Horizon Mobile Commu

PETITION submitted by DOJ and DHS

Petition to Adopt Conditions to Authorizations and

2009-01-09

This document pretains to SES-LFS-20070109-00042 for License to use Foreign Satellite (earth) on a Satellite Earth Station filing.

IBFS_SESLFS2007010900042_687912

                                 Before the
                   FEDERAL COMMUNICATIONS COMMISSION
                            Washington, D.C. 20554

In the Matter of                          )
                                          )
HORIZON MOBILE                            ) File Nos.   ITC‐214‐20070110‐00021
COMMUNCIATIONS, INC.                      )             SES‐LFS‐20070109‐00042
                                          )             SES‐AMD‐20070426‐00517
Section 214 and 310(d) Applications for   )                       and
Blanket Authority to Operate Mobile       )             ISP‐PDR‐20070129‐00001
Earth Station Terminals in Conjunction    )
with Inmarsat’s Broadband Global Area     )
Network Service Satellites and Petition   )
for Declaratory Ruling Under Section      )
310(b)(4) Related to Foreign Ownership    )
in Excess of Twenty‐Five Percent          )

    PETITION TO ADOPT CONDITIONS TO AUTHORIZATIONS AND LICENSES

       The Department of Justice (“DOJ”), including the Federal Bureau of Investigation

(“FBI”), and Department of Homeland Security (“DHS”), (collectively, the “Agencies”),

submit this Petition to Adopt Conditions to Authorizations and Licenses (“Petition”),

pursuant to Section 1.41 of the Federal Communications Commission’s (“Commission”)

rules.1 Through this Petition, the Agencies advise the Commission that they have no

objection to the Commission granting the above‐referenced applications, provided that

the Commission conditions its grant on the agreement of Horizon Mobile

Communications, Inc. and its direct and indirect owners (collectively, “Horizon”) to

abide by the commitments and undertakings set forth in the Network Security


1      47 C.F.R. § 1.41.


Agreement dated September 24, 2008 (“Agreement”), a copy of which is attached hereto

as Exhibit A. A proposed condition is attached as Exhibit A to the Agreement.

       In the above‐captioned matter, Horizon seeks Commission approval of

applications for authorizations under Sections 214 and 310(d) of the Communications

Act of 1934, as amended (“Act”). Because Horizon has indirect foreign ownership in

excess of twenty‐five percent, Horizon also requests a declaratory ruling from the

Commission under Section 310(b)(4) of the Act2 that grant of its applications is

consistent with the public interest.

       As the Commission is aware, the Agencies have taken the position that their

ability to satisfy their obligations to protect the national security, enforce the laws, and

preserve the safety of the public could be impaired to the extent that foreign entities

own or operate a part of the U.S. telecommunications system, or foreign‐located

facilities are used to provide domestic telecommunications services to U.S. customers.

The Commission has long recognized that national security, law enforcement, and

public safety issues and concerns are part of its public interest analysis in matters such

as this,3 and has accorded deference to the views of other U.S. government agencies



2      47 U.S.C. § 310(b)(4).

3       See Rules and Policies on Foreign Participation in the U.S. Telecommunications Market,
Report and Order and Order on Reconsideration, 12 FCC Rcd 23891, 23919‐21 ¶¶ 61‐66
(1997) (“Foreign Participation Order”); see also Amendment of the Commissionʹs Regulatory
Policies to Allow Non‐U.S. Licensed Space Stations to Provide Domestic and International
Satellite Service in the United States, Report and Order, 12 FCC Rcd 24094, 24100 ¶ 15


                                              2


with expertise in those areas.4 After discussions with representatives of Horizon in

connection with the above‐referenced applications, the Agencies have concluded that

the commitments set forth in the Agreement will help to ensure that the Agencies and

other entities with responsibility for enforcing the law, protecting the national security,

and preserving public safety can proceed appropriately to satisfy those responsibilities.

Accordingly, the Agencies hereby advise the Commission that they have no objection to

the Commission granting the above‐referenced applications for authorization provided

that the Commission conditions its grant of such authorizations on compliance by

Horizon with the commitments set forth in the Agreement.

         The Agencies are authorized to state that the applicants do not object to the grant

of this Petition.

                                              Respectfully submitted,



        /s/ Richard C. Sofield                      /s/ Stewart A. Baker     _
    Richard C. Sofield                        Stewart A. Baker
    Director                                  Assistant Secretary for Policy
    Foreign Investment Review Staff           U.S. Department of Homeland Security
    National Security Division                3801 Nebraska Avenue, N.W.
    United States Department of Justice       Washington, DC 20528
    950 Pennsylvania Avenue, N.W.
    Washington, DC 20530

    December, 2008


(1997) (ʺDISCO IIʺ).
4     See Foreign Participation Order at 23919‐20 ¶ 62‐63; see also DISCO II at 24179‐80
¶¶ 179‐80.


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EXHIBIT A


                                                                 AGREEMENT

        This AGREEMENT (“Agreement”) is made as of the Effective Date by and between Horizon
Mobile Communications, Inc. (“Horizon”), a corporation organized under the laws of the State of
Delaware, and its direct and indirect owners, SatCom Distribution, Inc., SatCom Distribution Ltd.,
and SatCom Group Holdings Plc (collectively, “SatCom”), on the one hand, and the U.S.
Department of Justice (“DOJ”) and the U.S. Department of Homeland Security (“DHS”), on the
other hand (DOJ and DHS are referred to collectively as “the Government Parties,” and all of the
Parties to this Agreement are referred to collectively as the “Parties”).

                                                                 RECITALS

         WHEREAS, U.S. communications systems are essential to the ability of the U.S. government
to fulfill its responsibilities to the public to preserve the national security of the United States, to
enforce the laws, and to maintain the safety of the public;

       WHEREAS, the U.S. government has an obligation to the public to ensure that U.S.
communications and related information are secure in order to preserve the national security of the
United States, protect the privacy of U.S. persons and to enforce the laws of the United States;

         WHEREAS, it is critical to the well being of the nation and its citizens to maintain the
viability, integrity, and security of the communication systems of the United States (see, e.g.,
Executive Order 13231, Critical Infrastructure Protection in the Information Age, Presidential
Decision Directive 63, Critical Infrastructure Protection, and Presidential Homeland Security
Directive / HSPD-7, Critical Infrastructure Identification, Prioritization, and Protection);

        WHEREAS, protection of Classified and Sensitive Information is also critical to U.S. national
security;

       WHEREAS, Horizon is wholly-owned by SatCom Distribution, Inc., also a Delaware
corporation, which is in turn wholly-owned by SatCom Distribution Ltd., a company organized
under the laws of the United Kingdom that is a wholly-owned subsidiary of SatCom Group
Holdings Plc, a public company organized under the laws of the United Kingdom;

         WHEREAS, Horizon has filed an application with the Federal Communications Commission
(“FCC” or “Commission”) seeking blanket authority to operate up to 20,000 Mobile Earth
Terminals in conjunction with Inmarsat’s Broadband Global Area Network (“BGAN”) Service
satellite (Inmarsat 4F2 satellite) licensed by the United Kingdom and located at the 52.75 W.L. orbital
location (see File Nos. ITC-214-20070110-00021, SES-LFS-20070109-00042,
ISP-PDR-20070129-00001).

       WHEREAS, Horizon has been granted special temporary authority by the Federal
Communications Commission (“FCC” or “Commission”) to engage in the distribution of BGAN
Service over Inmarsat fourth generation satellites, and is seeking a permanent authorization from the
FCC to distribute such service;




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       WHEREAS, BGAN Service is a communications service that enables users to send and
receive data, voice, or other communications to and from mobile terminals from anywhere within
the United States, and elsewhere;

        WHEREAS, Domestic Communications sent and received via BGAN Service are, as of the
date of this agreement, routed by Inmarsat’s network from mobile terminals within the United
States to Inmarsat satellites, and through Inmarsat earth stations currently located outside of the
United States, but are expected in the future to be routed through Inmarsat earth stations located in
the United States;

        WHEREAS, it is critical to the law enforcement, national security, and public safety
interests of the United States government that such Domestic Communications, and any related
Call Associated Data, Transactional Data, or Subscriber Information are made available pursuant
to Lawful U.S. process, including but not limited to the context of a real-time lawfully authorized
Electronic Surveillance, within the United States in a timely, secure, and reliable manner;

        WHEREAS, the cooperation and assistance of Horizon is necessary to ensure the
above-mentioned critical interests, and to facilitate lawful access within the United States to
certain records and information;

        NOW THEREFORE, the Parties are entering into this Agreement to address U.S. national
security, law enforcement, and public safety concerns with respect to Horizon’s distribution of BGAN
Service in the United States.

