Roll-Over of Incentive Amounts. (a) In the event the first Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, all Incentive Amounts applicable to such Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter during its Orbital Design Life that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Earning and payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts). (b) In the event the second Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, but the first Satellite Launched was not a Constructive Total Loss or Total Loss, all Incentive Amounts applicable to such second Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts). (c) In the event both the first and second Satellites Launched pursuant to this Contract are Constructive Total Losses or Total Losses for reasons not attributable to Contractor, then Contractor shall be eligible to earn the Incentive Amounts applicable to the first Satellite in accordance with paragraph (a) above, and with respect to the second Satellite, Contractor shall receive payment from Customer of the total Incentive Amount applicable to such second Satellite (that is, $12,500,000) within thirty (30) Calendar Days following receipt by Customer of any applicable Launch Insurance proceeds therefor unless Customer ordered an optional fourth Satellite (pursuant to Article 30 (Options)) prior to Launch of the second Satellite, in which case such Incentive Amounts shall be rolled-over to such optional fourth Satellite. Earning and payment of such amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such amounts to be calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts). (d) In the event Customer has not ordered the Ground Spare Satellite or an Optional Satellite prior to the Launch of a Satellite, Customer shall insure the Incentive Amounts as part of the Launch Insurance purchased by Customer.
Appears in 1 contract
Samples: Satellite Purchase Contract (Xm Satellite Radio Holdings Inc)
Roll-Over of Incentive Amounts. (a) In the event the first Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, all Incentive Amounts applicable to such Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter during its Orbital Design Life that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Earning and payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts).
(b) In the event the second Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, but the first Satellite Launched was not a Constructive Total Loss or Total Loss, all Incentive Amounts applicable to such second Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together 52 ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts).
(c) In the event both the first and second Satellites Launched pursuant to this Contract are Constructive Total Losses or Total Losses for reasons not attributable to Contractor, then Contractor shall be eligible to earn the Incentive Amounts applicable to the first Satellite in accordance with paragraph (a) above, and with respect to the second Satellite, Contractor shall receive payment from Customer of the total Incentive Amount applicable to such second Satellite (that is, $12,500,000) within thirty (30) Calendar Days following receipt by Customer of any applicable Launch Insurance proceeds therefor unless Customer ordered an optional fourth Satellite (pursuant to Article 30 (Options)) prior to Launch of the second Satellite, in which case such Incentive Amounts shall be rolled-over to such optional fourth Satellite. Earning and payment of such amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such amounts to be calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts).
(d) In the event Customer has not ordered the Ground Spare Satellite or an Optional Satellite prior to the Launch of a Satellite, Customer shall insure the Incentive Amounts as part of the Launch Insurance purchased by Customer.
Appears in 1 contract
Samples: Satellite Purchase Contract (Xm Satellite Radio Holdings Inc)
Roll-Over of Incentive Amounts. (a) In the event the first Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, all Incentive Amounts applicable to such Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter during its Orbital Design Life that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Earning and payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Roll- Over Incentive Amounts).
(b) In the event the second Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, but the first Satellite Launched was not a Constructive Total Loss or Total Loss, all Incentive Amounts applicable to such second Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts).
(c) In the event both the first and second Satellites Launched pursuant to this Contract are Constructive Total Losses or Total Losses for reasons not attributable to Contractor, then Contractor shall be eligible to earn the Incentive Amounts applicable to the first Satellite in accordance with paragraph (a) above, and with respect to the second Satellite, Contractor shall receive payment from Customer of the total Incentive Amount applicable to such second Satellite (that is, $12,500,000) within thirty (30) Calendar Days following receipt by Customer of any applicable Launch Insurance proceeds therefor unless Customer ordered an optional fourth Satellite (pursuant to Article 30 (Options)) prior to Launch of the second Satellite, in which case such Incentive Amounts shall be rolled-over to such optional fourth Satellite. Earning and payment of such amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such amounts to be calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts). ****** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
(d) In the event Customer has not ordered the Ground Spare Satellite or an Optional Satellite prior to the Launch of a Satellite, Customer shall insure the Incentive Amounts as part of the Launch Insurance purchased by Customer.
Appears in 1 contract
Samples: Satellite Purchase Contract (Xm Satellite Radio Holdings Inc)
Roll-Over of Incentive Amounts. (a) In the event the first Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, all Incentive Amounts applicable to such Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Grou nd Spare Satellite for each quarter during its Orbital Design Life that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Earning and payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Roll- Over Incentive Amounts).
(b) In the event the second Satellite Launched pursuant to this Contract is a Constructive Total Loss or Total Loss for reasons not attributable to Contractor, but the first Satellite Launched was not a Constructive Total Loss or Total Loss, all Incentive Amounts applicable to such second Satellite shall be eligible to be earned by Contractor following the Launch and In-Orbit Testing of the Ground Spare Satellite for each quarter that the Ground Spare Satellite is a Satisfactorily Operating Satellite. Payment of such Incentive Amounts shall be in accordance with Article 12.3 (Calculation and Earning E xxxxxx of Incentive Amounts), together ***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. with interest on such Incentives Amounts calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts).
(c) In the event both the first and second Satellites Launched pursuant to this Contract are Constructive Total Losses or Total Losses for reasons not attributable to Contractor, then Contractor shall be eligible to earn the Incentive Amounts applicable to the first Satellite in accordance with paragraph (a) above, and with respect to the second Satellite, Contractor shall receive payment from Customer of the total Incentive Amount applicable to such second Satellite (that is, $12,500,000) within thirty (30) Calendar Days following receipt by Customer of any applicable Launch Insurance proceeds therefor unless Customer ordered an optional fourth Satellite (pursuant to Article 30 (Options)) prior to Launch of the second Satellite, in which case such Incentive Amounts shall be rolled-over to such optional fourth Satellite. Earning and payment p ayment of such amounts shall be in accordance with Article 12.3 (Calculation and Earning of Incentive Amounts), together with interest on such amounts to be calculated in accordance with Article 12.7 (Interest on Roll-Over Incentive Amounts). ****** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
(d) In the event Customer has not ordered the Ground Spare Satellite or an Optional Satellite prior to the Launch of a Satellite, Customer shall insure the Incentive Amounts as part of the Launch Insurance purchased by Customer.
Appears in 1 contract
Samples: Satellite Purchase Contract (Xm Satellite Radio Holdings Inc)