Common use of Capacity Augmentation Clause in Contracts

Capacity Augmentation. If capacity on a Prime Satellite is or becomes insufficient to satisfy all the LESO’s traffic requirements at any time, although such Prime Satellite is functioning nominally, the Company may open up one or more new Ocean Regions. The introduction of any new Ocean Regions will be made in consultation with the LESOs. The Services to be carried in any new Ocean Regions may be a subset of the Services and the allocation of Services to such region will be dependant on the traffic demand and the capability of the new region to provide additional capacity. The Services to be carried in any new regions will be selected in consultation with the LESOs. The new regions may use Second or Third Generation Satellites at the appropriate orbital locations with: (a) the station keeping to two tenths (0.2) of a degree at the equatorial crossing; and (b) an orbital inclination less than five (5.0) degrees on the Second Generation Satellites and less than three (3.0) degrees on the Third Generation Satellites.