                                             ARTICLE 1: DEFINITION OF TERMS

As used in this Agreement:

1.1         “Affiliate” means any entity that Horizon owns or Controls.

1.1.A. “BGAN Service” means Broadband Global Area Network Service (or any successor service)
that provides voice and broadband data service, accessed by MESs communicating with Inmarsat-4
satellites, or successor satellites, which are communicating with Inmarsat land earth stations linked to
terrestrial networks.

1.2      “Call-Associated Data” or “CAD” means any information relating to a communication or
relating to the sender or recipient of that communication and includes, without limitation, subscriber
identification, called party number, calling party number, start time, end time, call duration, feature
invocation and deactivation, feature interaction, registration information, user location, diverted to
number, conference party numbers, post cut-through dual-tone multifrequency (dialed digit
extraction), in-band and out-of-band signaling, party add, drop and hold, and any other
call-identifying information, as defined in 47 U.S.C. § 1001(2).




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1.3    “Classified Information” shall have the meaning indicated in Executive Order 12958, as
amended by Executive Order 13292, or any successor executive order, or the Atomic Energy Act
of 1954, or any statute that succeeds or amends the Atomic Energy Act of 1954.

1.4      “Control” and “Controls” mean the power, direct or indirect, whether or not exercised, and
whether or not exercised or exercisable through the ownership of a majority or a dominant minority
of the total outstanding voting securities of an entity, or by proxy voting, contractual arrangements, or
other means, to determine, direct, or decide matters affecting an entity or facility; in particular, but
without limitation, to determine, direct, take, reach or cause decisions regarding:

            (a)          the sale, lease, mortgage, pledge, or other transfer of any or all of the principal assets
                         of the entity, whether or not in the ordinary course of business;

            (b)          the dissolution of the entity;

            (c)          the closing and/or relocation of the production or research and development facilities
                         of the entity;

            (d)          the termination or non-fulfillment of contracts of the entity;

            (e)          the amendment of the articles of incorporation or constituent agreement of the entity
                         with respect to the matters described in Section 1.4(a) through (d); or

            (f)          Horizon’s obligations under this Agreement.

1.4.A. “Customer Proprietary Network Information” or “CPNI” is defined in 47 U.S.C. § 222(h)(1).

1.5         “De facto” and “de jure” control have the meanings provided in 47 C.F.R. § 1.2110.

1.6         “DHS” means the U.S. Department of Homeland Security.

1.7         “DOJ” means the U.S. Department of Justice.

1.8     “Domestic Communications” means (a) Wire Communications or Electronic
Communications (whether stored or not) originating at one U.S. location and terminating at another
U.S. location, and (b) the U.S. portion of a Wire Communication or Electronic Communication
(whether stored or not) that originates from or terminates at a U.S. Licensed MES.

1.9      “Domestic Communications Infrastructure” means (a) transmission, switching, bridging and
routing equipment (including software and upgrades) used by or on behalf of Horizon to provide,
process, direct, control, supervise or manage Domestic Communications; (b) facilities and
equipment used by or on behalf of Horizon that are physically located in the United States; and (c)
facilities used by or on behalf of Horizon to control the equipment described in (a) and (b) above.
Domestic Communications Infrastructure does not include equipment or facilities used by service
providers other than Horizon or its Affiliates that are:




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            (1)          interconnecting communications providers; or

            (2)          providers of services or content that are

                         (A)          accessible using the communications services of Horizon or its Affiliates,
                                      and

                         (B)          available in substantially similar form and on commercially reasonable
                                      terms through communications services of companies other than Horizon or
                                      its Affiliates.

The phrase “on behalf of” as used in this Section does not include entities with which Horizon or
any of its Affiliates has contracted for peering, interconnection, roaming, long distance, or
distribution of BGAN Service.

1.10 “Effective Date” means the date on which the FCC grants Horizon’s application for
permanent authority as described above, unless otherwise specified herein.

1.11        “Electronic Communication” has the meaning given it in 18 U.S.C. § 2510(12).

1.12 “Electronic Surveillance” means (a) the interception of wire, oral, or electronic
communications as defined in 18 U.S.C. §§ 2510(1), (2), (4) and (12), respectively, and electronic
surveillance as defined in 50 U.S.C. § 1801(f); (b) access to stored wire or electronic communications,
as referred to in 18 U.S.C. §§ 2701 et seq.; (c) acquisition of dialing, routing, addressing, or signaling
information through pen register or trap and trace devices or other devices or features capable of
acquiring such information pursuant to law as defined in 18 U.S.C. § 3121 et seq. and 50 U.S.C. §
1841 et seq.; (d) acquisition of location-related information concerning a service subscriber or facility;
(e) preservation of any of the above information pursuant to 18 U.S.C. § 2703(f); and (f) access to, or
acquisition, interception, or preservation of, wire, oral, or electronic communications or information
as described in (a) through (e) above and comparable State laws.

1.13        [NOT USED]

1.14        “FCC” or “Commission” means the Federal Communications Commission.

1.15        “Foreign” where used in this Agreement, whether capitalized or lower case, means non-U.S.

1.16 “Governmental Authority” or “Governmental Authorities” mean any government, or any
governmental, administrative, or regulatory entity, authority, commission, board, agency,
instrumentality, bureau, or political subdivision and any court, tribunal, judicial, or arbitral body.

1.16.A. “Government Parties” means DOJ and DHS.

1.16.B. “Implementation Plan” is defined is Section 2.1 herein.

1.16.C. “Horizon” means Horizon Mobile Communications, Inc., a corporation organized under the
       laws of the State of Delaware, and all of its Affiliates and subsidiaries.


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1.17        “Intercept” or “Intercepted” has the meaning defined in 18 U.S.C. § 2510(4).

1.18 “Lawful U.S. Process” means U.S. federal, state, or local Electronic Surveillance or other
court orders, processes, or authorizations issued under U.S. federal, state, or local law for physical
search or seizure, production of tangible things, or access to or disclosure of Domestic
Communications, Call Associated Data, Transactional Data, or Subscriber Information.

1.19 “MES” means a mobile earth station, a mobile earth terminal or “MET” (i.e., a hand-held,
portable, or other mobile terminal capable of receiving and/or transmitting Wire Communications or
Electronic Communications by satellite) and includes a mobile earth terminal capable of receiving
and/or transmitting BGAN Service.

1.20        “Non U.S.-Licensed MES” means an Horizon MES other than a U.S.-Licensed MES.

1.21 “Outsourcing Contract” means a contract between Horizon and an individual or entity to
perform functions covered by this Agreement and related to Domestic Communications which are
normally performed by employees of companies in the business of providing those
communications services that Horizon provides. Outsourcing Contract also includes any contract
to perform a specific activity that is required to be performed by Horizon under the express terms
of this Agreement.

1.22        “Party” or “Parties” have the meanings given them in the Preamble.

1.23 “Pro forma assignments” or “pro forma transfers of control” are transfers or assignments that
do not involve a substantial change in ownership or control as provided by Section 63.24 of the FCC’s
Rules (47 C.F.R. § 63.24).

1.23.A. “SatCom” means SatCom Distribution, Inc., SatCom Distribution Ltd., and SatCom Group
Holdings Plc, each of which is a direct or indirect owner of Horizon.

