Document:

Exhibit
10.9

 

[FORM OF]

 

AMENDED AND
RESTATED MANAGEMENT STOCKHOLDER’S AGREEMENT

 

This Amended and Restated Management
Stockholder’s Agreement (this “Agreement”), initially entered into as of
August 20, 2004 (the “Effective Date”) and amended and restated as of
October 29, 2004, is made among PanAmSat Corporation, a Delaware corporation
(the “Company”), PanAmSat Holding Corporation, a Delaware corporation (“Holdco”),
and the undersigned person (the “Management Stockholder”) (the Company,
Holdco and the Management Stockholder being hereinafter collectively referred
to as the “Parties”).  All
capitalized terms not immediately defined are hereinafter defined in
Section 7(b) of this Agreement.

 

WHEREAS, the Company entered into that
certain Transaction Agreement, dated as of April 20, 2004 (the “Transaction
Agreement”), by and among Constellation, LLC, a Delaware limited liability
company (“Constellation”), the Company, The DIRECTV Group, Inc., a
Delaware corporation, and PAS Merger Sub, Inc., a Delaware corporation,
pursuant to which Constellation, on August 20, 2004, acquired all of the
outstanding shares of common stock, par value $0.01 per share, of the Company
(the “Company Common Stock”);

 

WHEREAS, on May 17, 2004, Constellation
entered into letter agreements with Carlyle PanAmSat I, L.L.C. and Carlyle
PanAmSat II, L.L.C. (together, “Carlyle”), on the one hand, and
with PEP PAS, LLC and PEOP PAS, LLC (together, “Providence”), on the
other hand, pursuant to which Constellation assigned to each of Carlyle and Providence
the right under the Transaction Agreement to purchase shares of Company Common
Stock at the same price per share paid by Constellation at the Stock Purchase
Closing (as defined in the Transaction Agreement), and following the Stock
Purchase Closing, Constellation beneficially owned approximately 44.44% of the
Common Stock, and Carlyle and Providence (together with Constellation, the “Investors”)
each beneficially owned approximately 27.41% of the Company Common Stock;

 

WHEREAS, in connection with the Stock
Purchase Closing, the Management Stockholder entered into a Rollover Agreement
with the Company, such agreement dated as of the Effective Date (the “Rollover
Agreement”), pursuant to which the Management Stockholder and the Company
agreed that certain options to acquire shares of Company Common Stock held by
the Management Stockholder and granted pursuant to the PanAmSat Corporation
1997 Long-Term Incentive Plan (the “1997 Plan”), would be retained by
the Management Stockholder after the Stock Purchase Closing (the “Rollover
Option”) and certain unvested restricted stock units would be retained by
the Management Stockholder (“Rollover Equity”);

 

WHEREAS, the Management Stockholder, as of
the Effective Date, received an option to purchase shares of Company Common
Stock (the “New Option”, together with the Rollover Option, the “Option”)
pursuant to the terms set forth below and the terms of the 2004 Stock Option
Plan for Key Employees of PanAmSat Corporation and Its Subsidiaries (the “Original
Option Plan”) and the Stock Option Agreement, dated as of the Effective
Date, entered into by and between the Company and the Management Stockholder
(the “Original Stock Option Agreement”);

 

WHEREAS, the Company and the Management
Stockholder, as of the Effective Date, entered into a Management Stockholder’s
Agreement (the “Original Management Stockholder’s Agreement”);

 

 

WHEREAS, pursuant to the Original Management
Stockholder’s Agreement, on the Effective Date: (i) the Company issued to the
Management Stockholder a New Option to acquire shares of Company Common Stock,
at an initial exercise price equal to $21.84453771 per share (the “Original
Base Price”); (ii) the Management Stockholder purchased in connection with
the Stock Purchase Closing
[               ]
shares of Company Common Stock (the “New Stock”, together with the
Rollover Equity, the “Purchased Stock”) at a price per share of
$21.84453771 from The DIRECTV Group, Inc.; (iii) the Management Stockholder,
instead of receiving the amount that would otherwise be payable to the
Management Stockholder in respect of the Rollover Option by operation of the
provisions of Section 1.04 of the Transaction Agreement, retained at the
Stock Purchase Closing such Rollover Option, which remained issued and outstanding
pursuant to the terms of the Rollover Agreement and the 1997 Plan; and (iv) the
Management Stockholder retained at the Stock Purchase Closing
[               ]
shares of Rollover Equity of the Company;

 

WHEREAS, following the Stock Purchase
Closing, the Company effectuated a 1 : 4.36890754 stock split (the “Stock
Split”), resulting in an adjustment of the Original Base Price to $5.00 per
share (the “Base Price”);

 

WHEREAS, the stockholders of the Company have
contributed their shares of Company Common Stock to Holdco in exchange for common stock, par value $0.01 per
share, of Holdco (the “Common Stock”), and as a result the Company has
become a wholly-owned subsidiary of Holdco;

 

WHEREAS, this Agreement is one of several
other agreements (“Other Management Stockholders’ Agreements”) which
have been, or which in the future will be, entered into between the Company and
other individuals who are or will be key employees of the Company or one of its
subsidiaries (collectively, the “Other Management Stockholders”);

 

WHEREAS, Holdco has agreed to provide the
Management Stockholder shares of Common Stock in lieu of Company Common Stock
in accordance with the terms of this Agreement and the Other Management
Stockholders’ Agreements;

 

WHEREAS, as of the date hereof, the Company
is assigning to Holdco and Holdco is adopting and amending and restating the
Original Option Plan (as amended and restated, the “Option Plan”) and
the 1997 Plan;

 

WHEREAS, as of the date hereof, the Company,
Holdco and the Management Stockholder are entering into an Amended and Restated
Stock Option Agreement (the “Stock Option Agreement”); and

 

WHEREAS, the Company, Holdco and the Optionee
wish to amend and restate the Original Management Stockholder’s Agreement in
order to (i) reflect the Stock Split and (ii) substitute the Common Stock mutatis mutandis for the PanAmSat Common
Stock.

 

NOW THEREFORE, to implement the foregoing and
in consideration of the mutual agreements contained herein, the Parties hereby
amend and restate the Original Management Stockholder’s Agreement as follows:

 

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1.             Purchases
of Additional Common Stock

 

With the consent of Holdco, the Management
Stockholder shall be entitled to invest from time to time in deferred stock units
at a price to be established by Holdco at the time of such investment.

 

2.             Management
Stockholder’s Representations, Warranties and Agreements.

 

(a) 
In addition to agreeing to the restrictions on transfer of Stock (as
defined in Section 3) set forth in Sections 3 and 4, if the
Management Stockholder is a Rule 405 Affiliate, the Management Stockholder
also agrees and acknowledges that he will not transfer any shares of Stock
unless:

 

(i) 
the transfer is pursuant to an effective registration statement under
the Securities Act of 1933, as amended, and the rules and regulations in effect
thereunder (the “Act”), and in compliance with applicable provisions of
state securities laws; or

 

(ii) 
(A) counsel for the Management Stockholder (which counsel shall be
reasonably acceptable to Holdco) shall have furnished Holdco with an opinion,
reasonably satisfactory in form and substance to Holdco, that no such
registration is required because of the availability of an exemption from
registration under the Act and (B) if the Management Stockholder is a
citizen or resident of any country other than the United States, or the
Management Stockholder desires to effect any transfer in any such country,
counsel for the Management Stockholder (which counsel shall be reasonably
satisfactory to Holdco) shall have furnished Holdco with an opinion or other
advice reasonably satisfactory in form and substance to Holdco to the effect
that such transfer will comply with the securities laws of such jurisdiction.

 

Notwithstanding
the foregoing, Holdco acknowledges and agrees that any of the following
transfers are deemed to be in compliance with the Act and this Agreement
(including without limitation any restrictions or prohibitions herein) and no
opinion of counsel is required in connection therewith: (x) a transfer
made pursuant to Section 3, 4, 5, 6 or 9 hereof, (y) a transfer upon
the death or Permanent Disability of the Management Stockholder to the
Management Stockholder’s Estate or a transfer to the executors, administrators,
testamentary trustees, legatees or beneficiaries of a person who has become a
holder of Stock in accordance with the terms of this Agreement; provided
that it is expressly understood that any such transferee shall be bound by the
provisions of this Agreement, and (z) a transfer made after the Effective
Date in compliance with the federal securities laws to a Management
Stockholder’s Trust, provided that such transfer is made expressly
subject to this Agreement and that the transferee agrees in writing to be bound
by the terms and conditions hereof.

 

(b) 
The certificate (or certificates) representing the Stock shall bear the
following legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES
WITH THE PROVISIONS OF THE AMENDED AND RESTATED MANAGEMENT STOCKHOLDER’S
AGREEMENT DATED

 

3

 

AS OF OCTOBER 29, 2004 AMONG PANAMSAT CORPORATION, PANAMSAT HOLDING
CORPORATION (“HOLDCO”) AND THE MANAGEMENT STOCKHOLDER NAMED ON THE FACE HEREOF
(A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF HOLDCO).”

 

(c) 
The Management Stockholder acknowledges that he has been advised that
(i) a restrictive legend in the form heretofore set forth shall be placed
on the certificates representing the Stock and (ii) a notation shall be
made in the appropriate records of Holdco indicating that the Stock is subject
to restrictions on transfer and appropriate stop transfer restrictions will be
issued to Holdco’s transfer agent with respect to the Stock.  If the Management Stockholder is a
Rule 405 Affiliate, the Management Stockholder also acknowledges that
(1) the Stock must be held indefinitely and the Management Stockholder
must continue to bear the economic risk of the investment in the Stock unless
it is subsequently registered under the Act or an exemption from such
registration is available, (2) when and if shares of the Stock may be
disposed of without registration in reliance on Rule 144 of the rules and
regulations promulgated under the Act, such disposition can be made only in
limited amounts in accordance with the terms and conditions of such Rule and
(3) if the Rule 144 exemption is not available, public sale without
registration will require compliance with some other exemption under the Act.

 

(d) 
If any shares of the Stock are to be disposed of in accordance with
Rule 144 under the Act or otherwise, the Management Stockholder shall
promptly notify Holdco of such intended disposition and shall deliver to Holdco
at or prior to the time of such disposition such documentation as Holdco may
reasonably request in connection with such sale and, in the case of a
disposition pursuant to Rule 144, shall deliver to Holdco an executed copy
of any notice on Form 144 required to be filed with the SEC.

