Attachment contract

contract

OTHER submitted by Star One

contract

2005-10-14

This document pretains to SAT-PPL-20050708-00144 for Permitted List on a Satellite Space Stations filing.

IBFS_SATPPL2005070800144_461741

                                 STEPTOE &JOHNSON«
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                                                            RECE
   October 14, 2004                                                   IvED
                                                             OCT 1 4 2005
   Ma rl H. Dortch
   Secr ene                                             Feden Commnteatons Conmison
         etary                                                Offce t Serey
   Federal Communications Commission
   455 12th Street, S.W.
   Washington, D.C. 20554

   Res      Star One S.A., File No. SAT—PPL—20050708—00144, Call Sign $2678
   Dear Ms. Dortch:
                  Star One S.A. (*Star One"), in accordance with Section 25.164(c) of the Rules,"
   hereby submits a public redacted version of the contract (and related materials) between Star One
   and Alcatel Space for the construction ofthe Star One C2 satellite — a Brazilian—licensed, hybrid
   C— and Ku—band satellite —— to be located at the 70° W.L.orbit location. The information is being
   submitted to demonstrate compliance with the contract execution milestone contained in the
   declaratory ruling adding the Star One C2 satellite tothe Permitted Space Station List"
                   In a separate submission, Star One is requesting confidential treatment for the
   portions of the contract and related materials that were redacted from this public version." The
   redactions are indicated by brackets in the public version.




            ‘arc       §25.164(0).

          ? See Stamp Grant, SAT—PPL—2005070—00144, at condition (f) (granted Sept.9, 2005;
   corrected Sept. 13, 2005) (establishing a contract execution milestone of September 9, 2006).
           * See attached Letter from Philip L. Malet, Counsel to Star One, to Marlene H. Dortch,
   Secretary, FCC, (Oct. 14, 2005).




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                                                                        STEPTOE &JOHNSONw


Marlene H. Dortch
October 14, 2005
Page2

              Please do not hesitate to contact me if you have any questions conceming this
submission.
                                           Respectfully submitted,



                                           Counselfor Star One $.4.
Enclosures
e:
Andrea Kelly, Intemational Bureau
Robert Nelson, Interational Bureau


   wAMENDMENT N°4 To THE



SATELLITE EQUIPMENT CONTRACT




          BETWEEN




        STARONE S.A.




      ALCATEL SPACE


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Amendment N° 4 to the Satellite Equipment Contract, dated as of January, // 2005 by
and between StarOne S.A. (‘StarOne"), a sociedade anonima duly organized and existing
under the laws of the Pederative Republic of Brazil, having its principal offices at Praia de
Botafogo, 228 — 30 andar CEP 22359—900, Rio de Janeiro, RJ, Brazil, and Aleatel Space
("Alcatel"), a sociéié. anonymg,duly organized and existing under the laws of France and
having its principal place ofbusiness3t 12, rue de l Baume, 75008 Paris, France (StarOne
and Alcatel, each a "Party" and collectively the "Parties®) (the "Fourth Amendment").
WHEREAS, StarOne has signed a contract with Aleatel on May 21, 2003 (the "Contzact®)
for the purchase of a Satellte (the "StarOne C1 Satellte") and Associated Equipment and
corresponding services. The Contract has been amended thereafter through Amendments 1,
2 and 3 ; and
WHEREAS, StarOne has signed a contract with Alcatel on May 23, 2003 (the "Ground
Equipment Contrct‘) for the purchase of Ground Equipment related to the Star One C1
Satellite ; and
WHEREAS, StarOne has elected, pursuant to Article 2.3 of the Contract, to exercise the
Option 19.1, as set forth in Appendix C, for the purchase and in—orbit delivery of an
additional Satellite (‘Star One C2 satellite")

Capitalized terms used but not otherwise defined herein shall have the meanings set forth to
them in the Contrict

NOW, THEREFORE, subject to the terms and conditions herein, Alcatel undertakes
to deliver in orbit to StarOne the StarOne CZ Satellite in accordance with and
pursuant to the Contract as amended by this Fourth Amendment, and, in
consideration of the foregoing, the Parties hereby agree as follows :


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 1—The following articles are modified by this Fourth Amendment :


 ARTICLE 1 Definitions m{l' Interpretation
                                       a
 The following defiaitions shall be added to Article 1.1 of the Contract :


 "StarOne C1 Satellite" means the satellite purchased in accordance with the Contract, as
 amended by ts Firt, Second and Third amendments®.
 "StarOne C2 Satellite" means the follow on satelite, as set forth in Option 19.1 of
 Appendiz C, purchased by StarOne under the Fourth Amendment to the Contract".
 "EDC of the Fourth Amendment® means the date which is defined according to the criteria
 set forth in ArticlII of the Fourth Amendment to this Contract."