1. 24 “Sensitive Information” means information that is not Classified Information regarding (a)
the persons or facilities that are the subjects of Lawful U.S. Process, (b) the identity of the
government agency or agencies serving such Lawful U.S. Process, (c) the location or identity of
the line, circuit, transmission path, or other facilities or equipment used to conduct Electronic
Surveillance pursuant to Lawful U.S. Process, (d) the means of carrying out Electronic
Surveillance pursuant to Lawful U.S. Process, or (e) the type(s) of service, telephone number(s),
records, communications, or facilities subjected to Lawful U.S. Process; as well as all other
information that is not Classified Information but is designated in writing by an authorized official
of a federal, state or local law enforcement agency or a U.S. intelligence agency as “Sensitive
Information” of some type recognized by the agency involved. The designation “Sensitive” as
used in this paragraph may refer to information marked or labeled “Official Use Only,” “Limited
Official Use Only,” “Law Enforcement Sensitive,” “Sensitive Security Information,” “Sensitive
but Unclassified,” “Controlled Unclassified Information” or other similar designations, and all
such information shall be deemed “Sensitive Information” for purposes of this Agreement.




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1.25 “Subscriber Information” means information relating to subscribers or customers of Horizon
of the type referred to and accessible subject to procedures specified in 18 U.S.C. § 2703(c) or (d) or
18 U.S.C. § 2709. Such information shall also be considered Subscriber Information when it is sought
pursuant to the provisions of other Lawful U.S. Process.

1.26        “Transactional Data” means:

            (a)          “call identifying information,” as defined in 47 U.S.C. § 1001(2), including without
                         limitation the telephone number or similar identifying designator associated with a
                         Domestic Communication;

            (b)          any information possessed by Horizon, or an entity acting on behalf of Horizon,
                         relating specifically to the identity and physical address of a customer or
                         subscriber, or account payer, or the end-user of such customer or subscriber, or
                         account payer, or associated with such person relating to all telephone numbers,
                         domain names, Internet Protocol (“IP”) addresses, Uniform Resource Locators
                         (“URLs”), other identifying designators, types of services, length of service, fees,
                         usage including billing records and connection logs, and the physical location of
                         equipment, if known and if different from the location information provided under
                         (d) below;

            (c)          the time, date, size, or volume of data transfers, duration, domain names, Media
                         Access Control (“MAC”) or IP addresses (including source and destination),
                         URL’s, port numbers, packet sizes, protocols or services, special purpose flags, or
                         other header information or identifying designators or characteristics associated
                         with any Domestic Communication, including electronic mail headers showing
                         From: and To: addresses; and

            (d)          as to any mode of transmission (including mobile transmissions), and to the extent
                         permitted by U.S. laws, any information indicating as closely as possible the
                         physical location to or from which a Domestic Communication is transmitted.

The term includes all records or other information of the type referred to and accessible subject to
procedures specified in 18 U.S.C. § 2703(c) and (d) but does not include the content of any
communication. The phrase “on behalf of” as used in this Section does not include entities with
which Horizon has contracted for peering, interconnection, roaming, long distance, or distribution
of BGAN Service.

1.27 “United States,” “US” or “U.S.” means the United States of America, including all of its
States, districts, territories, possessions, commonwealths, and the special maritime and territorial
jurisdiction of the United States.

1.28 “U.S. LES” means a land earth station facility, located in any state of the United States, that is
involved with the transmission of satellite communications and meets all other applicable
requirements of this Agreement.

1.29        “U.S.-Licensed MES” means an MES licensed by the FCC to Horizon and utilizing the



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Inmarsat network, including to provide BGAN Service.
1.30 “U.S. POP” or “POP” means a point of presence located in the United States through which
communications are routed for purpose of switching and at which Electronic Surveillance can be
conducted, and meeting all other applicable requirements of this Agreement.

1.31        “Wire Communication” has the meaning given it in 18 U.S.C. § 2510(1).

1.32 Other Definitional Provisions. Other capitalized terms used in this Agreement and not defined
in this Article 1 shall have the meanings assigned them elsewhere in this Agreement. The definitions
in this Agreement are applicable to the singular as well as the plural forms of such terms and to the
masculine as well as to the feminine and neuter genders of such terms. Whenever the words
“include,” “includes,” “including,” or “such as” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.”

                             ARTICLE 2: INFORMATION STORAGE AND ACCESS

2.1      Implementation Plan. Certain of the rights and obligations of the Parties are set forth in further
detail in an Implementation Plan dated ________________________, 2008, which is executed by all
of the Parties and is hereby expressly incorporated in, and constitutes an integral part of, this
Agreement. Wherever the term “Agreement” appears herein, it shall also be deemed to refer to and
include the Implementation Plan. This Agreement is expressly conditioned upon compliance by
Horizon and Inmarsat with the terms of the Implementation Plan, including but not limited to
compliance with any of the underlying obligations or arrangements of Inmarsat related to Horizon’s
distribution of BGAN Service. Horizon expressly agrees that if it acquires any information regarding
any non-compliance by Inmarsat with such underlying obligations, it shall immediately notify the
Government Parties and take such steps as are mutually agreed by Horizon and the Government
Parties to be necessary to ensure the needs of U.S. national security and law enforcement.

2.2      Point of Presence. Except to the extent and under conditions concurred in by the Government
Parties in writing, Horizon shall ensure in accordance with the Implementation Plan that Domestic
Communications transmitted to or from a U.S. Licensed MES, and Call Associated Data,
Transactional Data and Subscriber Information related to Domestic Communications, are transmitted
to or through a U.S. POP or a U.S. LES, at which Electronic Surveillance can be conducted pursuant
to Lawful U.S. Process. Horizon will provide technical or other assistance as needed to facilitate such
Electronic Surveillance, including securing Inmarsat’s cooperation and assistance in routing
Domestic Communications, and Call Associated Data, Transactional Data and Subscriber
Information related to Domestic Communications to or through a U.S. POP or a U.S. LES, at which
Electronic Surveillance can be conducted pursuant to Lawful U.S. Process. In accordance with the
Implementation Plan, Horizon will further provide such assistance with respect to any Non-U.S.
Licensed MES located within the United States.

2.3     Compliance with Lawful U.S. Process. Horizon employees or agents in the United States
shall have unconstrained authority to comply, in an effective, efficient, and unimpeded fashion, with
Lawful U.S. Process. Such employees will further have such authority with regard to the following,
as applicable:




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            (a)          the orders of the President in the exercise of his/her authority under § 706 of the
                         Communications Act of 1934, as amended, (47 U.S.C. § 606), and under § 302(e)
                         of the Aviation Act of 1958 (49 U.S.C. § 40107(b)) and Executive Order 11161 (as
                         amended by Executive Order 11382); and

            (b)          National Security and Emergency Preparedness rules, regulations and orders issued
                         pursuant to the Communications Act of 1934, as amended (47 U.S.C. § 151 et seq.).

2.4      Information Storage and Access. Horizon shall make the following data and communications,
if stored by or on behalf of Horizon for any reason, available in the United States:

            (a)          Domestic Communications;

            (b)    any Wire Communications or Electronic Communications received by, intended to be
            received by, or stored in the account associated with a U.S. Licensed MES, or transmitted
            through a U.S. LES, or routed through a U.S. POP to or from a customer or subscriber of
            Horizon;

            (c)          Transactional Data and Call Associated Data relating to Domestic Communications;

            (d)    Subscriber Information concerning the customers and subscribers of services using
            U.S. Licensed MESs, or who are known to be domiciled or holding themselves out as being
            domiciled in the United States, as well as Subscriber Information related to any Domestic
            Communication transmitted through a U.S. LES or routed through a U.S. POP; and

            (e)     Billing records relating to customers and subscribers of services using U.S. Licensed
            MESs, or customers and subscribers who are known to be domiciled or are holding
            themselves out as being domiciled in the United States, as well as billing records related to any
            Domestic Communication transmitted through a U.S. LES or routed through a U.S. POP, for
            so long as such records are kept.

The phrase “on behalf of” as used in this Section does not include entities with which Horizon has
contracted for peering, interconnection, roaming, long distance, or distribution of BGAN Service.