 

(e) 
The Management Stockholder agrees that, if any shares of the Stock are
offered to the public pursuant to an effective registration statement under the
Act (other than registration of securities issued on Form S-8, S-4 or any
successor or similar form), the Management Stockholder will not effect any
public sale or distribution of any shares of the Stock not covered by such registration
statement from the time of the receipt of a notice from Holdco that Holdco has
filed or imminently intends to file such registration statement to, or within
180 days (or such shorter period as may be consented to by the managing
underwriter or underwriters) in the case of the initial Public Offering and
ninety (90) days (or in an underwritten offering such shorter period as
may be consented to by the managing underwriter or underwriters, if any) in the
case of any other Public Offering after, the effective date of such
registration statement, unless otherwise agreed to in writing by Holdco.

 

(f)  The
Management Stockholder represents and warrants that (i) with respect to
the Stock, he has received and reviewed the available information relating to
the Stock, including having received and reviewed the documents related
thereto, certain of which documents set forth the rights, preferences and
restrictions relating to the Options and the Stock underlying the Options and
(ii) he has been given the opportunity to obtain any additional
information or documents and to ask questions and receive answers about such
information, Holdco and the business and prospects of Holdco which he deems
necessary to evaluate the merits and risks related to his investment in the Stock
and to verify the information contained in the information received as
indicated in this Section 2(f), and he has relied solely on such
information.

 

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(g) 
The Management Stockholder further represents and warrants that
(i) his financial condition is such that he can afford to bear the
economic risk of holding the Stock for an indefinite period of time and has
adequate means for providing for his current needs and personal contingencies,
(ii) he can afford to suffer a complete loss of his or her investment in
the Stock, (iii) he understands and has taken cognizance of all risk
factors related to the purchase of the Stock and (iv) his knowledge and
experience in financial and business matters are such that he is capable of
evaluating the merits and risks of his purchase of the Stock as contemplated by
this Agreement.

 

3.             Transferability
of Stock.  The Management
Stockholder agrees that he will not directly or indirectly, offer, transfer,
sell, assign, pledge, hypothecate or otherwise dispose of (any of the foregoing
acts being referred to herein as a “transfer”), at the time of exercise,
any shares of the Common Stock issuable or issued upon exercise of the Options
(“Option Stock”; together with any other Purchased Stock and Common
Stock otherwise acquired and/or held by the Management Stockholder Entities, “Stock”)
at any time during the period commencing on the Effective Date and ending on
the fifth anniversary of the Effective Date; provided, however,
that the Management Stockholder may transfer shares of Stock during such time
pursuant to one of the following exceptions: (a) transfers permitted by
Section 5 or 6; (b) transfers permitted by clauses (y) and (z)
of Section 2(a); (c) a sale of shares of Common Stock pursuant to an
effective registration statement under the Act filed by Holdco, including
without limitation a sale pursuant to Section 9 (excluding any
registration on Form S-8, S-4 or any successor or similar form);
(d) transfers permitted pursuant to the Sale Participation Agreement (as
defined in Section 7); or (e) transfers permitted by the Board.  No transfer of any such shares in violation
hereof shall be made or recorded on the books of Holdco and any such transfer
shall be void ab initio and of no effect.

 

4.             Right
of First Refusal.  (a)  If, at any time after the fifth anniversary
of the Effective Date and prior to the date of consummation of a Qualified
Public Offering, the Management Stockholder receives a bona fide offer to
purchase any or all of his Stock (the “Third Party Offer”) from a third
party (which, for the avoidance of doubt, shall not include any transfers
pursuant to clauses (y) and (z) of Section 2(a)) (the “Offeror”),
which the Management Stockholder wishes to accept, the Management Stockholder
shall cause the Third Party Offer to be reduced to writing and shall notify
Holdco in writing of his wish to accept the Third Party Offer.  The Management Stockholder’s notice to
Holdco shall contain an irrevocable offer to sell such Stock to Holdco (in the
manner set forth below) at a purchase price equal to the price contained in,
and on the same terms and conditions of, the Third Party Offer, and shall be
accompanied by a copy of the Third Party Offer (which shall identify the
Offeror).  At any time within
fifteen (15) days after the date of the receipt by Holdco of the
Management Stockholder’s notice, Holdco shall have the right and option to
purchase, or to arrange for a third party to purchase, all (but not less than
all) of the shares of Stock covered by the Third Party Offer, pursuant to
Section 4(b).

 

(b) 
Holdco shall have the right and option to purchase, or to arrange for a
third party to purchase, all of the shares of Stock covered by the Third Party
Offer at the same price and on substantially the same terms and conditions as
the Third Party Offer (or, if the Third Party Offer includes any consideration
other than cash, then at the sole option of Holdco, at the equivalent all cash
price, determined in good faith by the Holdco Board), by delivering a certified
bank check or checks in the appropriate amount (or by wire transfer of
immediately available funds, if the Management Stockholder Entities provide to
Holdco wire

 

5

 

transfer instructions)
(and any such non-cash consideration to be paid) to the Management Stockholder
at the principal office of Holdco against delivery of certificates or other
instruments representing the shares of Stock so purchased, appropriately
endorsed by the Management Stockholder; provided that if the Management
Stockholder does not agree with the Holdco Board’s determination of “equivalent
all cash price”, the Management Stockholder shall have the right to so notify
Holdco, Holdco shall not have the right to purchase such shares and the
Management Stockholder shall not have any right to sell such shares to a third
party without initiating the process set forth in the first sentence of
Section 4(a).  If at the end of the
15-day period, Holdco has not tendered the purchase price for such shares in
the manner set forth above, the Management Stockholder may, during the
succeeding 60-day period, sell not less than all of the shares of Stock covered
by the Third Party Offer, to the Offeror on terms no less favorable to the
Management Stockholder than those contained in the Third Party Offer.  Promptly after such sale, the Management
Stockholder shall notify Holdco of the consummation thereof and shall furnish
such evidence of the completion and time of completion of such sale and of the
terms thereof as may reasonably be requested by Holdco.  If, at the end of sixty (60) days
following the expiration of the 15-day period during which Holdco is entitled
hereunder to purchase the Stock, the Management Stockholder has not completed
the sale of such shares of the Stock as aforesaid, all of the restrictions on
sale, transfer or assignment contained in this Agreement shall, to the extent
applicable, again be in effect with respect to such shares of the Stock.

 

(c) 
Notwithstanding anything in this Agreement to the contrary, this
Section 4 shall terminate and be of no further force or effect upon the
occurrence of a Change in Control.

 

5.                                       The Management Stockholder’s
Right to Resell Stock and Options to Holdco.

 

(a) 
Except as otherwise provided herein, if, prior to the later of the fifth
anniversary of the Effective Date and a Qualified Public Offering, the
Management Stockholder is still in the employ of Holdco (and/or, if applicable,
its subsidiaries) and the Management Stockholder’s employment is terminated as
a result of the death or Permanent Disability of the Management Stockholder,
then the applicable Management Stockholder Entity, shall, for one year (the “Put
Period”) following the date of such termination for death or Permanent
Disability, have the right to:

 

(i) 
With respect to the Stock, sell to Holdco, and Holdco shall be required
to purchase, on one occasion, all of the shares of Stock then held by the
applicable Management Stockholder Entities at a per share price equal to the
Fair Market Value Per Share (the “Section 5 Repurchase Price”); and

 

(ii) 
With respect to any outstanding Options, sell to Holdco, and Holdco
shall be required to purchase, on one occasion, all of the exercisable Options
then held by the applicable Management Stockholder Entities for an amount equal
to the product of (x) the excess, if any, of the Section 5 Repurchase
Price over the Option Exercise Price and (y) the number of Exercisable
Option Shares, which Options shall be terminated in exchange for such
payment.  In the event the foregoing
Option Excess Price is zero or a negative number, all outstanding exercisable
stock options granted to the Management Stockholder under the Option Plan shall
be automatically terminated without any payment in respect thereof.  In the event that the Management Stockholder
Entities do not exercise the foregoing rights, all exercisable but

 

6

 

unexercised Options shall terminate pursuant
to the terms of Section 3.2(b) of the Stock Option Agreement.  All unexercisable Options held by the
applicable Management Stockholder Entities shall terminate without payment
immediately upon termination of employment.

 

(b) 
In the event the applicable Management Stockholder Entities intend to
exercise their rights pursuant to Section 5(a), such Management
Stockholder Entities shall send written notice to Holdco, at any time during
the Put Period, of their intention to sell shares of Stock in exchange for the
payment referred to in Section 5(a)(i) and/or to sell such Options in
exchange for the payment referred to in Section 5(a)(ii) and shall
indicate the number of shares of Stock to be sold and the number of Options to
be sold with payment in respect thereof (the “Redemption Notice”).  The completion of the purchases shall take
place at the principal office of Holdco on the tenth business day after the
giving of the Redemption Notice.  The
applicable Repurchase Price (including any payment with respect to the Options
as described above) shall be paid by delivery to the applicable Management
Stockholder Entities of a certified bank check or checks in the appropriate
amount payable to the order of each of the applicable Management Stockholder
Entities (or by wire transfer of immediately available funds, if the Management
Stockholder Entities provide to Holdco wire transfer instructions), against
delivery of certificates or other instruments representing the Stock so
purchased and appropriate documents cancelling the Options so terminated
appropriately endorsed or executed by the applicable Management Stockholder
Entities or any duly authorized representative.