ARTICLE 2 Scope of the Contract
The following Article 2.2.1 shall be added to Article 2.2 of the Contract:

en           ‘The scope of this Contract in relation to StarOne C2 Satelite does not include
[
which shall be negotiated and acquired by Star One from Alcatel prior to EDC of the
Fourth Amendment in the frame of a dedicated amendment to the Ground Equipment
Contrect."


The following Article 2.3.1 shall be added to Article 2.3 of the Contract:
31           Star One shall have the right to exercise the Options in relation to the Star One
C2 Satellite as described in Appendix C, through amendments pursuant to Article 24.9." )

                                                          7


ARTICLE3 Description of the Activites


Thefollowing Article 3.1.1 shall be added to Article 3.1 of the Contract:
                                w      ~
"3.1.4       Appendices A, B, C, E, F and the Technical Specifications shall be applicable
to the Activites related the StarOne C2 Satelite, except as otherwise modified, or
specifically defined to be valid only for Star One C1 Satelite or Star One C2 Satellite, by
the attachments of the Fourth Amendment to this Contract. A new Exhibit A2, named
Exhibit A2 for StarOne C2 Satellite Baseline without L—Band_301104, applicable only for
StarOne C2 Satelite, has been issued and is attached to the Fourth Amendment to the
Contract."




ARTICLE 4 Prices and Taxes

The following Article 4.1.1 shall be added to Article 4.1 of the Contract:

"4.1.1.——    In consideration for the Activities in relation to Star One C2 Satellte, StarOne
shall pay to Alcatel [




ARTICLE 6 Master Program Schedule and Delivery Schedule

‘The following Article 6.2.1 shall be added to Article 6.2 of the Contract:

"62.1      For the purpose of the Contract, in relation to the StarOne C2 Satellite, the
extiest Launch Date currently planned for the StarOne C2 Satellite is estimated to be LA &
                                                       4                                  a


    Strtais
                                                                                   ] Ary
 Emdifiufiun of this Launch Date shall be notified by Alcatel in writing to Star One and
 agreed by the Parties, which shall for all other purposes of the Contract, continue to be
 responsible to meet the mutually agreed revised Master Program Schedule, subject to the
 provisions of Articles 167. 4p 16.10. [

 ‘The following Article 6.3.1 shall be added to Article 6.3 of the Contract:

 «s3           [
               1


 ARTICLE 7 Payment Method
 Milestone Payment
 The following Article 7.5.1 shall be added to Article 7.5 of the Contract:
 ©7.5.1.—   Aleatel shall be entiled to invoice a Milestone Payment related to Star oues
 Satelite when it s completed, in sccordance with the payment plan shown in Appendix E
 attached to the Fourth Amendment to this Contract."



Orbha'l Performance Incentives

The following Article 7.10.1 shall be added to Article 7.10 of the Contract:

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                                                   1
The following Article 7.12.1.1 shall be added to Article 7.12.1 of the Contract:


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                      1
 The following Article 7.12.2.1 shall be added to Article 7.12.2 of the Contract:

 ©7.12.2.1 Orbital Performance Incentives camed upon In—Orbit Acceptance Review for
 the StarOne C2 Satellite. After In—Orbit Acceptance Review of the StarOne C2 Satellte,
the following shall apply:
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                                                       1

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                                                                                    1
                                 [                              1
       [                                                                 1

The following Article 7.12.3.1 shall be added to Article 7.12.3 of the Contract:

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The following Article 7.13.1 stall be.added to Article 7.13 of the Contract:

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ARTICLE 8: Alcatel‘s linbility for Late Delivery


‘The following Article 8.6.1 shall be added to Article $.6 of the Contract:
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ARTICLE 9           Stop Work and Termination for Default

The following Article 9.1.9 shall be added to Article 9 of the Contract:

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The following Article 9.5 shall be added to Article 9:

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ARTICLE 22 — Obligations Of StarOne

The following Article 22.1.1 shall be added to Article 22.1 of the Contract:
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ARTICLE 24 — Miscellancous

The following Articles 2433 and 24.3.4 shall be added to section "Guaranty" of the
Contract:

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                                                          If — Effective Date of the Fourth Amendment

                                                          1       The Effective Date ofghis Fourth Amendment ("EDC of Fourth Amendment") shall
                                                          be the date when the following conditions have been fulfilled :

                                                              ) signature ofthis Fourth Amendment by both Parties ; and
                                                              ® [




                                                         IIT — Misccllancous

                                                          1      All terms and conditions of the Contract which are not expressly modified by this
                                                         Amendment remain in fullforce and effect for the purpose ofthe Contract, as amended.
                                                         2       References to "Satelite" in the Contract could be references to cither the StarOne
                                                         C1 Satellite or the C2 Satelite, or both, depending on the context in which the term is
                                                         inserted.