2.5     Restriction on Storage Outside the U.S. Horizon shall ensure that the data and
communications described in Section 2.4 of this Agreement are not stored outside of the United States
unless:

            (a)          such storage is based strictly on bona fide commercial reasons weighing against
                         storage in the United States; and

            (b)          the required notice has been given to the Government Parties pursuant to Section 5.9
                         of this Agreement.

2.6    Avoidance of Mandatory Destruction. Horizon shall ensure that the data and communications
described in Section 2.4 of this Agreement are stored in a manner not subject to mandatory destruction



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under any foreign laws, if such data and communications are stored by or on behalf of Horizon for any
reason.

2.7    Billing Records. Horizon shall store for at least eighteen (18) months all billing records
generated or maintained by Horizon relating to customers and subscribers of services using U.S.
Licensed MESs, and shall make such records available in the United States.

2.8 Storage Pursuant to 18 U.S.C. § 2703(f). Upon a request made pursuant to 18 U.S.C. § 2703(f)
by a Governmental Authority within the United States to preserve any information in the possession,
custody, or control of Horizon, including any information that is listed in Section 2.4 above, Horizon
shall store such preserved records or other evidence in the United States.

2.9     Compliance with U.S. Law. Nothing in this Agreement shall excuse Horizon from its
obligation to comply with applicable U.S. legal requirements, including those requiring the retention,
preservation, or production of information, records, or data, those not to unlawfully intercept
telecommunications or unlawfully access stored telecommunications, Chapters 119 and 121 of Title
18, United States Code, and the requirements of the Communications Assistance for Law
Enforcement Act, 47 U.S.C. § 1001 et seq.

2.10 Customer Proprietary Network Information. With respect to Domestic Communications,
Horizon shall comply with all applicable FCC rules and regulations governing access to and storage
of Customer Proprietary Network Information (“CPNI”), as defined in 47 U.S.C. § 222(h)(1).

2.11 Storage of Protected Information. The storage of Classified and Sensitive Information by
Horizon or its contractors or agents shall be at an appropriately secure location in the United States
or other secure location within the offices of a U.S. military facility, a U.S. Embassy or Consulate
or other U.S. Government Authority.

                                                           ARTICLE 3: SECURITY

3.1     Measures to Prevent Improper Use or Access. Horizon shall take all practicable measures to
prevent the use of or access to Horizon’s equipment or facilities to conduct Electronic Surveillance of
Domestic Communications, or to obtain or disclose Domestic Communications, Classified
Information, or Sensitive Information, in violation of any U.S. federal, state, or local laws or the terms
of this Agreement. These measures shall include creating and complying with any policies and
procedures as required by 47 C.F.R. § 1.20003, as applicable, and other appropriate written technical,
organizational, and personnel-related policies and procedures, implementation plans, and physical
security measures.

3.2    Disclosure of, or Access to, Domestic Communications and Information by Foreign
Individuals, Entities, or Governments. Horizon shall not, directly or indirectly, disclose, permit
disclosure of, or provide access to Domestic Communications, or Call Associated Data,
Transactional Data, or Subscriber Information related to Domestic Communications to any
Foreign individual (other than Horizon employees with a need to know) or entity, or Foreign
Governmental Authority, or to any person in response to the legal process or request by a Foreign
individual or entity, or Foreign Governmental Authority, without first satisfying all applicable U.S.



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legal requirements, and obtaining the express written consent of the Government Parties or the
authorization of a court of competent jurisdiction in the United States, provided that Horizon may
respond to legal process issued by a Foreign Governmental Authority without obtaining such
consent or court authorization after determining that such response would not be prohibited by
applicable U.S. law, and making the notification to the Government Parties required herein. Any
such requests or submission of legal process shall be reported to the Government Parties no later
than five (5) business days after its is received by Horizon. Horizon shall take reasonable
measures to ensure that it will promptly learn of all such requests or submission of legal process.

3.3     Disclosure of, or Access to, Certain Other Information by Foreign Individuals, Entities, or
Governments. Horizon shall not, directly or indirectly, disclose or permit disclosure of, or provide
access to:

                         (a) Classified or Sensitive Information;

                         (b) Subscriber Information, Transactional Data, Call Associated Data, or a copy of
                         any Wire or Electronic Communications, intercepted or acquired pursuant to
                         Lawful U.S. Process; or

                         (c) the existence of Lawful U.S. Process that is not already a matter of public
                         record;

to any Foreign individual (other than Horizon employees who are authorized and have a need to
know) or entity, or Foreign Governmental Authority, or to any person in response to the legal
process or request by a Foreign individual or entity, or Foreign Governmental Authority, without
first satisfying all applicable U.S. legal requirements, and obtaining the express written consent of
the Government Parties or the authorization of a court of competent jurisdiction in the United
States. Any such requests or submission of legal process shall be reported to the Government
Parties no later than five (5) business days after its is received by Horizon. Horizon shall take
reasonable measures to ensure that it will promptly learn of all such requests or submission of legal
process.


3.4     Points of Contact. Within five (5) business days after the Effective Date, Horizon shall
designate points of contact within the United States with the authority and responsibility for accepting
and overseeing the carrying out of Lawful U.S. Process. The points of contact shall be assigned to an
Horizon office in the U.S., shall be available twenty-four (24) hours per day, seven (7) days per week,
and shall be responsible for accepting service and for maintaining the security of Sensitive and
Classified Information and any Lawful U.S. Process. Horizon shall immediately notify the
Government Parties in writing of the points of contact, and thereafter shall promptly notify the
Government Parties of any change in such designation. The points of contact shall be resident U.S.
citizens who are reasonably believed by Horizon to be eligible for appropriate U.S. security
clearances. Horizon shall cooperate with any request by a U.S. Governmental Authority that a
background check and/or security clearance process be completed for a designated point of contact.




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3.5     Security of Lawful U.S. Process, Classified and Sensitive Information. Horizon shall protect
the confidentiality and security of all Lawful U.S. Process, and any Classified and Sensitive
Information in accordance with U.S. Federal and state law or regulation. Horizon shall ensure that
knowledge of the existence of any Lawful U.S. Process served upon Horizon is limited to those
individuals who are authorized to know and whose assistance is strictly necessary to ensure
compliance. Horizon shall maintain a list of the names, dates and places of birth, and current
addresses of each such individual and the list shall include but not be limited to any technicians
assisting in the implementation of electronic surveillance. Horizon shall make the list available
upon request to any law enforcement agency or officer seeking compliance with Lawful U.S.
Process.

3.6    Information Security Plan. Horizon shall form and implement an Information Security Plan,
which shall include provisions for the following:

            (a)          Take appropriate measures to prevent unauthorized access to data or facilities that
                         might contain Classified or Sensitive Information;

            (b)          Assign U.S. citizens, who meet high standards of trustworthiness for maintaining the
                         confidentiality of Sensitive Information, to positions that handle or regularly deal with
                         information identifiable to such person as Sensitive Information;

            (c)          Upon request from the Government Parties, provide the name and any other
                         identifying information requested for each person who handles or regularly deals with
                         Sensitive Information;

            (d)          Require that personnel handling Classified Information, if any, shall have been
                         granted appropriate U.S. security clearances; and

            (e)          Provide that the points of contact described in Section 3.4 shall have sufficient
                         authority over any of Horizon’s employees who may handle Classified or Sensitive
                         Information to maintain the confidentiality and security of such information in
                         accordance with applicable U.S. legal authority and the terms of this Agreement;

3.7     Nondisclosure of Protected Data. Horizon shall not directly or indirectly disclose
information concerning Lawful U.S. Process, Classified Information, or Sensitive Information to
any third party, or officer, director, shareholder, employee, agent, or Contractor of Horizon,
including those who serve in a supervisory, managerial or officer role with respect to the
employees working with the information, unless disclosure has been approved by prior written
consent obtained from the Government Parties, or there is an official need for disclosure of the
information in order to fulfill an obligation consistent with the purpose for which the information
is collected or maintained and the disclosure has been approved by the entity that provided the
information to Horizon. Any such disclosure shall be in strict compliance with Section 3.5 of this
Agreement.