 

(c) 
Notwithstanding anything in Section 5(a) to the contrary and
subject to Section 10(a), if there exists and is continuing a default or
an event of default on the part of Holdco, the Company or any other subsidiary
of Holdco under any loan, guarantee or other agreement under which Holdco, the
Company or any other subsidiary of Holdco has borrowed money or if the
repurchase referred to in Section 5(a) would result in a default or an
event of default on the part of Holdco, the Company or any other subsidiary of
Holdco under any such agreement or if a repurchase would not be permitted under
Section 170 of the Delaware General Corporation Law (the “DGCL”) or
would otherwise violate the DGCL (or if Holdco reincorporates in another state,
the business corporation law of such state) (each such occurrence being an “Event”),
Holdco shall not be obligated to repurchase any of the Stock or the Options
from the applicable Management Stockholder Entities until the first business
day which is ten (10) calendar days after all of the foregoing Events have
ceased to exist (the “Repurchase Eligibility Date”); provided, however,
that (i) the number of shares of Stock subject to repurchase under this
Section 5(c) shall be that number of shares of Stock, and (ii) in the
case of a repurchase pursuant to Section 5(a)(ii), the number of
Exercisable Option Shares for purposes of calculating the Option Excess Price
payable under this Section 5(c) shall be the number of Exercisable Option
Shares, in each case as specified in the Redemption Notice and held by the
applicable Management Stockholder Entities at the time of delivery of the
Redemption Notice in accordance with Section 5(b) hereof.  All Options exercisable as of the date of a
Redemption Notice, in the case of a repurchase pursuant to Section 5(a),
shall continue to be exercisable until the actual repurchase of such Options
pursuant to such Redemption Notice, provided that to the extent any
Options are exercised after the date of such Redemption Notice, the number of
Exercisable Option Shares for purposes of calculating the Option Excess Price
shall be reduced accordingly.  Notwithstanding
the foregoing and subject to Section 6(d), if an Event exists and is
continuing for ninety (90) days, the Management Stockholder Entities shall
be permitted by written notice to rescind any Redemption Notice.

 

7

 

(d)  Effect of Change in Control.  Notwithstanding anything in this Agreement to the contrary,
except for any payment obligation of Holdco which has arisen prior to such
termination pursuant to this Section 5, this Section 5 shall terminate
and be of no further force or effect upon the occurrence of a Change in
Control.

 

6.                                           Holdco’s Option to Purchase
Stock and Options of Management Stockholder Upon Certain Terminations of
Employment.

 

(a)  Termination for Cause by Holdco, Termination by the
Management Stockholder without Good Reason and other Call Events.  Except as otherwise provided herein, if,
prior to the fifth anniversary of the Effective Date, (i) the Management
Stockholder’s active employment with Holdco (and/or, if applicable, its
subsidiaries) is terminated by Holdco (and/or, if applicable, its subsidiaries)
for Cause, (ii) the Management Stockholder’s active employment with Holdco
(and/or, if applicable, its subsidiaries) is terminated by the Management
Stockholder without Good Reason, (iii) the beneficiaries of a Management
Stockholder’s Trust shall include any person or entity other than the
Management Stockholder, his spouse (or ex-spouse) or his lineal descendants
(including adopted children) or (iv) the Management Stockholder shall
otherwise effect a transfer of any of the Stock other than as permitted in this
Agreement (other than as may be required by applicable law or an order of a
court having competent jurisdiction) after notice from Holdco of such
impermissible transfer and a reasonable opportunity to cure such transfer
(each, a “Section 6(a) Call Event”):

 

(A)          With respect to the Stock, Holdco may
purchase all or any portion of the shares of the Stock then held by the
applicable Management Stockholder Entities at a per share purchase price equal
to the lesser of (x) the Fair Market Value Per Share and (y) the Book
Value Per Share (any such applicable repurchase price, the “Section 6(a)
Repurchase Price”); and

 

(B)           With respect to the Options (other
than the Rollover Options) if the event described in clause 6(a)(i), (iii)
or (iv) has occurred, all such Options (whether or not then exercisable) held
by the applicable Management Stockholder Entities will terminate immediately
without payment in respect thereof; and

 

(C)           With respect to the Options if the
event described in clause 6(a)(ii) has occurred, Holdco  may purchase all or any portion of the
exercisable Options held by the applicable Management Stockholder Entities for
an amount equal to the product of (x) the excess, if any, of the
Section 6(a) Repurchase Price over the Option Exercise Price and
(y) the number of Exercisable Option Shares, which Options shall be
terminated in exchange for such payment. 
In the event the foregoing Option Excess Price is zero or a negative
number, all outstanding exercisable stock options granted to the Management
Stockholder under the Option Plan shall be automatically terminated without any
payment in respect thereof.  In the
event that Holdco does not exercise the foregoing rights, all exercisable but
unexercised Options shall terminate pursuant to the terms of
Section 3.2(f) of the Stock Option Agreement.  All unexercisable Options held by the applicable Management
Stockholder Entities shall also terminate without payment immediately upon
termination of employment.

 

(b)  Termination without Cause by Holdco, and Termination
by the Management Stockholder with Good Reason.  Except as otherwise provided herein, if,
prior to the fifth anniversary of the Effective Date, (i) the Management
Stockholder’s active 

 

8

 

employment with
Holdco (and/or, if applicable, its subsidiaries) is terminated by Holdco
(and/or, if applicable, its subsidiaries) without Cause, or (ii) the
Management Stockholder’s active employment with Holdco (and/or, if applicable,
its subsidiaries) is terminated by the Management Stockholder with Good Reason,
(each, a “Section 6(b) Call Event”):

 

(A)          With respect to the Stock, Holdco may
purchase all or any portion of the shares of the Stock then held by the
applicable Management Stockholder Entities at a per share purchase price equal
to: (i) in the case of Option Stock, the Book Value Per Share (or after a
Public Offering, Market Value Per Share), or (ii) in the case of any other
Common Stock otherwise acquired and/or held by the Management Stockholder
Entities, the Fair Market Value Per Share; and

 

(B)           With respect to the Options, Holdco
may purchase all or any portion of the exercisable Options held by the
applicable Management Stockholder Entities for an amount equal to the product
of (x) the excess, if any, of the price equal to the Book Value Per Share
(or after a Public Offering, Market Value Per Share) over the Option Exercise
Price and (y) the number of Exercisable Option Shares, which Options shall
be terminated in exchange for such payment. 
In the event the foregoing Option Excess Price is zero or a negative
number, all outstanding exercisable stock options granted to the Management
Stockholder under the Option Plan shall be automatically terminated without any
payment in respect thereof.  In the
event that Holdco does not exercise the foregoing rights, all exercisable but
unexercised Options shall terminate pursuant to the terms of
Section 3.2(d) or (e), as the case may be, of the Stock Option Agreement; provided,
however, that, notwithstanding anything contained in the 1997 Plan or
the applicable Rollover Option stock option agreement to the contrary, in the
event of termination of the Management Stockholder’s employment by Holdco
without Cause or by the Management Stockholder with Good Reason, all
exercisable but unexercised Rollover Options shall terminate 10 years
after the grant date.  All unexercisable
Options held by the applicable Management Stockholder Entities shall also
terminate without payment immediately upon termination of employment.

 

(c)  Termination for Death or Disability.  Except as otherwise provided herein, if,
prior to the fifth anniversary of the Effective Date, the Management
Stockholder’s employment with Holdco (and/or, if applicable, its subsidiaries)
is terminated as a result of the death or Permanent Disability of the
Management Stockholder (each a “Section 6(c) Call Event”), then
Holdco may:

 

(A)          With respect to the Stock, purchase
all or any portion of the shares of Stock then held by the applicable
Management Stockholder Entities at a per share price equal to the Fair Market
Value Per Share; and

 

(B)           With respect to the Options, purchase
all or any portion of the exercisable Options for an amount equal to the
product of (x) the excess, if any, of the Fair Market Value Per Share over
the Option Exercise Price and (y) the number of Exercisable Option Shares,
which Options shall be terminated in exchange for such payment.  In the event the foregoing Option Excess
Price is zero or a negative number, all outstanding exercisable stock options
granted to the Management Stockholder under the Option Plan shall be
automatically terminated without any payment in respect thereof.  In the event that Holdco does not exercise
the foregoing rights all exercisable but unexercised Options (other than the
Rollover Options) shall terminate pursuant to the terms of Section 3.2(b)
of the Stock Option

 

9

 

Agreement. 
All unexercisable Options held by the applicable Management Stockholder
Entities shall also terminate without payment immediately upon termination of
employment.

 

(d)  Call Notice.  Holdco shall have a period of (i) sixty (60) days from
the date of any Call Event (or, if later, with respect to a Section 6(a)
Call Event, the date after discovery of, and the applicable cure period for, an
impermissible transfer constituting a Section 6(a) Call Event) and
(ii) thirty (30) days from the date the Management Stockholder rescinds
a Redemption Notice pursuant to the last sentence of Section 5(c), in
which to give notice in writing to the Management Stockholder of its election
to exercise its rights and obligations pursuant to this Section 6 (“Repurchase
Notice”).  The completion of the
purchases pursuant to the foregoing shall take place at the principal office of
Holdco on the tenth business day after the giving of the Call Notice.  The applicable Repurchase Price (including
any payment with respect to the Options as described in this Section 6) shall
be paid by delivery to the applicable Management Stockholder Entities of a
certified bank check or checks in the appropriate amount payable to the order
of each of the applicable Management Stockholder Entities (or by wire transfer
of immediately available funds, if the Management Stockholder Entities provide
to Holdco wire transfer instructions) against delivery of certificates or other
instruments representing the Stock so purchased and appropriate documents
cancelling the Options so terminated, appropriately endorsed or executed by the
applicable Management Stockholder Entities or any duly authorized
representative.

 

(e)  Delay of Call.  Notwithstanding any other provision of this Section 6 to the
contrary and subject to Section 10(a), if there exists and is continuing
any Event, Holdco shall delay the repurchase of any of the Stock or the Options
(pursuant to a Call Notice timely given in accordance with Section 6(d)
hereof) from the applicable Management Stockholder Entities until the Repurchase
Eligibility Date; provided, however, that (i) the number of
shares of Stock subject to repurchase under this Section 6 shall be that
number of shares of Stock, and (ii) in the case of a repurchase pursuant
to Section 6(a), 6(b) or 6(c), the number of Exercisable Option Shares for
purposes of calculating the Option Excess Price payable under this
Section 6 shall be the number of Exercisable Option Shares, in each case
held by the applicable Management Stockholder Entities at the time of delivery
of (and as set forth in) a Call Notice in accordance with Section 6(d)
hereof.  All Options exercisable as of
the date of a Repurchase Notice, in the case of a repurchase pursuant to
Section 6(a), 6(b) or 6(c), shall continue to be exercisable until the
actual repurchase of such Options pursuant to such Call Notice, provided
that to the extent that any Options are exercised after the date of such Call
Notice, the number of Exercisable Option Shares for purposes of calculating the
Option Excess Price shall be reduced accordingly.  Notwithstanding the foregoing, if an Event exists and is
continuing for ninety (90) days, the Management Stockholder Entities shall
be permitted by written notice to cause Holdco to rescind any Repurchase Notice
but Holdco shall have another thirty (30) days from the date the Event
ceases to exist to give another Repurchase Notice on the terms applicable to
the first Repurchase Notice.

