Transition Costs
.
With
the exception of the payment of the Phase 1 Compensation to
Inmarsat, as described in Section
4.2 to
Section
4.4 and
the sharing of costs and expenses relating to the acquisition and
maintenance of Additional L-band Spectrum as set out at Section 3.4
below, each Party shall be solely responsible for (and shall
indemnify the other Party against) any and all damages, costs,
claims, losses and expenses incurred by it in connection with the
transition of such Party’s customers, resellers, agents or
other parties (whether under its control or otherwise) or with whom
it has a contractual or other business relationship, in connection
with the implementation of any Spectrum Plan, including the removal
of any such Persons from or to any other blocks of L-band spectrum
coordinated for use by such Party, or to other or replacement
frequencies and/or services.
Section 3.3
Spectrum Sharing
(a)
Scope .
(i)
In
order to minimize interference among the Parties’
respective operations and increase and make more efficient use
of the L-band spectrum and orbital resource in ITU Region 2,
the Parties have jointly developed the “
L-band Coordination Plan ”
as described in this Section 3.3 and attached as
Exhibit L ,
which describes how the spectrum usage described in the Spectrum
Plans will be used by all the satellite systems indicated in
Exhibit I (“
Newly Coordinated
Satellites ”)
and
Exhibit J (“
Previously Coordinated Satellites ”).
The satellite systems (including both the space stations and their
associated ground segments) identified in
Exhibit I and
Exhibit J are
collectively referred to as the “
Coordinated Networks. ”
(ii)
Except
as expressly limited in this Section
3.3 or
Exhibit L ,
each of the Parties may use their absolute discretion to operate
using any of the spectrum made available to that Party in any of
the Spectrum Plans between or among any of its Coordinated
Networks, including without regard to the Administration that has
licensed the Coordinated Network.
(iii)
ATC
operations in ITU Region 2 are to be governed separately
by Section
3.5 .
This Section
3.3 and
Exhibit L do
not limit ATC operations, so long as such operations are consistent
with the parameters specified in Section
3.5 and
Exhibits N or
N Prime (as
applicable), T, U and V. In implementing the L-band Coordination
Plan, the Party coordinating its operations shall have absolute
discretion to coordinate based on a dynamic use of all or any part
of the spectrum available to it under the prevailing Spectrum Plan
for any variety of combinations of ATC and MSS operations. Thus, a
Party may coordinate for use of a particular set of frequencies for
any combination or combinations of ATC and MSS
operations.
(b)
Term and Termination .
(i)
The
L-band Coordination Plan shall be effective on the Signing
Date and shall have a term consisting of the life of the
satellites that are included in the L-band Coordination Plan
and any Replacement Satellites or Future Satellites admitted
to the L-band Coordination Plan.
(ii)
Any
Party shall be entitled to substitute another satellite for
any of its satellites included in the L-band Coordination Plan
only to the extent that such satellite qualifies as a
“
Replacement Satellite” (as
such term is defined in
Exhibit A ).
The Parties shall use their respective best commercial efforts to
include in the L-band Coordination Plan any “
Future Satellite” (as
such term is defined in
Exhibit A )
in accordance with the provisions of this Section
3.3 ,
mutatis mutandis ,
to the extent that including such satellites is not inconsistent
with othe r
provisions of this Agreement.
(c)
Process for Implementing the L-band Coordination Plan
.
(i)
As
soon as practicable after the Signing Date, the Parties shall
meet to exchange additional information and plan for future
negotiations with other L-band operators.
(ii)
At
such meeting, the Parties shall exchange the information
identified in
Exhibit K and
provide
each other with any of their relevant commitments with regard to
third party coordination agreements outside the Mexico City MOU
interfacing with North America subject always to the Parties’
respective confidentiality obligations to third
parties.
(iii)
Each
Party agrees to review proposals by the other Party, that may
seek additional flexibility for satellite operations. Each
such Party will not unreasonably withhold approval of such
other Party’s proposed modifications, provided that such
Party is able to reasonably demonstrate that such
modifications can be made without increasing the level of
interference to such other Party.
(iv)
The
Parties agree to establish a working group and to periodically
meet and review topics relevant to this Section 3.3 and
Exhibit L .
(v)
In
the event of any disputes with regard to the L-band
Coordination Plan, such disputes will be subject to binding
arbitration, consistent with the same process (including AAA
expedited commercial arbitration rules), waivers and other
relevant agreements as set forth in Section 3.2(a)(i)(E)
hereof.
