1
EXHIBIT 10.5.2
AMENDMENT NO.2 TO
ORBCOMM SYSTEM PROCUREMENT AGREEMENT
This Amendment No. 2 ("Amendment No. 2") to ORBCOMM System Procurement
Agreement is entered into this 24th day of March, 1997 between ORBCOMM Global,
L.P. ("ORBCOMM Global") and Orbital Sciences Corporation ("Orbital").
WITNESSETH
WHEREAS, the parties previously entered into ORBCOMM System
Procurement Agreement dated as of September 12, 1995 (the "Procurement
Agreement"); and
WHEREAS, the parties with to amend certain terms and conditions
regarding the payment of certain milestones set forth therein;
NOW THEREFORE, the parties agree as follows:
ARTICLE 1 - DEFINITIONS
Terms used herein and not otherwise defined shall have the meanings
assigned thereto in the Procurement Agreement.
ARTICLE 2 - AMENDMENTS
Section 2.1 The first sentence of Section 4.1(b) of the
Procurement Agreement shall be deleted in its entirety and replaced with the
following:
Orbital shall invoice ORBCOMM Global on a monthly basis for a maximum
of 90% of its costs incurred during such month plus, to the extent
permitted by Section 4.1(f), such portion of the cost in excess of the
maximum amount to be invoiced to ORBCOMM Global in accordance with
such Section 4.1(f) and not previously invoiced and paid; provided
however that Orbital shall not be entitled to invoice ORBCOMM Global
under Section 4.1(a) and this Section 4.1(b) in a cumulative total
amount greater than $125,884,929.
Section 2.2 Section 4.1(c) of the Procurement Agreement shall be
deleted in its entirety and replaced with the following:
The remaining 10% of costs incurred in any month through December 1997
may be invoiced incrementally on completion of the Category B
Milestone for that month as set forth in Exhibit B; provided however
that Orbital shall not be entitled to invoice ORBCOMM Global under
this Section 4.1(c) in an amount greater than $13,987,214.
2
Section 2.3 Section 4.1(e) of the Procurement Agreement shall be
deleted in its entirety and replaced with the following:
The total amount paid under Section 4.1(a), (b) and (c) shall not
exceed $139,872,143 (the "Total Costs"). In the event costs incurred
through December 31, 1997, are less than the Total Costs, the parties
shall negotiate additional Category B Milestones for payment of the
remaining balance of the Total Costs.
Section 2.4 Exhibit B to the Procurement Agreement shall be
deleted in its entirety and replaced with Exhibit B attached to this Amendment
No. 2.
SECTION 3 - MISCELLANEOUS
Section 3.1 This Amendment No. 2 shall be construed in accordance
with and governed by the laws of the Commonwealth of Virginia, without giving
effect to the provisions, policies or principles thereof related to choice or
conflict of laws.
Section 3.2 No changes to the Procurement Agreement are
authorized hereby except as otherwise specified in this Amendment No. 2.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 2 as
of the day and year first above written.
ORBCOMM GLOBAL, L.P.
By:
-------------------------
Name:
Title:
ORBITAL SCIENCES CORPORATION
By:
-------------------------
Name:
Title:
2
3
EXHIBIT B
ORBCOMM PROGRAMMATIC MILESTONES
-----------------------------------------------------------------------------------------------------
# DESCRIPTION DATE
-----------------------------------------------------------------------------------------------------
1 Determine FM1&2 antenna performance deficiencies Sep-95
-----------------------------------------------------------------------------------------------------
2 Preliminary Launch Vehicle ICD Distributed Oct-95
-----------------------------------------------------------------------------------------------------
3 Preliminary Electrical ICD Distributed Nov-95
-----------------------------------------------------------------------------------------------------
4 Avionics Box CDR Dec-95
-----------------------------------------------------------------------------------------------------
5 Comm EDU (SRX,STX,G/W) Characterization Test Jan-96
-----------------------------------------------------------------------------------------------------
6 EDU System Comprehensive Performance Test Feb-96
-----------------------------------------------------------------------------------------------------
7 Electrical ICD Release Mar-96
-----------------------------------------------------------------------------------------------------
8 EDU System Environmental Test Complete Apr-96
-----------------------------------------------------------------------------------------------------
9 Qual Unit Testing Complete on Structure, Avionics Box, BCR, SRX, STX, Gateway, May-96
and Antenna
-----------------------------------------------------------------------------------------------------
10 First Plane Flight Structures Delivered to OSC Jun-96
-----------------------------------------------------------------------------------------------------
11 Preliminary Flight Checklist Released Jul-96
-----------------------------------------------------------------------------------------------------
12 Qual Vehicle Thermal Vacuum Test complete Aug-96
-----------------------------------------------------------------------------------------------------
13 First 4 sets of Bus Flight units including Harness Ready for Integration Sep-96
-----------------------------------------------------------------------------------------------------
14 Acceptance Test - First Pegasus Motor Set Oct-96
-----------------------------------------------------------------------------------------------------
15 HAPS Integration & Test Completed Successfully Nov-96
-----------------------------------------------------------------------------------------------------
16 First Pegasus Launch - Separation from Pegasus Carrier Aircraft Dec-96
-----------------------------------------------------------------------------------------------------
17 First 8 sets of Flight STX, SRX, Gateway & Antenna units Ready for Integration Jan-97
-----------------------------------------------------------------------------------------------------
18 24 sets of BCR, Avionics Box, SRX, STX & Gateway units Ready for Integration. Feb-97
-----------------------------------------------------------------------------------------------------
19 12th spacecraft completes Integration and Test Mar-97
-----------------------------------------------------------------------------------------------------
20 Plane 1 Preliminary Test Report Submitted Apr-97
-----------------------------------------------------------------------------------------------------
21 First Pegasus Launch - Separation from Pegasus Carrier Aircraft. May-97
-----------------------------------------------------------------------------------------------------
22 Third Motor Set Flight Sim 1 Performed Jun-97
-----------------------------------------------------------------------------------------------------
23 20th spacecraft completes Integration and Test Jul-97
-----------------------------------------------------------------------------------------------------
24 First Pegasus Launch - Separation from Pegasus Carrier Aircraft Aug-97
-----------------------------------------------------------------------------------------------------
25 26 sets of Solar Arrays complete Sep-97
-----------------------------------------------------------------------------------------------------
26 26 Structures complete preparation Oct-97
-----------------------------------------------------------------------------------------------------
27 Second HAPS completes Integration and Test Nov-97
-----------------------------------------------------------------------------------------------------
28 26 Antenna Assemblies ready for Integration Dec-97
-----------------------------------------------------------------------------------------------------
Note : Milestones 16, 21 & 24 are identical and should be invoiced
simultaneously upon First Pegasus Launch. All milestones are
expected to be completed prior to the Third Pegasus Launch.