 

(f)  Effect of Change in Control.  Notwithstanding anything in this Agreement to the contrary,
except for any payment obligation of Holdco, this Section 6 shall
terminate and be of no further force or effect upon the occurrence of a Change
in Control.

 

7.             Adjustment
of Repurchase Price; Definitions.

 

(a)  Adjustment of Repurchase Price.  In determining the applicable repurchase
price of the Stock and Options, as provided for in Sections 5 and 6,
above, appropriate

 

10

 

adjustments shall be
made for any stock dividends, splits, combinations, recapitalizations or any
other adjustment in the number of outstanding shares of Stock in order to
maintain, as nearly as practicable, the intended operation of the provisions of
Sections 5 and 6.

 

(b)  Definitions.  All capitalized terms used in this Agreement and not defined
herein shall have such meaning as such terms are defined in the Option
Plan.  Terms used herein and as listed
below shall be defined as follows:

 

“Act”
shall have the meaning set forth in Section 2(a)(i) hereof.

 

“Agreement”
shall have the meaning set forth in the introductory paragraph.

 

“Base  Price” shall
have the meaning set forth in the recitals.

 

“Board” shall mean the board of directors of
the Company.

 

“Book Value Per Share” shall mean (a) the
Base Price plus (b) the quotient of (A)(i) the aggregate net
income of the Company from and after the Effective Date until October 8, 2004
(as decreased by any net losses from and after the Effective Date until October
8, 2004) excluding any one time costs and expenses charged to income associated
with the Stock Purchase Closing and any related transactions plus
(ii) the aggregate net income of Holdco from and after October 8, 2004 (as
decreased by any net losses from and after October 8, 2004) plus
(iii) the aggregate dollar amount contributed to (or credited to common
stockholders’ equity of) the Company after the Effective Date until October 8,
2004 as equity of the Company (including consideration that would be received
upon the exercise of all outstanding stock options and other rights to acquire
Common Stock and the conversion of all securities convertible into Common Stock
and other stock equivalents) plus (iv) the aggregate dollar amount
contributed to (or credited to common stockholders’ equity of) Holdco from and
after October 8, 2004 as equity of Holdco (including consideration that would
be received upon the exercise of all outstanding stock options and other rights
to acquire Common Stock and the conversion of all securities convertible into
Common Stock and other stock equivalents) plus (v) to the extent
reflected as deductions to Book Value Per Share in clause (i) or (ii)
above, unusual or other items recognized by the Company or Holdco (including,
without limitation, extraordinary charges, and one time or accelerated
write-offs of good will, net of the related impact on the provision for income
taxes), in each case, if and to the extent determined in good faith by the
Board or the Holdco Board, as applicable, plus (vi) the
amortization of purchase accounting adjustments occurring as a result of the
Stock Purchase Closing, minus (vii) to the extent reflected as
additions to Book Value Per Share in clause (i) or (ii) above, unusual or
other items recognized by the Company or Holdco, in each case, if and to the
extent determined in good faith by the Board or the Holdco Board, as
applicable, minus (viii) the aggregate dollar amount of any
dividends paid by the Company after the Effective Date and prior to October 8,
2004 or Holdco on or after October 8, 2004, divided  by
(B) the sum of the number of shares of Common Stock then outstanding and
the number of shares of Common Stock issuable upon the exercise of all
outstanding stock options and other rights to acquire Common Stock.  The items referred to in the calculations
set forth in clauses (b)(A)(i) through (viii) of the immediately preceding
sentence shall be determined in good faith, and to the extent possible, in
accordance with generally accepted accounting principles applied on a basis
consistent with any prior periods as reflected in the consolidated financial
statements of Holdco.

 

11

 

“Call Events” shall mean, collectively,
Section 6(a) Call Events, Section 6(b) Call Events, and
Section 6(c) Call Events.

 

“Call Notice” shall have the meaning set
forth in Section 6(d) hereof.

 

“Carlyle” shall have the meaning set forth
in the recitals.

 

“Cause”
shall mean “Cause” as such term may be defined in any employment agreement or
change-in-control agreement in effect at the time of termination between the
Management Stockholder and Holdco or any of its subsidiaries or Rule 405
Affiliates; or, if there is no such employment or change in-control agreement,
“Cause” shall mean (i) the Management Stockholder’s willful and continued
failure to perform his or her material duties with respect to Holdco or it
subsidiaries which continues beyond ten (10) days after a written demand
for substantial performance is delivered to the Management Stockholder by
Holdco or any such subsidiary (the “Cure Period”), (ii) the willful
or intentional engaging by the Management Stockholder in conduct that causes
material and demonstrable injury, monetarily or otherwise, to Holdco or its
subsidiaries, the Investors and its Rule 405 Affiliates,
(iii) conviction of, or a plea of nolo
contendere to, a crime constituting (A) a felony under the laws
of the United States or any state thereof or (B) a misdemeanor involving
moral turpitude, or (iv) a material breach of by the Management
Stockholder of this Agreement or other agreements, including, without limitation,
engaging in any action in breach of restrictive covenants, herein or therein,
that continues beyond the Cure Period (to the extent that, in the Board’s
reasonable judgment, such breach can be cured).

 

“Change in
Control” means in one or a series of related transactions (i) the sale
of all or substantially all of the assets of Holdco to an Unaffiliated Person;
(ii) a sale resulting in more than 50% of the voting stock of Holdco being
held by an Unaffiliated Person; (iii) a merger, consolidation, recapitalization
or reorganization of Holdco with or into another Unaffiliated Person; if and only if any such event listed in
clauses (i) through (iii) above results in the inability of the Investors,
or any member or members of the Investors, to designate or elect a majority of
the Holdco Board (or the board of directors of the resulting entity or its
parent company).  For purposes of this
definition, the term “Unaffiliated Person” means any Person or Group who
is not (x) an Investor or any member of the Investors, (y) a
Rule 405 Affiliate of any Investor or any member of any Investor, or
(z) an entity in which any Investor, or any member of any Investor holds,
directly or indirectly, a majority of the economic interests in such entity.

 

“Common
Stock” shall have the meaning set forth in the recitals.

 

“Company”
shall have the meaning set forth in the introductory paragraph.

 

“Company
Common Stock” shall have the meaning set forth in the recitals.

 

“Confidential
Information” shall mean all non-public information concerning trade secret,
know-how, software, developments, inventions, processes, technology, designs,
the financial data, strategic business plans or any proprietary or confidential
information, documents or materials in any form or media, including any of the
foregoing relating to research, operations, finances, current and proposed
products and services, vendors, customers, advertising and marketing, and other
non-public, proprietary, and confidential information of the Restricted Group.

 

12

 

“Constellation”
shall have the meaning set forth in the recitals.

 

“Custody
Agreement and Power of Attorney” shall have the meaning set forth in
Section 9(e) hereof.

 

“DGCL”
shall have the meaning set forth in Section 5(c) hereof.

 

“Effective
Date” shall have the meaning set forth in the introductory paragraph.

 

“Event”
shall have the meaning set forth in Section 5(c) hereof.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended (or any
successor section thereto).

 

“Exercisable
Option Shares” shall mean the shares of Common Stock that, at the
Repurchase Calculation Date, could be purchased by the Management Stockholder
upon exercise of his or her outstanding and exercisable Options.

 

“Fair
Market Value Per Share” shall mean the Market Value Per Share, or, if there
has been no Qualified Public Offering, the fair market value of the Common
Stock as determined (i) in the good faith discretion of the Holdco Board
after consultation with an independent investment banking firm and
(ii) without any premiums for control or discounts for minority interests
or restrictions on transfer.

 

“Good
Reason” shall mean “Good Reason” as such term may be defined in any
employment agreement or change-in-control agreement in effect at the time of
termination between the Management Stockholder and Holdco or any of its
subsidiaries or Rule 405 Affiliates; or, if there is no such employment or
change-in-control agreement, “Good Reason” shall mean (i) a reduction in the
Management Stockholder’s base salary or annual incentive compensation (other
than a general reduction in base salary that affects all members of senior
management in substantially the same proportions, provided that the
Management Stockholder’s base salary is not reduced by more than 10%);
(ii) a substantial reduction in the Management Stockholder’s duties and
responsibilities; or (iii) a transfer of the Management Stockholder’s
primary workplace by more than fifty miles from his workplace as of the Effective
Date.

 

“Group”
shall mean “group,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

“Holdco”
shall have the meaning set forth in the introductory paragraph.

 

“Holdco
Board” shall mean the board of directors of Holdco.

 

“Investors”
shall have the meaning set forth in the recitals.

 

“Management
Stockholder” shall have the meaning set forth in the introductory
paragraph.

 

“Management
Stockholder Entities” shall mean the Management Stockholder’s Trust, the
Management Stockholder and the Management Stockholder’s Estate, collectively.

 

13

 

“Management
Stockholder’s Estate” shall mean the conservators, guardians, executors,
administrators, testamentary trustees, legatees or beneficiaries of the
Management Stockholder.

 

“Management
Stockholder’s Trust” shall mean a partnership, limited liability company,
corporation, trust or custodianship, the beneficiaries of which may include
only the Management Stockholder, his spouse (or ex-spouse) or his lineal
descendants (including adopted) or, if at any time after any such transfer
there shall be no then living spouse or lineal descendants, then to the
ultimate beneficiaries of any such trust or to the estate of a deceased
beneficiary.

 

“Market
Value Per Share” shall mean, on the Repurchase Calculation Date, the price
per share equal to (i) the average of the last sale price of the Common
Stock for the five (5) trading days ending on the Repurchase Calculation
Date on each stock exchange on which the Common Stock may at the time be listed
or, (ii) if there shall have been no sales on any such exchanges on the
Repurchase Calculation Date on any given day, the average of the closing bid
and asked prices of the Common Stock on each such exchange for the five (5)
trading days ending on the Repurchase Calculation Date or, (iii) if there
is no such bid and asked price on the Repurchase Calculation Date, the average
of the closing bid and asked prices of the Common Stock on the next preceding
date when such bid and asked price occurred or, (iv) if the Common Stock
shall not be so listed, the average of the closing sales prices of the Common
Stock as reported by NASDAQ for the five (5) trading days ending on the
Repurchase Calculation Date in the over-the-counter market.

 

“Maximum
Repurchase Amount” shall have the meaning set forth in Section 10(a)
hereof.