Section 3.4
Access to Additional L-Band Spectrum
.
(a)
During
the Availability Period, the Parties will cooperate in good
faith and use their respective best commercial efforts to
(i) acquire and maintain access to and rights to use,
additional L-band spectrum in North America to which the
Parties do not already have rights including any spectrum
coordinated for use to the Mexican mobile satellite operator
(“
Mexico ”)
pursuant to the 1999 SSA (such spectrum collectively, the
“
Additional L-Band Spectrum ”),
consistent with the Parties’ desire to implement the Spectrum
Plans, and (ii) obtain the consents of Mexico and its
telecommunications administration, and the Russian mobile satellite
operator (“
Russia ”)
and its telecommunications administration, as required to
facilitate the full implementation of this Agreement in accordance
with its terms (including the Trials referred to in Article 2
above, the adoption of the Spectrum Plans and the transition
activities required to implement the same, and the L-band
Coordination Plan). Such best commercial efforts shall include the
Parties’ efforts and actions as in effect today relating to
joint international opportunities, and as modified by the terms set
out below in this Section
3.4 .
(b)
If
the Parties are not able to negotiate access to
Additional
L-Band Spectrum coordinated for use by Mexico
(the
“
Intended Spectrum ”)
pursuant to the terms of
Exhibit M (and
such spectrum is not otherwise awarded to the Parties through other
means), then the Parties agree to continue to use their respective
best commercial efforts during the Availability Period to cooperate
to obtain, for the benefit of the Parties, access to the Intended
Spectrum in accordance with the agreements set forth herein
including, without limitation, the Spectrum Plans. Consistent with
the foregoing, the Parties will work cooperatively with their
respective Administrations to effectuate the rebanding and reuse of
L-band spectrum in ITU Region 2 consistent with this
Agreement.
(c)
The
MSV Parties may give the Phase 1 Notice at any time that the
Intended Spectrum has been made available to the MSV Parties
and Inmarsat for integration in the Phase 1 Spectrum Plan or
the Phase 1A Spectrum Plan, whichever is to be brought into
effect following the Phase 1 Condition, and utilization by the
Parties in accordance with the terms of this Agreement, (the
“
Phase 1 Condition ”),
provided ,
however ,
that in the event that less than all the Intended Spectrum is made
available, the MSV Parties may elect to accept the lesser available
spectrum in a proportionately modified Phase 1 Spectrum Plan or
Phase 1A Spectrum Plan, whichever is to be brought into effect
following the Phase 1 Condition, that approximates as closely as
possible the Spectrum Plan (including the Plan’s spectrum
contiguity) that would have been achieved had the Intended Spectrum
been made fully available provided always that in any such
circumstances the position of Inmarsat is entirely unaffected, in
terms of the absolute amount of L-band spectrum assigned to
Inmarsat under the relevant Spectrum Plan, the contiguity of such
spectrum assignments and the usability of such spectrum
assignments. The MSV Parties (or Inmarsat, as applicable) may give
the Phase 2 Notice at any time that the Intended Spectrum is
available to the MSV Parties and Inmarsat for integration in the
Phase 2 Spectrum Plan and utilization by the Parties in accordance
with the terms of this Agreement (the “
Phase 2 Condition ”),
provided ,
however ,
that in the event that less than all the Intended Spectrum is made
available, the MSV Parties may elect to accept the lesser available
spectrum in a proportionately modified Phase 2 Spectrum Plan that
approximates as closely as possible the Spectrum Plan (including
the Plan’s spectrum contiguity) that would have been achieved
had the Intended Spectrum been made fully available provided always
that in any such circumstances the position of Inmarsat is entirely
unaffected, in terms of the absolute amount of L-band spectrum
assigned to Inmarsat under the relevant Spectrum Plan, the
contiguity of such spectrum assignments and the usability of such
spectrum assignments.
(d)
To
the maximum extent possible subject to applicable legal and
regulatory requirements, each of the MSV Parties, on the one
hand, and Inmarsat, on the other hand, agree to cooperate and
use their respective best commercial efforts during the
Availability Period to implement a transaction to access the
Intended Spectrum under which:
(i)
the
costs and burdens of which shall be shared equally between the
MSV Parties, on the one hand, and Inmarsat, on the other hand;
and
(ii)
the
benefits:
(A)
during
such time as the Phase 0 Spectrum Plan is operative,
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