Item 1.01 Entry into a Material Definitive Agreement
On November 16, 2022, EchoStar XXIV L.L.C. (the "Company"), a subsidiary of
EchoStar Corporation, entered into an amendment (the "Amendment") to the
Contract between the Company and Maxar Space LLC ("Maxar") for the Jupiter 3
Satellite Program (the "Contract").
Following Maxar's notification to the Company on November 8, 2022 that delivery
of the Jupiter 3 Satellite (the "Satellite") will be further delayed, and as a
result of cumulative delays totaling more than two years, the Company referenced
its rights under the Contract and negotiated both additional compensation for
past delays and a realignment of remedies to incentivize Maxar to deliver the
Satellite in line with its current schedule. The Amendment provides relief to
the Company on future payments under the Contract, including approximately $14
million in payments through orbit-raising, and $44.5 million, plus 6% interest
on such amounts, in deferred in-orbit incentive payments. Additionally, the
Amendment requires Maxar to pay additional liquidated damages in the event of
further delay, provides for the Company's right to terminate beginning
January 1, 2024 if the Satellite has not yet been delivered, and provides
certain other compensation to the Company. Based on the current delivery
schedule from Maxar, the Company continues to expect the launch of the Satellite
to be in the first half of 2023.
In addition, the Company and Maxar will enter into an agreement under which the
Company will provide Maxar with certain products and/or services during 2023 in
exchange for payments that deliver a margin to the Company of at least $30
million.
This description of the Amendment does not purport to be complete and is
qualified in its entirety by reference to the Amendment, which is filed as
Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by
this reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1+ Amendment No. 2 dated as of November 16, 2022 to the Contract
between EchoStar XXIV L.L.C. and Maxar Space LLC for the Jupiter 3
Satellite Program.
104 Cover Page Interactive Data File (formatted in Inline XBRL and
contained in Exhibit 101).
+ Certain portions of this Exhibit have been omitted pursuant to Item
601(b)(10)(iv) of Regulation S-K.
© Edgar Online, source Glimpses