                                                          3.     ‘StarOne, no later than thirty (30) Working days from the signature of this Fourth
                                                         ‘Amendment, shall have the option, at its sole discretion, to reject the insertion in the
                                                         Contract of Article 9.1.9, and its sub—articles, made through this Fourth Amendment. If
                                                         such is the choic ofStarOne, then Article $.6 (and not Article 8.6.1, as added herein) shall
                                                         ‘be considered automatically replaced (es if were added to Contract on the date of
                                                         signature ofthis Fourth Amendment)by the following:                                      |_/v‘ 4




                                                                                                                                                 14


Should StarOne not exercise its aforementioned right on or before thity (30) Working days
from the date of signature of this Fourth Amendment, then Article 9.1.9 and its sub—articles
shall be deemed to have been definitely added to the Contract and not Article $.6 as written
above.

4        Within thity (30) days affer the signature of the Fourth Amendment, Alcatel shall
make its reasonable efforts to improve the conditions of the Launch Contract. In case of"
improvement of such conditions, this Fourth Amendment shall be modified to reflect such
improved conditions. Otherwise, this Fourth Amendment shall remain unchanged."


          1                                               /                              1}‘,



                                                                                       15


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                                                                                     In witness whereof, the Parties hereto have signed two (2).copies of equal content and
                                                                                   — form, so that they may produce their due and legal results
                                                                                                              v      &
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1 C 9m M M w N w e n S e w e ue




                                                                                                                                                                     16


APPENDIX E Satellite of Amendment 4




       REDACTED


    EXHIBIT A1:
SYSTEM REQUIREMENTS


     REDACTED


      EXHIBIT A2:
COMMUNICATION PAYLOAD
     REQUIREMENT


      REDACTED


      EXHIBIT A3:
SATELLITE REQUIREMENTS


      REDACTED


      q:).                              Amendment 3 to C.0OE—011/03
StarOne




          —      AMENDMENT N*3 To ThE


              SATELLITE EQUIPMENT CONTRACT


      &                 BETWEEN



                      STAR ONE 8A.




                        ALCATEL


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                                                                  Amendment 3 to C.DOE—011/03
     Amendment N° 3 to the Satefte Equipment Contract dated as of January 3" 2008, between
     Star One S.A. (‘Star One‘), a sociedade andnima duly organized and existing under the laws
     ofthe Federative Republic ofBrazi, having its principal ofes at Praia de Botafogo, 228 — 30
     andar CEP 22359—900, Rio de Janeiro, RJ, Brazil, and Alcatel Space, a soclété anonyme duly
     organized and existing under the laws of France and having ts principal place of business at
     Rue de la Baume 12, 75008 Paris, France (Ster One and Alcatel each a "Pary" and
     collectively,the "Parties®)
     WHEREAS, Star One has signed a contract with Aleatel on May 21st, 2003 (*the Contract")
    _ for the purchase ofthe Satelite such Contract came into force on September 30®, 2003

     WHEREAS, the Parties have signed Amendments 1 and 2, on November 19° 2003 and March
     31° 2004, respectively
%
     WHEREAS, the Parties now desire o amend certain specifications of Exhibit A2 to reflect the
     modifications agreed between the Partls on September 6°, 2004 with respect to the
    ‘definitions used for Uplink / DownLink Antenna Isolation and the solation specifications for
     the C—band and Ku—band coverage zones, as well asa correction of the X—Band polygon
               —_ NOW, THEREFORE, the Partes hereby agree as follows:
                   The Exhibit A2 shall be updated in accordance with the. modifications that are
    annexed in this Amendment 3
    All other terms and conditions of the Satelite Equipment Contract, as modiied by the
    previous Amendments 1 and 2, not affected by this Amendment 3 shall remain applicable in
    full forceand effect