3.8      Written Notice of Obligations. By a written statement, Horizon shall instruct all appropriate
officials, employees, contractors, and agents of Horizon as to the obligations of this Agreement,



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including the individuals’ duty to report any violation of this Agreement and the reporting
requirements in Sections 5.2, 5.5, and 5.8 of this Agreement, and shall issue periodic reminders to
them of such obligations. The written statement shall set forth in a clear and prominent manner the
contact information for a senior manager to whom such information may be reported, and shall
also state that Horizon will not discriminate against, or otherwise take adverse action against,
anyone who reports such information to management or the United States government.

3.9      Access to Classified or Sensitive Information. Nothing contained in this Agreement shall
limit or affect the authority of a U.S. Government Authority to deny, limit, or revoke whatever access
Horizon might have to Classified or Sensitive Information under that Government Authority’s
jurisdiction.
                                       ARTICLE 4: DISPUTES

4.1      Informal Resolution. The Parties shall use their best efforts to resolve any disagreements
that may arise under this Agreement. Disagreements shall be addressed, in the first instance, at the
staff level by the Parties’ designated representatives. Any disagreement that has not been resolved
at that level shall be submitted promptly to higher authorized officials, unless any of the
Government Parties believes that important national interests can be protected, or Horizon
believes that its paramount commercial interests can be resolved, only by resorting to the measures
set forth in Section 4.2. If, after meeting with higher authorized officials, any of the Parties
determines that further negotiation would be fruitless, then that Party may resort to the remedies
set forth in Section 4.2. If resolution of a disagreement requires access to Classified Information,
the Parties shall designate a person or persons possessing the appropriate security clearances for
the purpose of resolving that disagreement.

4.2     Enforcement of Agreement. Subject to Section 4.1 of this Agreement, if any Party believes
that any other Party has breached or is about to breach this Agreement, that Party may bring an action
against the other Party for appropriate judicial relief. Nothing in this Agreement shall limit or affect
the right of a U.S. Government Authority to:

            (a)          require that the Party or Parties believed to have breached, or about to breach, this
                         Agreement cure such breach within thirty (30) days, or whatever shorter time
                         period is appropriate under the circumstances, upon receiving written notice of
                         such breach;

            (b)          request that the FCC modify, condition, revoke, cancel, or render null and void any
                         license, permit, or other authorization granted or given by the FCC to Horizon,
                         request that the FCC take other action, or request that the FCC impose any other
                         appropriate sanction, including but not limited to a forfeiture or other monetary
                         penalty, against Horizon;

            (c)          seek civil sanctions for any violation of any U.S. law or regulation or term of this
                         Agreement; or

            (d)          pursue criminal sanctions against Horizon or any of their respective directors, officers,
                         employees, representatives or agents, or against any other person or entity, for



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                         violations of the criminal laws of the United States; or

            (e)          seek suspension or debarment of Horizon from eligibility for contracting with the U.S.
                         Government.

4.3     Irreparable Injury. Horizon agrees that the United States would suffer irreparable injury if
for any reason Horizon failed to perform any of its obligations under this Agreement, and that
monetary relief would not be an adequate remedy. Accordingly, Horizon agrees that, in seeking to
enforce this Agreement, the Government Parties shall be entitled, in addition to any other remedy
available at law or equity, to specific performance and injunctive or other equitable relief.

4.4     Waiver. The availability of any civil remedy under this Agreement shall not prejudice the
exercise of any other civil remedy under this Agreement or under any provision of law, nor shall any
action taken by a Party in the exercise of any remedy be considered a waiver by that Party of any other
rights or remedies. The failure of any Party to insist on strict performance of any of the provisions of
this Agreement, or to exercise any right they grant, shall not be construed as a relinquishment or future
waiver; rather, the provision or right shall continue in full force. No waiver by any Party of any
provision or right shall be valid unless it is in writing and signed by the Party.

4.5     Waiver of Immunity. Horizon agrees that, to the extent that it or any of its property
(including FCC licenses and authorizations and intangible property) is or becomes entitled at any
time to any immunity on the ground of sovereignty or otherwise based upon a status as an agency
or instrumentality of government from any legal action, suit, or proceeding or from setoff or
counterclaim relating to this Agreement, from the jurisdiction of any competent court or the FCC,
from service of process, from attachment prior to judgment, from attachment in aid of execution
of a judgment, from execution pursuant to a judgment or arbitral award, or from any other legal
process in any jurisdiction, it, for itself and its property expressly, irrevocably and unconditionally
waives, and agrees not to plead or claim, any such immunity with respect to matters arising with
respect to this Agreement or the obligations herein (including any obligation for the payment of
money) in any proceeding brought by a U.S. federal, state or local Government Authority.
Horizon agrees that the waiver in this provision is irrevocable and is not subject to withdrawal in
any jurisdiction or under any statute, including the Foreign Sovereign Immunities Act, 28 U.S.C.
§ 1602 et seq. The foregoing waiver shall constitute a present waiver of immunity at any time any
action is initiated by a U.S. federal, state or local Government Authority against Horizon with
respect to compliance with this Agreement.

4.6     Forum Selection. Any civil action among the Parties for judicial relief with respect to any
dispute or matter whatsoever arising under, in connection with, or incident to, this Agreement shall be
brought, if at all, in the United States District Court for the District of Columbia.

4.7     Effectiveness of Article 4. This Article 4, and the obligations imposed and rights conferred
herein, shall become effective upon the execution of this Agreement by all the Parties.




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                                           ARTICLE 5: REPORTING AND NOTICE

5.1     Filings Concerning de jure or de facto control of Horizon. If Horizon makes any filing with
the FCC or any other U.S. Government Authority relating to the de jure or de facto control of Horizon,
except for filings with the FCC for assignments or transfers of control that are pro forma, Horizon
shall promptly provide to the Government Parties written notice and copies of such filing. This
Section 5.1 shall become effective upon execution of this Agreement by all the Parties.

5.2     Change in Control. If any member of the management of Horizon (including officers and
members of the Board of Directors) acquires any information that reasonably indicates that any
single Foreign entity or individual, Foreign Governmental Authority, or Foreign Governmental
Authority-controlled entity – other than those already identified to the Government Parties in
connection with Horizon’s pending FCC application – has or will likely obtain an ownership
interest (direct or indirect) in Horizon of more than 10 percent, as determined in accordance with
47 C.F.R. § 63.09, or if any Foreign entity or individual, Foreign Governmental Authority, or
Foreign Governmental Authority-controlled entity singly or in combination with other Foreign
entities or individuals, Foreign Governmental Authority(ies), or Foreign Governmental
Authority-controlled entities has or will likely otherwise gain either (1) Control or (2) de facto or
de jure control of Horizon, then such Director, officer or manager shall promptly cause Horizon to
notify the Government Parties in writing within ten (10) calendar days. Notice under this Section
5.2 shall, at a minimum if such information is known or reasonably available:

            (a)          identify the Foreign entity or individual(s), Foreign Governmental Authority, or
                         Foreign Governmental Authority-controlled entity (specifying the name, addresses
                         and telephone numbers);

            (b)          identify the beneficial owners of the increased or prospective increased interest in
                         Horizon by the Foreign entity or individual(s), Foreign Governmental Authority, or
                         Foreign Governmental Authority-controlled entity (specifying the name, addresses
                         and telephone numbers of each beneficial owner); and

            (c)          quantify the amount of ownership interest that the Foreign entity or individual(s),
                         Foreign Governmental Authority, or Foreign Governmental Authority-controlled
                         entity has or will likely obtain in Horizon and, if applicable, the basis for its
                         prospective Control of Horizon.

5.3    Joint Ventures. In the event that Horizon enters into joint ventures or other arrangements
under which the joint venture or another entity may provide Domestic Communications:

            (a)    if Horizon has the power or authority to exercise de facto or de jure control over
            such joint venture or entity, then Horizon will require the entity to fully comply with the
            terms of this Agreement; or

            (b)      if Horizon does not have de facto or de jure control over such joint venture or
            entity, the provisions of Section 5.4, Outsourcing Contracts, shall apply as if the joint
            venture or other arrangement was an Outsourcing Contract.




