Annex I The following agreed definitions constitute an integral part of the Memorandum of Agreement between the Government of the United States of America and the Government of the People's Republic of China Regarding International Trade in Commercial Launch Services of March 13, 1995. 1. "Commercial space launch services" means commercially offered or provided services to launch into space any spacecraft or satellite, including but not limited to communications satellites, for an international customer. All types or classes of launch vehicles that may be used by a Chinese space launch service provider to provide commercial space launch services are subject to this Agreement. 2. "PRC space launch service providers" means any PRC entity, or agent or instrumentality acting on its behalf, permitted by the government of the People's Republic of China to provide commercial space launch services or the space launch vehicles for such services. 3. "International customer" refers to the following: (a) any person, or any kind of corporation, company, association, venture, partnership, or other entity, whether or not organized for pecuniary gain, or privately or governmentally owned or controlled other than those institutions or entities which are owned or controlled by PRC nationals and provide telecommunications services primarily to the Chinese domestic market; or (b) any governmental body, excluding the Government of the United States of America and the Government of the People's Republic of China; or (c) any international organization or quasi-governmental consortium, including but not limited to INTELSAT, INMARSAT, or their respective legal successors; which is the ultimate owner or operator of a spacecraft or satellite or which will deliver a space craft or satellite to orbit for use by such ultimate owner or operator. 4. "Commitment" means any agreement by an international customer with a provider of commercial launch services to launch a principal payload, which effectively removes the launch from international commercial competition. The term "commitment" does not include reservation agreements. 5. "Commitment" commercial space launch services" means commercial space launch services offered to launch a spacecraft of the weight class that is the subject of a launch competition, sole source or directed procurement, taking into consideration relevant factors that may be considered when evaluating the prices, terms and conditions of such services, including, but not limited to, such factors as intended orbit, risk management, financing, satellite lifetime on orbit and integration costs. 6. "Government inducements" with respect to a particular launch services transaction include, but are not limited to, unreasonable political pressure, the provision of any resources of commercial value unrelated to the launch service competition and offers of favorable treatment under or access to defense or national security policies or programs, development assistance policies or programs, and general economic policies or programs (e.g., trade, investment, debt, or foreign exchange policies). 7. "Unfair business practices" means the making of any offer, payment, promise to pay, promise or offer of anything of value or the authorization of the payment of anything of value, or any promise to make such payment, to any official, individual, or any other entity for the purpose of obtaining or retaining business for or with or directing business to, any person, including making payment to a person while knowing that all or a portion of the payment to a person while knowing that all or a portion of the payment will be offered, given or promised, directly or indirectly, to any official, individual or any other entity for the purposes of obtaining or retaining business. 8. "Geosynchronous earth orbit" means an orbit approximately 19,400 nautical miles (35,900 kilometers) above the surface of the earth at the equator in which a payload completes on earth orbit in a 24-hour period, holding a fixed position above the earth. 9. "Geosynchronous transfer orbit" means a temporary orbit used to reposition a spacecraft or satellite into a geosynchronous earth orbit. 10. "Low earth orbit" means, for purposes of this agreement, any orbit below geosynchronous earth orbit. 11. "Principal payload" means a telecommunications satellite, or, in the absence of a telecommunications satellite, any other spacecraft or combination of spacecraft. 12. "Sole source or directed procurement" means any agreement where the launch services customer does not hold a competition and selects a supplier with whom to negotiate a launch services agreement. 13. A "new type of launch vehicle" must have significantly higher risk for the first launch than other launch vehicles already in production in order to qualify for a "test flight" price. Significantly higher risk results only from major changes to high-risk systems such as the propulsion or avionics systems. Accordingly, a "new type of launch vehicle" is one in which a majority of the primary systems (e.g. propulsion, end-to-end avionics, primary structure) and a majority of the component subsystems (e.g. strap-on boosters, guidance package, interstage adaptor) have been redesigned or significantly modified, resulting in a new untested capability not previously available on that vehicle. Minor vehicle enhancements, such as an enlarged fairing, upgraded software, extended propellant tanks, a modified payload or interstage adaptor, or a slightly modified electrical system would not by themselves represent a redesign or a significant modification for purposes of determining a new vehicle.