    In witness whereof, the Parties hereto have signed three (3) copies ofequal content and form;
m   so thatthey may produce their due and legal results.                                              )
    Date: January 3°,2005                                           es
                                            By Star One:                                     ga ont
        fl,—_                                                                               aurloica
       gee
    Carfos Henrique Moreira                            arl
       Attorney—in fact                                A
    President EMBRATEL                      Procurement Exécutive Difector — EMBRATEL

                                          By Aucatet:
                                          x P
                                         Pascale Sourisse
                                       Chairman and CEO

                                                                                       (‘?Im        @


                                 STEPTOE &JOHNSON«
                                          artormeys at caw

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    October 14, 2005

    Marlene H. Dortch
    Secretary
    Federal Communications Commission
    The Portals, Room TW—A325
    455 12th Street, S.W.
    Washington, D.C. 20554
                          REQUEST FOR C             IDENTIAL TREATME

    Re:     StarOneS.A.
            Petition for Declaratory Ruling —— Contract Execution Milestone
            File No. SAT—PPL—20050708—00144, Call Sign 52678
    Dear Ms Dortch:

                    Pursuant to Sections 0.457 and 0.450 of the Commission Rules governing the
    submission ofconfidential materials, 47 C.F.R. §§ 0.457, 0.459, Star One S.A. ("Star One"),
    respectfully requests that portions ofthe attached "Amendment No. 4 to the Satellte Equipment
    Contract between Star One S.A. and Alcatel Space" ("C2 Contract") be treated as confidential
    and not routinely available to the public." A redacted version ofthe C2 Contractis being
    submitted separately for placement in the public file.

            ‘ The C2 Contractisthe result of Star One‘s exercise of an option in its contract for the
    construction ofthe Star One CI satelite (°C1 Contract"). Confidential and redacted versions of
    the C1 Contract were submitted to the Commission in July 2005. See Star One S.4., Peritionfor
    Declaratory Ruling, SAT—PPL—20050706—00143 (filed July 6, 2005); Letter from Alfred Mamlet,
    Counsel to Star One to Marlene H. Dortch, Secretary, FCC, File No. SAT—PPL—20050706—00143
    (July 6, 2005). To the extent necessary, the C2 Contract should be read together with the C1
    Contract. A copy of "Amendment No. 3 to the Satellite Equipment Contract between Star One
    S.A. and Alcatel® is also attached.




wasiineron       +/   New vork      +/   réornix     +   tos anorits        +   tonbon       +    srusstls


                                                                              STEPTOE &JOHNSON«


Marlene H. Dortch
October 14, 2005
Page2

               The C2 Contract contains information relating to the construction of the Star One
C2 satelite, licensed by Brazil, to be located at the 70° W.L. orbit location. Star One is
submitting the C2 Contract in satisfaction ofthe contract execution milestone in condition (1 of
the above—referenced declaratory ruling and in accordance with Sections 25.137 and 25.164(a) of
the Rules.®. Star One respectfully requests that the Commission confirm expeditiously that the
C2 Contract satisfies the contract execution milestone so that Star One can reduce the amount of"
itsperformance bond for the satellite by 25%."
                ‘The redacted information in the C2 Contract qualifies as "commercial or financial
information‘ that "would customarily be guarded from competitors"regardless ofwhether or not
such materials are protected from disclosure by a privilege. See 47 C.F.R. § 0.457(d); see also
Critical Mass Energy Project v. NRC, 975 F.2d 871, 879 (D.C. Cir. 1992)(‘(WJe conclude that
financial or commercialinformation provided to the Government on a voluntary basis is
‘confidential" for the purpose of Exemption 4 if it is ofa kind that would customarily not be
released to the public by the person from whom it was obtained.").
                in addition, the C2 Contract contains sensitive information thati disclosed could
place Star One and Alcatel Space at a competitive disadvantage, including specific information
regarding price terms, interest terms, insurance terms and obligations, allocation of liability, and
termination provisions, and therefore warrant protection under Section 0.459 ofthe Rules. Both
Star One and Alcatel Space would be placed at a significant disadvantage if these detailed terms
of their contract were revealed to competing service providers, who stand to benefit
competitively from any knowledge ofthe redacted commercial terms included in these materials.
               In support ofthis request, and pursuant to Section 0.459(b) ofthe Rules, Star One
hereby states as follows:
                1:     As noted above, the information for which confidential treatment is sought
                       is being submitted to satisty Star One‘s contract execution milestone under
                       the above—referenced declaratory ruling and the Rules. See 47 C.FR.