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5.4    Outsourcing Contracts. Horizon shall ensure the following with regard to any Outsourcing
Contracts related to its distribution of BGAN Service:

            (a)    Horizon shall include written provisions in any Outsourcing Contract that require
            the contractor to comply with all applicable terms of this Agreement and the
            Implementation Plan, or shall take other reasonable, good-faith measures to ensure that the
            contractor is aware of, agrees to, and is bound to comply with all such terms.

             (b)    Horizon shall not enter into any Outsourcing Contract that affords the contractor
            access to Sensitive Information, unless such access has been lawfully approved by the
            entity that provided the information.

            (c)     Horizon shall not induce the contractor either to violate its obligations to Horizon
            related to this Agreement or the Implementation Plan, or to take any action that, if taken by
            Horizon, would violate this Agreement or the Implementation Plan.

            (d)     If Horizon receives any information that a contractor or any of its employees or
            agents has taken an action that, had it been taken by Horizon, would violate a provision of
            this Agreement or the Implementation Plan, or has violated its obligations to Horizon
            related to this Agreement or the Implementation Plan, Horizon (1) will notify the
            Government Parties promptly, and (2) in consultation and cooperation with them, will take
            all reasonable steps necessary to rectify promptly the situation, including terminating the
            Outsourcing Contract (with or without notice and opportunity for cure) or initiating and
            pursuing litigation or other remedies at law and equity.

            (e)    Neither an Outsourcing Contract nor any provision of this Section 5.4 does or shall
            be construed to relieve Horizon of any of its obligations under this Agreement or the
            Implementation Plan.

5.5     Notice of Foreign Influence. If Horizon or its agents (including officers and members of
the Board of Directors) acquires any information that reasonably indicates that any Foreign entity
or individual, Foreign Governmental Authority, or Foreign Governmental Authority-controlled
entity plans to participate or has participated in any aspect of the day-to-day management of
Horizon or to exercise any Control of Horizon in such a way that (1) interferes with or impedes the
performance by Horizon of its duties and obligations under the terms of this Agreement; (2)
interferes with or impedes the exercise by Horizon of its rights under the Agreement; or (3) raises
a concern with respect to the fulfillment by Horizon of its obligations under this Agreement, then
such manager shall promptly notify the Government Parties in writing of the timing and the nature
of the Foreign entity’s or individual’s, Foreign Governmental Authority’s, or Foreign
Governmental Authority-controlled entity’s plans or actions.

5.6    Procedure and Process on Reporting. Within thirty (30) days after the Effective Date,
Horizon shall adopt and distribute to all officers and directors, a written procedure or process for
the reporting by officers and directors of noncompliance with this Agreement or the
Implementation Plan, which shall incorporate the notice of reporting obligations by officials,
employees, agents and contractors required under Section 3.8 of this Agreement. Any violation by
Horizon of any material term of such corporate policy shall constitute a breach of this Agreement.



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5.7     Non-retaliation. Within thirty (30) days after the Effective Date, Horizon shall, by duly
authorized action of its Board of Directors, adopt and distribute to all officers and directors an
official corporate policy that strictly prohibits Horizon from discriminating or taking any adverse
action against any officer, director, employee, contractor, or agent because he or she has in good
faith initiated or attempted to initiate a notice or report under Sections 5.2, 5.5, or 5.8 of this
Agreement, or has notified or attempted to notify the management to report information that he or
she believes in good faith is required to be reported to the Government Parties under either
Sections 5.2, 5.5, or 5.8 of this Agreement or under Horizon’s written notice to employees on the
reporting of any such information. Any violation by Horizon of any material term of such
corporate policy shall constitute a breach of this Agreement.

5.8    Reporting of Incidents. Horizon shall report to the Government Parties any information
acquired by Horizon or any of its officers, directors, employees, contractors, or agents that
reasonably indicates:

            (a)          a breach of this Agreement or the Implementation Plan;

            (b)          access to or disclosure of Domestic Communications, or the conduct of Electronic
                         Surveillance, in violation of federal, state or local law or regulation;

            (c)          access to or disclosure of CPNI, Call-Associated Data, Transactional Data, or
                         Subscriber Information, in violation of federal, state or local law or regulation; or

            (d)          improper access to or disclosure of Classified or Sensitive Information.

This report shall be made in writing by the appropriate Horizon officer to the Government Parties
no later than ten (10) calendar days after Horizon acquires information indicating a matter
described in this Section. Horizon shall lawfully cooperate in investigating the matters described
in this Section. Horizon need not report information where disclosure of such information would
be in violation of an order of a court of competent jurisdiction in the United States.

5.9      Notice of Decision to Store Information Outside of the United States. Horizon shall
provide to the Government Parties thirty (30) days advance notice if it plans to store or have stored on
its behalf outside the United States any of the information specified in Section 2.4 herein. Such notice
shall, at a minimum:

            (a)          include a description of the type of information to be stored outside the United States;

            (b)          identify the custodian of the information, if other than Horizon;

            (c)          identify the location where the information is to be located; and

            (d)          identify the factors considered, pursuant to Section 2.5 of this Agreement, in
                         deciding to store the information outside of the United States.




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5.10        Access to Information and Facilities.

       (a)     The Government Parties or their designees may visit any part of Horizon’s
Domestic Communications Infrastructure to conduct on-site reviews concerning the
implementation of the terms of this Agreement, and Horizon will provide unimpeded access for
such on-site reviews.

         (b)    Horizon will voluntarily provide prompt and unimpeded access to and disclosure
of all records and information concerning technical, physical, management, or other security
measures, as needed by the Government Parties or their designees to verify compliance with the
terms of this Agreement including the Implementation Plan.

5.11 Access to Personnel. Upon reasonable notice from the Government Parties or their
designees, Horizon shall make available for interview any officers or employees of Horizon and
any contractors located in the United States, who are in a position to provide information to verify
compliance with the terms of this Agreement.

5.12 Annual Report. On or before the last day of January of each year, a designated senior
corporate officer of Horizon shall submit to the Government Parties a report assessing Horizon’s
compliance with the terms of this Agreement for the preceding calendar year (or since the
Effective Date in the case of the first such report). The report shall include:

            (a)          a copy of the then-current policies and procedures adopted to comply with this
                         Agreement;

            (b)          a summary of the changes, if any, to the policies or procedures, and the reasons for
                         those changes;

            (c)          a summary of any known acts of noncompliance with the terms of this Agreement,
                         whether inadvertent or intentional, with a discussion of what steps have been or
                         will be taken to prevent such acts from occurring in the future; and

            (d)          identification of any other issues that, to Horizon’s knowledge, will or reasonably
                         could affect the effectiveness of or its compliance with this Agreement.

5.13 Notices. Effective upon execution of this Agreement by all the Parties, all notices and
other communications relating to this Agreement, such as a proposed modification, shall be in
writing and shall be deemed given as of the date of receipt and shall be sent by electronic mail (if
an email is specified below or in a subsequent notice) and one of the following methods:
(a) delivered personally, (b) sent by facsimile, (c) sent by documented overnight courier service,
or (d) sent by registered or certified mail, postage prepaid, addressed to the Parties’ designated
representatives at the addresses shown below, unless provided otherwise in this Agreement;
provided, however, that upon written notification to the Parties, a Party may unilaterally amend or
modify its designated representative information, notwithstanding any provision to the contrary in
Section 8.6 of this Agreement:




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Department of Justice
Assistant Attorney General for National Security
National Security Division
950 Pennsylvania Avenue, NW
Washington, DC 20530

Department of Homeland Security
Assistant Secretary for Policy
3801 Nebraska Avenue, N.W.
Washington, D.C. 20528

Note: All notices and other communications shall, in addition to the foregoing methods of
delivery, be sent by email to ip-fcc@dhs.gov and/or such other email account as DHS may
designate in the future.