 

“New Option”
shall have the meaning set forth in the recitals.

 

“1997 Plan”
shall have the meaning set forth in the recitals.

 

“Notice”
shall have the meaning set forth in Section 9(b) hereof.

 

“Offeror”
shall have the meaning set forth in Section 4(a) hereof.

 

“Option”
shall have the meaning set forth in the recitals.

 

“Option
Excess Price” shall mean the aggregate amount paid or payable by Holdco in
respect of Exercisable Option Shares pursuant to Section 5 or 6, as
applicable.

 

“Option
Exercise Price” shall mean the then-current exercise price of the shares of
Common Stock covered by the applicable Option.

 

“Option
Plan” shall have the meaning set forth in the recitals.

 

“Option
Stock” shall have the meaning set forth in Section 3(a) hereof.

 

“Original
Base Price” shall have the meaning set forth in the recitals.

 

“Original
Management Stockholder’s Agreement” shall have the meaning set forth in the
recitals.

 

14

 

“Original
Option Plan” shall have the meaning set forth in the recitals.

 

“Original
Stock Option Agreement” shall have the meaning set forth in the recitals.

 

“Other
Management Stockholders” shall have the meaning set forth in the recitals.

 

“Other
Management Stockholders’ Agreements” shall have the meaning set forth in
the recitals.

 

“Parties”
shall have the meaning set forth in the introductory paragraph.

 

“Permanent
Disability” shall mean “Disability” or “Permanent Disability” (as
applicable) as such term may be defined in any employment agreement or
change-in-control agreement in effect at the time of termination between the
Management Stockholder and Holdco or any of its subsidiaries or Rule 405 Affiliates;
or, if there is no such employment or change-in-control agreement, “Permanent
Disability” shall mean the Management Stockholder becomes physically or
mentally incapacitated and is therefore unable for a period of six (6)
consecutive months to perform substantially all of the material elements of the
Management Stockholder’s duties with Holdco or any subsidiary or Rule 405
Affiliate thereof.  Any question as to
the existence of the Permanent Disability of the Management Stockholder as to
which the Management Stockholder and Holdco cannot agree shall be determined in
writing by a qualified independent physician mutually acceptable to the
Management Stockholder and Holdco.  If
the Management Stockholder and Holdco cannot agree as to a qualified
independent physician, each shall appoint such a physician and those two
physicians shall select a third who shall make such determination in
writing.  The determination of Permanent
Disability made in writing to Holdco and the Management Stockholder shall be
final and conclusive for all purposes of this Agreement.

 

“Person”
shall mean “person,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

“Piggyback
Registration Rights” shall have the meaning set forth in Section 9(a).

 

“Proposed Registration”
shall have the meaning set forth in Section 9(b) hereof.

 

“Providence”
shall have the meaning set forth in the recitals.

 

“Public
Offering” shall mean the sale of shares of Common Stock to the public
subsequent to the date hereof pursuant to a registration statement under the
Act which has been declared effective by the SEC (other than a registration
statement on Form S-4, S-8 or any other similar form).

 

“Purchased
Stock” shall have the meaning set forth in the recitals.

 

“Qualified
Public Offering” shall mean a Public Offering, which results in an active
trading market of 25% or more of the Common Stock.

 

“Registration
Rights Agreement” shall mean the Amended and Restated Registration Rights
Agreement, entered into as of the Effective Date and amended and restated as of
October 14, 2004, among PanAmSat Holding Corporation, Constellation, LLC,
Carlyle PanAmSat I, L.L.C., Carlyle PanAmSat II, L.L.C., PEP PAS, LLC and PEOP
PAS, LLC.

 

15

 

“Repurchase
Calculation Date” shall mean the last day of the month preceding the later
of (i) the month in which the event giving rise to the right to repurchase
occurs and (ii) the month in which the Repurchase Eligibility Date occurs.

 

“Repurchase
Eligibility Date” shall have the meaning set forth in Section 5(c)
hereof.

 

“Repurchase
Price” shall mean the amount to be paid in respect of the Stock and Options
to be purchased by Holdco pursuant to Section 5(a), Section 6(a),
6(b), or 6(c), as applicable.

 

“Request”
shall have the meaning set forth in Section 9(b) hereof.

 

“Restricted
Group” shall mean, collectively, Holdco, the Company, its subsidiaries, the
Investors and their respective Rule 405 Affiliates.

 

“Rollover
Agreement” shall have the meaning set forth in the recitals.

 

“Rollover
Option” shall have the meaning set forth in the recitals.

 

“Rule 405
Affiliate” shall mean an affiliate of Holdco as defined under Rule 405
of the rules and regulations promulgated under the Act and as interpreted in
good faith by the Holdco Board.

 

“Sale
Participation Agreement” shall mean that certain amended and restated sale
participation agreement entered into by and between the Management Stockholder
and the Investors as of the Effective Date and amended and restated as of the date
hereof.

 

“SEC”
shall mean the Securities and Exchange Commission.

 

“Stock”
shall have the meaning set forth in Section 3(a) hereof.

 

“Stock
Option Agreement” shall have the meaning set forth in the recitals.

 

“Stock
Purchase Closing” shall have the meaning set forth in the Transaction
Agreement.

 

“Stock
Split” shall have the meaning set forth in the recitals

 

“Third
Party Offer” shall have the meaning set forth in Section 4(a) hereof.

 

“Transaction
Agreement” shall have the meaning set forth in the recitals.

 

“Transfer”
shall have the meaning set forth in Section 3.

 

8.             Holdco’s
and the Company’s Representations and Warranties.

 

(a) 
Holdco represents and warrants to the Management Stockholder that
(i) this Agreement has been duly authorized, executed and delivered by
Holdco and is enforceable against Holdco in accordance with its terms and
(ii) the Stock, when issued and delivered in accordance with the terms
hereof and the other agreements contemplated hereby, will be duly and validly
issued, fully paid and nonassessable.

 

16

 

(b) 
If Holdco becomes subject to the reporting requirements of
Section 12 of the Exchange Act, Holdco will file the reports required to
be filed by it under the Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder, to the extent required from time to time to
enable the Management Stockholder to sell shares of Stock without registration
under the Exchange Act within the limitations of the exemptions provided by
(A) Rule 144 under the Act, as such Rule may be amended from time to
time, or (B) any similar rule or regulation hereafter adopted by the
SEC.  Notwithstanding anything contained
in this Section 8(b), Holdco may de-register under Section 12 of the Exchange
Act if it is then permitted to do so pursuant to the Exchange Act and the rules
and regulations thereunder and, in such circumstances, shall not be required
hereby to file any reports which may be necessary in order for Rule 144 or
any similar rule or regulation under the Act to be available.  Nothing in this Section 8(b) shall be
deemed to limit in any manner the restrictions on sales of Stock contained in
this Agreement.

 

(c) 
The Company represents and warrants to the Management Stockholder that
this Agreement has been duly authorized, executed and delivered by the Company
and is enforceable against the Company in accordance with its terms.

 

9.             “Piggyback”
Registration Rights.  Effective upon
the date of this Agreement and until the later of (i) the first occurrence
of a Qualified Public Offering and (ii) the fifth anniversary of the
Effective Date:

 

(a) 
The Management Stockholder hereby agrees to be bound by all of the
terms, conditions and obligations of the piggyback registration rights contained
in Section 2 of the Registration Rights Agreement entered into by and
among Holdco and investors party thereto (the “Piggyback Registration Rights”),
as in effect on the date hereof (subject to any amendments thereto to which the
Management Stockholder has agreed in writing to be bound), and, if any of the
Investors is selling stock, whether or not before the IPO Date (as defined in
the Registration Rights Agreement), shall have all of the rights and privileges
of the Piggyback Registration Rights (including, without limitation, the right
to participate in a public offering and any rights to indemnification and/or
contribution from Holdco and/or the Investors), in each case as if the
Management Stockholder were an original party (other than Holdco) to the
Registration Rights Agreement, subject to applicable and customary underwriter
restrictions; provided, however, that at no time shall the
Management Stockholder have any rights to request registration under
Section 3 of the Registration Rights Agreement; and provided  further,
that the Management Stockholder shall not be bound by any amendments to the
Registration Rights Agreement unless the Management Stockholder consents in
writing thereto provided that such consent will not be unreasonably
withheld.  All Stock purchased or held
by the applicable Management Stockholder Entities pursuant to this Agreement
shall be deemed to be “Registrable Securities” as defined in the Registration
Rights Agreement.

 

(b) 
In the event of a sale of Common Stock by any of the Investors in
accordance with the terms of the Registration Rights Agreement, Holdco will
promptly notify the Management Stockholder in writing (a “Notice”) of
any proposed registration (a “Proposed Registration”).  If within fifteen (15) days of the receipt
by the Management Stockholder of such Notice, Holdco receives from the
applicable Management Stockholder Entities a written request (a “Request”)
to register shares of Stock held by the applicable Management Stockholder
Entities (which Request will be irrevocable unless otherwise mutually agreed to
in writing by the Management Stockholder and Holdco), shares of Stock will be
so registered as provided in this Section 9; provided, however,
that for each such

 

17

 

registration
statement only one Request, which shall be executed by the applicable
Management Stockholder Entities, may be submitted for all Registrable
Securities held by the applicable Management Stockholder Entities.

 

(c) 
The maximum number of shares of Stock which will be registered pursuant
to a Request will be the lowest of (i) the number of shares of Stock then
held by the Management Stockholder Entities, including all shares of Stock
which the Management Stockholder Entities are then entitled to acquire under an
unexercised Option to the extent then exercisable, multiplied by a fraction,
the numerator of which is the number of shares of Stock being sold by the
selling Investors and any affiliated or unaffiliated investment partnerships
and investment limited liability companies investing with the selling Investors
and the denominator of which is the aggregate number of shares of Stock owned
by the selling Investors and any investment partnerships and investment limited
liability companies investing with the selling Investors or (ii) the
maximum number of shares of Stock which Holdco can register in the Proposed
Registration without adverse effect on the offering in the view of the managing
underwriters (reduced pro rata as more fully described in subsection (d)
of this Section 9).

