Exhibit 10.28.2
PanAmSat
Via Facsimile: (310) 364-6677
October 7, 1998
▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President
▇▇▇▇▇▇ Space and Communications Company
Bldg S10, M/S S329
▇.▇. ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Sea Launch Arrangements
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Dear Hal:
I received your letter today and believe that for the sake of clarity it
would be best to set our agreement out in one document, which we have done
below.
1. There shall be a demonstration launch of the Sea Launch system using a
dummy payload. The total cost of this demonstration launch shall be
[**********] of which [***********************************] and PanAmSat shall
contribute [************************************************
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2. The Sea Launch service originally designated for Galaxy XI will be
reassigned to a launch period of the fourth quarter of 1999 for an HS601HP. The
monies already paid by PanAmSat shall be credited to the price for this fourth
quarter HS601HP launch. Remaining payments will be resumed following a
successful demonstration launch. The total price for this launch shall be
[***********************
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In addition, PanAmSat shall pay [**********] in costs for the integration effort
unique to the Sea Launch of this PanAmSat HS601HP.
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[***] Filed separately with the Commission pursuant to a request for
confidential treatment.
PanAmSat Corporation
ONE PICKWICK PLAZA . ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ . USA . TELEPHONE
1/203/622/6664 . FAX 1/203/622/9163
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4. PanAmSat understands that the existing long term agreement ("LTA") between
HSCI and Sea Launch does not provide for a free re-flight in the event of a
launch failure. HSCI is currently in negotiation with Boeing on this subject.
In the event that HSCI negotiates a free or reduced rate re-flight (whether or
not pursuant to the LTA), or HSCI negotiates with Boeing for a free or reduced
rate re-flight under the LTA, then PanAmSat shall be entitled to the same
general re-flight right.
5. [****************************************************************************
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6. PanAmSat shall enjoy the benefit of all rights to which HSCI is entitled
with respect to the applicable launch service, including, without limitation,
rights of postponement, termination and communication with the launch providers.
However, in no respect will the rights and obligations of HSCI under its
contract with Sea Launch serve to limit or modify PanAmSat's rights as HSCI and
PanAmSat have expressly agreed herein. By way of example, PanAmSat shall have
the right to postpone its right to use the Sea Launch service on the same terms
that HSCI has the right to postpone under the LTA.
7. PanAmSat is encouraged to make and maintain direct communication with Sea
Launch and its partners concerning the PanAmSat Sea Launch service(s).
[***] Filed separately with the Commission pursuant to a request for
confidential treatment.
Page 3
All prices referred to above are all-inclusive of all services, hardware,
software and facilities (not including those items to be supplied by HSC under
the applicable spacecraft construction contract).
The terms of this letter will serve as the basis for amending the terms of
that certain Amended and Restated Launch Services Agreement dated as of January
21, 1997 between PanAmSat Corporation (as assignee of ▇▇▇▇▇▇ Communications
Galaxy, Inc. ("HCG")) and ▇▇▇▇▇▇ Space and Communications Company International,
Inc. ("HSCI"), as supplemented by that certain letter agreement dated as of May
15, 1997.
Please indicate HSCI's acknowledgment and agreement with the foregoing by
signing below and returning this letter to me.
Very truly yours,
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Chief Technology Officer
cc: ▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
ACKNOWLEDGED
AND AGREED TO:
▇▇▇▇▇▇ SPACE AND
COMMUNICATIONS COMPANY
INTERNATIONAL, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Title: Executive Vice President
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Date: 9 October 1998
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