Horizon Mobile Communications, Inc.
Adam C. Thompson, President
225 Skyview Lane
Harleysville, PA 19038

            With a copy to:

                         E. Ashton Johnston
                         Helen E. Disenhaus
                         LAMPERT, O’CONNOR & JOHNSTON, P.C.
                         1776 K Street NW
                         Suite 700
                         Washington, DC 20006

                         ARTICLE 6: CONFIDENTIALITY; USE OF INFORMATION

6.1     Confidentiality. The Government Parties shall take all measures required by law to protect
from public disclosure all information submitted by Horizon (or other entities in accordance with
the terms of this Agreement, including the Implementation Plan) to them in connection with this
Agreement and clearly marked with the legend “Business Confidential; subject to protection under
5 U.S.C. § 553(b)” or similar designation. Such markings shall signify that it is the company’s
position that the information so marked constitutes “trade secrets” and/or “commercial or financial
information obtained from a person and privileged or confidential,” or otherwise warrants
protection within the meaning of 5 U.S.C. § 552(b)(4). For the purposes of 5 U.S.C. § 552(b)(4),
the Parties agree that information so marked is voluntarily submitted. If a request is made under
5 U.S.C. §552(a)(3) for information so marked, and disclosure of any information (including
disclosure in redacted form) is contemplated, Horizon shall be provided with the notices and
procedures required by law, including those specified in Executive Order 12600, 52 Fed. Reg.
23781 (June 25, 1987)).




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6.2     Use of Information by U.S. Government for Any Lawful Purpose. Nothing in this
Agreement shall prevent the Government Parties or any other U.S. Governmental Authority from
lawfully disseminating this Agreement or using any information produced under or otherwise
related to this Agreement to seek enforcement of this Agreement, or for any other lawful purpose.

                                                    ARTICLE 7: FCC CONDITION

7.1     FCC Approval. Upon the execution of this Agreement, including the Implementation Plan,
by all of the Parties, Horizon shall request that the FCC adopt a condition to Horizon’s existing or
pending FCC authorizations, substantially the same as set forth in Exhibit A attached hereto (the
“Condition to FCC Authorization”).

7.2     Right to Object to Future FCC Filings. Horizon agrees that in any application or petition
by Horizon, filed with or granted by the FCC after the execution of this Agreement by all the
Parties, for a license or other authority under Titles II and III of the Communications Act of 1934,
as amended, to offer, distribute, or resell Domestic Communications in the United States for
communications utilizing the Inmarsat system, or otherwise operate U.S. Licensed MESs in the
United States, Horizon shall request that the FCC condition the grant of such licensing or other
authority on compliance with the terms of this Agreement. Notwithstanding Section 8.9, nothing
in this Agreement shall preclude the Government Parties or any other U.S. Governmental
Authority from opposing, formally or informally, any FCC application or petition by Horizon for
other authority, or to transfer its license(s) to a third party (except with respect to pro forma
assignments or pro forma transfers of control), and to seek additional or different terms that would,
consistent with the public interest, address any concerns regarding the ability of the United States
to enforce the laws, preserve the national security, and protect the public safety, raised by the
services and transactions underlying any such application or petition.

                                                                 ARTICLE 8: OTHER

8.1     Right to Make and Perform Agreement. Horizon represents that it has and shall continue to
have throughout the term of this Agreement the full right to enter into this Agreement and perform
its obligations hereunder and that this Agreement is a legal, valid, and binding obligation of
Horizon enforceable in accordance with its terms.

8.2    Headings. The article and section headings and numbering in this Agreement are inserted for
convenience only and shall not affect the meaning or interpretation of the terms of this Agreement.

8.3     Other Laws. Nothing in this Agreement is intended to limit or constitute a waiver of (a) any
obligations imposed by any U.S. federal, state, or local law or regulation on Horizon, (b) any
enforcement authority available under any U.S. federal, state, or local law or regulation, (c) the
sovereign immunity of the United States, or (d) any authority the U.S. Government may possess over
the activities or facilities if Horizon located within or outside the United States (including authority
pursuant to the International Emergency Economic Powers Act). Nothing in this Agreement is
intended to or is to be interpreted to require the Parties to violate any applicable U.S. law.

8.4         Statutory References. All references in this Agreement to statutory provisions and executive



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orders shall include any future amendments to such statutory provisions and executive orders.

8.5     Non-Parties. Nothing in this Agreement is intended to confer or does confer any rights on any
person other than the Parties and any Government Authorities entitled to affect Electronic
Surveillance pursuant to Lawful U.S. Process.

8.6     Modification. This Agreement may only be modified by written agreement signed by all of
the Parties, provided that the Government Parties may, by a written notice to Horizon signed by all of
them, waive any provision of this Agreement intended for their benefit unless such waiver is objected
to by Horizon. The Government Parties agree to consider promptly and in good faith possible
modifications to this Agreement if Horizon believes that the obligations imposed on it under this
Agreement are substantially more restrictive than those imposed on other U.S. and foreign licensed
service providers in like circumstances in order to protect U.S. national security, law enforcement, and
public safety concerns. Any substantial modification to this Agreement shall be reported to the FCC
within thirty (30) days after approval in writing by the Parties.

8.7     Severability. The provisions of this Agreement shall be severable and if any provision
thereof or the application of such provision under any circumstances is held invalid by a court of
competent jurisdiction, it shall not affect any other provision of this Agreement or the application
of any provision thereof.

8.8     Changes in Circumstances for Horizon. The Government Parties agree to negotiate in good
faith and promptly with respect to any request by Horizon for relief from application of specific
provisions of this Agreement if those provisions become unduly burdensome or have an adverse
affect on Horizon’s competitive position.

8.9     Changes in Circumstances for the Government Parties. If after the date that all the Parties
have executed this Agreement, the Government Parties find that the terms of this Agreement are
inadequate to address national security, law enforcement, or public safety concerns, then Horizon
will negotiate in good faith to modify this Agreement to address those concerns.

8.10 Counterparts. This Agreement may be executed in one or more counterparts, including by
facsimile, each of which shall together constitute one and the same instrument.

8.11 Successors and Assigns: This Agreement shall inure to the benefit of, and shall be binding
upon, the Parties, and their respective successors and assigns. This Agreement shall also be binding
on all subsidiaries, divisions, departments, branches, and other components or agents of Horizon, and
on all Affiliates of Horizon.

8.12 Effectiveness of Article 8. This Article 8, and the obligations imposed and rights conferred
herein, shall be effective upon execution of this Agreement by all the Parties.

8.13 Effectiveness of Agreement. Except as otherwise specifically provided elsewhere in this
Agreement, the obligations imposed and rights conferred by this Agreement shall take effect upon
the Effective Date.




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                                                                        FAx NG.   i1215 $41—1009           Sep.      24 2008 83:57PM   PZ
FROM :SATCOM Distribution




           8.14         [NOT USED}
           8.15         Suspension of Agreement and Obligations Hereunder. This A groement shall be suspended
          upon thirty (30) days notice to the Government Parties that neither Horizon, nor any transferce or
          assignee of the ECC licenses or authorizations held by Horizon, provides Domestic
          Communications in the United States, unless any of the Government Parties, within that 30—day
          period, seeks additional information or objects to the suspension.

          816 Temmination of Agreement. This Agreement shall be terminated in its entirety upon the
          writtea determination of the Government Parties that Horizon has provided notice and ressonably
          satisfactory documentation that no foreign entity or combination of foreign entitics (including one
          or more persons under common Control) either Controls Horizon or holds, dircetly or indirectiy,
          a ten (10) percent or greater interest in Horizon, and that this Agreement is no longer necessary in
          order to protect U.S. national security, law enforcement, or public safety concerns. It is expressly
          acknowledged that this Agreement shall not be terminated with respect to Horizon during such
          time as it is engaged in distribution of BGAN Service that is provided or facilitated within the
          Univted States via any facilities or equipment, including but not limited to any land sarth station,
          located outside of the U.S. If this Agreement is not terminated pursuant to this provision, the
          Government Partics agree to consider promptly and in good faith possible modifications to this
          Agrecment,

          8.17         Notice ofAdditional Services. Horizon shall provide a minimum of thirty (30) days
          advanced notice to the Government Partics in the event that Horizon or any Affiliate changes or
          nstends to change its present services with respect to Domestic Communications, as set forth in the
          Recitals to this Agreement, such that the material representations made therein are no longer fully
          accurate, toue and complete. in no event will such notice religve any Paity to this Agreement of
          obligations under this Agreement or be construed as a waiver of any Party‘s rights under this
          Agreement.