 

(d) 
If a Proposed Registration involves an underwritten offering and the
managing underwriter advises Holdco in writing that, in its opinion, the number
of shares of Stock requested to be included in the Proposed Registration
exceeds the number which can be sold in such offering, so as to be likely to
have an adverse effect on the price, timing or distribution of the shares of
Stock offered in such Public Offering as contemplated by t Holdco, then Holdco
will include in the Proposed Registration (i) first, 100% of the shares of
Stock Holdco proposes to sell and (ii) second, to the extent of the number
of shares of Stock requested to be included in such registration which, in the
opinion of such managing underwriter, can be sold without having the adverse
effect referred to above, the number of shares of Stock which the selling
Investors and any affiliated or unaffiliated investment partnerships and
investment limited liability companies investing with the selling Investors,
the Management Stockholder and all Other Management Stockholders (together, the
“Holders”) have requested to be included in the Proposed Registration,
such amount to be allocated pro rata among all requesting Holders on the basis
of the relative number of shares of Stock then held by each such Holder
(including upon exercise of all exercisable Options) (provided that any
shares thereby allocated to any such Holder that exceed such Holder’s request
will be reallocated among the remaining requesting Holders in like manner).

 

(e) 
Upon delivering a Request the Management Stockholder will, if requested
by Holdco, execute and deliver a custody agreement and power of attorney having
customary terms and in form and substance reasonably satisfactory to Holdco with
respect to the shares of Stock to be registered pursuant to this Section 9
(a “Custody Agreement and Power of Attorney”).  The Custody Agreement and Power of Attorney will provide, among
other things, that the Management Stockholder will deliver to and deposit in
custody with the custodian and attorney-in-fact named therein a certificate or
certificates (to the extent applicable) representing such shares of Stock (duly
endorsed in blank by the registered owner or owners thereof or accompanied by
duly executed stock powers in blank) and irrevocably appoint said custodian and
attorney-in-fact as the Management Stockholder’s agent and attorney-in-fact
with full power and authority to act under the Custody Agreement and Power of
Attorney on the Management Stockholder’s behalf with respect to the matters
specified therein.

 

18

 

(f) 
The Management Stockholder agrees that he will execute such other
agreements as Holdco may reasonably request to further evidence the provisions
of this Section 9.

 

10.           Pro
Rata Repurchases; Dividends. 
(a)  Notwithstanding anything to
the contrary contained in Section 5 or 6, if at any time consummation of
any purchase or payment to be made by Holdco pursuant to this Agreement and the
Other Management Stockholders Agreements would result in an Event, then Holdco
shall make purchases from, and payments to, the Management Stockholder and
Other Management Stockholders pro rata (on the basis of the proportion of the
number of shares of Stock each such Management Stockholder and all Other
Management Stockholders have elected or are required to sell to Holdco) for the
maximum number of shares of Stock permitted without resulting in an Event (the
“Maximum Repurchase Amount”). 
The provisions of Section 5(c) and 6(e) shall apply in their
entirety to payments and repurchases with respect to shares of Stock which may
not be made due to the limits imposed by the Maximum Repurchase Amount under
this Section 10(a).  Until all of
such Stock is purchased and paid for by Holdco, the Management Stockholder and
the Other Management Stockholders whose Stock is not purchased in accordance
with this Section 10(a) shall have priority, on a pro rata basis, over
other purchases of Stock by Holdco pursuant to this Agreement and Other
Management Stockholders’ Agreements.

 

(b) 
In the event any dividends are paid with respect to the Stock, the
Management Stockholder will be treated in the same manner as all other holders
of Common Stock with respect to shares of Stock then owned by the Management
Stockholder, and, with respect to any Options held by the Management
Stockholder, in accordance, as applicable, with Section 2.4 of the Stock
Option Agreement.

 

11.           Rights
to Negotiate Repurchase Price. 
Nothing in this Agreement shall be deemed to restrict or prohibit Holdco
from purchasing, redeeming or otherwise acquiring for value shares of Stock or
Options from the Management Stockholder, at any time, upon such terms and
conditions, and for such price, as may be mutually agreed upon in writing
between the Parties, whether or not at the time of such purchase, redemption or
acquisition circumstances exist which specifically grant Holdco the right to
purchase, or the Management Stockholder the right to sell, shares of Stock or
any Options under the terms of this Agreement; provided that no such
purchase, redemption or acquisition shall be consummated, and no agreement with
respect to any such purchase, redemption or acquisition shall be entered into,
without the prior approval of the Holdco Board.

 

12.           Covenant
Regarding 83(b) Election.  Except as
Holdco may otherwise agree in writing, the Management Stockholder hereby
covenants and agrees that he will make an election provided pursuant to
Treasury Regulation 1.83-2 with respect to the Stock, including without
limitation, the Stock to be acquired upon each exercise of the Management
Stockholder’s Options and any grant of restricted Stock; and Management
Stockholder further covenants and agrees that he will furnish Holdco with copies
of the forms of election the Management Stockholder files within
thirty (30) days after the date hereof, and within thirty (30) days
after each exercise of Management Stockholder’s Options and with evidence that
each such election has been filed in a timely manner.

 

13.           Notice
of Change of Beneficiary. 
Immediately prior to any transfer of Stock to a Management Stockholder’s
Trust, the Management Stockholder shall provide Holdco with a copy of the
instruments creating the Management Stockholder’s Trust and

 

19

 

with the identity of
the beneficiaries of the Management Stockholder’s Trust.  The Management Stockholder shall notify
Holdco as soon as practicable prior to any change in the identity of any beneficiary
of the Management Stockholder’s Trust.

 

14.           Recapitalizations,
etc.  The provisions of this
Agreement shall apply, to the full extent set forth herein with respect to the
Stock or the Options, to any and all shares of capital stock of Holdco or any capital
stock, partnership units or any other security evidencing ownership interests
in any successor or assign of Holdco (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for, or
substitution of the Stock or the Options by reason of any stock dividend,
split, reverse split, combination, recapitalization, liquidation,
reclassification, merger, consolidation or otherwise.

 

15.           Management
Stockholder’s Employment by Holdco. 
Nothing contained in this Agreement or in any other agreement entered
into by Holdco or the Company and the Management Stockholder contemporaneously
with the execution of this Agreement (subject to, and except as set forth in,
the applicable provisions of any offer letter or letter of employment provided
to the Management Stockholder by Holdco or the Company or any employment
agreement entered by and between the Management Stockholder and Holdco or the
Company) (i) obligates Holdco or any subsidiary of Holdco to employ the Management
Stockholder in any capacity whatsoever or (ii) prohibits or restricts
Holdco (or any such subsidiary) from terminating the employment of the
Management Stockholder at any time or for any reason whatsoever, with or
without Cause, and the Management Stockholder hereby acknowledges and agrees
that neither Holdco nor any other person has made any representations or
promises whatsoever to the Management Stockholder concerning the Management
Stockholder’s employment or continued employment by Holdco or any subsidiary of
Holdco.

 

16.           Binding
Effect.  The provisions of this
Agreement shall be binding upon and accrue to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and assigns.  In the case of a transferee permitted under
Section 2(a) or Section 3 (other than clauses (c) or (d)
thereof) hereof, such transferee shall be deemed the Management Stockholder
hereunder; provided, however, that no transferee (including
without limitation, transferees referred to in Section 2(a) or
Section 3 hereof) shall derive any rights under this Agreement unless and
until such transferee has delivered to Holdco and the Company a valid
undertaking and becomes bound by the terms of this Agreement.

 

17.           Amendment.  This Agreement may be amended only by a
written instrument signed by the Parties hereto.

 

18.           Closing.  Except as otherwise provided herein, the
closing of each purchase and sale of shares of Stock pursuant to this Agreement
shall take place at the principal office of Holdco on the tenth business day
following delivery of the notice by either Party to the other of its exercise
of the right to purchase or sell such Stock hereunder.

 

19.           Applicable
Law; Jurisdiction; Arbitration; Legal Fees.

 

(a) 
The laws of the State of Delaware applicable to contracts executed and
to be performed entirely in such state shall govern the interpretation,
validity and performance of the terms of this Agreement.

 

20

 

(b) 
In the event of any controversy among the parties hereto arising out of,
or relating to, this Agreement which cannot be settled amicably by the parties,
such controversy shall be finally, exclusively and conclusively settled by
mandatory arbitration conducted expeditiously in accordance with the American
Arbitration Association rules by a single independent arbitrator.  Such arbitration process shall take place
within 100 miles of the New York City metropolitan area.  The decision of the arbitrator shall be
final and binding upon all parties hereto and shall be rendered pursuant to a
written decision, which contains a detailed recital of the arbitrator’s
reasoning.  Judgment upon the award
rendered may be entered in any court having jurisdiction thereof.

 

(c) 
Notwithstanding the foregoing, the Management Stockholder acknowledges
and agrees that Holdco, the Company, its subsidiaries, the Investors and any of
their respective Rule 405 Affiliates shall be entitled to injunctive or
other relief in order to enforce the covenant not to compete, covenant not to
solicit and/or confidentiality covenants as set forth in Section 24(a) of
this Agreement.

 

(d) 
In the event of any arbitration or other disputes with regard to this
Agreement or any other document or agreement referred to herein, each Party
shall pay its own legal fees and expenses, unless otherwise determined by the
arbitrator.

 

20.           Assignability
of Certain Rights by Holdco.  Holdco
shall have the right to assign any or all of its rights or obligations to
purchase shares of Stock pursuant to Sections 4, 5 and 6 hereof.

 

21.           Miscellaneous.

 

(a) 
In this Agreement all references to “dollars” or “$” are to United
States dollars and the masculine pronoun shall include the feminine and neuter,
and the singular the plural, where the context so indicates

 

(b) 
If any provision of this Agreement shall be declared illegal, void or
unenforceable by any court of competent jurisdiction, the other provisions
shall not be affected, but shall remain in full force and effect.

 

22.           Withholding.  Holdco, the Company or its subsidiaries
shall have the right to deduct from any cash payment made under this Agreement
to the applicable Management Stockholder Entities any minimum federal, state or
local income or other taxes required by law to be withheld with respect to such
payment.

 

23.           Notices.  All notices and other communications
provided for herein shall be in writing. 
Any notice or other communication hereunder shall be deemed duly given
(i) upon electronic confirmation of facsimile, (ii) one business day
following the date sent when sent by overnight delivery and
(iii) five (5) business days following the date mailed when mailed by
registered or certified mail return receipt requested and postage prepaid, in
each case as follows:

 

(a) 
If to the Company or Holdco, to it at the following address:

 

	
  PanAmSat Corporation

  
	
  20 Westport Road

  
	
  Wilton, CT  06897

  

 

21

 

	
  Attention:  James Cuminale,
  Esq.