         * Star One is separately fling an application to modify its authorization to reflect the
updated technical parameters of the satellite set forth in the C2 Contract. See SAT—MOD—
200510_—____       (filed Oct. 14, 2008).
       * Star One filed a performance bond for the Star One C2 satellte with the Commission on
October 6, 2005, with a face amount of $3 million. See Letter from Philip L. Malct, Counsel for
Star One S.A. to Marlene H. Dortch, Secretary, FCC (Oct.6, 2005).


                                                                        STEPTOE &JOHNSON«


Marlene H. Dortch
October 14, 2005
Page3

                     5§ 25.164 and 25.137. A public, redacted version ofthe C2 Contract is
                     being submitted separately.
                     This information contains extremely sensitive commercial and financial
                     information that customarily would be kept from competitors.
                     Specifically, the information consists of the price terms and commercially
                     sensitive non—price terms agreed upon with Alcatel Space for the
                    construction and purchase ofthe Star One C2 satellite for Star One. Star
                    One would be severely prejudiced in ts ability to compete if specific
                    information regarding Star One‘s price and critical non—price terms were
                    released to competitors, Moreover, Star One and Alcatel Space would be
                    prejudiced in any future negotiations regarding construction of satelltes if
                    the pricing, technical and related information in the C2 Contract were
                    available to other satellite construction companies or to prospective
                    purchasers ofsatellites.
                    Star One‘s competitors, as well as the competitors of Alcatel Space, stand
                    to benefit competitively from any knowledge ofthe price and critical non—
                    price terms contained in the contract between the two partics
                    Disclosure of the information for which confidential treatment is sought
                    could result i substantial harm to Star One and Alcatel Space by
                    revealing to their competitors, the satelite construction industry and the
                    public Star One‘s agreed—upon price and critical non—price terms. Such
                    information could be used by the competitors of Star One to develop
                    competing service offerings. See /n re Application ofMobile
                    Communications Holdings, Inc. for Authority to Construct the ELLIPSO
                    Elliptical Orbit Mobile Sarellte System, 10 FCC Red. 1547, 1548 (Int‘1
                    Bur. 1994) ("buyers receive a clear competitive advantage ifthey know
                    the prices that other buyers have been charged as a result ofindividual
                    negotiations."). Moreover, Star One would be prejudiced in any future
                    negotiations regarding construction of satellites if such information were
                    made available to other satelite manufacturers.
                    Star One and Alcatel Space take significant measures to ensure that this
                    information is not disclosed tothe public. The attached material for which
                    non—disclosure is sought is not available to the public.

                    Star One requests that the attached material be withheld from disclosure
                    for an indefnite period. Disclosure ofthis information at any time could
                    jeopardize the competitive position of Star One and Alcatel Space.


                                                                          STEPTOE &JOHNSON«


Marlene H. Dortch
October 14, 2008
Page4

                         Finally, Star One notes that denying its request that this information be
                         kept confidential would impair the Commission‘s ability to obtain this
                         type ofvoluntarily disclosed information in the future. The ability ofa
                         government ageney to continually obtain confidentialinformation was
                         behind the legislative purpose in developing exemptions from the
                         Freedom of Information Act. See Critical Mass Energy Project v. NRC,
                         975 F.2d 871, 878 (D.C. Cir. 1992) ("Where, however, the information is
                         provided tothe Govenment voluntarily, the presumption is that{the
                         Government‘s]interest will be threatened by disclosure as the persons
                         whose confidences have been betrayed will in all likelihood, refuse
                         further cooperation."). The U.S. Court ofAppeals for the D.C. Circuit has
                         recognized a "private interest in preserving the confidentiality of
                         information that is provided the Government on a voluntary basis." 1d. at
                         879. The Commission should extend a similar recognition to the enclosed
                         materials.
                 Star One requests that the Commission not release the unredacted C2 Contract if
its request for confidentialityis denied in whole or in part withoutfrst consulting with Star One.


                                                    Respectfully submitted,


                                                    Philip L. Malet
                                                    Chung Hsiang Mah
                                                    Steptoe & Johnson LLP
                                                    1330 Connecticut Ave,, N.W.
                                                    Washington, D.C. 20036
                                                    (202) 420—3000
                                                    Counselfor Star One $A.

Enclosures
s
Andrea Kelly, nternational Bureau
Robert Nelson, International Bureau



Document Created: 2005-10-20 15:46:28
Document Modified: 2005-10-20 15:46:28

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