                       This Agresment is executed on behalf of the Partics:

                                                                                   Horizon Mobilse C m;nmunications, Inc.



          Date:         Cj& L7/ é’ //                                              By:
                          4             E                                          Printed Name: Adam C. Thompson
                                                                                   Title: Prosident

                                                                                   SatCom Distribut    , Inc.
                                              4                                               s
          Date: __g/z ?ffi’TA                                                       By:         _
                                                                                   Printed Name:Adam C.“’fi:xomfi?on
                                                                                   Title: President




          BDonaom Mabile Communsioceans NS A — CLBAXN Atsls FNAL — 200808 ) |                                   dw


                              SatCom 1)istribution Lttl.


                              1 3:--~    i       L
                              Printed Name: Martin C . Ward
                                                                         .
                                                                       (--
                              'Title: Dircctor

                              SatCom G r o u p Holdings PIC


Date:   4   \   \    ~
                    052   ~   By:
                              Printed Name: Mat-tin C . Ward
                              Title: Secretary

                              Uoited States 1)epartment of Justice


Datc:                         By:
                              PI-inted Name: J . Patrick Rowan
                              'l'itlc: Acting Assistant Attorney Gcneral Tor National Sccilrity

                              Department of Horneland Security


                              b-..-
                              I'rinted Name: Stcwart A. Baker
                              'Title: Assistant Sccrctary for Policy


                                                               SatCom Distribution Ltd.


Date:                                                          By:
                                                               Printed Name: Martin C. Ward
                                                               Title: Director

                                                               SatCom Group Holdings PIC


Date:
                                                               Printed Name: Martin C. Ward
                                                               Title: Secretary

                                                               United States Department of Justice


Date:                                                          BY
                                                               Printed Name: J. Patrick Rowan
                                                               Title: Acting Assistant Attorney General for National Security

                                                               Department of Homeland Security


Date:                                                          By:
                                                               Printed Name: Stewart A. Baker
                                                               Title: Assistant Secretary for Policy




Honzon Mob~leCommunclailonsNSA - CLEAN AND FINAL - 2008081 1


                                                           SatCom Distribution Ltd.


Date:                                                      By:
                                                           Printed Name: Martin C. Ward
                                                           Title: Director

                                                           SatCom Group Holdings PIC


Date:                                                      By:
                                                           Printed Name: Martin C. Ward
                                                           Title: Secretary

                                                           United States Department of Justice


Date:                                                      By:
                                                           Printed Name: J. Patrick Rowan
                                                           Title: Acting Assistant Attorney General for National Security




                                                              v
                                                           Department of Homeland Security


Date:                                                      By:
                                                           Printed Name: Stewart A. Baker
                                                           Title: Assistant Secretary for Policy




                       NSA - CLEAN AND FINAL - 2~N)ROXII
Honmn Mob~leCommun~~ahonr


                                                      EXHIBIT A
                                           CONDITION TO FCC AUTHORIZATION

        IT IS FURTHER ORDERED, that this authorization and any licenses related thereto are
subject to compliance with the provisions of the Agreement attached hereto between Horizon Mobile
Communications, Inc. on the one hand, and the Department of Justice (“DOJ”) and the Department of
Homeland Security (“DHS”), on the other hand, dated ___________________, 2008, which
Agreement is intended to enhance the protection of U.S. national security, law enforcement, and
public safety. Nothing in this Agreement is intended to limit any obligation imposed by Federal law
or regulation.




Horizon Mobile Communciations NSA - CLEAN AND FINAL - 20080811              23
                                                                                         WA 316119.2


                                                  CERTFICATE OF SERVICE

    I hereby certify that on this 9th day of January, 2009, I caused a true and correct copy of the foregoing PETITION
TO ADOPT CONDITIONS TO AUTHORIZATIONS AND LICENSES to be served via electronic mail delivery to each
of the following parties:
 Helen Domenici, Chief                   John Giusti, Deputy Bureau Chief           Roderick Porter, Deputy Bureau Chief
 International Bureau                    International Bureau                       International Bureau
 Federal Communications Commission       Federal Communications Commission          Federal Communications Commission
 445 12th Street, SW                     445 12th Street, SW                        445 12th Street, SW
 Washington, DC 20554                    Washington, DC 20554                       Washington, DC 20554

 Arthur Lechtman, Legal Advisor          Steven Spaeth, Legal Advisor               James Ball, Chief
 International Bureau                    International Bureau                       Policy Division
 Federal Communications Commission       Federal Communications Commission          International Bureau
 445 12th Street, SW                     445 12th Street, SW                        Federal Communications Commission
 Washington, DC 20554                    Washington, DC 20554                       445 12th Street, SW
                                                                                    Washington, DC 20554

 Howard Griboff, Deputy Division Chief   George Li, Deputy Division Chief           Francis Gutierrez, Associate Division Chief
 Policy Division                         Policy Division                            Policy Division
 International Bureau                    International Bureau                       International Bureau
 Federal Communications Commission       Federal Communications Commission          Federal Communications Commission
 445 12th Street, SW                     445 12th Street, SW                        445 12th Street, SW
 Washington, DC 20554                    Washington, DC 20554                       Washington, DC 20554

 David Krech, Associate Division Chief   JoAnn Sutton, Assistant Division Chief     Paul Locke, Assistant Chief of Engineering
 Policy Division                         Policy Division                            Policy Division
 International Bureau                    International Bureau                       International Bureau
 Federal Communications Commission       Federal Communications Commission          Federal Communications Commission
 445 12th Street, SW                     445 12th Street, SW                        445 12th Street, SW
 Washington, DC 20554                    Washington, DC 20554                       Washington, DC 20554

 Susan O’Connell                         Robert Nelson, Chief                       Cassandra Thomas, Deputy Division Chief
 Policy Division                         Satellite Division                         Satellite Division
 International Bureau                    International Bureau                       International Bureau
 Federal Communications Commission       Federal Communications Commission          Federal Communications Commission
 445 12th Street, SW                     445 12th Street, SW                        445 12th Street, SW
 Washington, DC 20554                    Washington, DC 20554                       Washington, DC 20554

 Fern Jarmulnek, Deputy Division Chief   Karl Kensinger, Associate Division Chief   Kathyrn Medley, Branch Chief
 Satellite Division                      Satellite Division                         Engineering Branch
 International Bureau                    International Bureau                       Satellite Division
 Federal Communications Commission       Federal Communications Commission          International Bureau
 445 12th Street, SW                     445 12th Street, SW                        Federal Communications Commission
 Washington, DC 20554                    Washington, DC 20554                       445 12th Street, SW
                                                                                    Washington, DC 20554

 Andrea Kelly, Branch Chief              Scott Kotler, Branch Chief                 Stephen Duall
 Policy Branch                           System Analysis Branch                     Policy Branch
 Satellite Division                      Satellite Division                         Satellite Division
 International Bureau                    International Bureau                       International Bureau
 Federal Communications Commission       Federal Communications Commission          Federal Communications Commission
 445 12th Street, SW                     445 12th Street, SW                        445 12th Street, SW
 Washington, DC 20554                    Washington, DC 20554                       Washington, DC 20554

 Jeanette Spriggs                        E. Ashton Johnston
 Policy Branch                           Helen E. Disenhaus
 Satellite Division                      Lampert, O’Connor & Johnston, P.C.             /s/ Valerie M. Barrish
 International Bureau                    1776 K Street NW, Suite 700
 Federal Communications Commission       Washington, DC 20006                               Valerie M. Barrish
 445 12th Street, SW
 Washington, DC 20554



Document Created: 2009-01-09 16:27:53
Document Modified: 2009-01-09 16:27:53

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