  
	
   

  
	
  PanAmSat Holding Corporation

  
	
  20 Westport Road

  
	
  Wilton, CT  06897

  
	
  Attention:  James Cuminale,
  Esq.

  
	
   

  
	
  with copies to:

  
	
   

  
	
  Kohlberg Kravis Roberts & Co.

  
	
  9 West 57th Street

  
	
  New York, New York 10019

  
	
  Attention:  Alexander Navab

  
	
   

  
	
  and

  
	
   

  
	
  Simpson
  Thacher & Bartlett LLP

  
	
  425
  Lexington Avenue

  
	
  New York,
  New York 10017

  
	
  Attention:

  	
  Gary I.
  Horowitz, Esq.

  
	
   

  	
  Marni J.
  Lerner, Esq.

  
	
  Telecopy:  (212) 455-2502

  

 

(b) 
If to the Management Stockholder, to him at the address set forth below
under his signature;

 

or at such other
address as either party shall have specified by notice in writing to the other.

 

24.           Confidential
Information; Covenant Not to Compete.

 

(a) 
In consideration of Holdco and the Company entering into this Agreement
with the Management Stockholder, the Management Stockholder hereby agrees
effective as of the date of the Management Stockholder’s commencement of
employment with Holdco or its Subsidiaries, without Holdco’s prior written
consent, the Management Stockholder shall not, directly or indirectly,
(i) at any time during or after the Management Stockholder’s employment
with Holdco or its Subsidiaries, disclose any Confidential Information
pertaining to the business of Holdco or any of its Subsidiaries, except when
required to perform his or her duties to Holdco or one of its Subsidiaries, by
law or judicial process; or (ii) at any time during the Management
Stockholder’s employment with Holdco or its Subsidiaries and for a period of
eighteen months thereafter, directly or indirectly (A) act as a
proprietor, investor, director, officer, employee, substantial stockholder,
consultant, or partner in any business that
directly or indirectly competes with the business of Holdco, the Company or any
of its other Subsidiaries in, (1) the sale or lease of, or the provision
of satellite services via transponder capacity on satellites operating in
geostationary earth orbit; or (2) the provision of telemetry, tracking and
control services for such satellites and for other satellites operating in
geostationary earth orbit or
any of their successors or any other satellite company or its satellite-related
affiliate, (B) solicit customers or clients of Holdco or any of its
Subsidiaries to terminate their relationship with Holdco or any of its
Subsidiaries or otherwise solicit such customers or clients to compete with any
business of Holdco or any of its Subsidiaries or (C) solicit or offer
employment to any person who has been employed by Holdco or any of its
Subsidiaries at any time during the twelve (12) months immediately

 

22

 

preceding the
termination of the Management Stockholder’s employment.  If the Management Stockholder is bound by
any other agreement with Holdco or the Company regarding the use or disclosure
of confidential information, the provisions of that agreement shall control
with respect to the use or disclosure of confidential information, and this
Section 24(a) shall not apply.

 

(b) 
Notwithstanding clause (a) above, if at any time a court holds that
the restrictions stated in such clause (a) are unreasonable or otherwise
unenforceable under circumstances then existing, the parties hereto agree that
the maximum period, scope or geographic area determined to be reasonable under
such circumstances by such court will be substituted for the stated period,
scope or area.  Further, for those Management Stockholders who are practicing
attorneys, the restrictions stated in clause (a) above shall be effective and
binding to the extent permissible under any applicable Rule of Professional
Conduct or Code of Professional Responsibility.  Because the Management Stockholder’s services are unique and
because the Management Stockholder has had access to Confidential Information,
the parties hereto agree that money damages will be an inadequate remedy for
any breach of this Agreement.  In the
event of a breach or threatened breach of this Agreement, Holdco or its
successors or assigns may, in addition to other rights and remedies existing in
their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive relief in order to enforce, or prevent any
violations of, the provisions hereof (without the posting of a bond or other
security).

 

(c)  In the event that the Management Stockholder
breaches any of the provisions of Section 24(a), in addition to all other remedies
that may be available to Holdco, such Management Stockholder shall be required
to pay to Holdco or such third party identified by Holdco any amounts actually
paid to him or her by Holdco in respect of any repurchase by Holdco of the New
Option or shares of Common Stock underlying the New Option held by such
Management Stockholder.

 

25.           Termination
of Certain Provisions.

 

The provisions
contained in Section 4 and the portion of any other provision of this
Agreement that incorporates the provisions of Section 4, shall terminate,
and be of no further force or effect upon the consummation of a Qualified
Public Offering.

 

[Signatures on next page.]

 

23

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first above written.

 

	
   

  	
  PANAMSAT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PANAMSAT
  HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

	
   

  	
  MANAGEMENT
  STOCKHOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADDRESS:Exhibit
10.10

 

[FORM OF]

 

AMENDED AND
RESTATED SALE PARTICIPATION AGREEMENT

 

October 29, 2004

 

 

	
  To:

  	
  The Person
  whose name is

  
	
   

  	
  set forth on
  the signature page hereof

  

 

 

Dear Sir or
Madam:

 

You have entered into an Amended and Restated
Management Stockholder’s Agreement, dated as of August 20, 2004 and amended and
restated as of the date hereof, between PanAmSat Corporation, a Delaware
corporation (the “Company”), PanAmSat Holding Corporation, a Delaware
corporation (“Holdco”), and you (the “Management Stockholder’s
Agreement”) relating to the granting to you by the Company of an Option (as
defined in the Management Stockholder’s Agreement) to purchase shares of common
stock, par value $0.01 per share, of the Company. In connection with the
Company becoming a wholly-owned subsidiary of Holdco and the stockholders of
the Company becoming stockholders of Holdco, the Option has become exercisable
for shares of common stock, par value $0.01 per share, of Holdco (the “Common
Stock”).  The undersigned,
Constellation, LLC, a Delaware limited liability company (“Constellation”),
Carlyle PanAmSat I, L.L.C., a Delaware limited liability company, Carlyle
PanAmSat II, L.L.C., a Delaware limited liability company (together, “Carlyle”),
PEP PAS, LLC, a Delaware limited liability company, and PEOP PAS, LLC, a
Delaware limited liability company (together, “Providence”, and
collectively with Constellation and Carlyle, the “Investors”) hereby
agree with you as follows, effective upon such grant of Option:

 

1.             In
the event that at any time one or more of the Investors (together with any of
the affiliates of such Investor or Investors, to the extent provided for in
Paragraph 8 hereof, the “Selling Investors”) proposes to sell for cash
or any other consideration any shares of Common Stock owned by it, in any
transaction other than a Public Offering (as defined in the Management
Stockholder’s Agreement), a public distribution pursuant to Rule 144 under the
Securities Act of 1933, as amended or a sale to an affiliate of the Selling Investors,
the Selling Investors will notify you or your Management Stockholder’s Estate
or Management Stockholder’s Trust (as such terms are defined in the Management
Stockholder’s Agreement, and collectively with you, the “Management
Stockholder Entities”), as the case may be, in writing (a “Notice”)
of such proposed sale (a “Proposed Sale”) and the material terms of the
Proposed Sale as of the date of the Notice (the “Material Terms”)
promptly, and in any event not less than 15 days prior to the consummation
of the Proposed Sale and not more than five days after the execution of the
definitive agreement relating to the Proposed Sale, if any (the “Sale
Agreement”).  If, within
10 days after the Management Stockholder Entities’ receipt of such Notice,
the Selling Investors receive from the Management Stockholder Entities a
written request (a “Request”) to include Common Stock held by the
Management Stockholder Entities in the Proposed Sale (which Request shall be
irrevocable unless (a) there shall be any substantive adverse change in
the Material Terms or (b) if otherwise mutually agreed to in writing by
the Management Stockholder Entities, and the Selling Investor), the Common
Stock held by you will

 

 

be so included to the extent provided in Section 2
below; provided that only one Request, which shall be executed by the
Management Stockholder Entities, may be delivered with respect to any Proposed
Sale for Common Stock held by the Management Stockholder Entities.  Promptly after the execution of the Sale
Agreement, the Selling Investors will furnish the Management Stockholder
Entities with a copy of the Sale Agreement, if any.

 

2.             (a)  The number of shares of Common Stock which
the Management Stockholder Entities will be permitted to include in a Proposed
Sale pursuant to a Management Stockholder Request will be the sum of the number
of shares of Common Stock then owned by the Management Stockholder Entities
(and held pursuant to the Management Stockholder’s Agreement) plus all
shares of Common Stock which you are then entitled to acquire under any
unexercised portion of the Option, to the extent such Option is then
exercisable or would become exercisable as a result of the consummation of the
Proposed Sale, multiplied by a fraction (x) the numerator of which
shall be the aggregate number of shares of Common Stock proposed to be sold in
the Proposed Sale and (y) the denominator of which shall be the total
number of shares of Common Stock owned by all of the Investors, the Management
Stockholder Entities (including phantom shares owned through the Deferred
Compensation Plan) and other holders of shares of Common Stock who have been
granted the same rights granted to the Management Stockholder Entities to
participate in the Proposed Sale (an “Eligible Holder”) as the case may
be.

 

(b)          If
one or more Eligible Holders elect not to include the maximum number of shares
of Common Stock which such holders would have been permitted to include in a
Proposed Sale pursuant to Paragraph 2(a) (such non-included shares, the “Eligible
Shares”), then each of the Selling Investors, or the remaining Eligible
Holders, or any of them, will have the right to sell in the Proposed Sale a
number of additional shares of their Common Stock equal to their pro rata
portion of the number of Eligible Shares, based on the relative number of
shares of Common Stock then held by each such holder plus all shares of
Common Stock which you are then entitled to acquire under any unexercised
portion of the Option, to the extent such Option is then exercisable or would
become exercisable as a result of the consummation of the Proposed Sale, and
such additional shares of Common Stock which any such holder or holders propose
to sell shall not be included in any calculation made pursuant to
Paragraph 2(a) for the purpose of determining the number of shares of
Common Stock which the Management Stockholder Entities will be permitted to
include in a Proposed Sale.  The Selling
Investors, or any of them, will have the right to sell in the Proposed Sale
additional shares of Common Stock owned by them equal to the number, if any, of
remaining Eligible Shares which will not be included in the Proposed Sale
pursuant to the foregoing.

 

3.             Except
as may otherwise be provided herein, shares of Common Stock subject to a Request
will be included in a Proposed Sale pursuant hereto and in any agreements with
purchasers relating thereto on the same terms and subject to the same
conditions applicable to the shares of Common Stock which the Selling Investors
propose to sell in the Proposed Sale. 
Such terms and conditions shall include, without limitation:  the pro rata reduction of the number of
shares of Common Stock to be sold by the Selling Investors, the Management
Stockholder Entities and any Eligible Holders to be included in the Proposed
Sale if required by the party proposing such Sale; the sale price; the payment
of fees, commissions and expenses; the provision of, and representation and
warranty as to, information reasonably requested by the Selling Investors
covering matters regarding the Management Stockholder Entities’ ownership of

 

2

 

shares; and the provision of requisite
indemnification; provided that any indemnification provided by the
Management Stockholder Entities shall be pro rata in proportion with the number
of shares of Common Stock to be sold.

 

4.             Upon
delivering a Request, the Management Stockholder Entities will, if requested by
the Selling Investors, execute and deliver a custody agreement and power of
attorney in form and substance reasonably satisfactory to the Selling Investors
with respect to the shares of Common Stock which are to be sold by the
Management Stockholder Entities pursuant hereto (a “Custody Agreement and
Power of Attorney”).  The Custody
Agreement and Power of Attorney will contain customary provisions and will
provide, among other things, that the Management Stockholder Entities will
deliver to and deposit in custody with the custodian and attorney-in-fact named
therein a certificate or certificates (if such shares are certificated)
representing such shares of Common Stock (duly endorsed in blank by the
registered owner or owners thereof) and irrevocably appoint said custodian and
attorney-in-fact as the Management Stockholder Entities’ agent and
attorney-in-fact with full power and authority to act under the Custody
Agreement and Power of Attorney on the Management Stockholder Entities’ behalf
with respect to the matters specified therein.

 

5.             The
Management Stockholder Entities’ right pursuant hereto to participate in a
Proposed Sale shall be contingent on the Management Stockholder Entities’
strict compliance with each of the provisions hereof and the Management
Stockholder Entities’ respective willingness to execute such documents in connection
therewith as may be reasonably requested by the Selling Investors.

 

6.             (a)
In the event of a Proposed Sale pursuant to Paragraph 1 hereof if the rights
set forth in Section 3.5 of the Amended and Restated Stockholders Agreement of
PanAmSat Holding Corporation, dated as of August 20, 2004 and amended and
restated as of October 14, 2004, among Holdco, the Company and the Investors
are applicable, the Investors may elect, by so specifying in the Notice, to
require the Management Stockholder Entities to, and the Management Stockholder
Entities shall, participate in such Proposed Sale to the same extent calculated
pursuant to Paragraph 2(a) above, in accordance with the terms and
provisions of Paragraph 3 hereof; provided, however, that in
such event, the order in which the shares of Common Stock held by the
Management Stockholder Entities shall be required to be sold shall be: first,
any shares of Common Stock then held by the Management Stockholder Entities;
and second, any shares of Common Stock acquired pursuant to the exercise of any
exercisable Options.

 

(b)           In
the event of a transaction which results in a Change in Control (as defined in
the Management Stockholder’s Agreement) but is not a Proposed Sale in which an
Investor has exercised its rights pursuant to Section 6(a) or the Management
Stockholder Entities have exercised their rights pursuant to Section 1 (a “Proposed
Transaction”), you agree on behalf of the Management Stockholder Entities,
to bear your pro rata share, to the extent set forth in Paragraph 6(c) below,
of any fees, commissions, adjustments to purchase price, expenses or
indemnities borne by the relevant Selling Investors.

 

(c)           Your
pro rata share of any amount to be paid pursuant to Paragraph 3 or 6(b)
shall be based upon the number of shares of Common Stock intended to be
transferred by

 

3

 

the Management Stockholder Entities plus the number of
shares of Common Stock you would have the right to acquire under any
unexercised portion of the Option which is then vested or would become vested
as a result of the Proposed Sale or Proposed Transaction, but only to the
extent you participate in such sale.

 

7.             The
obligations of the Selling Investors hereunder shall extend only to the
Management Stockholder Entities, and none of the Management Stockholder
Entities’ successors or assigns shall have any rights pursuant hereto.

 

8.             If
the Selling Investors or any of them transfer any of their interests in Holdco
to an affiliate of any of the Selling Investors, such affiliate shall assume
the obligations hereunder of the Selling Investors.

 

9.             This
Agreement shall terminate and be of no further force and effect on the fifth
anniversary of the first occurrence of a Public Offering (as defined in the
Management Stockholder’s Agreement).

 

10.           All
notices and other communications provided for herein shall be in writing.  Any notice or other communication hereunder
shall be deemed duly given (i) upon electronic confirmation of facsimile,
(ii) one business day following the date sent when sent by overnight
delivery and (iii) five business days following the date mailed when
mailed by registered or certified mail return receipt requested and postage
prepaid, in each case as follows:

 

	
  If to Constellation or KKR Fund:

  
	
   

  
	
   

  	
  Constellation, LLC

  
	
   

  	
  c/o Kohlberg Kravis Roberts & Co. L.P.

  
	
   

  	
  9 West 57th Street

  
	
   

  	
  New York, New York  10019

  
	
   

  	
  Attn:  Alexander Navab

  
	
   

  	
  Telecopy:  (212) 750-0003

  
	
   

  	
   

  
	
   

  	
  with a copy to: (which shall not constitute notice)

  
	
   

  
	
   

  	
  Simpson Thacher & Bartlett LLP

  
	
   

  	
  425 Lexington Avenue

  
	
   

  	
  New York, New York  10017

  
	
   

  	
  Attn:

  	
  Gary Horowitz, Esq.

  
	
   

  	
   

  	
  Marni Lerner, Esq.

  
	
   

  	
  Telecopy:  (212) 455-2502

  
	
   

  
	
  If to Carlyle or the Carlyle Fund:

  
	
   

  
	
   

  	
  Carlyle PanAmSat I, L.L.C.

  
	
   

  	
  Carlyle PanAmSat II, L.L.C.

  
	
   

  	
  1001 Pennsylvania Avenue, N.W.

  
	
   

  	
  Suite 220 South

  

 

4

 

	
   

  	
  Washington, D.C.  20004

  
	
   

  	
  Attn:  Bruce E. Rosenblum

  
	
   

  	
   

  
	
   

  	
  with a copy to:  (which shall
  not constitute notice)

  
	
   

  
	
   

  	
  Latham & Watkins LLP

  
	
   

  	
  555 Eleventh Street, NW

  
	
   

  	
  Suite 1000

  
	
   

  	
  Washington, D.C.  20004-2201

  
	
   

  	
  Attn:  Daniel T. Lennon

  
	
   

  	
  Telecopy:  (202) 637-2201

  
	
   

  
	
  If to Providence or the Providence Fund:

  
	
   

  
	
   

  	
  PEP PAS, LLC

  
	
   

  	
  PEOP PAS, LLC

  
	
   

  	
  50 Kennedy Plaza

  
	
   

  	
  18th Floor

  
	
   

  	
  Providence, RI  02903

  
	
   

  	
  Attn:  Paul Salem

  
	
   

  	
  Telecopy:  (401) 751-1709

  
	
   

  	
   

  
	
   

  	
  with a copy to:  (which shall
  not constitute notice)

  
	
   

  
	
   

  	
  Latham & Watkins LLP

  
	
   

  	
  555 Eleventh Street, NW

  
	
   

  	
  Suite 1000

  
	
   

  	
  Washington, D.C.  20004-1304

  
	
   

  	
  Attn:  Daniel T. Lennon

  
	
   

  	
  Telecopy:  (202) 637-2201

  
	
   

  
	
  If to the Company or Holdco, to the Company or
  Holdco at the following address:

  
	
   

  
	
   

  	
  PanAmSat Corporation / PanAmSat Holding Corporation

  
	
   

  	
  20 Westport Road

  
	
   

  	
  Wilton, CT  06897

  
	
   

  	
  Attn:  James Cuminale, Esq.

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  
	
   

  	
  Simpson Thacher & Bartlett LLP

  
	
   

  	
  425 Lexington Avenue

  
	
   

  	
  New York, New York  10017

  
	
   

  	
  Attn:

  	
  Gary Horowitz, Esq.

  
	
   

  	
   

  	
  Marni Lerner, Esq.

  

 

If to you, to you at the address first set
forth above herein;

 

5

 

If to your Management Stockholder’s Estate or
Management Stockholder’s Trust, to the address provided to the Company by such
entity;

 

or at such
other address as any of the above shall have specified by notice in writing
delivered to the others by certified mail.

 

11.           The
laws of the State of Delaware shall govern the interpretation, validity and
performance of the terms of this Agreement. 
In the event of any controversy among the parties hereto arising out of,
or relating to, this Agreement which cannot be settled amicably by the parties,
such controversy shall be finally, exclusively and conclusively settled by
mandatory arbitration conducted expeditiously in accordance with the American
Arbitration Association rules, by a single independent arbitrator.  Such arbitration process shall take place
within 100 miles of the New York City metropolitan area.  The decision of the arbitrator shall be
final and binding upon all parties hereto and shall be rendered pursuant to a
written decision, which contains a detailed recital of the arbitrator’s
reasoning.  Judgment upon the award
rendered may be entered in any court having jurisdiction thereof.  Each party shall bear its own legal fees and
expenses, unless otherwise determined by the arbitrator.  Each party hereto hereby irrevocably waives
any right that it may have had to bring an action in any court, domestic or
foreign, or before any similar domestic or foreign authority with respect to
this Agreement.

 

12.           This
Agreement may be executed in counterparts, and by different parties on separate
counterparts, each of which shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument.

 

13.           It
is the understanding of the undersigned that you are aware that a Proposed Sale
may never occur.

 

14.           The
obligations of the Investors under this Agreement are several and not joint and
several.  No Investor shall be
responsible for the obligations of any other Investor hereunder or liable for
breach of any provision of this Agreement by any other Investor.

 

 

[Signatures on next page]

 

6

 

If the
foregoing accurately sets forth our agreement, please acknowledge your
acceptance thereof in the space provided below for that purpose.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  CONSTELLATION, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT I, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT II, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  PEP PAS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  PEOP PAS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
  Accepted and agreed on the 20th day of

  	
   

  
	
  August 2004, and amended and restated

  	
   

  
	
  this      day of October 2004.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]